1. MARKET STRATEGY
Written plan (usually a part of the overall
corporate plan) which combines
product development, promotion, distribution,
and pricing approach, identifies the firm's
marketing goals, and explains how they will
be achieved within a stated timeframe.
Marketing strategy determines the choice of
target market segment, positioning, marketing
mix, and allocation of resources.

2. MARKET STRATEGY
• strategy - originally a military term, in a
business planning context
• strategy/strategic means/pertains to why and
how the plan will work, in relation to all factors
of influence upon the business entity and
activity, particularly including competitors (thus
the use of a military combative term), customers
and demographics, technology and
communications.

3. MARKET STRATEGY
• Sonic, a hypothetical start-up company, is getting ready to
introduce a new multifunction personal digital assistant (PDA),
also known as a handheld computer. Sonic's new product in
entering a marketplace crowded with offerings from palm,
Handspring, and other PDA makers.
• Despite intense competition, Sonic can rely on numerous
strengths. First, its PDA has a superior handwriting recognition
system, which simplifies use. Second, it bundles valuable feature
found only on higher-price rival products. Third, Sonic's PDA can
accept any palm-compatible peripheral; and fourth it is priced
lower than competing models. However, it weaknesses include:
lack of brand awareness and image; lack of color display screen;
and slightly heavier weight than most competing models.

4. Scanning the market Environment
• 1. Scanning the Market Environment
• a. What demographic changes are likely to affect Sonic's target
market(s)?
• b. What economic trends might influence the future of the PDA
market?
• c. What technological changes can potentially affect PDA
development, buyer acceptance of PDAs and the development of
substitute products?
• d. What current or emerging political-legal issues are likely to affect
PDAs?
Any idea how to approach this assignment?

5. SCANNING MARKET
ENVIRONMENT
• Demographic factors:
• are associated with changing nature and volume of
population. It follows how people are conducting
themselves in the new world, increasing per capita
income, urban migration, ethnically diverse cities
and mega cities. These are some demographic
factors companies are monitoring. For example, a
country like India and China are showing highest
concentration of youth population where as Japan is
showing high number of retired workers. Therefore,
demand and consumption of product will also be
different.

6. SCANNING MARKET
ENVIRONMENT
• Economic factors: deals with function
like purchasing power parity, income
level, savings level and interest rates
among many other. For example,
countries with a high income level are
more likely to afford luxury items
compare to a low income level country.
Savings level and interest rate
determine the borrowing power as well
as spending power of consumer.

7. SCANNING MARKET
ENVIRONMENT
• Ecological factors: consist of natural
resource composition in a given
county. For example, demand for fossil
fuel has sky rocketed in recent years
there by increasing general price level
in the market. Companies, therefore,
are looking forward to designing
products which eco-friendly design
that is they are less fuel dependent and
give out less pollution.

8. SCANNING MARKET
ENVIRONMENT
• Technology factors: like internet and
connectivity are changing the face of
business. More and more people are
doing business online. Science and
medicine are also part of technology
factors. Challenge for the company is
to keep up with innovation and offer
products, which are not obsolete.

9. SCANNING MARKET
ENVIRONMENT
• Political environment: is also changing
with more and more market based
system rather than the socialist
system. Furthermore, regulatory
requirements like competition policy,
investment policy, tax policy, etc.
companies should investigate before
taking their business to a particular
country.

10. SCANNING MARKET
ENVIRONMENT
• Culture environment: deals with factors
like opinion people have towards
themselves, others, organization and
society in general. People have become
more eco conscious, contributing one
or many causes they can relate to, want
organization to be responsible for their
action and are looking to open society
with meaningful co-existence.