Ihort was given the opportunity to develop and market a new type of Voice Recognition Device (VRD) that has advanced capabilities for controlling computer applications based on natural language or spoken command. The over all purpose and objective of this report is to provide feedback and broader view of the market in which our firm was operating and our performance within the market while developing and marketing the VRD.
It was extremely important for our firm to understand the market, our competitors, the targeted group and the external environment to help us do a better job and maximize our profits. It was prudent for our firm to undertake some vital steps before fully getting into the market place. Some of the steps we had to work through were:
??? Assess ??“ identify and clarify primary market strategic objectives and align those objectives with the target market.
??? Plan and Design – Design the product to fit customer needs for ultimate success.
??? Enable – Train sales managers in the methodologies best suited to the firms goals, maximize profits
??? Sustain and grow – Empower our target market, keep the clients long-term and ultimately grow as a firm and maybe capture other markets
We started with the intention of specifically cornering the modern student market. This market was selected due to its constant thirst for new technology; furthermore it was viewed as a market that could make use of the product given the products substantial attributes and functions. The marketing department looked at several survey reports available and assessed some of the needs and wants of this target market and it was clear that students were easy to please with a few changes to the underdeveloped form of the VRD. This target market comprised of college students who could not afford a high price for the product hence it was within our thinking that we would provide most of the basic elements required for the product while maintaining a low price in the market
Because of the long term plans within the organization, in the initial round we wanted to reserve some money for later use and marketed our product too conservatively. This caused us to perform poorly in round 1 and all other consecutive rounds. Some of the failures within our organization could be attributed to failure to advertise aggressively and execute our firm??™s objectives firmly. We were under the impression that this was a large market segment that did not need a lot of advertising and that most of the advertising could be done through word of mouth and customer experience, this did not turn out to be the case. Secondly we were not aggressive enough with pricing, as much as it was known that our target market was the students, we failed to capture those within the segment willing to pay more for the product. We should have set the price slightly higher in the first round and advertised more.
In the third round we changed the product in accordance with an old report up in the hopes of regaining market share and possibly run the business profitably, this turned out to be a mistake because our competitors continued to grow within our target market while gaining ground in their market segments as well. By the fourth and fifth rounds we were so far behind there wasnt much we could do to get back into business firmly or establish our selves in a more profitable way. As mentioned above our strategy was to corner students, but too much of our market was going to Talk2Me and Dude Inc. We underestimated our competitors and once we realized our mistakes it was difficult to regain the confidence of the lost customers. We were never able to successfully push our competitors out of the student market despite our product being better customized to fit the modern students. Numerous actions were put in place to revive our firm??™s objectives and execute them firmly but we lacked the funding to establish ourselves in the market again. We are not sure if our initial mistake was as a result of the low price charged in hopes of gaining more sales or lack of advertising in the initial rounds.
We are more knowledgeable about how the market operates and stand in a better position to execute firm plans given another opportunity. Some of the lessons learned include:
-Low pricing does not always mean high sales volume and profitability
-Advertising ultimately pays off and helps increase market share.
-Be aggressive when a product is just introduced to the market to make the firms presence known
-It??™s ok to take risks and take up the giant instead of being conservative.
-Despite the best intentions, the market does not always do what you expect.