Aldus Company and Its’ Leaders
The essay shall examine the case of Aldus Corporation. The company has been a leader in the desktop publishing market since their inception. However, the firm’s marketing manager (Richard Strong) has identified some foreseeable problems that would require a paradigm shift in the company’s positioning strategy. The essay shall examine the new positioning strategy alongside other marketing issues prevalent in the Company. Richard Strong made a proposal to offer Aldus’ PageMaker under two major divisions.
This would involve creating two separate versions of PageMaker to suit the needs of the company’s major segments i.e. the graphics professional and the business user. These two divisions would differ in terms of their size with thirty percent of the product being concentrated on the graphic professionals segment while the rest would be dedicated to the business segment. Additionally, the kind of features available in each product line would largely depend on the needs of the latter mentioned segments. The creative graphics professional version would need greater technical assistance, greater sophistication and would have to be attuned to other types of software such as image scanners.
On the other hand, the product catered for the business segment would need to be made less complicated and should
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The company’s positioning has been based on this aspect. However, Strong’s proposal advocates for a change in strategy in that the company can meet specific client needs with different products. (Ryans, 2002) Differences between consumer and organizational markets Organizational consumers purchase desktop publishing software in order to enhance the attractiveness of their documents by placement of graphics. On the other hand, consumer markets usually utilize Desktop publishing in order to enhance the publishing process.
Usually consumer markets targeted are those ones who have been engaging in manual publishing and would like greater efficiency. Consumer markets look for very different features in their desktop products in comparison to organizational consumers. Usually, organizational consumers opt for desktop publishers that are simpler to use than consumer markets. (Ryans, 2002). Consumer markets also differ from organizational markets in the manner of purchasing desktop publishing software. Usually, organizational markets have two approaches to making these decisions.
In some instances, they may leave it to departmental heads. This usually applies to those companies with less autonomy in work or with vertically oriented organizational structures. On the other hand, some organizational markets leave the software purchasing decisions to the respective individuals who will need the software. Consumer markets on the other hand have an open approach to making purchasing decisions. Here only that respective individual who will be using the desktop publisher will make the choice of which software to use. (Ryans, 2002)
How these differences contribute to the positioning strategy Owing to the fact that organizational consumers look for different features in their desktop publishing products compared to their counterparts in the consumer market, then it would be necessary to offer these two markets different versions of the product tailor-made to their needs. In other words, the overall differences between them necessitate different approaches to product offering. Consumer markets have greater specificity of product functions while organizational markets may not be that specific.
The reason for this is that one group i. e. the consumer markets are looking for efficiency in publishing while the other group i. e. the organizational consumers are looking for quality improvement in their documents. These varying needs have been met in the company’s product offering thus affecting its positioning strategy. This strategy is based in meeting various needs irrespective of a client’s category. The manner of purchasing has also affected Aldus’ positioning strategy owing to the fact that the company has marketed itself as a leader in Desktop publishing.
Consequently, this allows the company greater leverage in terms of its image. Aldus has four major segments. They can be summed up as follows: Business clients who use Macintosh Business clients who are PC based, Graphics professionals who use Macintosh, Graphics clients who are PC based. The Graphic professional who uses Macintosh technology is one who need sthe PageMaker so as to eliminate manual methods of publishing and also one who would like to conduct the publishing himself rather than look for outside services.
This type of market segment is made up of clients who are interested in understanding the intricacies of using the PageMaker. Aldus was doing relatively well in this segment because it commanded a seventy percent market share. However, future projections indicated that the market would be saturated. The graphics professional who uses PC technology is one who wants to enhance their publishing needs through the use of IBM. This market segment was largely in existence owing the fact that they worked for companies committed to IBM or the fact that IBM computers were cheaper. This was a small segment.
The Business client who uses Macintosh technology is one who wants to incorporate graphics in their documents thus making them more presentable. This market segment is made up of people who do not mind talking the time to learn the particulars of desktop publishing through PageMaker. Aldus was doing relatively well in this segment. However, their sales were affected by their strategic partner; Apple. The business client who uses PC technology is one who would want to improve the appearance of their documents through Desktop publishing but still remains committed to IBM computers. Usually, such companies have made a pact to stick to IBM.
This segment has not attained its full potential because Aldus has not tackled competition from advanced word processors. Proposed segmentation scheme based on specific market characteristics for Aldus Corporation The new segmentation scheme under consideration proposes a two way method of segmentation. In other words, instead of concentrating on four segments, the proposal will focus on two segments i. e. the business segment and the graphics professional segment. Since these groups have various needs, then there is a need to divide the company into two divisions to handle the two segments under consideration.
The target markets that Strong identified are the business clients and the graphics professional clients. Strong believed that the business market should take up the largest amount of resources (human and technical) because of various reasons. Foist of all, this target market would require greater automation and greater ease of use. Also, they would not require as much additional software as the other types of clients. This market would also be different in that the pricing of their PageMaker would be much lower than the other category.
The second target market was the graphic professional. This category would require more complicated tools and would therefore need greater levels of technical assistance from staff at Aldus. Additionally, this market segment would be less simplistic and could therefore require a greater level of commitment in terms of the kind of product that it brings to the table. The latter target markets could also require different distributional strategies with more emphasis on distributor education in the graphics professional target market than in the business market.
OIn conclusion Aldus’ marketing manager- made a proposal to come up with the most effective method for meeting their client’s needs. Despite the challenges that such an approach would bring to the corporation, Aldus should consider this proposal in order to enhance their competiveness. References Ryans, A. (2002): Aldus Corporation; Ivey Publishers, pgs 1-17 Marketing teacher (2008): the four elements of the marketing mix; http://www. marketingteacher. com/ accessed on 23rd September Rey , C. et al (2004): Life Cycle assessment and external environmental cost; Journal for engineering sciences, 21, 8, 590,