Creating New Market Space Essay
The saying that “ nothing is constant except change” absolutely holds water especially n the marketing world. Every industrialist, entrepreneur, producer, trader keeps a close eye on their products and how they fare in the market. When demand for a certain product is low for some time, new marketing strategy has to be done ,a better or new alternative has to be adapted. Innovations partially or completely has to be done to improve marketability. This move is rather though for anyone in charge of marketing for competition is so stiff amidst globalization.
Finding a new market space is one of the best alternative to make a breakthrough in value especially if the space found for marketing is never been occupied by any product. An unoccupied territory will make a major breakthrough in sales. In finding anew Markey space existing patterns can be modified or be changed completely by innovations. Marketing strategies should not be predictable. It must be dynamic to keep abreast with demand’s behavioral patterns.
Most companies focus their attentions in beating other competitors. As a result, their strategies tend to take on similar dimensions as the others. They find strategies to compete with others. Several studies were done on how
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In Creating new market space there is a need to; 1)look across substitute industries, 2) look across strategic groups within its industry, 3) redefine the buyer group of the industry, 4) look across to complementary product and service offerings that go beyond the bounds of its industry, 5) rethink the functional-emotional orientation . The paper is about the rivalry in marketing innovations, strategies, alternatives and substitutes based on conventional marketing patterns and adoption of new ones that will last a life time and global. It provides a comparative analysis of the different principles in marketing and its implications.
The Market for United Kingdom Higher Education Institutions Higher Education in the United Kingdom includes nine kinds of institution, six- form colleges, tertiary education colleges, further education colleges, higher-education colleges and institutes, specialist colleges, adult-education colleges, privately owned colleges of education, universities and distance learning organizations. There are around 700 total institutions in the UK that excludes the adult-colleges. There were around 4. 8 million students in further education, in 2001/2002, and in higher education, there are 2.
1 million. That same year, the total estimated expenditure by the higher education sector is at ? 13. 5bn, and combined expenditure on further education and training at ? 6bn (Further and Higher Education: Market Report 2002). Looking Across Substitute Industries An industry does not compete with its own type but also with other industry that produces substitute products. The introduction of the Home Depots in the market did not only create a new space for home construction materials and furnishings but also caused a great increase in value in terms of price and quality of the product.
Competition is a healthy process if it results to innovations just like what marketing pattern Home depots created. The Home Depots gave birth to creative, self studied architects, engineers, interior designers, carpenters because of the do-it –yourself trends it introduced. This has been highly patronized due to cut in costs of building or renovating a house and its interiors. Home Depots offered free architectural advice because they often hire consultants or experts to help their costumers in their purchases.
The use of computer versus pencil as product substitute was discussed lengthily as it gave rise to the new value curve theory of Intuit. More people use pencil than I software because of its practicality, simplicity and affordability. Pencil cost much less that computer. Pencil to is and can be used by anyone and is accessible almost everwhere. In comparison, one needs to be a computer literate and financially able to buy and use a computer. Pencil is simpler to use while computer is highly sophisticated. A layman will think that it is unfair to compare the two for they are entirely different product but that is how industries go.
The law of product substitution applies for the value a consumer derived from it. The level of satisfaction a consumer gets is a major factor to be considered to make a product stay long in the local and global market. Current Business Models of UK Higher Education Institutions The Value Curve The Value Curve is a market based approach as compared to a resource based approach to strategy development. Explore through published writings the key dimensions of these two approaches. Looking Across Strategic Groups Within Industries
New marketing space can be found not only among substitutes but also across the same group of industry. Strategic groups are composed of group of companies having similar strategy. The ranks and /or order of strategic groups is affected by price and performance. The value return for the money spent for a certain product determines market stability and place. Most strategic groups try to maintain their position within the group but creating a new place in the market is done across the group by determining what causes the buyer to trade up or down from one group to another according to Kim and Mauborgne (1999).
The two has analyzed how Polo Ralph Lauren found a new market place in the fashion world when they perceive his clothing lines as “high fashion with no fashion”. Lauren was the first to take its brand worldwide by making a tremendous global sales exceeding $ 5 billion . He was at first downgraded by fashion critics but later followed by his predecessors. Still, price and performance count. Some sold their designs at a higher price but Lauren’s designs stability in the market space he found globally is mainly due to affordability and quality. Looking Across The Chain of Buyers
There are three groups of buyers identified whom companies or industries targeted for their products, namely, the purchasers who buy the products, the users to whom the purchasers bought the product for and the influencers who oftentimes are the advertisers or product promoters. There are segment groups of buyers who are target buyers of a certain kind of product. For example, pharmaceuticals and medical equipments are designed for doctors and allied medical professionals as well as hospitals and clinics, while concrete products and home builders’ depots are for building contractors and developers.
For pharmaceuticals, the focus is on the doctors who are the influencers, office equipments are focused on the purchasers and the clothesline and other consumer products like soap, food and others are focused on the users. Focusing the market on the three types of buyers above is a conventional way of establishing the market. Drifting away from the conventional method can open new market space like redesigning their value curves according to Kim and Mauborgne. They cited Bloomberg’s paradox of traders and analyst’s personal lives as he focused on the users of his product.
Users have strong buying power due to their high income but their lifestyle hinders their purchasing ability be cause of long working hours,they have less or little time to go on a buying spree. Other buyers of the same predicament, are now the target of the on line market or e- commerce. The on line trading has found its new market place and its target buyers are on the upper level of the society, who almost have no time to go out just to buy their personal needs like dress, computers, clothes, shoes by using their credit cards. This new market space increased the demand for credit cards. References:
“First Profit Making Company to Award Degrees”. The Guardian, 25 September 2007, educationguardian. co. uk Further and Higher Education: Market Report 2002. Key Note Publications Ltd. June 1, 2002. Johnson, G. and Scholes, K. Exploring Corporate Strategy, Seventh Edition 2004 (3) M. J. Baker, Marketing Management and Strategy 3rd Edition 2000. Kotler, P. , G. Armstrong, J. Saunders and V. Wong, Principles of Marketing, Fourth European Edition 2005. “The Brains Business”. The Economist, 8 September 2005. www. economist. com/research/articlesBySubject/displaystory. cfm? subjectid=2133650&story_id=E1_QPPJJGD.