Реферат: Marketing A New Product Essay Research Paper

+ Threats

Strengths and weaknesses are said to be internal, that is, controlled by the company. Opportunities and Threats are outside the company’s control and are therefore said to be external influences.

Strengths

+ Most people are willing to try a new product. If they are impressed, they will trust the company and build a loyalty to it.

+ It is the only product of its kind, therefore, it would have a large target audience

+ As my company is new, it has no reputation. This could be seen as a weakness, but I prefer to see it as strength, because although it has no goodwill, it also has no bad will against it. Goodwill can be built over time.

+ My distribution costs would be kept to a minimum, as my channel would be very small. – My Company Wholesalers Retailers Consumers.

+ Decisions can be made quickly as there will be a small management team. This means increased efficiency within the firm.

Weaknesses

+ My product is untried and untested, so I have no idea how successful my product will be or if there will be any real demand for it.

+ I will have to employ a distributor as I am a small firm and cannot afford to supply my own distribution. This will still cost a lot of money

+ I wont be able to take advantage of any economies of scale, as my company wont be big enough

+ I have no expert knowledge in any aspect of marketing. But to employ someone who does will cost extra money

+ People will not want to buy a whole new clothesline just to have this invention on it.

Opportunities

+ There is a gap in the market for this product. No one has invented this yet, therefore, it may have the opportunity to monopolise this segment of the market.

+ There may be unsatisfied needs within the market. This will be identified through research.

Threats

+ The use of tumble dryers will make my product redundant

+ A competitor may come up with an idea the same or similar, which would threaten my main selling point, originality.

+ Inflation rates, the strength of the pound and employment rates affect the public’s disposable income. If this is low, my product will not sell as much as if it was high and the public had more to spend on luxury goods.

+ Technology may advance, leaving my product out of date. This would lessen its appeal greatly, as the public usually wants the most recent technology.

+ The weather is a factor I can’t control, but yet it may determine when or if my product sells. For example, I shouldn’t market the clothesline in a country that has a low annual rainfall, as it would be redundant and I would have wasted money. Also, I predict that ‘No Worries’ will sell better in winter in the UK, than in summer, because of the hot weather. Without substantial rainfall, my product has no use

Monitoring Environmental Forces

My company will monitor environmental forces over the next five years using environmental scanning. This is the process of monitoring and analysing the marketing environment of a company. I must define a range of forces that require monitoring. These must be the environmental forces which the business thinks will have the most impact on its future prospects

In order to monitor these forces, my company must gather data, news, and information relating to my product and its competitors. Anything that could affect either productivity or sales of ‘No Worries’ clothesline must be closely monitored and appropriate action taken. For example if a competitor produces the same product but sells it at a lower price, my business would be badly affected. It is important that this is caught early so as action can be taken in retaliation, i.e., lower my price or some other selling strategy.

Once all the relevant information has been collated, my company would build a database of this information. This would enable us to produce forecasts, and scenarios to help us with strategic decision making.

Benefits of environmental scanning are better decision-making, better general awareness of and responsiveness to environmental change, improved market analysis, and improved resource allocation and diversification decisions

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