Essay About Target Market And Potential Market

Myths and Realities of Team Work
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Assuming I have inherited a company that makes and sells packaged ice. Traditionally the company has been selling to commercial users such as restaurants, supermarkets and food distributors. On inheriting the company, I decide to expand the company consumer base to include consumers that is selling directly to consumers. To achieve this, the company needs to have a new marketing strategy. A marketing strategy in general sets a target market and a marketing mix. It is a ‘big picture’ of what the company will do in order to gain a competitive advantage.  The potential market will be divided into two general strategies i.e. Market Penetration and Market Development.Penetrating the MarketThe company needs to penetrate the Consumer market. Penetrating a market is considered to be the safest of the growth strategies (Kokemuller, n.d.). Significant research into the marketplace, consumers and available products must be conducted in order to best prepare for market penetration. As an adjunct to the initial research, data gathering must also take place as pertains to any competitors’ product in order to determine market saturation and potential available from current customers of the competitor brand who may be persuaded to purchase more product Winer & Dhar, 2011). After determining distinguishing factors in both the newly acquired packaged ice branch as well as competitors’ products, a strategy can then be formulated with which to make the consumer ice brand unique and attractive to consumers

Apriority search is to determine if there are opportunities in the market to accommodate packaged ice. Aggressive pricing can be used to gain leverage on competitors, which will lower profits., this can be offset by sales of larger quantities. However, this tactic will only be successful in places where pricing determines the sale of goods. Another tactic available is marketing campaigns, advertising in multiple media formats including radio, television and internet. This will not only allow brand recognition but will keep the brand fresh in the mind of the consumer.Market DevelopmentBecause the first segments to be targeted for advertisement generally show the best potential for profit (Kokemuller, n.d.), once penetration modes have been thoroughly researched, actual, market development implementations begin. Advertising reaches vast audiences, using radio, television, billboards, social media and print media is a sound decision. Pricing is another strategy, because actual ice production costs are low, charging less than competitors allows for greater chance of successful venturing. The four “P” s of marketing will also be used to determine how to boost product sales in new markets as shown in the drawing below (marketing mix.co.uk, n.d.).[pic 1]Value PropositionThe value proposition is “the most important component of the core strategy” (Winer & Dhar, 2011). This is a summary of why a consumer should purchase one product over a similar competitor’s product (Winer & Dhar,2011). In this case, it must be created by taking into account the target clientele, the role of the packaged ice, why possible alternatives might fail and demonstrating how this organization’s product is the best in the industry. The last must be demonstrated factually in order to hold ground. Additionally, the product must be eye-catching and unique so that it naturally draws the attention of the consumer.