Introduction
As indicated in the marketing plan, Sony Corporation plans to diversify its operations to emerging markets in developing countries such as Brazil. The company has established a new market niche that is comprised of middle aged people that can purchase its music system. The market is large and is characterized by other competitors such as Samsung and LG. In addition, the market is characterized by free entry and exit of firms. In order to maximize on its market niche in Brazil, Sony Corporation should market its music system to its new market. For effective marketing, the firm needs to set aside a large sum of funds that will be used for different marketing functions (Kitchen & De Pelsmacker, 2004). The proposed budget for the marketing department for Sony is indicated in the table below.
Marketing budget estimates for Sony Corporation
Discussion
From the above table, it is clear that marketing of the music system of Sony will cost the corporation a good amount of money at least for the first quarter of its foreign venture. The allocation of the funds as seen will be on different cost items.
First, the firm needs to increase awareness of its music system to online customers. Technology has advanced and many people are increasingly doing business online. The ability of Sony to establish a website is significant because it will enable the firm to tap revenue from its online customers in the emerging market. Online customers may not come from Brazil alone, but other countries as well. A website should be accompanied by a blog on which the music system will be described by the firm while allowing customers to post their feedback on different company features. The cost of website tracking must be incurred because it helps the firm establish the level of customers’ traffic to the website of the company. In addition, out of the total number of visits to the website, tracking will determine the sales conversion. Lastly, online campaigns can be effectively carried on the company’s website besides marketing the music system on other websites such as social sites (Schenk, 2012).
Sony will have to incur more costs on SMS where by the firm will be sending potential customers SMSs to convey information on the promotion of music system. Print magazines are a significant way of marketing the firm’s music system. The magazines can be sold at a low price to allow as many potential buyers as possible to access them. Magazines on Sony’s music system are also related to the catalogue of the company’s products. However, the catalogue is more detailed as it indicates all products of the firm and their prices.
Road shows are other ways that Sony can market its music system. This is one of the items in marketing that consumes much money as it involves moving from one region to another while publicizing the music system of Sony. Last is the sales team that has to be trained on marketing strategies to be applied in marketing the music system of Sony. The team will have to be paid especially at the beginning and at the end of the training. Marketing is a continuous process and it has to continue even when the firm has gained a dominant position. However, the budget for marketing can only be for the first quarter of the financial year that begins from March to May. The road shows and online campaigns are the activities that will consume much of the marketing funds.
References
Kitchen, P. & De Pelsmacker, P. (2004). Integrated marketing communications: A primer. London, Routledge.
Schenk, B. (2012). Small Business Marketing Kit for Dummies. (3 ed.). Hoboken, NJ: John Wiley & Sons.