Introduction
Sony is a multinational corporation that records some of the highest sales revenues globally in the semiconductor industry. In order to continue playing its role in the competitive global industry, the company has a mission of creating value for its stakeholders and improving the quality of life for the next generation of people across the globe through better innovations.
Vision
As a dominant firm in the semi-conductor industry across the globe, Sony has a vision that it must seek new approaches that transform the firm’s ability to achieve profitability and growth that is sustainable in the long run.
Marketing Objective
Through the combination of the above aspects of the vision and the mission, Sony Corporation aims at meeting specific needs of its stakeholders through development of better products. This could be achieved if the firm:
- Becomes the first technology leader in the industry
- Produce high quality innovative products that meet specific consumer needs.
Developing a Growth Strategy
The growth strategies can well be developed in various ways through the utilization of the Ansoff Matrix. The matrix determines the best course of action for the firm to undertake. The matrix can be represented in the table below.
Penetration of the Market: this aspect of the strategy aims at increasing the market share of the corporation since it aims at increasing new customers for the music systems of Sony. Given this strategy, Sony Corporation could achieve it by pricing its products at a favorable price that is affordable by consumers. It could also re-brand its music systems and increase its budget on marketing the products.
Market Development: this strategy involves Sony Corporation taking the developed music systems into new markets especially in emerging markets through expansion of the distribution networks and establishing strategic partnerships in emerging markets. Moreover, Sony could find new uses for its Sony music systems such as use in commercial places rather than domestic use only (Mills, 2002).
Development of the Product: this strategy involves modification of the music system to fit into specific customer needs. For instance, the use of the system in commercial places could be different from the system use at home at this may require development of products for different customers.
Diversification: this strategy involves a venture into markets that are completely new to Sony. This means that the firm could venture into new markets in different countries such as other developing nations that the firm has never ventured in. this strategy requires undertaking of a research concerning the new market and its viability as the firm’s product destination. This could be followed by research and development of music systems that fit into the specific needs of the new market.
Pricing Strategy
Pricing of the music systems is significant for Sony because price is a sensitive factor that most consumers do consider in the course of their purchases. The generic strategies established by Porter are significant in establishing the prices of the music systems of Sony (Porter, 1998). The aim of the pricing of the music systems is to establish a competitive advantage of Sony over its competitors in the same industry. Cost leadership is a significant strategy that can be used by Sony to sell its high quality music systems at a lower price as compared to the firm’s competitors such as Samsung and LG. Differentiation strategy will enable Sony to differentiate its music systems using various aspects such as output and color among other features. The strategy makes the products of the firm outstanding as compared to competitors. The focus strategy on the contrary will enable Sony to focus on a given segment of the market such as the lower and middle classes in the society and develop systems that fit these market groups’ needs.
The Marketing Mix
The marketing mix involves establishment of the various elements of marketing for the music systems of Sony Corporation such as the product, price, promotion, place, procurement activities and distribution channels.
Product: Sony has a variety of products that it sells to its market in different locations across the globe. The major products that the firm boats of in the music sector include the home theater, home audio, and portable audio among other products sold by the firm. The focus of Sony Corporation should be products that are highly marketable and are grouped as starts using the Boston Consultancy matrix. Given that the firm produces many music systems, home theaters are known to provide high revenues for the firm and the company should focus on them so that it can generate fast revenue in the new markets. Products that have low sales should not be the focus for the firm (Schultz, et al. 2007).
Price: as one of the most significant aspects of marketing, the price of music systems sold by Sony should be chosen carefully. Skimming could be used in low market penetration as high prices are charged for premium home theaters. Comparable pricing should be adopted by Sony in markets where the firm is not dominant. This will enable the firm establish prices for the home theaters based on prices already set by dominant players. Lastly, market penetration strategy could be applied by Sony Corporation with the intention of penetrating in the new market. The strategy allows the firm to set new low prices as compared to competitors in the new market.
Place: the element involves establishment of the means through the firm will distribute its products to the outlets throughout the new market. It could be through dealership or online shopping. It also entails the way through which Sony could attract new retailers as well as maintenance of premium appearance for the distribution network.
Promotion: promotion is usually done with the aim of increasing awareness of the product among consumers. It is the discipline of marketing communications and involves highlighting the strengths of Sony’s home theater brand as opposed to other brands in the market. The promotional mode to use could include advertising through the print media, broadcast media and electronic marketing. A given amount of duns should be set aside by Sony specifically for promoting the home theater brand in emerging economies across the globe.
People: they refer to the employees that are in direct contact with the consumers. Their training on how to effectively handle the customer matters since they determine the level of sales for the firm. Where necessary, Sony could outsource its sales personnel especially if sending its sales team to the market would be costly.
Process: this element of the marketing mix involves establishment of clear procedures that the sales team of Sony should employ while delivering the services and products to the customers (Kitchen & De Pelsmacker, 2004).
Targeting and positioning of Sony’s Music System
Venturing into a new emerging market for Sony would require that the firm positions itself well. This could be achieved through effective segmentation of the market in order to attain all relevant features that characterize consumer needs. This should be followed by targeting a given group in the market and thereafter positioning the product, which involves using relevant strategies such as public relations to ensure that consumers perceive the home theaters of Sony in a positive manner.
References
Kitchen, P. & De Pelsmacker, P. (2004). Integrated marketing communications: A primer. London, Routledge.
Mills, G. (2002). Retail pricing strategies and market power. Melbourne: Melbourne University Publishing.
Porter, M. (1998). Competitive strategy: Techniques for analyzing industries and competitors. New York, NY: Simon and Schuster.
Schultz, D. et al. (2007). In search of a theory of integrated marketing communication. Journal of Advertising Education, 11(2), 21-31.