Definition and Description of a product: Saras Sarasvathy’s Case Study
In the modern business, the identification and selection of a target market has become a crucial decision for any business. The selection of a target market requires a business to divide the market into segments that constitute potential clients with different needs. After the market has been divided into the various segments, the business selects the customers with the urgency of the product being offered. Marketing is a set of activities that businesses establish to facilitate and expedite exchanges with the ideal customers in the market. Thus, the marketer presenting the product in the market for any business should identify the features that make the product to be unique and different from other products in the established market. Therefore, this paper identifies the target market, defines it, and identifies the competition in Saras Sarasvathy’s case study.
Identification of the Market
The Product’s Market
From the review of the Saras Sarasvathy’s case study, it is clear that the product developed needs to be placed in the most efficient market. Before the introduction of this product, it is important for Entrepreneurship, Inc. to consider the potential customers and the factors critical in the identification of the target market.
The potential customers for the product launched by Entrepreneurship, Inc. will be determined by finding out the needs of different segments in the market and if the product will satisfy the segments wants. The potential clients identified by Entrepreneurship, Inc. for the product include a group of young youths, adult, and a group of educators (Inc. Staff 2016). The potential competitors are video games companies that focus on learning and teaching techniques. With the business identifying the potential customers in the market for venturing product, the marketer at Entrepreneurship, Inc. should receive crucial information from the three groups of the potentials buyers. For example, Entrepreneurship, Inc. marketer hopes that the potential buyers will give out information regarding their taste and preference, income level, and what makes them buy from other businesses. For the Entrepreneurship, Inc. to find out this information, the business will carry out a market research through market testing. For example, the business can introduce the product to the educators group through advertising and use the customers buying behavior to track sales and level of competitiveness, which will allow Entrepreneurship, Inc. to validate the success of the product (Inc. Staff 2016). With the business identifying the potential customers, market competitors, and crucial information relating to the market, Entrepreneurship, Inc. growth possibilities include learning new skills that the business can use to improve its competitiveness and maintain its position in the market.
The customers within the market have unique desires; hence, the customer’s uniqueness and desires are used to define the market (Inc. Staff 2016). Conversely, to identify the potential customers for the venturing product, Entrepreneurship, Inc. will be required to take into consideration specific factors. Some of the crucial factors that the business will consider include how well the potential clients will be managed, the components that will make the product attractive, and the level of the customer’s interest, especially for the use of the product introduced in the market.
Product Uniqueness
The product is unique and different in its own way. These factors will determine the effectiveness of the product in the market. What makes the product presented in the case study to be unique and different is its functionality. The functionality of the product gives it a unique selling position, hence, differentiating itself with other product set to offer similar services. The sophisticated multi-media interface makes it a product that can be used in different platforms. Additionally, the product is designed to serve different markets and customers across the limits of age and targets a sector with no stiff competition.
Defining the Market
Factors Considered when Defining the Customer Base
The factors to define the customer base for the consumption of product should relate to the three groups targeted by the company. First, the marketer should look at the consumer’s income level, as this will determine the customer’s purchasing power of each group. Evidently, the income level of the group that the Entrepreneurship, Inc. target is a key issue of concern for the marketers; if the business understands the income level of the group focused on the business, they will be in a good position to determine the pot
entiality of the clients in terms of purchasing power. Based on the educators group that was used to determine the consumers’ purchasing power, the majority of the participants reported that they are willing to pay over $150 for the product since the group found the product exciting and related to their daily tasks (Inc. Staff 2016). Although the young people and adults had the capability to purchase the product, the educators’ group has a stronger buying power.
Gender and age bracket are other factors that the Entrepreneurship, Inc. needs to consider before identifying customer base for this product. As the business categorizes the targeted customers according to their age, the group of young adults focused on the business is 15 and 25, while for the adults, and educators are in the age bracket of over 25 years (Inc. Staff 2016).
Pros and Cons of the Group Focused on the Case Study
Each group of focus has both pros and cons and before identifying the customer base for the product, the marketer should look at these concepts. The pros of focusing on the young people group are that this group will gives the business the fast feedback it requires concerning the product (Inc. Staff 2016). Since most of the young people are actively using the internet, they will provide the marketer with crucial regarding the product’s performance, competitiveness, and complains. However, the group has some disadvantages, which may include failing to take the product for business purposes, which serves as a crucial target for the product.
Conversely, the adult group gives the marketing team supportive information that the Entrepreneurship, Inc. can use to make the product more attractive and efficient for the group. However, the adult customers may fail to provide the marketer with reliable information because they might lack the required knowledge concerning the product and how gaming can be used for education purposes.
Finally, it will be advantageous for the marketer to focus on the educator’s group because the group will provide basic data to the marketing team, especially information about competitors. The group can be disadvantageous to the marketers, especially when accessing them. Most of the people who will participate in the research are working, making it costly, and time consuming to assess and get feedbacks from this group. As such, the research will need to use significant resources and time to record data from the educator’s group.
Critical Decisions
From the survey presented at the Saras Sarasvathy’s case study, one can see that the findings that portray the definition of the market and how each group researched on can influence the definition of the market for the product (Inc. Staff 2016). Entrepreneurship, Inc. will critically make the decisions on the customers to serve according to their potentiality and interest. Some of the decisions that Entrepreneurship, Inc. will make relating to the group that it will focus on include selling the product at a discount so that it can promote the product and increasing the total sale. Another decision may include carrying out direct marketing, where the business marketers will engage directly with the consumers in the market.
Competition
Competition is always there in the market, and if a business needs to become efficient in its own ways, it should implement decisions that make it competitive and innovative. For the case of Entrepreneurship, Inc., the business needs to use the most effective business models to bring the product to the market (Inc. Staff 2016). Some of the business models that Entrepreneurship, Inc. should use to make the decision that will determine product competitiveness include pricing, market segmentation, and the effective sales and marketing strategies.
Recommendation
Launching new products in the market is a challenging task for many businesses. For businesses that want to be competitive with its product, it is important to consider the strategies to use in the process of launching the product. During the launching process, Entrepreneurship, Inc. should keep the product rolling into the market. This implies that the company should continue to provide crucial information that makes the product unique to the consumers. As such, Entrepreneurship, Inc. needs to keep the consumers in touch with news concerning the product, which may include how the product can change the life of the consumers and the success of the product within the market.
In addition, a business can also expand the product’s market and diversity when launching the product to meet different tastes and preferences. Entrepreneurship, Inc. will focus on selling the product to the educator’s, but to expand the sales of the product Entrepreneurship, Inc. can also select to sell the product to the young people and adults who has an interest in using the product.
For Entrepreneurship, Inc. to sell its product, the company should use the most effective strategy. Therefore, Entrepreneurship, Inc. should sell its product by getting an influential business partner. For example, to sell venturing product in the market, the company can use the best distributors as their partner and an organization focused on curriculum development. The business can also sell product through social network platforms, where customers will get an opportunity to review and know more about the product at limited, or no costs.
Making the Final Decision
Before making the final decision, Entrepreneurship, Inc. should evaluate the consumer’s response, monitor their buying behavior, and review their feedback. Based on the consumer’s feedback, the business should launch its product with the focus of selling it to the educator’s group. The company needs to consider using the internet for marketing the product, as most of the educators can use the internet to download the product. For the business to ensure that the product reaches more customers, it should create a sales plan for specification and accuracy. Some of the factors that have been considered in coming up with the final decision include the feedback from the target group, the product launching strategy, product management, and the number of the customers in the market.
Summary
From the discussion, it is clear that to bring venturing product in the market, Entrepreneurship, Inc. had to define the potential segment according to specific criteria. For Entrepreneurship, Inc., the segment selected for the product is meaningful, as the group is sufficiently large, measurable, and accessible. From the look of the market findings, it is evident that the educators’ segment is importantly wide and the group is economically fit for the product. The group is also quantifiable, as the data regarding the segment are measurable, making it concrete for Entrepreneurship, Inc. to select and identify it as the major group for the product.
Entrepreneurship, Inc. carries out a research before the product is introduced for sale to specific market segments. The company launches the product by considering the most accessible group and then makes the decision to advertise the product by collaborating with potential distributors. The final aspect that Entrepreneurship, Inc. looks when introducing the product in the market is the level of competiveness. Here, the company aims at bringing the product in the market in a strategic manner, so that it can make the most sales and capture a wider market share within the market.
References
Inc. Staff (2016). Saras Sarasvathy’s Full Case Study and Questions. Retrieved from: http://www.inc.com/magazine/20110201/entrepreneurship-interview-and-business-case-study.html
