Definition and Description of a product: Saras Sarasvathy’s Case Study
Introduction: 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 (Kotler & Armstrong, 2006). After the market has been divided into the various segments, the business selects the customers with the urgency of the product being offered. Kotler and Armstrong (2006) note that 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 Venturing product needs to be placed in the most efficient market. The marketer is set to introduce a computer game of entrepreneurship to the market (Inc. Staff 2016). Before the introduction of this product, it is important for the marketer to consider the market segment and the factors to consider in the identification of the best customer for the product. Potential customers include business students, entrepreneurs, business owners, managers and educators.
The market for the Venturing product will be determined by finding out the needs of the customers in the market and if the product will satisfy the customers wants. The customers within the market have unique desires, hence, the customer’s uniqueness and desires are used to define the market (Inc. Staff 2016). On the other hand, 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 Entrepreneurship, Inc. 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 (Kotler & Armstrong, 2006).
Product Uniqueness
This product is unique because of its innovative learning platform providing real-world business decision scenarios via an immersive video game engine simulation (Inc. Staff 2016).. This functionality gives it a unique selling position. According to market surveys this is a unique differentiator from other similar product and competition (Inc. Staff 2016). 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 of varying age groups.
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, Entrepreneurship, Inc. should look at the consumer’s income level, as this will determine the customer’s purchasing power of each group (Kotler & Armstrong, 2006). Evidently, the income level of the group that the business target is a key issue of concern for Entrepreneurship, Inc.; if they understand the income level of the group focused on the business, they will be in a good position to determine the potentiality 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 (with modifications) 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 business needs to consider before identifying customer base for this product. As the targeted customers in this case are categorized 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, Entrepreneurship, Inc. 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 Entrepreneurship, Inc. 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 Entrepreneurship can use to make the product more attractive and efficient for the group. However, the adult customers may fail to provide 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 Entrepreneurship, Inc. to focus on the educator’s group because the group will provide basic data on how the platform is best used for training purposes. They may also be used to provide information about competitors. The group can be disadvantageous to the marketers in terms of accessibility. 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 market is defined by educators and students, and how each group researched on can influence the definition of the market for the product (Inc. Staff 2016). Entrepreneurship, Inc. will need to make their decisions on the customers to serve according to their potentiality and interest. One of these decisions will be to 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 Entrepreneurship, Inc. 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 (Kotler & Armstrong, 2006). Entrepreneurship, Inc. needs to use the most effective business model to bring the product to the market (Inc. Staff 2016). Some example include pricing, market segmentation, and the effective sales and marketing strategies.
Recommendation
Businesses that want to be competitive with its product need to consider the strategies to use in the process of launching the product (Kotler & Armstrong, 2006). During the launching process, the business should keep the product rolling into the market (Kotler & Armstrong, 2006). This implies that Entrepreneurship, Inc. should solicit customer feed need to keep product unique and relevant to the consumers. As, the business 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, Entrepreneurship, Inc. can also expand their market and diversity when launching the product to meet different tastes and preferences (Kotler & Armstrong, 2006). In this case, the business will not only focus on selling the product to the educators, but can also diversify by offering to sell direct to the young people and adults.
A business should get an influential business partner involved in the launching of the product (Kotler & Armstrong, 2006). For example, to launch the product in the market, the Entrepreneurship, Inc. can use the best distributors channels as their partner or n organization focused on curriculum development. The product can be launched 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, the business 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 an effective segmentation should be defined 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. Finally, from the look market research presented at the CASE, it is apparent that adults and young people are often difficult to reach in relation to the product presented in the market. As the educator’s group shows the marketer that they have a certain interest in the product, this makes the group accessible and the effective segment for the product.
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
Kotler, P., & Armstrong, G. (2006). Principles of marketing. Upper Saddle River, N.J: Pearson Prentice Hall.
