1. Author: Fernando Carranza
Theme: Director de Marketing Chrysler y Socio FOCUSS Marketing
Article Title: Demand, Segmentation, Positioning, Life cycle....
One of the most important tasks for a company is estimating the demand for their
products and services.
It is not a trivial matter. However, it does require a lot of data analysis and application
of the postscript intuition (*) which is not exempt from risk.
Imagine your company is considering introducing a smartphone (SP). Or better yet, you
are the driving force behind the initiative in your company's executive committee. You,
as a business leader, will have to check the likelihood of the idea’s commercial success.
First,by estimating the demand and selling price thatwill allow a determined number of
units to make the SP profitable. This will be your commitment, if your company finally
decides to launch the product.
During the first launch year, the sales estimate and agreement sets a series of tasks in
motion such as: buying / agreeing on a certain amount of casings, connectors, touch
screens, microprocessors, applications, basic software, speakers, headphones,
batteries, etc. If it falls short, you will have to deal with a problem of excess demand
and if it isn’t successful, you will have to manage excess stock.
In the latter case, there will be a possible decrease in the expected profitability.
You must also estimate the brand launch budget needed to build and publicise the
product and its position in the market so that it can reach sales estimates. If now more
than ever, distinction is crucial in all sectors, imagine how it is in a competitive market
such as mobile phones. Positioning the brand and product is a strategic task with both
short and long termeffects.
As the market is very dynamic and competition is very reliable, you must estimate the
life cycle of the SP, (how many years will it be sold on the market until its total
renovation) and how will it sell each year, and its corresponding expenses and
investments during its life cycle.
And from all this you must ask yourself.... is it better to launch an SP for young people
or a complete range of SPs to target all customers? E.g. Whether it would be better to
segment the market and select one or several target markets.
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2. Exciting !!!!!
(*)Postscript intuition: Creativity after analysing objective data.
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