MARKETING STRATEGY AND DEVELOPMENT

Marketing Strategy and Development is the fourth stage of the New Product Development (NPD) process. This stage designs a marketing strategy based on the product concept, which is used to market the desired product, and the main intention being to form profitable relationships between the business and customers. Armstrong et al., (2009) commented that businesses use market segmentation, target marketing, sales, price and positioning to decide the target market to launch the desired product. Beech & Chadwick (2007) mentioned the creation of product prototypes in this stage in order to determine manufacturing feasibility and to assure the further development of the product.

Businesses must develop a marketing strategy through a set of marketing tools used to get a response from a target market known as marketing mix. As shown in the diagram below, marketing mix consists of the 7 P's which is product, price, place, promotion, people, process and physical evidence (Armstrong et al., 2009).

                                               

                                                           

Marketing Mix Diagram 

As suggested by Woodrose (2004), pricing strategies for a product is essential to determine if the price needs to be cost orientated, competition orientated, or customer orientated, and strategies such as market skimming and marketing penetration is often used (cited in Armstrong et al., 2009). The target market for the desired product (dunk-pad) being amateur basketball athletes coincides with the current participation rate of basketball in the UK having 60% of participants between 16-19 of all gender groups compared to other sports (Sport England, 2009). The desired product could be low priced in order to sustain the product in a niche market, thus, low margin cost price and increased profits (Armstrong et al., 2009) in a period of time if successful.

                                                            

 Product Positioning Strategy

Product positioning strategies helps to place the product in the target market versus the competition as shown in the diagram above. Positioning strategies helps differentiate the product from the substitute products, this is often accomplished by focusing on the usage environment (e.g. specific for amateur basketball athletes), attributes of the product (e.g. increase effectiveness and fluency of slam dunks), price (e.g. discounts for students in schools and colleges), association with endorser (e.g. Allen Iverson : 1.83 m- athlete height and Dunk pad), competitive difference (e.g. athletic propulsion labs shoes), by specific use (e.g. basketball dunking styles), niche advantage (e.g. new product in market), and lifestyle (e.g. basketball enthusiasts) (Beech and Chadwick, 2013).

Beech and Chadwick (2013) suggest the importance of promotional strategies which help to communicate and share awareness with target market through sales promotions, advertising, online selling, sponsorship, and publicity. The desired product (dunk pad) could be promoted through such strategies, for example, Slam Dunk contests for amateur athletes at basketball half-time events, television shows, shopping malls, etc, which can help turn into a social game of its own. Finally, the chain of distribution of the product which is essential part of the marketing process. For example: the chain of distribution for the desired product (dunk pad) could be retail outlets such as JD sports, Sports Direct, Decathlon, etc, online stores, basketball events, and several other distribution methods.

                               The diagram above helps to determine the importance of the Dunk pad

References

Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2009). Designing a customer driven marketing strategy and marketing mix. Marketing an Introduction (pp. 187-266). Essex: Pearson Education Limited.

Beech, J., & Chadwick, S. (2013). Sport Marketing. The Business of Sport Management (2 ed., pp. 187-201). Essex: Pearson Learning Limited.

Beech, J., & Chadwick, S. (2007). Moving sport marketing forwards. The Marketing of Sport (pp. 397-465). Essex: Pearson Education Limited.

England, S. (2007). Primary Offer Data Information Pack for Basketball. Active People Survey, 1, 1-10.