Personal Digital Assistant the Sonic

Personal Digital Assistant The Sonic 1000 PDA Pricing a) According to the marketing plan overview, the Sonic 1000 PDA targets two main segments: consumers (students and professionals having a medium to high level of income who are said to prefer lower prices and extended memory and functionality) and organizations (companies wishing to endow their workforce with strong, long-lasting, easy-to-use and customizable PDAs which allow employees to permanently receive up-dates from their firm despite not being at the office, and medical users trying to find a substitute for bureaucracy) (Kotler, Keller, 2003).

Consequently, the segment which appears to be more sensitive to prices is the one comprising consumers. As these don't have the generous financial resources that organizations boast, they are more likely to compare prices and to make serious efforts in order to pay a reasonable price for such products. So, at first glance, one could conclude that individuals are more price-sensitive while organizations are less influenced by prices.

Implicitly, for the former category, the demand can be considered to be elastic (meaning that a certain decrease in price determines a higher increase in the quantity bought) while, for the latter category, demand behaves in an inelastic manner (i.e. A certain decrease in price determines a small/insignificant increase in the quantity bought).

Still, according to Tom Nagle (cited in Kotler, Keeler, 2003), there are several factors which influence the customers' behavior and attitude towards prices: a distinguished product, the absence of substitutes, the impossibility of comparing prices, the high level of income, a convenient ratio between price and maintenance cost, a prestigious high-qualitative product, the impossibility of storing the product, co-financing and so forth.

If we take a look at all these hypotheses and correlate them with Sonic's intention to position its PDA as the most multifunctional product for personal and professional use having a unique voice recognition system, it is quite probable for the product to be perceived as a distinguished, elitist one.

Therefore, if the company succeeds in convincing its potential buyers that the Sonic PDA has a superior system for voice recognition, boasts valuable features that only expensive brands possess and all these advantages are available to purchasers at a medium price, the sensitivity of customers can be significantly reduced.

Thus, even an individual having an average income who is supposed to pay higher attention to prices, could conclude that taking into account the complex characteristics of a Sonic PDA and the fact that he buys such a product quite rarely, it is worth spending a considerable sum of money for purchasing it. In conclusion, stating that the demand is elastic or not depends on numerous 'if clauses'.

In this context, the most rational course of action could consist of applying a market research method in order to determine the consumers' sensitivity to price. Thus, the company could sell the same product at different prices in the same geographic area for having a perspective on the customers' behavior or it can question buyers about the amount they would buy at different prices. Undoubtedly, these methods have their limitations but they can provide a quasi-accurate image of the consumers' sensitivity.

Consequently, if the consumers' segment proves to pay high attention to prices, Sonic should focus its marketing campaign on the affordable price at which such a sophisticated PDA is sold. On the other hand, if consumers make their decisions regardless of price (a fact which implies that they can easily opt for a more expensive brand), the organization should focus on differentiation by invoking the unique features that Sonic boasts. A b) There are several adaptations that might be useful for penetrating the market.

First of all, in order to stimulate distributors, Sonic should award them by offering a discount as a prize for accepting to sell and advertise the product. Moreover, distributors could be highly motivated by a significant discount offered when buying large amounts of merchandise. Secondly, a psychological subterfuge might be successfully used for attracting consumers.

In the beginning, the product may be launched with a higher price for making buyers perceive it as a sophisticated item and afterwards, a decrease in price could occur in order to emphasize the unique advantage of buying a prestigious brand at a low price that customers have. Yet, the organization should offer this reduction on a temporary basis because a prolonged promotion could result in a negative perception of the Sonic brand.

2) Promotion a) According to Kotler (2003), there are three steps that consumers take in a specific order depending on the involvement degree and the possibility of differentiating products. This behaviorist triad consists of the following sequences: learn-feel-do when consumers get involved to a high extent and the differences among brands are numerous; do-learn-feel, when the consumer is highly involved but he doesn't perceive a significant difference among brands; learn-do-feel, when the consumer is less involved and the differences among products are not considerable.

The analysis of these three prototypes and the complex technical nature of a Sonic 1000 PDA lead us to the conclusion that a customer is likely to behave according to the first pattern: learn-feel-do. This implies that, first of all, he wants to learn more about the advantages of this technique and the differences existing among brands. Secondly, he will take to a certain brand because of several features that make it unique in the buyers' opinion.

Thirdly, the potential client must be persuaded to act according to his preferences by purchasing the desired product. A b) in order to achieve all these objectives, the most effective promotional tools could be: advertising, PR and personal selling. Advertising is important because it can build brand awareness, a delicate issue which is said to be one of Sonic's weaknesses. Being given the numerous details that the organization must provide, print media become almost compulsory.

Thus, the lecturer can take his time and read the article in which he has a high interest. The advertising campaign can also include TV advertisements which exert a significant influence on brand recognition because of the audio-visual elements they use. Thirdly, the company may resort to radio and Internet for making its product famous. While the Internet has an impact similar to TV ads because of the visual effect, the radio plays a major role in terms of remembering a brand.

Yet, one should mention that the impact of these two media is much higher when preceded or accompanied by TV commercials. Additionally, advertising is also beneficial to the brand because it builds a positive image for the organization involved. Most consumers think that if a company affords to come into the lime light by creating commercials featuring its products, then it must be a large and famous one. Such inference can lead to a positive attitude towards the goods or services it trades.

As far as the message is concerned, commercials should focus on a rational perspective rather than on an emotional one because the product has complex technical attributes which are processed on a cognitive route and not on an affective one.

Therefore, ads should answer loud and clear to the following questions: "for what purpose may a PDA be used?" And "what are the main characteristics that differentiate it from the other brands?" Judging by the intentions announced in the plan, the unique selling proposition will be the product's advanced technique based on a voice recognition system available at a reasonable price. Secondly, Sonic can resort to personal selling because the product is quite complex and its features must be thoroughly explained to potential clients.

Thus, Sonic's representatives have the opportunity to effectively interact with customers and to answer all the questions that might hinder them from purchasing the PDA. This promotional tool could prove extremely useful as it explains the information presented by commercials and it succeeds in creating a friendly atmosphere between vendor and buyer, thus indulging a positive attitude towards the Sonic brand.

A c) Thirdly, despite being neglected by most organizations, public relations are very important in terms of building awareness and confidence in a brand because of its tools which are perceived as less commercial. Consequently, an excellent PR manager can persuade journalists to favorably write about a company or its products. Potential customers can read such articles revealing the positive aura of an organization without considering them commercials.

These lectures are very likely to be credible because many consumers still embrace the old adage:"if it is written in the newspapers then it must be true." Moreover, the PR department can organize trade shows where it can explain the advantages of using the Sonic PDA to both distributors and customers. In conclusion, PR plays a significant part because it ensures a favorable background for all the company's actions. 3) Evaluating marketing efforts a) 'Evaluation and control' is a final but important stage to any marketing plan.

In order to conclude if Sonic has successfully implemented it, the marketing manager must confront the results.