Introduction
A market opportunity is any newly identified need, desire or demand that a firm can exploit because it is not being addressed by their competitors. It therefore forms part of a gap in the market between the firm’s products and consumer satisfaction.
In handling this case, I would refer to three web based firms to include: The IPod firm, Coca Cola beverage firm and the breakfast cereal firm. Many business firms with development strategies seek to match the market organizations to the organizations available resources and the objectives. It is prudent to develop a framework of the broad categories of marketing opportunities since many administrators and managers are never so innovative. Several models have been applied as better organizational tools in developing market expansion strategies. There are four major types of marketing opportunities, however, only three may be of significant at this level. Such marketing opportunities include: Market penetration, Market development, Product development and diversification.
Market penetration involves the need and desire to increase the sales of the present products of a firm within the present market. It entails selling to more customers within the target market portion. Market penetration is done electronically to sell existing products to the same consumers. In the case of an electronic firm, Market penetration is important to a firm because it increases the customer reach within the same market structure from say 30% to about 70%. When the IPOD manufacturer introduced the web advertisement strategy, its customers assumingly increased in number therefore promoting the sales within the usual and everyday market as per the firm’s target. It encourages the sale of mainstream firm products and other related equipment within the same market cycle. This therefore makes this marketing opportunity more profitable to the firms that would use.
Product development as a marketing opportunity refers to the changing of the packaging system, developing additional flavors, colors and other useful ingredients or raw materials involved in the reproduction of products and services. In the case of a food beverage firm that manufactures cereals, an extra increase in raisins in new boxes will attract more customers but just within the original market organization thus promoting it sales and profitability. This would be a singles opportunity since the consumer will tend to purchase more of the products from only one company or firm. Another case of market development can be in reference to the electronic company that manufactures and sells MP3 players whereby a new brand of the products with the ability to download music directly from the internet would attract more buyers who in the case would still be purchasing products from the same firm but with modifications. It is therefore a marketable and profitable opportunity that would increase the firm’s profitability.
Diversification as a marketing opportunity involves the action of developing new products in order to take advantage of the power and fame of the brand examples. A cereal company would take a market advantage of selling the cereals but at the same time establishing restaurants and bars for preparing and selling the readymade meals of the same cereals with an aim of reaching the loyal customers who might have the willingness to purchase the product but might not have the time to cook. This can be categorized as a low- hanging fruit strategy since it would take much risk in establishing such consumer restaurants to facilitate the product consumption. Loyal consumers are therefore reached at a lower cost thus the market gets expanded and diversified both to the direct and indirect consumers of the products.
Summertively, the diversification opportunity and strategy is the most preferred in business firms since it ensures a wider reach of consumers linked to the firms. It would in turn ensure maximum profitability and improve customer relations to the firm making a good step in the market structure.
Conclusion
Marketing opportunities are gaps existing in the market due to a need that is not satisfied by the firm’s products giving company competitors a chance to exploit by struggling to produce products to satisfy the existing need in the market. Marketing opportunities include diversification, product development and market penetration. The opportunities are majorly aimed at increasing the company sale of products to many consumers but always within the target market. Improvements are made on products to attract more consumers; advertisements are launched through media to penetrate the market and in overall courses, the product diversification is also a major marketing opportunity that is key in reaching the loyal consumers at all cost.
