| Introduction | | | | of commitment in terms of the kind of product that |
| The essay shall examine the case of Aldus | | | | it brings to the table. |
| Corporation. The company has been a leader in the | | | | The latter target markets could also require different |
| desktop publishing market since their inception. | | | | distributional strategies with more emphasis on |
| However, the firm’s marketing manager (Richard | | | | distributor education in the graphics professional |
| Strong) has identified some foreseeable problems | | | | target market than in the business market. |
| that would require a paradigm shift in the | | | | Stages of the productive cycle |
| company’s positioning strategy. The essay shall | | | | All products in business have a life cycle and the |
| examine the new positioning strategy alongside other | | | | same may be said of products offered by Aldus. In |
| marketing issues prevalent in the Company. | | | | general however, there are four main stages of the |
| A proposal to alter positioning strategy | | | | product life cycle, these include |
| Richard Strong made a proposal to offer Aldus’ | | | | - Market introduction |
| PageMaker under two major divisions. This would | | | | - Growth stage |
| involve creating two separate versions of PageMaker | | | | - Mature stage |
| to suit the needs of the company’s major | | | | - Saturation and decline (Rey et al, 2004) |
| segments i.e. the graphics professional and the | | | | The market introduction phase usually occurs when |
| business user. These two divisions would differ in | | | | the product has just entered the market. At this |
| terms of their size with thirty percent of the product | | | | point companies are likely to record low sales volume. |
| being concentrated on the graphic professionals | | | | Also, the company is likely to meet minimal |
| segment while the rest would be dedicated to the | | | | competition. This is usually when it is trying to |
| business segment. Additionally, the kind of features | | | | educate its target clients about the products. The |
| available in each product line would largely depend on | | | | second stage is the growth stage. At this point sales |
| the needs of the latter mentioned segments. The | | | | volumes start increasing significantly. Furthermore, |
| creative graphics professional version would need | | | | the product may be considered profitable and may |
| greater technical assistance, greater sophistication | | | | also require less input in production (Compared to the |
| and would have to be attuned to other types of | | | | introduction phase) at this stage, the public is usually |
| software such as image scanners. On the other hand, | | | | informed about the commodity and this may attract |
| the product catered for the business segment would | | | | a few competitors. (Rey et al, 2004) |
| need to be made less complicated and should require | | | | The third phase known as the mature stage is the |
| minimal training before use. Also, it should have the | | | | point at which minimal publicity occurs. Usually, |
| ability to incorporate automation in the process of | | | | companies begin registering lower profits, lower sales |
| performing business functions. (Ryans, 2002) | | | | increases, higher competition, lower prices for the |
| In other word’s Strong’s strategy requires | | | | product and brand differentiation. Lastly, a |
| dividing the company’s brand positioning. This is | | | | product’s last phase is the saturation and decline |
| quite different from what they company had been | | | | phase. At this point, sales volumes stagnate, cost of |
| using in the past because they responded to all | | | | production exceeds its optimum level, prices of the |
| Desktop publishing needs of their diverse clients with | | | | product go down and it becomes very tricky to earn |
| just one line of products. The company’s | | | | any profits. (Rey et al, 2004) |
| positioning has been based on this aspect. However, | | | | The stage of the product life cycle that applies to |
| Strong’s proposal advocates for a change in | | | | the professional version of Page maker based on the |
| strategy in that the company can meet specific client | | | | new vision for the company |
| needs with different products. (Ryans, 2002) | | | | Based on the new vision for the product, it is likely |
| Differences between consumer and organizational | | | | that the product under consideration will fall under the |
| markets | | | | second stage. As it had been stated earlier, the |
| Organizational consumers purchase desktop publishing | | | | second phase is characterized by increases in sales. |
| software in order to enhance the attractiveness of | | | | This would be the case if the professional version of |
| their documents by placement of graphics. On the | | | | PageMaker was introduced into the market i.e. it |
| other hand, consumer markets usually utilize Desktop | | | | would cause greater increases in sales because of its |
| publishing in order to enhance the publishing process. | | | | ability to meet specific needs for the graphical |
| Usually consumer markets targeted are those ones | | | | professional. Additionally, this product may not require |
| who have been engaging in manual publishing and | | | | as much input as was necessary when Aldus was |
| would like greater efficiency. | | | | just being formed. Since most of the codes are still |
| Consumer markets look for very different features | | | | there, then the company would only have to tackle a |
| in their desktop products in comparison to | | | | few issues here and there. (Rey et al, 2004) |
| organizational consumers. Usually, organizational | | | | This product would also fall under the second stage |
| consumers opt for desktop publishers that are | | | | because it would require some degree of public |
| simpler to use than consumer markets. (Ryans, 2002) | | | | awareness. Since the product is a new version with a |
| Consumer markets also differ from organizational | | | | different brand, usability functions and features, then |
| markets in the manner of purchasing desktop | | | | Aldus would have devote greater amounts of their |
| publishing software. Usually, organizational markets | | | | marketing resources to inform the public about their |
| have two approaches to making these decisions. In | | | | product. They would also have to employ sound |
| some instances, they may leave it to departmental | | | | communicating strategies to achieve the same. |
| heads. This usually applies to those companies with | | | | Lastly, this product would fall under the growth phase |
| less autonomy in work or with vertically oriented | | | | because profits will begin to increase when the |
| organizational structures. On the other hand, some | | | | PageMaker version is introduced into the market. The |
| organizational markets leave the software purchasing | | | | company will work on its distributional, product and |
| decisions to the respective individuals who will need | | | | pricing strategies by improving them, the overall |
| the software. Consumer markets on the other hand | | | | result of this would be greater profitability. |
| have an open approach to making purchasing | | | | Appropriate marketing mix for the professional |
| decisions. Here only that respective individual who will | | | | version of the PageMaker |
| be using the desktop publisher will make the choice | | | | The marketing mix will be examined under the four |
| of which software to use. (Ryans, 2002) | | | | elements |
| How these differences contribute to the positioning | | | | Product |
| strategy | | | | The product will have greater capabilities to meet |
| Owing to the fact that organizational consumers look | | | | client needs. It will meet the sophisticated graphic |
| for different features in their desktop publishing | | | | design needs of the professional. It will also leave |
| products compared to their counterparts in the | | | | room for technical assistance. Additionally, it will have |
| consumer market, then it would be necessary to | | | | greater ability to incorporate other software and |
| offer these two markets different versions of the | | | | hardware. The product will also meet the needs of |
| product tailor-made to their needs. In other words, | | | | the business client by having greater levels of |
| the overall differences between them necessitate | | | | automation, ease of use and also minimal need for |
| different approaches to product offering. Consumer | | | | technical assistance. (Marketing teacher, 2008) |
| markets have greater specificity of product functions | | | | Price |
| while organizational markets may not be that specific. | | | | Since the products in the new proposal will be |
| The reason for this is that one group i.e. the | | | | tailor-made to meet the needs of the high end user, |
| consumer markets are looking for efficiency in | | | | then their pricing will respond to their function. This |
| publishing while the other group i.e. the organizational | | | | follows one of the basic rules of marketing, that |
| consumers are looking for quality improvement in | | | | value addition usually boost a products ability to fetch |
| their documents. These varying needs have been | | | | higher prices. The business version of PageMaker will |
| met in the company’s product offering thus | | | | be much lower in price owing to its simplicity of use. |
| affecting its positioning strategy. This strategy is | | | | (Marketing teacher, 2008) |
| based in meeting various needs irrespective of a | | | | Promotion |
| client’s category. | | | | A number of avenues will be sought to adapt this |
| The manner of purchasing has also affected | | | | new proposal to the market. Aldus will have |
| Aldus’ positioning strategy owing to the fact | | | | dedicated considerable resources to media advertising |
| that the company has marketed itself as a leader in | | | | where they will educate their consumers about their |
| Desktop publishing. Consequently, this allows the | | | | new products. Besides this, there will be a need to |
| company greater leverage in terms of its image. | | | | look into the various types of products available in |
| Criteria for segmenting markets | | | | the market that can facilitate suitability of the new |
| Aldus has four major segments. They can be | | | | product. These advertisements will be created with |
| summed up as follows | | | | the aim of launching the product into the market. |
| 1. Business clients who use Macintosh | | | | (Marketing teacher, 2008) |
| 2. Business clients who are PC based | | | | The company ill also have to utilize personal selling in |
| 3. Graphics professionals who use Macintosh | | | | informing their consumer and organizational markets |
| 4. Graphics clients who are PC based | | | | about the product offering. Direct mail will also be |
| The Graphic professional who uses Macintosh | | | | another avenue that the company will result to |
| technology is one who need sthe PageMaker so as | | | | publicize the new product lines. |
| to eliminate manual methods of publishing and also | | | | Place |
| one who would like to conduct the publishing himself | | | | Distributional strategies will also have to be changed in |
| rather than look for outside services. This type of | | | | that the company will focus on mass retailing for the |
| market segment is made up of clients who are | | | | business version of their Page maker. The |
| interested in understanding the intricacies of using the | | | | professional version will entail educating distributors |
| PageMaker. Aldus was doing relatively well in this | | | | about the product because most of them have not |
| segment because it commanded a seventy percent | | | | been tackling this segment well. (Marketing teacher, |
| market share. However, future projections indicated | | | | 2008) |
| that the market would be saturated. | | | | Concept of perceived value |
| The graphics professional who uses PC technology is | | | | Perceived value occurs when consumers weigh the |
| one who wants to enhance their publishing needs | | | | cost of purchasing a commodity against the value |
| through the use of IBM. This market segment was | | | | that the product will add to their lives if they |
| largely in existence owing the fact that they worked | | | | eventually choose to purchase their item. The |
| for companies committed to IBM or the fact that | | | | concept of perceived value applies to almost all |
| IBM computers were cheaper. This was a small | | | | companies because every company needs to |
| segment. | | | | demonstrate to their clientele that their product will |
| The Business client who uses Macintosh technology is | | | | bring in greater returns compared to the amount of |
| one who wants to incorporate graphics in their | | | | money that they have to give out to purchase the |
| documents thus making them more presentable. This | | | | commodity. (Marketing teacher, 2008) |
| market segment is made up of people who do not | | | | How perceived value influences marketing strategy |
| mind talking the time to learn the particulars of | | | | Perceived value influences almost all aspects of |
| desktop publishing through PageMaker. Aldus was | | | | marketing. Prices have to be reasonable i.e. they |
| doing relatively well in this segment. However, their | | | | must not be too high otherwise clients will be put off |
| sales were affected by their strategic partner; Apple. | | | | by this. Conversely, they must not be too low |
| The business client who uses PC technology is one | | | | otherwise clients may assume that the product will |
| who would want to improve the appearance of their | | | | have no business value as was the case with |
| documents through Desktop publishing but still | | | | Aldus’ PageMaker at its inception. Additionally, |
| remains committed to IBM computers. Usually, such | | | | perceived value affects promotional strategies |
| companies have made a pact to stick to IBM. This | | | | because consumers have to be told about the |
| segment has not attained its full potential because | | | | benefits of the product. Aldus had to do this by |
| Aldus has not tackled competition from advanced | | | | informing consumers about the benefits of desktop |
| word processors. | | | | publishing. (Marketing teacher, 2008) |
| Proposed segmentation scheme based on specific | | | | The most likely causes for problems that Aldus may |
| market characteristics for Aldus Corporation | | | | encounter should it pursue selling to organizational |
| The new segmentation scheme under consideration | | | | buyers |
| proposes a two way method of segmentation. In | | | | Aldus may have problems marketing to organizational |
| other words, instead of concentrating on four | | | | buyers in instances where there are already other |
| segments, the proposal will focus on two segments | | | | Desktop publishing competitors providing them with |
| i.e. the business segment and the graphics | | | | the services. Organizational buyers tend to enter into |
| professional segment. Since these groups have | | | | long term arrangements with suppliers as opposed to |
| various needs, then there is a need to divide the | | | | consumer markets and it would therefore be difficult |
| company into two divisions to handle the two | | | | trying to convince them to try Aldus’ new |
| segments under consideration. | | | | products. Aldus will also have problems in instances |
| Target markets that Strong identified in this case | | | | where the company lacks human and financial |
| The target markets that Strong identified are the | | | | resources to understand the intricacies of desktop |
| business clients and the graphics professional clients. | | | | publishing. This would make PageMaker less attractive. |
| Strong believed that the business market should take | | | | (Marketing teacher, 2008) |
| up the largest amount of resources (human and | | | | Conclusion |
| technical) because of various reasons. Foist of all, this | | | | Strong – Aldus’ marketing manager- made a |
| target market would require greater automation and | | | | proposal to come up with the most effective |
| greater ease of use. Also, they would not require as | | | | method for meeting their client’s needs. Despite |
| much additional software as the other types of | | | | the challenges that such an approach would bring to |
| clients. This market would also be different in that | | | | the corporation, Aldus should consider this proposal in |
| the pricing of their PageMaker would be much lower | | | | order to enhance their competiveness. |
| than the other category. | | | | References |
| The second target market was the graphic | | | | Ryans, A. (2002): Aldus Corporation; Ivey Publishers, |
| professional. This category would require more | | | | pgs 1-17 |
| complicated tools and would therefore need greater | | | | Marketing teacher (2008): the four elements of the |
| levels of technical assistance from staff at Aldus. | | | | marketing mix; accessed on 23rd September |
| Additionally, this market segment would be less | | | | Rey , C. |
| simplistic and could therefore require a greater level | | | | |