Sonic

Marketing Plan
Appendix 2

Kel 6.
1. Alfredo L Sihombing – 41P20005
2. Eko Budiarso – 41P20012
3. Friska N Banjarnahor – 41P20016
4. Rillo A Putra – 41P20026
 The Marketing Plan : An Introduction

• The Purpose and Content of a

Marketing Plan
• The Role of Research
• The Role of Relationships
• From Marketing Plan to Marketing
Action
 Sample Marketing Plan For Sonic

1. Executive Summary
2. Situation Analysis
3. Marketing Strategy
4. Financials
5. Controls
Executive Summary

Sonic is preparing to launch a major new state-of-the-art multimedia smart phone, the Sonic 1000, in
a mature market. We can effectively compete with many types of smart phones because our product
offers a unique combination of advanced features and functionality at a very competitive value-added
price. We are targeting specific segments in the consumer and business markets, taking advantage
of the growing interest in a single powerful but affordable device with extensive communication,
organization, and entertainment benefits.

The primary marketing objective is to achieve first-year U.S. market share of 1 percent with unit sales
of 800,000. The primary financial objectives are to achieve first-year sales revenues of $200 million,
keep first-year losses to less than $40 million, and break even early in the second year.
Situation Analysis

Market Summary
Situation Analysis

SWOT Analysis
Situation Analysis

Competition
 Situation Analysis

Product Offerings
The Sonic 1000 offers the following standard features: The Sonic All Media 2000 will include Sonic
1000 features plus additional features such
- Voice recognition for hands-free operation as:
- Full array of apps - Built-in media beaming to share
music, video, and television files with
- Complete organization functions, including linked calendar, address other devices
book, synchronization - Webcam for instant video capture
and uploading to popular video Web
- Digital music/video/television recording, wireless downloading, and sites
instant playback - Voice-command access to popular
social networking Web sites
- Wireless Web and e-mail, text messaging, instant messaging
- Four-inch high-quality color touch screen
- Ultra-fast 64-gigabyte drive and expansion slots
- Integrated 12-megapixel camera with flash and photo editing/sharing
tools
Situation Analysis

Distribution

- Office Supply Superstores

- Computer Stores
- Electronic Specialty Stores
- Online Retaillers

Started from United States, and then Canada

Marketing Strategy

Objectives

- First-Year Objectives. We are

aiming for a 1 percent share of
the U.S. smart-phone market
through unit sales volume of
800,000.

- Second-Year Objectives. Our

second-year objective is to
achieve break-even on the
Sonic 1000 and launch our
second model.
 Marketing Strategy

Target Markets

Sonic’s strategy is based on a positioning of product differentiation.

- Primary consumer target for the Sonic 1000 is middle- to upper-income professionals who need one fully
loaded device to coordinate their busy schedules, stay in touch with family and colleagues, and be
entertained on the go.
- Secondary consumer target is high school, college, and graduate students who want a multimedia, dual-
mode device. This segment can be described demographically by age (16–30) and education status.
- Sonic All Media 2000 will be aimed at teens and twentysomethings who want a device with features to
support social networking and heavier, more extensive entertainment media consumption.
- The primary business target for the Sonic 1000 is mid- to large-sized corporations that want to help their
managers and employees stay in touch and input or access critical data when out of the office. This segment
consists of companies with more than $25 million in annual sales and more than 100 employees.
- A secondary target is entrepreneurs and small business owners.
- Also we will target medical users who want to update or access patients’ medical records.

Each of the marketing-mix strategies conveys Sonic’s differentiation to these target market segments.
Marketing Strategy

Positioning

The Sonic smart phone as the most

versatile, convenient, value-added
model for personal and professional
use. The marketing will focus on the
value-priced multiple communication,
entertainment, and information
capabilities differentiating the Sonic
1000.
Marketing Strategy

Strategies
- Product
Refers to product offerings, sold with a one year warranty
- Pricing
The Sonic 1000 = $250 wholesale price, $300 estimated retail price
The Sonic All Media 2000 = $350 wholesale price
Strategy =
- attacking desirable channel partners and
- taking share from established competitors
- Distribution
Selective Distribution
- Marketing Communications
By integrating all messages in all media, we will reinforce the brand name and the
main points of product differentiation.
 Marketing Strategy

Marketing Mix
- January
Launch a $200,000 trade sales promotion campaign and participate in major industry trade shows to
educate dealers and generate channel support for the product launch in February.
- February
Start an integrated print/radio/Internet/social media campaign targeting professionals and consumers.
- March
As the multimedia advertising campaign continues, we will add consumer sales promotions
- April
Hold a trade sales contest offering prizes for the salesperson and retail organization that sell
the most Sonic smart phones during the four-week period.
- May
Plan to roll out a new national advertising campaign this month
- June
Radio campaign will add a new voice-over tagline promoting the Sonic 1000 as a graduation
gift.
Marketing Strategy

Marketing Research

Using research, we will identify specific features and benefits our target market segments value.
Feedback from market tests, surveys, and focus groups will help us develop and fine-tune the
Sonic All Media 2000.

We are also measuring and analyzing customers’ attitudes toward competing brands and
products.

Brand awareness research will help us determine the effectiveness and efficiency of our
messages and media.

Finally, we will use customer satisfaction studies to gauge market reaction.

 Financials

Total first-year sales revenue for the Sonic 1000 is projected at $200 million, with an average
wholesale price of $250 per unit and variable cost per unit of $150 for unit sales volume of
800,000.

We anticipate a first-year loss of as much as $40 million. Break-even calculations indicate that
the Sonic 1000 will become profitable after the sales volume exceeds 267,500 during the
product’s second year.

Our break-even analysis assumes per-unit wholesale revenue of $250 per unit, variable cost of
$150 per unit, and estimated first-year fixed costs of $26,750,000. With these assumptions, the
break-even calculation is:
 Controls

- Implementation
- Marketing Organization
 SONIC
AWESOME
MARKETING PLAN
WORDS
CHAPTER
ASSIGNMENTS
 Chapter 2: Developing Marketing Strategies and Plans

•What should Sonic’s mission be?

- Sonic’s mission is to bring state-of-the-art multimedia devices to professionals, corporations, students,
entrepreneurs, and medical users all around the world at the most affordable price points.

•In what competitive spheres (industry, products and applications, competence, market-segment, vertical, and
geographic) should Sonic operate?
- Sonic should operate within product and applications as well as in competence. Sonic can define the range of
products and applications that they can supply as developing state-of-the-art multimedia devices that don’t
compromise on features even at an affordable price point. Moreover, they identify their competence in leveraging
custom software to support the production of multimedia devices with a wide range of the latest technologies.

•Which of Porter’s generic competitive strategies would you recommend Sonic follow in formulating overall
strategy?
- We recommend that Sonic follow the overall cost leadership strategy. Sonic’s device offering isn’t promising any
ground-breaking features that aren’t available in competitor’s products. Sonic is also not trying to focus in on specific
market segments. Instead, Sonic is focused on delivery devices with a comparable feature list to that of competitors
at a lower price. The overall cost leadership strategy focuses on lowering production and distribution costs to allow
for cheaper products, while still maximizing profits.
 Chapter 3: Collecting Information and Forecasting
Demand
–What demographic changes are likely to affect Sonic’s targeted segments?
There are increasingly changing population age mixes in different countries. For example, Mexico has a very young population and rapid
population growth. Italy, on the other hand, has a very old population. In its first year, Sonic is trying to target mainly the U.S. market segment.
According to the 2010 census data, a majority of the U.S. population are between the ages of 25 and 39. This means that Sonic should focus
marketing on features on those entering the workforce. As the population age mix changes, other features may be appealing to another
demographic change that can affect Sonic’s targeted segments is makeup of ethnic groups in a particular society. In the United States, there is
a growing population of minorities. Studies show that some minorities are more likely to buy products advertised in their native language.
Thus, Sonic may have to focus not only particular professional groups in their targeted segments, but also on particular ethnic groups.

–What economic trends might influence buyer behavior in Sonic’s targeted segments?
All economies, inevitably, go through recessions. Recessions can severely hurt consumer confidence and change consumer psychology to be
less willing to spend. This can cause all of Sonic’s targeted segments to comparison shop, haggle, and use discounts. If Sonic’s competitors
lower prices to levels at or below Sonic’s offerings, Sonic may be put in a touch position. Moreover, after recessions, there are still lingering
sentiments of focusing on saving instead of “mindlessly” spending. This could prevent potential buyers from pulling the trigger on Sonic
products.

–How might the rapid pace of technological change alter Sonic’s competitive situation?
In a capitalistic society, there are unlimited opportunities for innovation. The creation of faster mobile processors, increased access to the
internet, and improvements in battery technology are just some of the ways in which technology companies like Sonic can compete and
innovate. Bigger companies have bigger research and development budgets, which can make it easier for them to push out superior products.
However, by having a smaller company, Sonic may be able to speed up the development time between idea and product development faster
than bigger companies and thereby increase its competitive edge.
 Chapter 4: Conducting Market Research

–What surveys, focus groups, observation, behavioural data, or experiments will Sonic need to support its marketing strategy?
Sonic first needs to use a survey targeted at their market segments to determine what features these segments value. These surveys are needed to let
Sonic know what features should be most promoted during advertisements. Sonic also needs to use focus groups to run advertisements by a group of
selected participants from a particular target group. These focus groups can take place online to have a more diverse range of participants as well as
lower costs. Focus groups will help Sonic find and correct faults in advertisements and other marketing media as well as give greater insight as to what
consumers are specifically looking for. Sonic then needs to leverage behavioural research to determine customer attitudes towards competing brand
products. This can take the form of analysing purchase data at various electronic retail stores to determine consumer preference towards competing
brands. Finally, Sonic needs to use customer satisfaction studies in the forms of surveys sometime after consumer purchase to gauge market reaction.

–Where can you find suitable secondary data about total demand for smart phones over the next two years? Identify at least two sources
(online or offline), describe what you plan to draw from each source, and indicate how the data would be useful for Sonic’s marketing
planning.
Sonic can use data from the industry association to determine estimated market size of consumers of mobile phones. This can help Sonic determine
which markets to enter. By entering sooner than competitors, Sonic could potentially have a first-mover advantage new markets and increase revenue in
that way. Moreover, this data will be useful in determine how much market share is left to grab for current markets. For example, Sonic can avoid
marketing in highly saturated markets, where there is less room to capture consumers.

–Recommend three specific marketing metrics for Sonic to apply in determining marketing effectiveness and efficiency:
One marketing metric Sonic should employ is the tracking of website traffic and the source from which the traffic comes. This can help Sonic determine
the effectiveness and efficiency of their online ads. Online ads are cheaper to run than other types of advertisements and are also more targeted than
other advertisements. This could be a great area for Sonic to focus resources on. A second marketing metric Sonic should use is permission marketing
statistics. This measures the interaction and engagement with customers from sources such as auto-emails. This can help Sonic tailor their emails to be
more engaging. A third marketing metric Sonic should use is cost per acquisition. This metric tracks the amount of money it costs Sonic to close each
sale. This metric is useful in determining adherence to budgets as well as provides opportunities for greater efficiency if the cost per acquisition exceeds
a certain threshold.
 Chapter 5: Creating Long-Term Loyalty Relationships
–How (and how often) should Sonic monitor customer satisfaction:
Sonic should use periodic surveys to monitor customer satisfaction. In fact, periodic surveys are extremely effective as companies can ask customers direct questions related to
overall satisfaction, likelihood to repurchase, strong/weak points in interaction with company products, etc. Monitoring customer satisfaction regularly is extremely integral to the
success of a company as research has shown that positive customer satisfaction levels are directly correlated with financial performance. This is because customers that are more
satisfied are likely to purchase more products from the same company, be less impacted by price increases, and recommend products to other friends. That being said, Sonic
should not overuse the surveys. This can cause annoyance and customer fatigue and lead to a more negative customer experience. Instead, Sonic should offer surveys after
common touch points such as product demonstrations in store, after product orders online, after speaking with company representatives, etc. This data can then be complied on a
regular basis such as monthly or quarterly and used to find the American Customer Satisfaction Index. This score is important for executives to compare how satisfied their
customers are compared to their competitors

–Would you recommend that Sonic use the Net Promoter method? Explain your reasoning.
We would not recommend that Sonic use the Net Promoter method. The Net Promoter method is based on the principle that overly complicated surveys are ineffective and give
little data. Thus, a main tenant of the Net Promoter method is that only one question matters: “How likely is it that you recommend this product to a friend?”. For a company that is
trying to enter the market with a new product, the simplicity of the Net Promoter method doesn’t address the full needs of the company. Sonic needs data on features, services,
and marketing tactics that were effective/ineffective. The same net promoter score can be achieved with different levels of promoters and detractors. However, different situations
require different managerial responses. As a young company, hoping to garner market share, this data is integral to the company’s success. An established company already has
much real-world experience and practical data related to their customers and marketing techniques. Thus, these companies can effectively utilize the Net Promoter method.

–Which customer touch points should Sonic pay particularly close attention to, and why?
While Sonic should make an effort to make sure all customer touch points are as satisfactory as possible, there are a few customer touch points that Sonic needs to pay extra
attention to. The first important touch point is store demonstrations. A lot of companies have fake product displays to reduce the cost of setting up product demos in multiple
stores. However, because Sonic is releasing a new phone with state-of-the-art features, it is important that potential customers be able to interact with the new phone to increase
likelihood of buying it. Customers might be apprehensive about Sonic’s promise to deliver features at an affordable price point. Thus, it is important that they be able to see the
features work before buying. Second, Sonic should pay close attention to shipping logistics. In today’s environment, consumers expect 2-day shipping at a very minimum.
Requiring customers to wait for the product to arrive results in decrease excitement around the product and less media attention. In fact, Apple’s main strategy in releasing new
products is to announce them a week before shipping dates and provide free 2-day shipping. If anything delays their ability to ship the product, then they delay the announcement
of the product. Finally, Sonic needs to pay attention to packaging. Luxurious features while unboxing products can lead to positive customer experiences and increase likelihood of
sharing those experience on social media. Details such as distinct smells, quality of packaging, and included accessories can make a big difference in customer satisfaction
 Chapter 6: Analyzing Consumer Market

–What cultural, social, and personal factors are likely to most influence consumer purchasing of smart phones? What research tools would help you better understand
the effect on buyer attitudes and behavior?
Because Sonic is targeting consumers in the United States market initially, it is important for them to identify cultural, social, and personal factors important to American consumers.
Americans emphasize the need to work as can be seen by the hustle of the American lifestyle. Whereas other countries may emphasize leisure (e.g., Siestas in Spain), Americans
are focused on maximizing their time especially early on in their time. This fact is portrayed particularly well by the fact that the average working American spends around 9 hours of
his/her day in the office. A majority of the rest of the day is spent consuming media such as TV shows. This means Sonic should focus on the multitasking, productivity, and
streaming abilities of their device. Based on the America culture, it is likely that these factors would be most valued. In addition to cultural factors, there are some social factors that
Sonic must also consider. Primarily, Sonic needs to identify their target demographic’s reference group. Reference groups are those people that have direct or indirect influences on
a consumer’s behavior. It is important to find the opinion leader of the reference group as they are often the person who offers informal advice about a specific product. In today’s
world of social media, these opinion leaders can be quickly identified by those that have large following and thus the most influence.

–Which aspects of consumer behavior should Sonic’s marketing plan emphasize, and why?
Sonic’s marketing plan should target the psychological aspect of consumer behaviours, especially motivation. As Maslow’s Theory states, people are driven by particular needs at
particular times. Without creating or identifying a need, consumers will not buy a product no matter how good it might be. Thus, creating a need is a prerequisite to selling any
products. Sonic’s marketing plan should focus on external cues that create a need in the mind of the consumer to initiate them in consumer buying process.

–What marketing activities should Sonic plan to coincide with each stage of the consumer buying process?

The first stage is problem
recognition
The second stage is information
search
The third stage is evaluation of
alternatives
The fourth stage is purchase
decision
The fifth stage is post purchase
behaviour.
Sonic should run ads depicting a problem such as a student struggling to take notes or an employee having trouble juggling a phone while do emails on a
laptop on the go
Sonic should ensure that they have a robust online presence with detailed information about the product.
Sonic should deploy hands on devices at major retail stores such as Best Buy, Office Depot, and more. This allows the consumer to generate positive
attitudes towards the device by using it as well as to evaluate the product via the expectancy-value model
Sonic can give its consumer a nudge to purchase its products by offering temporary discounts and promoting advertising that shows opinion leaders giving
positive reviews of their products.
Sonic should offer programs such as easy return procedures and robust technical support. Moreover, Sonic should deploy surveys at this point to ensure
customer satisfaction is high and customer expectations are met.
 Chapter 7: Analyzing Business Markets

–What types of businesses appear to fit Melody’s market definition? How can you research the number of employees and find other
data about these types of businesses?
Businesses that need personal mobile devices to stay in constant communication of colleagues, manage busy schedules on the go, and
access information from the internet even when away from the office appear to fit Melody’s market definition. Sonic can research the number
of employees and find other data about these types of businesses at this link. This website provides information about the largest U.S.
companies, which are prime candidates for Sonic’s products.

–What type of purchase would a Sonic smart phone represent for these businesses? Who would participate in and influence this
type of purchase?
This purchase would be a modified re-buy. This is because it is likely that these businesses already have a communication device implanted
in their workflow and are looking for a better and/or cheaper alternative. People who would influence this type of purchase would mainly be
the IT department in the company. The IT department is responsible for maintaining and purchasing new technology to improve company
performance. Moreover, they are responsible for defining technical specifications for the devices they are looking for. Employees who use the
device would also be influencers as their opinions on the usability of the device would probably be taken into account before purchasing. The
purchasing department participates in this purchase because they are the ones responsible for authorizing purchases.

–Would demand for smart phones among corporate buyers tend to be inelastic? What are the implications for Sonic’s marketing
plan?
Yes, the demand for smart phones among corporate buyers would be inelastic. This is because corporate buyers constantly need a solution
to communicate and organize. Thus, this demand is constant and not much affected by the price changes in products once a specific solution
is implemented. The implications for Sonic’s marketing plan are that corporate buyers will tend to value essential features such as reliability,
ability to work with common apps, communications capability, etc. Sonic should continue to emphasize these features in their marketing
materials.
 Chapter 8: Tapping into Global Markets

–As a start-up company, should Sonic use indirect or direct exporting, licensing, joint ventures, or direct investment to enter the
Canadian market next year? To enter other markets. Explain your answers.
In order to enter the Canadian market, Sonic should use direct exporting. This is because Sonic is already in the United States market. Due to
the North American Free Trade Agreement, it would be very easy for them to enter the Canadian market as well. Moreover, Canada has similar
cultures and the shared media between the United States and Canada means that much of Sonic’s marketing activities have probably already
spilled over to Canada. Direct exporting allows Sonic to reduce cost and maintain control of the distribution of their products. However, to enter
other markets Sonic should use joint ventures. Sonic likely lacks financial, physical, and managerial resources to enter international markets.
Thus, Sonic would require the use of a partnership to enter these foreign markets.

–If Sonic starts marketing its smart phone in other countries, which of the international product strategies is most appropriate?
Why?
Sonic can use the strategy of product adaptation. This allows Sonic to adapt the product to meet local conditions. Because Sonic is selling a
smart phone in international markets, key considerations such as voltage/electrical requirements, power adapters, and software features must
be evaluated. Moreover, companies in different countries may have different demands and needs. Thus, Sonic must be able to meet these new
requirements in order to establish its brand, especially as a new company. Additionally, Sonic will have to set a market-based price in each
country. This is to maintain their brand value of being affordable.

–Although some components are made in Asia, Sonic’s smart phones will be assembled in Mexico through a contractual
arrangement with a local factory. How are country-of-origin perceptions likely to affect your marketing recommendations?
Country-of-origin perceptions are used by consumers to evaluate the quality and reliability of the product. Thus, Sonic can use positive
associations to help sell the products. In the case of using a local factory in Mexico, Sonic can use marketing materials that talk about
supporting fellow North Americans. Moreover, they can promote manufacturing channels that are not easily disrupted by U.S. and China trade
war tensions to corporate consumers.
 Chapter 9: Identifying Market Segments and Targets

Which variables should Sonic use to segment its consumer and business markets?
a. Consumer markets : psychographics and behaviors (needs,attitudes, lifestyle, ad values)
b. Business markets : demographic (industry type, company size, geographic locations)

How can Sonic evaluate the attractiveness of each identified segment? Should Sonic market to one consumer segment and one
business segment or target more than one in each market? Why?
Sonic can evaluate the attractiveness of each identified segment on the basis of 5 criteria – measurable,
substantial, accessible, differentiable, and actionable.
Sonic needs to conduct market research to determine if market segments fall within these criteria. Whether
Sonic should market to one segment or multiple depends on their ability to address the needs of
different segments. Sonic should target multiple segments only if there are confident that their product
can fully satisfy the demands of the multiple segments.

Should Sonic pursue full-market coverage, market specialization, product specialization, selective specialization, or single-
segment concentration? Why?
Product specialization. Sonic can sell the same product to both the consumer and business market segments. Sonic can focus
funds on marketing to various segments rather than creating different products and/or solutions to the whole market.
 Chapter 10: Crafting the Brand Positioning

In a sentence or two, what is an appropriate brand positioning for the Sonic 1000 smart phone?
The Sonic is a smart phone for both consumers as well as business professionals by offering the no-compromise feature list of
more expensive brands at prices comparable to those of less expensive brands.

Create a perceptual map to diagram points-of-parity and points-of-difference between Sonic and its competitors. Are there any
opportunities based on your findings?
Features Features
2
Many 3
2 3 Sonic Apple
Apple
Sonic
Low 1 High Low 1 High
Price Price
Samsung &HTC Samsung &HTC
LG LG

Few Motorola Few Motorola

How can Sonic create differentiation from competitors using emotional branding?
Sonic can create differentiation via emotional branding by focusing on how the brand emphasizes the relationship between the
customer and company. Sonic can also talk about how their device enables customers to achieve their dreams buy providing them
with the right tools to advance their business, connect with their loved ones, easily multitask, and more.
 Chapter 11: Creating Brand Equity

What brand elements would be most useful for differentiating the Sonic brand from competing brands?
a. New features
b. Better phone’s performance compared to peers

How can Sonic sum up its brand promise for the new smart phone?
Sonic can sum up its brand promise for their new phone by focusing on how capable their product is in being able to satisfy the
needs of individuals that need highly advanced and reliable cell phones to accomplish demanding tasks.

Should Sonic add a brand for its second product or retain the Sonic name?
If sonic desires to maintain strong customer loyalty to their brand for being a cell phone that is high output, functional, and
reliable, Sonic should keep the brand name for numerous products because these types of qualities are vital to all cell phones
used.
 Chapter 12: Addressing Competition and Driving Growth

List three new-product ideas that build on Sonic’s strengths and the needs of its various target segments.
What criteria should Sonic use to screen these ideas?
a. Implementing High Security Technology
b. Compatibility and Capability of Operating software programs such as Excel and Word
c. Sonic 5G to increase reliability and speed in congested areas

Develop the most promising idea into a product concept and explain how Sonic can test this concept. What dimensions must be
tested?
Compatibility and Capability of Operating software programs such as Excel and Word. This idea can be further processed by
developing hardware that is able to run dynamic software systems that will be cutting edge. Sonic can test this concept by having
a trial faze and allow current entrepreneurs to use this technology to test its functionality and whether or not this product would
be a good addition to this phone.

...continued
 Chapter 12: Addressing Competition and Driving Growth

Assume that the most promising idea tests well. Now develop a marketing strategy for introducing it, including a description of
the target market; the product positioning; the estimated sales, profit, and market share goals for the first year; your channel
strategy; and the marketing budget you will recommend for this new product introduction. If possible, estimate Sonic’s costs
and conduct a break-even analysis.

The introductory stages are:

1. Inform potential consumers
2. Induce product trial
3. Secure distribution in retail outlets.
Retailers
Target Personal Selling &
Trial Access to target
Market Marketing Partner
segment

Marketing budget =fixed cost = 10% dari expected revenue (USD200m) = USD20m
Sales 800,000 units, P = USD250/unit
Revenue : 800,000*250 = USD200m
VC = 150 * 800,000 = USD140m
BEP = USD20,000,000 /USD(250-150) = 200,000 unit sold
 Chapter 13: Setting Product Strategy
Which aspect of product differentiation would be most valuable in setting Sonic apart from its competitors, and why?
In introductory product stage, performance quality is the most valuable aspect of product differentiation. The focus of this this
phone is to provide a highly functional device to mid to upper income earners in a dynamic career.

Should Sonic use ingredient branding to tout the Linuxbased operating system that it says makes its smart phone more secure
than smart phones based on some other operating systems?
By utilizing ingredient branding i.e Linux to bring additional confidence in the product, more people in Sonic’s target segment will
be more attracted to this product.

How can Sonic use packaging and labeling to support its brand image and help its channel partners sell the smart-phone
product more effectively?
Sonic can use packaging and labeling to support its brand image and help its channel partners sell more effectively by making the
design of the label and packaging consistent with the purpose of the Sonic. By creating a label and packaging that is sleek and
efficient in the way it is assembled, Sonic will reflect the attention to detail and the priority of providing a highly functional phone
for the modern professional or student.
 Chapter 14: Designing and Managing Services
What support services are buyers of smart-phone products likely to want and need?
Consumers primarily worry about failure frequency, downtime and service dependability. With cell phones the primary method in
solving many of these issues will require self help solutions or manual repairs. Therefore, facilitating services and extended
warranties are needed.

How can Sonic manage gaps between perceived service and expected service to satisfy customers?
Sonic can manage gaps between perceived and expected service to satisfy customers by providing customer service who are
entrusted to make decisions on refunds and potential solutions with the problems that may occur. By being able to have
responsive and educated customer service representatives, consumer loyalty will increase in comparison to the competition that
may outsource their customer service outlets.

What post sale service arrangements must Sonic make, and how would you expect these to affect customer satisfaction?
The post-sale service arrangements that Sonic must make depend heavily on customer-service evolution and being able to
address customers concerns in the quickest way possible.
 Chapter 15: Introducing New Market Offerings
What factors will you use to determine Sonic’s strategic group?
1. An innovative product that provides a clear distinction from the competition
2. A warranty that will allow customers to have confidence in a new product if a failure occurs
3. Lower price than the competition to incentivize the initial purchase

Should Sonic select a class of competitor to attack on the basis of strength versus weakness, closeness versus distance, or good
versus bad? Why is this appropriate in the smart-phone market?
It would be better if Sonic select a class of competitor to attack on the basis of strength vs weakness in order to capitalize on a
competitor’s shortcomings and take a share of their market share.

As a start-up company, what competitive strategy would be most effective as Sonic introduces its first product?
As a start-up company in the technology field, it is important that its focus’ on developing an innovative product that will
differentiate itself from its competitors. There is a constant need to develop a new edge to push the product past the competition.
Chapter 16: Developing Pricing Strategies and Programs

-What should Sonic’s primary pricing objective be?

Sonic should aim to maximizing market share because they are presenting a new technology. Sonic
should provide price fairly low for the introduction because it will be hard to compete without an
established brand.

-Are smart phone customers likely to be price sensitive? What are the implications for your pricing decisions?
Smartphone users are more likely to be price sensitive because many have extreme brand loyalty for
products they’re currently using and are slow to change buying habits.

-What price adaptations (such as discounts, allowances, and promotional pricing should Sonic include in its
marketing plan?
Promotional pricing should be utilized in the beginning to familiarize consumers with the brand. As buyers
become aware of Sonic’s features and differentiation from competitors and are notified of other options
and substitutions buyers will become more willing to try Sonic products.
Chapter 17: Designing and Managing Integrated Marketing
Channels
–Do you agree with Jane Melody’s decision to use a push strategy for the new product?
The push strategy will provide marketing and visibility to allow buyers to choose product over the
competitions.

-How many channels levels are appropriate for Sonic’s targeted consumer and business segments?
Two channels. The forward flow from company to consumer and a backward flow from consumers
back to company.

-In determining the number of channel members, should you use exclusive, selective or intensive
distribution? Why?
Sonic should focus on selective distribution because it is more cost effective and allows them to
carry out a careful and more hands-on approach.
Chapter 18: Managing Retailing, Wholesaling, and Logistics

–What types of retailers would be most appropriate for distributing sonics smart phone? What are the advantages
and disadvantages of selling through these types of retailers?
Mostly store retailers and some online retailers would be most appropriate for Sonic to distribute its products.
Specifically, full-service store retailers where salesperson are available to assist through every phase of the
buying process. The advantages being a more intimate customer service approach that leads to increased
profits and the disadvantages being high-cost retailing.

-What role should wholesalers play in Sonic’s distribution strategy? Why?

Wholesalers can be used to allow product to get into the select retailing stores. Wholesalers also play a key
role in being able to select items and assortment building something that will directly affect final consumers.

-What market- logistics issues must Sonic consider for the launch of its first smart phone?
Sonic should consider sales forecasting. Because it is the first product of the brand, it will be hard to
estimate.
Chapter 19: Designing and Managing Integrated
Marketing Communications
-What communications objectives are appropriate for Sonics initial campaign?
Because Sonic is a new brand and company most of the consumers and desired target audience will be
unaware of the brand, Sonics initial communication objective should be to raise awareness. A variety of
advertising and promotional tools such as billboards, commercial ads, etc.

-How can Sonic use personal communications channels to influence its target audience?
Sonic can implement personal communication channels through personal selling and direct marketing to
connect and target buyers. Personal channels would be extremely beneficial in this case where the sonic
brand is new and lacks recognition from consumers.

-Which communication tools would you recommend using after Sonic’s initial product has been in the market for six
months? Why?
After 6 months sonic should see growth and have had established a solid brand among consumers, the next
communication tool would be to more personal approach such as exercising word of mouth.
Chapter 20: Managing Mass Communications:
Advertising, Sales Promotions,
Events and Experiences, and Public Relations
–Once Sonic begins to use consumer advertising, what goals would be appropriate?
The initial rush consumers will be done rushing the stores for the new product and the later consumers will
come in at a steadier rate based off of word-of-mouth marketing and consumer reviews.

-Should Sonic continue consumer and trade sales promotion after the new product has been in the market for six
months? Explain.
Sonic should stop consumer and trade sales promotion after the product has been on the market for six
months, at this point enough consumers should own the product or heard of it and Sonic can rely on word-of
mouth marketing.

-Jane Melody wants you to recommend an event sponsorship possibility that would be appropriate for the new-
product campaign. What type of event would you suggest and what objectives would you set for the sponsorship?
Sonic’s event and marketing department should consider a Supply-side method sponsorship activity. This will
advertise not only the product but the brand as well. The longer and more often the brand or product is in
front of consumers the more they will think about it in the future.
Chapter 21: Managing Digital Communications:
Online, Social Media, and Mobile
–How should Sonic use word of mouth to generate brand awareness and encourage potential buyers to visit
retailers to see the new smart phone in person?
Consumers usually tend to talk positive about their experiences to others creating a good word of mouth
buzz about products. If Sonic can create a positive buzz with its consumers, then they will spread the word
by showing off and using their new smartphone daily.

–Which social media platforms and networks should Sonic pursue based on their target audiences? Explain your
reasoning.
Twitter and Instagram would be the best social media platform for Sonic to advertise its new smart phone on.
This will create a business-to-consumer engagement and will also preview the product to the largest
platforms of people.

–Is mobile marketing a viable strategy for Sonic’s smartphone? Why or why not?
Mobile Marketing is a viable strategy for Sonics new smartphone, If Sonic can make their new smartphone
the highest-grade product and used in all the ads they can self-promote through other advertisements.
Chapter 22: Managing Personal
Communications: Direct and Database Marketing
and Personal Selling
–Which forms of direct marketing are appropriate for Sonic, given its objectives, mass communications arrangements, and channel
decisions?
Sonic would benefit from direct mail marketing. Mail marketing is one of the easiest ways to send consumers a reminder
that a new product is out or upcoming. Mail Marketing is one of the most expensive marketing strategies. However,
consumers are more likely to see and acknowledge an ad that comes in the mail that they physically must touch rather than
one they can scroll past timelines.

–Should Sonic use database marketing to identify and cultivate prospects? What are the opportunities and potential downsides of
this approach?
This tool is not the right approach for Sonic to use in marketing its new smartphone. This approach is better used for
companies that sell software or program type products. The data of buying a smartphone will not be consistent enough to
project the number of consumers.

–Does Sonic need a direct sales force, or can it sell through agents and other outside representatives?
Sonic wants to be able to sell its product through them but if they were also able to sell through carriers of their product,
they could get a wider range of consumers faster. A notable example of this is Apple. They sell their products directly
through their stores, but they also through BestBuy, Verizon, etc.
Chapter 23: Managing a Holistic Marketing
Organization for the Long Run
–How can Sonic drive customer-focused marketing and strategic innovation throughout the organization?
Sonic can drive customer-focused marketing and strategic innovation throughout the organization by having an
organized marketing department in three key areas: functional organization, geographic organization and product or
brand-management organization. When organizations are prepared internally with reliable products, steady
communication and good customer service they create a positive experience for everyone involved.

–What role should social responsibility play in Sonic’s marketing?

We tend to see a trend that companies that invest in social responsibility are more likely to succeed in building
relationships with their customers. Customers tend to choose the company and brands they use based on how they
align with their personal views and responsibilities.

–How can Sonic evaluate its marketing? Suggest several specific steps the company should take.
Sonic can evaluate its marketing by periodically doing a marketing audit.. If Sonic was to do an audit periodically of its
marketing plans and strategies to see which ones are accomplishing their goals and which ones aren’t, then they
could figure out where to best spend their time, energy and money.
 Sonic
Marketing Plan
Appendix 2

Kel 6.
1. Alfredo L Sihombing – 41P20005
2. Eko Budiarso – 41P20012
3. Friska N Banjarnahor – 41P20016
4. Rillo A Putra – 41P20026