Factors influencing current, potential and prospective customers when choosing a product

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Introduction

A market is a place where people who are willing and able to buy a particular product. It is very important for a company to market its products in a place where there are prospective and able buyers. The prospective buyers should also be willing and able to spend money to buy products.

A company has to undertake a comprehensive research of the market to determine the number of prospective customers, their willingness to spend as well as the possible future competitors. This report discusses the dynamics of a market that is mainly composed of products meant for children.

Economic environment

The economic environment is such that some people may not buy a particular product simply because they cannot afford it. Thus, it is important for the company to sell products to people who have the financial ability of purchasing the product in question since the value of their money is what consumers always look for in a brand.

Marketing opportunities usually increase at a time of economic boom and decreases during an economic decline (Gillian & Hird, 1986).

Social environment

Social environment reflects the culture of the target market. Most people in the affluent areas may not prefer having children in their lifetime. Such kind of a society cannot be relied on to buy particular products meant for children.

Competitive environment

The competitive environment demands that a company knows its enemy. The company should have adequate knowledge of their rival companies and try to outdo them by adding value to their products.

The company should also become aware of the prevailing wind and try as much as possible to coordinate with the captain. Also, it should set the course, train its marketers, and if necessary do a turnaround of their product branding and quality (Neisser, 2010).

Brand name

Branding is an important part of a product’s marketing process. A brand name is quite influential because it is the main element that determines the way customers will choose a product. Branding is a way of making customers to become acquainted with a company’s product.

It therefore shows a sense of ownership and a way of keeping loyal customers of the product. It is also important to note that there is a close relationship between convinced users of the brand and its market share (Finskud, 2009).

Target market

The target market of the product is very important because it determines the way the product is marketed or branded. Thus, it is not prudent to send mails to households that do not have children. It is also prudent enough not to use newspapers to advertise products that are only meant for grade six pupils or under.

There is no way an effective market can be found in a leafy suburb composed of rich households who do not have children. For these reasons, a chain store located in such a suburb should have less of these products than those located in suburbs that have households with children (Nasser & Overberg, 2003).

Quality of product

The quality of a product determines how consumers prefer a given product over other products. It is important to note that the company must offer a product that gives the customers the certainty of its quality (Chauhan, 2009).

Distribution of the product

Distribution decision addresses issues that lead to accessibility of the product. The process of distribution is often very complicated and time consuming. It is prudent to market a product to households that have children because they are more likely to buy the products. It is also important to make the products available for the customers to facilitate its purchase.

Price of the product

The price of the product will also determine the competitiveness of the brand in the market. High prices will not factor out well in those households that are not wealthy because customers will always go for something that gives them value for their money.

Conclusion

In conclusion, socioeconomic environment, competitive environment, the price of the product, distribution of the product, quality of the product and the brand name, are the main factors that determine whether a product will be chosen by the customers in the market or not.

Reference List

Chauhan, S. (2009). Microeconomics: an advanced treatise. New Delhi: PHI Learning Private Limited.

Finskud, L. (2009). Developing winning brand strategies. New York: Business Expert Press

Gillian, C., & Hird, M. (1986). International marketing: strategy and management. Beckenham: Crooom Helm Ltd.

Nasser, H., & Overberg, P. (2003). Nation: Old labels just don’t stick in 21^st century. Web.

Neisser, D. (2010). A 7-Step guide to brand transformation. Web.

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