Marketing Management: Adapting to Market Trends and Developing a New Product

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This report analyzes how Cyber Infrastructure Inc. is adapting to market trends and developing a new product for its UK market. It discusses the macro-environment of the company, its strategy and position, and recommendations for attracting customers and developing customer experience.

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Marketing Management 1
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Marketing Management 2
Marketing Management
Introduction
As the global market continues to be competitive companies and organisations are now
finding the need to innovate themselves in their marketing and product design strategies,
regardless of the sector or industry one is in. With the advancement in technology and the
expanding potential of the internet, more organisations are being innovative by trying to fill
in gaps, or even look for gaps in an already saturated market place.
A prime example is global technology company, Cyber Infrastructure Inc. (CIS) who
have one of their offices in the United Kingdom. Having been in existence for more than 12
years, CIS has gained the right experience to handle any technology needs of its client (Good
Firms, 2019). The technology company, which was founded in 2003, focuses primarily on
computer and mobile application development, open source development, business
intelligence and analytics, cloud infrastructure implementation, digital marketing, front-end
design, and business process management (CIS, 2019).
The aim of this report is to analyse how Cyber Infrastructure Inc. is adapting to market
trends as well as getting ahead of the competition by developing and designing a new product
for its UK market. It will also define the macro-environment of the company and discuss its
strategy and position while launching and implementing this new product as well as the steps
that will be taken to ensure that is a success. Finally, the report will further recommend ways
through which the company with its new product will attract customers and how it will also
develop customer experience upon the launching of the new product in the UK market.
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Marketing Management 3
The Macro-Environment of Cyber Infrastructure Inc.
The macro-environmental factors of an organisation refer to the external factors that
affect that organisation. Generally, these factors are often beyond the control of an
organisation but greatly affect the decision-making process.The macro-environmental factors,
also referred to as PESTEL analysis, are divided into six; they include political factors,
economic factors, social factors, technology factors, environmental factors and legal factors
(Alanzi, 2018).
This paper will analyse how these factors specifically affect the way Cyber
Infrastructure Inc. conducts business. It will also analyse the potential opportunities that the
software developer has in its market. It is essential for organisations to conduct a PESTEL
analysis to gauge their position in the market. The analysis often reveals the strengths and
weaknesses of an organisation as well as the impending threats and potential avenues for
opportunity and growth. Having worked with several sectors in the market, Cyber
Infrastructure Inc. wants to launch a new product that will specifically target the
manufacturing and construction industry.
Cyber Infrastructure Inc. is a technology developing company that specialises in
mobile app development, web and software development; maintenance and e-commerce
development. The company focuses on sectors such as advertising, gaming, automotive,
consumer product and financial payments; however, this new product will focus on the
manufacturing and construction sector.
Cyber Infrastructure Inc. has developed a construction and data ecosystem software
that will enable those in the construction business plan their work properly and
professionally. This new software, called CDE Pro, is in its initial stages and current market
feasibility studies are being done to analyse its suitability in the market. The new software
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seeks to integrate the construction sector by bringing together all players of the industry
under one roof.
The construction industry is in desperate need for real-time collaboration
software that will integrate all players in the industry to come together and share data,
experience and additional knowledge related to construction and manufacturing. This new
software, CDE Pro, will create a fully-connected platform that will revolutionise how people
work in the sector by combining technology and construction tools as well as act as the
backbone of the construction process from start to finish.
PESTEL Analysis
A PESTEL analysis is essential in analysing the current position of the organisation in
the market as well as some of the challenges and opportunities that are in the industry. This
analysis will look at the macro-environment factors that will influence the survival and
growth opportunity of the new product launch by Cyber Infrastructure Inc.
a) The Political Environment
The political situation in a country significantly affects the performance and
success of businesses and organisations in that country. The political environment
includes factors such as government policies, political stability or instability, levels of
corruptions, and political ties with other countries. The political environment in the
UK is a favourable one as it enjoys political stability as well as favourable policies.
However, recent political events such as Brexit could have some implications
on how the CDE Pro will perform in the market, more so, in the international market.
There might be a reduction in foreign investment, which might affect the performance
of the CDE Pro. However, it may also boost it as it will open up the internal market
even further (Market Inspector, 2016).

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b) The Economic Environment
The economic environment refers to factors that affect the purchasing power
of the customer such as the inflation levels, the gross domestic product, the tax levels,
unemployment rates, the disposable personal income, and the spending patterns of the
consumer. Despite the economy of the UK being stable and averagely high as
compared to other countries, estimates show that it is starting to slow down. These
figures also indicate that the GDP and the consumer spending of consumers are going
down as well (Riley, 2018).
Despite these indicators, the construction industry has been growing rapidly
and as of the third quarter of 2017, the sector had about 314,500 construction firms
with about 260 of these firms employing 300 people or more. The construction
industry in the UK contributes to about 7 per cent of the GDP and its output is more
than £110 billion per year (Cabinet Office, 2011). Based on these statistics, the
construction sector is a wide market; therefore, tapping into it will guarantee positive
feedback and success of the CDE Pro application.
c) The Social Environment
The social environment includes factors that relate to the behaviour and
character of the customer or the market. It may include the demographics of the
market, for example, how big or small the market is. It is essential to understand the
characteristics of the market as this will enable an organisation to gauge the
expectations they have of a new product. Some markets are dynamic and easily accept
new technology, and this is a good sign for an innovative organisation.
There has been a notion that the construction industry in the UK is dominated
by single disciplines and is reluctant to innovate; however, this is starting to change as
the sector is now changing by being more open to innovation as well as venturing out
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to other disciplines. There have also been great strides towards improving efficiency
in the sector and this could be the gap that CDE Pro will fill as its technology is
geared in improving efficiency in the entire construction process.
d) The Technological Environment
The technological environment refers to factors that facilitate the creation of
new technologies and innovative ideas, which leads to the creation of new products,
services and market opportunities. The technological environment is very crucial to
any organisation, regardless of the sector it belongs to. Technology and innovation
have the potential to completely revolutionise the market and could turn the market in
favour of an organisation (UK Construction Media, 2017).
Innovation in the UK’s construction sector is facilitated by the evolution of the
internet as well as machinery and robotics such as drones and the use of 3D printing
(PBC Today, 2018). More construction firms are embracing technology to ease the
workflow of construction projects as well as improve on the timelines of these
projects. The CDE Pro does both – it helps construction firms plan their work more
professionally and efficiently as well as reduced the time it take for projects to reach
completion.
e) The Environment
The environment factor includes variables such as the weather and climate as
well as other ecological factors that could affect a business. The construction industry
is solely about the environment; therefore, there might be factors within the
environment that could impact the construction business positively or negatively
(FME, 2013). Because of issues such as sustainability and environmental
conservation, products in the construction industry need to be eco-friendly and avoids
waste.
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A major criticism in the UK’s construction industry is that it is often described
to be wasteful. It also contributes to global warming through emissions of products
such as carbon dioxide. With the new software application, CDE Pro, some of these
issues can be addressed. With proper planning, construction firms can now avoid
being wasteful and utilise all the materials they have (Willmot Dixon, 2010).
f) The Legal Environment
The legal environment refers to factors such as laws and policies that govern
and control the business environment such as labour laws, health and safety laws,
consumer rights, trading laws, information protection laws, competition laws, and
discrimination laws among others.
While developing the CDE Pro, certain laws and regulations need to be
adhered to such as waste management laws, Building Regulations Act, environmental
protection laws, National Planning Policy framework, Construction Design
Management (CDM) regulations, and CRC energy efficiency Scheme, among others
(DLA Piper, 2019).
Growth Opportunity for CDE Pro
The technology industry in the United Kingdom is a fast-growing sector contributing to
greater growth rates as compared to other sectors in the overall market. According to reports
by Computer Weekly, the growth rate of the UK’s tech industry is more than two-and-a-half
times fast as compared to the overall economy of the entire country (Flinders, 2018). London
is considered as the second most connected place for tech companies in the world, behind
Silicon Valley in the United States of America.
A report by Tech Nation in 2018 revealed that the UK digital tech sector in 2016 was
worth £170 billion, however, this figure has risen and as of 2018, it was estimated to be worth

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Marketing Management 8
nearly £184 billion (Tech Nation, 2018). The report further says that the turnover of digital
companies in the UK between 2016 and 2017 grew by 4.5 per cent, as compared to 1.7 per
cent of the gross domestic product (GDP) of the country. These figures not only indicate the
growth potential of the tech industry but also the potential it has in the UK market.
The UK is globally ranked as the third in the total capital investment in tech companies,
behind the US and China in terms of performance, funding, market research, talent and start
up experience (Ismail, 2018). This makes it a global leader in the tech industry and a critical
component and a driving force in the growth of the economy of the UK. A major factor that
has contributed to the fast growth of the tech industry in the UK is the demand for digital
skills in all sectors of the economy (Saran, 2016).
More sectors are now seeking for digital skills and products to integrate with their
systems in improving their output (Open Access Government, 2019). Among these sectors
include the automobile industry, the design and creative industry, marketing and advertising
industry, the beauty and cosmetic industry, the health industry, the construction industry, and
the banking industry, among many other industries.
Segmentation, Targeting and Positioning
Segmentation, targeting and positioning (STP) is a strategic marketing management
tool used by organisations in analysing, planning, implementing, coordinating, and
controlling the process of the conception, promotion, pricing and distribution of a product.
The aim of STP is to ensure that new concepts and ideas have a beneficial impact on target
audiences with the aim of achieving the goals and objectives of an organisation.
The process of segmentation involves identifying the market to be segmented and this
is often done through various variables such as demographics, geography, psychographic, and
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behavioural. Cyber Infrastructure Inc. will need to analyse is the geographical target market,
which in this case is the UK. Through this variable, the organisation will be able to specify
which market (region, state, city or neighbourhood) to launch the CDE Pro. This is essential
as it will determine the success of the product.
Under segmentation, organisations look at the measurability, accessibility,
sustainability and actionability of a product. Organisations can achieve this by using two
approaches – a discovery approach, which is more suited to a market with a limited customer
base or an analytic approach, which is more research and data-based. The best approach for
Cyber Infrastructure Inc. is the analytic approach, which will allow it to study its environment
and how the new product will fit in the market.
Targeting is the next step after segmentation, where the organisation determines the
select market as well as starts to plan the advertising platform to be used. The ideal
advertisement channel for CDE Pro would be on platforms that will reach the target market;
that is the construction sector. A good platform would be on construction magazines and
websites. Other avenues could be through the mainstream media such as TV, radio,
newspapers or billboards (Levens, 2009).
The advertising messages should also be well targeted to suit the market as well as
make it appealing by illustrating the necessity of CDE Pro and its benefits. While targeting a
market, the organisation can opt to focus on undifferentiated, differentiated or niche
marketing. Because the CDE Pro is only meant for a specific target group, a niche marketing
strategy would be the best option (Kotler, 2012).
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Marketing Mix
Marketing mix refers to a set of tools that an organisation uses to pursue its marketing
objectives in their target market. The marketing mix is divided into four broad categories –
product, price, promotion and place (also referred to as the 4 Ps). These categories enable
organisations to make marketing decisions when it comes to their products and services
(Kotler & Keller, 2012).
Under the Product, organisations need to make decisions on the product design,
product assortment, branding, packaging and labelling, return, and the life-cycle of the
product. In the case if Cyber Infrastructure Inc., the product is a construction application that
will enable construction firms to plan for their budgets, their schematics, and their time.
The price of the CDE Pro will be determined by the number of features the
construction firm wants to access in the application. It will also include membership and
premium options for clients who want to use the app. The place or location of the product
will depend on decisions made on the strategies of distribution, market coverage, transport,
warehousing and logistics. The promotion will include avenues of promotional mix such as
direct marketing, advertising on mainstream media and public relations efforts.
Recommendations
Venturing out into a new market can be challenging for most organisations. However,
there are a few steps an organisation can make to ensure that their product or service launch
is successful in getting the right target market. In addition to the PESTEL and STP strategy
approaches and evaluation, CDE Pro also needs to tailor their marketing for a specific target
market as well as create a unique value proposition that will set it apart from the competition.

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In being able to capture the right target market, CDE Pro needs to focus only on the
prospects that are most likely able to purchase the software. For example, it would be
advisable to target large construction firms whose job demands require the aid of software
like CDE Pro. Not only do these large firms have the purchasing power, they also control and
influence a big part of the market. By getting them on board, they can open up avenues to
other potential firms not only in the UK but globally as well (Gordon, 2005).
Another important element is creating a value proposition that beats what the
competitor is offering. This does not necessarily peg on the price of the product alone but
rather on the value that the product has to the consumer. The organisation must have a clear
understanding of what they must offer so as to stand apart from the competition. It is also
important to match value and price as customers usually seek value for their money. This is
dependent on aspects such as the life cycle of the product, the unique aspects of the product
and how beneficial it is to the client (Patterson, 2018).
Given its dominance in the market, Cyber Infrastructure Inc. has an added advantage
as a market leader and can use this as a marketing strategy in pushing for the uptake of CDE
Pro. The organisation is a pioneer in the tech industry and now it is using its innovativeness
to fill a gap in the construction industry. A major characteristic of pioneer organisations is
that they control the market as well as act fast and decisively when the time is right. The
construction industry in UK is expanding, thus there could be no other greater time than this
to launch a product like CDE Pro.
In determining the pricing, it is important not to under-price or over-price your
product. Both actions can be detrimental as one will cause losses and the other will led to no
sales, hence losses. To determine the best price for CDE Pro, Cyber Infrastructure Inc. needs
to analyse their customer and know their purchasing potential and this can be done through
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market research. Another factor to consider is analysing your costs – what are the costs in
production, labour, rent, raw materials, delivery, licensing, return in capital, salaries, and
taxation, among other costs. It is also important to know what the target revenue for the
organisation is as well as what the competitor is setting as their price (Wasserman, 2018).
Conclusion
It is essential for organisations to always analyse their macro-environment when
venturing into a new product or new market. This not only gives an organisation an idea of
what they are getting into but also gives an opportunity to analyse their strengths,
weaknesses, opportunities and possible threats. Through the analysis made in this report,
CDE Pro has a very high chance of surviving in the UK’s construction sector. This is because
they will be pioneers in their field and through this they will be able to tap an untargeted area
in the UK market.
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References
Alanzi, S., 2018. PESTEL Analysis, Salford, Manchester: University of Salford.
Cabinet Office, 2011. Government Construction Strategy, London: The Government of UK.
CIS, 2019. Cyber Infrastructure Inc: About Us. [Online] Available at:
www.cisin.com/aboutus.htm[Accessed 28 March 2019].
DLA Piper, 2019. General Construction Law. [Online] Available at:
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ENG-WLS [Accessed 30 March 2019].
Elearn, 2008. Business Environment. Illustrated ed. United Kingdom: Routledge.
Flinders, K., 2018. UK tech sector growing 2.6 times faster than overall economy. [Online]
Available at: www.computerweekly.com/news/252441282/UK-tech-sector-growing-26-
times-faster-than-overall-economy [Accessed 27 March 2019].
FME, 2013. PESTLE Analysis: Strategy Skills, s.l.: FME.
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Open Access Government, 2019. Predictions for the digital skills gap in 2019. [Online]
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Rethinking Ltd.
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