Introduction to

Digital Marketing

Assignment

Submitted to
Mr. Nadeem khan
Submitted by
SANI AHMAD
BS Digital Marketing

10 Nov 2022

SONY MARKET STRATEGY

Market segmentations.
The core purpose of Customer Value Driven marketing strategy is to build an engaging, right relationship
with the right customer. The strategic choice of target customers is critical because Sony can’t serve all
the customers in the Audio & Video Equipment industry. Sony has to choose, who are the customers that
it can best serve based on its resources and capabilities
Sony can use the following four steps to build a Customer Value Driven Marketing strategy in
Consumer Cyclical industry.

Step 1 – Market Segmentation

Step 2 – Targeting

Step 3 – Differentiation

Step 4 – Positioning

Market Segmentation and how Sony can use market segmentation in Audio & Video Equipment
industry?
Consumers in the Audio & Video Equipment industry vary in their needs, wants, demands, resources,
locations, access to technology, cultural differences, buying attitudes, and end use of the products and
services. Market segmentation is the process through which Sony decides to segment the overall market
in smaller segments and groups that have similar attributes, buying behavior, socio economic background,
etc. This is done to reach out to the group of consumers more efficiently and effectively.

Sony are use Different Types of Segmentation.

Geographic Segmentation
Geographic segmentation is dividing the overall market based on different geographic units such as –
countries, continents, zip codes, states, trading blocks, cities, and neighborhoods. Geographic
segmentation is highly efficient for Sony in the international markets because the prospective customers
have different culture, preferences, and administrative systems. Secondly, if the cost of transportation is
critical cost in the value proposition delivery then it is prudent to do geographic segmentation as the costs
of serving customers in different locations will be completely different.

Demographic Segmentation.
Demographic segmentation is dividing the mass market into smaller segments and groups based on
gender, income, occupation, age, life cycle stage, ethnicity, religion, and generation. As the products of
Sony provide a superior value proposition, it should segment the customers based on two main
demographic criteria – income of the prospective customer and life cycle stage. One of the most widely
used demographic segmentation frameworks in United States by various marketers is – PRIZM.
Psychographic Segmentation.
In the marketing world, lifestyle oriented interests, activities, and opinion, are categorized under
psychographic variables. Sony can use psychographic segmentation to divide the potential buyers into
different segments based on – personality characteristics, buying patterns, consumption opinion, opinion
on social issues, leisure activities, hobbies, and many other dimensions. Psychographic segmentations are
effective because people in the same demography can have different psychographic characteristics based
on individual life experiences and growing up environment.

Behavioral Segmentation.
Behavioral segmentation divides buyers into groups based on their - attitudes, product knowledge,
product uses, and other responses to a product. Many marketing experts believe that behavior variables
are a good starting point to build consumer segments. For example, for any service – Freemium model is
a far more effective segmentation strategy than geographic, demographic, or psychographic. The behavior
segmentation can help the organization to focus on key features, and provide the consumers with features
that they are more likely to use. Continuous engagement leads higher customer satisfaction rates and high
net promoter score.

Intermarket (Cross Market) Segmentation.

A lot of consumers have similar want, needs, and buying behavior even though they are located in
different countries, cultures, and political systems. Sony can use the principle of cross market
segmentation – defining and targeting same type of consumers in different markets, strategy in this
scenario.

Sony marketing team shouldn’t confine itself to one segmentation strategy. In fact, should strive to
inculcate numerous features to better define and identify the target groups and segments.

4Ps.
The 4 P’s of Marketing Mix are – product, price, place, and promotion. The marketing mix is the way a
firm design and execute a combination of – product strategies, pricing strategies, distribution channel
options, and promotion vehicles.

For a successful Customer Value Driven Marketing Mix, Sony needs to put the customer at the center of
the decision making process and then make decisions based on the customer needs and wants, firm’s
financial and technical resources to develop products at certain price. Finally, it has to choose both
distribution and promotion channels to effectively and efficiently reach to those customers.

PESTEL Analysis?
Political factors are often related to the level of intervention and nature of intervention of the local and
national government in the business and economic environment. Government policies and governance
system plays a huge role in nature and objectives of the policies.

Political Factors that Impact Sony

- Armed Conflict – There are no imminent threats to Japan from the disruption in the business
environment because of military policies, terrorist threats and other political instability. Sony has
experience of handling operations in difficult circumstances.
Economic Factors?
Economic factors include – taxation rate, interest rate, economic performance of country name,
labor market conditions, exchange rate, the stage of economy of country name, inflation rate,
consumer disposable income etc.

Social Factors?
Each society and culture has its own way of doing business. These social factors can not only
help companies like company name to better understand the way of doing business but also in
understanding the customer preferences in Consumer Cyclical sector of country name. Social
factors include – culture, demographics, societal roles and norms, health & safety attitudes,
acceptance of entrepreneurial spirit, gender roles, traditions, attitude towards certain products
and services, and leisure interests.

Technological Factors in PESTEL Analysis

Technology is fast disrupting various industries and Consumer Cyclical is no different. There are
numerous ways technological factors are impacting the Sony & Audio & Video Equipment in
Japan. Some of the technological factors are – innovation in customer services, access to mobile
phones driving empowerment, supply chain disruption because of technology, innovation in
product offerings, rate of technology driven change, population access to technology, access to
greater information etc.

Environmental Factors in PESTEL Analysis?

Over the last decade sustainability and environmental factors are becoming critical for
businesses. Government and pressure groups are fast asking organizations to adhere to
environmental standards. Some of the environmental factors are – safe water treatment,
insurance policies, laws regulating pollution, safe disposal of hazardous material, increasing
focus on sustainability, limiting carbon footprints, climate change, safe waste disposal etc.

Legal Factors in PESTEL Analysis?

Legal plays an important role in the development of Audio & Video Equipment sector in
any economy. Sony management has to consider following legal factors before entering
international market – time taken to deliver justice, system of justice, biasedness toward
home players, intellectual property rights protection, data protection laws, copyrights
law, discrimination laws etc.
SWOT Analysis

Opportunities Threats
Strengths Strength Opportunities (SO) Strength Threats (ST) Strategies
Strategies
Investing into R&D to thwart Consumer
Leveraging brand recognition in new Cyclical industry disruptors.
segments

Weaknesse Weakness Opportunities (WO) Weaknesses Threats (WT) Strategies

s Strategies
Get out of the business and focus on
Investing into customer oriented growth areas
services and supply chain

Sony marketing objectives

Sony's main strategy in reaching a wide market has been through the use of technology by
coming up with new innovative products. The provision of high-quality products and services
has also been built on. In addition to these there is responsive and customer service, usability,
and supply chain management.