Marketing System: of Sony Playstation 3 - Case Study Example

Marketing System The understanding of marketing systems, their emergence, and their role in influencing economic growth is a necessary and first step towards the valuable engagement of marketing with society. Marketing is an organizational task and a set of processes for communicating, creating, and delivering value to customers as well as managing customer relationship in ways that are beneficial to organization and stakeholders. They are three main perspectives that are taken into consideration when taking into account the aspects and strategies of marketing. Marketing can be considered as a managerial activity or what marketer undertakes. Marketing is also considered as a philosophy such as a market-driven organization. Marketing can also be considered as a study field or discipline. According to Mittelstaedt and Kilbourne (2006), marketing system is viewed as a complex set of multi-layered, near-and-far relationship whereby the market participants’ choices and actions have long-term consequences that are beyond their organizations, customers, and partners. According to Layton (2007), marketing systems are present at all aggregation levels might serve to build the crucial link between macro and micro-perspectives in marketing. In 2007, AMA defined marketing as the activity, set of instructions, and processes for creating, communicating, exchanging, and delivering offering that have value for customers, clients, partners, stakeholders, and society. Marketing system has played a key role of increasing specialization that leads to increasing diversity for the goods that are offered for trade. Diversity and specialization interact mutually in providing a growth mechanism. Concerning marketing terms, this assigns a key role to assortment in our thoughts about marketing system change and development. With increase of variety or assortment, the opportunities for specialty open to inventive entrepreneurs as well. Establishment of connecting links by marketing systems will lead to changes offered in both systems. These changes will diffuse through every marketing system with time in ways that reflect economic and social structure (Layton, 2009). Primitive marketing system is likely to emerge although not always in the current markets. They are various distinguishing and essential characteristics of marketing system. They include division of labor that is based on specialization, assortment in the goods, ideas, experiences, and services required, available, and obtained. This has lead to various definitions of marketing system that have been adapted by Layton ( Layton, 2009). Those definitions state that marketing system is a network of groups, entity, or groups set in a social matrix. Marketing system is linked indirectly or directly through a participation that is shared or sequential in charitable exchange of value. Marketing system creates, puts together, changes, and makes it available. According to Layton, it has also been defined as the assortment of services, ideas, goods, and experiences in reaction to customer demand. Trade connection networks connecting buyers and sellers are becoming denser due to increase of specialization. This has also led to the emergence of macro patterns. As the exchange is not cost-free and returns are continuing to rise, this is likely to lead to further specialization in roles and activities related to trade. Eventually, this will result to increased specialization within markets and in functioning and structure of marketing systems. In a marketing system at one time may likely make elements or agents marketing systems themselves in next generation. Various factors like technology changes and development of infrastructure are facilitating the effects of changing marketing system. The same element or agent may participate in several marketing system at any one moment (Layton, 2009). Exchange is one of the contexts of marketing system. Exchange has developed over time from primitive communities to barter trade to a complex multiparty negotiation involved in a major resource developments. Exchange context includes various aspects like products, experiences, ideas, and services that are put together. These require a closer cooperation between seller and buyer in order for the desired value to be created. Some of the major factors that determine the efficiency of a marketing system are transaction cost. In mapping of a marketing system, overall organizing principle governing the system operation is another element of marketing system (Layton, 2009). Customer groups and assortment that bring consumers and producers together are other major elements considered in the marketing system mapping. Marketing system has one main social function of giving assortments serving agents or elements, sellers and buyers needs who constitute the system. Technology and increase in knowledge and the effect on marketing, production, and distribution options in most instances shape the assortment on offer. It also opens chances of innovative responses to inconsistency spaces (Layton, 2009). Company Background Earl (2000) illustrates that Sony Company makes Sony play station 3. Sony Corporation of America is an American Company based in New York. It is a subsidiary of Sony Corporation headquartered in Tokyo, Japan. Sony is a leading communications, audio, video, and information technology products manufacturer; they are used for professional and consumer markets. Sony is one of the inclusive entertainment and technology organization around the world due to its motion picture, online business, music, computer entertainment, and television. The main businesses of Sony in US include Sony Pictures Entertainment, Sony Electronics Inc., Sony Computer Entertainment America LLC, and Sony Music Entertainment. In the fiscal year that ended March 31, 2010, Sony recorded approximately $78 billion. It has employed over 167000 people globally (Sony LLC, 2010). Sony Electronics operations include research and development, manufacturing, design, engineering, sales, marketing, distribution, and customer service. Sony is notable for its wide range of audio-visual products like Cyber-shot digital camera, walkman, memory stick, play stations, and personal stereo among others. Sony is also a leading trendsetter in IT products such as VAIO personal computers and other broadcast and video related products (Earl 2000). Sony has demonstrated its capability to capture people’s imagination as well as enhancing their lives for years. It has been at the lime light of technology for more than 50 years. Sony’s innovations have continued to be in the lime light since 1950 when first magnetic tape and tape recorder was innovated. This innovation has continued for years with invention of the network walkman digital music player in 1999. The future achievement of the Sony’s brand will depend how the organization faces the change challenges. Sony is not only a market leader in consumer electronics but a leader in innovations as well. Sony play station 3 is one of the major products of Sony. It is a third home video game console that was produced by Sony Computer Entertainment. Sony play station 3 was launched in Japan November 2006 and in United Kingdom on March 16, 2007 (Sony LLC, 2010). Role of Marketing Systems and Layton’s Marketing System Model Role of marketing systems in influencing economic growth (Layton’s Marketing System Model) Figure 1 The Basic model QOL = quality of life (Layton, 2009, p. 350) In Layton’s Marketing System Model, they are various roles of marketing systems that are involved. They include technology and knowledge, division of labor and specialization, marketing systems, growth and quality of life, and institutions (Layton, 2009). They play a key role towards influencing the economic growth. However, these roles are determined by how effective the marketing systems come in place and utilized. Technology and knowledge has been in the forefront of Sony Corporation. There has been extensive utilization of technology and knowledge towards making the company become successful in its operations. Technology has been the driving force behind the development and growth of Sony. Technology has been utilized extensively in ensuring new innovations are readily acceptable in the technology markets. Sony has been leading in terms of technology innovations since 1950s. Employees have also been developed in terms of knowledge and technology. There has been extensive development and vitality of Sony’s employees in ensuring there is dynamic growth of Sony. Knowledge acquisition by employees has been the first priority by Sony towards ensuring its growth and continued innovation. Sony strives to improve knowledge among its employees through on-the-job learning and education programs for engineers and managers in the process of enhancing abilities and skills among them. This has been a major contributor towards the innovation of Sony play station 3 by Sony. Technology and knowledge led to innovation of play Station 3 in 2006. High levels of technology by Sony has gone to such an extent that it can be played online as illustrated by Earl (2000). Sony LLC (2010) argues that division of labor and specialization has also been emphasized on in Sony Company. Engineers have their role towards ensuring they give the best while management ensures there are good operations management as well as efficient marketing. They are various training programs for employees at Sony from new graduates to senior executives. They include technological and business training with various approaches like correspondence, e-learning, and training sessions courses. The employees act as instructors to train engineers on the technologies related to their specialist fields. Sony is as well inviting outside experts with diversified knowledge in ensuring they impart knowledge on cutting-edge technology. Such diversified extensive training played a great role towards the innovation of Sony play station 3 in 2006. This was due to extensive contribution of knowledge by outside experts or engineers. Growth and quality of life has changed extensively because of Sony play station 3 innovations. The number of people accessing Sony play station 3 even online is increasing. This has been a major break-through in the life of people. Sony play station 3 has played a great role in various innovation industry and technology. The technology in Sony play station 3 has led to change of engineers’ life as they gain more knowledge in information and technology. There has also been growth in terms of technology since the innovation of Sony play station 3. This has been embraced as a new technological product globally. Furthermore, there have been continued revisions of Sony play station 3 to a slight new slim model in September 2009. This was done to coincide with rebranding of its logo and console. Other latest models that are available lately include 320 and 160 GB slim (Sony LLC, 2010). Sony has led to the establishment of various institutions mainly for training engineers and managers. This has also led to establishment of various other institutions like innovation institutions in the Sony institutions. Sony Corporation’s Human Resource Development Department is an institution that aims at fostering business leaders as well as recruitment and development of good personnel. Other institutions include Sony Ericsson Mobile Communications AB, Sony Music Entertainment, and Sony Pictures Entertainment Inc. Sony play station 3 has led to the establishment of Sony Gamescom institution. This mainly deals with various types of games associated with Sony play station 3 according to Sony LLC (2010). The Layton’s Marketing System Model has interconnected concepts that link it. Such include technology and knowledge, growth and quality of life, work and specialization, and institution. Technology and knowledge leads to growth and improved quality of life due to new technologies. Work and specialization is a key factor towards improved growth and quality of life (Layton, 2009). This also leads to the establishment of various institutions that assists towards ensuring marketing system is effective and of benefit to the society with little harm or disturbance. Marketing system improves life of people through innovations and improved quality of life. This is due to reduced pollution and waste reduction. Marketing system has also led to reduced levels of social degradation. This is through increased work and specialization as well as increased institutions of innovation as illustrated by Layton (2009). Organizational Growth Strategies Products Markets Present products New Products Present customers Market penetration Product development New customers Market development Diversification According to Kevin (2006), Organizational growth strategies are crucial towards determining how business strategies are influenced by marketing systems. They are various growth strategies that organizations utilize in ensuring that they develop and expand. Such strategies include market penetration, product development, market development, and diversification. An organization ensures that the new products develops and diversifies while present products have their market penetration increased as well as enhanced market development. Sony Company utilizes the growth strategy of product development of advanced Sony play station 3. Development of Sony play station 3 was part of diversification by Sony of its products in information and technology markets. Diversification has been in the forefront by Sony towards increasing its products in the markets as well as penetration into the competitive markets. The development of Sony play station 3 has played a great part in ensuring Sony products penetrates into the markets easily due to its special features and design (Sony LLC 2010). According to Kevin (2006), Product development has been the main idea behind the development of Sony play station 3. This is mainly due to technology and knowledge behind the development of the product. Various technological institutions have been developed by Sony towards ensuring that it develops a product that is pleasing to people and which is ahead in terms of technology. The product development as a strategy for growth has led to change of quality of life and growth in terms of technology since the development of Sony play station 3. Sony play station 3 is a new product that has been developed by Sony as a way of improving the quality of life in the society. Specialization and division of labor has been behind the development of new Sony play station 3 by Sony. Engineers have played a great role towards ensuring they develop a product that satisfies the life of people due to its usability. Sony play station 3 development has been successive due specialization of jobs by involved engineers and other experts within and outside Sony. Sony play station 3 development has been a major breakthrough by Sony towards retaining its current customers as well as getting new customers. According to Sony, LLC (2010), Product development has been a significant part of Sony play station 3 products. This has played a major role in the marketing system of Sony mainly due to the influence it has created in the minds of people or customers. Product development focuses on development of new products in the existing markets. This growth strategy forms a strong basis for market development strategy. Sony rolled Sony play station 3 in the markets that it was familiar with its products. There has been continued development of Sony play station 3 since its launch in 2006 when it was a 20 GB model. Other developments include 60, 80, 160, and 320 GB models in years 2007, 2008, 2008, and 2010 respectively (Sony, LLC, 2010). This is mainly due to continued development of innovation institutions and increased technology and knowledge. This has greatly enhanced life quality significantly. Conclusion Marketing system provides a turnkey option towards enabling business operate efficiently. Marketing system ensures that new internet marketers are able to gain energy with sufficient technical knowledge and support. It is difficult for government to interfere with the marketing systems aspects. Marketing systems are crucial aspects towards the success of business operations. Marketing systems are a contemporary issue in the current business environment as it plays a key role towards establishment and success of business. Marketing systems contributes greatly towards the success of business in terms of innovation and change. Marketing system provides businesses with a turnkey option in enabling business to operate efficiently and effectively. Development of marketing growth strategies is also crucial towards the success and market penetration. This enables business towards becoming successful in the competitive markets. Such market growth strategies include product development, market development, penetration, and diversification. These vital aspects have contributed towards the success of Sony and its new product Sony Play Station 3. These strategies together with marketing systems play a great role towards growth of an organization. References Earl, G 2000, ‘Black Enterprise’, Journal of Emerging technologies, vol. 30, no. 7, pp. 270-276. FAO, 2008, Understanding the marketing system, viewed 15 October 2010, http://www.fao.org/docrep/003/X4026E/ x4026e03.htm Kevin, S 2006, Marketing for Smart People, Kevin Stirtz, London. Layton, A 2009, ‘On Economic Growth, marketing systems, and the quality of life’, Journal of Macro-marketing, vol. 29, no. 4, pp. 349-362. Microsoft.com 2007, Marketing System, viewed 15 October 2010, http://msdn.microsoft.com/en- us/library/ms942216(CS.70).aspx Mittelstaedt, J., Kilbourne, W & Mittelstaedt, R 2006, ‘Macro marketing as agrology: Macro marketing theory and the study of the agora’, Journal of Macro marketing, vol. 26 no. 7, p. 131-42. Sony, LLC 2010, Sony Computer Entertainment: PlayStation 3, PlayStation Portable, Ken Kutaragi, PlayStation Home, PlayStation 2, General Books, New York. Read More