Russian Culture

SONIC 1000 PDA
MARKETING ANALYSIS

1. Pricing

a. Are PDA customers likely to be price-sensitive? Is demand elastic or inelastic? Explain. What are the implications for pricing the Sonic 1000 PDA?

Digital technology is the fastest growing arena. The first PDA was launched by Nokia in 1996 known as 9000 Communicator which was the most popular and appreciated PDA of its times. Since then a complete new generation of PDAs has swamped the market and its first generation PDA customers have began to re-appear to make purchases of multifunctional PDAs. Due to the high level of competition in the PDA market, the prices have been considerably lowered at the sacrifice of gross margins. However, the PDA customers are more inclined towards purchasing a PDA that is high-tech, has maximum functions and is compatible with all kinds of software. In this regard, the price elasticity curve will be a steep one since the demand will remain inelastic in terms of price. The brand that offers the maximum number of functions would be preferred over others. In case of Sonic 1000 PDA, the $250 pricing is lower than the competitors price which gives them a competitive edge over others. Furthermore, the element of voice is also an additional feature offered by Sonic 1000 PDA which is not provided by others. Thus, the current price will have a positive impact on the sales of Sonic 1000 PDA.

b. What price adaptations should Sonic include in its marketing plan?

Moonitz (1948) argues that price rise should be to achieve a plateau of higher importance that will remain stable for a generation into the future. In this regard, the price adaptations have to be considered in accordance with the upcoming opportunities and the potential of the new product only. The price adaptations for the Sonic 1000 PDA for its marketing plan should include increased prices for new technology in order to attract new business partners and new customer segments.

12. Promotion

a. What communications...