Saturday, March 31, 2012

Marketing Research for Personal Computer in North America

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Abstract


As the stock market continues to crash, aggressive marketing and sleek products by the by PC manufacturers are attempts to set the stage for a strong aggregate performance by PC market. The PC price slicing war currently raging between PC manufacturers is being used to cause market share shifts, and help to tempt consumers ravaged by economic recession to buy more of the product. The present PC demand is bugged down by prevailing recession. Analysts believe that the market will rebound soon economic indicators show signs of improvement.


Introduction


The PC and the peripherals supply are at the beginning of one of the dynamic period because of emergence of Pentium-Pro and similar next-generation accessories. The computer and information technology survived the concerns and fair of the millennium bug without crashing as speculated, which invariably implied that PC market is here to stay. Goldberg (18) observed that the combination of lower pricing and non-stop marketing activities would help to keep the PC market hot. Nevertheless, the current recession appears to weaken consumers’ purchasing power, which is affecting the current demand for PC. Gill (00) in her article, stated that despite computer makers best effort to entice business and consumer spender with sleek new hardware, upgraded operating systems and bundle software packages, growth forecasts for the worldwide PC market have been slashed due to continuous reluctance demand particularly in United States and Canada.


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Discussion and Analysis on Current Demand and Potential


Experts in market research are of opinions that PC market in U.S. and Canada is getting slightly saturated especially with older models of various brands. This scenario, in addition to economic recession play significant role in current lower business and consumer demand for PC. Notwithstanding, future market potential is likely to spring back as soon as economy improve, and consumers begin to replace old models with new generation brands.


Current market demand is currently regarded as low for PC market, and this accounts for slashing of projected growth rate from 11.1 to 8.4 for 00 by International Data Corporation (IDC), a marketing research firm. The firm also asserted that the Marketing Potential Index (MPI) for computer and accessories was low for the earlier period of 00, largely due to uncertainty of when the economy will snap itself from recession. In 00, IDC stated, that the United States witnessed 0.5 percent growth across all PC segments, with the consumer segment growing by 1. percent and the commercial sector by .01 percent. Kanellos (00) reported that Latin American PC market is growing fast; PC shipments grew by 47 percent in the region. With current price war raging and relentless innovative marketing strategy among the makers and sales outlets, the current demand might be kept flat and possibly spikes in future. Kanellos (00) quoted Craig Barrett, Intel MD as said that “ I can’t tell you when the recession will end, but I can tell you that the computer market has stabilized.” Nagamine (00) reported that regional outlook on US shows that, “ there are signs of activity in the consumer with sequential growth by HP as well as Gateway and Dell.”


North American consist of Canada, US, Mexico some Latin America countries, and Indies. This is a vast region where PC usages is becoming popular and are in demand because the region is potentially emerging market. Generally, PC market potential in North America hinges on huge opportunity in the high industrial, business and consumer personal needs. The market potential is subject to the ability of new businesses and young generation of consumers to procure new PCs, and the existing businesses and consumer replacing old models. If the economy indicators such as Consumer Price Indicator (CPI), Market Potential Index (MPI), employment rate, stock and other indexes are favorable, this will propel and rebound the market to its potential. Today, PC has replaced a number of office and business secretariat, communication, accounting, equipment and machine. The continue growth of Internet will also force businesses to upgrade their back-end systems. IDC observed that the key to vendor growth is related to strategic alignment with growing consumer and small business segments. In all, for market potential to be reached, PC makers should understand consumer’s motivation; needs and preferences by constantly research the market, according to Kotler (001).


Conclusion


For the market to rejuvenate, the makers of PC should introduce marketing strategy that allows them to ‘ask the market before developing’ product and real market test before product development. This will save costs, lead to reduction in retail prices, building of competitive products and ensure that there is demand before production. Americans like variety and quality, PC maker should be constantly aware of these facts when developing their products.


References


Goldberg, A. (18). Consumer PC Business Booms. ZD Market Intelligence. Retrieved January 8, 00, from http//www.zdnet.com/anchirdesk/story


Gill, L. (00). PC Market Forecast Slashed Again. NewsFacto Network. Retrived January 8, 00 from http//www.newsfactor.com/perl/story


Kanellos, M. (00) The World is a tough oyster for US PC Makers. Retrieved January , 00 from http//news.com.com/100-1001


Roger, K. (00) Dell Regains Lead as PC Market Resumes Modest Growth in Third quarter, IDC Says. Retrived January , 00 from http//www.idc.com


Kotler, P. (001). Marketing Management [University of Phoenix Custom Edition e-text]. Boston Pearson Custom Publishing. Retrieved December 14, 00, from University of Phoenix, Resource, MKT/551-Marketing Management Web Site//httpsecampus.phoenix.edu/secure/resource/resource.asp


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