Theories of Marketing Development Essay Example | Topics and Well Written Essays - 750 words

Theories of Marketing Development - Essay Example This theory applies to Sony considerably given that the organization spends heavily in R&D across all the product lines. As per statement released in 2003 by Nobuyuki Idei, Chairman & CEO of Sony Corporation, the organization planned to spend 500 billion Yens (about 5.1 billion US Dollars as per current rate) in three years to develop competitive key electronic devices through internal innovations although the organization invested 502 billion Yens (about 5.12 billion US Dollars) in 2005 itself. [Sony Corporation, 2003; Sony Corporation, 2005] Sony has been practicing creative destruction by forcing the old available products towards obsolescence by virtue of their innovations. One excellent example is the â€Å"style† innovation of Sony latest Pocket Style VAIO P that is expected to yet again create a new niche segment for Sony that may force laptops to obsolescence especially in applications like Internet usage, word processing, multi-media & entertainment, messaging, Internet-based telephony, etc. [Prokaza, Julian. 2009] Sony practices the strategy of Differentiation Strategy thus targeting niche markets where products are unique and sold at premium rates. They tend to develop unique market segments where there aren’t any competitions and the pricing strategies are totally in their own control. Walkman, Play Station, and now the Pocket Style Vaio P are examples of product uniqueness that Sony brings to the market. In these markets, Sony is not bogged down by competition that practice Cost Leadership strategy. Sony practices product uniqueness (differentiation) and achieves the same by virtue of huge investments in Innovation and R&D.