MARKETING please answer all Is the PC a Product in Decline

MARKETING - please answer all

Is the PC a Product in Decline?

As technology changes, so do customer requirements - as well as the products available in the marketplace. Over the years, there have been many popular products, brands and technologies that have lost their market position and left the market altogether - for example, typewriters, vinyl records and video tapes. In the IT industry, there has been discussion that with the growth in tablet sales (like Apple iPads) and smartphones, personal computers such as laptops and desktops will soon become products of the past. Or will they?

In 20l3, two industry studies showed falls in the PC market. Research company Gartner reported that global shipments of PCs were down 10.9 per cent, which resulted in \'one of the worst declines in its recent history\' with falls in five consecutive quarters. Principal analyst at Gartner, Mikako Kitagawa, said:

We are seeing the PC market reduction directly tied to the shrinking installed base of PCs, as inexpensive tablets displace the low-end machines used primarily for consumption in mature and developed markets.

In Asia, the decline was greater at 11.5 per cent, and Kitagawa attributed this to the fact that in emerging markets, the less expensive tablet option has become the first computing device for many people (who may simply be deferring the purchase of a PC down the track).

The second report by International Data Corporation (IDC), using a different methodology, came to the same conclusion, although produced a slightly smaller decline than expected. IDC said the numbers \'reflect a market that is still struggling with the transition to touch-based systems running Windows 8\'.

At the same time as the PC market is declining, the tablet market is growing, with IDC predicting a nearly 60 per cent increase in tablet sales, and for tablets sales to surpass those of portable PCs. According to Ryan Reith at IDC, \'What started as a sign of tough economic times has quickly shifted to a change in the global computing paradigm with mobile being the primary benefactor\'.

Does this mean an end to the PC market? IDC believes that PCs will have an important role in this new era of computing, particularly for businesses. However, for many consumers, tablets provide a simple solution for those wanting the basic capabilities of a PC.

Further, Loren Loverde, program vice president at IDC said:

Many users are realizing that everyday computing, such as accessing the Web, connecting to social media, sending emails, as well as using a

variety of apps, doesn\'t require a lot of computing power or local storage. Instead, they are putting a premium on access from a variety of smaller devices with longer battery life, an instant-on function, and intuitive touch-centric interfaces. These users have not necessarily given up on PCs as a platform for computing when a more robust environment is needed, but this takes a smaller share of computing time, and users are making do with older systems.

It could be argued that the PC market would decline anyway, despite the growth in tablets and smartphone sales, as PC sales have achieved a sort of equilibrium. The processing power of PCs already meets the needs of most users, so any small improvements in newer models are not enough to result in the purchase of a new PC.

While industry people, researchers and journalists debate the different views, it is always important to observe the views of the users or customers. One way is to review online consumer comments. Following an online story on the decline in sales of PCs in The Age, readers left a range of views on the topic. Most agreed that lightweight tablets are great for web browsing, watching movies and social media. Many commenters stated that they owned both a tablet and a PC or laptop, acknowledging that the capabilities of tablets are still very limited (unable to complete more complex word processing, gaming and photo editing tasks). Most commenters still used PCs or laptops for work purposes where applicable, so it seems unlikely that consumers will ditch the PC altogether any time soon. Some consumers even looked to the future, envisioning a hybrid device using both tablet and PC technology - a device that docks to a larger monitor with a keyboard and mouse, but able to to be easily transported to meetings or on business trips.

Journalist and commentator Tony Bradley stated his view:

Ultimately, PCs aren\'t dying, they\'re evolving. One form of PC is in decline, but another form is growing exponentially. The tablet market is expanding much faster than the traditional PC market is shrinking, and combining the two for a more comprehensive perspective on personal computers in general shows that the PC market is still growing.

Clearly, there is not one view about the decline in PC sales, and only time will tell which is correct.\"

3.1: Draw a diagram showing the three product levels. Explain the three levels of a product using PCs or tablets as an example. .   

3.2: There are a variety of consumer product classifications. What classification is the product in the case? Explain your answer using the case   

Q3.3: Explain the classification of the product in the case above in terms of its price, promotion and distributions and two (2) of its characteristics.

3.4: Explain the eight steps of the new product development process a marketer of PCs would go through when developing the next generation of their product.

Solution

3.4:Eight steps of the new product development process of PCs:

1)Idea generation: The develpoment of new product starts with NPD.The idea generation stage generally statrts with analyzing the internal analysis and external analysis i.e., SWOT analysis (strenghts,weaknesses,opportunities and threats).

In SWOT generally strenghts and weaknesses are internal to firm and opportunities and threats come from external environment.The external analysis can be done by market research information and contacting the target audience ideas and views.The internal strenght of a firm can be increased by encouraging the employees.

2) Idea screening:

The idea screening is done after collection of all available ideas and options.It generally involves collectiin of sutiable ideas or projects and rating of these options or ideas by caluculating the ROI (Return on investment).

3)Concept development and testing: after the idea is selected then the concept is developed and needs to be tested in the test market group whether it will be succesfull or not.

4)Business analysis:For testing generally,after the concept has been done next the business analysis of that concept has to be done so as to find whether the product will be profitable or not.

5)Product development:It involves extra development of more specifications or features of a product.

6)Test marketing:It involves realizing the prototype of product stating the futher stategies of a firm.

7)Commercialization:It generally involves decisions about pricing and marketing of a product

8)Launch : It should involves releazing the product.

Thus for PC market also to bring the next generation modelsthe new ideas about PC models are brought and tested and then selected.

3.1: Three levels of a product: The three levels of a product are:

1)Core product:The core product is not visible outside.It is intangible in nature.For PCs for example speed.

2)Actual product:Actual product can be touch or felt.It is the ultimate purpose of a product.For PC for example the work that can be done by using it.The use for which it is bought is actual product.

3)Augmented Product:It is the non-visible and non -phyiscal form of the product.It generates more value for product.For PCs the warranty or after sales service provided.