3.1 Motivation for establishing the new business entity

“Marketing tuning” of the clients’ products to the changed customer demand or the new markets requires sufficient marketing and organizational efforts from the enterprises. Marktune will assist to the companies in conduction of a market research, a new product planning, financial planning, development of IT infrastructure and necessary human resource supply.

Author of the Thesis suggests using following key notions that become core concepts in “marketing tuning” of the clients’ products:

Positioning – professional activity, result of which is creation of newly recognized scientifically and socially justified value to the buyers and implementation of particular promotional or advertisement activity to attract people attention.

Market downshifting – the downside volatility or decline of demand on goods and services. Ordinary, it brings repositioning of company products and services. Market downshifting may have direct link with market damping. Marktune helps to clients to overcome market downshifting and to reposition, if necessary, clients’ products.

Market up-streaming – widening or growth of demand on goods and services. Generally, it follows by change of the company strategy.

Ecological surfing – verification of creative hypnotizes from scientific point of view.

To identify demand on services of Marktune the author studied possible problems of the potential customers. Marketing teams and top management encountered objective obstacles in establishing new product and service concepts. From 1960s on the extending world markets distinctive images and particular qualities among variety of products and services became more difficult to establish.

Marketing professionals have been trying to find differences, ether real or imaginary, in product placement while firm entering the new markets. It becomes generally accepted that each product or service offering needs to have its own easily recognized “position” in the same market place. The main objective to gain success among customers was to find the most competitive and profitable position.

James H. Myers from American Marketing Association on Chicago expounds that a company, product or service should stand for something important that could be expressed concisely and repeatedly in promotion efforts of various kinds²³. Thus, the target of in positioning and repositioning became more demanding. In 2000 market surveys, conducted by research group Spectra/BASES²⁴ in the USA, revealed that from 30 000 new goods 93 %, was discharged from the market not winning the customer demand. Moreover, vendors reduce trial period of new products down to 6 months. Total annual manufacturer demand exceeded 20 milliards USD.

Search for a new business idea, a new market niche, idea of a new product are the one of most vital problem of the contemporarily business. But the question of business development direction is crucial. Growth potential of the existing product often is very limited. The best market decisions, we are need to find, are bringing to growth of the total output and, as a result, to higher profitability. Vitor Tamberg and Andrey Badin²⁵ describe the process, development and crisis of market positioning (See Figure 7).

Promotional and product functions development efforts are not required. The main target is supply of first emerged demand

Start of product marketing mix on the market is necessary

Geodemographical segmentation. Introduction of the brands as stereotypes helping people to choose the most appropriate in conditions of redundant supply

Requirements in the new more specific segmentation criteria

Сriteria of specific segmentation is not functioning. Physiological values and life style segmentation is not reflect actual customer behaviour on the market.

Existing market positioning is obsolete

Continuous development

Time to think about new positioning

Figure 7. Development and crisis of market positioning

To sum up, primary service of the established venture is product positioning of new market entries and repositioning products of historically successful brands. Providing assistance in new positioning of clients’ products Marktune will offer one of the two technologies developed by the Author either market downshifting or market up-streaming that will be supported by ecological surfing.