🚀 Panasonic Market Strategy: Mistakes and Conclusions

It is known that the market has such a not very pleasant for businessmen property as the ability to saturate. Saturation occurs when all consumers who could and wanted to buy a given product have already done so. When this happens, that's it, the product is no longer needed, and it cannot be sold unless the market is expanded. There is a chance to sell only if someone's product breaks down and needs to be replaced.

This characteristic is unpleasant because it leads to many negative consequences at all levels. Market saturation hits the manufacturer, who stops making profits and often even starts making losses, hits distributors, who have nothing to sell. Saturation also hits the state, which starts receiving less taxes, and therefore can spend less money on social programs.

Sadly, saturation also hits the consumer, because he has nothing to buy to replace the product due to the fact that many manufacturers leave the market when it becomes saturated. It is possible to remain on the market only in one case – if the strategy of market expansion is chosen.

Companies that begin to experience the above problems, oddly enough, usually use the concept of classical marketing. This is indicated by the assessment of the marketing strategy of these companies. One of these companies is Panasonic, which fell into the trap of classical marketing. The concept of classical marketing is quite effective and it is logical to assume that it should have helped to avoid problems.

However, in reality it turns out that it creates these problems. It creates them because it is quite limited. It says that you need to study the market. If there are needs, you need to make a product for them. Accordingly, if there is no demand, then you need to stop making the product and leave the market.

There is no talk of creating new needs or creating new markets in this concept. In other words, a market expansion strategy is simply not provided for in classical marketing. Within the framework of classical marketing, it is provided to work with the market that exists, finding and satisfying the needs of consumers in this market.

Thus, it turns out that marketing first creates, but then marketing kills. When everything is good on the market, marketing gives an opportunity to earn money. But when problems begin on the market, again, marketing forces you to leave it, because within the framework of classical marketing it is said that goods should be produced to satisfy needs and requirements.

If the research data shows that there are no needs and requirements, then there is no point in producing the goods. It is obvious that the classical marketing concept has limitations, because it allows working only on a ready market. The market expansion strategy cannot be applied in the paradigm of classical marketing. At the same time, classical marketing carries not only limitations, but also danger.

It lies in the fact that in the process of studying classical marketing, people develop limited thinking. A person with a marketing education can only think within the framework of this concept, and cannot go beyond it. But there is no need to be upset, because the strategy for expanding the market and the tools for this are in noomarketing.

Noomarketing is still not very widespread. Of course, there are its analogues, for example, Apple marketing. But still, it is not used often. In this regard, millions of people around the world become victims of classical marketing, who find themselves unemployed. This number is constantly growing. For example, a couple of years ago, Pan aso nic announced that it would cut 40 thousand employees worldwide.

Of course, for the company itself, this is a drop in the ocean, some 10% of the total number of employees. But on the other hand, this is basically the population of a small but cozy town, and if you add children and old people, then you get a decent city with 100,000 residents who live off of working for this company.

How Market Expansion Strategy Brings Problems

Add those who live on taxes, in other words, civil servants, add people from the service sector and the figure will be even higher. In other words, with such dismissals Panasonic is effectively leaving residents of an average city by European standards without a livelihood.

Of course, one can refer to the tricks of competitors, to the market situation, but the real reason for the situation due to which Panasonic is forced to constantly cut staff is that this famous company does not know how to create new markets, it does not know how to implement a market expansion strategy, and also does not know how to eliminate a competitor.

This company can very well squeeze everything it can out of existing markets, especially by skimming the cream off by setting prices for its products 10-50% higher than the market price, but it cannot create new markets. The result is that it is forced to choose a strategy that it constantly implements, namely, a strategy of working in existing markets, rather than a strategy of market expansion.

Whether this is a good or bad strategy is up to Panasonic shareholders to decide, our task is to understand how the market expansion strategy is being implemented, what is needed to implement it, and what the essence of this strategy is in general.

If Panasonic had studied Coca-Cola marketing, it would have been able to create new markets, and this would have changed the situation completely, because it would not have the problems that it really has now. To do this, you only need to have the necessary technologies, for example, you need to have noomarketing. Everything else, including the money that was wasted, it has.

Thus, according to the BBC, due to the reduction, the company suffered losses of more than 100 billion yen ($1.22 billion). This is a decent amount. Since it will be lost in any case, it could have been invested in creating new markets. By spending almost 10 dollars on each Japanese, it would have been possible to create if not 125 million consumers from all Japanese, then certainly a million.

These consumers could then recoup the investment, and even make money, and there would be no need to fire innocent employees who fell victim to classical marketing and the specialists who use it. With noomarketing, the strategy of market expansion is a reality, unlike classical marketing, where it is nothing more than a fantasy.

Possession of noomarketing allows creating new market segments or even new markets as a replacement for those markets that have begun to decline and from which it is necessary to leave. For example, another Japanese company, called Mazda, has similar technologies and, accordingly, a target marketing strategy is available to it. Thanks to this, it also knows the essence of the market expansion strategy.

The essence of this strategy is the creation of new segments or new markets. Many new segments and new markets can be created, everything depends on the desire and possibilities. Moreover, as practice shows, it is often cheaper to create new markets or segments than to leave existing markets, because in this case you will have to pay various penalties, for example, compensation for dismissed workers.

In addition, many expensive equipment has to be frozen. Also, many problems have to be solved with various organizations, such as trade unions. Especially many problems arise when it is necessary to reduce workers in countries where the head office is not located. In order to avoid these problems, it is advisable to receive business consultations and recipes for their solution.

Noomarketing is a fairly simple technology, accessible to all businessmen and marketing specialists, especially those who already have mastered classical marketing. The simplicity of this knowledge is such that even a non-marketing specialist can master it. The volume of this knowledge is no more than a standard book, so you can master it very quickly.

You can apply this knowledge immediately after mastering it, without any warm-up. Technologies created on the basis of noomarketing are quite easy to implement in a company, and you will hardly have to change your business much. At the same time, these technologies solve the main issue – the issue of fighting competitors. Using noomarketing technologies allows you to get monopoly markets where there will be no competitors. In order for noomarketing to be easy to learn, it is advisable to read articles on classical marketing.

Market expansion strategy is a set of consistent and interconnected activities. The direction of these activities is different. It is necessary to work with consumers and with the company itself and in other directions. But the essence of these activities is the same: any market is based on an idea. In order to expand the market, it is necessary to expand the area of ​​distribution of the idea.

If the market consists of 1 million consumers, it means that the idea has been implemented in exactly 1 million people, the area of ​​distribution of this idea is 1 million people. If additional consumers are needed, if the market needs to be expanded, for example, to 2 million consumers, then it must be implemented in another 1 million people. If the idea is not implemented in a person, then he is not a consumer because he has no motivation to consume. This motivation is created only by the idea.

An idea implanted in a person generates motivation and desire to have a product. Noomarketing is a technology for working on the market at the idea level, which is why it allows implementing a market expansion strategy. Accordingly, it is vital for everyone who wants to apply this strategy to be interested in noomarketing and its tools, including marketers at Panasonic.