Current marketing situation is characterized by rising demand for the microchip particularly in the medical industry. The demand for the product is exponential given a statistical demand analysis for the product. However, it’s worth noting that most of the products are produced by well positioned companies in the market and the ability to penetrate the market may be met with such intense rivalry that it may be difficult to penetrate the market (Douglas, & Craig, 2007).
A responsive marketing analysis reveals that a number of patients who see the use of the microchip as an option in treating their ailments constitute the greatest percentage. That implies demand is directly related to the number of patients in need of the microchip.
In addition to that, an analytical evaluation of the marketing situation reveals that anticipated demand is on the rise. That is strongly correlated to the modern day living conditions and medical predicaments many people encounter due to rising levels of diseases associated with the living style of many people.
Hypothetically, modern day living and lifestyle bears a strong relationship to the development of a number of medical complications in many people today. However, a critical evaluation of the market situation indicates without doubt that the concept of need shaping market has not yet held ground or anywhere near in the same market or industry (Granzin & Painter, 2001).
Therefore, the need to conduct a market driven analysis to identify customer needs and expectations and to tailor the product towards their needs and application in diverse areas is of vital importance. A market driven analysis not only enable the Microchip Company to tailor its products towards customer needs, but will enable the company identify points in need of improvements and wider areas of application for the MC microchip (Insch & McBride, 2004).
Further analysis of the marketing situation reveals that the production cost of the microchip has to be evacuated to determine the most cost effective strategy to employ in manufacturing the chip. Each of the production steps consumes skill, time, labor, and materials which accumulate to the cost of production of the device. If the cost of production goes too high, the production methods may be tagged as costly and inefficient hence the final cost of the product may be too high. The manufacturing company may not eventually benefit and may be in danger of losing business due to the fact that customers can opt for cheaper products with similar features (Cutura, 2006).
According to the market survey and analysis, it is worth noting that production levels have experienced an upward trend in the recent past and the level of consumption has indicated a significant rise (Jo, Nakamoto & Nelson, 2003).
The table below show annual production levels based on specific regions.
RegionYearProduction Level (nos)Consumption level (nos) that year