1. Which of Porter's generic competitive strategies would you recommend Sonic follow in formulation overall strategy?
Based on Porter's generic competitive strategies, I would recommend Sonic to follow the Focus strategy for an overall marketing plan. The Focus plan deals with one or more narrow segments and is a great entry barrier to develop the core specs for launching new products or services.

2. What demographic changes are likely to affect Sonic's targeted segments?

Demographic changes likely to affect Sonic's target market include a reduction in income for middle to upper class consumers, decline in college attendance, decrease in family size, and an increase in blue-collar workers. As the economy continues to be unstable, more and more middle to upper class consumers are experiencing a decrease in wages. Due to economic hardship, consumers are seeking ways to reduce living expenses.

3. What economic trends might influence buyer behavior in Sonic’s targeted segments?

Economic trends that might influence buyer behaviors include lower income levels and credit availability due to unemployment, higher revenue and expenditure goals due to inflation, and increased regulation of technological change.

4. Would demand for PDAs among corporate buyers tend to be inelastic?
The demand for smart phones among corporate buyers tends to be inelastic. Despite if the price falls or increases, corporate buyers will make the investment as long as there are benefits and unique needs for the phone.

Due to the type of product Sonic is developing, the demand will be inelastic mainly because competitors cannot make a PDA that is technological advance in a short time period.

5. Which variables should Sonic use to segment its consumer and business markets? Primarily, markets can be segmented according to

* geographic, demographical, psychographic and