Strategic Planning
Value Proposition
For the last decade, hardware and software have converged toward portable devices such as the iPhone or iPad, and an increasing number of facets of our lives can be controlled through those retina displays. With the ability to collect and store data while also executing dynamic permutations in any real-time setting, wearable technology has quickly made its way into the healthcare domain. It is now recognized as a valuable tool to help patient evaluation, treatment, and management (Godfrey et al., 2018). As such, wearable devices have seen a significant rise in popularity within the technology industry over the past few years. As a result, product differentiation takes precedence over targeting. By segmenting their audience, they can more precisely target how and where to send products and what to do with their latest design. The Fitbit Surge is unique and differs from other kinds of wearable technology in several ways. Fitbit’s Surge and Charge HR wearable fitness trackers are examples of a current-generation system that uses reflective photo-plethysmography to calculate heart rate (Jo & Dolezal 2016).
Additionally, the precision of the physiological data based on activities such as running, jogging, and cycling they provide becomes increasingly important (Jo & Dolezal 2016). Users can be inspired to become more involved through real-time information shown on their smartphones, and they can work with the data in a variety of linked apps. The Fitbit app presents all of the data in an easy-to-understand graphical interface. The surge has a color display and allows you to adjust the watch’s face with reduced alternatives, receive notifications and text messages from your linked smartphone, and monitor audio playback on your computer. Furthermore, it is less expensive than similar health activity detectors from other brands.
As such, customers should be encouraged to purchase this product since on the market today, and the best Fitbit a consumer can acquire is the Fitbit Charge 4. This accrues to the fact that it bridges the gap between workout bands and entire activity trackers. It’s easy and inoffensive enough to wear every day, but it’s also equipped with all the features you’ll need to keep track of your workouts.
Objectives
To grow digital presence – the current market has been diversified, and there has been a shift in the way business people and institutions promote their commodities and services. The major shift is from the physical sale and promotion of goods and services to online marketing strategies. These platforms include Facebook, Twitter, Instagram, and Snapchat.
To shorten the sales cycle – by creating and maintaining demand and preference for the commodity. Longer supply chains have been affected by increasing the production costs of a commodity and consequently higher-good prices. In using the online marketing strategies, the roles of intermediaries are eliminated, thus reducing the costs of payments that would have been made to them.
Marketing Mix Analysis
Product and Price Strategy
Black and Veloutsou (2017) enumerate that the series of distinct brand associations that producers aim to create or maintain is referred to as brand identity and the symbols they employ to help people recognize the brand. As such, resources with symbolic value are given and appropriated to become part of the receiver’s identity. Elsewhere, brand equity is a collection of brand assets and liabilities associated with a brand, logo, and emblem that contribute to or detract from the value a product or service provides to a business and its customers (Sallam 2016).
The most crucial stage in the product management strategy is positioning. Fayvishenko (2018) states that growth guidance for new products, market development, communication, pricing, and distribution channel selection are among the positions that have been carefully considered according to the company. The act of cultivating a company’s logo, distinguishing characteristics, favorable connections, and customers’ perceptions of values to build a long-term strategy of a commodity’s image and ensure customer loyalty towards this product. Articulated by squeezing from the literature the various pricing techniques as discussed below;
- Cost-based pricing – It is the most basic pricing technique. The price is set using this technique by applying a mark-up to the product’s cost. This approach is successful if the firm’s costs are not too high in comparison to the competition.
- Break-even Pricing – Break-even Point Pricing is a pricing technique that is based on expense. Companies decide the amount they will recover or earn from production and marketing costs.
- Customer-value-based pricing – Items are priced based on the commodity’s discernible worth regarding this type of product pricing. The customers’ viewpoint of the importance of rivals’ products and the value of the company’s product must be determined. It isn’t easy to measure perceived value, and if costs are higher than the perceived value, profits will suffer.
- Competition-based Pricing – This type of product pricing occurs when a business sets prices based on the competition. Those of rivals primarily influence prices.
Place and Promotion Strategy
Thabit and Raewf (2018) elaborate that among the significant features of the Market Mix is promotion. Sales marketing events include things like publicity, public relations, fairs, and exhibits. It is the role and sole responsibility of the marketing manager to determine how much money should be spent on the promotion of the product. Promotional acts are used to supplement personal selling, advertising, and publicity. Promotion would be used by both the salesperson and brokers to successfully present customers with the commodity and convince them to purchase it. Promotion encompasses many different components that work together to help a company achieve its marketing objectives. The promotion combination determines the product’s position inside the business segment of interest. It is worth considering it an investment; therefore, it should be factored into the cost of the product.
The distribution strategies of a commodity may take different forms depending on the prevailing market conditions. As such, a product may take the following distribution strategies;
- Intensive distribution – involves obtaining the largest number of available sources within the market. The primary objective of intensive distribution is to capture as much market share as possible.
- Distribution with Preference – This term refers to the distribution of outlets in particular areas. This is always the case determined by how well a commodity fits a shop interior. As a result, retailers can select a price point specific to consumers’ market demand, leading to a customized shopping experience. The frequency of sites in a given area is constrained by selective distribution.
- Restricted distribution – in this kind of strategy, few channels are available due to distribution restrictions. It can include anything from high-end brands to a minimal quantity set found in selected stores or regions. This procedure aids in defense of a brand’s name and the exclusivity of its products. Companies that conduct distribution exclusivity include high-end designers such as Chanel and automobile manufacturers such as Ferrari.
All elements of an organization’s marketing mix that promote exchanges by targeting the brand to a specific community of consumers, positioning the brand as distinct from competitors, and communicating the brand’s context and distinctive distinctions with the product’s target audience are referred to as marketing communication. Marketing contact is an important part of a company’s overall marketing mission and a key factor in its market performance (Chitty et al., 2017). As such, in introducing a new product, the company should consider an IMC framework with the following.
- Situation Assessment – involves customers or prospects, a competition analysis, environmental variables, competition, and an overview of the industry.
- Strategic Goals and Strategy – This includes reaching out to your target market(s), product placement, brand recognition, and IMC and communication.
- Integrated marketing communications program – some marketing strategies to be used are advertising, direct marketing, internet marketing, product promotion, public relations, and personal selling are all examples of marketing strategies. Setting goals, crafting a message, and devising a media strategy are all crucial steps to take.
- Creating a Budget that fits and takes into consideration each marketing tool.
- Implementation timeline.
- Evaluation of a program’s success.
Isosuo (2016) states that advertisers today use online platforms that include Facebook, Instagram, Snapchat, and Twitter, among others. He emphasizes that social media is such an important part of everyday life these days and that all is done online. The younger generation sets the tone in the world of social media. They are better at picking up new channels and traditions as compared to the older generation. He further adds that social networking provides an opportunity for a business to set the tone, have a story to share, enable brand strengthening, and make a lasting impression. To be successful on social media, customers want businesses to listen to them, be genuine, and participate in the discussion. Perhaps the most important part of social media for a company is getting it closer to its customers. Power has moved away from corporations and customers, and social media acts as a two-way communication channel.
Tuten (2020) stresses that the internet has been the foundation of our culture in the modern era. The widespread availability of connected devices such as personal computers, digital video cameras, smartphones, and wearables such as smartwatches enables consumers to create and distribute content from virtually any location on Earth. Any substantive study of consumer communication and its efficacy needs feedback. As such, noise may be a great barrier since it will not allow accurate information about the product either to the customer or feedback to the producers. And with no feedback, products fail because either party will not be aware of the product’s uncertainties.
Management and Control
First, with the high number of people having access to social media platforms such as Facebook, Snapchat, Instagram, and Twitter, the product received many inquiries from customers. As such, its introduction only proved to be a success to the business. It had attributed to the fact that online strategies have taken center stage in the marketing and promotion of products and services. Further, there was product performance brought about by the promotion of the product using the online strategies. Another metric was sales growth which arose as a result of the better product performance. Sales growth will enable the company to calculate its financial success by tracking down its sales revenue. It is the profit gained by selling goods after subtracting the expense of returned items and undeliverable. Furthermore, it can be seen through an increased purchase of the product, which translates to higher revenues and profit margin.
Secondly, there will be an increased demand that occurs majorly because the supply chain is reduced drastically. Marketing through social media means that there are no other parties involved in the supply chain except for the customer and the producer of the goods and services. Increased demand will translate to mass production, which translates to higher profit margins, customer satisfaction in terms of product availability, and favorable competition among its competitors. Lastly, reduced distribution costs, less handling of the product, and boost sustainability are realized when a shorter supply chain is used. All these will only work towards the success of the product in a new and or existing market. The shortened supply chain has been a business trend that came about with the accessibility of smartphones and the introduction of online social media platforms. It is important to have proper marketing strategies, among other basic issues, for the growth and development of a product in whichever kind of environment.
Conclusion
A strategic marketing plan assists a company in determining the direction in which they want to take their business. It entails setting clear, measurable objectives for the company. It establishes a sound basis for the organization’s objectives. Moreover, with the diverse changing needs of the market and society, planning by a business organization or company should recognize these needs. These needs include; communication, market diversification, and supply chain used in the distribution of the intended product. For instance, the relevance of effective communication, online promotion, and shorter supply chains between the company and consumers in marketing should not be taken lightly. They will define the fate of the company’s product in the market and consumers’ response towards it. As shown in this essay, strategic marketing planning enables the elimination of ineffective strategies. It increases emphasis on critical factors and the optimal distribution of resources, both of which contribute to increased efficiency. Thus, the critical nature of a strategic marketing strategy cannot be overstated in any company. As stated previously, it is the cornerstone of business sustainability.
References
Black, I., & Veloutsou, C. (2017). ‘Working consumers: Co-creation of brand identity, consumer identity and brand community identity.’ Journal of Business Research, 70, 416-429. Web.
Chitty, B. et al. (2017) Integrated Marketing Communications with Online Study Tools 12 Months. Cengage AU.
Fayvishenko, D., 2018. ‘Formation of brand positioning strategy.’Baltic Journal of Economic Studies, 4(2), pp.245-248. Web.
Godfrey, A. et al. (2018) From A to Z: ‘Wearable technology explained.’Maturitas, 113, pp.40-47. Web.
Isosuo, H., 2016. Social media influencer marketing. Bachelor’s Thesis, JAMK University of Applied Sciences.
Jo, E. and Dolezal, B.A., 2016. Validation of the FitbitŽ Surge™ and Charge HR™ Fitness Trackers.
Kayode, O., 2017. Marketing communication. Bookboon
Sallam, M.A., 2016. ‘The impact of brand image and corporate branding on consumer’s choice: The role of brand equity.’International Journal of Marketing Studies, 8(1), pp.98-106. Web.
Thabit, T. and Raewf, M., 2018. ‘The evaluation of marketing mix elements: A case study.’ International Journal of Social Sciences & Educational Studies, 4(4). Web.
Tuten, T. L. (2020). Social media marketing. Web.