Assignment:
Strategy and Positioning Analysis Part
Marketing Mix and the Product Life Cycle
In developing a strategy for marketing the Smart TV application, focus should be emphasized on informing the consumers on the ways this product will enhance their lives, and create an improved experience for them. As the product shifts through its product cycle, the marketing mix needs to change with the needs of the consumer. Our audience from the initial release of the product will be those consumers that enjoy the most updated technology and features of the product. Over time, the consumers that want the product after the "testing" stage wears down, will show interest in the application. As the product cycle reaches its peak, focus should shift to maintaining existing buyers while offering the product at a discounted price. Finally, at the end of the product life cycle, phasing out the product will take place in anticipation for a newer, updated application or product.
The marketing mix should change as the life cycle of the application changes for the consumers as follows:
•Introduction Stage. Advertisement should focus on informing consumers of the application product, detailing the features that are included, and how the consumer can benefit from the application. A news release is an excellent way to initially reach our target audience that is wanting a greater range of use for their Smart TV. Television spots and publicity may begin before the product is available.
•Growth Stage. During this stage, the marketing should be focused on persuading consumers to buy this product instead of choosing substitute products. Primary promotional effort should be advertising via television spots, magazine ads (tech magazines are best), and personalize selling in stores such as Best Buy, or Sears.
•Maturity Stage. Focus should now be on maintaining existing buyers, and using marketing tools such as advertising to remind buyers of the products existence. Sales promotions, discounts, and coupons will temporarily boost sales to new customers. Direct marketing actions like direct mail are used to maintain involvement with existing customers, encouraging repeat business.
•Decline Stage. This is the phase out stage in which the product is in its decline of production and sales. At this point, no advertising is needed. The product will likely be replaced by an improved or lower-cost product (Kerin, 2015).
Pricing Strategy
When we analyze the appropriate pricing strategy for our product, through Samsung, with the price that we will set at launch, we need to consider a few things:
•reflect the value you provide versus your competitors
•match what the market will truly pay for your offering
•support your brand
•enable you to reach your revenue and market share goals
•maximize your profits (Marketing Guides, 2017).
Launching a product means keeping those prices competitively like other brands and giving value to the consumer without over-pricing the product. Ensuring a quality brand that offers a reasonable price to the quality of the product, is ideal. When we consider pricing and the competition, we also need to focus on profits. Finding an even balance is crucial and we also need to meet the promotional needs. If we can market the TV and have favorable results, we can allow certain discounts and offers to keep consumers happy with increased revenue.
We need to make sure that the research is fully conducted with our competition. What features and prices as well as guarantees are they giving? Also, what promotional techniques are working to attract customers? These are a few questions that need to be asked when we launch a pricing strategy. Maybe starting at a lower price will ignite the sale of the product, and then going to regular prices after we have a base line of consumers will help the product revenue.
References
Kerin, R., Hartley, S., & Rudelius, W. (2015). Marketing. (12th ed.). New York, New York: McGraw-Hill.
MarketingGuides.2017.https://www.marketingmo.com/strategic-planning/how-to-develop-a-pricing-strategy/