Strategy And Positioning Analysis Part 2 By Trish Kiebach An

Strategy And Positioning Analysis Part 2trish Kiebach Kris Wightmanmk

Strategy and Positioning Analysis Part 2 Trish Kiebach, Kris Wightman MKT/421 February 13, 2017 Instructor Tina White Potter Strategy and Positioning Analysis Part 2 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 baseline of consumers will help the product revenue.

Paper For Above instruction

The strategic approach to marketing a Smart TV application demands a comprehensive understanding of the product life cycle, market positioning, and adaptive marketing mixes aligned with consumer needs at each stage. The product life cycle (PLC)—comprising introduction, growth, maturity, and decline—serves as a vital framework guiding marketing tactics, promotional efforts, and pricing strategies. Effectively managing these elements ensures sustained consumer interest, maximized profitability, and a smooth transition through each PLC phase.

Introduction Stage

During the introduction phase, the primary objective is to generate awareness and stimulate initial demand. Given that Smart TV applications often introduce innovative features, marketing messages should center on educating consumers about the app's functionalities and benefits. Employing news releases and media announcements can effectively reach tech-savvy audiences eager for enhanced entertainment options. Early advertising efforts through television and online media should highlight features such as user interface, compatibility, and unique functionalities, positioning the app as a must-have upgrade for smart TV owners. Pre-launch publicity can build anticipation, thereby accelerating initial adoption (Kotler & Keller, 2016).

Growth Stage

The growth phase witnesses increasing acceptance, necessitating persuasive marketing to outperform competitors. Here, emphasizing differentiation becomes paramount—highlighting superior features, user experience, and integration capabilities. Advertising channels such as technology magazines, targeted digital campaigns, and retail in-store demonstrations help reinforce the app’s value proposition. Personal selling in prominent retail outlets enables consumers to experience the app firsthand, fostering trust and encouraging purchase decisions. Customer testimonials and reviews further bolster credibility and encourage word-of-mouth promotion (Lamb, Hair, & McDaniel, 2018).

Maturity Stage

As the product reaches market saturation, the focus shifts to loyalty and retention. Maintaining existing customer interest involves marketing tactics like reminder advertising and promotional offers—discounts, coupons, and bundle deals—aimed at incentivizing continued usage. Direct marketing efforts, including email newsletters and loyalty programs, keep the product top-of-mind among existing users, promoting repeat engagement. Additionally, incremental feature updates and user support facilitate sustained competitive advantage, ensuring customers perceive continued value (Unger & Van den Bulte, 2017).

Decline Stage

In the decline phase, sales decline due to market saturation or obsolescence. Marketing expenditures are reduced, and the focus shifts to phasing out the product. Promotional activities are minimized, and communication emphasizes transitioning customers to newer versions or alternative products. Strategic decisions during this stage include managing inventory and preparing for product discontinuation while safeguarding brand reputation. Sometimes, offering discounts or final promotions can clear remaining stock, while investment shifts toward innovative developments for future offerings (Kerin et al., 2015).

Pricing Strategies Aligned with the Product Life Cycle

Effective pricing strategies are integral to optimizing product performance across its PLC. In the introductory stage, penetration pricing—setting a low price to attract early adopters—is advisable, especially in competitive markets like smart TV applications (Higgins, 2017). This strategy helps establish market presence and encourages consumer trial. As the product gains acceptance, price adjustments—either maintaining low prices or employing value-based pricing—can maximize revenue without sacrificing market share. During maturity, competitive pricing, discounts, and bundling enhance attractiveness, while during decline, a price reduction helps move remaining inventory and retain profit margins (Nagle & Müller, 2018).

Decisions should be driven by thorough market research, competitive analysis, and consumer perceived value. Balancing profitability with customer satisfaction requires careful evaluation of competitors’ pricing, features, and promotional tactics. A strategic combination of market-oriented pricing and innovation can lead to sustained success for the Smart TV application (Monroe, 2013).

Conclusion

Integrating the marketing mix with the product life cycle stages enables effective management of the Smart TV application’s market journey. From creating initial awareness during introduction to cultivating loyalty in maturity and strategically phasing out in decline, each stage necessitates tailored marketing tactics and adaptive pricing strategies. Continuous market research and customer engagement are essential to sustain competitive Edge, maximize profits, and prepare for future technological advancements. A disciplined, well-timed approach ensures that the application remains relevant, valuable, and profitable throughout its lifecycle.

References

• Higgins, J. (2017). Pricing strategies for technology products. Journal of Marketing Analytics, 5(2), 45-58.
• Kerin, R., Hartley, S., & Rudelius, W. (2015). Marketing (12th ed.). McGraw-Hill Education.
• Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Pearson Education.
• Lamb, C. W., Hair, J. F., & McDaniel, C. (2018). MKTG. Cengage Learning.
• Monroe, K. B. (2013). The economics of pricing. Harvard Business Review.
• Nagle, T. T., & Müller, G. (2018). The strategy and tactics of pricing. Routledge.
• Unger, D., & Van den Bulte, C. (2017). The price of loyalty. Marketing Science, 36(4), 644-660.
• Marketing Guides. (2017). Pricing strategies and considerations. Retrieved from https://www.marketingguides.com