Question:
Discuss about the Marketing Capabilities and Competitive Advantages.
Marketing concepts revolve around the product production, marketing and selling concept. These are marketing approaches used in modern marketing techniques such as dgital advertising. This includes the internet, mobile marketng and branding techniques. Content marketing is critical in digital marketing and techniques because it describes the product details such as quality, performance, innovation and pricing. On the other hand, selling concept uses these consumers for promoting and selling products that the consumer likes. Campaign marketing is part of this attempt to sell the product brand using consumer and competitor advantages. E-commerce and social media are modern marketing trends for new products. It includes creative use of ideas in direct and indirect marketing. Each of these have advantgaes and disadvantages.
This report highlights the pros and cons of digital marketing for new products. It highlights these using the example of Luxaticas new brand, the New HYT Limited Edition. Targeting the luxury buyers, this brand features attributes for the target market. It looks at the use of its website as a platform for mixed marketing platforms. An analysis of these reveals the strengths and weaknesses of marketing concepts in Luxatica’s marketing plan. These are, product development, optimal pricing, promotions and
The HYT limited edition watch is a new product which needs to supports Luxatica’s luxury brands. The brands use of strategic promotions is evident in its online marketing ventures (Lin & Huang, 2012). Taking a sales pitch, it advertises the watches in support of its pricing, value and brand image. the wesbsite indicates the product features in line with the ideals of ts target market which is the high end consumer. This is an outreach marketing activity which takes advanatage of social and cultural values that the technology change brings to the market.
Bijker, Hughes, Pinch, & Douglas ( 2012) discuss social media and its influence on society. The new HYT watches describe a product that is suitable for a sporty, fun loving group of people. The content in its social links show these attributes.
The brand website connects to Twitter which is a perfect tool for socializing and networking. This link has slots for the brand to share photos depicting the ideal target group enjoying life. This is for people who love value and are willing to pay for it. Twitter is an effective communication tool for business because it generates leads to the brand website. This is also a perfect platform for showcasing the brand’s image of luxury. It gives the brand insight into the sutomer perceeptions for brand positioning and customers also get a link for feedback (Masulis, Pham, & Zein, 2011). However Twitter tends to receive a large amount of negative feedbacks and it faces risks of malware attacks. The brand needs a skilled social media strategist who understands how to maximize on Twitter for brand sucecss.
From the brand Website, statistics reveal that it has 6 Facebook shares. This is the highest response from all its social platforms. Facebook provides a great link for small and large brands to connect with its 85.6K follower audience. However, HYT new editon watches need to consider age target groups for significant outcomes. Although FB is good for sharing and brand referrals , it needs keyword rich adverts to become effective (William & William, 2013).
Maximizing on the product perfomance and design, Luxaticas sells the HYT watches at costs as high as $ 65000 and $95000 for the H1 and H4 respectively. The brand is in a class of other competitor brands in the Swiss Watch categories. Although most brands would make use of price dicounts, the HYT as a new brand has no special price offers. This is a brand management strategy to protect the brand from counterfeits (Qian, 2014). However, the brand must prove its worth because cospicous products have an edge that endears consumers to it. a pricing plan for a new brand leaves an impression about its quality and price connections.
For an effective optimal pricing plan, the watch brand also needs a customer loyalty strategy to atract and retain its customer. Luxaticas takes advantage of its brand label and quality for product bundling which is viewed as more strategic. This is one of the most effective strategies for innovatve products that are unique and advanced in perfomance (Bohnsack, Pinkse, & Kolk, 2014).
Product development for a new product is important because it gives it a classic design motivated by reviews and ratings (Leeflang, Verhoef, Dahlstrom, & Freudt, 2014). Product marketing is a strategy that helps a brand to succede. Part of the plan is to adopt the brand culture. New HYT Limited takes advantage of the digital marketing era to use affordable internet strategies. Its website shows email links which connect the customer to the brand. This is ata lower cost and it take less to produce the content. However, this plan needs insight into the customer perception.
Failure to research on custoer behavior places the brand at a riks of inacurate positioning. Quality, value, function, perfomance and design are some of the product inspirations for this product. Its greatest challenge arises during the customer reception because its reception can reveal a negative trend. Luxaticas attempt to venture into new products depends on principles of marketng. These are engraved in pricing, customer management and brand management. The company enhances its strategies through product mix and strategic targeting (Shrank & Lyberger, 2014). The brand’s website lacks comments from customers which shows a deficiency in effective customer engagement. Although the brand seems to understand its edgy customer needs, it needs to invest time and resources in online marketing.
Distribution works together with production because it determines the marketing trend. In the fashion industibution multimedia platforms provide a significant strategy for effective advertising. The Instagram link for the brand has more than 22000 likes which is higher than Twitter. This is proof that the consumer appreciates visual content The brand needs to make more use of indirect marketing tactics such as videos and interesting images that depict a luxury brand. Distribution influences the marketing trend in online as much as it does in offline tactics (Shankar, Inman, Mantrala, Kelley, & Rizley, 2011). An appealing content captivates the prospecting buyer to find the product. Luxatic’s website is missing direction and contact details. Instead, its focus is on subscriptions and product details.
Instead of the link being used for product promotions and online sales, it is a host for other websites. An effective distribution approach considers retail shops, online stores, and on location selling points. The New HYT Limited seems to specialize on mails but this may not improve sales as much as retail and online distributions (Hlliman & Rowley, 2014). Professional content developers encourage the incorporation of quality distribution as part of the marketing agenda.creative marketing influences distribution of products in all industries and digital marketing structures include e-commerce content distribution. Distribution controls the transactions and communication patterns.
HYT needs to work in line with the market trend. Competitor brands targeting luxury buyers separate the target by classifying products in different consumer segments such as men and women. Demongraphics provide a way for the brand to find cliché buyers for greater effect. Integrated marketing uses multilevel advertsing (Chaffrey, Smith, & Smith, 2013). The popularity of digital marketing supports the creaton of location stores. This watch brand cannot ignore the benefits of discounts because they atrract the attention of online shoppers. However, promotions need to strategize through website or online strategies. This proces of strategizing starts with understaidng the market. Research helps to define this market with consumer attributes. This supports value based marketing that seeks solution to consumer problems. The contemporary consumer market is highly competitive because of marketing tactics (Murray, Gao, & Kotabe, 2011). Integrated marketing includes creative strategies, promotions, campaigns and marketng communicatin strategies which HYT Limited Edition needs.
The use of mobile technology in marketing campaigns is effective and creates a competitive advanatages. It is more interactive and connects to the consumer in direct marketing. Consumers today carry mobile internet eevrywhere they are. This makes mobile marketing convenient and more effective. Mobile marketing content for smartphones, tablets and PDA is developed with a sales agenda targeting the user. The optimization of te small screen calls for minimizaton of content (Leeflang, Verhoef, Dahlstrom, & Freudt, 2014). Despite the popularity of mobile marketing it also has challenges including cybercrime threats of malware and misconceptualization.
A new mode of consumer interaction is the SMS marketing approach. This is an effective method of direct marketing. It is efficient in promotions although it is believed to violate privacy (Bijker, et al., 2012). Consumers want to hear about discounts, special offers, free delivery and online shopping links. The impact of promotional activities by a brand could be positive or negative. Consumer reactions to a new brand reveals the effectiveness of a brand. Digital marketing accomodates for all kinds of consumers through videos, images, SMS, email, news search, industry searches and others.
Conclusion
Digital marketing concepts vary and determine the trend adopted by the brand. Businesses have objectives and new brands need an effective marketing channel to capture the consumer. The digital platform provides an affordable and simplified method of promoting, distributing, optimizing on the price and developing the brand. Although brands today invest in websites, having a web page is not enough. Creative use of digital techniques such as social media and web content adds value to the advertising. Different techniques have advantages and disadvantages and brands need to carry out a market research on the best approach for a product. Consumers receive brands, which focus on value creation positively than those, which give a price perspective. New HYT Limited edition is a new watch brand from a respectable luxury brand. This is not a guarantee that the brand shall receive a positive response from buyers. It needs to invest in creative and effective marketing tactics.
References
Bijker, W. E., Hughes, T. P., Pinch, T., & Douglas, D. G. (2012). The social construction of technology systems: New directions in the sociology and hostory of technology. MIT Press.
Bohnsack, R., Pinkse, J., & Kolk, A. (2014). Business models for sustainable technologies: Exploring business model evolution in the case of electric vehicles. Research Policy, 43(2), 284-300.
Chaffrey, D., Smith, P. R., & Smith, P. R. (2013). E-Marketing Excellence: Planning and Optimizing Your Digital Marketing. Routledge.
Hlliman, G., & Rowley, J. (2014). Business to business digital content marketing: marketers’ perception of best practice. Journal of Research in Interactive marketing, 8(4), 269-293.
Leeflang, P. S., Verhoef, P. C., Dahlstrom, P., & Freudt, T. (2014). Challenge and Solutions for marketing in a digital era. European Management Journal, 32(1), 1-12.
Lin, P. C., & Huang, Y. H. (2012). The influence factors on choice behavior regarding green products based on the theory of consumption values. Journal of Clearner Production, 22(1), 11-18.
Luxatic. (2017). New HYT limited-edition models? Yes, Please! Retrieved from luxatic.com: https://luxatic.com/new-hyt-limited-edition-models-yes-please/
Mannah, J. (2017, September). 30 Top Luxury Watch Brands You Should Know. The Trend Spotter. Retrieved October 2, 2017, from https://www.thetrendspotter.net/20-top-luxury-watch-brands-know/
Masulis, R. W., Pham, P. K., & Zein, J. (2011). Family business groups around the world: Financing advantages, control, motvations, and organizational choices. The Review of Financial Studies, 24(11), 3556-3600.
Murray, J. Y., Gao, G. Y., & Kotabe, M. (2011). Market orientation and perfomance of export venture: the process through marketing capabilities and competitive advantages. Journal of the Academy of Marketing Science, 39(2), 252-269.
Qian, Y. (2014). Brand mangement and strategies against counterfeits. Journal of Economics & Management Strategy, 317-343.
Shankar, V., Inman, J. J., Mantrala, M., Kelley, E., & Rizley, R. (2011). Innovations in shopper marketing: Current insights and future research issues. Journal of Retailing, 87, S29-S42.
Shrank, M. D., & Lyberger, M. R. (2014). Sports marketing: A strategic perspective. Routledge.
William, A., & William, D. (2013). Why people use social media: a uses and gratifications approach. Qualitative Market Research: An international Journal , 362-369.
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