Discuss about the Understanding Influence of Marketing on Practice.
Situation analysis in marketing aims at providing the factors that will influence internet of things marketing and the environment the company operates in. 5cs include the company itself, competitors, collaborators, customers and context (Ajith, 2015).
The company is a shoe manufacturing and branding company. The shoe name and brand is called Adlib, and has been tipped to be one of the most exciting shoe brands in the world. It is however headquartered in New Zealand but has a global outlook just like its competitors Adidas and Nike. Adlib was established to cater for the needs of sportsmen and women all around the world. It has a youth and a classy outlook (Armstrong & Brennan, 2015).
Strengths
The company’s revenues and profits have been growing from one level to another. The company’s assets are big enough to compete on a global scale. However, other companies like Nike have the brand name which has grown for many decades and has reputation for greatness. It has good equipment, personnel and a vision to make it grow to a giant and one of the fortune 500 companies in the world.
Weaknesses
It is still a small company that has to compete with bigger brands like adidas and nike with a limited budget than the mentioned companies.
Opportunities
The company’s aim is to produce the best quality of shoes at an affordable price that is sustainable in the future. The competitive advantage over smaller companies is its massive technology worth millions of dollars, its distribution network and its brand equity (Baker, 2014).
Threats
The threats include cheap shoes imported from China and the competition from bigger and established brands.
Strategy formulation
The strategy is to promote a brand through IoT and internet advertising therefore increasing visibility especially in New Zealand.
For Adlib, the collaborative framework is structured in its chain of supply in New Zealand. It has more than 50 distribution shops and points of sale. The distribution points are aimed at supplying to smaller retailers in the chain of distribution.
Its network is highly effective and guarantees a smooth downstream line from the manufacturer to the supplier to retailors to customers.
The group is targeting mostly the youthful and fashionable clients. Its range of clientele are aged between 10 years and 40 years. They are mostly targeted as they are fashionable and are spenders.
The product prices are very fair and are targeted at competing with the most renowned brands. The price ranges between $ 50 to $ 400 dollars.
The total available market is large in New Zealand considering the median age of a person in the country. The market is also available and the people are willing to invest. Although this is not limited to only people falling within the years mentioned, older people above that age are also targeted especially those in the internet and use the digital platform.
Every company and brand faces changes if it is to survive in the market. Changes include manufacturing of every type of footwear in the future and positioning itself as the leader in the market.
The group is targeting mostly the youthful and fashionable clients. Its range of clientele are aged between 10 years and 40 years. Potential customers include the age bracket mentioned. The non- buyers are old people and the not so fashionable. In essence, the total available market, (TAM) is a generalized segment and includes every possible person. However, the serviceable obtainable market, (SOM) sub segment is the one that has internet connection and has available data for using while advertisement is done in the internet.
The competitors in the industry are mostly the global fashion company’s like Nike and adidas. Although there are many other small companies that are not necessarily competition to Adlib. In advertisement, the internet of things has been used specifically in New Zealand.
Its main competitors advertise through the internet globally, however, due to budgeting constraints, Adlib concentrate sin advertising in the country only. Its market share is less than half of the country but is improving in the marketing and advertising through the internet. It expects to dominate especially in New Zealand.
The competitors will use more budget in advertising to counter Adlibs aggressive marketing through the internet.
The context in which the business operates is analyzed through the analysis of PESTLE.
The political environment in the country is very stable and conducive to do business.
Economic environment is also conducive as the economy is growing. The use of IoT marketing has increase the sales with a good economic environment.
Social environment is also a major factors. The technology that Adlib uses is one of the best and will be used to produce quality shoes.
Finally, the legal and environmental aspects in New Zealand greatly favors any business trying to grow and become a global icon.
This is the attractiveness of the market while doing business and the strategies to become a market leader through advertising on the internet and other factors.
The market segment for our clientele is both male and female from the age bracket of 10 years to 40 years. This are the generations that are highly fashionable and outgoing. They are fun and love outdoor activities. They can also spend a lot due to peers, fashion and sense of worth (House & Street, 2016). They can spend outrageous amounts due to quality and what is trendy in the market.
We can run a psych data analysis and survey to get to know the nature of the available demographic and geo social data.
The homogenous group for targeting in marketing are between the ages of 10 years to 40 years. Although the difference in age is high, it is mostly the youth using the internet and have a high social media presence. They are also trendy and fashionable and would like anything that is worth the hype. They invest in quality designer shoes and clothing. They spend tens of thousands of dollars individually in a bid to look super cool. They are mostly financed by their parents or are working and have a close knit of social grouping that influence the trend.
The descriptive data that is available to validate the marketing segmentation scheme are being targeted. The group being targeted focus on what is currently being talked in the market and will invest in it. Therefore as a marketing tool, Adlib has to advertise mostly in social media platforms the internet of things and make a name for themselves. The group also focuses on change and therefore they cannot wear the same shoe design for a long time. It is therefore imperative that the company changes both the marketing strategy and the shoe design to become relevant.
The group is targeting mostly the youthful and fashionable clients. Its range of clientele are aged between 10 years and 40 years. They are mostly targeted as they are fashionable and are spenders.
The targeted segment is mostly both male and female between the ages of 10 and 40 years. They are the fashionable and have a high social media influence therefore they know what is trendy and what is not. They also like sports for males like basketball, football and rugby and are mostly influenced by the fashion sense of the athletes.
The size of the market is considerably big. Considering the youthful population of new Zealand, more than half of the country’s population fall in the targeted bracket. A lifetime customer will have made an estimated profit of more than $ 5500. This is a huge amount of profit based on the retail price of the shoe. The average shoe will retail at $ 320 and therfoer in a lifetime a customer will have given the company enormous profits.
With corporate goals and the action ability of the company, Adlib can have massive profits and still have good public image through marketing and corporate social responsibility. Marketing on the internet through devises like mobile phones makes it even easier for Adlib to reach its corporate goals. The shareholder aim from any company is to increase their value and to get profits from the investments. Actions of Adlib through its aggressive marketing through the use of Internet of Things (IoT) will ensure that corporate goals are within the reach every year of operation (Borah & Ryoo, 2018).
In any business and marketing strategy, positioning of the brand remains pivotal for growth of business. It refers to the customer’s perception of Adlib or the shoe brand in relation to competing brands like Adidas and Nike. Although it is a New Zealand shoe by origin it wants to have a global impact just like the brands mentioned above.
It is the impression created by the consumers of the brand in relation to the competitors. It is both centered through the strength and weaknesses of the brand. Although it is a New Zealand shoe by origin it wants to have a global impact just like the brands mentioned above. The image established by Adlib is that of entertainment and fashionable with a mix of thrill. It leaves the impression of a very versatile brand that is ready to compete with rivals. Its weaknesses is the brand itself as people perceive it as not good enough compared with Nike and Adidas and not global enough. It has a mixed perception index on the perceptual map (Chaffey & Ellis-Chadwick, 2016). .
Our position is very good in New Zealand. With local brand marketing in both the internet and audio-visual advertising channels, the market is highly receptive of the brand and has increased its market share. It is positioned to compete both in New zealand and on a global scale although established brands have an edge. It however, remains very competitive locally and is admired by the people due to its marketing ability on the internet.
The image established by Adlib is that of entertainment and fashionable with a mix of thrill. It leaves the impression of a very versatile brand that is ready to compete with rivals. Its position statement is seen everywhere.
The tactical plans are centered on the 4Ps in marketing which are basically Product, Price, promotion and place of a product.
Adlib is in the fashion industry, a highly competitive industry considering the amount of money put in developing brands. Our product is highly competitive and of quality. Adlib designer shoes can be compared to any other designer wear produced by Nike and Adidas. Our quality is however much better and our prices are much lower than the competitors (Jaworski, 2018).. Our brand is very good and socially acclaimed such that some of the designer shoes are outsold on the day of release.
The strategy is to promote a brand through IoT and internet advertising therefore increasing visibility especially in New Zealand. Its associated with other shoe companies but its brand is far much superior and in the limelight than its associated brand like Tagshoe and Hillocks. The brand is worth more than $ 200 million by conservative estimates. This is only in New Zealand so that means that it it worth much more globally (Menon & Edison,2015)..
With at least 5 years in the market, it has moved from the growth stage and it is now in the maturity age in the product lifecycle. This can be seen through its sales volume in New Zealand (Hakala, 2015).
The watching trends are the production of new and better looking shoe designs.
The brand generates buzz through its aggressive marketing in the internet and its launching of designer wears seen never before.
Yes we are pursuing new products and market segments especially with the launch of kids wear to be that will be later in the year. The market segment will also increase since the target market has also increased (Resnick & Lourenço, 2016).
Based on elasticity of demand and supply, pricing decisions are highly influenced. Although this is a designer shoe brand, the demand always affects the pricing.
Yes it can break even. The cost of production of a unit of shoe is very low and therefore a substantial margin to break even.
High price tags will lead to a reduced sales volume. Competing brands have a relatively high pricing strategies therefore good for Adlib as a cheaper brand.
Based on the market demand and supply, the best pricing strategy is to keep the prices changing and allowing discounts, coupons and loyalty perks therefore attracting more customers.
To have all segments looped in the brand as customers, prices will have to vary. Using different prices will attract the low and the high end of the market line.
As a fashion brand, we have high quality products with relatively high prices. However, compared to our competitors our prices are relatively cheap allowing maximum market penetration.
Adlib heavily relies on a close knit of distribution network for retailers to customers. It has a retail shop of over 50 shops all located in New Zealand. The company emphasizes on an intensive distribution chain to reach everybody (Hult & Ketchen, 2017)..
Use of channel distribution partners is highly effective and is good in getting to the customers.
With our target market being the youth, online marketing using the internet of things is effective enough. However, sales workforce is also important as a dependable strategy to show visibility of the brand. Sales workforce work on commission (Olson & Olson, 2018).
With a wide network of stores and affiliated retail chain, customers can access the shoe in over 50 places and more all across New Zealand. The shoe is highly accessible.
Our online presence is huge and the retail stores are positioned strategically and consistently to allow access.
The brand focuses on mass production therefore should have mass access.
Marketing goals is to make the brand more visible and accessible (Tomczak & Kuss, 2018)..
Buy the best shoe from New Zealand. Promote local industry, buy the best.
Testing can only be done through the sales levels or the market position of the brand. A highly effective marketing strategy will see an increase in sales and growth in brand market position.
The concept of marketing and promotion is using IoT to advertise especially in social platforms of the internet.
The intention is to make the brand more visible to the people.
The media outlets used in marketing are the conventional media and the social media through IoT.
Social media platforms are the most effective since the targeted group are mostly on social media platforms. This does not take away from the fact that all other advertisements platforms are also effective.
For visibility purposes, aggressive promotion takes the day. The company is also going after mass markets.
References
Ajith, P. (2015). Rural to International: Blueprint for Marketing. SCMS Journal of Indian Management, 12(2), 5.
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. Pearson Education.
Baker, M. J. (2014). Marketing strategy and management. Palgrave Macmillan.
Borah, A., Wang, X. S., & Ryoo, J. H. J. (2018). Understanding Influence of Marketing Thought on Practice: an Analysis of Business Journals Using Textual and Latent Dirichlet Allocation (LDA) Analysis. Customer Needs and Solutions, 1-16.
Chaffey, D., & Ellis-Chadwick, F. (2016). Digital marketing. Prentice Hall.
Hakala, U. (2015). Tracing for One Voice—The 5Cs of Communication in Place Branding. In Harnessing Place Branding through Cultural Entrepreneurship (pp. 229-242). Palgrave Macmillan, London.
Hult, G. T. M., & Ketchen, D. J. (2017). Disruptive marketing strategy. AMS Review, 7(1-2), 20-25.
Hussain, M., Latif, A., Rahman, M. A., & Chowdhury, A. A. (2015). Increasing the effectiveness of anti-smoking campaign by analyzing the behavior and attitudes of smoking persons & utilizing 4ps of marketing: a study on Sylhet City, Bangladesh. Researchers World, 6(1), 40.
Jaworski, B. J. (2018). Commentary: Advancing marketing strategy in the marketing discipline and beyond. Journal of Marketing Management, 34(1-2), 63-70.
Menon, A., Bharadwaj, S. G., Adidam, P. T., & Edison, S. W. (2015). Effective Marketing Strategy-Making: Antecedents and Consequences. In Proceedings of the 1997 Academy of Marketing Science (AMS) Annual Conference (pp. 224-224). Springer, Cham.
Olson, E. M., Slater, S. F., Hult, G. T. M., & Olson, K. M. (2018). The application of human resource management policies within the marketing organization: The impact on business and marketing strategy implementation. Industrial Marketing Management, 69, 62-73.
Resnick, S. M., Cheng, R., Simpson, M., & Lourenço, F. (2016). Marketing in SMEs: a “4Ps” self-branding model. International Journal of Entrepreneurial Behavior & Research, 22(1), 155-174.
Solomon, M. R., Dahl, D. W., White, K., Zaichkowsky, J. L., & Polegato, R. (2014). Consumer behavior: Buying, having, and being (Vol. 10). Pearson.
Tomczak, T., Reinecke, S., & Kuss, A. (2018). Introduction. In Strategic Marketing (pp. 1-18). Springer Gabler, Wiesbaden.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download