Understanding the impact of marketing strategies on business operations

To compete with rival businesses, businesses must develop effective marketing tactics. Together, we examine and assess how three marketing techniques impact the company's business plan.

Decision 1 in Strategic Marketing: Upgrade Product Features

Businesses must develop their product models if they want to keep their existing clients. Maintaining the number of existing clients is a benefit that guarantees the steady growth of the company. To do this, it is important to continually show the customer how challenging it is to improve the qualities of the products. Customers will therefore always feel the urge to purchase the company's newest offerings.

Companies of automobiles or smartphones frequently use this tactic. For instance, we all know that every year, Samsung and Apple offer newer models of their smartphones with more alluring features. Users of these two companies' smartphone apps have previously been given recommendations for updating their operating systems in conjunction with that move. However, after some time has passed since you upgraded to a new operating system, your phone will start to slow down, and you will quickly realize that Samsung or Apple is advertising a newer smartphone model on your old phone.  

The producer has made two parallel moves, which are to reduce the appeal of the old product and polish the features of the new product to create a contrast that makes consumers want the new product, as is evident from the fact mentioned above. Do you want to purchase new things?

Advantage: 

- Keep current clients and have a compelling tale to draw in new ones - Stand out from the competition and become more competitive.

Cons

-The outdated model has flaws and is challenging to recoup capital.

-Rising R&D expenses

-Unexpected product life cycle reductions are probable.

-If a product's attributes are duplicated by competitors, the company could lose business.

Decision 2 in Strategic Marketing: Selling below the price of a competitor

In marketing strategy, price is regarded as one of the fundamental factors used to attract potential consumers. This is an effective method for evaluating the market impact of a product.

The Chinese smartphone manufacturer Oppo was founded after Samsung and Apple. In terms of phone configuration, Oppo's offerings are comparable to those of Samsung and Apple. However, Oppo cannot compete with Samsung or the iPhone. In order to gain a competitive advantage, Oppo has adopted a pricing strategy that is less expensive than that of its two rivals. And evidence indicates that Oppo has evolved in response to competition from Samsung and Apple's iPhone.

Advantage: 

-Attract the attention of customers and readily differentiate your products from those of the competition. 

-Easy to expand retail distribution channel due to secondary distributors' fast profit 

-Solve stock swiftly, increase revenue turnover, and expand the market without difficulty.

Cons

-Reduce profits, easy to lose balance of revenue and expenditure 

-Can trigger a discount race and potentially lose the price race if competitors have a lot of capital and an overwhelming market share 

-High risk of having to constantly ensure a sudden increase in output while the production apparatus fails to meet the schedule 

It is difficult to manage the risk of product quality if the market has a large demand to increase output 

-Brand positioning may be lowered

Decision 3 in Strategic Marketing:  Establish a utilities ecosystem

Enterprises can construct an ecosystem of products and services by developing these products and services themselves or by collaborating with third parties. Apple, for instance, designed smartphones with touch displays, thereby establishing a new ecosystem for mobile device platforms. Apple has created a diverse ecosystem of products, including smartphones, laptop, tablets, and audio players. 

Despite the fact that the majority of Apple's hardware devices are manufactured by other companies, Apple has created numerous products to satisfy user needs and led the market to create Apple's own ecosystem.

Advantage: 

- Educating the market and developing new consumer demands in the direction of the business

Create narratives to entice prospective clients to join the convenience ecosystem.

- Actively create competitive advantages. In the case of Apple, the creation of the iOS ecosystem has created a market of people who prefer to use only the iOS operating system. This has created Apple's competitive advantage over Nokia, Samsung, and Sony-Microsoft.

- Generate a substantial revenue stream as a result of the company's optimization of all resources and proactive rule creation.

Cons

- Requires innovative creativity, effective management, and a strong team

- Vulnerability and chain failure if one of the ecosystem's nodes is weakened or attacked by an adversary.

- Need to be intimately familiar with market demand

Impact on Marketing at a lower organizational level:

In the majority of businesses, low-level marketing activities are directly related to business objectives. The introduction of corporate-level marketing strategies can disrupt the entire business plan of a company during a specific time period related to the product being marketed.

This requires marketing strategies that are closely aligned with the business plan, with clearly defined objectives, time frame, and geographic scope.

Adapting TSWool products with wool apparel staples to the climate of the region TSWool is targeting requires a specific strategy. In addition, it is necessary to explicitly define when it is appropriate to wear woolen clothing. Based on these parameters, the marketing strategy will determine when TSWool will initiate a lower-level marketing campaign to distribute the product as the weather begins to cool. Lower-level marketing campaigns include introducing a product at the point of sale, distributing flyers, and running advertisements on media channels to attract consumers' attention.