Marketing activity is achieved at the maximum orientation of customers by using contemporary developments in information and technology. The efficiency of marketing management incorporates a total valuation of quantity and quality of the promotion, distribution and the positioning of goods and services, and the ideas within the society. Marketing efficiency is also achieved with the budget and mission of the marketing turnover of each party. The poor contemporary accessibility of intangible and tangible resources of marketing management efficiency of any particular organization or company does not only depend on the improvement of the performance of total costs and the cost of production but also on finding hidden reserves. Within the contemporary condition, it is difficult to achieve positive outcomes of marketing activities without the assessment of public opinion and societal participation in social actions.
This essay discusses marketing relative to creating value for customers, the roles played by customers on the strategic planning of a company, SWOT analysis, and competitive analysis. This essay further delves customer empowerment, customer satisfaction, customer relationship management, and customer privacy. The product selected for this assignment is Apple Watch.
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Part 1: Strategic Marketing
Lehtinen (2017) refers to strategic marketing as the type of marketing which aims to differentiate and bring value to customers in a practical way. It is the manner in which a particular firm distinguishes itself from other competing organizations by capitalizing on the current and potential strengths to facilitate the consistent provision of better customer value as compared to competitors. Strategic marketing focuses on how and when to enter a specific market, the types of markets to compete in and how to utilize the competitive advantages of a particular company. Strategic marketing puts more focus on the contemporary strengths of a particular company and the potential strengths that the company is likely to achieve in the future. Strategic marketing is also concerned with providing the customers with better value than the competitors of a particular company by establishing the present and planning for the future of the company.
Creating Value for Customers
Apple Watch consists of a line of smartwatches that are designed, advanced and promoted by Apple Inc. Apple Watch integrates health-oriented capabilities and fitness tracking with iOS and other products and services from Apple Company. The watch relies on an iPhone which is wirelessly connected to perform a variety of its default purposes such as texting and calling. Apple Watch is used by a wide range of customers from all around the world to record their heart rate and acquire heart reading.
Additionally, Apple Watch is used by a wide variety of customers for texting and calling. According to Vuorio (2017), the most straightforward basis used by companies to create customer value is through the use of products and services. Customer value justifies the costs that are charged by a particular company on a given product sold to customers. Apple Inc. creates value through the provision Apple Watch which is a high-quality product.
Role of the Customer in the Company's Strategic Plan
Customers of Apple Inc. plays a critical role in the company’s strategic marketing plan. The best marketing often begins with the customer and commitment to the customer starts with including the customer to the mission statement of the particular company. The mission statement for Apple Inc. is, "Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App store, and is defining the future of mobile media and computing devices with iPad” (Farfan, 2017). The mission statement’s effectiveness in demonstrating the commitment of the company in having a customer focus is founded on its commitment to defining the future of computing devices and mobile media to facilitate the satisfaction of customer needs. The mission statement should, however, be modified to capture the company's commitment to providing more advanced devices to customers such as Apple Watch series. The mission statement is supported by evidence of customer focus founded on the company's commitment to enhancing the mobile media and other computing devices which satisfy customer needs.
SWOT Analysis
Tuncay (2015) state that SWOT analysis is among the most widely used form of analysis. It incorporates the negative and positive factors within the internal and external environments of a given business or organization. SWOT analysis involves the identification of the strengths, weaknesses, the opportunities, and strengths that are available within a particular market. The internal review of Apple Inc. includes the company's culture, resources, expertise and the available unique qualities present in the market. On the other hand, the external analytical factors include the operational environment, the ecosystem, the market and the third parties involved.
| SWOT | Elements |
| Strengths | Technological skills, production quality, distribution channels, customer loyalty/relationships, and management |
| Weaknesses | Poor access to distribution, and low customer retention |
| Opportunities | Changing customer tastes and preferences, advancement in technology, lower personal taxes, new channels of distribution, changes in government policies, and change in population age |
| Threat | Changing customer base, tax increases, an unfavorable shift in government policies, technological advances, an adverse change in population age, and closing of the geographical market. |
Fig1: SWOT Analysis of Apple Watch
Competitive Analysis
The main competitors of Apple Watch include Fitbit Iconic 3 and Samsung Gear S3. The presence of competition between the three products leaves consumers to make choices on which particular product brand to purchase. Consumers of smartwatches often make their purchasing decisions based on the product price, warranty, and convenience.
| Chart | Apple Watch | Fitbit Iconic 3 | Samsung Gear S3 |
| Product price | High | Low | Medium |
| Warranty | High | Medium | Medium |
| Convenience | High | Low | Medium |
| Sum | 15 | 5 | 9 |
Based on the sum of the sum of the columns, Apple Watch ranked highest. Apple Watch also ranked highest based on each of the three criteria boxes. These results show that Apple Watch still dominates the competitive environment due to its competitive advantage against Fitbit Iconic 3 and Samsung Gear S3. Apple Watch is the leader based on the results above, Samsung Gear S3 is the follower while Fitbit Iconic 3 is the challenger. If these categories apply, then Apple Watch is more excellent as compared to the other Samsung Gear S3 and Fitbit Iconic 3.
Part 2: Customer Satisfaction, Loyalty, Management and Empowerment
The Most Valuable Customer (MVC) of a particular product is not necessarily an individual who purchases a given product on a regular basis but rather a disheartened and a disenchanted individual who chooses a specific product and concludes that the support center of the product cannot solve his or her problem. The evidence of the MVC of Apple Watch is determined by due to the ability of the customer to inform the company whenever it is failing hence enabling the company to improve on its product and its ability to operate within the competitive market. MVCs are often treated differently and better than other customers, and in this regard, an MVC represents a significant percentage of the revenue of a particular company. Companies regularly communicate with their MVC on a regular basis and offer special deals to them. It is vital to calculate the lifetime value of a most valuable customer, often obtained by using the formula: LTV= (Price-cost to produce Apple Watch) * number of annual purchases* number of years expected to purchase-initial acquisition cost.
LTV= ($500-$83.70) * 24*10-$349
= (416.30) *240-$349
=$99912-$349
LTV= $99563
Customer Empowerment
Silverang (2015) describes customer empowerment as the ability to provide customers with tools, options, and resources to promote decision-making and allow customers to tailor a brand or a product experience to suit their needs and desires. Apple Watch empowers its customers by providing services such as displaying of favorite photos from iPhone of Mac, snapping photos or setting timers on camera phones. It is also used as a viewfinder of a remote for the camera of a customer's phone. A customer plays a vital part in marketing the product through referrals and creation of awareness within the society. Most customers use feedback vehicles such as company website, social media platforms, and emails. Social media such as Twitter, Facebook, Instagram, and Telegram are the most widely used feedback vehicles which create buzz marketing. This is because most individuals use these social media accounts to interact with their friends.
Customer Satisfaction
Mukami (2017) refers to customer satisfaction as a factor that helps to generate confidence in a particular company that offers specific products or services. It is the feeling or the attitude of a given customer towards a particular product or service after upon its consumption. Apple Watch through Apple Inc. allows customers to communicate and express their dissatisfaction through the use of the company’s website and contact centers. Customers are also allowed to communicate their dissatisfaction through the use of the company’s social media pages such as Twitter, Facebook, and email address. Apple Inc. is developing more features and apps to help satisfy its customers and acquire a competitive advantage over its competitors.
Customer Relationship Management
Mukami (2017) defines Customer Relationship Management as a strategy of management that helps to unite marketing and information technology. CRM has attracted more expanded attention to the development of a business culture that is customer-centered and dedicated to win and keep customers through the creation and delivery of value as compared to other competitors. Apple Inc. produces high-quality Apple Watches and provides a warranty to consumers as a strategy for the management of customer relationship. Although the MVCs are treated much better, all the other customers are treated the same way. They are all eligible to warranty and high-quality watches. All customers should be treated the same since they contribute to the success of the company.
Customer Privacy
According to Martin and Murphy (2017), the privacy of consumers is a fundamental factor that should be considered by any given business. Apply Inc. values the privacy of the customers using its Apple Watch and does not disclose any vital information about the customers to third parties. Robust security features have been encrypted to the product only to allow access to the rightful owner of the device and protect sensitive information from leaking to the public, often through hacking. The company does enough to ensure that information about the client, for example, photos, medical data, and contacts are not leaked.
Conclusively, effective marketing is acquired through the maximum orientation of clients and consumers through the use of contemporary development in technology. Various companies strive to satisfy the needs of their consumers through creating value for customers, customers’ satisfaction, customer relationship management and the observation of customer privacy.
References
Farfan, B. (2017). Learn About Apple's Mission Statement? The Balance Small Business. Retrieved from https://www.thebalancesmb.com/apple-mission-statement-4068547
Lehtinen, N. (2017). Strategic Marketing Analysis: Case : DNA Plc.
Martin, K. D., & Murphy, P. E. (2017). The role of data privacy in marketing. Journal of the Academy of Marketing Science, 45 (2), 135-155.
Mukami, N. A. (2017). Customer Relationship Management Strategies and Customer Satisfaction: Case of Chase Bank (Kenya) Limited-In Receivership (Doctoral dissertation, United States International University-Africa).
Silverang, T. (2015). The impacts of customer empowerment on new product and firm performance: performance effects and contextual considerations of involving customers in new product development . Retrieved from https://pdfs.semanticscholar.org/8b9e/c218539a610665bcc9c50a7a8c0549212098.pdf
Tuncay, M. (2015). SWOT Analysis in Strategic Management and a Sample Application in Public . Retrieved from https://mpra.ub.uni-muenchen.de/67213/
Vuorio, E. (2017). Creating customer value through differentiation of the features of the 4P . Retrieved from https://helda.helsinki.fi/bitstream/handle/10138/193719/Emma%20Vuorio_Gradu.pdf
