Marketing Fundamentals: STP Strategy, Marketing Mix and Objectives

This report highlights the ways in which company uses STP and marketing mix strategy so as to conduct their activities. It also showcases the objectives that company wants to achieve as well as the action plan for achieving it.

MARKETING
FUNDAMENTALS
Contents

1
INTRODUCTION.................................................................................................................................1
Marketing Objectives........................................................................................................................1
STP strategy of the firm.....................................................................................................................2
Marketing Mix...................................................................................................................................4
Action program for first six months...................................................................................................4
Conclusion.............................................................................................................................................5
References.............................................................................................................................................6

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INTRODUCTION
Marketing is essential in the modern day business and so are the objectives that aim to
be achieved through it (Palmer, 2012). It is essential for the firms to make segments of the
market so that they can easy target their potential consumers (Fletcher & Crawford, 2013). It
is also necessary that companies effectively utilises their marketing mix so as to have edge
over the other competitors. There must be an action plan in this regard so as to achieve the
planned marketing strategies. This report highlights the ways in which company uses STP
and marketing mix strategy so as to conduct their activities. It also showcases the objectives
that company wants to achieve as well as the action plan for achieving it.
Marketing Objectives
It is necessary that FitOn watches make a marketing objective before constructing the
marketing plan. This helps to showcase the path in which the company will conduct its
marketing activities so as to increase their sale (Barile, Pels, Polese & Saviano, 2012). Since
this company has aimed to enter into the market of Australia hence a comprehensive
marketing plan needs to be made by senior management so as to ensure that awareness about
their product can get enhanced. Three marketing strategy of the cited firm which they can
achieve in the first six months of product launch is as follows:
 Product awareness: One of the primary objectives of the whole marketing procedure
is to create awareness regarding the new product of the firm among the potential
consumers. It is also considered to be the degree of knowledge that consumers have
regarding the products (Spacey, 2017). There are certain things that must be clear to
the consumers namely information related to the functions, quality, compatibility,
price, benefits and usability. It largely depends on the Brand image of the firm.
 Customer retention and satisfaction: Since FitOn watch wants to enter into the market
of Australia and hence customer retention is very important in first six months so that
they can get converted into the base consumers of the firm. But it is highly important
that a company markets its products in way that the consumers get satisfied about the
product. Highly satisfied consumers can easily be retained by the company (Akroush,
2012). For this it is necessary that company delivers what it promises that too within

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the given time frame. In order to achieve higher consumer satisfaction it is essential
that companies resolves the queries related to the product.
 Brand management: It is necessary that after the launch of the product company
makes an analysis and planning for concluding the ways in which brand is perceived
within the market. One of the essential tasks in Brand management is to make good
relationship with the target audience. It helps in collecting the feed backs which is
necessary for making effective changes in both market as well as the product itself.
Tangible elements in Brand management are the products itself like its looks,
packaging and price (Najev Čačija, 2013). Brand management is one of the essential
aspects in the marketing as it also contributes in the image of the firm.
All these three marketing objectives need to be properly monitored so as to achieve success
through the marketing activities. These objectives can be easily achieved in first six months
of product launch.
STP strategy of the firm
It is essential that a company has its strategy for reaching out to its consumers.
Segmentation, targeting and positioning is an essential strategy that helps in shaping
marketing activities according to the potential consumers. It is a larger framework that
simplifies and concludes the process of marketing.
Market segmentation: It is a process through which group of buyers within a market are
divided and profiled according to the range of variables that determines the characteristics
and tendencies. In segmentation there is identification, selection and application of bases that
are used in that segment and development of profiles. There are certain variables according to
which these segments are made namely geographic, demographic, physiographic and
behavioural (Gbadamosi, 2013). With the use of segmentation, company can organise its
marketing procedures so as to have competitive edge over the others. It is always profitable to
serve smaller markets. There are two segmenting approach through which segmentation can
be done namely discovery and analytic approach. Since FitOn watches do not have higher
consumer base in the Australian market hence it is better for the company to take use of the
discovery approach. It is based around the observation about the buying behaviour of the
market and revolves around primary research. There are few steps in market segmentation:
 Defining target market, scope and trends of segmentation.

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 Market and perceptual mapping helps in determining specific market which should be
analysed.
 Constructing the model of the market (Brunswick, 2014).
 Identifying the segment
 Finally segmenting is done.
Segmentation of the target market for the cited company is as follows:
Types of segment Segmentation criteria Targeted segment
Geographical Region Australia
Density Urban and rural
Demographic Age 25-60
Gender Male and female
Life cycle stage Bachelors and married
Income Low and middle
Occupation Employees, students and
professionals
Behavioural Degree of loyalty Switchers
Benefit sought Cost benefit
Personality Easy going and careless
Psychographic Social class Lower, middle and upper
class
Targeting: After the process of segmentation, targeting helps in planning the advertisement
that will be used for attracting the potential consumers (Mindtools, 2016). This can be
effectively utilised by FitOn Watches to have more web focused marketing. Messages can be
sent to the potential consumers with the use of various tools like Social media, mobile and
emails. There are three different market coverage choices to consider namely differentiated,
undifferentiated and niche marketing. Since the FitOn watches are for specific consumers
hence niche marketing can be used.
Positioning: It is the final stage in which focus of the company is in the way the customers
ultimately views firm’s services and products especially in comparison to that of the
competitor’s product (Chaffey & Ellis-Chadwick, 2016). It is highly essential for making
competitive edge over the market which is the final objective of the overall marketing

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procedure. There are three types of positioning namely symbolic, functional and experiential.
Here in this case it will be beneficial that FitOn takes use of Functional positioning. Since
overall objective of the positioning is to provide better value than that of competitor’s
product.
Marketing Mix
 Pricing: It is one of the most essential strategies that is used by the companies and
plays essential role in attracting larger number of consumers towards their product
(Chaffey, Smith & Smith, 2013). Since the segmented section of the product is from
every section of the society and hence it is essential that prices selected for this is on
the lower side as compared to that of competitor’s product. Company also makes use
of psychological pricing and hence prices are not in whole numbers. Since this
product is first of its kinds hence there is less competition in the market in terms of its
similarity with other product. This can help company to have price range of its own
choice.
 Promotion: It is essential that company takes use of effective promotional campaign
so as to increase product awareness of World’s first Blood oxygen saturation Smart
watch. Company can utilise both traditional as well as digital marketing strategies for
this campaign. But it is essential that company utilise digital mediums for conducting
marketing activities (Baines, Fill & Page, 2013). This is because of the reason that the
larger part of the segmented market spends lot of their time on such technological
platforms. This also has a cost advantage i.e. it helps company in reaching to the
larger numbers of consumers at lower cost. The social media marketing can be highly
beneficial in this regards. This company also shares coupons with the watches so as to
attract customers towards the products.
Action program for first six months
It is crucial that cited firm constructs effective action program so as to achieve its
marketing objective stated above in this report. This program is for the first six months of
product launch.
Actions Starting date End Date Responsible
Person
Related
Department
Setting new
objectives and
1/3/2018 - Top level
managers and
Top
management

6
mission
statement
Board members
Discussion about
the marketing
objectives and
new mission
1/4/2018 - Management
and Board of
Directors
Senior level
management
Development of
new ideas and
opinions for
making
decisions
4/5/2018 - Innovative
individuals of
the FitOn.
All associated
departments
Choosing best
alternative and
implementation
of best ideas
15/6/2018 - Officials of
marketing
Marketing
department
Implementatio
n of new
strategies and
marketing plan
5/8/2018 1/9/2018 Advertising
managers and
executives
related to
marketing.
Promotion and
Marketing
department
Conclusion
From the above based report it can be concluded that marketing segmentation,
targeting and positioning can help company to have specific marketing plan. This helps
company in having specific marketing strategies that assists in having higher product sale.
Brand management, product awareness, customer retention and satisfaction are some of the
objectives that are developed by the cited firms for next six months. It is essential that action
plan is developed so as to achieve all the stated objectives on time. Cited firm has to use
promotion and pricing strategy so as to attract larger section of the Australian market towards
their new product.

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References
Akroush, M. N. (2012). An empirical model of marketing strategy and shareholder value: A
value-based marketing perspective. Competitiveness Review: An International
Business Journal, 22(1), 48-89.
Baines, P., Fill, C., & Page, K. (2013). Essentials of marketing. Oxford University Press.
Barile, S., Pels, J., Polese, F., & Saviano, M. (2012). An introduction to the viable systems
approach and its contribution to marketing.
Brunswick, G. J. (2014). A chronology of the definition of marketing. Journal of Business &
Economics Research (Online), 12(2), 105.
Chaffey, D., & Ellis-Chadwick, F. (2016). Digital marketing. Prentice Hall.
Chaffey, D., Smith, P. R., & Smith, P. R. (2013). eMarketing eXcellence: Planning and
optimizing your digital marketing. Routledge.
Fletcher, R., & Crawford, H. (2013). International marketing: an Asia-Pacific perspective.
Pearson Higher Education AU.
Gbadamosi, A. (2013). Principles of marketing: A value-based approach. Palgrave
Macmillan.
Mindtools, 2016. [Online]. Available at: https://www.mindtools.com/pages/article/stp-
model.htm .[Accessed on: 3rd February 2018].
Najev Čačija, L. (2013). Fundraising in the context of nonprofit strategic marketing: Toward
a conceptual model. Management: journal of contemporary management
issues, 18(1), 59-78.
Palmer, A. (2012). Introduction to marketing: theory and practice. Oxford University Press.
Spacey, J. 2017. 7 Types of product awareness. [Online]. Available at:
https://simplicable.com/new/product-awareness.[Accessed on: 3rd February 2018].