Role of Crowdfunding in Promotion of Amazfit X

This report discusses the role of crowdfunding in the promotion of Amazfit X, a smartwatch with unique features. It explores how crowdfunding can be used as a promotional tool for the brand and attract investors and customers. The report also covers the current pricing strategy and considerations for setting the current pricing, as well as the characteristics and recommendations of the brand. Additionally, it discusses theories of product adoption in the population, with a focus on the Rogers adoption model.

MARKETING
PRINCIPLES

Table of Contents
INTRODUCTION...........................................................................................................................1
QUESTION 1...................................................................................................................................1
Role of crowdfunding in promotion of Amazfit x:......................................................................1
QUESTION 2...................................................................................................................................2
Current pricing strategy and considerations in setting current pricing:.......................................2
QUESTION 3...................................................................................................................................3
Characteristics and recommendations of the brand:....................................................................3
QUESTION 4...................................................................................................................................4
Theories of product adoption in the population:..........................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Marketing is an activity, in which firm's explain its product and services so that firm can
attract people and to generate their needs that indicates customers should buy their goods or
services. This happens through proper planning, objectives, market research and analysis
customers needs. Marketing principles includes four p's of marketing mix that are product, price,
place and promotion (Bhebhe, Khumalo and Masuku, 2019). Brand which is selected for this
report is “ Huami Amazfit-X”. Huami ios the biggest wearable firm, deals with across the world
over 50 million units sold today. Amazfit X is a smartwatch with 92 degree display , button-free
design and titanium unibody. This report covers topic such as role of crowdfunding in the
promotion mix, crowdfunding is not only beneficial way to generate funds, characteristics and
recommendation about the brand. Apart from this it covers pricing strategy adopt by firm and
theories of product adoption.
QUESTION 1
Role of crowdfunding in promotion of Amazfit x:
Crowdfunding is a way of funding to a venture by raising small amount of funds from the
public, via the internet. It is type of crowdsourcing as a alternate for funding. Crowdfunding
supports entrepreneurs and small businesses to find fund for their smooth jump. Investments are
generally made through online platforms. It provides access to capital. Hedges the risk, easier
then traditional sources and it allows customers to approach company.
Crowdfunding is not only beneficial for raising fund but it can be a promotional tool for
the firm. It is a big promotion tool as the firm get the opportunity to compass the masses and let
them know about its working. Through online mode it helps people to reach out the brand and
know about it. Presence in online platform will make sure people to remind about brands
activeness (Aguirre, Hyman and Jones, 2020). If a brand present its business idea on online
mode, if it is really a great idea then it attract the investors to invest in their plan. Due to presence
on online mode it will help company to target the customers through their business plan. It attract
the customers to buy their products and make a good image of the brand. In this seller tries to
persuade the customers to purchase their goods or services through this funding base promotion
tool. The “Amazfit X” advertise its brand and sold smartwatch at a local Chinese crowdfunding
platform. The brand use crowdfunding source for raising fund and sale its product on that
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platform so that it attract the investors to invest in the brand as well as buy its products. Through
online mode brand presents its financial position and business ideas, so that public can go
through it and catch it as a big brand. Presence on online mode will remind people about brand
for buying its product. The Amazfit smartwatch available globally without any shipping fee. The
crowdfunding price of the brand is lowest it also attract the people to buy the smartwatch (Amiel
and Powers, 2019). On this platform firm shows brand features such as button-free watch, 90
degree angle and titanium unibody that helps people to know about the brand, brand specially
attract those people who are attached with sports and fitness.
Promotion mix is a set of promotion variables that helps firm to achieve its goal. It
comprises advertising, sales promotion, personal selling and direct marketing. Using right
mixture of promotion mix will ensures the brand will targeting customers and will achieve
success in short term and long term. Social media can be a good platform for crowdfunding
campaign if firm continuously do right promotions and try to do things in new way to bring more
value to people. Through promotion techniques it help firm for raising fund by investors and
customers. Crowdfunding is directly related to the promotion mix. Because in crowdfunding firm
attracts people to invest in their company and through promotion mix firm helps customers to
attract towards their products. With crowdfunding firm can promote its brand into the customers
mind and through promotion mix it can attract investors, by knowing their ideas and activities to
sale their product in the market and help them to know about firm's customer base.
QUESTION 2
Current pricing strategy and considerations in setting current pricing:
Pricing strategy is a tool used by organisations to established a price for their goods or
services. It is a way to finding the competitive price for goods or services that helps firm in profit
maximization. A business can use number of pricing strategies such as value based pricing, cost
plus pricing, competitive pricing, demand based pricing etc.
The firm “Amazfit” use premium pricing strategy to getting the value of the product and
encourage favourable perception among users. The reason behind it, humans tendency that
overpriced things are fancy and exceptional name or represent unique quality. This pricing
strategy shows uniqueness of the products. To use this pricing strategy firm considers some
factors that it has unique features with the brand and gives royal look. And basically it targeted
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upper middle class or upper class people. Apart from this premium pricing strategy setting the
value for the brand over other competitors.
Some strategic considerations:
 To create market status as a luxury good and feeling like superior good.
 Market dynamics like level of competition (Hultén, 2020).
 It explains the value to the customers and highlights that why it keeps worth extra.
 To earn more profit by creating great brand image.
 Cost of the product, firm can not ignore the cost of the product, when it comes to set its
selling price.
QUESTION 3
Characteristics and recommendations of the brand:
 Big curved AMOLED display, making customers wearable look distinguished:
The smartwatch contains feature a 2.07 inch AMOLED display. This type of display
contains integrated touch functions, it attracts or make adopted people towards the watch.
Amazfit display curved at 92 degree status to fit customers wrist and give them dashing and
wearable look. A friendly larger experience for apps can be organised to customers daily use
(Hunt, 2020). It has A 3 segment-motherboard which is connected by flexible circuit in order to
adapt the device curve.
 Fine glass and titanium unibody, and the button-free experience at the first touch:
This watch has a minimalistic design, it can use with fingertips pressure through button is
not needed. Users can complete their operations through sensing button. The smartwatch
Amazfit X is titanium metal unibody without any button (Aggarwal and Singh, 2019). This
feature of watch, makes everything is easy for customers, its features influence or attract the
customers to buy it. It contains 6-step bending process that easily covered consumers wrist. It
make the metals with glass together with purpose of weight reduction.
 Stress level and more precise monitoring for the health driven goal:
Amazfit X has a feature heart rate monitoring system, it helps users to reaching their
fitness goal and helps in health management. It supports 24/7 continuous heart rate measurement
system, it can also detect the stress level of user. It gives details about heart rate throughout the
day and will give update of stress levels such as relaxed, normal, medium and high. These
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features help persons to know about their health and fitness goal. These features of watch, shift
users towards this brand (Mednikov and et.al., 2019). It comes with PAI health technology for
the elite consumers. This feature can motivate people to move along with their personalized
( fitness or health) related goals. It gives scores to users, an easy to understand health effects of
the exercise. It has a feature that can measure oxygen level or situation of blood. It can track
users routine even they are travelling anywhere.
 7 days for a single charge and just fit all the ways you move:
Amazfit X provides good battery back up to its users, this innovative smartwatch has a
200 mah curved battery that can use for 7 days on a single charge. It provides sports modes that
support walking, pool swimming, indoor fitness, cycling etc. online promotion of products make
customer aware about the brand and these feature attract those people attached with their fitness
who are doing exercise, gyming, cycling on daily basis (Nunes, Estima and Manso, 2019). It is
water proof watch that allows customers to advance activities under water, keep track their
performance in the water. It looks like a bend but in real is a smartwatch.
Recommendation: from the above report it has been recommended that brand has high
prices for its product which is not affordable for everyone. This brand comes with smart feature
that can not use by anyone specially, people who are leaving at rural area. It has to change its
pricing strategy. It should develop other watches that is easy to use. It should give directions to
the user how to use it, what are the features it contains. This smartwatch has all systems but it
has not torch with it, it should add this feature on its watch.
QUESTION 4
Theories of product adoption in the population:
 Rogers adoption model: This theory refers how new idea and technology are
acknowledged by persons and cultures. This theory is applied on new idea and
technologies, given in the book which is name as “Diffusion of innovation” by Everett
Rogers. This theory was developed at Lowa state university, in 1957 (Quoquab,
Mohamed Sadom and Mohammad, 2020). This model highlights adoption of new idea in
five stages that are innovators, early adopters, early majority, late majority and leggards.
In this theory rogers said that innovation offers advantage, compatibility and
observability will be adopted faster then other innovative ways.
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 Theory of reasoned action: This theory is based on three general constructs that are
behavioural intention, attitude and subjective norms. Behavioural intention can be
depends on persons attitude and subjective norms. Intention of the people is more likely
to their actions take for specific manner. Basically, this theory indicates relation between
attitude and behaviour with human's action. The theory was developed in 1975 by
Fishbein & Ajzen.
 The social cognitive theory: This theory is based on self efficiency for judgement of
persons ability to use a technology. According to this theory behaviour of the customers
is based on the expectations of outcome related to personal. In this theory, there are two
factors that influence consumers behaviour Sample (Sample, Hagtvedt and Brasel, 2020).
One is positive contribution that means consumer is satisfied with the product and
another is negative contribution that indicates anxious behaviour of the user towards the
product. This theory is widely used in adoption models.
From the above theories, for “Amazfit X” the Rogers adoption model is applicable most.
Because this theory deals with innovation, people's behaviour to adopt new products or existing
products in new way. This theory is offering users adoption for new ideas and technology and
“Amazfit X” comes with a smartwatch that has button-free feature, 90 degree angel on its
display, long time battery backup and without button only fingertips is needed to operate
activities. The watch is come up with new idea and technology that makes things easy for users.
CONCLUSION
From the above report it has been concluded that marketing is an activity, in which firm's
explain its product and services so that firm can attract people and to generate their needs that
indicates customers should buy their goods or services. crowdfunding firm attracts people to
invest in their company and through promotion mix firm helps customers to attract towards their
products. Pricing strategies are important to maximize firm's profit. Marketing helps firm to
creates their brand value and generate customers needs. It is continually change in information of
the product, the blow up of technology, and the aggression of competition and innovation on
product.
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REFERENCES
Books and Journals:
Aggarwal, V. and Singh, V. K., 2019. Cause-related marketing and start-ups: moderating role of
cause involvement. Journal of Global Responsibility.
Aguirre, G. C., Hyman, M. R. and Jones, J. L., 2020. DEDICATED MARKETING ETHICS
COURSE: DESIGN AND TEST. Marketing Education Review. 30(3). pp. 177-194.
Amiel, P. and Powers, M., 2019. A Trojan Horse for marketing? Solutions journalism in the
French regional press. European Journal of Communication. 34(3). pp. 233-247.
Bhebhe, S., Khumalo, N. B. and Masuku, M., 2019. “Worthiness” of Marketing Public Archives.
New Review of Information Networking. 24(2). pp. 105-120.
Hultén, B., 2020. Sensory Marketing: An Introduction. SAGE Publications Limited.
Hunt, S. D., 2020. Indigenous theory development in marketing: the foundational premises
approach. AMS Review. pp.1-10.
Mednikov, M.D. and et.al., 2019. Improvement of managing marketing activity of small
consulting firms.
Nunes, C. S., Estima, A. and Manso, J., 2019. Business within Ethical Marketing Education: The
upcoming Challenges. In Evaluating the Gaps and Intersections between Marketing
Education and the Marketing Profession (pp. 62-83). IGI Global.
Quoquab, F., Mohamed Sadom, N. Z. and Mohammad, J., 2020. Sustainable Marketing. The
Palgrave Handbook of Corporate Social Responsibility. pp. 1-24.
Sample, K. L., Hagtvedt, H. and Brasel, S. A., 2020. Components of visual perception in
marketing contexts: A conceptual framework and review. Journal of the Academy of
Marketing Science. 48(3). pp .405-421.
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