1. Introduction to Marketing 1
Introduction to Marketing
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2. Introduction to Marketing 2
Executive Summary
This paper entails a marketing plan for the Amabrush product. The Indiegogo website
advertises the product with an aim of raising funds for the release of the product. The paper has
two parts to ensure easy comprehending of the market plan for the Amabrush product.
The first part of the paper contains three sub-sectors. It outlines a detailed research
conducted by marketers in analyzing both the Macro environment and microenvironment
situation in the environment. The microenvironment analysis entails the factors that affect the
company directly. The factors include employees, suppliers, and customers. The macro-
environment analysis comprises of various factors that indirectly affect the company. They
include political, economic, social, Technological and Legal (PESTL) aspects. The second sub-
sector illustrates challenges that the product faces relating to those factors as well as the problem
from the situation analysis. The last subsector of this part comprises of the marketing objectives
of the company. It illustrates how the goals are (SMART) that is Specific, Measurable,
Attainable, Realist and Timely. It outlines a table plan that outlines the customer profile as well
as the target market for Amabrush.
The second part outlines the marketing mix tactics as well as the conclusion. The first
sub-sector entails the marketing mix tactics. It provides for the four major marketing tactics
termed as the four P’s. They include product, price, promotion and place tactics. The last
subsector includes the conclusion. It covers the key elements in the paper, the objective of the
paper, and a solution of the identified problem.
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Introduction to Marketing
Part 1
Introduction
Marketing is a key component in the success of every small business launching a new
product. Unlike a business plan, a marketing plan focuses on wining and keeping customers to
ensure the sale of a new product. Small businesses lack adequate funds required to drive the
production and supply chain mechanisms of a new product. As a result, the business has to
engage in the raising of funds through various channels such as websites to facilitate various
operations. This is the case for Indiegogo, a key start website with the world’s first automatic
toothbrush referred to as Amabrush. However, there is a significant need to have a vats
proficiency of their competitors as well as consumers. Thus, the creation of a detailed framework
on what the company intends to achieve and how it plans to do it ensures the effective marketing
of the product. This paper seeks to provide a market plan for the world’s first automatic
toothbrush and provide a critique of various issues. Despite the increased perception that a
marketing plan fails to guarantee increased sales of a new product, recent research depicts that a
marketing plan enables a company to attain its marketing goals ensuring increased sales of a new
product.
Situation Analysis
The marketing environment for Amabrush represents overwhelming opportunities.
However, it experiences some challenges that the firm’s management believes to have solutions.
The conduct of a SWOT analysis by marketers enables the identification of strengths,
weaknesses, opportunities, and threats in the company (Platt, 200). Ideally, the SWOT analysis
provides a thumbnail sketch that seeks to indicate and illustrate the market position of Amabrush.
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Although Amabrush faces funding challenges, which fall under one of its weaknesses in the
SWOT analysis, the anticipated demand for its products provides the motivation needed in
ensuring the success of the world’s first automatic toothbrush.
In three years, Amabrush has built some impressive strengths as it anticipates for better
opportunities. The Amabrush core team led by its co-founder Marvin Musialek, as well as the
increased number of loyal customers who highly anticipate on the shipment of the product in the
markets puts the Amabrush product at a good position to grow (Indiegogo, 2018). Amabrush
Company considers the expansion of its product line as one of its stretch goals. Ideally, this
involves developing a smaller version of the Amabrush toothbrush for children above the age of
six years with permanent teeth (Indiegogo, 2018). However, the company has to guard its
product from marketing myopia. According to Kotler (1984), it refers to failure in the recognition
of the scope of the company’s business operations as well as quality slippages. Moreover, even
as the company seeks to raise funds to finalize the production of its new product, the company’s
management has to initiate competitive strategies to guard the product against competitors who
might duplicate and sell the Amabrush product (Sharp, 2012). To understand the market
environment in which Amabrush is entering, an external situation analysis is provided.
External Situation Analysis
This section of the situation analysis explores the macro-environment that consists of the
political, economic, sociocultural, technological, and legal (PESTLE) issues in the market in
which Amabrush is entering. According to Team (2013), the analyzing of PESTLE factors is
critical when entering a market. Amabrush needs to analyze factors such as government
regulations regarding the use of an electronic toothbrush. Ideally, the automatic toothbrush is
being termed as a medical device. According to FDA.gov (2018), the usage of the product has to
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pertain approval from various government institutions such as the Food and Drug Administration
(FDA) in America or the US. Thus, the product has to undergo various tests and sampling by
government institutions to verify its usage as a medical device (FDA.gov 2018).
Economic factors significant to the sale of Amabrush include economic aspects such as
Gross Domestic Product, the state of inflation as well as rates of exchange. Amabrush aims for
both national and international buyers through Indiegogo. For this reason, the rates of exchange
are substantially important due to the varying global currencies that will necessitate the shipment
of the product to the various countries. The company will have to consider the rates at which
both the customers and the company pay while transacting using different currencies. Similarly,
the state of inflation is a critical issue in the marketing of Amabrush. The state of inflation might
influence the dynamic prices of the product in different geographical areas with different
currencies (Lusch & Laczniak, 1989). Thus, the price charges of the product must correlate with
the state of inflation to ensure effective and consistent selling of the product in future.
The sociocultural aspect relates to human behavior in various circumstances. Amabrush
has to consider how the organization influences human behavior in the presentation of its
agendas through the media. Thus, it should consider factors of morality and social preservation
while using the media for representation and advertisement purposes. Lusch & Laczniak (1989)
argue that, social factors such as family and religion have a significant effect on the success or
failure of an organization. For this reason, Amabrush has to be vigilant and careful to avoid
offending any segment of the public that has an influence on the success of the product. Hiring a
diverse workforce creates a positive perception of the various segment of the public. Moreover, it
heightens the likelihood of the deciding factors that favor the purchase of a product by various
consumers in the society.
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Technological issues contribute to the competitive edge of an organization. However, the
misuses of technology on areas of product innovation may lead to low-quality products.
Amabrush needs to enhance and advance with technology to ensure the competitive edge of the
product. Thus, the product’s design and quality become better and more effective according to
the needs and expectations of consumers. If Amabrush fails to advance with the dynamic
technology required to create a competitive edge of the product, it may fall behind the market
since customers may opt for better and more advanced products (Lusch & Laczniak, 1989).
However, it is noticeable that Amabrush is currently embracing differentiation and
communicating it with the use of technological websites such as Indiegogo. Differentiation is an
approach adopted by a business to develop a unique product and offer distinctive services as
compared to those offered by competitors (Banker, Marshruwala & Tripathy, 2014). Amabrush
intends to articulate the full hypothesis of differentiation by not only producing the world’s first
automatic toothbrush but also providing an exclusive service of 45% off the Amabrush unit with
an expected retail price of 214 Euros (Indiegogo, 2018).
Internal Situation Analysis
The internal situation analysis in this plan relies on a microenvironment analysis. Ideally,
the microenvironment factors include those aspects that form part of the business and have a
direct impact on the business. Such factors include customers, employees, media, suppliers,
competitors, as well as shareholders (Armstrong et al. 2015). A company should conduct a full
analysis of its microenvironment in relation to these factors before deciding on corporate
business strategies. Amabrush should ensure that its marketing strategies are customer oriented
specifically to attract and retain customers who may act as investors in the raising of the required
funds by the company. Notably, Amabrush customers are enthusiastic about the product. For this
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reason, the company should dedicate its resources to ensuring that the Amabrush product meets
the need and wants of customers.
Employees form a significant part of an organization. However, employing staff who lack
the required skills and experience in the design of a new product affects the quality of the
product. In 2015, Marvin Musialek developed the first Amabrush prototype (Indiegogo, 2018).
The founder collaborated with Alexander Stummer, a sophisticated biomedical engineer, and
Martin Forstenpointner, a talented mechanical engineer to bring the prototype project into reality.
Notably, the core team comprises of qualified employees who possess the required knowledge in
ensuring the production of a quality product. Although the development of a smaller version of
the Amabrush toothbrush for children above six years requires funding, the quality version of the
product requires skilled, experienced, and talented employees such as the core team at
Amabrush.
The Amabrush toothbrush consists of various parts. The parts include a hand piece,
mouthpiece, toothpaste capsules, as well as a wireless charging station (Indiegogo, 2018). The
production of these parts requires quality materials sourced from various suppliers. Thus, due to
the complexity of some of the parts such as the mouthpiece built out of single materials and the
sophisticated arranged bristles, Amabrush has to source its raw materials from quality suppliers.
For instance, Amabrush sources the toothpaste used in the toothpaste capsules from companies
with a history of over 100 years. According to (FDA.gov, 2018), the suppliers and manufacturers
must adhere to the quality norm DIN EN ISO 13485 as well as the requirements provided under
the IFS Household and Personal Care Products.
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SWOT Analysis
A company that undertakes a SWOT analysis is likely to be successful. There is a need
for Amabrush to identify its strengths, weaknesses, opportunities, and threats Platt, 2002). Firstly,
the major strength of Amabrush relates to the fact that this product is the first of its kind hence
referred to as the world’s first automatic toothbrush. Ideally, Amabrush is at a great advantage
since it attracts pubic interest and curiosity on the need to have the product by most consumers
hence the high demand. For this reason, Amabrush has gathered many investors among them
being consumers of the product who have enabled the company to raise 4,652,207 Euros
(Indiegogo, 2018). Its kick-start website referred to as Indiegogo has enabled the attainment of
6366% of investors from 2017 to the current day (Indiegogo, 2018). Consequently, this indicates
the high level of popularity the product has which also forms its foundation for a diverse
marketing strategy. According to Indiegogo (2018), the high demand for the Amabrush product
by customers has made the product to feature on talk shows, websites, and magazines.
The popularity of a product reflects on its strengths and weaknesses. Amabrush has
become popular and featured in talk shows since it is the world’s first automatic toothbrush.
However, the weaknesses of the product have also featured in various talk shows and magazines
heightening the popularity of the product. Failure to meet the release date is the major weakness
portrayed in the launching of the Amabrush product. According to Indiegogo, 2018), the initial
release of the product was in January 2018. According to Indiegogo (2018), specific information
regarding the release and shipping of the product would follow in January 2018. However, this
was not the case since the release date is still unknown. Consequently, this is deterring and
annoying for potential customers specifically for consumers who have already ordered the
product.
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Information regarding the opportunities available for a product creates a framework in
which a company can exploit the strengths of the product. There exists a constant presentation of
opportunities for Amabrush through the aforementioned featuring in magazines, websites, as
well as talk shows. Ideally, this creates an opportunity for publicity, which gets the word out on
the product to not only the audience in the talk shows but also to specific target markets.
Amabrush should explore its opportunities to build a loyal customer base overtime. Notably, the
loyal customer base built due to the provision of a 45% discount off for Amabrush pro will
enable the company to gather more funds for production purposes (Indiegogo, 2018).
Today, every market faces threats specifically from competitors. Similarly, Amabrush
faces threats from top leaders in market brands. These brands include Oral B, Colgate, and
Sonicare (Citeseerx.ist.psu.edu, 2018). Notably, these brands dominate the US markets due to the
popularity of their brands. The brands are solely based online hence their increased popularity
Citeseerx.ist.psu.edu, 2018). For this reason, Amabrush should consider the threat of these
brands due to the incurred shipping costs and exchange rates since such factors influence the
delivery of the products on international orders. Furthermore, to deal will the threat posed by
competitors, Amabrush requires additional funds to heighten its marketing activities in other
websites as well as through media platforms.
The major problem deduced from the situation analysis regards to the lack of sufficient
funds. Amabrush lacks adequate funds hence the delays in the launching and shipping of the
product (Indiegogo, 2018). Moreover, the lack of funds limits the product’s capacity to explore
on its strength as well as exploit various opportunities consistently provided through magazines,
websites, and talk shows. Based on the SWOT analysis Amabrush has to develop strategies that
ensure the timeliness of its product. Although the failure to deliver the product in January 2018
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attributes to the lack of funds, the company should provide correct information based on an
analysis of the time required to raise sufficient funds for the release of the product. Similarly, the
lack of funds affects the competitiveness of the product due to competition threats in the market.
The raising of sufficient funds at Amabrush forms the major solution to funding-related
challenges.
Marketing Objectives
Marketing objectives set for the Amabrush product should be Smart, Measurable,
Attainable, Realistic, and Measurable (SMART). Moreover, they should create a sense of
ambition and challenge for the company to input the required efforts in ensuring they lead to the
attainment of set goals (Platt, 2002). Arguably, Amabrush should consider a broader marketing
objective in comparison to the one the company relied upon with its first product prototype since
the product has gained popularity through the media, customers with pre-orders and investors.
The marketing objectives presented in this market plan focus on the segmenting, targeting and
positioning of a customer profile presented in a table plan.
1st
Segment 2nd
Segment
Demography
Age- 1 year to infinity
Gender: Male and Female
Occupation: Employed, Students,
retired
Income- above $35
Age: 18-45
Gender: Male and female
Occupation: employed
Income: above $10,000
Geography Urban areas
Suburban areas
Cities in Australia
Urban areas
Suburban areas
Cities in Australia
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Psychographic
Lifestyle: People comfortable
with both the use of technology
and the use of ancient tools
Lifestyle: People who
embrace technology and
prefer making work less
time consuming
Behavioral
Aspects
The benefit sought: Excellent for
affordable prices
Usage rate: Light and medium
users of technology
User status: Users and Ex-users
of ancient brush tools who prefer
technological tools
Technology gadget users
who prefer saving timing
by making things less
time consuming
Target Market
The target market enables the defining of the customer. Ideally, it is a practice with an
aim of catering for differences in the marketing mix to ensure the catering doe different
segments. In this market plan, the definition of the customer relies on the two segments selected
for the Amabrush product. Firstly, the first segment is an ideal target market since it contains
surveys from all individuals. Notably, the segment comprises of employers under the age of 26
years, university students, and schools. Ideally, promoting the Amabrush product in schools and
universities would provide a great response. According to Sharp (2017), the belief that
individuals in this segment rarely shift from a product they like influence the decision on the
choice of the segment. Lastly, the second segment is an approachable segment. Consequently,
this is because it consists of employed individuals. Today, most individuals are busy hence the
high likelihood of ignoring their sanity and health (Indiegogo, 2018). Thus, the belief that
employed people fail to brush their teeth attributes to two factors. They are either tired since they
are busy hence fail to brush their teeth twice a day or lazy to brush their teeth even once a day.
For this reason, introducing the Amabrush product in this segment attracts more buyers.
Part 2
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Marketing Mix Tactics
Marketing mix tactics are essential for a successful marketing plan. They refer to a set of
controllable strategies, tools, and tactics implemented by a company to promote its product and
acquire a desired response from the company’s target market (Goi, 2009). This market plan
acknowledges the need to use four marketing mix tactics referred to as the 4ps. They include
product, price-tag tactics, place or territory tactics and promotion tactics (Goi, 2009). Blending
the 4ps ensures that a company addresses the immediate needs required to ensure the strategic
success of the business. Amabrush has to incorporate and blend the four marketing mix strategies
to ensure the success of the product as well as the success of the business.
The Amabrush product is the world’s first automatic toothbrush. The company has
created a product that provides solutions to real-life consumer needs and wants. The product
development of the world’s first automatic toothbrush functions as a marketing tactic. Employed
people have little or no time to ensure the sanity and hygiene of their teeth (Indiegogo, 2018).
Adversely, this problem requires a solution in the real world. The introduction of the Amabrush
in the market provides the required solution. Employed people with little or no time to brush
their teeth can use Amabrush, which makes tooth brushing quicker and more efficient so they can
have more time for relevant things in life. Employed people require only ten seconds brushing
their teeth with Amabrush as compared to the use of manual toothbrushes, which require the
recommended 180 seconds (Indiegogo, 2018).
The pricing of products functions as a marketing mix tactic. Notably, it enables the
achieving of strategic goals set in an organization (Goi, 2009). For instance, an organization that
is interested in increasing its market share may lower the price of its products to generate
consumer trial. Consequently, this is the case for Amabrush. Amabrush has to set the price of its
14. Introduction to Marketing 14
products low by offering pre-shipment discounts of 45% of the retail price (Indiegogo, 2018).
Customers are attracted to new products with lower prices for trial purposes. Customers desire to
acquire knowledge on the cost of acquiring, using, and disposing of a product (Goi, 2009). Thus,
setting lower price tags for Amabrush provide an opportunity for customers to acquire, use, and
dispose the product over time. Moreover, the increased low prices provided for with a discount
increase the sales of the Amabrush produce hence the company acquires additional funds for the
production of the product.
The location in which customers receive their products functions as a marketing tactic.
However, the laxity of the product has a significant influence on the territory or place tactics
used as marketing tactics. Companies that deal with luxury goods should ensure that their
territory tactic is secure and reachable for customers (Kotler, 1984). For instance, offering a
luxury product at a boutique ensures large profit margins due to the strengthening of the brand
but restricts overall sales. The Amabrush product faces a similar situation. Amabrush is a luxury
product since consumers in the industry may opt for ancient brushing tools that are not
automatic. However, the company should ensure that the product is widely available since
convenience in the accessibility of the product would result in increased sales of the product
(Goi, 2009). The international pre-orders already made attribute to a wide market coverage with
the two segments outlined in the marketing objectives, which in turn contributes to the
competitive edge of the product.
Conclusion
A marketing plan enables a company to attain its marketing goals ensuring increased
sales of a new product. Amabrush uses the Indiegogo website to market the world’s first
automatic toothbrush to attain its marketing goals that involve raising of funds for the company.
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The situation analysis in the plan provides the problem faced by the launching of the new
product. It comprises of two parts that include an internal situation analysis and an external
situation analysis. The internal situation analysis comprises of microenvironment factors such as
suppliers, employees, and customers. The external situation analysis comprises of the macro
environment factors that include economic, sociocultural, and technological factors. The
objective of paper is to provide a market plan that highlights the major problem faced by the
Amabrush product through a situation analysis. Amabrush needs to explore the opportunities and
strengths identified through the SWOT analysis to attain more funds that will ensure the release
of the product.
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