A Focus on Smartwatch Retailers Strategies

Marketing to Gen Z: A Focus on Smartwatch Retailers Strategies

Problem background and Statement

Perhaps the most fundamental change in how businesses market themselves to attract, engage, and keep customers and workers was brought about by the Millennial generation. It was tough to fathom the Millennials since they were unlike any previous generation before them. In truth, most businesses are just now discovering how to market to Millennials and work with them (Dash, Kiefer, & Paul, 2021). Marketers are having trouble figuring out how to reach out to Generation Z. Marketers will have to work extra hard to meet the needs of Generation Z, which seeks more customized marketing. Despite the fact that Gen Z and Millennials share many characteristics (Francis & Hoefel, 2018), engaging this generation will be significantly more challenging and will need a whole new set of marketing strategies. Generation Z is just entering the workforce and will soon have a large impact on the wearables and smartwatches market (Kamble, Desai, & Abhang, 2021), so now is the best time for manufacturers of wearable gadgets to spend in getting to know them and designing and testing branding and marketing strategies and campaigns that will attract their attention and gain their business (Dehghani & Kim, 2019). Gen Z is only getting started in the workforce, but it will eventually play a huge influence in how businesses make purchase choices. Brzeziński and Gwiaździński (2020) highlight that members of Gen Z are not only good at finding information, but they know exactly what they need in electric products. Gupta et al. (2021) advices wearable companies to show Gen Z target audiences how a business can help them right away for them to notice it. Personalizing content is the only way to attract Gen Z’s attention, gain their trust, and persuade them to choose a product over the next (Kang & Jung, 2021). Many companies that sell to other businesses may struggle to overcome Generation Z’s need for increased B2C interactions in the wearables market (Gregor & Gwiaździński, 2020). Hyper-personalization, predictive marketing, and retargeting, which have shown to be efficient in B2C marketing, will continue to make their way into services marketing (Francis & Hoefel, 2018). Focusing on a smartwatch retail business, it follows that marketing practices targeting Gen Z users will need to improve their data collecting abilities and learn more about the habits and preferences of this consumers in order to make data-driven decisions that improve the effectiveness and accuracy of brand communications, marketing content, and marketing campaigns.

Presentation of Research: Secondary Findings

Gen Z is driven by a strong sense of purpose. This suggests that they wish to partner with businesses, individuals, and brands that have the same goal of making the world a better place and do business with them (Francis & Hoefel, 2018). Customers who are members of Generation Z, also renowned for their tendency to mistrust others, will have higher expectations of companies. They will anticipate that companies will be transparent and accountable (Munsch, 2021). If a firm’s Gen Z clients believe that the claims made by the company to be untrue, the company may no longer have any hope of earning their confidence. In point of fact, it would be quite challenging for any organization that aims to attract Generation Z to recover from this scenario successfully. It’s possible that marketing to them will be more difficult than marketing to previous generations (Dobre et al., 2021). Even the most successful IT organizations have trouble luring customers in the millennial age bracket. Recent studies have shown that firms like Netflix, Instagram, and Facebook are having a hard time drawing in consumers from the Gen Z demographic (Schlee, Eveland, & Harich, 2020). They were brought up in a manner that was distinct from the generations who came before them. As a result, people use things in a variety of different ways. As a direct result of this, conventional marketing methods do not enjoy the same level of success as they formerly did. Because of this rapidly increasing population, everything we thought we understood about advertising is changing, and marketers need to stay up with the changes.

Gen Z consumers do not find it strange that marketers adjust their marketing based on data collected from users, in contrast to many previous generations. This group intentionally trains their algorithm by clicking, viewing, admiring, and sharing information that they would want to see more of (Williams, 2015). Customers must find the user interface to be attractive in order for them to make frequent use of their accounts. Brands have the opportunity to learn more about the preferences of their younger consumers by conducting polls on social media platforms such as Twitter and Instagram. When marketing to Generation Z, a company will see an increase in sales and conversions proportional to the degree to which it is able to be particular.

It’s possible that in order for Gen Z consumers to compete in the present market, one of their goals and strategies should be to provide a variety of products and services. Personalization could be able to take service quality to the next level by ensuring that the business has a strategy that meets the expectations of Gen Z customers (Schlee, Eveland, & Harich, 2020). There are two methods to differentiate a product, the first of which is to provide it more variety, and the second is to give it more complexity, both of which are essential components of the process of designing and delivering the service. Differentiating oneself from the competition may be accomplished in a number of ways, including carrying out exhaustive market research, using digital technologies into the service process, and surpassing the expectations of the customer. The only way for businesses to be successful in today’s market is for them to have an understanding of what Gen Z consumers want and how they like to shop (Song, Qin, & Qin, 2020). For instance, premium clients belonging to the Gen Z generation need a totally individualized experience. They take pleasure in purchasing items that are relevant to the pursuits in which they engage. On-the-spot transactions make up the vast majority of their business. This encompasses everything from different marketing efforts to different means of shopping both online and in-person.

Presentation of Research: Primary Findings

From the interviews conducted, it emerged that a company that has the goal of attracting Gen Z clients must first accept the challenge of exceeding the expectations of its existing customers. According to the findings of the survey, shoppers in the Gen Z demographic expect companies to act immediately upon making a promise and accomplish precisely what they say they would do. Customers who are part of the Gen Z generation also place a significant amount of weight on the opinions expressed by a friend. Customers of Generation Z have high expectations for wearable retailers to not only meet but also exceed their requirements (Kang & Jung, 2021). It is essential to not only consider how relevant the content is, but also the surrounding circumstances and the manner in which the advertising message is conveyed. The act of giving each piece of marketing communication its own distinct identity in order to make it more successful as a whole is known as personalization. This makes it simpler for individuals to communicate with one another, demonstrates and rewards consumer loyalty, and contributes to the growth of trust. When marketing to people like me, companies should “look me in the eye,” “turn the interactions” into an interesting, “mutually beneficial” dialogue, and avoid the “commercial monologue” that is typical of traditional marketing. These are some of the most important phrases that were mentioned by those who were interviewed. It is unethical to use statistics to influence the public and transform reality into a product; doing so is a certain method for customers in Generation Z to steer clear of a particular firm for the rest of their life. For instance, the use of fabricated statistical and numerical data in the automotive sector about the impact that exhaust fumes have on the surrounding environment is something that ought to raise a warning signal for any consumer who belongs to Generation Z. Businesses have a responsibility to be aware of the fact that clients belonging to Generation Z are very knowledgeable about technology and are capable of doing independent research on a variety of different aspects of marketing.

Analysis of Problem with Consumer Behavior Theory

Customer Relationship Management is derived from relationship marketing. It’s a term that describes the measures a company takes to locate and establish connections with new consumers while also maintaining and enhancing relationships with existing customers. Personal ties may also provide a firm with a competitive advantage that is greater than that provided by other considerations. In order to gain market share and revenue, conventional marketing focuses on servicing big groups of clients in specific locations (Priporas, Stylos, & Fotiadis, 2017). Customer relationship management, on the other hand, may help with relationship marketing in an attempt to better understand the Gen Z consumer (PrakashYadav & Rai, 2017). Thanks to technological advancements, it is now feasible to gather data on a bigger scale, which can subsequently be utilized to adapt sales presentations to each individual. Businesses may get to know their consumers better and learn more about their requirements and priorities when they employ CRM. Both of these factors have the potential to raise the value of each consumer.

Personalized marketing is the concept of integrating consumer information with technical tools to create connections between a company and particular individuals who are in the firm’s target market. A stream of information personalized to a specific client based on his or her age, ethnicity, gender, sexual orientation, requirements, and preferences is referred to as “consumer communication” (Guerola-Navarro et al., 2021). Personal marketing makes use of data to figure out who a consumer is so that a product may be tailored to their requirements or preferences (Zerbino et al., 2018). Because of technological advancements and the capacity to gather more data than ever before, personalization in marketing is at an all-time high. The ability to identify a consumer based on their previous activities, preferences, purchases, and other personal information is critical to the customization process. This demonstrates that the customizing process is geared toward the customer. People create digital traces when they perform things online. Businesses may use these imprints to create client profiles and market more effectively. People’s names, lists of friends, where they are right now, and demographic information are often included in these digital trails. Large databases and the accumulation of digital footprints about consumers’ habits and actions on many websites allow for sending each client precisely what they want (Tunsakul, 2020). Firms can connect with their Gen Z audience more precisely and increase the likelihood of a long-term engagement by demonstrating that they understand their habits and wants.

Changes in marketing have resulted in a more customized approach that tries to engage with Gen Z clients. As a result, it is critical that organizations exercise extreme caution and consider the unique characteristics of each consumer. As a result, if smartwatch companies want to generate as much money as possible, they must approach each relationship individually (Gupta et al., 2021). According to Dobre et al. (2021), CRM is also about determining what consumers’ various wants and priorities are so that you can engage with them. Because it is now simpler to get and retain information, smartwatch companies have a better understanding of how Gen Z customers behave. More information may also provide additional advantages, such as increasing competitiveness and minimizing costs.

Strategic Marketing Mix Recommendations

If the product idea that supports the marketing mix is incorrect, even the most effective marketing mix method may fail. The success and profitability of a retail business are inextricably linked to the quality of the smartwatches and other accessories it produces. The first stage is to do a comprehensive examination of a smartwatch’s capabilities, excellent attributes, and advantages over its rivals. An investigation of the competition may assist a company in identifying aspects that set its goods apart from those of its competitors and should be emphasized in marketing materials. Market research is another tool that businesses can use to learn more about the features of their goods that appeal to Gen Z clients.

Any pricing point for a product must generate a profit for the firm, as well as cover all associated expenses and allow for an acceptable profit margin. Then it’s a question of looking at comparable items on the market, their price points, the prices that the target market is ready to pay, and figuring out how to use price’s psychological power to establish retail pricing. Psychological pricing strategies are a kind of pricing strategy that takes human psychology into account. The last digits of selling prices are often odd integers, such as .99. It’s likely that electronic things targeted to Gen Z will someday be considered luxury items, while clothing and accessories will be significantly less expensive.

It is suggested that retailers that offer smartwatches concentrate their efforts on both online and in-store sales. Customers who purchase electronic devices, such as smartwatches, are more likely to engage in online communication with other platform users and purchasers of other items (Dehghani, Kim, & Dangelico, 2018). TikTok, Snapchat, and YouTube are some of the most effective methods to communicate with Gen Z clientele since they are online platforms. If this is the case, selling directly to customers via retail websites by mail is a viable option.

Promotion is the process of selecting various methods for advertising a product as well as determining how to identify and differentiate that product in the market. People sometimes confuse promotion with marketing; however, without a product, price, or location, choosing the ideal promotional mix that avoids wasting both time and money may be challenging. A wristwatch retailer should have a separate landing website, run Facebook advertisements, and create Instagram reels if they want to attract Gen Z customers.

References

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