Incorporating the Economic Principles in the Marketing of the Smart Home Devices - Essay Example

Professor

April 28, 2016

Business War

Introduction

The smart home devices include devices that help make home stay a more enjoyable activity. The paper delves on the discussion of smart home devices. The same paper focuses on the importance of incorporating the economic principles in the marketing of the smart home devices. Economic principles contribute to the successful increasing demand for the smart home devices.

Smart Home Devices

The smart home is classified as home automation in the purest sense. Several software and completing hardware devices make the life of living within a home more comfortable and safe. One of the popular security (safety) devices is the CCTV camera. The same camera collects in video form the entry or exit of suspected criminal elements. The home owners do not need to regularly watch the home premises’ windows in order to see if criminals are entering or the home premises (Pfleeger, 2015).

The smart home uses technology services to improve the lives of the people living inside their homes. The use of the internet to help in the home improvement is a very good comfort-generating home strategy. With the home being connected to the internet, the persons living within the confines of the home can community with individuals living outside the home. One can have a video conference with others who are living in different parts of the world at the same time. With the internet, one can send and receive messages by using emails. The emails allow faster communication between the message senders and the message receivers (Seriac, 2012).

One type of smart home device helps control the home temperature automatically. The nest (learning) thermostat and the competing ecobee3 (smarter) thermostat device are smart home devices that increase the temperature in order to keep the room temperature at the comfortable level of the average person. The smarter device is sold on Amazon’s online store for an estimated $ 240 per piece. Both devices can decrease the temperature of the home to ensure the home temperature is within the comfort range of the same typical person. The person own any of the two devices can easily increase or decrees the home temperature of the home with just the click of the mouse. Such devices have remote sensors that identify the current room temperature that needs to be adjusted. With the devices, the home owner does not need to personally monitor and change the actual room temperature to more acceptable levels. The two competing smart home device do the job of ensuring the actual room temperature is changed to more comfortable levels (Dunn, 2015).

Further, the Philips Hue smart home device is another popular smart home device. The same device can be equated to smart lighting comfort. The light allows the popular blue light color to peacefully permeate the home environment. The color of the same device helps make the people thrive in a comfortable mood environment. The same device can be acquired at the average price of $175 each from the online Amazon store (Dunn, 2015).

Furthermore, another popular home safety device helps detect fires in the home. The nest protect smart home device detects the presence of fire-caused smoke in any part of the home. The device sets off an alarm when it detects the suspicious presence of smoke. If the persons hearing the alarm cannot control (stop) the source of the smoke by themselves, the residents can immediately scamper off to a safer location within the home or run outside their home. The device can send a distress or warning signal to the homeowners’ phone to alert the same person that smoke had just been detected within the home. In turn, the home owner can call up the home to determine the status of the fire alarm in order to possibly call the local fire department for immediate help (Dunn, 2015).

The Amazon Echo smart home device works like a (Bluetooth) speaker the device can be used as the typical Google device. The same device can easily find the current weather reports from the internet sites. Next, the same device can immediately inform the device owner the current weather condition. The device owner can use the latest weather report to decide one’s next weather-related home strategy. If the device reports that the incoming hurricane will arrive within 12 hours, the device owner who lives in a flood prone community has enough time to bring one’s family to another safer location within the state or outside of the device owner’s local state. The device can be acquired at $180 from Amazon’s online store (Dunn, 2015).

Current Home automation (Environment)

The current environment (home automation) is economically bright. The smart home market segment has unlimited opportunities to increase product-based revenues. The marketing strategy of the competitor in the home automation industry is to continue pouring the latest smart (home) devices into the market (Shapiro & Varian, 1999). With the proliferation of new devices, the current & future clients receive more and more benefits for their dollars’ worth of purchases. To succeed the competitors’ new products are geared towards supplying the special needs of all diverse users. The industry players initially conduct surveys on the most popular needs of the target markets. Next, the industry players research (and) develop new products that offer better features and benefits compared to the features and benefits being currently offered by the competitors within the same smart (home) products market segments. By supply products that fill the most popular economic needs of the present and future customers, there is an increasing demand for the customer-responsive smart (home) devices (Chuan et al., 2014).

Additionally, many smart (home) device suppliers are dependent on the success of the marketing companies promoting the smart home devices (Shapiro & Varian, 1999). By offering low prices and discounts on certain sale days, the demand for the smart (home devices) increased to more profitable levels. By offering better services to the smart home product clients, one competitor usually generates the higher customer demand compared to competitors who deliver lackluster or poor customer services (Chuan et al., 2014).

Interpretation of Findings

According, some economists affirm 21st century marketing entails supplying the banal (self-serving) needs of the present and future customers. Technically, the current economic arena is a fight to the death among the smart phone competitors (Shapiro & Varian, 1999). Those that cannot keep up with the better technologies of the competitors within the same market segment may be driven into bankruptcy (Shapiro & Varian, 1999).

In a free market smart home environment, every individual or entity has the freedom to engage in any economic activity. The economic activity may be selling activity. The economic activity may likewise focus on acquiring one’s preferred products and services. In such a free market economy, there will always be leaders. Leaders represent smart home marketing entities (or individuals) that generate the highest revenues within the same market segment. Such entities reach their hard-fought top position by engaging in successful strategic marketing activities. However, all smart home marketing activities boil down into four different strategies. The first strategy is to sell high quality products and services. However, selling high quality products and services is not the entire strategic management picture of the local smart home economy. The products and services must fit the current economic market demand. If there are only 200 homes needing the automatic smoke sensor smart home lighting device within the local community, the smart home suppliers of the same smoke sellers should not force sell the same product into the same market segment. Selling to a saturated market segment would entail higher advertising and promotions expenses compared to selling to a new, young, uncharted, or unsaturated target market (Shapiro & Varian, 1999).

Further, many entities implemented the creative economic revolution within our economic environment. Economist Elizabeth Grosz reiterated emphasized that the incorporating, life, time, creative evolution, movement, and other relevant inputs into the marketing equation. Instead of implementing hard sell economic marketing strategies that focus on selling what the suppliers want to sell, the same equation indicates competitors who willingly open up and sell the economics products that meet the continually changing demands of the target markets will generate higher present and future customers’ product and service demands over competitors or are self-centered (selling economic products that do not meet the clients’ present and future wants and needs. The equation includes differentiation, selling products that fit different economic target markets (Kember, 2012).

Consequently, companies engage in alliances with other partners to survive in the currently competitive market segment. The partnership includes those brokered between the suppliers and the smart home product sellers. The suppliers of the smart home products include the sellers of the parts used in the production of the smart home devices. The marketing partners of the smart home devices include the stores, malls, hardware stores, construction supply stores, and other entities that sell the smart home devices. The marketing partners of the smart home technology devices include the trucking companies. The trucking companies deliver the smart home technology devices from the production plants of the smart home products to the stores, malls, construction supply stores, and other sellers of the smart home products.

Conclusion

Summarizing, the smart home devices incorporate the high technology devices that enhance home activities. The smart home devices reduce the time and effort needed to complete assigned home tasks (chores). The success of the marketing strategies includes taking cognizance of the diverse effects of the economic principles in the preparation and implementation of prescribed marketing strategies within the smart home devices market segment. Evidently, the economic principles beneficially ensure the successful increasing 0f the present and future customers’ demand for the smart home devices.