Business Studies HSC HSC Practice Question 1c – Strategic role of marketing

Pulse+ is a mid-sized business that sells a subscription-based health coaching app and a companion wearable band. The business has grown quickly through social media advertising, but cancellations have increased over the last six months.

Pulse+ is considering a strategic change to its marketing approach. Currently, the marketing team focuses on short-term sales promotions (e.g., “first month free” and discount codes via influencers). Customer feedback suggests some users expected the wearable band to provide medical-grade monitoring, while the product is designed for general fitness tracking and habit-building.

Pulse+ has two proposed marketing directions for the next 12 months:

• Option A: Acquisition-first — increase paid advertising spend and influencer partnerships to maximise new sign-ups.
• Option B: Retention-and-brand — reduce discounting, clarify the product’s purpose and limitations in promotions, and invest in onboarding content, customer community features, and partnerships with gyms.

Internal data:

Pulse+ operates in a competitive market with many similar apps. Management is concerned about long-term profitability and brand reputation, not just short-term sales volume.