Marketing strategy
Q1) As a marketing manager of prestige department store Please provide : 1) the segmentation of this department store 2) the target consumer of this department store 3) Positioning of this department store 4) Product strategy of this department store 5) Marketing Mix of this department store Total 600 words require for Q1
Segmentation. This fully recognizes that buyers of any product or service category need, desire, want and expect different performance characteristics from products or services in the category. It helps the company to position the product properly and prepare marketing strategies to satisfy a more focused range of consumer needs and wants. Furthermore, it is also a factor in effectively using limited marketing resources, identifying unique market niches, improving profitability and helping to retain consumer loyalty. The basis for the market categorizations of clients and customers include the (1) demographic characteristics, (2) the geographical location, (3) consumer behavior, and (4) psychographic characterizations. In the case of the department store, market segmentation is highly evident in the product and services categorizations within the store that cater to all individuals.
Target Customer. Companies now face the challenge of making its target consumers respond accordingly to their marketing efforts. Those who understand its consumers’ responses will have a great competitive advantage. As such, the department store targets groups of individuals that practically spends most of their time together in order to attract large units of customers. These groups of individuals include families, friends, classmates, work colleagues, and couples that elicit relatively higher purchase of items and services offered in the store.
Positioning. In its continuing quest to properly address the needs of their various customers when and where they want it, the department store is undoubtedly a whole mall in itself. Everything is literally found in one roof. No longer limited to grocery items, it offers services that would allow a customer to avail of everything in one stop. Besides the extra selling of books, CDs, digital music, videos, flowers, games, gardening, gas, holidays and flights, they also provide financial services (e.g. credit cards, loans, mortgages, savings) insurance services (e.g. car, home, life, travel) telecoms services (e.g. Internet, home and mobile phone) and healthy living services. The store is considered a one stop shop retail outlet that it caters to every market segment in the country.
Product Strategy. Customer loyalty is not a one-sided arrangement with the company reaping all the benefits. The customers also expect to be rewarded for patronizing the company. Aside from assuring customer satisfaction, the company also has to devise certain strategies that will make the regular customers buy more or try new products. Some of the examples are the following: sampling, discount coupons, rebates, price-off, bonus packs, sample packs, special packs, premiums, free trial, warranty, prizes, patronage card/reward, contests and personality. Discount and club cards have been a strategy to developed similar loyalty schemes in order to identify and stimulate brand awareness. These database marketing and loyalty programs, the ultimate promotion strategies for the retailer are powerful, highly segmented customer-oriented forms of promotions, encouraging customer retention and purchase activation.
Marketing Mix. Customer satisfaction is the primary aim of marketing. In focusing on the future, the enterprise ensures the best possible chance of attaining long-term stability and competitive standing. The marketing mix of the company is not solely focused on the knowing the needs of the customers, but the company is also extending effort in knowing its customers more through the establishment of a better customer care and consulting services. The creation of the marketing mix is intended for the purpose of insuring the achievement of various corporate goals such as profit, volume, image, reputation and return on investment through the satisfaction of the consumers’ wants and needs. It results in the total bundle of utilities actually purchased by consumers in selecting products and services, and it is concerned with such factors as price, design, advertising, packaging and distribution channels.
Q2) Hong Kong Disney and Hong Kong Ocean Park has different Consumer Behavior and Market, please define. Total 600 words require for Q2
Along with the intense marketing nowadays, firms are faced with the challenge to maintain their own competitive edge to be able to survive and be successful. Strategies are carefully planned and executed to gain the ultimate goal of all: company growth.
Consumer Market
Consumers around the world are different in various factors such as age, income, education level and preferences which may affect the way they avail of goods and services. For the business people and the people in the field of advertising and marketing, the product or service being offered could be a good start in planning and executing an effective campaign. Knowing the product and its demands in the market as well as the people who will likely avail and take advantage of the offer will open the possibilities for a campaign that will be most ideal in the market.
The value and importance of customers is not something that should be set aside by companies. Marketing plans and strategies would be incomplete without paying much consideration to the customers. Customers will and should always be a part of the agenda in any marketing plan of any company. Because of the implications for profitability and growth, customer retention is potentially one of the most powerful weapons that companies can employ in their fight to gain a strategic advantage and survive in today’s ever increasing competitive environment (1999).
In the case of Ocean Park and Disneyland, their consumer market tends to overlap due to similar market characteristics such as age since both establishments cater to children. However, the differing attractions that Ocean Park and Disneyland offers operate as the defining market classification of the groups of people who visit both establishments.
Consumer Behavior
Looking into the characteristics and thought processes of the people still holds as the most significant factor to be looked into by the individuals in the field of sales and marketing. The large scope of market can pose a hindrance to a successful marketing strategy in terms of over generalized definition of the target or niche market. According to (2001), consumer buying behavior refers to the buying behavior of the individuals and households who buy the goods and services for personal consumption. This behavior then impacts how products and services are presented to the different consumer markets. There are many components which influence consumer behavior namely: cultural, social, personal and psychological (2001).
Consumers can either be subjective or objective, testing the persuasiveness of brand names. Retail stores selling the products also play an important role in swaying the decisions of consumers. The whole package or visual appeal of the retail outlet can determine sales, or the service of the sales ladies or the clerks. Furthermore, consumers may choose particular products/brands not only because these products provide the functional or performance benefits expected, but also because products can be used to express consumers’ personality, social status or affiliation (symbolic purposes) or to fulfill their internal psychological needs, such as the need for change or newness (emotional purposes) (2002). These are just some of the factors that affect consumer behavior. They have been the subject of consumer research for years, for instance, linking them with customer service and customer satisfaction, or the efficacy and persuasiveness of advertisement, etc.
Differentiating the consumer behaviors of the markets of Ocean Park and Disneyland leads to more detailed definition and analysis of the demographic background of their respective market. These include the intent, motivation, interests, and lifestyle of the specific type of people that choose Ocean Park over Disneyland and vice versa.
Q3 Marketer of a chain convenience store in HK, please analyze that key factors which affect your marketing strategy Total 600 words require for Q3 Total 3 question=1800 words
Companies now face the challenge of making its target consumers respond accordingly to their marketing efforts. Those who understand its consumers’ responses will have a great competitive advantage ( 2001). Since the market for chain convenience store is in the international orientation, the management as well as the advertisers should keep in mind the differences that are distinct between and among the target market from different cultural backgrounds which significantly affect the effectiveness of the campaign. The fact is, there may be ideas that will not be applicable across the diverse target market population. Studies on the relationship of consumer behavior and their personal values and cultural orientation as well as their beliefs on certain principles, the dispositions they hold and side they take on political, gender and social problems and issues should be duly accorded.
Culture influences behavior through its manifestations: values, heroes, rituals, and symbols (2001). The combination of both etic and emic perspective on the manifestations, can basically reveal culture’s strong relation with customer behavior. The etic philosophy is based on the definition of culture as “the collective programming of the mind which distinguishes the members of one group or category of people from another’’ (Hofstede, 1997). On the other hand, the emic philosophy stresses upon understanding issues from the perspective of the subjects being studied (Luna and Gupta, 2001). As cited from McCracken (1988), this philosophy determines the coordinates of social action and productive activity, specifying the behaviors and objects that issue from both.
Values are basically the basis of one’s attitude or restriction in attitude. Some examples of values include freedom, pleasure, inner harmony, and happiness. Heroes, on the other hand, refer to icons in the society that may have an impact on people of different levels. Examples of heroes are sports figure or pop culture figures. (2001) stated that heroes may influence consumer behavior through their association with certain products and brands. The same goes with rituals, or symbolic activities commonly performed over and over, such as bathing, tooth brushing, attending to mass, to school, etc. Their involvement on the consumption of consumer products makes them important for consumer behavior. Finally, symbols are equally important because different cultures have different symbols that they favor i.e. language, logos, signs, etc (2001).
Marketing stimuli often consist of the four Ps of marketing: product, price, place and promotion while the other stimuli may include economic, technological, political and cultural factors which exist in the marketing environment. All marketing communications should be directed to a particular target. This aspect suggests that in implementing marketing communication, the company should clearly identify the targeted constituents and stakeholders, or to whom the marketing communication strategy should be directed (2002). The purpose of this aspect is for the company to create or apply communication instruments that will encourage the market to purchase or patronize the product.
Product. The management initiated product development strategies by marketing their existing products in a new market, exporting products in different areas of the region and thereby advancing opportunities of increasing market penetration and market share. Replacing or updating models such as home equipment to give the customers what they want and what they need, developed the store’s own-brand products which could be advertised strategically.
Price. Some of the ways that firms acquired cost advantages are by improving process efficiencies, gaining unique access to a large source of lower cost materials, making optimal outsourcing and vertical integration decisions, or avoiding some costs altogether. If competing firms are unable to lower their costs by a similar amount, the firm will be able to sustain a competitive advantage based on cost leadership.
Place. To expand its success in its retail operations, the convenience store made multi-million pound investments in store development in low-income areas. By linking with like-minded public and private sector organizations such as local community based organizations, colleges, and chambers of commerce, the company has opened locations in economically disadvantaged areas in Hong Kong.
Promotion. The chain of convenience store’s current approach is a long-term strategic plan that focuses on creating value to gain the lifetime loyalty of their customers which include maintaining a strong core Hong Kong business, to be as strong in non-food as food products and services, to grow internationally and to move into retailing services such as on-line shopping.
Business in our society plays a very important part in “shaping the structures of our society” and in “challenging traditional values” ( 1993). In order to understand the reason why corporations never stop from developing their business ideas and seeking ways to improve their strategic moves for the company to at least dominate the industry, it is important to know how business is being defined. Corporate competitiveness will be achieved by those companies that are successful in formulating, implementing and communicating sound global strategies. For decades, corporate strategy practitioners and academic researchers have drawn widespread attention to the importance of formulating comprehensive, sound, futuristic corporate strategies (1996). Corporate strategic success can be figured out by strategy implementation of the companies’ core objectives in order to achieve the long-term goals and mission of the organization. All these will be possible by taking into account the political, economic, social and technological variables that directly affect the business environment of the Hong retail industry in general.
Political. The non-interventionist policies that govern the citizens and foreign individuals who resides and make business transactions in Hong Kong opened the city to the complex and socio-political environment of international trading. As the world’s freest economy, Hong Kong exhibits a limitless transparency of regulation modeled on the administrative law systems of the United Kingdom, United States and other world leaders in regulatory practice especially in the areas of securities, banking and financial services regulations. This political characteristic of the region contributes to increased clientele of the convenience store.
Economic. Considered as one of the progressive regions in Asia, Hong Kong, despite its lack of natural resources, is characterized with high per capita GDP in the world that enjoys a highly developed free market economy. Its scarce resources made the country dependent on exports produced by other countries through its extended trade importing products. This extends the opportunities as well as the threats for the convenience store in terms of extending market penetration strategies and increased number of competitors.
Social. Another dimension is to take the company’s social responsibilities seriously by supporting local charities, funding educational scholarships, and contributing to the socially relevant causes and projects that get publicity. Sustainable development efforts of the organization through environment-friendly social drives that promotes responsible waste management along with other cause-oriented social activities in communities where the company’s stores are located are likewise enhanced and supported.
Technological. The arrival of broadband internet means that more and more people will shop online – suggesting there is plenty of room in the market for the convenience store and its competitors. Service differences are likely to smooth out, making it more likely that people will choose on the basis of price and brand loyalty. With this, the management will need to reassess its goals as well as opt to take on a differentiation strategy by promoting unique attributes that are valued by customers and that customers perceive to be better than or different from the products of the competition
The long history and practice of people across different countries and cultural identities could be very overwhelming in the challenge that it presents to business and advertising individuals who have ambitions to take the extra mile of gaining a share of consumers and clients from varying localities abroad. Today the array of possibilities in applying the marketing strategy of international advertising is unimaginable. Instead of taking the technological barriers as hindrance and drawbacks in the international business operations because of the technological divide that cuts across the people from different social status, looking for avenues of more strategic and effective campaigns and treating such drawbacks as opportunities nay result to favorable outcomes.
Credit:ivythesis.typepad.com
0 comments:
Post a Comment