A Consumer Driven Economy
In the past, marketing has been based on a stimulus and response method, where marketers would send out stimuli in the form of advertising and promotions to receive a specific response in the consumer’s behavior. Today, marketers have discovered an alternative way to communicate with their consumers called sense-and-respond. A sense-and-respond model is where advertisers sense what consumers are saying they want, through their behavior, and the marketers respond as promptly and as efficiently as possible.
This new trend is giving the consumer control over the decisions that until now, the corporations made for them. This impacts many aspects of business- from the items the retailers decide to stock, how the merchandise is categorized, the delivery, and the consumers even have more control over the development of new products. Putting the consumer in control could save a company a lot of money, while keeping the consumer satisfied with the product.
Many popular companies are now practicing sense-and-respond when it comes to running their business. Wal-Mart uses the Internet to allow their suppliers to access data about their daily sales. While doing this they are not only helping their suppliers, but they are also avoiding overstocking their stores; hence they only buy what they know they will sell. Companies such as Dell that mass customize their product for the consumer are also practicing sense–and-respond. While giving the consumer complete control over what they want in their product, Dell avoids wasting stock that cannot be sold to the consumer.
Being a consumer, I am personally thrilled to see this change in the retailer-consumer relationship. I was never aware of the losses that businesses suffered when their products did not sell to their expectations, understanding what the consumer desires will greatly improve this condition of waste.
Advertising is an innovative field to communicate with people about products or services, but als...
How has the use of technology changed its interaction with its suppliers? Wholesalers? Other business partners?
...ecome so reliable and dependats to their gadgets and materials than on people that if taken away, distress and unhappiness usually is an end result though theyr are just mere objects. However people may argue that consumers are the key to businesse success, they are also producers them selves though its true that without needs and wants, out world woudnt be that modernaized and advance as its today but consumers are just given mere importance for their loyalty to the products and play their part which is just to consume whatever is thrown at them despite any freedom in choices or decision making. Hence we consumers have been given importance as the’ public opnion’ and given the spotlight, but sadly unless we realize that this is all a game of manipulation we will continue to trapped in the shadows of the cave just like the prisoners in Plato’s Allegory of the cave.
The increasing process of globalization, coupled with an organization seeking to satisfy the needs of consumers globally, contributes significantly in embracing technology in the marketing process. In addition the marketing strategies are inclined towards reaching not only the targeted segment, but also potential customer that can be captured based on the market forecast of the firm. Therefore, integrating various tools of communication as well as platform of reaching out to a wide range of audience has been embraced by corporate globally. Notably, effective communication is vital in the marketing process (Percy, 2008). On the other hand, reaching out to a wide range of customers or audience in the advertising process in significant important. From this perspective organization can utilize both effective communication and a contemporary platform to reach to a wide range of
From buying a hamburger to buying a house people use a process in order to make a decision on what to buy. (book cite) describes this as the consumer decision process (pg.175). Utilizing a consumer decision process model, marketers are able to better understand how consumers are purchasing products and services. The five step consumer decision process model includes need recognition, information search, alternative evaluation, purchase, and post purchase. Not all purchases require following all five steps to a T, but consumers, whether they know it or not, follow a version of this model when making a purchase. Companies also use this model in order to effectively market their products and services. A company
This is the first and most basic step in the purchase decision process. Marketers can effectively initiate consumers’ awareness of a need with the right advertising campaign. For instance, the concession advertising prior to the start of a feature movie is geared toward making movie goers aware that they” need” a drink and a snack. Information search is the process where consumers gather information on a pro... ... middle of paper ... ...
With the rise of the economy, consumers have become more and more knowledgeable on selecting their favourable product as a result the organization cannot focus on what it sells but on the side focus on what the customer wants to buy.
Nowadays, advertisements are everywhere embedded in our daily life. They are powerful resources that inform people the latest news about a particular product or brand in many different ways. Most of the people are being able to get more information and detail of a product from media, radio stations, newspapers and internet. Even though advertising is a big informative source, it also can be considered as a marketing tool to control the mind and desires of the consumers to manipulate and persuade them to buy things they do not need.
Harckham, A. (1989), "The changing US consumer", in Harckham, A. (Eds),Packaging Strategy, Technomic Publishing Company, Lancaster, PA, .
Everyone has heard a cashier one time or another mumble, “Paper or plastic?” as he put their groceries in a bag, but do shoppers know the effects of each vessel in which they carry their comestibles? There are many issues and benefits to both paper and plastic. The making and recycling of both paper and plastic bags can harm the environment. One must also look at the costs of making each bag. The convenience of each is also something to look at. Many people jump to conclusion that paper bags are better for the environment without knowing the facts. Since plastic bags are preferred by customers and plastic bags actually do not hurt the environment as much as paper ones do, consumers should feel at ease when choosing plastic.
Marketing professionals create, manage and/or enhance brands in order to create or bolster demand for the product. A successful marketing plan will help assure that consumers look beyond just the price or function of a product when making a purchasing decision, in part, a well planned marketing effort will create a “feel good” association about the product the consumer is about to purchase (Petty) A key part of a career in marketing is to understand the needs, preferences, and constraints that define the target group of consumers or the market niche corresponding to the brand. This is done by market research. This is accomplished through market research, essentially using survey techniques, statistics, psychology and social understanding to help gather information on what consumers want and/or need, and then designing products, or services, to hopefully meet ...
In order to look out for their customers, Pick n Pay released a customer rewards programme called “Smartshopper”. The programme, launched in March 2011, allows the franchise to get to know and understand each customer better by observing each individual’s shopping habits and references. The company has direct access to many Smartshopper customers via e-mail and/or sms, which allows the business to communicate with their customers in a more engaging manner. Pick n Pay asks for feedback from customers, and sends targeted marketing communications directly to them. All of this is done in an effort to both design and execute marketing campaigns and product ranges which are more relevant to their customers by extracting insights from the customers shopping habits data, as well as to assist the company in growing their sales volumes – which will ultimately lead to an rise in profit (FastMoving, 2012).
Buchanan et al (2001) defined Perception as a self-motivated process, since it entails ordering and attaching meaning to a sensory data that is raw. Human perception is an active process that categorises and interpret information provided by our senses and it help us to understand the key message an object they encounter. According to Payne et al (1992), the information being encountered before through stimulus are stored in our memory the way we perceive it and force consumer’s to act in a different way. In regard to the Activia and Mcdonald’s advertising, it wants people to combine their five senses, which are taste, smell, sight, hearing and touch, and by stimuli it, with the idea of filling the gap in relation to our needs
Thau was inspired by the Bashar Nejdawi, president of Ingram Micro Mobility that is a provider of technology and supply chain services. According to Nejdawi, “In five years, consumer electronics stores as we know them today won’t even exist, and the same rings true for our favorite apparel brands”. He also asserts that three influential factors will change the retail landscape: instant gratification, borrowing and customization. A good example of instant gratification is Uber or Amazon. The Uber customer can see in real time where the Uber car is and when is going to arrive. In the same way the Amazon provide fulfillment program that allow retailers to sell products that are not physically in storage. In this way the retailers do not have to care about inventory and can concentrate on marketing. Secondly, the borrowing culture is going to grow. As an example is Zip Car or Netflix applications. On the Zip Car program someone can borrow a car just for few hours. Likewise, some business offer a mobile device rental program that allow a customer to lease the latest device for a fraction of the cost. Further, the customization program permits customers to choose their preferences before the product is being made. As an example is miAdidas company that gives to the clients the possibility to create
Nevertheless, one of the most important constants among all of us, regardless of our differences, is that, above all, we are buyers. We use or consume on a regular basis food, clothing, shelter, transportation, education, equipment, vacations, necessities, luxuries, services, and even ideas. As consumers, we play an essential role in the health of the economy; local, national and international. The purchase decision we make affect the requirement for basic raw materials, for transportation, for production, for banking; they affect the employment of employees and the growth of resources, the successfulness of some industries and the failure of others. In order to be successful in any business and specifically in today’s dynamic and rapidly evolving marketplace, marketers need to know everything they can about consumers; what they are want, what they are think, how they are work, how they are spend their leisure time. They have to find out the personal and group influences that affect consumer decisions and how these decisions are made. In these days of ever-widening media choices, they need to not only identify their target audiences, but they have to know where and how to reach