This assignment is a continuation of Assignment 1.  Write a six to seven (6-7) page paper in which you: Determine any strategic partnerships the department store chain could develop that would help

Marketing strategy implementation

MKT 475: Strategic Marketing

Bridget King

Professor Bagher Fardenash

January 28,2019

Strayer University

As a chief marketing officer for a U.S. based department store chain, I will develop a marketing strategy that will focus on the higher-end ones from a focus of lower-end products. The store deals with lower and higher-range priced product categories with the primary focus on lower-end. In this paper, I will determine the marketing-driven strategy that the company will take, distinguish the product-market boundaries, construct a marketing segmentation strategy, develop a customer relationship management strategy, and I will also generate a strategy for collecting information about potential customers.

Determine the marketing driven strategy that the company will take. Provide a rationale for your strategy

Transitioning the marketing strategy from a focus on the lower-end products to the higher-end products is not easy. The company is facing stiff competition from Macy’s and Nordstrom and hence a poor marketing strategy may drive away customers. Additionally, it may be hard for the customers to transition to high-end products. However, with a good marketing strategy, customers may be convinced to purchase high-end products. The marketing strategy that the company will use is a customer-driven marketing strategy. Through this strategy, the company will be able to reach to the customers who will benefit from the high-end products. This strategy is market-oriented. In addition to that, it will help in finding a match between the customers and the capabilities of the company. There will be the development of innovative marketing techniques, advertisements, promotion, and social networking among others (Bush, & Hunt, 2011). The company will utilize resources so as to accomplish its goals and also for a successful shift. This strategy focuses on a given market segment. When the company knows about its customer base, then it will be able to create better strategies that drive the customers to buy high-end products.

Transitioning the marketing strategy from a focus on the lower-end products to the higher-end ones maybe challenging since change does not happen overnight. Some of the factors that will be considered include; resiliency, initiative, adaptation, and creativity (Bush, & Hunt, 2011). These factors will help in attracting customers who need higher-end products. A high-end offering will be offered to customers. The lower-end products will however not be repackaged. Through generous offerings, customers will be attracted to try the higher-end products and if the product meets their need, they will end up buying higher-end products. Trust and credibility relationship will be created between the company and the customers. Through this, any obstacles will be cleared. Other means that can be used to attract customers to buy the higher-end products include; endorsements and use of media.

In this strategy, the target market will be redefined. After segmentation, a communication strategy will be developed which will fit the given category of clients. Needs for higher-end products and low-end products are different and hence their concerns should be addressed differently. It is also essential to know the differences and situations that define a high-end customer opportunity or problems. In order to attract high-end customers, it is important to focus on what will serve them the best. Another factor that will be considered in this strategy is providing an experience. This will be done by providing a consistent message for the target audience. This can be done through weekly blogs or through an online newsletter. Through this, the company can establish itself as a source or as a provider of what people desire and also providing knowledge that will be able to empower the customers (Bush, & Hunt, 2011).Therefore, providing the best of what is offered is the solution to attracting customers to buy higher-end products. Providing exclusive product is also a powerful tool for attracting customers. This is an indication that the company will have to work backward so as to ascertain the needs of the customers.

Distinguish the product-market boundaries. Provide a rationale for your strategy

The department chain deals with both lower and higher-range product categories. In order for customers to be able to distinguish the products, it is essential to provide accurate data and knowledge about the products. Through this, customers will be able to buy products according to their budget. Customers with a low budget will be able to acquire lower-end products while customers with a high budget will be able to acquire higher-end products. However, it is crucial to defend all the products. Through this, other products won’t get discredited. One of the techniques that can be used in differentiating the products is the 7 Ps. They include; price, promotion, place, process, people, physical environment, and process (Day, 2012). These factors are essential for distinguishing products. Therefore, most of the factors should be mentioned in the packaging of a product.

There are certain dimensions that help in determining the product-market boundary. The first dimension is technology. Technology can be applied to satisfying different customer needs. For example, a customer may prefer a home cooking appliance based on their budget and need. A customer may consider using gas or electricity while another person may prefer a new form of technology which is microwave radiation. Therefore, when distinguishing product-market boundaries, a decision has to be made on whether all products should be technology based or some products that are non-technology should also be considered. The second dimension is customer function. Products can be distinguished based on their functions. This provides customers with different benefits. The last dimension that should be considered is the customer group. Customers prefer products based on their needs and characteristics (Day, 2012). Therefore, the store chain should be able to break down products into appliances based on mass merchandise among others.

Construct a marketing segmentation strategy. Provide a rationale for your strategy

Marketing segmentation is a strategy devised by a company so as to divide the broad target market into subsets. This can be based on the needs of the consumers. Through a marketing segmentation strategy, a company will be able to acquire a competitive advantage. Marketing segmentation also helps in knowing about the customer base. The marketing segmentation strategy that would be considered is geographic and demographic segmentation strategies. Geographic segmentation is grouping customers based on a given area. Through this, the company can identify the area that people highly need the products that it offers (Day, 2012). Thereafter, the company can open a chain or a store where it will be able to supply products to the customers. In addition to that, it is important to understand the cultural differences between areas, states, and countries among others. This strategy is important since it will help in providing the differences and similarities of consumers in a given area, identification of the cultural differences between areas, climatic differences and also language differences. Through this, the company will be able to ascertain the geographic area that may need higher-end products.

Demographic segmentation strategy is based on understanding the consumers. It is important to learn about the consumers. Customers should be grouped into variables like income, age, gender, and religion among others. The advantage offered by this strategy unlike other strategies is that there is a vast amount of data available. This strategy is important since it will help in measuring the customer’s preferences for brands and products. Therefore, for this case, this strategy is important since it will help in ascertaining the percentage of consumers who’ll be able to buy the higher-end products. After ascertaining this, it will be able to produce products that will meet the needs and preferences of the customers. However, there are certain factors that will be considered. They include; not defining the segments too broadly, organizing the company by market segments, and globally managing the segment

Develop a customer relationship management strategy. Provide a rationale for your strategy

Customers should be placed at a forefront. The customer relationship management strategy that will be considered is customer engagement-focused strategy. In this strategy, highly personalized interactions will e considered. Therefore, this means that there will be direct communication with the customers. Additionally, this strategy focuses on an individual customer and not the type of an individual. This strategy is important since it will help the store to consider where an individual is in the product life cycle (Buttle, 2009). Thereafter, it can be able to contact the customers so as to develop ways that will help in satisfying their needs.

When developing a customer relationship management strategy, there are certain factors that will be considered. The first factor is setting a destination. Customer relationship management helps in achieving the goals of the company. After the identification of the goals, a plan can be devised which will help in attaining the objectives. The second factor is prioritizing customers. Customers should be treated equally. Therefore, customers will be prioritized. The company should identify what entails a customer value. Through this, it will be able to identify the traits to look in a buyer so as to segment the customers. The third factor is to communicate with the employees. Customer engagement-focused strategy will be designed in such a way that it will be able to handle the massive amount of data. The employees will then be able to determine whether the goals of the company are met. Through this data, it will be easy to detect the direction that the company will take. The fourth factor is to implement new policies and technologies. The policies will be in line with customer engagement-focused strategy. The policies will, however, be updated gradually.

Generate a strategy for collecting information about potential customers. Provide a rationale for your strategy

The strategy that will be used for collecting information about potential customers is the behavioral strategy based on customer buying criteria and purchase process and patterns. In this strategy, there are a number of ways that will help in gathering information about potential customers. The first way is through customer real-time behavior. It is important to understand the customers better and how they behave. Some of the information that can be collected includes; why they are visiting the company and what makes them share the content of the company on social media. The second way is through determining the key factors that set the customers apart. The company should identify the types of customers. This can be done geographically. Understanding the pattern of customers is important for identifying potential customers (Buttle, 2009). 

The third way is through customer service records. In cases where customers call to return the products, the company can use this chance to get more information about the customer. They can be asked about what they like and dislike about the products and services offered. The fourth way is through referral source. It is important to track all the information about the customers. By knowing about the referral source, it can then be easy to know of the ways to reach a wide range of customers. Another way is through personal tastes and preferences. Information about the customer’s tastes and preferences should be collected. Through this, products can be created which will resonate with the customers. A company should also develop channels where customers will be able to share their experiences with the company. Another way is through website activity. It is important to keep track of the customer’s activity on the company’s website. Collecting demographic information is important since it will be able to provide information about the interests of the customers.

References

Bush, R. F., & Hunt, S. D. (2011). Marketing theory: philosophy of science perspectives. Marketing Classics Press.

Buttle, F. (2009). Customer relationship management : concepts and technologies. Amsterdam London: Butterworth-Heinemann.

Day, G. S. (2012). The Market Driven Organization: Attracting And Keeping Valuable Customers. Simon and Schuster.