MARKETING STRATEGY IMPLEMENTATION 7
The shift from a lower end priced products to a high end pricedproducts will require extensive marketing, as well as the applicationof various marketing strategies that will enable the department storeto compete with its rivals. It is evidently clear that Macy’s andNordstrom are well-established stores and competing with them willrequire a marketing strategy that is well thought out and unique. Thefocus of the marketing strategy that the store adopts must be on theclients, who form the market that the department store chain targets.
The marketing-driven strategy
In a marketing-driven strategy, the customers form the startingpoint of the business plan. The focus is on the customers’satisfaction and creating customer value. The department store chainmust adopt a market-oriented approach where the focal point of thebusiness will be the clients. The business must always focus onenhancing customer value (Day, 2010). This is a marketing-drivenstrategy which has been proven by research as being remarkablysuccessful in competitive environments. The business enterprise mustapply organizational skills which are aimed at offering customersatisfaction, as well as meeting customer needs. In other words, thestrategy is driven by the needs of the customers and only seeks tosatisfy the clients. It is worth stating that the approach requiresthe contribution of the entire workforce at the businessorganization. In order to successfully operate a market-orientedstrategy, the business must be ready to study continuously thechanges in the market (Day, 2010). This is followed by innovativeways of producing products that are in line with the demands of theclients.
The market-oriented approach of the marketing-driven system requiresthe organization to continuously collect and analyze information withregard to the market, competitors and customers. This will enable thebusiness enterprise to develop products that are of a higher customervalue than those produced by the competitors such as Macy’s andNordstrom. The gathered and analyzed information is viewed in abusiness perspective in order to provide ways through which thedepartmental store will provide superior customer value. It is,however, imperative to note that this strategy will require theinvolvement of the entire organizational workforce (Day, 2010). Theorganizational culture at the department store must change andstarting focusing on creating customer value through the productionof quality products. This is a strategy that is beyond simplymarketing, but focuses more on the individual customer needs andseeks to satisfy customers.
This is a strategy that will the store a platform of shifting fromthe lower end to the higher end priced products. Since the departmenthas stores in metropolitan areas, it is evidently clear that there isa mixture of people who prefer high priced products, as well as thosewho prefer low priced products. This approach will enable thedepartment store to study the market, and the customer needs (Day,2010). This will not only enable the store to provide customers withvalue, but the store will also satisfy the customers and meet theirneeds. A study on the competitors will also be critical in ensuringthat the departmental store chain studies their weak points andcapitalizes on them.
The market that the business enterprise is competing for comprisesof other competitors producing similar products and are in the sameindustry. Additionally, there are other industries that manufacturealternative products which consumers can purchase. The departmentalstore chain must look for other markets for their products. Ineconomics, it is argued that in order to succeed in a competitiveenvironment, a business enterprise must look for blue ocean marketswhere there is little competition. The departmental store must notlook at the direct competitors and their products only, but must alsolook into the alternative products and substitutes from othermanufacturers. In order to determine the product market boundaries,the departmental store must analyze the product market in orderdetermine its competitiveness, as well as financial gain. If thedepartmental store only focuses on the two competitors, it is evidentthat it can be ambushed by new competitors that produce alternativeproducts. It is fundamentally important for the departmental store tocarry out a thorough market analysis that will indicate how manyproducts provide the need for the customers. If the products arenumerous, the departmental store must determine its product marketboundaries on the basis of how much of the products it can produceand deliver to the customers. For instance, the departmental storemust provide all the men and women clothes, shoes, accessories andjewelry as provided by Macy’s and Nordstrom.
The strategy of focusing not only on the direct competitors andsimilar products, but also focusing on the alternative products isextremely useful. The departmental store is able to find blue oceanmarkets for its products. It is paramount to find out the alternativeproducts that different industries produce. This will prepare thestore effectively for competition.
Marketing segmentation strategy
Since the departmental store produces both low and high end pricedproducts, it is paramount for the departmental store to adopt aneffective segmentation strategy. Various segmentation strategies areused depending on the product and the distribution of the customers(Ferrell & Hartline, 2011). The segmentation strategy that thestore adopts must be able to identify the needs of individualclients. The demographic segmentation strategy will be extremelyuseful for the departmental store. This strategy will criticallyanalyze the needs of the customers hence provide the store withessential information with regard to the production of qualityproducts for the consumers. This will go hand in hand with themarket-oriented strategy that focused on the client’s needs.
The departmental store chain will divide its market according to theneeds of the clients. The customers who need the high end pricedproducts will be in their own category while the customers who demandthe low end priced products will be in their own category. It isworth noting that the store will mostly focus on the high end pricedproducts in terms of marketing and customer satisfaction.
Customer relationship management strategy
An effective customer relationship management strategy allows abusiness to create a long lasting and mutually beneficialrelationship with the customers (Peppers & Rogers, 2011). Aneffective CRM enables the salespeople and the company at large tointeract and engage effectively with the customers. Acustomer-centric strategy of CRM is appropriate and has been provensuccessful through research. Whereas the store may want to benefitfrom the customer relationship management, it is essential for thestore to always focus on the needs of the client (Peppers &Rogers, 2011). This policy of a customer relationship management mustset goals that all the people at the departmental store chain must bemade aware. The customer-centric strategy for CRM must, however,apply the current and latest technology. For instance, the strategymust make use of the Software-as-a-Service tools. The long-termrelationship between the client and the departmental store chainsshould be the primary objective of the strategy of CRM.
Peppers, D., & Rogers, M. (2011). Managing customerrelationships: A strategic framework. Hoboken, N.J: Wiley.
Day, G. S. (2010). Market driven strategy: Processes forcreating value. New York: Free Press.
Ferrell, O. C., & Hartline, M. D. (2011). Marketingstrategy. Australia: South-Western Cengage Learning.