You must have heard of the phrase ‘The government of the people, by the people, for the people, shall not perish from the Earth’ by American president Lincoln. Politics has to be conducted and controlled by the people as for the as they are the center of politics.
Likewise, in the market, consumers, people purchase products and services, play the same role as the people in the previous phrase. Consumers are the principle agents of economy activities and lead a consuming marketing. Corporations are unable to survive without consumers purchasing. Therefore, the life and death of companies are in the hands of consumers It is important for corporations to recognize the essential motivation which cause their consumption.
The major factors that affect consumer behavior are categorized in 3 different types.
As you can see from the table above, the consumer behaviors are affected by a diverse range of factors from the environment surrounding them, their family and friends. Companies need to analyze every factor that may be able to improve consumption of their products.
ZARA: Just-in-time production system based on customer needs
In particular, global fashion brand ZARA substantially consider that producing and selling new products by grasping what the consumers want is significantly important. Their marketing strategies start from the logic that consumers always have to be first as they are existing by them. In addition, they progress the market segmentation, product differentiation strategies from their own data-system and principle that indicates the needs of consumers. As a result, their marketing strategies are constantly changed by changes of customer preference. Furthermore, their marketing strategies are made by consumer demands, not from their own plans. This consumer orientation marketing strategies increases consumer satisfaction.
For example, managers of ZARA offline stores all over the world frequently send new ideas of designs which are collected from customers to the head office in Spain with PDA called Cassio-peia which is designed to collect data of consumers’ preference. Over 200 fashion designers create new designs based on the data collected by the store managers and then, the new designs are saved in their own market information system in order to transit to the factories around the world. This allows ZARA to be able to produce new design of clothes every second week. However, if the new products do not attract consumer attention, they just get rid of the items straight away. Likewise, it is their first working principle to try to reflect consumers’ preference faster than competitors.
Check out how this ZARA manager works!
Huge cultural mistakes by Disneyland.
In general, when international corporations invest the new business in overseas, analyzing the local culture has to be conducted first. Culture is one of the most important factors the global companies consider to success their investment. If someone starts selling hams in the middle-eastern countries, can you imagine what can happen…?
Walt Disney is one of the most successful global companies. They make animations and a wide range of character goods such as dolls, school supplies and so on. They have always been popular among people regardless of sex and age. Upon their success they built theme parks called Disneyland all over the world from U.S.A to China. However, they have been accused of disregarding local culture ever since expanding their theme parks overseas.
Disneyland in Hong Kong opened in 2005 and attracted 5.6 million visitors in the first season that were markedly less than they expected. They launched the US cultural and business facilities in Hong Kong Disneyland. In the beginning, people were no able to bring in the local cuisine into the park and it caused protests against their policy, while the hamburgers were being sold in the park. Originally Chinese people have food sitting at a table at regular meal time. On the contrary, Americans have snacks or food in the street while moving around any time. In addition, they built up the park with western styles of decoration which did not match the its Chinese environment. It was evaluated as a small version of Disneyland in US. The attempted Disneyland of Chinese culture brought about signiﬁcant cultural backlash in the Middle Kingdom and the Chinese began to view Hong Kong Disneyland as a fake symbol of culture.
Since their failure to adapt to the local culture Walt Disney changed their policy of their business. It took them over 10 years to build the most recent Disneyland in Shanghai their planning took into account the local culture ensuring the parks success. The park has been highly rated by the locals in China as the park was designed for the people of China
2014. The Disneyfication of the World: A Grobalisation Perspective. Journal of Organisational Transformation & Social Change. 11(2), pp. 91-107..
UK Essays. 2013. Brand Personality And Positioning Effects On Consumer Behaviour Marketing Essay. 23, 2013. <https://www.ukessays.com/essays/marketing/brand>
Latimescom). 9 June 2016. <http://www.latimes.com/business/la-fi-disney-shanghai-culture-adv-snap-story.html>
AFAR Media. 1 21 June 2016.< http://www.afar.com/magazine/why-shanghai-disneyland-differs-so-much-from-the-others>2016.Why Shanghai Disneyland Differs So Much From the Others.
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