Sales Promotional Strategies of Steve Madden - Essay Example

? Professional Application The paper deals with the sales promotional strategies of a company under consideration. The different demographics of the target customers will be discussed. The paper will analyze the different promotional measures which will target the customer base of the company. Introduction Steve Madden is a well-known footwear brand that has a wide presence in the retail markets of Houston. The company has a strong physical presence in the retail footwear industry of Houston and also conducts business in the online mode to sell its footwear products. Steve Madden is well known for selling its fashionable footwear products which provide cutting edge solution to the customers in the footwear industry. The business of Steve Madden is well known for the novelty in the footwear products and the competitive prices of the footwear in the market. The market capitalization of Steve Madden is under continuous threats due to the strategic movement of its competitors like the BCBG, Nike, etc. BCBG has been able to reduce the points of differentiation in the product lines of Steven Madden. Nike has been able to tap the unexplored market for athletics and sportswear. The changing landscape in the marketing of footwear products of Steve Madden could be analyzed with the help of research on the market demographics, social, economic as well as technological advancements (Kazmi and Batra, 2009). Due to the changes in the internal and external environments of the footwear business of Steve Madden, the company would need to strategically adopt policies for a smooth adaptation to such changes. In order to respond to the changing scenario, Steve Madden is required to identify the different target customer segments in the footwear market and then carry out separate approaches for sales and promotion of the footwear products depending on the demand and preferences of the target customer segment. Demographic Research The research conducted on the market demographics would help the small footwear business of Steve Madden to identify the target segment of customers and then apply various sales promotion techniques to sustain its market share in the competitive landscape. The three different target segments are, namely, the children or teenagers, young men and women, old aged people, etc. The various marketing and sales promotional approaches adopted by Steve Madden for the different customer segments have been described as given below. Children or teenagers The various approaches for sale promotion in order to tap the target market opportunities include better packaging of the footwear products that generally attract the teenage customers. Better packaging creates the first impression among the teenagers before use. In addition to this, any free item offered with the footwear would also be a good sales promotion approach for targeting the teenage customers. In order to promote the footwear products among the teenage customers, Steve Madden could also look to spread the information on the good effects on tender legs due to the usage of their products. Apart from this, the company could also conduct exhibitions of their footwear products with amusements for children in those exhibitions to attract the target customer. The increased time spent by the children and the teenagers along with the parents in such exhibitions would help the company to promote their footwear products in the market. Young men and women The various sales promotion techniques for targeting the young women and men in the market would be adoption of different ways to highlight the cutting edge fashions incorporated in the design of the footwear. The young men and women would be attracted to the new designs and fashions of the footwear promoted by Steve Madden, and this would help the company to survive in the competitive market. Another approach of sales promotion would be to offer competitive prices in the footwear market. The young men and women who are updated with the latest trends and information would be attracted by the competitive prices of the products of Steve Madden. The company could try to spread the new fashions and the prices on their footwear through the online medium of marketing, such as the company websites, social media marketing sites like Facebook, etc. (Shimp, 2007). The provision of online purchase and payments would also be useful for the company to promote their footwear products among the young men and women. Older population Steve Madden brand of footwear has built its brand image over the years thanks to offering novelty products at competitive prices. The brand value could be used in the promotional approaches looking at the older population in the market. The company could look to undertake personal selling with care for the elderly people in order to promote their footwear products. Steven Madden could also develop medicated shoes, which would provide an impression that they care for the elderly people. This would help the cause of sales promotion for this target customer segment. Sales Promotion Rationale The approach for sales promotion adopted by the footwear business of Steve Madden follows a specific rationale, which is guided by theories of marketing in the area of sales promotion. The market in which the company has considerable share of its footwear business is not a homogeneous market. The research on the market demographics helped the company to divide the market into three target segments on the basis of its products and associated features. The different market segments targeted by the company in this case are the children or teenagers, young women and men, elderly people. These target segments vary from each other in terms of their age group, and it is quite natural that the customers of these three target segments would vary from each other in terms of their needs. The customers of these three target segments would also have different outlook on life. The lifestyle, fashion and concerns for their health would also vary from one target group to another. Thus, it is obvious that features of the footwear products of Steve Madden which are suitable or favorable for one target customer segment like the young men and women would be different from the features desired by another target customer segment, i.e. the elderly people. It is for this reason that the rationale for sales promotion by Steve Madden varies for each of the target market segments (Mital, 2007). The various features of the product addressing the health concerns for children and women in the sales promotional approach are not applicable for the sales promotional approach for young women and men who demand the fashion features of the footwear product. For this reason, Steve Madden has applied different sales promotional approach for different target segments in the market. This approach could be supported by the marketing theory of Segmentation-Targeting-Positioning. According to this theory, the marketing and sales of products offered by the company could reach its highest potential by segmenting the market and then targeting the appropriate segment that would be satisfied by the features of the product. After identifying the target segments, the products need to be positioned in the minds and hearts of the target customers through appropriate sales promotional approaches. The various sales promotional approaches to be considered in the promotional mix include personal selling, direct selling, exhibitions, advertisement that includes the print media, live and online mode. According to the marketing theory, the products would be best positioned among the target customer segment if the sales and promotional approach is undertaken after understanding the preferences and demands of the target segments (Kotler, 2009). For example, the young and dynamic customers would prefer online transactions, which may not be preferred by the traditional old aged customer due to security concerns. Thus, the sales promotional approach needs to be varied on the basis of target market segments identified by the company. Steve Madden has developed a brand value in the footwear market of Houston by virtue of its novelty products and the competitive prices offered to its customers over the years. The company has been facing potential threats due to the development of internal and external changes in the business environment. The threats of declining market shares have been posed by the strategies of its competitors (Havaldar, 2005). The competitors like BCBG have been able to narrow down the points of differentiation of its product lines offered by Steve Madden. The unexplored potential in the area of athletic and sportswear has been tapped by Nike. It was thus essential for Steve Madden to capitalize on the strength of its products and sustain its market shares by restructured sales and promotional approach to the customers. For this, demographic research was conducted by the company in which three target customer segments were identified based on the various age groups. Conclusion The various needs and demands of the target segments were identified and the appropriate sales and promotional strategies were undertaken to promote the product features among the respective target segments. This helped the business to reduce the strategic risks of loss of market share and customer base. The different sales and promotional approach adopted by the company for the different target segments are guided by the marketing theories of segmentation-targeting-positioning. The position of the products in the minds and hearts of the customers are best attained with the help of appropriate approaches that fit with the lifestyle, needs and demands of the target segment. References Kazmi, S. H. H. and Batra, S. K. (2009). Advertising And Sales Promotion. India: Excel Books India. Mital. (2007). Cases In Strategic Management. India: Tata McGraw-Hill Education. Kotler, P. (2009). Marketing management. India: Pearson Education India. Shimp, T. A. (2007). Advertising. USA: Cengage Learning. Havaldar, K. (2005). Industrial Marketing: Text and Cases. USA: Tata McGraw-Hill Education. Read More