Consumer Behaviour - Market Inclusivity and Exclusivity - Essay Example

MARKET INCLUSIVITY AND EXCLUSIVITY By Can and Should the Marketplace be inclusive to all consumers? The marketplace is a diverse place comprising of different consumers with different perceptions on goods, tastes and preferences, purchasing power, beliefs and general attitudes. The organization has the ultimate prerogative to understand the market dynamics (Litvin, 2002, p. 80). This will enable the organization derive maximum benefits by understanding the marketplace environment. It is imperative to note that understanding the marketplace enables the organization to organize its marketing strategies to be in line with the dictates of the general market environment. In this regard, the firms will formulate a marketing mix that reaps maximum benefits given the diverse market environment and the organizations resources (Lewis and Sappington, 1994). This brings to the fore certain marketing strategies like segmentation, targeting, and market positioning. This paper will seek to establish whether the marketplace can be inclusive to all consumers. Moreover, this paper will try to establish whether the market should be inclusive to all customers. This paper will focus on the fashion world in order to draw meaningful insights on the aspect of inclusivity and exclusivity of the marketplace. It is important to note that the scope of this study will be on the inclusivity and exclusivity of consumers within the fashion market place. Other markets will therefore not be focused on due to the dimension that this paper will take. Exclusivity of the Fashion Marketplace The fashion market is a diverse and dynamic field that is constantly changing to accommodate the dynamic tastes, preferences, and needs of the clientele (Johnson and Myatt 2006). Players in this industry have to be abreast with the new trends as well as new emerging markets. This kind of reactiveness makes these firms to remain relevant in the fashion industry (Doeringer & Crean, 2006, p. 54). It is imperative to note that, the participants in the fashion industry have their own predetermined market. The goods that they produce are meant to serve a particular set of consumers. These firms rend to identify a niche and work to satisfy all the specifications that are required in that niche market (Dalgic, 1998, p. 4). In this regard, the success of a certain product in this niche market is because of the desires, wishes, or needs of a liberated customer and the consequence of marketers’ compulsion over an isolated individual. The advantages of adapting niche marketing entailed growth prospects, value formation and apparent value, revenues, augmented sales, prices and marketplace stakes, client retention/allegiance, augmented competitiveness, supposed management role, certain grade of security, advanced consumption rate and performance (Brown, 1993, p. 32). Players in the fashion industry tend to target a certain group of clients hence leaving out the ‘undesired’ client base (Ashworth et al., 2006, p. 89). For instance, the fashion house Louis Vuitton is particularly known to manufacture goods that are meant for the more affluent members of the society. These are people with a proven record of buying power. The fashion house therefore produces Giffen goods. Consumers buy these goods because of their high prices that are associated with prestige and affluence (Douglas, 1973, p. 67). In this case, the higher the price the more it will be in demand. This marketing strategy has enabled Louis Vuitton to position itself as producer of prestige goods meant for the up market clientele who have a proven buying power. The fashion house has established its unique identity in the market that is meant to attract high-end consumers. Consequently, the wider population that constitutes the other client base has been excluded from the marketing strategy of Louis Vuitton. The wider population that is left out seeks to purchase goods that are less costly. Louis Vuitton on the other hand prices its products highly due to the perceived quality attached to the products (Nagasawa, 2008, p. 21). Moreover, their distribution network is such that they do not sell their products in department stores. Instead, they establish their own unique high end Louis Vuitton stores. This approach is meant to give the select consumers a special feel of prestige and pride that is associated with their products. Investigation on low-income or shoddier consumers and the shortcomings that they meet in the market is the emphasis of this research. Numerous commonly apprehended beliefs concerning low-income customers need to be defied but since these customers are not important as objective markets there is pint-sized venture in the market exploration that might dispel them (Hamilton, K. & Miriam, B., 2005, p. 32). It is however imperative to note that not the entire Fashion market is an exclusive field for high-end consumers. A number of fashion houses have endeavored to bridge the gap and include the wider population that has been left out by fashion houses that target high-end consumers. These firms have embraced the aspect of mass marketing where they target a large population. The marketplace is known as a mass market, where the monopolist trades the goods to a comparatively big segment of customers (Brandt, 1966, p. 89). Else, the marketplace is referred to as a niche market, where the good is delivered specifically to customers with high valuations. Their strategy enables them to leverage on the aspect of mass sales that tend to bring more returns. That is, they enjoy increasing economies of scale. Their marketing strategy is that their distribution channels have been designed to accommodate department stores in order to reach more clients. The strategy that the company chooses to adapt in catering to the needs of the consumer is ultimately the reserve of the company’s management. It is however important to note that any given marketplace is dynamic enough to accommodate a variety of market mixes. The market place can be inclusive or exclusive to consumers depending on the marketing strategies that the company seeks to adapt. Whether a market is inclusive or exclusive of consumers depends on the interactive process between the companies with prospective customers who tend to exercise influences on the marketing arena. This ultimately depends on how the company understands the consumer behavior in the target market. In all these strategies (inclusivity/exclusivity), there are fundamental steps that are identical. The first stage is to identify the types of customers present in the market. The company achieves this by conducting an extensive survey in the market. The second step is to establish the types of customers that the company deems best to exploit. This is achieved by evaluating the customer tastes and preferences, needs, and desires, beliefs and attitudes. The final stage entails the company deliberately implementing the segmentation agenda. This is done by augmenting and differentiating the company’s products to suit the chosen market segment. The company should consequently make it known to consumers and competitors alike of their choice to differentiate themselves from other products available in the market. As stated above, the market has a number of customers who are seeking products that match their own personal specifications. How best the products of a company suit these needs ultimately influences whether the consumer will be included in the company’s mix. In this regard, the marketing mix will continuously try to enhance its products so that they can suit the ever-changing needs of the consumers. In an instance where all the consumers in the market are included in the marketing mix of an organization, the company treats all the consumers equally with no apparent efforts to enhance products to suit their individual specifications. In another contrasting instance, a firm seeks to include certain market segments in its marketing mix. For instance, the company may seek to concentrate on a particular market segment and ignore other segments. For instance, Southwest Airlines targets customers who are thoughtful about price and are willing to disregard meals and designated seats in exchange for low prices. Exclusivity has a number of challenges including probable cannibalizations of goods in the event of several good. The company may also lose grip of delivery networks. Exclusivity presents the challenge of inadequate marketplace and client information, hostile critics from generalists and variations in customer demand hence in lessening niche. Moreover, the strategy for exclusive consumers may lead the entry to low-cost innovative competitors and subsequent relaxed progress attributed to the company. It has been noticed that mature customers are not given the same variety of choices as equated to younger customers. In Britain, multiple style retailers offer goods designed for purchaser groups under 45 years (Birtwistle & Tsim, 2005, p. 453). On the other hand, the strategy to embrace inclusivity has a number of challenges. For instance, extensive inclusion may create extra exclusion since everybody will be different. Therefore, others will not be involved in certain ways. Moreover, the aspect of complete inclusion will give rise to the supply-demand and other production issues. For instance, exhaustion of the company’s resources and the inability to cater for all the target customers will be commonplace. In the bid to accommodate all consumers, the company might face challenges in producing products that are at par with the general expectations of the consumers. Offline stores face exchange area as well as shelf space restraints, so they provide products personalized to the requirements of the majority (Choi, J., & Bell, 2011, p. 670). It is therefore advisable for companies to thoroughly analyze the market situation and come up with the best market mix that not only suits their marketing strategies but also meets the requirements of their clients. The organization has the ultimate prerogative to understand the market dynamics. Therefore, the strategy that the company chooses to adapt in catering to the needs of the consumer is ultimately the reserve of the company’s management. It is however important to note that any given marketplace is dynamic enough to accommodate a variety of market mixes. The market place can be inclusive or exclusive to consumers depending on the marketing strategies that the company seeks to adapt. Whether a market is inclusive or exclusive of consumers depends on the interactive process between the companies with prospective customers who tend to exercise influences on the marketing arena. Conclusively, in market-driven frugalities, people might tend to propose that customers will seldom encounter a scarce supply of merchandise they are prepared to buy (Scaraboto, & Fischer, 2013, p. 1234). References Ashworth, C.J., Schmidt, R.Ä., Pioch, E.A., & Hallsworth, A. 2006, ’Web-weaving’: an approach to sustainable e-retail and online advantage in lingerie fashion marketing’, International Journal of Retail & Distribution Management, Vol. 34, No. 6, pp. 497-511 Brandt S.C. 1966. ‘Dissecting the segmentation syndrome’, Journal of Marketing, 30, October, 22-27 Brown S. 1993 ‘Postmodern Marketing?’European Journal of Marketing, 27, 4, 19-34. Dalgic, T. 1998, ‘Niche marketing principles: guerrillas versus gorillas’, Journal of Segmentation in Marketing, Vol. 2 No. 1, pp 5-18. Douglas S. P. 1973 ‘You are what you buy’ European Business, Spring, 40-47. Doeringer, P. & Crean, S. 2006, ‘Can fast fashion save the US apparel industry?’, Socio -Economic Review, Vol. 4, No. 3, pp. 353-377 Johnson, J. & Myatt, D. 2006, On the simple economics of advertising, marketing,and product design, American Economic Review 93, 756-784. Lewis, T. & Sappington, D. 1994, Supplying information to facilitate price discrimination, International Economic Review 35, 309-327. Litvin, D. 2002 The Business Case for Diversity and the Iron Cage , in B. Czarniawska and H. Hopkinson. (eds) Casting the Other: The Production and Maintenance of Inequalities in Work Organizations. London: Routledge, 160-184 Nagasawa, S. 2008. Marketing principles of Louis Vuitton. Waseda Business & Economic studies 4 (44). pp. 41-54. The Four Articles Birtwistle, G., & Tsim, C., 2005. Consumer purchasing behavior: An investigation of the UK mature women’s clothing market. Journal of Consumer Behavior Vol. 4, 6, 453–464 Copyright # John Wiley & Sons, Ltd. 1472-0817. Choi, J., & Bell, D. (2011). Preference Minorities and the internet. Journal of Marketing Research. Vol. XLVIII, 670 –682. Hamilton, K. & Miriam, B., 2005. Towards A Better Understanding of the Low-Income Consumer, Advances in Consumer Research, Volume 32. Scaraboto, D., & Fischer, E. 2013. Frustrated Fashionistas: An Institutional Theory Perspective on Consumer Quests for Greater Choice in Mainstream Markets. Journal of Consumer Research, Inc. DOI: 10.1086/668298. Read More