Consumer Marketing in Terms of Marketing Strategies for the New Economy - Case Study Example

Consumer Marketing This paper discusses consumer marketing in terms of marketing strategies for the new economy. It incorporates consumer marketing in relation to its online facilities marketing strategies, advantages and disadvantages the building block for the web, the psychology of consumers and the impact of social networks. Introduction Consumer marketing has different angles of perception. One of the most important strategies that are used in this kind of marketing is the marketing strategy for new economy (Green & Keegan, 2012). A new economy strategy entails the development of electronic commerce and the internet through the development of market hardware and software, which facilitate the growth of the telecommunication services. Hence, every company requires a new economy since there are huge chances of long term prospects for doing business. It is crucial that companies examine the impact of the marketing strategy and its valuable in the company once it has been incorporated. If anything, other competitors may incorporate the idea and end up using it to reign the market to a point of suppressing other competitors (Lamb, 2012). According to a recent research, internet and particularly the cybers are among the leading marketing strategies. Billions of dollars have been used in shopping pertaining to traveling, offices, homes, gardens, computer hardware and software and the apparel. However, a small amount of dollars have been used on shopping for books, music and video, food and beverage among others (Kotler, et al. 2006). Gap in Marketers Knowledge Although marketers’ toolboxes have home networking and usage of broadband, it is clear that they lack the knowledge to understand consumer attitudes toward technology. In essence, they should be in a position to comprehend the pros and cons of embracing technology, the e-commerce constituents, their use and management. Moreover, they should be able to handle the consumer behavior in relation to communication such as messages and buying services online. Applications for mix elements and the issue of digital divide where some customers are underrepresented should be put into consideration (Pride & Ferrell, 2012). Advantages Apparently there are several advantages that are associated with new economy technologies. They include syndication, increase scale returns, personalization, disintermediation, global reach, full access and the possibility of instantaneous delivery. Syndication is making sale of one good to various customers, who might in turn combine it with information from other sources and distribute it. This ensures that there is delivery of informational goods in place of tangible goods. This process can be automated and digitized making it flexible especially through mobile phones and other devices to open up infinite chances for marketers (Green & Keegan, 2012). An increase in returns to scale of network products ensures that a product becomes more valuable with the increase in the number of users. Thus, the companies are in a position to identify and exploit chances where they are certain of benefiting. The capability to effectively personalize and modify market offerings allows the customers to give specifications on the nature of the services or products that are being offered to them. Through disintermediation and restructuring channels for distribution, it becomes easier for marketers to reach the customers without complication. Additionally, global reach, access round the clock and instant delivery increases the impact of this technology. Most marketers are free to capitalize on the advantages that arise for the new economy technologies, as they constitute chances that are available to marketers who use them (Kotler, et al. 2006). . Disadvantages Conversely, most of the marketers who use this marketing strategy are certain that most of the products and their prices are not far from their variable cost. There is also the presence of barriers in the entry and several internet strategies have suffered imitation. Of importance to note is that, the marketers have the mandate of choosing the valuable features to some customers, which may be of little value to others. They can package and repackage information in different ways and be able to market segments with margins that do not necessarily have to be zero. Marketing Techniques Marketers may use different method of wooing customers into buying their products. These incentives include financial incentives, convenience incentives and value –based incentives. Financial incentives involve attracting first –time purchaser, reduced prices, E-coupon among others. Convenience incentives are used to obtain product information and enable easy location of merchandise among other conveniences. Value added entails changing purchasing habits to become long term and personalizing online shopping. A combination of the three incentives results to successful E-commerce incentives in relation to consumer marketing (Raab, 2010). Influencing Online Consumer Behavior According to Jain, 2003, it is important for marketers to understand the mechanism of virtual understanding and consumers’ behavior. The online consumer is not a mere shopper but also an information user. Hence, website experiences embrace elements like browsing, finding, searching, making choices, and assessing information, as well as, transacting with online firms. It is argued that there had been an addition of one more step to the customer buying process which related to buying trust and confidence. Other factors include customer characteristics and the environment factor, which are both controllable and uncontrollable. Building Blocks for Web Experience Consumer marketing especially online should be incorporated with three building blocks or factors. They include functionality factor, psychological factors and content factors. Functionality factors entails the usability of the web such as being in a position to easily access the web, locate desired information and being able to purchase the services and products. Psychological factors are those that ensure that there is online trust where the customers’ data enjoys privacy, clear policies for transactions and some uncertainty reducing elements. On the other hand, content factors act as combination of aesthetics and marketing application. This is the web site atmosphere, which evokes pleasure for online marketing. All in all, marketing online is interesting especially when the website is well prepared and then there is incorporation of the social media in persuading the consumer to buy various products. Online advertising should also be incorporated in the new marketing technologies (Pride & Ferrell, 2012). New Economy Marketing Strategies for Harley Davidson History of Harley Davidson William Harley-Davidson was first started in 1903 by Walter Davidson, Arthur Davidson, Harley Davidson and William Davidson in their small back yard in Milwaukee, Wisconsin. The company’s production started with about three motorcycles in 1903 a number which slowly grew to 8 in 1908. The company was acquired by American Machines and Foundry (AMF) in 1969 which expanded Harley-Davidson’s production capacity from 15,000 to 40,000 motorcycles. It was not until the year 1986 that Harley-Davidson Incorporated first became a publicly held company (Harley-Davidson 2013). Harley-Davidson Decreasing Financial Performance Harley-Davidson recorded revenues amounting to $4,718.9 million during the fiscal year that ended in December 2009 (FY 2009). This was seen to be a decrease of about 19.7% compared to the sales of the 2008 financial year. The company’s operating profits were about %196.1 million during the FY 2009, which was a decrease of 81.5% as compared to the 2008 financial year. It also suffered net losses amounting to $55.1 million in the 2009 financial year, this is as compared to the net profits of $654.7 million it made in FY2008 (Harley-Davidson 2013). The losses that the company incurred necessitated for it to start the implementation of several new economy marketing strategies that would help stem the decline in its profit revenues as well as capture new market segments. New Economy Marketing Strategies Implemented By Harley Davidson Harley-Davidson E-Dealers Harley-Davidson has recently been transforming parts of its traditional dealer network into e-dealerships. In addition to ensuring that Motor clothes and all the other relevant motorcycle accessories are available on their website, the company has set up a prerequisite that before any visitor to their website can be able to order anything, they must first of all choose a dealership that they would prefer to do business with. Harley Davidson’s electronic commerce communications manager Ken Ostermann explains that this is important because the wide variety of accessories and products that are available online can sometimes be very complex and dealers can be able to provide customers with expertise. Currently, Harley-Davidson has an estimated 126 designated E-Dealers and is in the process of increasing these numbers (Easy Rider 2013). Harley-Davidson’s E-Payment Facilities As part of its New Economy Marketing Strategies targeted at E-marketing, Harley-Davidson has designed a website that incorporates advanced security features supporting online payment facilities for Harley-Davidson customers. Customers are able to create Harley-Davidson accounts to help in the facilitation of payments on the purchase of various products on offer. One of the financial incentives offered on the website includes the Harley-Davidson Credit that allows customers to be able to pay for various products in installments (Easy Rider 2013). Harley-Davidson Social Media Presence In light of the increasing importance of social media as a marketing avenue in the new economy, Harley-Davidson has created various blogs on which people can be able to interact as well as provide vital feedback to the company. It has also created various profiles on popular social media such as Facebook on which it has managed to accrue over two million fans, its twitter account has a following of over thirty three thousand followers, Its MySpace account has over forty thousand friends while it has slightly over eleven thousand subscribers on youTube. Harley-Davidson can largely be described as making use of the various social media marketing avenues in a subtle and integrated fashion (Zorro, 2013). Conclusion Hence, Harley –Davidson is one of the companies that have experienced the impacts of consumer marketing in relation to marketing strategies. Consumers are now able to buy products online with all the specifications that they need. This has lead to improved market for the company and satisfaction for consumers (Make a payment 2013). References; Green, M. & Keegan, W.(2012). Global marketing. New York: Prentice Hall. Oxford. Harley-Davidson. (2013). Harley-Davidson USA. Accessed on January 29, 2013, from: http://www.harley-davidson.com/en_US/Content/Pages/home.html. Jain, S.(2003). Handbook of Research in International Marketing. Cheltenham [u. a.]: Elgar. Kotler, P. et al. (2006), Principles of Marketing, 5th European edition, Prentice Hall. Lamb,C. (2012).Essentials of marketing. Mason, Ohio: South-Western Cengage Learning. Pride, W.& Ferrell, C. (2012). Foundations of marketing. South-Western, Cengage Learning: Australia: Mason, OH. Raab, G. (2010). The psychology of Marketing: Cross-Cultural Perspectives. Burlington, VT: Gower. Easy Rider. Multichannel Merchant. Retrieved on 29th January 2013 from: http://multichannelmerchant.com/opsandfulfillment/orders/fulfillment_easy_rider/ Make a payment.(2013). Harley-Davidson USA. Accessed on January 29, 2013, from: http://www.harley-davidson.com/en_US/Content/Pages/home.html. Zorro D. Harley Davidson’s Social Ride on Full Throttle. Accessed on January 29, 2013, from: http://www.wickedleo.com/2012/06/harley-davidsons-social-ride-full-throttle/ Read More