Six Strategies for Successful marketing
Six Strategies for Successful Niche Marketing Arun Kaile Long tail marketing is a method to grow sales while reducing the cost per sale by targeted approach, optimizing product supply chain to niche markets. This approach allows them to sidestep the competition in huge open markets. Offering products as per the customer’s preference within their disposal through appropriate distribution will reduce marketing costs and increase sales margin. The following six strategies can be implemented by a company to gain good profits for sales of their products and services Target Carefully: Identifying markets where there is a distress about the existing products or the consumers are in need of a new product for their own purposes.
Such a market acts as good target, and the product that would be offered as a substitute to existing product or new product should be better in terms of consumer’s preferences and performance. It is not easy to find target markets, but they can be found through good research and study to fulfill the customers liking. Listen to you Customers: There are lot products that are not advertised, but the consumers know about these products. How? It is through online rating and mouth publicity about the products. A company should always listen to what their customers have to say about their product and act immediately to make it better. The advantage of online ratings and comments is that consumer’s state their likes and dislikes about the product and that feedback will help the producer to act and make the product better as consumers liking.
The great American beer festivals in which, the small brewers participate every year to approach the professional critics and passionate beer drinkers. Control Production Costs: A company might offer a wide range of products and variations within a product. But it is not must for the company to have inventory of all the combinations, variations offered in the catalogue of the product. When a customer places an order for what he desires for with including variations, the production line can then react to the order by assembling everything.
Hence by optimizing the production line, process production costs can be reduced and customer can be offered what he wants. Ray-Ban offers a variety of sunglasses in shapes, colors and lenses. It need not manufacture all combinations and have an inventory, but can make it when a customer orders for it. Control Distribution Costs: Distribution costs should also be controlled. It is hard to forecast the demand for product which ordered wanted by customers in limited quantity. But the company can react to customers demand when it is ordered.
Flexible inventory allocation is another way to keep distribution costs under control. Shared distribution and selling products online are also other ways to control the distribution costs, given the availability of product as customers need is properly regulated. Some Apparent Losers are Worth Keeping: With the advancement of technology and changes in trending markets, many products that were good till last year might become obsolete and not required any more. But eliminating such products out of the offerings is not a good idea. It is ok to retain them for a certain period of time, because they might contribute to the tagline of “A-Z services”, or “we have everything”. Amazon retains a lot of old books are rarely ordered or not ordered anymore, but Amazon now acts as a centralized location for all books and someone down the line might need those books someday.
Prune your Portfolio Ruthlessly: A company might have started with many variations and offerings of its product. But some of those variations within the product are not in demand at all due to change in trends and times. So a company should be able identify that there is no more demand for that product variation and stop its production.
Computer mouse manufactures should now focus on producing optical mouse (cheaper and easy to use) than producing the old style roller ball mouse. By carefully harnessing and implementing these above mentioned six strategies, the company can generate good amount of products with lower production and distribution costs. Consumers of today have more knowledge about various products and are careful in choosing the right product for their needs with the available options and various brands in market. So a company should really act as per the consumers/customers choice and fulfill their requisites. Example:
Netflix opened up a website that has a large stream of movies with different genres and many titles. Buy having everything online and unlimited access, it eliminated the distribution (delivery) costs to customer, makes suggestions to audience based on their interests(targeting customers), receives feedbacks through reviews, suggestions and adds new titles like Foreign movies and ESPN sports documentaries, TV shows etc. It retains even the least watched/searched titles, just to add to its collection and reputation of the firm and it can act as a centralized location for all movies one day.
Before there was this manual process where the customer has to go to a store and pick the DVD or movie they liked and had to return it back within a timeframe to avoid extra charges, but with entry of Netflix it has eliminated all these steps with the help of technology and relieved people of their movie watching woes. Netflix now has to focus on only adding more titles to it movies collection and maintaining its servers.