Strategic Decisions That Impact The Retailing Industry Is Disposal Income And Affordable Pricing Essay

1. Target a new customer segment that id young and always ready to try something new and exciting.

4. Control – When handling a customer you have to be in control of every situation that you are stuck in.

Income level data is a good indicator of residents’ spending power. Income positively correlates with retail expenditures in many product categories. During market evaluation, retailers look at the median or average household income, and seek a minimum number of households within a certain income range prior to establishing a business or setting prices. Another common practice is to analyze the distribution of household incomes. Different businesses may avoid extremely high or low-income areas. Some specialty fashion stores target incomes above $100,000.

My professor Evie Adomait at the University of Guelph wrote an interesting book that I am currently reading now called Cocktail Economics. As you might have guessed the book informs people about economics but is set up in a way that is suitable even for a common man. As the author mentioned in the book her main goal of the book is to inform people who think they know about economics but are actually misinformed. The authors have added an interesting and fun tone throughout the book to keep the reader entertained. The author begins the book with a story, a common story that always takes place at a cocktail party, as you. might have guessed it by the title. The books goal is to entertain its readers and interest them in the idea of the economic thought process. The book Cocktail Party

It became an issue for consumer, and they felt uncomfortable due to companies invaded consumers privacy without their consent. Another issue regarding data mining is there no clear policies around how the company uses data once they have collected the information. After Target received negative publicity regarding its original data mining approach, they change their strategy by mixing all their ads, so it not that obvious that they were spying on them. It makes customers’ to assume that everyone else gets same coupons and ads. Data mining has given Target awareness into the relationship between product sales and online reviews. Target retailers identify guests how write reviews, examining their history of purchasing and invited to write review on their products. This program was highly successful, leading Target to obtain incremental reviews and increase sales of those key products. More importantly, data mining has empowered companies to find new opportunities for growth, make better decisions to succeed business goals and safe money. The retailer industry utilizes data mining and customer analytics to support customer decisions. Exploring how collected data can be manipulated to identify customers buying patterns and increase profitability is a growing business

Table 2: Scenario framework analyse business environment and its uncertainty variables, either for rapid change or complexity.

As stated above, data mining is often used to solve business decision problems, “it provides ways to quantitatively measure what business users should already know qualitatively” (Linoff, 2004). A growing number of industries are using data mining to become more competitive in their market by primarily focusing on the customers; increasing their customer relationships and increasing customer acquisition.

First, we will analyze the targeted customer and the proposition designed by each company to attract them. In this part, there is a description of each market target and how each company has taken advantage of each unique position in the industry.

Question 1: How can an effective Customer Relationship Management program be used to identify, retain, satisfy and retain customers?

Data mining can aid direct marketers by providing them with useful and accurate trends about

1) Invest heavily in market research section in order to create market-driven products and services.

This entire process is known as marketing management " the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value" (Kotler & Keller, p.5).

Inditex ensures that its fashion is fast through its supply chain efforts. They have created new methods to enable store managers to order and display merchandise faster and added cargo routes for shipping goods. The company ships clothing straight from the factory to stores and makes two-thirds of its goods in Spain and nearby countries, compared to most competitors who manufacture most of their clothing in Asia. Inditex has their sales managers monitoring computers, which are reporting sales at every store around the world. When a garment does well or fails, they are able to quickly tell designers if they need to come up with new ideas. They also have generated

The Right Target Market One of the most important marketing functions for a firm is finding

2. Then we need to understand the customers with whom we have been successful and why.