A consumer centric approach is according to Computer Centric Solutions LLC is “the key to successful marketing initiatives and generating organic top line growth” as the consumer is brought into focus through different areas such as targeting research, brand strategy development, communications optimisation, innovation as Peter Drucker says “The aim of Marketing is to know and understand the consumer so well that the product sells itself”.1
The external factors relating to such an approach are competition, environmental, cultural and societal changes, and focusing on the consumer helps highlight these changes. For example, in competition, the threat of new entrants, bargaining power of suppliers and buyers and the threat of substitutes help create a cycle of rivalry among existing competitors.2 The bargaining power of buyers according to Jim Wilkinson can be referred to as “the pressure consumers can exert on businesses to get them to provide higher quality products, better customer service, and lower prices” which according to Porter’s 5 forces industry analysis framework “buyer power is one of the forces that shape the competitive structure of an industry”. …show more content…
This is because a buyer’s power affects the competitive environment for the seller and influences their ability of profiting as if buyers are strong the sellers can be pushed to lower prices, thus leaving the sellers with low profit potential but creating a competitive market. This transpires when there are a few buyers and many sellers as the cost of switching from one seller to another is low, since there are many sellers, and these sellers may sell similar products. As a result of sellers having homogenous products, in other to get the buyer to purchase the similar product from them, there is an incentive to lower prices, consequently increasing competition between the existing sellers of the akin products as they will be pushed to condense prices too.3 However, low buyer bargaining power may magnetise more sellers into an industry as there are potential profit upsurges. Low buyer bargaining power ensues when buyers are weak and at the mercy of sellers since their goods and services have different quality and price and only limited choices, thus making the cost of switching high as there many buyers and few sellers. Accordingly, there is no incentive to lower prices so competition is minimal or non-existent. Additionally, a consumer-centric approach in marketing helps identity cultural and societal changes. For example, Tyson Foods, the largest producer of protein products on the planet, faced two challenges which were “integrating different internal cultures and appealing to a broader need in consumers ' lives” according to Bob Corscadden, the Chief Marketing Officer. They achieved their success by the implementation of “intense and exhaustive research of consumer 's …show more content…
For instance, they discovered that promoting boxed wing products were not auspicious to some retail customers and to the brand, so they shifted their ad dollars to promoting bagged wing products and bought a two-week display instead. As a result, performance improved substantially, which earned them their deserved prestigious 2007 Category Captain Award for Progressive Grocer. Whilst receiving it Shinstine affirms “We 're constantly looking for ways to increase the effectiveness and efficiency of our trade promotion investment, while delivering more value to our retail customers. Through our use of this software application, we 've taken a much more consumer-centric approach to promotions, creating a win for Tyson, our retail customers and, ultimately, the consumer”.
The external factors relating to such an approach are competition, environmental, cultural and societal changes, and focusing on the consumer helps highlight these changes. For example, in competition, the threat of new entrants, bargaining power of suppliers and buyers and the threat of substitutes help create a cycle of rivalry among existing competitors.2 The bargaining power of buyers according to Jim Wilkinson can be referred to as “the pressure consumers can exert on businesses to get them to provide higher quality products, better customer service, and lower prices” which according to Porter’s 5 forces industry analysis framework “buyer power is one of the forces that shape the competitive structure of an industry”. …show more content…
This is because a buyer’s power affects the competitive environment for the seller and influences their ability of profiting as if buyers are strong the sellers can be pushed to lower prices, thus leaving the sellers with low profit potential but creating a competitive market. This transpires when there are a few buyers and many sellers as the cost of switching from one seller to another is low, since there are many sellers, and these sellers may sell similar products. As a result of sellers having homogenous products, in other to get the buyer to purchase the similar product from them, there is an incentive to lower prices, consequently increasing competition between the existing sellers of the akin products as they will be pushed to condense prices too.3 However, low buyer bargaining power may magnetise more sellers into an industry as there are potential profit upsurges. Low buyer bargaining power ensues when buyers are weak and at the mercy of sellers since their goods and services have different quality and price and only limited choices, thus making the cost of switching high as there many buyers and few sellers. Accordingly, there is no incentive to lower prices so competition is minimal or non-existent. Additionally, a consumer-centric approach in marketing helps identity cultural and societal changes. For example, Tyson Foods, the largest producer of protein products on the planet, faced two challenges which were “integrating different internal cultures and appealing to a broader need in consumers ' lives” according to Bob Corscadden, the Chief Marketing Officer. They achieved their success by the implementation of “intense and exhaustive research of consumer 's …show more content…
For instance, they discovered that promoting boxed wing products were not auspicious to some retail customers and to the brand, so they shifted their ad dollars to promoting bagged wing products and bought a two-week display instead. As a result, performance improved substantially, which earned them their deserved prestigious 2007 Category Captain Award for Progressive Grocer. Whilst receiving it Shinstine affirms “We 're constantly looking for ways to increase the effectiveness and efficiency of our trade promotion investment, while delivering more value to our retail customers. Through our use of this software application, we 've taken a much more consumer-centric approach to promotions, creating a win for Tyson, our retail customers and, ultimately, the consumer”.