Describe the major trends and forces that are changing the marketing landscape in this age of relationships? Dramatic changes in the marketplace are making companies rethink their marketing strategy, as it is becoming more challenging. The forces that are changing the marketing landscape can be described into five major factors: Changing economy: The great recession has caused many consumers to change their spending habits and buying attitude. This created an age of consumer frugality, which will last into the future.
Therefore marketers have to change their marketing strategies and emphasize the value of their product. The challenge is whether companies can balance their value proposition with current times, as well as enhancing its long-term equity. Digital age: Boom in technology is an advantage in the marketing landscape as it creates new ways for companies to learn and connect to their customers. It helps marketers to target consumers more effectively on a faster, low cost basis; at the same time build closer, two-way relationships.
Searches on Google are tracked to create customer profiles in order to recommend appropriate advertisements. Facebook, Twitter and mobile applications are another advantage as companies can connect with their customers on a more personal level. Rapid globalization: The advance in technology has made the world smaller, today marketers are connected globally with their customers. Our household electronics has parts coming from all over the world, and shop from all over the world from Internet retailers.
This is not a definite advantage for marketers because almost every company is involved in competition, which means that companies have to keep up an international brand image. Sustainable marketing: Many companies are examining their ethical and social responsibility for the impact of their actions. Under the pressure of environmentalist and human rights groups, companies are to take more responsibilities for their actions. They begin to focus on delivering value to society and the environment, as it will affect customer relationships in a positive way. Example: UPS, TOM SHOES
Growth of non-profit marketing: Marketing for non-profit organizations such as social marketing campaign for discourage smoking, hospitals to save ill children seeks for attention, support or even funds. Some of these organizations are in fact some of the largest advertisers in the world, competing against normal companies. Despite some disadvantages, marketers find innovative ways to connect and build stronger relationships with their customers. As an example, UNIQLO a Japanese clothing company used the recession as their advantage in their marketing strategy.
They have captured that even in recession people still want to look good and feel good, they offer exceptionally high quality product at relatively low price. But two actions the companies took that really helped them is collaboration and taking advantage of the Internet. They collaborated with a famous luxury designer Jil Sander, the collection was sold out in less than a week of its first launch. Working with large Chinese online shopping site has given them another opportunity to gain profits and increase their sales.