Marketing fundamentals and applications

Marketing

Nordstrom Marketing Strategy

The communications process of viral marketing is represented by developing and spreading promotions like videos, interactive games, ebooks, images, or text messages through social networks like Youtube, Facebook, or MySpace, or by word of mouth. The objective of viral marketing is to increase the volume of sales or to increase brand awareness by creating these viral marketing messages and by directing them towards individuals that spend a lot of time socializing online and have the ability of further spreading these messages (Howard, 2005). The most frequently used viral marketing methods are search engines, TV and radio, mobile integration, and others.

There several differences between viral and conventional marketing. For example, viral marketing assumes the customer has the possibility to purchase the product and service in case on the spot. In the case of conventional marketing, the effort is directed towards gaining visibility, not towards determining viewers to share the message. The target market and understanding its characteristics is one of the most important aspects that must be taken into consideration when establishing the communication strategy. This is because each customer segment has different needs, different motivations, and responds to different marketing channels, messages, and strategies.

The stages of customer involvement are reflected by the AIDA concept. These stages are represented by attention, interest, desire, and action. The promotional mix must be differently established in accordance with each of the stages of customer involvement it addresses. Integrated marketing communications are usually developed by companies that sell consumer goods that must reach different customer segments with different characteristics. Companies that do not practice integrated marketing communications usually address niche market segments, their target segment is smaller and characterized by common aspects.

Discussion 2

The customer segments targeted by Vans are represented by kids interested in fashion, sports, music, entertainment, and arts. The company's marketing messages are directed towards these customers through online ads, TV shows, and outdoor events. The causes chosen by Vans for its cause marketing are selected by identifying the issues of interest of its targeted customers and by helping them develop a series of activities.

The company's print ads are very important and Vans must build partnerships with the publications they appear in. Therefore, the company is interested in close collaboration with these publications. Van's communication strategy in mainly supported by the Internet because this is a quick easy way of reaching the targeted customer segments.

Nordstrom Strategy

1. Nordstrom is classified as a store retailer that commercializes apparel and related products. This type of retailers is characterized by commercializing various categories of clothing items, shoes, and accessories. Their products address most customer segments and their different characteristics. Such retailers have significantly expanded the range of products and services they provide, by introducing shopping advice services, international transportation, free make up sessions, or by introducing products like cosmetics and jewelry.

These retailers are often referred to as department stores. Although Nordstrom commercializes clothing items, department stores address diversified ranges of products like houseware, electronics, and furniture. The difference between department stores and other types of retailers is that the customers are allowed to make purchases within each department, and not in the central discount area. This is because departments are considered separate buying centers. This type of organization is intended to reduce costs associated with promotional activities, control, or service. Department are managed individually by the manager or by the head buyer. Even so, the decisions regarding these stores are made on central level. The store's top management develops the strategy regarding the items sold by the store, the price ranger, and promotions.

2. Nordstrom has established itself as an etalon in high quality customer service. Although maintaining high quality standards can be expensive, especially when competing with department stores with lower quality services but with cheaper prices, Nordstrom is determined to invest in its customer services, because they want they customers' experience to be different than that of its competitors. In order to reach this objective, Nordstrom develops and implements customer service strategies that focus on customers' needs.

Although it is important to develop such strategies, it is the salespeople and Nordstrom's staff that applies them and ensures the required level of quality of customer service. The stories described in the case study reveal how Nordstrom's staff has gone to great lengths in assisting customers in certain matters that were not their responsibility and that were not included in their job descriptions. They handled the situations in case the way they did in order to improve customer experience and increase their loyalty.

This behavior is supported by Nordstrom's management that encourages its employees to exceed their job requirements when assisting customers. From this point-of-view, there are numerous differences between Nordstrom and most of its competitors. For example, Sears is one of the department stores that do not seem to pay that much attention to the quality of customer service. Sears' merger with Kmart was supposed to improve customer experience, but the numerous complaints from customers reveal a different situation. Customers complain about the modifications made within the stores, which confuse them, and make it difficult for them to identify the products they are interested in. Also, customers complain about the fact that the staff at Sears is not able to properly assist them.

3. The retailing mix used the company ensures the combination of strategies referring to product, price, place, promotion, presentation, and personnel. Each of these components is important for the company's success and is differently addressed by Nordstrom. The strategy for each of these components is directed towards improving customer service.

The product strategy is intended to identify customer segments, their characteristics, and their needs. The quality of these products must meet the standards imposed by the company and in accordance with its loyal customer requirements. Customers have the feeling that they can rely on the products that Nordstrom commercializes.

The pricing strategy is an interesting one at Nordstrom. Although its competitors focus on providing certain deals, smaller prices in order to attract customers and increase their sales volume, Nordstrom insists on maintain a medium to high level of prices. This is because the company does not want to introduce smaller prices that would lead to the conclusion that their quality is also lower.

The placing strategy is another important aspect addressed by the marketing mix. Nordstrom wants its customers to feel comfortable within the stores, and to easily find the things they are looking for. This is connected with the component referring to presentation. In other words, the company wants to create an environment within its stores where customers can feel comfortable.

However, the most important component of the retailing mix is represented by the personnel. The company's objective regarding customer satisfaction can be achieved with the help of its employees. Their behavior significantly influences the purchase decision.

4. The retailing environment determines several challenges that Nordstrom must address. For example, the strong competition in the field is the most important aspect that the company must deal with. These retail chains develop strategies based on cost effectiveness. By introducing lower prices for their products, Nordstrom's competitors are able to attract a high number of customers. But such customers are not loyal, because they usually intend to purchase from the cheapest store.