Nordstrom Marketing Strategies Since 1901,

Nordstrom Marketing Strategies

Since 1901, Nordstrom has traditionally been associated with the high end retailers that deliver luxury goods and clothing to consumers. However, over the last several years the company has been evolving with the changing economic landscape, by opening a number of different discount locations to include: the Nordstrom's Rack Stores, Last Chance Clearance Stores, Jeffrey Boutiques, along with the online and catalogue sales. ("Nordstrom," 2010) This is significant because it shows how the high end retailers have to use other strategies to offset the cyclical moves that accompany the industry. To fully understand how Nordstrom is adapting to such changes requires examining: the marketing environment, the positive or negative impact of these forces upon the company, ways that the company could take advantage of these different marketing forces, examining the foreign market entry strategy and a possible distribution channel that can be used to reach buyers. Together, these different elements will provide the greatest insights as to how the company is evolving with the changes that are taking place in the retail industry around the globe.

Since Nordstrom's competes in the U.S., give an example of each of the marketing environment forces (political, legal, and regulatory; technological; social; and competitive and economic forces).

Nordstrom has a number of different issues that must be wrestled with, as a major player in the retail industry. Where, various political, legal, regulatory, technological, social, competitive and economic forces are driving the company to improve the business model. This is because many of these different issues are: interconnected with one another. The different political issues can affect the company's overall bottom line, based upon changes that could occur in the law. An example as to how this could affect the company would be: with the passage of the Credit Card Accountability, Responsibility and Disclosure Act of 2009. Since the company offers different credit cards to consumers, means that they will be affected by these changes. ("Nordstrom," 2010) the above example is also tied to the different legal and regulatory issues that the company will face, as the new law will mean changes to the different rules / procedures that will be in place. (Prater, 2009) Nordstrom's is using technology to be able to offer consumers larger discounts than competitors, through their web site. The way that the company is responding to social changes is through the large discount stores that they are opening around the country. This addresses the various economic and competitive changes that are occurring, by giving the company a new market that they can cater to, the middle to low end consumer. During times of economic challenge, this strategy is allowing them to build stores in locations that were once very difficult such as: New York City. (Duff, 2009)

Discuss the positive or negative impact of the forces on marketing the department store.

The strategy that the company is using is having a positive impact on the marketing department, where they have a larger base of consumers that they can reach out to. This effort combined with the favorable brand image, is allowing the company to compete with others that are offering similar products to middle end consumer such as: TJ Max or Ross.

Recommend how the company should take advantage of or respond to each of the marketing environment force examples (political, legal, and regulatory; technological; social; and competitive and economic forces).

To respond to the different regulatory changes, the company would have to follow the provisions that are stipulated in the new law. This would means increased legal consultants and procedures in place to ensure compliance. To respond to the changes in technology, the company can begin building a following for the discount stores on Face book and Twitter. They can also offer special discounts to those who are shopping online through their I Phones or Black Berries. The social networking would help to create a core group of die hard Nordstrom consumers, similar to what Apple has, which would address various social issues.

Assume the company is planning to open stores in a new foreign market area, Mexico. Recommend an overall promotional (integrated marketing communication) strategy to support the market entry (major actions, general sequence).

For entry into the new market, Nordstrom would need to show that they offer quality and affordable prices. The various discount stores that the company has would offer this to the low to middle end consumer. Then, the company can create select specialty stores that will cater to the wealthy. All of this will begin with a massive promotion and a brand awareness campaign that would commence at least three-month prior to the opening of the first store. At which point, the company can build the image, through all forms of the media.