FASHION IS PASSION

There’s a saying that big things come from small beginnings. This is proven by Renzo Rosso who started the multimillion company, Diesel, from the back of his van. What’s the magical ingredient behind this company’s marketing mix? The answer is passion. I believe that a successful business starts from passion. Also, I think that Renzo made his business a success because he was once an unsatisfied customer.

In an established industry, like fashion or apparel or clothing, one may find it difficult to enter the market. The reason behind this is the presence of numerous competitors. If you want to win in this competition, you must stand out from the rest. You must show the market that you have a unique and valuable product. Clothing may be a basic necessity but fashion is a different story. It is considered as an art, an expression of its bearer. I think that what makes Diesel distinctive is that it was inspired from the “rebellious fabric of the 60’s and rock and roll”.¹ If you observe other boutiques, their apparel changes depending on the trends. On the other hand, Diesel, like the cited case study says, is a lifestyle brand.

Some time ago, Renzo was a disappointed customer. But he just did not sit on the couch and send feedbacks to clothing companies; instead, passionate as he is, he took the opportunity to start his own business. As Robert Keith says, “The customer, not the company, is in the middle.”² Knowing the feeling of frustration, I can say that the least thing that Diesel would want to experience is to make products which would lead to dissatisfaction of its customer; and the best thing, to connect with their lives.

Diesel has become triumphant not because of its product (because firms of the fashion industry have almost identical products), also not of its price and place, but because of its promotion, i.e. it wants to connect with its customer. “All elements of Diesel’s promotion aim to engage the customer with the lifestyle. If they like the lifestyle, they might like the products.”³ Though the company swears by its product, they may have a limited market due to having a definite product. Fortunately, they have a solution for this, which is to attract potential customers with Diesel:U:Music and ‘Be Stupid’ campaign.

There are many inventors. Some accidentally created something new but useless. Some work hard to put their blueprint into actual product. Some with a bit of luck and initiative achieved success. Indeed, there are many inventors but not all are innovators. Renzo made a product which he didn’t know would become a hit, sets an adequate price, has a van, and promoted the product through personal selling. Voila! From van to victory.

¹ Live, breathe and wear passion, The Times 100, Case Study, Edition 15

² Keith, Robert J. “The Marketing Revoluion”. Journal of Marketing. American Marketing Association, January 1960.

³ Live, breathe and wear passion, The Times 100, Case Study, Edition 15

 

DELIVERING PERFORMANCE

We have learned how “…designing an industrial enterprise [must be] from the customer backward into the factory, rather than from the production process forward…”¹, or that “Marketing begins and ends with the consumer.”², or it is wrong for the company to be “…product-oriented instead of customer oriented.”³ This is what Parcelforce Worldwide became by analyzing the market. Through research, this organization was able to develop their products in order to meet customer needs. Knowing the effective marketing mix requires knowing your market. This firm has been able to group the market (based on its requirements on speed and price) not for the purpose of targeting only one group (i.e. offering the lowest price in express parcel deliveries) but to create a variety of products to be able to serve all groups. Parcelforce Worldwide creates new services, namely, Global Express, Global Priority and Global Value. For its business customers, it considered their sending profile; perhaps because they send large volumes, heavier packages or to farther destinations.

For customers of carriers, some want it fast but some want it cheap. Pricing is very critical. It can determine the success of the business because it affects the revenue, sales and market share of the business on the market. Some think that high-priced services have better quality. So, it really depends whether the customer is willing to pay for your service or not. In Parcelforce Worldwide, it offers a low-priced slower service; at the same time a high-priced faster service. By doing so, it can increase revenue by low cost service, surpass competitors by balancing price and speed of delivery and increase market share by fast and guaranteed delivery.

The business partners of Parcelforce Worldwide enable it to distribute form UK to other countries and vice versa. Also, its numerous depots and post office branches make it easier for customers to access their service. Aside from that, their website and call centers make it even more convenient for the customers. Convenient and guaranteed delivery is important in carrier businesses. That is why some has door-to-door delivery. In Parcelforce Worldwide, advanced technology allows it to track the packages. This is indeed helpful because customers must know if their package have been safely delivered and on time.

If a company wants to get recognized, they must approach the market and be welcomed by the consumers. With the growing online market, companies must take this opportunity to let the consumers be aware of its products, especially now that the internet allows the consumer to compare a company with its competitors. Thus, the company must get attention and provide necessary information that lets their product be preferred over others. Some of Parcelforce Worldwide’s way of promotion is through online advertisements, direct mail and email. In promoting, you must know what market you want to attract (existing or new ones) and what message you want to convey.

One challenge of companies is understanding the mindset of consumers. Because of their unique requirements, companies must be able to adapt. Parcelforce Worldwide wants to position themselves as the most trusted worldwide express carrier, thus it delivers performance by conveniently providing products tailored to meet the needs of its customers at the right price with the help of its partners.

 

¹ McKitterick, J.B. “What is the Marketing Management Concept?”. The Frontiers of Marketing Thought and Science. Chicago: American Marketing Association, 1957.

² Keith, Robert J. “The Marketing Revoluion”. Journal of Marketing. American Marketing Association, January 1960.

³ Levitt, Theodore. “Marketing Myopia”. Harvard Business Review, July 1960.

⁴ Using Marketing Mix to Drive Change, The Times 100, Case Studies, Edition 15

 

 

 

Easy A on Marketing

Have you heard of Pontis Elecronics? It was the first to develop a prototype working mp3 player in 1995. By 1999, it began mass production. Three years after, the company was sold. It was due to less demand and ineffective marketing strategies.¹ Yes, it has a product; but its mistake was paying no attention to the consumers. To expound this, I adapted some arguments of Olive Penderghast in the chick flick Easy A.

The shudder inducing, however totally false account. More product results to higher sales: False. The mistake of the said company was focusing on production. Levitt’s Marketing Myopia stated, “… the product fails to adapt to the constantly changing patterns of consumer needs and tastes, to new and modified marketing institutions and practices, or to product developments in competing or complementary industries. The industry has its eyes firmly on its own specific product that it does not see how it is being made obsolete.”² Aside from Pontis Electronics, there were several others who tried to develop the mp3 player but failed. However, Apple Inc. succeeded when it entered the market. It is because it modifies its products depending on how customers would like it. It improved the specifications of an mp3 player, like capacity and portability. Until now, we can see its evolution from its first generation.

The accelerated velocity of terminological inexactitude. This just means that lies travel fast until words got wrong. After the falsehood about mass production, another emerges about population. It was believed that if there are wealthier and more people, your company can earn a success story. The only way it can earn one is through adjusting through the changing needs of the customers. Kotler suggested that “[The marketer] can try to design the social object more attractively; he can put an attractive terms on the social object; he can add symbolic significance in the social object; and he can make it easier for the market to obtain the social object.”³ Going back to Apple Inc., it did not only offered the mp3 player, iPod, but also the music software, iTunes. It did not only improve the product but presented another new product.

A lady’s choice and a gentleman’s agreement. Mckitterick stated, “So the principal task of the marketing function in a management concept is not so much to be skillful in making the customer do what suits the interests of the business as to be skillful in conceiving and then making the business do what suits the interests of the customer.”⁴ Before the company decides on what to offer, it must first know what the people who would offer them to like and will like. Techno geeks would like their music player to be able to be inserted in their pockets, so Apple Inc. made it thin. They would like it to be not just a music player but an entertainment gadget, so Apple Inc. Gave the iPod an ability to play videos, games, etc.

Not with a fizzle, but with a bang. Remember that marketing aims for profit and customer satisfaction. However, customer satisfaction should come first in order to generate profit. The business must always be mindful of the market. It does not make a product to sell it, but to be bought. It must not picture its product in a grocery shelf, but in the grocery list, better yet on the shopping cart.

 

¹ Abel, Ivan. “The Apple iPod: succeeding where others failed”. Competitiveness Review: An International Business Journal. Emerald Publishing Group Limited, December 2008.

² Levitt, Theodore. “Marketing Myopia”. Harvard Business Review, 1960.

³ Kotler, Philip. “A Generic Concept of Marketing”. Journal of Marketing. American Marketing Association, April 1972.

⁴ Mckitterick, J.B. “What is Marketing Managemen Concept”. The Frontiers of Marketing Thought and Science. Chicago: American Marketing Association, 1957.

 

K.O.T.L.E.R.

Defining means limiting; and, a question of what always seeks closure. So, it is important to restrict what a word denotes; in this way, people will know where it is applicable or what its usage is. An example would be marketing. No, this is not just the handing over of leaflets of real estate agents nor just the long minutes of bargaining with the seller. It was just a distributor then, until it became a today’s marketer. Marketing in the ancient times was more of trade or barter. Some are nomadic businessmen; those who travel and come to their customers. Usually, transmission of goods will take several months.  I was once one of those who stereotyped marketing as merely advertising, until I read Kotler.

In order to get the picture of Philip Kotler’s Generic Concept of Marketing, I made an acronym out of KOTLER. K represents Key. It is important to know the key idea in the generic concept of marketing. Manifesting the 4Ps, he stated: “Marketing is specifically concerned with how transactions are created, stimulated, facilitated and valued.”¹ Products and Price are marketing essentials just because. Promotion is advantageous. That’s why there are billboards and half-page newspaper ads. Place is everything. Why else would there be another 7/11 at the other side of the road? Or why is there no Starbucks along Avenida? Why else would Pizza Hut deliver until 1 a.m.?

Moving on, the next letter is O. There are loads of Organizations like business firms, educational institutions, and religious orgs to name some. At this point, products of non-business organization are more of services and experience, and price does not need to hurt your pocket. In a little while, there will be an election for the coming school year’s Student Council. They are using marketing, in such manner that they proclaim platforms and provide giveaways to get the votes of the students. From multimillion companies to fraternities to glee clubs, marketing happens as long as it has a product, publics and T.

“The core concept of marketing is the transaction.”² Without the exchange of values among social units, there can be no marketing. This is why product and price are musts. Next in line is L – Logic. This, I think, is what makes non-business organizations say that they use marketing; because its managerial focus eases difficulties. Then, E is for Effectiveness. At this point, a marketer becomes the manager at the same time by realizing strategies and sustaining it. Lastly, R stands for response.

I think many associates marketing with solely promotion, particularly advertising, is because it is what people see. Institutional, functional and social focuses are also of importance. However, managerial focus is of little knowledge to many because it’s an internal operation, yet very vital in making an effective marketing. Kotler gave me a broader perspective on marketing from business to non-business, from products to social objects, from customer to publics, from profit to response. No matter what its focus is, I view Marketing as a means to an end; provide and deliver commodities to the market, and seek effective plans for an acceptance.

¹Kotler, Philip. “A Generic Concept of Marketing”. Journal of Marketing. American Marketing Association, April 1972.

²Ibid.

 

 

Because Kotler is inspiring…

I also made my own version – The 4Ps of Jeepney.

First, Pasada – its trip can be considered as its product, particularly, the driver’s service.

Second, Pamasahe – the fare is the price that the passengers have to pay.

Next, Pagtawag – when the driver stops alongside the road, he shouts his route in order to persuade potential passengers.

Lastly, Para – the jeepney transports the passengers until he hails to a stop. 😀

 

Look Through the Eyes of a Customer

“The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.”
– Peter F. Drucker

Failure to meet the needs and expectations is assumed to result in dissatisfaction with the product or service.1 Serving customers should be the number one priority of firms. In order to do this, thorough research is needed to achieve the goals of satisfying the customers and generating profit. Customer service is important but should not be exaggerated. One of you may have experienced being followed and being repeatedly asked by an insistent saleslady while you were shopping. An exact opposite of this example would be being ignored by a service crew in a fastfood chain when asking for additional pieces of tissue or ketchup. These may tend to annoy some customers, thus should be corrected. Furthermore, other than the good or service to be offered it is essential to identify to whom these should be offered to.

Let us take a look on Filipino consumers. One-third of the Filipino population is poor. That’s why Filipino consumers are practical. When we like to purchase something, we will always look at the price first, quality may be secondary but also necessary. But those of the upper class, or even middle class, tend to be brand conscious. This is evident when certain products are advertised and claim themselves as the number one, best product or most effective. We like to be “in”, such as in fashion and gadgets. Undeniably, we always take advantage of discount sales or promo. For instance, during the 3-day sale or midnight bazaars, consumers rush through the nearest branch and mall traffic begins. This is just brief but commonly observed characteristics of Filipino consumers.

Now, let us take a look at how various shopping centers try to reach or present themselves to the consumers. For instance, Ayala Malls (like Trinoma and Glorietta) can serve those that belong on the upper class (through Rustan’s which sells luxurious and expensive brands) and the lower class (through Landmark which sells a wide variety of goods at an affordable price). However, one of its competitors namely the SM Supermalls serve their customers via their needs like SM Appliance Centre, SM Homeworld, SM Department Store, etc. How about the famous tiangge or bazaars? For example, those of Divisoria and Greenhills Shopping Center which sell at a very low price but some stalls have identical goods to offer.

“The mass market has split into ever-multiplying, ever-changing sets of micromarkets that demand a continually expanding range of options”
– Alvin Toffler

Segmenting enables you to able marketing and sales resources more productively by focusing specifically on those businesses most likely to buy your products.2 It is important for firms to know their target consumers so they can specifically address to their needs. Knowing who serve will make what to offer easier. Firms should closely analyze consumer purchase behavior and factors that influence it. But distinguishing your target consumer from the market doesn’t mean paying no attention to the latter. Firms should also evaluate the benefits of serving the rest of the market.

Firms, especially those that belong to a competitive market, need to have diverse and effective marketing strategies from research to promotion. It is important to have a unique way of approaching the consumers. Your product may be unique, useful, valuable and affordable; but as long as you’re offering it to the wrong portion of market, it won’t sell.☻

1Wilson, Alan. Attitudes towards customer satisfaction measurement in the retail sector. International Journal of Market Research, 2002.

2Wood, Marian B. and Ehrlich, Evelyn. Segmentation: Five steps to more effective business-to-business marketing. Sales & Marketing Management, 1991.