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Model Construction and Operation Mechanism of Non-mainstream DONG Jing, ZHANG Wensong Economics &Management School, Beijing Jiaotong University, Beijing 100044 China [email protected] , Abstract: The paper is based on the theory of consumer preference, diversification, and non-mainstream. The paper puts forward and defines a new idea of marketing—non-mainstream marketing by the concept of non-mainstream and customer personality. The paper studies on marketing mode and operation mechanism by an analysis of marketing mode and operation mechanism combined with cases, and then gets a conclusion: corporations should pay attention on the development of customer personality and consumer preference, implement the new theory of non-mainstream, and break the sale mode which is formerly singer and standardized. Key Words: non-mainstream consumer preference non-mainstream culture tail marketing 1. Definition of non-mainstream As is well known, mainstream means that it is a dominant pole and is accepted by the majority public. By application of this concept, mainstream marketing means that corporations position target groups and marketing objectives such as Standardization strategy and Pareto’s theory according to the vast majority of consumers. However, as clothing industries made a successful application of non-mainstream elements, people began to pursue personality that made non-mainstream popular once again. Non-mainstream culture belongs to Sub-culture, which has different definitions in Different industries and different academic fields. In clothing industries, they define non-mainstream culture as 【】 avant-garde clothing with those unconventional style 1 ; in economics, non-mainstream is in contrast to mainstream, which means theory or doctrine that are non-competitive and non-dominant in a certain period and region【2】. Although management scholars have been aware of the non-mainstream idea, research has only been limited to specific products or specific industries, and has not yet formed a complete system; therefore, non-mainstream has been not clearly defined until now in management sector. Because of non-mainstream culture being rooted in the development of consumer preferences and personality, the paper makes such a definition of non-mainstream culture as a sub-culture formation formed when consumers release personality and display anti-traditional values with a rebellion of traditional mainstream cultural. With the non-mainstream culture rising, producers begin considering demands of consumer personality as a basic element under technical support, so producers must change original and standard sale mode for meeting customer demands into the non-mainstream marketing era. Non-mainstream marketing is called as a marketing idea which stresses on adaptation to demand regression of consumer personality under the impact of non-mainstream culture. In essence, non-mainstream is not a signal model or strategy but a new marketing idea. The idea is guided by consumer demand and experience with an objective of maximizing enterprise value, so that enterprises really consider wishes and needs of consumers while going on marketing planning, and from consumers’ view, corporations will change passive acceptance into the initiative in order to marketing results. Non-mainstream marketing has a system of multiple objectives. Therein, the final objective is to maximize profits and value of enterprises, which is the purpose of existence and also the survival of enterprises; secondly, the basic goal is to increase the market share so that business can expand market popularity and customer loyalty. That is because sale revenue is the majority resource of profits. Marketing department do not maximize their market share and market power while establishing a good marketing image until business can expand and consolidate their brands and the basic goal; otherwise, the “third party” goal is an improvement of added value on customers— when enterprises go on sale, they not only consider the present profits but also consider the development space; therefore, 1333 corporations need a new consideration on marketing positioning and direction from consumer view, and try to enhance consumer demand for personalized experience and effectiveness as well as the added-service. 2 Marketing model of non-mainstream Generally speaking, marketing has different objectives, but their basic goal is to enhance market share and market rate; on the other hand, for enterprises, marketing considers the market positioning and direction mainly based on consumer demand and acts preferences and then makes the decision of product-making and services. And marketing model means patterns of behavior and mode of thinking adapted by enterprises when they keep on marketing activities. Behavior patterns include marketing strategy, marketing, etc; and thinking mode includes various marketing ideas. In addition, another theory is market segmentation which is proposed by Wendell R.Smith(American)in the mid-1950s and also means a classification process to consumer –market that through market research, marketing section divides the overall market into particular consumer-market according to difference on needs and desires, buying behavior and purchasing habits of consumers, so each group or even one consumer is a market segment designed by enterprises. Based on the four principles-- marketing objectives, mode of thinking, marketing basis, and market segmentation, non-mainstream can be divided into three models: customized model, characteristic model and tail model (Table 1). Thereof, customized model focuses on demand personality of consumers, and characteristic model focuses on mental preferences, while tail model emphasizes on market segmentation. Of course, if enterprises confirm and lock market segmentation as well as target groups, they must integrate various resources such as product research, production capacity and market competition. The paper will integrate these four factors to make a choice of marketing mode. Table one customized model, characteristic model and tail model Productresearch,production capacity Degree of market competition Degree of market segmentation Consumers’ demand personality mental preferences Tail model Customized model Characteristic model (1) Customized model Customized marketing model, known as the "one-to-one" model, is that corporations make use of networks to obtain consumer demand for personalized information, and then play product development on their own and flexible production capacity so as to supply unique products and service for what each consumer wants. Customized model is characterized by the use of network information system to record information of every customer. With the use of information system, enterprises can keep two-way contract with customers, in order that enterprises can clearly understand the specific request on products and services of each existing customer and potential customer. Then enterprises go on a new design of product and production in accordance with these specific demands and requests, and they modify products with feedback information for customers to provide personalized products and services. For example, they are practitioners of customized model and also beneficiaries such as Motorola pager production workshop, "Buick Vehicles" production line in Shanhai, Dell assembly line, Reeves jeans shops, and the Ritz. (2) "Characteristic" marketing model Characteristic model is based on some common characteristic of customers or characteristics of related matters (such as age, size) to divide consumer groups, tracking and designing sales model of products suitable for consumer hearts. The advantages of this model are that enterprises can make use of their own classification they have set to divide consumer groups and to track designing product line. If so, those enterprises will be more conducive to enhance consumer loyalty and strengthen emotional ties between target groups and the brands for their purposes which are to serve markets and also create a 1334 new potential market on the basis of the original market. For example, companies such as cosmetics can especially design products line for women born in the 1970s. These products line include the products of all ages in use: young series, middle-aged and older series. Many large companies will guide customers to choose their products for improving customer loyalty according to the existing customer information, and make a declaration “especially design for somebody”. (3) "Tail" marketing model In the "U"-shaped curve, tail is also called as the edge of the curve, so tail model can be described as edge model. It means, in the fierce market competition, producers make full use of the secondary market as the chances to focus on, and study the psychology and behavior in the costumers for meeting their demand, making a result that a product can be formed without being replaced for avoiding strong competitors (Figure 1). Tail marketing makes companies understand their own advantages and target groups more clearly than before who have the same characteristics of the demand. Because of these traits in tail model, enterprises, especially small and medium enterprises, can make a more clear marketing objective, and then make an in-depth understanding of target groups to confirm the consumer personality; and based on these customer demand requests, enterprises formulate a marketing strategy and product sales, so that they can acquire market share while improving product visibility in the niche market targeted. There are different applications in marketing practice to this model; the well-known niche model is the flexible application of the tail pattern. In the 1980’s, scholars in the United States introduced this “niche model”. “Niche” has a meaning like this—sticking in a pin wherever there is room, so niche model is called as “marginal marketing”. This marketing mode regards a small piece of the market (niche market) which competitors are not concerned about as a specialized service object, and tries to meet a variety of demands for products so as to form market products which are not replaced by other companies. Niche model has the traits of timeliness and practicality which makes it popular in SMEs, and many companies made a success with this model such a good example as Mengniu. Mengniu was a very small private enterprise, and at the beginning of undertaking, Mengniu did not choose to give Yili tit for tat but choose to the weakest product of Yili—Li Lezhen, then Mengniu tried to make this market bigger and stronger, so at last Mengniu kept a footing in milk market of China. Until now, Mengniu gave Yili tit for tat not the product of “Li Lezhen” but the product of “Bai Libao” and “yoghurt”. Consumer quantity Fierce competition Tail-weak Tail-weak Figure 1 tail-marketing model 3. Operation Mechanism of Non-mainstream Consumer preferences and demands personality plays a core role in the process of marketing mechanism. Consumer behavior theory holds if customers go shopping, the root cause of decision-making is internal stimulus such as psychological preferences. Buyers will probably make a buying behavior until they have some awareness of demand under external stimulation such as marketing activities. The whole process is demand -- motivation - cognition - buying behavior. It needs another important factor for the realization of the process: the target market. During the end of the 20th 1335 century, the world entered into the wave of liberalism which brought into pluralistic era not only social or business but also politics or economy. Under the background of environmental change on culture and industries, companies build pluralistic goals, and because of changing demands, enterprises have to se up information system of consumer transactions. Based on the guide of customers’ demand to position target market, enterprises should apply comparative advantage to confirm market positioning for avoiding opponents and distributing resources. Before enterprises implement non-mainstream marketing, they need correctly analyze existing resources, capabilities and external competition in the market, and then provide customized products for customers after grasping demand preferences. Therefore, companies need focus on understanding of needs and personality preferences of each customer, and according to these information design product concept to launch marketing. If the result in the test marketing reach to the expected market rate, that bears out that design concept is feasible and enterprises can carry out production; on the other hand, if market rate is not satisfactory, salesmen should provide unsatisfied feedback to enterprises so as to design new products until the goal of customer satisfaction (Figure 2). When companies receive feedback, the whole process constitutes a closed-loop system of value chain, so we can understand consumer dynamics, improve management efficiency and reduce logistics costs. Customer feedback Customer information system Design product Choose concept distribution Unfeasible Customer feedback Product test Figure 2 the closed-loop system of value chain of non-mainstream marketing operation mechanism 4. The Case analysis based on the operation mechanism Hong Kong CSL is a pioneer in the field of mobile communications. She launched mobile communications services back in 1983, and now she offers GSM / WCDMA mobile network. CSL is regarded by public as the first supplier to adopt the clear strategy of market segmentation. Trough the two brands—“1010” and “One2Free”, CSL provides different mobile services suitable for customers’ demands. The paper will analyze operation mechanism of non-mainstream marketing with the CSL case above. (1) The construction of customer information system Before CSL designs the brands, it makes a detailed survey over the existing and potential customers, not only including the mobility, demands of voice and demand factors but including personal factors such as daily life, the purchase psychology and use mobility. According to this information, CSL builds up the information system avoiding the information asymmetry between company and customers. (2) Product positioning 1336 At first, CSL depends on mobility to divide customers into two types: liquidity and non- liquidity. Secondly, CSL makes segmentation on non- liquidity market based on such factors as the mobility, voice and daily life, dividing into two niche markets: “business group” and “high Value social group”. Business groups focus on success, personality and taste, so CSL designs “1010” directed at this group to show “I am number one”; aimed at high Value social group focusing on freedom, personality and trend, CSL specially designs the brand--"One2Free". If so, young customers can recognize their own group and freedom only from the name of brand.”2” is the gesture of “Victory’ standing for pursuing freedom. And these brands match CSL’s resources. (3) Product identification It needs recognition of consumers if products reach market rate. Achieving the expected goal, CSL offers different service options with the two niche markets (Figure 3). Through various marketing activities, CSL achieves the expected market share, showing the success of product design. Service Charge choice (Hong Kong dollar) After-sale service Advertisement Community service Figure 3 1010 Fees from 360 to 1,480 1010 Centre, personal assistant services Pianist playing music Customer Club One2Free Fees above 228 -----Message story ------- 5. Conclusion Modern marketing has entered into the stage of the consumer-driven market and organizational structure after experiencing two phases. With the impact of non-mainstream culture and the research on consumer behavior, non-mainstream idea is attracting more and more attention of industries. Seen from the case above, enterprises have begun to follow the personality characteristics and preferences of target group for designing and selling products, through the overall grasping the "personality" to break standardized sales model and implement "one-on-one" services, enterprises will create a new opportunity of market. References [1] Xia Wanchen. Infiltrating of non-mainstream culture into design concept of contemporary costume [J]. Package world.2005.4 [2] Jia Genliang, Cui Xuefeng. the mainstream and non-mainstream in Economics: Historical Investigation and China Situation[J]. Journal of Hubei Economics Institute. 2006.2 [J] [3]Yang Dongwen. Finding model-- Business Transformation and Business- model upgrading [J]. Sales and Marketing. 2007.6. [4]Nie rong. Culture: to accelerate marketing[J] The domestic and foreign corporate cultures. 2007.7 [5] Philip Kotler. Marketing Management[M].Shanhai: Shanghai people Press. 1999 10 [6]Lei Minghua. Research on hotel customization based on Niche strategy[D]. 2003 a master's degree thesis, Zhejiang University. . . 1337 . .