They do not want to be insulted like Ellen joked, so they should use the product to prevent it. Ellen and Sofia’s commercial uses humor to sell their product. Queen Latifah tells her audience that they can save time and money by using the product she is advertising because it can save them time and money (Queen). They also use the tagine “Department store beautiful for less” (Drew). They are trying to convince the audience to buy the product by saying that it is just as good as department store brands, and it is cheaper than the department store brand.
When a firm has a larger output, the firm is also hard to manage and this brings extra costs. Eventually, when the firm has reached a certain size, these extra costs will outweigh the marginal benefits and thus there are no cost benefits anymore (The Economist, 2008). Economies of scale can be internal or external: internal economies of scale are cost advantages for the specific firm, regardless of the industry it operates in. External economies of scale are economies that are beneficial because of the industry a firm operates in (The Economist, 2008). In the fashion industry, brands like Zara, focus on economies of scale for internal production activities that are cost advantageous (Christopher, Lowson & Peck,
One of the more noticeable weaknesses is the cost of most of their products. Price conscious customers such as me are more than likely not willing to spend almost $100 on a dress shirt. This may result in customers going to other department stores that have more affordable products. Other department stores have more competitive prices compared to Nordstrom. Department stores like Macy’s have been bringing in brands similar to what Nordstrom sells, and will more than likely have a better sale price compared to
Nordstrom distinguishes itself from other retailers by positioning itself as an upscale fashion store with outstanding customer service, and its multichannel approach. Many of the same clothes offered by Nordstrom can be purchased elsewhere for less money. However, Nordstrom knows that you can’t get the same level of customer service anywhere else, and people are willing to pay more
Customer loyalty has been increased by development of reputation and brand name which has helped in reducing the price elasticity of demand. Wal-Mart also offers guarantees and return policies which assure the customers of their purchase. Method of providing guarantees and warranties also act as a barrier to entry because new entrants also provide high quality goods and offer customers competitive services which are often very
A consumer’s buying behaviour goes hand in hand in this type of marketing mix. To some the cheaper the product the higher percentage they will buy it. But to some the expensive the product the more quality they could benefit from. The bottomline is how the consumer perceived the products in consideration with price. But according to study consumer oftenly buy the cheaper once.
Yet, there are strong entry barriers ranging from the large investment costs needed to secure the high quality inputs and technology needed for making goods in this market, the cost of branding, lack of expertise in quality management as well as relationships needed to distribute items produced. For these reasons, the threat of new entrants is significantly reduced in the luxury goods industry. Availability of substitutes The luxury goods industry has a variety of substitutes ranging from counterfeit luxury goods items to accessories available on the mass fashion market. These substitutes, however, are selected on their basis of attractiveness and price yet “knock off” products are selected in the case where those in their social circles do not readily identify them as counterfeit since prestige is what the luxury goods market thrives on. The availability of substitutes is thus a moderate force since reputation is a major reason for individuals purchasing luxury
But as it was understood above, globalisation as its pros and cons. And with all these advantages, faster and cheaper it is not always suitable and appropriate. In the past years, our society has adopted a consumerist style, one example it’s the clothes we buy and wear. Fast-fashion has been a preoccupied subject nowadays. Fast-fashion clothes are made from popular trends presented in runways of well-known brands, they are supposed to sell quickly at prices incredibly low.
In my opinion I think that David jones targets a vast amount of their products towards those with a disposable income. David Jones would target those from ages 18-65, as those are likely to have jobs with a reasonable income to afford the company’s products. The items that David Jones sell is those of reasonably high end brands e.g Chanel, Dior, Versace, etc. They do also offer some mid range brands such as Country Road and MINKPINK. These brands particularly target those with a high income so the prices of their products tend to be more expensive than Target or Big W. These high end brands majority of the time produce a good quality item, leaving the consumer especially the younger ones wanting more.
Its aim is to delivering some value to the customers so they purchase or sell goods and/or services. Advertising, however is one of many tools used in marketing to reach and inform consumers. Of the four P’s in the marketing mix, advertising falls under ‘promotion’. Some other marketing tools are public relations, sales promotions, directing marketing and personal selling. There are various types of advertisements, among them political, public service, retail and directory.