Understanding How they Include Consumer Behavior Issues in their
Management and Marketing Mix Operations
Trendy, hip and classy; all these three specifically different descriptions of what fashion-bags are all about could describe the very products offered by the Bag Borrow or Steal online company. The organization offers a unique concept for those who want to engage with their business. One is through actually buying the product they offer, another is through the rent program and the last option is to actually resell the bags to another market likely making an alliance with the company through retail agreement. These options are specifically created by the company to extend the market that they serve. It is a well-known fact that when it comes to buying designer bags, only a specifically small sector of the market that could accept such an offer. Being in the business to serve only this small sector of the market would likely be a less-inviting aspect of operation for the business, especially that there are several competitors in the market that have already been trusted by the exclusive market that is actually able to buy the items mentioned. This is the reason why Bagborroworsteal administrators thought of expanding the services and products they give to the stakeholders they hope to influence. In the discussion presented herein, a distinct analysis of the management-marketing mix that the organization uses and how they inculcate the element of consumer behavior in the process of creating their marketing and promotion approaches shall be given specific attention to.
Luxury bags are noted for their exclusive reputation of being based on exceptional design and quality. The name of the designers, carried on by the products further brings higher value to these items. Among the top brands of luxury bags sold in the market today are the ones from Louis Vuitton, Celine and Chanel. Finding out about the popularity of these particular items in the market amidst the price-rate they are known for, the creators of Bagborroworsteal knew that their approach to the matter would best be appreciated by the market; they simply needed to find an effective way of getting the attention of the market through a different strategy compared to that of their competitors. This then brought about the idea of developing a new sense of letting the market get their hands on the new and sleek design of bags from the three top brands in the fashion industry. Instead of simply posting the products online and letting the clients just pick what to buy, the company thought of something else; the administrators that considering the price of each bag, only a few members of the market would actually be able to buy the items. To extend the organization’s capacity to influence the market, the administrators thought that it would be easier to entice the public to buy the bags through giving them personal incentives. One is through reselling. Given at least 20% discount on each bag, the buyers of the company could actually resell the bags at higher cost and get at least 20% or more of commission from the said sales. Another option is through borrowing. The borrowing process involves clients choosing the design they want and putting the said bags up for borrowing agreement, they shall pay a rental fee that would account for the length of time that they are supposed to have the bags. They can choose from either a week, a month or at least six months and after such time allowance is done, they can repack the bag and send it back to the company through any UPS drop centers available. For those who actually want to buy the bag, they are given extra incentives and discounts, a matter of appreciation for their decision to choose the company for their purchases. This operation has its own pros and cons and so far, the company gets much benefit from the said system and has even made it possible for the organizations to provide the friendliest options to luxury-bag enthusiasts in the market.
Product and Branding
As mentioned earlier, the product brands chosen by the company have an already withstanding reputation in the market. Likely, it could be understood that because of such background on the products they offer, it is products that would actually sell themselves. The operative strategy that is taken into account by the company is what makes them different. Creating an intriguing name for the organization such as Bag Borrow or Steal creates a buzz in the market, allowing prospect buyers to actually check out what the website has to offer. To note, it is the service and the options of having a luxury bags that makes this specific business extraordinary.
Women, mostly from ages 19 and onwards are actually considered as the primary stakeholders of the organization. These women are of course noted for their desire to be known within a specific status quo. Some on the other hand simply want the comfort that a designer bag gives especially when it comes to fashion and functionality. Hence to serve their desire, the company has created a process that would specifically fit their needs and their actual capacity to own such type of bags. As mentioned earlier, these bags are pricey; a reason why the target market of luxury bags offered in the elite society are usually seen to be used only be the ones who have the money to buy them. Those who may not have such amount of money to appreciate these products end up settling for supposedly ‘high quality’ imitations coming from other producers. The distinction of such bags from the original ones, however, is undeniably obvious.
Hence, it is assumed that the target market that the company aims to influence are those who may feel they can pay for the original ones, but at a lesser price; or those who feel the need to simply flaunt the bags, use it for some time and have it returned simply because they want something new again after a certain length of time. Serving the needs of these clients is essential especially in keeping the operations of BagBorroworSteal on the go. Having an online portal for transactions, the organization hopes to reach out to all possible members of the market they might be able to serve.
Social Media and Marketing
In the aspect of finding the most practical ways of affecting the market and getting the attention of the right people to appreciate what they want to give, the company uses social marketing to make sure they get the right ones and the prospective buyers to check out what they have to offer. The company does this successfully through engaging in extensive social marketing operations. Social networks such as twitter, instagram and facebook are among the most common social portals the administration uses to make sure that their products capture the attention of the people they hope to sell their products to. To make sure that the appeal would produce higher sales result for the business, the administration takes into account particular considerations which include the following:
Incorporation of Consumer Behavior in Marketing and Promotion
Consumer behavior is an important element that defines whether or not a particular marketing approach would be successful in gaining the goals it has been founded upon. The actual attitude of the buyers for whom the products are made for actually create a distinct indication on how the marketing process should tread. For BagBorroworSteal, there are three particular models that are considered when it comes to identifying the primary consumer behaviors that are likely to determine the success of the market campaign that the organization uses to entice the market they hope to serve accordingly. These approaches are known as follows:
Economic model of analyzing consumer behavior
What is the price-range that is accepted by the target market considering the product that the organization offers?
As noted earlier, the market the organization hopes to serve specifically know the actual price of luxury bags; they know how much original designs and originally produced bags are priced. However, the market targeted by the organization are those who would like to have the bags, but they cannot pay as much as that of the original ones. Offering them with a lower price and other options of actually obtaining the bag specifically gives the organization a better edge in defining their role in the market as the bridge that gaps the distance between designers and their avid fans who simply cannot attain the items based on traditional pricing and selling options.
The borrowing-option is one risky step for the company. However, it could not be denied that its application has been more than just extensive in creating better sales revenues for the organization. It should be taken into account that the rental fees for the bags being borrowed are also relatively in parallel with the quality and brand of the item. A deposit is also kept by the company as means of protection [this amount could be retrieved later on by the borrower upon returning the bag]. This way, the enthusiast of the product need not worry on whether or not they are going to be able to get their hands on a new design just because they may not have the full budget for it. They would also have no worries as to how they are going to manage luxury bags that are piling in their closet because they simply need to return the items once they want a new one to use.
Psychological Model on Analyzing Consumer Behavior
The satisfaction that luxury bags provide these individuals is considerably beyond compare. For them, such feeling is essential in their desire of feeling fulfilled, accomplished and complete. Even though it might seem a little bit materialistic, these women [and some distinct men] actually find it essential for them to gain access to such items as it identifies them with particular members of the society.
Another psychological element defined through the psychological model of analyzing the consumer behavior of the market the business serves, is the ideal presentation on how these bags considerably provide a particularly important function that the individuals need to make a name and create a respectable reputation among their peers.
Responding to the desires of their clients and giving them the chance to experience the fulfillment of their hope in having the chance to own a reputably branded bag is an essential part of the strategy. This approach makes the business rather popular especially to college students who may want to use the luxury bags but have limited financial capabilities to own one.
Consumer Behavior Model
In this aspect of analyzing the consumer’s attitude towards the product, the administrators take on the cross referencing on how the economic and psychological aspects of analysis could be put together to create a distinctively effective approach in getting the attention of the people. Most often than not, the administration and marketing staff of BagBorrowOrSteal try to make the ends meet, to make sure that the market’s demand is met accordingly with what the company is ready to offer. Creating programs that would make it easier for the product’s enthusiasts to enjoy what these items provide them with allows the organization to extend the number of individuals it serves. For instance, those who choose to buy from the company and resell it as part of their own business could do so and earn accordingly from the said approach.
As of now, although women are the primary members of the general population who appreciate such products, men are also known to give ample interest on the matter, basically for the sake of business or for the sake of personal satisfaction. Although the product lines from the three brands dedicated to men are few to count, the end-products released for the male population are rather unique and trendy as well as practical for men to use. This is the reason why through the branding and adjustable marketing operations of the marketers of Chanel, Celine and Louis Vuitton, the organization also gains a desirable benefit from their operations.
Through the utilization of the three primary approaches to consumer-behavior analysis, the organization adapts to the hierarchical model of defining the organization’s approach to the marketing that they impose through portals of social media and their own website. This process involves the following elements of product recognition:
Noted as the General Model of the Hierarchy of Effects (Matsuno, 5), the diagram herein shows how BagBorrowOrSteal tries to entice the attention of the target market. Since the approach used by the company is unique, it could be understood that the general population of buyers do not know what they offer. In this case, the necessity of making sure that the people know about their approaches to business is, creates a great impact on however they are recognized and their product accepted in the market. To do this, the company release several press release articles that would get the attention of the readers and post a link of these writeup s on their website and social network accounts.
Once the people [the market] become aware of what they offer, the organization explains the system further to the clients through online connection. The company welcomes queries and clarifications from their followers and connections in social media. It is through these threads of comments and messages that particular issues that might interest the buyers could be resolved and given response to. Doing so, the approach of the business becomes transparent thus allowing the clients to develop knowledge as well as trust towards what the organization could give.
When knowledge is present, the clients could make an informed decision on whether or not they are going to accept what the company offers them with. Asking themselves of whether or not they like the product, or would it be beneficial for them [for whatever personal reason they may have] the clients would be able to make a decision. If the decision is positive then it could be assumed that such knowledge developed into actually liking the product and later on being specifically convinced that they need the product and that it will give them particular benefits. Once all these considerations are taken into account, there is no reason for the client not to buy the product. Repeat transactions with the business are kept intact through effective service and proper delivery of transaction promises. With more satisfied customers coming back for more of what the organization has to offer, it is expected that the effective impact of ‘word of mouth’ would further develop the instance by which the business and its unique offer to loyal customers would gain popularity especially in social media. Constantly updating their live feeds and their promotional posts in their social websites send immediate alerts to their connection which again sends alerts to whom their connections are connected with. This process enables the organization to make use of online marketing at its finest course; a distinct manner by which technology and communication aids the success of organizations like the BagBorrowOrSteal.
Generated Response from Target Market
According to the current reports of the Bloomberg Business Week (Lacy, 2006), the company has already garnered at least 12million of sales in 2006. Such number of profit is expected to have increased yearly up to this date. The report continues to note that among the possible sources of the company’s success is its unique approach to serving the clients’ demands. Client-centered, this is how the company described their approach in business. Through knowing the consumers’ behavior and the changes that are occurring every year, the organization is able to fashion its programmed offers to the public thus allowing them to experience the actual course of satisfaction that is taken from having ‘that exceptionally unique and classy bag’. Although the company does not offer a common commodity for the market to appreciate, it is observed that bags, as part of the fashion industry, are expected to continue gaining popularity in the years to come, especially in line with the changing condition by which social status quo is identified through the emergence of new fashion designs including bags and other accessories that come with it. In relation to how they present their campaigns and promotions to their clients through social media, it could not be denied that it has been highly effective to utilize a sense of appeal. Every trend takes on a distinct appeal that the market is supposed to give attention to; using such appeal helps the company to get the attention of the market and be more effective in identifying how they can support the demand for the products and bring the attention of prospective buyers to what they can offer.
The utilization of consumer-behavior analysis approach in determining what the clients want has helped BagBorrowOrSteal to create a system that would specifically be appealing to the target market. Knowing who they want to serve and what these individuals expect and desire from the company, BagBorrowOrSteal was able to create a unique strategy to make sure that they get the attention of their target market and have them retain their interest, thus developing loyalty among these clients. This approach has ensured the company of a long time source of income, a particular element that makes the organization one of the most celebrated and recognized online websites that became successful in adapting particularly risky but effective approach to selling and promoting their products. It is expected that such approach, if applied practically along with the definition consumer-behavior to be among its primary foundations, could bring the company into higher grounds of recognition. At present, the organization is being criticized when it comes to delivery and shipping issues; given the chance to fix such operational shortcomings, it could be expected that the company is looking at a rather robust future that would give them the chance to dominate the market further.
Bag Borrow or Steal Website. http://www.bagborroworsteal.com/. (Retrieved on February 24, 2014).
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