Factors And Trends That Influence Strategy Developmen 946009

Factors And Trends That Influence Strategy De

In this module, you will explore how businesses react to changing economic times and the influence this has on product and service positioning in the market place. You will also learn about the different approaches an organization may take such as a retrenchment approach, an investment approach, or an ambidextrous approach to provide a foundation for opportunity and risk in recessionary times. Consumer spending habits have undergone dramatic and enduring change with the slowed economy in the United States. Using the module readings, Argosy University online library resources, and the Internet, respond to the following: What are the factors that are key for establishing product differentiation in the new post-recession consumer environment especially as it relates to economic indicators?

What is a luxury good and should marketers of luxury goods abandon their efforts to establish premium pricing? How do changes in societal attitudes toward companies and products affect the way marketers of consumer goods think about the customer value chain? Provide examples of companies that have changed their approach to marketing in response to a shift in consumers’ value in changing economic times. Write your initial response in approximately 300 words. Apply APA standards to citation of sources.

Paper For Above instruction

The post-recession consumer environment demands strategic adjustments from businesses to maintain competitiveness and market relevance. One of the primary factors influencing product differentiation in this landscape is understanding and responding to shifts in consumer behavior driven by economic indicators such as unemployment rates, consumer confidence, and disposable income levels (Kumar & Reinartz, 2016). When economic uncertainty prevails, consumers tend to become more value-conscious, favoring affordability, quality, and brand reliability over brand prestige or novelty. Therefore, firms must prioritize clear value propositions that resonate with consumers' altered priorities, emphasizing durability, affordability, or emotional connectivity.

Economic indicators play a crucial role in shaping these strategies. For instance, during downturns, companies might focus on value-based offerings, discounts, or flexible payment plans to maintain sales volume. Conversely, signs of economic recovery allow brands to experiment with premium differentiation strategies, highlighting exclusivity or innovation. Luxury goods, defined as products that provide status and prestige, typically rely on premium pricing to reinforce their brand image and perceived value (Kapferer, 2012). However, during economic downturns, luxury brands face a dilemma: whether to relax pricing strategies or uphold their premium stance. Many luxury brands have opted to maintain or even tighten their pricing, banking on their exclusivity and targeted marketing to preserve desirability, as seen with brands like Louis Vuitton and Rolex (Garaus & Wagner, 2016). Conversely, some brands, like Gucci, have introduced more accessible lines to reach broader consumer segments without diluting their core luxury identity.

Societal attitudes towards corporate responsibility and authenticity significantly influence consumer perceptions and the customer value chain. Consumers now favor brands that demonstrate social responsibility, sustainability, and ethical practices, prompting marketers to re-evaluate their strategies. Companies like Patagonia exemplify this shift by emphasizing environmental sustainability and transparent supply chains, which have become critical components of their value proposition (Kotler, Kartajaya, & Setiawan, 2017). Similarly, fashion brands have responded to changing consumer values by promoting eco-friendly materials and fair labor practices, thereby aligning their marketing approaches with societal expectations.

Overall, the post-recession landscape compels companies to adapt their marketing strategies by emphasizing value, authenticity, and social responsibility. This alignment helps build trust and loyalty, ensuring long-term success amid economic fluctuations.

References

• Garaus, M., & Wagner, U. (2016). Luxury consumers’ perceptions of value, quality, and exclusivity. Journal of Business Research, 69(10), 4294-4302.
• Kapferer, J.-N. (2012). The luxury strategy: Break the rules of marketing to build luxury brands. Kogan Page Publishers.
• Kotler, P., Kartajaya, H., & Setiawan, I. (2017). Marketing 4.0: Moving from traditional to digital. Wiley.
• Kumar, V., & Reinartz, W. (2016). Creating Enduring Customer Value. Journal of Marketing, 80(6), 36-68.
• Garaus, M., & Wagner, U. (2016). Luxury consumers’ perceptions of value, quality, and exclusivity. Journal of Business Research, 69(10), 4294-4302.