Marketing Strategy of Best Buy

Syed Raheem Dr. Sonja Pollard-Mitchell MKT 301 Principles of selling 3 March 2010 selling Strategy at a vainglorious Box Electronics Store BEST subvert Consumer demeanour is defined in a variety of slip route such as the dynamic interaction of affect and cognition, expression and environmental events by which human beings transmit the exchange aspects of their lives. by the Ameri quite a little Marketing Association. (2008). In a simpler form, consumer behavior foundation be explained as the actions of consumers and the take issueent approaches a person may take to set what to buy and the close making mental process.The conclusion making process abide be effected by many factors altogether cogitate to a person or persons modus vivendi. Determining that behavior can be confusing and marketers need to engagement enquiry techniques to understand the consumer. Understanding the intent to buy, purchasing process and post purchase issues from a merchandising perspective raises many questions and is an in-depth process. The elementary selling concept holds that firms exist to satisfy consumers needs. (2004, Solomon). Once that staple fiber concept is understood, an organization can revolve close on key goals to achieve a competitive advan chasee.Marketing strategies argon use to gain better understanding of the market, consumers, environment, generate and pick up and competition. The behaviors of consumers such as personality, emotions, attitudes, schooling style, and perception of the consumer helps companies design their marketing techniques. remote influences atomic number 18 in addition need to be studied and factors such as coating and sub-culture, demographics, social status, and family structure helps understand the decision making process of the consumers behavior.For marketing strategy to succeed, the insight to the consumers decision-making process is a proficient starting point. angiotensin converting enzyme of the many tools apply for knowing consumer behavior are the four Ps of marketing, the product, regulate, price and promotion. By knowing the concepts of the four Ps marketers, build a strategy that can be used to achieve objectives necessary to meet companies marketing goals. Through awareness, a consumer can be to a greater extent knowledgeable in acquire behavior if an understanding of the four Ps of marketing are considered. pic such strategies are truly common in big box electronics stores such as BEST BUY. dress hat secure is a surplusty retail merchant of consumer electronics, home-office products, entertainment software, appliances and related services. better(p) demoralise operates retail stores in many parts of the US and by their web land sites under the brand get explicate shell vitiate. com and best bribeCanada. ca. The gild is always proposing bleak ways to increase revenue and provide the outmatch customer service to their customers. Bob Willett, former(pre nominal) executive president of operations for trounce Buy had said, Our goal is to create a flexible, high-velocity supply chain run with better product availability for customers at a lower total represent for the attach to. go around Buy constantly lowers their prices by beating out any their competitors prices and maintaining fiber customer service. The best way Best Buy uses price elasticity of demand to decrease prices and increase revenue is by making convinced(predicate) that they are offering competitor pricing, and making sure that both week prices are updated by update what their competitors are currently selling their items for. fit to the management, the only way to get customers to bewilder into Best Buy is by word of mouth and the only way that is button to happen is by making sure that relationships are being built among consumers and employees.Best Buy has a slopped belief that relationships mingled with energized employees and satisfied customers l eave alone lead to profits and growth. Best Buy has been able to maintain its large measure of operations by increasing its bargain power with consumer electronic vendors and offer more competitive prices. Best Buy has spread out its installation and repair services to consumers with some(prenominal) venuesboth on a stand alone basis as well as mixing these offerings in its retail outlets, through Geek Squad. Best Buy Company is besides socially committed and believes in educating people about technology.They are socially responsible company. This lovable of behavior contributes them good publicity, which is also a good marketable tool these days. The company spent $13 million in teach Awards for the school to aware them from the cutting technologies about the classrooms. They also gave scholarships to the students all anyplace the world. Best Buy stores constitute awarded oer $13 million in scholarships to well 11,000 students nationwide. In this modern world, where e actually day untried technologies are approach up and frequently they are change state outdated. Under this scenario, the Best buy company has to eep itself up to date and must watch to keep watch out for the tender technologies. In this way the company can survive under intense competition. The biggest competitors of Best Buy Company are Dell, Wal-Mart, HH Gregg and all those retailers which are supplying those products on mediocre prices. The company has also brought whatsoever changes in their business to stay in the covert line. Like, they also offers their products online as other companies are doing to help overcome online competitors, Best Buy allows consumers to purchase their items online.Consumers then birth an preference of having the product shipped to their home or select it up at a topical anesthetic Best Buy store. Best Buy has recently established several new partnerships bringing new products to their stores. orchard apple tree, Dell, and Napster are so me of the new partnerships. Best Buy became the commencement retailer in the US to be able to sell the apple iPhone. Apple sent trainers to each store in coiffe to make each employee more knowledgeable on the iPhone. They became the only retailer able to sell Dell computers.They also recently bought in to Napster in order to try to increase their subscribers and expand the capabilities in the digital downloading business. Best Buy also bought 50% of a company called Carphone storage warehouse in Europe, which was done to expand Best Buy stores into European countries. These precise strategic decisions by Best Buy were other undefeated marketing tool. They became an exclusive place for some of the products like Dell computers and Apple iPhone. Their strategy bought in many new customers as well as change magnitude their repeated customers sales.Best Buy has a certain way of targeting their customers by separating them into several different life style roots. The four meeti ngs include Urban Trendsetters, upscale Suburban, mediate America and Empty Nesters. The commencement lifestyle group is the Urban Trendsetters this group makes up about 26% of their customers and about a quarter of their revenue. They are between the ages of 23-30 who is typically single. Their second lifestyle group is Upscale Suburban they make up about 22% of their customers and about 25% of their revenue. The third lifestyle group is Middle America they are made up of 31. % of their customers, and around 32. 9% of their revenue. The final lifestyle groups owns more than 80% of the personal nest egg in the US, controls 70% of the financial assets, and are at the height of their earning power. This breakdown of their customers visibility helps Best buy understand their customer needs and their spending habits, which they can use in their marketing strategies. Best Buy delivers their advertisements in a very aglitter(predicate) and joyful fashion. Most of the paper advertiseme nts have a blue background with several yellows and reds in order to grab the consumers attention.Generally if they have a special for the week they will highlight it in red and put it on the poop of the cover page. Best Buy is or so well known for their yellow tag pic. All prices for the products are on a yellow tag whether you are smell at one of their advertisements or a price tag in their stores. This extraordinary way of advertising helps them very untold at time of promotions and sales to differ themselves from their competitions. In conclusion one of successful electronics store of our time is utilizing all the marketing strategies it needs to create new customers as well as maintain their unwavering loyal customers.They use a very competitive pricing policy to give them upper hand with their customers. They offer very exclusive products to their customers, which customers usually cannot find anyplace else. They use all the publicity they can get through their socially good deeds. They have done a very good research on their customers who comes in their stores and shops on their websites. They are one of the pioneers in advertisements as far as creating humorous ads to make their point. All this marketing strategies have made them very profitable companies of our time. establish CITEDSolomon, M. R (2004). Consumer Behavior Buying, Having and Being sixth edition. Upper Saddle River, N. J. Prentice-Hall. (2008). Marketing Power. Retrieved June 30, 2008, from American Marketing Association tissue site http//www. marketingpower. com/Pages/default. aspx (2007). The Marketing Mix, the four Ps of Marketing. Retrieved June 28, 2009, from Net MBA Web site http//www. netmba. com/marketing/mix long Ads. (2008) Best Buy Inc. Commercial etc. Retrieved Nov. 29th, 2008. http//great-ads. blogspot. com/2008/11/best-buy-funny-commercial-2008-holiday. html