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Any Theories You Think Apply To This Marketing Case Study Article?

I have an exam tomorrow based on this article and I’m struggling to think up any more theories that apply! I have a few but I could do with some more. Anyone got any ideas? Thanks!
Keeping pace with the ever changing face of the consumer; 
Companies must swiftly reshape their attitude to sales, take advantage of rapidly-evolving technology and recognise that the rules of engagement are changing, says Claire Mackay
Commuters who crowd the Seonreung subway in downtown Seoul no longer have to fret about evening forays to the shops for the family dinner, last-minute snacks for the children’s packed lunches the following day – or even a packet of fish food.
A virtual Tesco Homeplus store flashes images of more than 500 popular products on to the South Korean capital’s subway’s walls and screen doors, with barcodes that customers can scan using a special app on their smartphones as they race past on their way to work in the morning – and the items are then delivered to their home that same evening.
Sci-fi shopping is now a reality. This store, having gained a British Design of the Year nomination for Tesco Homeplus, offers a neat snapshot of just how profoundly, and quickly, the business landscape is changing.
For many in the retail and service industries who are still reeling from an austere Christmas and lacklustre January sales, the prospect of this future-is-heretoday type technology must seem like a double whammy.
While others may already have embraced the fact the days of a ‘pile them high and sell them cheap’ approach are numbered, forging new relationships with customers might not turn out to be as straightforward as the social media hype appeared to promise.
Les Bayne, UK customer relationship management partner at global management consultants Accenture, believes the balance of retail power is shifting, and that it is the consumer who will increasingly be pulling the strings.
This shift is already under way, driven by technology, data availability and consumers’ carefully considered spending in the continuing tough economic climate. Bayne argues that businesses are going to have to change their attitude to sales – and fast.
“The consumer is changing the rules of engagement,” he says. “They are defining how we do business, what we sell, when, where and for how much – not the other way round – and it is something we are all going to have to get used to.
“I think we would all agree that it’s better for the customer to be at the table when dealing with issues. But how many of us would know quite who to have at the table, how to get them there, or even what to serve should they show up? “By next Christmas the consumerbusiness relationship will be radically different. Consumers will have less money, but higher expectations. They will know more about a business through social media and digital technology, and be more willing to use that information to switch suppliers. Above all this, they will want to be treated as individuals, and feel their voice is being heard, and have this reflected in the design and provision of their product or service.
“This new consumer will transform business on an unprecedented scale over the next months and years.”
Bayne points to four “tipping points” that are fuelling this consumer revolution. The first is technology, which is clearly enabling and empowering people on a massive scale. It is easier to shop from your living room than venturing out on to the high street, and as that has changed the speed of interaction between business and consumer, it has also created a proliferation of data and information. This data has a two-way effect, providing companies with a picture of their customers’ shopping and lifestyle habits, but it is also driving new levels of corporate and commercial transparency, giving consumers the power to act together. Even, says Bayne, “to make, break or reinvent industries”.
Convergence is another example of this type of change. In order to keep pace and to stay relevant, some businesses are offering more to provide consumers with a greater choice. Banks might give film club subscriptions with their current accounts and supermarkets are selling car insurance. However, this produces greater pressure on price, product development and accessibility.
All this is against a backdrop of shifting demographics, the third “tipping point”, which makes it harder for organisations to identify and target core customers. At one end of the scale affluent – and not so affluent – retirees are making their money go further as life expectancy continues to grow, while at the other end, a younger and more digitally-savvy generation are carrying student debt but have fewer job opportunities.
Finally, of course, these are tough times. Bayne’s point is that consumers will be forced into making ev

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One Response to “Any Theories You Think Apply To This Marketing Case Study Article?”

  1. logger says:

    I do not know what theories you want – but of course all the hype of consumers round the table and customer focus – well who knows – they want profit – not doing us any good or every little helps. well of course a little horsemeat in the spag bog helps the profits. Consumers have always had the power to make or break businesses – maybe that is the one shift with how consumers can identify with others and inform en mass the rest – via social media. It could well be that the digital age is very much a double edged sword for companies – as consumers become more aware. But of course at the end of the day – can we change – will we change