Marketing
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Marketing
One of the crucial aspects of the marketing process includes identifying a target market and selecting the best strategy to serve the market. Usually, a target market is made of unique characteristics that make it best suited to make a maximum purchase for a given brand. Also, the maximum functioning of a target market depends on how a business engages them. This is crucial in ensuring long-term customer relationship and providing a competitive advantage to a specific company. This essay will examine the Zappos Company’s case by describing its target market and strategies used to serve the market. It will also examine the impact of building customer satisfaction on profitability and the effect of long-term customer relationships on its competitive advantage.
Zappos is a company that begun in 1999 by providing middleman services linking customers and manufacturers and later started having its inventory. Over time, the company has become one of the unique companies that focus on the excellent customer and employee satisfaction. Their way of operation has seen the company’s development over time.
The Target Market and Market Strategies
The target market for the Zappos Company involves individuals from different parts of the world who are interested in purchasing unique shoe designs, home products and apparel accessories. The Zappos target market also involves individuals who prefer online shopping than visiting physical shops. This is so as customers only get to shop online and have their orders shipped (Hsieh, 2010).
Even though Zappos target market is distributed to various regions, the company ensures to meet their needs and ensure customer satisfaction. In order to achieve this, the company provides various options to customers. For instance, the company has a website that is easy to navigate and allows customers to view and order products round the clock. The company also ensures that the shopping experience is excellent by availing all products and providing short videos identifying and explaining product features. This may need employees to take some time to make the videos; however, it is a great way to help customers understand the products being sold and prompt purchase decision (Hsieh, 2010). Zappos also promotes convenience by ensuring that out of stock products are removed from the website. Those on stock are also grouped into different segments and positioned at different angles to enable customers to explore them well. Additionally, operating round the clock allows Zappos to deliver products to customers on time. Furthermore, the company also has a return policy allowing customers to order various products and return those that are not fit for them within 365 days. The aspect makes it convenient for online shoppers who may not be physically present in stores to inspect products (Rigby, 2011).
Customer Satisfaction and Profitability
The customer-centred strategy has enabled the company to improve customer satisfaction. In turn, this has led to profitability growth. For instance, excellent customer experience contributes to 75% purchases from repeat customers. The return policy contributes to more purchases, even though it is an expensive strategy. Fifty per cent of purchased merchandise from Zappos is returned, which is higher compared to the 35% of a typical industry (Hsieh, 2010). Even though it seems expensive, the return policy strategy works to the advantage of the Zappos Company as it improves customer loyalty. Enjoying the return policy benefits make customers make more purchases and spend more on each purchase (Nicolao et al., 2009). The company’s unique culture of improving customer experience has seen the company grow its revenue from &1.6 million to 1.64 billion within a span of 10 years from 2000 (Hsieh, 2010).
Long-term customer relationship and Competitive advantage
The long-term customer relationship developed by the Zappos Company has provided a competitive advantage. Shoes, apparel accessories and home products are items that individuals can acquire from local stores. Nonetheless, individuals prefer shipping products they have not physically seen from Zappos instead of buying what they can see. This is possible due to exceptional customer experience, including the return policy, transparency, reduced inconveniences, and comprehensive product descriptions through videos. Customer relationship has enabled Zappos to overcome various challenges which would have otherwise driven clients to competitor products. The stable customer relationship allows customers to remain loyal when the Amazon acquired the Zappos and during the more than the shoe campaign pictures incidence (Hsieh, 2010).
Conclusion
Customer experience improves client satisfaction. In turn, this improves customer loyalty and improves sales and profits, leading to the overall growth of a company. The long-term customer relationship improves company revenue and serves as a critical foundation for solving customer-related problems to further company development.-1