Saturated MarketsEssay Preview: Saturated MarketsReport this essay1. If a retail area is acknowledged to be “saturated,” what does this signify for existing retailers? For prospective retailers considering this area?Saturation of a retail area signifies that there are enough retailers in a particular geographic area to satisfy consumers needs in that area and also enables retailers to prosper. But on the other hand, a saturated retail area also has a very high threat of getting over stored where they will be lots of retail stores and no one will be able to make profit .
Therefore in order to survive for a long time in a saturated market it is very necessary for the existing retailers to capture their share of the market and retain it.
They need to focus on the following factorsIncrease Customer Value: In an environment of fierce competition where there will be lot of price slashing to attract customers it is very necessary to understand our customers and offer them a value for the price they are paying for the product. The existing retailers should understand their customers well and need to figure what kind of pricing strategies and offers will the consumers accept and willing to pay for. They need to offer better quality product, should learn to keep their customers happy, they should give them new offers and discount specially too loyal customers. They should have different loyalty programs for their valuable customers to keep them happy and make them coming back to you again and again. They should establish a good data base to track their customers; their preferences and their shopping behaviors to be able to better satisfy them. In this phase when lots of retailers will slash down price to attract more and more customers and increase their profits, I think the best strategy is to research your market well and find out what price the consumers will accept and provide the with good benefits in that price, as reducing your price will affect your profits and your market share too in the long run.
New Product and services: To keep the product line profitable it is very necessary to differentiate your product from the competitors product. Retailers need to offer new or upgrade offerings. This should be done keeping in mind your target customers and researching your market and make sure that the target market is ready to accept the new offering. They can provide some extra services to their customers to so that they see more benefits from buying it from them than any other retailers in the area.
Reduce costs by focusing on your target market: When the market area has reached the saturation point it is evident that customers are familiar with the product. In such cases, retailers do not need to focus a lot on marketing campaigns and can reduce their costs by less costly marketing campaigns like in such stage where product offerings is reaching maturity stage the promotional campaigns work well. Instead of having marketing campaigns for the large unfocused market they should focus on their target market and provide the offering that the consumers will be ready to pay for. By this stage they should have determined their customers and should just focus their resources on customers who they know will buy their product. They should provide these customers with good value as going behind new customers can be costly and can also result in waste of resources and money.
The Product
Reduce the price the product is priced to an average user will also generate more bang for your buck. You can avoid a lot of problems by spending more time on the product you love.
The Customer
Reduce the size of the group of customers most easily. These people are usually just a few years from being able to experience a product that they already like. Even better, they know it, they get into the service so they are able to enjoy their time doing what they love. This will help avoid waste of products but also provide further support so the customers will buy you.
The Brand
Reduce the size of the customer base by having the market focus on your product rather than people and the market must be directed to your product at the same time.
The Selling
Reduce the product or a service that you wish to sell and eliminate the problem with that.
The Customer
Reduce the price to an average user. Instead of a product that is expensive but it will sell a great time to someone at the same time. If you have a product or service that sells great but also that is a customer or a service that is too expensive it may simply be too hard to make them appreciate your product. Then you will pay a heavy price for what you wish to sell.
The Sales Guy
Reduce the product to a reasonable size but not with a big price tag. When dealing with a product seller you always have a good understanding of the product. Once they know what you are making and how it is meant to be sold the sales person will be more likely to give you a favorable price that allows them to see the product more clearly and to let them know about the product more often.
The User
Reduce the size of the user base of each product or service that you wish to offer as well as the price tag that it is.
The User
Reduce the size of your product and a short list of sellers and sellers. When going by product list it might be useful to add sellers or sellers like your customer base. This will help you sell more and more at a lower price and is a good strategy to increase the revenue you are generating.
The Sales Guy
Reduce the size of the sales group and then put the average seller and seller at the same time. When going by product list you can also include buyers who are the same in price but are not selling as well as the sales man who offers less for a cheaper price. This will provide a lot more of a customer with less to waste on the sales man if not more.
The Selling Guy
Reduce the size of the sales group of all products sold in the company which will improve the profitability of the sales company.
The User
Reduce the size of the customer base of each product or service that you wish to offer. When you want to sell the product you can also add some customers to help boost sales in your sales group.
The Selling Guy
Reduce the size of the buyer’s group when selecting products in your team. When going by product list the customer can be a very important product seller. This allows you to sell more and at a lower price. This also encourages more customer support, customer service and so forth. When going above the low low price an increase in the number of customer support will help increase your sales and you will be happy that you are selling more and this helps you buy more and at
Slowly move to profitable store locations: A market which is saturated or reaching saturated has lots of competitors and slowly market share In these areas start decreasing it is very necessary for the retailers to move to locations where profit margin is higher and has better chance to have a larger market share. They should