Consumers on auto-pilot and buy out of habit: Survey StartupSmart It found consumers are not making conscious decisions about purchasing when habit is driving behaviour.
Cecilia Sagote's insight:
Habitual shopping: It is natural for consumers to continue to buy the same brands particularly if they've had good experiences with the brand. Perception I believe plays a big part. Perceptual process can be influenced by characteristics of a stimulus, size , color etc. Some of these brands that the consumers loyally use may simply be because of what the brand packaging "says" to them. For example Homebrand has a very simple packaging that can give off the idea the idea that they are cheaper (but do the same job) as normal bread.
What the article says about mothers having similar buying habits can be true. Especially with those who have families, then cheaper brands (that still do a good job like homebrand) will always be a popular brand with them.
In the case of new mothers, then brand quality would be important such as with items like , high quality milk powder, good qualitie nappies (then they would tend to be more selective and careful) hence more so loyal with particular baby brands.
What do you do when the reason for your existence ceases to exist? You go away. You don’t have a choice in that. All you can hope to influence is when and how you go away in order to maximize residual value for all the stakeholders.
George Bradts (Author's) recommendation for Myron Ullman CEO is a valuable one - One of his suggestions re: her 100 day plan to cease business at JC Penny is that they "begin communication to prepare people for acquisition, while keeping them engaged in the current business."
This would be emphasizing 'relationship marketing' in this strategy - which involves creating, maintaining and enhancing long-term relationships with individual customers and stakeholders for mutual benefit. As evident in this article, JC Penney are due to close down as underwear is very much available at competitor outlets. It is a reflection that consumers desire Superior customer value - whether it be better brand, comfort or simply the convenience of location of the other stores.
This is the reason for the "quick shut down". As article states, the longer they fight to survive, the less value will remain when they finally cease to exist.
Brandts suggestions of constant communication to keep value of JC Penney up when they do shutdown is part of this 100 day pan and should be implemented: Communication - over-communicate to the broader group to keep people engaged and informed as appropriate.
Marketing objectives are essential before anything else. First they provide benchmarks and secondly they are measureable. If these are achieved then obviously sales objectives will naturally be achieved also.
Without these objectives it is difficult to determine the advertising and promotion efforts accomplished.
Communication plays a vital role here. Like the article states, the interaction and sharing of the ideas among the group makes easier to set objectives accurately. Any outside parties (outsourced parties) ie PR Agencies, publication relations etc must first and foremost know the objectives of the company in order to create their strategies and be successful and also align their practices with the companies values.