Development Strategy and Leadership

Question: Discuss about the Development Strategy and Leadership. Answer: Introduction: The customers flow with the general flow of the market. In the framework of the existing subject matter, Markey et al. (2007) claimed that the customers have various latent demands within self and expect the organisations to introduce the products that manage to mitigate the latent demand of the customers. Considering the example of Maggie, the product launched by Nestle. Herein, the RD (Research and Development) team has enabled to find out the hidden demand of the customers on the instant foods. Thus, the customers could align the product category with its latent demand. The product success of Maggie is the outcome. More than the customers, the organisations figure out the product needs of the customers. The factor influencing the purchasing behaviour of the customers Marketing campaigns The buzz created by the campaign before the product launching Greater awareness of the products The celebrity endorsement often develops the product need within the customers. The catchy execution of the marketing campaign often develops the interest of the customers for the new products According to Hinterhuber Bertini (2011), in the majority of the times the customers highly get indulgence with the daily life schedule, therefore, hardly get the time that to the analyser of latent demand for the new products. Thus, in the majority of the times, certain brands manage to introduce the products that exactly mitigate the customers' latent demand. However, due to the poor execution style of the campaign, the customers can hardly manage to relate the individual demand criteria with the products. Economic conditions The disposable income of the customers is the primary product purchase concern. The customers spending decisions are highly influenced by the economic situations prevailing in the market. In the majority of the times, the 54% of the customers leave the online products in the shopping cart. 28% of the customers have the tendency of abandoning the shopping cart if displayed with the unexpected shipping cost. Markey et al. (2007) asserted that affirmative economic surroundings are known to make the consumers more certain and disposed to indulge in the purchases despite the personal financial liabilities. Group influence The verbal communication often develops the product demand within the customers. For example, certain customers highly get interested towards the products that have displayed its campaign before its launching. The customers spread the message in the group and influence the other customers for the product purchase. Hinterhuber Bertini (2011) mentioned that the influential primary group like the family members, classmates, and the secondary influential group like the neighbours have a greater influence on the consumer purchasing decisions. For example, the group have liked for the fast food often waits for the discounted offerings realised by the brands like KFC and McDonalds. Similarly, the other customers also get develop the similar interest due to the special offerings. Customer behavioural aspect towards the new product The customers highly wait for the products that are executed with lucrative marketing styles High percentages of the people decide on the purchasing decision based on the brand statements Sometimes the financial condition plays the major role in the customers behavioural action toward the new products. For example, the teenagers are main targets for the beauty and the personal care products. However, the majority of the teenagers fail to purchase the products that have already received an acceptance during the test marketing approach. However, Markey et al. (2007) stated that certain customers are highly aware of the product needed to fetch the personal criteria. Therefore, certain segments initiate to research on the product categories and highly wait for the launching of the upcoming products. Reason behind product purchases, Marketing or self-developed demand The purchasing decision often fluctuates between the self-developed demands to the marketing presentations the brand does for its new products. In the framework of the similar context, Hinterhuber Bertini (2011) asserted that the customer segment of Apple Inc highly waits for its upcoming products and its features. Therefore, the individual needs of the customers and the marketing technique of the enterprise get into an alignment. Markey et al. (2007) inferred that certain percentages of the customers provide a blank attitude towards the new products that are launched in the market. However, the customers are getting updated with the product innovation technique, thus, provides effective feedbacks to the brands that initiate the test marketing policy before the new product launch. Thus, certain percentages of the customers decide on the purchasing decision after the marketing campaign, yet, few segments are highly aware of the usefulness of the new products. Therefore, gets convinced by the marketing initiatives taken for the new products. Economic man model Price effect Lower price margin influences the greater purchase of the commodities. Despite the brand conscious concept, the customers have the tendency of purchasing the products that provide discounted offerings. However, there lies a contradictory statement, where the customers are no likeable to purchase the products of the premium brands at a lower price range. The customers purchasing decisions highly depends on the product category. For example, The customers prefer to purchase the electronics products at a considerable price range. Conversely, the supermarket products are primarily expected with the discounted offerings. Substitution effect Lower the price of the substitution products, the utility of the original products would be lowered. Hinterhuber Bertini (2011) inferred that the products categories that have huge percentages of the competitors in the market need to keep the price at an average range. Thus, customers have the tendency of keeping a floating attitude towards the products that have huge substitutes in the market. For example, in case the price margin of Coke increases, the customers have the relative choices of shifting towards the product category of Pepsi. However, certain customers have generated the loyalty towards a specific set of products. Thus, after assessing on the responses of the loyal customers, the brands enhance the product prices. Income effect The purchasing attitude towards the new products enhances with the increased income level. As the numbers of resources are limited, the customers would assign the available finance towards the products that maximise the satisfaction of the individual demands. Price is utilised as the measure of sacrifice in purchasing the products. The foremost objective of the customers is to maximise its satisfaction out of the act of purchase. References: Hinterhuber, A. Bertini, M. (2011) Profiting When Customers Choose Value Over Price,Business Strategy Review, 22(1), 4649. Markey, R., Ott, J. du Toit, G. (2007) Winning new customers using loyaltyà ¢Ã¢â€š ¬Ã‚ based segmentation,Strategy Leadership, 35(3). 3237.