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The members of the mid-20 to mid-30 demographic are not linked by their age alone. Many of the members of this group are college-educated, and are therefore perceived as having more discriminating tastes and, more importantly, a wider exposure to the range of products and services available to them and the experience to evaluate those choices and determine which fits their needs best (Huntley, 2006). The fact that the members of this demographic are childless is significant. For 20- and 30-somethings who have not yet had children or who do not have plans to have children right away, discretionary income may be spent primarily on themselves, fulfilling immediate needs as well as an ever-increasing list of wants, particularly with respect to electronic goods. Finally, most of the members of this demographic are living on their own for the first time and are setting up their own households, either independently or with a partner or roommate. Stores such as the electronics retailer Best Buy and the home improvement warehouse Home Depot may appeal to this demographic, then, because they offer products that are viewed as essential to establishing one’s home. The brand recognition of these stores may help attract this demographic, but even successful chain retailers such as Best Buy and Home Depot need to develop marketing strategies that speak to the specific needs, interests, and experiences of this consumer group.
There are a number of psychological and sociological variables that influence the purchasing patterns of this demographic. First of all, the members of this demographic tend to seek immediate gratification (Huntley, 2006). Although they have many tools at their disposal to conduct research on consumer goods and services, they tend to rely more upon word-of-mouth recommendations and media-generated buzz (Huntley, 2006). By the time they enter a store, they are generally prepared to make a purchase on the spot, and rarely need persuasive convincing on the part of a sales person for them to do so (Huntley, 2006). As part of the immediate gratification factor, the consumers in this demographic also tend to seek a convenient and fast shopping experience (Hudson & Zimmerman, 2007; Huntley, 2006; Lancaster, Doole, & Lowe, 2004). While they expect to have sales staff available if needed, they tend to prefer avoiding interaction with them, as they view themselves largely as self-sufficient and knowledgeable about the products that they want to buy (Hudson & Zimmerman, 2007).
The kinds of marketing material to which this consumer demographic responds best is not necessarily printed matter, such as the traditional circulars that are inserted in Sunday newspapers around the country. Many consumers in the mid-20s to mid-30s get their information about products, services, and retailers through a variety of new media technologies, including banner ads that appear on the websites they visit, mentions of products and/or retailers on blogs, and promotions that are linked to cell phone, internet, or Blackberry technologies. This demographic is accustomed to aggressive and nearly constant marketing (Draut, 2006), but if their attention is to be captured, it must be appealed to regularly with new marketing and advertising techniques (Jaffe, 2003). At the same time, however, while retailers may experiment with these new advertising techniques, big-box chain retailers may continue to rely upon print advertisements as their primary source of marketing, hoping that their name and brand recognition will be enough to draw this age group into the store. Once in the store, the experience is often customized to this demographic, an issue that will be discussed at length later in this paper.
For both Best Buy and Home Depot, I examined the retailers’ print circulars and their websites, as well as billboards and bus shelter advertisements in the Southern California area. Each of these marketing materials will be discussed in turn, and will be related specifically to this particular age demographic. It is clear that for Best Buy, the website is geared towards a younger user group, and, in particular, to this specific demographic. The website is colorful, flashy, and has a great deal of motion (at present, falling snowflakes, to signify the winter/holiday purchasing season). A vast array of products are displayed on the home page, and as the site visitor navigates his or her cursor around the page, the products jump into animation. There is information about how to become a reward zone member, which is a frequent shopper program that awards points that can be redeemed for products. In the middle of the page, there is currently a banner that depicts people dancing.
Though it is only their shadows that are visible, the suggestion is that the products of Best Buy are geared to a younger demographic. Best Buy also lists its services on a section of the home page, including the Geek Squad, a troubleshooting/home installation team that is particularly intended to appeal to a younger consumer demographic. Information about the Geek Squad also appears in the print advertisements, both the circular and the bus shelter posters. Overall, the marketing material for Best Buy seems to be effective. It is colorful, information-rich, demonstrates that the retailer offers a wide variety of products, and also informs potential consumers about services that seem customized to their specific demographic. With respect to those services, Best Buy seems to convey the message that whether one is either too busy living life or lacking in the technical skills to do his or her own installations or repairs, the retailers has a convenient—if not entirely affordable solution—and this appeal responds to the immediate gratification needs of this demographic.
]]>While it is limiting for this case study, Oprah Winfrey’s company, Harpo Productions is a private organization and does not reveal details about profits, but nonetheless the company is known as an industry powerhouse. As one might imagine, other than being fronted by one of the most famous and powerful women in the United States (outside of politics) the management at Harpo Productions must be driven by management teams who seek to foster long-term goals such as retention and motivation. As this business case study of Harpo Productions points out, his is not a company that just recently soared to the top; as a matter of fact, Harpo Productions, even without the private company’s hard financial data, is a proven leader and this has been the case for a number of years.
One of the problems Harpo Productions as a company has faced in the past with these issues revolves around the idea that it is a highly secretive company that requires employees to sign extensive privacy and confidentiality agreements. Although management works with very diverse teams (well over half of the employees at the company are women and/or minorities) this can create problems internally and thus it is up to management to work together within the confidentiality agreements to solve these issues.
Pay rates are one of the best tools for management to use as it is one of the most admirable aspects of Harpo as a company. Great benefits and pay serve as incentives to offset some of the negative aspects of working for this secret company and through such incentives, employees are far more likely to stay on board and stay motivated as look to higher earning potential. In other words, although Harpo Productions has received a great deal of criticism from former employees who spoke publicly and might have some organizational culture issues, the best way for management to respond to these problems is by offer financial incentives and rewards to employees.
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