Tuesday, October 16, 2012

Topic 10: Consumer Preference and Utility - Skechers

For Journal topic 10, watch the video "Skechers" and then answer the following questions:
*How does Skechers assess consumer preferences (utility) in their target market, ages 12-24?
*What advertising strategies does Skechers use to promote their product?
*What innovations in footwear have Skechers carried out that differentiates them from the competition?
*In monopolistic competition, firms differentiate themselves through location. What geographical locations did Skechers consider for their target market? Discuss reasons for choosing these geographic locations.
*Do you think the kind of strategies used by Skechers would work to influence your preferences (utility) for shoes, clothing, or other products? Why or why not?
*What products do you feel have a high utility for you? What makes them have that level of utility?
*Are there any products that seem to generally have a high level of utility among other people that you don't feel are valuable? In other words, what products seem to have an appeal to others that you just don't understand?

  • Skechers asses consumer preferences (utility) in their target market through market research in houses, and also groups of their target market globally. They also gain information about their consumers when their consumers seek information: what type of information they seek, and where they seek it.
  • There are four methods to promote products: personal selling (through salesman), sales promotion (temporary period of discounts), public relations (publicity), and advertising (through any media, etc.). Products are also promoted by focusing on a target market (a specific group of customers), which is done by market segmentation. It creates a message and a brand identity.
  • The innovations in footwear in Skechers comes from the younger group of employees that participate in the lifestyle of their target group and are on top of the lifestyle trends. They are able to bring to Skechers first hand what is popular in the market and what type of products should they promote.
  • The geographic locations that Skechers consider for their target markets includes in style, trendy areas such as downtown, where their target market, the younger population, can actually see the product and consider it. Skechers also have a presence in retailers in large cities all over the world to promote their product globally.
  • Yes, I believe that the strategies Skechers uses will be able to influence my preferences because I like the image of a cool, trendy lifestyle.
  • The products that have a high utility for me are products that I will actually use, such as stationary. Only a few, very eye catching luxury products will have a high utility for me because for me, even if I have these products, they aren't going to help me much in my life.
  • Some products that seem to have an appeal to others that I just don't understand is coffee. Many people need coffee, either for its waking properties or its taste. However, I do not like the taste of coffee, and I usually have other methods for keeping myself awake.

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