Demographic Factors in Marketing free essay sample

Zumiez Bobbi Triolo BUS620: Managerial Marketing Instructor Susan Sasiadek 6/19/11 â€Å"Zumiez is a mall based specialty apparel store founded by Tom Campion and Gary Haackenson in 1978† (wikipedia. com, 2011). This store offers clothing and action sports gear for skaters, snowboarders and surfers, skateboarders and motocross racers. Zumiez corporate offices are in Everett, Washington, but there are currently 400 stores open in 37 states (zumiez. com, 2011).Looking at the demographic factors used in marketing Zumiez products, the stores products cater to men and women mostly between the ages of 12 and 24 who engage in the action sports lifestyle (zumiex. com, 2011). From a psychographic perspective, or psychological perspective of the potential customer, Zumiez has worked diligently to find those lifestyle interests that will entice the consumers and keep them coming back. Most of the Zumiez stores have couches and video games available for the customers while they are waiting for their products to be assembled or repaired.There is an ample supply of information on emerging trends and fashions, and because the stores are mall based, usually situated near a movie theatre, food court, or game store, they are able to attract that youthful population into the store, expanding their clientele base and increasing revenue (zumiez. com, 2011). Some of the other variables in psychographic segmentation include behavioral patterns, habits, opinions, perceptions of the selling company and hobbies (buzzle. com, 2011), all of which Zumiez appears to support in their marketing efforts.Looking at this company from a geographical marketing standpoint, positioning their stores inside mall locations is a huge geographic plus for attracting business. However, with 400 stores in 37 states, and the diverse products this company sells, they are able to make huge profits in any area or climate based on their product niche. Zumiez fiscal results show in the first quarter of 2011, their total net sales increased by 18. 8% from 89. 1 million in sales to 105. 9 million (ir. zumiez. com, 2011).In the month of May alone, which is the beginning of the second quarter, their total net sales for that 4 week period increased 49. 9%, brining in 30. 3 million dollars in sales (ir. zumiez, 2011). And in looking forward to the 2011 year, Zumiez has plans of opening 44 new stores nation wide with its first store opening in Canada. Zumiez products are not cheap. They do however, appear to be fair when compared to similar products in other non-specialty stores. They have though, been able to show great success utilizing differentiation and focus strategies in marketing. Differentiation strategy calls for the development of a product or service that offers unique attributes that are valued by customers and that customers perceive to be better than or different from the products of the competition† (quick. com, 2011). Companies that succeed in differentiation strategies for marketing usually have a skilled and innovative product development team, a strong sales team, and a reputation for quality and innovation, all of which Zumiez has shown to embody in their company (quick. com, 2011).Focus strategies in marketing deal with that narrow market focus or niche, so to speak, that tailors a specific product or products strengths to the customers interests, hobbies, attitudes, etc†¦(quick. com, 011). Zumiez does not market their products with coupons, special sales days for specific purchases, or huge discounts when buying expensive items. Their products â€Å"speak for themselves† in the sense that they are high quality merchandise that consumers are willing to pay for at the given price. Can their products be easily imitated†¦certainly, but would they be of the same quality is the real question.Sales promotion absorb almost 31% of most companies marketing budgets (Gelb, 2007). This is one reason Zumiez profit margin remains to high. They do not feel the need to waste money marketing a sales pitch to consumers when they know their products speak for themselves. Because Zumiez does not rely on discounting items to gain consumer loyalty, they create more of an emotional bond between the consumer and the purchased product, increasing the likelihood that consumer will return for future purchases (Gelb, 2007). In my opinion, Zumiez got it right from the start. There is little I would hange or add to their marketing strategies overall. I do see two changes that could be made that may increase their revenue further. First, I would expand on the ages Zumiez markets to. They cater to men and women between the ages of 12 and 24. I would expand on those ages and create gear an apparel for children starting at age 3 or 4, and adults into their 40’s. I say this for a few reasons: one, many adults like to dress their children like themselves. How many parents go out and buy matching sneakers or hoodies for themselves and their sons or daughters. I know I do, and my son is 3 ?.Two, more children are getting sports specific at much younger ages, and children under the age of 12 are often seen on the products offered at Zumiez. Three, they say 40 is the new 30 and 30 is the new 20. Older adults are getting interested in action sports since the world has become so health and exercise minded. People are buying products from this store and they far surpass the ripe old age of 24. The second change I might suggest deals with geographic segmentation. In all of the Zumiez advertisements I have seen, they advertise all their major items or products offered.They may boost revenue further by advertising specific products based on geography. In California, there is little need for snowboards, but surfboards, skates and skateboards are a huge niche. Washington State and places that have high snow fall rates or remain much colder in temperature, would market the reverse. Finally, I would increase my marketing if in an area that offered a high number of indoor skate parks. This may also boost revenue, especially in areas that temperature remains an issue in.