Within the framework of a furniture retail company, the administration would like to have several important data sets represented by Big Data. First, the company requires to build a customer base and record all the purchases in its data system (Andrews 2). This is needed to keep all the information regarding the customers and provides the administration with a unique possibility to identify trends and customers’ behavioral trends (including the price range in which each of the customers feels comfortable). Moreover, the company would like to use the customers’ previous purchases to show them new offers that may be interesting or display products similar to what they have in their purchase history. This is an essential step for the company that wants to win over the market. The company would obtain it using collecting the data from the website. Nonetheless, the information has to be collected at an aggregate level because individual customer information does not display any inclinations or signify common customer behavior. The personal level information can be used by the companies to promote their new products and offer their loyal customers significant discounts and other important benefits. Therefore, several things can be done to improve the company’s Big Data practices and improve the profitability of the business.
First, the administration will be able to conduct a company-customer dialogue efficiently and engage in real-time conversations with their clients. In other words, Big Data will help the company to treat its customers how they want to be treated (Andrews 2). Second, the company will be able to analyze their products and initiate the process of re-designing the most unsuccessful furniture items. The Big Data technology allows testing the variations of numerous fixtures before they are manufactured. This kind of simulation will help the company to track the modifications that may be profitable even after minor changes. Third, Big Data is effective when it comes to performing risk analysis (Andrews 3). In this case, the predictive analytics software is used to identify the trends and take appropriate measures in times when risks are higher than expected. Fourth, one of the best things about Big Data tools is that they allow businesses to keep their data safe. This means that the company can store sensitive information without being exposed to the adverse consequences of data breaches or any other threats (Andrews 3).
In addition to the aforementioned practical benefits of the Big Data practices, there are also several long-term and short-term objectives that can be accomplished using this technology. One of the vital advantages of Big Data in the 21st century is that it allows businesses to modify their websites in a real-time environment (Arthur 132). This is done to gratify the customers’ needs when they enter the website. It is an effective method of drawing attention to certain goods or parts of the website and it has a positive influence on the company’s incomes as well. Moreover, Big Data technologies make the systems more dynamic and interactive (Arthur 140). This helps the employees to understand the basics of the company better and provide high-quality services for the customers.
Cognitive Biases
The numerous examples of anchoring in marketing show that the human mind is not perfect and can be negatively affected by some external factors. First of all, the human mind is keen on comparing the new things that we learn about the ones that we have already seen before (Newman). For instance, if one of your close friends was a great sportsperson, you would associate all the new acquaintances who practice sports to that one friend. In other words, the latter becomes an anchor. Another example may be connected to the price of air tickets. One may be used to cheap $100 tickets and a $350 special offer may not be perceived as special by that same person due to an understandable reason. Nonetheless, if that person commonly pays $600 for their flights, they will be excited to experience the benefits of the special offer. In this example, it is safe to say that the perception of the air ticket price is contingent on the anchor. Due to human nature, one cannot stop comparing one item to another, but the instances of these comparisons can be effectively controlled (Newman). This is why the majority of companies tend to offer their anchors to their customers. For example, smartphone retailers use a very distinct way to drive their customers to buy their phones. They do not give the luxury of time to the clients and instantly compare their products to those manufacturers who offer an almost identical smartphone for a bigger price. By doing this, the companies directly impact the process of the creation of an anchor into customers’ minds instead of letting them choose for themselves. The most prevalent perception among the marketers is that the first thing that the customers see instantly becomes their anchor.
Another cognitive bias example that can extend the notion of anchoring is framing. It means that the customers’ perceptions will differ depending on the context and how these customers commonly perceive these things. Therefore, the frame of reference can be considered to be one of the most significant aspects that influence our decisions and product choices (Ellwood 92). Crafting a frame in which the offer is presented to the prospect is an essential stage of the marketing strategy. The most evident example of framing can be found in insurance sales. The framing takes place when the seller tells the story of a colleague who got into a grave accident but had to sell his house because he or she did not have life insurance. By doing this, the marketer makes the customer aware of the potential problem and presents the life insurance offer as a solution to the problem. Another perfect example of framing can be found in copywriting. The copywriter can start the paper with either a positive or negative outlook on the problem and persuade the reader to accept this viewpoint by the end of the discussion. A similar approach can be utilized when designing a website. For instance, a frame of a welcoming and harmless environment can be attained using warm, soft colors. This will make it easier for the company to drive more families and females to the website and encourage them to buy the products available on the website. Nonetheless, the same framing strategy will not work if the company sells extreme sports gear.
Millennial Market
The Millennial market is important to hotels for one serious reason – the Millennials travel much more than their ancestors (Rosen). If one combines vacation tours and business trips, the Millennials travel ten times more than their predecessors. Nonetheless, there are significant differences in how the Millennials plan their travel and book their hotels/ flights. Taking into consideration the mobility of the Millennials and their on-the-go nature, hotel owners should be aware of the fact that the Millennials pay close attention to how the hotel’s website looks on their smartphone (Rosen). Therefore, if the hotel’s website and promotional messages do not support responsive design features, the company will have a hard time enticing the Millennial audience. Another important feature that is crucial for Millennial’s perception is the flexibility of the products and services provided by the hotel. This includes the ability to check-in remotely or even reconfigure furniture in the hotel suite (Fromm 44). The administration of the hotel should eliminate outdated features like pay-per-view movies and slow Internet. On the other hand, the hotels should not brag about upgrading either because the Millennials will be disappointed by the amount of time it took the hotel to get rid of the outdated features. The hotels should understand that the Millennials are interested in the best product experiences and overall service quality (Rosen). They will be ready to share their experience online (both satisfaction or disappointment). The information may go viral rather quickly and either improve or destruct the hotel brand’s image. Moreover, the hotel’s administration should always take into account the fact that the Millennials always share their experience with their friends and family. This may ultimately lead to either new loyal customers or a crucial decrease in the overall number of clients (Rosen).
The target market of Moxy Hotels is the segment with the Millennial customers. The overall strategy of these hotels presupposes that a stylish look can be offered at an attractive and affordable price. Moxy Hotels offer spacious rooms and premium services for the lowest prices. The business model of the Moxy Hotels revolves around smart design and comfortable living space. These hotels are making the best use of social media and loyalty rewards. The overall atmosphere at the hotels can be characterized as amusing and calm.
The target market of the Hilton hotels is represented by middle-aged professionals. This segment is also characterized by high-level incomes. The majority of the clients of the Hilton hotels pursue extravagant lifestyles. This is why the company provides the services of eminent quality and charges premium prices. The key benefits of the Hilton hotels are their experience and good reputation. Moreover, the company implements numerous technical innovations annually and can keep employee retention at a high rate.
The target market of the Holiday Inn hotels is Generation X. They are also targeting families and corporate clients. In short, the Holiday Inn hotels provide their services to individuals whose key goal is to get away from the tense life and enjoy their leisure time. The hotel’s pricing strategy can be located in the middling segment. The key benefits of these hotels include flawless advertising campaigns and exquisite customer service.
Works Cited
Andrews, Lori. “Facebook Is Using You.” New York Times, vol. 2, no. 5, 2012, pp. 1–3.
Arthur, Lisa. Big Data Marketing: Engage Your Customers More Effectively and Drive Value. John Wiley & Sons, 2014.
Ellwood, Iain. Marketing for Growth: The Role of Marketers in Driving Revenues and Profits. Public Affairs, 2014.
Fromm, Jeff, and Christie Garton. Marketing to Millennials: Reach the Largest and Most Influential Generation of Consumers Ever. AMACOM, 2013.
Newman, Kelvin. “Five Tricks Our Minds Play on Us and What Marketers Need to Know.” Econsultancy, 2011. Web.
Rosen, Cheryl. “Millennials Change the Travel Market, As Other Generations Follow Their Lead.” Millennials Change the Travel Market, As Other Generations Follow Their Lead, 2016. Web.