Green marketing key to sustainable development
Understanding Consumer Behavior: A key to formulating Blue Ocean Strategy
Abstract
In the era of fast changing consumer preferences and increasing competition, companies have always found it tough to survive in the market that gets tougher at a faster pace than ever. Blue ocean strategy can be a good strategic move by the company to move ahead of others, ahead of those trapped in the red ocean strategy. As Blue ocean strategy calls for creating the uncontested market space, making the competition irrelevant and creating new demands, the major focus has to be in understanding how would consumers react to your moves. The companies would need to understand the response pattern of consumers, their readiness to change, role of buyers, users and influencers in consumer decision making along with many other behavioral aspects. As a key to Blue ocean strategy, the idea is to create product differentiation at a lower cost, thereby increasing the value proposition to the consumers.
The paper intends to study the importance of consumer behavior and its various aspects further that would help the companies formulate the Blue ocean strategy for sustained and profitable market presence.
Key Words: Consumer Behavior, Blue Ocean Strategy, Values Proposition, Red ocean strategy
Introduction
When companies make strategies, they need to keep its consumers as the focal point. All the decisions need to be evaluated over its impacts on consumers. With companies following the red ocean strategy, the need to understand consumer is important, but it becomes all the more critical, when the companies decide to follow the blue ocean strategy. To make sure, a successful blue ocean strategy is formulated, the companies need to understand each stage of consumer decision making process carefully. This will help the company create new markets successfully or to create new needs.
The Blue Ocean Strategy
Blue oceans are defined by untapped market space, demand creation, and the
Abstract
In the era of fast changing consumer preferences and increasing competition, companies have always found it tough to survive in the market that gets tougher at a faster pace than ever. Blue ocean strategy can be a good strategic move by the company to move ahead of others, ahead of those trapped in the red ocean strategy. As Blue ocean strategy calls for creating the uncontested market space, making the competition irrelevant and creating new demands, the major focus has to be in understanding how would consumers react to your moves. The companies would need to understand the response pattern of consumers, their readiness to change, role of buyers, users and influencers in consumer decision making along with many other behavioral aspects. As a key to Blue ocean strategy, the idea is to create product differentiation at a lower cost, thereby increasing the value proposition to the consumers.
The paper intends to study the importance of consumer behavior and its various aspects further that would help the companies formulate the Blue ocean strategy for sustained and profitable market presence.
Key Words: Consumer Behavior, Blue Ocean Strategy, Values Proposition, Red ocean strategy
Introduction
When companies make strategies, they need to keep its consumers as the focal point. All the decisions need to be evaluated over its impacts on consumers. With companies following the red ocean strategy, the need to understand consumer is important, but it becomes all the more critical, when the companies decide to follow the blue ocean strategy. To make sure, a successful blue ocean strategy is formulated, the companies need to understand each stage of consumer decision making process carefully. This will help the company create new markets successfully or to create new needs.
The Blue Ocean Strategy
Blue oceans are defined by untapped market space, demand creation, and the