Analyzing 4R Marketing Theory And Winning The Market

The main feature of 4R marketing theory is competition oriented, which summarizes the new framework of marketing at a new level. 4R theory, based on the market maturing and increasingly competitive situation, focuses on the interaction and win-win between enterprises and customers, not only actively adapting to the needs of customers, but also actively creating demand, using optimization and systematic thinking to integrate marketing, forming a unique relationship with customers through related forms, relationships and reactions, and linking enterprises with customers to form competitive advantages.

4R marketing is a new marketing theory based on relationship marketing and competition oriented. It focuses on the establishment and improvement of customer loyalty, and emphasizes the development of marketing activities from a systematic viewpoint. 4R theory explains four new marketing mix elements: relevance (Relativity), response (Reaction), relationship (Relation) and return (Retribution). In practical applications, 4R theory requires the support of enterprises to have effective organizational functions to implement effectively. Therefore, it is very difficult for domestic shoe and clothing enterprises to implement 4R marketing theory in the current situation of imperfect marketing organization function. Today we analyze the marketing mode of Italy's famous brand ZARA and reexamine the marketing mode of ZARA from the perspective of 4R theory. It is hoped that it will enlighten the marketing managers of shoes and clothing enterprises guided by 4P marketing theory in China.

Correlation (Relativity)

The brilliant evaluation of ZARA in the international clothing industry is the first-class image, the second rate product and the three price. This is precisely the premise and foundation for establishing the stable demand relationship between ZARA and customers. In today's competitive market, customer loyalty is changing, and they will be attracted to other enterprises. To improve customer loyalty and win a long and stable market, we must establish connections with customers through some effective ways in terms of business and demand, forming a relationship of mutual assistance, mutual demand and mutual needs, linking customers with enterprises and reducing the possibility of customer turnover.

Reaction (Reaction)

Shortening lead time is one of the magic weapons of shoe and clothing industry. The lead time of ZARA company is only 12 days, far below the average time of 3 to 6 months in the same industry. This extreme reaction system is the most critical factor for the success of ZARA. In today's interactive market, the most realistic problem for operators is not how to control, formulate and implement plans, but how to listen to customers' hopes, desires and needs in a timely manner and respond promptly to respond to customers' needs. The biggest feature of fashion is changeful. A movie and an album may change people's view of fashion, and the most touching part of shoe and clothing is just following fashion. When there are new popular elements in film and TV magazines, ZARA can complete the imitation of star costumes or creative works of top costume designers in a matter of days. From the identification of fashion trends to the new fashions that cater to the trend of fashion, ZARA takes an average of two weeks. Other international brands will take 3 to 4 months, and domestic shoes and clothing enterprises will be in the 6 to 9 months. When fashion media are vigorously promoting the trend of next year, ZARA has put the time to integrate these popular elements onto display windows. The fast supply chain enables ZARA to keep pace with customers' pursuit of fashion, and to catch every fashionable fashion signal faster and attract customers.

Relationship (Relation)

ZARA not only sells products, but also sells customers' commitment to fashion, and is responsible for customers' pursuit of fashion. "What kind of clothes do consumers need?" It is the most important reference target for ZARA company. In the market competition environment where the relationship between enterprises and customers has changed substantially, the key to seize the market has changed to establish a long-term and stable relationship with customers, from transaction to responsibility, from customers to fans, from management marketing mix to management and customer interaction. ZARA has established a stable and good relationship with customers through its unique sales strategy of "high speed, small quantity and variety".

ZARA frontline staff at the global store collects consumers' suggestions for products every day, from color, style to price, and then returns to Spanish head office through IT system. The design department will immediately search and discuss and arrange procurement and production. After two weeks, new products designed and manufactured according to customer suggestions can be met with customers in the store. In addition, ZARA often conducts fashion shows, transmitting fashion signals to customers at the first time, and constantly communicating with customers to meet their personalized and differentiated needs.

Return (Retribution)

Return refers to the premise of satisfying the needs of the customers and satisfying the customers on the basis of customer satisfaction, social satisfaction and employee satisfaction. For enterprises, the real value of marketing lies in their ability to bring short-term or long-term income and profits to enterprises. The pursuit of return is the driving force of marketing development, and return is a necessary condition for maintaining market relations. Enterprises should satisfy customers' needs and provide value for customers, but they can't be "servants". This requires marketing to take account of the cost and revenue of marketing, so as to maximize revenue and minimize marginal cost, so as to achieve the purpose of enterprise returns. ZARA company fully embodies the requirements of reasonable pursuit of corporate returns in terms of promotion, advertising and inventory. At present, the profit margin of ZARA is 16.2% higher than that of Gap, the 10.9% largest clothing retailer in the United States.

In advertising, ZARA almost does not advertise, its advertising costs account for only 0-0.3% of its sales, while the industry average is 3.5%, and the savings of advertising cost is a reflection of ZARA's pursuit of rewards. In terms of price discounts, ZARA adopts a small discount strategy. Because the products of the company are all "small and diversified", if consumers do not buy them at the first time, there is a risk that they will never be able to buy them. The average number of discounted goods in ZARA is about 18% of the total number of products, only half the competitors. In terms of inventory, ZARA's rapid supply chain system has reduced its inventory to a very low level. At present, the inventory is about 15% to 20%, far below the 40% average of other apparel companies.

epilogue

Nearly 1/2 products of domestic shoemaking enterprises are used for export. The financial crisis has seriously affected the operation of China's export shoe enterprises. 30% or even half of the share back to the domestic market, exacerbated the domestic shoe market competition. If the domestic shoe and clothing enterprises can take the real application of 4R marketing profits into practice, and quickly absorb the essence of the new business model, it is not an opportunity for upgrading. According to Lang Xianping, a famous economist, perhaps this model will bring a breakthrough to the huge low-end clothing manufacturing industry in Southern China.