The Value and Contribution of the role of Selling, to the Strategic Essay

The Value and Contribution of the role of Selling, to the Strategic Development of a Company - Essay Example Introduction Zara is a flagship chain store owned of Inditex Group that owns other brands such as Pull and Bear, Bershka and Stradivarius. The first Zara store was opened in 1975 and featured low priced high end products that were mainly sold to women, children and men (Zara 2012). Zara business model aims at contributing to sustainable development of the society. Zara stores aim at saving energy, ensuring less waste and creating an environmentally aware team. Zara products are made with organic cotton, ecological fabrics and PVC-free footwear (Zara 2012). The empowered retail managers ensure customers are kept informed of the new offerings through word-of-mouth since the stores are regularly replenished with new and innovative products. Almost all Zara stores are company owned, and the rest are franchises thus customers entering the stores in any city experience a standardised shopping environment that involves modern, spacious and well-lit stores that are walled with mirrors. Unlik e other clothing stores that spend much of the profits on advertising, Zara spends less than five percent of the sales revenues on advertising (Proctor 2000). Zara’s marketing and selling strategies focuses on product variety, the location of the store and speed of market penetration. Zara replenishes its stores with new items more frequently than any other clothing chain store in the world. Zara has implemented loyalty programs to create a link with the customers and ensure good working relationships with past customers (Ferrell and Hartline 2011). Zara relies on location of the store rather mass marketing in attracting customers and always produces few and scarce fashionable clothes that will have a short lead time in the stores (Proctor 2000). Some factors that have contributed to the success of Zara’s selling strategy include extensive market research that ensures products meet the clients’ needs and relationship selling (Proctor 2000). Zara also offers favo rable prices and after sale services that ensure customer complaints are fully addressed. Additionally, the selling strategy ensures that the stores exemplify a high class and cool shopping atmosphere that is associated with Zara’s products (Kumar 2010). Zara marketing strategy is aimed at increasing the level of concentration and internalization of the brands (Proctor 2000). Some selling trends that Zara has utilized include tele-shopping and e-marketing. The main target market for the products includes the individuals aged between 18 to 40 years and those working in the large cities such as Madrid and London. The consumers sought benefits include the interest to appear trendy and enjoy shopping in a stylish environment (Zara 2012). According to PESTLE analysis, Zara should be conversant with the trading policies while importing the products to the numerous countries. However, numerous changes in taxation policies, exchange rates and recent economic slowdown have impacted ne gatively on the sales of the company. The social environment is positive for Zara since the global population has increased thus creating additional market that is fashion aware and educated. The technological environment has allowed Zara to utilize online shopping carts, bar coding and technology aided designs thus leading to more customer satisfaction and convenience. Zara has also responded well to the ecological environme