Journal Topic 10: Consumer Preference and Utility - Skechers

They target consumers between the ages of 12 and 24, however, Sketchers also has an older consumer base on who purchase their shoes for a more youthful look. They market their preferences by established their brand name recognition through target marketing, market research, and strong promotion. They held their focus of their product by many ways, such as promotes their products in all forms of media including magazines and TV shows. Skechers is constantly striving to differentiate their product from strong competition through innovation. Skechers has an edge on the competition in footwear by producing skate shoes, suede sneakers, athletic apparel, sandals, and boots.

VIDEO SUMMARY

Skechers is an athletic shoe company that started in 1992 and has strong brand name recognition. Instead of trying to influence the market with the products that it makes available, Skechers established their brand name recognition through target marketing, market research, and strong promotion. They target consumers between the ages of 12 and 24, however, Skechers also has an older consumer base who purchase their athletic shoes for a more youthful look. They determined the needs of the target group through a number of ways. They held focus groups that provided them with feedback on how the product is working, they have a young workforce that seeks out information in nightclubs, and they are located in desert, mountainous regions where people are more likely to wear the shoes. Skechers promotes their product in all forms of media including magazines and TV shows. They also use personal selling, sales promotions, public relations, and advertising. The MTV cable channel for example, is one way that Skechers reaches the youth market. Skechers is constantly striving to differentiate their product from strong competition through innovation. Skechers has an edge on the competition in footwear by producing skate shoes, suede sneakers, athletic apparel, sandals, and boots.

RELATED CONCEPTS

This video clip can be used to illustrate the following economics concepts from your text:

• Discuss how Skechers obtains information about consumer preferences (utility) when presenting the model of consumer utility
• Define the marketing strategies through advertising.
• Discuss the factors that contribute to the secret of Skechers success through competitive models like monopolistic competition.
• Use the five competitive forces model to analyze the competition in the footwear industry.