In the long run, this avoidance of consumers generates important limitations in terms of profit generation and market position. Hence the positive impact of the long tail business model! Under the long tail system in Marketing , the market evolves from a mass strategy to a niche trade precisely with the intention of providing products that satisfy consumers with different profiles, needs and expectations. In other words, the essence of the long tail strategy lies in the fact that the sum of the abundant niches generates a greater volume of sales and profitability than the amount derived from the commercialization of the most popular products.
Note that companies that sell a large number of products, including items that are considered very unpopular, may focus their attention on the public outside the Malaysia Phone Number List curve, represented by individuals who are not satisfied with best sellers or top sellers. What are the 3 rules of the long tail in marketing? According to Chris Anderson’s book , the long tail strategy is based on 3 golden guidelines : reduce costs Minimizing costs is essential to qualify your audience and maximize conversions. But how to reduce costs and obtain more profitability? At first, the account does not seem to be justified, however, when we favor collaborative production and inventory movement, we can achieve excellence.
A good way to optimize inventories is taking into account the feedback and opinion of consumers. Develop the niche mindset According to the creator of the strategy, before diversifying the business catalogue, it is essential to know the needs of consumers in order to create combinations of products and distribution mechanisms in accordance with the expectations of the different audiences. launch the products Anderson also argues that the success of the model largely depends on how products or item combinations are launched, as well as the public’s reaction to new products. By taking public perception into account, companies can substantiate their actions or adjust them in favor of public satisfaction.