Drucker, defines strategic marketing as a process that consists of analysing environments; the competitive and business factors that affect the corporation and its business units, identifying market opportunities and threats, forecasting future trends in business areas that are of interest to the enterprise. It is also setting objectives and formulating Corporate and business unit strategies. And it is selecting target market strategies for the product markets in each business units, establishing marketing objectives as well as developing, implementing and managing marketing program positioning strategies to meet the needs of the target market (Mongay, 2006:3).
Technological innovation originates in research and developments by both organisations and the state, results not only in new machinery or products but also in new processes, methods and even approaches to management, all of which bring about changes in the environment (Jooste, 2012:32).
Looking at the clothing industry of South Africa, the new technological methods to be considered are in terms of payment options for customers, being able to access their account information, anywhere online, and most importantly the convenience of shopping online.
YDE understands that their market involves customers who are busy, and do not have time to be going into the store to pay the accounts, so they give their customer five options in terms of method of payment; internet banking, debit order payments, ATM, cash desk in store (pay while shopping), and payment via post. With such a variety of methods to pay, it is safe to say that YDE customers have the choice to choose a payment method that best convenience their everyday lives (YDE Payment options, 2012).
YDE accounts can also be open online, therefore customers can go online to update their details, check their statements, and get information about what is new. This method saves money for YDE and is a good way to conserve the environment as, less paper is been sent to customers via mail, informing them of their balances etc.
The newest trend in South Africa is the convenience of being able to do shopping online. Today, South Africa’s online fashion space is largely dominated by the likes of Rocket Internet’s Zando, Superbalist, Spree of Naspers and long-standing retailers like Woolworths and Mr Price. Between one and two per cent of South African retail is done online, it might be bigger than 30% per year (Ventuburn).
And truth of the matter is that its percentage is growing as more and more people are developing the culture to shop online. And this is a trend that YDE should start following. As most of their target market prefer online shopping.
The most recent technological trend, that is a threat to YDE is social media; people have established their own shops/ boutiques in the social media space, where they post items such as clothes, accessories and shoes online, that are chic, fashionable and appealing to the youth, for purchase, this market is growing as more and more young people are buying from these “social media stores”.
YDE can turn this threat into an opportunity by having sales agents online, hiring young trending individuals to sell their products via social media, ensuring that specific designers are hired to tailor these items, so that there is a difference, that makes the social networks store have its own unique culture that attracts customers, knowing that, what they purchase from the sales agents, is not what they can purchase at any other YDE store.