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Marketing: “How to Make Choosing Easier” by Iyengar

The problem of choice paralysis is acute due to such processes as new consumer attitudes, new IT opportunities, and the psychological and economic restructuring of the supply – demand ratio. The classic marketing model is still applicable; nevertheless, it is crucial to develop preventive measures that will enable companies to surmount the hyper competition.

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During the past decades, the power has been passed from the manufacturers to distributors, which led to a reduction in the number of competitors along with an increase in the number of brands. The launch of new brands is becoming cheaper; the number of new brands is growing, which, in its turn, constantly reduces the lifecycle of products (Kotler et al. 2013). The Internet promotes new brands and business models, which consequently results in the increased competition in the market.

At present, the market is broken up into smaller, less profitable niches; the diversity within the categories of goods goes up drastically reaching the saturation point (Kotler et al. 2013). The intense advertising has created such a psychological incident when consumers are reluctant to perceive any kinds of commercial communications.

The contemporary marketing processes have become more complex on account of a constant struggle with the excessive fragmentation of markets, the daily influx of new products and market glut. For instance, the consumers are incapable of choosing from the array of options as the new varieties of existing goods and services continue appearing (Iyengar 2011). The companies utilizing this strategy follow the vertical marketing system and orientate towards the fixed market (Kotler et al. 2013). However, this approach takes its toll on the customer’s decision-making and reduces the company’s competitive dynamics.

Sheena Iyengar has offered a concrete solution to the choice overload issue, and this solution can be used as guidelines to enhance sales by eliminating the immense amount of similar choices (2011). The first step is to make cuts to the variety of redundant options the company offers. By reducing the number of offerings, the company will be able to stress out the real value of the goods, lower the costs and boost sales in the long-run. The second step is to concretize what the company is offering and make those offers more tangible, which will eliminate the cognitive overload of the prospective customers and assist them in making the precise choices.

The third step is to categorize the options to facilitate the differentiation of products or services (Iyengar 2011). Thus, the customer will be able to choose among the most relevant variants. Finally yet importantly, the fourth step is to condition for complexity. This approach will maintain the consumer engagement while presenting the value through appropriate customer guidance.

To sum it up, the choice overload is the implication of excessive market segmentation aimed at satisfying the diverse customer needs. Nonetheless, the enormous quantity of offers prevents customers from making purchases and reduces their engagement. By disentangling the customers from too many options, companies will be able to enforce the client’s decision-making and enhance sales.

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Reference List

Kotler, P. T, Armstrong, G, Trifts, V & Cunningham, P. H 2013, Principles of marketing, Pearson Canada, Toronto.

Iyengar, S 2011, How to make choosing easier. Web.

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