Influences on marketing - aceh.b-cdn.net



influences on marketingfactors influencing customer choice –PEGSPsychological- Proactive Uses celebrities, such as Justin Bieber, to demonstrate the effectiveness of their product. The celebrities focus on their insecurities which teenagers with insecurities because of their acne can relate to.Then demonstrates a miraculous quick fix when using the product.This advertisement plays on the perception of teenagers and their insecurities to make a sale. Economic- Rivers During the GFC, Rivers ran a successful marketing campaign with clear focus on low prices – shows products with cost advantage over competitors Focuses on a purely economic influence at a time when people were more price sensitive than the previous 7 years (no mention of quality or style)Since campaign, Rivers losses halved from $11 m to $5 m in 6 months 5.7% jump in store sales growth, profit rose 50.6% Government- Protecting Children from Junk Food Advertising Act 2011 Advertising uses misleading marketing messages and psychological techniques with clever market research Plays an important role in promoting unhealthy eating habits, influencing the brands children choose and encouraging them to like salty, sugary or fatty foods In response to this, new laws and restrictions include:No broadcasting unhealthy food ads directed to children No broadcasting unhealthy food ads from 6-9am and 4-9pm Monday to Friday, 6-12am and 4-9pm on weekends Sociocultural- KFC Advertisement for KFC depicts an uncomfortable white cricket fan giving rowdy West Indians fried chicken has been slammed as racist in the USKFC Australia has said the ad had been “misinterpreted by a segment of people in the US” Failed to understand cultural sensitivities consumer laws- WIPD Warranties- LG The Australian Competition and Consumer Commission (ACCC) has instituted proceedings alleging LG misrepresented to consumers with defective televisions that any remedies available were only limited to the LG warranty If the warranty had expired, consumers were told they were only entitled to have the television repaired, not a refund or replacement, and the consumer was liable for the labour costs of the repair Under the Australian Consumer Law, consumers are entitled to refund, replacement or repair, at no cost to the consumer if the product is of unsatisfactory qualityImpact: Cost to business, brand perception negative, loss of repeat customers, negative word of mouth and media attention, customer trust, change in operations (quality of product to last longer) and marketing practices Implied Conditions- MSYTechnology reseller MSY has been fined $203,500 for misleading customers about their warranty entitlements The company stated “we do not carry any warranty claims after purchasing” which is in contradiction to implied conditions in the Australia’s Trade Practices Act MSY was found to exclude their responsibility for providing warranties to customers and suggested that consumers were required to pay for warranties beyond those provided by MSY Impact: Cost to business, brand perception negative, loss of repeat customers, negative word of mouth and media attention, customer trust, change in operations (quality of product to last longer) and marketing practices Price Discrimination- AppleThere is concerns that Apple has engaged in a deliberate strategy of price discrimination in Australia Australian consumers have suffered from significant and unjustified price discrimination, particularly in respect of music downloads from ITunesFor instance, Apple has been selling AC/DC’s complete collection on iTunes for $229.99 in Australia but only $149 in the United States Because of this, there is a need for a range of legislative and regulatory changes to help stop price discrimination against Australian consumers of digital products In particular, there is a need for reforms to copyright law, as well as action under Australian consumer law and competition law Impact: Cost to business, brand perception negative, loss of repeat customers, negative word of mouth and media attention, customer trust, change in operations (quality of product to last longer) and marketing practices Deceptive & Misleading Advertising- Nurofen Nurofen engaged in misleading conduct by claiming its ‘Specific Pain’ range of four products, Back Pain, Period Pain, Migraine Pain and Tension Headache, were formulated to treat a specific type of pain but were found to all have the same ingredients It is a disgusting marketing ploy as many patients were popping multiple tablets for multiple ailments which could lead to overdose Lose brand loyalty, need to amend their marketing practices, breached consumer law and loss of revenue ethical – TAPESTruth, Accuracy & Good Taste in Advertising: Coconut Water Coconut water has been marketed as a healthy alternative to sports drinks and other bottled beverages, yet dietitians say there is little evidence to support the claims It’s been advertised as a source of minerals, such as calcium and magnesium, but it only contains small amounts and is unnecessary for people to drink for health reasons The marketing ploy claims coconut water can assist with weight loss, improving skin tone and help with digestion, yet there is no evidence of these claims Coconut water can cost up to $4 a bottle, yet plain water is the best drink to hydrate your body and it’s free Products that May Damage Health: Arnott’s Tiny Teddies packaging logos include “school canteen – meets amber guidelines” Is their own, unapproved logo on sugary biscuits promoting them as suitable everyday lunchbox items Manipulates parents into believing it is a healthier option and influencing time-poor parents’ purchasing decisions Engaging in Fair Competition: Small Dairy Farmers Family-owned dairy farmers milk is facing large debts due to supermarket milk wars and a deregulated market Market needs to change otherwise business will face bankruptcy Consumers are purchasing cheaper milk products and supermarkets are driving prices so low that the smaller diary businesses will collapse Not getting a fair return for their labour and are being taken advantage of Sugging: Mercury Blue Mercury Blue telemarketing call centre was represented as a “quick survey” under a fake name and were unable to answer simple questions about the integrity of consumers personal information and the use of consumer data Significant downside for any further market research as consumers are more likely to reject future requests to participate in genuine research marketing processsituational analysis – SWOT, product life cycleSWOT-SkodaA global car manufacturer offering a range of cars in a highly competitive and fragmented marketTo improve performance, Skoda needed to assess its brand positioning to grow in the competitive car market Strengths:Used reliable surveys to test customer’s feelingsConcentrates on owner experience rather than salesAs a result, 98% of customers would recommend Skoda as the brand is associated with quality products and happy customers – uses this customer satisfaction to guide its future strategic development and marketing of brand image Weaknesses: Only has 1.7% market share – very small player Partly due to out-dated perceptions – in the past their cars had an image of poor vehicle quality. Skoda changed this negative image through promotional campaigns portraying Skoda owners as happy and content with their cars and that Skoda cars were great to own (change in public perception = increase market share) Opportunities: Differentiate by focusing on existing strengths – providing cars focused on the customer experience – improve sales Threats:Needed to ensure messages were powerful enough in a crowded and competitive market or potential buyers would overlook Skoda – further loss of market share Overcome by offering different cars to appeal to different market segmentse.g. Skoda Octavia presented as a family car while the Skoda Superb presented as a more luxurious up-market-carclear range with competitive pricing overcame the crowded market and built competitive advantage market research Kellogg’sUses market research during the new product development to find out what consumers need, how best to design products and how to promote them Must identify changing consumer needs before developing a new product to reduce risksStage 1: Initial secondary research identified new ideas through investigation of innovative trends and new products in the market Focus groups used to provide research on new ideas and food prototypes Stage 2:Presented selected product ideas to consumers in a survey to determine which they liked most and establish how many people would buy each product Stage 3:Several recipes and packaging designs tested with consumers in a survey to identify preferences Stage 4:Once finalised, the product underwent the ‘in home usage test’ prior to launch to measure the product’s appeal and sales potential Product performed very well, illustrating that market research was valuable establishing market objectivesMaximising Customer Service- Subway5-star ratings for customer service due to listening to its customers Uses online surveys to understand customers better; they tell what’s important to them so Subway works hard to constantly improve their experience Ability to see their sub being made in front of them with freshly prepared ingredients, decide exactly what they want to create something that tastes great but also fits their budget Offers a lot of choices and are known for healthy options, also offers new varieties of subs regularly Sandwich artists can have 1 on 1 conversations with customers throughout the process – repeat customers w/ relationship being built over time Many sandwich artists know their regular customer’s favourite subs identifying target marketsLay-Z-Boy Recliners Due to ageing population -> dramatically increases no. in target market (retiring baby boomers)Also used market segmentation to identify significant longer-term value in young millennials w/ an eye for fashion & design The existing & emerging market represent significant value for the company -> substantial increase in market share by 6.4% from 2017-2018 -> achieves business growth in new & emerging markets developing marketing strategiesimplementation, monitoring and controlling – developing a financial forecast; comparing actual and planned results, revising the marketing strategyApple iPhone discontinuedDiscontinued iPhone 5C in 2014-2015 as it had a poor sales performance – took corrective action to improve future performanceAn alternative low-cost model was introduced, the iPhone SE, in 2016Changes marketing mix annually in order to better suit their target market marketing strategies market segmentation, product/service differentiation and positioningAir Asia Aircrafts spend 20 mins on the ground- industry average is 1 hrOnline/ Self-service check in 1 type of aircraft, Airbus A330, standardisationNo meals in flightsOutsources maintenance- servicing of aircraftQantas/Jetstar Differentiate product through different branding, different target markets Qantas:Prestige & high-quality image for wealthy & niche market:- Offers 1st class- In-flight meals included - Entertainment included - Higher price Jetstar:Mass market, appeals to more consumers, less quality: - Offers only economy & business class - No meals in flight - Entertainment not included - Lower price products-branding-packagingYellow TailProduct innovation strategy:The brand offers wine that is produced without tannin and acid to appeal to customers who don’t like wine or don’t drink, which represents 85% of the population in US Soft and sweet taste in taste (taste different) and as approachable, resulting in an easy-drinking wine that did not require years of experience to develop an appreciation for (appeal to non-wine drinkers) To avoid confusion, consumers could initially choose either a red Shiraz or a White Chardonnay (easy to choose)Can be consumed immediately – no need to keep it in expensive wine fridges or underground cellars to age – simplifying the consumption process (easy to consume) Packaging:Designed with “no wine jargon” as brand understood consumers feel intimated by traditional wine bottles covered with an elitist and sophisticated wine terminology that is often not easy to understand Therefore, idea was to design a simple and unintimidating packaging with an unpretentious text and vibrant colours Consumers can read the name of the grape variety, which is important to American consumers First to use same bottle packaging for both red and white wines, simplifying both manufacturing and purchasing processes Cleary-displayed wines stood out from the extensive choice of intimidating winesOverall:Sold 1 mil bottles in the US in 1 year Fastest growing wine brand in the US (becoming a leader in the market) Learned how to position itself in an unexploited market segment by creating value and differentiating itself from well-established competitors Innovative strategies take consumer needs into consideration Price - skimming, penetration, loss leaders, price pointsPenetration-AldiAldi has created a new market segment distinguished by price within the grocery industry in Australia As Aldi grows in market share, it is placing downwards pressure on prices This can be seen in the recent price-focused marketing campaigns initiated by its competitors; Coles “Down, Down, Prices are Down” and Woolworths “Cheap, Cheap” campaigns There is a perception amongst consumers that low prices commensurate with low quality, however, this is not the case and thus Aldi has uniquely aligned low prices with high quality – this is what distinguishes the brand and explains the rapid growth (both domestically and internationally)Penetration pricing is used for low cost sourcing and low prices This strategy ensured that Aldi experienced sustained growth since it set up stores in Australia Aldi ensures their prices on the range of products it offers are much lower than that of its competitors Aldi’s entry into the Australian market was premised on research that indicated there was a need for a low cost supermarket chain, so their effectively price setting as there was no effective competition Promotionelements of the promotion mix – advertising, personal selling and relationship marketing, sales promotions, publicity and public relationsSales Promotion- Dominos Domino’s AnyWare allows Domino’s to be ordered at the fingertips of customers at all times This multi-channel (text message, Twitter, Android, etc) approach to interfacing with customers gives the potential to capture a lot of data which allows in depth customer segmentation which Domino’s uses to improve efficiency of their marketing The information collected through the sales system gives Domino’s the ability to assess consumer buying patterns, who is the dominant buyer within a household, who reacts to their coupons, and how they react to the channel they’re getting Domino’s from This means Domino’s can present different coupons and product offers to tailor to the individual consumer Domino’s now processes approx. 55% of orders via online systems which gives them insights into customers and practices, leading customers to have a better, faster and more quality-based experience (competitive advantages) Online discount offers and on time delivery enables high market share Promoting online sales channel offering discounts helps to increase customer satisfaction by offering convenience and cost control Mobile apps and channels was the largest boom to Domino’s product sales which became popular because of its customisation features Place/distributionDarrell LeaIn 2012, the business was purchased to revive the brand after it collapsed, implementing significant restructure of the brand Darrell Lea products continued to be produced and sold to wholesale customers as well as 1200 licensed retailers The remaining 27 “Darrell Lea” branded company-owned stores closedTo rescue the well-known brand they did supermarket distribution deals such as IGA, as well as David Jones, Big W and Australia Post as stockists Darrell Lea’s poor performance in identifying consumer trends and in pushing its products into new distribution channels most likely pushed the brand into administration They needed to close down stores and look at other forms of distribution Darrell Lea has a 70% share of the liquorice market and 10% share of the “chocolate bites” market competing with brands like M&Ms and MaltesersTiffany & Co Profit rose 53% because of the retailer’s priority of delivering an omnichannel (physical stores and online) experience for customers Emphasis on positive customer experiences through all channels has resulted in sales, profits and market share increasing Through non-store retailing of internet marketing, Tiffany’s reaches more than 40 countries and brings in additional customers who are highly fashion conscious and shop online Tiffany’s has also improved its physical stores through enhancing store presentation to be more engaging and modern To remain of one of the most exclusive luxury jeweller, Tiffany’s operate exclusively with manufacturing by owning and controlling majority of the channels of their organisation to control the quality throughout the entire process Uses exclusive distribution (only one retail outlet for their products) which ensures it is the industry leader in the jewellery trade and allows their products to retail at a high price because you can’t get it anywhere else As an independent luxury retailer, Tiffany’s ensures its exclusive image by selectively distributing retail locations around the globe only in Central Business Districts and popular shopping centres The minimal locations retain their luxury image Retain and entice customers through the distribution channel due to the luxury and exclusivity of their products ................
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