Sunday, 12 April 2009

Business to Business Marketing


The business market can be defined as "all the organisations that buy goods and services to use in the production of other products and services, or for the purpose of reselling or renting them to others at a profit" (Kotler, 2008). There are many types of organisations that benefit from B2B marketing, including: institutional organisations such as community-based and not for profit organisations; Government organisations such as health, education, environmental protection, policing, transport and national defence and security; and commercial organisations including distributors, original equipment manufacturers, users and retailers.

In many ways business to business marketing is very similar to marketing to the customer. The same questions must be posed in order to determine the specific target audiences: who the buyers are and what are their needs, how the buying decisions are made and what factors are likely to influence these decisions. However, there are also many differences in marketing to businesses rather than to consumers, one reason being that "business markets involve far more money and items than do consumer markets" (Kotler, 2008). As an example, there are a huge number of transactions that take place during the production and sale of a single set of Pirelli tyres, including the use of various suppliers of rubber, steel, equipment and other goods required to produce and develop the product. The finished tyre is then sold on to the retailers who then sell the product on to consumers.



"Business to business is about meeting the needs of other businesses, though ultimately the demand for the products made by these businesses is likely to be driven by consumers in their homes" (B2B International).

There are four key characteristics that clearly define the difference between business to business and business to consumer markets:

The decision making unit is far more complex;

  1. Business to business products and their application are far more complex;
  2. They address a much smaller number of customers who are very much larger in their consumption of products than is the case in consumer markets;
  3. Personal relationships are of critical importance in business to business markets.
(B2B International)

One of the most neglected marketing opportunities in the business to business arena is the building of a strong brand, especially in the rapidly changing environment where it is becoming increasingly difficult to distinguish one product from another.

Kotler (2008) explains that the most influential characteristics of business to business marketing are that these markets contain fewer but "larger" buyers, purchases are likely to be very high risk, meaning that if the product was not suitable or were to fail it is likely to cause major disruptions in the function of the business. Business customers are likely to be more geographically concentrated in the way that the majority will be based in the larger cities of the world rather than smaller villages for ease of access and communication. The demand in the business market derives from the final demand of the consumer in the way that, for example, if there was to be a higher demand for Coca-Cola, the products required to produce the drink will ultimately need to be increased in order to satisfy the overall demand. Business markets are not affected immediately if prices were to change. An increased number of people are involved in the decision making process within business markets and a more professional purchasing effort is involved. The buyers and sellers within business markets work closely together in order to build successful long term relationships.

This Coca-Cola advert below "the Coke side of life" demonstrates the aspects involved in the creation of each individual product. It is portrayed in a conveyor belt style with each development shown during the process of the making of the drink from the initial thought to the delivery to the consumer. It encourages the consumer to appreciate all that goes into the production in order to satisfy our needs with the use of intriguing imagery and complex scenes that are full of detail.



As with business to consumer marketing a model of buyer behaviour is available to determine the processes in which the consumer goes through when purchasing a product. In the business market, this process is far more complex and involves many high risk decisions from all areas of the business. The model shows the ways in which marketing and other stimuli can affect the overall decision and therefore, the final response from the buyer. The four P's still exist in the business model, being the major form of marketing stimuli, as well as other stimuli including economic, technological, political, cultural and competitive. These stimuli are acknowledged and responses are delivered accordingly with regards to product or service choice, supplier choice, order quantities and delivery of goods.

In cases within B2B marketing, organisations develop a partnership with their suppliers and other associates in order to exceed the level of demand and provide first class, value for money products for consumers. An example of this is the hugely popular Swedish born retailer IKEA who not only buys from its suppliers, it also involves them "in the process of delivering a stylish and affordable lifestyle" to its' customers. A case study into real marketing taken from Kotler's Principle's of Marketing states that the organisation could not survive without the support from all the suppliers, manufacturers and designers etc in order to continue to develop and produce highly popular and durable products. IKEA state that they always buy resources in bulk on a global scale so as to be in the position to offer the best and lowest prices to the customers.



There are three major types of buying situation involved with business to business markets: the straight rebuy which tends to be a fairly straightforward purchase in which a reorder of an existing product is made with no modifications; the modified rebuy may involve negotiating on the price of the product in question, altering the product specifications or even changing suppliers; and finally, the new task is where a product or service is purchased for the very first time by the organisation.


The buying centre or decision making unit of a business incorporates all the individuals that are involved in the buying process. There are five main roles within this unit including the users who will ultimately use the product or service; influencers who "help to define specifications and also provide information for evaluating alternatives;" buyers who generally tend to select the suppliers and negotiate purchase terms; deciders are the individuals with the power to select or approve the final suppliers or product; and gatekeepers "control the flow of information to others" (Kotler, 2008).


It is important to consider the total number of businesses that are involved in helping other businesses run successfully. For example, product manufacturers and suppliers require assistance and services from many sectors including gas, water and electricity so these individual companies must develop marketing strategies specifically targeted at fulfilling the requirements of the business so that they fend off competition and win contracts. With services such as those offered by PR, Marketing and advertising agencies, it is important to build a close relationship and ultimately build trust and manage efficient customer relationship management strategies due to the fact that in the business world there are far fewer customers in comparison to B2C markets and they cannot afford to lose any. The forms of marketing communications used within business to business selling differ greatly from B2C markets in the way that majority of marketing spend goes towards personal selling. This is due to the fact that purchases are generally larger and of great value increasing the need to build a close and trusting relationship and get to know customers on a more personal level. Personal selling is followed by sales promotion as price is always seen to be one of the most important aspects for an organisation to consider. Occasionally, products or services are not always bought for cash. In some instances services have been exchanged between two companies (also known as reciprocity) for example, a software company and a car dealership where computer software may be exchanged for company cars etc. Leasing is also becoming a popular option as some products may be too expensive for organisations to buy outright or may be likely to need updating in the near future.

Business to business marketing is present in all industry sectors although some are more obvious than others. After gaining experience working for two companies that provide business to business services, it is clear that services provided specifically for businesses are imperative when considering the possible success of the business. One company I previously worked for provides counselling and psychology services to other businesses including popular high street banks and police forces. The services provided have shown to have an immediate effect on employee performance and retention but in the long term, the services provided to customers of the client are greatly improved helping to develop a good reputation for the brand. This proves to be an effective example of business to business partnerships reinforcing the fact that "demand is derived from final consumer demand."

Friday, 27 March 2009

Cultural Aspects of Marketing and Advertising

"The culture of a society consists of the language, common attitudes, beliefs, ways of living and acting that are passed on from one generation to another by means of social agencies and institutions such as the government, the family, peer groups, schools, religious institutions, universities, workplaces, the police and the media" (Wright, R. 2000).

Culture is one of the most important aspects for marketers and advertisers to consider when delivering a product or service to an audience as it determines the "overall priorities he or she attaches to different activities and products. It also determines the success or failure of specific products and services" (Solomon).

Greece has been chosen as my topic of research for this posting as I have a special interest in the country as a whole and also the cultures, traditions, characteristics and people that can be associated with the country, as a result of choosing it as a holiday destination for many years and also having the fantastic opportunity to work in a popular resort on one of the Islands.

Greece is a country that possesses many diverse cultures, all of which are influenced by their location. Although the underlying characteristics appear to be similar, as displayed in the box office hit; My Big Fat Greek Wedding which strongly gives the impression that the Greeks are very proud of their country - they are very proud to be Greek, and are set in their ways about how each member of the Greek community should live their lives i.e. women should get married...to a Greek, have Greek babies, and feed everyone, whereas the Greek men play a very different role in the way that they spend a lot of time away from home earning a living and very much play the dominant figure. In many cases this is the way many Greeks live and it is also interesting to see that even though the film is based in America, the characteristics are still very much prevalent although each different community has it's own special characteristics that make it unique from other parts of Greece.



"Greeks from the mainland and the Greek Islands, are particularly proud of their culture and country and speak of them with intense passion feeling that their culture is a definition of their national and ethnic belonging. Traditions, music, religion, language, food and wines are the major composites of the Greece culture and constitute the base for those to visit the beautiful country" (Greeka.com).

Here is a video explaining some of the reasons behind why the Greeks are proud to be Greek!




The Greeks are considered to be deeply religious and take great pride in celebrating the many traditions up to this day. The main religion throughout the country is Christianity, but is also one of the only countries left that still has its own Orthodox religion. They are seen to be very superstitious although the characteristics of these vary greatly even amongst different villages. In many areas, but mainly by the elderly women, bread is seen to be a gift of God and to celebrate this the women cut the sign of the cross into the bread before cutting it. Many Greeks believe that someone can catch the evil eye (Matiasma) from another person's jealous compliment or envy. If a person is believed to have "caught" this, they will feel both physical and psychological pain. In order to avoid this, many Greeks wear a blue bracelet with a glass pendant with an eye painted on it as blue is the colour that is seen to ward off evil.

As mentioned above, the Greeks love to celebrate traditional festivities which often involves large parties. They have celebrations that we do not have in the UK such as Name Day celebrations which are perceived to be more important that birthdays. This is due to the fact that many Greeks owe their name to a religious saint that is worshipped in the church. Celebrations take place on a given day every year all over Greece and friends and family visit without invitation to offer their wishes as well as small presents, and are offered in return pastries, sweets and hors d'oeuvres provided by the hostess of the house.

Easter is one of the most highly celebrated traditions throughout the whole of Greece, even more so that Christmas. It is seen as a celebration that involves the whole community with everyone attending church on Easter Saturday (Megalo Savvato) during the night, followed by a feast enjoyued by the whole family. Easter Sunday is celebrated with friends and family with a spit-roast lamb, various traditional Greek appetizers and lots of wine and ouzo, followed by dancing and celebrations into the night! Godparents have a hightened role at Easter time also as they traditionally buy new shoes, clothes and a candle for the children. The women also dye eggs in red.


Greek Music

The Greeks love music which fits in with their love of celebrations and partying - they are always up for a good time! The traditional music styles vary greatly amongst each community with each area or island having different instruments and specific dances. The popular music is widespread and has a pop/R&B feel to it and is also very catchy...have to say it made me feel very nostalgic listening to all the music again, thoughts of sun, sea and sand come to mind! Below are a few examples of the popular music that was in the charts in 2008...enjoy!



Greece is a very popular destination for film directors to base their films, the most recent and highly successful one being Mamma Mia, set on the islands of Skopelos and Skiathos.


The 2001 box office hit Captain Corelli's Mandolin starring Nicholas Cage and Penelope Cruz was also filmed in Greece on the beautiul island of Kefalonia.


Greek Adverts

I have found two good examples of Greek television advertising, one for ice cream and the second for a traditional Greek drink, Ouzo. They are both set in traditional Greek locations - the first one on the sea front with a small kiosk selling snacks...a regular sight throughout Greece. The second is on a boat in the ocean, demonstrating a picturesque Greek scene, one that is associated with the laid back, summer lifestyle of the Greeks.




The Greeks are a very competitive nation, and have the fighting spirit that encourages them to beat the best and win whatever they may be doing. They are very keen football fans, following teams such as Olympiacos and Panathiaikos, as well as following many international teams. They also take part in many international competitions including the eurovision song contest...have a listen to their very popular song from 2008!


Social Class

"Social class is a division of society made up of persons possessing certain common social characteristics which are taken to qualify them for intimate, equal status relations with one another, and which restrict their interaction with members of other social classes" (Krech, Crutchfield and Ballachey, 2000).

A person's social class can be determined by many factors including education, occupation and income and also by what they do or do not have. Social class not only determines how much money people spend, it also delves deep into the complex theory of how the money is spent for example, the majority of people who have always been very affluent do not feel the need to prove that they have the money, whereas the people who have recently come into money, possibly after winning the lottery or gaining a lot of inheritance, may be more likely to indulge in luxury products in order to "promote" their new found wealth.

TV personalities such as the X Factor judges above are examples of people that may not have always been wealthy but have used their ambition, talent and drive to work through bad times and move up the social ladder in order to be the successful celebrities that they are today.

The way in which the specific social classes are perceived in society can be closely related to the "pecking orders" seen in many animal species. A hierarchy is visible in which people that are categorised as being of upper class status may feel that they are far more superior to those of working class status. Many people in the middle and lower classes appear to be highly motivated towards working their way up the social ladder to achieve a higher status and gain more access to resources such as housing, education and consumer goods. It is the desire of marketers and advertisers to target this constant urge to move up the ladder and develop effective marketing strategies to satisfy this consumer need (Solomon, 2006).

The individuals that make up each category of class, whether it be working class, middle class or upper class, are perceived to be equal in terms of their incomes and social status. "They work in roughly similar occupations and tend to have similar tastes in music, clothes etc" (Wright, 2000). Research into social class also suggests that people within the same class share similar values and ideas, and also tend to socialise with one another however, this last aspect may not be 100% consistent among the "group" members. Wright (2000) states that the difference in the distribution of wealth among the classes "is of great interest to marketers, since it determines which groups have the greatest buying power and market potential."

Although the concept of social class is a significant aspect to consider when categorising consumers as many marketing strategies target the different classes (upper, middle, lower and working classes and the sub-classes found between these categories). There are many reasons that have been found in which social class information has not been used as effectively as it could have been in marketing campaigns as a result of the following: marketers have ignored status inconsistency; ignored intergenerational mobility; ignored subjective social class (i.e. the class a consumer identifies with rather than the one he/she objectively belongs to); ignored consumers' aspirations to change their class standing; and also the social status of working wives with many more now going out to work and focusing on a successful career, either instead of starting a family or as soon as possible after starting a family (Solomon, 2006).

It is clear to say that poor people or those that can be associated with the working class status have less to spend than those of a higher status as a result of lower income, although in many cases they tend to have a greater share of expenses including health care, rent and food consumed at home. It is stereotypical to say that people in this class may have many children or be single (mainly female) parents and are possibly unemployed. This "community" may feel alienated to the rest of the world as a result of the constant drive and exposure of the media and other communications to encourage everyone to be successful and better the people around you.

"Working class consumers tend to evaluate products in more utilitarian terms such as sturdiness or comfort, rather than style or fashionability. They are less likely to experiment with new products or styles, such as modern furniture of coloured appliances" such as the kitchen featured below(Solomon, 2006).


We are constantly being exposed to images of the rich, famous and successful with barely a glance on the less fortunate. This portrays the idea that only the best will do and encourages people to never settle for second best but only the few with the drive, passion, enthusiasm and determination to succeed will survive and go on to be the Alan Sugar's and David Beckham's of today. It makes sense for marketers to target this affluent market as they have shown that they are willing to go to any lengths to be the best...and what better way to do it than buying designer clothes, driving flash sports cars and taking luxurious holidays on a private Sunseeker yacht?!


Solomon (2006) states that people within the upper classes should not be placed in the same segment due to the fact that there is far more involved than just high income. This section of the social ladder is seen to be more about a way of life in the way that attitudes and even cultural characteristics may be altered among many other aspects. The interests of these consumers differ greatly from the interests that are associated with the lower classes from sporting events to cultural activities. Spending priorities may be significantly affected by many reasons such as "where they got their money, how they got it and how long they have had it."

In comparison to the consumers of the lower classes who tend to stick with what they know rather than experimenting with elaborate new products, the upper class are likely to try out the new modern twists as they are very "concerned about appearance and body image" and as a result of this they are also more health conscious regularly choosing the diet option in food and drinks (Solomon, 2006).
People that have always had a lot of money and therefore have always been in a position to buy anything they want "no longer revolve around the amount of money they have." The important aspects in these situations tend to be how the person came to be so rich and also how the money is spent - do they donate to charity, buy luxury cars, have a large stately home or just enjoy the simpler things such as dining out with friends, for example rather than constantly feeling the need to be materialistic and "show off" what they have?


The Harrods Sale TV advert shown below clearly demonstrates the way in which the upper class sector is targeted, down to smallest details including the type of music used which in this case is of classical style portraying a sense of elegance, accompanied by the stylish, sophisticated background and the products being promoted.

Personal evaluation seems to be a compulsory part of everyday life with the constant need for people to feel that they must compare themselves to others in terms of their professional accomplishments and their material well-being. We are all very familiar with the phrase "keeping up with the Joneses" which compares your personal standard of living to that of your neighbours who always appear to be significantly better off, with better behaved children, a neat and tidy house, nice clothes = "the perfect lifestyle." The clip from the TV sitcom "Outnumbered" is a perfect example of this status, showing how the neighbours appear to have the perfect lifestyle and have have a far higher status than that of the main character's.

Friday, 6 March 2009

Are kids growing older younger?

Kids have a huge spending power of over £13 billion per year and are specifically targeted by marketers and advertisers as a result. It has been proven that kids love advertising and pick up on the messages portrayed really fast, thus encouraging them to buy products more readily than their parents. This love of advertising material mixed with the need to constantly want something new or something that is considered to be "cool" in the school playground may result in the art of pester power where kids will nag their parents indefinitely until they manage to persuade them to buy the brands that they want. This may go on for days, weeks and months, or even years depending on the impact and price of the product in question. The kids may resort to cleaning their bedrooms, washing their parents cars or doing general household chores in order to get the answer they so desperately want.



Pester power is seen to have increased over recent years, possibly due to the fact that children are being swamped by so much advertising. "Toddlers stand transfixed by the sight of their favourite cartoon characters on cereal packets" and more often than not "have television advertising jingles word perfect" while they are still "small enough to fit side by side on the sofa. By the time they are teenagers, they are finely attuned to brand names." (Telegraph, 2008)

It has been found that kids must by a specific brand of product - one that has been advertised on TV, one that their favourite TV character or sports idol wears, or one that everyone at school has got. Brands create an identity, a sense of belonging and also, in some cases they can create exclusions, in the way that for example, wearing the wrong or "uncool" brand of trainer to school could be detrimental to that child's place in a group. Therefore, kids buy a specific brand in order to to perceived as a specific identity whether it be unique and individual or to fit in with a group. According to marketers and advertisers, this basically states that if there is no brand, there is also no identity, in which case their job could be deemed almost useless in the way that there would be no-one to target directly and if kids were to not follow any brands there would be no consumer loyalty and no competition to be the most popular brand.



Many adverts target protective parents who think of their child as being extremely vulnerable, no matter what age they may be, and want to protect them in any way that they can. However, in comparison to this, many adverts target the parents that are trying to encourage their children to grow up faster and become more independent.



A feature in the Daily Mail has backed up the idea that children are growing older younger and in particular, girls are at the forefront of this. The Rise of the Child Women illustrates the increasing desire for young girls to leave their childhood behind with the obsession of "manicures, diets and dreams of breast implants." Glossy magazines such as Heat and Look are major influencers of these "new breed of girls" who fashion themselves on the celebrity icons featured in the magazines. Girls in this "category" who in many cases are no older than 10, style themselves on celebrities including Jordan aka Katie Price and Paris Hilton. Bob Reitemer, chief executive of the Children's Society comments on a recent two year study into childhood in the UK, "there's no doubt that we are putting so much pressure on our children today to grow up too quickly,. What really worries me are the increasing levels of anxiety among children, especially young girls, who feel they are not thin enough, not beautiful enough, and compare themselves to the impossible images of their airbrushed idols in magazines." (Daily Mail, 2009)

The girls are obsessed with make-up, hair and fashion spending all their pocket money on cosmetics, clothes and ways to make themselves feel or look older. Horrifyingly, many are also putting money aside for future cosmetic surgery...from the age of 10 years! TV shows and films that centre around relationships and the constant need to look good including friends and The Devil Wears Prada are favourites among this category feeding their need to be fashionable, skinny and beautiful.

Studies undertaken by Mintel in 2008 investigate how "manufacturers capitalise on the growing financial independence of young consumers with less advertising." This research suggests the ways in which the attitudes and patterns of spending among the younger generations are changing with regards to the current economic situation which may result in parents not being able to give their children so much pocket money, attitudes of the children and the pressure to follow fashions, fit in with the crowd and be more independent. Sales of "junk food" such as crisps, sweets and chocolate have seen a huge decline as a result of the constant emphasis on healthy eating and childhood obesity with parents limiting the amount they purchase and children spending their money on clothes and cosmetics instead. The constant desire for children to look like the images of airbrushed celebrities that they are so often exposed to in magazines and on TV create the need to buy more clothes and make up, many times as a result of peer pressure and the need to "fit in with the crowd."

Attitudes of money vary greatly between ages with 7-10 year olds being the most likely to save money that they receive and chilren over 11 spending money "without thinking about it." With an increase in the choice of savings accounts aimed at children in banks and building societies, there is the urge for parents to encourage their little ones to save money so that they have their own funds available to buy something if the need arises. These small lessons early on in life will provide children with valuable skills for the future. The emphasis on healthy eating and a healthier lifestyle is encouraging parents as well as children to contribute more money towards healthier food options and also sport and other leisure activities.

Generally, the amount of pocket money a child receives nowadays is a lot less compared to previous years, although many are not reliant on just one source. Grandparents still tend to provide funds despite the fact that they are having to watch their own income a lot more closely due to inflation rates of general household bills and food.

Family Values and the Family Life Cycle




Buyer behaviour is strongly influenced by family members and the values shared within a family unit. Throughout life there are generally two types of family that a person will experience; the family of orientation which is the family you are born into, and the family of procreation which is the family founded through marriage. Families provide a person with an "orientation towards religion, politics and economics, and a sense of personal ambition, self worth and love" (Kotler, 2008) and the variations that a person may be exposed to throughout life could affect their values and ultimately buying behaviours. Kotler states that even if an individual no longer interacts with their parents in the same way that they did as a child, their buyer behaviour can still significantly be influenced as a result of specific values that they were brought up with. In many countries, families stay together throughout life with the parents still living with the children or staying very close geographically and therefore continuing to have an crucial influence on values and behaviours. As well as these aspects, decisions can also be influenced by a person's individual characteristics such as age and life cycle stage, occupation, economic situation, lifestyle, personality and self-concept.




Extensive market research has been carried out focusing on the family of procreation as they are known to have a direct influence on everyday buying behaviour especially with regards to FMCG products. Marketers are interested in the specific roles played by each person within the family unit and the level of involvement issued by each person. It has been recognised that as consumer lifestyles evolve, the roles displayed in a family also change. Traditionally, the wife is seen to be the main purchasing agent for the family but as lifestyles change and the number of women focusing on a career is dramatically increasing, their involvement and role in buying also changes with the husband making more of an impact on the overall decision



The role a child plays within the decision making process is also seen to be changing as they are seen to be having a stronger influence on purchase decisions, especially the major and more expensive purchases including holidays, cars, electrical products and even on what they eat. One way in which a child influences a purchase decision may be whilst food shopping. Marketers target children to encourage impulse buys as they are very easily influenced by stimuli such as packaging that may feature their favourite animal or cartoon character or even advertising that they have seen on TV, encouraging them to pester their parents until they get what they want.


"Children undergo a process of socialisation whereby they learn how to be consumers. Some of this knowledge is instilled by parents and friends, but a lot of it comes from exposure to mass media and advertising. Since children are in some cases so easily persuaded, the ethical aspects of marketing to them are hotly debated among consumers, academics and marketing practitioners" (Solomon, 2006).
A case study on the influence of children on buyer behaviour suggests that "children are exerting more influence over family buying decisions" and this may possess certain implications for marketers, retailers and brands. In a decision making unit, there are generally 5 different roles: initiator, influencer, decider, buyer and user and it is clear that children are more often than not the user. As children are the buyers of the future, it is important for marketers to shape initiatives at this early age to develop brand loyalty throughout life. Products must now appeal to both the parent and the child due to the heavy influence of pester power whilst shopping. If a product is portrayed as being healthy and high in essential nutrients for the parent's requirements and is seen as being "cool" and popular among children, it is more likely to be a success in the market.
There is a gradual change in the types of products and services that an individual buys over a lifetime as a result of changing tastes in food, fashion, furniture and recreation. For example clothing styles that appeal to people in their 20's will not have the same appeal to those of retirement age. The Family Life Cycle, or FLC, is also a major influencer in the buyer decision process and is used by marketers to develop appropriate marketing plans for each stage. As an example, Mark Warner the "feel free" package holiday company offers family orientated skiing and water sports holidays with an emphasis on kids' clubs, and "no kids" holidays for couples wanting to escape from them (Kotler, 2008).


Pivotal events in the family life cycle, such as children moving out of home and getting married or losing a loved one, tend to alter role relationships and "trigger new stages of life" which in turn can modify priorities. Significant changes in expenditure are likely to accompany changes in the FLC as a result of buying a first home and starting a family or having a diminishing income if a member of the family retires.

These characteristics are stages in which all individuals will go through at some stage in their life and at each stage there are different patterns in consumption and buyer behaviour. As stated in Solomon (2006) "young bachelors and newlyweds have the most modern sex-role attitudes, are the most likely to exercise regularly, go to pubs, concerts, the cinema and restaurants and they consume more alcohol." Families with young children are very different in comparison as they are likely to have a lower disposable income and purchase only the necessary products.

In the early stages of the FLC the value of large and high involvement products such as houses, cars and durable goods are lower, but soon increases as consumers move through the "full nest and childless couple stages."

Decision making is a term used to describe to process by which families make choices, determine judgements and come to conclusions that drive behaviours (Scanzoni and Polonko, 1980). "Individual members of families often serve different roles in decisions that ultimately draw on shared family resources" (Consumer Psychologist). If a situation arises where each member of the family is involved in the decision making process, conflicts may occur due to differences in preference and need although price tends to be the main issue when the overall decision is to be made. There are many factors determining the degree of family decision conflict including the following:


  • Interpersonal need (a person's level of investment in the group);
  • Product involvement and utility (the degree to which the product in question will be used or will satisfy a need);
  • Responsibility (for procurement, maintenance, payment etc); and
  • Power (or the degree to which one family member exerts influence over the others in making decisions) (Solomon, 2006).

"Democracy in families is growing fast. Consequently, there is a strong move from individual to joint decisions, which has serious implications for advertising" (Bronner, Admap 2004). Traditionally, products such as cars and electrical products are seen to be chosen by the husband of the family although due to the change in lifestyle and the requirements for the product the wife is now a major influencer and in some cases the child too. In order for a family to come to an agreement about which product to purchase, 10 influencing strategies are used:

  1. "You scratch my back, i'll scratch yours" meaning that a compromise is made so as to satisfy each person;
  2. The golden mean which is more a strategy of give and take and reach a compromise or a reasoning to be able to come to an agreement;
  3. Persuasion;
  4. Emotion;
  5. Internal expert in which a family member attempts to persuade others that they know more about a particular field in which a choice has to be made;
  6. Delegation;
  7. Socialisation where the parent attempts to teach the child about how to become effective consumers with regards to price/performance etc of a product;
  8. White lies which involves a member of the group distorting reality in order to try to persuade other members that a certain purchase would be the best option;
  9. Authoritarian where someone in the group takes a leading role "without justification on the basis of expertise" for example the husband taking charge when deciding on what car to buy; and
  10. Throw a dice involving a random strategy in order to come to a decision

(Bronner, Admap 2004).

Sunday, 15 February 2009

Generational Marketing

The way that a product or service is promoted relies on many characteristics that are present within different generations. As a result of varying belief systems and values within the different variations, it is imperative that marketers thoroughly research the targeted generation in order to convey the proposed messages accurately and effectively. This effect may be acheived by focussing on lifestyle characteristics, buying behaviours, and demographic factors including income, education and gender. As well as these characteristics, experiences shared by the members of each generation including: cultural, global, economic, political and technological influences may also have a huge influence (Brandeo).

There are four main generational categories that marketers tend to focus on. They include:
  • Millenials or Generation 2001ers, born after 1980;
  • Baby Busters or Generation Xers born between 1965 and 1980;
  • Baby Boomers born between 1946 and 1964;
  • Mature Citizens born between 1909 and 1945.

Tweens are a youthful generation that can be categorised in the Millenials or Generation2001ers and fit into the 8-14 age bracket. It has been identified by marketers and advertisers that this segment is a popular and successful target audience as they tend to follow any fashion trend set for them, they no longer see themselves as children and are believed to be growing up too fast, although marketers use this sense of 'maturity' and 'sophistication' in order to place products in the eyes of the tween consumer to convince them that they need the product in order to appear 'older' and cultivate a sophisticated self-image.


The tween market has huge spending power and are specifically targeted by marketers for their money. The values and attitudes of this segment are constantly changing so any brand positioning for this generation must be carefully placed to keep up with the changing landscape. Tweens now tend to follow fashions and current music trends, for example, in order to define their individuality, rather than simply playing with toys. Popular television/film figures that tweens appear to follow include Hannah Montana and Harry Potter. They may aspire to be like the character in the programme, desiring to experience their fame, independance and individual styles and trends. Tweens are viewed by marketers as "consumers in training" because brand loyalty of many products is developed at this age i.e. someone who purchases a certain brand at this young age is more likely to continue purchasing it throughout life, especially if it is one regularly used by their parents too.


At this stage in their life, a tween will face many tough and life-changing obstacles such as the transition from primary school to secondary school which to many, if not all, may find highly daunting and unappealing, moving away from the safety and familiarity they have known, to leaving friends behind, having to get to know new people and make new friendship groups. They are also at the age where they will be approaching puberty, may be given more responsibilites such as getting themselves to and from school on their own and becoming latch-key kids. They may also be exposed to dangerous behaviours such as drugs, sex and more, participated in by their peers and even forced to experience this themselves as a result of peer-pressure and wanting to 'fit in'.

There are many issues asociated with marketing and advertising to Tweens by convincing them that they are mature, independant consumers and therefore removing parents from the picture. This is a dangerous aspect, especially in today's society with the impact of youth culture and intimidating behaviour posed by youngsters to members of all communities by making them "vulnerable to potential unhealthy messages about body image, sexuality, relationships and violence" (Media Awareness Network).

An article found in Personnel Today written by Dr Wolfgang Seidl, Executive Director of The Validium Group Ltd, clearly defines Generation Y and the specific charateristics that the members of this generation posses in relation to careers and opportunities in order to "develop or prove themselves." This is in particular comparison to their parents, Generation X or baby boomers, who tend to fit their lifestyle around a career rather than fitting work around their lives. The findings in this article may suggest a direct link to marketing and advertising in the way that members of Generation Y may have less responsibilities in a way that gives them a higher personal disposable income, they may still live at home so will spend more money on products specifically aimed at them through advertising in order to define themselves as an individual or fit in with a certain group. In comparison, members of Generation X will be focussing on saving money and only making purchases that are absolutely necessary such as grocery shopping or replacing durable household products such as furniture and electrical goods. This Generation may be influenced by such marketing communications that deliver an image of good value by certain money deals or ones that will guarantee that the product has a long life. Consumers of this generation are more likely to be brand loyal, sticking with a specific brand that they are familiar with and trust.

Thursday, 5 February 2009

Groups


A group consists of two or more individuals who share a set of norms, have role relationships and experience interdependent behaviours. Consumers are often influenced in their purchase decisions depending on the group in which they belong or admire to be a part of by a desire to be accepted by others. Members of a group are often likely to participate in activities they would not normally do as an individual as a result of their identities becoming merged. The term 'reference group' can used to define any external influence that provides social cues on an individual. Reference groups are 'an actual or imaginary individual or group conceived of having significant relevance upon an individual's evaluations, aspirations, or behaviour' (Solomon). Well known groups such as the Royal Family, successful football teams, popular music bands, influencing individuals such as Princess Diana, Mother Teresa, or even groups close to home including class mates, social groups, sports teams etc can all be classed as a reference group due to the immediate influence placed upon an individual to fit into that each particular group or group in which they aspire to belong. A consumer's behaviour can be heavily influenced by the social factors that they come into contact with.





Groups can be categorised into 8 different sections:


Reference groups - groups that have a direct or indirect influence on the person's attitudes or behaviour.
Acquired groups - groups that you choose to go into (educational/work).
Aspirational groups - groups that you wish to belong to or wish to be associated with (celebrities/sports personalities).
Disassociation groups - groups that you do not wish to be a part of (chav's).

Contrived groups - groups that are formed for a specific purpose (committes/unions).
Associative groups - groups that you realistically belong to, people that you can associate with (friends/family).
Peer groups - groups with people of equal standing, people you see everyday (university/work).
Ascribed groups - groups that you are born into (ethnicity/social class/family/gender).


Maslow's Hierarchy of Needs
Maslow's hierarchy of needs strives to determine the reasons behind why people are driven by particular needs at particular times. Maslow suggests that human needs are arranged in a hierarchy, from the most important to the least important. The most important needs in this scale must be satisfied first before the person 'moves' to the next level. In advertising and marketing campaigns marketers use the needs mentioned in Maslow's hierarchy in order to create a pivotal message for the consumer, encouraging them that they need the product or service to ultimately satisfy these needs. The hierarchy of needs consists of:

  1. Physiological needs (hunger/thirst)
  2. Safety needs (security/protection)
  3. Social needs (sense of belonging/love)
  4. Esteem needs (self-esteem/recognition/status)
  5. Cognitive needs (comprehension/understanding)
  6. Aesthetic needs (order/beauty)
  7. Self-actualisation needs (self-development/realisation)