Week 1
Consumer Who? Consumer You!
As an individual consumer, I feel I have a responsibility to make educated choices on the products I purchase for myself, and for my family. As a leader in the household, I want to make sure that our purchases are within our budget and meet our needs and expectations. In my position as a Senior Flight Scheduler for John Deere I am also an organizational consumer. Not only do I have to flight plan and decide where our planes will buy fuel and services, but also stock and supplies for the office and the jets. Our department works on a budget, so I document and track all of the expenses as well as analyze our spending to better understand our trends and determine where there is room for improvement. My exposure to outside influences are limited, but still existent. Individually, I am more prone to be swayed toward a company or product from a recommendation versus an ad. Organizationally, I tend to choose companies that are reliant and produce a consistent product. I believe that this consistency provides our crews and passengers with a higher level of service and sense of comfort for their trips.
Buying decisions are usually necessity based, as a working mother of 2, my buying generally revolves around the needs of my children and home essentials. My husband is a finance controller, so we adhere to a strict budget. In our household, most of our buying decisions require research and planning. The same goes with my buying decisions for the organization. Our department adheres to a high level of customer service for our senior executives, and we often pre-plan our catering for flights so that we only put the necessities on board. Often with international travel, there are strict customs regulations that prevent transporting produce and other items across borders. If not planned properly, our department could waste a lot of food and money.
Purchases are usually made once the research has been conducted and the deadline is approaching. Being a planner, I like to give myself ample time to select the right product or service and arrange prior to running out or the scheduled departure. When put into a pinch I often gravitate toward familiarity and service/product consistency. In the book, The Transformational Consumer: Fuel a Lifelong Love Affair with Your Customers by Helping Them Get Healthier, Wealthier, and Wiser, they discuss the perspective of the marketer, and state, “We have to find junctures in their journeys for reconnection, for engaging them, and for developing loyalty, repeat business, and word- of- mouth referrals” (Nelson, T.-N., 2017).
Marketing research and marketing design does have an impact on my final decision. I often look for products that have good reviews and are environmentally friendly. Working for an international company, I understand the impact my purchase can have on the global economy and the future of my family. There are a select few companies that I would say I have loyalty to for purchasing certain items, but overall the decision comes down to price and quality.
Post-purchase I would say my behavior is very analytical, usually because I put so much thought into the purchase to begin with. I am an adamite review writer for purchases, and find they provide great value to consumers like myself. I would say I spend a lot of time evaluating my perceived value, which the text describes as, “the estimated net gain customers receive from their sacrifice of time, money, and effort expended to purchase, use, and dispose of a product or service (i.e., benefits versus costs)” (McLean, 2010). I get consumer delight when I get positive feedback from the passengers or crew members on the services that they received and the stock that was provided onboard.
McLean, S. (2010). Business Communication for Success. Irvington, NY: Flat World Knowledge
Nelson, T.-N. (2017). The Transformational Consumer: Fuel a Lifelong Love Affair with Your Customers by Helping Them Get Healthier, Wealthier, and Wiser. Oakland, California: Berrett-Koehler Publishers. Retrieved from https://search-ebscohost-com.ezproxy.snhu.edu/login.aspx?direct=true&db=nlebk&AN=1356015&site=eds-live&scope=site
Week 2
Under Armor: Where Do We Go From Here?
As an upcoming leader in the athletic apparel industry, Under Armour has established itself in the men’s athletic apparel. Wanting to expand their operation and break into the women’s athletic clothing industry, executives at Under Armour decided to launch their largest global marketing campaign, “I Will What I Want”, at $ At $15 million (Saghian, 2016). The primary focus of their market segment were female athletes that did not fit the traditional mold and had overcome obstacles. Leanne Fremar, Senior VP and Creative Director of Women’s Business, stated that the overall goal of the campaign was to celebrate women “who had the physical and mental strength to tune out the external pressures and turn inward and chart their own course”(Saghian, 2016). To meet their goal and reach their desired consumer, they used unconventional models and athletes that women could relate to on a more personal level. Combining demographic and behavioral components in their segmentation, Under Armour was able to successfully market their brand.
“Internally, there was a lot of discussion around creating something that really was going to live in the digital and social sphere and not be a traditional television spot or follow the playbook for a traditional sports campaign”
–Leanne Fremar, Under Armour Senior VP and Creative Director of Women’s Business
(Saghian, 2016)
Implementing segmentation is one of the biggest challenges companies and marking departments face. Often, they have their reputation and future at steak. There are four different methods of segmentation, they include, demographic, geographic, psychographic and behavioral (McLean, 2010). Some key points to consider with any of these methods are:
- Know your customers needs and wants
- Understand the demographics
- Recognize the buying process of your consumer
- Distinguish yourself from your competitor
Identifying a new market segment can be a great opportunity for any company. A new segment that has potential is the retirees, specifically those who have retired from their primary careers and are now working part-time in a secondary profession. By combining demographic, psychographic and behavioral segmentations, we could create a custom design that would allow us to market to this group effectively. According to the text, “Consumers are driven by one of three primary motivations—ideals, achievement, or self-expression” (McLean, 2010). While this group has established themselves as individuals, and achieved a majority of their occupational goals, they are entering a new phase of life, giving them new opportunities to explore and experiment, where they may not have been able to in their previous phase of life.
McLean, S. (2010). Business Communication for Success. Irvington, NY: Flat World Knowledge
Saghian, M. (2016 July 27). Under Armour’s Willful Digital Moves [PDF]. University of Virginia: Darden Business Publishing.
Week 5
Top Dog Versus Underdog
Chevrolet and Ford have been rivals in the American automotive industry for many years. It’s an industry rivalry with roots dating back Jan. 26, 1906, when two automobile pioneers — Henry Ford and Louis Chevrolet — appeared together on the Daytona Beach shoreline to publicize their new creations with races (Chevy vs. Ford, 1999). Not only have they battled on the racetrack for the first-place position, but also in the consumer market.
Both Ford and Chevrolet have used different branding strategies throughout their marketing history. Recently Ford has had pro-active strategies and reactive strategies in order to stay competitive in the industry, “Ford Motor Company announced the next step in its plan to make its global marketing more creative, agile and efficient, while delivering a more compelling brand story and differentiated customer experiences” (United States, 2018). Due to the advances in technology, political and social expectations, both companies are constantly striving to maintain their brand while being innovative. Chevrolet has also used a pro-active strategy to attract their consumers. Recently the use of social media, has been a focus within the industry to keep their brand in the spotlight. “We are utilizing social media and digital conversations alongside it to really engage people with this new concept. It is all about bringing the Chevrolet brand and its products to people in new, innovative and accessible ways” (Chevrolet, 2010). The changes in strategies come from the different demographies from the consumers. Each segment has different needs and the company’s ability to adapt to these needs can influence whether they are the top dog or the bottom dog. “”In Chevrolet showrooms, we see young car buyers look up the online profiles of our salespeople to pick out someone who has similar hobbies and interests to work with,” says Cristi Landy, product marketing manager for small cars at the General Motors brand” (Voght, 2013). Knowing the needs of each demographic, allows both Ford and Chevrolet to market their products to the correct demographic. For example, the Fiesta and Cavalier, are marketed toward the newer economic driver, while the Mustang and Corvette are marketed toward those with a more disposable income.
The rivalry between Ford and Chevrolet has evolved into a “rich slice of American pop culture, a timeless advertising campaign waged in songs, movies and TV shows, on race tracks and in repair shops, even though computer-animated cartoon characters that urinate on the emblems of two multibillion-dollar corporations” (Chevy vs. Ford, 1999). Ford uses strategies like continuity pricing, which encourages current users to continue using a brand, and often offers greater discounts if more units are purchased. This is often why you see the Ford brand more government and emergency vehicles, also Ford tends to partner with other large corporations, offering employee discounts for company employees. Deere and Company has purchasing incentives for their employees with Ford, while Chevrolet does not. Chevrolet should consider taking advantage of these markets, because they could create new opportunities and connections with new consumers and industries. Both companies offer loyalty programs and will often offer a bonus incentive if you trade in a vehicle from the competitor, and by maintaining loyalty, each would benefit to maintain their established consumers.
“We are a friendly, approachable and affordable brand, offering products that do not sacrifice on design, while still offering a fantastic price”
— Zoe Lavender, UK marketing strategy and consumer PR manager for Chevrolet
(Chevrolet, 2010).
Once the company has you try their product, their goal is to get you to avoid the change. A tactic used is increasing ambiguity in the marketplace, which means they market against trying the other product. As humans, we have a strong fear of the unknown, and companies like Ford and Chevrolet, market toward these fears and insecurities. Purchasing an automobile is considered a higher risk purchase, so consumers are more likely to do their research and consider all of their options before purchasing. Vehicle purchases are driven by financial risks, social risks (e.g. current trends, status), and physical risk (e.g. crash rating, reliability) (Kardes, n.d.). Both Ford and Chevrolet have strong brand resonance with their consumers and market each of their products individually to appeal to different demographics. Ford would be my personal preference, because of the social and political aspect. When corporations were taking advantage of government hand-outs, Ford did not participate, and focused on improving their company without the use of government funds.
References
Chevrolet. (2010). Event, 28–29.
Chevy vs. Ford: Quarreling is job No. 1; Your make of auto is handed down like a birthright. It seems the kind of car you drive really does matter. (1999). The Austin American-Statesman (TX), C10.
Kardes, F. (n.d.). Consumer Behavior, 2e. [MBS Direct]. Retrieved from https://mbsdirect.vitalsource.com/#/books/9781305161689/
The Great Race- Chevy vs. Ford. (1966). Life, 61(16), 131–132.
United States : Ford Modernizes Global Marketing; Establishes New Creative Agency Model, Bolsters In-House Team. (2018). Mena Report.
Voight, J. (2013). Enabling the Sharing Economy. Adweek, 54(21), 20.
Week 7
Module Seven Blog: Green for Profit or Green for the Environment?
TOMS Shoes is a company that promotes is social and ethic responsibility. Founded in 2006, by Blake Mycoskie, TOMS Shoes is a for-profit business that incorporates social objectives: when a consumer buys a pair of TOMS shoes, the company gives a pair of shoes to a child in a developing country. (Wydick, et al., 2018). Since it’s founding the company has donated more than “50 million pairs of new shoes to low-income children Overseas” (Wydick, et al., 2018). The level of transparency TOMS provides suggests they operate socially and ethically. From the preliminary research conducted, I was unable to find and negative transgressions against the company or any of their leadership team. However, studies have been done on the social effects these items and services have on third-world countries. The results have some doubting the benefits of charitable acts from companies like TOMS and the unintended negative impact it can have. Overall, TOMS has avoided negative press and continues to promote positivity throughout their brand and their products.
“The “why” of TOMS—using business to improve lives—is bigger than myself, the shoes we sell, or any future products we might launch” — Blake Mycoskie
TOMS’s “green” business operation has a strong foundation and was founded on the principle of people and philanthropy first, profit second. This business design has attracted a different consumer market, gives them a competitive advantage. CEO and founder, Mycoskie stated, “It allows us to build an emotional bond with customers and motivate employees, because they know they are shopping and working for a movement bigger than themselves” (Mycoskie, 2016). While they have seen a direct correlation between their patronage and profit, they continue to expand their generosity. This has expanded beyond shoes, and into improving water supply and educational systems in third world countries. Companies like TOMS are setting the example that show you can make a profit and run a successful company while improving the quality of life for those less fortunate.
References
TOMS (2020). https://www.toms.com/impact
Mycoskie, B. (2016). The Founder of Toms on Reimagining the Company’s Mission. Harvard Business Review, 94(1), 41–44.
Wydick, B., Katz, E., Calvo, F., Gutierrez, F., & Janet, B. (2018). Shoeing the Children: The Impact of the TOMS Shoe Donation Program in Rural El Salvador. World Bank Economic Review, 32(3), 727–751. https://doi-org.ezproxy.snhu.edu/10.1093/wber/lhw042
MKT-345-X3733 Consumer Behavior 