Pinterest is social media network that allows users to share images to visually discover new interests. It allows users to create boards, where they “pin” images for reasons varying from drawing inspiration, to following through with a purchase. Pinterest makes it easier for users to find new products and assist in making the best purchase decision. The edge Pinterest has against other social media networks is that it is geared toward discovery. Pinterest tends to be accessed by users who’ve already have something in mind they’d like to buy or create, and they turn to this social network for ideas on what to purchase.
Over 60% say they’ve discovered new brands or products from promoted pins. They spend 29% more on retail purchases than people who aren’t on Pinterest. 87% of pinners say they’ve purchased something because of Pinterest (Bradley,2018). According to statistics, at the end of 2019 Pinterest reported having 322 million monthly active users worldwide a third of which are from the United States. Pinterest offers businesses the opportunity to reach customers in the process of making purchase decisions. It grants businesses the space to engage in product education. While other networks such as Facebook, and Instagram are currently the most popular amongst businesses, Pinterest should not be overlooked.
The social media site I chose is Instagram. I chose Instagram, as its the social media site I spend the most time on. Personally, the ads I receive on my feed are centered around beauty and fashion. Often times I have noticed if I search a specific brand, it’ll generate more ads within that market. For example, if I search/follow MAC Cosmetics, I will see ads from brands like Estée Lauder, Clinique, Lancôme etc on my Instagram feed. However, with all the advertising from these brands, it has me searching other beauty brands more often, finding new products I am interested in.
Instagram offers a platform for many different types of marketing. Some of which include photo ads, sponsored ads, guided ads, story ads, video ads, and IGTV ads. I would say that photo ads get my attention above all the others. Normally a photo will grab my attention, leading me to look further into the product/brand. This has resulted in many purchases for me. Which is why I would say photo ads are the most effective marketing tactic for me.
Instagram has established a platform in which promotional ads are integrated using user preferences. Instagram has done extremely well at advertising in a way that does not feel like you are being flooded with promotional ads. I have bought many products as a result of these promotional ads. Products I have never used, from companies I have never heard of. There are over 800 million monthly active users and more than two million companies that use Instagram (Cyca, 2018). Many companies could benefit greatly from marketing on Instagram.
Instagram gives businesses the opportunity to highlight their products and services through digital content in the form of photo and video. Marketing implications of Instagram include increased traffic and engagement rates for businesses, increased conversation rate for consumer purchases, larger number of Instagram influencers, increase amount of user-generation content used in marketing strategies, increased ability to build brand presence and relationship with target market. The reason for the great success of marketing content on Instagram is businesses ability to utilize these features to appeal to one’s target market.
I have responded to Instagram marketing implications several times in the past. I recently purchased a bathing suit through an Instagram ad. While I was skeptical at first, it ended fitting great and led to multiple purchases. Aside for that, I respond to marketing implications in several ways, such as clicking on advertisements, searching hashtags to find new content and accounts for things that I might like to try or purchase, and for highlighting my own experiences.
Ads are generated based off who your friends are, what posts you like, what brands you follow, and more. This makes it much more enticing to click on marketing ads. They are generated to target your interests, which has led me to many one to many shopping sprees!
Consumer perception plays a large role is consumer buying behavior. Consumer preception can be what makes or breaks a brand. Observation of unethical and unlawful acts can be harmful to the success of the companies’ future as a result of negative consumer perception. Many companies rely on the loyalty of their consumers, when so much is lost due to unethical and unlawful acts it can difficult if not impossible to restore.
A brand that has dealt with backlash due to unlawful and unethical acts, is Starbucks. Over the coarse of the brand existence they had their fair share of encounters but one that stands out specifically was on April 12th 2018. Two African American men were arrested in a Starbucks in Philadelphia for suspicion of trespassing. These men walking in and asked to use the restroom but because they had not bought anything, an employee refused the request (Stevens, M.). That employee then asked them to leave as the two men declined, so the police were called and came to arrest these men and later released due to lack of evidence of a crime. A hashtag (#boycottstarbucks) quickly spread across the internet after discrimination occurred. After this, the CEO closed down 8,000 US stores for several hours to conduct racial-bias training for its nearly 175,000 workers (@dominicru).
Starbucks stores closed nationwide for racial-bias training
Since the incident, the brand did not suffer much from this ethical issue. Starbucks since has changed it policy allowing anyone to use their restrooms, with or without making a purchase. The above video goes into further detail of the changes Starbucks is undergoing to address this issue. Retraining a great number of their employees was a good start for them to do to recover from this particular ethical challenge, but they could have avoided several issues by fully training their new hires. Hires should be aware on how to properly carryout misconduct of any of their policies. As well as they can continue to train and re-train all of their employees throughout the year. Starbucks ethic and compliance says “We believe that conducting business ethically and striving to do the right thing are vital to the success of the company”. But, some of their old customers feel as though Starbucks has become so cookie cutter and no longer reflect their passion that their partners feel about their coffee. While it may have changed some consumers perceptions, Starbucks took the proper measures to reverse the damages. Acting immediately on damage control, saved the brands reputation.
While traveling through Argentina in 2006, TOMS founder Blake Mycoskie saw the hardships faced by children without shoes. This inspired him to create a for-profit business with giving at its core. The idea? For every pair of shoes, the company sold, a new pair would be given to a child in need. And with that, TOMS—short for Tomorrow’s Shoes—was born. TOMS slogan is “One for One,” so every item you buy today, deliver it to someone in need tomorrow. Their logo was created with their story in mind, emulating the Argentinean flag. Being that the inspiration for the company started in Argentina, they felt it was important to incorporate the brands origin in their logo. The TOMS logo signifies customers support of the TOMS mission. Customers take great pride in supporting those in need when purchasing and wearing TOMS products. The brand has created a community around the “One for One” movement, which has contributed to the brands positioning. TOMS has positioned themselves as a socially focused brand.
Since 2006 they have donated over 60 million pairs of shoes to children in need! Letting TOMS know that their brand positioning and mission have been of great success. TOMS has seen great success for many reasons. The TOMS story is the narrative behind the brands positioning. Their touching story has been shared over and over again, and organically their following grew. Their “One of One” slogan reminds customers that they are purchasing with a purpose. TOMS is up against tough competition, consisting of Clarks, Reefs, Converse Sketchers and Keds. While their products are of adequate competition, their lacking brand substance. Their “One for One” brand promise, is their competitive advantage. TOMS has successfully communicated their identity to stakeholders as well, which has cultivated a strong brand culture. TOMS is a brand that puts their social obligations first. Which includes acknowledging that the TOMS team is vital to the execution of the brand. Contributing to the TOMS culture and story, bringing employees closer to the company and their message.
When developing the brand name for the organization TOMS used strategic measure to ensure the name encapsulated their message. Their first strategy was to have a bold, memorable, and distinguishable name. This is important when positioning a brand because it is what separates them from competitors, while catching the eye of consumers. Another strategy was reinforcing the brands mission. Their mission is the narrative behind the brand and is leveraged in their brand positioning. TOMS short for Tomorrows Shoes, reminds consumers of the bigger message. Its not just a brand, or a shoe, or even a fashion statement, its providing a child in need of footwear. Their bold, and meaningful name is the powerful vice used to position the brand to consumers.
Most people are familiar with the company TOMS, which was created with the desire to help those in need. Every purchased pair of shoes is matched by the company and donated to a child in need. So far they have been able to provide 60 million pairs of shoes to children in need, and 400,000 pairs of eyewear to people in need. As the company continues to evolve so does their community support around the world. To support this company means to support those in need.
How do you believe the company conducts business in a socially responsible way? Support your answer by discussing specific examples.
TOMS mission is to donate a pair of shoes every time a pair is purchased. Since 2006 they have donated over 60 million pairs of shoes to children in need! TOMS even works hard to ensure the donated shoes are the appropriate footwear for the environment and terrain in which these children live.
In 2011 TOMS launched TOMS eyewear. The goal from this launch was to provide sight to those that can not afford glasses or contacts. Since 2011 TOMS have restored sight to more than 400,000 people in need over 13 countries. The TOMS eyewear launch has also sparked thousands of jobs in these 13 countries. These jobs include basic eye training for local people in the 13 countries Toms donates eyewear too.
In 2014 TOMS began their journey to provide clean water to people in need. They have since provided 335,000 weeks of clean water in 6 different countries! When someone purchases TOMS coffee they donate 140 liters of safe drinking water which equivalents 1 entire week of clean water for someone.
In 2015 TOMS launched their “safer birth” goal. Since then TOMS has provided safe birth services to over 25,000 women! Every bag purchased from TOMS donates a bag full of safe birthing supplies and training to a women in need.
Has the company ever been involved in any incidents in which they were accused of not conducting business in an ethical or socially responsible manner?
When it comes to TOMS, whether the brand is ethical or not is based on opinion. While their mission remains community centric, it is important to for consumers understand that TOMS is a for profit company. They do not put all of their profits into giving for those in needs. In my opinion, I believe they are an ethical company. They have kept their word and have donated the proper amount based on what they promised. No matter what when you purchase TOMS products you are helping someone in need. Even if you’re helping just a little, it is better than not helping at all.
Do you feel the company is “green” for profit or “green” for the environment?
I would say TOMS is both, but mainly green for the environment. They have proven that despite how large and successful they grow, they continue to implement new and improved ways to help people and the environment around the world. A company requires profit to support their operating expenses. So yes like all companies they make a profit off of their sales, but very few give back the way TOMS does.TOMS does not just do the bare minimum to help those in need, they put a lot of care into catering to their needs.
What is the brand strategy being used by the top dog? What is the brand strategy being used by the underdog?
The brand rivalry I chose is Coca-Cola vs Pepsi. The top dog being Coca-Cola and the underdog being Pepsi. It is apparent that both Coca-Cola and Pepsi are successful companies. While they both have seen great success, they differ in their brand strategy efforts. Coca-Cola uses a proactive strategy. As the pioneers of the cola industry, Coca-Cola is the first brand enter the market, so it enjoys a long-term preference advantage over mimic brands. One of the important influencing factors in Coca-Cola sale is that Coca-Cola has a high power in the channel. Because Coca-Cola has is available globally, it is one of the most recognizable brands worldwide. Moreover, compatibility with consumers’ beliefs and lifestyles is another important factor of brand strategy. For example, Coca-Cola portrays a fun, happy and positive message through its advertisements. Because it’s secret formula, it has a great taste which gives consumers pleasure of refreshment, so consumers perceive Coca-Cola as a part of their lifestyle. Another brand strategy is using effective advertising, for example, Coca-Cola knows that majority of its purchases are made by female household leaders, so their advertisements focus on the functionality of their products as “daily life products” that suitable for the entire family.
On the other hand, Pepsi pursues a reactive strategy, Pepsi has been successful in targeting a young audience. Pepsi is considered the drink for the new generation. Therefore, their advertisements incorporate a combination of fun, sports and music. In addition, Pepsi’ s advertisements feature collaborations with popular musical celebrities. Another difference of brand positioning from Coca-Cola is that according to young consumers Pepsi taste sweeter than Coca-Cola.
How can the underdog improve its strategy so that it can gain more market share and surpass the top dog? Provide three recommendations.
In order to gain more market share and surpass the top dog, underdogs need to disrupt status quo and decrease ambiguity. For example, for Pepsi, marketers can encourage consumers to participate in blind taste tests. Another way to prevent consumers’ confirmation bias is to give free samples and give consumer the opportunity to compare tastes, prices and services. In addition, underdogs should have side-by-side shelf placements with market leaders in grocery stores. Moreover, underdogs can encourage consumers to challenge their current beliefs. For example, Pepsi might challenge a mothers habitual Coca-Cola purchase by saying that her kids might prefer Pepsi over Coca-Cola as it is considered the drink of the new generation. Last but not the least, unusual distribution channels and unusually educational approaches can also benefit underdog. For example, Pepsi could collaborate with local famous fast food chain by providing beverage exclusively.
Why do you believe consumers prefer the top dog over the underdog? Which do you prefer, and why?
Consumers prefer the top dog over the underdogs because top dogs are novel and interesting, consumers often are motivated to learn a lot about the features and benefits of the top dogs. Consumers tend to form more favorable and more confidently- held judgments about brands they know a lot about. As a result, they are more likely to form stronger preferences for top dogs. In addition, when consumers make a purchase decision, they often retrieve brand names from memory. Top dogs tend to be more memorable, therefore consumers are more likely to choose their products. I tend to pick more underdog products. I have a great curiosity for discovering new products. I find that a lot of the top dog products are generic and not specialized. I also feel more research and development go into underdog products. I have a sensitivity to a lot of ingredients also, so underdog products tend to be more suitable for me.
Under Armour identifies both males and females as market segments (Murray & Saghian, p. 1, 2017). Previously, Under Armour had targeted men in their advertisements, but the case study explains a new segment of female consumers that they pursue (Murray & Saghian, p. 1, 2017). The segmentation strategy involved a campaign called, “I Will What I Want.” This campaign told the story of Misty Copeland, a ballerina, who was rejected from a ballet academy at 13 for not having the right body; it was launched on a multi-channel platform with social media taking the core (Murray & Saghian, 2017).
market segments & segmentation strategies
This segmentation strategy that they implemented involved a psycho-demographic approach, which means they were targeting females with certain lifestyle values (MBS Direct, 2015). The psychographic factor of this segmentation included females who wanted to celebrate women and what they can accomplish (Murray & Saghian, p. 2, 2017). This segmentation strategy of females who focus on positivity and empowerment proved to be successful. Murry & Saghian (2017) state, “It produced 5 billion media impressions worldwide and a staggering $35 million in earned media” (p. 2). The interesting thing about this segmentation strategy is it did not exclude females who weren’t athletes. The message of empowerment was for all.
4 key points for segmentation strategies
1. Be sure to set segmentation goals and objectives. If you don’t have any guidance for where you want the strategy to take the company, things could get off track. Additionally, it is good to have measurable goals (Grewal & Levy, 2014). This way the company will be able to easily evaluate their performance.
2. A combination approach to a segmentation strategy can produce great results (MBS Direct, 2015). While it may be easier to divvy up consumers into a single “demographic” segment, or a “psychographic” segment, this may not capture a picture of the audience very well. Consumers have many different dimensions, and it pays off to look into psycho-demographic or geo-demographic segmentation (MBS Direct, 2015).
3. It is important to think about how the product is going to be valuable to the segment before implementing the strategy. You want to know what their needs are, and how your company will satisfy those needs to make their life better (MBS Direct, 2015). If you are implementing a segmentation strategy, but cannot answer how the product is valuable to that segment, chances are it’s going to fail.
4. Know the importance of data, and apply it to your strategy. SDR Consulting (2010) comments on this key point: “This is usually where a lot of segmentations fail, in that companies do not have enough predictive information about their customers and prospects in their existing databases to develop a meaningful predictor model.” Without sufficient data, the company won’t be able to build a helpful model for the segmentation strategy. This will hurt them when trying to reach current and prospective consumers.
new market segment
A new market segment that I have noticed through online shopping and life experiences is pet owners living in the US who treat their pets like humans. If you spend time on Facebook, you will see that this market segment has created the term “fur baby” for a pet that they are treating as a child. Conlon (2015) reveals that 91% of pet owners think of their pet as a family member. I believe that this would be a great segment to explore because these people all share similar values. They care about their animals and want to give them the best life. For this market, I would create a segmentation strategy that involves psychographic principles. This means I would reach my audience by tapping into their values and lifestyle habits (MBS Direct, 2015). This would also call for a geographic approach because I am wanting to pursue those who reside in the US. I could reach this segment by creating campaigns that resonate with their values of treating pets as a part of the family. This would include multi-media advertisements that portray animals having individualized personalities, and emphasizing their importance in the household. Additionally, creating products that make pets seem more individualized would be a great way to connect with the audience. For example, turning a dog crate into something that looks more like a small house or cozy bed would align with the segment’s values better. Another example would be making dog treats to look more like human food. The strategy would focus on anything that helps a pet owner to feel like they are caring for a human.
References
Conlan, S. (2015). The 3 Surprising Ways ‘Pet Parents’ Are Treating Their Pets Like Humans.
Murray, M., & Saghian, M. (2017). Under Armour’s Willful Digital Moves. Darden Business Publishing, 1-5. Retrieved July 7, 2017, from https://cb.hbsp.harvard.edu
I am a needs-based consumer and an impulsive consumer. I used to be a compulsive consumer, who would fill my time with pointless purchases. I would buy things I didn’t need with no regard to saving money. As I grow older, I only buy the necessities with an occasional splurge. As a needs-based consumer I tend to purchase items when I see I am running low on them. I have found I choose quality over quantity, which usually causes me to make impulse purchases. I have strayed from my shopaholic ways but as an impulsive consumer I reward myself here and there with overpriced brand name items.
I would consider myself a creature of habit, someone who lives routinely. I have used the same products for years and shop at the same stores. So as a needs-based consumer what tends to influence my buying decisions is quantity. When I see I am running low, I know its time to stock up. On the other hand, as an impulse consumer what influences my buying decisions are social media, trends and social influences. Ill be scrolling through Instagram or see a celebrity wearing something I simply MUST have. Ill obsess over it, to the point I drive myself crazy and end up buying it. I have found that brands have done an exceptional job at captivating the attention of consumers through social media. I try to stay on top of the latest trends, which usually impacts my buying decisions.
Normally when purchasing a product outside of my normal routinely purchases, the stage that leads to my purchasing decision is research. I tend to do a lot of research before I purchase a product and especially with online shopping. I can look a product to see their reviews, compare prices, and compare products. Mental or cognitive responses are important during the process of making a purchase because they include the consumer’s state of mind, thought process, and opinions about the product. A thoughtful consumer will make pros and cons about a product thinking about the finances and budget. Behavioral responses will include a consumer’s decisions and actions during the purchase, use, and disposal activities. (Kardes, 2020)
Marketing research and marketing design are highly influential when making a buying decision. Marketing research helps brands effectively market to their target audience. Through thorough research brands can create a marketing design that speaks to and attracts their target audience. Marketing research lets a brand know the ins and outs of their target audience. It helps companies understand what consumers want, develop products that those consumers will use, and maintain a competitive advantage over their competition. Marketing design is the face of the campaign, it’s a crucial component. It what the consumer sees, and ultimately what will attract consumers.
Occasionally the post-purchase behavior I will experience is regret. As an impulsive buyer I often experience regret after a purchase. Even when I do my research and commit to it ahead of time, I debate whether it was too expensive. That feeling of regret is eventually eased over time. Reference
Digital advertising has made immense advancements over the years as a result of the progression of technology. Looking at how far we’ve come has left me wondering what the future holds for digital advertising. After examining past and present technologies, strategies, and/or trends that have impacted digital advertising, Over the next five years, I believe social media, influencers and artificial intelligence will be the future for this industry.
Social Media
Social media is used by billions of people around the world and has fast become one of the shaping technologies of our time. Social Media is unpredictable. The chances of social media to evolve are endless. Given the massive potential audience available who are spending many hours a day using social media, it is not surprising that marketers have embraced social media as an advertising platform. Not to mention, social media marketing is quite cost-effective. Social media is the cheapest, fastest and the most scalable marketing channel available to most companies. According to Kleiner Perkins, about 55% of people who found a product on social media purchased it later. Among social media channels, Facebook is the leading platform for product discovery, followed by Instagram and Pinterest. In the coming years, social media will take over other traditional styles of advertising.
Artificial Intelligence
Early on marketers were hesitant to apply artificial intelligence to their marketing strategies. But now, many successful brands like Amazon and Spotify have adopted it and use it within their marketing. For example, Amazon uses artificial intelligence to show only relevant products to shoppers, based on previous searches, purchases and views. This can increase the likelihood that a shopper will make a purchase or becomes a repeat customer. With the ability to collect data, analyze it, apply it and then react to it, artificial intelligence is transforming digital advertising. As the amount of information on potential consumers increases, artificial intelligence will become more important due to its ability to make decisions quickly and accurately.
Influencers
Social media influencers have become a mainstay marketing strategy for companies. Ideally, the modern-day consumer, millennials, prefer content that comes from sources they trust. For instance, a celebrity has more power that influences purchasing decision amongst consumers. Influencers allow brands to be more selective, allowing companies to dictate the way they work with them. If someone is too difficult or expensive, there are a thousand more to choose from. Businesses realized the power of social media influencers, and digital marketing took off. With the ever so frequent emerging of new technologies, influencer marketing is the future of digital marketing. According to Activate, an influencer marketing platform, they found that 67% of marketers think influencer campaigns helped them reach a more targeted audience.A survey by Influencer Marketing Hub revealed that 63% of marketers intend to increase their influencer marketing budget this year. According to another study, influencer marketing was projected to become a $10 billion market this year. Influencers have become the mainstay marketing source, and will continue to do so over the next five years.
Site Title 