Friday, 6 May 2011

Family Purchasing




Intergenerational influences are created throughout the family life cycle as new generations of consumers are loyal to brands that have been used throughout the family, for example the use of cosmetics, or even funeral homes (Wilkie, W. 1994). The large quantity of brands and products used throughout a household is why marketing strategies are developed to target the group, yet mainly the consumer that will have the ultimate purchasing decision over the group (Martinez, E. 1999).


Brassington, F. (2007)


The way in which purchasing decisions are made was studied by Field (1969) and determined influences made over husband, wife and child:

  • Discernment - technicalities
  • Price - Expensiveness
  • Satisfaction - users of the product

Marketing to Children

"We are coming for your children.."
(Guardian, 2007)




Brassington (2007) states that a reason for targeting and marketing to children is used because business want to cultivate a brand loyalty from as early as possible with the consumer. This technique is apparent with marketing ploys devised at MacDonalds, where Happy Meals are promoted using movies and t.v. shows to encourage sales and growth, by as much as 10% (Burk Wood, M. 2004).

Throughout the year children emplore the use of 'pester power' with their parents, after peer pressure from school and friends, in order to get the latest toy or fad (BBC, 2011). Children are often influencers or co-deciders regarding the purchase of consumable goods, personal products and even vacations (Sharma, R. 2008). Another interesting theory is peer influence creates desires and that in turn leads to selective viewing of commercials and creation of requests (Smith, G. 1997).

Thursday, 5 May 2011

Groups, Opinion Leaders and Peer Pressure



"Conformity is the process of maintaining or changing behaviour to comply with the norms established by a society, sub-culture or other group."
(p154 Kendall, D. 2010)


The term 'reference group' can also be applied to social groups, and has a less distinctive or pressurised influence on the consumer. Solomon (2010) describes the term to have reference to informational, utilitarian and value-expressive influences, which could best describe the relationship or impact that parents have on children as early consumers. For example, when a child reaches the life cycle stage of becoming independant the supermarket that their parents shopped at would be the most likely choice as they have been influenced by the preferences of others through social interaction. Another way of looking at reference group would be to categorise them (Blythe, 2008);

  • Primary Groups (friends, family)
  • Secondary Groups (sports clubs)
  • Aspirational Groups (groups we want to join)
  • Dissociative Groups (do NOT want to be a part of)
  • Formal Groups (members only clubs)
  • Informal Groups (moral support)
  • Automatic/ Category Groups (age, culture, gender)
  • Virtual Groups (forums, blogs, social networking)

All of these groups are not mutually exclusive but all affect the individual through social interaction, and all express a need for compliance to be 'one of the gang'.



Mean Girls (2004)


Solomon Asch (cited in Forsyth, D. 2010) tried to explore why a unanimous majority was so influential on the individual and why having a partner helped to relieve the pressure of social outcast. Whilst there is a certain amount of peer pressure from a number of people within a group it is also limited, a strength in numbers that becomes less influential no matter the scale; "there is a marginally decreasing effect of increased supplies in people" (Latane, 1981. cited in Forsyth, D 2010) as shown in the graph below.




A report by Isabelle Chaney (2000) into opinion leaders, and whether or not to use them for market segmentation, identified that opinion leaders should be isolated and used as a tool for establishing marketing stragies and disseminating information via a word of mouth channel. This technique has in fact been used by The Washington Herald (2007), who target opinion leaders of industry to engage and influence major topical debates and then spread the word about new ideas and concepts, whilst constantly in the glare of the media.




Monday, 2 May 2011

My Timeline - Events 1990 - 2011


Death of Princess Diana
31st August 1997


Spice Girls Break Up :'(
November 2000
 
World Trade Centre Bombings
11th September 2001
 

Invasion of Iraq - WMD's
March 2003
 

London Bombings
7th July 2005


Madeleine McCann Missing
29th April 2007


Prince William Marries Kate Middleton
29th April 2011


Osama Bin Laden Killed by US Miliary
1st May 2011


A Pandora's Box of Subjective Views



Values are difficult to define, Jocano (1993, cited in Tiempo, 2005) brings to light the Fillipino definition; objects, ideas and actions, consisting of price, worth, importance and consequence. The Westernised view of values is summed up by Engel, Blackwell and Miniard (1995) to represent consumer beliefs about life and acceptable behaviour, expressed via motivations and avenues in which to attain these goals.

In the world of the marketer, to establish the core values of the business is to unlock the door of corporate success. By understanding a the values of the consumer, the business is able to target itself predominantly within the market by creating a value/ mission statement, as well as a five step plan which will produce a marketing plan, largely helped by the use of 'value proposition' (Dunbar, I. McDonald, M. 2004). It has become increasingly well known that segmentation according to product or region (one size fits all approach) is not effective when compared to segmentation via needs and types as individualistic sales techniques can be delivered to create and maintain strong relationships.



Determine Value Proposition (McDonald, M. Dunbar, I. 2004)

Another technique designed to assess the image of a brand is called 'Laddering'. "Laddering exposes the meaning structure, which the respondent uses to decide upon an action, usually the purchase of the product" (Van Riel, C. Fombrun, C. 2007), and the most important question used by the laddering techique is why?


 'Psychographics examine the motivations people have in purchasing products and the lifestyle they have and desire' (Kahle, L. 2000) and to analyse these motivations, Kahle devised a list of values that included self-fulfillment, excitement, security and sense of belonging. This list is very well known to marketers however, a system devised by Rokeach (Engel, J. Blackwell, R. Miniard, P. 1995) shows extensive lists of values that fall into either Terminal (desirable end-states) or Instrumental (modes of conduct). By ranking Rokeach's values in order of individual preference, it is soon determined which product or service market contains the interest for each consumer.
 Below are my answers from a test taken to assess the type of person I am in regards to ownership, media preferences, demographics and hobbies (Strategic Business Insight, 2011).






Values at work





Sunday, 1 May 2011

I am always ready to learn, although I do not always like being taught..





"Any more than transient modification of behaviour which presumably results from past experience and not from organic change"
Wenger, Jones and Jones, 1956
(cited in Hilgard, E and Marquis, D. 1961)



This definition provides an overall reference to the process of learning, however 'not from organic change' or instances where learning has not taken place, according to Jim Blythe (2008), refers to the following circumstances:
  • Species response tendancies (instincts or relexes)
  • Maturation (behavioural changes according to hormonal changes)
  • Temporary states of the organism (tiredness, hunger, drunkeness)
  • Damage to the brain (surgery, disease or injury)




The Connectionists

Classical conditioning is the explanation used by perhaps the most recognised of learning theorists, Ivan Pavlov. His experiments revolved around the conditioned reflexes of dogs, where the basic principle contained two ideas or objects that were connected by prospects of a reward or punishment being given as the result of a certain action (Chisnall, P. 1995)



The Law of Effect was also developed, alongside classical conditioning, by Edward Thorndike in 1905 using experiments he designed involving cats and the 'puzzle box'. This experiment involved placing the cat inside a puzzle box, with a string and push pedal as the only method of escape, and leaving a bowl of food on the outside. After engaging in seemingly odd behaviour, the animal would release the door and go on to eat it's prize, leaving Thorndike with the view that the random process of trial-and-error had been adopted, and only when accessing the food did the animal realise the successful behaviour (Nevid, J. 2009).

Operant conditioning is another form of behavioural or associative learning, created by Burrhus F. Skinner. The theory is dependant on the 'organism' performing everyday activities, however, when encountering a re-inforcing stimulus, the organism's behaviour will be rewarded or re-inforced to increase the probability of the behaviour being repeated (Coon, D. Mitterer, J. 2010)








Latent Learning is a process through which there is no obvious reward yet information is retained, only to be recalled at a later date when necessary. Goodenough, McGuire and Jakob (2010) explain latent learning through this example: "an animal can learn important characteristics of it's environment during unrewarded explorations to use the information later. Even though the knowledge is not put to immediate use, it can later become lifesaving."

Observational Learning, as described by Solomon et al. (2010) is the process of learning whereby people watch the behaviour of others  and recognise the reinforcements associated with such activity. An example for this could be foreign language lessons, as evident in a clip from My Big Fat Greek Wedding...




The Diary that we all carry about with us



"It seems that without learning, new memories could not be developed, and without memory, old learning could not be manifested"
(Kendrick, D. Rilling, M. Denny, M. 1986)


Shiffman and Kanuk (1994) organise the minefield that is memory by creating 'storehourses' in which information can be categorised according to it's relevance. The consist of:

  • The Sensory Store; An 'after image, very short lived, but crammed with more information needed'.
  • The Short-term Store; The rehearsal stage of remembering, the 'looking up a phone number only to forget it as soon as you look away'.
  • Long-term Store; The 'first grade teacher', even though forgettable at the time, easily retainable throughout week, months and years.


The original Santa before Coca-Cola