Question

Examine the influence of groups on consumer behavior. What social media marketing strategies can brands use to effectively promote their products?

Essay
Discuss the role of attitudes in consumer behavior. Explore the communications strategies that firms can utilise to influence their target consumers’ attitude.

Answer 1

Answer-

Step -1

Each consumer in society is a member of different groups depending on their culture, various subcultures or even social class can influence their consumer purchase. A group can be formed when two or more individuals share a set of norms and beliefs. A group becomes a reference group when an individual recognizes with the group and takes on many of the values, attitudes or personal standards of group members and use it as the base of his/her day to day behavior. Reference group is defined as having significant relevance upon an ‘individual’s evaluations, aspirations or behavior influencing the consumer. The nature of reference group influence can take three forms, this is because some groups and individuals are able to influence greater than others and affect a range of consumption.

1. Informational influence

2. Normative influence known as (utilitarian influence)

3. Identification influence known as (value-expressive influence)

Step 2-

The group’s power of influence on consumer’s behavior will depend on a number of factors. For example degree of visibility of the product or trademark used by the group members. The group’s power of influence is higher for the products used visibly such as shoes, cars and fashion products compared to non-visibly products. In the Harley Davidson subculture their power to influence other members is through visible displays such as tattoos and motorcycle customization, this is done to emphasize the commitment to the group. The product’s degree of necessity for example the group’s power of influence is higher for the luxury products such as jewels, fashion etc and lower for necessity products. For example the baby boomers subcultures are likely to influence other members in purchasing luxury products than necessity products.

The group’s power of influence will depend on the individual’s degree of involvement for example if an individual is reliant to a group; it is more likely to conform to the group. The group’s influence will depend on the degree of confident of the buyer during the buying process. The group influence is noticeable when there are specialized products such as PC sets or mobiles. These are the products for which the buyer depends on the expert knowledge of the reference group. The influence of the reference groups is not influential for all types of products or services that consumers purchase. For example products that are not complex, that are low in perceived risk are unlikely to be influenced by the reference groups. The impact of the reference groups can vary. Reference group might determine the choosing of a certain kind of product instead of others. It can further influence the option of a brand or trademark of a product such as Iphone or Blackberry. An individual will want to belong to a group because of their significance and position they obtain. They will want to be associated with groups that have an attractive social position. Due to the unique characteristics certain groups are seen to have a greater social power influence than other groups.

Groups have power due to their ability to influence individuals to become members. The group’s ability to influence the behavior of various individuals that are members or non-members of the group is called social power and can have a number of types. These social powers can influence the consumer behavior in buying certain products and brands. Research found that reference groups are very important for marketers. This is because they can influence and inform members to purchase specific products and brands. It can provide the members with factors to compare with their own values, with the values and behavior of the group. This can therefore influence the members to adopt the groups’ values and attitudes

Group influence is “non controllable” by the marketer but must be taken into consideration when designing new products. The marketer will need to seek out to understand all the group influences that affect consumers so that the marketing mix can be adjusted to give the maximum effect. Consumer behavior is greatly influenced by cultural, social, personal, and psychological factors. Culture is the most fundamental determinant of a person’s wants and behavior. Culture contains smaller subcultures or groups of people with shared values systems based on common life experiences and situations. These subcultures can influence the consumer behavior. Subcultures include nationalities, religions, racial groups and geographic regions. Age subculture (age cohort) is an example of how consumers cultural bond with each other. This is because these consumers are more likely to face similar experiences and share common memories by growing up and living in the same time frame. Many subcultures make up important market segments and marketers often need to design products and marketing programmers’ tailored to their needs and want. For example the automobile industry are taking on the baby boomer subculture market and dealing with boomers changing needs in the industry. Toyota’s campaign of the redesign of the new Avalon was to provide a youthful image that reminds the baby boomers of the late 1960s.

Step-3

Marketing is viewed as a tool that is used to inform consumers about our products and services, revealing the companies’ identity and brands being offered. Social media does that tool. Online life gives a character to our identity, and the items or administrations that we offer make connections utilizing Internet-based life with customers who may not generally think about the organizations’ items or benefit or what the organizations speak to; social media makes us “genuine” to shoppers “On the off chance that you need buyers to tail you, don’t simply discuss the most recent item news; however, share your identity with them, and social media can also be used as a platform to peers association that may be serving the same target market and also gives facilitation through communication and interaction that consumers look for.” Social media carries with it a lot of value, but how do you do it right?

Marketers cannot just depend on social media but must be integrated with other vehicles of marketing. While social media creates awareness, marketers need to be convinced that in the beginning, it will sell a million dollars’ worth of product and services . That is not to say that one day once the players have built up their social media “stardom” that it would not, but it probably would not happen tomorrow. And there are no written “right” or “wrong” rules when it comes to social media; only the marketers can determine what will work for them.

Social media is proving to be an effective tool as a marketing strategy; however, most companies are currently dedicating 11% of their marketing budget to social media, and 44% of those company executives were of the opinion that social media has an insignificant impact on the growth of a company and its brand]. Many researchers have conducted studies: Social Media and Negative Word of Mouth: Strategies for Handling Unexpected Comment., a study on Factors Determining Social Media on Cosmetic Product . Examining the Beauty Industry’s Use of Social Influencers , Young adults and ethical consumption: An exploratory study in the cosmetics market , Global beauty industry trends in the twenty-first century , A study of the impact of social media on consumers , Social Media as a Marketing Tool: A Literature Review by , and Effectiveness of Advertising on Social Network Sites A Case Study on Facebook. However there has not been much research done on an analysis of the effects of social media on purchasing or consumer buying decision-making.

Step -4

A successful branding strategy can be an effective way to grow your business at a lower cost than traditional marketing, like newspaper or television advertisements. Branding is the marketing of your company's products, logos and slogans to consumers to increase recognition of your business. By building a recognized brand in your market, you reduce your reliance on traditional marketing, as branding increases loyalty and referrals from your customers.

1.Handouts

Consumers love receiving free goods. Giving away merchandise related to your business is a simple way to grow your company brand. Give out free samples of your product to market your company's quality. This is a much more direct way to build a customer following than trying to build interest through regular ads. Print out your company's logo or slogan on T-shirts, water bottles and refrigerator magnets. Consumers appreciate receiving these free items and, in return, provide free marketing to your company by using the handouts.

2.Community Marketing

Getting your company involved in your community is another way to increase consumer recognition of your brand. Sponsoring a youth sports team advertises your company's name to a wide audience and builds goodwill, especially from the parents of the children on your team. Local charities also appreciate business support and offer advertising in return. If you can directly market your products through a charity -- for example, a bakery donating free food -- your community branding is even more effective. Consumers get a chance to try your product while the charity advertises your brand.

3.Loyalty Programs

Maintaining a loyal customer base is key for your business to survive. Repeat customers contribute a steady flow of income to your company and are more likely to refer your business to their friends. Starting a customer loyalty rewards program is a good way to build this following. Keep track of your customers' purchases and give out discounts and free merchandise to repeat purchasers. This gives an incentive for consumers to keep shopping at your company and builds a loyalty to your brand.

4.Referral Incentives

Consumers are more likely to trust a company that is highly referred from their friends over a company that they see in a regular advertisement. Building a referral network is an inexpensive and effective way to market your business. Start a rewards program for customers who give you referrals. Offer a purchase discount or free merchandise in exchange for referrals. Give a discount to new customers who come from a referral as well. This makes them more comfortable with the referral process and increases the chances of them giving you additional referrals.

Discuss the role of attitudes in consumer behavior. Explore the communications strategies that firms can utilise to influence their target consumers’ attitude.

Answer-

Step -1

Attitudes are important because they frequently (but not always)predict behaviour. If we know that a person has a more positive attitude toward Frosted Flakes than toward Cheerios, then we will naturally predict that they will buy more of the former when they get to the market. If we know that Amara is madly in love with Leila, then we will not be surprised when she proposes marriage. Because attitudes often predict behaviour, people who wish to change behaviour frequently try to change attitudes through the use of persuasive communications.

Step 2-

A few years ago, KFC began running ads to the effect that fried chicken was healthy—until the U.S. Federal Trade Commission told the company to stop. Wendy’s slogan that its products are “way better than fast food” is another example. Fast food has a negative connotation, so Wendy’s is trying to get consumers to think about its offerings as being better.

An example of a shift in consumers’ attitudes occurred when the taxpayer-paid government bailouts of big banks that began in 2008 provoked the wrath of Americans, creating an opportunity for small banks not involved in the credit bailout and subprime mortgage mess. The Worthington National Bank, a small bank in Fort Worth, Texas, ran billboards reading: “Did Your Bank Take a Bailout? We didn’t.” Another read: “Just Say NO to Bailout Banks. Bank Responsibly!” The Worthington Bank received tens of millions in new deposits soon after running these campaigns

Step -3

The ABC’s of Attitudes

An attitude is a predisposition to evaluate an object or product positively or negatively. The attitudes we form about a product or service will affect whether we’re likely to buy that product or not.

Attitudes have three components also known as the ABCs of Attitudes:

The ABC’s of Attitudes-

1. Affect

2. Behaviour

3. Cognition

Our attitudes are made up of cognitive, affective, and behavioral components. In the image below, consider how an environmentalist’s attitude toward composting, can be evaluated as “favourable” or positive.

Thinking, feeling, and doing can happen in any order. Psychologists originally assumed that we form attitudes through a fixed sequence of these three components: We first thinkabout the object, then evaluate our feelings about it, and finally take action: Cognition → Affect → Behavior [C-A-B].

Research evidence, however, shows that we form attitudes in different sequences based on different circumstances. If we’re not very involved in or don’t care much about a purchase, we may just buy a product on impulse or because we remember a catchphrase about it instead of carefully evaluating it in relation to other products. In that case, action precedes feeling and thought:Behavior → Affect → Cognition [B-A-C].

Conversely, feelings—rather than thoughts—may drive the entire decision process; our emotional reactions may drive us to buy a product simply because we like its name, its packaging design, or the brand image that ads create. In this case, we see the product, have a feeling about it, and buy it: Affect → Behavior → Cognition [A-B-C].

Although most attitudes are determined by affect, behavior, and cognition, there is nevertheless variability in this regard across people and across attitudes. Some attitudes are more likely to be based on feelings, some are more likely to be based on behaviors, and some are more likely to be based on beliefs. For example, your attitude toward chocolate ice cream is probably determined in large part by affect—although you can describe its taste, mostly you may just like it. Your attitude toward your toothbrush, on the other hand, is probably more cognitive (you understand the importance of its function). Still other of your attitudes may be based more on behavior. For example, your attitude toward note-taking during lectures probably depends, at least in part, on whether or not you regularly take notes.

Different people may hold attitudes toward the same attitude object for different reasons. For example, some people vote for politicians because they like their policies, whereas others vote for (or against) politicians because they just like (or dislike) their public persona. Although you might think that cognition would be more important in this regard, political scientists have shown that many voting decisions are made primarily on the basis of affect. Indeed, it is fair to say that the affective component of attitudes is generally the strongest and most important

Attitudes are also stronger when the ABCs of affect, behavior, and cognition all align. As an example, many people’s attitude toward their own nation is universally positive. They have strong positive feelings about their country, many positive thoughts about it, and tend to engage in behaviors that support it. Other attitudes are less strong because the affective, cognitive, and behavioral components are each somewhat different (Thompson, Zanna, & Griffin, 1995). Your cognitions toward physical exercise may be positive—you believe that regular physical activity is good for your health. On the other hand, your affect may be negative—you may resist exercising because you prefer to engage in tasks that provide more immediate rewards. Consequently, you may not exercise as often as you believe you ought to. These inconsistencies among the components of your attitude make it less strong than it would be if all the components lined up together.

Step -4

Communication strategies encourage consumers to make a response, either by requesting further information or purchasing a product. You can improve the effectiveness of your strategies by building a greater understanding of consumers’ individual needs and preferences and personalizing communications. Strategies that build dialogue with consumers create trust and provide you with feedback that enables you to fine-tune your communications .

Integrating a public relations campaign with a marketing program can improve the effectiveness of your marketing program by ensuring that you communicate with groups of people who influence the purchase of a product, directly or indirectly. Traditionally, companies have managed the two functions separately. However, a number of market-leading companies, including Renault-Nissan, Unilever and Aviva, have recognized the importance of integrating marketing and public relations by appointing senior executives with responsibility for both functions.

Your marketing campaigns target the customers and prospects for your products and services with campaigns such as advertising, direct mail, email or other forms of communication. To use your marketing budget cost effectively, you communicate with the most important members of the target audience -- usually consumers or purchasing managers. However, other people such as journalists, retailers, friends or work colleagues can influence the buying decision. With a limited budget, you may not be able to communicate with all the influencers. A public relations campaign aimed at the other influencers provides important support for your marketing effort.

Marketing communication is how you stay in touch with and convey important information about your company to your customers. Communication vehicles can include newsletters, websites, e-mail correspondence and other written materials. The content and design of these pieces of communication must meet the objectives of educating, encouraging action or building brand awareness

Communicating with your customers keeps them apprised of new happenings in your business and fulfills the objective of promoting your products and services. This can include new product launches, sales, expansion or introduction of new offerings. The objective of this form of marketing communication is to encourage customers to act or to keep them involved with your business. One example of sales marketing communication is an e-mail blast that informs consumers about an upcoming, limited-time sale and provides a link to the company's online product catalog where they can immediately take advantage of the savings opportunity.

Many effective forms of marketing communication provide customers or potential customers with information about your product, service, business or industry. For example, an accountant that publishes and distributes a newsletter on tax tips is establishing himself as a expert in the industry by way of educating the public about basic accounting practices. The objective of this form of marketing communication is to establish the knowledge of the business and its expertise, while encouraging people to use more in-depth services.

An objective of effective marketing communication is to retain your existing customers and increase their investment in your business. establishing customer reward programs that are presented through marketing mediums like direct mail help achieve this. Letting your customers know you appreciate their business and presenting them with opportunities to save money, while at the same time upselling them to new, more or better products, results in increased income for your small business.

Bringing in new business by way of existing customers is an objective of marketing communication practices. Communicating with existing customers via social media, email and your website and encouraging them to refer you to others creates an independent sales team that works on your behalf. Rewarding customers for their referrals further solidifies your relationship with them at the same time.

Every communication message you share should reinforce your brand image in the mind of consumers. This can be accomplished through consistent messaging and a commonly-used color scheme, logo and graphic design on all marketing materials. Consumers will associate your message and image with your product, creating a strong brand identity.

Step -5

Effective employee communication can represent a strategic business advantage for companies that take the time to communicate effectively with staff members. Employees represent an important audience not only in terms of their contributions in the workplace, but also in terms of their ability to serve as ambassadors and cheerleaders for the companies they work for.

It is impossible to know whether employee communication is effective unless it is somehow being measured. Based on established goals, companies can measure employee knowledge, awareness or perception before implementing communication activities. After communication has been implemented, they can remeasure to see if any changes have occurred. Many companies conduct annual employee communication surveys to identify areas of improvement as well as opportunity.

Employee communication should not be all one-way--from the top of the organization down to employees. Instead, there should be many opportunities for employees to share feedback with their supervisors and managers, and with other company leaders. But simply having opportunities available is not enough. How employee feedback is responded to, acknowledged and followed up will set the stage for strong, trusting relationships between the organization and its employees.

Employees appreciate honest and open communication from their leaders and their organization. Even when the news is bad, being upfront and straightforward with employees can help build trust and loyalty.