Thursday, January 19, 2017

Part-7: Communicating Value


Lesson-7(Discussion Questions):

The opening vignette of Chapter 17 is about Dove's advertising campaign featuring "normal” women.  Go to the Web site: www.campaignforrealbeauty.com and read Randall Rothenberg, "Dove Effort Gives Packaged-Goods Marketers Lessons for the Future,” Advertising Age, March 5, 2007; Theresa Howard, "Ad Campaign Tells Women to Celebrate Who They Are,” USA Today, July 8, 2005; Jack Neff, "In Dove Ads, Normal is the New Beautiful,” Advertising Age, September 27, 2004.  After reading and visiting the site, share your impressions on the campaign's effectiveness with the target market. 
DQ No.1) Answer:
A company tries to sell its products and services towards a specific group of customers, called target market. A company first should identify its target customers by segmenting its whole market into a small segment and secondly it should be given the priority to fulfill their needs, wants and desires. As a marketing manager, we have to operate marketing mix-4Ps (product, Price, Place and promotion) effectively in order to gain a competitive edge in the market.
A significant shift in strategy occurred for Dove in 2003 with the lunch of the real beauty campaign that celebrates “real women” of all shapes, Sizes, ages, and colors. Furthermore, the campaign arose from research revealing that only 2% of women worldwide considered themselves beautiful. It featured candid and confident images of curvy, full bodied women-not traditional models. The ads promoted Dove skin products such as Intensive Firming Cream, lotion, and body wash. It seems that traditional TV and print ads were interlinked with all other forms of new media, for instance, real-time voting for models on cell phones and tabulated displays of results on giant billboards. Likewise, the dove evolution video showed a rapid-motion view of an ordinary looking woman transformed by makeup artists, hairdressers, lighting, and digital retouching to look like a model.  When it was uploaded to YouTube by Dove’s ad agency Ogilvy & Mather, it was an instant viral hit, drawing 2.5 million views. Dove products are recognized for their different functional features in every category in which they are shown. It is not only functional characteristics that differentiate Dove, but it also made a distinctive personality of the brand from its inception.
Dove’s advertisings and campaigns were stunning so that it created a huge impact on the customers. Also, it has integrated marketing communication in order to build the brand image of Dove in the mind of the customers. The evolution ads video showing an ordinary looking woman's face into that of supermodel; was just one kind of the creative marketing communications that sparked dove’s recent success in influencing its customers.
In summary, it is definitely true that Dove was successful in attempting to inform, persuade, and remind customers directly or indirectly about the product and the brand they sell. Marketing communication done by Dove also helped them to tell or show customers how and why the product is used, by what kind of person, and where and when. After reading and visiting its websites, it is known is that Dove's campaign was outstanding for delivering the promotional message that reached to its targeted audience, and it is understood by the audience properly, and message was quite good at stimulating the customers to buy repeated the same products.
References:
-   Kotler, Philip & Keller, Kavin. (2012). Marketing Management. Addison-wesley: Prentice Hall.
2.    Read the following sources listed in the Marketing Insight: "Endorsements as a Strategy,” Irving Rein, Philip Kotler, and Martin Scoller, The Making and Marketing of Professionals into Celebrities (Chicago: NTC Business Books, 1997); Greg Johnson, "Woods Cautious Approach to the Green,” Los Angeles Times, July 26, 2000, p. A1; Bruce Horovitz, "Armstrong Rolls to Market Gold,” USA Today, May 4, 2000, p. 1B; Theresa Howard, "Pepsi Takes Some Fizz off Vanilla Rival,” USA Today, November 16, 2003; Keith Naughton, "The Soft Sell,” Newsweek, February 2, 2004, pp. 46-47; Betsy Cummings, "Star Power,” Sales & Marketing Management, (April 2001): pp. 52-59. After reading these articles, take a position: For or against using celebrities as endorsers. 
DQ No.2: Answer:
A celebrity endorsement refers to the advertising activity of the company by using celebrities to endorse brands. It is one of the most important marketing strategies for attracting new customers and retaining the existing ones. However, it is not easy task for marketers to select celebrities who represent the image and promise of the company’s brands. In this paper, I will discuss about advantages and disadvantages of doing a celebrity endorsement for a brand.
For celebrities as endorsers (pros of celebrity endorsements):
1.      Build brand equity: it can be very useful strategy for building brand equity of the company’s products and services. For instance, Nike, as one of leading company in the sports, wanted to expand into new markets by sponsoring tennis and track athletes.
2.      Help people remember Ads: it can improve ad recall, according to researchers Jagdish Agrawal and Wagner Kamakura. When people would see or hear Dennis Haysbert on the show “24”, they associate his voice with Allstate.
3.      Make people believe the product contributes to superstar status: Most of people always follow what their celebrities do in their lives so that people want to imitate their celebrities’ lifestyles to impress others. For example, if it is shown in the endorsement, a celebrity using a General motor’s car then others also would like to use the same car.
4.      Stand out: Research from Charles Atkin and Martin Block suggests that “celebrities may help advertising stand out from the surrounding clutter.”  It is true that celebrity endorsements enhance its image and brands in the minds of customers.
5.      Brand Credibility and worldwide reputations: Celebrity Endorsements could be believable and credible than other advertising campaigns because many people believe in what their celebrities do while choosing and buying the particular products and services.
Against celebrities as endorsers (Cons of celebrity endorsement):
Although a celebrity is a good fit for the brand, using one for endorsements has its own sets of possible risks.
1.      Images change: Celebrities may make mistakes and when they do, they affect the entire company’s brands they endorse.
2.      Celebrities become overexposed: when a celebrity is successful and he/she tries to endorse more and more companies at once, the celebrity’s credibility may suffer. People may feel that the celebrity will endorse anything to earn money.
3.      Celebrities can overshadow brands: Consumers may focus on the celebrity, not the product. This kind of danger may happen when one celebrity endorses multiple products at a time. For example, when, an Indian cricketer, David Beckham endorses a number of companies at once, his image as the focal point of advertising devalues many products.
Hence, having aforementioned all, I would prefer to have a celebrity endorsement because its pros far outweigh its cons. Yet it has some pitfalls that companies should consider before selecting a celebrity, and developing endorsement programs. It can reap huge rewards for a brand in long term though some possible risks are there. As a marketing manager, we must be able to determine which option is better by calculating its risks and rewards.
References:
-          Kotler, Philip & Keller, Kavin. (2012). Marketing Management. Addison-wesley: Prentice Hall.
3.    It has been suggested that over 70 percent of all buying decisions are made in the store and as a result, point-of-purchase advertising has grown in its appeal. Give three examples of point-of-purchase advertising that you have recently come across (ads in-store, personal selling by a cosmetic counter salesperson, etc.) and comment on the effectiveness to them of this type of advertising. Did you buy the product? Did the advertising annoy you? Moreover, in the role of a marketing executive, would you recommend spending part of your advertising budget on this form of media? 
DQ No.3) Answer:
Point-of-purchase (POP) or point-of-sale refers to an area surrounding counter where the sales are made order to increase the profit margins. These kinds of advertising play a pivotal role for influencing customers to buy repeatedly and make strong loyal customers. Some examples of point-of-purchase are merchandise display, use of signature, receipts and suggesting selling by the retailer either in Mall or market or city.
For example, some of the point of purchase advertising, I have had are as follows:
·         When I went to the mobile shop to buy a mobile, there were lots of mobile companies there to provide their services. Firstly I thought to buy a Nokia mobile but I saw a nice ads picture of Samsung that had dragged my attention to buy that mobile. I saw a lot of good features on the Samsung Mobile that I suddenly change my decision to buy it.
·          I recently visited to the shopping mall for purchasing a wallet. I purchased wallet when I was paying the money I saw advertisement/pictures of the wallet in side of the counter. I asked to the sales person to show these wallets. Among them one of wallets is attractive. I asked its cost and she said high price $ 50 and I bought that wallet at $ 50.
·         I went to Dell laptop show-room to buy a laptop; suddenly I saw posters of Watch just attached shop with that Dell laptop shop. Actually I was planning to buy watch too so I went to the watch shop and bought a watch, Rolex from that shop.
Moreover, as a marketing executive, I would recommend spending part of one's advertising budget on this form of media. It is very important therefore to ensure that point of purchase units are displayed in the most attention grabbing, eye drawing position in the store to help direct the customer as needed. Customers like to be informed and will appreciate clearly displayed information that attempts to help them make the most suitable purchasing choice. These advertisements are really eye-catchy and interesting as they are creative to attract the customers and at times they are successful at doing so. And I don't think that these kinds of advertisement annoy me, rather they give us more information regarding its products’ features and qualities.
References:
-          Kotler, Philip & Keller, Kavin. (2012). Marketing Management. Addison-wesley: Prentice Hall.
-          (n.d). Retrieved from http://www.investopedia.com/terms/p/pointofpurchase1.asp

4.    Dell(r) Computers has begun setting up kiosks demonstrating their products in regional malls across the country. They are also selling their computers in Wal-Mart stores, Best Buy, and other U.S. retailers. Dell will soon be selling through retailers in China.  Consumers are no longer directed to their web site to place an order.  Obviously, Dell has had to change its "contact” with consumers. What effect do you believe this type of change in their direct marketing mantra is having on Dell's business? Must other direct marketers make the change?
DQ No.4) Answer:                            
Dell is one of the largest computers supplier company in the world, established in 1984. Dell has continued for shaping the industry by breaking new ground and pioneering critical developments in home, small business and enterprise computing. It has been delivering computer systems, computer peripherals, computer software, IT consulting and IT services since its inception in US.
According to Wikipedia-“A retail kiosk (also referred to as mall kiosk or Retail Merchandising Unit) is a store operated out of a merchant-supplied kiosk of varying size and shape, which is typically enclosed with the operator located in the center and customers approaching the vendor across a counter.”
The place or distribution channel is one of important factors of marketing mix. Initially, Dell uses a direct channel model where it sells its products directly to the customer without need for a distributor or a middle man through Internet. However, selling and distributing the products and services through internet is not sufficient in the modern marketing. For this, in 2002, Dell opened kiosk locations in shopping malls, including Wal-Mart, across the United States to provide personal service to customers who preferred this method of shopping to Internet or telephone orders. Kiosks are located in shopping malls, airports, sporting events, or larger stores etc. to make customer more ease for communicating and delivering the products and services.
Despite the added expense, due to these changes in direct marketing will deliver a superior customer value through a new way various services such as prices at the kiosks match or beat prices available through other retail channels, high visibility of these units, which are most often located in the common areas of malls, these businesses can often gain a relatively trackable monthly sales figure after a three or four-month trial. Many other benefits exist, such as the low overhead, small inventories, and low or non-existent CAM, tax, utility, and marketing fees, as compared to their in-line storefront counterparts, which can often have fees equal to or in excess of the rents themselves. Having said these, however, direct marketing must be changed to attract more customers in the way the customers want.
Hence, it would be wise decision to use Kiosks for the customers who want to have a unique style to do fun while visiting and purchasing the goods and service. Furthermore, it should be changed as the customer needs and preferences so that more and more customers will not switch into other competitors.
References:
-          Kotler, Philip & Keller, Kavin. (2012). Marketing Management. Addison-wesley: Prentice Hall.
-          (n.d).Retrieved from http://en.wikipedia.org/wiki/Mall_kiosk

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