Forces Driving the New Marketing Realities
Questions:
1.Consider the three key forces driving the new marketing realities. How are they likely to change in the future? What other major trends or forces might affect marketing?
2.What brands and products do you feel successfully speak to you and effectively target your age group? Why? Which ones do not? What could they do better?
Technology in the present generation has a tremendous impact on the field of marketing. It had diverse impacts both on organization and on customers. it had impacted the capability of the organizations positively by collecting and organizing marketing data and also utilizing proper channels so that they can reach the exact consumers they want to attract or provide service to. Technology has also helped in providing the proper process of developing numerous various types as well as formats for advertising assets. From the customer’s side, technology had helped them to be directly exposed to social media sites, televisions and many others. Marketing therefore had attracted millions of people through their advertisements over the social media websites (Technology | Boundless Marketing 2017). Even Google-paid search results and face book advertising shad made the average consumer directly exposed to personalize and data driven exposure to ‘relevant’ ad materials. However a negative outcome that had been increasingly associated with technology driven marketing is ad blindness. As they remain exposed to large number of sponsored content, they have developed the capability to subconsciously or consciously ignore sponsored ad content which might be a negative outcome,
However the future of technology driven market is quite challenging as experts are argumenting about the extent of its success rate in the coming generations. With the development of new application every other day on smart phones and tablets, online video contents, refined search engine results, blog posts and web developments and many others hold promising results in marketing sectors (Golden 2017).
Globalization is mainly referring to the concept of the integration of markets in the global economy. This has helped the business organizations by developing an increased connectedness of the national economies. Globalization has had a tremendous impact on marketing sectors. This had been mainly possible due to development of many factors like ICT, transport as well as communications. With the help of the internet, 24/7 global communication and marketing has been possible. Moreover, the use of containerization, it has been seen that vast quantities of good and commodities have been able to attract consumers and are shipped across the world at extremely low cost. Researchers are of the opinion that new forms of communication and marketing include micro marketing which is indeed helpful in targeting international consumers. For example, the widespread use of smart phones had helped global shoppers to get easy and wide access to ‘virtual ‘global markets. Researchers are also of the opinion that footloose multinational companies like apple, McDonald, Microsoft and others have been central to the emergence of globalization. A drive has been noticed for reduction of tax burdens and avoiding regulations has also helped in establishments of such global markets with complex international business structures. Share of trade of goods and services in the modern day world GDP has successfully increased from a percentage of 40 in 1990 to a percentage of 60 today.
Successful Brand Communication with Age Groups
However, in the future, the trend of globalization will become more pronounced but this will accompany a large number of negative aspects. Globalization is leading to over-standardization of products and is also leading to lack of product diversity. It is also creating barriers to entry for various small local producers. Many researchers are of the opinion that a considerable disadvantage of globalization would also become pronounced like how it will increase the pace of deindustrialization which is actually the slow erosion of an economy’s manufacturing dose.
Social responsibility as in corporate social responsibility or CSR gas becomes one of the most important aspect of every organization. This is because data shows that in the year 2015, Nielson had published its annual global corporate sustainability report which indicated 66% of the consumers are willing to send more on a product which is coming from a sustainable brand. A large number of companies have also got this trick and therefore they are mainly focusing on marketing their products in way which make them look more responsible towards society. They are undertaking the efforts of showing corporate social responsibility in order to attract their customers who now believe it to be an important part of being responsible for the society. Expectations of customers, consumers, employees and government has risen and hence retailers like Wal-mart, food chains like McDonald’s and leading B to B manufacturer and service providers are pressuring their suppliers. This is done to deliver on their sustainability goals helping in driving to consistent, efficient and ethically produced products. Therefore companies are now branding and marketing in a consistent and effective way to engage with the stakeholders in such a way that it attract the consumers and makes them attracted to their products showing that they are responsibly doing business.
With the passing of time consumers are getting more educated and they strongly like to purchase only on this products which they want. Long gone are the days when companies used to fool their customers and behaved unethically for the selling of their products. In the coming days, consumers will become more responsible to the expenditures they make and the products they buy. Therefore corporate social responsibility when adapted by the company will add an important feather to the hat meaning that it will be indeed be a plus point which they will consider before spending on their products and services (Landrum, 2017). Therefore companies should take more initiatives of marketing their products along with the corporate social responsibility that they had undertaken so that consumers develop an extra taste for them and prefer them over the other companies who do not exhibit CSR.
Deregulation might affect marketing realities. A large number of nations have deregulated industries to create as well as growth opportunities a greater competition. The nation of the United States has loosened the laws regarding telecommunication, financial services and others for greater competition. Privatization is another trend where the public companies had converted private ownership and management for better efficiency like the British airlines in United Kingdom. Besides, heightened competition, industry convergence, retail information and others are acting as trends in marketing realties.
Technology’s Impact on Marketing
2.Study of the Viacom Brand solutions international also called the VBSI called the Golden age of Youth had helped them to come to a conclusion that marketers should target their customers in ways which will entirely be based upon their engagement and participation in the youth culture in comparison to their chronological age (How to Market to the Overlooked 25-34-year-old Age Segments, 2017). They are of the opinion that the age group of 25 to 34 tries their best to remain younger holding onto their likings like music, gaming and the internet. They have found out that although the age group try to remain younger, there are some basic differences among them and their younger and older counterparts. The study identified three stages like the Discovery stage called the 16 to 19 years, experimentation called the 20 to 24 and golden called the 25 to 34. Out discussion would be based on the latest group.
It is seen that this group remains happier and are more confident. They are secure and gravitate towards the premiums, understated as well as luxurious brands. They are unlike teenagers who are under heavy pressure or are highly focused on material gains and employ brands to define their identity. The age of 25 to 30 remain more engrossed in technologies that help them connected with the world and peers. Starting from Smartphone, to laptops, smart watches and others help them not only on entertainment purpose but also help them to remain connected with their employment centers, workplaces and others. They usually start earning within the age or are on the verge of joining organizations and hence laptops and Smartphone are their primary products which they require. Besides, televisions and radios remain constant as their entertainment purposes. They start enjoying their life responsibly and hence liquor brands also interest them. Besides, solo travel packages or romantic packages are also sold to these groups as they love travelling as a means of break from their regular lives. Although certain amount goes for gaming, but this age not entirely remains engaged in gaming and try to become more responsible and start planning for families. Another important arena that is very important is the clothing products. People of this age always try to be representable and look best and hence they are seen to be more inclined towards dresses, shoes and beauty products and cosmetics. Both local and national brands attract consumers depending upon their financial strength. However certain factor in which they remain least interest are insuring their lives as they procrastinate. Therefore insurances are not afforded by them. They do not also want to indulge in higher assets houses or plots of lands. They also do not believe in investing for mutual funds and try to live in the moments and cannot develop the importance of savings. Hence such companies should try to develop their advertising styles. They should market their products in ways making them look like necessities and helping them to be more cautious of their importance.
References:
Golden, M. 2017. 5 Examples of How Technology Is Changing Marketing in Unexpected Ways: CES 2016, Day 3. [online] Business.linkedin.com. Available at: <https://business.linkedin.com/marketing-solutions/blog/content-marketing-thought-leaders/2015/5-examples-of-how-technology-is-changing-marketing-in-unexpected> [Accessed 14 Dec. 2017].
Landrum, S. 2017. Forbes Welcome. [online] Forbes.com. Available at: <https://www.forbes.com/sites/sarahlandrum/2017/03/17/millennials-driving-brands-to-practice-socially-responsible-marketing/#30cd90164990> [Accessed 14 Dec. 2017].
The Marketing Environment 2017. Technology | Boundless Marketing. [online] Courses.lumenlearning.com. Available at: <https://courses.lumenlearning.com/boundless-marketing/chapter/technology/> [Accessed 14 Dec. 2017].
Viacom Brand Solutions International 2017. How to Market to the Overlooked 25-34-year-old Age Segments. [online] Marketing-execs.com. Available at: <https://www.marketing-execs.com/news/11-08/2.asp> [Accessed 14 Dec. 2017].
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