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Portfolio task 4
Self
Gibson vs. PRS
Knowing the brands
As one of the oldestmusical instrumentsmanufacturers,
Gibson launched the first electric guitar in the 1930’s
(Gibson.com). Starting the 70’s, its main marketing was being
done by celebrity endorsers such as their most popular figures
Slash(Guns’nRoses) orAngusYoung(AC/DC),although print ads
have always been around music shops and effective spots. As
time passed, through its endorsers and
advertising campaigns, Gibson managed to
position itself among the top quality guitar
manufacturers, reinforcing values such as
traditionalism,qualityandnatural sound, all
these backed up by the strong brand image
createdthroughthe worldwide well-known
endorsers (Juszkiewicz H, 2012) Moreover,
the post-service and support offered by the
brand towards its customers, helping them
with their further evolution in their music
career, made it be seen not only as a
company but as a friend, by its users
(Gibson.com),gettingthemtoaspire for the
fame and fortune givenbya“Rock Star” life.
Paul Reed Smith (PRS), on the other hand, is a relatively new competitor for Gibson,
entering the guitar manufacturers market in the late 1980’s. With brand values such as high
quality,anda fine combinationof traditional featureswithlatesthigh-tech elements, it aims to
give each of its player best value for their money. (prsguitars.com) From the very beginning it
was focused only on this category on musical instruments, unlike Gibson who switched from
manufacturing mandolins, and even before launching, it targeted popular endorsers to raise
awareness upon the brand, as Paul identified how important word-of-mouth and
aspirational trust were in the industry (Smith P, 1992).
Having Carlos Santana as their first endorser (prsguitars.com), from the very
beginningthe printedadsforthe brand includedthis important figure. From here on,
most of their prints and magazine inserts were accompanied by a popular endorser.
Having the purpose to boost trust, credibility and power of the message (lecture
slides, week 5),and get customers to aspire, this also demonstrated the rapidly
growing interest in the brand showed by celebrities.
However, PRS didn’t stop here. The modern world brought in more
and more female guitarists, and the company was one of the first to use
this as a way of both showcasing its openness to innovation and new
trends, as well as approaching a new market segment. It quickly
became a fierce competitor for the Gibson Les Paul category.
Compare, contrast, choose
Comparing the two brands, we can
easily identify some differences. However,
howdoesa customerchose which one suits
them best? Purkey (1988) defined the Self-
Concept as ‘the totality of a complex,
organized and dynamic system of learned
beliefs, attitudes and opinions that each
person holds to be true about his or her
personal existence’. Taking the Gibson
example first, considering the values they
promote we can say that a typical customer
would be an individual for whom the
tradition and longevity of the brand is of
high importance, who values the support
the brand gives throughout his journey of
becomingamusicianverymuch,and aspires
(ideal self) to the fame and recognition the
Gibson Endorsers had during the 80’s-90’s.
The campaigns the brand initiated
throughoutitshistorywere mostlybasedon
evidencing the gap between the actual self
of a customer– suggestedasbeinga regular
person,withnospecial recognition, and the
respected, passionate musician, keen to
following his/her objective that possessing
the guitar could turn him/her into
(behance.net, Gibson.com).
All these suggestions about the
brand somehow make customers feel like
being a part of a group. Owning a Gibson
guitar is, as Elliott A. (2007) suggests, a part
of a symbolicinteractionism,beingalsoaresultof the customerbeingpart
and entering contact with a certain group of people having similar
interests,beliefsandvalues. Thisalsoappliestothe Paul Reed Smith case.
Contrasting the two types of customers and relating them to the
brands’images,whatcan be saidis that while aGibson loverseesas being
more important to be associated with the long history of the brand and
the models it imposed during its existence, as well as the good quality
delivered, a PRS
buyer is
somebody who
aspirestonew models,new trendsandinnovative technologies,
aware of the fact that the times have changed and he can get a
better value for the money if he decides to go with a more
modern brand. The manufactureremphasizesthese things from
the veryfirstcontact withthe guitar,havingas a distinctfeature
the shapes used for the inlays – varying from birds flying, to
bats, and even long complex shapes for the high-top models
such as dragons.
Huitt,W. (2011) cites FrankeninEducationalPsychology
Interactive, saying that ‘the self-concept gives rise to possible
selves, and it is possible selves that create the motivation for behavior’. It can therefore be argued that a customer
choosing PRS aspires to becoming a significant part in the evolution of music, being seen as somebody creative that
brings a plus to what has already been created. Modern and daring, instead of sticking to the tradition, heritage and
recognition coming from a long-lasting brand, he would rather win it with his own powers.
Trying to get an even higher share of the guitar market, PRS tried to configure new models of its products to
match certainplayinghabitsof itscompetitor’s–Gibsoncustomers(leagle.com). However, this was the start of several
disputesandlaw suitsbetweenthe twomanufacturers,asGibsonfeltPaul Reed Smith infringed its copyrights in terms
of design. Nevertheless, this action reinforces the willingness of the brand to satisfy its customers’ needs and give a
good alternative to the options they already have
Concluding,itcanbe stated that on an emotional level it is highly important for a brand to deliver the product
able to minimizethe gapcreatedbetweenthe actual self –whothe customerreallyis,andideal self –whothe customer
wantsto be/wantstobe seen as, while also approaching his ought self – how he actually should be like. The purchase
decision will be taken differently for each individual because of different external and internal factors, such as group
pressure and need of belonging, personal experiences, values etc, and it is important to emphasize the brand’s core
identity in the advertising campaign as to persuade customers, making them aware of the discrepancy between their
actual state and their desired position both for themselves, and within the society.
Portfolio task 5
Group Influences
When talking about the buying decision making process there is no question that external factors play an
important role in our perceptions and considerations. One of the most influential factors is the group pressuring.
Willingnessof beingpartof a groupoftendetermineacustomerto change hisaspirationsandtherefore buyingbehavior
as to meet the expectations of the group he wants to be part of – as Wilson R suggests in the Journal of Artificial
SocietiesandSocial Simulation (2007).Witt,R (1986) alsotalksabout this influence, analyzing how its impact is greater
for the low cost, non-durable items such as beer, cigarettes or deodorant.
Takingthe example of beerconsuming,Witt,R(1972) alsopoints out how, because of the similarity among the
brands,the Brand Choice Congruence becomes a very important additional factor in buying behavior – most times, an
individualpart of a group will consume the same brand as the group, as to be alike. Analyzing several campaigns from
beer manufacturers such as Carlsberg, Guiness, Budweisser or Heineken, we can draw a mind map of the values beer
consumptionpromotes, among which: “True lad” – Guiness, “Long-lasting Friendship” – Budweisser, “Beerfriender” –
Heineken,”Motivation and
Team Building” - JWT, using
beer as a means, “Friends
Test” – Carlsberg. Because of
these, people generally have
a positive impression upon
beer consumption, and often
use it as a reason for meeting
with friends – “Let’s go for a
beer”. Motivation towards
the buying decision in this
case is,therefore,related not
only to the taste of the beer
but also being part of their
group of friends. However,
this thing changes with
cultural factors such as
religion that might affect the
group pressure or inhibit the
likability of one to purchase
the product in a negative way.
Takinga closerlookat the beercommercials,mostof themincorporate firstlythe friendshipvalue,andthe beer
isconsumedamong the close ones – which are also the primary reference group. Following a study undertaken at the
University of Iowa, Fitzgerald, J.(2002) points out the link between the level of closeness attributed to the reference
drinkinggroup(close friends,colleaguesetc) andthe drinkingbehavior.Itcan therefore be arguedthatreferencegroups
are highly influential in the alcohol consumption.
Goingback to brand choice,beerssuchas Carlsberg and Heineken, for example, have similar target markets in
the East Europeancountriessuchas Romania.Witt,R (1969). suggestin‘JMR, Journal of MarketingResearch’that in the
case of a group, an important amount of the members chose consuming one of the brands due to one of the group
members using it, so it is not only the other way around. Personal observation backed up these theories, as, after
undertakingapersonal primaryresearchbasedonobservationintwolocationswhere beerwasconsumed,mostfriends
groupsconsumedthe same beerbrand,and more than that,in one of the cases mostpeople inthe clubconsumed only
one brand predominantly.Thiscanbe easilyrelatedtothe primaryandsecondarygroups’influence.I also analyzed this
on my personal group of friends, and the conclusions matched.
For the new consumers of beer, it is very likely to adopt the behavior being influenced by a close friend, and
usuallytheytendtostickto the brand theyare firstlyintroducedto, which is normally the brand their friend consumes
(UrbergK, 1997). It is alsolikelyforanindividual tochoose abrandfrom aspirational reasons,suchasaspiringtobe seen
as part of a certaingroup of people –for example,Heineken is seen as a more luxurious brand, and its consumption in
Beer
Friendship
Loyality
Relaxation
Fun
SocialTeamwork
Good Time
Caring for
others
Acceptance
publicplaceswouldsuggest certainthingsaboutaperson,as some would assume.(Moschis G, 1976) Continuing on this
idea,itcan therefore be concludedthat asin the case of any other brand, its consumer takes with the physical product
the whole package of valuesthatitpromotes. Inthe case of Carlsberg,forexample,thesewouldbe friendship,loyaltyor
good quality.
Concluding,we cansaythat group pressure andaspirationof beingpart of a group play a very important role in
adoptingcertainhabits – inthiscase beer drinking, and further on choosing a brand. Even if a customer is usually loyal
to a brand, he can easily change it if the social circumstances put a pressure on his decision (Witt R. 1970). The peer
influenceincreaseswiththe degree of closeness in terms of the relationship, so the primary reference groups are the
onesthat model the customerbehaviorthe strongest,being followed by secondary groups and other social norms and
circumstances, as well as the available options for purchase.
Portfolio Task 2
Perception
‘Perceptioninthe processof selecting, organizing and interpreting sensations into a meaningful whole. In the
past,methodsof studyingstimuli andmeasuringresponsestothemwere restrictedtoexaminingthe fivesenses.Today,
however,the view thatperceptionusesmerelysight,hearing,smell,taste andtouchtocomprehendthe environment is
inadequate’ (Wozniak H, 2013, p. 75). What she also says is that perception is subjective and is very important to pay
attentiontoall the circumstances in which we want to deliver our message or act on a consumer’s behavior. Shopping
malls are a good way of analyzing how marketers try to influence perception by making use of different tools that
stimulate one or a combination of the five senses.
According to Dennis, C (2010) given the competition that exists among shopping centers, it is becoming more
and more importantforthemto mix efficiently the factors that create atmosphere, as, citing Jugger (1999), 70% of the
purchase decisionsare made in store and at the point of purchase. Taking the Birmingham City Center example, there
are several shoppingcenters, among which Bullring, The Pavillion, Mailbox and Pallasades. As
Bullring is the most popular and biggest one, the focus of this analysis will be mostly on it.
Because of itsbig size andvarietyof retailers,itis important for it to be well organized, as well
as to give an interactive andcomplex shopping experience as to keep the customers engaged.
The use of latesttechnologysuchas LED lighting for ads, screens and interactive touch screens
is also of critical importance, as customers tend to have increasing expectations on this in the
past years (Spinner, J. 2011), and Bullring adapted well
throughthe interactive store-locatorsand events points of
information. Retail lighting also influences the customer
perception so it is often different from high-top sections
such as Selfridgestomore commonretailerssuchasSportsDirect (Spinner, J. 2011).
However, it is important to consider the sustainability trend that increases in
popularity nowadays, so natural lighting is an important element (Siakavellas, M.
2007), and Bullring evidences this through the big glass doors and partly
transparent roof.
Using the observation technique, it can be highlighted the fact that hear
each of the shoppingcenter’sentry/existsthereisatleastone food place, varying from fast foods to dining places such
as Del VillaggioorCafé Rouge,givingcustomersthe opportunityto have a meal either at the beginning or at the end of
their shopping experience. They also contribute to it by arousing the smell sense, in the main area of the mall. Also,
giventhe factthat the mainentrance it on the top floor, the main dining areas with places such as Pizza Hut or Jamie’s
Italian are situated on the bottom floor, as to increase the likability of being the final destination of shoppers, after a
longjourneythroughthe mall.Throughoutthe shopthere are several small food/drinkscourtsforgivingaquickbite and
enriching the diversity. They also contribute to arousing the smell sense, as well as the visuals, most times food and
drinks being displayed. As a secondary role of the shopping malls is recreation and entertainment (Dennis, C. 2010),
Bullring often holds special events, that take place most times on the bottom floor. A reason for this can be that,
followingwhathasbeensaidbefore thatthe mainentranceson the top floor, customers need to be kept engaged, not
only by digital signage and food spots, but also by entertaining acts. These can take several forms, but most times are
targetedtochildren,inthe formof mini football spotsorotheractivities(Disneyshopis also on the bottom floor so the
likabilityof childrentobe presentthere isevenhigher,andthe presence of these spotsalsoincreases the traffic around
the shop,as well as around SportsDirect.Chang,E. (2010) alsopointsout,by
citing Porter (1997) how the functional attributes such as quality and
availability of merchandise combines with intangibles such as music, smell
etc in creating customer value for the shopping experience in the Chinese
market, and relates it to the international trends.
The Selfridges segment of the shopping center is also a very good
example of howashoppingexperience canbe improvedbyprovidinga great
variety of options. Hosting a food court at the bottom floor, with generally
highqualityfoodanddrinks,the luxuriousperceptionof this corner is fluent
as advancing towards the top floor, held by the presence of top clothing and fragrance brands, as well as the lighting,
level of soundandvisual cues that, together with the proximity of products and presence of a better quality customer
service create anexclusive atmosphere(Turley,L.2000). The social surroundings also contribute to this, as most people
are from a higher social class (Wozniak H, 2013)
Focusing now on a single retailer, I chose to take Superdry as an
example. With a good design from the outside, large windows, wide
entrance relatively low lighting, with spots on the products and loud
house/electronic music coming out the shop, it gives the impression of a
quality shop. The display of the clothes and interior design also affect the
perceptionof the customer,givinghimconfidence in touching the products
and walkingaroundthe shop,asthe clothes’proximityallowsthis.According
to Seth,M. (1998) it ishighlyimportantforthe productsto be well organized
in categories, and Superdry does this very efficiently, also by the type of
clothingandthe qualityof products,mosthighqualityproductsbeingplaced
on the central area. The presence of an online platform that allows the customers to buy from home also affects their
perception in a positive way, making the brand look trustworthy and valuable (Jiang, L. 2013). On the top of all these,
the service received in store, from welcoming to supporting staff and positive attitude of the cashiers complete the
brand fluency and reinforce the good perception formed by the customers (Kenneth, T. 1993)
Concluding, it can be stated that, indeed, shopping centers do make a lot of use of perception influencing
techniques, and due to factors such as proximity of shops, positioning and events they become more attractive to
customers.Combinedsensesalsoinfluence customerbehavior, so, in many cases the more complete the experience a
customer is exposed to, the more likely it is for him to change his behavior.
Portfolio task 9
Social Marketing…for sustainable change
“Born” in 1970, social marketingisdefinedbyKotlerandAndreasenas ‘differing from other areas of marketing
only with respect to the objectives of the marketer and his or her organization. ‘Social marketing seeks to influence
social behavior not to benefit the marketer, but to benefit the target audience and the general society’ (social-
marketing.com). Thisdefinitionhassufferedmore changesandinterpretations as time passed, due to the growing and
expandingof the marketingfield (Andreasen, A. 1994). In the fast-moving world we live in, it is impossible for a social
marketing campaign to be successful unless a broad understanding of the target customers in completed, as well as
keeping the message simple and focused on the target segments. (www.dmnews.com).
Amongdifferentsocial marketingcampaignsrunbythe governmentinthe pastyears, like anti-smoking, mental
health, anti-racism and so on (www.thensmc.com), a big emphasize has been put worldwide on household waste
recycling. Inthe UK, the main campaign run by the government consists of “Waste prevention Programme”, as well as
food prevention and improving the quality of recycled material or encouraging companies to recycle more. As the
problemincreasesmore and more due to the high
degree of consumerism in the western world
(Miles, S. 2006), and recycling campaigns create a
trendinthe consumers’ behavior in this direction,
big companies such as H&M start take advantage
of this, creating their own campaigns on
encouraging this way of thinking, adding value to
their brand by using this to raise their Corporate
Responsibility (www.marketingweek.co.uk). Even
thoughinthe case of H&M theydonot pointat the
consumerism, they encourage people to stop
throwingawayoldclothes,andinstead bring them
to their shops. They also use recyclable materials
for packaging and bio cotton (www.HM.com).
However,recyclingisnotasimple process.
Aside fromthe factthat people have tobe educatedinthisdirection,theyalso have to learn how to separate products,
hand them in, and on the other hand, the recycled products have to be marketed in such a way that people buy them
over the new ones (Garechana, G. 2014). From an Elaboration Likelihood model, the recycling behavior needs time to
establish within the community, and need a high involvement from the customers, therefore the campaigns and ads
become more effective if theygoonthe Central Route,aslearning processes have to be pursued (Lecture Slides, week
9). Even though the rational arguments for it are strong, not having a personal tangible
outcome from adopting this
behavior, a customer needs
to be touched also
emotionally.InAmerica,the
“Keep America Beautiful”
campaign had a strong
impact by going on the emotional route with ads such as
the ones from the “I Want to be a
(bench/stadium/bicycle)”series,bycombining appeals of
nature, care or belonging(www.adweek.com). In the UK,
more creative campaigns took place over the years, such
as “We need your bottles” or “Break the Bag Habit”.
(www.pinterest.com). These alsoappeal tothe social normsandpeerpressure,whichprovedtobe efficient in changing
customers’ behaviors. (www.sas.org.uk/). Conventional media also often gets involved with the issue, many popular
magazinesandnewspaperssuch as The Guardian (2014) trying to re-touch society on the rational level, showing them
howtheycan benefitfromthingssuchas ‘old curtains’ by stuffing them into the walls instead of throwing them away,
and improve thte insulation of their homes, saving energy and therefore money.
Beingsucha large scale project,waste recyclingcampaignsneed a very strong emotional appeal on the society
as to have an effect. The “eating bio” trend and health improvement campaigns in general had a strong influence on
people adopting the recycling habit as well, because the values promoted are in some cases similar, as well as they
match one another.Also,sustainable energyuse campaignsand carbon/water footprint reduction advertisments keep
societyengagedwiththe ecological issueourplanetfaces,sothe message isbeingrememberedveryoften, beingeasier
to asimilate (www.carbonfootprint.com).
Viral campaigns also play a very important role in social marketing, as they approach the younger audience,
whichismore likelytochange attitudes and behaviors(research.allacademic.com). Big brands such as Coca Cola (Hand
Revolt) andVolkswagen(Bottle BankArcade Machine) gotinvolvedwiththe recycling issue, creating their own ads and
campaigns to influence society in this direction (www.sustaininteract.com ). Even though in general the emotional
message iscomunicatedthroughoutappealssuchas guilt or social pressure, accompanied by sad, low-tempo music (“I
want to be a” ads series), fun and joy can be just as effective, as well as high-tempo music (Volkswagen Bottle Bank
Arcade Machine Ad).
As a conclusion,itcanbe statedthatsocial marketing is everywhere in the society nowadays. Even though it is
not meantto raise profits,ithasa big importance withinthe societyasitismeantto raise the quality of life for citize ns.
It ishighlyimpotanttounderstandthe targetmarket,asmost times the “product” is an intangible, being a behavior, in
order for a campaign to be successful, and it can be argued with the examples given above that the help of the big
companies is of great importance for the gouvernment as to influence the population efficiently, even though
corporationsuse thisnotnecessarilyforthe goodof the societybutfor raising their Corporate Resposibility profile and
take advantage of modern trends in the society, such as recycling for gaining customers.
Portfolio task 10
Mitigating the purchase risk
One of the mostimportantfactorsin takingthe buyingdecision is, for a customer, the perceived purchase risk.
This can be assessed from at least three perspectives – economic, functional and psychological
(www.theautodealer.com), but this can be extended to dividing it into a total of six: functional, physical, social,
psychological, financial and time (http://www.hort.uconn.edu/). In business, a definition given by the
BusinessDictionary.com of risk is ‘A probability or threat of damage, injury, liability, loss, or any other negative
occurrence that iscausedby external orinternal vulnerabilities,andthatmay be avoidedthroughpreemptiveaction.’ In
the case of a customer, this can be translated into him being worried about the value he will get for the money he
spends on a product.
Apple isthe leaderinthe electronicdevicesindustry(http://financials.morningstar.com).Taking the example of
mobile phones,itis the first company to bring the advanced mobile web navigation on the market, with the launch of
the first iPhone (crunchbase.com). The company’s main
value promotedisinnovation,followed by simplicity of use
for its products (Apple.com; retailindustry.about.com;).
Havingabove-average priced products, it is still the market
leader for mobile phones and has an important market
share in the PC and Gadgets industry. What made them
successful, though, is not necessary the practical features
that theirdeviceshave butratherthe culture theymanaged
to create aroundthe brand,engagingemotionallywiththeir
customers (autodealermonthly.com).Inthe materialismera
that we live in,teenagersandyoungpeople ingeneral tend
to be more easily persuaded by ads that run on an
emotional ratherthanrational level, and Apple anticipated
thisverywell inthe 90’s, whenthey started to re-gain their
popularity,by changing their slogan to “Think Differently”,
and a tribute “To the Crazy Ones” (Forbes.com). From here
on,the perceptionuponthe brandstartedtoshiftto a brand committedtoinnovation, that puts its customers first and
that encourages the free spirit and creativity (www.cnet.com/). It ranked 11th
in the top 100 most powerful brands in
2012 (www.forbes.com), showcasing its extremely quick ascension.
One thingthat helpedthe brandmitigate the customerpurchase riskis,therefore,functionality. An apple lover
will alwaysknowthathe getsthe product withthe latestfeaturesonthe market.Furthermore,the usabilityof using the
device that the brand guarantees by its past products is another thing that incentivizes customers to go for it.
Consideringthe targetmarket, which is mostly made up of young people, what gets them to aspire and generates the
gap betweentheiractual self and the desired self is being part of the “Apple Community”, sharing the values that the
brand carries. Another part of the Apple marketing that works incredibly well is the access to testing the products
throughApple Store,showcasingonce againhow itputsitscustomersfirst,reassuringitshighlevel of attention to their
needs(www.cnet.com).If potentialcustomerswanttotesta product,theycan easilygoto an Apple store andfind there
all the information they need. What’s more, there they also get to experience the contact with the brand through its
representatives –people –that enhance the trust in the brand, being well prepared to answer any question, and build
the relationship. This also mitigates the risk, and on a subconscious level transmit the message that if, after the
purchase,there will be anyproblemwiththe device,helpwill alwaysbe athand.This helpsthe decision-makingprocess,
speedingitup.Afterthe problemisbeingidentified,asthe dissonance betweenthe actual anddesiredself appears, the
searchfor informationandrelationshipbuildingwiththe brandisbeingspeededup. This obviously helps in making the
buyingdecisionfavorable forApple,and the post-purchaseevaluationusuallyismade more subjective if the experience
that the customer had so far has been a good one and he is satisfied.
Being a relatively high-involvement purchase
decision, the customer will most times take the central
route to forming/changing the attitude towards the brand
(lecture slides,week9).However,the message transmitted
by the ads is simple to understand and process, and the
brand values are fluent throughout all its products’
campaigns, so the exposure to the message is relatively
high.
Going further with analyzing the purchase risk
aspects, it was already showed how the brand
covers the functionality gap. In terms of
economics, other retailers that distribute
Apple iPhones have already seen
how wanted is the product on the
market, so they make use of new
releases in order by creating special
offers and bundles, for increasing
their sales. As for customers it is a way
of satisfying their wants – in this case
obtaining the phone, it can be stated that it
is a win-win situation. From a social point of view,
it has already been discussed how the peer
influence plays a critical role in adopting the brand.
Either the product is recommended by a primary
reference group member such as a friend, or the
pressure comes from a secondary group influence
(most people in the high school have an iPhone), society
has an impact on the buying decision, as well as mitigates the perceived purchase risk – if everybody
is happy and has it, it must be good.
Concluding, it can be argued that minimizing the risk of a purchase is a strong aspect that any brand should
focuson whenmarketingitsproduct.Apple,bycreatingaculture aroundthe brandand efficientlyspottingthe needs of
its customers managed to impressively ascend and become a market leader in its industry. Positive comments in the
press, together with customers’ satisfaction continuously reassure the potential customers about the brand, while it
sticks to the values it promotes – innovation, simplicity and elegance.
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Final Project

  • 1. Portfolio task 4 Self Gibson vs. PRS Knowing the brands As one of the oldestmusical instrumentsmanufacturers, Gibson launched the first electric guitar in the 1930’s (Gibson.com). Starting the 70’s, its main marketing was being done by celebrity endorsers such as their most popular figures Slash(Guns’nRoses) orAngusYoung(AC/DC),although print ads have always been around music shops and effective spots. As time passed, through its endorsers and advertising campaigns, Gibson managed to position itself among the top quality guitar manufacturers, reinforcing values such as traditionalism,qualityandnatural sound, all these backed up by the strong brand image createdthroughthe worldwide well-known endorsers (Juszkiewicz H, 2012) Moreover, the post-service and support offered by the brand towards its customers, helping them with their further evolution in their music career, made it be seen not only as a company but as a friend, by its users (Gibson.com),gettingthemtoaspire for the fame and fortune givenbya“Rock Star” life. Paul Reed Smith (PRS), on the other hand, is a relatively new competitor for Gibson, entering the guitar manufacturers market in the late 1980’s. With brand values such as high quality,anda fine combinationof traditional featureswithlatesthigh-tech elements, it aims to give each of its player best value for their money. (prsguitars.com) From the very beginning it was focused only on this category on musical instruments, unlike Gibson who switched from manufacturing mandolins, and even before launching, it targeted popular endorsers to raise awareness upon the brand, as Paul identified how important word-of-mouth and aspirational trust were in the industry (Smith P, 1992). Having Carlos Santana as their first endorser (prsguitars.com), from the very beginningthe printedadsforthe brand includedthis important figure. From here on, most of their prints and magazine inserts were accompanied by a popular endorser. Having the purpose to boost trust, credibility and power of the message (lecture slides, week 5),and get customers to aspire, this also demonstrated the rapidly growing interest in the brand showed by celebrities. However, PRS didn’t stop here. The modern world brought in more and more female guitarists, and the company was one of the first to use this as a way of both showcasing its openness to innovation and new trends, as well as approaching a new market segment. It quickly became a fierce competitor for the Gibson Les Paul category.
  • 2. Compare, contrast, choose Comparing the two brands, we can easily identify some differences. However, howdoesa customerchose which one suits them best? Purkey (1988) defined the Self- Concept as ‘the totality of a complex, organized and dynamic system of learned beliefs, attitudes and opinions that each person holds to be true about his or her personal existence’. Taking the Gibson example first, considering the values they promote we can say that a typical customer would be an individual for whom the tradition and longevity of the brand is of high importance, who values the support the brand gives throughout his journey of becomingamusicianverymuch,and aspires (ideal self) to the fame and recognition the Gibson Endorsers had during the 80’s-90’s. The campaigns the brand initiated throughoutitshistorywere mostlybasedon evidencing the gap between the actual self of a customer– suggestedasbeinga regular person,withnospecial recognition, and the respected, passionate musician, keen to following his/her objective that possessing the guitar could turn him/her into (behance.net, Gibson.com). All these suggestions about the brand somehow make customers feel like being a part of a group. Owning a Gibson guitar is, as Elliott A. (2007) suggests, a part of a symbolicinteractionism,beingalsoaresultof the customerbeingpart and entering contact with a certain group of people having similar interests,beliefsandvalues. Thisalsoappliestothe Paul Reed Smith case. Contrasting the two types of customers and relating them to the brands’images,whatcan be saidis that while aGibson loverseesas being more important to be associated with the long history of the brand and the models it imposed during its existence, as well as the good quality delivered, a PRS buyer is somebody who aspirestonew models,new trendsandinnovative technologies, aware of the fact that the times have changed and he can get a better value for the money if he decides to go with a more modern brand. The manufactureremphasizesthese things from the veryfirstcontact withthe guitar,havingas a distinctfeature the shapes used for the inlays – varying from birds flying, to bats, and even long complex shapes for the high-top models such as dragons. Huitt,W. (2011) cites FrankeninEducationalPsychology Interactive, saying that ‘the self-concept gives rise to possible
  • 3. selves, and it is possible selves that create the motivation for behavior’. It can therefore be argued that a customer choosing PRS aspires to becoming a significant part in the evolution of music, being seen as somebody creative that brings a plus to what has already been created. Modern and daring, instead of sticking to the tradition, heritage and recognition coming from a long-lasting brand, he would rather win it with his own powers. Trying to get an even higher share of the guitar market, PRS tried to configure new models of its products to match certainplayinghabitsof itscompetitor’s–Gibsoncustomers(leagle.com). However, this was the start of several disputesandlaw suitsbetweenthe twomanufacturers,asGibsonfeltPaul Reed Smith infringed its copyrights in terms of design. Nevertheless, this action reinforces the willingness of the brand to satisfy its customers’ needs and give a good alternative to the options they already have Concluding,itcanbe stated that on an emotional level it is highly important for a brand to deliver the product able to minimizethe gapcreatedbetweenthe actual self –whothe customerreallyis,andideal self –whothe customer wantsto be/wantstobe seen as, while also approaching his ought self – how he actually should be like. The purchase decision will be taken differently for each individual because of different external and internal factors, such as group pressure and need of belonging, personal experiences, values etc, and it is important to emphasize the brand’s core identity in the advertising campaign as to persuade customers, making them aware of the discrepancy between their actual state and their desired position both for themselves, and within the society.
  • 4. Portfolio task 5 Group Influences When talking about the buying decision making process there is no question that external factors play an important role in our perceptions and considerations. One of the most influential factors is the group pressuring. Willingnessof beingpartof a groupoftendetermineacustomerto change hisaspirationsandtherefore buyingbehavior as to meet the expectations of the group he wants to be part of – as Wilson R suggests in the Journal of Artificial SocietiesandSocial Simulation (2007).Witt,R (1986) alsotalksabout this influence, analyzing how its impact is greater for the low cost, non-durable items such as beer, cigarettes or deodorant. Takingthe example of beerconsuming,Witt,R(1972) alsopoints out how, because of the similarity among the brands,the Brand Choice Congruence becomes a very important additional factor in buying behavior – most times, an individualpart of a group will consume the same brand as the group, as to be alike. Analyzing several campaigns from beer manufacturers such as Carlsberg, Guiness, Budweisser or Heineken, we can draw a mind map of the values beer consumptionpromotes, among which: “True lad” – Guiness, “Long-lasting Friendship” – Budweisser, “Beerfriender” – Heineken,”Motivation and Team Building” - JWT, using beer as a means, “Friends Test” – Carlsberg. Because of these, people generally have a positive impression upon beer consumption, and often use it as a reason for meeting with friends – “Let’s go for a beer”. Motivation towards the buying decision in this case is,therefore,related not only to the taste of the beer but also being part of their group of friends. However, this thing changes with cultural factors such as religion that might affect the group pressure or inhibit the likability of one to purchase the product in a negative way. Takinga closerlookat the beercommercials,mostof themincorporate firstlythe friendshipvalue,andthe beer isconsumedamong the close ones – which are also the primary reference group. Following a study undertaken at the University of Iowa, Fitzgerald, J.(2002) points out the link between the level of closeness attributed to the reference drinkinggroup(close friends,colleaguesetc) andthe drinkingbehavior.Itcan therefore be arguedthatreferencegroups are highly influential in the alcohol consumption. Goingback to brand choice,beerssuchas Carlsberg and Heineken, for example, have similar target markets in the East Europeancountriessuchas Romania.Witt,R (1969). suggestin‘JMR, Journal of MarketingResearch’that in the case of a group, an important amount of the members chose consuming one of the brands due to one of the group members using it, so it is not only the other way around. Personal observation backed up these theories, as, after undertakingapersonal primaryresearchbasedonobservationintwolocationswhere beerwasconsumed,mostfriends groupsconsumedthe same beerbrand,and more than that,in one of the cases mostpeople inthe clubconsumed only one brand predominantly.Thiscanbe easilyrelatedtothe primaryandsecondarygroups’influence.I also analyzed this on my personal group of friends, and the conclusions matched. For the new consumers of beer, it is very likely to adopt the behavior being influenced by a close friend, and usuallytheytendtostickto the brand theyare firstlyintroducedto, which is normally the brand their friend consumes (UrbergK, 1997). It is alsolikelyforanindividual tochoose abrandfrom aspirational reasons,suchasaspiringtobe seen as part of a certaingroup of people –for example,Heineken is seen as a more luxurious brand, and its consumption in Beer Friendship Loyality Relaxation Fun SocialTeamwork Good Time Caring for others Acceptance
  • 5. publicplaceswouldsuggest certainthingsaboutaperson,as some would assume.(Moschis G, 1976) Continuing on this idea,itcan therefore be concludedthat asin the case of any other brand, its consumer takes with the physical product the whole package of valuesthatitpromotes. Inthe case of Carlsberg,forexample,thesewouldbe friendship,loyaltyor good quality. Concluding,we cansaythat group pressure andaspirationof beingpart of a group play a very important role in adoptingcertainhabits – inthiscase beer drinking, and further on choosing a brand. Even if a customer is usually loyal to a brand, he can easily change it if the social circumstances put a pressure on his decision (Witt R. 1970). The peer influenceincreaseswiththe degree of closeness in terms of the relationship, so the primary reference groups are the onesthat model the customerbehaviorthe strongest,being followed by secondary groups and other social norms and circumstances, as well as the available options for purchase.
  • 6. Portfolio Task 2 Perception ‘Perceptioninthe processof selecting, organizing and interpreting sensations into a meaningful whole. In the past,methodsof studyingstimuli andmeasuringresponsestothemwere restrictedtoexaminingthe fivesenses.Today, however,the view thatperceptionusesmerelysight,hearing,smell,taste andtouchtocomprehendthe environment is inadequate’ (Wozniak H, 2013, p. 75). What she also says is that perception is subjective and is very important to pay attentiontoall the circumstances in which we want to deliver our message or act on a consumer’s behavior. Shopping malls are a good way of analyzing how marketers try to influence perception by making use of different tools that stimulate one or a combination of the five senses. According to Dennis, C (2010) given the competition that exists among shopping centers, it is becoming more and more importantforthemto mix efficiently the factors that create atmosphere, as, citing Jugger (1999), 70% of the purchase decisionsare made in store and at the point of purchase. Taking the Birmingham City Center example, there are several shoppingcenters, among which Bullring, The Pavillion, Mailbox and Pallasades. As Bullring is the most popular and biggest one, the focus of this analysis will be mostly on it. Because of itsbig size andvarietyof retailers,itis important for it to be well organized, as well as to give an interactive andcomplex shopping experience as to keep the customers engaged. The use of latesttechnologysuchas LED lighting for ads, screens and interactive touch screens is also of critical importance, as customers tend to have increasing expectations on this in the past years (Spinner, J. 2011), and Bullring adapted well throughthe interactive store-locatorsand events points of information. Retail lighting also influences the customer perception so it is often different from high-top sections such as Selfridgestomore commonretailerssuchasSportsDirect (Spinner, J. 2011). However, it is important to consider the sustainability trend that increases in popularity nowadays, so natural lighting is an important element (Siakavellas, M. 2007), and Bullring evidences this through the big glass doors and partly transparent roof. Using the observation technique, it can be highlighted the fact that hear each of the shoppingcenter’sentry/existsthereisatleastone food place, varying from fast foods to dining places such as Del VillaggioorCafé Rouge,givingcustomersthe opportunityto have a meal either at the beginning or at the end of their shopping experience. They also contribute to it by arousing the smell sense, in the main area of the mall. Also, giventhe factthat the mainentrance it on the top floor, the main dining areas with places such as Pizza Hut or Jamie’s Italian are situated on the bottom floor, as to increase the likability of being the final destination of shoppers, after a longjourneythroughthe mall.Throughoutthe shopthere are several small food/drinkscourtsforgivingaquickbite and enriching the diversity. They also contribute to arousing the smell sense, as well as the visuals, most times food and drinks being displayed. As a secondary role of the shopping malls is recreation and entertainment (Dennis, C. 2010), Bullring often holds special events, that take place most times on the bottom floor. A reason for this can be that, followingwhathasbeensaidbefore thatthe mainentranceson the top floor, customers need to be kept engaged, not only by digital signage and food spots, but also by entertaining acts. These can take several forms, but most times are targetedtochildren,inthe formof mini football spotsorotheractivities(Disneyshopis also on the bottom floor so the likabilityof childrentobe presentthere isevenhigher,andthe presence of these spotsalsoincreases the traffic around the shop,as well as around SportsDirect.Chang,E. (2010) alsopointsout,by citing Porter (1997) how the functional attributes such as quality and availability of merchandise combines with intangibles such as music, smell etc in creating customer value for the shopping experience in the Chinese market, and relates it to the international trends. The Selfridges segment of the shopping center is also a very good example of howashoppingexperience canbe improvedbyprovidinga great variety of options. Hosting a food court at the bottom floor, with generally highqualityfoodanddrinks,the luxuriousperceptionof this corner is fluent
  • 7. as advancing towards the top floor, held by the presence of top clothing and fragrance brands, as well as the lighting, level of soundandvisual cues that, together with the proximity of products and presence of a better quality customer service create anexclusive atmosphere(Turley,L.2000). The social surroundings also contribute to this, as most people are from a higher social class (Wozniak H, 2013) Focusing now on a single retailer, I chose to take Superdry as an example. With a good design from the outside, large windows, wide entrance relatively low lighting, with spots on the products and loud house/electronic music coming out the shop, it gives the impression of a quality shop. The display of the clothes and interior design also affect the perceptionof the customer,givinghimconfidence in touching the products and walkingaroundthe shop,asthe clothes’proximityallowsthis.According to Seth,M. (1998) it ishighlyimportantforthe productsto be well organized in categories, and Superdry does this very efficiently, also by the type of clothingandthe qualityof products,mosthighqualityproductsbeingplaced on the central area. The presence of an online platform that allows the customers to buy from home also affects their perception in a positive way, making the brand look trustworthy and valuable (Jiang, L. 2013). On the top of all these, the service received in store, from welcoming to supporting staff and positive attitude of the cashiers complete the brand fluency and reinforce the good perception formed by the customers (Kenneth, T. 1993) Concluding, it can be stated that, indeed, shopping centers do make a lot of use of perception influencing techniques, and due to factors such as proximity of shops, positioning and events they become more attractive to customers.Combinedsensesalsoinfluence customerbehavior, so, in many cases the more complete the experience a customer is exposed to, the more likely it is for him to change his behavior.
  • 8. Portfolio task 9 Social Marketing…for sustainable change “Born” in 1970, social marketingisdefinedbyKotlerandAndreasenas ‘differing from other areas of marketing only with respect to the objectives of the marketer and his or her organization. ‘Social marketing seeks to influence social behavior not to benefit the marketer, but to benefit the target audience and the general society’ (social- marketing.com). Thisdefinitionhassufferedmore changesandinterpretations as time passed, due to the growing and expandingof the marketingfield (Andreasen, A. 1994). In the fast-moving world we live in, it is impossible for a social marketing campaign to be successful unless a broad understanding of the target customers in completed, as well as keeping the message simple and focused on the target segments. (www.dmnews.com). Amongdifferentsocial marketingcampaignsrunbythe governmentinthe pastyears, like anti-smoking, mental health, anti-racism and so on (www.thensmc.com), a big emphasize has been put worldwide on household waste recycling. Inthe UK, the main campaign run by the government consists of “Waste prevention Programme”, as well as food prevention and improving the quality of recycled material or encouraging companies to recycle more. As the problemincreasesmore and more due to the high degree of consumerism in the western world (Miles, S. 2006), and recycling campaigns create a trendinthe consumers’ behavior in this direction, big companies such as H&M start take advantage of this, creating their own campaigns on encouraging this way of thinking, adding value to their brand by using this to raise their Corporate Responsibility (www.marketingweek.co.uk). Even thoughinthe case of H&M theydonot pointat the consumerism, they encourage people to stop throwingawayoldclothes,andinstead bring them to their shops. They also use recyclable materials for packaging and bio cotton (www.HM.com). However,recyclingisnotasimple process. Aside fromthe factthat people have tobe educatedinthisdirection,theyalso have to learn how to separate products, hand them in, and on the other hand, the recycled products have to be marketed in such a way that people buy them over the new ones (Garechana, G. 2014). From an Elaboration Likelihood model, the recycling behavior needs time to establish within the community, and need a high involvement from the customers, therefore the campaigns and ads become more effective if theygoonthe Central Route,aslearning processes have to be pursued (Lecture Slides, week 9). Even though the rational arguments for it are strong, not having a personal tangible outcome from adopting this behavior, a customer needs to be touched also emotionally.InAmerica,the “Keep America Beautiful” campaign had a strong impact by going on the emotional route with ads such as the ones from the “I Want to be a (bench/stadium/bicycle)”series,bycombining appeals of nature, care or belonging(www.adweek.com). In the UK, more creative campaigns took place over the years, such as “We need your bottles” or “Break the Bag Habit”. (www.pinterest.com). These alsoappeal tothe social normsandpeerpressure,whichprovedtobe efficient in changing customers’ behaviors. (www.sas.org.uk/). Conventional media also often gets involved with the issue, many popular magazinesandnewspaperssuch as The Guardian (2014) trying to re-touch society on the rational level, showing them
  • 9. howtheycan benefitfromthingssuchas ‘old curtains’ by stuffing them into the walls instead of throwing them away, and improve thte insulation of their homes, saving energy and therefore money. Beingsucha large scale project,waste recyclingcampaignsneed a very strong emotional appeal on the society as to have an effect. The “eating bio” trend and health improvement campaigns in general had a strong influence on people adopting the recycling habit as well, because the values promoted are in some cases similar, as well as they match one another.Also,sustainable energyuse campaignsand carbon/water footprint reduction advertisments keep societyengagedwiththe ecological issueourplanetfaces,sothe message isbeingrememberedveryoften, beingeasier to asimilate (www.carbonfootprint.com). Viral campaigns also play a very important role in social marketing, as they approach the younger audience, whichismore likelytochange attitudes and behaviors(research.allacademic.com). Big brands such as Coca Cola (Hand Revolt) andVolkswagen(Bottle BankArcade Machine) gotinvolvedwiththe recycling issue, creating their own ads and campaigns to influence society in this direction (www.sustaininteract.com ). Even though in general the emotional message iscomunicatedthroughoutappealssuchas guilt or social pressure, accompanied by sad, low-tempo music (“I want to be a” ads series), fun and joy can be just as effective, as well as high-tempo music (Volkswagen Bottle Bank Arcade Machine Ad). As a conclusion,itcanbe statedthatsocial marketing is everywhere in the society nowadays. Even though it is not meantto raise profits,ithasa big importance withinthe societyasitismeantto raise the quality of life for citize ns. It ishighlyimpotanttounderstandthe targetmarket,asmost times the “product” is an intangible, being a behavior, in order for a campaign to be successful, and it can be argued with the examples given above that the help of the big companies is of great importance for the gouvernment as to influence the population efficiently, even though corporationsuse thisnotnecessarilyforthe goodof the societybutfor raising their Corporate Resposibility profile and take advantage of modern trends in the society, such as recycling for gaining customers.
  • 10. Portfolio task 10 Mitigating the purchase risk One of the mostimportantfactorsin takingthe buyingdecision is, for a customer, the perceived purchase risk. This can be assessed from at least three perspectives – economic, functional and psychological (www.theautodealer.com), but this can be extended to dividing it into a total of six: functional, physical, social, psychological, financial and time (http://www.hort.uconn.edu/). In business, a definition given by the BusinessDictionary.com of risk is ‘A probability or threat of damage, injury, liability, loss, or any other negative occurrence that iscausedby external orinternal vulnerabilities,andthatmay be avoidedthroughpreemptiveaction.’ In the case of a customer, this can be translated into him being worried about the value he will get for the money he spends on a product. Apple isthe leaderinthe electronicdevicesindustry(http://financials.morningstar.com).Taking the example of mobile phones,itis the first company to bring the advanced mobile web navigation on the market, with the launch of the first iPhone (crunchbase.com). The company’s main value promotedisinnovation,followed by simplicity of use for its products (Apple.com; retailindustry.about.com;). Havingabove-average priced products, it is still the market leader for mobile phones and has an important market share in the PC and Gadgets industry. What made them successful, though, is not necessary the practical features that theirdeviceshave butratherthe culture theymanaged to create aroundthe brand,engagingemotionallywiththeir customers (autodealermonthly.com).Inthe materialismera that we live in,teenagersandyoungpeople ingeneral tend to be more easily persuaded by ads that run on an emotional ratherthanrational level, and Apple anticipated thisverywell inthe 90’s, whenthey started to re-gain their popularity,by changing their slogan to “Think Differently”, and a tribute “To the Crazy Ones” (Forbes.com). From here on,the perceptionuponthe brandstartedtoshiftto a brand committedtoinnovation, that puts its customers first and that encourages the free spirit and creativity (www.cnet.com/). It ranked 11th in the top 100 most powerful brands in 2012 (www.forbes.com), showcasing its extremely quick ascension. One thingthat helpedthe brandmitigate the customerpurchase riskis,therefore,functionality. An apple lover will alwaysknowthathe getsthe product withthe latestfeaturesonthe market.Furthermore,the usabilityof using the device that the brand guarantees by its past products is another thing that incentivizes customers to go for it. Consideringthe targetmarket, which is mostly made up of young people, what gets them to aspire and generates the gap betweentheiractual self and the desired self is being part of the “Apple Community”, sharing the values that the brand carries. Another part of the Apple marketing that works incredibly well is the access to testing the products throughApple Store,showcasingonce againhow itputsitscustomersfirst,reassuringitshighlevel of attention to their needs(www.cnet.com).If potentialcustomerswanttotesta product,theycan easilygoto an Apple store andfind there all the information they need. What’s more, there they also get to experience the contact with the brand through its representatives –people –that enhance the trust in the brand, being well prepared to answer any question, and build the relationship. This also mitigates the risk, and on a subconscious level transmit the message that if, after the purchase,there will be anyproblemwiththe device,helpwill alwaysbe athand.This helpsthe decision-makingprocess, speedingitup.Afterthe problemisbeingidentified,asthe dissonance betweenthe actual anddesiredself appears, the searchfor informationandrelationshipbuildingwiththe brandisbeingspeededup. This obviously helps in making the buyingdecisionfavorable forApple,and the post-purchaseevaluationusuallyismade more subjective if the experience that the customer had so far has been a good one and he is satisfied.
  • 11. Being a relatively high-involvement purchase decision, the customer will most times take the central route to forming/changing the attitude towards the brand (lecture slides,week9).However,the message transmitted by the ads is simple to understand and process, and the brand values are fluent throughout all its products’ campaigns, so the exposure to the message is relatively high. Going further with analyzing the purchase risk aspects, it was already showed how the brand covers the functionality gap. In terms of economics, other retailers that distribute Apple iPhones have already seen how wanted is the product on the market, so they make use of new releases in order by creating special offers and bundles, for increasing their sales. As for customers it is a way of satisfying their wants – in this case obtaining the phone, it can be stated that it is a win-win situation. From a social point of view, it has already been discussed how the peer influence plays a critical role in adopting the brand. Either the product is recommended by a primary reference group member such as a friend, or the pressure comes from a secondary group influence (most people in the high school have an iPhone), society has an impact on the buying decision, as well as mitigates the perceived purchase risk – if everybody is happy and has it, it must be good. Concluding, it can be argued that minimizing the risk of a purchase is a strong aspect that any brand should focuson whenmarketingitsproduct.Apple,bycreatingaculture aroundthe brandand efficientlyspottingthe needs of its customers managed to impressively ascend and become a market leader in its industry. Positive comments in the press, together with customers’ satisfaction continuously reassure the potential customers about the brand, while it sticks to the values it promotes – innovation, simplicity and elegance.
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