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Session 10 Social and consumer trends and their impact on marketing…
Session 10 Social and consumer trends and their impact on marketing practice
this session:
neuromarketing
artificial intelligence
blockchain
brand purpose and brand activism
immersive customer experiences.
Responding to trends: a cautionary tale
Gillette advert keeping up to date with social trends
Marketing intelligence
Information
combination of data points to provide practical insight that can help answer a question.
Data
facts and statistics about the marketing environment
Market intelligence
the use of information to enable the marketer to make decisions with confidence.
2.1. Big data
availability of large volumes of data on a wide variety of matters
algorithms
to produce a desired output. look for
patterns in the data.
2.2. Working with big data
Sources of data
supra-national organisations (e.g. the European Union, the United Nations,
governments (e.g. census data,
professional or trade bodies (e.g. the British Chamber of Commerce, CIM
syndicated industry or consumer reports (e.g. Mintel, Passport).
The risks of working with data
an
over-reliance on readily available data
, which can lead to decisions based on data that are easy to access rather than interrogating the problem holistically (e.g. focusing on Google Analytics advertising data to explore low sales growth when the real problem may be in product design or distribution)
not knowing the source
of the data or how they were collected, which will raise questions over how much confidence you can put in the analysis
having
out-of-date data
that may not provide a relevant understanding or that fail to account for related recent events
having
too much data,
which can slow down decision-making or potentially confuse the analysis
having
poorly formatted data
or data containing errors, which can require significant effort and resources to rectify
having
incomplete data
that provide an unreliable picture of the situation.
Errors
in data serious ramifications for an organisation, generating
mistrust
, harming credibility,
The marketing environment
Organisations in a stable environment can become lulled into ‘
catatonic complacency
’ (Bigley, 2018, p. 4)
fail to observe (or prepare for) change taking place.
‘frame of reference’,
a set of assumptions about what drives their market,
trends
direct
influence on the organisation.
indirect
influence
3.1. Analysing the environment
STEEPLE analysis.
3.2. The marketing system
Figure 10.5: The marketing system, link between STEEPLE & Product, price and Promotion
At the centre of the diagram is the network of relationships connecting elements of the marketing offer (product, price and promotions), the supply and distribution channels, including the intermediaries, and the market (consisting of customers and competitors). This is the marketing system.
dynamic, interacting within themselves and also interacting with the marketing system.
Horizon scanning
Horizon scanning looks to the
future
with a view to supporting the organisation to
reshape the market
or its operating environment.
anticipate trends, and utilise these insights
to steer the direction of the organisation accordingly, then it is more likely to be successful (Swoboda and Olejnik, 2016).
4.1. Agenda setters
environmental scanning needs to identify the key market actors who have agendas to reshape a market (Cahill, 2020).
agenda-setters who work in collaboration with other actors and associated networks to bring about change
geeks, leaders etc - steve jobs apple
4.2. Success–threat matrices
SWOT
analysis identifies the strengths and weaknesses of an organisation by assessing them against potential opportunities and threats in the external environment.
For each event, an evaluation is made on:
the probability of success for an opportunity
the probability of the occurrence of a threat
the impact on the organisation.
SUCCESS or THREAT Matrix
eg earth rising temp global warming threat
Contemporary issues in marketing practice
Subsections to follow
subsections that follow, you will explore the following contemporary issues:
neuromarketing
artificial intelligence
blockchain and fusion marketing
brand purpose and brand activism
immersive customer experiences.
5.1. Neuromarketing
many influences on our decisionsnot consciously be aware of them all. Some of these influences can be shaped by the marketer to drive consumers’ behaviour to their preferred selection. Whether it is through the shade of blue on a social media banner, the aromas of fresh bread piped into supermarkets, carefully curated playlists in a restaurant, or the repetitive jingles in advertising, a consumer’s subconscious is being stimulated to influence their choices.
5.2. Artificial intelligence
Streams of data and the search for patterns of behaviour.
Data from social media
marketers are increasingly using algorithms and artificial intelligence (AI) as tools to discover and utilise insights that can help shape customer behaviour.
Deep learning and AI
AI is associated with the ability of a computer to learn, plan and problem solve ‘autonomously’ (De Bruyn et al., 2020)
loyalty card data
however, only causal relationships derived from data; computers are not able to apply ‘common sense’ or appraise ‘emotional value’ to the data.
Generative AI tools such as ChatGPT
5.3. Blockchain
Blockchain is a peer-to-peer distributed ledger system.
blockchain technology was Bitcoin, which is a
cryptocurrency
.
Provenance
Food quality and concerns over the provenance of food has become an important issue amongst consumer movements.
where does food come from? which ocuntry
"the place of
origin
or earliest known history of something." google
Trust, security & loyalty
intermediaries to reach their customers; these might be brokers, internet platform providers, aggregators, credit providers, or influencers.
add a cost to the customer and can potentially become powerful third parties that block or hinder brand and customer relationships.
hacking or even accusations that they don’t share all the data the customer provides.
(Rejeb, 2020) A loyalty system built on
blockchain
architecture could provide a number of
benefits
for:
the brand owners
intermediaries and supply chain members which are not performing could be removed, co closer to cust
the customer
more privacy of their personal data.
the brand community
sharing of verified reviews, customer-tailored promotions and just in time ordering.
5.4. Brand purpose and brand activism
Connecting the organisation’s purpose with
socially desirable objectives, or brand activism,
is seen as a means for an organisation to enhance the financial performance of the company. generate a meaningful connection with customers and other stakeholders (Deloitte, 2020).
Striving for authenticity
Marketing and sales have long been viewed with some cynicism (Bastos and Levy, 2012).
Authenticity here is perceived to occur as a process of creation, craft and production of an original object.
two forms of authenticity:
indexical authenticity
refers to the genuine article, connecting an accepted fact, space and time (Grayson and Martinec, 2004).
iconic authenticity
is where authenticity is used to refer to an object or experience which accurately resembles an original.
eg thai restaurant in german comes close to orginal
patagonia - ethical sustainable brands
Brand purpose and authenticity
conceive authenticity as knowing and being true to oneself
an outward presentation by the organisation
e.g. body shop getting taking over by Loreal had bad impact
Protecting authenticity
takes time to develop
Novice brands are advised to pursue a germination strategy, which enables them to extol their passion for the products they produce and the values they subscribe to.
5.5. Immersive customer experiences
Bernd Schmitt’s Experiential marketing in 1999
Apple store - test products
Immersive technologies
Virtual reality (VR)
individual is placed ‘in’ the digital world
Augmented reality (AR),
inserts digital content into the world of the individual
Mixed reality (MR),
where digital content interacts with real-world objects
brands can stimulate the senses by presenting new digital environments or enhancing physical ones with a digital overlay.