Dear Sir could you provide answers for few of the questions 1. Name three products that are culturally unacceptable. What marketing strategies would use to overcome their cultural resistance? 2. Illustrate with suitable example about various sampling techniques used inmarketing research. Suggest a suitable sampling plan to collect information from the students of a university regarding the recreation facility available. 3. Critically examine the globe – hex strategies for the Indian government. 4. Comment on this statement. “Often neither the least expensive strategy nor the most expensive may be the most productive strategy”. Many thanks for you inputs Regards Girish.H
ANSWER: 1.Name three products that are culturally unacceptable. What marketing strategies would use to overcome their cultural resistance? Socially unacceptable products were defined as those products(and
services) that despite consumer satisfaction are considered by large portions of society to be unacceptable because of the potential and/or actual harm to individuals and/or society.
Examples include cigarettes, alcoholic beverages, gaming, violent video games, pornography and firearms. In social marketing terms these are ‘pleasing’
products, that is, they give short run pleasure but cause long run harm Therefore, these companies are profitable and their consumers
are satisfied with the products. However, large sections of the community believe these products to be harmful and expect such companies to become more 'socially responsible.' This poses a dilemma for such companies - how can they become more socially responsible without negatively affecting their relationship with their consumers and stockholders? Yet if they don't take up the challenge of social responsibility then they can expect greater
government interference and regulation in their industries. This paper explores this dilemma in relation to institutional legitimacy and how governments and social marketers can leverage these companies' desire for institutional legitimacy
Concerns in Relation to Socially Unacceptable Products
Concerns by companies marketing socially unacceptable products include legitimacy, legal problems, rites of passage and paranoia(Davidson(2003). In relation to legitimacy, socially unacceptable products have clearly lost some degree of legitimacy .
Legitimacy is defined as 'a generalised perception or assumption
that the actions of an entity are desirable, proper or appropriate within a socially constructed system of norms, values, beliefs and definitions.' The most telling sign of loss of legitimacy is that socially unacceptable product categories are taxed(a ‘sin’ tax). Another sign is that other businesses try to distance themselves from businesses producing socially unacceptable products. Davidson cites the case of Kimberly-Clark shareholders who did not want the
company to supply paper to cigarette manufacturers .
Legal problems arise from the addictive nature of socially unacceptable products. Of the products , cigarettes are the most addictive since they are
physically addictive. Alcoholic beverages are perhaps the next most addictive(physically and
psychologically) due to ready access to the products. Other socially unacceptable products are psychologically addictive. Gambling, or ‘gaming’ as it is now known to reduce connotations with the concept of gambling and to imply that gaming is something different and more about
‘games’, is addictive to susceptible people and causes harm due to social disruption and criminal activities. Violent video games and pornography are perhaps on an equal level in terms of addictive qualities. Lastly, fast food hamburgers have been in the spotlight as being possibly chemically addictive due to changes in the brain chemistry, although the addictive
properties of fast foods have yet to be proven . Since socially
unacceptable products are addictive, companies involved with socially unacceptable products
are very profitable).
Socially unacceptable products, with the possible exception of fast food hamburgers, are also associated with the rite of passage from adolescence to adulthood. Therefore, producers of these products promote them in this way. They are communicated as being exciting because
sampling such products means that the young consumer has joined the adult world, something they are keen to do. Of course, most teenagers do not wait to become adults before trying these products. Company sponsored campaigns to encourage young adults not to smoke
appear to have the opposite effect, since the message is that when you are old enough you can make the ‘choice’ of smoking. Alcohol advertising is geared towards acceptance of alcohol
consumption as a demonstration of good old fashioned ‘mateship’ which young males are
culturally expected to emulate. ‘Don’t drink and drive’ emphasises not driving rather than not
drinking, despite the fact that the two usually go hand in hand with young males.
To counteract the paranoia that companies producing socially unacceptable products
experience as a result of community criticism, and sometimes anger, they often engage in
programs to show how socially responsible they are. McDonalds contributes to the local community and has now developed a healthy choices menu which few enjoy. This is demonstrated by the results of a New Zealand marketing communication campaign to
promote the healthy choices menu. Although there was a 12 percent increase in sales during the campaign, only 40 percent came from the two new menu items of Salads Plus and HeaLTHY Meal Choices. The remaining increase was from the consumption of the McDonalds
‘unhealthy choices’ menu concluded that people felt more comfortable eating the traditional menu items because the
brand had been repositioned as somewhat healthy.
A dilemma exists for companies providing socially unacceptable products since although greater social responsibility implies greater legitimacy and hence less government
intervention and regulation, socially responsible behaviour is logically incompatible with the wants of two major stakeholder groups - consumers who want greater access to the products
and guilt free enjoyment - and stockholders who are interested in more sales leading to bigger profits. Therefore, governments and social marketers should do more to leverage this need for legitimacy
Strategic Legitimacy for Providers of Socially Unacceptable Products
three forms of institutional legitimacy; moral legitimacy,
cognitive legitimacy and strategic legitimacy. The form of legitimacy which characterises of
providers of socially unacceptable products is strategic legitimacy, which is '…sought
outwardly by the organization as an appeal to key constituents', and '…is a resource to be
extracted from society according to a utilitarian calculus of whether the costs and benefits of
legitimacy are necessary to achieve the ends of continued organizational activity'
). In other words, legitimacy is a strategy for providers of socially
unacceptable products to continue their activities without further interference of governments
and/or increased pressure from community groups.
Ironically, because companies involved in socially unacceptable products are so profitable,
they have ample financial resources available to demonstrate socially responsible behaviour.
However these companies tend to steer clear of corporate social responsibility activities
designed to solve the problems that the products create. For example, New Belgium Brewing Company focuses on environmental issues The Gambling Community Benefit Fund(resourced from
taxes on casinos) distributes grants to assist not-for-profit groups and volunteer-based
organisations around the State. 'Since 1994, the fund has distributed almost $308 million to
28,985 projects. With this support, local organisations have produced visible social and
economic benefits for their communities' British American Tobacco runs ‘responsible
marketing’ campaigns to tell children that smoking is an adult custom, making smoking more
attractive to children(
Most providers of socially unacceptable products have a portion of their websites devoted to
reports of their corporate sustainability. The Altria Group Inc.(formerly Phillip Morris)
portion of the website dedicated to Corporate Social Responsibility states:
“We’ve been living with the consequences of losing the public’s trust for some time now.
And as we work to rebuild that trust, we’ve learned tough lessons about the crucial line that
separates what’s legal –and society’s sense of what’s right.'
This eloquent ‘doublespeak’(Lutz 1987) demonstrates that the company is only too aware of
how important strategic legitimacy is to their business because they actually write about the
line between the legal and the legitimate. Another example is the Fosters ‘enjoy responsibly’
slogan().
The Responses of Governments to Socially Unacceptable Products
Social marketing programs which relate to socially unacceptable products include education,
fear advertising and intervention programs in an attempt to limit the consumption of socially
unacceptable products. For example, promotion campaigns in Queensland include the
‘gamble responsibly’ campaign, the ‘healthy eating’ campaign, and ‘drink smart’. The
Australia-wide QUIT program for smoking cessation is well known.
While governments conduct and/or assist in sponsoring campaigns to reduce consumption of
socially unacceptable products, they also profit from the companies that produce them in the
form of revenue derived from taxes on gambling and excise on alcohol and cigarettes. For
example, '…in the 12 months to January 2008, total losses to gaming machines in Queensland
reached $1.769 billion – nearly $5 million a day – while the number of pokies grew by more
than 500 to nearly 42,000. The spin-off for the Government is an expected $557 million in
pokie taxes and levies this financial year '(The Courier Mail, March 13, 2008).
However, it is easily argued that making socially unacceptable products illegal leads to other
social harms such as corruption in government agencies such as the police force, and black
markets. Therefore intervention by governments, in the form of regulations, taxation and
excise, seems like the lesser of two evils. This gives providers of socially unacceptable
products leverage in terms of their ability to project a socially responsible image. In fact it is
the use of legitimacy as '…a retrospective process in which managers purposely manipulate
their own goals to simply give the appearance of closer alignment to the current values and
interests of society(
Despite these efforts of various sectors within governments(Departments of Health for
example) the overall approach of politicians is ambivalent. Businesses providing socially
unacceptable products can be generous contributors to political parties, they have strong
pressure groups, and in many cases their CEOs have a prominent place in the business world.
Australasian Associated Brewers(a body which covers Australia and New Zealand) describes
itself as 'very policy focused, representing manufacturing brewers in legislative and regulatory
affairs and is supported in that work by an active membership of major brewers in both
countries.' On their website(www.aab.org.au/site/index.php) they refer to their social
responsibility efforts in relation to three areas; health, education and advertising. In terms of
advertising the body proudly promotes its involvement in the Alcohol Beverage Advertising
Code. However further investigation of the actual complaints dealt with by this code in 2006
ABAC Scheme Annual Report 2006) reveals that complaints about advertising of alcohol are
related to taste, decency and sexism rather than deeper issues such as promoting alcohol as a
rite of passage or an essential element of mateship. It could be said that companies producing
socially unacceptable products have managed their strategic legitimacy very well.
Legitimacy as Leverage
It appears that providers of socially unacceptable products have had a comfortable time in
relation to the way in which they use socially responsibility as a form of strategic legitimacy.
It is time to tip the balance to favour community concerns. I propose that governments use the
desired institutional legitimacy of these providers of socially unacceptable products as a
leveraging point.
To begin this process, government regulations on the promotion of socially unacceptable
products need to reflect changing societal values more accurately. Concerns about childhood
obesity should be mirrored in regulations concerning the advertising of fast and unhealthy
food. Advertising showing alcohol as a social lubricant and part of normal adult life needs to
be eliminated.
The type of government intervention that providers of socially unacceptable products(and
consumers and stockholders) fear most is reduced accessibility to the products because this
affects profits directly. In Norway, off sales of alcohol, that is, sales to customers outside of a
bar, are controlled by the state-run Vinmonopolets. More must be done by governments to
restrict supply, especially to the most vulnerable. Leaving this to providers of socially
unacceptable products does not work. For example, in Queensland, …'poker machine venues
have banned only 34 people from their gaming floors, while about 1100 problem gamblers
have banned themselves. This is a small proportion of the Government's own estimate of
14,000 problem gamblers in Queensland'(The Courier Mail, 10 June, 2008).
Conclusion
Companies providing socially unacceptable products have used greater social responsibility to
gain institutional legitimacy and therefore less government intervention and regulation, even
though socially responsible behaviour is logically incompatible with the wants of two major
stakeholder groups - consumers and stockholders. Form this position they have been very
good at using corporate social responsibility as a pathway to strategic institutional legitimacy
without doing any more than applying their ample profits to social responsibility efforts
unrelated to the problems their products cause, and including social responsibility as an issue
that they are 'dealing with', as they proudly announce on their websites. In this way they have
been able to avoid greater government intervention.
Governments have been slow to respond to community concerns regarding socially
unacceptable products. Much debate about the best way to resolve these concerns without
banning the products takes place and various strategies are tried, including social marketing
campaigns, with limited success. Self- regulation by the industry bodies that represent
providers of socially unacceptable products does not work as shown in this paper by examples
such as how few gamblers are banned from casinos by the management, how complaints
about the advertising of alcohol 'resolved' by industry bodies are about to trivial matters
unrelated to the real issues such as projecting alcohol as an essential component of mateship,
and how fast food providers use a 'healthy foods' menu to improve their brand image.
Governments have the option to leverage the desire of these companies for legitimacy. This
requires greater focus on strategies and laws that make providers of socially unacceptable
products socially accountable. 1
the reasons for multicultural advertising[
People tend to live within their cultural boundaries; i.e., people have their own cultural values and norms, which influence the way they think, feel and act. People in a particular ethnic group tend to share the language, customs, values, and social views, and these influence people’s cognitive(beliefs and motives), affective(emotion and attitude) and behavioral(purchase and consumption) processes. Based on this notion of “advertising as a mirror,” cultural values and standards are implanted in ads in such a way that consumers can “see themselves” and identify with the characters in the ads and feel affinity with the brands.
Value of Multicultural Marketing[
Multicultural marketing can have a positive influence on "mainstream" marketing in a variety of ways:
• Innovation: Charting a multicultural marketing strategy goes beyond identifying communications programs and promotions tailored to these markets. Multicultural marketing is an engine for innovation.
• Growth: If multicultural segments are growing at higher rates than the general population, it implies that they are also consuming most products at higher rates than the rest
• Globalization: Once a corporation acknowledges the value of multicultural marketing and begins investing in research and development of products and new marketing capabilities, these can be leveraged in the global environment.
Skills required[
It is suggested that the following skills are required in the field of multicultural marketing.[1]
1. To spot patterns that allow subcultures to be grouped together, so that a common marketing strategy may be extended to several subcultures in a group(“transcultural” marketing)
2. To develop a distinct marketing strategy for each subculture, if there is a significantly distinct cultural dimension that is important to the specific culture(multicultural marketing)
3. To further segment audiences in a subculture, if needed, in terms of cultural affinity, cultural identity or acculturation level(tactical adaptation within a subculture)
4. To develop parameters of culturally acceptable marketing stimuli; and
5. To establish a protocol for measuring cultural effectiveness of the stimuli.
This process is also known as ethnic marketing.[2]
Creating a multicultural marketing strategy[
Multicultural marketing focuses on customizing messaging and marketing channels for each target group, as opposed to simply translating a general message into different languages, or including token representation of different ethnic groups in imagery.[3]
Multicultural marketing is also complicated by the degree of mainstream cultural assimilation within ethnic groups themselves. Some segments, such as recent immigrants, may highly prefer use of their mother tongue, have limited proficiency in the local language, and be highly geographically concentrated. Other groups, such as second-generation individuals born in the new homeland, may be bicultural but have less proficiency in their parent's mother tongue and be more geographically dispersed.
An ethnic marketing strategy is developed around the values and attitudes distinctive to a particular ethnic group, and generally includes the following aspects:
• Identification and collaboration with community leaders
• The promotion of culture, symbols and celebrations important to a precise target
• Enhancing and focusing on the cultural uniqueness of ethnic group
1) Understand cultural differences in communication patterns, values, and behavior in the target ethnicities. 2) Assess cultural affinity among ethnic audiences. 3) Segment the ethnic audiences based on the level of cultural affinity, 4) Evaluate the need for adjustments in strategy and tactics. 5) Explore culturally acceptable/unacceptable, sensitive/insensitive advertising messages among the identified segments, 6) Develop the most effective and efficient advertising tactics targeted to the identified segments. 7) Evaluate the effectiveness of advertising campaigns among different target segments. ##########################################################
2. Illustrate with suitable example about various sampling techniques used in marketing research. Suggest a suitable sampling plan to collect information from the students of a university regarding the recreation facility available. A "sample" is a miniature representation of and selected from a larger group
or aggregate. In other words, the sample provides a specimen picture of a
larger whole. This larger whole is termed as the "population" or "universe".
In research, this term is used in a broader sense; it is a well defined group
that inay consist of individuals. objects, characteristics of hunlati beings, or
even the behaviour of inanimate objects, such as, the throw of a dice 01. the
tossing of a coin.
It It is not possible to include all units of'a populatio~li n a study in ordcs to
arrive at a valid conclusion. Moreover, the sizes of populations are often so
large that the study of all the units would not only be expensive but also
cumbersome and time consuming. For example, there are more than fifty
thousand undergraduate students in IGNOU. For our research, it is impossible
to collect information about the study habits of all these students. So, a
researcher will have to select a representative few, i.e., a sample from the
population of the survey. This process is kilowil as sampling.
Representativeness and Adequacy
Basically there are two requirements of a sample: it has to be
'representative' and adequate. If the nature of the population has to be
Methods of Sampling
interpreted from a sample, it is necessary for the sample to be truly
representative of the population. Moreover, it calls for drawing a
representative 'proportion' of the population. The population may contain a
finite number of members or units. Sometimes, the population may be
'infinite' as in the case of air pressure at various points in the atmosphere.
Therefore, a population has to be defined clearly so that there is no
ambiguity as to whether a given unit belongs to the'population or not.
Otherwise, a researcher will not know what units to consider for selecting a
sample. For example, we want to understand the study habits of distance
education students. Here, the population is not well defined : we are not told
about the universityluniversities that have to be included in this survey.
After all, there are more than fifty universities in India, that provide distance
education and there are about nine state open universities. Hence, to define
it accurately, we have to specify the group as, say, undergraduate students of
IGNOU.
The second issue related to the representation of a sample is'to decide about
the 'sampling frame', i.e., listing of all the units of the population in
separate categories. In the above study, there can be different sampling
I frames, such as malelfemale students, employed/unemployed students, etc.
The sampling frame should be complete, accurate and up-to-date, and must
1 be drawn before selecting the sample.
Thirdly, a saniple should be unbiased and objective. Ideally, it should
provide all information about the population from which it has been drawn.
Such a sample, based on the logic of induction, i.e., proceeding from the
particular to the general, falls within the range of random sampling errors.
This leads us to the results expressed in terms of "probability".
A sample should not only provide representativeness, but should also be
adequate enough to render stability to its characteristics. What, then, is the
ideal size of a sample? An adequate sample is the one that contains enough
cases to ensure reliable results. If the population under study is
homogeneous, a small sample is sufficient. However, a much larger sample
is necessary, if there is greater variability in the units of population. Thus
the procedure of determining the sample size varies with the nature of the
characteristics under study and their distribution in the population.
Moreover, the adequacy of a sample will depend on our knowledge of the
population as well as on the method used in drawing the sample. For .
example, if we try to find out the study habits of undergraduate students of
Lady Irwin College, Delhi, the population will obviously be more
homogeneous than the population of undergraduate students of IGNOU,
with respect to socio-economic status, employment of students or study
hours available. However, it should be understood that the adequate size of
the sample does not automatically ensure accuracy of results. METHODS OF SAMPLING
In the last section, we suggested that the method used for drawing a sample
is significant to arrive at dependable results or conclusions. With this fact in
view,'here in this section, we shall now talk about the various samp.l ing.
methods. Sampling methods can be broadly classified into two categories:
i) Probability Sampling
ii) Non-probability Sampling
I.3 .1 Probability Sampling
Probability sampling is based on random selection of units from a
population. In other words, the sampling process is not based on the
discretion of the researcher but is carried out in such a way that the
probability of every unit in the population of being included is the same.
For example, in the case of lottery, every individual has equal chance of
being selected. Some of the characteristics of a probability sample are :
i) each unit in the sample has some probability of entering the sample,
ii) weights appropriate to the probabilities are used in the analysis 01
the sample and
iii) the process of sampling is automatic in one or more steps of the
selection of units in the sample.
Probability sampling can be done tlwough different methods, each method
,having its own strengths and limitations. A brief account of these is give11
below:
Methods of sampling
Simple or unrestrieted random sampling
Simple random sampling is a method of selecting a sample from a finite
population in such a way that every unit of the population is given an equal
chance of being selected [see item(i) above]. In practice, you can draw a
simple random sample unit by unit through the following steps:
i) Define the population
ii) Make a list of all the units in the population and number them from
1 to n.
iii) Decide the size of the sample, or the number of units to be included
in the sample.
iv) Use either the 'lottery method' or 'random number tables' to pick
the units to be included in the sample.
I
For example, you may use the lottery method to draw a random sample by
using a set of 'n' tickets, with numbers ' 1 to n' if there are 'n' units in the
population. After shuffling the tickets thoroughly, the sample of a required
size, say x, is selected by picking the required x number of tickets. The
units which have the serial numbers occurring on these tickets will be
considered selected. The assumption underlying this method is that the
tickets are shuffled so that the population can be regarded as arranged
randomly. Similarly, while selecting 500 students from the total population
of 50000 undergraduate students of IGNOU, you will write the roll numbers
of all the students on small pieces of paper. Jumble the chits well and then
choose five hundred roll numbers. .
The best method af drawing a simple random sample is to use a table of
random numbers. These random number tables have been prepared. Fisher
and Yates(1967). After assigning consecutive numbers to the units of
population, the researcher starts at any point on the table of random numbers
and reads the consecutive numbers in any direction horizontally, vertically
or diagonally. If the read out number corresponds with the one written on
a unit card, then that unit is chosen for the sample. Let us, suppose that a sample of 5 study centers is to be selected at random
from a serially numbered population of 60 study centers. Using a part of a
table of random numbers reproduced here, five two digit numbers(as the
total population of study centers, 60, is a two digit figure) are selected from
Table 1.
Table 1: An Abbreviated Table of Random Numbers
If you start with the first row and the first column, 23 is the first two-digit
number, 05 is the next number and so on. Any point can be selected to start
with the random numbers for drawing the desired sample size. Suppose the
researcher selects column 4 from row 1, the number to start with 83. In this
way helshe can select first 5 numbers from this column starting with 83.
The sample, then, is as follows:
Now, in selecting the sample of 5 study centers, two numbers, 83 and 75,
need to be deleted as they are bigger than 60, the size of the population. The
processes of selection and deletion are stopped after the required number of
five units get selected.
The selected numbers are 53,40, 05, 33 and 01. If any number is repeated
in the table, it may be substituted by the next number from the same
column. The researcher will go on to the next column until a sample of the
desired size is obtained.
Methods of Sampling
Simple random sampling, ensures the best results. However, from a
practical point of view, a list of all the units of a population is not possible
to obtain. Even if it is possible, it may involve a very high cost which a
researcher or an organisation may not be able to afford. Therefore, simple
random sampling is difficult to realize. Also, in case of a heterogeneous
population, a simple random sample may not necessarily represent the
characteristics of the total population, even though all selected units
participate in the investigation. In the case of undergraduate students of the
Open University in your country(assuming you have one), students may be
employed in different sectors and categories of services/industries. Inspite of
your best efforts you may not be able to list all the categories of
employment. In such a case, simple random sampling cannot help in
representing all the categories under study.
Systematic sampling
Systematic sampling provides a more even spread of the sample over the
population list and leads to greater precision. The process involves the
following steps:
i) Make a list of the population units based on some order -
alphabetical, seniority, street number, house number or any such
factor.
ii) Determine the desired sampling fraction, say 50 out of 1000; and
also the number of the K'~un it. [K=N/n= 1000/50 = 201.
iii) Starting with a randomly chosen number between 1 and K, both
inclusive, select every K'~un it from the list. If in the above example
the randomly chosen number is 4, the sample shall include the 4th,
24th, 44th, 64th, 84th units in each of the series going upto the
984th unit.
This method provides a sample as good as a simple random sample and is
comparatively easier to draw. If a researcher is interested to study the
average telephone bill of an area in hisher city, he/she may randomly select
every fourth telephone holder from the telephone directory and find out
their annual tele.phone bills. However, this method suffers from the
following drawbacks because of departure from randomness in the
arrangement of the population units.
i) Periodic effects
Populations with more or less definite periodic trend are quite common.
I Students' attendance at a residential university library over seven days in a
week, sales of a store over twelve months in a year and flow of road traffic
past a particular traffic point on a road over 24 hours are a few examples to
show periodic trend or cyclic fluctuation in a given population. In such
, cases systematic sample may not represent the population adequately or
remain effective all the time.
Tools For Research
ii) Trend
Another handicap of systematic sampling emerges from the fact that very
often 'n' is not an integral multiple of 'k'. This leads to a varying number
of units in the sample from the same finite population.
Suppose a population of 100 counsellors is listed according to seniority and
a researcher wants to select a sample of 20. First helshe divides 100 by 20 to
get 5 as the size of the interval. Suppose he/she picks 4 at random from 1 to
5 as a starting number. Then, helshe selects each 5th name at 9,14,19, ....
until helshe draws the desired 20 names. If helshe picks 2 as the starting
point, another sample would consist 2,7,12, .... In the latter sample each
counsellors seniority is lower than hislher counterpart in the former sample.
The mean average of these two samples would be significantly divergent as
regards seniority and other associated variables. Many such samples can be
drawn by taking different starting points but there will be greater variation
among them.
Thus, the 'periodic effects' and 'trend' of the listed population unduly
increase the variability of the samples, and calculations made from such
samples cannot show the sources of variability. The main advantages of
systematic sampling are:
a) It involves simple calculations.
b) It is less expensive than random sampling.
Stratified sampling
Stratified random sampling takes into account the stratification of the main
population into a number of sub-populations, each of which is hoinogeneous
with respect to one or more characteristic(s). Having ensured this
stratification, it provides for selecting randomly the required number of
units from each sub-population. The selection of a sample from each subpopulation
may involve random or any other mode of selection. The steps
involved in the stratified sampling are given as follows:
i> Deciding upon the relevant stratification criteria such as sex,
geographical region, age, courses of study, etc.
ii) Dividing the total population into sub-populations based on the
stratification criteria.
iii) Listing the units separately in each sub-population.
iv) Selecting the requisite number of units from each sub-population by
using an appropriate random selection technique.
v) Consolidating the sub-samples for making the main sample.
Methods of Sampling
Shus, stratification improves the representativeness of a sample by
~ntroducinga secondary element of control. Howev,er., the efficiency of the
stratified random sample depends on the allocation of sample size to the
itrata. Rendering proportional weightage to each criterion improves it
further by allowing the use of a smaller sample and by helping in achieving
higher efficiency at a reduced cost.
Stratified random sample is very useful when lists of units or individuals in
the population are not available, It is also useful in providing more accurate
results than simple random sampling. For example, while selecting a sample
of undergraduate student of the Open University in your country, the
researcher may decide the whole population of undergraduate students as
males and females, north, east, south and west regions of the country and
then employed in government, private and autonomous institutions in the
country. All these will be different strata. From each stratum researcher
may select 50 students as a sample.
Sometimes stratification is not possible before collecting the data. The
stratum to which a unit belongs may not be known until the researcher has
actually conducted the survey. Personal characteristics such as sex, social
class, educational level, age etc., are examples of such stratification criteria.
The procedure in such situations involves taking of a random sample of the
required size and then classifying the units into various strata. The method is
quite efficient provided the sample is reasonably large, i.e., more than 20 irk
every stratum.
Cluster sampling
Cluster sampling is used when the population under study is infinite, where
a list of units of populatioi~d oes not exist, when the geographic distribution
of units is scattered, or when sampling of individual units is not convenient
for several administrative reasons. It involves division of the population of
elementary units into groups or clusters that serve as primary sampling
units. A selection of the clusters is then made to form the sample. Thus, in
cluster sampling, the sampling unit contains groups of elements or clusters
instead of individual members or items ;n the population.
For example, for the purpose of selecting a sample of high school children
in a state, a researcher 111ust enlist all high schools instead of children
studying in high schools and select randomly a 10 per cent sample(say) of
the schools or clusters of units. SheIHe either uses all the children as the
sample or randomly select a few of them.
1
This method of sampling is economic, especially when the cost of
measuring a unit is relatively small and cost of reaching it is relatively Inrge
Multi-stage sampling
Multi-stage sampling is used in large scale surveys for a morc
comprehensive investigation. The researcher may have to use two. thrrc(i;
Tools For Research
even four stage sampling. For example, in surveys mailed questionnaires are
generally used to gather information from people living in widely scattered
areas. Although the method is cost effective, partially completed
questionnaires may introduce a bias due to which a representative sample
cannot be obtained. To overcome this bias, two-stage sampling has to be
used. A second sample from non-respondents is selected at random by
contacting them personally. In this way the consistency of the data obtained
from the first sample can also be verified. Similarly, if a researcher goes
for a national survey of counsellors, helshe can draw a sample of five
states representing northern, eastern, southern, western and central regions.
From these five states, all the districts can be enlisted out of which a sample
of 30 to 40 districts can be drawn randomly. Out of this, all the study
centers in different districts can be enumerated. A random sample of about
300 to 400 study centers is then drawn. Further, a random sample of about
1500-2000 counsellors are drawn for the survey. The successive random
sampling of states, districts, study centers and finally counsellors also
provides a multi-stage sample.
Multi-stage sampling is advantageous as the burden on the respondents is
lessened, it is cost effective, time saving and efficient in formulating the
s-ub-sample data. However, this method is recommended only when it seems
impractical to draw a simple random sample.
Probability proportion to size sampling
When the units vary in size, it is better to select a sample in such a way that
the probability of selection of units is proportional to its size. For example, a
particular study center has a population of 200 learners and another one has
100. While drawing a sample,. the first study center will have double the
representation as compared to the second study center. Such a sample is
known as probability proportion to size sample or PPS sample 1.3.2 Non-probability Sampling
Non-probability sampling is based on the judgement of the researcher. The
guiding factors in non-probability sampling include the availability of the
units, the personal experience of the researcher and hidher convenience in
carrying out a survey. Since these samples are not prepared through random
sampling techniques, they are known as non-probability samples.
Depending on the technique used, non-probability samples are classified
into purposive, incidental and quota samples. A brief description of these
samples is given below.
Purposive sample .
A purposive sample is also known as a judgement sample. This type of.
sample is chosen because there are good reasons to believe that it is a
representative of the total population. This also reflects certain controls
identified as representative areas like a city, state or district; representative
characteristics of individuals like age, sex, marital status, etc; or types of
groups like school administrators, elementary school teachers, secondary.
school teachers, college teachers, etc.
Fig. 3: Non-probability Sample
A purposive sample differs from stratified random sample in that the actual
selection of the units to be included in the sample in each group is done
purposively rather than by random methods. For example, let us consider
Tools For Research
the achievement level of housewives opting for distance education courses.
This approach comes in handy where it is necessary to include a very small
number of units in the sample. For example, for study of 'gifted' children,
the researcher, on the basis of hislher past experience, selects certain
individuals giving extra ordinary performance in school while excluding all
others from the sample.
Incidental sample
The term incidental sample, also known as accidental sample, is applied to
samples that have been drawn because of the easy availability of units. An
investigator employed in the IGNOU may select learners enrolled for
Diploma in Distance Education while conducting a study on higher
education, as these learners are readily available and fulfil the conditions of
the study. But, neither of the two reasons may be of the investigator's
choice. Therefore, such casual groups rarely constitute random samples of
any definable population.
The merits of this procedure are mainly the convenience of obtaining units;
the ease of testing and completeness of the data collected. However, it is the
limitations that have defined population and no randomization has actually
been done. Therefore any attempt to arrive at generalised conclusion in
such cases will be erroneous and misleading.
Quota simple
Quota sanlple is another type of non-probability sample. It involves the
selection of sample units within each stratum or quota on the basis of the
judgement of the researcher rather than on calculable chance of the
individual units being included in the sample. Suppose a national survey has
to be done on the basis of quota sampling. The first step in quota sampling
would be to stratify the population region wise like rurallurban,
administrative districts etc. and then fix a quota of the sample to be selected.
In the initial state quota sampling is similar to stratified sampling. -
However, it may not necessarily employ random selection procedurd in the
initial stage in exactly the sanle way as probability sampling. The essential
difference between probability sampling and quota sampling lies in the I
selection of the final sampling units. The quota is usually determined by the
proportion of the groups. Suppose a researcher wants to study the attitude of
university teachers towards distance education. First of all, helshe may
stratify the university teachers in the category of sex and then as professors,
readers and lectures. Later, helshe may fix quotas for all these categories.
In this way, the quota sample would involve the use of strata but selection
within the strata is not done on a random basis.
The advantages of quota sampling are, its being less expensive,
conveaient, and more suitable in the case of missing or incomplete sampling
frames.
Methods of Sampling
The non-probability samples are generally considered to be convenient
when the sample to be selected is small and the researcher wants to get some
idea of the population characteristics within a short time. In such cases, the .
primary objective of the researcher is to gain insight into the problem by
selecting only those persons who can provide miximum insight into the
problem.
However, the following are some inherent limitations of non-probability
sampling methods:
i) No statistical theory has been devised to measure the reliability of
. results derived through purposive or other non-random samples.
Hence, no confidence can be placed in the data obtained from such
samples and results cannot be generalized for the entire population.
ii) The selective sampling based on convenience affects the variance
within the group as well as between the groups. Further, there is no
statistical method to determine the margin of sampling errors.
iii) Sometimes such samples are based on an obsolete frame which does
not adequately cover the population.
1.3.3 Choice of the Sarrlpling Method
The choice of sampling method depends on several considerations unique to
each individual project. These include issues related to the definition of
popuiaiion, availability of information about the structure of the-population,
the pararnctcs tr! be estimated, the objectives of the analysis including the
degree of precision required, and the availability of financial and other .
resources. This calls for appropriate selection of a sample for the conduct of
any research study.
1.3.4 Characteristics of a Good Sample
A good sample should have the characteristics of(i) Representativeness and
(ii) Adequacy.
It is essential that the sample should be 'representative' of the population if
the inforniatis:: from the sample is to be generalized for that population.
The term representative sample means an ideal 'miniature' or 'replica' of
the population from which it has been drawn.
A good sample should also be 'adequate' or of sufficient size to allow
confidence in the stability of its characteristics. An adequate sample is
considered to be one that contains enough cases to ensure reliable results.
Hence, planning the size'of the sample in advance is very important. It
varies with the nature of the characteristics under study and its distribution.
It may be mentioned that representativeness and adequacy do not
automatically .ensure accuracy of results. The sampling and data collection techniques need to be selected and employed carefully to obtain higher
degrees of precision in results and generalizations about the population.
Tools For Research
1.3.5 Determination of Sample Size .
Most Researchers find it difficult to determine the size of the sample.
Krejcie and Morgan(1 970) has given a table in which no calculations are
needed to determine the size of the sample. Table is reproduced here for
your reference.
Table for Determining Sa ple Size from a Given Population
Not9 - N is population size, S is sample size
Let us take one example. If you want to know the sample size required to be
representative of the opinions of 300 academic counsellors, refer table at
N=300. The sample size representative of the counsellors in this case will
be 169. he table given above is applicable to any defined population.
•
• Probability Sampling
• Probability sampling is based on random selection of units from a population. In other words, the sampling process is not based on the
• discretion of the researcher but is carried out in such a way that the
• probability of every unit in the population of being included is the same.
• For example, in the case of lottery, every individual has equal chance of
• being selected. Some of the characteristics of a probability sample are :
• i) each unit in the sample has some probability of entering the sample,
• ii) weights appropriate to the probabilities are used in the analysis 01
• the sample and
• iii) the process of sampling is automatic in one or more steps of the
• selection of units in the sample.
• Probability sampling can be done tlwough different methods, each method
• ,having its own strengths and limitations. A brief account of these is give11
• below: • Non-probability Sampling
• Non-probability sampling is based on the judgement of the researcher. The
• guiding factors in non-probability sampling include the availability of the
• units, the personal experience of the researcher and hidher convenience in
• carrying out a survey. Since these samples are not prepared through random
• sampling techniques, they are known as non-probability samples.
• Depending on the technique used, non-probability samples are classified
• into purposive, incidental and quota samples. A brief description of these
• samples is given below.
• Purposive sample .
• A purposive sample is also known as a judgement sample. This type of.
• sample is chosen because there are good reasons to believe that it is a
• representative of the total population. This also reflects certain controls
• identified as representative areas like a city, state or district; representative
• characteristics of individuals like age, sex, marital status, etc; or types of
• groups like school administrators, elementary school teachers, secondary.
• school teachers, college teachers, etc.
• A purposive sample differs from stratified random sample in that the actual
• selection of the units to be included in the sample in each group is done
• purposively rather than by random methods. For example, let us consider • the achievement level of housewives opting for distance education courses.
• This approach comes in handy where it is necessary to include a very small
• number of units in the sample. For example, for study of 'gifted' children,
• the researcher, on the basis of hislher past experience, selects certain
• individuals giving extra ordinary performance in school while excluding all
• others from the sample.
• Incidental sample
• The term incidental sample, also known as accidental sample, is applied to
• samples that have been drawn because of the easy availability of units. An
• investigator employed in the IGNOU may select learners enrolled for
• Diploma in Distance Education while conducting a study on higher
• education, as these learners are readily available and fulfil the conditions of
• the study. But, neither of the two reasons may be of the investigator's
• choice. Therefore, such casual groups rarely constitute random samples of
• any definable population.
• The merits of this procedure are mainly the convenience of obtaining units;
• the ease of testing and completeness of the data collected. However, it is the
• limitations that have defined population and no randomization has actually
• been done. Therefore any attempt to arrive at generalised conclusion in
• such cases will be erroneous and misleading.
• Quota simple
• Quota sanlple is another type of non-probability sample. It involves the
• selection of sample units within each stratum or quota on the basis of the
• judgement of the researcher rather than on calculable chance of the
• individual units being included in the sample. Suppose a national survey has
• to be done on the basis of quota sampling. The first step in quota sampling
• would be to stratify the population region wise like rurallurban,
• administrative districts etc. and then fix a quota of the sample to be selected. In the initial state quota sampling is similar to stratified sampling. -
• However, it may not necessarily employ random selection procedurd in the
• initial stage in exactly the sanle way as probability sampling. The essential
• difference between probability sampling and quota sampling lies in the selection of the final sampling units. The quota is usually determined by the proportion of the groups. Suppose a researcher wants to study the attitude of university teachers towards distance education. First of all, helshe may stratify the university teachers in the category of sex and then as professors, readers and lectures. Later, helshe may fix quotas for all these categories.
• In this way, the quota sample would involve the use of strata but selection within the strata is not done on a random basis.
• The advantages of quota sampling are, its being less expensive, conveaient, and more suitable in the case of missing or incomplete sampling frames. • The non-probability samples are generally considered to be convenient when the sample to be selected is small and the researcher wants to get some idea of the population characteristics within a short time. In such cases, the primary objective of the researcher is to gain insight into the problem by selecting only those persons who can provide miximum insight into the problem.
However, the following are some inherent limitations of non-probability sampling methods:
i) No statistical theory has been devised to measure the reliability of results derived through purposive or other non-random samples.
Hence, no confidence can be placed in the data obtained from such samples and results cannot be generalized for the entire population.
ii) The selective sampling based on convenience affects the variance within the group as well as between the groups. Further, there is no statistical method to determine the margin of sampling errors.
iii) Sometimes such samples are based on an obsolete frame which does not adequately cover the population. #########################
3. Critically examine the globe – hex strategies for the Indian government. THE STRATEGIES FOR THE INDIAN GOVERNMENT--BEING
*proactive and planned participation
*export led growth strategy
*infrastructure depth
*agriculture promotion
*safeguard against unreasonable import
*import of raw material
###################
4. Comment on this statement. “Often neither the least expensive strategy nor the most expensive may be the most productive strategy”.
FOR THE MOST PRODUCTIVE STRATEGY
Developing Organizational Objectives and Formulating Strategies
Developing Objectives
Objectives are what organizations want to accomplish—the end results they want to achieve—in a given time frame. In addition to being accomplished within a certain time frame, objectives should be realistic(achievable) and be measurable, if possible. “To increase sales by 2 percent by the end of the year” is an example of an objective an organization might develop. You have probably set objectives for yourself that you want to achieve in a given time frame. For example, your objectives might be to maintain a certain grade point average and get work experience or an internship before you graduate.
Objectives help guide and motivate a company’s employees and give its managers reference points for evaluating the firm’s marketing actions. Although many organizations publish their mission statements, most for-profit companies do not publish their objectives. Accomplishments at each level of the organization have helped PepsiCo meet its corporate objectives over the course of the past few years. PepsiCo’s business units(divisions) have increased the number of their facilities to grow their brands and enter new markets. PepsiCo’s beverage and snack units have gained market share by developing healthier products and products that are more convenient to use.
A firm’s marketing objectives should be consistent with the company’s objectives at other levels, such as the corporate level and business level. An example of a marketing objective for PepsiCo might be “to increase by 4 percent the market share of Gatorade by the end of the year.” The way firms analyze their different divisions or businesses will be discussed later in the chapter.
Formulating Strategies
Strategies are the means to the ends, or what a firm’s going to do to meet its objectives. Successful strategies help organizations establish and maintain a competitive advantage that competitors cannot imitate easily. PepsiCo attempts to sustain its competitive advantage by constantly developing new products and innovations, including “mega brands,” which are eighteen individual brands that generate over $1 billion in sales each.
Firms often use multiple strategies to accomplish their objectives and capitalize on marketing opportunities. For example, in addition to pursuing a low cost strategy(selling products inexpensively), Walmart has simultaneously pursued a strategy of opening new stores rapidly around the world. Many companies develop marketing strategies as part of their general, overall business plans. Other companies prepare separate marketing plans. A marketing plan is a strategic plan at the functional level that provides a firm’s marketing group with direction. It is a road map that improves the firm’s understanding of its competitive situation. The marketing plan also helps the firm allocate resources and divvy up the tasks that employees need to do for the company to meet its objectives. The different components of marketing plans will be discussed throughout the book and then discussed together at the end of the book. Next, let’s take a look at the different types of basic market strategies firms pursue before they develop their marketing plans.
Product and Market Entry Strategies
The different types of product and market entry strategies a firm can pursue in order to meet their objectives.
Market penetration strategies focus on increasing a firm’s sales of its existing products to its existing customers. Companies often offer consumers special promotions or low prices to increase their usage and encourage them to buy products. When Frito-Lay distributes money-saving coupons to customers or offers them discounts to buy multiple packages of snacks, the company is utilizing a penetration strategy. The Campbell Soup Company gets consumers to buy more soup by providing easy recipes using their soup as an ingredient for cooking quick meals.
Product development strategies involve creating new products for existing customers. A new product can be a totally new innovation, an improved product, or a product with enhanced value, such as one with a new feature. Cell phones that allow consumers to charge purchases with the phone or take pictures are examples of a product with enhanced value. A new product can also be one that comes in different variations, such as new flavors, colors, and sizes. Mountain Dew Voltage, introduced by PepsiCo Americas Beverages in 2009, is an example. Keep in mind, however, that what works for one company might not work for another. For example, just after Starbucks announced it was cutting back on the number of its lunch offerings, Dunkin’ Donuts announced it was adding items to its lunch menu.
Market development strategies focus on entering new markets with existing products. For example, during the recent economic downturn, manufacturers of high-end coffee makers began targeting customers who go to coffee shops. The manufacturers are hoping to develop the market for their products by making sure consumers know they can brew a great cup of coffee at home for a fraction of what they spend at Starbucks.
New markets can include any new groups of customers such as different age groups, new geographic areas, or international markets. Many companies, including PepsiCo and Hyundai, have entered—and been successful in—rapidly emerging markets such as Russia, China, and India. As Figure 2.12 "Product and Market Entry Strategies" shows, there are different ways, or strategies, by which firms can enter international markets. The strategies vary in the amount of risk, control, and investment that firms face. Firms can simply export, or sell their products to buyers abroad, which is the least risky and least expensive method but also offers the least amount of control. Many small firms export their products to foreign markets.
Firms can also license, or sell the right to use some aspect of their production processes, trademarks, or patents to individuals or firms in foreign markets. Licensing is a popular strategy, but firms must figure out how to protect their interests if the licensee decides to open its own business and void the license agreement. The French luggage and handbag maker Louis Vuitton faced this problem when it entered China. Competitors started illegally putting the Louis Vuitton logo on different products, which cut into Louis Vuitton’s profits.
The front of a KFC franchise in Asia may be much larger than KFC stores in the United States. Selling franchises is a popular way for firms to enter foreign markets.
Franchising is a longer-term form of licensing that is extremely popular with service firms, such as restaurants like McDonald’s and Subway, hotels like Holiday Inn Express, and cleaning companies like Stanley Steamer. Franchisees pay a fee for the franchise and must adhere to certain standards; however, they benefit from the advertising and brand recognition the franchising company provides.
Contract manufacturing allows companies to hire manufacturers to produce their products in another country. The manufacturers are provided specifications for the products, which are then manufactured and sold on behalf of the company that contracted the manufacturing. Contract manufacturing may provide tax incentives and may be more profitable than manufacturing the products in the home country. Examples of products in which contract manufacturing is often used include cell phones, computers, and printers.
Joint ventures combine the expertise and investments of two companies and help companies enter foreign markets. The firms in each country share the risks as well as the investments. Some countries such as China often require companies to form a joint venture with a domestic firm in order to enter the market. After entering the market in a partnership with a domestic firm and becoming established in the market, some firms may decide to separate from their partner and become their own business. Fuji Xerox Co., Ltd., is an example of a joint venture between the Japanese Fuji Photo Film Co. and the American document management company Xerox. Another example of a joint venture is Sony Ericsson. The venture combined the Japanese company Sony’s electronic expertise with the Swedish company Ericsson’s telecommunication expertise.
Direct investment(owning a company or facility overseas) is another way to enter a foreign market. For example, In Bev, the Dutch maker of Beck’s beer, was able to capture market share in the United States by purchasing St. Louis-based Anheuser-Busch. A direct investment strategy involves the most risk and investment but offers the most control. Other companies such as advertising agencies may want to invest and develop their own businesses directly in international markets rather than trying to do so via other companies.
Figure 2.14 Market Entry Methods
Diversification strategies involve entering new market
Marketing
2 posts • Page 1 of 1
Marketing
by Vinn » Sun Mar 29, 2015 2:10 am
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SOME ANSWERS HELD BACK DUE TO SPACE CONSTRAINT.
PLEASE FORWARD THESE BALANCE QUESTIONS TO MY EMAIL ID
[email protected]
I will send the balance asap.
Regards
LEO LINGHAM
==========================================
1.What, in your view, are the key principles of global marketing?
The Marketing Principles comprise four core principles which we believe are at the heart of responsible tobacco marketing. The rationale for each principle is explained and illustrated by a set of core standards, which show how they should be applied in our communications with consumers.
The core principles
Our four key marketing principles are:
1. We will not mislead about the risks of smoking.
2. We will only market our products to adult smokers.
3. We will not seek to influence the consumer’s decision about whether or not to smoke, nor how much to smoke.
4. It should always be clear to our consumers that our advertising originates from a tobacco company and that it is intended to promote the sale of our tobacco brands.
Our International Marketing Principles(190 kb)
The Marketing Principles apply to the marketing of all British American Tobacco’s combustible tobacco products.
Monitoring adherence
We monitor compliance to our International Marketing Principles(and previously to our old International Marketing Standards) through market audits and annual self-assessments and any incidents of non-adherence are reported to our regional audit and CSR Committees and to the Board CSR Committee.
In 2013, there were eight cases where we failed to adhere to our International Marketing Standards(2012: 14). Immediate actions were put in place in every one of these cases and we are committed to 100% compliance.
We welcome information from anybody who believes that any of our companies are not living up to the 100%.
Marketing principles hold constant against the odds of change. Technology is always evolving. For those of us working in the digital realm, this constant evolution has a tendency to make us think that marketing principles always change, too. The truth is, some restricting parameters surrounding marketing principles have never changed. As the platform used for advertising has shifted from print, to radio, to billboards, to TV, to the internet, and now SoMoLo, some key points have remained constant. Here’s a look at some of the marketing principles that will likely always stay the same.
Info overload
Way back in 1985, Neil Postman wrote about cultural over-saturation in his book, Amusing Ourselves to Death. Postman probably could not have foreseen the scale that the internet would reach over the ensuing decades. Beginning with the advertising craze of the mid-twentieth century, companies have been hitting the public right and left with ads.
In and of itself, advertising is simply a business move. But the more ads presented to a given consumer, the harder it really becomes to gain a conversion from that consumer. The internet is a swirling pool of ads both overt and covert, and the effect can be stifling to marketers.
For this reason, our marketing principles really need to work hard to give relevant meaning and appropriate context in order to retain the attention of our audience. In other words, keep it short and to the point, and dead-set focused on engagement leading to conversion.
People buy a feeling
As the character of Don Draper once explained on AMC’s Mad Men, people do not buy products, they buy feelings. Although it seems otherwise these days, Apple is a company that has mastered this concept. Whenever you purchase a new iPad, you are buying a membership card to an exclusive club of Apple users. Whenever you download some content for that iPad from the iTunes Store or App Store, you pay your dues to wear the club tee shirt. Simply put, the best branding inseparably integrates itself with the consumer’s lifestyle.
The need to create a feeling within the consumer has been in place since the good old days of the television advertising boom, and it is up to us in the marketing world to adapt the principles pioneered way back when on Madison Avenue to the web. Look to the likes of Apple, as well as Facebook(duh, right?), Spotify, and Google for more pointers on creating that oh-my-gosh-gotta-have-it feeling that will translate to your customers.
Here’s a recent impressive oh-my-gosh-gotta-have-it feeling campaign by the WordPress theme company, Optimizepress. You can tell from their video promotions that the theme would make life much more easier for anyone with a WordPress website and has the potential to revolutionize how entrepreneurs build and manage their websites. You can take a look at their recent video here.
Existing customers are pure gold
The money you’ve invested into getting that first-time buyer has already paid off once they have made that purchase. When you follow up correctly and engage that shopper in the right, unobtrusive manner that reminds them why they spent money with you in the first place, your company stands an excellent chance of earning a repeat sale.
The best news is that it is generally less expensive to get a repeat customer. The costly part of the equation is drawing in a new customer. Done right, considerably less expensive methods, like email campaigns, are genuinely effective for gaining repeat customers. The important point is to remember not to leave your existing customers out of your digital marketing budget – in fact, the more you can budget for engaging them, the sweeter the return, in my experience.
Creativity is king
As I stated above, the sea of online ads is vast, and getting the consumer’s attention is the same hurdle it has always been even in other mediums. Being truly creative is the only way to stand out from the crowd. Creativity should not be convoluted. Keep it simple and to the point. The best “advertising” is the advertising that is not too obviously advertising. Subterfuge is a beautiful thing when it comes to digital age solicitations. Whenever the creative elements start to be too complex, step back and solve the problem by searching for a simple, effective way to reach your customers.
Sound marketing principles are sure way to succeed
Planning, meaning strategy, is truly the only way to go to business. The fact may seem obvious to most of us, but sometimes having the right strategy is the real challenge. You need to know who your consumer is in order to profitably connect with them. Likewise, you really have to know who your competition is, noting both their strengths and weaknesses. Information is powerful and building a good digital marketing strategy starts with understanding the external factors that will affect your business.
A digital marketing strategy assess not only the extra-company factors you need to gain a command of, but also factors your company’s budget, and most importantly, meeting business goals. The more effort you put into effectively planning around these concepts, and on-boarding your team with the plan, the better off your marketing efforts will be. This information is Business 101, and it has been a fact of life for marketers since the earliest days of advertising.
Technology is changing rapidly. As marketing professionals scurry to keep up, it is important to keep a frame of reference on the fact that some tried and true marketing principles never change. As the old saying goes, “if it ain’t broke, don’t fix it”. Consumers are more overloaded with media than ever, but they still value a lifestyle that they can buy into. Once they have shopped with you once, it is comparatively simple, yet utterly important, to work to get them to shop with you again.
All of this is made more simple by a fresh dose of pure creativity. Above all, the need to build a solid marketing strategy will never change. So as we forge ahead riding the wave of tech as we come up with new marketing techniques to increase conversion and customer retention, let’s not lose sight of the tried and true basic marketing principles that have built a million businesses before.
If you played sports as a kid, you know about practicing the basics. Your coach probably had you practice basic drills over and over again. But, learning those basics skills built a solid foundation for you to do great things.
The same is true in business; you need to know your basics inside and out. One of the most important skills you need is marketing. Marketing is defined as a suite of principles and strategies you use in your business to create awareness of your product and services. Marketing is beneficial to your business because it:
• Establishes awareness that your business exists
• Promotes branding and name recognition
• Provides general information about your business or your products/services • When done well, it creates trust and credibility • Distinguishes your business from the competition • Communicates new products and services The key to effective marketing is to send a message that resonates with your target market, attracts them to your business, communicates the benefits of your product or service and compels them to contact you.
To support and inspire your marketing strategy, here are seven fundamental marketing principles. The absence of any of these principles can undermine the effectiveness of your marketing:
1. Identify what your target wants and needs: The wants and needs of your target market influence the products and services you offer, and how you go about marketing to them.
2. Provide relevant products and services: Position and promote your products and services so that they are attractive to the target market.
3. Emphasize solutions and benefits, more than features: Solutions and benefits are the true value of your offering and will more likely ignite emotion and ultimately move your target to buy.
4. Build a relationship with your target market: Demonstrate, through marketing, that they need you and that they will be better off because of what you can offer them.
5. Be consistent in how you brand your business: The key here is to demonstrate your uniqueness, deliver of your promise, and to maintain a consistent branding message.
6. Start simple and build your strategy over time: Take a phased approach when rolling out your marketing efforts. Don't do it all at once. You will feel overwhelmed, and it will be too much to manage. 7. Marketing is an ongoing process; it never stops: A business that wants to be sustainable and profitable should continually invest time and energy in marketing. ######################
2.Discuss with examples from the soft drinks industry, the marketing implications of cultural influences on consumer behavior.
Culture, Ethnicity, and Social Class
What is Culture?
Culture refers to a set of values, ideas, artifacts, and other meaningful symbols that help individuals communicate, interpret, and evaluate as members of society. Abstract elements include values, attitudes, ideas, personality types, and summary constructs, such as religion or politics. Cultural artifacts include the material component of a culture. Norms are rules of behavior held by a majority or at least a consensus of a group about how individuals should behave. Macro-culture refers to values and symbols that apply to an entire society or to most of its citizens. Microculture refers to values and symbols of a restrictive group or segment of consumers, defined according to variables such as age, religion, ethnicity, or social class. The processes by which people develop their values, motivations, and habitual activity are referred to as socialization. Consumer socialization: the acquisition of consumption-related cognitions, attitudes, and behavior. How Core Values Affect Marketing
Core merchandise: a basic group of products that is essential to a store’s traffic, consumer loyalty, and profits. Core values: the very basic values of people that, among other things, define how products are used in society, provide positive and negative valences for brands and communications programs, define acceptable market relationships, and define ethical behavior. Changing Values
Changes in a society’s values can be forecast on the basis of a life-cycle explanation, meaning that as individuals grow older, their values change. Generational change suggests that there will be gradual replacement of existing values by those of young people who form the leading generation in value terms. Cohort analysis: a process that investigates the changes in patterns of behavior or attitudes in a cohort. Ethnic Microcultures and Their Influences on Consumer Behavior
Acculturation measures the degree to which a consumer has learned the ways of a different culture compared to how they were raised. Transcultural marketing research is used to gather data from specific ethnic groups and compare these data to those collected from other markets, usually the mass market. Social-Class Microcultures
Social class is defined as relatively permanent and homogeneous divisions in a society into which individuals or families sharing similar values, lifestyles, interests, wealth, status, education, economic position, and behavior can be categorized. Status groups reflect a community’s expectations for style of life among each class as well as the positive or negative social estimation of honor given to each class. People have high prestige when other people have an attitude or respect or deference to them. Association is a variable concerned with everyday relationships, which people who like to do the same things they do, in the same ways, and with whom they feel comfortable. Social stratification refers to the perceived hierarchies in which consumer’s rate other as higher or lower in social status. Those who earn a higher status due to work or study have achieved status, whereas those who are lucky to be born wealthy or beautiful have ascribed status. Social mobility refers to the process of passing from one social class to another. Parody display describes the mockery of status symbols and behavior. Chapter 12 Family and Household Influences
The Importance of Families and Households on Consumer Behavior
Family: a group of two or more persons related by blood, marriage, or adoption who reside together. The nuclear family is the immediate group of father, mother, and child(ren) living together. The extended family is the nuclear family, plus other relatives, such as grandparents, uncles and aunts, cousins, and parents-in-law. The family into which one is born is called the family of orientation, whereas the one established by marriage is the family of procreation. The term household is used to describe all persons, both related and unrelated, who occupy a housing unit. Structural variables include the age of the head of the household or family, marital status, presence of children, and employment status. Three sociological variables that help to explain how families function include cohesion, adaptability, and communication.
• Cohesion is the emotional bonding between family members.
• Adaptability measures the ability of a family to change its power structure, role relationships, and relationship rules in response to situational and developmental stress.
• Communication is a facilitating dimension, critical to movement on the other two dimensions. Who Determines What the Family Buys?
Instrumental roles, also known as functional or economic roles, involve financial, performance, and other functions performed by group members. Expressive roles involve supporting other family members in the decision-making process and expressing the family’s aesthetic or emotional needs, including upholding family norms. Family marketing: marketing based on the relationships between family members based on the roles they assume. Family Life Cycles
• Family life cycle(FLC): the series of stages that a family passes through and that change them over time.
• Household life cycle(HLC): the series of stages that a household passes through and that change in over time. • Consumer life cycle(CLC): the series of stages that a consumer passes through during life and that change an individual’s behavior over time. Changing Roles of Women
A role specifies what the typical occupant of a given position is expected to do in that position in a particular social context. Changing Masculine Roles
Androgynous consumer: a consumer who has the characteristics of both male and female consumers(or no distinguishing masculine or feminine characteristics at all). Group and Personal Influence
Group and Personal Influences on Individuals
A reference group is any person or group of people who significantly influences an individual’s behavior. • Primary groups: groups that are sufficiently intimate to permit and facilitate unrestricted face-to-face interaction.
• Secondary groups: groups that have face-to-face interaction, but are more sporadic, less comprehensive, and less influential in shaping thought and behavior than are primary groups.
• Formal groups: social aggregations characterized by a defined structure and a known list of members and requirements for membership.
• Informal groups: groups that have far less structure than formal groups and are likely to be based on friendship or common interests.
• Membership: the act of achieving formal acceptance status within a group.
• Aspirational groups: groups that the individual seeks to associate with by adopting the group’s norms, values and behavior. • Dissociative groups: groups with which an individual tries to avoid association.
• Virtual membership groups: groups based on virtual communities in which individuals from different geographic areas share information without face-to-face contact.
Normative influence occurs when individuals alter their behaviors or beliefs to meet the expectations of a particular group. Value-expressive influence occurs when a need for psychological association with a group causes acceptance of its norms, values, attitudes, or behaviors. Informational influence occurs when people have difficulty assessing product or brand characteristics by their own observation or contact. How Reference Groups Influence Individuals
The desire of an individual to fit in whit a reference group often leads to conformity – a change in beliefs or actions based on real or perceived group pressures. Two types of conformity exist: compliance and acceptance. • Compliance occurs when an individual conforms to the wishes of the group without accepting all its beliefs or behaviors.
• Acceptance occurs when an individual actually changes his or her beliefs and values to those of the group.
Another consideration leading to diminished normative compliance is a weakened respect for social norms, referred to by sociologists as anomie. An expert is any person who possesses unique information or skills that can help consumers make better purchase decision than other types of spokespersons. In contrast, the common-person appeal features testimonials from “regular” consumers with whom most individuals can relate. Transmission of Influence through Dyadic Exchanges
Similar to opinion leaders are product innovators – individuals who are the first to try a new product. Market mavens gather much of their information from shopping experiences, openness to information(including direct mail and the Internet), and general market awareness, making them more aware of new product than other people. Another source of personal influence in the marketplace is the surrogate consumer(or surrogate shopper) – an individual who acts as an agent to guide, direct, and conduct activities in the marketplace. Whenever there is personal communication between a consumer and a marketer, a service encounter occurs, often a key to successful marketing. Customer intimacy refers to the detailed understanding and focus on customers’ needs lifestyles and behaviors in an effort to create a deep cultural connection with the customers, but reverse customer intimacy – how well marketers facilitate customers knowing the marketer – may also be a key to customer loyalty. Trickle-down theory, the oldest theory, theorizes that lower classes often emulate the behavior of their higher-class counterparts. The two-step flow of communication model indicates that opinion leaders are the direct receivers of information from advertisements and that they interpret and transmit the information to others through word-of-mouth. Recognizing that mass media can reach anyone in a population and influence them directly, the multistep flow of communication model was developed. This model indicates that information can flow directly to different types of consumers, including opinion leaders, gatekeepers, and opinion seekers or receivers. Diffusion of Innovations
An innovation can be defined in a variety of ways, but the most commonly accepted definition is any idea or product perceived by the potential adopter to be new. It follows then that a product innovation(or new product) is any product recently introduced to the market or perceived to be new when compared to existing products. • Continuous innovation: the modification of the taste, appearance, performance, or reliability of an existing product rather than the establishment of a totally new one. • Dynamically continuous innovation: the act of creating either a new product or a significant alteration of an existing one, but does not generally alter established purchase or usage patterns. • Discontinuous innovation: the act of introducing an entirely new product that significantly alters consumers’ behavior patterns and lifestyles.
The Diffusion Process
According to Rogers, diffusion is defined as the process by which an innovation(new idea) is communicated through certain channels over time among the members of a social system. Vertical coordination, a high degree of dependence and interlocking relationships among channel members, also increases the rate of diffusion. Some members of the social system are adopters – people who have made a decision to use a new product – whereas others are nonadopters. • Innovators are the first consumer group to adopt products. Consumers who are innovators for many products are said to be polymorphic, whereas those who are innovators for only one product are monomorphic.
• Early adopters tend to be opinion leaders and role models for others, with good social skills and respect within larger social systems.
• The early majority consists of consumers who deliberate extensively before buying new products, yet adopt them just before the average time it takes the target population as a whole.
• The late majority tends to be cautious when evaluating innovations, taking more time than average to adopt them, and often at the pressure of peers.
• Laggards, the last group to adopt innovations, tend to be anchored in the past, are suspicious of the new, and exhibit the lowest level of innovativeness among adopters. Innovativeness is the degree to which an individual adopts an innovation earlier than other members of a social system. Cognitive innovators have a strong preference for new mental experiences, whereas sensory innovators have a strong preference for new sensory experiences. Market mavens: Psychological influences
The marketing literature has identified three distinct types of influential consumers: the innovators, the opinion leaders, and the market maven. Innovators are defined as consumers who tend to adopt products comparatively early within a given social system. Opinion leaders are defined as individuals who influence the purchasing behavior of other consumers in a specific product domain. Market mavens are defined as “individuals who have information about many kinds of products, places to shop, and other facets of markets, and initiate discussions with consumers and respond to requests from consumers for market information”. Market mavens are consumers who highly involved in the marketplace and represent an important source of marketplace information to other consumers. Global self-esteem: an overall estimate of general self-worth; a level of self-acceptance or respect for oneself; a trait or tendency relatively stable and enduring, composed of all subordinate traits and characteristics within the self. Tendency to conform: a global, enduring personality trait in which the individual is predisposed to acquiesce to social norms prescribed by reference groups that are relevant and important to the individual. Consumer susceptibility to interpersonal influence: the need to identify or enhance one’s image with significant others through the acquisition and use of products and brands, the willingness to conform to the expectations of others regarding purchase decisions and/or the tendency to learn about products and services by observing others and/or seeking information from others.
Consumer need for uniqueness: an enduring personality trait by which consumers pursue dissimilarity through products and brands in an effort to develop a distinctive self and social image. Domain-specific opinion leadership: consumer influence on individuals in specific product areas. Lecture 8: Dissatisfaction
Satisfaction:
• A positive post-consumption evaluation that occurs when the consumption experience either meets or exceed expectations.
• The customer’s fulfillment response. It is a judgment that a product/service feature, or the product/service itself, provides a pleasurable level of consumption-related fulfillment.
Expectancy disconfirmation model
• Negative disconfirmation: the result that occurs when, after purchase, the product delivers less than what was originally expected.
• Positive confirmation: the result that occurs when, after consumption, the product delivers more than what was originally expected.
• Confirmation: when a product’s performance meets certain expectations.
Attribution: how individuals assign causes of events, other’s behavior, and their own behavior to the product/service, to the situation or to themselves. Covariation model of attribution Can product performance be attributed to the product, person or situation? Three main types of information:
1. Distinctiveness: different from other products/brands?
2. Consistency: Does it always perform?
3. Consensus: How do other consumers feel about the product? Reporting-bias: advertiser under-reports undesirable performances, while being much more open on desirable attributes(advertiser acts out of self-interest).
Knowledge-bias: advertiser is largely unaware of the alternatives.
Dissatisfaction: if a product falls short of expectations(negative disconfirmation) the consumer is likely to be dissatisfied. Social Justice Theory(
Customer(dis)satisfaction:
• Distributive fairness ? compensation
• Procedural fairness ? responsibility & responsiveness
• Interactional fairness ? empathy
The service recovery paradox states that with a highly effective service recovery, a service or product failure offers a chance to achieve higher satisfaction ratings from customers than if the failure had never happened. Service validity and service reliability of search, experience and credence services: A scenario study
Customer satisfaction: the number of customers or percentage of total customers, whose reported experience with a firm, its products, or its services(ratings) exceeds specified satisfaction goals. The better the match between service specifications and consumers’ needs, the more satisfied customers are. • Service reliability: Is the service correctly produced? The extent to which the service delivery matches the service specifications.
• Service validity: is the correct service produced? The extent to which the service specifications match the customer’s needs and demands.
SEC-Classification
• Search service: dominant product/service attributes can be validated before purchase and consumption.
• Experience service: dominant product/service attributes can be verified but require consumption.
• Credence service: dominant cannot be verified because consumers lack information/expertise. Lecture 9: New products
Diffusion: the social process of diffusion of the new product, service, concept, brand…, after introduction, among consumers(throughout society)
Adoption(acceptance): the individual decision making process to adopt(accept and buy) a new product, service, concept, brand. • Continuous innovation: the modification of the taste, appearance, performance, or reliability of an existing product rather than the establishment of a totally new one. • Dynamically continuous innovation: the act of creating either a new product or a significant alteration of an existing one, but does not generally alter established purchase or usage patterns. • Discontinuous innovation: the act of introducing an entirely new product that significantly alters consumers’ behavior patterns and lifestyles.
Innovativeness is the degree to which an individual adopts an innovation earlier than other members of a social system. Three underlying dimensions:
1. Socio-economic variables
2. Personal & attitude variables
3. Communication-variables
Diffusion of preventive innovations
Diffusion is the process through which(1) an innovation(2) is communicated through certain channels(3) over time(4) among the members of a social system. The four main elements in the diffusion of new ideas are(1) innovation,(2) communication channels,(3) time, and(4) the social system. An innovation is an idea, practice, or object that is perceived as new by an individual or other unit of adoption. The characters that determine an innovation’s rate of adoption are: 1. Relative advantage: the degree to which an innovation is perceived as better than the idea it supersedes. What does matter is whether an individual perceives the innovation as advantageous. 2. Compatibility: the degree to which an innovation is perceived as being consistent with the existing values, past experiences, and needs of potential adopters.
3. Complexity: the degree to which an innovation is perceived as difficult to understand and use.
4. Triability: the degree to which an innovation may be experimented with on a limited basis.
5. Observability: the degree to which the results of an innovation are visible to others. Innovations that are perceived by individuals as having greater relative, advantage, compatibility, triability, observability, and less complexity will be adopted more rapidly than other innovations. The innovation – decision process is the mental process through which an individual(or other decision making unit) passes(1) from first knowledge of an innovation,(2) to forming an attitude toward the innovation,(3) to a decision to adopt or reject,(4) to implementation of the new idea, and to(5) confirmation of this decision. Innovativeness is the degree to which an individual or other unit of adoption is relatively earlier in adopting new ideas than other members of a social system. Five adopter categories, or classifications of the members of a social system on the basis on their innovativeness, are:(1) innovators,(2) early adopters,(3) early majority,(4) late majority, and(5) laggards. 1. Innovators are the first 2.5% of the individuals in a system to adopt an innovation.
2. Early adopters are the next 13.5% of the individuals in a system to adopt an innovation.
3. Early majority are the next 34% of the individuals in a system to adopt an innovation.
4. Late majority are the next 34% of the individuals in a system to adopt an innovation.
5. Laggards are the last 16% of the individuals in a system to adopt an innovation.
Preventive innovations are new ideas that require action at one point in time in order to avoid unwanted consequences at some future time. Preventive innovations are relatively low in relative advantage, compared to nonpreventive innovations. What strategies could be used to speed up the diffusion and use of preventive innovations?
1. Change the perceived attributes of preventive innovations.
2. Utilize champions to promote preventive innovations. A champion is an individual who devotes his/her personal influence to encourage adoption of an innovation.
3. Change the norms of the system regarding preventive innovations through peer support.
4. Use entertainment-education to promote preventive innovations. Entertainment-education is the process of placing educational ideas(such as on prevention) in entertainment messages.
5. Active peer networks to diffuse preventive innovations.
Consumer behaviour deals with the study of buying behaviour of consumers. Consumer behaviour helps us understand why and why not an individual purchases goods and services from the market.
There are several factors which influence the buying decision of consumers, cultural factors being one of the most important factors.
What are Cultural Factors ?
Cultural factors comprise of set of values and ideologies of a particular community or group of individuals. It is the culture of an individual which decides the way he/she behaves. In simpler words, culture is nothing but values of an individual. What an individual learns from his parents and relatives as a child becomes his culture.
Example - In India, people still value joint family system and family ties. Children in India are conditioned to stay with their parents till they get married as compared to foreign countries where children are more independent and leave their parents once they start earning a living for themselves.
Cultural factors have a significant effect on an individual’s buying decision. Every individual has different sets of habits, beliefs and principles which he/she develops from his family status and background. What they see from their childhood becomes their culture.
Let us understand the influence of cultural factors on buying decision of individuals with the help of various examples.
Females staying in West Bengal or Assam would prefer buying sarees as compared to Westerns. Similarly a male consumer would prefer a Dhoti Kurta during auspicious ceremonies in Eastern India as this is what their culture is. Girls in South India wear skirts and blouses as compared to girls in north India who are more into Salwar Kameez.
Our culture says that we need to wear traditional attire on marriages and this is what we have been following since years.
People in North India prefer breads over rice which is a favorite with people in South India and East India.
Subcultures
Each culture further comprises of various subcultures such as religion, age, geographical location, gender(male/female), status etc.
Religion(Christianity, Hindu, Muslim, Sikhism, Jainism etc)
A Hindu bride wears red, maroon or a bright colour lehanga or saree whereas a Christian bride wears a white gown on her wedding day. It is against Hindu culture to wear white on auspicious occasions. Muslims on the other hand prefer to wear green on important occasions.
For Hindus eating beef is considered to be a sin whereas Muslims and Christians absolutely relish the same. Eating pork is against Muslim religion while Hindus do not mind eating it.
A sixty year old individual would not like something which is too bright and colorful. He would prefer something which is more sophisticated and simple. On the other hand a teenager would prefer funky dresses and loud colours.
In India widows are expected to wear whites. Widows wearing bright colours are treated with suspicion.
Status(Upper Class, Middle class and Lower Class)
People from upper class generally have a tendency to spend on luxurious items such as expensive gadgets, cars, dresses etc.You would hardly find an individual from a lower class spending money on high-end products. A person who finds it difficult to make ends meet would rather prefer spending on items necessary for survival. Individuals from middle class segment generally are more interested in buying products which would make their future secure.
Gender(Male/Female)
People generally make fun of males buying fairness creams as in our culture only females are expected to buy and use beauty products. Males are perceived to be strong and tough who look good just the way they are. ##########################################################################################
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