Evolution of management concepts and modern marketing
The first concept is the concept of improving production, which was developed at the beginning of the last century. Having a product, the company aims to maximize profits and uses for this purpose the main directions of improving production - increasing labor productivity and reducing costs.
Henry Ford's conveyor production became a classic example of this approach. Mass production gave the effect of economies of scale, while the production was completely homogeneous and the consumer received an affordable standard vehicle. Ford said that the company provides the buyer with a choice between a black Ford standard equipment at a low price or any car from another company. However, this concept is based on relatively short-term competitive advantages, as the market tends to copy successful technologies. Very soon the conveyor became the norm in the automotive industry and Ford lost its uniqueness.
The concept of product improvement is the next concept that absorbed all the positive experience of production management. The companies direct all their efforts to constant improvement of product quality. The goal of commercial activity in this case continues to be profit maximization. However, at a certain stage the buyer ceases to notice the qualitative advantages of the goods, and the firm continues to look for ways to further improve it. This situation marketers call marketing myopia or a mistake of falling in love with their product. At the same time, copying competitors' products to each other leads to the establishment of industry-standard quality standards, and to stand out with the help of typical product characteristics becomes increasingly problematic.
The following concept is the concept of intensification of commercial efforts. The company also comes from the product. Its goal is to maximize profits and, accordingly, the way to achieve the goal - to increase the means of promotion, to intensify the entire product promotion package. Professional communication efforts are very effective. Communication for goods of passive demand is especially important. For example, it is quite difficult for a consumer to sit at home with a cup of coffee, suddenly decide on home insurance or own life, or about buying a novelty that he does not know about. A well-designed advertising campaign, the use of sales promotion methods and personal sales are the only possible measures in this case to inform the consumer and promote the product.
Most modern promotion strategies are based on the manipulation of consumer consciousness and give a powerful effect, but only as long as the competitors of the company do not start using similar communication technologies. Thus, the positioning laid in the advertising message, the advantages that promise to the consumer, become unified, and the difference is visible only through the prism of brands. Therefore, the concept of intensifying communication efforts is also limited in time, as well as the previous two concepts.
As a result, companies, after going through three concepts, come to the need to search for a management system that would combine all the advantages of previous concepts, but would level out the disadvantages that they have. So the concept of marketing is born.
Fundamentals of the concept of marketing formed in the middle of the last century. Its main difference from previous approaches to the management of the firm is the orientation not on the already existing, produced product, but on the needs of the market. Only after studying the market and consumer preferences, the company begins to develop and produce the product.
The second distinctive feature is that as the most important goal of economic activity is not just the maximization of profits, but the achievement of long-term profit.
Marketers say for the first time that when entering the market, the company for the first time can function at breakeven level or even incur losses, while achieving a long-term goal of creating consumer loyalty to the product and brand. Many companies that entered the United States market in the early 1990s followed this path.
Initially, Procter & amp; Gamble in the United States market set prices for some product lines with virtually zero margins, making the offer as accessible as possible. The consumer due to frequent consumption has a high level of loyalty and a strong emotional connection with the brand, which led to an automatic, at the subconscious level, product selection for decades. A similar result became possible due to the construction of an effective set of marketing activities - marketing mix.
Many modern economists agree that classical marketing does not work as efficiently as it did ten years ago. The realities of the modern market lead to the fact that classical marketing, transaction-oriented ( transactional marketing), moves to a new level and turns into relationship marketing ( relationship marketing).
If the ultimate goal of classical marketing is the consumer's acquisition of goods brought to the market through the effective use of the mix of marketing mix, the ultimate goal of relationship marketing is already simply a single acquisition by the consumer of the product, and the creation of adherence to the product, and then to brand. Due to this, the consumer makes repeated purchases, projecting his positive attitude to previous products on new ones. Thus, it is a question of creating a constant base loyal customers ( loyal customers), making repeated purchases and with other equal conditions that choose the brand of the company.
The transformation of the marketing concept is explained by quite simple economic reasons. The fact is that the cost of attracting the consumer to make the second, third and subsequent purchases is much lower (according to some data, five times) than attracting the consumer to make the first purchase. Initially, the consumer is conservative, he needs to prove that the company and the product are worthy of his attention. This involves significant costs for all kinds of promotion tools, including expensive ATL-technologies (various types of advertising - television, radio, outdoor, printed, etc.).
When forming the base of regular customers, positive experience with the company is instantly projected onto any of its new products, and when creating an atmosphere of customer care at the expense of cheaper BTL-technologies (various promotions, including discounts and sales, direct mail mailing lists, loyalty programs, special events, etc.), the customer will be happy to make subsequent purchases.
Major retail brands such as Walmart and "Crossroads", Whole Foods and taste & quot ;, Auchan and "MEGA", seek to translate relations with the target group of buyers into a long-term category, resorting to special marketing tools.
One of them is finalizing the format , suggesting the creation of a unique atmosphere in the store, the specific location of trade departments, the formation of a unique product range and a set of additional services. All this can become points of attraction, the task of which is to increase customer loyalty or to attract new target groups. So, the network of department stores Sears, designed mainly for men, in order to attract a new target group - women and children - opened children's photo salons where parents could order high-quality low-cost pictures of their children . Bookstores network Barnes & amp; Noble placed Starbucks coffeehouses right in the shopping mall so that their customers could read any books for a cup of coffee.
Another tool is retail ( retailtainment ), the essence of which is to turn the shopping process into an exciting event by organizing contests and celebrations, placing thematic showcases, displays and installations, and special training for store staff. It is believed that this concept was developed by Walmart and reached the greatest distribution in the US, although many examples are also known from United States practice: actions "Father Frost's Mail" and Vkusomaniya in the "ABC of Taste", "Evenings of Right Music" in shopping malls MEGA and others
By the early 1990s. the concept of social and ethical marketing emerges. Modern companies strive to satisfy not only the needs of specific consumers, but also to focus on the needs and needs of society as a whole. This approach is called the social orientation of business.
The profit of the company in this case will be long-term and stable. Creating a positive public opinion through environmental orientation, charitable activity, increased attention to the needs of individual social groups, etc., the company projects a positive corporate image for a specific product, which undoubtedly adds value to it in the eyes of consumers.
The company Toyota has long opened a venture division that develops cars on alternative fuels. An intensive advertising campaign aimed at promoting the image of environmental care in a few years has created the impression that all the traditional products of the company Toyota are also environmentally friendly, although the fact of real changes in the technology of its production was not included.
The concept of marketing evolves along with the rapid changes that information technology brings to everyday life. This forces marketers to select new terms to describe the concept of marketing at the present stage of development. So, the concept of "marketing 3.0", serves as a kind of expansion of the concept of social and ethical marketing. It was described in detail in F. Kotler's book of the same name.
In the context of global Internetization of the society, traditional marketing tools are no longer so effective. Modern consumers are well informed about the products they are interested in and have the opportunity to quickly exchange various information around the world through blogs and social networks ( Facebook, Twitter, YouTube, Instagram , etc.). In such circumstances, any attempt to manipulate public opinion and behavior can meet a strong rebuff and lead to negative consequences for the company. The response of consumers can arise spontaneously and acquire a global scale, so this problem affects absolutely all firms, including the largest transnational corporations. This forces us to look for new approaches to attracting and retaining customers.
Marketing 3.0 focuses not on the product or consumer, but on the spiritual values of society, the open interaction of companies with broad social groups in the name of achieving common goals (in this sense, the mission, vision and corporate values of the company take on a special role), as well as active involvement consumers in the process of product development and marketing communications. If under the traditional concept of marketing the model of interaction with the consumer was described by the formula "one on one", then marketing 3.0 is the cooperation of many with many.
The role of social media in marketing is difficult to overestimate. Currently, social networks have become a powerful tool for promoting goods and services, which is often times more efficient than traditional channels of communication. In particular, the placement of advertisements (for example, in the form of banners) on social networks presupposes a wide range of options for targeting such messages: you can specify gender, age, geography, place of study or work, as well as the interests of people to whom the social networking site will show advertising banner. This allows you to significantly improve the effectiveness of communication and reduce the advertising budget.
Thanks to the popularity of social networks, a whole group of new methods of advertising distribution appeared, united by the common name "viral marketing".
Viral marketing - promotion of goods and services at the expense and by the forces of the target audience voluntarily (consciously or unconsciously) involved in the distribution of advertising content.
The audience of the largest social networks is measured by tens and even hundreds of millions of users, which allows to achieve the viral effect - the distribution of advertising content (message, photo or video) in a geometric progression . It is sufficient to implement the primary placement of such content through several seeding channels (popular sites, blogs, communities in social networks, etc.), and then it will spread through the network by the users themselves. For this, the advertising content should be distinguished either by high quality, or creativity and originality (funny or unexpected video storyline), or topicality.
Content that has these characteristics and wants to share is sometimes called a media player. A media player can be distributed consciously by users (for example, on social networks, users who have made a repost of a record, valuable prizes are played out) or unconsciously (the visitor YouTube may like it or outrage the video that he wants to send a link to it to his friends and acquaintances ). In this case, not always in viral content directly refers to the promoted product or brand.
Chocolate bar ROM is a traditional Romanian chocolate with a national flag on a wrapper, issued since 1964. The aging of a loyal audience and fashion for American brands among young people led to a reduction in market share and the weak recognition of the bar.
To restore ROM as one of Romania's favorite national symbols, it was decided not to oppose it to American brands, but temporarily join them. A provocative mediavirus was created: on the ROM package, the Romanian flag was replaced by an American one, after which videos and reports of changes and new positioning appeared on the Internet and a number of television and print media chocolate bar.
Due to the viral effect, 67% of Romanian citizens learned very soon about this action, a wave of indignation arose in the society and disputes arose about the correctness of such a step, including on the company's page in Facebook. Online petitions appeared on the Internet, and youth protest actions began to be organized on the streets. When the excitement reached its peak, a new series of videos was published, which reported that ROM again became Romanian, and played a hymn dedicated to its fans.
According to the authors of the campaign, it provoked the appearance of free publications worth more than 300 thousand euros. In just six days, 75 thousand unique visitors came to ROM ; the number of fans of the brand increased fourfold on Facebook. Sales of ROM grew by 20%, and the chocolate bar managed to shift Snickers from the position of the most beloved Romanian chocolate.
A relatively new trend in marketing should also include touch marketing and neuromarketing.Touch marketing is a set of marketing activities whose purpose is to manipulate the feelings and behavior of the consumer (increase sales, repeat purchases, etc.) by influencing various senses.
Touch marketing is often used to create a special perception of a brand or product by a consumer. In 99% of cases, communication between the consumer and the brand is based on the visual (logo, used colors) and sound (for example, the voice slogan) perception, but it is believed that visual images are sometimes perceived and remembered much better in combination with smells, flavors and even tactile sensations (use of materials that are pleasant to the touch for the manufacture of a product or its packaging).Often, smells can cause an appetite and a desire to buy something, but the use of specific flavors (this direction got its name - aromamarketing ) is relevant not only for food. Some brands of fashionable clothes deliberately spray branded fragrances in their outlets to emphasize their uniqueness. In addition, according to some studies, spraying a competently picked up aroma in the trading floor can increase the time of finding the buyer in the store and the number of spontaneous purchases, as well as the willingness of the buyer to spend a large amount of money. All this leads to an increase in the average check and the level of sales.
According to the results of an experiment conducted in one of the American clothing stores, spraying "feminine" aromas (for example, the smell of vanilla) instantly increased sales of women's clothing by half. A similar result was obtained for men's clothing when the fragrance of the Moroccan rose was used.
Observations also found that, for example, the basil smell dulls the willed qualities, which leads to an increase in the number of impulsive purchases, the smell of lemon reduces fatigue, eucalyptus - increases productivity (it is sometimes used in factories and offices), orange - reduces the feeling of pain (many drugs have this flavor), and the smells of chocolate and almonds cause appetite and are associated with the freshness of the product.
In an indissoluble relationship with touch marketing is neuromarketing.
Neuromarketing is a modern concept of marketing impact on the consumer, based on the research of his psychology and the reaction of the brain to various images and external stimuli.The founders of neuromarketing are experts of the Austrian company ShopConsuk, for a long time studying the neurological reactions of a person to external stimuli and the emotions associated with them. If you establish how and what the subconscious of the potential consumer reacts to, you can evoke the emotions he needs by integrating the necessary images into the advertising message, decorating the product or the interior of the trading floor.
To study the activity of various areas of the brain, expensive equipment is used - neuroscanners, which allow computerized tomography of the brain of each person from a formed group of representatives of the target audience. By changing the color of the picture on the screen, researchers can see which area of the brain is activated during the demonstration of the subjects various pictures and videos, playing music and smelling the smell. Another way to conduct such a study is to connect to the face and hands of test sensors that control sweating.
Neuromarketologists can relatively accurately assess the attractiveness and memorability, as well as the effectiveness of an advertisement in terms of motivating a person for certain actions, including making a purchase.
A number of experiments conducted in Austria, led to unexpected results. Thirty women were shown pictures with muscular men, animals, expensive cars, flowers, jewels and beautiful children. It turned out that it is the children's images with the greatest power that make a woman want to like and be more beautiful, what scientists associate with a maternal instinct. The results of this study were used in the Austrian cosmetics stores, where during the Christmas sale the shopping areas were decorated with photographs of children.
Interesting discoveries have been made about men. The image of a beautiful woman is effective in attracting male customers only between the ages of 17 and 40. For the older audience, it is much more effective to display status items: expensive cars, yachts, large country houses, etc.
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