Promotional campaigns and consumers behavior - Essay Example

? Promotional campaigns and consumer’s behavior Introduction Currently, marketing creativity is focused on the study and analysis of consumer’s buying behavior. On the one hand, promotional campaigns that we can see every day may seem to us an ordinary event. In reality, there is a need to cover numerous and diverse issues for marketers in order to satisfy the needs of the customers and make them buy a certain product. One may think that it is hardly realistic that a consumer may be influenced by some special strategies and appeal to: psychology of customers (the way they think; the way the customer is influenced by his environment); the behavior of customers in the process of shopping; the value of products and a real value of a certain product for the customers and many other factors (Alba and Hutchinson, 1987). Basically, there is a need for marketers to conduct a study of “individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society" (Mullen and Johnson 1990, p. 18). Theoretical overview Basically, in order to give an exact answer to the question ‘why promotional campaigns should take into account consumer’s behavior’, it is relevant to refer to the theoretical background of consumer’s psychology. Starting from 70s, scientists and researchers have underlined that consumer’s behavior is greatly influenced by their family members. It was a period when occupation, social status and personal interests of consumers have been determined as decisive actors in their consumer’s behavior. A comprehensive model of buyer’s behavior was studied as the framework for further development of promotional campaigns and marketing strategies (Engel et al 1968, Howard & Sheth 1969 and others). In 80s a framework of buyer’s behavior study was changed. A natural progression in the field substituted a comprehensive model of buyer’s behavior. A shift to natural progression in the field can be explained in the following way: “consumer behavior is too complex to be meaningfully captured in a single model. Consumer psychology involves most of the elements of human psychology, which cannot be meaningfully represented in any single model or theory” (Tetlock, 1998). Moreover, a complicated nature of a comprehensive buyer’s behavior model is often considered to be inefficient in predicting consumer’s behavior in the future do to its complicated nature. There are two main approaches to the study of consumer’s behavior: the Behavioral Decision Theory and Social-Cognition Approaches to Consumer Research. Both these strategies are based on customer’s perception of a product and an intention to buy it in his consciousness (Alba and Hutchinson, 1987). Daniel Kahneman and Amos Tversky are representatives of BDT approach to the study of consumer’s behavior. Consumer’s choice is the main objective of the scientists’ researches. A practical aspect In order to practically implement a theoretical knowledge about a consumer’s choice which is shaped under the influence of his consciousness, the promotional campaigns are developed with regard to the mental and social peculiarities, economical and many other factors of the target group (Holbrook, 1999). For example, it is rather hard to promote products of daily consumption. There are a lot of different producers and very often a consumer’s choice can be easily changed. “A Cup of Instant Culture” is a slogan created by Maxwell Coffee in previous years. In XXI century drinking coffee is an integral part of an individual’s image (Aaker, J.L., 1997). For example, if advertising campaign shows a smiling business woman or business man who drinks coffee, the consumers people in their consciousness would perceive this ad as exemplifying two concepts ‘success’ and ‘coffee’ as interrelated ones (Gerritt, 1999). In the modern world we often see exotic advertising of coffee. Coffee drinking is a sophisticated process, or a real culture for appreciators of the perfect taste. Factors influencing on customer’s behavior In order to develop a successful marketing behavior influencing on consumer’s behavior it is relevant for marketers to deal with the main challenge for marketers, i. e. customers’ differences in age, culture, social state and different psychological factors. Therefore “the basic characteristics to be considered are: cultural, social, personal, and psychological factors” (Aaker, D., Keller, K., 1990). The most challenging for marketers are cultural factors influencing on customer’s behavior. Person’s behavior is shaped in accordance with stereotypes and values relevant to his culture. Of course, there are common values for different cultures, such as propagation of striving for success, active participation in the life of a society, material comfort, freedom, youth and health (Cooper, 2006). Misunderstanding or misinterpretation of cultural values was hard for American advertising company in Taiwan. Participants of promotional campaign in Taiwan wore green caps. As it was the period of elections a color of opposition party was also green. Moreover, in Taiwan culture green color signifies that a wife of a husband is unfaithful. Therefore extreme differences between Taiwanese and American cultures resulted in a failure of a promotional campaign (Cooper, 2006). Subculture comprises groups of people with shared values. Thus marketers have to develop their promotional campaigns with regard to the needs of every subculture. Social classes are also important for marketers. These social divisions shouldn’t be treated only with regard to their salaries. Levels of education, occupation, education etc are relevant to the marketers (Aaker, D., Keller, K., 1990). Family members influence on consumer’s buying behavior is also important for marketers. For example, some promotional campaigns are directed on spouses (e.g. perfumes, shampoos etc). Shifts of accents of equal interest in products make marketers change their strategies. Thus, “car designers at Cadillac are going about their work with paper clips on their fingers to simulate what it feels like to operate buttons, knobs, and other interior features with longer fingernails” (Behavior Patterns in Childhood, 2001). Moreover, children in families often determine buying behaviors of their parents. Parents try to buy product convenient for their children. For example, children influence on a decision whether to buy a car or not. Children are aware of and interested in brands (Aaker, 1990). Thus advertising campaigns of cars are also directed on children. Psychological factors are also important in making buyer’s decisions. Thus motivation, perception, learning, beliefs and attitudes are integrative determinants of a buyer’s choice. Psychologists appeal to the studies of the well-known scientists, Maslow and Freud. The theory of motivation by Maslow comprises the following important aspects: satisfaction of physiological, safety, social, esteems and self-actualization needs are the important factors for every individual.  In other words, “starving people (physiological need) will not take an interest in the latest happenings in the art world (self-actualization needs), nor in how they are seen or esteemed by others (social or esteem needs), nor even in whether they are breathing clean air (safety needs)” (Tetlock, 1998). Stages of consumer’s involvement in the buying process A complex buying behavior of consumers occurs if a consumer is highly involved in a product purchasing and differs between brands. Promotional campaigns for that kind of products should be well-developed and the customer should be aware of the available information about the product. The main objective of a promotional campaign is to develop "a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC). Advertising campaigns appear in different media across a specific time frame” (Soares 1991, p. 32). Key words are crucial for further formation of a customer’s buying behavior. For example, if a company promotes an EBook there are possible ways to attract customers: there are special citations and words. If the title of the book is "How to earn money working from home" it is possible to promote it in the following way: "New EBook - How to earn money working from home" or "Read this EBook - How to earn money working from home" (Consumer behavior). Therefore keywords in online promotional campaigns are very important. They should be the words that help a product to stand out from the crowd (Consumer behavior). Of course, the above-mentioned example describes possible promotional campaign for online trading. If to consider development of promotional campaigns, it is necessary to consider typical types of buying behavior. First type is a complex buying behavior, in case when the choice of a consumer is dictated by his attraction to a certain brand. Habitual buying behavior refers to a consumer whose choice is caused by his buying of daily products, i.e. ordinary purchasing of product required daily. Variety seeking buying behavior implies a consumer’s desire to experiment with different products and shops. Dissonance reducing buying behavior implies a high involvement in the purchase of a product where brand doesn’t matter. Consequently, promotional campaigns should be developed with regard of the expected type of consumer’s buying behavior (Consumer Behavior). Effective promotional campaigns development Promotional campaigns are basically directed on the final goal: the consumers should buy a product that is advertised. Nevertheless, in order to buy a certain product it is necessary to make information about a product available for the target consumers. Thus, it is necessary for marketers to inform, educate and persuade the customers about a certain product. That is why companies spend great sums of money for promotional campaigns, because it is a right way to minds and wallets of the customers (Consumer Behavior). Communication as the most important aspect of promotional campaigns should be greatly observed by the marketers. Of course, communication shouldn’t be too aggressive and customers should feel like they made their choice voluntarily with no oppression. Prior to choice of media available for marketing campaigns, evaluation and monitoring of target consumer’s audience should be conducted. On the stage of strategy development there is a need to study the abovementioned types of consumer’s behaviors, psychological, social and other factors influencing on a consumer’s choice (Consumer Behavior). The following examples of promotional campaigns should be considered. A certain brand is promoted in advertising campaigns. Company’s slogan or logo is usually included and clearly seen in any product. In order to make promotional campaigns more effective, a company uses gifts (More Responsible Consumer Behavior, 2010). With regard to a potential recipient, a gift may be a lighter, a chain, a t-shirt etc. Corporate gifts are also relevant to promotional campaigns. Moreover, involvement of celebrities in promotional campaigns is a perfect move. As they walk with products of a certain company, their bags etc, they are usually photographed or shown on TV (Consumer Behavior). Still, marketing departments are puzzled and think about the data mining. This concept is discussed by David Bullock, “a managing director of White Bullock Group in Carson City, Nevada. “Data mining implies a market response analysis that helps small companies and large corporations to gain greater profits and reduce costs. This analysis is based on predictions of consumer’s behavior. For example, a data mining technique called the Taguchi method analyzing the key variables in the sales process” (Donaldson, 2007). A global consumer’s behavior: a new challenge for marketers Under conditions of global development in the market and the global economic crisis, marketing strategies of international campaigns should be focused on psychological factors, social and economical aspects of consumer’s behavior formation with regard to the mentioned external factors. In case the international company lacks information about peculiarities of consumer’s behavior abroad (i.e. consumer behavior flexibility), it may suffer a great losses (like in case of American promotional campaign in Taiwan). It is relevant for the countries with giant scope of exports, such as China, to be oriented on the behavior of a middle-class consumer. Luxurious consumers have decreased their interests in the expensive products (Antonides, 1999). There is a great world’s demand for products of daily consumption or products of a medium price. Simultaneously consumers want to satisfy their consumer needs because this is an integral part of “of a mature personality" (Tetlock, 1998). Currently, consumer’s behavior should be considered in the following paradigm: “lifestyle in which the quest for truth, beauty, goodness, and communion with others for the sake of common growth are the factors which determine consumer choices, savings, and investments" (Hwan 2003, p. 179). Conclusion The subject of marketing creativity is concentrated mainly on the study and analysis of consumer’s buying behavior. On the one hand, promotional campaigns that we observe every day may seem to us an ordinary event. Actually, there is a necessity to cover many and diverse issues for marketers in order to satisfy the needs of the customers and make them buy a certain product. In order to give an exact answer to the question ‘why promotional campaigns should take into account consumer’s behavior’, it is essential to consider the theoretical background of consumer’s psychology. The issues of consumer’s behavior, the way consumers make their choices and the relation of these issues to the development of promotional campaigns is rather a complicated study (Aaker, D., Keller, K., 1990). There are different approaches to definition of consumer’s behavior, to the ways external and internal factors influence a consumer’s choice. There are two main approaches to the study of consumer’s behavior: the Behavioral Decision Theory and Social-Cognition Approaches to Consumer Research. The most challenging for marketers are cultural factors influencing on customer’s behavior. The conclusion made in this study is that paradigm of consumer’s behavior and choice in the modern world should be considered on the background of the globalization processes. Thus a consumer’s behavior is currently focused not only on satisfaction of his consumer’s needs, but on consumerism as an integral part of a modern individual’s image. References 1. Aaker, D., Keller, K., 1990. Consumer evaluations of brand extensions. J. Mark. (54): pp. 27-41 2. Aaker, J.L., 1997. Dimensions of brand personality. J. Mark. Res. (34): pp. 347-56. 3. Alba J, Hutchinson W., 1987. Dimensions of consumer expertise. J. Consum. Res. (13): pp. 411-45 4. Antonides, Gerrit and W. Fred Van Raaij, eds, 1999. Cases in Consumer Behaviour. 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