Teenagers and Young Adults Are Changing Marketing Practices - Literature review Example

Teenagers and Young Adults Are Changing Marketing Practices Abstract: The marketers have realised the importance of teenage and young adults groups. In addition, they have identified that teenagers are among the innovators and early adopters of new products / brands, because they appreciate novelty, inventions and idea-generation. Also, customers from these groups have relatively better purchasing power and spending capacity so marketers would be advantaged if they target their products to these segments at initial stages of product life cycle. Nevertheless, the best medium to approach these ebullient customers is internet and online digital media because research has revealed that teenagers and young adults spend most of their time on internet and new media for information, product awareness, communication and socialisation. Hence, they should utilize these channels so that they could entice young customers towards their products. Literature Review http://www.calt.insead.edu/eis/icdt%20documents/icdt-emj-1.pdf The world has said to be entered in the era of globalization as there are no real boundaries and distances are contracted because of free flow of information and knowledge. Indeed, the advancements in information and communication technology (ICT), especially the arrival of internet, have facilitated networking and information sharing among people worldwide. For instance, this has not only benefited the trade and commerce but also provided new business and investment opportunities to entrepreneurs across the globe. Also, this has resulted in intense competition among the firms because new people / investors / firms regularly enter the corporate world, which ultimately benefit consumers in terms of greater variety and availability of choice. However, it is worthwhile to mention that this competition also put greater strain on marketing personnel, since they have been bombarded with various new responsibilities and duties to ensure survival, growth and sustainability of an enterprise. (Chan & Fang, 2007) Marketers have realized the fact that teenagers (under age bracket of 12 – 16 years) and young adults (16 + years) could be the most attractive and lucrative market segments; since they have relatively better purchasing power as well as inclination to acquire innovated products and accept ideas. Nevertheless, Spero and Stone (2004) argued that this segment was not provided sufficient channels, which they could use to express and share their ideas, values, aspirations and opinions with general public. In simple words, teenagers were not provided enough channels and forums that could be used as a platform for expression of concerns, recommendations and criticisms in the society. Indeed, the idea of using digital media and online communities on internet, finally, have fulfilled their (aforementioned groups) desire because they (now) have the opportunity and medium to discuss and share, whatever they belief, with their fellow mates, peers, coworkers, friends, relatives, general public and others etc. Marketers have identified this gap; therefore, they have been focusing to utilize digital media as an effective tool for marketing and advertising their products and brands. The research shows that this lucrative teenage segment spends greater time on blogging, face booking, chatting, You tube and surfing to not only communicate and entertain but also to increase their knowledge and awareness about world affairs, innovations and modern advancements (Kim et al, 2009). For instance, the time spent on electronic and print media is much lesser than time spent on internet, which today is easily accessible through Desktop PCs, laptops, Personal Digital Assistants (PDAs), IPhones, cellular or mobile phones etc. The mobile computing and use of internet applications via cell phone has increased considerably over the years, which was further facilitated by Apple that produced and marketed Ipods, Ipads, Iphones etc. It is, indeed, justified to argue that such mobile and computing devices first entice teenagers because they are among the early adopters and endorsers of innovations (Chan & fang, 2007); (Spero & Stone, 2004) However, Spero and Stone (2004) has also highlighted that this ‘early adopters argument’ should not be confused and misunderstood as teenagers do support new ideas but not every single product, service or experience. For instance, marketers have to make rational decisions in deciding what exactly to be offered to the teenage segment after comprehensive research and analysis. To explain the above mentioned argument, it should be pointed out that teenagers also have different perceptions, attitudes and behaviors towards certain elements that influence and shape their consumption pattern and purchase decisions. Indeed, they also tend to learn from environment and experiences in the external, which assist them in identifying the difference between needs and desires coupled with emotional attachment and utility they are going to receive from acquisition of new products after monetary spending. The internal thought processes later affect decision – making and trigger purchase responses. (Andreasen, 2002) The next major argument raised by Spero and Stone (2004) was marketers could make a brand successful and widely acceptable among teenagers and young adults if they enhance advertising and awareness through use of online digital media. Indeed, other proponents of social networking through online communities (including Orkut, Face Book, Twitter, My Space, LinkedIn and You Tube) have also endorsed this idea that they media should be utilized for commercial purposes and brand recognition. Second, there is dire need to foster emotional attachment of teenagers with a particular brand, because the probability that a teenager would purchase a particular brand will increase if he or she relates to that product. Indeed, the professionals could use digital media resources to let teenagers interact and discuss about a chosen good or service, because peer pressure and advices play a vital role in persuading these potential consumers to basket various brands. For instance, the marketing personnel could use new marketing techniques such as SMS- or email marketing to inform consumers about new market offerings, available discounts, prices, deals and promotions etc. (Stead et al, 2007) It is worthwhile to pinpoint that the use of Management Information Systems has been constantly increasing, which has enhanced the scope and figures of online reservations and e – transactions followed by an increase in percentage of teenagers who consult internet resources before physical acquisition from retail stores. Nonetheless, the marketers and industry analysts have been expecting that scope of online transactions will increase further if teenagers are provided appropriate payments facilities (credit, visa and debit card in general) options through an efficient, secure, faster and reliable online payment system. In addition, it should be emphasised that teenagers and young adults will remain the most attractive market segment because they would transform themselves in mature adults and groups with the passage of time. Also, they would forward their thinking, experiences, opinions and understanding about use of digital media resources to their next generations, which would obviously result in phenomenal growth of internet and viral marketing / advertising. (Hastings, 2001) On the flip side, it should also be pinpointed that the strategy would result in sustainable development only if it is secure and reliable. The privacy of personal information and confidentiality are essential followed quality maintenance and improvements. If safety and security of information is not ensured, then the digital media resources would be used for awareness and information but not for frequent online purchases. Because, consumers might shift back to physical acquisitions, which would obviously impact the real objective growth of internet marketing. References: Spero, I. & Stone, M. (2004) “Agents of change: how young customers are changing the world of marketing” Qualitative Market Research: An International Journal. Volume 7; No. 2, pp. 153-159 Andreasen, Alan (2002) “Marketing Social Marketing in the Social Change Marketplace” Journal of Public Policy & Marketing, Vol. 21 (1), 3–13 [Online] Available at http://public.kenan-flagler.unc.edu/courses/mba/mba260e/Andreasen_JPPM.pdf Hastings, Gerard (2001) “Relational Paradigms in Social Marketing” Journal of Macromarketing [Online] Available at http://www.social-marketing.org/conference_readings/journal_of_micromarketing.pdf Stead, M., Hastings, G. and McDermott, L. (2007), The meaning, effectiveness and future of social marketing. Obesity Reviews, 8: 189–193 [Online] Available at http://onlinelibrary.wiley.com/doi/10.1111/j.1467-789X.2007.00340.x/pdf Reibstein, David (2002) “What Attracts Customers to Online Stores, and What Keeps Them Coming Back?”Journal of the Academy of Marketing Science; 30; 465 [Online] Available at http://www.bus.ucf.edu/rcascio/student/mar3721/Reibstein.%20What%20attracts%20customers%20to%20online%20stores,%20and%20what%20keeps%20them%20coming%20back.pdf Kim, Young, Hee Song and Soung Kim (2009) “A new marketing strategy map for direct marketing” Elsevier, Volume 22, Issue 5, Pages 327-335 Chan, K. and Fang, W. (2007) Use of Internet and traditional media among young people, Young Consumers, 8(4), 244-256 Waldt, Van, T. Rebello and W. Brown (2009) “Attitudes of young consumers towards SMS advertising” African Journal of Business Management Vol.3 (9), pp. 444-452, [Online] Available at https://www.up.ac.za/dspace/bitstream/2263/11605/1/VanDerWalt_Attitudes%282009%29.pdf Lee, Richard & Jamie Murphy “The Moderating Influence of Enjoyment on Customer Loyalty” Australasian Marketing Journal 16 (2), 2008 [Online] Available at http://web.biz.uwa.edu.au/staff/jmurphy/The%20Moderating%20Influence%20of%20Enjoyment.pdf Kitchen, Philip, I. Kim, Don Schultz (2008) “Integrated Marketing Communication: Practice Leads Theory” Journal of Advertising Research pp. 531-546 [Online] Available at http://agora-imc.com/images/IMC_Practice_Leads_to_Theory.pdf Read More