Contemporary Issues in Marketing and Management - Essay Example

Contemporary Issues in Marketing and Management of Executive summary The report is directed towards analysing the impact of social media on the toys and games industry. It will critically synthesise the role of social media incorporating the contemporary concepts of the toys and games industry. The report will focus at the trends and statistics of the toys and games industry and the advantage and disadvantages the sector is undergoing on the social media marketing. The effects of the social media on the toys and games industry will also be discussed providing evident that the industry gains more popularity because of the social media marketing. The global patterns of toys and games industry will be highlighted giving various regions where the industry is similar and where it differs. Finally, valid recommendations will be provided that suggests the areas that improvements can be made on the industry and by which means. This part will involve the proposals for implementing the games and toys industry about social media marketing theories, strategies and appropriate business models. The report will include a personal reflection section that will include the point of view of the toys and games industry. Introduction The report will start by describing and introducing social media marketing in relation to the toys and games industry. The report will then utilize significant models and strategies to give a detailed analysis of the toys and games industry. A brief history of the pattern of social media marketing and the toys and games industry will be provided to enhance the knowledge about the traditional models versus new models of toys and games markets. In addition, the impact of the social media on the industry will be essential to focus on the feasibility of the theme to the industry. After this synthesis, the report will come up with an appropriate approach providing suggestions aligned to social media marketing and the pattern and trend of the development of toys and games industry in the current world. The challenges of the social media in the toys and games industry will be analyzed alongside a personal reflection point of view at the end of the report. Project 1 Social media marketing Social media marketing involves attracting attention of products or company through social media. The huge competition among companies in the toys and games industry has resulted in the need for advertising in online sites, making sales and gaining feedback from potential customers (Foo, 2013). The emerging theme allows a company to create innovative web content that is catchy to the people visiting their sites such as facebook, linkedn and twitter (Trattner, 2013). The most attractive sites gain website traffic as a result of consumers visiting the page and recommending it to their friends. Some consumers might share the content on their social network sites in the form of links. Thus, the message about a product, brand, event or company is transferred from one consumer to another. The company with the highest website traffic in the toy and game industry will conduct its marketing activities with minimal expenses since users share the content through the internet and attract other consumers (Report, 2014). In the toys and games industry electronic gadgets play a significant role in enhancing the accessibility and installation of the games application. The users may gain information through the internet and try out the games by downloading the application, which results in online sales (ECSIP, 2013). Play time is an essential component of a childs development and growth. Thus, toys and games become part of their upbringing. The kids will request their parents for items that they have heard off either through their friends or advertising. The adverts could be on local television channels, newspapers or magazines (Horovitz, 2006). Once the parents are informed of the toys and games, they gain interest to look up the products in online sites. The online sites are easily accessible and provide essential product details such as price, durability, size and discounts. Therefore, companies in the toy and games industry need to invest in social media marketing with attractive content and consumer friendly features. The companies can open up avenues for interacting with potential customers through social channels. Social media marketing may allow a company to gauge the loyalty of its followers and capture important customer information that will help in improving its products. The viewers of the web content get an opportunity to give their opinions concerning a product and suggest ideas on the development of additional service. Also, visitors to the companys online sites can read and review the available comments made by previous users (Kerr, 2012). These comments may portray satisfaction with the companys toys and games. The rising demand for smartphones is providing a constant connection between the users and companies. Varieties of mobile phones are internet enabled and thus allow seeking of product information at the users convenience. The toy and gaming industry has introduced mobile gaming to increase its chances of sales (Leaver, 2012). Consumers can easily update the games application on their mobile devices and download new games. Patterns of the toys and games industry The contemporary toys and games industry is on the rise as a result of technological advancements and crucial activities of social media marketing (NDP, 2014). However, the traditional games and toys are still a source of stiff competition. For instance, in 2011, the sales of traditional toys and games reached €58 billion (Tansel, 2011). The largest toy markets in the European market are United Kingdom, Germany, France, Spain and Italy. The global sales of toys and games totalled $85 billion with major markets being UK, U.S, Germany and France. The U.S revenue for toys and games manufacturing is estimated to be $2 billion every year (Chiang, 2011). Some of the key toys and games manufacturing companies include Mattel, Hasbro, Namco, Sanrio, Bandai, Steif, and Nintendo among others. The patterns of the toys and games decreased at the beginning of 2000 but later the growth was observed after a few years (Kline, 2005). The toys and games market in the United States was faced with problems of growth in 2001 and 2002. The global toys and games industry was hit by yet another market issue because of the financial and economic recession in 2008 and 2009 (Trattner, 2013). The global patterns project that the toys and games industry will continue to increase due to the inception of social media marketing to the industry. The European toys and games markets are speculated to experience considerable growth of 28% compared to 8% of China and 24% of U.S industries by 2016. Among the top most demanded toys and games in EU markets included the outdoor and sports toys, dolls and accessories, construction toys, infant and preschool toys and games and puzzles. In the U.S dolls and accessories are the most demanded toys and games while, in Chinese markets, the plush toys is the single most demanded category (Hong, 2013). The sales pattern of the toys and games in the global markets is changing because of technological advancements. The development of social media marketing has helped raise both retail and wholesale sales (Koichi, 2009). The retail channels of distribution have been effective in the European markets since 2011. The traditional display outlets in the retail shops made most of the sales (Hong, 2013). Nevertheless, the online marketing strategy in the toy and games industry is growing in a swift way. The trends of social media marketing have increased the total shares and sale in many countries (Deis, 2010). Currently, most of the retail chains have adopted the e-tailing approach where websites for sales have been developed. In addition, the manufacturers of toys and games have opted to selling via specialized social media methods such as through the Amazon (Walsh, 2005). A social media marketing strategy is even more appropriate for incoming small toys and games manufacturers who usually face obstacles in getting a shelf space in the native retail channels. However, the e-commerce helps them to find their way in the huge toys and games markets in the international levels. Research has proved that the Small and Medium Enterprises are gaining a lot from the social media marketing and that the platform is helping them to make quick and large sales due to increased exposure to customers (Smith, 2004). The online method of marketing is the ideal for many customers and retailers because of the attractive lower prices of the toys and games as compared to the traditional retail outlets. The prices are usually lower in the social media marketing because the many costs of logistics are reduced giving room for profit margins. Also, the current rising global patterns of social media marketing are becoming an essential tool for many retailers for higher profits shares (Kotler, 2006). For example, the toys and games sales in relation to social media marketing show rising trends in U.K, France, Germany, Spain and Italy from 2000 to 2012 (David, 2014). Impact of social media marketing on toys and games The social media marketing in the toys and games industry is on the increase as competition and innovation become more sophisticated. The growth of the industry is perpetuated by increase in children population, product innovation and personal income (Clow, 2007). The major product divisions in the market include the electronic toys and games, non-electronic toys and games, childrens vehicles and non-electronic games and puzzles. The internet technology has made marketing easier and cheaper compared to the traditional methods. The social media marketing has enhanced use of models such as the 4ps marketing theory where product, place, promotion and price are provided in real time via social media tools. Other strategies such as the pull and push strategies are also enhanced as they help in advertising the products to a wide target market within a short time (Olthuis, 2006). The major challenges of the social media marketing in the toys and games industry include rising competition from electronic entertainment, regular changing target markets as children mature faster, highly fragmented markets, potential channel conflicts, seasonal cash flows and short life cycle of toys (Alexander, 2012). Further, the social media marketing faces the challenges of currency fluctuations, inflow of counterfeit products, and high frequency of product recall (Kincy, 2011). The toys and games marketing on social media provide an organization with a cheaper way of connecting with consumers. However, several disadvantages were observed that derailed the use of this marketing strategy (David, 2014). Some of the common disadvantages include regular loss of confidential information, too much sharing of information by employees in public forums and exposure to litigation. For instance, in 2010, a survey on the impact of social media was conducted in 33 countries on 1225 IT executives and proved that a total of $4.3 million was lost via social media transactions (David, 2014). Recommended strategy Companies in the toys and games industry should consider optimizing their search engines. The search engine optimization (SEO) strategy will ensure that the specifications of products are always available when a user visits online sites relating to games and toys. The toys and games industry is witnessing much competition due to the increased innovation in the manufacture and creation of new products (ECSIP, 2013). The consumers are flooding the online sites in search of new and more sophisticated products and potential consumers are likely to select the company with the highest ranking and reputation (ZOG, 2012). Therefore, search engine optimization is handy in ensuring visibility of the companys products. Project 2 Personal reflection Over the years, various investments have been made in games and toys industry. Toys and games used to be associated with young children and sometimes teens but nowadays adults are having fun with products from the industry. There are rising figures of adults who have chosen to utilize their leisure time playing games. Technological innovations have made a significant role in developing products, in the toy and games industry. For instance, mobile phones have game application software, in which consumers subscribe to games of their choice. Mobile and computer are enabled with features that allow the updating of the software. Frequent changes in customer tastes have influenced the industry to utilize technological advancement in the industry. Sales from products from the games and toys industry mainly occur during the festive seasons and school holidays. The need for play results in increased demand for new toys and innovative games when the schools close. The stage of a developing child may influence the choice of games n toys to be purchased. Some of the games are complex and requires much mental concentration that young children have difficulties tackling due to their cognitive development. Peoples expectations for festive gifts in the form of games and toys have influenced the growth of the industry. Social networking sites are important in connecting companies with potential customers through social media marketing (Chaffey, D., 2013). However, internet security needs improvement to prevent hacking of the companys online site and change of web content. Thus, users can gain trust in the information available in these sites and make purchases. Conclusion The toys and games industry will keep on improving due to the technological advancement and innovations. The social media marketing is a significant element in the success of the toys and games industry as it plays a key role in advertising, distribution and partnerships. The industry is facing various challenges that hinder its speedy growth; they include inflow on counterfeit products, short lifespan of toys, currency fluctuation and faster maturity rates of the children (Valkenburg, 2001). However, with improved internet security the social media marketing activities will drive the industry to higher levels. References Horovitz, 2006. Six Strategies that Marketers utilise to get kids to want the stuff. Retrieved from usatoday30.usatoday.com/money/advertising/2006-11-21-toy-strategies-usa_x.htm?csp=34 on 5th May, 2014 Leaver, K., 2012, Mobile gaming market. Retrieved from www.slideshare.net/kenleaver/mobile-gaming-mrket-2013 on 5th May, 2014 Report Linker, 2014, Toy and Game Industry: Market Research Reports, Statistics and Analysis. Retrieved from www.reportlinker.com/ci02218/Toy-and-Game.html on 5th may, 2014 Kerr, G., 2012, Buy, boycott or blog. 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