Marketing and the Paradigms of Current Interaction with Potential Consumers - Coursework Example

Section/# Marketing and the Paradigms of Current Interaction with Potential Consumers: An Examination of Three Distinct Approaches and Their Applications Introduction: Online marketing is a broad descriptive term that helps to define any and all types of online advertising or Internet advertising. Over the past several decades, a noted shift has taken place with regards to the way in which products or services are represented to the consumer (Yadov & Pavlou, 2014). Ultimately, even within traditional television advertising, it is not uncommon to hear an advertiser state or display a link to follow the product or service on Twitter or Facebook. More often than not, regardless of the product or service that is being promoted within the traditional format of advertising, it is also not uncommon to see the advertiser promote the website and encourage the potential consumer to visit as a means of gaining further information with regards to the product. However, each of these approaches are only part of online marketing or Internet advertising. Ultimately, Internet advertising and online marketing is concentric upon providing web banners, mobile advertising within applications, ad servers, or other promotional marketing messages their delivered through websites that are not otherwise associated with the particular good/product/service that is being offered (Lambrecht & Tucker, 2013). Definitions and Dynamics: From the brief list that is been provided above, it can definitively be noted that online advertising is a very broad sector that allows for an organization/firm/entity to direct their message to a specific demographic in a way that traditional advertising did not allow. For instance, if a particular company is attempting to market specifically towards individuals within a younger demographic, they will most likely target their online advertising to appear on websites that are frequented by individuals within this younger demographic. By means of comparison, if an older demographic is targeted, websites relating to products or services that individuals within this older demographic readily consume will be placed. One of the unique aspects of online marketing has to do with the fact that the advertiser can generate unique statistics with regards to the overall impact of the particular marketing tactic. For instance, as compared to a print advertisement or a form of marketing that is predicated upon blindly targeting a wide spectrum of the population, these specific level of engagement that can be had with regards to online marketing also allows for the marketer to generate unique usage statistics, click percentages, and the amount of time that individuals is viewing a particular page (Schulze et al., 2014). Although these metrics might not seem as if they are relevant to be further delineation of marketing, fact of the matter is that the firms were responsible for purchasing this ad space can then review the statistics as a means of putting forward a more active and honed campaign in the future. Currently, as the overall amount of time that individual spends reading a newspaper and/or watching television tends to be relatively static, the overall amount of time that is spent online and on web enabled devices has drastically increased over the past several years (Valos e al, 2010). Consequently, the level of focus that advertisers placed upon seeking to integrate with online marketing as a means of engaging the consumer gains a degree of further relevance. Further, it is without question that the field of marketing is extraordinarily broad. As such, different approaches/paradigms are oftentimes utilized as a means of integrating key products or services with a specific group of individuals (Gabriel & Lang, 1995). In order to understand this approach to a more effective and complete degree, the following analysis will focus upon some of the paradigms that are commonly used within the realm of marketing; specifically focused upon the paradigm of data-driven marketing, online marketing (to include social media), and shock advertising (Jackson & Wood, 2013). Through such an examination, it is the hope of this author that the reader will come to a more informed understanding with respect to the way in which different paradigms are utilized as a means of engaging and compelling the would-be consumer to a point of action. Social Media Paradigm: Firstly, online marketing is a broad descriptive term that helps to define any and all types of online advertising or Internet advertising (Achrol & Kotler, 2012). Over the past several decades, a noted shift has taken place with regards to the way in which products or services are represented to the consumer (Ritzer, 2001). Ultimately, even within traditional television advertising, it is not uncommon to hear an advertiser state or display a link to follow the product or service on Twitter or Facebook. More often than not, regardless of the product or service that is being promoted within the traditional format of advertising, it is also not uncommon to see the advertiser promote the website and encourage the potential consumer to visit as a means of gaining further information with regards to the product (Marsden & Littler, 2006). However, each of these approaches are only part of online marketing or Internet advertising. Ultimately, Internet advertising and online marketing is concentric upon providing web banners, mobile advertising within applications, ad servers, or other promotional marketing messages their delivered through websites that are not otherwise associated with the particular good/product/service that is being offered (Trif, 2012). Internet Marketing Beyond Social Media: From the brief list that is been provided above, it can definitively be noted that online advertising is a very broad sector that allows for an organization/firm/entity to direct their message to a specific demographic in a way that traditional advertising did not allow (Deshpande, 2013). For instance, if a particular company is attempting to market specifically towards individuals within a younger demographic, they will most likely target their online advertising to appear on websites that are frequented by individuals within this younger demographic (Salzberger & Koller, 2013). By means of comparison, if an older demographic is targeted, websites relating to products or services that individuals within this older demographic readily consume will be placed. One of the unique aspects of online marketing has to do with the fact that the advertiser can generate unique statistics with regards to the overall impact of the particular marketing tactic (Pine & Gilmore, 1999). For instance, as compared to a print advertisement or a form of marketing that is predicated upon blindly targeting a wide spectrum of the population, these specific level of engagement that can be had with regards to online marketing also allows for the marketer to generate unique usage statistics, click percentages, and the amount of time that individuals is viewing a particular page (Crowther & Donlan, 2011). Although these metrics might not seem as if they are relevant to be further delineation of marketing, fact of the matter is that the firms were responsible for purchasing this ad space can then review the statistics as a means of putting forward a more active and honed campaign in the future (Klein, 2001). Currently, as the overall amount of time that individual spends reading a newspaper and/or watching television tends to be relatively static, the overall amount of time that is spent online and on web enabled devices has drastically increased over the past several years. Consequently, the level of focus that advertisers placed upon seeking to integrate with online marketing as a means of engaging the consumer gains a degree of further relevance (Brodie et al., 2007). The Paradigm and Importance of SEO: Similarly, one of the fundamental shifts that has taken place over the past several years is with respect to the impact and manner through which search engine optimization is able to field a further level of more effective marketing towards the potential consumer (Marsden & Littler, 2006). This approach underscores the way in which data driven marketing is utilized in order to present certain products or services directly to the consumer. Naturally, this process in and of itself represents a litany of best practices and can be understood based upon a variety of different metrics. Normally, search engine optimization is centered around a local search framework. Ultimately, the actual search terms that are most likely to be used with regards to the product offered have been utilized as the sole determinant of constructing these localized SEO parameters (Bush et al., 2007). From a cursory overview, it is patently obvious that SEO is oftentimes not been engaged to a proper degree as websites does not accrue a high ranking on the pages returned even for the terms that can be considered as key words for a local search (Harker & Egan, 2006). With respect to the way in which the individual or the firm should integrate with the information that has thus far been presented, it must be understood that the zeitgeist of the era demands a closer attention is paid to mobile computing and the manner in which it can be utilized to garner further levels of profitability for the industry/business in question (Slater, 1997). From the personal standpoint, little if anything has changed with regards to communication over the mobile platform in the past 5-10 years (Baumgartner & Steenkamp, 2006). Once mobile devices became internet enabled and were functionally able to send emails/MMS messages as well as search the web, few innovations have come along to shift the dynamic of personal communication. However, with that being said, it must be understood that the greatest shift that has been felt with regards to mobile computing has been with respect to the way in which businesses seek to leverage these platforms as a means of reaching out to the consumer. One need look no further than a major car manufacturer’s television advertisement to note the Twitter and/or Facebook symbols at the bottom as the salesman makes a plea for the viewer to follow them on social media. This of course is merely evidence of the pervasive level to which mobile technology has integrated with the world and promises to shift the technological evolution of the current era in much the same way that PCs did during the late 1980s and early 1990s (Saren et al. 2007). Research in Action: The Case of Amazon: Like many firms today that have grown up and differentiated themselves during the turbulent past few years, Amazon’s success story is not dependent up on a single strategy or even a single business model. Rather, the success of the firm can be attributed to the fact that the firm has continually worked to grow and stratify its interests as profitability has increased. Rather than simply being satisfied with the fact that the products and services that they offer resonate well the customer base, the firm has actively worked to seek out new investments and opportunities which can transform and help the company to evolve in a way that will differentiate its holdings as well as provide a higher utility for its users. Although the firm has sought to stratify its interests, the way in which the firm has accomplished this is unique. One of the first steps that helped to set Amazon apart from the competition was the fact that it actively sought to interact with its customer base. This was employed by seeking consumer feedback as a way to suggest additional product offerings that might satisfy their needs. Although it seems obvious, another helpful factor was the extraordinarily simple yet effective business model of providing books to customers at lower costs than traditional brick and mortar companies could. Although these factors helped Amazon to grow, this growth and expansion has not always been painless. Amazon attempted unsuccessfully to break into Ebay’s online bidding monopoly by negotiating a failed endeavor with Sotheby’s auction house. A further strategy that Amazon has exhibited is to directly negotiate with book publishers as a means of obtaining the books at a discount due to overall bulk purchase. Similarly, the company has sought to open warehouses around the country to increase stock and limit amount of time to shipping fulfillment as well as work to ameliorate the costs of overall shipment that Amazon would have to pass on to the customer. These advantages, as well as being first in the market, have meant that it has been very difficult for competitors to break into Amazon’s profit margins or customer base. Interestingly, rather than viewing all brick and mortar stores as enemies, Amazon has forged alliances with such stores as Toys R Us and Target as a means to have online purchases that can be directly picked in store (Jones 2012). Of course one would be remiss to discuss Amazon’s overall success and strategy without mentioning their diversification into the personal electronics market with their Kindle and Kindle Fire e-book readers. These have specifically helped Amazon to make a firm linkage between the physical products that are available on their website and the services and e-content available for download. Furthermore, the way in which Amazon has sought to expand globally by leveraging its unique IT skills is yet another example of how the firm has sought to grow and expand at each and every opportunity. In short, there is no single identifying component to Amazon’s success unless one considers this to be the fact that the firm seeks to consistently differentiate its offerings and penetration into new, developing, and existing markets. Research in Action: The Case of Red Bull Starting out as a little known entrant in the beverage market over 25 years ago, Red Bull has since come to be a prominent player; earning a yearly revenue in excess of 6.5 million dollars. However, red bull did not achieve the runaway level of success that has been denoted within the past several years overnight. Instead, careful decision-making and a nation is advertising and marketing campaign has ensured that the brand continues to gain popularity and generate profits. Yet, this particular analysis will not focus on the overall success for popularity that red bull has been able to achieve. Instead, the analysis will be concentric upon discussing and analyzing the way in which this particular beverage brand has leverage social media and online advertising mechanism for this continued growth. Although many other brands could have been chosen for analysis, Red Bull was selected due to the fact that this particular company had previously leverage low-cost alternatives to expensive forms of advertising; thereby positioning a perfectly for the use of social media as a means of integrating with consumer. Firstly, before delving into the heart of the matter, it should be understood that rentable has been able to achieve the runaway level of success that it has partly as a result of the fact that it’s did not integrate with previous models of advertising that so many other food and beverage companies have fallen victim to. For instance, whereas it is perfectly plausible for the likes of at the or Coca-Cola to engage in a multimillion dollar ad blitz that covers, television media, or radio year, the overall ability of a youth. With relatively low levels of financial reserves, the possibility of engaging in such a process is inherently small. As a direct result of this, rentable took a different path (Zimmermann, 2005). Long before the era of social be again, the company began sponsoring individual extreme sporting events throughout the globe in an attempt to illicit support for their brand. This tactic worked to such a wide level of success that Red Bull began promoting itself in such a manner elsewhere and to a greater extent. As opposed to the ways that Coca Cola or Pepsi sponsored well known sporting events, the focus on extreme sports netted the firm a niche market in which the consumers came to identity with the product in terms of a personal experience that they had at the height of their recreational enjoyment. Leveraging this understanding of the consumer market, Red Bull came to be a dominant player in the realm of energy drinks. Yet, Red Bull did not simply redefine its approach to marketing once social media came to be represented as a fundamental way through which brands could integrate with the customer. Instead, the brand was one of the “first movers” within the market to engage its following on social media and encourage them to participate with Red Bull in online communities. Both Facebook and Twitter accounts were set up in 2005 and 2008 respectively. Within these, the relatively young demographic that typically engaged with Red Bulls product offerings was perfectly suited to provide the company with residual sales and profitability from interest and engagement that was effected within social media outlets (Fitzgerald, 2000). Once again, keeping the “low cost” advertising down to a mantra, Red Bull targeted its core followers with prizes, contests, drawings, and many other techniques that kept them interested in the company’s social media profile and content. Whereas other well known firms had begun to catch on the way in which social media was an integral way of engaging the customer, Red Bull had already established teams within Red Bull headquarters whose sole job was to refresh content, interact with individual consumers, and seek out new means by which further engagement might take place. By being proactive and engaging the consumer as this technology was becoming popular, Red Bull gained a strategic advantage over all the over well established firms that were rapidly playing a game of catch up. Furthermore, although Red Bull was not the first to engage with individual consumers and provide feedback on their own social media sites, they were one of the first to elicit a further level of engagement by randomly encouraging their fans and providing key product placement through social media at further locations than they might otherwise be represented. Beyond merely engaging in further sales and creating further visibility, the firm was also able to understand its consumers far better than it could have in any other way. Utilizing the data mining capability that social media offered them, Red Bull set out on a more targeted marketing approach through which the demographics, interests, and other personal information that could facilitate sales was tracked. Although this level of data mining is common within 2014, the rate at which Red Bull was engaging on it and the way in which they targeted this information as useful to the continued success and development of the brand is phenomenal; especially considering the fact that this was done was early as 2006 (Sebor, 2006). Another extraordinarily important aspect for the way in which Red Bull has chosen to integrate the market and effect social media advertising is with respect to the way it embraced the “selfie”. As anyone who has paid attention over the past year or two can note, the “selfie” has come to define the current era and the way in which we identify with one another and ourselves. Recognizing that this trend was more than just another trend, Red Bull began hosting “The Red Bull Moment”; allowing consumers to upload their “extreme shots” with the Red Bull brand being featured somewhere in the image. By sponsoring this approach, the brand caused tens of thousands of posts to self-promote the beverage line as extreme sports, the daily commute, life in the office, and working out at the gym were all idealized by the presence of the Red Bull emblem at some point in the picture. Other firms of course were quick to follow suit; however, Red Bull was once again the prime mover in effecting a change in the way that businesses understood “trends” and the means by which they might actually capitalize upon them (Khermouch, 2008). Although it might be understood that the social media approach of Red Bull is quite practically bullet proof, there is at least one essential shortcoming that must be noted. The length of time that social media marketing has come to be in vogue is relatively short; at least as compared to the way in which traditional forms of advertising have been engaged – i.e. television, radio, and newsprint. As such, there is evidence from a number of sources that many individuals are coming to tire of the way in which social media is represented within the current era. With this in mind, the way in which Red Bull proceeds based upon the information that has been discussed will play a large part in determining whether or not the strategy, and indeed the firm’s advertising apparatus, remains viable in the foreseeable future. From the information that has been presented, the ready can clearly denote the fact that Red Bull has played an active role in engaging the consumer market of social media in a way that few others did; at least in the initial stages of its development and adaptation. Because of this “prime mover” status, it is the assertion of this author that Red Bull was able to achieve a higher market share from effectively marketing itself on social media; at least as compared to the likes of other industry leaders. The residual effects of this will be felt on Red Bulls popularity for many years to come; due in part to the fact that once brand loyalties have been established and once an individual comes to identify with a particular brand, recreation, or habit they are likely to continue engaging with the product for a long period of time. Finally, although it might be tempting to assert that as a result of Red Bull’s prominence in the market and their ability to capitalize on the trends that have been discussed that they will somehow be immune to further changes that may take place. Yet, as has been noted, a primary concern for the firm is that they have placed too much of an emphasis on direct marketing and social media. Within this understanding, even though the brand has achieved a run-away level of success on social media, it is incumbent upon leadership to continue to diversify their approach to the consumer so that in the eventuality that social media begins to fade from prominence within the life of the consumer, undue harm to the brand or its profits will not be felt. Application and Takeaway: An important facet that any e-commerce site that is working to augment the earning power of a physical site is that it must absolutely reflect the same core principles, industry standards, and level of service that the physical site maintains. This is for a number of reasons but most importantly due to the fact that customers expect the two to behave as one and the same creature. Far too many e-commerce sites have lost money and eventually closed due to the fact that they did not espouse the same principles that allowed their physical locations to flourish in the first place. Likewise, maintaining the same sense of social responsibility, espousing the same principles of legal and economic responsibility, and generally behaving in a corporately responsible manner are all aspects that will serve to augment the presence and power of the e-commerce site. Tangentially, in a physical store, the seller wants to remove all impediments towards buyer’s spending money while within their store. Sellers will hire more cashiers to ensure that a fast and easy transaction process is maintained. Sellers will upgrade and update the store in an ongoing effort to make sure that the store has the most specific needs of the customer and his/her flow around the store will be mapped. It stands to reason, the same impediments should also be removed and the same customer behavior mapped from an e-commerce site’s perspective. Likewise, for an e-commerce site to succeed it requires the seller to be acutely aware of the habits of the web user and the buying habits associated with that. As such, offering goods for sale at reasonable prices is not the only requirement for success. Conclusion: In summary, the realm of marketing finds it absolutely necessary to engage stakeholders throughout society utilizing different approaches. If one singular approach were agreed upon and leverage all the time, the public would necessarily become exhausted from such an approach. Further, it must be understood that even though three distinct approaches/paradigms have been discussed within this brief analysis, there are in fact a litany of others that marketologists and advertising groups seek to integrate. Yet, even from the three paradigms that have been thus far engaged, the reader can clearly note that the approach that marketing makes to individuals is diverse and nuanced; allowing them to integrate with unique demographics and present products in new and enlightened ways that are likely to engage consumers with their tacit benefits that they propose to offer. Whether the marketing is concentric upon a younger demographic and seeks to utilize SEO and/or social media as a means of promoting a given good or service or whether or not shock advertising is used as a means of engaging the consumer and seeking to promote a given good or service, all three of these approaches effect the same root goals. Bibliography Achrol, R, & Kotler, P 2012, Frontiers of the marketing paradigm in the third millennium, Journal Of The Academy Of Marketing Science, 40, 1, pp. 35-52, Business Source Complete, EBSCOhost, viewed 7 March 2014. 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