Impact of Technology On Marketing Strategy

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 9

THE IMPACT OF NEW TECHNOLOGIES ON MARKETING

New technologies have enabled marketers to greatly customize their products, services and promotional messages. These new technologies have made it easier for the marketers to adapt the elements of their marketing mix to specific consumer needs and to more efficiently build and maintain relationships with their customers. Marketers are also collecting and analyzing more complex data on consumer buying patterns and personality characteristics, and quickly analyzing and using this information to target smaller and more focused groups of customers. And on the other hand, same technologies enable customers to find more information about goods and services and make quick comparisons; and to make more informed decisions. Therefore more than ever before, marketers must ensure that their products and services provide right benefits and value and are positioned effectively to reach the right consumers. New technology have brought following dramatic changes into marketing environment:

1. Consumers have more power than ever before


They can gather useful information about product and services and make quick comparisons, which results in better decision making. Consumers can bid on various marketing offerings (eBay) bypass distribution outlets and middlemen, and shop for goods around the globe and around the clock easily from their homes. Therefore marketers must provide more competitively priced products with more features. Moreover, some aspects of the digital age have enabled consumers to gain more power over what they see or hear in the marketplace. Specifically devices like, digital recorder and smart TV enable viewers to control what they watch on TV, when they watch it and whether or not they wish to view the commercials for which marketers spend billions of dollars every year. Related to the issue, as consumers spend more time online and have more technological tools that enable them to avoid exposure to TV ads, marketers have been reducing their advertising expenditures on the major networks and investing their advertising budgets in newer media, especially in web and email advertising and also on cell phone advertising.

2. Consumers have more access to information than ever before


They can easily find reviews for products they are considering buying that have been posted by previous buyers, click a button to compare the features of different product models at the sites of online retailers, and participate in virtual communities of persons who share the same interests as they do. In turn marketers must be aware of the limits of their promotional messages and assume that such customers are highly likely to know all of their buying options.

3. Marketers can and must offer more products and services than ever before
The digitization of information enables sellers to customize the products and services they are selling. It also allows marketers to customize their promotional messages directed at many customers. For example, Amazon.com regularly send personalized emails to previous book purchasers announcing newly published books; these suggestions are based on a determination of the interests of the targeted consumers derived from their past purchases.

4. Increasing instantaneous marketers and customers

exchanges

between

Traditional advertising is a one way street where marketers pays a large sum of money to reach a large number of potential buyers via mass medium, and then assesses on the basis of future sales whether the message was effective or not. On the other hand, digital communication enables a two way interactive exchange in which consumers can instantly react to marketers messages by clicking on links within a given website or even by leaving the site. Thus marketers can quickly measure the effectiveness of their promotional messages rather than rely on delayed feedback through sales information collected in future.

5. Marketers can gather more information about customers more quickly and easily
Marketers can track consumers online behavior and also gather information by requiring visitors to the web sites to register and provide some background information before they get access to sites features. Thus, marketers can construct and update their consumer databases efficiently and inexpensively. As a result, marketers now employ narrowcasting- a method that enables them to develop and

deliver more customized messages to increasingly smaller market segment on an ongoing basis.

6. Impact reaches beyond PC based connection on the web


While computer access to the internet is quite extensive and growing, in the future we are likely to see the mobile phone or PDA emerge as the preferred access tools because emails and text messages to one particular device. These devices are easy to use, small and compact in size and quick to access when even compared to very small laptops. More than anything else, it is the existence of very large number of highly mobile consumers that are making a cell device preferred communication tool.

LIFEBUOY
Company Profile
Lifebuoy is a famous and distinctive brand of soap that was created by the Lever Brothers soap factory in 1894. It was the first soap to use carbolic acid, which gave it a red color and strong, medicinal scent, but now it is available in many different fragrances and colors. Lifebuoy is still manufactured today and is the leading brand of soap in many developing countries. It is popular in developing countries as an inexpensive soap that can be used to fight infections. Lifebuoy soap is no longer produced in the United States or the United Kingdom, but is now mainly produced in India and Cyprus.

Company Vision
An inspiring vision for more hygienic, healthier and ultimately more vital communities is the driving force behind the Lifebuoy brand. To realize this vision, Lifebuoy has looked to consistently innovate and provide accessible hygiene and health products to a wide variety of consumers.

Segmentation
Lifebuoy soap has segmented its market on the basis of Demographic, Geographic and Behavioral basis:

Demographic
Age: no specific age limit, all age group can buy this soap for hygiene purpose. Gender: Male and female both Income: 7000 and above in India, but 5000+ in Pakistan Religion: all Nationality: all

Geographic
Climate: all 4 seasons Population: Rural mostly but cater urban as well

Behavioral
Benefits: Total Protection; Anti-septic Soap User-status: Regular Use

Target Market
Housewives and children. Women are usually the decision makers in Pakistan. Middle; Lower-middle class.

Positioning
Initial Positioning
The brand was initially positioned in the health and value platform. Lifebuoy was positioned as a tough cleaning soap for a tough man. Positioned itself on price. Lost its value and credibility.

Repositioning
Unilevers Lifebuoy soap had been built around its ability to kill germs. But it faced commoditization, with a growing number of health players entering the fray with similar sounding claims. The brand decided to break away from germ-killing and repositioned Lifebuoy as a health essential. Repositioning campaign started in 2008.

The campaign targeted mothers of kids aged between 4 and 11 years, residing in rural and urban geographies.

Brand Personality; Personality Targeted by Lifebuoy


The brand was initially positioned in the health and value platform. Targeted at the male with a unique jingle thandurusti ki raksha kartha hai lifebuoy, lifebuoy hai jahan thandurusti hai vahan". The campaigns showed footballer players and athletes using the soap and the jingle followed made it soap for the male. The soap was brick red and carbolic ingredient with a unique smell (chrysalis perfume) that distinguished itself from other feminine brands and making it the largest selling soap brand in the world. In the year 2002 the company changed the positioning and I would say a historic decision. The brand was no longer a masculine brand. The brand was repositioned as a family brand. The brand was no more carbolic, the perfume changed and new ingredient Active B which eliminates harmful germs was introduced. The campaign was a pretty girl who was teased for having a pimple then after using Lifebuoy Gold, retorts I don't care" was an instant hit among the public. The company maintained the health platform but targeted at the family so that the brand usage goes up. 2004 also saw another repositioning for the brand. The target was the "discerning housewife" and the positioning was health protection for family and me". The new campaign by Lowe was right on target and still does not dilute the age old positioning of Health and freedom from germs.

Lifebuoys Percepective
Association
Lifebuoy is associated with: Hygiene (good against germs) Good for personal Care

Persuasion
The Lifebuoy advertisement in which child says Paanch ka pahaara which gives you protection against five diseases then there is a voice over follows central route persuasion. It makes a consumer think that would it make my hands cleaner and gives me protection against diseases. Here there is no celebrity used in this advertisement. Consumers then can compare whether their current soap is better than Lifebuoy or not. Lifebuoy advertisement featuring Waseem Akram uses peripheral route of persuasion. Lifebuoy targets children & housewives, and Waseem Akram is very popular among them. Housewives believe on the credibility of the communicator which is Waseem Akram and do believe what he is saying. He says in the ad that Lifebuoy Soap cleans your hands in one wash so keep you safe against five diseases where as other soaps cant so that. Lifebuoy soap has used a celebrity endorser in the ad to persuade the consumers to make them buy.

Maslows theory and Lifebuoy

Lifebuoy satisfies the second level needs which are Safety needs and the third level needs which are Social needs.

Safety needs are the second level needs in Maslows Hierarchy, which comes after fulfilling the basic physiological needs. Lifebuoy satisfies this need as it removes germs from hands and saves us from spreading the number of diseases. Social needs are need for belonging to society and become a part of society. One wants to be associated with the community and people among which he lives. As one cannot go to work having dirty hands (lack of overall personal hygiene), so one uses Soap to wash his hands and clean them. Lifebuoy satisfies social needs in this way.

Sigmund Freuds theory and Lifebuoy


Sigmund Freud proposed the theory of the personality. He described Id, Ego and Superego. In my opinion, Lifebuoy does fall into ego part but not much, it is more falling into the Superego part. Since EGO is the component of personality that is responsible for dealing with reality. It operates on the reality principle. This principle weighs the costs & benefits of an action before deciding to act upon something. As Lifebuoy is a product that makes the consumer to think, analyze and then conclude what is the true reality .It provides the facts and figures about the requirement of good heath that is the reason due to which lies in the EGO part of this theory. Super Ego in a sense it represents traditional ideas & values of society. It attempts to compel the ego to pursue goals.

Cognitive Learning
Women engage in cognitive learning when they are viewing an advertisement of Lifebuoy in which it is showed that it s usage can protect you from the germs which can spread diseases. The Lifebuoy is daily advertised on television so that people gain knowledge about it. When women use Lifebuoy, they know what the product is like and whether it really protects from the germs or not. The new Lifebuoys campaign in the battle against germs is its "School of 5" Program which aims to educate and train school children regarding the importance of hand washing with soap.

Decision Making Process; If I am the Consumer


Information Search
Lets suppose I am facing pimple problem and I am searching for a soap that helps killing germs, solves skin problems and ensures hygiene.

Information Sources
I go and consult a doctor (Personal source), and he recommends me Lifebuoy soap, or some of my friends (Personal source) advise me to use Lifebuoy soap, saying that they were having the same problem as mine and this soap has helped them. Or I watch Lifebuoys ad on TV (Public source) and get to know that it is really good against skin problems.

Evaluation of Alternatives
After watching ads on TV, I get to know that there are three soaps in the market that are having the qualities that I need: Safeguard, Lifebuoy, Dettol soap. But because my doctor and my friend have recommended me to use Lifebuoy so I will go for Lifebuoy. Lifebuoy is high involvement product, financial risk is low but health risk is high; so I will not go for any experiment and do exactly what my doctor have prescribed me, or what a trustworthy friend have recommended me.

Purchase Decision
After proper evaluation of alternatives I will go to the market and purchase Lifebuoy soap.

Post Purchase Behavior


After purchasing and using Lifebuoy, if it really solves my skin, pimple problem; I will be satisfied and continue using it. If it doesnt, I will go and tell the doctor about Lifebuoys performance or simply change the soap and switch to other alternative.

You might also like