Impact of Technology On Marketing Strategy
Impact of Technology On Marketing Strategy
Impact of Technology On Marketing Strategy
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:
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.
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.
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.
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.
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.
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.
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.