Research is perhaps one of the most crucial aspects of what makes marketing effective. However, does it ever get to the point where research just becomes another name for “invasion of privacy?” Although some consumers may be appalled by the way some companies invade their privacy, gathering information by “any means necessary” certainly seems like the future of marketing.

Bell Canada is planning to use information from its customers’ accounts to customize ads specifically to each customer. This is achieved by looking through customers’ internet activity, television viewing habits, and phone app usage. Lately, many companies such as Bell and Target have started analysing the behaviour of individual consumers in order to better forecast individual consumers’ future buying behaviours and then implementing effective marketing strategies to accommodate.

Companies such as Bell and Target are able to efficiently accumulate tons of internal secondary data with little costs associated; they are certainly making use of this strength. Data mining  allows companies such as Bell and Target to measure trends in consumers’ values, lifestyles, and interests. This framework is key in developing an effective marketing plan. The data they accumulate, allows them to segment consumers based on different segmentation factors, then differentiate their targeting strategies. Through differentiation, these companies are able to control large portions of the market share.

The challenge with having many differentiated target segments, is finding a position that corresponds to the values of all these different segments. Having customized ads really does seem to be the future of marketing. But in this generation, we are taught to question. My question is, “Do stalkers have many close friends?”

Related Links

http://www.theglobeandmail.com/report-on-business/industry-news/marketing/bell-customer-phone-and-internet-data-will-be-used-to-target-ads/article14984876/

http://www.nytimes.com/2012/02/19/magazine/shopping-habits.html?_r=

With the rise of technology and social media, advertisements have become part of our daily lives. No matter where we go, there is always an advertisement ready to pop-up in our faces. However, how long does it take for your average consumer to start drowning out the noise? Companies are always looking for new and innovative ways to grab your attention.

Rogers Communications Inc. is planning to launch a new service that will let advertisers know whenever a roger’s user is near their own store. This service will allow advertisers to send promotions, via text, to lure consumers into their store. However, the question is whether this service will be effective or not.

Would text messaging change a consumers behaviour? Texting has, after all, become part of our daily lives. If there was an alternative homogeneous store nearby, would it deter the consumer from dropping by? If this service gained enough momentum, would every store start using it?  If so, would the consumer start “drowning out the noise” of advertisements again?  Consumers’  feelings about a particular company certainly does shape a consumer’s buying behaviour. And this service certainly has allowed companies to become more intimate with their consumers. In a way, this service has been a useful tool in building relationships and maybe even in creating lifelong customers. However, if all companies started using it, would it still be effective? Consumers would still go through the same buying process. If the choice of alternatives were offered, consumers would definitely evaluate other choices. This service is useful in making consumers feel like there is only one alternative. However, a competitive advantage in marketing doesn’t last forever.

http://www.theglobeandmail.com/report-on-business/industry-news/marketing/rogers-to-offer-promotional-ads-by-text/article14646004/