“WHO CARES?”: Using ELM For Effective Sustainability Marketing

What makes a sustainability campaign really engaging and effective? There are many different factors that we have to consider, however, one of the most important aspects is, undoubtedly, relevance of the ad to the consumer. Thanks to multiple discoveries in modern psychology field, we can address and utilize various psychological theories in order to create a really productive and interesting sustainability-focused ad. In this blog post I would like to consider product involvement and The Elaboration Likelihood Model (ELM) proposed by Petty and Cacioppo as a foundation to develop campaigns that could theoretically influence consumer behaviour.

If you’d like to know scientific definition, the ELM is “a dual process theory describing the change of attitudes form”, which we will consider in simpler language and more detail right now.

Most of us know a person (and hopefully more than one) who is very interested in sustainable practices and negative effects we have on our environment, i.e. “high involvement” consumer.  However, there are also many “low involvement” individuals that are not engaged in the issue of sustainability. The ELM proposes two different approaches to these types of people based on their involvement level with the issue or topic of discussion.

In the first case, if the person is already concerned about the issue, it would be better to include scientific facts, such as statistics from reliable sources, into the campaign. We want to focus on rational arguments, logic and have scientific base in support to what you say when we target this group of people.

Let’s consider an example of a poster that can be used on High Involvement consumer segment:

Business Roundtable is using concrete data in order to influence high involvement consumers by making them think more about the issue and derive conclusions from given statistics. 

In contrast, the ads for Low Involvement consumers would have to influence their attitudes by focusing on affects, such as fears, desires, positive or negative cues. It will evoke emotional response among this target group, which can help us get their attention.

We’d expect these ads to emphasize “hedonic” rather than “utilitarian” aspects of the campaign.

 

[For more information on the difference between hedonic and utilitarian characteristics click here]

 

“WELL DONE IS BETTER THAN WELL SAID”

– Benjamin Franklin

Thus, the ads for lower involvement segment would have to give people the opportunity of lower cognitive effort and stronger emotional engagement at the same time. Let’s look at the example of such campaign:

The Surfrider’s poster utilizes the image of a dead bird with plastic details inside its’ body in order to trigger sadness among the public and motivate people to take action.

Thereby, incorporating the model of consumer involvement into developing strategically effective campaigns in support of sustainable options might be very helpful to, firstly, increase population’s interest in the issue, and, secondly, motivate people to take action.

What are your thoughts on the topic? Do you think this theoretical approach is useful? In your opinion, would it work on people that you know?

HELP CHANGE THE WORLD

FOOD FOR THOUGHTS: If  the United Nations was fully funded why would we need the Arc or social enterprise? 

There are millions of problems in the growing society all around the world: political, cultural and economical issues occur everyday. United Nations organization is the one that is always there to help in solving such global problems. Fully funded UN would benefit society by effective and operative functioning. But what about small businesses, struggling on their path to success? Who would help them, in such a minor (for a global society) problem? It is important to understand that this “small issues” could interfere economical progress and, consequently, prevent the improvement processes in mankind’s social level.

In this situations Arc and social enterprises hasten to the aid. They have an opportunity to focus on such “inconspicuous” problems, reach more local issues. People who has problems with their businesses should not get only funding help, which could be afforded in case of UN’s full funding.

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“Social entrepreneurs are society’s change agents, creators of innovations that disrupt the status quo and transform our world. By identifying the people and programs already bringing positive change, we empower them to extend their reach, deepen their impact and fundamentally improve society.”


Thus, solutions provided my United Nations might not always be sustainable for these petite organizations. Most important, they require proper skills and knowledge to manage company’s performance correctly. These would solve problems in sustainable way and benefit the society at the same time. The reason for that is the social nature of the knowledge presented my Arc and social enterprises. 

Thereby, in my opinion, getting rid of social enterprises is unacceptable, even though United Nations could be 100% funded.

Celebrity Endorsements: Is It Worth It?

We all know Brad Pitt. What do we think while looking at his picture with Chanel No.5 perfume? “Probably, it’s a good perfume,” – you’ll answer. Maybe. But I would say that it’s a perfect celebrity endorsement example. However, is celebrity endorsement always so useful for a company? And how does in influence sales level? We’ll discuss it right now.

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People would like to be similar to their idols. For many of us, celebrities, their lives and style are the paradigms of “perfect life”. Thus, if famous Brad Pitt uses Chanel No.5, why shouldn’t other people try it? Will it make them closer to their dream-look? Statistics shows that the answer is “Yes”. At least people think so.

However, what would happen, if unpopular company would choose a celebrity of lower level than our beloved Brad Pitt? Would it change anything? Yes, it would. This might be a situation when the star does not have so many fans and this number wouldn’t compensate amount of anti-fans. Consequently, opponents of the celebrity would do everything to make this product non-demanded and, finally, try to lead it to a failure.


 “People want to identify themselves with a certain lifestyle. Often, choosing the right celebrity can invite the right people to buy in and literally un-invite the others,”

– Dr. David Lewis-Hodgson, chairman and director of research for neuro-marketing company Mindlab International


So, it is really important to think twice before spending money on celebrity endorsements. Careful analysis of situation would prevent company from taking a high risk of failure.

Make your path to success: organizational culture

Yesterday we had a very exciting discussion about organizational culture and human resources management. I am interested in both business and psychology, so it was doubly interesting for me, as the process of managing people requires, first of all, understanding of their psychics.

I am a supporter of operant conditioning (is a type of learning in which an individual’s behaviour is modified by its antecedents and consequences), because it is a really good way to influence people’s actions and correct the way they behave. Business is all about working in groups, finding compromises and dealing with people, whether you like them or not.

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Using operant conditioning techniques could help in building a close and friendly community within organization, prevent conflicts, set goals and support company’s growth. I am going to talk about option, which seems (at least for me) to be the best way of influence – positive reinforcement.

Positive reinforcement is a really good technique, which has to be considered by organizations’ management teams. Giving bonuses to the most hardworking employees, providing them discounts on (or covering 100%) their medical insurance would be good stimuluses for people to love their job, endeavor to perform their work on the best possible level.

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However, in case of wrong usage of this tactic, it has both positive and negative aspects. One should not give bonuses regularly, considering only time, not quality of employee’s performance. It could lead company to the situation in which no one would be willing to work without constant concessions and rewards. Thus, organization would just spend extra money without valuable results.

Otherwise, reinforcing people’s behaviour by introducing some rewarding stimulus is giving a company a huge privilege over its competitors.

Canvas Model: Right path to success?

A few days ago I’ve read an article from the external blog about Canvas Business Model and it’s influence on success of any business.It caught my attention and I’ve decided to dedicate the whole article to develop this topic on my own blog. What do we know about Business Model Canvas? Why is it so important to use it in company’s strategy? Both ‘old’, successful organizations and beginners in apply Canvas Model in their work process, because it helps them to see companies’ future development paths and the best model they can start with accordingly. There are 9 most important elements in traditional Business Model Canvas:

 

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1. Value Proposition: the product/service, its features/benefits/uniqueness/opportunities and competition in the market;

2. Customer Segments: who the customer is and what problems the product solves;

3. Channels: how company plans to distribute and sell its product;

4. Customer Relationships: how company will create demand;

5. Cost Structure: the fixed and variable costs required to operate business;

6. Key Activities: the tasks the company must perform to succeed;

7. Key Resources: suppliers, commodities, or other essential elements of the business;

8. Key Partners: other enterprises essential to success of the business;

9. Revenue Streams: revenue and profit sources and size.

Overall, BMC (Business Model Canvas) helps to understand connections between most important sectors of the company. A good and detailed BMC could be a perfect navigator for a firm. Business, which is able to understand the causation between decisions in one sphere and consequences in another, has more chances to stand out among all competitors and, finally, reach success.

Name and Fame. Any connection?

I received pretty good feedback from some of UBC students after posting a creative article “Building Your Brand: Logo Colours”. I faced a very interesting question: “How to choose your company’s name?”

Very often the logo of business is based on it’s name, which means it is even more significant part of branding than colours selection. So, here I will try to provide an answer to this questions, referring to the inc.com article.

There is no doubt that consumers are very often attracted by the name of the product and, of course, those with popular world-wide names are more likely to be noticed.

bigstock-Domain-Name-2680987

There are few key points in choosing the brand’s name, which caught my attention. First of all, it should not be too complicated. Keep it simple. I have asked 20 people about their preferences between two mad-up names for ice cream companies: “Ice it!” and “Ice cream from Heaven”. 18 out of 20 voted for the first one, because the second one is so long, that is sounds like a slogan for the first one, not the actual name. This is how the advice works in real world. Write it down to remember. 🙂

Secondly, do not copy or imitate other firms’ names. Relate to your company as to your own child and try to find very unique and original name. I am convinced that at least once in your live you had thoughts like “This firm’s name is so nice! Is it in French? Italian? Hawaiian?”. I am sure that differentiating company’s name from others is a significant part of magnetizing clients and making them interested in your product.

These recommendations, in my opinion, are vital for company’s success.

Equity Partners: Northern Gateway and First Nations

Northern Gateway company proposed First Nations to become equity partners, says Claudia Cattaneo in one of the articles on Business Financial Post website.

After a protest, which was held by representatives ofFirst Nations, Mr. Eyford (special envoy of Stephen Harper) held multiple meetings all across Canada. Contribution to the main goal of the company – expansion of energy markets while increasing aboriginal participation in the economy – became the purpose of these meetings.

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“I believe there is a strong interest and a real opportunity for Canada and First Nations communities to more effectively collaborate and address their respective interests,” – Mr. Eyford’s interview for businessfinancialpost.com

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In my opinion, it is very important that aboriginal people have benefits from this type of constructions on the First Nation’s land. Considering the size of this project, it is absolutely thoughtlessly to forget about reconciliation policies in Canada.

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I am convinced that First Nation’s people should get new job opportunities in business sphere, especially when it is directly related to their territories.

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“Never before have we been joined by such a vast range of supporters from across Canadian society,” said Chief Martin Louie of the Nadleh Whut’en First Nation. “This gives the alliance greater strength for the fight ahead and shows the magnitude and power of public opposition to this pipeline that is proposed to cross over our territories.” – businessfinancialpost.com

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Re: Marijuana Can Get You a Date!?

Today I want to share some of my thoughts that emerged in my mind  after reading an interesting article ‘Stoners get high on love with marijuana dating sites’ and Moeko Uvara’s review on it (click here to read it).

On one hand, I think that this idea is beneficial for addicted to marijuana usage people. It gives them an opportunity to meet someone who could be shocked because of the fat of marijuana consumption. People are always trying to find someone who would understand their feelings and have the same outlook. In addition, it is undoubtedly untouched niche market that can potentially bring huge profit, because the level of marijuana acceptance across the united States is becoming higher gradually.

 

Regulating medical marijuana

 

However, it is also a kind of advertisement of marijuana itself. This idea of dating sites for marijuana-addicted people could easily lead to the increase of dependent on marijuana humans. As a consequence, the overall level of health condition of the mankind could become worse. It has to be perceived as a serious reason to think twice before giving this plan an ability to expand.

I would like to note that I have nothing against marijuana-addicted people and do not consume any form of psychoactive drug myself. 

Online Business: E-Commerce Advantages

How many hours a day you spend online? Do you have an experience of buying something from Internet stores? Have you ever searched for a product in the Internet before purchasing it? If you answered “yes” for one or more questions, this article is for you! You will definitely understand the importance of online business, as stated in one of the articles on Business News Daily website.

Some advantages of e-commerce component are inevitable expansion of costumer range, new opportunities to build stronger and better relationships with public, attract internet-buyers to your shop and, finally, get more detailed idea of demand.

In my opinion, it’s very important to stay up-to-date with online information about your customers desires. Such sites as Instagram, Pinterest and many others can help you with it. It is really easy to track new trends and tastes of people, who are registered there (which refers to millions of users!) and to build statistics to your own kind of goods.

By going online, you create more comfortable conditions for buyers to purchase your product. You show  your care for someone, who does not have enough time to go shopping in-store.

You save people’s time and, as far as we all know, time is money. Rephrasing it for our situation, time is more valuable than money.

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