Month: February 2011

My friend Riki’s blog on the Post-Consumer Era
elaborated on the growth of value-based marketing through a well explained diagram (shown below).

He touched upon how marketing has grown throughout the ages – from mass production and marketing in the pre-consumer era to an era of careful decision making by consumers and strategic value development, creation, and distribution by companies. Everyone living in our current era will agree that value-based marketing is key to success for any firm.

How might marketing or consumption grow or develop even further in the future? The current value-based marketing will continue to serve as a basis of all marketing strategies, as convincing consumers that the value that they get is much greater than the costs they incur guarantees future consumption and positive customer relations management (CRM). Perhaps along with the technological trend, management information systems (MIS) will grow to become the core of most manufacturing and marketing strategies.

Convenience. In today’s world, time is a valuable resource in our busy, busy lives. How can firms use this to serve in their marketing strategies for the future? Implementing technology and MIS quickens processes (e.g. self-purchase / take-out booths at supermarkets, stores, libraries), improves quality/quantity and inventory of products (e.g. higher quality machinery, inflow and outflow of products management by MIS programs), and enhances the marketing mix (e.g. increase advertisements through the Internet and social media, easier to distribute at an international/global level). Technology gives us endless opportunities of growth and development in our era.

So who knows? Perhaps we will be present when a pre-technological era arrives.

The golden arch.

I wouldn’t say that I’m a complete loyal advocate of their mcfattening meals, but I won’t deny that I like the occasional Big Mac, medium fries, and large Coke (maybe throw in 6 pieces of  McNuggets as well). It’s cheap, tasty, and extremely convenient. What’s more – their marketing strategies are amazing.

Take for example their recently  new product: the Buttermilk biscuit.

FREE Buttermilk Biscuits: Brought to you by your local McDonald’s

The word “free” certainly caught your attention, didn’t it? Perhaps we can relate this as one of the psychological factors that influence consumer behaviour. Learning is one of the key factors, and by shaping, McDonald’s is capable of changing consumer’s attitudes towards their products.

To first introduce this new Buttermilk Biscuit, they offer a limited time offer of free taste trial, where any customer can enter a McDonald’s and obtain a free biscuit sandwich. Benefits for the customers definitely exceed costs, which may seem like a negative strategy for McDonald’s. However, this free trial period quickens the promotional effects of giving out “free food” to the public, and consumers will take the opportunity to try this new product. If they like it, McDonald’s may plan to promote large coupons to promote new customers into regular customers. Slowly, McDonald’s use smaller coupons until McDonald’s charges full price and still has a steady flow of customers purchasing the Buttermilk Biscuit.

As a matter of fact, I’m munching on this Buttermilk Biscuit sandwich myself. Let’s just say, its a little too oily, too fattening, and has too many crumbs from the biscuit for me to like it. But hey, it was free. Can’t say no to free food, can’t say no to McDonald’s.

Sigh.

As I was looking through a friend’s marketing blog on Diamonds, my feminine instincts got me surfing through Youtube, watching videos of Tiffany & Co. promoting their beautiful, sparkling jewels. From their signature turquoise boxes to their gorgeous models, they’re capable of capturing every girl’s inner desire for the one and only: diamonds.

Like Fion had mentioned in her blog post, diamonds are truly a girl’s best friend. It is a prime example of something that satisfies our esteem needs, based on Maslow’s Hierarchy of Needs. They define a woman’s social status, importance, and self-confidence. I see it every time I have dim sum with my mother and her friends. A typical dim sum lunch consists of a lot of gossiping and flaunting of one’s jewelries. The shinier and bigger it was, the greater the praise from everyone at the table. Having a diamond ring on your finger meant that you were either passionately loved by a man willing to buy you one, or that you were so financially steady that you could purchase one yourself. Either way, it was something for a proud woman to brag about. But how did this mentality, this attitude come from? And do girls really need one?

Perhaps it’s due to commercials from well-branded stores like Tiffany & Co. They strategically influence consumers’ attitude in an affective way. The affective component of our attitude involves what we feel about the product and our like or dislike of the product. How does Tiffany & Co. do that? If you watched the Youtube video presented above, you would know what I mean. Just look at her smile, revealing her perfectly straight pearly whites, as the dreamy man appears before her with the famous turquoise box, encompassing the shiny 1 carat diamond ring. Look at how complete the family looks as they carry the Tiffany & Co. bags as they walk hand-in-hand together home. Look at just how beautiful she looks in a white silk gown matched with diamond earrings and necklaces. A typical girl would watch in envy of this gorgeous woman who had it all: the man, the children, and the diamonds. It felt like, with the diamonds, everything seemed more glamorous, beautiful, and perfect.

Men, watch your wallets. Be prepared to buy something expensive this coming Valentine’s Day.