influences on marketing

factors influencing Psychological- Proactive

customer choice –PEGS  Uses celebrities, such as Justin Bieber, to demonstrate the effectiveness of their
product.
 The celebrities focus on their insecurities which teenagers with insecurities
because of their acne can relate to.
 Then demonstrates a miraculous quick fix when using the product.
 This advertisement plays on the perception of teenagers and their insecurities to
make a sale.
Economic- Rivers
 During the GFC, Rivers ran a successful marketing campaign with clear focus on
low prices – shows products with cost advantage over competitors
 Focuses on a purely economic influence at a time when people were more price
sensitive than the previous 7 years (no mention of quality or style)
 Since campaign, Rivers losses halved from $11 m to $5 m in 6 months
 5.7% jump in store sales growth, profit rose 50.6%
Government- Protecting Children from Junk Food Advertising Act 2011
 Advertising uses misleading marketing messages and psychological techniques
with clever market research
 Plays an important role in promoting unhealthy eating habits, influencing the
brands children choose and encouraging them to like salty, sugary or fatty foods
In response to this, new laws and restrictions include:
 No broadcasting unhealthy food ads directed to children
 No broadcasting unhealthy food ads from 6-9am and 4-9pm Monday to Friday, 6-
12am and 4-9pm on weekends
Sociocultural- KFC
 Advertisement for KFC depicts an uncomfortable white cricket fan giving rowdy
West Indians fried chicken has been slammed as racist in the US
 KFC Australia has said the ad had been “misinterpreted by a segment of people in
the US”
 Failed to understand cultural sensitivities
consumer laws- WIPD Warranties- LG
 The Australian Competition and Consumer Commission (ACCC) has instituted
proceedings alleging LG misrepresented to consumers with defective televisions
that any remedies available were only limited to the LG warranty
 If the warranty had expired, consumers were told they were only entitled to have
the television repaired, not a refund or replacement, and the consumer was liable
for the labour costs of the repair
 Under the Australian Consumer Law, consumers are entitled to refund,
replacement or repair, at no cost to the consumer if the product is of
unsatisfactory quality
 Impact: Cost to business, brand perception negative, loss of repeat customers,
negative word of mouth and media attention, customer trust, change in
operations (quality of product to last longer) and marketing practices
Implied Conditions- MSY
  Technology reseller MSY has been fined $203,500 for misleading customers about
their warranty entitlements
 The company stated “we do not carry any warranty claims after purchasing”
which is in contradiction to implied conditions in the Australia’s Trade Practices
Act
 MSY was found to exclude their responsibility for providing warranties to
customers and suggested that consumers were required to pay for warranties
beyond those provided by MSY
 Impact: Cost to business, brand perception negative, loss of repeat customers,
negative word of mouth and media attention, customer trust, change in
operations (quality of product to last longer) and marketing practices
Price Discrimination- Apple
 There is concerns that Apple has engaged in a deliberate strategy of price
discrimination in Australia
 Australian consumers have suffered from significant and unjustified price
discrimination, particularly in respect of music downloads from ITunes
 For instance, Apple has been selling AC/DC’s complete collection on iTunes for
$229.99 in Australia but only $149 in the United States
 Because of this, there is a need for a range of legislative and regulatory changes
to help stop price discrimination against Australian consumers of digital products
 In particular, there is a need for reforms to copyright law, as well as action under
Australian consumer law and competition law
 Impact: Cost to business, brand perception negative, loss of repeat customers,
negative word of mouth and media attention, customer trust, change in
operations (quality of product to last longer) and marketing practices
Deceptive & Misleading Advertising- Nurofen
 Nurofen engaged in misleading conduct by claiming its ‘Specific Pain’ range of
four products, Back Pain, Period Pain, Migraine Pain and Tension Headache, were
formulated to treat a specific type of pain but were found to all have the same
ingredients
 It is a disgusting marketing ploy as many patients were popping multiple tablets
for multiple ailments which could lead to overdose
 Lose brand loyalty, need to amend their marketing practices, breached consumer
law and loss of revenue
ethical – TAPES Truth, Accuracy & Good Taste in Advertising: Coconut Water
 Coconut water has been marketed as a healthy alternative to sports drinks and
other bottled beverages, yet dietitians say there is little evidence to support the
claims
 It’s been advertised as a source of minerals, such as calcium and magnesium, but
it only contains small amounts and is unnecessary for people to drink for health
reasons
 The marketing ploy claims coconut water can assist with weight loss, improving
skin tone and help with digestion, yet there is no evidence of these claims
 Coconut water can cost up to $4 a bottle, yet plain water is the best drink to
hydrate your body and it’s free
Products that May Damage Health: Arnott’s
 Tiny Teddies packaging logos include “school canteen – meets amber guidelines”
  Is their own, unapproved logo on sugary biscuits promoting them as suitable
everyday lunchbox items
 Manipulates parents into believing it is a healthier option and influencing time-
poor parents’ purchasing decisions
Engaging in Fair Competition: Small Dairy Farmers
 Family-owned dairy farmers milk is facing large debts due to supermarket milk
wars and a deregulated market
 Market needs to change otherwise business will face bankruptcy
 Consumers are purchasing cheaper milk products and supermarkets are driving
prices so low that the smaller diary businesses will collapse
 Not getting a fair return for their labour and are being taken advantage of
Sugging: Mercury Blue
 Mercury Blue telemarketing call centre was represented as a “quick survey”
under a fake name and were unable to answer simple questions about the
integrity of consumers personal information and the use of consumer data
 Significant downside for any further market research as consumers are more
likely to reject future requests to participate in genuine research

marketing process
situational analysis – SWOT-Skoda
SWOT, product life  A global car manufacturer offering a range of cars in a highly competitive and
cycle fragmented market
 To improve performance, Skoda needed to assess its brand positioning to grow in
the competitive car market
Strengths:
 Used reliable surveys to test customer’s feelings
 Concentrates on owner experience rather than sales
 As a result, 98% of customers would recommend Skoda as the brand is associated
with quality products and happy customers – uses this customer satisfaction to
guide its future strategic development and marketing of brand image
Weaknesses:
 Only has 1.7% market share – very small player
 Partly due to out-dated perceptions – in the past their cars had an image of poor
vehicle quality.
 Skoda changed this negative image through promotional campaigns portraying
Skoda owners as happy and content with their cars and that Skoda cars were
great to own (change in public perception = increase market share)
Opportunities:
 Differentiate by focusing on existing strengths – providing cars focused on the
customer experience – improve sales
Threats:
 Needed to ensure messages were powerful enough in a crowded and competitive
market or potential buyers would overlook Skoda – further loss of market share
 Overcome by offering different cars to appeal to different market segments
- e.g. Skoda Octavia presented as a family car while the Skoda Superb
presented as a more luxurious up-market-car
- clear range with competitive pricing overcame the crowded market and built

market research Kellogg’s
establishing market Maximising Customer Service- Subway
objectives
identifying target Lay-Z-Boy Recliners
markets
developing marketing
strategies
implementation, Apple iPhone discontinued
monitoring and
controlling – developing
competitive advantage
 Uses market research during the new product development to find out what
consumers need, how best to design products and how to promote them
 Must identify changing consumer needs before developing a new product to
reduce risks
 Stage 1:
- Initial secondary research identified new ideas through investigation of
innovative trends and new products in the market
- Focus groups used to provide research on new ideas and food prototypes
 Stage 2:
- Presented selected product ideas to consumers in a survey to determine
which they liked most and establish how many people would buy each
product
 Stage 3:
- Several recipes and packaging designs tested with consumers in a survey to
identify preferences
 Stage 4:
- Once finalised, the product underwent the ‘in home usage test’ prior to
launch to measure the product’s appeal and sales potential
 Product performed very well, illustrating that market research was valuable
 5-star ratings for customer service due to listening to its customers
 Uses online surveys to understand customers better; they tell what’s important
to them so Subway works hard to constantly improve their experience
 Ability to see their sub being made in front of them with freshly prepared
ingredients, decide exactly what they want to create something that tastes great
but also fits their budget
 Offers a lot of choices and are known for healthy options, also offers new
varieties of subs regularly
 Sandwich artists can have 1 on 1 conversations with customers throughout the
process – repeat customers w/ relationship being built over time
 Many sandwich artists know their regular customer’s favourite subs
 Due to ageing population -> dramatically increases no. in target market (retiring
baby boomers)
 Also used market segmentation to identify significant longer-term value in young
millennials w/ an eye for fashion & design
 The existing & emerging market represent significant value for the company ->
substantial increase in market share by 6.4% from 2017-2018 -> achieves business
growth in new & emerging markets
 Discontinued iPhone 5C in 2014-2015 as it had a poor sales performance – took
corrective action to improve future performance
a financial forecast;  An alternative low-cost model was introduced, the iPhone SE, in 2016
comparing actual and  Changes marketing mix annually in order to better suit their target market
planned results, revising
the marketing strategy

marketing strategies
market segmentation, Air Asia
product/service  Aircrafts spend 20 mins on the ground- industry average is 1 hr
differentiation and  Online/ Self-service check in
positioning  1 type of aircraft, Airbus A330, standardisation
 No meals in flights
 Outsources maintenance- servicing of aircraft
Qantas/Jetstar
 Differentiate product through different branding, different target markets
Qantas:
 Prestige & high-quality image for wealthy & niche market:
- Offers 1st class
- In-flight meals included
- Entertainment included
- Higher price
Jetstar:
 Mass market, appeals to more consumers, less quality:
- Offers only economy & business class
- No meals in flight
- Entertainment not included
- Lower price
products Yellow Tail
-branding Product innovation strategy:
-packaging  The brand offers wine that is produced without tannin and acid to appeal to
customers who don’t like wine or don’t drink, which represents 85% of the
population in US
 Soft and sweet taste in taste (taste different) and as approachable, resulting in an
easy-drinking wine that did not require years of experience to develop an
appreciation for (appeal to non-wine drinkers)
 To avoid confusion, consumers could initially choose either a red Shiraz or a
White Chardonnay (easy to choose)
 Can be consumed immediately – no need to keep it in expensive wine fridges or
underground cellars to age – simplifying the consumption process (easy to
consume)
Packaging:
 Designed with “no wine jargon” as brand understood consumers feel intimated
by traditional wine bottles covered with an elitist and sophisticated wine
terminology that is often not easy to understand
 Therefore, idea was to design a simple and unintimidating packaging with an
unpretentious text and vibrant colours
 Consumers can read the name of the grape variety, which is important to
 American consumers
 First to use same bottle packaging for both red and white wines, simplifying both
manufacturing and purchasing processes
 Cleary-displayed wines stood out from the extensive choice of intimidating wines
Overall:
 Sold 1 mil bottles in the US in 1 year
 Fastest growing wine brand in the US (becoming a leader in the market)
 Learned how to position itself in an unexploited market segment by creating
value and differentiating itself from well-established competitors
 Innovative strategies take consumer needs into consideration
Price - skimming, Penetration-Aldi
penetration, loss leaders,  Aldi has created a new market segment distinguished by price within the grocery
price points industry in Australia
 As Aldi grows in market share, it is placing downwards pressure on prices
- This can be seen in the recent price-focused marketing campaigns initiated by
its competitors; Coles “Down, Down, Prices are Down” and Woolworths
“Cheap, Cheap” campaigns
 There is a perception amongst consumers that low prices commensurate with
low quality, however, this is not the case and thus Aldi has uniquely aligned low
prices with high quality – this is what distinguishes the brand and explains the
rapid growth (both domestically and internationally)
 Penetration pricing is used for low cost sourcing and low prices
 This strategy ensured that Aldi experienced sustained growth since it set up
stores in Australia
 Aldi ensures their prices on the range of products it offers are much lower than
that of its competitors
 Aldi’s entry into the Australian market was premised on research that indicated
there was a need for a low cost supermarket chain, so their effectively price
setting as there was no effective competition
Promotion Sales Promotion- Dominos
elements of the  Domino’s AnyWare allows Domino’s to be ordered at the fingertips of customers
promotion mix – at all times
advertising, personal  This multi-channel (text message, Twitter, Android, etc) approach to interfacing
selling and with customers gives the potential to capture a lot of data which allows in depth
relationship customer segmentation which Domino’s uses to improve efficiency of their
marketing, sales marketing
promotions, publicity  The information collected through the sales system gives Domino’s the ability to
and public relations assess consumer buying patterns, who is the dominant buyer within a household,
who reacts to their coupons, and how they react to the channel they’re getting
Domino’s from
 This means Domino’s can present different coupons and product offers to tailor
to the individual consumer
 Domino’s now processes approx. 55% of orders via online systems which gives
them insights into customers and practices, leading customers to have a better,
faster and more quality-based experience (competitive advantages)
 Online discount offers and on time delivery enables high market share
  Promoting online sales channel offering discounts helps to increase customer
satisfaction by offering convenience and cost control
 Mobile apps and channels was the largest boom to Domino’s product sales which
became popular because of its customisation features
Place/distribution Darrell Lea
 In 2012, the business was purchased to revive the brand after it collapsed,
implementing significant restructure of the brand
 Darrell Lea products continued to be produced and sold to wholesale customers
as well as 1200 licensed retailers
 The remaining 27 “Darrell Lea” branded company-owned stores closed
 To rescue the well-known brand they did supermarket distribution deals such as
IGA, as well as David Jones, Big W and Australia Post as stockists
 Darrell Lea’s poor performance in identifying consumer trends and in pushing its
products into new distribution channels most likely pushed the brand into
administration
 They needed to close down stores and look at other forms of distribution
 Darrell Lea has a 70% share of the liquorice market and 10% share of the
“chocolate bites” market competing with brands like M&Ms and Maltesers
Tiffany & Co
 Profit rose 53% because of the retailer’s priority of delivering an omnichannel
(physical stores and online) experience for customers
 Emphasis on positive customer experiences through all channels has resulted in
sales, profits and market share increasing
 Through non-store retailing of internet marketing, Tiffany’s reaches more than 40
countries and brings in additional customers who are highly fashion conscious
and shop online
 Tiffany’s has also improved its physical stores through enhancing store
presentation to be more engaging and modern
 To remain of one of the most exclusive luxury jeweller, Tiffany’s operate
exclusively with manufacturing by owning and controlling majority of the
channels of their organisation to control the quality throughout the entire
process
 Uses exclusive distribution (only one retail outlet for their products) which
ensures it is the industry leader in the jewellery trade and allows their products to
retail at a high price because you can’t get it anywhere else
 As an independent luxury retailer, Tiffany’s ensures its exclusive image by
selectively distributing retail locations around the globe only in Central Business
Districts and popular shopping centres
 The minimal locations retain their luxury image
 Retain and entice customers through the distribution channel due to the luxury
and exclusivity of their products