ASSIGNMENT COVER SHEET

Surname Dinis

First Name/s Lucinda Rosa Antonio

Student Number 185923

Module Marketing (MAR6)

Assignment
Number Assessment 2 (Case Study)

Tutor’s Name Zahid Shaik

Examination
Venue Online

Date Submitted 21 April 2022

Submission (√) First Submission Resubmission

29 Honey Pine
29 Ebury Avenue
Postal Address
Bryanston
2191

E-Mail 185923@students.mancosa.co.za
(Work)
(Home)
Contact Numbers
(Cell) 078 545 3278

Course/Intake Advanced Certificate in Management Studies / January 2022

Declaration: I hereby declare that the assignment submitted is an original piece of work produced by
myself.

Signature: Date: 21 April 2022

 Table of Contents

Case Study.................................................................................................................................. 2

Question 1................................................................................................................................... 4

Question 2................................................................................................................................... 6

References.................................................................................................................................. 9

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 Question 1

Advise the Marketing Department of Under Armour by discussing the major

psychological variables that affect consumer behaviour (15 marks).

The major psychological variables affecting customer behaviour are discussed below.
 Motivation is a major psychological factor affecting consumer behaviour. It begs the
question of what gives consumers a motive (or reason) to purchase goods, services, and
experiences.
Sigmund Freud’s theory of motivation suggests that a consumer’s buying preferences
are largely shaped by subconscious reasons (or drives) that are not completely
understood by consumers themselves. The implication of Freud’s theory for the
Marketing Department of Under Armour is to root advertising in motivation research
focused on the deeper thoughts and emotions that prompt consumer buying decisions
in relation to sports apparel.
Abraham Maslow’s theory of motivation suggests that a consumer’s buying decisions
are triggered by hierarchical needs from (lower-order) physiological and security needs
to (higher-order) social, esteem, and self-actualization needs (Lamb, 2015:99-100).
Maslow’s theory implies that marketers at Under Armour should do their best to learn
about the most pressing needs of consumers in their target markets and adjust the
company’s marketing strategy to accommodate those needs.

 Perception is another critical psychological factor that impacts consumer behaviour.

Central to consumer perception is how consumers sense and make sense of brands,
products, and services. Different consumers have different perceptions of a particular
brand or product depending on a variety of factors such as their personal experience,
values, background, and demographics. Selective perception is the tendency of
consumers to filter out media messages and interpret them in a way that aligns with
their interests, beliefs, expectations, and preconceptions (Tanner and Raymond,
2012:82-84). Selective perception influences a consumer’s attention, retention, and
distortion tendencies.
Because of perceptual differences towards brands and products, it is recommended that
Under Armour’s Marketing Team conduct research to determine how age and gender
impact consumer’s perceptions of sports garments with a view to expanding the appeal

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 of their brand and product lines to additional market segments such as Generation Y
and young women, with the required positioning strategy.

 Learning is another decisive psychological factor that influences how consumers

behave. It is associated with the experience and information gained by a consumer
about a brand, product or service. Learning plays a major role in making consumers
buy a product that has created a positive experience for them and in making consumers
refrain from buying a product that has proved unsatisfactory to their standards. By the
same token, consumers with limited experience and knowledge of a product are inclined
to be more sceptical and look for more information before purchasing it compared to
people who are already familiar with that product (Tanner and Raymond, 2012:82-84).
Positive reinforcement is a marketing strategy used by companies to increase the
demand for a product and build stronger, more permanent relationships with
customers—the reinforcer is an incentive (or reward) granted to customers for doing
business with the company (Bhasin, 2019). The practical implication for Under
Armour’s Marketing Department is to develop marketing techniques that reinforce a
consumer’s desire to be loyal, regular, and supportive such as rewards programmes,
rebates, discounts, loyalty cards, etc.

 Attitudes are yet another crucial psychological factor that drives buying behaviour.
Consumer attitudes are favourable or unfavourable ways of thinking or feeling about
products, services, and brands. Consumer attitudes comprise a cognitive component
(beliefs), an affective component (feelings), and a behavioural component (habit) that
interplay and combine in varying ways to determine a consumer’s stand on what is
likeable or dislikeable and therefore worth buying or not (Perner, 2018). Consumer
attitudes tend to be durable and hard to change unless the underlying components are
reframed.
It is advisable that the Marketing Team of Under Armour seek to identify consumer
attitudes towards their brand and products and find out the most powerful determinants
of negative and positive attitudes by market segment. Then develop targeted marketing
and advertising strategies that address negative consumer attitudes, resolve common
concerns, and consolidate positive attitudes of loyal consumers.

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 Question 2
The company invested in promotional techniques, focusing on impactful sporting
partnerships, celebrity endorsements, as well as online and offline communications. Do
you think that the company would benefit from celebrity endorsements and online
marketing? Justify (15 marks)

Celebrity endorsements are a powerful tool in a company’s integrated marketing

communication strategy. Celebrity endorsers such as well-known artists, models, sportspeople,
or cartoon characters are hired to communicate the value of a company’s brand, products, and
services across a host of communication channels. Celebrities are likely to enhance the
perception, attitude, and purchase behaviour of customers towards the company’s brand. The
argument is that celebrities have a positive impact on brand recognition and on the desire of
consumers to buy the brands they endorse (Kotler and Armstrong, 2014:441).
Under Armour operates in a highly competitive market where key players invest heavily in
celebrity endorsements to enhance their brand appeal and fuel the desire of consumers to buy
their portfolio of sportswear. Nike and Michael Jordan, Adidas and Beyonce, Puma and Selena
Gomez, and Reebok and Wonder Woman (superheroine celebrity) are examples of celebrity
endorsements that impact the consumer buying patterns of athletic apparel. Considering that
major market competitors engage celebrity endorsers, it is entirely rational for Under Armour
to continue partnering with celebrities to avoid the risk of becoming the “Cinderella” of the
sportswear industry.
Under Armour would benefit from a blended approach that taps into the popularity of both
sporting and non-sporting celebrities. Engaging sporting celebrities is a way to appeal to their
fan bases in a range of sports activities such as running, basketball, football, swimming, skiing,
dance, weightlifting, etc. Partnering with sporting celebrities in various sports has the potential
to lead to new product lines, following in the footsteps of the “ProjectRock”—a successful
endorsement partnership between Under Armour and former professional wrestler and
bodybuilder, Dwayne Johnson, also known by his ring name “The Rock”. But it is critical for
Under Armour to concern itself with the gender of athlete brand ambassadors because women
are more motivated to purchase sportswear endorsed by female athletes and men are more
attracted to sports apparel endorsed by male athletes, as suggested by Lazăr (2020:20).
Engaging non-sporting celebrities such as movie stars, well-known singers, or famous
influencers is a way to avail of their ability to reach out to market segments where Under
Armour’s sales are modest but have the potential for growth.
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Celebrity endorsements work well when a powerful connection is established between celebrity
endorsers, brand, and target markets. It is therefore crucial that celebrity endorsers possess a
personality that matches Under Armour’s core values and vision, and that they resonate
authentically with the company’s customer base and target audience. The reputation of the
celebrity is also a critical factor that should be cautiously considered by Under Armour to avoid
the painful risk of exposing itself to embarrassment and a tarnished image of its brand.

Online marketing is an essential marketing tool in the digital age. The increasing usage and
impact of internet technology have put pressure on marketers to invest in e-commerce and
digitalize the company’s interactions with its customers. Digital marketing operations have
become a way to expand a brand’s market by means of online shopping, online advertising, e-
mailing, mobile marketing, and social media engagement—while the COVID-19 pandemic
accelerated an already widespread shift towards a more digital way of doing business.
There are five main ways available to Under Armour to conduct online marketing, each one
integrated with the others and with the rest of the company’s promotion mix (Kotler and
Armstrong, 2014:528-535).

 Investing in a marketing website (online shopping) that lets customers explore Under
Armour’s product lines and purchase them at the convenience of a click is a way to
boost the company’s market reach, sales, and bottom line. A beautiful design and
attractive content which makes it easy for customers to find details and reviews about
their sportswear of interest are critical to the success of the marketing website.
Customer-centric online support, a hassle-free return policy, and a secure
purchasing process that encrypts the customer’s financial information are key
elements for turning Under Armour’s website visitors into online buyers of their sports
apparel (Ahmed, 2021).

 Online advertising is an effective marketing strategy to consolidate Under Armour’s

brand recognition and attract online audiences to Under Armour’s online and offline
shopping sites. Search advertising is the largest form of online advertising. It offers
Under Armour the opportunity to reach out to viewers who are using search engines
such as Google, Yahoo!, and Bing. Search advertising is also known as “pay-per-
click” advertising because when an ad is clicked by a visitor, the advertiser pays the
search engine a small fee.

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 Social media engagement on popular platforms like Facebook, Twitter, YouTube,
Instagram, and Pinterest is a valuable way for Under Armour to interact with
customers at scale through a variety of marketing tools such as videos, posts, blogs,
advertising, customer service, and community management. The goal of social media
engagement is not only to create positive connections with customers and prospects,
enhance brand awareness, and motivate buying behaviour and brand loyalty but also
to make the brand a valued part of the consumer’s social life (Kotler and Armstrong,
2014:532). It is recommended that Under Armour develop a viral marketing strategy
that uses video clips, interactive video games, or digital artwork to promote their
athletic apparel via a network of social influencers across a host of social media
platforms.

 E-mail marketing is a means of e-commerce with one of the highest returns on

investment than any other marketing method (Fariborzi and Zahedifard, 2012:232). It
has the potential to enhance Under Armour’s brand and product awareness, customer
loyalty, and repeat business. E-mail marketing is also a way to acquire new customers
but it must be conducted in a tactful manner and be contingent on the customer’s
permission in order to comply with privacy laws and avoid the risk of irritating the
receivers with unsolicited e-mail messages (spam). It is also vital that Under Armour’s
e-mail marketing communication strategy do its best to align e-mail messages and e-
newsletters with the customer’s profile and purchase history and allow the target
audience to determine their preferences and unsubscribe at any time.

 Mobile marketing is yet another opportunity for Under Armour to engage customers
and prospects on their mobile devices such as smartphones and tablets. The company
can reach out to mobile users when they are in a certain place (location-based
marketing) or when they engage in mobile social media, mobile e-mailing, mobile
search activities, or browse the company’s mobile website. It is also advisable that
Under Armour continue developing a host of useful, interactive, and entertaining
mobile fitness apps that help sportspeople keep track of their gym, running, climbing,
swimming, or skiing performance. This is a way to enhance consumer-brand
identification and offer in-app advertising and purchase opportunities in a customized
and responsible manner.

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 References

Ahmed, S. (2021). The 7 Essential Keys to Turn Your Web Visitors Into Clients [online].
Digital Aura. Available at: https://www.digitalaurainc.com/blog/the-7-essential-keys-to-turn-
your-web-visitors-into-clients/ [Accessed on 21 April 2022].

Bhasin, H. (2019). Positive Reinforcement: Definition, Meaning, Examples and Types

[online]. Marketing91. Available at: https://www.marketing91.com/positive-reinforcement/
[Accessed 21 April 2022].

Fariborzi, E. and Zahedifard, M. (2012). E-mail Marketing: Advantages, Disadvantages and

Improving Techniques [pdf]. International Journal of e-Education, e-Business, e-Management
and e-Learning, 2(3), pp. 232-6. Available at: http://www.ijeeee.org/Papers/116-CZ02024.pdf
[Accessed on 21 April 2022].

Kotler, P. and Armstrong, G. (2014). Principles of Marketing [pdf]. 15th Edition. Global
Edition: Prentice-Hall. Available at:
https://www.academia.edu/43149974/Kotler_Principles_of_Marketing_15th_Global_Edition
_c2014 [Accessed 21 April 2022].

Lamb, C.W., Hair, J.F., McDaniel, C., Boshoff, C., Terblanche, N.S., Elliot, R., and Klopper,
H.B. (2015). Marketing [online]. 5th Edition. Cape Town: Oxford University Press Southern
Africa. Available at:
https://search.ebscohost.com/login.aspx?direct=true&db=nlebk&AN=1104465&site=ehost-
live [Accessed 21 April 2022].

Lazăr, L. (2020). Gender Influence on the Perception of Celebrity Endorsement [pdf]. SUES,
30(2), pp. 13-23. Available at: https://sciendo.com/pdf/10.2478/sues-2020-0009
[Accessed on 21 April 2022].

Perner, L. (2018). Attitudes [online]. USC Marshall School of Business. Available at:
https://www.consumerpsychologist.com/cb_Attitudes.html [Accessed 21 April 2022].

Tanner, J. and Raymond, M.A. (2012). Management Principles [pdf]. Unnamed Publisher.
Available at: https://2012books.lardbucket.org/pdfs/marketing-principles-v2.0.pdf [Accessed
21 April 2022].

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