Category: Marketing Essays

Our sample marketing essays will prove helpful in formulating your own dissertation topic, objectives, literature review, methodology and analyses. Our sample marketing essays are an ideal tool for any student struggling to start their own marketing essay.

Marketing is an essential part of any business and there are many elements of marketing. By browsing our collection of marketing essays, you will get ideas for your marketing essay through the following marketing subjects:

Relationship Marketing, Branding, Direct Marketing, Marketing Cultures, Advertising, Consumer Behaviour, Marketing Trends, International Marketing, Online Marketing, Social Media Marketing, Strategic Marketing and Marketing Ethics.

Marketing Essays

Marketing Management Zara

Executive Summary

Marketing management involves the oversight of key marketing elements in a way that helps a business attract a larger market share for its products, enhancing both profitability and productivity. This report provides a brief analysis of marketing management as it applies to the selected business firm. It covers the firm’s market positioning, along with its current unique selling proposition. The report also includes a marketing audit, both internal and external, and discusses the firm’s potential for growth. Additionally, this document provides a competitive analysis of the company and its newly launched product, while also defining the role of the marketing mix in promoting this product.

Introduction Marketing Management

Marketing management is defined as the various functions carried out within an organisation to analyse and manage the market processes and operations. This helps the organisation run smoothly. It is designed to build strong relationships between customers and the market. Organisations use marketing management effectively to regulate their functions and meet their objectives. Marketing management also enables organisations to choose the right markets and maximise profits from new market opportunities, helping them achieve their overall goals (Bankvall et al., 2017).

The chosen organisation for this report is Zara, a multinational company that sells a wide range of fashion products, including clothing for children, men, and women. Zara is now expanding its product line with a new range of women’s jackets. This report analyses Zara’s marketing strategies and competitive position in relation to this new product. It will cover the history of Zara and explore the company’s STP (Segmentation, Targeting, and Positioning) approach, as well as conduct internal and external audits. Various models will be used to assess the organisation, and the marketing mix will be thoroughly analysed.

Outline Of Industry, Market Positioning, And Zara’s Unique Selling Method

Zara is a multinational company operating in the fashion industry, offering a wide range of products that appeal to various age groups. These products include clothing for children, men, and women. Currently, Zara is preparing to launch a new range of women’s jackets, which are designed to align with the latest fashion trends. Although this new product line is exclusively for women, Zara’s development team consistently introduces new items based on current fashion trends to attract a wider customer base (Ing et al., 2020). Zara operates with a fixed number of stores worldwide, though the company has the potential for further global expansion.

This report provides a brief overview of Zara’s approach to selling products, focusing on their quality and pricing strategies. Customers generally report high satisfaction with Zara’s products. The company employs a unique selling method to attract attention in the market, particularly through its fashion stores and innovative social media strategies. Zara creates trends by promoting their products on social media, often using hashtags as a key tool for promotion. Below is a discussion of Zara’s approach to Segmentation, Targeting, and Positioning (STP):

STP Approach

STP is a structured communication method that many organisations use to achieve profitability in the market through strategic marketing. In Zara’s case, there are three key stages: segmentation, targeting, and positioning, which are integral to its approach in the fashion industry. This STP strategy helps Zara meet its marketing objectives by addressing the needs and wants of its consumers. In today’s competitive business environment, Zara provides employees with various tools and techniques to help the firm reach its goals in the fashion sector (Luu et al., 2018). The specific functions of Zara’s STP approach are detailed below:

Segmentation: This involves dividing the market into smaller, valuable groups based on an analysis of customer needs and preferences. Segmentation allows the organisation to better meet its objectives and target its desired audience effectively. By breaking down the market into these groups, Zara is able to interact more effectively with customers and offer products that cater to their specific needs. Additionally, this segmentation assists Zara in developing its marketing mix and positioning its products within these segmented markets.

Zara operates in the UK and across the world, where the organisation applies effective marketing strategies to generate profit. There are various approaches to segmentation that Zara utilises, which are discussed below:

Demographic Segmentation: Demographic segmentation focuses on targeting specific groups based on characteristics like gender, age, income, education, and regional factors. In Zara’s case, this type of segmentation is applied to target consumers based on their gender, age, and other demographic factors. Zara targets individuals within the 10 to 50 age group, tailoring their marketing strategies accordingly to meet the needs of these segments.

Psychographic Segmentation: Psychographic segmentation involves dividing the market based on personality traits, values, and lifestyle. In the context of Zara, the company gathers data through surveys and customer information to understand these factors. This segmentation method enables Zara to align its marketing strategies with the personalities and preferences of its customers (Mahlamäki et al., 2019). By using this approach, Zara enhances its ability to meet consumer needs, improving its operations and achieving business goals.

Zara utilises both demographic and psychographic segmentation to meet market demands and address customer needs effectively. This approach helps the company in fulfilling its organisational objectives.

Targeting: Targeting refers to the evaluation of potential market segments to identify and focus on customers with the most promise. It involves assessing the needs and expectations of consumers. In Zara’s case, the company uses targeting to manage its customer base effectively, ensuring that products are designed for those with the highest potential. Several factors are considered when targeting groups of people, some of which are discussed below:

Criteria Size: The market must be large enough to manage targeted customers, so segmentation plays a key role in this. Zara uses appropriate methods to execute their plans and implement them in the marketplace, helping them achieve their objectives (Marcinkowska and Barałkiewicz, 2016). Zara also identifies short-term and long-term market targets, based on their chosen groups, and manages production and product availability accordingly.

Difference: This factor looks at the distinction between various segments. Understanding these differences helps organisations measure and evaluate how their strategies should be adapted to each segment. Zara uses this tool to determine the appropriate strategies and functions required to meet the unique needs of different customer groups, ensuring the success of their product offerings.

Positioning: Positioning refers to the process of establishing a product’s place in the market. This is largely influenced by customer interest. When customers repeatedly purchase products from the same organisation and develop loyalty, a strong position for the brand is created in their minds. This image helps the organisation grow rapidly.

In the case of Zara, the company uses a functional positioning strategy, identifying and focusing on the features and activities that align with customer experiences. Additionally, Zara prioritises value propositions that are recognised by fulfilling customer expectations and needs.

From the above points, it can be concluded that by using a proper system to assess current resources and implement functions based on customer needs and expectations, the organisation is better equipped to meet its objectives. This is supported by the company’s structure and framework.

Marketing Management Audit (Internal And External) And Potential For Market Growth

A marketing audit is a comprehensive and systematic evaluation of a business’s marketing environment, both internal and external. It involves analysing the organisation’s objectives, strategies, and principles to identify areas of weakness and opportunity. The marketing audit helps develop an action plan to improve sales and market performance (Maria, 2016). The audit includes several components, such as macro-environment audit, task environment audit, marketing strategy audit, marketing organisation audit, marketing system audit, marketing productivity audit, and market function audit. Through this process, a company can evaluate how well its marketing department is performing and contributing to overall business success.

Internal Audit

An internal audit refers to the evaluation carried out by a team within the organisation. The goal is to provide objective and independent reviews of the company’s systems, operations, and processes (Eckhardt and Bardhi, 2020). Internal audits offer senior leaders insights into risks, controls, and operational effectiveness, ensuring that the company complies with laws and regulations. This can be understood by applying the VRIO model, which is used to analyse the internal operations of Zara.

VRIO Analysis of Zara: VRIO is an analytical tool used to evaluate an organisation’s resources and help it achieve a competitive advantage. VRIO stands for Value, Rareness, Imitability, and Organisation. VRIO is a strategic analysis framework used to evaluate an organisation’s resources and capabilities to determine their potential for providing a sustainable competitive advantage.

Value: Zara does not rely on third parties for product production or design. The company manages all aspects of design, warehousing, distribution, and logistics internally. This approach makes Zara more flexible and faster than its competitors, while also reducing operational costs. The company’s organisational structure promotes efficiency, and every employee is expected to uphold the values and decisions of the organisation (Ouwenga et al., 2017). Zara adapts to changes in consumer preferences quickly, embracing both flexibility and speed as key components of its success.

Rareness: Zara has a unique ability to produce and deliver new items to stores in less than three weeks, compared to the typical six months required by higher-end brands. In a typical season, Zara produces up to 11,000 different items, while competitors usually offer between 2,000 and 4,000. This ability makes Zara’s resources rare and hard to replicate.

Imitability: While many aspects of the fashion industry are imitable, Zara’s business model has proven difficult to copy successfully. Although competitors may try to imitate Zara, they often do so with lower-quality fabrics, which diminishes the overall effectiveness of their replication attempts.

Organisation: According to Zara’s annual reports, the company consistently increases its sales and profits. This is achieved not only through the efforts of top management but also by the commitment of every employee involved in the business processes. Zara’s ability to coordinate its operations is strengthened by a unified decision-making process across the organisation.

External Audit

An external audit focused on marketing examines the external factors that influence marketing and product development strategies (Zhang and Wang, 2019). The external environment can generally be divided into two segments: micro and macro. This analysis is typically conducted using a PESTLE framework.

Political Factors: Zara, a Spanish brand, operates on a global scale. Politically, it is one of the largest companies within the European Union, benefiting from extensive trade agreements.

Economic Factors: Zara takes advantage of low-cost labour while also contributing to high employment rates in Europe. This combination offers positive aspects that enhance the company’s operations.

Sociocultural Factors: Zara is committed to delivering high-quality products to its customers while ensuring the welfare of its workers. This strong brand reputation allows Zara to maintain healthy profit margins for its shareholders.

Technological Factors: With a large customer base, Zara utilises advanced technology to expand its reach. This includes systems that enable many users to access the website simultaneously.

Legal Factors: In the fashion industry, copyright issues can lead to legal disputes. Several brands have claimed copyright infringement against Zara regarding its designs, which can result in penalties for the company.

Environmental Factors: The fashion industry often generates significant waste. Zara aims to recycle this waste, creating new clothing lines to meet consumer needs.

Competitive Analysis

Competitive analysis involves identifying the key strengths and weaknesses of competing companies. This process helps a business assess its strategies and policies to enhance sales (Bell and Rochford, 2016). The goal of this analysis is to assist management in developing policies that consider existing competition. It provides essential information that helps the management capture a market full of demanding customers while reducing the threat of substitution for the company’s products or services, ultimately enabling growth opportunities (Harrison, 2021).

In relation to Zara, the company is currently focusing on promoting its newly launched women’s jackets. These jackets are designed to be attractive, keeping current market trends in mind, and they are easy to wash while remaining resistant to bleaching. Zara has introduced these jackets using innovative promotional methods, making them available at a range of prices from budget to luxury.

The timing for this product launch is particularly strategic, as the winter season provides an ideal opportunity for promotion. The jackets feature a round neck with an attached cap, designed with health care techniques to address concerns related to the COVID-19 pandemic, adding to their uniqueness. Zara employs two main tools for its competitive analysis, including:

Porter’s Five Forces Model

The external environment significantly influences a firm’s strategy and policies. Regardless of the size of their operations, companies must adapt to the business cycle and its challenges. To remain competitive, organisations should formulate flexible policies that can accommodate necessary changes in their external environment (Burns and Dewhurst, eds., 2016).

Competitive Rivalry: This force examines the number and strength of competitors within the industry. For Zara, the company has developed strategies to promote its women’s jackets. Management has chosen to use innovative techniques to showcase these unique products to customers around the globe.

Supplier Power: This refers to the influence that suppliers of raw materials have over the prices of products. In Zara’s case, supplier power is relatively strong because the company relies heavily on a single supplier, fostering a good relationship that benefits both parties.

Buyer Power: This indicates the influence that customers have in affecting product prices. For Zara, buyer power is moderate. Although the company offers fashionable products, the limited stock available sometimes makes it difficult to fully meet customer demand.

Threat of Substitution: This force highlights the likelihood that customers might switch to alternative products that offer similar quality at lower prices. Zara faces a high threat of substitution due to its focus on fashion, which requires constant attention to this risk when launching new products.

Threat of New Entry: This refers to the risk posed by new companies entering the market with new products. While Zara is a well-established brand, the threat of new entrants could temporarily affect sales. However, the company’s strong brand image should help it maintain long-term customer loyalty.

SWOT Analysis of Zara

A SWOT analysis evaluates a company’s strengths, weaknesses, opportunities, and threats. For Zara to operate effectively and remain a preferred brand among customers over time, it needs to use its resources optimally and develop strategies that consider its competition (Huber, Bugmann, and Lafond, 2018). This analysis helps management make informed decisions and aligns with the company’s objectives. The SWOT analysis for Zara’s launch of the women’s jacket is as follows:

Strengths: Zara is known for offering unique designs, which is a significant strength. The diverse range of products attracts various customers, catering to budgets from low to luxury, including party wear, office wear, and options for both children and adults. The company has a strong presence in international markets, with an established brand name. This reputation will help promote the new women’s jackets, as customer trust in the brand is already well-established.

Weaknesses: Zara does not invest heavily in advertising for its products and services. While advertising can increase production costs, its potential to significantly boost sales and turnover cannot be ignored. The management has recognised this weakness and aims to address it without raising product prices.
Internal disputes within the organisation hinder proper coordination between various departments.

Opportunities: Zara is an emerging brand in the e-commerce space. Given the current pandemic situation, the company has the chance to capture online market platforms by making informed decisions. The introduction of the new women’s jackets presents an opportunity to strengthen market presence and customer engagement.

Threats: The complexity of managing a vast market can pose challenges for Zara, especially in the production and supply departments. Meeting the demands of numerous customers requires significant attention. Competition remains a constant threat to any business. The presence of top competitors like Chanel, Christian Dior, Burberry, Gucci, and Prada complicates marketing efforts for new product launches. However, Zara plans to take necessary actions to counter competitor strategies and ensure increased sales. By understanding these elements, Zara can effectively position itself in the market and leverage its strengths while addressing weaknesses and threats.

MARKETING MIX (4P’S)

The marketing mix encompasses various tactics used by a company’s management to enhance sales of its products or services. This approach helps an organisation maintain a strong brand image in the marketplace, and by providing quality services, marketers can foster customer loyalty. The marketing mix is a tool that assists marketers in promoting products or services effectively within a specific market (Karpenko and Filyppova, 2016). For Zara, management has decided to promote its newly introduced women’s jackets based on an analysis of current marketing trends. The marketing mix consists of the 4P’s: product, price, place, and promotion.

Zara’s Product Strategy: This refers to the tangible items sold by the company for which customers pay. The product strategy, combined with the marketing mix, aims to promote various products that meet the needs and wants of valuable customers. Since resources are limited, it is essential to use them efficiently, and this tool helps the firm carry out its promotional activities effectively. Zara is a leading fashion brand operating in 147 countries (Zhang and Yang, 2017).

The company offers a wide range of luxury products, including jeans, trousers, tops, skirts, and more. Management has decided to promote women’s jackets by analysing the current seasonal demand for the product. The marketing department will use innovative techniques to promote these jackets and ensure that the company’s resources are utilised effectively.

Zara’s Pricing Strategy: This refers to the value assigned to the various products offered by the company. Pricing is influenced by factors such as production costs, sales activities, market demand, promotional efforts, and government policies. The pricing strategy, as part of the marketing mix, helps management make informed decisions regarding product pricing. It is crucial for a business to set the right prices, as even a slight increase can affect customer demand.

Zara’s management has adopted various methods to evaluate the external business environment, maintaining a price range that covers both budget and luxury markets to capture a broad spectrum of demand (Trinh and Nguyen, 2019). The current season is an ideal time to promote the women’s jackets, and the marketing mix will help the team seize this opportunity effectively, contributing to the company’s growth and enhancing its international market presence.

Zara’s Place and Distribution Strategy: This refers to where the company’s products will be available for sale to customers. It is essential for a business to identify the right distribution points through thorough market research. The place strategy within the marketing mix helps management plan and execute distribution activities related to its products. For the women’s jackets, Zara will display its products in various retail stores while also targeting the online market through digital marketing techniques.

Marketing Management Zara
Marketing Management Zara

The company operates in 147 countries with approximately 6,500 outlets worldwide. To manage this extensive network and cater to millions of customers, Zara’s management has implemented effective promotional techniques alongside a robust distribution system aimed at maximising profits.

Zara’s Promotional Mix: This encompasses all activities undertaken to promote the company’s products and services to customers. The promotional mix is a crucial aspect of marketing principles that aids management in formulating effective plans. In relation to Zara, the marketing department oversees all aspects of the promotional mix, which helps improve the availability of products to consumers.

This contributes to achieving the desired sales targets and ultimately boosts overall sales. The marketing department has adopted various innovative techniques to promote the newly launched women’s jackets in the marketplace. It has been determined by the team that now is the optimal time to enhance this product range. Significant financial resources are being invested in promotional activities.

The above marketing mix tools have enabled Zara’s management to increase sales of the newly launched women’s jackets. This approach has proven effective in helping the workforce achieve its goals. It has also guided management in setting the right price for products, supporting the company’s tagline that “quality lasts forever in the minds of people, but price is forgotten” (Salem et al., 2019). This strategy has helped maintain a strong brand image among customers worldwide, enhancing the living standards of potential product consumers. Overall, these tools assist the company in bridging the gap between its external environment and the policies formed within the organisation.

Conclusion

From the report above, it is clear that many factors influence the growth of a business organisation. It discusses various marketing mix tools that help the company convey its business activities efficiently. This report also highlights the role of competition in shaping the policies of the chosen company and conducts several analyses to evaluate the external environment of the business firm. Overall, these insights demonstrate how interconnected these elements are in driving the success and sustainability of the organisation.

Marketing Limitations

Market Saturation: In highly competitive sectors, products can quickly become saturated, making it difficult for brands like Zara to stand out. This can lead to reduced sales and limited market share.

Changing Consumer Preferences: Rapid shifts in consumer tastes and preferences can challenge marketing strategies. If Zara fails to adapt quickly, it may lose relevance in the market.

Economic Factors: Economic downturns can affect consumer spending power, leading to decreased sales. Zara’s pricing strategy, while flexible, may still struggle in tough economic times.

Dependence on Trends: Zara’s fast-fashion model relies heavily on trends, which can be unpredictable. If a trend fades quickly, it can leave excess inventory that negatively impacts profits.

Limited Advertising: Zara traditionally spends less on advertising compared to competitors. This can limit brand visibility and customer awareness, especially in new markets.

Supply Chain Vulnerabilities: Disruptions in the supply chain, such as those caused by global events or natural disasters, can impact product availability and timely marketing campaigns.

Sustainability Concerns: Increasing awareness around sustainability can pose challenges for fast fashion brands. Zara may face criticism over environmental impact, which can affect its brand image.

Digital Competition: As online shopping grows, Zara faces increased competition from digital-only brands. If it does not enhance its online presence, it risks losing customers to more agile competitors.

These limitations require ongoing assessment and strategic adjustments to ensure the brand remains competitive and relevant in the ever-changing market landscape.

References

Bankvall, L., Håkansson, H. and Pålsson, A. (2017) ‘Conceptualizing business models in industrial networks’, Industrial Marketing Management, 60, pp. 196-203.

Bell, G. G. and Rochford, L. (2016) ‘Rediscovering SWOT’s integrative nature: A new understanding of an old framework’, The International Journal of Management Education, 14(3), pp. 310-326.

Burns, P. and Dewhurst, J. (eds) (2016) Small business and entrepreneurship. London: Macmillan International Higher Education.

Eckhardt, G. M. and Bardhi, F. (2020) ‘The Role of Brands in the Consumption of Fast Fashion’, Journal of Consumer Research, 47(4), pp. 583-604.

Harrison, R. (2021) ‘Sustainability and Consumer Behaviour in the Fashion Industry’, Sustainability, 13(3), 1475.

Huber, N., Bugmann, H. and Lafond, V. (2018) ‘Global sensitivity analysis of a dynamic vegetation model: Model sensitivity depends on successional time, climate and competitive interactions’, Ecological Modelling, 368, pp. 377-390.

Ing, L. L., Zainudin, A. A. and Abdullah, M. H. (2020) ‘Marketing Mix and STP Strategies: An Exploratory Study into Grocery Retailers in Malaysia’, Asian Journal of Entrepreneurship, 1(4), pp. 129-143.

Karpenko, L. M. and Filyppova, S. V. (2016) ‘Strategic competitive analysis of innovative enterprises development: predictive validity’, Aktual’ni Problemy Ekonomiky, (180), p. 392.

Luu, T. T., Hoang, M. and Bui, T. T. (2018) ‘Value synergy and value asymmetry in relationship marketing programs’, Industrial Marketing Management, 68, pp. 165-176.

Mahlamäki, M., Ikävalko, H. and Salmi, A. (2019) ‘The role of personality and motivation on key account manager job performance’, Industrial Marketing Management, 83, pp. 174-184.

Marcinkowska, M. and Barałkiewicz, D. (2016) ‘Multielemental speciation analysis by advanced hyphenated technique–HPLC/ICP-MS: A review’, Talanta, 161, pp. 177-204.

Maria, E. (2016) Strategi Komunikasi Pemasaran Bisnis Online Berbasis E-Commerce (Studi Kasus Strategi Komunikasi Pemasaran Website: Doctoral dissertation, Universitas Gadjah Mada.

Ouwenga, M. A., Rissman, R. A. and Campbell, J. (2017) ‘Transcriptomic analysis of ribosome-bound mRNA in cortical neurites in vivo’, Journal of Neuroscience, 37(36), pp. 8688-8705.

Salem, M., Dalloul, E.A.M., Tabasi, A.B.A., Harzallah, T.A., Al-Habil, A.R. and Maqt, Y.I., 2019. Effect of Applying Green Marketing Mix Elements on Achieving Competitive Advantage-Case Study: Palestine Cellular Communications Co. JAWWAL. International Journal of Business Ethics and Governance, pp.79-103.

Trinh, V. D. and Nguyen, A. T. H. (2019) ‘Understanding Service Marketing Mix Impact on Student Recruitment’, in Proceedings of the 1st International Conference on Management Science ‘DIGITAL DISRUPTION ERA: Challenges and Opportunities for Business Management.

Zhang, J. and Wang, R. (2019) ‘Research on the Marketing Strategy of New Energy Vehicles in SL Company’, American Journal of Industrial and Business Management, 9(2), pp. 306-314.

Zhang, J. J. and Yang, L. (2017) ‘A simple analysis of revolution and innovation of marketing mix theory from big data perspective’.

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Innovations in Marketing Strategy

Innovations in Marketing Strategy – As a marketing graduate, I have been asked on a handful occasions on how best to outline innovations in marketing strategy. In today’s hyper-competitive business landscape, an effective marketing strategy is the key to unlocking success and sustaining growth. As graduate students of marketing, we understand the significance of formulating a well-thought-out marketing strategy that not only attracts customers but also builds long-term brand equity. In this comprehensive guide, we will delve into the intricacies of marketing strategy, exploring its fundamental concepts, elements, and how to craft a winning strategy that aligns with your business goals.

Marketing Strategy Dissertations

Understanding the Basics of Marketing Strategy

Before diving into the depths of crafting a marketing strategy, it is essential to grasp the foundational concepts that underpin innovations in marketing strategy.

Market Segmentation – Market segmentation is the process of dividing a broad target market into smaller, more manageable segments based on common characteristics. Graduate students of marketing must understand the importance of segmentation in tailoring their marketing efforts to the specific needs and preferences of different customer groups. Market segmentation and targeting are not static concepts but evolving strategies that adapt to changing consumer behaviors and technological advancements.

Market segmentation, a fundamental concept in marketing, involves dividing a diverse market into smaller, distinct segments based on shared characteristics or behaviors. This approach recognizes that not all consumers are alike and allows organizations to tailor their marketing efforts more effectively. Graduate students should explore various segmentation criteria, including demographic, geographic, psychographic, and behavioral factors, each providing unique insights into consumer behavior.

Once segments are identified, targeting comes into play. Targeting involves selecting one or more specific segments as the focus of marketing efforts. This strategic decision is essential for resource allocation and message customization. By understanding the characteristics and needs of the chosen segments, organizations can create personalized marketing campaigns, increasing the likelihood of resonating with their audience and building stronger brand-customer relationships.

In today’s digital age, market segmentation and targeting have evolved with the availability of big data and advanced analytics. These techniques remain the cornerstones of successful marketing strategies, enabling businesses to adapt and thrive in an ever-changing marketplace.

Target Audience – Identifying a target audience is a critical step in marketing strategy development. By defining your ideal customer persona, you can tailor your marketing efforts to resonate with their unique needs, behaviors, and preferences.

Identifying the right target audience is a pivotal aspect of marketing strategy. It involves a comprehensive understanding of customer demographics, behaviors, and preferences. By honing in on a specific audience, organizations can allocate resources more efficiently, tailor their messaging to resonate with the intended recipients, and ultimately drive higher conversion rates.

Targeting enables businesses to build meaningful connections with their ideal customers, fostering brand loyalty and advocacy. In today’s data-rich environment, graduate students must grasp the significance of defining and reaching the right target audience, as it forms the foundation of effective marketing campaigns.

SWOT Analysis: A Crucial Starting Point

One of the first tasks in crafting a marketing strategy is conducting a SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. This analysis helps graduate students identify internal and external factors that can influence the success of their marketing strategy.

Strengths and Weaknesses – Evaluate your organization’s internal factors, such as your resources, capabilities, and market positioning. Identify your strengths, which you can leverage, and your weaknesses, which require improvement.

Opportunities and Threats – Examine external factors, including market trends, competition, and economic conditions. Identifying opportunities allows you to exploit market trends, while recognizing threats enables proactive mitigation strategies.

Crafting Your Unique Value Proposition

A compelling value proposition is the heart of any successful marketing strategy. It defines what sets your product or service apart from competitors and resonates with your target audience.

Unique Selling Proposition (USP) – Your USP should convey why your offering is superior or different from alternatives in the market. It should address the specific needs and pain points of your target audience. The Unique Selling Proposition (USP) is a vital element in marketing strategy. It encapsulates the distinctive qualities or benefits that set a product or service apart from competitors.

A well-defined USP resonates with consumers by addressing their specific needs or pain points. Graduate students should understand that a compelling USP not only attracts attention but also builds brand identity and customer loyalty. Effective USPs communicate value and create a memorable brand perception, contributing to the success of marketing campaigns in a crowded marketplace. Crafting a unique, resonant USP is a strategic imperative for businesses seeking a competitive edge.

Clear Brand Identity -Building a strong brand identity is integral to your marketing strategy. Graduate students should ensure that their brand message, visual elements, and tone of voice are consistent and aligned with their value proposition.

A clear brand identity is fundamental in conveying a brand’s values, personality, and promises consistently across all touch points. It involves defining elements such as the brand’s logo, color scheme, typography, and tone of voice. This identity acts as a visual and emotional anchor, allowing consumers to recognize and connect with the brand effortlessly. Graduate students should recognize that a well-defined brand identity builds trust, fosters brand loyalty, and sets the stage for effective, cohesive marketing strategies.

Developing Marketing Objectives and Goals

Effective marketing strategies are goal-driven. Establishing clear objectives and goals is crucial for tracking progress and measuring the success of your strategy.

Specific, Measurable, Achievable, Relevant, and Time-Bound (SMART) Goals:
Graduate students must craft SMART goals that are specific, quantifiable, attainable, relevant to the strategy, and bound by a timeframe. These goals serve as benchmarks for success.

Key Performance Indicators (KPIs) – Identify the KPIs that will be used to measure the performance of your marketing efforts. These may include metrics like website traffic, conversion rates, and customer retention.

Selecting Marketing Channels – Selecting the right marketing channels is essential for reaching your target audience effectively. Graduate students must consider the following:

Digital Marketing – In today’s digital age, online channels such as social media, email marketing, search engine optimization (SEO), and pay-per-click (PPC) advertising play a pivotal role. Choose the channels that align with your audience’s online behavior.

Digital marketing encompasses a wide array of strategies and channels, from social media and content marketing to SEO and email campaigns. It leverages the vast online landscape to reach and engage target audiences effectively. In today’s digital age, graduate students must grasp the dynamism of digital marketing, where consumer behaviors, algorithms, and platforms continuously evolve.

By understanding this multifaceted field, marketers can harness the power of digital marketing to expand their reach, enhance brand visibility, and drive conversions in an increasingly interconnected world.

Traditional Marketing – Depending on your target audience and industry, traditional marketing channels like print advertising, direct mail, and television can still be effective. Evaluate their relevance to your strategy.

Traditional marketing comprises strategies that have been fundamental to the field for decades, including print advertising, direct mail, television, radio, and outdoor advertising. These methods, though considered “traditional,” remain relevant in certain contexts and industries.

For graduate students, it’s essential to recognize that traditional marketing channels offer unique advantages, such as broad reach and tangibility. Understanding when and how to integrate traditional marketing into a comprehensive strategy is crucial, ensuring a well-rounded approach that capitalizes on both digital and traditional channels to achieve marketing objectives effectively.

Implementation and Execution

Once your marketing strategy is in place, the execution phase is where the rubber meets the road. Graduate students should:

Create a Marketing Calendar – Develop a detailed timeline that outlines when and how each marketing activity will be executed. This helps ensure consistency and accountability.

Allocate Resources – Ensure that you have the necessary resources, including budget, personnel, and technology, to implement your strategy effectively.

Continuous Monitoring and Adaptation

Marketing strategy is not static; it requires continuous monitoring and adaptation to remain effective. Graduate students should:

Regularly Analyze Data – Use data analytics to track the performance of your marketing efforts. Adjust your strategy based on the insights gained from customer behavior and performance metrics.

Stay Informed – Keep abreast of industry trends, market shifts, and emerging technologies that may impact your strategy. Adapt and innovate to stay ahead of the competition.

Innovations in Marketing Strategy Project
Innovations in Marketing Strategy Project

Conclusion Innovations in Marketing Strategy

In the ever-evolving world of marketing, graduate students must master the art of crafting effective marketing strategies that drive business success. By understanding the basics, conducting a SWOT analysis, developing a compelling value proposition, setting clear objectives, selecting the right marketing channels, and executing with precision, you can create a strategy that resonates with your target audience and achieves your business goals. Remember that successful marketing is an ongoing journey, requiring continuous monitoring, adaptation, and innovation to stay ahead in the competitive landscape.

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Kaplan, A. M., & Haenlein, M. (2010). Users of the world, unite! The challenges and opportunities of Social Media. Business Horizons, 53(1), 59-68.

Lee, M., & Youn, S. (2009). Electronic word of mouth (eWOM): How eWOM platforms influence consumer product judgment. International Journal of Advertising, 28(3), 473-499.

Smith, A. N., & Noble, S. M. (2014). The impact of social media usage on consumer purchasing behavior. Journal of Retailing, 90(3), 363-376.

Kim, A. J., & Ko, E. (2012). Do social media marketing activities enhance customer equity? An empirical study of luxury fashion brand. Journal of Business Research, 65(10), 1480-1486.

Escalas, J. E. (2007). Narrative processing: Building consumer connections to brands. Psychology & Marketing, 24(8), 713-741.

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Social Capital and Decision Making

How Social Capital Affects Student’s Decisions about Attending University?

Introduction

The concept of social capital has gained prominence in the domain of social science. It refers to the potential of people to get benefits and address the challenges by associating in social networks. Past studies have mentioned different types of social capital, including bridging, bonding, and linking social capital. These relationship networks can perform best when they ensure diversity and promote pluralism.

This essay reflects on the various aspects of social capital. The author highlights its role in the decisions of the students regarding attending university. The paper analyses the influence of friends and families on a student’s decision to go to a university.

School and college students do not possess sufficient information to decide on the career choices, areas of interest, and relevant professions. Hence, their career choices may be significantly influenced by the feedback, recommendations, and suggestions they receive from their friends and families. This paper discusses this impact of social capital on university students.

Social Capital Discussion

The core emphasis of social capital is on intangible resources. These resources become an integral component in interpersonal relationships. The concept of social capital in the context of education is highlighted in various forms and dimensions. It is exhibited in the expectations of the parents, obligations and domestic responsibilities, and the social networks of academic institutions, family, and community.

Deepak, Wisner, and Benton (2016) assert that the aspects of social capital and engaged learning are crucial to the academic success of college students when they intend to advance to university level education. A broader understanding of these aspects will improve student outcomes at the level of higher education. Deepak, Wisner, and Benton (2016) categorised social capital into three types of linking, bonding, and bridging. The social capital is considered as linked when the relationships are built with those who are relatively powerful.

The social capital is regarded as bonded when the networks of families and friends are considered in anticipation of providing substantive motivational and emotional support. The social capital is termed as bridged when people from different social networks and backgrounds come forward and create a bridge between diverse social networks. This essay is focused on bonding social capital because it analyses the influence of friends and families on a student’s decision to go to a university.

Access to Resources

The outcomes in academic institutions are also influenced by social capital. For example, if a student belongs to a low-income family, the student will have fewer books and may lose out on educational visits. The student may not have access to the internet at home or access to an internet connection of low bandwidth. Demographic characteristics and the class background are significant predictors of educational ambitions (Behtoui, 2017, p. 487).

Students compare their standards of living and quality of life with that of the affluent people. They feel deprived and depressed and begin to believe that no matter how hard they work, they will never be able to match the academic excellence of higher-income class. This aspect has gained further significance in the current context due to the advancements in technology. Now the access to higher technology, tools, and gadgets make the learning experience far easier compared to the absence of these facilities.

If a student aims to enroll in an online university, all the academic achievements are based on online interactions, high-quality connection, and an enabling environment at home to pursue the studies. Teachers also facilitate students in top streams to acquire knowledge at higher levels.

Hence, the social class of a student is profoundly affected by the amount of wealth possessed by the student. When a student belongs to a low-income family, the student may get primary and secondary education of the same quality as that of other students.

It is because, in many countries, the provision of primary education is free for all and uniformity is also maintained in the curriculum taught in each school. However, when it comes to the institutions of higher education or universities, the class system plays a role in all aspects. There is an unequal allocation of educational benefits due to income, civic, and social engagement (Cincinnato, De Wever, Van Keer, & Valcke, 2016, p. 144).

Higher academic institutions demand expensive tuition fees for enrolling the students, and it creates a class system at this level. People belonging to the lower social classes either give up attending universities or seek financial assistance for meeting their educational expenses.

Convincing Power of Families and Friends

Families and friends have significant influences on the choices of students at this stage. If they are fully convinced with the significance of higher education, they will encourage their children to pursue higher studies by seeking financial assistance or using the financial resources from their savings. Parents will even work harder to enable their children to receive higher education.

Friends can also be good motivators if they realise the significance of higher education. The attainment of higher education is highly likely when new social resources are developed together with enduring mentoring relationships (Ashtiani & Feliciano, 2018, p. 439).

If parents and friends have a long-term orientation, they can convince the students that college-level education will not earn them good jobs with attractive compensation packages when they are competing with university graduates in professional life.

Butler and Muir (2017) describe that the theories of social capital have indicated that students make decisions about their academic endeavours based on complex family connections. Their education narratives are anchored in particular family associations through which they interpret their experience of education.

According to Butler and Muir (2017), social capital is a leading factor in facilitating productive activity. It is because the concept is rooted in social cohesion, trust, and reciprocity. Hence, parents and families should realise that higher levels of social capital are strongly correlated with a good quality of life and wellbeing. The thrust of social capital is on building values derived from social engagement and networking.

Butler and Muir (2017) highlight that social capital is manifested in various forms. In the context of education, the most influencing factor is that of bonding relationships, and if the families and friends do not realise its potential, it may become inherently disabling for the students. On the other hand, its judicious use can become a source of support and assistance in various circumstances.

Scholars have also broadened the role of friends in influencing the career decisions to a broader perspective of community-based education management (Edwards Jr, 2019, p. 18). It refers to the involvement of the whole community at various levels of academic endeavours.

According to Edwards Jr (2019), it means that families and friends should work with principals and teachers on the effectiveness of the curriculum, performance evaluation of teachers, and hiring of quality human resources. Edwards Jr (2019) argues that the administrators of the education system have not been able to attract a large pool of students due to the “absence of a focus on social relations and social capital” (p. 19).

The development initiatives cannot be successful merely on technical interventions without realising the significance of the social contexts in which those initiatives are introduced (Edwards Jr, 2019, p. 19). A focus on social capital will develop capacities for developing solutions to joint problems.

Merit-Based System

In a capitalist society, the merit-based system becomes a challenge for the people belonging to the lower-income group and lower social status. In this society, the gap always widens between the rich and the poor. The rich become richer, and the poor become poorer. It is because when the people compete on an equal opportunity basis, those belonging to the affluent class always win the race due to the accumulation of vast resources.

A student brought up in elite schools, colleges, and universities will find it a lot easier to beat a candidate on the job who belongs to a lower social class. It is because the student belonging to a lower level never got the same opportunity and facilities to polish and improve the skill set.

Hence, that student would have no choice but to be complacent with a lower level of education and mediocre jobs. According to the findings of Zhang and Lu (2019), depressive symptoms are found higher among students belonging to low family social capital when they cannot attain higher education.

The marginalisation of students belonging to low social capital cannot be overlooked. The anger and frustration may be deviated and ventilated through other channels. All the stakeholders of the educational system will need to play their role to reduce the class system at the level of higher education.

Money is not the solution to this issue because a high cost is associated with higher education, and various universities operate in a country. The problem can only be addressed through the development of social networks and encouraging the students to come out of the vicious circle. It is not an issue limited to the student. The decisions will define the fate of future generations as well.

Expensive Education

One of the solutions to this issue could be to ensure free education at the level of universities as well. It will reduce the effect of social capital and students will be able to continue their studies without any worries regarding the financial aspect. However, the governments across the world are even struggling to stay with their promises of free primary and secondary education.

Higher education is an advanced area of study, and the provision of funding to all institutions at the state level will never be possible. Even the philanthropic organisations and foundations either build their universities or fund two or three institutions at maximum.

Social Capital and Decision Making
Social Capital and Decision Making

Job versus Entrepreneurship

Another factor that influences the decision of the student regarding attending university is whether the students would like to become entrepreneurs or they dream an excellent job after the completion of their studies. Many students believe that university education is beneficial only if they want to apply for a job.

Some organisations even announce promotions and benefits when an employed person completes a university education on-the-job. However, when individuals, based on the influence of family and friends, aim to establish their own business, they underestimate the significance of higher education. The individual believes that success in a business is more dependent on the experience and hard work than formal education.

Also, the families encourage the students to become the earning members quickly instead of consuming four to five more years in university education. A robust social factor can promote the students to make active contributions in their domains even as scholars and the research community (Tyndall, Forbes III, Avery, & Powell, 2019, p. 300).

There are severe restrictions on child labour in many countries. These restrictions become effective during primary and secondary education. However, by the time, the student becomes eligible for university education, these regulations also become ineffective. It is because, by that time, the student had reached the age of eighteen years.

Academic Institutions

The academic institutions of higher education are also part of this social capital, and they also play their role in demotivating students towards higher education. The top-rated institutions are limited in their capacities to accommodate a large population of college graduates.

When students from lower social class do not get admission in these institutions, they prefer not to attend the university instead of compromising on the quality of education. Hence, poverty becomes a barrier to the social capital formation (Harrison, Montgomery, & Jeanty, 2019, p. 183).

The commercial aspects have also dominated many academic institutions, and there is a lesser level of focus on research and development. Universities are premises where the students challenge preconceived notions and bring out something creative and innovative. They contribute to the existing academic literature and fill the gaps in the literature.

However, the mechanical style of many universities is dominated by traditional classroom instructions and students receive the degrees without having a firm grip of the knowledge and skills. Their gaps in knowledge become eminent when they have to execute tasks in a professional environment.

Economic Resilience

Parents and friends should realise their role in the successful professional life of students. The students cannot be successful in university life if they belong to a lower social class, and parents and friends do not motivate them. A long-term orientation by parents and friends will consider university education as a good investment that will open the doors of a successful career for the students.

The student will also participate in university life with full zeal because the family and friends will support the student. The short-term pursuit of profitability and financial gains should not be preferred over long-term economic resilience (Sabatino, 2019, p. 355). There will be no upliftment and development in the next generation. The growth of the generation is possible only if parents and friends realise the significance of higher education and become the full supporters of students in attending universities.

Personal Values

Fearon, Nachmias, McLaughlin, and Jackson (2018) highlight the role of personal values in the career decidedness of students in higher education. The model presented in the study reflected on how social capital mediates the career decision-making process.

The independent variables in the study included access to resources, student’s social capital, social skills, and personal skills. The study mentioned that ultimately, students are responsible for their career decisions and the role of families and friends is that of a facilitator. They can provide an enabling environment to accept skills development opportunities and nurture personal growth.

Social capital has a leading role in facilitating action and providing potential energy (Tonkaboni, Yousefy, & Keshtiaray, 2013, p. 41). At the levels of social structure, it can be utilised in all ways, including micro, intermediate, and macro level. In this regard, two significant aspects of social capital are networking opportunities and latent resources.

Investing in social networks produces declaration and instrumental actions. From the perspective of declaration action, social capital is beneficial for defending against the possible loss and consolidating resources. From the standpoint of instrumental action, social capital is significant in establishing reputation, power, and wealth (Tonkaboni, Yousefy, & Keshtiaray, 2013, p. 41). Tonkaboni, Yousefy, and Keshtiaray (2013) emphasised that social capital should be evaluated through its three components of social integration, social participation, and social confidence.

Conclusion

The social capital makes a significant influence on the education sector through the influences of families and friends. For the people belonging to higher social class, it is easier to acquire quality education in top universities of the world. However, financial constraints become a barrier for students of lower social level.

If parents and friends encourage students in this phase of life, they can become equally-competent university graduates and become successful in their professional and personal lives. Academic institutions also have the responsibility of realising the significance of social capital.

However, in most of the cases, the students are at the receiving end. Hence, families and friends should take the lead and play a pivotal role in making the students active contributors to development and prosperity in society.

References

Ashtiani, M. and Feliciano, C., 2018. Access and mobilization: How social capital relates to low-income youth’s postsecondary educational (PSE) attainment. Youth & Society, 50(4), pp.439-461.

Behtoui, A., 2017. Social capital and the educational expectations of young people. European Educational Research Journal, 16(4), pp.487-503.

Butler, R. and Muir, K., 2017. Young people’s education biographies: Family relationships, social capital and belonging. Journal of Youth Studies, 20(3), pp.316-331.

Cincinnato, S., De Wever, B., Van Keer, H. and Valcke, M., 2016. The influence of social background on participation in adult education: Applying the cultural capital framework. Adult Education Quarterly, 66(2), pp.143-168.

Deepak, A.C., Wisner, B.L. and Benton, A.D., 2016. Intersections between technology, engaged learning, and social capital in social work education. Social Work Education, 35(3), pp.310-322.

Edwards Jr, D.B., 2019. Shifting the perspective on community-based management of education: From systems theory to social capital and community empowerment. International Journal of Educational Development, 64(1), pp.17-26.

Fearon, C., Nachmias, S., McLaughlin, H. and Jackson, S., 2018. Personal values, social capital, and higher education student career decidedness: A new ‘protean’-informed model. Studies in Higher Education, 43(2), pp.269-291.

Harrison, J.L., Montgomery, C.A. and Jeanty, P.W., 2019. A spatial, simultaneous model of social capital and poverty. Journal of Behavioral and Experimental Economics, 78(3), pp.183-192.

Sabatino, M., 2019. Economic resilience and social capital of the Italian region. International Review of Economics & Finance, 61(2), pp.355-367.

Tonkaboni, F., Yousefy, A. and Keshtiaray, N., 2013. Description and recognition of the concept of social capital in higher education system. International Education Studies, 6(9), pp.40-50.

Tyndall, D.E., Forbes III, T.H., Avery, J.J. and Powell, S.B., 2019. Fostering scholarship in doctoral education: Using a social capital framework to support PhD student writing groups. Journal of Professional Nursing, 35(2), pp.300-304.

Zhang, J. and Lu, N., 2019. Community-based cognitive social capital and depressive symptoms among older adults in urban China: The moderating role of family social capital. The International Journal of Aging and Human Development, 1(2), pp.1-20.

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Advertising and Ethical Contracting

Advertising and Ethical Contracting

Advertising and Ethical Contracting Project – In advertising it is possible to have organization promising more than they can offer. This is considered as unethical advertisement. However, organizations use attractive information to try and entice potential consumers into buying their products and services.

The main objective of an advertisement is to convey the intention of the advertising company. The information may be about a product or a service (Dobson et al, 2012). These are informative advertisements that are aimed at ensuring that the customers are informed on the contents of a product or a service and hence help them in making an informed choice.

However, an organization may include false information in the adverts. The information may be misleading making the customer to make a decision unwillingly. They may be following the promised item rather than consume the product being advertised. Most advertising organizations are warned against misleading consumers and luring them into choosing their products and services out of misleading information (Boundy, 2010).

On the other hand, customers are warned of their being conscious when responding to offers in advertisements. They should comprehend the information being conveyed in the advert and not just make haste into getting the promise in promotional adverts (Suprapto et al, 2015).

The organization that engages in such practices can be considered to be unethical in its advertising practices. This is because the customers might not specifically choose their products but rather the rewards promised in the promotions advert. The advert remains irrelevant in the promotion and the customer does not develop a liking for the main product or service but rather focuses on winning the promised item. However, some organization will reward a prolonged usage of a product through royalty points reward programs.

Case Review Advertising and Ethical Contracting

In the case, the Soft Drink Company intended to entice its consumers into taking more of the drink and accumulate points. It had placed a high figure on the points that one needed to accumulate by consuming the soft drink in order to be considered for the reward. The consumer would take a long time to earn the points and hence they had placed the reward of a Harrier Jet just as a motivation to make the consumers take more of the soft drink.

The organization had no intention to give the reward. They had projected that probably no one will be able to accumulate the necessary points before the promotion was over. As per the calculations one would have probably consumed 190 drinks a day for a period of 100 years in order to accumulate the points. Getting 7 million points was impossible and this is what the organization considered in placing the advertisement on the media.

On the other hand, the Harrier Jet cost over $ 23 million. It was therefore illogical to place a bet worth $700,000 for an item that is over 2000% worth of the value. This made the advert to be a joke as highlighted. However, the businessman’s focus was not from the customer’s point of view but rather from the business point of view. He had envisioned himself possessing the Harrier Jet worth over $23 million for a price that was merely less than a million dollars.

In evaluating the case, the judge argued that the advert was basically a joke and the organization had not meant to give the promised Harrier Jet. In addition, the advert was basically an offer and the organization had not entered a legal agreement with the businessman that upon completion acquisition of the points, the organization would provide the customer with the promise. There was therefore no legal obligation for the organization to provide the promised reward to the customer upon accumulation of the necessary point (Suprapto et al, 2015).

There are terms and conditions in every business undertaking. The organization must have stipulated that the advertisement was meant for enhancing the consumerism of their products and not necessarily the accumulation of points. The accumulation of points was a methodology of encouraging repeated consumerism. However, the allowance by the organization for the consumers to purchase points at a price of 10 cents each was a shortcoming and this triggered the businessman to use the same to accumulate points.

Valid Contract

An advertisement is considered lesser than an offer. It is an invitation to make a deal. The organization that advertises places an open invitation to make a deal. In a valid contract, two or more parties come to an agreement to provide a service, a product or commit an act and it is enforceable by law. For a contract to be enforceable, there must be an offer then followed by an acceptance (Dobson et al, 2012).

This is followed by the creation of a legally binding agreement where the two parties consent to an agreed terms and conditions. They enter the agreement with a free will after they have understood the terms. Where force or confusing statements are used during the dealing the contract is declared illegal and void (Silver & Hochberg, 2013).

A valid contract must contain several elements. They include;

  • An offer that provides the details of what is to be provided and at what condition.
  • Acceptance to show that the two parties have consented to the agreement.
  • A consideration which may be money or something of value that ensures there is interest in the parties to enter or have an exchange agreement.
  • The capability by the parties to be able to honor the contract. The parties have to be mentally, physically and economically able to honor the agreement as stipulated.
  • Intent is the will to carry out the promise in the agreement.
  • The legal entity where the agreement is sealed using legal terms and conditions and hence be capable of legal defense in case there is a breach and a resulting breach of contract.

The parties to a contract agree on the terms after fully understanding their role in effecting their side of the contract. One may be the recipient of what the other party has to offer. For instance, in a service provision contract, the service provider is expected to agree to provide a service at an agreed level (Jones, 2022). The client will consent to pay the client upon complete provision of services. However, if the client fails to pay or the service provider fails to honor the agreement, the legal process may be induced by the arising conflict.

There are several types of contract. An express contract is a common type where the elements such as offer, acceptance and consideration are specifically stated (Silver & Hochberg, 2013). This helps the parties to understand the terms and regulation regarding the contract. An example is a tenant – landlord agreement where the tenant agrees to pay the landlord some given amount at the end of their stay.

Most buying occurs in environments where the customer and the client negotiate on an oral platform. In these kind of contract there are less formalities and its only at the end of the agreement when the client provides the customer with a receipt or invoice to cement an agreement. When the agreement is reached a document to document the acceptance may be used to make sure that the promise is honored (Fehr et al, 2011).

The goods are then not returnable after the customer has left the premise. An example of an oral contract is where a buyer negotiates the buying of a car with a car dealer. At the end of the sale the buyer get the documentation and leaves with the car and cannot return the vehicle to the dealer. The buyer will provide the payment immediately they reach an agreement and will exchange with the car documents.

Advertising and Ethical Contracting
Advertising and Ethical Contracting

Another kind of contract is an implied contract. In this type of contract, one of the parties will put themselves in a position that suggests they are ready to honor what the other may be offering. Their position is deemed as readiness to negotiate and accept the terms of the contract. For instance, when a person visits a restaurant and sit, the waiter or waitress will approach the customer and ask for their order. This is because the customer is assumed to be willing to eat or drink and pay for the same upon service.

However, the problem arises where one of the parties may not be ready to enter an agreement with the other. For instance when one is not ready to eat but still enters a restaurant. The service provider may still serve the customer and if they fail to pay after consuming the product. Such a case means that the hotel operator can sue the customer under the Quasi-Contract terms since the actions of the customer implied they were ready to be given some service (Fehr et al, 2011).

Illegal and Void Contracts

In a case like the one of the businessman, there was no contractual agreement with the soft drink company that after they accumulate the points, they would receive the reward. This was not even an offer but an invitation to deal. The businessman did not even bother to consult from the soft drink company on whether he would receive the reward upon complete accumulation of the desired points (Fehr et al, 2011). Instead he went ahead and accumulated the points disregarding additional information for him to avoid his uninformed decision.

For illegal contracts there is lack of efficient components to validate the same to make it an enforceable contract. However, when one party fails to perform their part of the contract, the other may proceed and have a legal claim for damages and hence the facts are used to enforce the contract and have the recovery of damages. This occurs for the purposes of recovering an interest or a consideration that one party had honored and the accused failed.

Recommendation and Conclusion

Looking from all aspects of a valid contract, the advertisement failed to reach the threshold. The Federal Judge at the Southern District of New York evaluated the advert and considered it a joking one. He ruled out that the firm intended to reward those that reached the said points. If the reward was based on a recorded accumulation of points, the case could have been different.

In a reward mechanism, the parties will have a written document to show parties agreed on some terms to comply with (Emerson, 2010). The customer or the user will receive a registration number or an account into which the points will be accumulated as they consumed the product. Every time they enter the customer consumes the said product points are added to their account. This is common with supermarkets, filling stations and other businesses.

Nonetheless, the kind of advertisement that was used by the company was misleading and unethical. It is always important to apply ethics and not be superstitious like the organization did. The man might have justified the ultimate action of the businessman. Organization should uphold that advertisements meet an advertisement ethical threshold (Emerson, 2010). The firms should be restricted from placing the life of a consumer at heart.

They cannot promise consumer that they are going to reward them and fail the same upon successful completion of the points’ accumulation. The desired level is stipulated at the beginning and the willing person is then registered so as to have their points added upon consumption.

Luring and misleading advertisement should attract some penalty. The firms or individuals who use false and enticing details, so as to coerce consumers into buying products or services should be held accountable to unethical and illegal practices. Nonetheless, when an organization practices such, their credibility in the market gets affected. Some of the practices may as well lead to consequences that may include expulsion by regulatory bodies.

References

Boundy, C. (2010). Business contracts handbook. Farnham, Surrey: Gower Pub.

Dobson, A. P., Stokes, R., & Dobson, A. P. (2012). Commercial law. London: Sweet & Maxwell.

Emerson, R. W. (2010). Business law. Great Claredon Street, UK: Oxford University

Fehr, E., Hart, O. D., Zehnder, C., & National Bureau of Economic Research. (2011). How do informal agreements and renegotiation shape contractual reference points? Cambridge, MA: National Bureau of Economic Research.

Silver, T., & Hochberg, S. (2013). The Glannon guide to contracts: Learning contracts through multiple-choice questions and analysis. New York: Wolters Kluwer Law & Business.

Jones, S. (2022) Advertising and Ethical Contracting: Marketing Consulting Project. Study-Aids Research

Suprapto, M., Bakker, H. L., Mooi, H. G., & Hertogh, M. J. (2015). How do contract types and incentives matter to project performance? International Journal of Project Management. doi:10.1016/j.ijproman.2015.08.003

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Evaluate the Psychographic Segmentation Method as a Basis for Effective Marketing in the UK Car Industry

Marketing segmentation is an important part of the marketing process. In order to be effective, firms must know who they want to target and what their customer needs and wants are. The UK car industry has a very large market and in order to serve it efficiently, it needs to segment its market and select a target market. Several methods may be used to segment the market but this essay will focus on evaluating the psychographic segmentation method as a basis for effective marketing in the UK car industry.

This essay will first define several terms, and then it will explain the benefits and the limitations of psychographic segmentation. It will then show how psychographics are used in the UK car industry and identify if other segmentation techniques are used, with or without psychographics, in this same industry.

Market segmentation is an essential part of the marketing process. It allows firms to allocate their market into groups that have the same similarities, which are relevant for decision making in the marketing strategy (Jobber, 2001). Then firms can target their market to serve it effectively, they can differentiate the market, define the opportunities and threats and tailor the marketing mix.

To be useful, segments selected should be measurable, substantial, accessible, differentiable and actionable (Jobber, 2001). The market can be segmented in different ways; the three most popular techniques used are: behavioural segmentation which analyse benefit sought, purchase occasion, purchase behaviour, usage and perception and beliefs; the second is psychographic segmentation which analyse the lifestyle and the personality of consumers and the third is profile segmentation which base its researches on demographic, socio-economic and geographic variables (Jobber, 2001).

Researches show that there is no exact definition for psychographics but Emanuel H Demby (1989 p 26). said that “psychographics allow us to view a population as individual with feelings and tendencies addressed in compatible groups (segments) to make more efficient use both of mass media and those that targeted to particular potions of the population”. The basis of psychographic research is that the more a firm know and understand about their customers the more effectively they can communicate to them (Heath, Piirto, 1995).

Psychographic Segmentation Research

Psychographic research can identify similar values, attitude, and lifestyle or personality groups, but the two main variables used in psychographic segmentation are the lifestyle and the personality of the customer: Personality is an individual’s pattern of character that influences behavioural responses such as self-confidence, dominance, sociability. This variable is important to be understood because people tend to see themselves in a way and purchase products to satisfy their self-concept so people see them in the way they want.

Lifestyle is a person’s pattern of living as expressed in this or her interests, opinions and activities. It is considered to be a rich descriptor of people buying patterns. Often, people buy brands because those brands relate to their way of living (Morgan, Doran, 2002-2003). For example, a successful businessman in his late thirties will buy a BMW because the image the brand shows in its advertisement is power, success and high standard of living. Psychographics are necessary to firms because they can investigate into specific product category and brand decisions by consumers and can be used to paint the big picture of consumer lifestyle (Heath, Piirto, 1995).

Psychographics has proven to be a very useful tool for organisations in their marketing research. It identifies target markets that could not be isolated using only demographic variables. According to Wells (1974), psychographics is designed to measure the consumer’s predisposition to buy a product, the influences that stimulate buying behaviour, and the relationship between the consumer’s perception of the product benefits and his/her lifestyle, interests and opinions (Heath, Piirto, 1995).

Often researchers have turned to psychographics because of the limitation encountered in demographics. An advantage of psychographics is that it describes segments in terms directly relevant to advertisement campaign and market planning decisions of organisations (Heath, Piirto, 1995). It has also appealed marketers for its power to combine the richness of “motivational research” with the statistical sophistication of computer analyses and, provide corporate strategists with rich descriptive details for developing marketing strategy; (Lesser, Hughes, 1986) it has the ability to give marketers a big image of the consumer’s lifestyle.

There is also the appealing advantage that psychographic segments, which are developed for markets in one geographic location, are generalizable to market in other geographic locations (Heath, Piirto, 1995). Psychographics are essential for discovering both the explicit and the hidden psychosocial motives that so often spell the difference between acceptance or rejection of the brand.

But psychographics has limitations, researchers have found reliability problems: first there are no standardized methods to evaluate the stability of results of psychographic techniques and incertitude in this area weakens predictive power. Therefore, it will throw doubts in whether the segment and market targeted are reliable or not.

The main problem is that psychographics attempt to measure intangible and diffuse concepts, values and attitudes are not easy to measure as every single person has a different personality and consequently have different opinions and interests. It has also been pointed out by (Fenwick et al., 1983) that there is little cross-study evidence on reliability so findings cannot be compared and improved.

The car industry in the United Kingdom is very large but is resumed by two monopolies: the first one is a monopoly in favour of Ford, which owns most of the leading brands. The second is another monopoly which is described as a “complex monopoly situation arising from the selective and exclusive distribution system used by most car suppliers in the United Kingdom.” by the United Kingdom Parliament (1998)

The UK has the biggest used car market in Europe: of the 26 million cars on the British road only 2 million have been bought new in the past twelve months (United Kingdom Parliament (1998). Since the market is so large, and that there is a word limitation, this essay will only concentrate on two different brands both owned by ford but with different legal entities and different target market.

Psychographic Segmentation in Marketing Project
Psychographic Segmentation in Marketing Project

Jaguar creates cars for customers that are seeking distinctive saloons and sports cars which deliver “stimulating performance and captivating style”. They have built an image for their cars which correspond to what their potential buyers want to identify themselves as. The company is seeking to reflect the individuality of its consumers. Its image is one of luxury, sport and freedom to inspire people. Jaguar uses psychographics since a big part of the customer’s purchase decision process is based on values, self-concept and attitudes. Jaguar need to know its customers, their personality and their self-concept to create a car up to their expectation and reflect the lifestyle they have.

Volvo is another brand of car that has a very different target market. Volvo uses psychographics to segment their market. They create cars aiming mainly at “modern families”. They analyse what are the attitude and values of families towards cars, what are the lifestyle of today’s families: research showed that families were going away for holidays and needed big cars that are able to be reliable and provide comfort for the whole family.

It has been found that today, families go to the beach but also to the mountain. So, Volvo created cars that allowed families to purchase car to suit their lifestyle. They also had to analyse the personality and the self-concept of those families. A family that wants freedom, that is adventurous. And this is reflected in Volvo’s advertising campaign. So, when people watch those advertisements, they can rely to it and identify themselves with the image they are giving out.

Other methods of segmentation are used in the UK car industry such as demographics or geographic. But often those methods, particularly in the car industry, need to be supplemented with other data, even if some researchers such as Ziff (1971) affirmed that “as demographic is based on the ground that demographic groups are relatively homogenous, it does not need psychographics to distinct customer’s behaviour” (Heath, Piirto, 1995, p 16).

Demographics can turn up objective facts such as tell that the target customer owns a car but it will not be able to tell why the person bought the car; this “why” is told by psychographics. In order to be successful, the car industry must know its consumers: their age, their sex, their marital status, their income, their purchase behaviour such as if they are brand loyal or if they are innovators. Jaguar keep record of every single client and follow them for up to four years to know everything about their satisfaction, their complaint, so they are able to measure the number of clients that are brand loyal.

Both Volvo and Jaguar saw a new target market in women and develop design to satisfy their wants. In order to serve this new and growing market, identified through demographics, those firms will need to use psychographics because women have different attitudes, values, personalities and lifestyle than men. They will also need to know what their expectations are and what issues they think are most important when they buy a car. For example, women may be more focused on safety and design while men may be more careful about their image and the performance of the car.

Therefore, psychographics can be a useful tool for the car industry in segmenting their market. This technique helps them understand their customers better and deliver more appropriate products and services. But as psychographics have proven not to be reliable on different situations, it would be more effective if used with other segmentation techniques such as demographics or behavioural segmentation. It will allow marketers to have more data in order to select the most appropriate market for their product and avoid making errors in their decision process.

References

Lesser, A.J., Hughes, M.A., (January 1986) The generalizability of psychographic market segments across geographic locations, Journal of Marketing [online], Vol.50 pp18-27.

Jobber, D., (1995) Principles and practice of marketing, 3rd Ed McGraw Hill Book company, England.

Heath, Piirto, R., (Nov./Dec.1995) Psychographics, Marketing tools [online], Vol.2, issue 8, pp 12-25.

Fenwick, I., Schellinck, D.A., Kendall, K.W., (1983) Assessing the reliability of psychographic analysis, Journal of marketing science, Vol.2, No.1.

The United Kingdom Parliament, (1998) The structure of the UK car market, Committee on Trade and Industry, Second report.

Morgan, S.J., (2003) Lecture 3: Segmentation, targeting and positioning, Lecture Notes, [online], Birkbeck university of London.

Ziff, R., (1971) Psychographics for market segmentation, Journal of advertising Research, Vol. 11, No. 2. Available from: EBSCO host.

Morgan, C.M., Levy, D.J., (2002-2003) Psychographic segmentation, Communication World.

Demby, E.H., (1989) Psychographic revisited: the birth of a technique, Marketing research, Vol.6, No.2, pp 26-29.

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