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Archive for January, 2008

Do We all Need to Jump on the Green Bandwagon?

Monday, January 28th, 2008

 

We are all aware of the various repercussions continued indulgence in a lifestyle bad for the environment will have. The question is, do we care? Do we want companies to lead the revolution into a sustainable, eco friendly society?

 

There has clearly been a noticeable shift from many companies, from a stance that was once nonchalant to one where they actively market their brand through their green credentials. We have seen a massive shift in green advertising where brands outline their good deeds for our environment and provide convincing arguments as to why their brand is more economically vied than their competitors.

 

However, many companies have been found to exaggerate green credentials in a bid to look good, but act the same; a phenomenon known as “greenwash”.

 

I propose that companies wrongly claiming that they are good for the environment have 3 negative impacts. Firstly, they ruin their own reputation and brand trust takes a knock, secondly consumers will end up assuming that all claims are exaggerated and thus this will devalue the efforts of companies that actually make a difference. Thirdly, with too much media coverage of green marketing, we face the risk of consumers becoming blasé about such matters and loosing interest.

 

Therefore there needs to be tighter restrictions on companies claiming green credentials. The green card should not be used as gorilla marketing; to pull people in on an exaggeration of the truth. Companies that work hard to improve the stability of our environment should be rewarded and their work celebrated. Hopefully, if legitimate green companies see a soar in profit due to consumer favourability, more companies will opt for green policies. This would be a fantastic development. Corporations hold both the power and the funds to make a difference, let’s hope they use it wisely.

 

To view a great way to start your eco friendly work, please see our range of recycled promotional products.

Using Celebrity Endorsements to Promote a Brand

Monday, January 21st, 2008

We all can name adverts that use celebrities to promote their brand. But how effective are they and how beneficial is it for companies to endorse their status with celebrity appearances. Well, here are 5 key attributes of using stars in ad campaigns:

Firstly, the adverts are memorable as everyone remembers a famous face. Adverts that are memorable are more likely to increase brand recognition and the propensity to buy. 

Celebrity adverts are like sponsorships. They are worth millions, and help to create a united brand message. Sports brands, if they can afford it, will employ the sports personality of the moment to promote the view that their brand is powerful and you can be a winner by wearing their merchandise.  Barbie employed last years twins from Big Brother to promote their products, only to link themselves closely to their target market and find stars that would drive in profit and demand.

Using celebrities in advertising campaigns can break down the corporate/ consumer barrier. Everyone can relate to their favourite stars, and it makes the brand more personable. 

Trust is also built, as companies will always try to find stars that are loved by their target market. Fans are in awe of these celebrities and have respect for what they say. Thus the brand equity will therefore increase. It’s simple- if the consumer trusts the celebrity, they will also trust and be more likely to buy the brand.

Choosing the right celebrity that fits tightly with your brand message helps build consistency of message and brand perception. Kerry Katona, former Atomic Kitten and winner of ‘ I’m a Celebrity get me out of here!’ has become a well known face of all Iceland ads. She is generally perceived as a busy, young mother who would look for easy, but nice meals to make the kids. This is exactly in line with what Iceland stand for and the target market that they aim to impress. Therefore, the partnership has been very successful and a lucrative one at that. 

However, celebrities come at a high price. You have to have the money to support such ventures. Generally only the big brand players can afford celebrity endorsements, and the more money you have; the better the celebrity you can buy! So always make sure you are going to get a ROI on the extravagant venture!

You have to prepare for celebrities stepping out of line. We all know about Jamie Oliver’s rant over Sainsburys allegedly not supporting his TV programme on battery hens. Resolved as it now appears, companies still have to be wary of employing celebrities that may dent their reputation. Iceland are currently under strain to drop Kerry Katona as there are claims she consumed alcohol and continued to smoke whilst pregnant. It’s certainly a dilemma when you bring human error into an advertising campaign! 

What are your views on celebrities heading advertising campaigns? Which are the best ones?

Remember, celebrity advertising is for the big players, Argon Promotions can offer more affordable solutions through our great Promotional Products!

The Pros and Cons of Social Networking from the Corporate Point of View.

Monday, January 14th, 2008

There is little doubt of the phenomenal success social networking sites are witnessing as the digital age continues to grow and grow. However, what impact does this have on companies and brands that are becoming entwined in the movement, through their own choice or through their target markets’ lead? This article entry outlines some of the key pros and cons that companies face in relation to social networking.

Lets start optimistically and look at the advantages that beckon: 

An all time favourite marketing tool has to be Word Of Mouth (WOM). It is the most powerful marketing initiative that a company could ever hope for. To have consumers talking about your brand, comparing notes, and actually unconsciously building brand awareness for your company!

Therefore in this instance social networking sites that allow consumers to discuss your brand to people all over the world, has to be a good thing! Getting the word out about your brand is one of the hardest things to do effectively, and if your customers are willing to discuss your brand, then this is a clear advantage over your competitors. 

Consumers like to feel that they have the upper hand in any commercial relationship. Social Networking sites allow consumers to talk freely with others about their consumer experiences. They therefore feel less inhibited and are more likely to be honest about their feeling towards particular brands.

An added advantage that WOM brings to any marketing strategy is that it increases brand equity and trust. Consumers are more likely to believe another consumer when they comment that the product/ service is excellent, than if the company itself purports these claims. So if people are talking favourably about your company online, it’s a great boost to your equity status! 

Social Networking sites work 24/7 so are available to consumers at a time when it is convenient to them. A lot of advertising messages are ignored or discarded because people are not in the right frame of mind to listen. This problem is resolved through social networking sites as people are more receptive to messages and more willing to digest information.

Relationship Marketing has become a huge buzz word in the industry. More and more companies are trying to build closer alliances with their target market and enter into ‘commercial friendships’. Social networking sites allow this transition, as interaction and the breakdown of barriers are possible. 

Now, for all those pessimists out there, here are the cons!

We have heard about WOM and how good words can increase brand equity. But what about the other side of the coin? What if a group of consumers do not agree with your company or have had a bad experience. With a bit of fire in their bellies they can really damage your reputation. 

As the consumer gains power in the relationship, the company looses power. This can be disastrous for a company, as they are unable to control the marketing of their own product, and have to be more cunning to continue to hold authority.

 

Lastly, with more interaction taking place online through various mediums, it becomes very hard for a company to monitor their target markets’ perception of the brand, and identify all comments that are floating around the internet. In essence they loose a big part of their corporate power.

So what do you think of the relationship between the impending domination of social networking sites and corporate organisations. Is it a good marketing tool, or is it something that should be avoided at all costs?    

 

Is the Consumer Experience More important than The Product?

Friday, January 11th, 2008

The days where companies could just offer high quality products that worked and expect to be top of the pile have long gone. Consumers are becoming more and more sophisticated in their choices and the post modern consumer expects a great deal more than just functionality.

One aspect of consumerism that is paramount to the end user these days is consumer experience, How do they feel when they are buying that product? Was it a pleasurable experience? Were the shop assistants nice to them? What was the ambience of the store like?  

In marketing theory the key formula that used to work for marketing was the 4Ps of product, price, place and promotion. These days, it is seen as more apt to follow the 7P formula; further including:

 

1) People: Interaction and relationships that are made through the consumption process

2) Processes: How the consumer gets from being a potential customer to a consumer, whether there was a seamless flow between A and B.

3)  Physical Evidence: What the surroundings are like, and how other consumers create an impression of the service experienced.

Building relationships with your customers is the key to beating your competitors. Studies have shown time and time again that consumers are less sensitive to price and convenience if, and only if, they feel a connection with their existing supplier. Nine times out of ten it would make no sense for a consumer to switch companies to save a small amount of money, if they are already happy with their existing company of choice. They would have to risk the fact that things could go wrong, and they also have to fight against inertia which is extremely powerful in today’s modern and busy lifestyle culture. 

Key ingredients in a commercial relationship are trust and loyalty. Customers like to be treated as individuals and they appreciate every little detail of their customer experience. John Lewis is the perfect model. The commercial giants have just recently topped the consumer satisfaction polls. Everyone I know, who has shopped at John Lewis raves on about their customer experience!! How there were always staff on hand to help, who were really informative if asked, but kept their distance if they weren’t. They also comment on how the store was very easy to navigate around, and how they managed to get really good quality products at reasonable prices.

 So take a leaf out of John Lewis’s book! It doesn’t matter how good your product is, if you don’t relate to your customers and go that extra mile to serve and impress them as individuals; your marketing strategy is very misguided and outdated! Consumers want relationships with companies, as long as they are relevant!  


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