The issues discussed below are covered in more detail at consumer behavior section of this site. Consumer behavior involves the psychological processes that consumers go through in recognizing needs, finding ways to solve these needs, making purchase decisions e. Sources of influence on the consumer. The consumer faces numerous sources of influence.
We are glad you are enjoying Advertising Age. To get uninterrupted access and additional benefits, become a member today. Log in or go back to the homepage. Published on July 08, Gian Fulgoni In today's digital world, it is clear now more than ever before that pricing power is rapidly shifting to the consumer.
The digital medium has brought transparency to prices and made it easy for anyone with a computer or mobile device to quickly find the lowest price for any product. The typical online purchase now involves the use of either a price comparison engine, a search for online coupons or discounts, a free shipping offer, a daily deal or some other incentive that reduces the price paid.
But this is no longer relegated only to online commerce. Consumers have also become accustomed to using the Internet to root out the best price for any product before they buy in a retail store. And, the rapid emergence of smartphones — which are now being activated at the rate of nearly 1 million per week — has made these pricing tools mobile, giving consumers the ability to use them in brick-and-mortar locations in addition to online.
As one retailer recently proclaimed to me "I never thought I'd be competing with Amazon in my own stores! As merchants are forced to appeal to these other value drivers, it places a premium on great advertising.
It is this new reality that has convinced me we may now be on the verge of a renaissance in advertising, where compelling multimedia creative emerges as the antidote to low prices. Advertising's role in this new world becomes not just a demand driver but also a counterbalancing force to price as the main determinant of consumer choice.
Ad spending trends certainly support this conclusion: And, if the growth in ad dollars spent in branding media is indeed driven by advertisers' efforts to garner higher prices, then it's possible we can also expect to see an increased focus on creative.
It's been about twenty years since some ad agencies first concluded that they were able to make more money through media planning and buying than through their efforts at developing great creative. I remember vividly one advertiser telling me sarcastically that it almost looked as if "agencies had outsourced creative.
Dion Hughes, the creative director at Persuasion Companiespoints out that investing in a better brand experience all 'round is a clear way to differentiate and create value.
And by all 'round, Dion isn't just referring to paid-media communications, but "what the brand does, how it talks, what it looks like, where it appears, what it stays away from, etc. As he sees it, the revolution or maybe it's the frontier today is in orchestrating a brand's behavior across so many different media channels.
In an age of consumer pricing power, we need to remember that advertising plays a key role in building consumer demand and creating the willingness for consumers to buy a more expensive "premium brand" rather than a lower priced alternative, or a generic, or private label brand.
That said, it's vital that marketers make sure that their creative is doing its intended persuasive job by testing it. I wrote about this in a blog post entitled " Four times zero is still zero ", pointing out that even dramatically increased spending behind poor creative will not move the needle.
That's the bad news. The good news is that it's been proven time and again that great creative helps build great brands …. Today, especially, that 's a vital point for marketers to remember.Jul 08, · To get uninterrupted access and additional benefits, become a member today.
As Power Shifts to Consumers, Get Ready for a Renaissance in Advertising a renaissance in advertising, where.
Feb 17, · In terms of reaching consumers, free samples are often much more powerful, and much cheaper than traditional advertising. Once you’ve had your free sample, it’s up to you to figure out if this is a product you’d choose to buy if it wasn’t part of some exciting giveaway.
“It is the consumer-preferred method of marketing,” Johnson says. “[Consumers] are tuning out the advertising, [but] they love to try new things.
That’s why product sampling works.” Like Cipriaso, Johnson maintains that product sampling is an ideal way to win customers’ faith in a product. Home >> Small business marketing >> The 30 magic marketing words you should be using Language is a powerful tool — it enables you to connect with audiences and spur them to take action.
For email marketers, the importance of using the “right” words cannot be overstated.
Through the medium of advertising people get information regarding new products. As people use these new and latest goods, their standard of living gets a boost. Advertising is helpful in providing employment and increasing income of the people. The Benefits of Using Instagram Photos in Marketing Later, we’ll examine just why Instagram images are so powerful and the reasons they convert better than generic photos.
But first, let’s learn how Instagram photos can benefit word of mouth marketing and strategies for using these pictures in marketing .