Marketing by miguelsamonte

MODERN MARKETING BY MIGUEL SAMONTE

HOW ARE THEY SIMILAR? ALAIN MILKI ARNETTE BROOKE BROTHERS BURBERRY BVLGARI CHANEL COACH DKNY DOLCE & GABBANA DONNA KAREN EMPORIO ARMANI GIORGIO ARMANI MIU MIU OAKLEY OLIVER PEOPLES PA U L S M I T H S P E C TA C L E S PERSOL POLO RALPH LAUREN R A Y- B A N S TA R C K E Y E S STELLA MCCARTNEY T I F FA N Y & C O TORY BIRCH VERSACE VOGUE EYEWEAR

H I S T O R Y O F R A Y- B A N

In 1956, Ray-Ban, began to manufacture what would become a signature look for sunglasses that are still worn today. These are reﬀered to as the Ray-Ban Wayfarers. Since the 1950s, Ray-Ban has been one of several companies to embark on signature designs that would establish sunglasses as fashion accessories. However, if you are a brand like Ray-Ban who’s profit is based purely on sunglasses, then wouldn’t these designs be trademarked or legally protected in some way to secure future revenue? Well, the Ray-Ban Wayfarer is actually a trademarked design, but the reality exists, how do other brands such as Oakley among many others have similar-looking designs?

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SPOILER ALERT

The list on the left are the designers that make up 80 percent of the world’s major eyewear brands which are manufactured and sold by the Milan-based company Luxottica. Under license, Luxottica manufactures sunglasses in several nations within the European Union including Italy, and Spain. Luxottica also operates manufacturing centers in the United States and more frequently China. Despite where Luxottica’s products come from, their prices vary from $100 American made Oakley's to more prestigious brands that can cost upwards $1200.

In the past year, Luxottica secured a little over $9.6 billion in revenue selling to consumers simple products that perform the basic function of providing eyes UV protection from sunlight under diﬀerent names. What enabled the Luxottica product line to be successful and expand into a monopoly is based on how well the brands under Luxottica were able to add value to their product. The act of adding value to a product is achieved through marketing.

HOW IS AN INVOLVED W Someone once noted that every decision consumers make has been pre-planned by the corporations who thrive on the spending habits of consumers. Psychologically, every purchase a consumer makes are impulsive, yet when they state that the product is a necessity, it only means that there is a greater incentive behind the transaction. Brian Tracy (best-selling Author, Public Speaker, Entrepreneur, and Business Coach) was the man who made a comment on the impulsive habits of people and the ability to interfere with the minds of consumers is achieved through marketing.

Some, may say that it is pure manipulation but under any light, marketing is defined as communication initiated by organizations to influence the public towards an agenda (Vikram, Raja. â&#x20AC;&#x153;The Five Concepts of Marketingâ&#x20AC;?). Through the perspective of a microscope, however, the growing field entails so much more. In this digital age, marketing has evolved into a strategic game companies on the minds of consumers. It is no

N ELEPHANT WITH ANY OF THIS? doubt that a message, an image, or anything diﬃcult can manipulate the mind of another person and history agrees. In an era before computers or social media, marketing operated under the alias of propaganda. It was successful in pushing political, religious and commercial agendas throughout a wide audience.

Back then, or more specifically, from the 18th to 20th century, marketing appeared on cartoons, newspapers, and other media outlets. Under the disguise of propaganda, strategic marketing was used to fend oﬀ competition (Snow, Nancy). One of the more popular uses of this technique involved brilliant entrepreneur Thomas Edison who brought down Nikola Tesla’s alternating current ideas with pure false advertising and the electrocution of an elephant named “Topsy” in 1903 (“Coney Elephant Killed”).

States, specific imitations on advertising are enforced by the Federal Trade Commission under the Bureau of Consumer Protection (“Advertising and Marketing.” FTC). Some countries including the US state a definition of marketing and place a ban on false advertising, among other techniques. Beyond just the principle of pushing an agenda, the practice of eﬀective marketing pushes into other methods.

Today, marketing and propaganda have drawn lines that defined either one with only a loose similarity. Marketing for the most part is now regulated by a vast array of government policies. In the United

POOR ELEPHANT :(

! ESSENTIAL QUESTION

WHAT IS THE BEST METHOD TO

“METHOD” A method refers to a specific strategy or a technique of achieving something in this case eﬀective marketing. It is not a standalone idea, therefore in regard to findings that will be used to address the Essential Question, the findings are often inclusive or precise verbs.

“TO MARKET” The phrase “to market” is the process to add value through means of communication between two parties typically an enterprise, organization to a public audience with the overall goal of influencing a purchase or business transaction.

“ TA R G E T D E M O G R A P H I C ” The target demographic is simply the public audience for which the idea or service is meant for. A target demographic may also be considered as the consumer of a product.

O MARKET AN IDEA OR SERVICE TO A TARGET DEMOGRAPHIC?

MARKETING (NOUN) As a noun, marketing is the communication that takes place between an organization or enterprise that adds value towards an idea or service with an intent to influence a purchase.

MARKETING (VERB) Marketing as a verb is to add value towards an idea or service, hopefully generating a business transaction.

FINDING 1

To discuss the answer thoroughly, the word evaluate is intended to mean ‘to assess.’ Present carries the obvious interpretation ‘to introduce and exhibit.’ Then, clarify is used to convey the definition ‘to make clear or explain.’ Together, these three verbs combine to form a solid answer that in a business and marketing profession is the schematic of every campaign.

To persuade the public requires the understanding that ‘one-size cannot fit all’ (Perez, Vairon. Interview) This notion is true for just about everything, from clothes to computers, even cars and the same applies to marketing. The understanding that ‘one-size cannot fit all’ is the reason why companies expand their product line. They want to meet the needs of all consumers. The general truth is that consumers are diﬀerent and therefore do not have similar needs. With diﬀerent consumers, targeting a specific demographic becomes a variable that determines what makes a marketing strategy one of the best methods.

It is crucial that any marketing method or strategy, evaluates the target demographic for which the idea, service, or product is intended for. If a marketing method fails to do so, it will produce poor performance based on the Return on Investment (ROI - marketing costs subtracted from profit) reports ("10 Rules for More Eﬀective Advertising."). Apart from poor ROI’s, the failure to identify to a specific demographic generates other negative consequences. The exception to this truth is only if consumers have no other options which exists if an enterprise had a monopoly over an industry ("Marketing." Published Interview by Philip Kotler.). As for all other cases, if the marketing method fails to identify to its proper audience, the author (company, enterprise, politician etc.) may suﬀer from branding confusion, which also causes doubt from consumers because it is interpreted as a mixed message. Uncertainty from potential customers causes them to look elsewhere.

The explanation is evident through the second verb from the answer ‘present.’ In a marketing method presentation determines consumer interest for a product idea or service. As an experienced marketing manager Ernie Aguirre for RSM Security would say “The right presentation makes the right sale.” It is then without a doubt that presenting the idea, product or service to its target demographic is then a pivotal aspect of marketing. The only question then is, how should ideas and services be presented to its target audiences?

As the best-selling author on sales techniques and business marketing, Brian Tracy would say, “Consumers make purchases convinced that the product will make an improvement on their lives.” It’s an uncommon truth but does not require significant evidence to defend. For example, people acquire consumer electronics in general on the assumption that the product will add simplicity and convenience to their life. This is apparent because consumer electronics only introduce a new way of conducting everyday tasks from communicating to shopping among others. Companies such as Samsung or Apple are only able to successfully convince the public that their products will make the lives of consumers easier with the right presentation.

Since the purpose of this quest for knowledge is to seek the best method, the right presentation incorporates answers that defend why the product, idea or service will make an improvement on the lives of consumers. Regardless if the product will make the lives of consumers better by adding new conveniences, or making life more enjoyable the right presentation, incorporates all of these justifications within the best method to approach marketing to an audience.

The last aspect of the answer is to clarify to the target demographic. Clarification in any marketing method is crucial because consumers are most likely to be in a buying decision when their doubts have been resolved (Tracy, Brian. The Art of Closing the Sale). Clarification exists as an addition to the previous concept to present. It is needed to prevent confusion and to answer questions that consumers may have before they arise.

FINDING 2 Further research exposed another answer. Examining the recent past shows that there is a correlation between the use of the internet to present new ideas to any audience, potentially a wider audience As mentioned previously, best-selling author Brian Tracy noted that every purchase consumers make is the result of a psychological process where impulses develop reasons for consumers to acquire products and services. The best methods to market ideas or services to any public is then to take advantage of all opportunities to present incentives and reasons to consumers why a product is a necessity. However, out of Brian Tracy’s wisdom, an immediate question arises. How can an organization or enterprise take such measures? The apparent answer is through online marketing. With that in mind, the absolute best method to market an idea or service to a target demographic is to take advantage of online media and web content through the creation of websites, and social pages.

Since the online world has grown into a population that rivals the citizenship of countries, online marketing is not just about a website. In a lot of ways a website geared towards an idea or service is the tip of an iceberg. What inhibits the marketing process to take place is communication (Ely, Preston. "How to Be a Marketing Monster."). As Marketing Supervisor of the Western United States Region for the American Red Cross Ms. Angelia Currie would say, “there is nothing that can ever replace the ability to communicate with another human being when it comes to promoting an idea.” Based on that perception alone, online marketing is not just about having an established presence on every social networking site that exists. Real marketing occurs through online methods when an organization or an enterprises exchanges ideas to a consumer demographic.

To defend online strategies, there are several reasons that can be oﬀered. The first and most logical argument is communicating in methods that are public, enhances a public character of the enterprise or organization (Ely, Preston. "How to Be a Marketing Monster."). The best example to oﬀer would be social networking pages that were created for an enterprise or organization. Websites from Facebook to Twitter, among others display can display an author’s ability to communicate with the public. Other websites such as Yelp, or the Yellow Pages with customer reviews may also enhance a public image. According to seasoned marketing manager Ernie Aguirre of RSM Security, public image is essential towards creating an impression on a target demographic. Having an honorable communication record is what makes a business memorable by a customer. Concurrently, a bad reputation for poor communication enables a customer to remember the experience as well but consumers would recommend great experiences over poor variants. In more simple terms, consumers are more comfortable with

recommending products and services they trust.

To discuss the importance of trust between consumers and businesses in marketing, an online presence can be used to build a bridge of credibility between consumers and organizations. Since the internet has an unlimited amount of information, if a business had a Yelp Page, a Wikipedia article or even a Better Businesses Bureau page, it is certain that consumers would be able to obtain a better peace of mind. While marketing the iPoly Robotics Team and ADT Security Services, online content did not have the same value to the marketing personnel as it did on consumers. Through personal experience, consumers looked for online content as a form of identification. Without an online presence, consumers felt that the establishment was “shady” or “illegitimate.”

The next argument that defends the importance of online marketing would be that the realm is unlimited and the audience is also infinite. In other traditional marketing methods that exclude an online presence, it requires that a company or enterprise find its target demographic (“Measuring the Eﬀectiveness of Online Advertising.”). With the transition into online marketing strategies that task is simplified because of search engines even services such as search engine optimization, which allows a target demographic to find desired products and services. Overall, online marketing strategies can have a significant impact on improving public perception, trust, public image, and popularity.

Apart from insight, there are other pieces of evidence which can prove the value the internet has on marketing based on how other industries are taking advantage of the marketing medium. According to the United States Census Bureau, the size of the retail sector of the American e-Commerce market rose by 16.44% (over $27 billion) between the years of 2010 and 2011 alone demonstrating that the internet is soon becoming ground for businesses to generate sales and revenue. Other statistics also demonstrate an

exponential growth in online business and online consumer usage. Recent estimates from the Interactive Advertising Bureau of France “In 2010, the internet will represent 16% of total advertising expenditure worldwide and this figure could reach 21% in the next four years.” The same independent transnational agency also found that by 2014 marketing budgets will have 45 percent or more of its fund allocated towards online advertising campaigns. And based on all tyne above information, one of the best methods to market an idea or service to a target demographic is to take advantage of online web content.

FINDING 3

It is no doubt that a person’s psychological condition is a factor that determines spending. Although it may sound like common sense, some establishments are still in recluse of proper policies. As mentioned in previous findings, the literary works of best-selling author Brian Tracy defends that every transaction consumers make are impulsive yet whenever they site a valid reason, it only strengthens the impulse to buy into the product or service. The general rule of thumb is consumers spend more for goods and services they see a value or importance towards. This general idea is accepted by everyone and it brings a new light on the topic of marketing. There seems to be a relationship between marketing an idea or service and generating customer satisfaction. It allows a conclusive statement to be made that a way to market an idea or service to a target demographic can be achieved by enhancing the satisfaction of the target demographic. For this reason the third answer regards with improving customer satisfaction and understanding that it is essential towards marketing is due to the eﬀects satisfaction plays in the public perception of an enterprise or organization.

According to Ernie Agruirre a seasoned marketing manager of RSM Security, customers are more likely to recommend an idea or service that they are happy with. This is called a referral. At the same time, customers are prone to speak out against products or services even

organizations who gave them a poor experience. It is all about communicating with a target demographic in ways that generate a memorable positive experience, that can lead to greater success of a product or service. The role consumers play in towards establishing the credibility of an organization makes the satisfaction of any customer vital towards success.

The notion of generating great customer relations presents benefits that are beyond public perception as well. Whenever a consumer is happy about an experience it generates future returns for the organization. A happy client can generate brand-loyalty which brings in consistent revenue over a period of time. A recent article from Inc. Magazine highlighted the importance of great customer service. Journalist, Leigh Buchanan discovered that in a Los Angeles startup company called Drybar, what led to its first million dollars in revenue during its 10 month infancy was returning customers. Not only did the company have a great product, entrepreneurs behind the venture promised to work tirelessly on creating great customer relations. As a result, 70 percent of the company’s first million dollars in profit was generated through returning customers. What exactly did the company Drybar sell? The Los Angeles based startup sold shampoo at $35 a bottle.

Now that it is established what customer and client relations can do for marketing an idea or service, how exactly is it accomplished? When looking at the idea of enhancing satisfaction, it’s important to look for ways customers can feel happy or appreciated. One of those techniques would be through giving discounts, or giving free products and services (Aksu, Hulya. "Customer Service: The New Proactive Marketing.”). Giving away free samples would also serve as advertising. Some companies are able to check in on the happiness of customers through surveys and reward them for an honest opinion. Companies may even have referral reward programs where customers receive perks in referring their friends. Overall, it is evident that there are an endless variety of ways that an organization or an enterprise can show its appreciation for the business clients bring in. The big picture which needs to be remembered when trying to enhance customer relations is making the client feel unique and special through the products or services being oﬀered. Another key principle that cannot be taken lightly is there is “nothing more powerful than the the ability of a human being to communicate.” (Angelia Currie Western United States Marketing Supervisor of the American Red Cross).

Drybar may have been a pure marketing success out of great customer service but generating profits are not the only incentive towards working to enhance customer relations. The marketability positive customer relations presents will have long-term impacts to an organization or enterprise. If acted upon properly, great customer relations is more than capable of generating exponential growth. As more and more clients are happy with a product or service, the higher are the chances of referrals, and positive reviews on online profiles (for instance yelp). As such, creating a framework to focus on customer relations is not only capable of marketing an idea or service to a target demographic, but this can increase the size of an audience.

# P R O C R A S T I N AT I O N ; )

ACTIVITY TIME CREATE YOUR OWN TESLA MODEL S SAMSUNG GALAXY 5 V E G A N R E S TA U R A N T KINDLE FIRE BMW 4 SERIES NON-PROFIT CHARITY NIKON CAMERA S O L I D S TA T E D R I V E P I A G G O P 1 8 0 A VA N T I J E T AIRBUS A380 S O L I D S TA T E D R I V E 3D PRINTER INDUSTRIAL LASER CUTTER CALL OF DUTY M I N I VA N PRIUS

You and one other business partner have just successfully launched a new company. Unfortunately, your company is competing alongside several others for coveted glory, prosperity and success. In order to outsmart your competition you must discover what sets your products and services apart and display your findings to potential customers.

Choose any from the bulleted list to the left, and learn about the attributes that set the product apart from any other. Find at least two pieces of supporting research to prove who is the strongest demographic. From there, create a Plan of Action with your business partner about how you can utilize marketing strategies to set yourselves apart.

Be prepared to present your ideas and answer questions.

Good Luck.