1. What is meant by growing ethnic markets? Why are they important now? 2. Compa
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1. What is meant by growing ethnic markets? Why are they important now? 2. Companies have quickly found out that ethnic markets are not homogeneous. What are the marketing implications of the previous statement. For example, you can't arbitrarily assume that all Hispanics or African Americans will prefer the same brands, or that they use the same criteria for making purchases. 3. What do you think would be the marketer's response to pricing its 4. How might consumer buying habits change during a recessionary 5. Provide some examples of how technology has driven various products during a time of inflation? How about a recession? period? industries. You might want to target a particular industry like health care or computers. 6. Give 3 examples of how technology has benefited marketers. 7. Can you think of some companies that have been hurt or no longer exist because they did not keep up with technology? 8. Provide marketing examples of violations of each of the following acts of legislation: Select 2 of the following. a. Sherman Act b. Clayton Act c. Federal Trade Commission Act d. Robinson-Patman Act e. Wheeler-Lea Amendment to the FTC ActExplanation / Answer
1.Ethnic Marketing comprises of marketing efforts and instruments used to target specific ethnic groups within a society and to satisfy their particular needs.
Research has shown that around 7% of the population in London are from Black African, or Indian heritage. On top of that, emerging studies suggest that the number of UK citizens from ethnic communities is expected to grow significantly in the following decades, reaching between 20 and 30% by 2050.
With so much potential spending power lying in the hands of the multicultural public, it’s clear to see why businesses would benefit from thinking more carefully about who their future customers will be.
2.
One of the main reasons why successful businesses achieve significant growth – is that they actually make the effort to really understand their audience. One of the most popular, and effective ways of doing this, is to use customer segmentation.
Simply put, this process allows you to identify and pinpoint the specific demographics that exist within your customer pool.
The more you know about who you are marketing too, the more likely you are to develop products and marketing schemes that appeal to the tastes of each individual buyer.
Keep in mind that ethnic advertising isn’t just about segmenting customers in terms of the language they speak, but also considering things like:
When you take all of these different concepts into account, your multicultural advertising efforts can lead to a number of fantastic benefits for your brand, including:
1. Cost Reductions
The old-fashioned concept of “mass-marketing” in an attempt to capture the attention of the widest-possible selection of consumers generally leads to mixed results and enormous costs.
On the other hand, ethnic marketing and careful segmentation limits the field of customers you are reaching out to, and allows you to use your budget more effectively in each area.
For instance, rather than wasting your money on using the same message to appeal to an audience who can’t understand your USP, you can craft a message that will have a specific meaning for a specific audience – leading to increased interaction and better results.
2. Product Development
Focusing on the individual needs of the different people within your typical audience will allow you to tailor your services and products to meet the needs of certain customers.
So, if you offer software as a service, you might find that customers from different cultures are more likely to purchase a specific bundle of tools or applications. With that in mind, you could consider linking those products in retargeting campaigns, or offering a new deal that offers a discount to customers in need of a specific range of software solutions.
3. Wider Markets
The more you use multicultural marketing to examine the current audience you’re interacting with, the more you will be able to pinpoint gaps in your service that may not be appealing to particular ethnic groups.
For instance, you might discover that you’re missing out on doing business with a huge portion of the general public, simply because you don’t have translations on your product page for people who don’t speak English.
4. Better Business Focus
Careful segmentation can also help your business to identify areas where it needs to narrow its focus.
While it might seem like a wonderful idea to attempt to offer something for “everyone”, the truth is that doing this could damage your Unique Selling Point, and make limit your brand identity.
Figuring out who your biggest customers are will help you to determine which routes you need to take with your company, and how you can focus your efforts to improve the things that are already working well for you.
5. Customer Retention
Simply using segmentation to appeal more directly to specific audience members can be enough to make the people within your customer base feel as though you care about their needs.
This is important when it comes to building trust between yourself, and your users, and establishing a foundation for good customer retention.
3.Marketer can cope inflation by following means:
1. Understand Your Customers. There are at least four ways in which customers can respond to higher gas prices: downgrade from premium to regular; take fewer trips by car, consolidate errands, switch to public transportation; take the same number of trips but reduce the miles driven per trip by, for example, vacationing closer to home; drive more economically and less aggressively to improve miles per gallon; and buy a specific dollar amount of gas rather than filling up every time, even though this may mean more visits to the pump. Some consumers may even trade in (at a loss) the SUV for a hybrid, an example of how price inflation on one product can cause demand shifts in a second, related, category.
2. Invest in Market Research. You must discard your existing customer segmentation assumptions and segment consumers around product usage behavior and price sensitivity. You must get out into the marketplace yourself and talk to consumers directly to understand their pain points and how they are changing attitudes and behaviors in response to price inflation. You must then quantify these shifts and develop product and pricing strategies that balance the need to maintain both profitability and market share.
3. Redefine Value. Customers buying soft drinks can think about price in three ways: the absolute cost per can or bottle, the cost per ounce, and, less common in this category, the monthly consumption cost. Customers short on cash will focus much more on the absolute price. They’ll go for the 99 cent soft drink rather than the $1.29 container with 50% more volume. To motivate cash-poor consumers, marketers must reverse engineer products and packaging to hit key retail price points. This may mean downsizing package sizes, something the candy industry always does in response to inflation.
4. Use Promotions. If you’ve always passed through raw material price increases to the end consumer, you don’t necessarily need to change that policy. However, lagging competitors in passing on price increases can have the same effect as a temporary price promotion. More customers than usual will be looking out for price promotions, but don’t give away the store to those who don’t need the discount, and cut prices not across the board but only on items selected as your inflation-busters. For cash poor consumers, these promotions should hit the key price points on small pack sizes. For cash rich consumers, encourage multi-unit purchases ahead of the inevitable next price increase.
5. Unbundle. Customers who previously welcomed the convenience of buying product, options, and services rolled into one may now ask for a detailed price breakdown. Make it easy for your more price-sensitive customers to better cherry-pick the options and services that they truly need by giving them an unbundled menu of options.
6. Monitor Trade Terms. Beware of powerful distributors paying you more slowly than they turn the inventory they buy from you. In an inflationary environment, they’re making money on the float by stretching their payables. Manage your inventory on a last-in, first-out basis to insure that increases in your realized selling prices do not trail the increases in your input costs.
7. Increase Relevance. You need to persuade customers to cut back their expenditures on other products, not on yours. In tough times, consumers more than ever need and deserve the occasional treat. So, if you are Haagen Dazs, tell the consumer to substitute private label peas for the name brand but to not forego the comfort of curling up on the sofa with a tub of her favorite ice cream. Strong brands can hold consumer loyalty while increasing retail price points. Weaker brands risk private label and generic substitution.
Clearly, not all marketers are equally affected by price inflation. Commodities like gasoline, where the manufacturer adds little value before the product reaches the end consumer, are more vulnerable, while sales of the most exclusive global luxury brands hold up pretty well regardless of price. Especially challenged are marketers of goods and services for which consumers don’t necessarily understand the input costs: decorative candles, for example, are highly sensitive to oil prices and the purchases are discretionary. The key here is to educate the consumer, apologize for the uncontrollable price increases, give price-sensitive consumers some promotional options, and reemphasize product benefits.
4.The consumers' reaction towards inflation is imperative. Consumers are the biggest source of demand for the goods and services produced by the economic system of any country. Consumers in past has shown their attitude of spending disposable income, every time when there has been recession or has been a drastic change in an external environment. They allocate their budget for consumable goods in such a way that even if they have to go without some products in their daily life because of the rising prices, they either switches to a lower range product or simply try to save that money for future.
During recessionary periods, the cost to households of durable stocks accumulated under times of more optimistic income expectations may decline by more than fixed life and straight-line depreciation assumptions (Bernanke, 2005). When this occurs, specification of consumption functions in flow of services definitions or with a total wealth variable as usually estimated, leads to problems both for the testing of theories and for fore- casting.
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