Essays on Rating Customers According to Their Promptness to Adopt New Products Assignment

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The paper "Rating Customers According to Their Promptness to Adopt New Products" is a wonderful example of a Marketing Assignment. Social media are websites and other forms of online communication that are used by large groups of people to share information and to create social and professional networks. Social media can include text, video, images, podcasts, audio, and other multimedia communications. In its most basic sense, social media is the fusion of sociology and technology hence a shift in how people discover, read, and share news and information. Social media have the capacity to facilitate sharing of conversations which start locally but have a global impact.

Some of the most prominent examples of social media applications include Wikipedia (reference and content sharing), MySpace (Social networking), YouTube (Video sharing), Gather. com (social networking), Facebook (Social networking), SecondLife (Virtual reality), Flickr (photo sharing) and Miniclip (game sharing) (Gentle, 2009). ABC Radio uses various media channels to communicate with its target market. The most prominent social media applications that ABC Radio runs are Facebook and Twitter. Through these applications, the company aims to not only attract and retain a large number of customers but to also keep in touch with the customers by informing and entertaining them.

Basically, ABC Radio’ s services can be classified into three main categories: delivering news information; commercial communication and entertainment. All these services are easily carried out through the company’ s social media participation and describe the main messages that the company passes to its target customers (Ahern, 2000). For ABC radio, social media channels represent inbound marketing channels which are different from the advertiser drove marketing models. Therefore social media are the company’ s most interactive form of marketing.

The main marketing purposes that social media channels serve include informing people about product brands and persuading them to purchase the products. Unlike the traditional means of marketing, social media channels allow ABC radio to understand its customers and prospects in ways that were previously not possible. This knowledge and information are paid off with output of respect, honesty ad trustworthiness. Because social media enables potential customers to participate, comment and generate content as a means of communicating with the company it is an interactive marketing tool that ABC Radio can exploit readily (ABC Radio Website). One of the reasons why ABC Radio has chosen social media as a major marketing tool is that it personalizes the brand and helps to spread messages in relaxed and conversational ways.

Essentially, building a healthy relationship with customers in an on-going process that requires continuo innovation of products. Social media takes this a step further by making that relationship personal through blogs. ABC Radio is of the view that blogs which consist of videos, text, and pictures easily build loyalty and interest among customers (ABC Radio Website). Question 2 Lifestyle segmentation is the process of categorizing customers into groupings based on their hobbies, interest and other aspects of their lifestyles.

As a marketing concept, lifestyle segmentation calls for understanding the unique needs of different customer categories and satisfying their needs better than the competition (Rheingold, 2002). A good market segmentation strategy results in segments that are internally homogenous and externally heterogeneous. This means that the customers should exhibit similarities within segments and differences between segments. Generally, lifestyle segmentation is done based on potential customer’ s activities, opinions, interests, values, and attitudes.

It can also be done based on the benefits that customers seek, user status, willingness to buy and occasions that stimulate purchases. Perhaps, the most common criterion for conducting lifestyle segmentation is Roy Morgan’ s value segments. The value segments provide a depth of understanding which helps marketers explore the motivations and reasons for purchase. The value segments are based on people’ s responses to six different patterns of behavior. These patterns are quality (how high or low the expectations of quality are); individualism; life satisfaction; innovation; price appeal and conservatism (traditional versus progressive social attitudes).

In view of these dimensions, it can be deduced that the Roy Morgan value Segments provide a market segmentation process based on patterns of thinking, which area Los the drivers of choice and change (Ahern, 2000).                         ABC radio uses Roy Morgan’ s Value Segments to market its products which include opportunities for commercial adverts and entertainment. ABC radio has chosen Roy Morgan’ s because of the realization that the market is dramatically becoming more diverse and fragmented.

Generally, ABC Radio’ s audiences are narrower in focus and highly demanding of targeted information. Essentially, people only want to hear what fits into their preferences for micro-futures and tune-out the efforts of mass marketing that do not address their life goals. In light of this consideration, ABC Radio has segmented its target audience in terms of birthplace, education, age, and income. The company has also targeted its consumer markets in terms of prior purchase behaviors and has hence developed a strategy for brand loyalty on the basis of customer characteristics (Hochbaum, 2011).                       ABC radio is of the view that with increasing income, education and social mobility, comes an increasing tendency of individualization.

This is characterized by a reduced acceptance of corporate values, differences, and personal development and an increasing search for diversity. This way, market behavior becomes a real opportunity for personal expression, excitement, and exploration. They are these forces that have conspired to make ABC Radio’ s marketing segmentation a market-driven experience (ABC Radio Website).                               Question 3                       A reference group refers to people whose behavior, believes, attitudes, opinions, and values are used by other individuals as the basis for their judgment.

For many consumers, the decision to purchase a certain product or service is influenced by psychological factors, personality, and lifestyles but also by the decisions and preferences of other people. These people with whom one interacts together with their social groupings directly or indirectly influence purchase decisions. In marketing, the use of reference groups is a very persuasive tool that is widely used to get the attention of specific groups of people (Thompson & Hickey, 2005).                       To a great extent, ABC Radio uses reference groups as a major tool for marketing communication.

For ABC radio, there are three broad categories of reference groups. The first category is the primary and secondary reference groups. Primary reference groups are ones with which individuals interact on a regular basis and whose opinions are of major importance to an individual. Family members, neighbors, colleagues, co-workers, and close friends are some of the reference groups which ABC Radio uses to advertise to its target audience. Secondary reference group, on the other hand, are those groups with which individuals interact occasionally but whose opinions cannot be considered to be very important (Hochbaum, 2011).

                      The second category of reference groups according to ABC radio comprises the formal and informal reference groups. Labor unions, societies, and social clubs are some of the best examples of formal reference groups to which an individual may belong. Generally, formal reference groups have highly defined structures, authority positions, specific goals, and roles. By targeting these groups, ABC radio aims to reach out to a large number of potential customers. In contrast, informal reference groups are loosely defined and may lack specific goals and roles.

Nevertheless, they are greatly used to pass important marketing communication messages (Ahern, 2000).                       The other important category of reference groups that ABC uses as a marketing tool is membership and symbolic reference groups.   Membership reference is a strategy through which ABC Radio markets to an individual who belongs to specific membership groups. For instance, the company targets employees in industries. ABC Radio has long realized that referral selling is not only persuasive but also proactive. By providing free information that can be easily located in customer searches, the company aims to make it easier to find products or services which are likely to appeal to their tastes and preferences.

Through the referral approach, ABC radio takes its information to prospective customers and collects essential feedback with which it develops new products and services. The approach, however, requires the company to have an in-depth understanding of potential referral groups, what their interest is and what the need.   The radio never forgets that its customers are likely to tell others in their referral group about their experience (ABC Radio Website).

References

ABC Radio Website. (2012). http://www.abc.net.au/radio/.

Ahern, S. (2000). Making Radio: A Practical Guide to Working in Radio. Allen & Unwin.

Gentle, A. (2009). Conversation and Community: The Social Web for Documentation. Fort Collins, CO: XML Press.

Hochbaum, D. S. (2011). Rating Customers According to Their Promptness to Adopt New Products. Operations Research, 59(5), p. 1171-1183.

Rheingold, H. (2002). Smart mobs: The next social revolution (1st printing ed.). Cambridge, MA: Perseus Pub.

Thompson, W. and Hickey, J. (2005). Society in Focus. Boston, MA: Pearson.

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