Behavioral Implications of Big Data, Marketing and Advertising News, AND BrandEquity

This image is for representation purposes only.

By S Ramesh Kumar and Sairam Krishnamurthy

As the marketing scenario has radically changed, digital connection and big data are likely to be important aspects of the foundation of a brand’s strategy. The job of the brand manager has become all the more difficult given the situation in which the role will not only have to obtain information from primary data, but also from big data. There is yet another dimension to digital marketing, with modern outlets competing in significant ways.

Brands already treat this channel with great respect as the channel is likely to become futuristic.
While Kirana stores are here to stay, the emergence of omnichannel may represent a whole new opportunity for large format retail outlets. One of the perpetrators had seen Kirana stores in a housing community about 2-3 km from the nearest supermarket (which is not on a large scale) in one of the subways, bearing the logo of a great modern point of sale brand. . The slightly larger kirana, larger than a typical kirana, had several products and storage units provided by the modern retail brand.

Big Data and Consumer Behavior – a Powerful Combination

There are various reasons why the current scenario calls for experts in big data and consumer behavior.

* Insight is something that a consumer is unable to articulate in surveys and other field surveys, and qualitative research that can probe unstated needs requires a high degree of knowledge of consumer behavior, as it delves into the consumer’s subconscious. For example, when asked about the best moisturizing effects of a bar of soap, consumers may provide the answer, but this attribute may or may not be an important part of the brand’s proposition. The consumer can respond because she is being questioned. E Bay the famous online portal was created by the founder when he couldn’t find what his fiance wanted through the classifieds. This idea brought a new wave online and spawned several of these online portals. Research published in Journal of Consumer Behavior mentions the consumer’s desire to have three levels of loyal programs so that they can feel better about themselves if such a feature is practiced while categorizing loyal consumers! This example does not concern Big Data but the growing potential to incorporate value-added strategies for a brand, taking into account behavioral insights.

* Big Data allows a marketer to explore data that can identify a pattern that may be useful. Besides the dormant needs of the consumer, Big Data offers an opportunity to analyze not only the purchase intention as in the traditional approach; it can open up new ways of acting on purchasing acts that might not otherwise be observable. And with the advantage that there is a clear database of consumers who can be approached if they wish to have a long term relationship with the modern brand / retailer. It can be a win-win situation for the consumer and the retailer. What starts out as transactional marketing can grow into solid relationship marketing, a powerful weapon for a brand in today’s world of changing loyalties.

* With the emergence of several modern outlets and the arrival of big brands in the market, Big Data also allows a retail brand to know where its competitive advantage can be identified by its strength and limitations. There may be two large outlets nearby (in a city like Bangalore) and these two brands would have their strengths and limitations in addition to the “common merchandise”. It is important for a brand to capture a model that would be the most useful for it in comparison with its competitor. Observing and analyzing big data can enable a brand to decide how unique their loyalty program needs to be to have long-term impact. on its loyal consumers.

Behavioral insights from Big Data as captured from market realities

The authors would like to provide an example to reflect the importance of the topic of the article to marketers. in the current context, there may no longer be compartmentalized categories in a consumer’s mind. Mindscape is full of competitive offers and clutter. Consumers are looking for savings, promotional offers, specific brand announcements, point-of-purchase storage units and brand availability, all of a sudden to name a few factors. When similar offers compete with each other in terms of substitutability, the consumer can try out a few storage units from several offers before settling on one or more brands.

The consumer can even switch between brands. Take, for example, health offerings for growing children – the range covered may cover categories such as heavily advertised brands of milk additives, healthy cookies, cereals that promise many healthy ingredients, and local packaged cereals. which carry the proposition that they do not contain chemical additives. . Later, the market can also see a kitchen kit that contains all the ingredients for a healthy offering. Incidentally, the mother will also have the satisfaction of having participated in the healthy service served to her children, besides the nutritional proposition made by such a brand, the mother’s feeling of guilt is also addressed in a context that has working couples. In such a scenario, it is Big Data that sheds light on several aspects of consumption, storage units sold across categories, the feasibility of loyalty segments and promotional offers (to name just a few relevant factors) and therefore opportunities for profitability.

Digital marketing and big data cannot work in isolation, because mentalities matter.

S Ramesh Kumar is Professor of Marketing at IIM Bangalore and Sairam Krishnamurthy is Director of Marketing at More Retail Private Limited.

The best example of the relationship between price, value and product can perhaps be seen when a consumer buys a car with a perceived value including price, features, benefits which also include social status …

Source link


Comments are closed.