For my very first web post, I will be focusing on the concepts of Chapter 1 which briefly skims through the basics of Marketing. I will be concentrated in the value-based marketing era which is the new generation of marketing. With value- based marketing, the idea is to grasp the customer’s wants and needs. By doing this, the product must satisfy them and make a lasting impression which separates their product from the competitors. According to the textbook, value is defined as the benefits received from the cost of an item(Grewal, 2023). In other words, buyers will pay any amount of money to get a particular product just to satisfy their desire and get the best value for their dollar.
In the book as described as a unique way to get customer engagement, the use of value co-creation allows the customer base to collaborate with the brand in product decision making. A trend which corporations are trying to incorporate is relational orientation which is basically making each interaction with the customer as maintenance in the relationship. To do such a thing. Companies keep an eye out for profits by changing and shifting their focus based on the customer’s actions. Making use of the Customer Relationship Management (CRM) method, the company sets up loyalty programs in which the customer benefits from using their products(Grewal, 2023). By doing this, there is high customer retention, and the customer will remember the brand which will make them keep coming back for more.
Now moving on to real world examples will be focusing on a couple of examples shown in the textbook. First, given the growth of Big Data, companies use the data to create better analytics for their marketing strategies. Companies like Amazon, Disney, and H-E-B all study their customer’s buying patterns in order to better position themselves in the market(Grewal, 2023). If we use the textbook example of Hertz, with the convenience of biometrics customers can easily get inside their cars without the hassle of paperwork. Just need to scan ID and do a face scan which will get the customers on their way (Grewal, 2023). By implementing this new technology, Hertz builds a fast and easy experience for their customers.
Another example is now hotels have their own Facebook page and mobile app. With this convenience. It’s easy for customers to make an account and fill out room reservations to make the check in and out processes faster(Grewal, 2023). Post pandemic, the use of social media Tik Tok clips, YouTube Shorts, and Facebook Reels have made short form content a reality. The modern generation (Gen Z) have a short attention span which makes this form of content marketing a great option for growth and exposure for the product to the public eye.
Going into the outside of the textbook, we can take a look at two examples in the entertainment industry. Just recently Youtuber, Richard Rawlings better known as Gas Monkey Garage, made a Ford F-100 Truck Build based on three pickup trucks he found in the junkyard and audience choose which truck to be built as well as paint, engine, wheels, interior colors, and brakes (Imtiaz, F., 2024). This was the first build which Gas Monkey did with his audience. This method is similar to co-creation given that the viewers are the ones who decide what parts go into the truck (Imtiaz, F., 2024). Subscribers who join his loyalty squad by buying his merchandise from his online store, get to participate in his giveaways to win fancy sports cars and trucks making it a CRM method to grow the business.
Another example would be the Fast and Furious movies done by Universal. Given that back in 2001 Universal wanted to create an action car movie with a diverse cast and focus on the storyline, they created Fast and Furious. After the first three movies were made and which heavily focused on the early 2000’s tuner car culture, the Universal Marketing team noticed a drop in ticket sales. They realized only a small group of the core audience really cared about the cars. So, they had a bunch of small test groups where the marketing team would ask individuals if they knew anything about the franchise or the characters (Mendelson, S, 2017). After conducting the studies, they realized that many of the audience members didn’t know the actors names or didn’t show interest in the car races anymore (Mendelson, S, 2017). Ultimately Universal decided to reboot the franchise with majority of the original main four cast members in 2009’s Fast and Furious and focus more on the action aspect of the franchise rather than just the cars themselves. They saw a massive jump in ticket sales of 360 million for the 4th installment compared to the 3rd installment Tokyo Drift which was 159 million (Mendelson, S, 2017). After the success of the reboot, they realized having the core cast members, fast cars, action packed set pieces, and mega movie stars like The Rock money can be made from this franchise and satisfy shareholders. Overall, with all these things discussed above makes companies better understand their customers through analyzing the data to make the best marketing choices to satisfy the consumer’s needs.
References
Grewal, D., & Levy, M. (2023). M: Marketing. McGraw Hill.
Imtiaz, F. (2024, January 3). You’re in control: Vote on our first build of 2024. Gas Monkey Garage. https://www.gasmonkeygarage.com/blogs/videos/youre-in-control-vote-on-our-first-build-of-2024
Mendelson, S. (2017, April 13). Universal’s “fast and furious” marketing triumph. Forbes. https://www.forbes.com/sites/scottmendelson/2014/04/03/universals-fast-furious-marketing-triumph/?sh=119efbf77534
