Emotional Marketing
Content
ASSIGNMENT ON
SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
WITH REFERENCE TO EMOTIONAL MARKETING WITH RESPECT TO RETAIL BANKING PRODUCTS
Submitted to, Prof. Neetu Sharma Submitted by, Name: Prerna Lodha Roll No.: 42 Class: MBA- Finance I
Marketing with Emotions
(To Play the Emotional Tune is the necessity of today's marketing) To achieve higher success in marketing basic understanding of human psychology is required which has been realized by marketer. The concept of emotional marketing has helped marketer in understanding what attributes is to be added in their product and how it is to be communicated to the prospects. Consumer purchases product not because of the feature but because of benefits. It is all about winning mind of customers; it is about getting share in customers' heart more than share in customers' wallet. "Attaching Emotional Value to a Product or service" INTRODUCTION Gone are the days when producers were regarded as king of the market, they use to decide which products were to be produced, size, color, features were decided by the producers as customers were concerned about the availability of the product due to nonexistence of alternatives, that era was producers era. Slowly scenario changed many producers came into the market and competition entered in the market, customers started getting choice and era of marketing started. Customers became the king of the market. Now producers started manufacturing product as per customers' desire. Market was bombarded with n number of products. Each and every marketer started providing products with numerous features and gradually all the marketer continuing providing same type of product with similar features and same price. Marketer realized for survival they will have to change their marketing strategies.
Marketer realized that human beings are quite emotional in nature and they take their purchase decision emotionally, and if customers' emotions are hit in right manner, they can get more loyal customers. There came a new model in marketing and that is emotional marketing.
NEED OF EMOTIONAL MARKETING ARISES
This concept has been followed by big corporate' from decades. To achieve higher success in marketing basic understanding of human psychology is required which has been realized by marketer. This has helped marketer in understanding what attributes is to be added in their product and how it is to be communicated to the prospects. Customers buy products either to satisfy their needs or their desires. Marketers are inquisitive in knowing what motivates customer to purchase a product. For instance, customers aren't buying Shampoo just to clean their hair but they are buying a now look for their hair. Car is not purchased only for transportation but for maintaining status. But if customers are considered as bundle of emotions that is completely imprudent thought and if well thought-out as only calculating machine that is also a failure.
Marketers add emotions in their appeal to entice their prospects. Just think about the last purchase you have made, for any product. What was concealed force that has compelled you to purchase that product, to check your purse, bank balance; it was emotion, was not it? You believe it or not but for making purchase decision some percentage of emotions are always involved. Emotion act as fuel in the engine of purchase decision process. Customers always put in logic behind every purchase and try to prove that he/she has made rational decision and emotion has not played any role, but the ultimate driver is the emotion which has played major role in final purchase decision, whether believed or not. Rationality is required but it just only generates interest in product, its emotion which ultimately leads customers to purchase. Customers are not much interested in attributes of the product; they want to know how that product suits their personality. It is not in the case of single customer, all customers behaves in same manner that's why marketers always make their customers feel about product and services they provide. Customers purchases products emotionally and then rationalize their choice intellectually.
Marketers mostly follow concept of emotional marketing, they endeavor to include more emotions as emotional marketing is more profitable than rational marketing in many cases as emotional marketing is all about winning mind of customers, it is about getting share in customers heart more than share in customers wallet. Emotional marketing if strategically deployed can remove the rational questions which can take prospects to some other products.
Some marketers believe that if they provide value added products to the customers they will be able to close the deal but they fail miserably, as it does not ensue every time. Marketer should communicate their product as value driven emotions and utility oriented motive to obtain attention of customers. Customers do not always behave as calculating machine. They breathe, weep, enjoy and having a heart which drives with emotions, they always get attracted with the products which makes them feel and they get attached with the product emotionally. Now question is how customers take decision for purchasing product? How do they evaluate the product? What are different criteria they consider at the time of making decision? EVALUATION CRITERIA OF CUSTOMERS Consumers consciously or unconsciously evaluate products on several criteria, some of them are:
•
Affordability: Customers are interested in purchasing those products which are economical i.e. fits in their budget and make them to feel.
•
Technological: Customers are well informed nowadays. Customers are interested in product which possess additional features, can perform various functions and must be easier to deal with. They bargain on technological aspects while purchasing. These reasons compel marketers to fight in the battle field with extra features and ease of use. ICICI LOMBARD provides an EMI calculator where any consumers can calculate their EMIs, Interest rates, Balance Loan amount Pride: An example is a private, exclusive membership that is costly, but will give the purchaser notoriety and can be used as a powerful marketing element on its own, once purchased.
•
Future Planning: Tata AIG's `boy planting a sapling that grows into a tree' works on the idea of planning ahead. The company also uses brand ambassadors. Says Mull, "We have two ambassadors - Naseeruddin Shah for Nirvana Pension and Harsha Bhogle for Maha Life. Both ambassadors connote credibility and respect. Harsha, for instance, signifies being an IIM Ahmedabad product, a `numbers' guy and so on."
•
Achievement: Human beings in this world desire for some or other achievements in their life and even they expect these achievements from the products which they purchase. Now question arises that how products can fulfill their desire of achievements? Marketer frames and communicates their message in such a manner that it encompasses the idea of achievement. Status: Different income levels of customers' shows different purchasing patterns to maintain their standard of living. Higher income group customers' go for diamond, platinum, Mercedes to maintain their status. For them silver and gold are inferior goods but for middle class customers these are superior items. Perception of customers behind purchasing any financial product that it should contribute to status even if customers spend small percentage of their income for that product. Priority Banking is an example of status
•
•
Security: Insurance products are best example of this criterion. Marketers appeal customers through fear in their messages. "Papa please yeh rakh lo" a father thinks about his future where his daughter is giving money for his fulfillment of his daily requirements and then he realizes importance of Insurance in life. This is the most important factor as customers are always interested in securing themselves. Or the recent ICICI Prudential add in which Mr. Amitabh Bachan asks the security guard at the airport wheter he has secured his family. The security guard says a no. Mr Amitabh asks him that he gives security to people but what about the security of his family?
•
Belongingness: Human beings live in social groups. They want to confirm to their society, they feel humiliated if they don't match. So they constantly try to stride for those products which balance their self esteem and membership in society. So products which raise their self-esteem and satisfy them emotionally are favored. ICICI Prudential "We cover you at every step in life" Self Respect: HDFC Standard Life, for instance, uses the idea of `self respect' as its platform. M. Suresh, General Manager (Sales), says, "While selling insurance, it does not work if you remind people of their imminent death. Instead of selling insurance by offering protection and safety, we use the platform of self-respect." The TV ad features multiple relationships — those between husband and wife, father and son, grandfather and grandson. The family members refuse help from each other because they have their `self-respect.' They use the tagline “Sar Uthakar Jiyo” Effortless: We all are living in the era where maximum number of task can be performed with a simple click. Customers of today are interested in getting everything without performing anything. They are interested in those products where minimum or less energy is expended for the fulfillment of the task. Exapmle previously banks were offering only limited services, customers use to stand in queue for hours for simple transaction, but now all the banks are offering n number of benefits to the customers like 24 hour ATM facility, internet banking, phone banking and many other. Now one can withdraw money very easily there is no need to stand in queue for long hours, funds can be transferred from one account to another, from one city to another country within a fraction of second. ICICI Bank in their promotional strategies highlights all their features of effortlessness (8-8 banking, internet, phone banking etc.) with full of emotions, that's why now it is first preference of customers.
•
•
SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT
WITH REFERENCE TO EMOTIONAL MARKETING WITH RESPECT TO RETAIL BANKING PRODUCTS
Submitted to, Prof. Neetu Sharma Submitted by, Name: Prerna Lodha Roll No.: 42 Class: MBA- Finance I
Marketing with Emotions
(To Play the Emotional Tune is the necessity of today's marketing) To achieve higher success in marketing basic understanding of human psychology is required which has been realized by marketer. The concept of emotional marketing has helped marketer in understanding what attributes is to be added in their product and how it is to be communicated to the prospects. Consumer purchases product not because of the feature but because of benefits. It is all about winning mind of customers; it is about getting share in customers' heart more than share in customers' wallet. "Attaching Emotional Value to a Product or service" INTRODUCTION Gone are the days when producers were regarded as king of the market, they use to decide which products were to be produced, size, color, features were decided by the producers as customers were concerned about the availability of the product due to nonexistence of alternatives, that era was producers era. Slowly scenario changed many producers came into the market and competition entered in the market, customers started getting choice and era of marketing started. Customers became the king of the market. Now producers started manufacturing product as per customers' desire. Market was bombarded with n number of products. Each and every marketer started providing products with numerous features and gradually all the marketer continuing providing same type of product with similar features and same price. Marketer realized for survival they will have to change their marketing strategies.
Marketer realized that human beings are quite emotional in nature and they take their purchase decision emotionally, and if customers' emotions are hit in right manner, they can get more loyal customers. There came a new model in marketing and that is emotional marketing.
NEED OF EMOTIONAL MARKETING ARISES
This concept has been followed by big corporate' from decades. To achieve higher success in marketing basic understanding of human psychology is required which has been realized by marketer. This has helped marketer in understanding what attributes is to be added in their product and how it is to be communicated to the prospects. Customers buy products either to satisfy their needs or their desires. Marketers are inquisitive in knowing what motivates customer to purchase a product. For instance, customers aren't buying Shampoo just to clean their hair but they are buying a now look for their hair. Car is not purchased only for transportation but for maintaining status. But if customers are considered as bundle of emotions that is completely imprudent thought and if well thought-out as only calculating machine that is also a failure.
Marketers add emotions in their appeal to entice their prospects. Just think about the last purchase you have made, for any product. What was concealed force that has compelled you to purchase that product, to check your purse, bank balance; it was emotion, was not it? You believe it or not but for making purchase decision some percentage of emotions are always involved. Emotion act as fuel in the engine of purchase decision process. Customers always put in logic behind every purchase and try to prove that he/she has made rational decision and emotion has not played any role, but the ultimate driver is the emotion which has played major role in final purchase decision, whether believed or not. Rationality is required but it just only generates interest in product, its emotion which ultimately leads customers to purchase. Customers are not much interested in attributes of the product; they want to know how that product suits their personality. It is not in the case of single customer, all customers behaves in same manner that's why marketers always make their customers feel about product and services they provide. Customers purchases products emotionally and then rationalize their choice intellectually.
Marketers mostly follow concept of emotional marketing, they endeavor to include more emotions as emotional marketing is more profitable than rational marketing in many cases as emotional marketing is all about winning mind of customers, it is about getting share in customers heart more than share in customers wallet. Emotional marketing if strategically deployed can remove the rational questions which can take prospects to some other products.
Some marketers believe that if they provide value added products to the customers they will be able to close the deal but they fail miserably, as it does not ensue every time. Marketer should communicate their product as value driven emotions and utility oriented motive to obtain attention of customers. Customers do not always behave as calculating machine. They breathe, weep, enjoy and having a heart which drives with emotions, they always get attracted with the products which makes them feel and they get attached with the product emotionally. Now question is how customers take decision for purchasing product? How do they evaluate the product? What are different criteria they consider at the time of making decision? EVALUATION CRITERIA OF CUSTOMERS Consumers consciously or unconsciously evaluate products on several criteria, some of them are:
•
Affordability: Customers are interested in purchasing those products which are economical i.e. fits in their budget and make them to feel.
•
Technological: Customers are well informed nowadays. Customers are interested in product which possess additional features, can perform various functions and must be easier to deal with. They bargain on technological aspects while purchasing. These reasons compel marketers to fight in the battle field with extra features and ease of use. ICICI LOMBARD provides an EMI calculator where any consumers can calculate their EMIs, Interest rates, Balance Loan amount Pride: An example is a private, exclusive membership that is costly, but will give the purchaser notoriety and can be used as a powerful marketing element on its own, once purchased.
•
Future Planning: Tata AIG's `boy planting a sapling that grows into a tree' works on the idea of planning ahead. The company also uses brand ambassadors. Says Mull, "We have two ambassadors - Naseeruddin Shah for Nirvana Pension and Harsha Bhogle for Maha Life. Both ambassadors connote credibility and respect. Harsha, for instance, signifies being an IIM Ahmedabad product, a `numbers' guy and so on."
•
Achievement: Human beings in this world desire for some or other achievements in their life and even they expect these achievements from the products which they purchase. Now question arises that how products can fulfill their desire of achievements? Marketer frames and communicates their message in such a manner that it encompasses the idea of achievement. Status: Different income levels of customers' shows different purchasing patterns to maintain their standard of living. Higher income group customers' go for diamond, platinum, Mercedes to maintain their status. For them silver and gold are inferior goods but for middle class customers these are superior items. Perception of customers behind purchasing any financial product that it should contribute to status even if customers spend small percentage of their income for that product. Priority Banking is an example of status
•
•
Security: Insurance products are best example of this criterion. Marketers appeal customers through fear in their messages. "Papa please yeh rakh lo" a father thinks about his future where his daughter is giving money for his fulfillment of his daily requirements and then he realizes importance of Insurance in life. This is the most important factor as customers are always interested in securing themselves. Or the recent ICICI Prudential add in which Mr. Amitabh Bachan asks the security guard at the airport wheter he has secured his family. The security guard says a no. Mr Amitabh asks him that he gives security to people but what about the security of his family?
•
Belongingness: Human beings live in social groups. They want to confirm to their society, they feel humiliated if they don't match. So they constantly try to stride for those products which balance their self esteem and membership in society. So products which raise their self-esteem and satisfy them emotionally are favored. ICICI Prudential "We cover you at every step in life" Self Respect: HDFC Standard Life, for instance, uses the idea of `self respect' as its platform. M. Suresh, General Manager (Sales), says, "While selling insurance, it does not work if you remind people of their imminent death. Instead of selling insurance by offering protection and safety, we use the platform of self-respect." The TV ad features multiple relationships — those between husband and wife, father and son, grandfather and grandson. The family members refuse help from each other because they have their `self-respect.' They use the tagline “Sar Uthakar Jiyo” Effortless: We all are living in the era where maximum number of task can be performed with a simple click. Customers of today are interested in getting everything without performing anything. They are interested in those products where minimum or less energy is expended for the fulfillment of the task. Exapmle previously banks were offering only limited services, customers use to stand in queue for hours for simple transaction, but now all the banks are offering n number of benefits to the customers like 24 hour ATM facility, internet banking, phone banking and many other. Now one can withdraw money very easily there is no need to stand in queue for long hours, funds can be transferred from one account to another, from one city to another country within a fraction of second. ICICI Bank in their promotional strategies highlights all their features of effortlessness (8-8 banking, internet, phone banking etc.) with full of emotions, that's why now it is first preference of customers.
•
•
