This research sets out to analyse the effectiveness of marketing campaigns in the retail sector. The aims of this project are to understand consumers’ perceptions towards marketing campaigns and how best retailers big and small cater to those needs. Also, the research aims to understand how ethnicity, age and gender effect the choice and size of campaign. The project flows from a literature review which covers many of the existing marketing campaign styles through to how the success of these campaigns is measured. Using secondary sources and existing research the researcher chose to use qualitative data as with this topic mass amounts of quantitative data is available yet can be misleading. The qualitative data came from the analysis of the top nine most effective retail marketing campaigns as defined by the WARC 100. These findings were then broken down and placed along the transactional/relationship marketing continuum, by doing this the researcher is able to show the findings of the data in a far clearer manor. Following this analysis, it was found that the campaigns that suite the retail industry the best are e-marketing campaigns that focus on building on relationships with existing customers. Moreover, the research also deduced that when genders are involved the trend is for the campaign to use females as the main characters in most campaigns, for ethnicity the predominant trend is the use of white people in the western world with often the ethnicity being mixed between all characters in America more than Europe. However, in eastern countries the ethnicity trend shows that the main character is often the same ethnicity as the target market. The analysis of the impact of age on campaigns showed trends that highlight an effective campaign consists of a target audience which is the millennial generation as they have the highest buying authority and susceptibility. Overall there was some limitations that could have been solved with a larger sampling selection which is evaluated in the conclusion.
Marketing campaigns are ubiquitous. It is virtually
impossible for an average person to live one day without being a wiling or
unwitting consumer of marketing messages. While some advertisements have an
immediate effect and result in a resolve to action, others need to be repeated
multiple times to incite a favorable view of the advertised product, and yet
others do not succeed in fulfilling their goals at all. Competition in the
retail sector seems especially fierce and consistently effective marketing campaigns
are what makes or breaks a company in the retail industry, where loyalty is low
and the desire of novelty is high.
While the general consensus is that the success of
marketing campaigns depends on multiple factors, this research projects sets
out to discover the role of the type of marketing campaign on its
effectiveness, as well as the effect of demographics on the success of the
retail marketing. The present study uses both deductive and inductive
approaches to the secondary analysis of qualitative data that includes thematic
analysis of the most effective marketing campaigns in the last two years.
My personal interest in marketing and reasons for its
effectiveness guided the selection of this topic for my research. Having grown
up with parents that are self-employed, from a young age I have been around a
business environment. This has meant as I grew up I had to help out in various
roles of the business, one of the roles I took to the most was the marketing of
my family business and this was the reason I chose to study Management
(Marketing) at university. Before I attended university I took a year out to
work form my family business which is in the retail sector. I learnt many
things in various fields of industry yet the one field that intrigued me the
most was marketing. This was grew to become a passion of mine as I wanted to
know how different types of retailers could out-do one another with just having
a better marketing campaign. I have always been interested in the formula
behind creating an appealing advertisement and making marketing messages spread
far and wide. I chose this topic because I was genuinely curious to discover
the results of this research, and I believe this information will serve me well
in my future profession.
This chapter presents the results of the literature
review concerning the topics of marketing campaign styles and their
classifications in general, as well as marketing in the retail industry
specifically. This literature review sums up the existing academic literature
on the marketing effectiveness and marketing campaign size. It also presents
the results of the analysis of the previous research on the effect of such
demographic attributes as age, gender, and ethnicity on the choice of marketing
campaigns. The conclusion section of this chapter contains the discussion of
the research gaps, as well as the opportunities for further research.
There are multiple approaches to classifying marketing
campaign styles by different attributes. For example, marketing campaigns may
be divided into modern and post-modern (Fırat & Dholakia, 2006; Proctor,
Proctor, & Papasolomou-Doukakis, 2002); products-services and
products-solutions (Cerasale & Stone, 2004; Cova, Ghauri, and Salle 2002);
company-centric (or product-centric) and customer-centric (Kim, Suh, &
Hwang, 2003); and others. Some of these classifications overlap or are
difficult to be defined specifically and distinctly from one another (Davis,
2001). However, one comprehensive approach to defining marketing campaign types
that encompasses many of the aforementioned campaign styles was developed by
the Contemporary Marketing Practice group (Lindgreen, Palmer, Wetzels, &
Antioco, 2008). This approach is favoured by a variety of scholars (Pels,
Coviello, & Brodie, 2000; Palmer & Brookes, 2002; Li, 2011), because it
places marketing campaign styles along the continuum between transactional
marketing, focused on new customer acquisition, and relational approach,
focused just as much on retaining existing clients and developing current
customers, lest they be lured away by the competitors, as they are on acquiring
new ones (Lindgreen et al., 2008). The approach does not place definitive
boundaries between the marketing styles along the continuum, but rather
reflects the degree of their transactional or relational nature (Brookes &
Palmer, 2004). The following five types may be differentiated within this
approach: transaction marketing (TA), database marketing (DB), e-marketing
(IMT), interaction marketing (IMP), and network marketing (NM).
Transaction marketing is focused on attracting new
business by managing elements of the marketing mix: product, price, promotion,
and place. These 4Ps marketing strategies (Constantinides, 2006) are an
essential part of all the marketing styles in this approach, but in transaction
marketing they are the most important part that drives communication activities.
TA involves communicating marketing messages to consumers in an
undifferentiated mass market manner and relies on new customers to generate new
sales. Relationships with customers are limited by one-off transaction
interactions and no effort is made to create personal or individualised contact.
Marketing activities are conducted by functional market teams and sales
managers (Li & Nicholls, 2000).
Database marketing, in addition to using the 4P’s,
employs some tools to manage existing customers. Thus, it collects their
information and created databases, through which it initiates occasional
semi-personal contact, such as sending out mass e-mails. In addition to the
communication, generated by technology, DB marketing also uses loyalty managers
and customer service staff to perform marketing activities. While interaction
with customers are mainly formal, DB marketers pay more attention to the
individual situations of their consumers than TA marketers (Peltier,
Schibrowsky & Schultz, 2003).
E-marketing uses the Internet and other interactive
technologies to create a dialogue between the company and the many consumers
through websites, e-mails, social networks, as well as other electronic media
and marketing tools, encouraging and facilitating them in exchanging
information among themselves through forums, reviews of the products, etc.
(Lindgreen et al., 2008). Some researchers use the terms e-marketing, internet
marketing, e-commerce, and e-business interchangeably (Strauss & Frost,
2001; Smith & Chaffey, 2005), while others differentiate between them,
describing differences in scope between the terms (El-Gohary, 2010). As opposed
to transaction marketing and database marketing, the communication created in
IMT is two-way and implores responses from the consumers (Lindgreen et al.,
2008).
Interaction marketing involves face-to-face
interaction between representatives of the company and individual clients.
Instead of marketing messages being distributed to a massive number of
customers, they are co-created with customers on a one-on-one basis with the
input from the buyers. The communication between employees of the selling
company and representatives of the buying company in IMP happens not only in formal
meetings, but also in personal and informal settings (Song, Droge, Hanvanich,
& Calantone, 2005). Marketing activities are conducted by employee teams in
different functions on different levels throughout the company (Parvatiyar
& Sheth, 2000).
Network marketing focuses on establishing the
company’s position within a network of company-level relationships (Lindgreen
et al., 2008). Communication with customers in NM is developed from impersonal
to interpersonal and can be characterised as ongoing. Marketing activities are
conducted not only by marketing teams and teams of employees from different
functions, but often senior management is also involved in cultivating relationship
with customer companies and potential customers and partners through networking
within the company’s industry both formally and informally (Siamagka,
Christodoulides, Michaelidou, & Valvi, 2015).
Since the customers of retail companies and buyers of
consumer goods are individual consumers and not businesses, and IMP and NM
deals primarily with the B2B marketing, the transaction-relationship continuum
for the retail industry is limited to the first three marketing campaign types,
with TA being on the far transaction side and e-marketing being on the far
relationship side. Transaction marketing is still widely used by retailers to
expand market share and attract new customers through distribution of leaflets,
TV advertisements, and other marketing strategies (Alexander & Colgate,
2000). Databases are also popular both with brick-and -mortar businesses that
encourage customers to share their personal information, such as e-mail or home
address, in order to receive offers and loyalty promotion, and with online
retailers that prompt every website visitor to sign up or registering on the
website for future benefits (Unni & Harmon, 2007). However, retail
companies are gradually moving away from mere transaction marketing towards
relationship marketing, increasingly relying in the use of e-marketing tools
(Alexander & Colgate, 2000).
Relationship marketing offers many benefits to the
retailers due to the nature of their business, since they offer a variety of
products that can be purchased by the same customer, often repeatedly (Wong
& Sohal, 2013). One of the obvious benefits is the cost, since the cost of
acquiring a new customer is five times larger than the cost of retaining the
existing customer through relationship marketing, while their lifetime value is
also an important factor (Berger & Nasr, 1998). In the retail sector, the
lifetime value of customers plays an increasingly important role due to the
widespread adoption of consumerism as the main framework for shopping in retail
outlets (Woodruffe‐Burton,
Eccles, & Elliott, 2002). Decades ago, people used to buy new things only
when the old ones were completely used up, but now customers have more
purchasing power and shopping is driven by desire, not necessity (Muratovski, 2013). Thus, in
modern times, it is sufficient to convince the customer that a new product is
desirable, rather than appealing to the rational mind in an effort to convince
to purchase (Alford,
2011). Retail clothing industry has effectively adopted the concept of ‘fast
fashion’ in order to convince the customers to buy new clothes every season,
advertising new trends in an effort to render the previous clothes irrelevant
(Cachon & Swinney, 2011). Having a core group of customers is beneficial to
the company in other ways than direct sales. Companies can use their existing
customers to test new products with reduced risk (Alexander & Colgate,
2000) or even solicit new ideas for products or derive them from customers’
feedback and input (Benedetto, 1999). In addition, customer loyalty cultivated
by relationship marketing serves as a barrier to competitor’s entry into the
market, even though switching costs are low in the retail sector (Yang &
Peterson, 2004).
Despite the obvious benefits to the use of
relationship marketing, the setting of retail industry does not make it easy
for large companies to cultivate relationships with the consumers. While other
settings, such as financial service providers, barber shops, or even
family-owned restaurants build relationships with their clients through
repeated personal service interactions, large retail stores seem very
impersonal by comparison (Zimmer & Golden, 1998). In addition, the types of
products sold in retail store include those that require high involvement and
decision making at the time of purchase, but not afterwards, or low involvement
and higher number of subsequent visits, but rarely both (Alexander &
Colgate, 2000). Thus, retail companies have to rely on their marketing
departments to communicate messages that build trust and send the impression of
mutual respect in order to build relationships with the consumers.
Success of the company largely depends on the success
of its marketing campaign in its ability to reach and influence the target market
(Strahilevitz, 2003; Cano, Carrillat, & Jaramillo, 2004). The effectiveness
of the marketing campaign is defined by its ability to reach new prospects,
generate leads, earn media, promote the brand, and, ultimately increase sales
(Fulgoni & Lipsman, 2014). However, it is rather difficult to measure such
reach with a high level of precision due to individually subjective processes
that take place in the mind of the consumers between the time when they learnt
about the brand for the first time and the time they purchased a product. In
addition, there is a multitude of marketing messages directed at the consumers
throughout the day that may interfere with the consumer perception of the
brand, such as adverts from competing brands. Even marketing messages from
other industries may influence the consumers to switch to substitutes or
abandon a certain type of lifestyle altogether, leading to the decrease in
relevance of the advertised product (Nowlis, Kahn, & Dhar, 2002). Thus,
complex approaches are needed to effectively measure the marketing campaign
success. In academic literature, the following methods of measuring marketing
campaign effectiveness are described: advertising tracking studies,
cross-sectional analysis, quasi-experiments, conversion studies, and online
behaviour tracking. Below is a short description of each of them.
The advertising tracking approach is used when
consumer research data is gathered to provide information about the reactions
of consumers at different stages of the marketing process (Colman & Brown,
1983). It is useful to gain insight about the process through which the
marketers build awareness of the product or the company, influence opinions,
and shift attitudes over a long period of time, since not all advertising
carries an immediate sales objective (Siegel & Ziff-Levine, 1990). However,
due to the positive relationship between advertising awareness and sales effectiveness
for individual brands, assessing communication and emotional values through
advertising tracking awareness was commonly used before the newer research
methods became available (Colman & Brown, 1983).
Contrary to the advertisement tracking studies that
follow the same group of consumers over a long period of time, cross-sectional
analysis takes a snapshot across different demographics at one point in time
(Buzzell & Wiersema, 1981). This approach is less costly and requires less
time than advertisement tracking, but it would not be helpful in discovering
causal relationships or the developments of trends over time, since it is
limited to describing correlation, without an ability to prove causation (Bowen
& Wiersema, 1999). Nevertheless, it may be used for spotting trends and
uncovering important differences among certain target segments, for example,
differences in behaviours of consumers of different age, gender, and
ethnicities (Dutra & Glantz, 2014).
Some researchers conduct quasi-experiments through
exit surveys of people who were exposed to the marketing messages and those who
did not and compare the two groups (Woodside, MacDonald, & Trappey, 1997).
Since the consumer behaviour, including their attitude towards a company and
consequent purchase of the product, may not always result from an exposure to a
single advertisement or marketing campaign, a control group is used to measure
the effect of a particular message (Mok, 1990). Thus, when Quebec outlawed
advertising to children, the French-speaking children who watched only the
Quebec TV stations became a control group for the English-speaking children who
watched American channels that contained advertisements. The differences
between the two groups were significant, since the English-speaking children
recognised more toy brands and had more cereals at home than their
French-speaking counterparts (Goldberg, 1990). As opposed to cross-sectional
analysis, the quasi-experiments are able to yield the conclusions of
significantly important connections between advertising and behaviour (Hill,
Moakler, Hubbard, Tsemekhman, Provost, & Tsemekhman, 2015).
Many academics and marketers measure the effectiveness
of advertising campaigns by conducting research, most often through questionnaires,
that assesses the percentage of people who are exposed to advertisement that
convert into paying customers (Wagner, Benlian, & Hess, 2014). Conversion
studies are also useful in identifying why consumers move on to the next stage
in conversion, from expressing their interest through requesting additional
information and quotes, adding items to their shopping carts, submitting their
orders, and completing their purchases (Pratt, McCabe, Cortes-Jimenez, &
Blake, 2010). These conversion actions can be correlated with certain consumer
characteristics, such as demographics, in order to understand the relationship
between certain types of advertisements and certain qualities of the target
market.
The most ideal method of measuring the effectiveness
of separate advertisements or whole marketing campaigns is online conversion
tracking. This combines the elements of
longitudinal quasi-experiments and cross-sectional analysis, as it makes it
possible to compare groups that were exposed to online advertisements and
banners and those who were not, as well as different demographic groups. It
also incorporates the elements of advertisement tracking and conversion
studies, allowing it to match the behavior of consumers to different stages of
their relationship with the campaign. The most important advantage of this
approach is that instead of asking for self-reported opinions and intentions,
it tracks the actual behavior of the consumer, such as clicking on the banner
that was shown for the third time, downloading the advertised software,
requesting a quote, clicking around on different parts of the website, and
completing the purchase (D’Eon & Bolt, 1999). The rise of online conversion
tracking and its effectiveness gave way for marketers to be able to pay per
results, and not per impressions (Osman & Usman, 2001). In addition, it
made it possible to make precise predictions about different types of consumers
and which ones are likely to convert, thus making targeting the preferable
market segments more effective (Ur, Leon Cranor, Shay, & Wang, 2012). One
challenge of this approach comes from the concern for privacy of individual
consumers who prefer not to have their online behaviour tracked for the purpose
of enriching the companies who sell and buy online ads (Castelluccia, Kaafar,
& Tran, 2012). On the other hand, data gathering comes with the use of
online resources and is described in the terms and conditions of certain
websites (Steinfeld, 2016).
The scope of a marketing campaign is defined by the
size of the target market, as well as the purpose of the campaign and the goals
of the company, but is limited by the company’s budget (Eikenberry, 2009). For
example, a company may wish to advertise its mass market product on TV, but due
to the budget restraints and the high price of TV time, it opts for ads in the
community magazines and on YouTube (Campbell, Pitt, Parent, & Berthon,
2011). Large companies may be able to afford paying for billboard signs and bus
stop posters, while smaller companies find it more fitting to their budget to
print out leaflets and flyers to be handed out by promoters on the streets
(Burton, Lichtenstein, & Netemeyer, 1999). Similarly, while placing a
Google ad would reach a larger audience, Facebook ads are more cost-effective
and can be set to target smaller segments of the market (Margarida Barreto,
2013). On the other hand, a company with less restrictive budget but a niche
product; may prefer to purchase an advert placement in a specialist magazine
rather than advertise in mainstream publications (McDowell, 2004), even if it
can afford to do so.
The size of the marketing campaign can be increased
due to the efforts of the company who purchases additional TV air time or
advert placements in magazines, but it can also grow organically, through
word-of-mouth or unpaid media mentions that are also called ‘earned’ media
impressions (Milano, McInturff, & Nichols, 2004). Traditional media
outlets, as well as blogs, constantly seek out stories that would interest
their readers and when companies, products, or marketing campaign themselves
provide such stories, the authors are eager to feature them at no cost,
expanding the reach of the company’s marketing (Kulmala, Mesiranta, & Tuominen,
2013).
Descriptive studies, as well as statistical research,
have found significant differences in demographic attributes, such as age,
gender, and ethnicity, between people who frequently shopped at certain retail
stores and those who did not (Sampson & Tigert, 1992; Carpenter &
Moore, 2006). These findings correspond with the marketing efforts in targeting
certain segments of the market, rather than attempting to appeal to everybody
and spending on advertising to people that are not attracted by the type of
product marketed. Thus, demographics both define the marketing efforts and are
the subject to them (Naseri & Elliott, 2011). Below is a brief description
of the main demographic characteristics as they apply to the retail industry.
Academics traditionally divide consumers by age into
generations, such as Baby Boomers, born between 1946 and 1964; Generation X,
born between 1965 and 1976; Generation Y (or Millennials), born 1977 to 1995,
and Generation Z, born after 1996 (Glass, 2007). Academics also agree that with
the progression of age, consumer behaviours change, especially relating to
retail and grocery shopping, therefore the age factor should be taking into
consideration when designing marketing campaigns (Seock & Souls, 2008). For
example, Baby Boomers limit their shopping to few locations, while Generation X
consumers comprise the support of multiple retailers. Older people are less
likely to be attracted to multiple-purchase promotions but increasingly value
nutrition confidence (Meneely, Burns, & Strugnell, 2009).
On the other hand, Generation Y are a group of
consumers with an unprecedented purchasing power who are exposed to an
unprecedented choice in any product category, placing increased value on the
socialisation factor and uncertainty reduction in their consumer behaviour
(Farris, Chong, & Danning, 2002). In addition, reactance and
self-discrepancy, as well as feelings of accomplishment and connectedness are
also significant drivers of product purchases and retail patronage by
Generation Y consumers (Noble, Haytko, & Phillips, 2009). The importance of
considering age in marketing is perhaps best demonstrated by the practice of
additional consideration for age in marketing campaign taken in order not to
use older-age cues in advertising retail locations that are also meant to
target young people, because such messages trigger a reluctance to be seen by
their peers as patronising those locations (Day & Stafford, 1997).
There has been a lot of attention devoted to the
differences in consumer behaviour between the genders. While there is some
academic research to support the notion that in modern times, gender
distinctions in behaviour are less adhered to as they were in the previous
decades due to higher gender fluidity (Bettany, Dobscha, O’Malley &
Prothero, 2010), and individual consumer preferences are increasingly more
indicative and predictive of consumer behaviour than gender (Armentor-Cota,
2011), the overwhelming majority of academics and marketers agree that gender
remains an important factor in marketing that should not be ignored while
designing the campaign (Darley & Smith, 1995; Kim, Lehto, & Morrison,
2007).
One common use of gender differences in marketing is
the use of sex appeal and female objectification that is prevalent in
advertisements to this day (Thompson, 2000; Szymanski, Moffitt, & Carr,
2011), with a small reversed trend in male objectification (Rohlinger, 2002).
Some researchers voice a concern that even attempts at gender-neutral marketing
favour a male perspective and should invest into creating appealing messages to
female consumers (Westwood, Pritchard, & Morgan, 2000), especially because
they are often the ones who buy for other people in their households or
influence purchase decisions. A recent trend of marketing messages that promote
gender equality and female empowerment is gaining momentum (Gee, 2015),
attracting consumers with the use of the moral appeal and the meaningful
connection attributes of a cause-related approach (Andersen & Johansen,
2016).
Ethnicity of consumers is often correlated with
cultural, religious, and traditional differences in values that should be
accounted for in marketing. For example, Western worldview emphasises
individualism and rationalism, while Eastern worldview values collectivism and
harmony (Hofstede & Minkov, 2010). Marketers have long strived to
accommodate these cultural differences in their marketing strategies, adapting
their messages to different target markets, in order to create a connection
with consumer and avoid being insensitive or offensive (Nguyen, Nguyen, &
Barrett, 2008). Some researchers, however, emphasise the trend of the emerging
‘global consumer’ in their argument that cultural differences are largely
trumped by the global appeal of consumerism, and that the people of new
generations on each continent are more like each other than they are like their
fellow countrymen (Cleveland, Laroche, & Papadopoulos, 2016). Nevertheless,
the role of non-Western consumers, as well as the role of minorities in the
Western countries, demand a certain level of representation in the marketing as
a powerful tool of shaping opinions (Araujo & Kjellberg, 2009).
The review of previous research, as well as current
academic literature, revealed the existence of different approaches to the
classification of marketing campaign types and demonstrated the superiority and
universal applicability of the marketing campaign classification developed by
the Contemporary Marketing Practice group (Lindgreen et al., 2008) that divides
marketing campaigns into transaction marketing, database marketing,
e-marketing, interaction marketing, and network marketing. The research also
indicates that the trend towards the relationship side of the marketing
spectrum is growing due to its effectiveness. The previous research literature
suggests that the marketing campaigns used in the retail industry belong to the
first three categories. In addition, all of them use transaction marketing,
while some use DB and IMT marketing in addition to the traditional focus on the
4P’s. The logical conclusion follows that some forms of the marketing campaigns
that are the furthest on the relationship spectrum, while still being available
for the retail companies marketing to individual consumers and not business
entities would be the most effective forms of marketing campaigns. However, the
overview of literature around the relationship marketing in retail revealed
industry-specific difficulties in implementing such approach. Thus, further
research is needed to discover what current forms of marketing campaigns are
most effective in the retail industry and which style of campaigns suits retail
businesses best.
In addition, while plentiful research exists as to the
effectiveness of marketing campaigns, as well as the importance of demographics
in marketing, the relationship of the demographics and the size of marketing
campaigns was largely understudied and presents a gap in the existing
literature and an opportunity for further research.
The research framework used in this research is based
on the classification of the marketing campaigns developed by the Contemporary
Marketing Practice group (Lindgreen et al., 2008) and further refined by
eliminating the classifications that apply only to the business-to-business
selling companies that are not relevant to the retail industry. The resulting
framework contains three types of marketing campaigns that advertise directly
to the end consumers and are situated along the transaction/relationship
continuum, with transaction marketing (TA) occupying the furthest position on
the transaction side of the continuum, database marketing (DB) positioned in
the middle, and e-marketing (IMT) located the furthest on the relationship side
of the continuum.
The present research project employs a combination of
deductive and inductive approaches. The deductive approach provides the
hierarchical structure that allows to organise collected data and expose gaps,
contradictions, and inconsistencies in the research data (Elo & Kyngäs,
2008). However, fully deductive research is out of scope of the present
research project due to the large volume of current marketing practices by the
contemporary retail companies, therefore the inductive approach was chosen to
allow for the in-depth analysis of a sample of data, thus complementing the
deductive approach in answering the research questions.
The aim of this project is to discover which forms of
marketing campaigns are more effective than others in the retail industry. This
will fill the gap in the existing academic literature that results from the
comparison of the logical conclusion that follows from the literature review of
the effectiveness of marketing campaigns and suggests that the forms of the
marketing campaigns that are the furthest on the relationship spectrum would be
the most effective forms of marketing campaigns, on one hand, and the overview
of literature around the relationship marketing in retail that revealed the
existence of industry-specific difficulties in implementing such approach in
the retail setting, rendering it practically impossible to cultivate
relationships in large retail outlets. Thus, the first research question is
posed as follows:
RQ1: Which
style of campaigns suits businesses in the retail industry best?
In addition, while the literature review revealed
plentiful research focused on the effectiveness of marketing campaigns and the
importance of demographics in marketing, a gap in the literature was revealed
as to the relationship of the demographics and the size of marketing campaigns
was largely understudied. Thus, the second research question is posed as
follows:
RQ2- In
the retail industry when deciding on the size of the campaign how do qualities
of the target market, such as age, gender, and ethnicity, affect the choice of
campaign?
The researcher chose the qualitative type of research this
was due to the purpose of the present research that aimed to compare
qualitative types of data, such as the marketing campaign types and attributes,
that can be gathered and analysed only through the qualitative approach. Qualitative
research allows the researcher to compare characteristics that are not easily
quantifiable, especially when the concepts are described in similar, but not
identical terms, which inhibits any efforts at statistical analysis in the
context of retail marketing. Qualitative type of research also lends
flexibility to this project, since the researcher can follow a lead uncovered
during the review of literature or modern practice, and turn attention to new
dimensions of the research questions that may not have been foreseen at the design
stage of the project. Quantitative analysis would not be able to account for
such newly discovered data due to the rigid design and execution (Madrigal & McClain,
2012:1).
The researcher selected the secondary type of research
due to the wealth of the academic marketing literature concerning marketing, as
well as present availability of the data that concerns the effectiveness of the
current marketing campaigns in the retail sector. The methods of measuring the
effectiveness discovered through the literature review in Chapter 2 demonstrate
the necessity for tools outside of the scope of the present research that would
be needed to collect reliable primary data on the effectiveness of marketing
campaign. Thus, a long period of time would be needed to conduct longitudinal
studies, such as advertising tracking studies and quasi-experiments, or the
availability of complex and exhaustive technical tools and capabilities would
be needed to conduct conversion studies and online behavior tracking.
Fortunately, there are reliable sources in current marketing and business
literature that measure the effectiveness of current marketing campaigns
throughout different industries and sectors. For example, the WARC 100 is a
renowned benchmark for marketing activity, as well as one of the most respected
metrics in the field (Parnell-Berry, 2016). It tracks results from global
effectiveness and marketing strategy ranking systems to assess the scope of the
marketing reach and the return on investment (ROI) from different marketing
campaigns (Ibid., 2016).
While surveying population on their attitudes and
opinions on the topic of the effectiveness of marketing campaigns could
potentially be used for cross-sectional analysis of marketing campaign
effectiveness, such primary data would have reproduced only the conscious
attitudes and then only those which the respondents would be willing to share
(Feilzer, 2010:6). In addition, there are
often differences between the opinions and intentions stated by the consumers
and their consumer actions, as well as between their intended and perceived behaviour and their actual behaviour (Sheeran, 2002:2). On
the other hand, the analysis conducted by the leading ranking systems to
evaluate the success of specific companies’ marketing strategies demonstrates
the actual engagement and consumer behaviour of the target market reached by
the marketing campaigns.
Secondary qualitative research in the form of the
literature review was conducted, employing the deductive approach to segregate
hierarchically into higher level topics and subtopics. For example, the higher
topics, such as marketing campaign styles, were demonstrated to contain
subtopics in the form of different types of marketing campaigns, such as TA,
DB, etc., in Chapter 2. Chapter 4 describes the inductive approach applied to
the secondary qualitative data to assess and compare the qualities of specific
marketing campaigns to classify them according to the research framework to
answer RQ1.
In order to address the RQ2, thematic analysis was
used to uncover themes relating to the demographics in the marketing campaign
effectiveness in cultivating relationships with key demographics. Thematic
analysis is a flexible approach that may be applied as a tool across different
research methods and within large analytical traditions (Ryan & Bernard,
2000; Boyatzis, 1998) or as a standalone method of analysing qualitative data (Braun
& Clarke, 2006). This method is based on identifying, analysing, and
presenting patterns and trends, as well as meaningful themes (Lincoln & Guba,
1985) within sets of qualitative data. Thematic analysis is commonly used in
qualitative data analysis grounded in specific content, when an inductive and
evolving process of identifying shared themes within that context is needed
(Miles & Huberman, 1994). Therefore, this approach is consistent with one
of the goals of the present research project to uncover the relationship
between age, gender, and ethnicity and the choice of marketing campaign. Since
thematic analysis is more flexible than other methods of qualitative analysis
that have a defined structure and a preconceived set of hypotheses to which the
accumulated data is compared (Barr, Levy, Scheepers, & Tily, 2013), it uses
semi-structured methods of collecting qualitative data, allowing for
exploration of leads and themes that arise in the research process (Guest,
MacQueen, & Namey, 2011).
One challenge of using the qualitative approach to
analyse the research data stems from the inability to validate the findings
through calculating a p-value or an effect size, as is done with the
quantitative data. Therefore, one must exercise caution with qualitative data,
validating and revalidating it throughout the ongoing research, lest anecdotal
data be taken for trends and patterns. In the present research project the
identification of trends and patterns was conducted with the use of rule of
thumb described by Madrigal
and McClain (2012). This rule defines themes that were mentioned once as
anecdotes, themes mentioned twice as coincidences, and only those that were
mentioned three or more times as trends. Since the present research dealt with
demographics in current marketing campaigns, specific themes from adverts
relating to age, gender, and ethnicity were noted and measured against this
rule to identify themes and trends.
A sample of the top ten effective marketing campaigns
between the years of 2014 and 2016 (Mossakowska, 2016) was selected based on
their effectiveness reported by the WARC 100 (Parnell-Berry, 2016). One of the
top ten WARC campaigns did not advertise a retail location or a type of
consumer goods that could be purchased at the retail level and was thus
excluded from the sample in order to retain the relevance of the findings to
the retail industry context. The years between 2014 and 2016 were selected due to
their recency and their ability to represent current practices in the use of
marketing campaigns by the retail. The WARC 100 was selected due to its
reputation and credibility among the academic marketing experts (Ibid., 2016). In addition, the effectiveness
assessment employed by the WARC process corresponds to the best practices of
effectiveness measurement as described in the Chapter 2 of the present project.
Since the secondary data was used, no human
participants were subjected to a study that could violate ethical code.
However, as with all qualitative data analysis, there is a possibility of
researcher bias that interferes with the reliability of the findings. This
consideration was partially remedied by the employment of the renowned ranking
system to prevent the possibility of the researcher’s personal preferences to
affect the selection of the effective marketing campaigns. The classification
of the marketing campaigns was straightforward, and the researcher is confident
that the classification results would be identical even if performed by a
different researcher.
According to the research framework specified in the previous chapters marketing campaigns are situated along the transaction/relationship continuum (Figure 1).
The three types of marketing campaigns that advertise directly to the end consumers are situated along the transaction/relationship continuum in the following way: transaction marketing (TA) occupies the furthest position on the transaction side of the continuum; database marketing (DB) is positioned in the middle; and e-marketing (IMT) is located the furthest on the relationship side of the continuum (Figure 2).
The top nine most effective retail marketing campaigns
as defined by the WARC 100 for the years 2014-2016 are as follows:
Figure 3 shows the position of all marketing campaigns in this research along the transaction/relationship continuum.
Main video submissions of the WARC 100 marketing campaigns were analysed and coded thematically according to emerging themes relating to the demographics shown in the marketing campaign main videos. The results are presented in the Figure 3.
The analysis of the types of campaigns that were
ranked the highest in the recent years indicates that the types of campaign
that suit businesses in the retail industry best are the e-marketing campaigns
that are focused on developing the relationships with the existing customers at
the same rate as the developing new leads in attracting new customers. The
predominant majority of the marketing campaigns participating in the research,
7 out of 9 belonged to the IMT category, with only one company each in the
other two categories, DB and TA. This finding from the inductive approach to
the qualitative data analysis is consistent with the logical assumption that
resulted from the deductive approach applied to the literature review in
Chapter 2 that stated the most effective marketing campaigns are likely to be
the ones the furthest on the relationship side of the transaction/relationship
continuum, but still within the reach of marketing to the consumer nature of
the retail industry.
While the answer to research question one is obvious
from the results of the classification of the most effective marketing
campaigns into buckets of types of marketing campaigns derived from the
literature review, the answer to the RQ 2 is arbitrary. However, following the
rule of thumb described in the previous chapter, the trends of using children
and millennials emerge when it comes to age. When it comes to gender, the trend
of using only female main characters emerges, along with the trend to use both
genders in marketing campaigns. In addition, female empowerment messages emerge
as a dominant trend in the modern marketing campaigns. As for ethnicity, the
predominant trend is the use of white people in the marketing campaigns,
however people of the dark colour ethnic background, as well as actors of mixed
races or mixed families are also featuring as trends. Therefore, the conclusion
is that the use of the Millennials and children; all female or both gender main
character; and actors of white, dark color, and mixed ethnic backgrounds has
the positive effect on the size of the marketing campaign, allowing it to expand
their reach through online social networks.
These findings are consistent with the findings from
the review of literature conducted in Chapter 2 that highlighted the concept of
demographics importance in designing marketing campaigns. It is consistent with
the finding that Millennials are emerging as an important category in the
consumer market. The thematic analysis confirms the previous research and
positions Millennials as the most important age demographic for the marketing
campaigns. While the other important age demographic present in the marketing
campaigns is the children, children are not featured in the effective marketing
campaigns as often as the Millennials do. In addition, they do not possess the
purchasing power the adult Millennials do, who in these videos would make the
purchases on behalf of the children, so the Millennials emerge as the key age
demographic in importance for the current marketing campaigns.
In addition to Millennials, female actors emerged as
the predominant main characters and actors in the most effective marketing
campaigns in the retail context. While male actors, main characters, and
narrators also featured in the campaigns, there were no campaigns with all male
actors. On the other hand, however, there were two campaigns with all female
actors, and most of the marketing campaigns featured some sort of female
empowerment message, whether demanding more representation in the graphical
language of emojis, showing a supermodel breaking stereotypes and engaging in
boxing, disregarding negative comments from the judgmental eye of the public,
or showing a little girl conducting a test drive of a large truck.
Interestingly, no marketing campaigns that were named the most effective
campaigns of the recent years features noticeable objectification of females
and presented images of equality. Several campaigns featured girls or women
breaking the moulds imposed on them by the society and showed them performing
non-traditional roles, such as that of a pirate, a test driver for a large
truck, or a boxer.
As to ethnicity, the marketing campaigns that were
considered the most effective by the WARC 100 all featured white actors, while
many also featured actors of dark color and mixed ethnic backgrounds. After
comparing the country of origin of the marketing campaign to the target market
country and the ethnicity of the actors featured in the promotional videos, an
interesting picture emerges. In the marketing campaign by the British-Dutch TNC
Unilever that targeted the Indian population, all actors in the promotional
video were Indian. In the marketing campaigns that targeted Australia (Penny
The Pirate; Share a Coke), Sweden (Volvo), and France (Intermarche), all actors
were white, while the American advertisements represented diversity in all
videos. The Under Armour promotional video that features only one person showed
the supermodel Gisele Bündchen that looks white but is of Brazilian nationality
and of German descent. Thus, in the current sample American marketers included
representatives of many racial groups in their promotional video regardless of
the product or targeted location, the British-Dutch companies (Unilever and its
subsidiary Always) used diverse actors in one campaign and all Indian actors in
the other campaign, and Australia, Sweden, and France used all white actors in
their marketing campaigns.
The present research has achieved its aim to discover which
forms of marketing campaigns are more effective than others in the retail
industry and what role demographics play in the size of the campaign, thus
filling the gaps in the existing academic literature that lacked a specific
explanation of the effect of demographics on the size of the marketing
campaign, on one hand, and suggested the relationship orientation of the
effective marketing campaigns yet described its limits in the retail context,
on the other hand. The present research demonstrates that in order to be
effective, a marketing campaign should feature Millennials and children, female
actors and messages of empowerment, and include either an ethnically diverse
group of actors or actors of the ethnicity that is the majority in the target
market. The inclusion of an ethnically diverse group of actors heavily depends
on the country that the campaign is targeted at. A
Present research confirms the relationship orientation
of the effective marketing campaign styles. This shows that online social networks
and other electronic media serve as the medium in which the relationship
between the retail companies and their target consumers may be refined. The
present research showed the success of the marketers in meeting consumers on
their grounds, whether it is calling the Indians on their cell phones and
offering them entertainment in exchange for exposure to marketing messages, or
engaging teenage girls with their favourite communication channel: emojis. The examples of the
effective marketing campaign presented in this study are the success stories of
retail companies which managed to incite high levels of participation from
their consumers, engaging them in meaningful dialogues that went beyond simply
meeting their needs with the product offering, all the time genuinely listening
for their inputs and sympathising with their situations. These findings
position the retail companies as able to resonate with the values of their
consumers and create meaningful relationships with their consumers, built on
trust and mutual respect, through the modern mediums of online social networks
and electronic devices.
One of the limitations of the present research is its
sample size that represented only the companies that made it to the top of the
ranking system. The findings of a similar research with a larger sample size
that would include more participants of retail companies may have increased
reliability and generalisation factors. Having a larger sample of companies’
campaigns to analyse would have helped the researcher find a more conclusive outcome
which could be argued as being more reliable. However, the consistency of
findings from the analysis of the data collected from the sample on one hand
and the findings from the previous research as described in Chapter 2 support
the argument that the present research data findings are reliable and relevant.
While they may not generalise universally across all context, they relate to
the marketing campaigns within the retail context. In addition, the presence in
this list of such small companies as Penny The Pirate demonstrates the
importance of innovation as a product feature, as well as the e-marketing
approach that may help even a small company to become one of the top marketing
campaigns globally.
Exercising in analysing qualitative data and
discovering new trends and patterns that emerge from using both inductive and
deductive approaches to secondary data analysis has contributed to my personal
growth as a researcher and a student. Having involved myself is extensive
academic literature I feel that I have broadened my understanding and this has
helped me to improve my skills in comprehension, especially in how to deduce
information I require from extremely wide-ranging pieces of literature. I
believe in conducting this research I have developed the skill of how to use
trends that I have spotted to find solutions to problems that the trends show. Managing
the pressures of time and large workload has been an invaluable experience that
I am likely to need in the future. Also, being able to produce large pieces of
work such as this on a specified topic such as this is another skill I believe
I have developed during the course of this project. In addition, contemplating
about ethical issues raised by this research project has made me more aware and
sensitive to the issues of gender equality, the role of ethnic minorities, and
the place of marketing in our lives. I appreciate that women are prominently
featured in the marketing campaigns; however, the lack of ethnic minorities
representation raises the issue of their place in the society that has been
increasingly becoming ethnocentric in the last years. It also begs the question
whether this issue is simply reflected in marketing or whether it may be
partially caused by it.
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