Marketing Strategies Based on Reference Groups Influences Presented by: NUR AINA NAZURA BINTI MOHD ZAIRULNIZAM CIB 180091 GOH CHUN HUI CIB 180032 AIN NAJWA BINTI AHMAD NATHARI CIB 180005 CHEE PEI YI CIB 180014 FARAH NUR AZMINA BINTI MOHD REDZHA CIB 180030 Objectives of the study. 01 02 03 To discuss the definition and Background of marketing strategies based on reference group influence. To study the implication of marketing strategies based on reference group influence in real life situation. To identify what consideration that we need in approaching different group influence CHEE PEI YI CIB 180014 2 REFERENCE GROUP INFLUENCE ● The background of the concept/theory. A group where presumed perspective or values are being used by an individual as the basis for his or her current behaviour. TYPES OF INFLUENCES 1. 2. 3. Informational Influence Normative Influence Identification Influence Farah Nur Azmina bt Mohd Redzha CIB180030 3 INFORMATIONAL INFLUENCE ● ● Informational influence occurs when an individual uses the behaviors and opinions of reference group members as potentially useful bits of information. This influence is based on either the similarity of the group’s members to the individual or the expertise of the influencing group member. Farah Nur Azmina bt Mohd Redzha CIB180030 4 NORMATIVE INFLUENCE ● Occurs when an individual fulfills group expectations to gain a direct reward or to avoid a sanction. ● Normative influence is strongest when individuals have strong ties to the group and the product involved is socially conspicuous. ● Ads that promise social acceptance or approval if a product is used are relying on normative influence. Farah Nur Azmina bt Mohd Redzha CIB180030 5 IDENTIFICATION INFLUENCE ● ● ● Occurs when individuals have internalized the group’s values and norms The individual behaves in a manner consistent with the group’s values because his or her values and the group’s values are the same. For example, Jimmy notices that successful people wear watch, so they can manage their well. Jimmy decide to buy and wear a watch also. Farah Nur Azmina bt Mohd Redzha CIB180030 6 Implications of this study in real life situation. a) b) Trusted by consumers a) b) Consumers are influenced by different types of reference groups they believe they are a part of or aspire to be. Many things a person buys, especially showy items such as clothing, accessories, vehicles, restaurants or club memberships. Marketers aim their messages at children via television, apps and internet to establish early brand familiarity and inspire direct sales. While parents may refer to other parents and groups for the final decision on household purchases, teens and children are typically driving forces behind their parents' purchasing decisions. Branded upbringings make lifetime buyers Ain Najwa bt Ahmad Nathari CIB180005 7 a) Peer status a) b) Movements in society can influence consumer behavior. Media reports associated with a brand can fuel consumer activism for or against it, making social media an important asset for any brand engaging in reference group marketing. b) Wealthy consumers influence non-wealthy consumers. The trick for marketers of high-end luxury goods and services is to appeal to the wealthier consumers who want to feel distinguished from the non-wealthy while at the same time appealing to the larger audience of consumers who want to emulate the wealthy, according to research on consumer behavior. Cause Affiliations and Purchasing Ain Najwa bt Ahmad Nathari CIB180005 8 Marketing Strategies Based on Reference Groups Influences Informational influences a) b) Marketers cooperate with an expertise to convince their product by telling how much the product really good to them. Provide a platform to customers who have used the product to tell about how the product really works on them. Normative influences Marketers focuses on their target market and ensure their marketing strategy will influence them as they might think to be part of certain group, they have to use the product. Identification influences a) b) Marketers aim to use a person that have their own uniqueness as their brand ambassador as the person might be an idol to people. They also use a slogan or tagline that can build an image of their product. 9 NUR AINA NAZURA BINTI MOHD ZAIRULNIZAM (CIB180091) Relevant case study - Advertising Strategies. 1. Informational influences. Sensodyne often uses dentist as their ambassador as they can provide many information about their product to consumer because people will more convince if the product also use by the expertise. Sephora open to all of their customers to write their own review as they can share about the products. These reviews can be a reference to another customer to get more information about the product. 10 NUR AINA NAZURA BINTI MOHD ZAIRULNIZAM (CIB180091) 2. Normative influences. dUCk Marketing Strategies : a) Unique designs for exclusive look. b) Producing scarves in every special occasions such as Merdeka, Eid, Mother’s Day etc. c) Luxe materials such as satin and silk. 11 NUR AINA NAZURA BINTI MOHD ZAIRULNIZAM (CIB180091) Relevant example or case study 2 Identification Influences 12 Goh Chun Hui CIB180032 Relevant example or case study 2. CR7 Product Your child wants to become a professional football player and practically a professional footballer's workshop. Your child's sports hero has a side show as a support product for an athletic company that sells shoes, clothing, and equipment. Your son begs you to purchase the shoes, apparel, and equipment endorsed by his hero because he wants to be like the pro. This is how do marketers use reference groups influences. They often serve as our role models and inspiration. Marketers view reference groups as important because they influence how consumers interpret information and make purchasing decisions. Goh Chun Hui CIB180032 13 Relevant example or case study 2. This product is based on Identification influence. Marketers use this types of reference group influence when developing advertisements. The brand being used by a role models to inspire people to be like them. Cristiano Ronaldo be a role models or become inspiration so that people can make decision to purchase his own brand. The advertising task is to demonstrate that the product is consistent with the group or individual who bought it. Identification influences For example: Jason as football player saw an ad showing " A good sport player on the go" using an CR7 sport shoes product . He started using the sport shoes. Goh Chun Hui CIB180032 14 References 1. 2. 3. 4. 5. Rodzi, N. H. (2018, January 8). Malaysia's big market for modest wear. Retrieved from https://www.straitstimes.com/asia/se-asia/malaysias-big-market-for-modest-wear. The New Cool For Scarves. (n.d.). Retrieved from https://duckscarves.com/ Fisher, C. (2019, March 28). Group Influence on Consumer Behavior. Retrieved from https://smallbusiness.chron.com/group-influence-consumer-behavior-61919.html. Reference Groups in Marketing: Definition, Types & Examples Video. (n.d.). Retrieved from https://study.com/academy/lesson/reference-groups-in-marketing-definition-types-examples.html. Cosmetics, Beauty Products, Fragrances & Tools. (n.d.). Retrieved from https://m.sephora.com/ 15 VIDEO : Consumption situation & Reference Group Influence. 16 Question and Answer Session! 17 THANK YOU 18 19
