Exclusively for everybody – consumer behaviour Essay Example
Exclusively for everybody – consumer behaviour Essay Example

Exclusively for everybody – consumer behaviour Essay Example

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  • Pages: 13 (3474 words)
  • Published: January 2, 2018
  • Type: Report
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This report aims to analyze how Marks and Spencer addresses the impact of selective perception and evaluate consumer segmentation approaches that may define the target markets for the 'Exclusively for Everyone' advertising campaign. The report will also assess the use of reference groups in the campaign and explore how marketers aim to alter attitudes towards Marks and Spencer's through attitude change strategies. Additionally, the report will evaluate potential alternative strategies that could have been employed.

The report reveals that Marks and Spencer employs models who are both relatable to customers and visually appealing, avoiding any notion of being too young or overly attractive. This strategic approach aims to attract customers into the shop without making them feel threatened.

The campaign uses psychographic, socio-cultural, and behavioural segmentation as the main types of segmentation. It is recommended that Marks and Spencer focuses o

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n segmenting their target markets based on behavioural and psychographic segmentation.

* The previous year, M;S enlisted Claire Sweeney to introduce a new collection of bras. This year, they have introduced a boys' clothing line designed by David Beckham and launched a star-studded Christmas TV commercial. Reference groups are utilized to influence an individual's opinions, goals, or actions.

The current strategies employed by M;S involve associating the product with a revered group, event, or cause and modifying aspects of the multi-attribute model. Possible strategies that can be adopted by the company include resolving conflicting attitudes and altering beliefs concerning competitor brands.

The aim of this report is to analyze Marks and Spencer's efforts in mitigating the impact of selective perception, assess potential consumer segmentation methods for the 'Exclusively for Everyone' advertising campaign, and evaluate the utilization of

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reference groups in the campaign. The report will also examine how marketers are seeking to alter attitudes toward Marks and Spencer's through attitude change strategies, and consider alternative strategies that could have been employed.

1.1 Company Background

After the Second World War, Marks and Spencer emerged as an affordable yet high-quality store. They effectively catered to their customers' preferences and introduced various products like Lycra, prawns, and avocados to the UK market. Additionally, the store's refund policy played a significant role in retaining customer loyalty.

In 1979, Margaret Thatcher, a staunch advocate of Marks and Spencer, assumed office as Prime Minister. However, not everyone desired to emulate her style. Around the same time, George Davis launched 'Next' – a clothing store targeting individuals aged 20 to 40 aspiring to a more fashionable look. Marks and Spencer attempted to retaliate by featuring younger models in their campaigns, but Next had already lured away the younger demographic

In 1998, Marks and Spencer's design department advised that grey was the fashionable color of the season, resulting in the purchase of a wide range of grey shades. However, this decision led to a significant decline in profits, amounting to ?500 million. It became evident that Marks and Spencer's had become disconnected from their customers' preferences. Customers were looking for classic and versatile clothing options in attractive colors, particularly women over 50 who were interested in alluring lingerie.

In 2000, Luc Vandevelde became the Chief Executive of Marks and Spencer. To help with this task, he hired George Davis, a rival from Next who had also designed Asda's George range. Davis introduced his own clothing line called Per Una within Marks and Spencer,

targeting fashion-conscious women aged 25-35. Additionally, in 2001, the successful 'Perfect' range was launched. According to the BBC (2002), Marks and Spencer's profits have already increased by 8% to ?3.69 million this year, indicating their turnaround from a major downfall.
According to Solomon (2002), selective perception is the process of screening out or modifying stimuli by attending only to a small portion of the exposed stimuli. In relation to Marks and Spencer's, it is not mentioned how they specifically overcome selective perception.

Marks and Spencer utilize the expertise of Rainey Kelly Campbell/Y;R to overcome selective perception. Their strategy involves the creation of long advertisements, typically spanning a full page or two, placed in magazines. These ads employ plain backgrounds and strategic wording, such as 'Perfect' and 'Knitwhere?', to capture the attention of a wide audience.

When Marks and Spencer introduced their inaugural TV commercial, they featured a size 16 woman stripping her clothes off and exclaiming 'I'm normal' on a hilltop. This advertisement was unsuccessful as few women wished to be reminded of their size and did not want to publicly display their M&S shopping bags. (source: news.bbc.co.uk) Instead, women desire to witness fashion that is captivating and will motivate them to visit the store.

The 'Perfect' range offers affordable quality clothing that is timeless and serves as essential pieces for everyone's wardrobe. It conveys the message that these items are what we excel at (Rogers, 2001). Appendix 1 showcases the black dress as an indication of its perfection, highlighting that the wardrobe is incomplete without it.

Appendices 2 and 3 display underwear models with 'perfect' bodies, effectively countering selective perception as individuals are captivated by the images and the

notion of 'perfection.' Consequently, this advertisement provides women with the previously absent image from the 'I'm normal' commercials, ultimately motivating them to patronize M;S. Given that M;S primarily attracts female shoppers who buy both for themselves and their husbands (Gunn, 2002), the inclusion of the male figure (Appendix 3) will undoubtedly draw attention from women, who may envision their husbands possessing a similar physique if they were to don the same underwear. Prior to its decline, M&S underwear was popular among one in three individuals (BBC, 2002), thereby emphasizing that these advertisements also aim to restore confidence in the brand.

Perceptual defense refers to the selective perception. According to Schiffman and Kanuk (2000), it is the subconscious distortion of stimuli to make them less intimidating or more in line with one's needs, values, beliefs, or attitudes. M;S utilizes models who are not overly young and have a "normal" appearance. By presenting these models wearing their clothes, customers will not feel threatened, and this will trigger perceptual defense.

This is also applicable to Perceptual blocking, which refers to the subconscious act of screening out stimuli that may be perceived as threatening or inconsistent with one's needs, values, beliefs, or attitudes (Shiffman and Kanuk, 2002). Young, attractive models might be perceived as threatening or conflicting with the customer's requirements.

3.0 What is Segmentation?

Segmentation is the act of dividing the market into different customer groups, with each group becoming a target market and having a unique marketing mix (Turnbull, 2002). Marks and Spencer's employs various bases of segmentation, including psychographic, demographic, socio-cultural, and behavioral factors.

3.1 Psychographic Segmentation

Psychographic segmentation is a method that categorizes people based on their lifestyles. Marks and Spencer

employs this technique to segment their consumers into four groups: traditional, classically stylish, fashion, and designer fashion. The core customer group for M&S is the classically stylish segment (Holmes, 2001).

3.2 Demographic Segmentation

Demographic segmentation involves dividing the market into groups based on demographic factors such as age, gender, occupation, education, religion, race, and nationality (Kotler and Armstrong, 2001).

Marks and Spencer's main target customers are women between the ages of 35 and 50 in the BC1 social grouping. The Classic Collection is specifically designed for this group, evident in their use of older models in advertisements. This marketing approach aims to appeal to customers by allowing them to relate to the models and envision themselves looking good as well.

Psychographic segmentation mentioned earlier is also likely to be used to segment groups by age. For instance, the 'fashion' group is typically between 25 and 35 years old, with the Per Una range specifically designed to meet their needs.

Targeting the higher-income market, the 'designer' group focuses on the Autograph range, which is priced as designer. Within this group, both males and females are targeted.

Marks and Spencer segments their market based on demographics such as age, gender, and income.

Socio-cultural segmentation refers to the classification of individuals based on social class, subcultures, and their position in the family cycle.

Marks and Spencer's has always strived to be an upscale store, providing high-quality goods since the late 1950's. Currently, their target market is women in the BC1 social grouping, which comprises managerial and skilled (non-manual) occupations. However, with ever-changing lifestyles and spending habits, it becomes challenging to accurately determine if individuals truly belong to this group.

Socio-cultural segmentation targets individuals aspiring to move

up in social status. A notable example is the Per-Una range, which caters to the fashion-conscious customers who prefer high-street fashion. Therefore, purchasing clothing from Marks and Spencer's may enhance their perception of shopping at a reputable store and convey to others that they can afford to shop there. A similar effect can be observed with the 'Perfect' range, as it offers affordable options.

According to Gunn (2002), the core target customers for Marks and Spencer are typically in the post-parent hood stage of the traditional family lifecycle. These customers are known for having high disposable incomes and being very loyal to the shop. Therefore, it is crucial to target and retain these customers as they are the most profitable.

3.4 Behavioural Segmentation

Behavioural segmentation can be divided into three categories: use-related, usage situation, and benefit segmentation.

According to Schiffman and Kanuk (2000), use-related segmentation involves classifying consumers based on their usage characteristics, such as usage rate, awareness status, and brand loyalty level. In the case of Marks and Spencer, their target audience consists of existing devoted, heavy users who are aware, informed, interested in clothing, and have an intention to purchase. Marks and Spencer focuses on these devoted customers because they bring in the most profit.

The concept of segmentation is that the occasion or situation often determines consumer choices. In the documentary "Marks and Spencer's... and Me", Christine Hamilton shared that she always relied on M&S for food when hosting a dinner party. This illustrates a usage situation.

The concept of benefit segmentation revolves around identifying the specific benefits that consumers are seeking in a product (Schiffman and Kanuk 2000). "Exclusively for Everyone" aims to convey that M;S

offers dependable quality that can be relied upon, and implies that its products are accessible to all customers and cannot be matched by competitors. The primary benefits that customers look for in M;S products include superior quality at an affordable price.

Hansen (1998) proposes that socio-demographic variables have limited explanatory power in understanding consumer behavior and are often inadequate for market segmentation due to increasing homogeneity. According to Hansen, individual differences are more closely linked to consumer behavior. Thus, M;S should focus on segmenting their consumers based on behavioral traits and psychographics.

4.0 Reference Groups

A reference group is defined as an actual or imaginary individual group that has a significant impact on an individual's evaluations, aspirations, or behavior (Solomon, 2002). M&S utilizes indirect reference groups, specifically individuals with whom we aspire to have an association, to promote their products. Celebrities like David Beckham and Claire Sweeney belong to such aspirational groups and are highly regarded, admired, and recognized by consumers.

4.1 David Beckham

David Beckham recently introduced DB07, his own line of clothing for boys, with the goal of targeting diverse markets (fashion-conscious boys ages 4-16). The renowned sports icon has effectively transformed children's fashion by swiftly selling out the range upon its initial release. The clothing collection holds great appeal for young boys, who idolize David as a role model and aspire to emulate his football achievements. Parents are also likely to be drawn to this range due to its excellent quality and affordable pricing offered by M;S. The sight of David in-store advertisements conveys the message that wearing his clothes will allow individuals to exude a similar level of coolness.

Unfortunately, one drawback of utilizing a celebrity

to promote items aimed at young individuals is the promotion of branding among children, which can potentially result in school bullying.

4.2 Claire Sweeney

M&S chose Claire Sweeney to be the face of their Egoboost bra campaign because they believed her personality, style, and public perception aligned with the image they wanted. By choosing Claire, a confident and glamorous individual, to advertise the bra, M&S ensures that any woman who wears it will feel the same way. This traditional celebrity endorsement by Claire will appeal to customers who will think highly of the product if she wears it (www.mychelsea.net).

4.3 Christmas Television Advert

Marks and Spencer's current Christmas television advert features a diverse range of celebrities such as Denise Van Outen, Ronnie Barker, Hermione Norris, Joan Collins, Graham Norton, David Beckham, Cat Deeley, and Sean Bean. The objective of this campaign is to create a highly noticeable presence among customers and attract new ones as well. With such a variety of celebrities, there is someone who appeals to everyone. For example, David Beckham serves as a role model for boys and also appeals to women. Cat Deeley and Denise Van Outen, being fashion-conscious stars, are admired by the younger market who easily get influenced. On the other hand, Ronnie Barker appeals to older men who will notice that the shop caters to their needs as well as the younger market (Appendix 4).

5.0 Attitude Change Strategies

According to Shiffman and Kanuk (2000), an attitude change strategy aims to alter the attitudes of customers of market leaders and persuade them to switch. There are five primary strategies to accomplish this: changing consumers' basic motivational function, associating the

product with a respected group or event, resolving conflicting attitudes, modifying components of the multi-attribute model, and changing consumers' beliefs about competitors' brands. M;S currently employs strategies like associating their product with admired groups or events and altering components of the multi-attribute model. Potential strategies that M;S could have used include resolving conflicting attitudes and changing beliefs about competitor's brands.

5.1. The act of associating the product with a respected group, event, or cause.

Marks and Spencer aims to alter attitudes by employing admired groups, notably celebrities. In accordance with the concept of reference groups, M&S endeavors to achieve this through the utilization of popular figures like David Beckham.

In the previous year, M&S gave ?438,000 to six charities through the sales of charity Christmas cards. The recipients included Kidscape, CancerBACUP, and the National Homeless Alliance. The amount received by Kidscape was sufficient to support an anti-bullying helpline for two years. (www.kidscape.org.uk)

M&S has launched a new campaign called Rainbow of Hope to coincide with the Golden Jubilee Celebrations. The campaign aims to raise ?1million for charity, specifically benefiting I CAN. Notable celebrities, including Gabby Roslin and Kirsty Young, are supporting this campaign. (www.ican.org.uk)

Besides I CAN, M&S has also contributed funds to several other charities such as Breakthrough Breast Cancer, World Cancer Research, Disability Action's Celebrating Diversity - Arts Education and Ability Programme, and the National Neighbourhood Watch Association. M&S also emphasizes the importance of ethical trading.

In order to create a positive image and show care for the community, M;S sponsors and donates to various charities and events. This can potentially impact potential customers' attitudes by highlighting the company's associations with celebrities and the community.

5.2 Altering Components of the

Multi-attribute Model

The purpose of a multi-attribute model is to illustrate consumers' attitudes towards an attitude 'object' based on their perception and evaluation of its key attributes or beliefs (Shiffman and Kanuk, 2000).

5.2.1 Changing the Relative Evaluation of Attributes

"The overall market for many product categories often offers different brands with different features or benefits to cater to different consumer segments" (Shiffman and Kanuk, 2000). This can be seen in the example of M;S, where the Classically Stylish segment is offered simple, timeless yet stylish clothing, while the Designer Fashion segment is targeted with designer clothing from brands like Betty Jackson and Philip Treacy.

5.2.2 Changing Brand Beliefs

The process of changing brand beliefs involves altering people's beliefs or perceptions about the brand itself (Shiffman and Kanuk, 2000). In the case of Marks and Spencer (M&S), they acknowledge a decline in the perception of value and are therefore working towards changing this by focusing on factors that contribute to customer satisfaction, such as improved style perception, quality perception, fit, and newness (Holmes, 2001).

5.2.3 Adding an Attribute

According to Shiffman and Kanuk (2000), an attribute can be added by introducing something previously ignored that represents a betterment or technological innovation.

One example of such an innovation in M&S is the Secret Support lingerie range, which has been recognized with a Queens Award for Innovation. The Queens' Award for Innovation is given to distinguish exceptional innovations that have significantly enhanced commercial success and business performance and have been sustained for at least two years. Other instances of innovation at M&S include the introduction of machine washable suits for men, non-polish shoes, and the Bioform Bra.

In 2000, a new

attribute was added to M;S's service that could be considered an enhancement: they began accepting credit cards. Prior to this addition, customers could only make payments using cash, checks, debit cards, or store cards. However, due to a decrease in the number of customers, M;S had to make a change. The UK currently has a historical high level of ?140 billion in unsecured personal debt, such as credit cards and loans (source: news.bbc.co.uk). By accepting credit cards, M;S has improved their service by providing customers with more payment options.

5.2.4 Modifying the Total Brand Rating

This approach involves "trying to modify consumers' overall evaluations of the brand directly, without trying to enhance or alter their assessment of any individual brand attribute." (Schiffman and Kanuk, 2000).

Marks and Spencer's, founded on the principles of quality, value, service, innovation, and trust (www.marksandspencers.com), remains committed to these values. In an effort to reconnect with loyal customers and regain former ones, M;S has introduced clothing ranges that serve as a reminder of their core strengths (Rogers, 2001).

5.3 The resolution of two conflicting attitudes.

According to Schiffman and Kanuk (2000), if consumers can be convinced that their negative attitude towards a certain product, brand, or its attributes can coexist with another attitude, they may be persuaded to change their evaluation. This definition demonstrates how a negative attitude can be transformed into an overall positive standpoint. For instance, a previous loyal shopper at M;S who had concerns about the quality, service, and value of the store before its decline in 1998 may not have been interested in the clothing options. However, M;S has since introduced new stylish and affordable clothing lines such as Per

Una and Perfect. These new ranges may entice the customer to return and regain their loyalty.

5.4 Changing Beliefs about Competitors Brands

The strategy of comparative advertising must be approached carefully. Comparative advertising intends to emphasize the superiority of a brand over its competitors. One potential approach for M;S is to compare the timelessness and quality of their clothing products in the Perfect range, for instance, to those of a competitor. Another possibility is to compare their 'Count on Us' range of healthy eating options to other available food options, creating the impression that it is the healthiest choice.

6.0 Conclusion

In conclusion, Marks and Spencer aims to counter the impact of selective perception by utilizing models in their advertisements who have a 'normal' appearance. They use straightforward language like 'Perfect' to grab attention. The Perfect range, which provides reasonably priced and high-quality clothing, seeks to overcome selective perception by implying that their items are suitable for everyone. The underwear models with 'perfect' figures also contribute to overcoming selective perception as individuals will be attracted to both the image and the wording.

The text highlights that M;S utilizes different techniques, including psychographic, demographic, socio-cultural, and behavioral segmentation, to identify their target markets. However, research indicates that socio-demographic segmentation is no longer effective for market segmentation as it is becoming more standardized. Consequently, M;S should focus on segmenting their target markets using psychographic and behavioral segmentation methods.

Marks and Spencer's prior advertising strategies involved the utilization of celebrities including Claire Sweeney and David Beckham. The current advertising campaign features numerous popular celebrities, with the objective of generating substantial awareness and reaching out to new customers.

Marks and Spencer (M&S) is currently using

several strategies to change attitudes, such as associating their product with respected groups, events, or causes, and modifying aspects of their multi-attribute model. Their objective is to influence potential customers' opinions in favor of shopping with M;S. In the future, M;S may consider additional strategies such as resolving conflicting attitudes and altering beliefs about competitors' brands.

It is evident that Marks and Spencer's recovery involves recognizing the importance of meeting the needs and desires of both current and prospective customers in order to retain and attract them.

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