SlideShare ist ein Scribd-Unternehmen logo
1 von 29
Downloaden Sie, um offline zu lesen
Lovemarks or SafeBets?

     What drives consumers
in emerging versus mature markets


      Professor Koen Pauwels
     Ozyegin University, Istanbul




                                    1
My background: merging academics with business

•  From Belgium to UCLA to Tuck @ Dartmouth to Istanbul
•  Most publications & Awards in my academic cohort
•  Editorial board IJRM, JM, JMR, Marketing Science
•  Founded the Marketing Productivity Group
•  AIMark: Advisory Board & Coordinator Digital Marketing
•  #1 expert on Research/Metrics @marketingprofs.com
•  EU reintegration project: Return on Marketing
   Investment in Mature vs. Emerging Markets
across countries and industries

•  Fast moving consumer goods : e.g. Unilever
•  Durable goods : e.g. Nissan, Sony Eurasia
•  Retailing : e.g. Old Navy, Marks & Spencer Russia
•  Online services : e.g. Groupon, Kayak
•  Business-to-business: Inofec Dutch Furniture
•  Pharmaceuticals: eg. cholesterol reducers
•  Banking: North-Eastern US banks, Credit Europe
Marketing Performance: Measuring & Improving ROI


                      Search Engine Opt.   Click throughs?
                        Paid online ads    Awareness ?
           ?             New Products      Sales leads ?
                                           Satisfaction?
                       Price Promotions
                                           Loyalty?
                        New Channels
                                           Social media
                       Brand advertising             •
                                •                    •
                                •
                         Sales?
               ROI?      Profits?            ?
                      Stock Price?
Problem: smarter marketing in emerging markets




    Developed Markets           Emerging Markets


    Emerging markets needed for growth

But: institutional,         Imply ≠ response
cultural & economic       • What your research
differences between         words mean
countries (ICE)           • How much they trust
                            and react to ads
                          • How they respond to
                            marketing
Overview

•  What do your market research words mean ?

•  How do consumers trust and share advertising?

•  How do consumers’ hearts, minds, wallets react?

•  Case study: Personal care in Brazil vs the U.K.

•  Conclusion
                                                     6
What do your market research words mean ?
•  Even the best translation leaves true meaning ambiguous

Case: what does ‘environment’ mean in Germany & Turkey?

Leading multinational of cleaning products was surprised to
  find out that Turkish consumers had similar enthusiasm
  and willingness to pay for environment-friendly product
When probed what they meant by ‘environment’, many
  Turkish respondents said: “My home, my family”
To the follow-up question “What about streets, rivers, lakes?”
  they responded: “That is the government’s task, not mine”

                                                                 7
How much do consumers trust and share advertising?
                                                               2,75
 •  “Consumers in emerging                                                                      Brazil
    vs. mature markets are                                      2,7




                                Trust in general advertising
                                                                                                India
    more likely to talk about                                  2,65
                                                                                                China
    any kind of online                                          2,6
    advert” Mindshare 2011                                     2,55
                                                                                                US

 •  Studies show higher                                         2,5
                                                                                                UK

    trust in offline and                                       2,45
                                                                                                Netherlands
    online advertising in
                                                                2,4
    emerging markets
                                                               2,35
                                                                      0         50        100
                                                                          Individualism
                                                                                                        8
How do my (e)MBA students decide on electives ?

•  USA: Construct individual utility function based on
   information search and then each ‘bid’ on electives

•  Turkey: Get together and decide on which elective
   they should all take and then let administration know

If this differs for students with >6 years of business
   experience, it may reflect cultural differences



                                                         9
Which Route should your ads focus on?
Experiential Route                Functional Route
•  Evoke Sensations,             •  Focus on product features
   Feelings, Imaginations           and benefits

Has higher impact on ad          Drives ad affect + cognition,
  affect, which lifts purchase     which both lift intent in
  intent in mature markets         Emerging Markets

Germany, France, U.K, Italy,     BRIC, MIST, Argentina, Mexico, Chile,
  the Netherlands                Poland, Morocco, Saudi Arabia, Pakistan,
                                 Thailand, Vietnam, Indonesia, Philippines
                                                                     10
Romance & Reliability
•  Roberts (2005) identifies 3 key elements of a
   Lovemark: mystery, sensuality and intimacy: "We
   have passed through the age of information and
   knowledge and we now live in the age of ideas.
   Successful brands tell stories. They are romantic
   and mysterious.“
•  Mr Zhou (CEIBS, 2008) “In the end, it’s really the
   basic work, whether you have reliable quality, good
   service, that are the fundamental attributes of a
   brand.”

                                                     11
Customer Attitude Dynamics (Srinivasan et al. 2010)


                               What marketers do
                 •  Advertising
Marketing        •  Price
                 •  Distribution
builds
                       What customers think & feel
Attitudes
                 Awareness      Consideration        Liking

which convert

to brand sales               What customers do
                             Brand purchases
How does this differ in emerging markets ?

•  Pauwels, Erguncu and Yildirim, just published in IJRM

•  Explain marketing impact by 2 criteria of attitude
  dynamics
   –  Responsiveness to Marketing
   –  Conversion to Sales



•  We show that attitude dynamics (and thus marketing
   effects) differ for emerging vs. mature markets
                                                           13
1) Responsiveness: can marketers move the attitude?




                                                  14
2) Conversion: does it translate into sales/profits ?




                                                        15
Cultural
  Differences
 -  ndividualism
  I
                                                       Marketing Response
- Uncertainty av     Attitude Dynamics:                 of each attitude to:
-  ower Distance
 P                   Stickiness, Conversion

                        - Ad Awareness                      -  dvertising
                                                             A
                         -  onsideration
                          C                                - Distribution
  Economic
                            - Liking                           -  rice
                                                                P
  Differences
     -  ncome
      I
-  egal Protection
 L
  -  ompetition
   C
                                     Marketing Effectiveness
                                              -Sales
Case study: FMCG in Brazil vs U.K.
•  Recent Data for 3 brands x 2 personal care FMCGs
•  Econometric model of marketing, attitude, sales

  Controls for other potential differences:

1)  Brands: same brands in emerging/mature market
2)  Market (share) position: similar positioning, share
3) Similar potential: for attitude metrics


                                                     17
Advertising Response in Emerging vs Mature Market
                           category 1   category 2   TOTAL
                   0,020

                   0,015

AD AWARE           0,010


Emg > Mature       0,005

                   0,000
                   0,008


                   0,006

CONSIDER           0,004

Emg << Mature      0,002


                   0,000
                   0,012

                   0,010

LIKING             0,008

                   0,006

Emg << Mature      0,004

                   0,002

                   0,000                                     18
Sales Conversion in Emerging vs Mature Market
                         category 1   category 2   TOTAL
                  0,05

                  0,04

                  0,03
AD AWARE          0,02


Similar           0,01

                  0,00
                  0,20


                  0,15

CONSIDER          0,10


Emg > Mature      0,05


                  0,00
                  0,25

                  0,20
LIKING            0,15


Emg << Mature     0,10

                  0,05

                  0,00                                     19
‘Cost More’ Sales Conversion: + Emg, - Mature Market
         category 1      category 2       TOTAL
0,04



0,02



0,00



-0,02



-0,04



-0,06



-0,08



-0,10



-0,12


                                                  20
Love Marks or Safe Bets ?

                      Low sales           High sales
                      conversion          conversion

Low response to      Liking Emerging    Consideration Emg
marketing
                   Awareness Mature    Cost More Mat (-)


High response to   Consideration Mat    Liking Mature
marketing
                     Awareness Emg     Cost More Emerging


                                                            21
As illustrated in US-China debates on what a brand is

•  “Qualitative research reveals that the Chinese consumers
   feel the need to wear at least three branded items to feel
   comfortable at work. Yet, when probed further, they were at
   a loss, unable to define the features of a brand. However,
   they had no difficulty describing the product. It seems that
   for them, the product is the brand. The emotional
   connection is simply absent” (Lindstrom 2011)
•  Advani (2006) : "We are trying everyday to make Lenovo a
   global brand. Our goal is, not only people here but also
   people around the world know us. They will have an
   emotional connection with Lenovo. Becoming a name is
   one thing but having a deep emotional connection with the
   company is quite another. That is what our aspirations are:
   to become a brand that people around the world love.”      22
KEY TAKE AWAYS

•  You should probe for what words mean exactly
•  You should use higher trust in marketing & research
•  You should check which attitudes (cognition, affect)
   translate most into behavior in emerging markets
•  You should probe for the attitude response to
   advertising (higher-lower), price (good-bad),…
•  You should verify how consideration is driven by
   (online or offline) word-of-mouth
•  Quant needs to be validated by Qualitative Research

                                                     23
Want to learn more ?
•  It’s not the size of your data, it is how you use it: how to market
   smarter with analytic dashboards
•  Your free copy at: koen.pauwels@ozyegin.edu.tr

•  Website: www.marketdashboards.com
•  LinkedIn/Twitter: koenhpauwels
•  Facebook: http://www.facebook.com/pages/
   marketdashboardscom/207532115957700
The rise of the middle class

•  Even in countries with high income inequality (e.g. Brazil,
   Turkey), we see a strong rise of the middle class since 2001
•  Buying in food, cleaning, personal care much more equal
•  Narrow focus on top quarter of consumers would leave
   more than half of the market to competition!
•  From ‘high ground’ expensive products in mature markets
   to ‘good enough’ less expensive in emerging markets
•  But for travel, recreation, culture: top covers 60% of market




                                                               25
Lovemarks or SafeBets - What drives consumers in emerging versus mature markets - Ozyegin University
Lovemarks or SafeBets - What drives consumers in emerging versus mature markets - Ozyegin University

Weitere ähnliche Inhalte

Was ist angesagt? (6)

20111118 marketing genius 2012 delta lloyd topic_jean-jacques pisano_v_final
20111118 marketing genius 2012 delta lloyd topic_jean-jacques pisano_v_final20111118 marketing genius 2012 delta lloyd topic_jean-jacques pisano_v_final
20111118 marketing genius 2012 delta lloyd topic_jean-jacques pisano_v_final
 
Precognitive Marketing
Precognitive MarketingPrecognitive Marketing
Precognitive Marketing
 
Integrating Digital and Mail for Results
Integrating Digital and Mail for ResultsIntegrating Digital and Mail for Results
Integrating Digital and Mail for Results
 
Buyersphere Report 2012
Buyersphere Report 2012Buyersphere Report 2012
Buyersphere Report 2012
 
Inspire Advocates to Influence
Inspire Advocates to InfluenceInspire Advocates to Influence
Inspire Advocates to Influence
 
Marketing 3.0
Marketing 3.0Marketing 3.0
Marketing 3.0
 

Andere mochten auch (6)

Building Brands with Integrated Campaigns - Millward Brown
Building Brands with Integrated Campaigns - Millward BrownBuilding Brands with Integrated Campaigns - Millward Brown
Building Brands with Integrated Campaigns - Millward Brown
 
The Mekong Sub-region - Asia's Final Frontiers - TNS
The Mekong Sub-region - Asia's Final Frontiers - TNSThe Mekong Sub-region - Asia's Final Frontiers - TNS
The Mekong Sub-region - Asia's Final Frontiers - TNS
 
Innovation Yesterday, Today & Tomorrow - IFF
Innovation Yesterday, Today & Tomorrow - IFFInnovation Yesterday, Today & Tomorrow - IFF
Innovation Yesterday, Today & Tomorrow - IFF
 
'Mobilising' growth for clients in times of economic pressures, media fragmen...
'Mobilising' growth for clients in times of economic pressures, media fragmen...'Mobilising' growth for clients in times of economic pressures, media fragmen...
'Mobilising' growth for clients in times of economic pressures, media fragmen...
 
Connecting with Consumers Emotionally Across Platforms - Ipsos
Connecting with Consumers Emotionally Across Platforms - IpsosConnecting with Consumers Emotionally Across Platforms - Ipsos
Connecting with Consumers Emotionally Across Platforms - Ipsos
 
Vision 2020: How mobile market research will fit in for stakeholders across t...
Vision 2020: How mobile market research will fit in for stakeholders across t...Vision 2020: How mobile market research will fit in for stakeholders across t...
Vision 2020: How mobile market research will fit in for stakeholders across t...
 

Ähnlich wie Lovemarks or SafeBets - What drives consumers in emerging versus mature markets - Ozyegin University

Marketing 3.0 - Ahmed Saif
Marketing 3.0 - Ahmed SaifMarketing 3.0 - Ahmed Saif
Marketing 3.0 - Ahmed Saif
Roû MahMoûd
 
KINSHIP digital Social Media Consultancy company overview
KINSHIP digital  Social Media Consultancy company overview KINSHIP digital  Social Media Consultancy company overview
KINSHIP digital Social Media Consultancy company overview
KINSHIP digital
 
Community conference 2011 - Dell, Bill Johnston
Community conference 2011 - Dell, Bill JohnstonCommunity conference 2011 - Dell, Bill Johnston
Community conference 2011 - Dell, Bill Johnston
Seismonaut
 
How Social Media Has Altered Customer Experience
How Social Media Has Altered Customer ExperienceHow Social Media Has Altered Customer Experience
How Social Media Has Altered Customer Experience
Social Strategy1
 

Ähnlich wie Lovemarks or SafeBets - What drives consumers in emerging versus mature markets - Ozyegin University (20)

Customer Experience Management: The Key to Continued Business Growth and Succ...
Customer Experience Management: The Key to Continued Business Growth and Succ...Customer Experience Management: The Key to Continued Business Growth and Succ...
Customer Experience Management: The Key to Continued Business Growth and Succ...
 
Marketing 3.0 - Ahmed Saif
Marketing 3.0 - Ahmed SaifMarketing 3.0 - Ahmed Saif
Marketing 3.0 - Ahmed Saif
 
Mktg comms mkt0033_chpt1
Mktg comms mkt0033_chpt1Mktg comms mkt0033_chpt1
Mktg comms mkt0033_chpt1
 
How to survive the future of marketing - Keynote at RODIRECT
How to survive the future of marketing - Keynote at RODIRECTHow to survive the future of marketing - Keynote at RODIRECT
How to survive the future of marketing - Keynote at RODIRECT
 
KINSHIP digital Social Media Consultancy company overview
KINSHIP digital  Social Media Consultancy company overview KINSHIP digital  Social Media Consultancy company overview
KINSHIP digital Social Media Consultancy company overview
 
AMEC's New Valid Metrics
AMEC's New Valid MetricsAMEC's New Valid Metrics
AMEC's New Valid Metrics
 
Osb Consultancy & Business Development
Osb Consultancy & Business DevelopmentOsb Consultancy & Business Development
Osb Consultancy & Business Development
 
Who is My Customer
Who is My CustomerWho is My Customer
Who is My Customer
 
Wikibrands SMB Ottawa
Wikibrands SMB OttawaWikibrands SMB Ottawa
Wikibrands SMB Ottawa
 
What's good digital communication?
What's good digital communication?What's good digital communication?
What's good digital communication?
 
Community conference 2011 - Dell, Bill Johnston
Community conference 2011 - Dell, Bill JohnstonCommunity conference 2011 - Dell, Bill Johnston
Community conference 2011 - Dell, Bill Johnston
 
Marketing of Financial Services (Nepalese Context)
Marketing of Financial Services (Nepalese Context)Marketing of Financial Services (Nepalese Context)
Marketing of Financial Services (Nepalese Context)
 
Living Your Brand Through Storytelling
Living  Your  Brand Through  StorytellingLiving  Your  Brand Through  Storytelling
Living Your Brand Through Storytelling
 
How to Develop an Integrated Marketing Strategy
How to Develop an Integrated Marketing StrategyHow to Develop an Integrated Marketing Strategy
How to Develop an Integrated Marketing Strategy
 
How Social Media Has Altered Customer Experience
How Social Media Has Altered Customer ExperienceHow Social Media Has Altered Customer Experience
How Social Media Has Altered Customer Experience
 
Advertising Lecture Consumer and Marketing 101309
Advertising Lecture Consumer and    Marketing 101309Advertising Lecture Consumer and    Marketing 101309
Advertising Lecture Consumer and Marketing 101309
 
Think digital dms 8 29-12
Think digital dms 8 29-12Think digital dms 8 29-12
Think digital dms 8 29-12
 
Taking your reference program global
Taking your reference program globalTaking your reference program global
Taking your reference program global
 
CEO Institute
CEO Institute CEO Institute
CEO Institute
 
7 Ways Covid-19 is Shaping the Future of Brands: Building Brand Resilience in...
7 Ways Covid-19 is Shaping the Future of Brands: Building Brand Resilience in...7 Ways Covid-19 is Shaping the Future of Brands: Building Brand Resilience in...
7 Ways Covid-19 is Shaping the Future of Brands: Building Brand Resilience in...
 

Mehr von Merlien Institute

Overcoming technical and infrastructure challenges for mobile research in Afr...
Overcoming technical and infrastructure challenges for mobile research in Afr...Overcoming technical and infrastructure challenges for mobile research in Afr...
Overcoming technical and infrastructure challenges for mobile research in Afr...
Merlien Institute
 
In mobile diary research the map is not the territory - TNS
In mobile diary research the map is not the territory - TNSIn mobile diary research the map is not the territory - TNS
In mobile diary research the map is not the territory - TNS
Merlien Institute
 
Building Brands in a Mobile World - Added Value
Building Brands in a Mobile World - Added ValueBuilding Brands in a Mobile World - Added Value
Building Brands in a Mobile World - Added Value
Merlien Institute
 

Mehr von Merlien Institute (20)

Overcoming technical and infrastructure challenges for mobile research in Afr...
Overcoming technical and infrastructure challenges for mobile research in Afr...Overcoming technical and infrastructure challenges for mobile research in Afr...
Overcoming technical and infrastructure challenges for mobile research in Afr...
 
Mobile Research – What’s the point - Millward Brown
Mobile Research – What’s the point - Millward BrownMobile Research – What’s the point - Millward Brown
Mobile Research – What’s the point - Millward Brown
 
Clustering by mobile usage and behaviour – the many faces of smartphone users...
Clustering by mobile usage and behaviour – the many faces of smartphone users...Clustering by mobile usage and behaviour – the many faces of smartphone users...
Clustering by mobile usage and behaviour – the many faces of smartphone users...
 
Cracking the code…Insights for mobile from behavioral sciences - Pondering Panda
Cracking the code…Insights for mobile from behavioral sciences - Pondering PandaCracking the code…Insights for mobile from behavioral sciences - Pondering Panda
Cracking the code…Insights for mobile from behavioral sciences - Pondering Panda
 
Understanding respondent’s interaction with household electronics – using tab...
Understanding respondent’s interaction with household electronics – using tab...Understanding respondent’s interaction with household electronics – using tab...
Understanding respondent’s interaction with household electronics – using tab...
 
The why, what and how to use mobile marketing in Africa - MMA SA
The why, what and how to use mobile marketing in Africa - MMA SAThe why, what and how to use mobile marketing in Africa - MMA SA
The why, what and how to use mobile marketing in Africa - MMA SA
 
Maximising internet based mobile research in Africa - TNS & Binu
Maximising internet based mobile research in Africa - TNS & BinuMaximising internet based mobile research in Africa - TNS & Binu
Maximising internet based mobile research in Africa - TNS & Binu
 
Something fishy is going on in the world of mobile research - Sea Harvest & TNS
Something fishy is going on in the world of mobile research - Sea Harvest & TNSSomething fishy is going on in the world of mobile research - Sea Harvest & TNS
Something fishy is going on in the world of mobile research - Sea Harvest & TNS
 
Mobile Qual – opening new ways to leverage Africa’s mobile first society - IK...
Mobile Qual – opening new ways to leverage Africa’s mobile first society - IK...Mobile Qual – opening new ways to leverage Africa’s mobile first society - IK...
Mobile Qual – opening new ways to leverage Africa’s mobile first society - IK...
 
Mobile Market Research - a brand owner's perspective - PZ Cussons
Mobile Market Research - a brand owner's perspective - PZ CussonsMobile Market Research - a brand owner's perspective - PZ Cussons
Mobile Market Research - a brand owner's perspective - PZ Cussons
 
Leveraging longitudinal communities for better, faster and cheaper insights -...
Leveraging longitudinal communities for better, faster and cheaper insights -...Leveraging longitudinal communities for better, faster and cheaper insights -...
Leveraging longitudinal communities for better, faster and cheaper insights -...
 
Insights and Innovations – today and the way forward for mobile research from...
Insights and Innovations – today and the way forward for mobile research from...Insights and Innovations – today and the way forward for mobile research from...
Insights and Innovations – today and the way forward for mobile research from...
 
Tablets killed the paper star – tablet usage in developing and emerging marke...
Tablets killed the paper star – tablet usage in developing and emerging marke...Tablets killed the paper star – tablet usage in developing and emerging marke...
Tablets killed the paper star – tablet usage in developing and emerging marke...
 
Leveraging mobile to bring overnight television ratings to Africa - GeoPoll
Leveraging mobile to bring overnight television ratings to Africa - GeoPollLeveraging mobile to bring overnight television ratings to Africa - GeoPoll
Leveraging mobile to bring overnight television ratings to Africa - GeoPoll
 
In mobile diary research the map is not the territory - TNS
In mobile diary research the map is not the territory - TNSIn mobile diary research the map is not the territory - TNS
In mobile diary research the map is not the territory - TNS
 
Engaging youth – using social media networks to generate valuable insights - ...
Engaging youth – using social media networks to generate valuable insights - ...Engaging youth – using social media networks to generate valuable insights - ...
Engaging youth – using social media networks to generate valuable insights - ...
 
Building Brands in a Mobile World - Added Value
Building Brands in a Mobile World - Added ValueBuilding Brands in a Mobile World - Added Value
Building Brands in a Mobile World - Added Value
 
'What is in a name!' - Name-test Using 'Contextual Probing' - GfK & Tata Sky
'What is in a name!' - Name-test Using 'Contextual Probing' - GfK & Tata Sky'What is in a name!' - Name-test Using 'Contextual Probing' - GfK & Tata Sky
'What is in a name!' - Name-test Using 'Contextual Probing' - GfK & Tata Sky
 
The evolution of Qual research - Kellogg
The evolution of Qual research - KelloggThe evolution of Qual research - Kellogg
The evolution of Qual research - Kellogg
 
Taming the raging river - Qualitative Research & Social Media - Firefly
Taming the raging river - Qualitative Research & Social Media - FireflyTaming the raging river - Qualitative Research & Social Media - Firefly
Taming the raging river - Qualitative Research & Social Media - Firefly
 

Kürzlich hochgeladen

FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
dollysharma2066
 
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
lizamodels9
 
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
dlhescort
 
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
dollysharma2066
 
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
lizamodels9
 
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
amitlee9823
 
Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000
Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000
Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000
dlhescort
 

Kürzlich hochgeladen (20)

FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Mahipalpur Delhi Contact Us 8377877756
 
PHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation FinalPHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation Final
 
Falcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to ProsperityFalcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to Prosperity
 
(Anamika) VIP Call Girls Napur Call Now 8617697112 Napur Escorts 24x7
(Anamika) VIP Call Girls Napur Call Now 8617697112 Napur Escorts 24x7(Anamika) VIP Call Girls Napur Call Now 8617697112 Napur Escorts 24x7
(Anamika) VIP Call Girls Napur Call Now 8617697112 Napur Escorts 24x7
 
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
 
How to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League CityHow to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League City
 
Falcon Invoice Discounting: The best investment platform in india for investors
Falcon Invoice Discounting: The best investment platform in india for investorsFalcon Invoice Discounting: The best investment platform in india for investors
Falcon Invoice Discounting: The best investment platform in india for investors
 
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
Call Girls in Delhi, Escort Service Available 24x7 in Delhi 959961-/-3876
 
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
FULL ENJOY Call Girls In Majnu Ka Tilla, Delhi Contact Us 8377877756
 
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
 
JAYNAGAR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRL
JAYNAGAR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRLJAYNAGAR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRL
JAYNAGAR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRL
 
Eluru Call Girls Service ☎ ️93326-06886 ❤️‍🔥 Enjoy 24/7 Escort Service
Eluru Call Girls Service ☎ ️93326-06886 ❤️‍🔥 Enjoy 24/7 Escort ServiceEluru Call Girls Service ☎ ️93326-06886 ❤️‍🔥 Enjoy 24/7 Escort Service
Eluru Call Girls Service ☎ ️93326-06886 ❤️‍🔥 Enjoy 24/7 Escort Service
 
Value Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and painsValue Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and pains
 
BAGALUR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRL
BAGALUR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRLBAGALUR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRL
BAGALUR CALL GIRL IN 98274*61493 ❤CALL GIRLS IN ESCORT SERVICE❤CALL GIRL
 
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
 
Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000
Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000
Call Girls In Majnu Ka Tilla 959961~3876 Shot 2000 Night 8000
 
Falcon Invoice Discounting: Empowering Your Business Growth
Falcon Invoice Discounting: Empowering Your Business GrowthFalcon Invoice Discounting: Empowering Your Business Growth
Falcon Invoice Discounting: Empowering Your Business Growth
 
It will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 MayIt will be International Nurses' Day on 12 May
It will be International Nurses' Day on 12 May
 
Cheap Rate Call Girls In Noida Sector 62 Metro 959961乂3876
Cheap Rate Call Girls In Noida Sector 62 Metro 959961乂3876Cheap Rate Call Girls In Noida Sector 62 Metro 959961乂3876
Cheap Rate Call Girls In Noida Sector 62 Metro 959961乂3876
 
👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...
👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...
👉Chandigarh Call Girls 👉9878799926👉Just Call👉Chandigarh Call Girl In Chandiga...
 

Lovemarks or SafeBets - What drives consumers in emerging versus mature markets - Ozyegin University

  • 1.
  • 2.
  • 3. Lovemarks or SafeBets? What drives consumers in emerging versus mature markets Professor Koen Pauwels Ozyegin University, Istanbul 1
  • 4. My background: merging academics with business •  From Belgium to UCLA to Tuck @ Dartmouth to Istanbul •  Most publications & Awards in my academic cohort •  Editorial board IJRM, JM, JMR, Marketing Science •  Founded the Marketing Productivity Group •  AIMark: Advisory Board & Coordinator Digital Marketing •  #1 expert on Research/Metrics @marketingprofs.com •  EU reintegration project: Return on Marketing Investment in Mature vs. Emerging Markets
  • 5. across countries and industries •  Fast moving consumer goods : e.g. Unilever •  Durable goods : e.g. Nissan, Sony Eurasia •  Retailing : e.g. Old Navy, Marks & Spencer Russia •  Online services : e.g. Groupon, Kayak •  Business-to-business: Inofec Dutch Furniture •  Pharmaceuticals: eg. cholesterol reducers •  Banking: North-Eastern US banks, Credit Europe
  • 6. Marketing Performance: Measuring & Improving ROI Search Engine Opt. Click throughs? Paid online ads Awareness ? ? New Products Sales leads ? Satisfaction? Price Promotions Loyalty? New Channels Social media Brand advertising • • • • Sales? ROI? Profits? ? Stock Price?
  • 7. Problem: smarter marketing in emerging markets Developed Markets Emerging Markets Emerging markets needed for growth But: institutional, Imply ≠ response cultural & economic • What your research differences between words mean countries (ICE) • How much they trust and react to ads • How they respond to marketing
  • 8. Overview •  What do your market research words mean ? •  How do consumers trust and share advertising? •  How do consumers’ hearts, minds, wallets react? •  Case study: Personal care in Brazil vs the U.K. •  Conclusion 6
  • 9. What do your market research words mean ? •  Even the best translation leaves true meaning ambiguous Case: what does ‘environment’ mean in Germany & Turkey? Leading multinational of cleaning products was surprised to find out that Turkish consumers had similar enthusiasm and willingness to pay for environment-friendly product When probed what they meant by ‘environment’, many Turkish respondents said: “My home, my family” To the follow-up question “What about streets, rivers, lakes?” they responded: “That is the government’s task, not mine” 7
  • 10. How much do consumers trust and share advertising? 2,75 •  “Consumers in emerging Brazil vs. mature markets are 2,7 Trust in general advertising India more likely to talk about 2,65 China any kind of online 2,6 advert” Mindshare 2011 2,55 US •  Studies show higher 2,5 UK trust in offline and 2,45 Netherlands online advertising in 2,4 emerging markets 2,35 0 50 100 Individualism 8
  • 11. How do my (e)MBA students decide on electives ? •  USA: Construct individual utility function based on information search and then each ‘bid’ on electives •  Turkey: Get together and decide on which elective they should all take and then let administration know If this differs for students with >6 years of business experience, it may reflect cultural differences 9
  • 12. Which Route should your ads focus on? Experiential Route Functional Route •  Evoke Sensations, •  Focus on product features Feelings, Imaginations and benefits Has higher impact on ad Drives ad affect + cognition, affect, which lifts purchase which both lift intent in intent in mature markets Emerging Markets Germany, France, U.K, Italy, BRIC, MIST, Argentina, Mexico, Chile, the Netherlands Poland, Morocco, Saudi Arabia, Pakistan, Thailand, Vietnam, Indonesia, Philippines 10
  • 13. Romance & Reliability •  Roberts (2005) identifies 3 key elements of a Lovemark: mystery, sensuality and intimacy: "We have passed through the age of information and knowledge and we now live in the age of ideas. Successful brands tell stories. They are romantic and mysterious.“ •  Mr Zhou (CEIBS, 2008) “In the end, it’s really the basic work, whether you have reliable quality, good service, that are the fundamental attributes of a brand.” 11
  • 14. Customer Attitude Dynamics (Srinivasan et al. 2010) What marketers do •  Advertising Marketing •  Price •  Distribution builds What customers think & feel Attitudes Awareness Consideration Liking which convert to brand sales What customers do Brand purchases
  • 15. How does this differ in emerging markets ? •  Pauwels, Erguncu and Yildirim, just published in IJRM •  Explain marketing impact by 2 criteria of attitude dynamics –  Responsiveness to Marketing –  Conversion to Sales •  We show that attitude dynamics (and thus marketing effects) differ for emerging vs. mature markets 13
  • 16. 1) Responsiveness: can marketers move the attitude? 14
  • 17. 2) Conversion: does it translate into sales/profits ? 15
  • 18. Cultural Differences -  ndividualism I Marketing Response - Uncertainty av Attitude Dynamics: of each attitude to: -  ower Distance P Stickiness, Conversion - Ad Awareness -  dvertising A -  onsideration C - Distribution Economic - Liking -  rice P Differences -  ncome I -  egal Protection L -  ompetition C Marketing Effectiveness -Sales
  • 19. Case study: FMCG in Brazil vs U.K. •  Recent Data for 3 brands x 2 personal care FMCGs •  Econometric model of marketing, attitude, sales Controls for other potential differences: 1)  Brands: same brands in emerging/mature market 2)  Market (share) position: similar positioning, share 3) Similar potential: for attitude metrics 17
  • 20. Advertising Response in Emerging vs Mature Market category 1 category 2 TOTAL 0,020 0,015 AD AWARE 0,010 Emg > Mature 0,005 0,000 0,008 0,006 CONSIDER 0,004 Emg << Mature 0,002 0,000 0,012 0,010 LIKING 0,008 0,006 Emg << Mature 0,004 0,002 0,000 18
  • 21. Sales Conversion in Emerging vs Mature Market category 1 category 2 TOTAL 0,05 0,04 0,03 AD AWARE 0,02 Similar 0,01 0,00 0,20 0,15 CONSIDER 0,10 Emg > Mature 0,05 0,00 0,25 0,20 LIKING 0,15 Emg << Mature 0,10 0,05 0,00 19
  • 22. ‘Cost More’ Sales Conversion: + Emg, - Mature Market category 1 category 2 TOTAL 0,04 0,02 0,00 -0,02 -0,04 -0,06 -0,08 -0,10 -0,12 20
  • 23. Love Marks or Safe Bets ? Low sales High sales conversion conversion Low response to Liking Emerging Consideration Emg marketing Awareness Mature Cost More Mat (-) High response to Consideration Mat Liking Mature marketing Awareness Emg Cost More Emerging 21
  • 24. As illustrated in US-China debates on what a brand is •  “Qualitative research reveals that the Chinese consumers feel the need to wear at least three branded items to feel comfortable at work. Yet, when probed further, they were at a loss, unable to define the features of a brand. However, they had no difficulty describing the product. It seems that for them, the product is the brand. The emotional connection is simply absent” (Lindstrom 2011) •  Advani (2006) : "We are trying everyday to make Lenovo a global brand. Our goal is, not only people here but also people around the world know us. They will have an emotional connection with Lenovo. Becoming a name is one thing but having a deep emotional connection with the company is quite another. That is what our aspirations are: to become a brand that people around the world love.” 22
  • 25. KEY TAKE AWAYS •  You should probe for what words mean exactly •  You should use higher trust in marketing & research •  You should check which attitudes (cognition, affect) translate most into behavior in emerging markets •  You should probe for the attitude response to advertising (higher-lower), price (good-bad),… •  You should verify how consideration is driven by (online or offline) word-of-mouth •  Quant needs to be validated by Qualitative Research 23
  • 26. Want to learn more ? •  It’s not the size of your data, it is how you use it: how to market smarter with analytic dashboards •  Your free copy at: koen.pauwels@ozyegin.edu.tr •  Website: www.marketdashboards.com •  LinkedIn/Twitter: koenhpauwels •  Facebook: http://www.facebook.com/pages/ marketdashboardscom/207532115957700
  • 27. The rise of the middle class •  Even in countries with high income inequality (e.g. Brazil, Turkey), we see a strong rise of the middle class since 2001 •  Buying in food, cleaning, personal care much more equal •  Narrow focus on top quarter of consumers would leave more than half of the market to competition! •  From ‘high ground’ expensive products in mature markets to ‘good enough’ less expensive in emerging markets •  But for travel, recreation, culture: top covers 60% of market 25