Marketing Opportunity Need Use the?same Marketing opportunity 1 (see in file)? Company used: ZARA -Virtual Fitting Room [Use

[ZARA -Virtual Fitting Room ]

Organization/Brand overview

Zara was founded by Amancio Ortega in 1975 and is owned by Inditex Group. The fashion group is the

largest apparel retailer and is made up of eight different brands. The largest is Zara, with over 2047 stores

in 96 countries. The company operates with a lean organizational structure, which emphasizes high

performance and works to reduce the number of managerial hierarchy levels and decentralize

decision-making. Zara is also a vertically integrated company which means that they have control over

several or all of the production and distribution steps involved in the creation of their product at their

textile dye house. From design to delivery, it takes the company only five weeks for a garment and only

two weeks for an existing model. This method shortens the product life cycle, which allows for greater

success in meeting consumer needs.

Marketing Opportunity

“ Identify the marketing opportunity (product or service) your chosen organization/brand can take advantage of and use as leverage to improve their business. Along with a detailed description of the opportunity, you should discuss why this opportunity is relevant in the current context and is also

important for the company. This opportunity shouldn't already be provided by your chosen brand. That said, the product/service may already be in the market and offered by a competitor. But your chosen

brand shouldn't already be offering that product/service.”

Zara is one of the most prominent fashion organizations and its expertise is dealing with the fast

fashion which is demanded both in the local and international regions. Zara has gained dominance as the

biggest retailer because of specializing in assorted products for customer satisfaction. It was founded in

Spain by a Spanish fashion icon and gradually grew to a global merchandise distributor (Lee & Xu,

2020). Zara stays afloat in the international markets through establishing various opportunities which can

be positively manipulated primarily for profit maximization. The virtual fitting room is the current

trending technique in the business world which can have a positive impact on Zara when incorporated.

Virtual fitting room expounds having clients fit in their desired clothes or jewelry without physically

touching the fabric. It is an advanced technology which functions by capturing a client’s image and using

it to virtually fit the clothes according to their mentioned tastes and preferences.

Zara should use the technique because it will elevate their online markets and attract new clients.

It saves time because customers will make their purchases and fit in the virtual rooms thus minimizing

face to face selling. That is an excellent strategy especially for clients working on a tight schedule and

need a change of clothes and other accessories. Another benefit is that it will reduce physical fitting which

tampers with the cloth’s fabric (Lee & Xu, 2020). People have different shapes and sizes thus will

negatively impact the fabrics due to expansion. The virtual fitting rooms ensure that an individual has a

clear view of how the selected cloth will look before they accept the delivery. It reduces chances that an

individual will reject the placed order because most time has been allocated in ensuring that they have

made an informed decision before placing a purchase.

Reference

Lee, H., & Xu, Y. (2020). Classification of virtual fitting room technologies in the fashion

industry: from the perspective of consumer experience. International journal of fashion

design, technology and education, 13(1), 1-10.

Marketing Communication

“Market Communication: Use two concepts from Chapter 3 and two concepts from Chapter 4 to propose a communication strategy for your new opportunity. Along with a detailed description of your strategy,

you should discuss why these strategies are suitable for your recommended opportunity.”

[CONCEPT 1] Chapter 3

One major weakness of advertising on a virtual platform is not being able to produce a physical and normal reaction, in a way, they won’t see the product unless it is right in front of them. One idea that I was able to produce to encourage a virtual fitting room for Zara is building a virtual “store”. People would like to navigate a set source of clothes on themselves, the main point of a virtual fitting room, but the

point is that the technology overall is not yet advanced to produce pinpoint accuracy of the product. If they were to set up a virtual fitting room, they could produce something bigger. The idea is to utilize augmented reality and virtual reality. A good strategy is to allow customers to not only recognize the brand but the store layout itself. Although it may vary, each store has a style to produce for customers. Virtual Reality could allow users to walk around and see categories of clothes when they walk up to a specific section. From there, they could use augmented reality to debate the well-being of the clothes for themselves. It may not solve the accuracy but it could help people be introduced to where they could walk to find the product or see a bigger category from the in-person store.

[CONCEPT 2] Chapter 4

An idea that Zara could implement is the use of classic conditioning. With a specific sound being played after purchase through the virtual fitting room. The idea is that the sound would produce Positive Reinforcement when the consumer would buy their product. There would be an incentive to purchase and utilize a virtual fitting room when the consumer is offered use of ease and possibly better deals. When asked to purchase an item online through the application, if you were not going to use one of the deals, the purchase would not include a sound. If one were to give in to the exclusive deals you would hear the simple sound that customers can remember and be influenced to continue. “It’s like a reward”.

[CONCEPT 3] Chapter 3

Another concept that Zara can highlight is the process of attracting the attention of its consumers. A way the company can do this is by focusing on individual and personal selection factors that are to be considered when looking at decisions consumers make. These are the unique characteristics which distinguish one individual from another. In this specific case, the virtual fitting room simulation will allow customers to distinguish what they want to wear and how it will potentially look on them and aid their decision making process. This feature would also allow the user to quickly transition from product to product in comparison to the “trying on” process that occurs in a tangible setting. This would greatly benefit Zara as a company because their website is known for being confusing for consumers. Additionally, Zara is well known for their large selection of fashion merchandise which can become overwhelming for customers as they navigate their options on the website. This feature would also provide the opportunity for Zara consumers, who are known to be very fashion forward, to put together different articles of clothing to create their own individual outfits. Essentially, virtual fitting rooms would help Zara capitalize on their main consumer market by making the clothing selection process more efficient through implementing technology.

[CONCEPT 4] Chapter 4

Looking at chapter 4 lecture material, it is evident that there are two ways consumers process information. These ways include short term and long term memory. Implementing this virtual fitting room for Zara, it would be best to take advantage of imagery processing that occurs when consumers process information with their short term memory. With this added feature, consumers are exposed to sensory information

such as images and are able to make conscious clothing choices through this function. This imagery can then affect product liking and choices that the consumer makes. Hopefully, with the virtual fitting room feature, customers will appreciate their ability to see how clothes will look on them and remember their favorite pieces from their selections. As a result, our idea for the company will improve on increasing attention in the consumer's mind and making their fashion experience shift from their short term to long term memory. In layman's terms, if we get consumers to pay more attention to how the clothes look on their bodies uniquely, the information will be processed much more efficiently. We can also keep in mind that familiarity will increase the company's chance for consumers to remember their clothing options–so having styles and pieces that are seen in trends on social media and other aspects of our daily lives will give us a better chance.

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Chapter 5: Motivation and Affect

What is Motivation?

Definition: Inner state of arousal directed toward achieving a goal. process that leads people to behave as they do. occurs when a need is aroused that the consumer wishes to satisfy.

Characterized by: Strength (how strongly are you motivated?) Direction (how are you going to satisfy your

need or achieve your goal?)

It affects: Consumers’ perception process: exposure

(e.g., search), attention, perception Attitudes Behavior

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Characteristics: Motivational Strength

Motivational Strength: degree of willingness to expend energy to reach a goal Generally, increases with greater differences between actual & desired

states (need strength). Generally higher for intrinsic vs. extrinsic motivations

Incentive Theory:

• Extrinsic motivation is encouragement from an outside force.

• Behavior is performed based on the expectation of an outside reward (or consequence), such as money or praise (or punishment).

• Frequent flier programs → free flights, better seats • Retail store credit cards → sales, exclusive offers • Expected punishment → laws & regulations

• Intrinsic motivation is the stimulation or drive stemming from within oneself.

• Behavior is performed based on the expectation of enjoyment, pleasure, or curiosity satisfaction.

• Spa treatments → Relaxation • Hobbies → Enjoyment, fun • Movies → Entertainment

• The incentive theory suggests that people are motivated to do things because of rewards. • Behavioral learning concepts such as association and reinforcement play an important role • Incentives can arise from outside (extrinsic) or inside (intrinsic) an individual.

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Drive Theory:

 Whether the need is utilitarian or hedonic, the magnitude of tension it creates determines the urgency the consumer feels to reduce it. This degree of tension is called drive.

 According to the drive theory of motivation, people are motivated to take certain actions in order to reduce the internal tension that is caused by unmet needs.  For example, you might be motivated to drink a glass of water in order to reduce the internal

state of thirst.

 The drive theory is based on the concept of homeostasis, or the idea that the body actively works to maintain a certain state of balance or equilibrium.

 This need to reduce tension is a basic mechanism that governs much of our behavior.  If a behavior reduces the drive (i.e., the tension), we tend to repeat it.

 This theory is useful in explaining behaviors that have a strong biological or physiological component, such as hunger or thirst.

Drive Theory: Retail Therapy

State of Tension: Emotional distress Action: Shopping

The act of shopping restores a sense of personal control over one’s environment and as a result can alleviate feelings of sadness (reduces the drive/tension).

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Expectancy Theory:

 Expectancy theory suggests that expectations of achieving desirable outcome in the future, motivate our behavior.

 This theory focuses on the cognitive factors rather than biological ones (drive theory) to understand what motivates behavior.

 We choose one product over another because we expect this choice to have more positive consequences for us.

 The theory proposes that motivations consist of three key elements:

the value people place on the potential outcome

whether people believe that they have a role to play in

the predicted outcome

the belief that one has the capabilities to produce the

outcome

Motivation Theory: Summary

Theory Explanation

Incentive people are motivated to do things because of incentives (i.e., to receive positive incentives and avoid negative incentives)

Two types of incentives – extrinsic vs. intrinsic

Drive people are motivated to take certain actions in order to reduce the internal tension that is caused by unmet needs

– Useful in explaining behaviors that have a strong biological or physiological component, such as hunger or sadness

– E.g., Retail Therapy

Expectancy expectations of achieving desirable outcome in the future, motivate our behavior

– Focuses on the cognitive factors to understand what motivates behavior

– Three elements: Valence, Performance & Effort

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Motivational Direction:

Motivational Strength: degree of willingness to expend energy to reach a goal Generally, increases with greater differences between actual & desired

states (need strength). Generally higher for intrinsic vs. extrinsic motivations

Motivational Direction: the path taken to satisfy the goal (reduce the discrepancy) A function of the type of need and available goal satisfying options. What do I need and how can I get it? – By approaching something or by

avoiding something

Motivational Direction:

 A goal’s valence can be positive or negative

 We are motivated to approach a goal we value positively

 We seek out products that help us reach positive results.

 E.g., products like spas and chocolates frequently rely on consumers need to feel good and relaxed.

 On the other hand, we are motivated to avoid negative outcomes

 We structure our purchases or consumption activities to reduce the chances that we will experience a negative result.

 E.g., products like deodorant and mouthwash frequently rely on consumers need to avoid negative outcomes of underarm odor or bad breath.

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Motivational Direction & Conflict:

• Two desirable alternatives

• Positive & negative aspects of a single alternative • Product corresponds to conflicting goals

• Facing a choice with two undesirable alternatives

“Best of both worlds.”

•Diminish the negative perception •Justify the negatives •Bolster the positives •Offer option without the negative

•Lesser of the two evils •Stress unforeseen benefits of choosing one option

Incidental brand exposure:

vs.

 Does the consumer even need to be aware of the motivation to achieve a goal?  Motives can lurk beneath the surface.

 Environmental cues can sometimes activate a goal even when we aren’t consciously aware of it  Social Cues  Brand Cues (Incidental brand exposure).

Incidental brand exposure:

Participants responded to brands by behaving in line with the brand’s characteristics and

did so with no conscious awareness of the influence.

When brands are goal relevant (i.e., they are associated with desired self-states such as “to

be creative”), exposure to those brands elicits goal- directed behavior, such as

increased creativity.

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The Difficulty in Linking Motives to Behavior:

 Manifest Motives: Some motives are fairly obvious and likely to be stated by the consumer.

 linked to concrete attributes or benefits of the product.

 Latent Motives: Consumer’s often have motives that are private.

 linked to the consumer’s self-concept and self- image.

 can also relate to socially undesirable or embarrassing aspects of the brand that appeal to the consumer.

 At times, manifest motives are used as “excuses” for purchases driven by latent motives.

 Regardless of what type of motive is truly driving a consumer’s purchase behavior, it is vital for the marketer to understand what those motives are.

Means-end Chain Model:

 The means-end approach is based on a theory that product and service attributes are associated with consequences, or product benefits and risks, and even the personal values the product can help consumers fulfill.

 The result is a value chain linking a product attribute (means) to its functional consequence, to the psychosocial (or emotional) consequence, to the underlying personal value (ends).

Attribute

SUV does not have sliding

doors

Functional Benefit

has a more stylish design

Psychological Benefit

I feel trendy driving it

Value

acceptance by my peers

Why does a soccer mom drive an SUV

instead of a mini-van?

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Means-end Chain Model:

Attributes & Features

Concrete characteristics of the product or service offering

Benefits

How do the attributes & features benefit the consumer

Motives

Why the consumer really values these benefits (usually relate to a more general desired goal-

state)

What distinguishes attributes/features from benefits?

Attributes/features are objective: we can all agree what they are.

Benefits are subjective: the value of attributes will be different for different consumers.

what how why

Uncovering Needs & Motives: Laddering Technique

Laddering interviewing technique • Ask the consumer what a given attribute means to them and why and keep

asking until the deeper motive emerges.

A simple example: • Why did you choose this car?

• It has good gas mileage (the what).

• Why did you want good gas mileage? • It reduces pollution (the how).

• Why is reducing pollution important to you? • I want to leave a cleaner/better world for my children (the why).*

* This is a very labor and time-intensive process, but you may be able to uncover deep and important reasons why consumers are or are not purchasing your product(s).

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Uncovering Needs & Motives: Laddering Technique

Benefit

Attribute

Benefit

Benefit

Value

Rule – of – thumb: 5 Whys

Motivation: Main Takeaways

Motivations vary in terms of:  strength

 direction

Intrinsic vs. Extrinsic motivations have very different effects on consumers’ behaviors. These differences can have important implications for marketing practices such

as rewards programs.

Uncovering consumers needs and motives and linking them to actual behavior can be difficult but can be done.

Needs and motives affect consumer involvement which affects decision- making and choices (look through on your own).

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What is Affect?

Affect: Describes the experience of emotionally laden states.  Marketers find many use of affective states.

 try to link a product or service with a positive mood or emotion  marketing communications may deliberately evoke negative

affect, such as regret if you miss out on something

 nature of these experiences ranges from evaluations, to moods, to full-blown emotions.

Evaluations: Valenced (positive or negative) reactions to events and objects that are not accompanied by high levels of physiological arousal.  For example, when a consumers evaluates a movie as being positive or negative

Moods: Involve temporary positive or negative affective states accompanied by moderate levels of arousal.  Moods tend to diffuse and not necessarily linked to a particular event.  Mood congruency refers to the idea that our judgments tend to be shaped by our moods.

Emotions: such as happiness, anger, and fear tend to be more intense and often relate to a specific triggering event (such as receiving a gift)

Positive Affect:

Lovemark

 Lovemark is a term used to describe a passionate commitment to one brand.

 Explains why many users are willing to pay a premium for a product that on the surface seems to do the same thing as a less expensive alternative.

 The fact that owning a specific brand will make a person feel good can give it a competitive advantage-even if the brand is similar to competitors at a functional level.

 Love relationship between consumer and brand (chapter 1)?

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Positive Affect:

Happiness

Material Accumulation

 Happiness is a mental state of well-being characterized by positive emotions.

 Although many of us believe owning more material goods is the key to happiness, research says otherwise.

 Several studies have reported that a greater emphasis on acquiring things actually links to lower levels of happiness.

 Material accumulation is the instinct to earn more than we can possibly consume, even when this imbalance makes us unhappy.

 We are wired to engage in material accumulation.

 Recently, studies have shown that experiences beat material acquisitions in terms happiness.

 Drivers of happiness also seem to vary with life span.

 Younger consumers are more likely to associate happiness with excitement, whereas older people are more likely to associate happiness with the sate of calm and peacefulness Happiness and Age

Negative Affect:

• Extreme feelings like disgust are often used to get marketing messages across • E.g. Febreeze adDisgust

• Envy is associated with the desire to decrease the gap between self and someone who is superior on some dimension.

• There are two types of envy – benign (when we believe that the other person deserves the status and success) and malicious (when we believe that the other person does not deserve their superior position)

Envy

• Guilt is an individual’s emotional state associated with possible objections to his or her actions, inactions, circumstances or intentions.

• “Guilt appeal” is often used by marketers to encourage prosocial behavior like donating • Can be particularly effective when others are present because this activate a sense of

social responsibility.

Guilt

• Embarrassment is driven by a concern for being negatively evaluated by others. • To be embarrassed, we must be aware of and care about the audience evaluating us. • Embarrassment might be associated with socially sensitive products, e.g., condoms

Embarrassment

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Using Disgust to get the message across:

Using Guilt to get the message across:

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Using Envy to get the message across:

Using Embarrassment to get the message across:

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Look Through on your Own

Consumer Involvement:

Involvement: reflects our level of motivation to process information about a product or service we believe will help us to solve a problem or reach a goal

A consumer’s involvement is based on the perceived relevance of an object for one’s needs, values, and interests

A consumer’s motives (along with numerous other factors) will affect their degree of involvement when making a choice/decision.

There are different ways of measuring it…

To me (object to be judged) is: 1. important _:_:_:_:_:_:_ unimportant

2. boring _:_:_:_:_:_:_ interesting

3. Relevant _:_:_:_:_:_:_ irrelevant

4. Exciting _:_:_:_:_:_:_ unexciting

5. Appealing _:_:_:_:_:_:_ unappealing

6. Fascinating _:_:_:_:_:_:_ mundane

7. Worthless _:_:_:_:_:_:_ valuable

8. Involving _:_:_:_:_:_:_ uninvolving

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Consumer Involvement:

 The way we evaluate and choose a product depends on our degree of involvement with the product, the marketing message, or the purchase situation.

Degree of Involvement and Decision Types:

Consumer buys Campbell’s without considering other brands, its price, etc.

Nominal

Nominal decisions occur when there is very low involvement with the purchase.

A completely nominal decision does not even include consideration of the “do not purchase” alternative.

Decision based only on buying the cheapest (or biggest, smallest, etc.).

Limited

Middle ground between nominal and extended decision making.

Involves recognizing a problem for which there are several possible solutions.

Extended decisions may involve substantial cognitive effort.

Extended

It is a response to the high level of purchase involvement.

During post-purchase evaluation, doubts are likely and a thorough evaluation takes place.

Inertia: where we make decisions out of habit because we lack the motivation to consider alternatives

As our involvement increases, we think more about the product, or we experience a stronger emotional response

We tend to find higher levels of involvement in product categories that demand a big investment of money (e.g., house), influence self-esteem (e.g., clothing) and lower levels of involvement for mundane categories (e.g., household cleaners)

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Types of Consumer Involvement:

• Product Involvement • Message Involvement • Situational Involvement

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Chapter 5: Motivation and Affect (Need)

Learning Objective:

We will focus on understanding what drives customers to behave in the manner they do – i.e.,

buying a particular product,

choosing one brand over the other,

providing customer feedback,

engaging in WOM, etc.

Each action is driven by a motivation, and each motivation is driven by a need.

“Needs” – 9/22 and “Motivation and Affect” – 9/27.

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What is Need?

Need: We experience a need from an internal state of tension caused by a disequilibrium between desired and actual states.

A need reflects a basic goal such as keeping yourself nourished or protected from the elements.

In contrast, a want is a specific pathway to achieving this objective

depends a lot on our unique personalities, cultural upbringing, and our observations about how others around us satisfy the same need.

Need is a precursor to motivation.

Products can satisfy a range of consumer needs.

A model of Need Recognition:

The difference between the “actual” and “desired” states creates needs.

How do we get consumers to notice these discrepancies?

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Need Recognition:

• Elevate the Desired State – increase the consumer’s desires, aspirations, hopes.

• Diminish the Current State – decrease the consumer’s perception/understanding of where they currently are or what they currently have.

ELEVATE DESIRED STATE

DIMINISH CURRENT STATE

NEED = Discrepancy between actual and

ideal state

Highlighting Discrepancies:

Do they elevate the desired state or diminish the actual state?

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Highlighting Discrepancies:

Do they elevate the desired state or diminish the actual state?

Different Consumer Needs:

Utilitarian Needs

Hedonic Needs

 related to practical purposes, functionality, convenience, efficiency  emphasize the objective, tangible attributes of products, such as

 miles per gallon in a car;  the amount of fat, calories, and protein in a cheeseburger;  or the durability of a pair of blue jeans.

 subjective and experiential; here we might look to a product to meet our needs  for excitement,  self-confidence,  or fantasy perhaps to escape the mundane or routine aspects of life.  e.g., luxury brands

Biogenic Needs  Need for certain elements necessary to maintain life. We are born with these

needs  Food  Water  Shelter

Psychogenic Needs

 We acquire psychogenic needs as we become members of a specific culture.  Autonomy, Defendance, Status; Power; Affiliation  reflect the priorities of a culture, and their effect on behavior will vary from

environment to environment.

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Psychogenic Needs and Buying Behavior:

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