Influences on Marketing

Overview

Understanding consumer choices is crucial for developing effective marketing strategies. The primary categories influencing consumer decisions include:

• Psychological Factors
• Sociocultural Factors
• Economic Factors
• Government Influences

Psychological Factors

• Perception: How consumers understand marketing messages can strengthen or weaken a brand. Kathmandu emphasises consistency and longevity to shape consumer perceptions.

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  Perception: The consumers' understanding of marketing messages, influenced by personal views and experiences.

• Motivation: Refers to the inner drive that leads consumers to make purchases. Kathmandu's 'Go Explore' campaign promotes adventure, appealing to consumers' yearning for exciting experiences. This can enhance brand image and increase sales.

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  Motivation: Internal drive that encourages consumer purchases, driven by various desires and needs.

• Beliefs and Attitudes: These have a substantial impact on decisions. Kathmandu positions itself as a leader in sustainability, aligning with consumers' environmental ethics.

Sociocultural Factors

• Cultural Influences: Mould behaviours based on societal standards. Kathmandu incorporates cultural elements in its marketing, such as Maori imagery, to connect with New Zealand consumers.

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  Cultural Influences: Norms influencing consumer behaviour, affecting preferences and purchase decisions.

• Social Class and Family: Preferences differ across socio-economic groups. Kathmandu appeals to various social classes with a diverse product range and highlights family adventures, thereby influencing family-oriented decision-making.

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  Social Class and Family: These play a role in consumer choices based on socio-economic status and family dynamics.

Economic Factors

• Income Levels and Consumer Confidence have an impact on purchasing choices. Kathmandu promotes product durability during economic downturns, highlighting value for money.

Government Factors

• Government Regulations: Legal standards affect marketing activities. Kathmandu adheres to environmental regulations, such as employing recyclable materials.

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  Non-compliance with these regulations can lead to severe penalties and harm to brand reputation.

Consumer Laws

Overview

• Purpose: Consumer protection laws ensure fair and ethical business practices. They guide companies like Kathmandu in ethical marketing strategies.
• Historical Context: These laws are continually updated to address emerging issues, such as deception in advertising and equitable pricing.

Deceptive and Misleading Advertising

• Definition: Deceptive advertising misguides through incorrect or unclear information. This is overseen by the Competition and Consumer Act 2010.

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  Puffery does not qualify as deception since it is perceived as exaggerated by reasonable consumers.

Price Discrimination

• Definition: Price discrimination occurs when different prices are charged without justification. It is generally illegal unless cost differences can justify it.

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  Acceptable when justified by cost disparities.

Implied Conditions

• Definition: These ensure products meet defined quality standards. Kathmandu's systematic quality checks reflect adherence to this principle.

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  Assured quality enhances consumer trust.

Warranties

• Definition: These are promises about product performance that influence buying decisions. Kathmandu efficiently manages warranty claims, which bolsters consumer confidence.

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  Reliable support through warranties builds consumer trust.

Ethical Considerations in Marketing

Overview

• Importance of Ethics: Builds trust and fosters long-term relationships.
• Kathmandu's Approach: Centres on truthfulness and integrity, aligning with sustainability goals.

Truth, Accuracy, and Good Taste in Advertising

• Regulations: Organisations like the Advertising Standards Authority (ASA) ensure truthful advertising.

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  Key Regulation: Advertising Standards Authority (ASA)

Products That May Damage Health

• Ethical Responsibilities: Evaluate product safety and emphasise sustainable options in marketing.

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  Prioritise health and sustainability in promotional activities.

Engaging in Fair Competition

• Marketplace Integrity: Supports consumer choice and fosters healthy market behaviour. Kathmandu adheres to fair trade principles and maintains competitive pricing.

  Fair competition: Prevents monopolistic practices.

Sugging (Selling Under the Guise of a Survey)

• Kathmandu's Practices: Focus on transparency and honesty.

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  Transparency is a fundamental principle at Kathmandu.