HOMEWORK

1.2. DO VIET THANG3. LY UYEN VAN4. HO THI YEN VY5. NGUYEN THI HAI YEN

GLOBAL MARRKETING MANAGEMENT

I. INTRODUCTION (DEFIN I TION) OF SENSORY MARKETING :

Retail is the process of selling consumer goods and/or services to customers through multiple channels of distribution to earn a profit. Demand is created through diverse target markets and promotional tactics, satisfying consumers' wants and needs through a lean supply chain.

(https://en.wikipedia.org/wiki/Retail)

Senses are parts of the human body and animals that effects to feel of environment stimuli outside the body. These agencies include: Olfaction, haptic, auditions, vision and taste. The adjective sensory describes something relating to sensation - something that you feel with your physical senses.

Type of products of retail:

Food products — typically require cold storage facilities. Hard goods or durable goods- automobiles, appliances, electronics, furniture,

goods, lumber, etc., and parts for them. Goods do not quickly wear out and provide utility over time.

Arts — Contemporary art galleries, Bookstores, Handicrafts, Musical instruments, Gift shops, and supplies for them.

Soft goods or consumables-clothing, other fabrics, footwear, cosmetics, medicines and stationery. Goods that are consumed after one use or have a limited period (typically under three years) in which you may use them.

Types by marketing strategy of retail:

Department store Discount store Warehouse store Variety store Demographic

Mom-And-Pop Specialty store Boutique General store

Convenience store

Hypermarkets Supermarket Mall

(https://en.wikipedia.org/wiki/Retail)

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Sensory marketing is an effective tool in gaining sensory consumer insights for a marketing strategy. It measures and explains emotional consumer decision-making by variability of products, concepts, packaging, and marketing mix scenarios to ensure long-lasting success.

(Marketing dissertation 2008)

(Page 6 - http://www.diva-portal.org/smash/get/diva2:238806/FULLTEXT01.pdf)

Sensory marketing is defined as a way of:

Measuring and explaining consumer emotions Spotting and capitalizing on new market opportunities An opportunity to maximize product profitability Ensuring first and repeat purchase (loyalty) Ensuring long-lasting product success.

(Marketing dissertation 2008)

(Page 6 - http://www.diva-portal.org/smash/get/diva2:238806/FULLTEXT01.pdf)

The conceptual framework of sensory marketing:

(https://prezi.com/wzumhcijl_sz/sensory-marketing/)

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Sensory marketing put the experiences lived by the consumers and his feelings in the process. These experiences have sensorial, emotional, cognitive, behavioral and relational dimensions, not only functional. It aims to create the adequacy of the products with their design and their packaging, and then to valorize them in a commercial environment to make them attractive.

There, the consumer is behaving according to his impulsions and emotions, more than his reason. For many consumers, the affectivity, perception and pleasure are more important than the price, since many products are now technically similar: they have to be differentiated in another way.

(Marketing dissertation 2008)

(Page 8,9 - http://www.diva-portal.org/smash/get/diva2:238806/FULLTEXT01.pdf)

Advantages and disadvantages of Sensory marketing:

Advantages Disadvantage Building brand differentiation. Creating new experiences for

consumers. Stimulating the creation of enterprises. Expanding market share and retaining

consumers.

Consumers’ hobbies are heterogeneous (complex).

The complexity of emotions. Enterprises need to change marketing

strategies regularly to meet the needs of consumers costly.

(Translated by group)

II. http://doc.edu.vn/tai-lieu/de-tai-marketing-dua-tren-giac-quan-tu-ly-thuyet-

den-thuc-tien-ap-dung-tai-viet-nam-27807/

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II. CHARACTERISTICS OF 5 SENSES

1. Vision

Definition of vis ion

(Sensory Brand: Studying Relationship between 5 Senses and Brand Value at World’s 100 Top Companies, 2012, 12.09.2015,

https://www.academia.edu/2366799/Sensory_Brand_Studying_Relationship_between_5_Senses_and_Brand_Value_at_World_s_100_Top_Companies )

The effect to buying decision

Sight is the most used sense for marketing because it is the one most responsive to the environment. We can appreciate logos, corporate colors, characters and other graphical tools with which one can identify a specific product. According to fashion retailer Gina Tricot, 'the eyes buy 70 or 80 percent of what people buy.' Sight is how the customer knows the product offering, quality, changes, store layout, materials, lights and colors. Shapes and color are the first aspects of a brand that is noticed by the customer.

Color is a big influence on visual branding because it can affect people emotionally. According to the Seoul International Color Expo, The color of a brand logo improves

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Eye is the most important component of sight. Each eye creates a 2 dimensional image of visible objects, turn it into visual image then brain changes this image and enables us to see 3D image of objects, this sensation is called sight. In fact, we use it all day every day, every second that we're awake.

Visual is sensitive senses, excitable by the environment and it is also an important information channels, giving people a feel of the world around. So that people can admire the colorful beauty of nature. Therefore, we can say that visual sense is the most important in five senses of human.

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brand recognition by 80%. And 84% of people believe that color amounted to the major consideration when they choose a brand. Different colors affect people differently.

(Sensory branding, 2015, 12.09.2015, https://en.wikipedia.org )

For example

McDonald use the red color as dominant color for each store. Because red 'is the highest stimulation hue. It increases pulse and heart rate, raises blood pressure and stimulates appetite.' This can be used by sensory branding in restaurants to stimulate hunger or in bars to because of its exciting properties. Similar, McDonald also stimulates sense of vision of the customers by the curve of its logo. So the brand of MacDonald is recalled in mind of people and become the best world’s fast-food.

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2. Audition

Definition of audition

(Sensory Brand: Studying Relationship between 5 Senses and Brand Value at World’s 100 Top Companies, 2012, 12.09.2015,

https://www.academia.edu/2366799/Sensory_Brand_Studying_Relationship_between_5_Senses_and_Brand_Value_at_World_s_100_Top_Companies

The effect to buying decision

Sound is used in branding to evoke emotions and feelings to influence brand experiences and interpretations. Perhaps the second most used variable by marketing and advertising is the sense of hearing. Sound when matched with a message is a powerful way to make the customer remember it. Background music is an effective way to influence customer behavior at the point of purchase. If used properly, music can create an exciting or relaxing mood for the consumer that encourages them to buy.

https://www.academia.edu/2366799/Sensory_Brand_Studying_Relationship_between_5_Senses_and_Brand_Value_at_World_s_100_Top_Companies )

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Ears are body organs for entering sounds and creating of sense of hearing. Human’s ear is able to diagnose minimum 16 to 28000 cycles per seconds. Most companies are completely aware that sound is regarded as strategy for improving identity and image of a brand. Because Sound influences on our judgments and comments in relation to product and service that we intend to purchase. In fact sound influences on behavior and habit of purchase. Beside, Sound is also able to recall our memories and emotions.

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(Sensory branding, 2015, 12.09.2015, https://en.wikipedia.org )

For example

A specific sound of mobile phone announces that there is Samsung or Apple mobile phone around us or while loading Windows with specific sound, it indicates that this operating system is purchased from Microsoft or Opel Co. Hence, Sound plays key role at branding process and sound is very powerful stimulant.

3. Haptic

Definition of haptic

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Touch strengthens brand identity and image by appealing to this sense. Touch considers physical and psychological interaction between the customer and the product. Touch is a way to control the 'unconscious of the consumers, their perceptions, feelings and tastes. Touch can be manipulated through materials, weight, softness, and comfort of the product.

Like the other senses, Tactile is the subtle sense. The frequency using Tactile is bigger than using Olfactory, Auditory and Gustatory. So, the company should improving physical contact with customers and requiring to physically access its products to all customers.

(Sensory Brand: Studying Relationship between 5 Senses and Brand Value at World’s 100 Top Companies, 2012, 12.09.2015,

https://www.academia.edu/2366799/Sensory_Brand_Studying_Relationship_between_5_Senses_and_Brand_Value_at_World_s_100_Top_Companies )

(Sensory branding, 2015, 12.09.2015, https://en.wikipedia.org )

The effect to buying decision

Brands are distinguished through sense of touching. In fact, customers should be able to touch, press, turn on and reversing different products. Encouraging for touch product

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attracts attention of customer to purchase products that already were neglected. Researchers found out that buyers who touch a product are more probable to purchase it and ability of touching a product increases our trust for quality of that product. Therefore, if packaging prevents from having access to product (like sealed packaging of a pair of socks) retailers should find a solution for increasing access of consumers to product.

Using sense of touching for obtaining information of a product creates a positive sense and appropriate attitude toward that product. Materials, temperature, weight and form assists to experience of sense of touch on positive basis and improves customer loyalty.

(Sensory Brand: Studying Relationship between 5 Senses and Brand Value at World’s 100 Top Companies, 2012, 12.09.2015,

https://www.academia.edu/2366799/Sensory_Brand_Studying_Relationship_between_5_Senses_and_Brand_Value_at_World_s_100_Top_Companies )

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For example

The original Coca-Cola bottle is a lean sample of shape marketing. In fact Coca-Cola bottle due to its delicate curves creates pleasant feeling for holding it in hand of consumers. Special design of Coca-Cola bottle is so that even it is completely recognized when touching it at complete darkness. Nearly 59% of consumers prefer to drink Coca-Cola within its glass bottle rather than plastic bottle i.e. sense of touching is very important.

(Sensory Brand: Studying Relationship between 5 Senses and Brand Value at World’s 100 Top Companies, 2012, 12.09.2015,

https://www.academia.edu/2366799/Sensory_Brand_Studying_Relationship_between_5_Senses_and_Brand_Value_at_World_s_100_Top_Companies )

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4. Olfaction

Definition of olfaction

The sense of smell has been described by many researchers as one of the “chemical” senses, as it implies the response to the gaseous molecules that, when perceived, are assimilated into the body. Smell is maybe the most difficult sense to work with in the sales sector. But it is also the sense, which appeals the most to our emotions and memories. Human being have 10 million olfactive receptors, which enables us to recognize more than 4000 different smells.

(Sensory Impact on Customer Behavior, Magdalena Grebosz, Barbara Wronska, pdf, 15/9/2015, http://cejsh.icm.edu.pl/cejsh/element/bwmeta1.element.desklight-a09b83b7-f4ef-4928-89d8-a64389eea41a/c/7.Grebosz_Wronska_Sensory_Impact_on_Customer_Behaviour.pdf.)

The effect to buying decision

The sense of smell is the only one of our five senses that is directly connected to the part of the brain that processes emotion, memory and associated learning. Scientific studies have shown that 75 % of our emotions are generated by the smell. In fact, you are 100 times more likely to remember something that you smell than something that you see, hear or touch.

(Jennifer Dublino, Dec 13th 2012 , 12/9/2015 http://www.neurosciencemarketing.com/blog/articles/scent-logo.htm )

Our smell memorization is therefore stronger than the visual one. Furthermore, scent is the closest sense linked to memory. There is much more evidence that smell is able to affect customers, therefore marketing opportunities related with scent should be carefully examined by retailers.

(2011, 12/9/2015 http://sensorymarketing.tumblr.com/ )

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Olfactory marketing, also known as aroma or smell marketing, is using odors for marketing and commercial purposes.

(ABC netmarketing, 9/5/2015, 12/9/2015,

http://www.digitalmarketing-glossary.com/What-is-Scent-marketing-definition )

Olfactory Marketing uses the idea that smells can be linked to business products and produce a favorable impression in customers. Coffee shops, for example, can use scent marketing to draw customers by encourage the smells of the produced coffee to linger in the storefront.

(Tyler Lacoma, Demand Media ,12/9/2015 http://smallbusiness.chron.com/olfactory-techniques-used-businesses-20789.html )

Example:

A highly successful use of scent branding is Abercrombie & Fitch. Their signature fragrance, Fierce, is dispersed in high concentrations in all of their stores. Fierce is strong, edgy and appeals to young, upscale consumers. Nowadays, Fierce (which is also sold as a personal fragrance) is the number one selling fragrance for men in the US and Europe and A&F’s teenage and young adult target market can easily identify authentic A&F jeans solely by their smell.

(Jennifer Dublino, Dec 13th 2012 , 12/9/2015 http://www.neurosciencemarketing.com/blog/articles/scent-logo.htm)

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5. Taste

Definition of taste

The form of the basic sense of taste that we think of the tongue. The tongue’s numerous taste receptors and the variety of taste perception these afford. The taste buds themselves are onion- shaped structures on the tongue. And we feel about the taste thank to the tongue

(Arachne Krishna , Sensory Marketing, 12/9/2015, https://books.google.com.vn/books?id=qfKOAgAAQBAJ&pg=PA282&lpg=PA282&dq=The+taste+buds+themselves+are+onion-+shaped+structures+on+the+tongue&source=bl&ots=6ZHWJityb4&sig=AAKlK5w0E0V7cnXoGsk1zhQ3EEA&hl=vi&sa=X&redir_esc=y#v=onepage&q=The%20taste%20buds%20themselves%20are%20onion-%20shaped%20structures%20on%20the%20tongue&f=false )

The effect to buying decision

Taste and other senses are combine together to create a holistic brand experience.

Taste is a rather poorly developed sense. We can merely distinguish five different nuances namely, bitter, sweet, salty, sour, and umami. However, we compensate by using our other four senses to judge a product´s quality. Therefore name, presentation, environment, scent, sound and texture must all be considered when branding with taste. Taste is linked to emotional states, and so it can alter mood and brand perception

(Aakansha Mittal ,12/9/2015,http://www.academia.edu/7319339/Sensory_marketing )

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Example:

Coca- Cola use the olfactive and gustative marketing strategy in their advertisement. However, the taste and smell of Coke brand is also hard to describe in an advertisement, but the majority of consumers would have already experienced this. Therefore, the distinct smell and taste of Coca- Cola would enter the consumer’s minds when watching this ad as they relive the experience of using theirs brand. Thus, Coke do not necessarily need to portray the taste of coke as this sense is already strongly represented in the consumer’s heads. Therefore, Coca-Cola is successful in creating this five dimensional image of their brand in the consumer’s heads through the look, sound, taste, smell, and feel of the product, making it an extremely memorable brand.

( Psuf01, 18/3/2014, 12/9/2015 , https://psuf01.wordpress.com/2014/03/18/sensory-marketing-and-coca-cola/ )

III. Sensory marketing is important in the retail industry

- The process of modernization and globalization with the development of digital technology created environment has too many competitors in each product sector. Therefore, no product is unique as well.

- Needs and wants of customers diversified increasingly, consumers are free to choose and decide that items they like. Their needs and wants are not depend on suppliers.

- Customers tend to prefer these products relevant to their portion - a personal or emotional nature. They tend to be branded with style, their personality.

- They can relate and bind up their life situations with the brand. The consumer may decide to purchase or not that depends very much on the perceived through the senses and assess the consumer theirself.

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Enterprises must try to satisfy the needs and wants of individuals private consumers. So, sensory marketing is the best marketing strategy and most effective in retail industry. It takes the senses of human on center and it makes consumers satisfy.

IV.REFERENCES:

Nick Zawisza, 2013, Sensory marketing, Prezi, 12.09.2015, https://prezi.com/wzumhcijl_sz/sensory-marketing/

Sensory marketing and branding the power of the senses, 2012, Magazine, 12.09.2015, http://morethanbranding.com

The power of the senses sensory application in retail, 2013, 12.09.2015 http://www.martinez-ribes.com

Högskolani Halmstad , 2008, The concept of Sensory Marketing, 12.09.2015, http://www.diva-portal.org/smash/get/diva2:238806/FULLTEXT01.pdf.

Parisa Nezami, 2012, Studying Relationship between 5 Senses and Brand Value at World’s 100 Top Companies, 12.09.2015, https://www.academia.edu/2366799/Sensory_Brand_Studying_Relationship_between_5_Senses_and_Brand_Value_at_World_s_100_Top_Companies/

Sensory branding, 2015, 12.09.2015, https://en.wikipedia.org

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