Table of Contents
1. Research Project Title. 3
2. Terms of Reference. 3
Significance. 3
Research Questions. 4
Main Research Question. 4
Sub-Questions. 4
3. Background Context 5
3.1 General Business Context of Problem.. 5
3.2 Identification of Problem from the Perspective of HTC.. 5
4. Literature Review.. 6
4.1 Introduction. 6
4.2 Different Strategies of Pull Marketing. 7
4.3 Relevance of Different Pull Marketing Strategies for the organizations. 9
4.4 Impact of Pull Marketing Strategies on Buying Behaviour of Consumers. 10
4.5 Significance of the Study being proposed. 12
4.6 Summary. 13
5. Methodology. 14
2. Methodology. 14
2.1 Methods. 14
3.2 Design of Methodology. 15
Operationalization of Construct 15
3.3 Primary Data. 16
Collection of Data. 16
3.4 Sample Population. 16
5. Findings, Results and Analysis. 17
Survey Findings. 17
Finding Analysis. 20
7. Conclusion. 27
8. Evaluation. 27
References. 28
Appendix. 31
Interview Questions. 31
Open ended Questions. 31
1. Research Project Title
The mobile phones emergence has made the industry a leading personal communication sector that offers personal devices of communication to the customers leading towards attracting customers with potential lucrative platform of media being given to the marketers. There are various mobile phones gaining use worldwide and each mobile phone has a special offering for the customers by which the devices are able to pull the customers towards themselves rather than the competitors. The IT application mobilization since the previous several years has paved way for new chances that can be grabbed by organizations doing business for developing strategies of marketing in the mobile industry. The most famous manner of tagging mobiles is the use of QR codes enabling pull marketing strategy in the mobile industry in which consumers have the capability of requesting data on products and services that is of higher interest to them by code scanning. HTC has also been an organization in the mobile industry favouring pull marketing strategy and adopting the same in order to develop its uniqueness in the competitive realm.
However, the nature of this thesis is to explore the influence of pull marketing strategies on customers buying behaviour. In order to research this impact, a case study of HTC has been selected based on which analysis has been done on the research question.
Investigating the Impacts of Pull strategies of Marketing on the buying behaviour of the customers with the help of a case study.
2. Terms of Reference
Significance
The basis of mobile marketing is on a strategy of marketing that can help the organizations to reach their customers and promote their products to them by interacting with the customers through the mobile phones. By development of a complete strategy of marketing, the organizations are able to develop their detailed designs with regard to appropriate use of marketing mix made up from several groups inclusive of product, price, place and promotion. However, it becomes very difficult for mobile phone developing companies to accomplish in the highly competitive realm and therefore the importance of understanding pull marketing strategies impact is critically observed.
Aim
The main aim of this research is focused on carrying out an investigation regarding the impact imposed on the buying behaviour of customers by the use of pull marketing strategies. For the purpose of this research, a case study has been chosen to create better understanding about the buying behaviour of customers. The case study chosen for the purpose of this research is that of HTC that had applied the pull strategies that affected the buying behaviour of customers targeting the market of United Kingdom.
Research Questions
Main Research Question
What is the effect of pull marketing strategies on customers buying behaviour?
Sub-Questions
- Are pull marketing strategies really important for organizations such as HTC in order to succeed?
- Does HTC currently applies pull marketing strategies to attain the success presently?
- What is the customer buying behaviour towards HTC smart phone organization, Taiwan?
- What impact has been faced by HTC on application of pull marketing strategies with regard to customer buying behaviour?
Objectives
For identifying the relevance of pull marketing strategies for the organizations that belong to the industry of mobile phones
For determining a number of pull marketing strategies utilized by the organization of HTC for the promotion of the products
For investigating the impact on the buying behaviour of customers of HTC by the implementation of pull marketing strategies
For offering recommendations to the organization of HTC for the enhancement of its current strategies of marketing
3. Background Context
3.1 General Business Context of Problem
The activities of marketing are important for each and every organization that include the ones within the business of manufacturing handsets, so that the offerings of products and services could be communicated in an effective manner for the customers. The strategy of pull marketing are highly effective for the stimulation of demand from the end of customers for the enhancement in the level of sales related to the products of the company. The demand that can be created by the strategy of pull marketing has the tendency of bypassing intermediaries, as there is a need for pulling the products for the customers by the channel of distribution to the highly intensified activities related to promotion and marketing being carried out by the organization a number of different sources of media. This particular research pertains on the strategies of pull marketing that has been having profoundness in the implication related to players in a number of different types of industries. These industries include the industry for the manufacturing of mobile handset.
3.2 Identification of Problem from the Perspective of HTC
Irrespective of the fact that majority of the mobile handsets are being manufactured with good quality, a number of products end up failing because of certain factors that has a major negative impact on the level of sales of the products related to HTC. Even though the review of the product being rated and stated on the websites resulted in woe of the level of supply and having a negative impact on the level of sales due to the creation of confusion in the management being performed by the organization and the concerned management authorities. This problem has been taken up for the purpose of this research as it shall help in highlighting the relevance of strategies related to marketing, particularly the strategies of pull marketing for the organization for survival and more remaining competitive within the market.
By conducting this research, it will help in the identification of the best strategies of marketing in favour of these individuals (Pervez 2005). The knowledge being gathered about the market being targeted is considered to be pivotal for the creation of important information with respect to these individuals being targeted. The next step should be made regarding the availability of information and this will help in building a better informed detail regarding the market being targeted.
4. Literature Review
4.1 Introduction
The part of the research shall be presenting a discussion related to the opinions of a number of researchers that have showed concern towards the pull marketing strategies, their impact and important on the buying behaviour of consumer. The pull marketing strategy is referred to as the strategy which the organization strives for expressing their message in front of the clients or customers with highest potential. These customers, on the basis of the way in which they interpret this message, seek the services or products in an active manner that are being provided by the organization (Heidegger 2002). With the situation created by this strategy, the customer plays a major role for initiating the requests regarding the services or the products. Some instances for this are optimization of search engine or the trade show being presented in a traditional manner.
Considering the figure stated below, a better understanding can be availed as to how the breaking down of market can be done and who will be targeted by the pull strategy. The largest circle shall be representing the entire market, and in this circle is a smaller circle that represent the market being targeted. There might be certain individuals that seek the services or products being provided in an active manner (Heidegger 2002). The smallest circle in the diagram depicts these actively participating individuals and at this point it is stated that the pull strategy had been the most effective. However, it has to be noted that there is one category of individuals that get attracted by the activities of pull marketing but do not lie within the market being targeted. Hence, there will be a need for minimizing these by creating the main focus on the marketing.
(Fig: Breaking down market by Pull Strategy)
(Source: Pervez 2005)
In general sense, the pull marketing strategy helps in the production of higher rates of conversion and shorter cycles of sales, as the customers being dealt with are the ones who already are looking for a service or product in an active manner (Strouse 2004). This strategy of pull market can also be used in an effective manner in order to build awareness. This can be done by utilizing the tools of social media, like forums and blogs.
Irrespective of the approach being chosen, it is relevant for doing the research is to understand the market being targeted. While having a conversation with the clients regarding their prospective, it is important to have details as to who they are, from where they are accessing this information and what is their behaviour considering the first step? By conducting this research, it will help in the identification of the best strategies of marketing in favour of these individuals (Pervez 2005).
The knowledge being gathered about the market being targeted is considered to be pivotal for the creation of important information with respect to these individuals being targeted. The next step should be made regarding the availability of information and this will help in building a better informed detail regarding the market being targeted.
The strategy of pull marketing are highly effective for the stimulation of demand from the end of customers for the enhancement in the level of sales related to the products of the company. The demand that can be created by the strategy of pull marketing has the tendency of bypassing intermediaries, as there is a need for pulling the products for the customers by the channel of distribution to the highly intensified activities related to promotion and marketing being carried out by the organization a number of different sources of media.
4.2 Different Strategies of Pull Marketing
The strategies of pull marketing are concerned to stimulate the demand of consumers in order to obtain the distribution of products. There is an involvement of metaphorical tug in the strategies of pull marketing, from the customers being imposed on the retailers. This specific pull comes out of the successful promotion of consumers and the efforts of advertising that helps in the encouragement of consumers for displaying a preference regarding the products of the organization that has employed the strategy of pull marketing. This is over the services or products being provided by the competitors of the company (Brosekhan and Velayutham 2014). There is a huge range of investment being done by the organizations for the employment of pull strategy like spending on advertisements, employing a number of different types of media like radio, television, internet and several other channels for the successful promotion of the product. This helps in the creation of demand alongside with the chain of supply from the customers to the party that is the manufacturer.
As stated by Heidegger (2002), phenomenology is referred to as the involvement of a study that focuses upon the descriptions related to experience of the individuals and the way in which the experience is obtained. The research that has been proposed shall be focused on the utilization of the philosophy related to phenomenology since the buying behaviour of customer is highly subjective in nature. In addition to this, no standard theories have been used that help in creating a link between the strategies of pull marketing with the buying behaviour of the consumers. The consumers play a significant role in effecting the level of demand and supply. Hence, it is important to understand how the pull strategy of marketing affects the factors of supply and the factors of demand.
The Internet as a Tool of Marketing
The internet can be considered as an excellent source for enabling pull marketing as it helps in presenting the message in front of the base of customers with highest potentiality from across the globe. One of the most essential advantages of utilizing the source of internet as a tool of marketing is ability for measuring and tracking the response (Strouse 2004). This will assist in the identification of what is working and what is not working. The organization also obtains the ability for looking for what are the response of the customers are regarding the product that helps in allowing the business for responding to the issues or the opportunities in a quick manner. There is also a need for always keeping in mind that there is not only the need for drawing the customers to the platform of website but also converting them into fixed clients from being just the potential customers. When taking the decision for availing the benefits of the growth in the trend regarding the platform of social media, one should be prepared for putting this in the duration of time.
Platform of Social Media
Social media is a platform utilized for enabling social interaction utilizing the technology on the basis of web that include web pages such as LinkedIn, Twitter and Facebook. The major challenge that is faced by organizations at the early stage and the companies opting new technology face in the growth of the business is to help people in knowing the details regarding the products or services being provided (Kobie 2014). After this, the customers are encouraged to enact as the ambassadors of the products in an active manner. This will help in spreading awareness regarding the uses of products to other potential customers of all generations as well.
The platform of social media is said to be playing a significant role in the reduction of this challenge as it allows the customers for easily communicate regarding the products amongst each other. This assists the organization for moving forwards alongside with the products at a rate that is faster. In general sense, the pull marketing strategy helps in the production of higher rates of conversion and shorter cycles of sales, as the customers being dealt with are the ones who already are looking for a service or product in an active manner (Brosekhan and Velayutham 2014). This can be done by utilizing the tools of social media, like forums and blogs. Considering the advantages that can be availed by the platform of social media will also assist in building a path for the customers that are potential enough and interested in the organization and what they are willing to say about this.
The pull marketing strategy is referred to as the strategy which the organization strives for expressing their message in front of the clients or customers with highest potential. These customers, on the basis of the way in which they interpret this message, seek the services or products in an active manner that are being provided by the organization. A consistent message being provided, the information and tools of information, this helps the organization for gaining credibility. This, in result, will guide to create the trust within the organization for the clients with highest degree of potentiality (Strouse 2004).
These individuals are the ones who have been expressing certain degree related to the interest to come up to the platform of website, the next step of the organization is for demonstrating the sufficient value for changing them into permanent base of customers from just being the potential customers.
4.3 Relevance of Different Pull Marketing Strategies for the organizations
The platform of internet, specifically the platform of social media, can also be considered as a major tool for conducting research on the market. By following the discussions regarding the customers with highest potential, one can start understanding the different types of issues and the customers have, and identification of the product can help in meeting these specific needs. This will assist in the identification of what is working and what is not working (Kobie 2014).
There is also a need for always keeping in mind that there is not only the need for drawing the customers to the platform of website but also converting them into fixed clients from being just the potential customers.
In addition to this, the platform of internet will help in providing the information that is most valuable regarding the weaknesses and strengths, and to have an improved understanding regarding the customer. The funnel of sales is made up of a number of different stages. The funnel is extremely large in size at the top most level, where a number of potential customers are able to go through the advertisement (Brosekhan and Velayutham 2014). As the movement goes downwards, the funnel becomes narrow to only some individuals who have been clicking the advertisement that take them to a page of landing that assists in the provision of information regarding the button of New Buy and the product.
The pulling strategy of marketing makes an attempt for the generation of consumer demand with respect to the service, product or line of product, primarily by the appeals of sales promotion and advertising. Majority of the advertisements aim on the final customers, who then approach the retailers for obtaining the service or product. The characteristics of the customers being targeted by the business that include responsiveness, sensitivity, frequency of making purchases, size and number, preferences and beliefs, and their attitudes towards a number of different instruments of marketing and the previous records regarding their behaviour
At the end point, the funnel reduces to the smallest point that is considered as the representative of consumers who have been taking the decision of clicking the button of buy now that moves on continuously with the passage of a number of stages. This includes examples such as how many individuals are able to reach the landing page, in comparison with how many individuals continuously have been clicking the button of buy now. The comparison of all of the stages can be done for seeing the place where individuals are dropping of, and where there is a need and scope of improvements (Pervez 2005).
4.4 Impact of Pull Marketing Strategies on Buying Behaviour of Consumers
As mentioned by Brosekhan and Velayutham (2008), the strategies of pull marketing are said to be having a significant effect on the buying behaviour of consumer. It has also been mentioned by the authors that improved awareness of brand can be developed by the strategies of pull marketing that results in the creation of positive effect on the intention of the customers for making the purchases. As stated by Si and Kapoor (2014), the strategies of pull marketing enables the organization for the creation of product differentiation and brand awareness as in opposition with the price in competition individually.
The organizations have a direct interaction with the customers while utilizing this particular strategy and this helps in gaining better level of awareness regarding the lifestyles, and thereby, have a positive effect on the intention of purchasing the services and products of these organizations (Corniani 2008).
The pulling strategy of marketing makes an attempt for the generation of consumer demand with respect to the service, product or line of product, primarily by the appeals of sales promotion and advertising (Heidegger 2002). Majority of the advertisements aim on the final customers, who then approach the retailers for obtaining the service or product. In return, the retailer makes request regarding the service or product from the party that is the supplier. The marketer do this with the hope that strong demand of customers will contribute in pulling the service or product by the channel of marketing as it forces the intermediaries of marketing for carrying it.
The products that are developed for the consumer are highly dependent on the pull strategy of marketing; while majority of the products for the industries are sold by the strategy of pushing. By implementing the strategy of pull, the organizations become capable enough of motivating the customers for the participation in the sales in accordance with their own preferences and their will as well (Kobie 2014). Since recent years, because of the increase in saturation and fragmenting the markets and significant competition related to communications, the businesses are confronted with the decrease in the level of effectiveness related to the classic communications of marketing. Indeed, as the classis communications of marketing are individually on the bases of a push strategy where the messages of brand are forcefully imposed on the customers by a number of different sources of media, the response of consumers can be seen to increase the overflow of information with the low involvement of media and with an active engagement for the avoidance of the strategies.
Considering the choice related to this philosophy, there will be an involvement of the research that chooses appropriate participants for the research, from whom should the collection be done regarding particular data that is subjective for answering the question of the research.
The consumers play a significant role in effecting the level of demand and supply. Hence, it is important to understand how the pull strategy of marketing affects the factors of supply and the factors of demand. Considering the factors of supply, the factors that affect the behaviour of consumer and the business are as follows (Lamb et al. 2009):
The characteristics of structure related to the industry in which there is competition between the businesses
The main features of the organization that include elements such as distinctive resources and skills, and
The characteristics related to the offering of product that include products that are intangibles- dominant vs. tangibles dominant
All these factors influence the choices being made by the customers as per their behaviours for the achievement of certain objectives of the organization. Now, considering the factors of demand that influence the strategy of marketing that is pull strategy, being used and the behaviour of the customers, are as follows (Lamb et al. 2011):
The characteristics of the customers being targeted by the business that include responsiveness, sensitivity, frequency of making purchases, size and number, preferences and beliefs, and their attitudes towards a number of different instruments of marketing and the previous records regarding their behaviour
The importance for the criteria of non- pricing can be enhance by the business with the help of this pull strategy in comparison with the process for taking the decision regarding the choice of brands from the customers (Shimp, T. 2010). This can be done by the segmentation of the market into the subgroups that are homogenous, development of differentiated offerings of the product responsive to the requirement of the individual segments of market, and differently positioning the offering in comparison with the product offerings being made by the customers.
4.5 Significance of the Study being proposed
The main aim for the study being proposed is focused on addressing the gap that can be found to prevail in the current literature. This literature is related to the utilization of pull strategies for marketing by the organizations for influencing the buying behaviour of the consumers. The research being proposed can be considered as being academic in nature as the interest is academics along with serving as a valuable source to offer the recommendations that are most suitable for the organization of HTC in the market of United Kingdom (Si and Kapoor 2014). There is huge importance given to the population that has to be targeted. In context with this it can be stated that population is referred to as the total number of participants in the research as per their common interest. As in the case being considered, it can be states that the population is said to be including the customers and the managers for the organization of HTC.
Sampling is referred to as the choice being made for a subset from the population for studying the features and characteristics. This will result in making inferences regarding the population. The sampling that is convenient, is said to be involving the choice being made from a specific subset or section of the population on the basis of their characteristics and makin the inferences regarding the population (Eunice 2001). The population of the sample shall be including 50 number of customers and 5 number of managers. These will be used on the basis of sampling of convenience being carried out from the branch organization of company, the accessibility of which can be availed in an easy manner.
4.6 Summary
The pull marketing strategy is referred to as the strategy which the organization strives for expressing their message in front of the clients or customers with highest potential. In general sense, the pull marketing strategy helps in the production of higher rates of conversion and shorter cycles of sales, as the customers being dealt with are the ones who already are looking for a service or product in an active manner (Strouse 2004).
The consumers play a significant role in effecting the level of demand and supply. Hence, it is important to understand how the pull strategy of marketing affects the factors of supply and the factors of demand.
The platform of internet, specifically the platform of social media, can also be considered as a major tool for conducting research on the market. By following the discussions regarding the customers with highest potential, one can start understanding the different types of issues and the customers have, and identification of the product can help in meeting these specific needs (Wiid and Diggines 2010). The pulling strategy of marketing makes an attempt for the generation of consumer demand with respect to the service, product or line of product, primarily by the appeals of sales promotion and advertising. Majority of the advertisements aim on the final customers, who then approach the retailers for obtaining the service or product.
5. Methodology
HTC Corporation’s historical data will be used for analysing the research question along with its financial static ratios. Previous researches based on case study was also applicable in the sociology field and in accordance to researchers such as Stake and Yin, 2010, research methodology of such nature can have its use in any research scientific field by carefully designing it or by experimenting or through research method known as quasi experimental. HTC Corporation of Taiwan has been chosen as research subject only because HTC in Taiwan was the first manufacturer of mobile which had successfully made its way into the international market and came to be known as a branded organization. Worldwide, the company is third leading manufacturer of smartphones. Additionally, the company has also ranked the highest on the list of stock exchange, Taiwan, consistently for 3 years and became to be known as Taiwan’s top listed profit making organization. The research analysis tools applied in this paper have their basis on those tools that are considered extremely important as evident from Strategic and Competitive Analysis, a book developed by Fliesher et al, 2010.
From the literature review it was evident that the competitive advantages are established by firms from the use of their independent capabilities with regard to resources and capabilities that help the companies to develop a dynamic capabilities dynamic business model and firms collaborative network. This acts as a pull strategy that helps sustain competition for a specific organization and regulate its performance financially.
With the use of empirical analysis of HTC organization the analytical discussion will be developed with regard to the company’s historical data
2. Methodology
2.1 Methods
Utilization of secondary sources cannot be considered as being appropriate to carry out this particular piece of research. As the research shall be entailing a study showing concern regarding the buying behaviour of consumers, primary sources of data have been identified as being most appropriate for conducting this research.
This section will be presenting the overview related to the methodology for being followed in order to carry out the research that has been proposed.
As stated by Heidegger (2002), phenomenology is referred to as the involvement of a study that focuses upon the descriptions related to experience of the individuals and the way in which the experience is obtained. The research that has been proposed shall be focused on the utilization of the philosophy related to phenomenology since the buying behaviour of customer is highly subjective in nature. In addition to this, no standard theories have been used that help in creating a link between the strategies of pull marketing with the buying behaviour of the consumers (Kobie 2014). Considering the choice related to this philosophy, there will be an involvement of the research that chooses appropriate participants for the research, from whom should the collection be done regarding particular data that is subjective for answering the question of the research.
3.2 Design of Methodology
The research that has been proposed would be utilizing both the methods, qualitative as well as quantitative. This research will be conducted through primary methods and hence, the data that will be collected is the primary data. There will be an employment of data collection instruments, surveys and survey questionnaires in order to obtain data from the consumers as well as the managers in the organization of HTC.
Operationalization of Construct
Primary research has not yet been conducted on HTC Taiwan even though the company has been profitable internationally and a competitive threat to most smart phone organizations. This is the reason why this research is appropriate and is comprehensively complex in nature because of which not only qualitative but also quantitative research has been applied. Surveys and questionnaires in the form of surveys will be essential to evaluate effectiveness and also leads towards appropriately measuring the participant’s response. Survey used will be inclusive of close ended along with open ended questions for receiving extra and additional information. Questions that are close ended are easy to be answered as the participants are given a change of choosing from several substitutes. Such questions also are helpful in easy analysis but questions of open ended framework have broad data on participant’s beliefs. In the future, the survey questionnaire can be repeated and in the future as will it will continue towards contributing in future researches. It was taken care by the researchers of this thesis that the disadvantage from using questionnaires and surveys is kept at a distance by avoiding biasness in response rate. The goal of this rate of response has been set to 75 percent. A good design utilized in a research is measured by the reduced biasness risk and assumptions made. Information of the respondents will be asked with regard to their age, income, status in the society and the influence on what customers choose from when buying smartphones along with their thought about effectiveness of pull marketing and HTC.
3.3 Primary Data
Collection of Data
There had been utilization of surveys for the collection of information a number of different sources and subjects related to the research within a short duration of time. There had been utilization of surveys for the collection of more information in detail from the point of view of the respondents. The current research being conducted shall be collecting data from the customers of HTC through surveys and managers in the organization of HTC by the sources of surveys. Considering the choice related to this philosophy, there will be an involvement of the research that chooses appropriate participants for the research, from whom should the collection be done regarding particular data that is subjective for answering the question of the research (Engel and Kollat 2007).
3.4 Sample Population
There is huge importance given to the population that has to be targeted. In context with this it can be stated that population is referred to as the total number of participants in the research as per their common interest. As in the case being considered, it can be stated that the population is said to be including the customers and the managers for the organization of HTC. Sampling is referred to as the choice being made for a subset from the population for studying the features and characteristics. This will result in making inferences regarding the population. The sampling that is convenient, is said to be involving the choice being made from a specific subset or section of the population on the basis of their characteristics and making the inferences regarding the population (Kotler 2007). The population of the sample shall be including 50 number of customers and 5 number of managers. These will be used on the basis of sampling of convenience being carried out from the branch organization of company, the accessibility of which can be availed in an easy manner.
The research shall be ensuring that the confidentiality is maintained between the participants of the research and this should be done at all duration of time. The main aim of the research is mainly for the purpose of the academic students and this will lead towards causing a lot of damage to the goodwill and image of the organization of HTC.
5. Findings, Results and Analysis
Survey Findings
The people chosen for interviewing had all been working with the organization of HTC for more than 2 years and are all experienced in their field. The interview finding revealed that HTC focuses a lot of attention towards advertising. The company even though applies to advertise itself using all possible communication channels for promotion of its products and services, still the company prefers the use of TV as an advertising tool that can be highly effective for the company. HTC also considers magazines and tram stops for attracting current and new customers for the company. This view has been affirmed in the article presented by Rix 2007 wherein the most prominent impact on the customer has been proved to be from tools such as TV, Radio and newspapers. Advertising effectiveness just as in all other companies has been measured by direct observation of daily sales which implies that campaigning advertisements can be used as general sales tools as well. Furthermore, it was clearly evident from the interview question that the company believed in transforming its ability through pull marketing strategies in order to reach the customers and influence their buying decision in a positive manner for their company. According to the perspective of Tyynela, 2012, the organization of HTC smartphones all across the globe has tried for satisfying the customer requirements and their desires for which the company enhancing its product qualities. In accordance to Tyynela, 2012, a prominent influence can be gained by pull marketing strategies especially when applicable in smart phone industry because of the immediate prominent response that can be gained by pull advertisement tools in the mind of the customers. The following Graph represents participant age vs participant expenditure on smart phones:
The below graph provides the result of interview analysis revealing the perception of customer and their buying behaviour towards HTC smartphones with regard to the pull marketing strategies used by the HTC.
The below given figurative graph has been developed from interview questions analysis with respect to factors that influence customer behaviour in opposition to the reasons for which customers buy smartphones from HTC.
The following graph helps in identifying the perspective and focus of customers when they are viewing advertising using which a company is able to effectively pull its customers towards them.
Finding Analysis
The turn of the century has ushered in a new age of technology where knowledge as well as economies is getting more and more competitive. Bogner and Barr (2000) believe that in this era, with the markets competitive and ideas and technologies developing at a rapid speed, it has become easier for companies to enter as well as exit high technology industries such as the cell phone industry, as innovating has become the name of the game. With technologies become obsolete by the day, and newer better products being launched by almost all the players in the cell phone industry, the product life cycle of these cell phones are getting reduced. As soon as one big player comes up with a certain technology, another big player comes up with an upgraded version of the same technology.
Synergistic network alludes to the arrangement of network association through various joint efforts to expand and quicken the securing of valuable resources and skills. The managing theory of network joint effort is Social Capital Theory (SCT), which advocates that the network f relationship furnishes its parts with exceedingly profitable resources amid their social association. These resources incorporate the trading of data, learning and resources and additionally the disclosure and control of opportunities. Parts of such network are therefore special in secure the trust and backing of individual parts according to Bourdieu (1986). A few late studies have demonstrated that the positions of firms in inter organizational networks impact a firms operation and output. Due to their facilitative part in different levels of an organization, network connections have even been depicted as network resources. Regardless of the developing accord that networks matter, in any case, the particular impacts of diverse components of network structure on hierarchical execution stay indistinct. In the social networks writing, a civil argument has emerged over the manifestation of network structures that can suitably be viewed as valuable. As indicated by one perspective, thickly implanted networks with numerous associations connecting self-image’s modifies are facilitative for self-image, and social structures are seen as favourable to the degree that networks are “closed” As indicated by an interchange view, on the other hand, social structural points of interest get from the business opportunities made by an open social structure. On-screen characters can fabricate associations with numerous detached bunches and utilize these associations with acquire data and control focal points over others. From the viewpoint of the network researcher, these contrasts have diverse, even opposing, regulating suggestions. From Coleman’s (1988) standpoint, the ideal social structure is one produced by building thick, interconnected networks. From Burt’s (1998) position, developing networks comprising of disengaged modifies is the ideal methodology. Elucidating the ramifications of a cohesive versus disengaged network structures for different authoritative conclusions is essential to our understanding of network resources.
The study by Chiou (2010) investigations the procedures of HTC focused around the 4p of Marketing:
As far as product strategy is concerned, HTC was at first an OEM and gave organizations for example, Qtek, Imate and Audiovox with product strategies and later presented its own particular brand, HTC, in 2007.
Concerning pricing, HTC focused on high consumption business customers amid its initial days, and produced high benefit through high costs. An expanding number of firms likewise join in the opposition of smart phones lately, and the technological innovation of general cell phones, for example, Apple’s iPhone and RIM’s Blackberry has impressively dissolve the business sector of top of the line cell phones. HTC proclaimed its door to mid-range cell phone showcase in 2008 with its centring essentially on Mainland China.
With regard to its strategies of Promotion, the organization embraced deals and appropriating method for offering amid the starting stage, whereby the company’s distributors themselves were in charge of the marketing. Since the dispatch of the namesake brand in 2007, the marketing strategies have clearly underlined client centered “HTC sense” that communicated the three centre philosophies of the brand: “make it mine”, “stay close” and “discover the unexpected” as well as centred around the appearance and pricing of the cell phones.
As far as Place is concerned, in conjunction with the business advancement of its items, the organization started with business cell phones as its key items, and built organizations with telecom providers in Europe, the U.S. and Japan. It has presently amplified its items to incorporate general cell phones as of late, and teamed up with telecom giants in Korea and China, while making its own particular place in cahoots with its namesake brand (HTC, 2009).
HTC embraces a client centric pull technique that delivers products based on customer needs and in the meantime manufactures organizations with wholesalers. The generation of these products on the same generation stage permits the organization to quick plan products its customers’ demands, which thus lessens its manufacturing costs.
The part of the research shall be presenting a discussion related to results and findings analysed towards the pull marketing strategies, their impact and important on the buying behaviour of consumer. The pull marketing strategy is referred to as the strategy which the organization strives for expressing their message in front of the clients or customers with highest potential. These customers, on the basis of the way in which they interpret this message, seek the services or products in an active manner that are being provided by the organization (Heidegger 2002). With the situation created by this strategy, the customer plays a major role for initiating the requests regarding the services or the products. Some instances for this are optimization of search engine or the trade show being presented in a traditional manner.
As mentioned by Brosekhan and Velayutham (2008), the strategies of pull marketing are said to be having a significant effect on the buying behaviour of consumer. It has also been mentioned by the authors that improved awareness of brand can be developed by the strategies of pull marketing that results in the creation of positive effect on the intention of the customers for making the purchases. As stated by Si and Kapoor (2014), the strategies of pull marketing enables the organization for the creation of product differentiation and brand awareness as in opposition with the price in competition individually.
The organizations have a direct interaction with the customers while utilizing this particular strategy and this helps in gaining better level of awareness regarding the lifestyles, and thereby, have a positive effect on the intention of purchasing the services and products of these organizations (Corniani 2008).
In addition to this, no standard theories have been used that help in creating a link between the strategies of pull marketing with the buying behaviour of the consumers. The consumers play a significant role in effecting the level of demand and supply. Hence, it is important to understand how the pull strategy of marketing affects the factors of supply and the factors of demand.
Majority of the advertisements aim on the final customers, who then approach the retailers for obtaining the service or product. In return, the retailer makes request regarding the service or product from the party that is the supplier (Mecnaghan, T. 2011). The marketer do this with the hope that strong demand of customers will contribute in pulling the service or product by the channel of marketing as it forces the intermediaries of marketing for carrying it. If the organization does not keep or maintain accountability up to a certain duration of time, there will be a loss in credibility. Showing the market being targeted, the increased value will result in developing the followers that are loyal, who have the chances of becoming the customers.
HTC Corporation is a self-proclaimed pioneer in cell phones. Most importantly, the study reveals its business methodologies utilizing the five powers examination proposed by Porter. The partnership entered the business cell phone industry before others and picked Microsoft’s Windows Mobile working framework as its strategic partner together, before advancing to community oriented with telecom service providers in international markets, counting Europe, the U.S. and Japan. Its parent company, VIA Technologies, Inc., is a pioneer in innovation, for example, chip and software development, HTC thusly respects its innovation to be at any rate a year in front of its rivals and to have favourable circumstances over business cell phones rivals, potential rivals and substitutes. Regarding the dealing force of suppliers, its ability to deal with suppliers is improved due to its steady synergistic relationship in working framework with Microsoft. As to and wholesalers, the organization has community oriented associations with telecom provider in Europe, the U.s. and Japan, giving business clients with top of the line cell phone products, which recognizes its products from other cellular telephone firms and reinforced its ability to arrange with clients or wholesalers. Outlining the above, HTC Company embraces principally separation centre technique and community oriented method; the previous concentrates on giving business clients multifunctional top of the line cell phone products, though the last the vital cooperation with working framework firms in the upstream to combine the consistent specialized improvement of its products and coordinated effort with telecom provider in the downstream to give altered products to clients or suppliers, in this way collecting client experience for its products. Further to the examination over, the general business model of HTC Corporation advances rapidly, which takes after the mechanical improvement of cell phone and market development. Among its market rivals and taking after the quick advancement of substituting products, HTC amplified its plan of action that concentrates on business cell phones to progressively incorporate general purchaser cell phones from 2007. In admiration of its shared techniques concerning working frameworks in the upstream, it expanded its coordinated effort with Windows Mobile for business products by Microsoft to incorporate Android by Google for general products As to coordinated effort with wholesalers in the downstream, it keeps on discovering remote partners while creating its own spot. Furthermore, as for corporate utilitarian systems, specifically the innovative work systems, the organization expects to increase an aggressive edge through the improvement of coordinated gadgets with inventive gimmicks, which makes its products much more perfect with telecom suppliers’ and user end applications and substance. As far as creation methodologies, the organization keeps on improving its generally business proficiency, including engineering, producing and vital production network administration to advance mid range cell phone products. With respect to procedures, the products shift from high cost to mid cost and from ODM and OEM to HTC’s own particular brand, with escalated crusades to advance the “HTC sense” while step by step building its own particular brand place.
As indicated by the investigation on the element capacities and synergistic network of HTC Corporation, the organization united its business accomplishment by centring on the prevalent products inside the business cell phone bunch. It made focal points that are unrivalled in quality, quality, viability and advancement than its rivals through the improvement of element capacities at distinctive stages and the foundation of a community network with upstream and downstream industries.
The organization also obtains the ability for looking for what are the response of the customers are regarding the product that helps in allowing the business for responding to the issues or the opportunities in a quick manner (Heidegger 2002). There is also a need for always keeping in mind that there is not only the need for drawing the customers to the platform of website but also converting them into fixed clients from being just the potential customers. A key organization between firms in the upstream, midstream and downstream in the business environment of hyper competition and dynamism, is one of the major calculates in the effective foundation of plan of action of practical favourable circumstances. The key partnership that HTC Corporation manufactured with its working framework firms in the upstream balances out the R&D of its item engineering, while its coordinated effort with telecom provider in the downstream expands the business market. . Organizations should ceaselessly enhance its business systems at corporate level in light of business rivalries in the business and changes to item life cycle. The plan of action of HTC Organization takes after the state of rivalry in the cell phone showcase and embraces advancements. It received the separation centre and focused available of business cell phones amid ahead of schedule stage, and picked up focal points through specialized developments and communitarian procedures, which made it the most gainful business in the Taiwanese cellular telephone industry. On the other hand, taking after the progressions in business environment and item rivalry, HTC Corporation is confronted with the emergencies of diminished benefit and disintegration in the business sector of unique products, and has now slowly expanded its business to incorporate the business sector of general customer cell phones.
This includes examples such as how many individuals are able to reach the landing page, in comparison with how many individuals continuously have been clicking the button of buy now. The comparison of all of the stages can be done for seeing the place where individuals are dropping of, and where there is a need and scope of improvements (Pervez 2005).
The main aim for the study being proposed is focused on addressing the gap that can be found to prevail in the current literature. This literature is related to the utilization of pull strategies for marketing by the organizations for influencing the buying behaviour of the consumers. The research being proposed can be considered as being academic in nature as the interest is academics along with serving as a valuable source to offer the recommendations that are most suitable for the organization of HTC in the market of United Kingdom (Si and Kapoor 2014).
Irrespective of the fact that majority of the mobile handsets are being manufactured with good quality, a number of products end up failing because of certain factors that has a major negative impact on the level of sales of the products related to HTC. Even though the review of the product being rated and stated on the websites resulted in woe of the level of supply and having a negative impact on the level of sales due to the creation of confusion in the management being performed by the organization and the concerned management authorities (Engel and Kollat 2007). This problem has been taken up for the purpose of this research as it shall help in highlighting the relevance of strategies related to marketing, particularly the strategies of pull marketing for the organization for survival and more remaining competitive within the market. By conducting this research, it will help in the identification of the best strategies of marketing in favour of these individuals (Pervez 2005).
The strategy of pull marketing are highly effective for the stimulation of demand from the end of customers for the enhancement in the level of sales related to the products of the company. The demand that can be created by the strategy of pull marketing has the tendency of bypassing intermediaries, as there is a need for pulling the products for the customers by the channel of distribution to the highly intensified activities related to promotion and marketing being carried out by the organization a number of different sources of media (Pervez 2005). This particular research pertains on the strategies of pull marketing that has been having profoundness in the implication related to players in a number of different types of industries. These industries include the industry for the manufacturing of mobile handset.
Irrespective of the approach being chosen, it is relevant for doing the research is to understand the market being targeted. While having a conversation with the clients regarding their prospective, it is important to have details as to who they are, from where they are accessing this information and what is their behaviour considering the first step? By conducting this research, it will help in the identification of the best strategies of marketing in favour of these individuals (Pervez 2005). The knowledge being gathered about the market being targeted is considered to be pivotal for the creation of important information with respect to these individuals being targeted. The next step should be made regarding the availability of information and this will help in building a better informed detail regarding the market being targeted.
The main aim of this research is focused on carrying out an investigation regarding the impact imposed on the buying behaviour of customers by the use of pull marketing strategies (Smith and Taylor 2004). For the purpose of this research, a case study has been chosen to create better understanding about the buying behaviour of customers. The case study chosen for the purpose of this research is that of HTC that had applied the pull strategies that affected the buying behaviour of customers targeting the market of United Kingdom.
The organizations have a direct interaction with the customers while utilizing this particular strategy and this helps in gaining better level of awareness regarding the lifestyles, and thereby, have a positive effect on the intention of purchasing the services and products of these organizations (Corniani 2008).
7. Conclusion
The internet can be considered as an excellent source for enabling pull marketing as it helps in presenting the message in front of the base of customers with highest potentiality from across the globe. One of the most essential advantages of utilizing the source of internet as a tool of marketing is ability for measuring and tracking the response (Strouse 2004). This will assist in the identification of what is working and what is not working. There is also a need for always keeping in mind that there is not only the need for drawing the customers to the platform of website but also converting them into fixed clients from being just the potential customers.
The pulling strategy of marketing makes an attempt for the generation of consumer demand with respect to the service, product or line of product, primarily by the appeals of sales promotion and advertising. Majority of the advertisements aim on the final customers, who then approach the retailers for obtaining the service or product (Williams 2007). The characteristics of the customers being targeted by the business that include responsiveness, sensitivity, frequency of making purchases, size and number, preferences and beliefs, and their attitudes towards a number of different instruments of marketing and the previous records regarding their behaviour.
8. Evaluation
Showing the market being targeted, the increased value will result in developing the followers that are loyal, who have the chances of becoming the customers. Social media is a platform utilized for enabling social interaction utilizing the technology on the basis of web that include web pages such as LinkedIn, Twitter and Facebook. The major challenge that is faced by organizations at the early stage and the companies opting new technology face in the growth of the business is to help people in knowing the details regarding the products or services being provided (Kobie 2014). After this, the customers are encouraged to enact as the ambassadors of the products in an active manner. This will help in spreading awareness regarding the uses of products to other potential customers of all generations as well.
The pulling strategy of marketing makes an attempt for the generation of consumer demand with respect to the service, product or line of product, primarily by the appeals of sales promotion and advertising (Schewe 2007). Majority of the advertisements aim on the final customers, who then approach the retailers for obtaining the service or product. The characteristics of the customers being targeted by the business that include responsiveness, sensitivity, frequency of making purchases, size and number, preferences and beliefs, and their attitudes towards a number of different instruments of marketing and the previous records regarding their behaviour
The products that are developed for the consumer are highly dependent on the pull strategy of marketing; while majority of the products for the industries are sold by the strategy of pushing. By implementing the strategy of pull, the organizations become capable enough of motivating the customers for the participation in the sales in accordance with their own preferences and their will as well (Kobie 2014).
Since recent years, because of the increase in saturation and fragmenting the markets and significant competition related to communications, the businesses are confronted with the decrease in the level of effectiveness related to the classic communications of marketing. Indeed, as the classis communications of marketing are individually on the bases of a push strategy where the messages of brand are forcefully imposed on the customers by a number of different sources of media, the response of consumers can be seen to increase the overflow of information with the low involvement of media and with an active engagement for the avoidance of the strategies (Wiid and Diggines 2010).
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Appendix
Interview Questions
- How long have you been employed at HTC Taiwan?
- How is your work environment at HTC?
- What are the perceptions of HTC Taiwan with regard to marketing strategies?
- Which is the most preferred channel for HTC to reach out to its targeted customers?
- Has pull marketing strategy been the focus of all roles and responsibilities played by HTC?
- Does the company completely believe in this strategy?
- Does the company utilize the tactics of pull marketing efficiently?
- Your Age:
Open ended Questions
- 16-20
- 21-25
- 26-30
- 31-35
- Above 40
- Current Occupation
- Student
- Working full-time
- Part-Time Worker
- Not working
- Income per year
- 0-10,000 Dollars
- 10001-20000 Dollars
- 20001-30000 Dollars
- 30001-40000 Dollars
- Above 40001 Dollars
- Average spent on buying a smart phone?
- 50 Dollars
- 50- 100 Dollars
- 100-150 Dollars
- More than 300 Dollars
- Have you bought smartphones from HTC?
- Yes
- No
- Why do you prefer HTC?
- Price
- Name of the brand
- Endorsement of Celebrity
- Style
- Technology
- Quality
- Pull marketing strategy