Discuss how each of the following generational groups might react to TOMS Shoes: the baby boomers, generation X, and the Millennials.
Answer. As explained in the video, TOMS Shoes have a unique marketing approach where the brand image is positioned around the notion of philanthropy rather than value or price based differentiation (Pearson, 2014). The probable response from the three generational groups is given below:
The baby boomers might respond positively to the brand because they generally behave with respect to their age and wisdom. Since TOMS Shoes have the core concept of donating a shoe for the unprivileged in return of every unit sold, this might attract the baby boomers as a medium of contributing to their society and also send a message of altruism for the younger generations.
Generation X might respond neutrally to the brand and their response might be solely driven by the design and price specifications of the offered product. Since they are generally not driven by the social causes and concerns because they are more fashion-savvy and price-oriented and might not be pulled towards the humanitarian positioning of TOMS Shoes.
The Millennials might give the most promising response to the humanitarian approach mixed with general need in case of TOMS shoes. The prime reason for this observation is that the combined impact of social cause association, dominant presence on the internet and social networking sites, and value for family expenses will definitely create a huge pull for this generation.
The chapter mentions the potential for controversy related to cause-related marketing: organizations that engage in such practices walk a fine line between increased sales and an improved image and facing charges of exploitation. How do you think TOMS Shoes does with respect to this controversial line?
Answer. As stated in the chapter, the cause-related marketing can be easily perceived to be a controversial case of cause-exploitative marketing and this might mar the image of the brand or vice versa (Kotler, Burton, Deans, Brown & Armstrong, 2013). However, it is also true that if properly managed, the cause-related marketing can be extremely beneficial for both the brand and the cause. The main reason behind this assumption is based on the fact that any organization positioned as ‘charitable’ can gain huge publicity and even newer sources of funds.
In the case of TOMS Shoes, the cause-related marketing is focused on conveying the charity done by the company which is exactly equal to each unit sold by their normal sale model. Further, the charitable approach is well marketed to the targeted segment by social advertising and digital marketing channels rather than traditional advertising methods. Hence, there are almost no chances that TOMS Shoes’ marketing approach might be perceived to be a case of cause-exploitative marketing. So, in this case, the use of cause-related marketing is a win-win for both, the brand and the cause.
The chapter states that we “use products, brands, and services as a means of self-expression, and (we) buy products and services that match our views of ourselves." Associate this idea with TOMS Shoes.
Answer. The chapter has illustrated the fact that people generally tend to buy those products which they find to more reflective of their true identity and can be used to express themselves (Kotler, Burton, Deans, Brown & Armstrong, 2013). This approach has been used to market some legendary products like Marlboro (‘Marlboro man’) and Harley Davidson. In the case of a cause-related marketing, the brand can definitely create a reflective image on those customers who aim for contributing to the same cause.
As the brand image of TOMS Shoes is entirely driven by the fact that it has a highly humanitarian motif of donating a shoe for each shoe sold, the brand has a pull factor for those buyers who want to do something for the impoverished and underprivileged people in the third world countries. Hence, a buyer who craves to do something for the society but is incapable of doing so because of the lack of infrastructure, time, and money can definitely opt for buying TOMS Shoes because his every purchase will reflect as an act of charity for some needy individual. Thus, associating with the brand will be the most optimum mode of self-expression for the customers of a cause-related brand like TOMS Shoes.
References
Kotler, P., Burton, S., Deans, K., Brown, L. & Armstrong, G.(2013). Marketing.9th Ed. Australia, Pearson Group: 88-140. Print.
Pearson(2014).TOMS Shoes. Pearson education. Retrieved online from http://media.pearsoncmg.com/ph/bp/bp_akamai/kotler/TOMS_Shoes.html