Methods Of Sensory Marketing: Experience Of Russian Retail

Abstract

In this article, we consider the effectiveness of the use of sensory marketing at the points of sale. The study demonstrated the features of not only individual marketing areas, but also paid special attention to sensory marketing. The article analyzes the Russian experience of using aroma marketing and video marketing in sales, on the basis of which the key performance indicators of sensory marketing were systematized. This article also presents the mechanisms of influence used in sensory marketing and interpreted the concept of the expected effect of its implementation. The effectiveness of sensory marketing can be justified according to a number of indicators, the most decisive is the increase in sales by 20%, which is confirmed by the results of the study We can say that sensory marketing is a low cost marketing, as the equipment used to distribute fragrances varies in the price range from 20 to 40 thousand rubles. Considering all the tools of sales promotion, the most optimal is 15%, and this proves the assumption that in modern marketing, in comparison with price methods of sales promotion, non-price tools will be much more effective.

Keywords: Consumer behaviorrelationship marketingsensory marketingaromamarketingaudiomarketingcomfort marketing

Introduction

In a situation where competition goes for the consumer, each seller should use methods oriented toward emotional intelligence buying. This is now the basic technology of modern marketing. The modern trend in marketing development presupposes the use of the ideology of relationship marketing as a basis for development, this is explained, first of all, by the shift of interest towards the study of the psychology of consumer behavior.

The consumer should be comfortable in the sales points, so the sales places are to form comfort marketing.

Neuromarketing in Russian retail science popular, but little studied in terms of the effect of measurability.

Problem Statement

The development of the theory of marketing is reflected in the works of leading foreign scientists, such as Smith A., Drucker P., Kotler Ph., Weber M., Lamben Zh. Zh., Levitt S., they laid the foundation for consumer behavior as a separate scientific direction. It is necessary to note the substantiation of the psychological factor on the formation of the theory of relationship marketing.

The problems of the marketing and psychological essence of the formation of consumer value are reflected in the works: Maslow A., Rokeach M., Baudrillard J., Kahneman D., Simon G. and Catonia J.

Maslow's hierarchy of needs is the most basic knowledge, for understanding the needs of the consumer and the level at which organizations need to orient themselves in marketing activities (Aleshina, 2016).

Adam Smith noted in his writings that consumer rationality is the basis for understanding consumer behavior, the main purpose of which is to maximize benefits at minimal cost (Smith, 2015). Weber (1968) represented human behavior as a series of functional units, each of which begins with imbalance and ends with the restoration of equilibrium (Voronkova, 2016).

The main direction of Kahneman's research is the study of the mechanisms of human decision-making in a situation of uncertainty. He proved that people's decisions deviate significantly from what is prescribed by the standard economic model homo economicus (Kahneman & Tversky, 2013). Drucker defined the purpose of marketing as studying and understanding the client so that the offered goods as much as possible meet its requirements, expectations, thereby selling themselves (Drucker, 2015).

Catonia (1951) formulated one of the basic ideas of economic psychology: the purchase depends not only on the ability (economic opportunity) to make a purchase, but also on the desire to make it (psychological readiness. During consumption, the object becomes a symbol. Therefore, in the process of consumption, we not only meet the basic needs, but also demonstrate to the environment our ego, desires, etc. this means that by consuming it, we satisfy our basic needs as much as we signal to others through a set of consumable goods, who we are, what we want, etc. (Baudrillard, 1996).

The use of personal values for the analysis of consumer behavior involves their description, measurement, modeling. The scale of values, Rokeach (Rokeach Value Scale) represents a spectrum of terminal and instrumental values Rokeach believed that values associated with the goals (end, terminal-states) and ways to achieve those goals (instrumental components) (Rokeach, 1995).

Simon formed the concept of limited reality. The basis of the theory was the provision on the rationality of human behavior, causing real rationality in natural conditions (Simon, 2014). Levitt & Dubner in the book "Freakonomics" revealed the question of the degree of influence of incentives on human behavior, determining the mechanism to achieve the desired in different situations (Levitt & Dubner, 2005). Lamben in his writings outlined the role of strategic marketing for the adaptation of the firm to the constantly evolving mechanisms of satisfying the needs of the consumer (Lamben, 2007).

According by opinion of founder of the American school of marketing Ph. Kotler, it is the study of consumer behavior that led to the formation of a new marketing format (Marketing 3.0) as a science that unites three concepts: individuality, sincerity and image (Kalenskaya & Mukhadisova, 2017). This allows us to form a new marketing trend, the meaning of which is to determine the conditions for satisfying the needs based on analysis of the individuality of the consumer and his reaction not only to marketing incentives, but also to the very process of making a purchase (Kotler, Kartajaya, & Setiawan, 2011).

In the last decade, sensory methods of influencing the consumer have become very popular, allowing more likely to guarantee the success of the transaction.

Research Questions

  • How Sensitive Marketing Affects Consumer Behavior?

  • How effective is the marketing implementation of the sales team at the points of sale?

Purpose of the Study

By the example of introduction of aromomarketing and audio marketing show its effectiveness and influence on consumer behavior.

Research in the branch of psychology has repeatedly proved that instruments such as: music and smells can have an impact on the subconscious mind in the decision-making process or influence human behavior. The use of music and fragrances in places of contact with the consumer creates an "atmosphere" that can influence both the motives of the consumer and his buying behavior. The combination of the use of all elements of sensory marketing "increases customer loyalty and brand recognition."

It should be noted that music and fragrance are not considered by us as the main manipulators, they are only an auxiliary psychological "catalyst" for influencing the consumer in addition to the main marketing tools.

The main function of music and smells in the process of making a purchase is to create a comfortable atmosphere which provokes customer activity. Consumers, taking the atmosphere created by smells, sounds and color design of the, begin to consider it as an integral part of the buying process. Thus, the buying atmosphere becomes a separate criterion for assessing the quality of a product or service.

Research Methods

Hypotheses development

Exposure to odors or "aromomarketing" has a more biological nature than economic or psychological. First of all, this is due to the fact that, from the point of view of biological processes, the smell is the only channel that reaches the brain, without our interpretation.

In 2014 the Activity Group company (Research of the effectiveness of the use aromamarketing technologies in network business, based on the hypothesis of the influence on direct sales of indirect neuromarketing factors: https://adindex.ru/case/2014/06/20/111686.phtml (2014)) proved several hypotheses at once

  • the use of aromamarketing increases sales.

  • the use of aromamarketing increases the length of time visitors stay in the store.

  • the use of aromamarketing increases the number of impulse purchases.

  • the use of aromamarketing increases the traffic within departments.

The results of the research of the Capital Research Group indicate that properly sprayed flavors cause visitors to have 30% more to eat and 15% more to buy. During the experiment of the University of Paderborn, it was possible to establish that through the aromatization of the shopping halls, the time visitors spend in the store increased by 16%, the readiness to make purchases - by 15%, and the number of unplanned purchases - by 6%.

According to studies conducted at the University of Paderborn (Germany), customers estimate the aromatized store as 90% more pleasing in design than the similar one without the presence of flavor.

Firm size

The study was conducted on the basis of three shopping centers in the city of Kazan.

Profitability

We propose the systematization of the mechanisms of the impact of sensory marketing and the determination of the expected effects from its introduction.

Table 1 -
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Organizational Slack

Most retail outlets generally do not use neuromarketing techniques in their activities. Of the organizations surveyed, only 2% know about such technologies.

Population and sample

In the study, we conducted a survey of consumers who belonged to the younger generation. It is necessary to interview about 100 people living in two regions of Russia, such as the Republic of Tatarstan and Bashkortostan. Subject of the survey: young people of both sexes aged from 18 to 25 years. Subject matter: the criteria for choosing a store and the preferred flavors, colors, music, tactile sensations, provoking to purchase. The purpose of the survey: to identify the reactions of consumers in two regions to colors, flavors, tactile sensations from the product and music playing in the store/salon.

Poll tasks:

1. Identify the incentives that affect buying.

2. To establish the receptivity of young generation consumers to the elements of neuromarketing: affect the incentive for the duration of stay.

Data collection procedures

A universal smell or a universal musical background for all the variety of goods and types of trade has not yet been found. Therefore, different stores need their "own" aroma and sound. However, in any case, the smell should be soft, and the music is not annoying and does not cause negative reaction from visitors, and so thin that a person does not understand why he likes to be here.

The effectiveness of the application of methods of sensory marketing to date is determined by standard methods, such as the registration of the number of sales and consumer survey / assessment.

However, these indicators do not provide to assess the influence of hidden factors, such as the timing of the purchase, the mood of the potential buyer, the expectations of the buyer. This involves developing a methodology for assessing the effectiveness of sensory marketing methods for an individual enterprise.

In order to determine the most effective types of promotion through sensory marketing, it is necessary to be based on the consumer preferences of the target segment. A detailed description of the target segment allows us to develop an effective concept and positioning strategy. This, in turn, will allow using sensory marketing methods to enhance the effect and increase the share of loyal customers.

Interrelation of segmentation and positioning is shown in the following diagram (Fig. 01).

Figure 1: Interrelation of segmentation and positioning through the tools of sensory marketing
Interrelation of segmentation and positioning through the tools of sensory marketing
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Positioning is the process of finding such a market position for a company that will profitably distinguish it from the position of competitors. Positioning is carried out for a specific target segment, for which unique advantages are created and offered. In our study, the company's advantages are the atmosphere of the purchase.

Sensory marketing tools such as aromamarketing and audiomarketing have shown their effectiveness in the sphere of sales of everyday goods. The time spent in shops and shopping malls increases by an average of 13%, sales increase by an average of 20%.

Table 2 -
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Analysis of data from open sources allowed us to conclude that the most common smells are: the smell of coffee, the smell of lemon, the smell of mint and jasmine, and the smells of sandalwood and ylang-ylang. It is these smells that increase the sales of everyday goods by 15-20%.

The regression model

y t = a x t + b + e t

Y - number of new customers

x- amount spent on touch marketing

b - characterizes an advertising-independent flow of customers.

The quantity includes deviations that are not explained by the model, but are caused by other factors (seasonality, dollar rate ...).

yt -15xt+300

every 100 rubles are given by 15 new customers.

Findings

In conclusion, based on the above, we can say that the effectiveness of neuromarketing is determined by several parameters, which determine the increase in the frequency and volume of sales, on average by 20%. In addition, we can define touch marketing as low-budget, as the equipment that provides the distribution of fragrances is in the range of 20 to 40 thousand rubles.

Among all methods of sales promotion, 15% is considered optimal, which proves the hypothesis that in modern market conditions, in marketing, non-price sales promotion is more effective in comparison with price stimulation.

The purpose of emotional design is to create an atmosphere for the client such that he feels calm or happy, aware of the necessity and value of acquiring a product or product of a particular brand as a whole, his purchase must be accompanied by safety, guarantees.

Conclusion

Tools for building emotional design, depending on the scope of activity, the target audience are:

  • color solutions;

  • audio and video content;

  • packing;

  • design elements (logo, font, etc.)

  • interior and ektserer office, store;

  • advertising messages;

  • interaction through events;

  • social networks;

  • the ability to offer greater (sverhozhdeniya);

a clear desire to help the client.

Acknowledgments

Research and recommendations were adopted for introduction in the shopping centers of Kazan.

References

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Publication Date

18 December 2019

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Future Academy

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57

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Business, business ethics, social responsibility, innovation, ethical issues, scientific developments, technological developments

Cite this article as:

Kalenskaya*, N., & Mukhadisova, R. (2019). Methods Of Sensory Marketing: Experience Of Russian Retail. In & V. Mantulenko (Ed.), Global Challenges and Prospects of the Modern Economic Development, vol 57. European Proceedings of Social and Behavioural Sciences (pp. 688-695). Future Academy. https://doi.org/10.15405/epsbs.2019.03.68