The prototype and segmentation group project that we recently completed in our Customer Insights class was very beneficial. It taught me and my group many valuable lessons. One core concept that I better understand as a result of working on this project is the value of collecting usable and thorough data. It was difficult finding and surveying a target market that is a small segment of the total population. I think this is important information to grasp because having enough solid data to use in analysis is a key factor in getting a project rolling and to have successful and valid results. Because I better understand the difficulty of collecting data, I now know that it is crucial that I start formatting a survey and begin collecting data in a timely manner in order to have enough time and flexibility to find creative ways to get valuable data. For example, our target market was stay at home dads. We thought that we would be able to find stay at home dads at parks, Whole Foods, and other common places but we found that it was harder than we thought to find our target market. On top of that, once we did find them, it was harder than we thought to approach them.
Another valuable lesson that the project taught me was that it is important to dig deeper into topics about your target market that may seem to have less surface value because often these are topics that may have stereotypes about them or seem too general. For example, we had stay at home dads in the living room. We assumed that because they stay at home, they did all the living room and household furnishings. After completing our research, our group realized that living room furnishings were usually completed before there were kids in their family, or if they already had kids the wife organized most of the furnishings. After gathering this data, it led us to wonder who chose the entertainment units and system within the family room. From here we wondered how important these entertainment units such as the television, Wii, computer, DVD player, and CD player are to the stay at home dads. Our data began to sculpt and become less stereotypical and more factual all because we delved deeper into the question about furnishings of the family room. I think Professor Walls did a fabulous job in our in-class update periods by really helping us focus on underlying questions that we may not originally have though about.
I had a very great experience with my group members and professor throughout the project. My group worked together fabulously, met deadlines, and divided work in a fair manner. Also, we had a lot of laughs and smiles along the way. At first I was a bit confused about the guidelines of the project but as the project progressed each update was more and more interesting and clarifying for our overall goals. I LOVED that we were able to do something creative and with our hands at the end of this project. It was the only class in my four years in the business school that I was able to use my art skills. I will tell you that it was refreshing and a great way to end my college career in the McCombs School of Business. I was also very impressed with the role of Professor Walls in this group project. He was involved just enough to give great insight, but was also good at letting us have space and freedom in deciding how we wanted to compile and find our research, format our presentation, and create our project.
Wednesday, May 6, 2009
Wednesday, April 22, 2009
Church of the Customer Blog
I am writing in regard to the blog titled “Fun is Contagious” by Ben McConnell. It was written on April 7th, 2009. The blog talks about Alamo Drafthouse here in Austin, Texas and highlights some of the “fun” events they have been hosting and creating for eager Austinites. The first one is Renegade Karaoke where they rented a bus to drive around Austin. They filled it with customers who sang karaoke in odd settings. For example, they sang in a Starbucks, a police station, a fitness class, and a busy intersection. The hilarious footage was then compiled into a four minute tape that is played before other movie showings. I suggest you take a look at the video. It is priceless.
The second fun event they reference is the secret world premier tour of the new Star Trek movie. The movie goers thought they were buying tickets to see and catch up on their 1982 Star Trek movie, with a special opportunity to see ten minutes of the new Star Trek. As a surprise, Khan, from the first Star Trek movie, comes out ten minutes into the showing and suggests that they play the new Star Trek movie. To the viewers surprise they got to watch the entire new film before anyone else! I am sure these guests were beyond thrilled.
At the end of the blog Ben writes: Fun is contagious. Fun spreads. Fun inspires loyalty. Fun opens wallets. I couldn’t agree more. I think an important distinction here is that fun inspires loyalty and opens wallets for adults, as well as children. The mass buying power of children is utilized by parents because they want their children to have fun and create experiences that will sculpt their childhood. This is why Miley Cyrus has a million people at her concerts. It is FUN for the children. Well Alamo Drafthouse is finding ways to make adults feel like children again by creating silly and unique experiences. I know that the Justin Timberlake sing along was a huge hit production at the Alamo Drafthouse because it brought our generation back to the “teeny bopper” days. I personally, and I can’t believe I am going to admit this, had an entire wall in my room filled with pictures of JUST Justin. I am talking about a wall that stretched probably ten to twelve feet and was equally high. The Justin Timberlake sing-a-long could not have taken me back to my childhood roots any better.
In my opinion, service companies such as Alamo Drafthouse, are most successful when they throw a little bit of structure out of the window and bring in more spontaneity. It creates good PR, great word of mouth advertising for them, and makes the customer feel good about their experience making them want to come back for more surprises. I have been sitting here trying to think of another company that has the same business model as Alamo Drafthouse, but am having a hard time. Places such as the Magic Time Machine restaurant come to mind because there is constant entertainment with waiters, bubbly and colorful drinks for children, and when someone goes to the bathroom they yell “Potty Patrol, Potty Patrol.” And look at that, I remember that experience as a child. I haven’t been to The Magic Time Machine in probably 15 years and I can still recall the fun that I had. If a company does its best to create an experience that is fun above all else, I can guarantee that their customers will recall their experiences the way I have about The Magic Time Machine.
The second fun event they reference is the secret world premier tour of the new Star Trek movie. The movie goers thought they were buying tickets to see and catch up on their 1982 Star Trek movie, with a special opportunity to see ten minutes of the new Star Trek. As a surprise, Khan, from the first Star Trek movie, comes out ten minutes into the showing and suggests that they play the new Star Trek movie. To the viewers surprise they got to watch the entire new film before anyone else! I am sure these guests were beyond thrilled.
At the end of the blog Ben writes: Fun is contagious. Fun spreads. Fun inspires loyalty. Fun opens wallets. I couldn’t agree more. I think an important distinction here is that fun inspires loyalty and opens wallets for adults, as well as children. The mass buying power of children is utilized by parents because they want their children to have fun and create experiences that will sculpt their childhood. This is why Miley Cyrus has a million people at her concerts. It is FUN for the children. Well Alamo Drafthouse is finding ways to make adults feel like children again by creating silly and unique experiences. I know that the Justin Timberlake sing along was a huge hit production at the Alamo Drafthouse because it brought our generation back to the “teeny bopper” days. I personally, and I can’t believe I am going to admit this, had an entire wall in my room filled with pictures of JUST Justin. I am talking about a wall that stretched probably ten to twelve feet and was equally high. The Justin Timberlake sing-a-long could not have taken me back to my childhood roots any better.
In my opinion, service companies such as Alamo Drafthouse, are most successful when they throw a little bit of structure out of the window and bring in more spontaneity. It creates good PR, great word of mouth advertising for them, and makes the customer feel good about their experience making them want to come back for more surprises. I have been sitting here trying to think of another company that has the same business model as Alamo Drafthouse, but am having a hard time. Places such as the Magic Time Machine restaurant come to mind because there is constant entertainment with waiters, bubbly and colorful drinks for children, and when someone goes to the bathroom they yell “Potty Patrol, Potty Patrol.” And look at that, I remember that experience as a child. I haven’t been to The Magic Time Machine in probably 15 years and I can still recall the fun that I had. If a company does its best to create an experience that is fun above all else, I can guarantee that their customers will recall their experiences the way I have about The Magic Time Machine.
Wednesday, April 8, 2009
Paper Outine
- Introduction:
Thesis: The topic for my paper is going to be the consumer electronic industry and its use of marketing to understand consumer behavior, underlying buying decisions, why people upgrade, switch brands and want the “top” new products even when a better one is going to come out in just a few months. I want to examine the entire industry, but want to focus mainly on Apple products for innovation and customer loyalty.
My reservations are that I picked a subject that is too broad and opinion based. I am unsure that I will be able to find real data that proves my point about consumer behavior in this market. I think there will be lots of speculations. Also, I am not sure I am hitting the correct points in my paper. Am I talking about the correct issues related to this topic? Any input you may have about this would be great! Thanks!
Consumer Electronic Industry/technology in general- facts, trends, trends in current recession
Overall marketing usage of celebrities, promotions, etc to get attention
World dependence on Technology- why we need it? Or think we do.
Apple’s ability to generate buzz through apps, marketing, affiliations to brand
Its competition with Google for market share
Survey about iPhone and Apple loyalty versus other phone providers insights
Body:
1.)
General: I plan to outline the technology, gadget and cell phone industries. I want to lay a foundation for the paper.
I. More than 75% of U.S. households have at least one PC
II. According to a wide-ranging United Nations report, around six in ten people across the globe now use mobile phones.
III. According to the CTIA-Wireless Association, over 250 million Americans now subscribe to a cellular-phone service. That places the penetration rate at 82.4 percent.
Technology purchases are effected by our current economical state: Recession
I. American consumers are now watching their bank account balances and reassessing their gadget habits because of the recession
II. People are seeking help to either repair their gear or add to its functionality and what the product does for them
1. “Function is the new Fad”
2. The repair industry is booming!
III. Still, the chances are that “whether you're male or female, 18 or 81, you'll buy a technology product this year”
1. People are more inclined to scrimp elsewhere than they are to go without a new cell phone.
2. Department of Commerce states that the proportion of dollars spent on electronics versus other "durable goods," such as cars, has never been higher
IV. While people are still buying electronics, they're paying much less for them due to online research
1. There is increased traffic to sites that offer discounts and freebies
Smartphones are sophisticated mobile phones that offer users access to the Web and e-mail, as well as, provide phone calling and all kinds of other messaging options.
I. This category of device is the hottest thing going in the mobile market and is seen as the biggest growth engine for mobile devices over the next few years
II. Consumer functionality is hot- Apple is better in this category than Microsoft
III. “If Microsoft or any other competitors want to hasten Apple's rise in this market, they'll have to leap-frog Apple with something truly revolutionary”
IV. Handsets sporting the iPhone OS (i.e., first- and-second generation iPhones) currently make up a whopping 50 percent of US mobile Web traffic. That number is up an impressive 40 percent from August of last year.
V. BlackBerry's share dropped to 21 percent, down from 32 percent; Windows Mobile went from 30 to 13 percent; and Palm dipped from 19 to 7 percent. Despite being available on only one phone in the US, Google's Android managed to capture 5 percent of the traffic.
VI. Globally, Symbian is still on top at 43 percent, with the iPhone 33 percent. The drop-off is fairly steep from there, with RIM at 10, Windows Mobile at 7 and Palm at 3 percent.
2.)
a. Technology Marketing
In this section I want to mention many different types of marketing that these companies invest in.
I. Use of celebrities:
a. Alicia Keys- Samsung Camcorder
b. Lauren Conrad- Blackberry
c. David Beckham- RAZR2
d. Maria Sharapova-Canon Powershot
e. Jay-Z-“personal for HP”
f. Justin Long- “Get a Mac” Ads
g. These are just a few examples
II. Use of competition:
a. Mac vs. PC
i. I’m a Mac, I’m a PC
ii. The “real PC’s”: Life without walls
b. Call phones ads/partnerships:
i. Blackberry touch vs. iPhone
ii. AT&T as the only iPhone supplier
iii. Blackberry Storm only sold at Verizon Wireless
Here I plan to talk about how these promotions, ads, partnerships, and celebrities effect customer buying decisions and thoughts about a product.
3.)
a. World Dependence on Technology: In this section I want to touch on how our dependence on these products forces us to continually be "in the know" about the newest, most interesting product on the market becuase technology is such a huge part of our everyday life. I have found some pretty crazy information about our dependence and I think that our desire to have the coolest products is most definatley tied to this dependence.
I. Grown Man Cries after not having his blackberry video from NBC Today series: Could you do without?
a. 1 in 8 Americans addicted to the internet
b. “It is like a four year old that had a teddy bear with them everywhere then you yanked it away from him”
i. Physical symptoms- anxiety, tightness of chest
ii. Like cigarette smoker who quit, asked cab driver for cell phones
iii. “It's like an addiction. Heck, I'm ready to suggest an addition to the DARE program. If it keeps up this way, we'll soon be checking e-mail through our navigation systems while driving and talking on the car's standard-equipped cell phone all at once. The scary part is, by then we might not even stop to ask ourselves: Is this for real?”
4.)
I. Apple’s ability to generate buzz through apps, marketing, affiliations to brand; also its competition with Google. This part of the paper is where I am going to start focusing more on the Apple brand vs. its competition. I am also going to try to explain why customers feel the unique way they do about Apple.
a.) Apple’s iPhone and Google’s Android compete in the cell phone market
· Both have social media and game applications
· Apple is one step ahead because of their vertical and exclusive way of doing business which makes the iPhone highly desirable and its accompanying App Store highly accessible.
· Google's philosophy is provide the best and most extensive service you possibly can and people will love it and then monetize it
· Google Voice application is available on the iPhone
o Google is utilizing the iPhone as a way to generate knowledge in the marketplace about its product while they develop Android to become an even stronger competitor to iPhone
o Apple should watch out for this!
Video: http://www.youtube.com/watch?v=9IlvfEBJGx4&feature=player_embedded
· Apple’s catchy and almost cocky marketing campaign is crucial towards their brand image
· Apple has a unique ability to foresee needs in the marketplace through great research and development and marketing research of customers
· Apple has generated and built a CULTURE around themselves and the product. It has become a “lifestyle”
· Reasons Apple has loyal customer base:
o Secret 1: Engineering supports design -- no exceptions
-Apple's brilliant designers figure out in detail how the product will look, feel and work, and then the engineers are tasked to make it happen.
o Secret 2: Fewer is better
-It tries to develop the fewest possible number of products, each with the broadest possible appeal. Yes, there are multiple iPods, but feature overlap is close to zero, and it's super easy to learn which product does what.
o Secret 3: The experience is the product
-Apple is dead serious about this secret, even to the point of offering US$35,000 to the city of Montreal to remove three parking meters in front of the Apple store there. The city refused, but this is how seriously Apple takes the Apple "experience."
- Another example is Apple's packaging. The company's products come in beautifully designed packaging with obviously expensive packaging materials and manuals.
o Secret 4: The product is the product
- Apple CEO Steve Jobs talks about the actual products above all.
o Secret 5: You can't please everyone, so please people with good taste
- Only the high end creates the pixie-dust intangible quality of buzz, brand affinity and, ultimately, brand loyalty, which can be converted into higher margins and higher sales.
o Secret 6: Leave the past behind
o Secret 7: Product names are important. Really important
- One of Apple's few competitors in the cell phone handset market is the LG KU990 Viewty. What sounds better: The "iPhone" or the "KU990 Viewty."
o Secret 8: Group affiliation is the driver
- Apple fans are the most rabidly active, fiercely loyal group in the industry. Why do Apple fans spend so much time and energy fighting for the honor and glory of a consumer electronics company?
- The answer is that identity is a primary human motivation. One of the major components of self-identity is group affiliation. People want to belong to a group that immediately identifies them as being superior to other people in other groups. That's just how human beings are wired. It's the same aspect of human nature that drives all fandom as well as nationalism and religious zealotry.
- It's less about functionality and more about what it tells other people about who you are and what group you belong to.
- This is what's so great about Apple: Its products get a "B" on features and functionality -- they're almost best in class in most of their respective categories. But they're an "A+" on what really matters -- coolness, which translates into both boosted self-identity and appealing group affiliation.
5.)
I. My Survey will be conducted between now and when my paper is finished. I want to get insights about how the typical college student views Apple, the iPhones, and other non Apple products. I want to compare this data in someway that I am not sure about yet.
***I have sources for all of my current information but I did not feel the need to include them in this outline!***
Wednesday, April 1, 2009
Marketing Research
I am happy that this week I have the freedom to write about WHATEVER I want! How fun! I must say that it is almost harder writing a blog when there is less guidance on the topic because it forces me to think about what interests me. In a way, it’s quite ironic that I mention this because this is a class about customer insights and it is very common for consumers to be uncertain about choosing products, especially peripheral purchase decisions. Consumers are often unsure why they pick the product that they do, can’t say what caused them to choose that product, and can’t pinpoint the attribute about the product that attracted them towards it in the first place. This is the underlying problem with marketing research, surveys, and interviews because even if consumers are providing information about a topic, the researcher is never 100% sure that the information they are analyzing is even accurate and representative of their target market and product. This was very apparent to me in our class discussion on Monday about our project update. Three groups in our class presented to the other students in the class about their current research progress. Most of them were unsure whether their data was skewed or biased, almost all of them coming to the conclusion that there were definite biases and holes within their research.
Then I started thinking about how marketing research from online blogs can be beneficial for marketers because the comments from users are natural, genuine, and unmonitored. This is a positive attribute because a response bias and reporting bias do not exist. The user is voluntarily giving a comment because they feel a sense of importance and relevance to the product while they also are not tailoring their answers to look favorable in front of a researcher. A negative side of this marketing research is that most of the time this research is going to be monotonous. The marketer is going to have to sift through hundreds and hundreds of comments in order to get at least 50 serious and helpful remarks. On the same coin, although some of the negative responses will be goofy and negative for negatives sake, some of the negative comments will help the manufacturer and marketing team edit and form the product to continue to please the consumer.
One example of this is a blog that I found about the “Snuggie.” Incase you haven’t heard of the he Snuggie™, it is a blanket that keeps you totally warm and gives you the freedom to use your hands. The positive aspects are that it allows the customer to work the remote, use your laptop or do some reading in total warmth and comfort! Basically it is a robe put on backwards, but with a blanket attached. There is a new competitor to the Snuggie called Peekaru Original Fleece Baby Carrier Cover made by Mom 4 Life. I found a blog about it and here are some comments that I discovered. Also, here is the blog link: http://nymag.com/daily/intel/
· I am glad my children are older because otherwise I would totally buy this
· I agree it looks absurd, but these are awesome! Every other mom I met on the street would ask me where to get one. It is simply a fleece that you can wear over a baby bjorn or other carrier in cold weather. Otherwise, the mom can't zip up her coat. Plus you don't have to bundle up your baby in winter snow suit before slipping him into the carrier. As for the person who says parents can't be bothered to carry their children in their arms anymore, when is the last time you lugged around a baby?? Try a baby plus a shopping bag = perpetual back ache.
· Looks like heaven for your lower back…
· Caption: Woman throws fashion out the window after becoming a mother
Point being, a little helpless blog can give insights to Mom 4 Life as they continue to market their brand and product to the very judgmental, but somewhat accepting world of consumers.
Then I started thinking about how marketing research from online blogs can be beneficial for marketers because the comments from users are natural, genuine, and unmonitored. This is a positive attribute because a response bias and reporting bias do not exist. The user is voluntarily giving a comment because they feel a sense of importance and relevance to the product while they also are not tailoring their answers to look favorable in front of a researcher. A negative side of this marketing research is that most of the time this research is going to be monotonous. The marketer is going to have to sift through hundreds and hundreds of comments in order to get at least 50 serious and helpful remarks. On the same coin, although some of the negative responses will be goofy and negative for negatives sake, some of the negative comments will help the manufacturer and marketing team edit and form the product to continue to please the consumer.
One example of this is a blog that I found about the “Snuggie.” Incase you haven’t heard of the he Snuggie™, it is a blanket that keeps you totally warm and gives you the freedom to use your hands. The positive aspects are that it allows the customer to work the remote, use your laptop or do some reading in total warmth and comfort! Basically it is a robe put on backwards, but with a blanket attached. There is a new competitor to the Snuggie called Peekaru Original Fleece Baby Carrier Cover made by Mom 4 Life. I found a blog about it and here are some comments that I discovered. Also, here is the blog link: http://nymag.com/daily/intel/
· I am glad my children are older because otherwise I would totally buy this
· I agree it looks absurd, but these are awesome! Every other mom I met on the street would ask me where to get one. It is simply a fleece that you can wear over a baby bjorn or other carrier in cold weather. Otherwise, the mom can't zip up her coat. Plus you don't have to bundle up your baby in winter snow suit before slipping him into the carrier. As for the person who says parents can't be bothered to carry their children in their arms anymore, when is the last time you lugged around a baby?? Try a baby plus a shopping bag = perpetual back ache.
· Looks like heaven for your lower back…
· Caption: Woman throws fashion out the window after becoming a mother
Point being, a little helpless blog can give insights to Mom 4 Life as they continue to market their brand and product to the very judgmental, but somewhat accepting world of consumers.
Tuesday, March 24, 2009
The Persuaders
The Persuaders” takes a look at advertisers today and their attempt to break through the clutter and connect with their target consumers. People have become numb to the traditional ads and commercials, so companies are having to do things to resonate in consumers’ minds. Challenges like DVRs makes it even harder for products to be seen, so advertisers are having to find interesting and intelligent ways to stand out and not get lost in the white noise of traditional advertising. Guerrilla marketing and product placement in movies and television shows are two great examples of ways to do that.
Additionally, brands are hiring companies that solely spend time trying to analyze what goes on in the minds of these consumers and how these companies can more strategically connect with them, whether it is specific words, colors, or even subliminal techniques. For example, Dr. Rapaille was hired by a fragrance company, among thousands of his other Fortune 1,000 companies that he has worked with, to use his three step technique in order to find the consumers’ unconscious needs which drive consumption.
His three step process begins with first relating to a consumer’s reasoning. He says that, “people have no idea why they choose what they choose and I have to get to the bottom of it.” He picks a word and then has the focus group think of all other words they think relate to that word. This reasoning starts with the cortex. Dr. Rapaille says that this step is crucial because it lets each individual feel proud about how smart they sound within the group. This is important because in order to get to the core primal state, these feelings and emotions must be gone. Between the first and second steps there is a break in the testing in order to let everyone regroup.
The second step appeals to the emotions of the focus group. Here he says, “Tell me a story as if I were a five year old from a different planet.” In this step the individuals don’t feel the need to be logical or intelligent. While going through this step they get confused and lose sight of their purpose which Dr. Rapaille says is a very important step in the process as well. After the second step is over they take a long break again.
The final phase taken by Dr. Rapaille is to appeal to the primal core. In this phase the testers enter the room to find all of the chairs missing with pillows in their places. Everyone is asked to lie down and jot down notes about the first time they experienced the word that they are trying to understand. This is the key to the reptilian hot buttons. He also comes up with a secret “code” that enables a company to sculpt, create and check their products. This code has been beneficial for Boeing in developing their new 2009 Dreamliner. The code was used for development of new airplane seat covers, new overhead bins, and other top secret alterations throughout the plane.
Song airlines, which is a branch from Delta Airlines, is another company that has hired a professional marketer and brand manager, Andy Spade, in order to help differentiate their products and services from other airlines. They seek to invent a new culture around flying. Their target market is “Cari” a strong working mother with three children, a working husband, SUV and Sports car, who shops at Target and Nieman Marcus. They are differentiating their product with organic products, low fares, and more entertainment. Additionally, their use of bright colors and flow-like themes is exhilarating, and in my opinion brings a fresh look to the airline business. Their “emotional” road to promoting song is creative, but some employees say they need communication that drives commerce, not just emotion. I think that Song has a great idea going for them, especially in an industry that has such a negative connotation. It seems like they are bringing the Apple and Google corporate culture into the airplane world, and I really like that. On the other hand, I know it is to their huge disadvantage that Delta is doing poorly and they are their mother company. Ultimately, I think that sales will follow if Song keeps doing what they are doing; they just need to remember to keep their costs as low as possible because their marketing budget is decreasing by the minute.
Sunday, March 8, 2009
The In's and Outs of Marketing Research
“Kenna’s Dilemma: The Right- and Wrong- Way to Ask People What They Want” by Malcolm Gladwell is a very interesting piece of writing that talks about the troubling faults, mysteries and difficulties of retrieving consumer research and information about products in the marketplace. Although all of the lessons throughout the article are important for researchers to understand, I think the two most important lessons are learned from the Pepsi versus Coke challenge for market share and from the Christian Brothers Brandy and E & J Brandy example.
The Pepsi Challenge demonstration of marketing research is interesting because it brought consumers to the forefront of making a decision on camera about which cola was better tasting. This was controversial for Coke because not only were they losing market share, consumers actually thought Pepsi’s products tasted better during these quick sipping taste tests. Because Coke’s reputation was heavily based on its “secret recipe,” Coke felt as though they had to react quickly in order to maintain their leadership in the market. New Coke was produced, favored in pre-market taste tests, and was launched with much confidence. And what did Coke achieve? Nothing. Failure. And Why? Listen carefully: I think that for marketers to grasp the understanding of consumers’ beliefs, feelings, and opinions about a product they have to throw all of the rules of marketing research out the window, but in a strategic manner. In any research project a marketer needs to know that numbers are reliable, but they are not and will never mean everything in every scenario, and should not trigger every marketing decision that is made within a company. This example, in the exact opposite way, is extended in the Aeron chair market research. Aeron’s rankings for look and comfort during product research were low and unpromising, which is opposite of what happened for New Coke. They were doubtful that it would be successful but extended it to the market anyway. It became a huge success and now can be found in office buildings across the world. I used one all summer in my internship, (although it may not be the Aeron brand because of the increased competition for the “skeleton chairs” in the market today,) and I found it very neat to read about the chair’s history. My case in point is that Coke and Aeron experienced first hand how market research can be very wrong about the success of a product and marketers need to take this into consideration which may mean to follow their gut instead of their gadgets.
The other important lesson that should be learned by marketers is that a simple change, such as the size, shape, color, font, or label on a bottle or package could be the determinant of which brand succeeds in a competitive landscape. I know that if I am apathetic or not loyal to a brand, I almost always pick the combination of best price for quality and quantity, and then my second variable in choice is the appeal of the packaging for the product. This is especially important in alcohol purchases because most of the lower level liquors taste the same, and so on as you travel up the ladder to “top-shelf” products. The bottle of the product is a sort of staple to a person’s fashion sense and can be a trendy accessory when walking into a party. Christian Brothers conducted market research on their products because there were exact and reliable quantitative ways to understand why they are not performing well against a certain competitor. All marketers should really analyze their own mind processes in making decisions, along with the market research, in order to find the critical downfall of a product in order to make it better in the long run. For example, I am not loyal to any certain bottled water. The other day in the store I chose to buy Glaceau Smart Water because of the packaging. It was interesting and I felt “modern” when holding it. I have no doubt that this company has obtained positive reinforcement about their packaging, and thus will continue to use their sleek bottle.
The Pepsi Challenge demonstration of marketing research is interesting because it brought consumers to the forefront of making a decision on camera about which cola was better tasting. This was controversial for Coke because not only were they losing market share, consumers actually thought Pepsi’s products tasted better during these quick sipping taste tests. Because Coke’s reputation was heavily based on its “secret recipe,” Coke felt as though they had to react quickly in order to maintain their leadership in the market. New Coke was produced, favored in pre-market taste tests, and was launched with much confidence. And what did Coke achieve? Nothing. Failure. And Why? Listen carefully: I think that for marketers to grasp the understanding of consumers’ beliefs, feelings, and opinions about a product they have to throw all of the rules of marketing research out the window, but in a strategic manner. In any research project a marketer needs to know that numbers are reliable, but they are not and will never mean everything in every scenario, and should not trigger every marketing decision that is made within a company. This example, in the exact opposite way, is extended in the Aeron chair market research. Aeron’s rankings for look and comfort during product research were low and unpromising, which is opposite of what happened for New Coke. They were doubtful that it would be successful but extended it to the market anyway. It became a huge success and now can be found in office buildings across the world. I used one all summer in my internship, (although it may not be the Aeron brand because of the increased competition for the “skeleton chairs” in the market today,) and I found it very neat to read about the chair’s history. My case in point is that Coke and Aeron experienced first hand how market research can be very wrong about the success of a product and marketers need to take this into consideration which may mean to follow their gut instead of their gadgets.
The other important lesson that should be learned by marketers is that a simple change, such as the size, shape, color, font, or label on a bottle or package could be the determinant of which brand succeeds in a competitive landscape. I know that if I am apathetic or not loyal to a brand, I almost always pick the combination of best price for quality and quantity, and then my second variable in choice is the appeal of the packaging for the product. This is especially important in alcohol purchases because most of the lower level liquors taste the same, and so on as you travel up the ladder to “top-shelf” products. The bottle of the product is a sort of staple to a person’s fashion sense and can be a trendy accessory when walking into a party. Christian Brothers conducted market research on their products because there were exact and reliable quantitative ways to understand why they are not performing well against a certain competitor. All marketers should really analyze their own mind processes in making decisions, along with the market research, in order to find the critical downfall of a product in order to make it better in the long run. For example, I am not loyal to any certain bottled water. The other day in the store I chose to buy Glaceau Smart Water because of the packaging. It was interesting and I felt “modern” when holding it. I have no doubt that this company has obtained positive reinforcement about their packaging, and thus will continue to use their sleek bottle.
Sunday, February 22, 2009
My Paper Topic
As of now, my topic for this paper is going to be the consumer electronic industry and its use of marketing to understand consumer behavior, underlying buying decisions, why people upgrade, switch brands and want the “top” new products even when a better one is going to come out in a few months. I want to examine the entire industry, but want to focus mainly on Apple products for innovation and customer loyalty. I think this is an important segment of the consumer electronic industry, especially with their huge outbreak into the phone industry. The whole campaign and brand has changed the way we look at phones TOTALLY. I want to know how Apple does it.
I chose this topic because my my electronics and my phone are a very important part of my life. I use my iPod almost everyday, if my laptop died it would also be the death of me, and my cell phone is my little security blanket. Also, this personal entertainment technology is an interesting topic because it has grown so much in the last fifteen year that, as consumers, we are still relatively unaware of why and how we should purchase the products that we do. For example, are we buying the new products because of word of mouth or a great marketing campaign? Or do we like the product itself or the affiliation to the brand? Or why do we need the newest product when something better is sure to come out if we wait? Also, are these consumers using online reviews and other forms of accessible technology to gain insight on these products? One technology’s ability to drive sales for another technological product is such a staple of how our generation works in deciding purchasing decisions. It is pretty amazing, really! Additionally, I chose a specific focus on the phone industry because I have always had slim pickings for which phones I can afford, but I always want the best one on the market. I use my phone a calendar, for texting, for pictures, for an alarm and for phone conversations to keep in touch with people all across the United States. It is my life! It has always been hard for me to go into the Verizon Wireless store when I know that there are phones that I like from other companies such as Sprint, AT&T, Cingular, etc. I also only upgrade when I am eligible for a free phone so I do not have the limitless options that many other people have. This is why it astonished me that so many people across the globe, and that I know personally totally gave up their service to buy the iPhone…even when they couldn’t afford it.
This is a great topic for my Customer Insights class because I have a limitless number of people to survey in my target market to better understand what they love about their electronics, what gets them to buy or upgrade, and why they chose the phone they did, especially if it is the iPhone. I also think it will be a good topic because the research and online articles about the electronic industry are plentiful. I will be able to find scholarly articles about technology without any trouble. I think that I will be able to reach the core of consumers beliefs.
I found lots of articles on the iPhone, but I chose to post this personal article (possibly a blog) http://searchengineland.com/apple-iphone-craze-a-search-volume-look-11569. It has some statistics on the demographics of people who have visited the iTunes website, who have searched the iPhone on search engines and other links to blogs and articles about this piece of technology. Although I am definitely going to take time to research on a more broader level of technology purchases, I think that this is a good start in showing the demographics of the iPhone purchasers. I can’t wait to find out more about my topic through thorough research. Maybe by the end of the paper I will have convinced myself to buy some sort of new technology. Who knows!
I chose this topic because my my electronics and my phone are a very important part of my life. I use my iPod almost everyday, if my laptop died it would also be the death of me, and my cell phone is my little security blanket. Also, this personal entertainment technology is an interesting topic because it has grown so much in the last fifteen year that, as consumers, we are still relatively unaware of why and how we should purchase the products that we do. For example, are we buying the new products because of word of mouth or a great marketing campaign? Or do we like the product itself or the affiliation to the brand? Or why do we need the newest product when something better is sure to come out if we wait? Also, are these consumers using online reviews and other forms of accessible technology to gain insight on these products? One technology’s ability to drive sales for another technological product is such a staple of how our generation works in deciding purchasing decisions. It is pretty amazing, really! Additionally, I chose a specific focus on the phone industry because I have always had slim pickings for which phones I can afford, but I always want the best one on the market. I use my phone a calendar, for texting, for pictures, for an alarm and for phone conversations to keep in touch with people all across the United States. It is my life! It has always been hard for me to go into the Verizon Wireless store when I know that there are phones that I like from other companies such as Sprint, AT&T, Cingular, etc. I also only upgrade when I am eligible for a free phone so I do not have the limitless options that many other people have. This is why it astonished me that so many people across the globe, and that I know personally totally gave up their service to buy the iPhone…even when they couldn’t afford it.
This is a great topic for my Customer Insights class because I have a limitless number of people to survey in my target market to better understand what they love about their electronics, what gets them to buy or upgrade, and why they chose the phone they did, especially if it is the iPhone. I also think it will be a good topic because the research and online articles about the electronic industry are plentiful. I will be able to find scholarly articles about technology without any trouble. I think that I will be able to reach the core of consumers beliefs.
I found lots of articles on the iPhone, but I chose to post this personal article (possibly a blog) http://searchengineland.com/apple-iphone-craze-a-search-volume-look-11569. It has some statistics on the demographics of people who have visited the iTunes website, who have searched the iPhone on search engines and other links to blogs and articles about this piece of technology. Although I am definitely going to take time to research on a more broader level of technology purchases, I think that this is a good start in showing the demographics of the iPhone purchasers. I can’t wait to find out more about my topic through thorough research. Maybe by the end of the paper I will have convinced myself to buy some sort of new technology. Who knows!
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