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!
Sunday, February 22, 2009
Monday, February 16, 2009
Segmentation at its best
I found the perfect article about segmentation that relates to our class. Cha Ching! It is an article from the New York Times Web site titled “Disney Aims for the Boy Audience With a Cable Channel and a Web Site.” The article is based around Disney’s new cable channel, Disney XD, and new Web Site that launched Friday, February 13th, 2009. Their specific target market is boys ages six to fourteen who are into video games, sports, and television. Disney stated that their success with the movie “Cars” opened their eyes to the youthful male segment. This segment has potential spending power of $50 billion dollars globally that can and should be utilized. Additionally, this expansion into the world of boys is smart and strategic on Disney’s part because there is a clear gap in the market for teen male entertainment. The article mentions that Nickelodeon and Cartoon Network have successfully reached out to this segment. Research shows that 40% of Disney’s viewers are male, so they are hoping to hit this market with a big bang and large influence in 2009.
According to the article, Disney is going to “offer action-adventure programs and youth-oriented sports news provided by ESPN (which is owned by Disney) and a Web site offering games, music and social networking tools.” The music that they use throughout the launch is going to be not only from Disney’s internal label, but from artists across many decades in order to attract kids and their dads. Disney feels that if the dads of this youthful segment can relate to Disney XD, that the kids will have an exponentially higher attraction to the brand as well.
I thought that this article was interesting because we just finished talking about segmentation in class, especially in our group project target market choices. One of the segments that a group chose is the male youth, specifically middle school and high school. This group’s in-depth description about youthful boys is very applicable to the research and assumptions that I’m sure Disney is attempting to analyze, understand, and embrace with their new campaign and launch of Disney XD. I think their new television channel and interactive Web site will be very successful in targeting this market because young boys find value in being independent of girls, and being viewed as tough-guys. Also, if these shows catch on, their popularity will spread like wildfire because when something is considered cool among peers in this segment, then everyone within this segment thinks it’s the best thing that has ever happened in their little world!
For Disney to correctly segment and market to six to14 year old boys, they need to understand what TV plots and story lines interest this group. The article tells us that the first show that they expect to make it big is “Aaron Stone.” It is a live-action program about a boy who leads a secret double life as a crime fighter. The other new series is a comedy called “Zeke and Luther” that contains two boys who are trying to become world-famous skateboarders. “Phineas and Ferb,” a show that is already on the Disney Channel is going to be moved to Disney XD. This will hopefully help loyal watchers of this TV show to transition right on over to Disney XD without any road blocks.
The way I see it, if Disney can find a way to create a male Hannah Montana then they have success in the bag. He doesn’t need to be a rock star, or even a musician. What he does need to be is relational, applicable to their lives and somewhat of a hero to these boys who are growing, confused, and looking for fun. I think Disney can do it; they always find a way to a kids’ heart. Or at least they found their way to mine!
According to the article, Disney is going to “offer action-adventure programs and youth-oriented sports news provided by ESPN (which is owned by Disney) and a Web site offering games, music and social networking tools.” The music that they use throughout the launch is going to be not only from Disney’s internal label, but from artists across many decades in order to attract kids and their dads. Disney feels that if the dads of this youthful segment can relate to Disney XD, that the kids will have an exponentially higher attraction to the brand as well.
I thought that this article was interesting because we just finished talking about segmentation in class, especially in our group project target market choices. One of the segments that a group chose is the male youth, specifically middle school and high school. This group’s in-depth description about youthful boys is very applicable to the research and assumptions that I’m sure Disney is attempting to analyze, understand, and embrace with their new campaign and launch of Disney XD. I think their new television channel and interactive Web site will be very successful in targeting this market because young boys find value in being independent of girls, and being viewed as tough-guys. Also, if these shows catch on, their popularity will spread like wildfire because when something is considered cool among peers in this segment, then everyone within this segment thinks it’s the best thing that has ever happened in their little world!
For Disney to correctly segment and market to six to14 year old boys, they need to understand what TV plots and story lines interest this group. The article tells us that the first show that they expect to make it big is “Aaron Stone.” It is a live-action program about a boy who leads a secret double life as a crime fighter. The other new series is a comedy called “Zeke and Luther” that contains two boys who are trying to become world-famous skateboarders. “Phineas and Ferb,” a show that is already on the Disney Channel is going to be moved to Disney XD. This will hopefully help loyal watchers of this TV show to transition right on over to Disney XD without any road blocks.
The way I see it, if Disney can find a way to create a male Hannah Montana then they have success in the bag. He doesn’t need to be a rock star, or even a musician. What he does need to be is relational, applicable to their lives and somewhat of a hero to these boys who are growing, confused, and looking for fun. I think Disney can do it; they always find a way to a kids’ heart. Or at least they found their way to mine!
Tuesday, February 3, 2009
Paradox of Choice
Barry Schwartz’s speech titled “Paradox of Choice” provided many insights about how our Western society has changed throughout the last 100 years. I want to start off saying that I deeply agree with his theory, having been a victim and an observer of the choice phenomenon. To provide a basis for those who have not listened to the podcast, Barry believes that the Western Hemisphere and its people (that’s us!) have been on an endless pursuit to maximize our freedom. This ideal has helped achieve many positive social and civil rights movements, led to industrialization, capitalism, and ultimately freedom of choice. How can we complain?
But we are and with good reason. The consequence of increased freedom is excessive choice which causes increased disappointment with our choices and ourselves. Obviously there are good things that come from increased choice such as efficiency, driving the weaker competitors out of the market, and the possibility of finding a better product that fits you or your family (even if its not until the second try…or sixth.) Barry says that the negative effect of an overwhelming number of choices is that it “produces paralysis instead of liberation.” We are no longer able to make a quick and easy decision.
This actually happened to me this past week when I was instructed to go pick up some more dog food for my boss’s dog. I’m not sure if it was idiotic of me not to ask what kind she wanted but really, who would have known all of my choices! There were literally 12 different brands each containing about nine different categories of food. Science Diet Sensitive Stomach. Blue Buffalo Large Breed Dog Food. Pedigree plus Healthy Heart. Nutro Max Beef and Rice Dog Food. Purina Pro Plan Shredded Blends (what does that even mean?)… And the list goes on and on. Finally, after scanning the isle for literally thirty minutes grabbing one bag and putting it down to grab another that I would soon be equally disappointed with I began to realize that it was just a dog. But then again, it was my boss’s dog and I did not want to disappoint my financial benefactor. Ultimately, I made my decision only to wonder if it was the “correct” one. The point is not whether the dog liked the food, which he does because he seems to be enjoying it just fine; the point is that it shouldn’t have been that hard or taken that long. I shouldn’t have been that disappointed in myself for possibly purchasing the wrong brand of dog food.
Secondly, he says that increased choices lead to escalation of expectations, only to be let down in the end. I disagree. I believe that increased choice can and may lead to the ideal of perfectionism and disillusionment but that this is not the case most of the time, especially if you know exactly what you want. With increased options we are given not only options from one designer, brand, store, boutique or mall but of a wide variety and assortment of them. The key is patience in shopping and diligence in making sure you find the product that best fits you. It may be a girl thing but I enjoy my pursuit to find what purchase will make me the most fulfilled. The problem arises when the consumer has a money constraint. For example, this Christmas I really wanted tall brown boots. I knew exactly what I wanted them to look like and after searching many stores, I found them! If I were able to afford the boots, I do not feel that I would have had any buyer’s remorse or feelings of discontent. I ended up buying cheaper boots that were also satisfactory to me. My problem was the money constraint, not my escalation of expectations.
The paradox of choice is all that our generation has grown up with. In a way, I think that our generation relishes in the fact that choice is available. We may handle it better than our parents can because we have grown up being inundated with marketing, products and choice. On the other hand, maybe I am too young to understand or not old enough to be tarnished by the phenomenon yet. Time will tell my friends, time will tell.
But we are and with good reason. The consequence of increased freedom is excessive choice which causes increased disappointment with our choices and ourselves. Obviously there are good things that come from increased choice such as efficiency, driving the weaker competitors out of the market, and the possibility of finding a better product that fits you or your family (even if its not until the second try…or sixth.) Barry says that the negative effect of an overwhelming number of choices is that it “produces paralysis instead of liberation.” We are no longer able to make a quick and easy decision.
This actually happened to me this past week when I was instructed to go pick up some more dog food for my boss’s dog. I’m not sure if it was idiotic of me not to ask what kind she wanted but really, who would have known all of my choices! There were literally 12 different brands each containing about nine different categories of food. Science Diet Sensitive Stomach. Blue Buffalo Large Breed Dog Food. Pedigree plus Healthy Heart. Nutro Max Beef and Rice Dog Food. Purina Pro Plan Shredded Blends (what does that even mean?)… And the list goes on and on. Finally, after scanning the isle for literally thirty minutes grabbing one bag and putting it down to grab another that I would soon be equally disappointed with I began to realize that it was just a dog. But then again, it was my boss’s dog and I did not want to disappoint my financial benefactor. Ultimately, I made my decision only to wonder if it was the “correct” one. The point is not whether the dog liked the food, which he does because he seems to be enjoying it just fine; the point is that it shouldn’t have been that hard or taken that long. I shouldn’t have been that disappointed in myself for possibly purchasing the wrong brand of dog food.
Secondly, he says that increased choices lead to escalation of expectations, only to be let down in the end. I disagree. I believe that increased choice can and may lead to the ideal of perfectionism and disillusionment but that this is not the case most of the time, especially if you know exactly what you want. With increased options we are given not only options from one designer, brand, store, boutique or mall but of a wide variety and assortment of them. The key is patience in shopping and diligence in making sure you find the product that best fits you. It may be a girl thing but I enjoy my pursuit to find what purchase will make me the most fulfilled. The problem arises when the consumer has a money constraint. For example, this Christmas I really wanted tall brown boots. I knew exactly what I wanted them to look like and after searching many stores, I found them! If I were able to afford the boots, I do not feel that I would have had any buyer’s remorse or feelings of discontent. I ended up buying cheaper boots that were also satisfactory to me. My problem was the money constraint, not my escalation of expectations.
The paradox of choice is all that our generation has grown up with. In a way, I think that our generation relishes in the fact that choice is available. We may handle it better than our parents can because we have grown up being inundated with marketing, products and choice. On the other hand, maybe I am too young to understand or not old enough to be tarnished by the phenomenon yet. Time will tell my friends, time will tell.
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