Features and…

December 3rd, 2010 • marketing (296)

In response to Evan Standerwick’s comment:

Also, even though the samsung Galaxy S has all the same features for the most part, I dont think that the perceived  value is the same as the iPhone. It appears to be another copy of the iPhone.

It is important to remember that the specific functionality of the device is only one dimension upon which people base their decisions/attitudes. You also need to look at the user experience, the quality, the post-purchase support, reliability, brand equity, exclusivity, originality, availability of add-ons/accessories, and about a million other criteria that people base their decisions on. Add into that mix other influences on the decision making process: social factors (reference groups, family), psychological factors (attitudes, lifestyle), situational factors (maybe to a lesser extent), and the marketing mix. These are not typically well represented on spec-sheets.

Consider all of these factors and I am sure you’ll see that, to the typical customer, these devices are more different than you might think.

What you can’t copy

November 17th, 2010 • marketing (296)

I’ve been thinking about this with regard to a business proposal project I am doing for Business Writing (COMM 486W).

My team members proposed introducing a unique food item from Japan. For the longest time, it seemed silly to me. So easy to copy, unoriginal. Does anyone remember the first establishment in Vancouver that started serving sushi? Does anyone care? No.

Yet they persisted. People will really like this food.

As I thought more about restaurants it occurred to me – for many it is not really about the food at all. Food is too easy to copy. Sure, good restaurants need to make good food, but I think (for the majority, not the true foodies) it only has to be good enough.

If you have ever read Outliers by Malcolm Gladwell, he wrote about how truly great violinists were only good enough, and once they passed a certain “talent” threshold what really separated them was practice. Similarly, Nobel Prize winners typically come from good schools, not the greatest schools as they only need to be “smart” (IQ wise) enough, and they win their Nobel Prizes with things like creativity.

So once you pass the “taste” threshold, it really comes down to the atmosphere, decor, service, location – the brand really. And that’s a lot harder to copy than a recipe.

Connections, part two

November 12th, 2010 • dee studio (486j), marketing (296)

As I continue to work on the Pulse/AMS project for the d-studio (486J) I’ve noticed a number of other marketing connections.

Our idea is basically an interface that informs you of the energy consequences of the food-related decisions you make in the Student Union Building (altering the shopping experience). Clearly anyone can use it right away, but what segment should we target as we introduce it?

As we are introducing something new, we need to first focus on the innovators: the sustainability-minded individuals that frequent the Student Union Building. Perhaps the same type of people who frequent Sprouts.

In order to accelerate diffusion to the early adopters and the majority, we need to ensure that the system we design is compatible, visible, easy to use, and provides some sort of advantage.

Going forward

Survey/focus group people in Sprouts in order to get feedback.

Go through our proposal so far in order to ensure it meets as many of the diffusion requirements as we can.

Drawing connections

October 26th, 2010 • dee studio (486j), marketing (296)

As the term progresses I keep seeing strong connections between 296 and the d-studio (486J). This became quite evident over the past few days, when I began considering our next project for the studio working with Pulse Energy, AMS Catering and the new SUB.

We have been given quite a bit of lee-way with defining the scope of our project, so in order to frame the project in my head I began to write, draw and color. I began with a question:

What does energy monitoring enable?

The way I see it, energy monitoring supplies information so that we may change our behaviour. Whose behaviour are we looking to change with this project? The Catering department’s, or its customers’? And what behaviour specifically?

Catering’s energy intensiveness seems to be determined by 3 things: the efficiency of their equipment, their processes and the types of food they prepare. The move to the new SUB means all new equipment, and they have been working to improve the efficiency of their processes for the move.  Of course, monitoring could help further improve Catering’s efficiency but it seems that Pulse has already developed, or is currently developing, many solutions for the business side of the equation.

For me, framing the problem around the consumer seems more open and interesting. The consumer determines what food is prepared by Catering, so if we can influence their purchasing behaviour we can lower energy consumption.

What determines their purchasing behaviour? Recall: Consumer behaviour.

1. Psychological factors (needs/motives, attitudes, lifestyle, learning, perception)

2. Social factors (family, reference groups)

3. Situational factors (purchase situation, shopping situation, temporal state)

4. Marketing mix (product, price, promotion, place)

The decision making process: Identify need -> Search for information -> Evaluate alternatives -> Purchase -> Post purchase

Where can Pulse monitoring fit in?

It seems obvious that by presenting information to consumers (while purchasing) would affect the shopping situation. Assuming the information is well presented, it could also affect the consumer’s temporal state, and their attitudes (particularly the cognitive, and perhaps the affective portions) through learning.

We can also assume that monitoring may affect price, as it provides Catering with more accurate cost information.

Further questions

What specifically does the decision making process look like for Catering’s segment? What type of information will resonate with them the most, and what is the best way to present it to them?

I’m a victim

October 18th, 2010 • 1 comment marketing (296)

I have never liked Diet Coke. My wife drinks it – she calls it DC.

But ever since Coke Zero came out, I’ve been a fan. “Wow, this really does taste like regular Coke,” I’d find myself thinking. And zero calories, what’s not to like?

When I’d drink one, I’d think to myself why they didn’t just get rid of Diet Coke altogether and replace it with this obviously superior blend. It must cost quite a bit to maintain three Coke products as ubiquitously as they do. It seems silly, I am sure if they tried it all the die-hard Diet Coke drinkers would be quite happy..

Until Thursday’s class when Tamar lets us know that Coke Zero is targeted at young males. The black can, the bold graphic, no “Diet” anywhere to be seen.

I’ve always thought of myself as impervious to such marketing ploys. When I found out, all I could do was laugh.

I wonder about all the primary research that goes into a release like this. Far more than surveys, I’d assume.

The new marketing department

October 12th, 2010 • marketing (296)

I’ve recently come across a blog written by a man named Scott Brinker, called Chief Marketing Technologist. It is a smart blog covering marketing and IT.

In a post titled “Scaling the new marketing organization” he offers up a useful piece of advice. Instead of dividing the “marketing work” in the marketing department by media (PR, social media, web, TV), region, or product line as is normal practice, separate it by audience segment.

Why? With complex organizational structures often the actions of a company do not seem unified from the customer’s eyes. We’ve all faced it, and it is a big problem.

So you dedicate a single team to each audience segment instead. That way you know you are presenting a single, unified front to each of your segments. Of course, this provides for a whole host of other advantages including: increased agility, more customer focus and more specific promotion for each segment.

Smart. And with recent technology advances, not so far-fetched.

The post is quite lengthy and detailed. I could not do it justice here. Highly recommended.

Image and Reality

October 1st, 2010 • marketing (296)

I’ve had lululemon on the brain for a while now. The company is the current focus of the trend analysis assignment for my Business Writing class, as well as the focus for my Marketing group.

The image

I found the following in the FAQ section of their website:

Who is your target market?

This one’s for all you students writing their research papers on us… hmm, target… what’s that? Well if you want us to spout that marketing jargon, we admit that we aim our clothing primarily at active women and men: individuals that work, play and share our vision of creating healthier, happier and more fun lives!

Very tongue-in-cheek. Marketing obviously plays a huge role in lululemon’s business strategy.

But nevermind that, what I find even more interesting here is who they’ve left out.

The reality

The NDP Group claims that only 63% of the yoga apparel sold in Canada during 2007 was worn for exercise. Compare that to 30% of lululemon’s apparel being used for yoga. Yes these statistics are old and not measuring precisely the same thing (exercise vs. yoga), but it illustrates the point I am trying to make: a lot of the people who shop at lululemon do not do so for participating in this active wellness airy-fairy lifestyle.

Obviously lululemon is aware and their marketing/creative team keeps them in mind when designing new products.

Not that they would admit it.

And they couldn’t. Why? No one would buy anything at that point.

For a lot of people I think lululemon is an indirect, aspirational reference group. You may not have the time or the resources to do yoga everyday and spend your days dancing, singing, traveling and flossing. You may desire that lifestyle, and so when you wear your lululemon pants you are that much closer to being a part of that group.

If they started admitting they cater to this audience though, they will lose the core: the direct social reference group. And without them, the indirect group is lost as well.

Image and reality.

Zappos! and the New Marketing

September 23rd, 2010 • marketing (296)

Zappos.com – superstar e-tailer acquired by Amazon last year for $1.2 billion.

Tony Hsieh, Zappos CEO, was recently interviewed by Guy Kawasaki. The entire interview is short and worth reading, but I found the following portions quite interesting:

What is the math behind the policy of two-way free and overnight shipping?

TH: Our philosophy is to take most of the money we would have spent on paid marketing or paid advertising and instead invest it into the customer experience, and let our customers do the marketing for us through word of mouth. We view the free shipping both ways and surprise upgrades to overnight shipping as our marketing costs.

Is customer service the new marketing?

TH: What’s new is that we are all hyperconnected and information travels much, much faster than before (through Twitter, blogs, etc.) So customer service stories, good or bad, tend to spread more quickly and therefore can have a much bigger effect on a company’s brand.

What role does the plain old telephone play in Zappos?

TH: We believe the telephone is one of the best branding devices out there. We have the customer’s undivided attention for 5-10 minutes—compare that with a 30-second Super Bowl ad when the viewers are probably not paying full attention. If we get the interaction right, what we’ve found is that customers remember that for a very long time and tell their friends and family about us.

Consumers have seen every type of ad campaign, they’re being “sold to” nearly non-stop from when they wake up to when they go to sleep. Zappos’ approach is refreshing in that they are not “selling” to customers – there is no ad campaign, no commercials or gimmicks.

Here is a company that is choosing wisely the channels through which it communicates with its customers – and is owning them. Their focus is to deliver quality, value and a great experience – and that is something remarkable people want to talk about. The virility is built in, and there has never been an easier time for these stories to spread than now.

Those students with the preconception that marketing is all about manipulation and advertising should be relieved. This is exactly the type of value-based marketing the smart companies are moving toward, and quickly.

On a personal note, unfortunately Zappos did not at all deliver on their dedication to service when I placed my first order with them recently. In fact, the entire experience was quite terrible.

Consistency counts.