March 2013 – Nicole's BLOG in Sauder

Customers’ Needs & Wants vs. Innovations

On March 14^th, Samsung launched its latest mobile phone model, Galaxy S4. Many technological innovations have been made in it, including new camera function, message translator and eye-tracking. With eye-tracking, customers will be able to pause a video by moving eyes away from the screen, and to scroll down an email or text by just looking down to the screen. The innovative function of Galaxy S4 has drawn much attention from the public.

Marketers believe that those innovations could help Galaxy S4 stand out. However, will customers really need these fancy functions? IPhone 4 achieved a remarkable success, partially because its innovations really benefited customers by presenting them with convenience and new experiences. No doubt, the multi-touch screen, millions of apps and advanced operating system all rendered the phone more handy and interesting. But, will the customers appreciate Samsung’s innovations this time?

Marketers are sure that customers will love innovations if they need them. This belief is based on an assumption that customers are rational. But, customers do not buy products for needs, especially for youth, who keep changing phones in order to follow the latest trend. Obviously, it is more about “want” rather than “need”.

In this regard, Samsung has secured at least a part of the market by keeping itself abreast of the fashion. As for those who care about “need” more than “want”—the majority of customers, Samsung has to persuade them that the innovations are actually practical and useful. If someone else stares at my phone screen from behind and hence triggers a pause to the video I am watching, I certainly will be pissed off and may switch off the ‘fancy’ function right away. So, despite creative and innovative functions are indispensable parts of a promising product, usefulness and convenience should never be overlooked.

Standing Out in the Crowd — a review of a peer’s blog

In her blog “Products! Products! Products!”, Alexandra Marynczak indicates, “How a product is perceived and classified can be almost entirely dependent on how it is marketed. Marketers hold tremendous power!”. It is vital for a product to differentiate itself from its competitors in the market. And this difference should meet demands of the target group.

Alexandra mentions two examples. One is Toyota’s minivan, and the other is Born 3 egg, a type of eggs with omega 3. Both products distinguish themselves very well from others to meet the customers’ special needs. Toyota’s video captures young urban couple by satisfying both their family and personal demands. Born 3 egg renders itself special by adding extra nutrition ingredients, so it gains popularity among people who are seeking healthy lifestyle.

A product’s targeting strategy should concern not only its customers’ demands, but also the company’s general image as well. For example, if Channel launches a new handbag with colourful cartoon in an effort to distinguish itself from other luxury brands, it may well turn out to be a market failure. This is because cartoon with bright colours deviates too far from the general image of the brand, which is supposedly classic and elegant. Moreover, Channel’s target market is high-income women, such as businesswomen, celebrities and politician. It is not an attractive design for them probably.

To sum up, in order to gain larger market share in a competitive market, it is essential to have distinctive advantages over other competing products. In order to achieve this, however, customer’s needs, as well as, the company’s general image should be taken into account as well.