One concept that I definitely got a better grasp on through the group project is the process of hypotheses to research to gaining insights to developing the product. I always knew that marketing research went into product development, but I did not realize it was such an involved process. I always thought that if you had an idea that you thought would appeal to a certain group, you would just design it and put it out on the market and hope for the best. I was not aware of the involved process and I was also not aware of the fact that sometimes you are able to start from scratch and end up with a product that really matches the needs of a particular group. When we began our project, we were not even thinking of a product, we were just trying to better understand our segment. Once we got to know our segment through research, we were better equipped to make some conclusions on their needs, wants, and desires. I have always been interested in product development and I now know all the steps that are involved. This in depth process was really interesting to me and the class and the project gave me some great exposure to this concept.
Another main idea that I now understand better as a result of our group project is the idea of prototyping. The guest speaker gave me the initial understanding of this, as I was mostly in the dark about this step in the development process before. Our group realized that it was one thing to come up with an idea, but completely another to bring it to life. We struggled at first (as I am sure many groups did) with what material to make our product out of, what size to make it, what type of packaging to put it in, what types of colors to use, and all the other aspects that make up the actual product. Once we came up with our idea and the idea for our prototype, there were still many hurdles to overcome. Our initial plan did not work out, and we had to keep tweaking our design to make it practical. This creating and troubleshooting of the prototype was a very valuable step in the whole project because it really made you think through every aspect of your product.
My emotional reactions to the project really went in three phases. In the first phase, I was extremely optimistic and hopeful about the project. I was excited to start gathering information about my segment. I was a little unsure of the instructions, and how it would all shape up but I was really hopeful and thought the process would be smooth. The second phase was a phase of frustration beginning with our research and continuing in designing our product. We had a lot of trouble gathering research because our segment was kind of hard to reach. This was frustrating because we wanted to have a lot of research and do a good job, but this was a hurdle we had to overcome. Also, when we began to develop our product idea and prototype, we all had different opinions and different ways to go about it. Although different opinions are great for balancing out differing personalities and backgrounds, it causes the process to become a little lengthier. With our conflicting view points, we all got a little frustrated because we all wanted to move forward but we had to work through some details to end up with something everything supported. In my third phase, we were finished with our project and we had a sense of accomplishment. Our frustration turned into satisfaction. We were all content with how our project and prototype turned out and we felt like we did a good job. I think the emotional experiences associated with the project and my group did contribute to my learning of the material because I think my emotional phases are very similar to the emotional phases that marketers experience in the real world. This way of gathering insights through research and then designing a product to match the findings seems like it would provoke these types of emotions.
Tuesday, May 5, 2009
Monday, April 20, 2009
My Take on "Watching Trends"
For my blog critique, I chose to examine a blog on trendwatching.com entitled, “Half a Dozen Consumer Trends for 2009.” I was initially drawn to this blog because I enjoy watching consumer trends and I wanted to see what this blog had to say about the current trends in the marketplace. Some seem pretty straight forward and others seem to be more obscure, but they were all trends none the less.
The first trend the author mentions is “Nichetributes,” which are additions to existing products that make them more appealing to certain niche groups. These refer mainly to practical adaptations to existing products to make them more in sync with the changing marketplace. One example given is a new pair of gloves that have metal tips on the fingers that you can use with your iPhone or any other touch screen device in cold weather. While I agree with the author that these adaptations are necessary, nifty, and very common these days, I hardly think it is a trend. I think that these innovations are happening constantly and have throughout history. Successful new product innovations are what drive entrepreneurs to keep thinking and designing, and although this is notable today, I hardly think it is just a trend in 2009 that will fade away. I feel confidant that as the market evolves and more and more products are introduced, revolutionary complimentary products will continue to be introduced.
Another trend mentioned in this blog is the trend of “Econcierges,” or firms and services that consult households to help them “go green.” The trend of going green seems to be especially strong right now but the reasoning seems to be hardly environmental. The recent economy crisis has caused households and businesses to cut back in many areas, and saving energy, water, and reusing goods all seem to be in line with this goal. I agree with the author that these new green consulting services are definitely a new trend. I also believe that the sudden rise in consumer awareness of their consumption is more a product of their desire to save money and less a product of their desire to protect the planet.
The final trend mentioned in the Trend Watching blog is one called “Happy Ending” and talks about “the silver lining of each downturn.” The blog goes on to discuss how 2009 is the time to show customers that your company really does care. As consumers get back to basics and try to discover what really matters to them, several opportunities arise for innovation and creativity. The author gives some advice how to apply this trend. I think the advice he gives is really valid because although the recession is causing some major changes in the workforce and the marketplace, there is definitely opportunity to be found. The author suggests shaping your company’s vision, looking for new business concepts for the masses or for a particular segment, and also focusing on the customers that are already living a trend. All these things can allow for a “silver lining” in the current downturn and I am excited to see what new innovations come out of 2009!
I enjoyed reading this blog and thinking about all the trends mentioned. There were definitely a few trends that I had noticed myself and some that were completely unfamiliar to me. Trend watching is a fascinating yet difficult and unpredictable area of study. Some trends are predicted and some are completely random. I thought it was interesting to see what the author of this blog had picked up on.
The first trend the author mentions is “Nichetributes,” which are additions to existing products that make them more appealing to certain niche groups. These refer mainly to practical adaptations to existing products to make them more in sync with the changing marketplace. One example given is a new pair of gloves that have metal tips on the fingers that you can use with your iPhone or any other touch screen device in cold weather. While I agree with the author that these adaptations are necessary, nifty, and very common these days, I hardly think it is a trend. I think that these innovations are happening constantly and have throughout history. Successful new product innovations are what drive entrepreneurs to keep thinking and designing, and although this is notable today, I hardly think it is just a trend in 2009 that will fade away. I feel confidant that as the market evolves and more and more products are introduced, revolutionary complimentary products will continue to be introduced.
Another trend mentioned in this blog is the trend of “Econcierges,” or firms and services that consult households to help them “go green.” The trend of going green seems to be especially strong right now but the reasoning seems to be hardly environmental. The recent economy crisis has caused households and businesses to cut back in many areas, and saving energy, water, and reusing goods all seem to be in line with this goal. I agree with the author that these new green consulting services are definitely a new trend. I also believe that the sudden rise in consumer awareness of their consumption is more a product of their desire to save money and less a product of their desire to protect the planet.
The final trend mentioned in the Trend Watching blog is one called “Happy Ending” and talks about “the silver lining of each downturn.” The blog goes on to discuss how 2009 is the time to show customers that your company really does care. As consumers get back to basics and try to discover what really matters to them, several opportunities arise for innovation and creativity. The author gives some advice how to apply this trend. I think the advice he gives is really valid because although the recession is causing some major changes in the workforce and the marketplace, there is definitely opportunity to be found. The author suggests shaping your company’s vision, looking for new business concepts for the masses or for a particular segment, and also focusing on the customers that are already living a trend. All these things can allow for a “silver lining” in the current downturn and I am excited to see what new innovations come out of 2009!
I enjoyed reading this blog and thinking about all the trends mentioned. There were definitely a few trends that I had noticed myself and some that were completely unfamiliar to me. Trend watching is a fascinating yet difficult and unpredictable area of study. Some trends are predicted and some are completely random. I thought it was interesting to see what the author of this blog had picked up on.
Tuesday, April 7, 2009
Nintendo Wii Paper Outline
MKT 372 Paper Outline: Nintendo Wii
Revolutionary, striking, interactive, sleek, innovative, all embracing, brilliant, and fun—these are all words that describe today’s hottest selling video gaming system: the Nintendo Wii. A not-so-radical but ground-breaking idea turned into a product that would fly off the shelves across the world, change the video gaming industry significantly, and revamp Nintendo by putting them ahead of their competitors and back on the map. How did they do it? How did Nintendo combine simplicity and innovativeness to appeal to the widespread consumer? What were the implications for Nintendo and what does the future of the video game industry look like?
Thesis statement: The development of the Nintendo Wii concept, its promotions, and the unique product offerings by Nintendo truly saved the Nintendo company with the Wii’s overwhelming success, but Nintendo must continue to use customer insights to stay ahead of the competition and continue to offer innovative products in an evolving marketplace.
Development: From Idea to Actuality
1. The ideas behind Wii
a. After the introduction of the GameCube in 2001, Nintendo designers went to work on a new project they code named “Revolution.” After the success of the DS, they wanted to design a gaming system that was different from that of their competitors (Big Ideas). They wanted to design something that would have great potential for new products and games, they wanted something that would sell, and they wanted something that would be affordable. The designers kept these insights in mind as they went to work on Nintendo’s newest project. There will still a lot of questions to be answered but their wheels were turning.
2. The controller
a. The controller of the Wii was definitely a distinction point from other game systems. The Wii controller, “Wiimote,” is wireless and uses motion sensing technology to track the motions of the players. This allows players to swing the controller like a tennis racket, use it to simulate rolling a bowling bowl down a bowling lane, or be able to sense motions of a player in a virtual boxing match (Nintendo website).
b. The Wiimote can sense both rotational orientation and translational acceleration along three dimensional axes using infrared technology (Using a Mobile Phone). The unique design of the controller allows for great creativity and new possibilities in game creation.
3. Keeping price in mind
a. When developing Nintendo Wii, one serious consideration was the price point. Nintendo wanted Wii to be affordable, and more importantly it wanted it to be cheaper than Sony Playstation or Xbox 360. It was difficult for the developers to create the product at first with such a low price point (Big Ideas).
b. By looking at insights, they thought that a low priced console was very important. Their original goal was to create a console that would cost under $100 but this was an impossible task. By designing the product based on the price they thought they could sell it at, they were more likely to have success (Big Ideas).
4. Keeping moms in mind
a. One insight that was a major factor to Nintendo developers from the start was the moms. In an interview about the development of the Wii, developer Miyamoto says, “[W]e knew we would get nowhere if we didn’t get mom’s approval. So we thought about what might convince moms to buy this for their kids. When that happened, we talked about basic concepts and goals, not about the technical specifications of the console. This was the Wii’s first major step.”
b. When the designers began to focus on what would please the moms of the gamers, the Wii design began to take shape. This is when the major differentiations between traditional video game systems and the Nintendo Wii came about. The interactive design began to take shape and the concept of the Wii began to become a reality (Big Ideas).
c. Other features that designers incorporated to please the mothers were ease of use, quick start up, quiet while running, and universal for all Nintendo games (Big Ideas).
Points of Differentiation
1. Wii for Everyone: Appealing to non-gamers
a. The gaming industry typically has potential customers of two types: hardcore gamers and casual gamers. The hardcore gamers are most likely to buy several games, play for long periods of time, and be loyal gamers for a long period of time in their life. For these reasons, game companies have always spent the majority of their efforts targeting hardcore gamers (Using a Mobile Phone). Nintendo realized that in only targeting hardcore gamers, they were neglecting several segments of potential players. Wii was designed to appeal to adults, children, moms, casual gamers, first time players, and anyone who picked up a Wiimote.
b. One of the most common points of difference between Wii and other game systems like PlayStation or XBox is the idea that people who are not traditional “gamers” can have a good time playing Wii. You do not need any prior video game knowledge or skill and since the games are so interactive, they encourage the whole family to get up and try it. While most video games are getting more complex with sophisticated graphics and convoluted levels, the fresh approach of Wii seems to really be working. It seems that there was a market for non-typical game players to appreciate interactive digital entertainment.
c. “To truly understand how Wii revolutionizes gaming, you have to try it for yourself. Quite simply, Wii is for everyone. The ease of use and interactivity of the Wii Remote and Nunchuk allows for a unique social gaming experience for the whole family. You don't just play Wii, you experience it.” –Wii website March 2009
2. Active factor
a. In the United States, there is a growing obesity trend, especially in children. Some argue that video games and television are to blame for this trend. The Nintendo Wii combats some of these accusations by making its games more active. You must physically move the Wii remote to engage in the games so you are not simply sitting on the couch. This idea of interactivity in video games has proven to be successful for Dance Dance Revolution and other active video games. In a blog about social sciences, Amy Hillier argues that technology (for example, Nintendo Wii) could be a way to fight childhood obesity rather than cause it (Can Technology).
b. To further capitalize on the idea that Wii is interactive and good for your health, Nintendo introduced the Wii Fit which is an accessory for the original Wii. The Wii Fit has players engage in fun physical challenges like yoga and hula hooping as a way to exercise inside your home. The Wii Fit uses a board that measures your weight, balance, and movements to asses your body mass index and your overall fitness level. As you continue to work out with the Wii Fit, your fitness level should improve giving you measurable results of your progress (Nintendo website). The Wii Fit was designed based on the insight that people needed alternatives to traditional exercise. Introducing Wii Fit was a good way to extend the possibilities of the Wii technology and allow yet another point of differentiation against competitors.
c. By capitalizing on the fitness conscious market and showing parents that Wii is better for their child’s health than traditional video games, Nintendo is able to sell even more systems. Wii realized the insight that there is a growing obesity trend in America and used this as a sales point for their gaming system.
3. Mii characters: Appealing to consumers because of the personalization factor
a. Another thing Nintendo did to appeal to the consumer was the introduction of the Mii characters. The Mii characters provide a way for players to customize the game to them. When consumers feel that they have an invested interest in the product, or feel that it exemplifies them in some way, they are overall more satisfied with the product (source). By allowing players to personalize their characters, Nintendo hit on another valuable consumer insight.
Wii’s Success
1. Nintendo Wii has proven to be a huge success
a. During the 2007 holiday season, the Nintendo Wii was the most sought after gift (Brandweek). It flew off the shelves causing supply issues for Nintendo.
b. Beginning at the 2007 holiday season and continuing to October 2007, Nintendo Wii sales are far greater than that of Sony Playstation and Xbox. Although US retail sales declined in 2008, the video game industry seemed to be immune, especially the Wii. In October 2008, the Wii sold 803,000 units while Xbox and Playstation 3 sold 371,000 units and 190 units respectively (Twice).
c. This paragraph should be information on market cap for Nintendo before and after Wii, financial information, etc.
2. How Wii saved Nintendo
a. The DS followed by the Wii truly put Nintendo back on the map. It had been over ten years since the launch of Nintendo 64 and Game Boy and Nintendo desperately needed a new product offering to bring them back on top. The Wii was innovative and unique enough that it was the product to do just this.
b. Nintendo was in danger of not being able to compete with gaming giants Sony and Microsoft. (Find more research on this). Without the launch of Nintendo Wii, Nintendo may have been damaged beyond repair.
c. Because of the uniqueness of Nintendo Wii, there is a huge growth potential for Nintendo. Complimentary product offerings are a possibility, as well as new technologies that incorporate the Wii into their design. Nintendo has come up with such a one of the kind approach to gaming and has truly revolutionized the way video games are played. It is important for them to continue to innovate and remain a company that will deliver revolutionary games.
The future of Wii
1. Keeping Wii on top
a. Because Wii was such a smash hit, some worry that it may be a passing fad. Video gamers are always looking for the next big thing and although now that is the Nintendo Wii, next year it could be something completely different.
2. Advances by competitors
a. Significant efforts have been made by Sony and Microsoft to also reach “non-gamers.” These competitors are hoping to integrate their consoles into the home entertainment sphere by adding features that will allow consumers to download music and movies using their gaming systems (Wii are the Champions?).
b. Since Microsoft first made downloadable content available on their Xbox Live Marketplace, the company has seen a 400% increase in downloads (Wii are the Champions?). If consumers enjoy these features, Nintendo will lose customers. Also, if Sony and Microsoft succeed in making their consoles integral parts of home entertainment systems, consumers will be very unlikely to switch game systems.
c. Nintendo must do something to stay competitive.
3. New efforts by Nintendo
a. Nintendo has succeeded in creating a line of accessory products that complement the Wii such as the Wii Fit pad and Connect 24 (Nintendo website). These products enhance the Wii experience and encourage Wii players to keep playing.
b. Nintendo has plans to launch a new TV channel in Japan, Wiinoma. The channel will feature on-demand programming (some free, some pay-per-view) that will include cartoons, educational shows, and lifetime shows (The Download). Nintendo hopes to generate a great deal of ad revenue from its Wiinoma and hopes to encourage Wii users to continue to hold on to the Wii.
My Recommendations
1. Keep gaining insights
a. The reason the Wii was so successful is that designers looked at customer insights to design a product that would be unique and would appeal to its target audience as well as people making the purchase decisions (moms). It is important for Nintendo to continue gaining insights and looking at trends to uncover opportunities for new products.
b. Not only should Nintendo look at trends and opportunities in the video game industry, but they should look at trends in other industries to gain further insights. Looking at other industries will give them ideas on consumer preferences, spending habits, and other important pieces of information.
2. Make Wii stick
a. Nintendo should try and integrate the Wii into other things so that people are less likely to switch. They are on the right track with the TV channel, but the possibilities are endless. They could make educational programs for Wii, entertainment accessories for Wii, or they could even incorporate the Wii into the home with controls for lighting, fans, or security features. I can just picture it: the Wii baby monitor.
b. They should design more gaming accessories for Wii. The Wii Fit Pad is a good example of this but I am positive they can take it much further. The more accessories they sell, the longer people will remain interested in Wii.
3. Keep being innovative
a. Nintendo should strive to become the Apple of the gaming industry. If they keep coming out with new and different products, people will start to associate the Nintendo brand with innovation. Once this occurs, technology junkies and sophisticated consumers will get in the habit of looking at Nintendo for the hottest new thing.
4. Appeal to girls
a. One place I think the video gaming industry is lacking is product offerings for girls. Although the Wii appeals to both genders, there are few video games exclusively for girls. I think Nintendo is missing out on a huge market segment by not creating girl friendly games.
b. Elaborate on this
CONCLUSION
Questions:
Is my thesis statement okay?
Do I have enough references to insights?
Are my recommedations okay? Are there enough?
Do I need to add a section about Nintendo's current financial state?
Revolutionary, striking, interactive, sleek, innovative, all embracing, brilliant, and fun—these are all words that describe today’s hottest selling video gaming system: the Nintendo Wii. A not-so-radical but ground-breaking idea turned into a product that would fly off the shelves across the world, change the video gaming industry significantly, and revamp Nintendo by putting them ahead of their competitors and back on the map. How did they do it? How did Nintendo combine simplicity and innovativeness to appeal to the widespread consumer? What were the implications for Nintendo and what does the future of the video game industry look like?
Thesis statement: The development of the Nintendo Wii concept, its promotions, and the unique product offerings by Nintendo truly saved the Nintendo company with the Wii’s overwhelming success, but Nintendo must continue to use customer insights to stay ahead of the competition and continue to offer innovative products in an evolving marketplace.
Development: From Idea to Actuality
1. The ideas behind Wii
a. After the introduction of the GameCube in 2001, Nintendo designers went to work on a new project they code named “Revolution.” After the success of the DS, they wanted to design a gaming system that was different from that of their competitors (Big Ideas). They wanted to design something that would have great potential for new products and games, they wanted something that would sell, and they wanted something that would be affordable. The designers kept these insights in mind as they went to work on Nintendo’s newest project. There will still a lot of questions to be answered but their wheels were turning.
2. The controller
a. The controller of the Wii was definitely a distinction point from other game systems. The Wii controller, “Wiimote,” is wireless and uses motion sensing technology to track the motions of the players. This allows players to swing the controller like a tennis racket, use it to simulate rolling a bowling bowl down a bowling lane, or be able to sense motions of a player in a virtual boxing match (Nintendo website).
b. The Wiimote can sense both rotational orientation and translational acceleration along three dimensional axes using infrared technology (Using a Mobile Phone). The unique design of the controller allows for great creativity and new possibilities in game creation.
3. Keeping price in mind
a. When developing Nintendo Wii, one serious consideration was the price point. Nintendo wanted Wii to be affordable, and more importantly it wanted it to be cheaper than Sony Playstation or Xbox 360. It was difficult for the developers to create the product at first with such a low price point (Big Ideas).
b. By looking at insights, they thought that a low priced console was very important. Their original goal was to create a console that would cost under $100 but this was an impossible task. By designing the product based on the price they thought they could sell it at, they were more likely to have success (Big Ideas).
4. Keeping moms in mind
a. One insight that was a major factor to Nintendo developers from the start was the moms. In an interview about the development of the Wii, developer Miyamoto says, “[W]e knew we would get nowhere if we didn’t get mom’s approval. So we thought about what might convince moms to buy this for their kids. When that happened, we talked about basic concepts and goals, not about the technical specifications of the console. This was the Wii’s first major step.”
b. When the designers began to focus on what would please the moms of the gamers, the Wii design began to take shape. This is when the major differentiations between traditional video game systems and the Nintendo Wii came about. The interactive design began to take shape and the concept of the Wii began to become a reality (Big Ideas).
c. Other features that designers incorporated to please the mothers were ease of use, quick start up, quiet while running, and universal for all Nintendo games (Big Ideas).
Points of Differentiation
1. Wii for Everyone: Appealing to non-gamers
a. The gaming industry typically has potential customers of two types: hardcore gamers and casual gamers. The hardcore gamers are most likely to buy several games, play for long periods of time, and be loyal gamers for a long period of time in their life. For these reasons, game companies have always spent the majority of their efforts targeting hardcore gamers (Using a Mobile Phone). Nintendo realized that in only targeting hardcore gamers, they were neglecting several segments of potential players. Wii was designed to appeal to adults, children, moms, casual gamers, first time players, and anyone who picked up a Wiimote.
b. One of the most common points of difference between Wii and other game systems like PlayStation or XBox is the idea that people who are not traditional “gamers” can have a good time playing Wii. You do not need any prior video game knowledge or skill and since the games are so interactive, they encourage the whole family to get up and try it. While most video games are getting more complex with sophisticated graphics and convoluted levels, the fresh approach of Wii seems to really be working. It seems that there was a market for non-typical game players to appreciate interactive digital entertainment.
c. “To truly understand how Wii revolutionizes gaming, you have to try it for yourself. Quite simply, Wii is for everyone. The ease of use and interactivity of the Wii Remote and Nunchuk allows for a unique social gaming experience for the whole family. You don't just play Wii, you experience it.” –Wii website March 2009
2. Active factor
a. In the United States, there is a growing obesity trend, especially in children. Some argue that video games and television are to blame for this trend. The Nintendo Wii combats some of these accusations by making its games more active. You must physically move the Wii remote to engage in the games so you are not simply sitting on the couch. This idea of interactivity in video games has proven to be successful for Dance Dance Revolution and other active video games. In a blog about social sciences, Amy Hillier argues that technology (for example, Nintendo Wii) could be a way to fight childhood obesity rather than cause it (Can Technology).
b. To further capitalize on the idea that Wii is interactive and good for your health, Nintendo introduced the Wii Fit which is an accessory for the original Wii. The Wii Fit has players engage in fun physical challenges like yoga and hula hooping as a way to exercise inside your home. The Wii Fit uses a board that measures your weight, balance, and movements to asses your body mass index and your overall fitness level. As you continue to work out with the Wii Fit, your fitness level should improve giving you measurable results of your progress (Nintendo website). The Wii Fit was designed based on the insight that people needed alternatives to traditional exercise. Introducing Wii Fit was a good way to extend the possibilities of the Wii technology and allow yet another point of differentiation against competitors.
c. By capitalizing on the fitness conscious market and showing parents that Wii is better for their child’s health than traditional video games, Nintendo is able to sell even more systems. Wii realized the insight that there is a growing obesity trend in America and used this as a sales point for their gaming system.
3. Mii characters: Appealing to consumers because of the personalization factor
a. Another thing Nintendo did to appeal to the consumer was the introduction of the Mii characters. The Mii characters provide a way for players to customize the game to them. When consumers feel that they have an invested interest in the product, or feel that it exemplifies them in some way, they are overall more satisfied with the product (source). By allowing players to personalize their characters, Nintendo hit on another valuable consumer insight.
Wii’s Success
1. Nintendo Wii has proven to be a huge success
a. During the 2007 holiday season, the Nintendo Wii was the most sought after gift (Brandweek). It flew off the shelves causing supply issues for Nintendo.
b. Beginning at the 2007 holiday season and continuing to October 2007, Nintendo Wii sales are far greater than that of Sony Playstation and Xbox. Although US retail sales declined in 2008, the video game industry seemed to be immune, especially the Wii. In October 2008, the Wii sold 803,000 units while Xbox and Playstation 3 sold 371,000 units and 190 units respectively (Twice).
c. This paragraph should be information on market cap for Nintendo before and after Wii, financial information, etc.
2. How Wii saved Nintendo
a. The DS followed by the Wii truly put Nintendo back on the map. It had been over ten years since the launch of Nintendo 64 and Game Boy and Nintendo desperately needed a new product offering to bring them back on top. The Wii was innovative and unique enough that it was the product to do just this.
b. Nintendo was in danger of not being able to compete with gaming giants Sony and Microsoft. (Find more research on this). Without the launch of Nintendo Wii, Nintendo may have been damaged beyond repair.
c. Because of the uniqueness of Nintendo Wii, there is a huge growth potential for Nintendo. Complimentary product offerings are a possibility, as well as new technologies that incorporate the Wii into their design. Nintendo has come up with such a one of the kind approach to gaming and has truly revolutionized the way video games are played. It is important for them to continue to innovate and remain a company that will deliver revolutionary games.
The future of Wii
1. Keeping Wii on top
a. Because Wii was such a smash hit, some worry that it may be a passing fad. Video gamers are always looking for the next big thing and although now that is the Nintendo Wii, next year it could be something completely different.
2. Advances by competitors
a. Significant efforts have been made by Sony and Microsoft to also reach “non-gamers.” These competitors are hoping to integrate their consoles into the home entertainment sphere by adding features that will allow consumers to download music and movies using their gaming systems (Wii are the Champions?).
b. Since Microsoft first made downloadable content available on their Xbox Live Marketplace, the company has seen a 400% increase in downloads (Wii are the Champions?). If consumers enjoy these features, Nintendo will lose customers. Also, if Sony and Microsoft succeed in making their consoles integral parts of home entertainment systems, consumers will be very unlikely to switch game systems.
c. Nintendo must do something to stay competitive.
3. New efforts by Nintendo
a. Nintendo has succeeded in creating a line of accessory products that complement the Wii such as the Wii Fit pad and Connect 24 (Nintendo website). These products enhance the Wii experience and encourage Wii players to keep playing.
b. Nintendo has plans to launch a new TV channel in Japan, Wiinoma. The channel will feature on-demand programming (some free, some pay-per-view) that will include cartoons, educational shows, and lifetime shows (The Download). Nintendo hopes to generate a great deal of ad revenue from its Wiinoma and hopes to encourage Wii users to continue to hold on to the Wii.
My Recommendations
1. Keep gaining insights
a. The reason the Wii was so successful is that designers looked at customer insights to design a product that would be unique and would appeal to its target audience as well as people making the purchase decisions (moms). It is important for Nintendo to continue gaining insights and looking at trends to uncover opportunities for new products.
b. Not only should Nintendo look at trends and opportunities in the video game industry, but they should look at trends in other industries to gain further insights. Looking at other industries will give them ideas on consumer preferences, spending habits, and other important pieces of information.
2. Make Wii stick
a. Nintendo should try and integrate the Wii into other things so that people are less likely to switch. They are on the right track with the TV channel, but the possibilities are endless. They could make educational programs for Wii, entertainment accessories for Wii, or they could even incorporate the Wii into the home with controls for lighting, fans, or security features. I can just picture it: the Wii baby monitor.
b. They should design more gaming accessories for Wii. The Wii Fit Pad is a good example of this but I am positive they can take it much further. The more accessories they sell, the longer people will remain interested in Wii.
3. Keep being innovative
a. Nintendo should strive to become the Apple of the gaming industry. If they keep coming out with new and different products, people will start to associate the Nintendo brand with innovation. Once this occurs, technology junkies and sophisticated consumers will get in the habit of looking at Nintendo for the hottest new thing.
4. Appeal to girls
a. One place I think the video gaming industry is lacking is product offerings for girls. Although the Wii appeals to both genders, there are few video games exclusively for girls. I think Nintendo is missing out on a huge market segment by not creating girl friendly games.
b. Elaborate on this
CONCLUSION
Questions:
Is my thesis statement okay?
Do I have enough references to insights?
Are my recommedations okay? Are there enough?
Do I need to add a section about Nintendo's current financial state?
Monday, March 30, 2009
Recession Marketing
It is obvious that we are in an economic recession, and it has been strikingly interesting to me how marketing campaigns are changing due to this downturn. There are so many examples of cheaper marketing ideas, new advertising slogans, special promotions, and more product introductions that have come about due to the current economic state.
One trend associated with the recession is that consumers seem afraid of purchasing high end products. This has had implications for many industries such as fashion, cars, jewelry, travel (hotels, airlines, cruises, etc.) These industries are associated with luxury and pleasure and they have to encourage weary consumers to continue to indulge in their offerings. This can be a tough endeavor and it will be interesting to see what tactics are used to keep companies in these industries afloat.
I have noticed that several companies have created new slogans and campaigns to show how their products are still necessary even during the recession. General Mills has aired several commercials showing a family eating dinner together and kind of using General Mills foods to show that the simple things are what matter in these hard times. McDonalds has also used the recession as a selling point for their cheap burgers.
In an article from Forbes.com, the author discusses how private label products have the potential to do well in this economic climate. These products are usually not heavily marketed and are outshone by their competitors. Companies that produce private label products could probably increase sales if they would use more proactive marketing strategies to leverage their price differential.
Some companies are launching new products that are recession specific or they are lowering their price points of existing products to appeal to recession cautious buyers. This can be a good tactic although product development is expensive and some customers might see through the recession targeted marketing.
Companies should look to the purchasing trends of consumers to gain insights about how buying habits are being affected by the economic slowdown. With job losses, diminishing stock portfolios, houses being difficult to sell, and lower disposable income, customer behavior must be different. Are these trends regional? Is the spending much less? Are people more price conscious? Are all industries suffering? Are consumer attitudes influencing decision making? All these questions would be very beneficial to know for marketers launching new products.
This economic recession seems to be a vicious cycle that involves consumers fearing spending and therefore creating more job losses and further recession. In this economic climate, marketing is more important than ever. Although some companies are cutting marketing budgets due to have more money for operational costs, I think that marketing is one thing that can help the economy back around. Unfortunately, the success of the US economy seems to be associated with excessive spending and credit purchases and if marketers can encourage people to spend again, this will be very beneficial.
http://www.youtube.com/watch?v=tvfSe8nHttA
One trend associated with the recession is that consumers seem afraid of purchasing high end products. This has had implications for many industries such as fashion, cars, jewelry, travel (hotels, airlines, cruises, etc.) These industries are associated with luxury and pleasure and they have to encourage weary consumers to continue to indulge in their offerings. This can be a tough endeavor and it will be interesting to see what tactics are used to keep companies in these industries afloat.
I have noticed that several companies have created new slogans and campaigns to show how their products are still necessary even during the recession. General Mills has aired several commercials showing a family eating dinner together and kind of using General Mills foods to show that the simple things are what matter in these hard times. McDonalds has also used the recession as a selling point for their cheap burgers.
In an article from Forbes.com, the author discusses how private label products have the potential to do well in this economic climate. These products are usually not heavily marketed and are outshone by their competitors. Companies that produce private label products could probably increase sales if they would use more proactive marketing strategies to leverage their price differential.
Some companies are launching new products that are recession specific or they are lowering their price points of existing products to appeal to recession cautious buyers. This can be a good tactic although product development is expensive and some customers might see through the recession targeted marketing.
Companies should look to the purchasing trends of consumers to gain insights about how buying habits are being affected by the economic slowdown. With job losses, diminishing stock portfolios, houses being difficult to sell, and lower disposable income, customer behavior must be different. Are these trends regional? Is the spending much less? Are people more price conscious? Are all industries suffering? Are consumer attitudes influencing decision making? All these questions would be very beneficial to know for marketers launching new products.
This economic recession seems to be a vicious cycle that involves consumers fearing spending and therefore creating more job losses and further recession. In this economic climate, marketing is more important than ever. Although some companies are cutting marketing budgets due to have more money for operational costs, I think that marketing is one thing that can help the economy back around. Unfortunately, the success of the US economy seems to be associated with excessive spending and credit purchases and if marketers can encourage people to spend again, this will be very beneficial.
http://www.youtube.com/watch?v=tvfSe8nHttA
Tuesday, March 24, 2009
Understanding Insights
I thought the Persuaders was a very interesting documentary that showed some of the different ways people evaluate and try to manipulate consumer attitudes and opinions. Dr. Rapaille used a very interesting three step process to decode what people associate with the word “luxury.” The process involves using a series of focus groups and activities to measure customers’ reason, emotion, and primal core to really gain insight. His techniques have proven to be successful in other industries such as the SUV industry. Dr. Rapaille found that the code for SUVs is “dominance” so he encouraged SUV makers to make their cars larger with tinted windows to portray the idea of dominance.
The first stage in his process involves using the subject’s reason. He basically just asks the people in the focus group a series of questions that are directly related to the subject matter. No real insight is gained in this step, but it gets the participants warmed up and lets them feel like they are contributing to the purpose of the focus group.
After a break, they begin the next stage of the process which uses the participant’s emotion to gain insight. He asks them to do unusual tasks like telling stories to young children from other planets. This helps them to escape logic and let Dr, Rapaille see what emotions the focus group subjects relate to the subject matter. They then take another break.
The goal of the third stage is to get down to the primal core where Dr. Rapaille really believes decisions are made. The chairs are removed from the room and this is done on purpose to confuse the subjects. They are asked to dig deep into their memories and write down notes about the first time they experienced luxury. Dr. Rapaille uses this information to decode the word. Although the code is not revealed on the show, it was interesting to see how Dr. Rapaille goes through this unusual process to reveal customer insights.
I think there are some definite good parts to the “Song Airline experience” as well as some major flaws. Delta took a completely different approach when marketing Song and tried to really capture people’s attention. They wanted to set themselves apart from Delta as well as from other low budget airlines like Jet Blue. Although the Song attempt was not successful, it will definitely not be soon forgotten.
One of the things that stood out to me in Song was their unique brand image. They talk about making everything from the flight attendants to the logos to the seat colors to the ticket kiosks uniquely Song. They set up Song concept stores similar to Apple stores to promote the airline. They used cutting edge marketing attempts to get people to wonder, “What is Song?” They never strayed from the brand image they wanted to create. They had a very cohesive approach to marketing the airline and I think this is something that really set them apart (and that was their goal).
However, this unique brand image somewhat backfired on them. Because the Song branding was so different from that of other airlines, people were not really sure what Song was. The commercials never really showed planes or destinations. Instead they showed people. Although this was an interesting attempt at branching away from typical airline advertising, it never really developed the brand awareness they were looking for. It seems that at the end of the day people really do want just an airline and not an experience.
The first stage in his process involves using the subject’s reason. He basically just asks the people in the focus group a series of questions that are directly related to the subject matter. No real insight is gained in this step, but it gets the participants warmed up and lets them feel like they are contributing to the purpose of the focus group.
After a break, they begin the next stage of the process which uses the participant’s emotion to gain insight. He asks them to do unusual tasks like telling stories to young children from other planets. This helps them to escape logic and let Dr, Rapaille see what emotions the focus group subjects relate to the subject matter. They then take another break.
The goal of the third stage is to get down to the primal core where Dr. Rapaille really believes decisions are made. The chairs are removed from the room and this is done on purpose to confuse the subjects. They are asked to dig deep into their memories and write down notes about the first time they experienced luxury. Dr. Rapaille uses this information to decode the word. Although the code is not revealed on the show, it was interesting to see how Dr. Rapaille goes through this unusual process to reveal customer insights.
I think there are some definite good parts to the “Song Airline experience” as well as some major flaws. Delta took a completely different approach when marketing Song and tried to really capture people’s attention. They wanted to set themselves apart from Delta as well as from other low budget airlines like Jet Blue. Although the Song attempt was not successful, it will definitely not be soon forgotten.
One of the things that stood out to me in Song was their unique brand image. They talk about making everything from the flight attendants to the logos to the seat colors to the ticket kiosks uniquely Song. They set up Song concept stores similar to Apple stores to promote the airline. They used cutting edge marketing attempts to get people to wonder, “What is Song?” They never strayed from the brand image they wanted to create. They had a very cohesive approach to marketing the airline and I think this is something that really set them apart (and that was their goal).
However, this unique brand image somewhat backfired on them. Because the Song branding was so different from that of other airlines, people were not really sure what Song was. The commercials never really showed planes or destinations. Instead they showed people. Although this was an interesting attempt at branching away from typical airline advertising, it never really developed the brand awareness they were looking for. It seems that at the end of the day people really do want just an airline and not an experience.
Monday, March 9, 2009
Spaghetti Sauce and Pickles
One of the most interesting things about these two articles to me was the power of consumer choice. In this day and age, consumers have so many choices and have the power to choose a product based on a number of characteristics and feel empowered because they feel that they are getting a product that they truly want or need. This enhances consumer happiness. In the case of spaghetti sauce, Prego was able to capitalize on this idea of differing customer preferences by creating a variety of sauces. This is why today there are thirty six types of Ragu spaghetti sauce and we see so many options inside of grocery stores.
One thing that really got me thinking from the TED Talk was when he was talking about pickles and he said that rather than improving your original, you need to create a “zesty.” This was very interesting to me because in the realm of customer decision making and the power of choice, consumers really want to feel like they got to make an input on what they consume. By giving the consumer the ability to choose between original and zesty pickles, you are giving them more than just two types of pickles. You are giving them the opportunity for self expression, individuality, and the chance to make a decision on their particular preferences. Some may argue that purchasing pickles is hardly an exercise in personality expression, but I disagree. If marketers capitalize on this idea, they can use products to appeal to certain consumers’ persona and not just their taste buds. Malcolm Gladwell talks about the idea that Pepsi beat Coke in a blind taste test, but “no one ever drinks Coke blind.” This elaborates on the idea that consumers pick goods based on what the brand means to them, their power of choice, and what makes them happy as an individual.
Another lesson I learned was that consumers really do not know what they want. This idea was mentioned in both the TED Talk and Kenna’s Dilemma. They say the best way to find out about consumer preferences is to ask them, but in actuality consumers don’t report what they actually prefer. Malcolm Gladwell uses the example about coffee. He said when asked, the majority of coffee drinkers will report that they prefer a dark, rich, hearty blend of coffee. However, most coffee drinkers actually like weaker coffee. In Kenna’s Dilemma he talks about the best way to gather information about preferences is to observe. By looking at the way consumers dress, how they act, where they hang out, what is inside of their closet, and looking for trends, a marketer can gain a lot more insight than if they only focus on other types of market research like surveys, etc.
I was particularly interested in the study they did between Christian Brothers brandy and E&J brandy. The study showed that packaging can influence a customer’s decision making process on which product tastes better. I was surprised to find out that packaging could have such strong influence of a consumer’s preference even in a taste test. Christian Brothers simply had to change their package to increase market share. It seems like such an arbitrary factor when it comes to decision making, but apparently packaging can have big implications. I hope to research more about this study and similar studies to use in my paper since I am writing about customer insights and packaging.
One thing that really got me thinking from the TED Talk was when he was talking about pickles and he said that rather than improving your original, you need to create a “zesty.” This was very interesting to me because in the realm of customer decision making and the power of choice, consumers really want to feel like they got to make an input on what they consume. By giving the consumer the ability to choose between original and zesty pickles, you are giving them more than just two types of pickles. You are giving them the opportunity for self expression, individuality, and the chance to make a decision on their particular preferences. Some may argue that purchasing pickles is hardly an exercise in personality expression, but I disagree. If marketers capitalize on this idea, they can use products to appeal to certain consumers’ persona and not just their taste buds. Malcolm Gladwell talks about the idea that Pepsi beat Coke in a blind taste test, but “no one ever drinks Coke blind.” This elaborates on the idea that consumers pick goods based on what the brand means to them, their power of choice, and what makes them happy as an individual.
Another lesson I learned was that consumers really do not know what they want. This idea was mentioned in both the TED Talk and Kenna’s Dilemma. They say the best way to find out about consumer preferences is to ask them, but in actuality consumers don’t report what they actually prefer. Malcolm Gladwell uses the example about coffee. He said when asked, the majority of coffee drinkers will report that they prefer a dark, rich, hearty blend of coffee. However, most coffee drinkers actually like weaker coffee. In Kenna’s Dilemma he talks about the best way to gather information about preferences is to observe. By looking at the way consumers dress, how they act, where they hang out, what is inside of their closet, and looking for trends, a marketer can gain a lot more insight than if they only focus on other types of market research like surveys, etc.
I was particularly interested in the study they did between Christian Brothers brandy and E&J brandy. The study showed that packaging can influence a customer’s decision making process on which product tastes better. I was surprised to find out that packaging could have such strong influence of a consumer’s preference even in a taste test. Christian Brothers simply had to change their package to increase market share. It seems like such an arbitrary factor when it comes to decision making, but apparently packaging can have big implications. I hope to research more about this study and similar studies to use in my paper since I am writing about customer insights and packaging.
Wednesday, February 25, 2009
Packaging and Marketing
The topic I have chosen for my paper is Packaging and Marketing. I want to do a piece on different types of packaging for products and how packaging influences buying decisions, brand associations, and consumer preferences. I also want to investigate the idea of changing product designs as a mechanism for brand revitalization. I am not sure if I want to focus purely on consumer packaged goods or if I want to dive into other types of “packaging” like store layout, logo design, etc. I am also undecided if I want to discuss deceptive packaging (like packages that make you think you are getting more product, etc.). I am unsure if I should talk about the functional benefits of the packages or just the aesthetic principles. Hopefully through research I can decide which of these specific topics I want to cover.
I also want to include a few case study examples. There are so many instances where companies will redesign packages for a given number of reasons and I want to find out the successes and implications of these new packages. Although the ultimate reason for buying a product is what is inside the package, I have a suspicion that the packaging plays a huge part in the consumer buying process. Companies that have introduced new packaging recently and I hope to discuss in my paper are:
-Pepsi and Sierra Mist
-Gatorade (but I am not sure if I want to touch on Gatorade since this was also a case for rebranding with the new “G”)
-Tropicana
-Kellogg
I found an article entitled, “Tropicana Squeezes Out New Design with a Peel” which discusses Tropicana’s struggle with portraying their juice as being fresh squeezed. They decided to design a new package that looked like a real orange to give consumers that “fresh squeezed idea.” The article briefly talks about the design process and the success of the new package. I hope to use Tropicana as an example for how companies can use a package design to enhance consumer’s perceptions of their products and hopefully in turn increase sales.
Hein, Kenneth. Tropicana Squeezes Out Fresh Design with a Peel. Brandweek, 1/19/2009, Vol. 50 Issue 3, p30-30. http://web.ebscohost.com.ezproxy.lib.utexas.edu/bsi/detail?vid=14&hid=3&sid=40d81d1a-615e-4064-a025-19fcfd08c710%40sessionmgr2#db=bth&AN=36240400
I am interested in this topic for a few reasons. First of all, I have always been interested in the Consumer Packaged Goods industry and I feel that packaging is one of the biggest components of these types of products. I am excited to try to understand how the packages of these products relate to customer experiences and how customers select these products based on their packages.
I am also interested in this topic because I hope to one day work in product development and I feel that designing packaging for a product could possibly be just as important as designing the product itself. I am interested to see the process of relating the new product to its new package and what factors influence the package’s design. Functionality, brand perception, distinctiveness, and competition all most likely influence the packaging of a new product and I want to see which of these factors have the most impact on a product’s success. The concept of starting from an idea and ending with a product sitting on a shelf is very exciting to me and I feel that if I have a better understanding of the influence of packaging on a product I can better understand what separates successful products from failures.
Wednesday, February 11, 2009
Failed Products
My roommates and I all cooked dinner together tonight, and when cleaning up, one of my roommates, a fellow business student, mentioned that we had a product under our sink that she learned about in a class as being a failed product attempt- Clorox Anywhere cleaner spray. This got me thinking… With so many products out there, what makes a product succeed or fail? Why are some ideas so harebrain, so successful, and some so simple, such failures? Do products that succeed all have something in common? Is unfamiliarity and novelty a marketing must or is it a recipe for disaster? I then decided to look into a few failed products to see if I could get some idea as to why these products fail.
On walletpop.com, there is a list of twenty five products that failed. Some noteworthy entries include Cosmopolitan yogurt, Life Savers soda, Coors bottled water, and Harley Davidson perfume. One explanation for some of these product flops is the fact that they were not logical brand extensions. No one wants to try Frito Lay lemonade. Although it seems likely that lemonade could be a substitute vending machine purchase of Frito Lay’s popular chips, consumers do not want to drink something that is made by the same company as Doritos. Things also did not work out when Colgate tried to make “Colgate Kitchen Meals.” Even though Colgate has strong brand recognition with toothpaste, the idea of a minty fresh meal just doesn’t sound appetizing. If Colgate had extended their brand to include floss, mouthwash, or even chewing gum, I would bet the results would have been more favorable.
Another reason products fail is that consumers use them in a different way than the manufacturers intended. I heard about a type of toothpaste that was put in an aerosol can and you were supposed to spray it on your tooth brush. It was supposed to make teeth brushing fun for kids, but the kids had too much fun with the toothpaste and sprayed it everywhere. I also heard about a cereal called “Wheaties Dunk-a-Balls” where the cereal was shaped like tiny basketballs. Children were throwing, passing, and dunking the cereal everywhere causing havoc for parents. One of my favorite failed products is “There’s a Monster in My Bedroom Spray,” which was bubble gum scented “montster spray.” The idea was cute, but it scared children into thinking there actually were monsters in their room so parents stopped buying it and it then flopped.
Some products fail because they are just not made well. Atari launched its ET: Extra Terrestrial video game and the coding was all off so the game was not fun to play. Other technology companies have suffered from this as well. If they are in a hurry to launch a new product, or their technology is too innovative, customers might be hesitant to catch on. A copycat company might actually succeed because they can get all the kinks out and allow their target market to get used to the idea of the product before they introduce it.
Whatever the reasons for product failures may be, they all have one thing in common: failure. Millions of dollars have been spent on research, development, production, marketing, and sales of these products. If we could get to the root of why they failed, then maybe we could avoid making these expensive mistakes.
On walletpop.com, there is a list of twenty five products that failed. Some noteworthy entries include Cosmopolitan yogurt, Life Savers soda, Coors bottled water, and Harley Davidson perfume. One explanation for some of these product flops is the fact that they were not logical brand extensions. No one wants to try Frito Lay lemonade. Although it seems likely that lemonade could be a substitute vending machine purchase of Frito Lay’s popular chips, consumers do not want to drink something that is made by the same company as Doritos. Things also did not work out when Colgate tried to make “Colgate Kitchen Meals.” Even though Colgate has strong brand recognition with toothpaste, the idea of a minty fresh meal just doesn’t sound appetizing. If Colgate had extended their brand to include floss, mouthwash, or even chewing gum, I would bet the results would have been more favorable.
Another reason products fail is that consumers use them in a different way than the manufacturers intended. I heard about a type of toothpaste that was put in an aerosol can and you were supposed to spray it on your tooth brush. It was supposed to make teeth brushing fun for kids, but the kids had too much fun with the toothpaste and sprayed it everywhere. I also heard about a cereal called “Wheaties Dunk-a-Balls” where the cereal was shaped like tiny basketballs. Children were throwing, passing, and dunking the cereal everywhere causing havoc for parents. One of my favorite failed products is “There’s a Monster in My Bedroom Spray,” which was bubble gum scented “montster spray.” The idea was cute, but it scared children into thinking there actually were monsters in their room so parents stopped buying it and it then flopped.
Some products fail because they are just not made well. Atari launched its ET: Extra Terrestrial video game and the coding was all off so the game was not fun to play. Other technology companies have suffered from this as well. If they are in a hurry to launch a new product, or their technology is too innovative, customers might be hesitant to catch on. A copycat company might actually succeed because they can get all the kinks out and allow their target market to get used to the idea of the product before they introduce it.
Whatever the reasons for product failures may be, they all have one thing in common: failure. Millions of dollars have been spent on research, development, production, marketing, and sales of these products. If we could get to the root of why they failed, then maybe we could avoid making these expensive mistakes.
Tuesday, February 3, 2009
Paradox of Choice
Barry Schwartz had some very insightful ideas about the customer decision making process and how choices can really complicate making decisions. He used the example of the supermarket and how there are seventy five types of salad dressing. Talk about a lot of choices! Imagine making 6.5 million stereo systems from parts at one electronics store. It is no surprise that consumers can be overwhelmed at times.
It makes complete sense to me that when you increase the number of choices, participation can go down. Barry Schwartz described an episode of shopping for blue jeans, and I had a similar experience at the mall with blue jeans. I am not much of a shopper and I sometimes get overwhelmed by shopping malls. I went to Nordstrom in search of a pair of new, trendy jeans. When I got there, there were so many pairs to choose from that I did not know where to begin. I ended up leaving frustrated with no jeans. A few weeks later, I went to another department store where I was helped by a sales assistant who asked me what I was looking for and my size and then showed me about eight pairs. By narrowing down my number of choices I was able to make a decision and left with a pair of jeans that I felt were good for me. I think it is very characteristic of humans to get overwhelmed by choices and just give up. I purposely shop at Randall’s instead of HEB because Randall’s is smaller and is less overwhelming to me. Although some people prefer HEB’s greater selection, I prefer the ease of the smaller grocery store. This is also the case for me with online shopping. There are so many options that I usually end up buying nothing.
The issue of buyer’s remorse can be enhanced by greater choice. If there is only one option, then it is the best option. But if there are a bunch of options, then you start to wonder if you picked the best one. This happens to me constantly when I go out to eat. I always pick out two or three things and then stress out over which one to order. I am the one at dinner who tells the server, “I’ll have the chicken, no, the fish, wait, the chicken.. Oh just bring me the chicken.” Then when the food comes I suddenly wish I had gone with the fish. When my roommate cooks me dinner and tells me we are having pasta, I eat the pasta and am satisfied.
In a world of so many choices, the consumer gets bogged down with the pressure of making a decision. That being said, it is a phenomenon that we must live with if we want to have the freedom of choice. Although I sometimes leave a mall frustrated or wish I had ordered another meal, I am much happier than if I was told what clothes to wear or food to eat. As an American consumer in this day and age, we get used to having millions of choices. We like researching products to pick the one that is right for us. We enjoy having unique clothes and styles. We all have our iPods play the type of music we like. Some marketers even use this power of choice to their advantage. I think Apple’s new “nanochromatic Ipods” are a good example of this. By offereing the standard iPod nano in an array of colors, it allows the consumer to pick their favorite and feel that they have a product that is uniquely theirs even though they are completely mainstream and mass produced. The Nike ID shoes you can customize also use this tactic.
Although I sometimes get overwhelmed by choices, I do enjoy having them. Barry Schwartz makes some interesting points on this subject and I am interested to examine these observations further.
It makes complete sense to me that when you increase the number of choices, participation can go down. Barry Schwartz described an episode of shopping for blue jeans, and I had a similar experience at the mall with blue jeans. I am not much of a shopper and I sometimes get overwhelmed by shopping malls. I went to Nordstrom in search of a pair of new, trendy jeans. When I got there, there were so many pairs to choose from that I did not know where to begin. I ended up leaving frustrated with no jeans. A few weeks later, I went to another department store where I was helped by a sales assistant who asked me what I was looking for and my size and then showed me about eight pairs. By narrowing down my number of choices I was able to make a decision and left with a pair of jeans that I felt were good for me. I think it is very characteristic of humans to get overwhelmed by choices and just give up. I purposely shop at Randall’s instead of HEB because Randall’s is smaller and is less overwhelming to me. Although some people prefer HEB’s greater selection, I prefer the ease of the smaller grocery store. This is also the case for me with online shopping. There are so many options that I usually end up buying nothing.
The issue of buyer’s remorse can be enhanced by greater choice. If there is only one option, then it is the best option. But if there are a bunch of options, then you start to wonder if you picked the best one. This happens to me constantly when I go out to eat. I always pick out two or three things and then stress out over which one to order. I am the one at dinner who tells the server, “I’ll have the chicken, no, the fish, wait, the chicken.. Oh just bring me the chicken.” Then when the food comes I suddenly wish I had gone with the fish. When my roommate cooks me dinner and tells me we are having pasta, I eat the pasta and am satisfied.
In a world of so many choices, the consumer gets bogged down with the pressure of making a decision. That being said, it is a phenomenon that we must live with if we want to have the freedom of choice. Although I sometimes leave a mall frustrated or wish I had ordered another meal, I am much happier than if I was told what clothes to wear or food to eat. As an American consumer in this day and age, we get used to having millions of choices. We like researching products to pick the one that is right for us. We enjoy having unique clothes and styles. We all have our iPods play the type of music we like. Some marketers even use this power of choice to their advantage. I think Apple’s new “nanochromatic Ipods” are a good example of this. By offereing the standard iPod nano in an array of colors, it allows the consumer to pick their favorite and feel that they have a product that is uniquely theirs even though they are completely mainstream and mass produced. The Nike ID shoes you can customize also use this tactic.
Although I sometimes get overwhelmed by choices, I do enjoy having them. Barry Schwartz makes some interesting points on this subject and I am interested to examine these observations further.
Tuesday, January 27, 2009
Generation Y
As a member of Generation Y, I do feel that there are some truths to what the articles and podcast were saying about people in this generation. I am definitely an avid facebooker and have been on other social networking sites as well. I agree that your social networking site is sort of like your dorm room in the way that you post pictures, “have your friends over,” and post comments about each others messages, etc. In the podcast, they said that MySpace is way cooler to hang out at than the mall and I think this is very true. If I want to feel “in the loop” or feel that I have connected with my classmates, the first place I turn is facebook. Especially at a school as large as UT, I think the social networking sites help you feel more connected to your classmates. They also said that it is typical for your virtual friends to match your physical friends. I agree with this because most of my virtual friends are my friends in real life but I use the Internet as a tool to connect with them.
It is no doubt that we are an online generation. We post our homework online, do research for class online, read the news online, get fashion advice online, relationship advice online, shop online, talk to our friends online, and even write in online diaries. With everything being online, it is easier and harder for marketers to capture us. We are exposed to thousands of ads everyday as we check our email and walk to class. The Internet is a great tool to advertise to young consumers in unconventional ways so that sometimes they are not even aware they are being marketed to.
However, we click through so many indirect ads on YouTube, MySpace, etc. that we become immune to them and could possibly lose their effectiveness. Traditional marketing methods become obsolete with technology like TiVo. Another characteristic of our generation is that we are constantly using several types of media at a time. Earlier today I was watching TV on TiVo while checking my facebook with my laptop and texting my friend on my Blackberry all while flipping through a magazine. How are marketers supposed to reach someone that has so many conflicting ideas clouding their brain and thought process?
One thing that is popular for marketers these days to do is use viral marketing that Generation Yers regard as funny or clever. Several companies have been able to do this through YouTube videos, interactive online games, and music. Something that I think has been ineffective is the attempt to use celebrity endorsements, glitz and glam, and the “cool factor” to try and sell a product. Gen Yers are sophisticated consumers and do not want to be sold to. They do not want to be told what is cool, but they want to discover it through a combination of rebelling from their peers and following their peers at the same time. It is a tough job for marketers to figure out how to appeal to a generation that is so different from generations of the past.
Although there seems to be a definite trend to all things hip, trendy, and virtual, the more traditional members of Gen Y should not be forgotten. There is definitely a population of preppy dressing, face to face talking, risk averse teens and young adults. Some kids are too cool for facebook, too straight laced for skateboarding, or too boring for video games. Companies with niche market type products can still succeed if they find the correct market and give their customers something worth buying. It is a tough marketplace out there and it is up to shrewd marketers to figure out how to appeal to someone.
It is no doubt that we are an online generation. We post our homework online, do research for class online, read the news online, get fashion advice online, relationship advice online, shop online, talk to our friends online, and even write in online diaries. With everything being online, it is easier and harder for marketers to capture us. We are exposed to thousands of ads everyday as we check our email and walk to class. The Internet is a great tool to advertise to young consumers in unconventional ways so that sometimes they are not even aware they are being marketed to.
However, we click through so many indirect ads on YouTube, MySpace, etc. that we become immune to them and could possibly lose their effectiveness. Traditional marketing methods become obsolete with technology like TiVo. Another characteristic of our generation is that we are constantly using several types of media at a time. Earlier today I was watching TV on TiVo while checking my facebook with my laptop and texting my friend on my Blackberry all while flipping through a magazine. How are marketers supposed to reach someone that has so many conflicting ideas clouding their brain and thought process?
One thing that is popular for marketers these days to do is use viral marketing that Generation Yers regard as funny or clever. Several companies have been able to do this through YouTube videos, interactive online games, and music. Something that I think has been ineffective is the attempt to use celebrity endorsements, glitz and glam, and the “cool factor” to try and sell a product. Gen Yers are sophisticated consumers and do not want to be sold to. They do not want to be told what is cool, but they want to discover it through a combination of rebelling from their peers and following their peers at the same time. It is a tough job for marketers to figure out how to appeal to a generation that is so different from generations of the past.
Although there seems to be a definite trend to all things hip, trendy, and virtual, the more traditional members of Gen Y should not be forgotten. There is definitely a population of preppy dressing, face to face talking, risk averse teens and young adults. Some kids are too cool for facebook, too straight laced for skateboarding, or too boring for video games. Companies with niche market type products can still succeed if they find the correct market and give their customers something worth buying. It is a tough marketplace out there and it is up to shrewd marketers to figure out how to appeal to someone.
Monday, January 26, 2009
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