Category Archives: Consumer Psychology

The Main Runway for Fashion Industry – Social Media, The New Fashion Icon!

social media and fashion industry

social media and fashion industry

Fashion Week Ready-to-Wear Fall/Winter 2012/2013 Collection.

Social Media has never been as important as this year. Bloggers are now invited to sit on the front rows, not only focusing on early-days streetstyles. They work closely with brands on the marketing side, but are also more and more involved in the creative process. Karl Lagerfeld regulary meets bloggers. Alexandre de Betak, one of the most famous Art Directors, is now contributing to Caroline Daily’s personal blog. A real revolution in the fashion world.

Because the microcosm was pretty reluctant to this “democratization  of fashion through digital, especially of high fashion“.But few trends changed the rules: Social Media is now the most important runway. An everlasting runway, that changes players, shareholders, reputation and creativity.

fashion and social media

fashion and social media

A professionalization of digital fashion influencers

Fashion bloggers aren’t just cool guys with cool cameras anymore. They not only shoot themselves in a mirror. They are designers, freelance consultants, copywriters, sometimes wannabe stars. Female AND male. Or so-called “slashers“:

“For the typical member of Gen Y, as well as the soon-to-be working age Millennials, the typical behaviour patterns of immediate pleasure seeking, multitasking and low boredom thresholds (typically all summed into the phrase ‘instant on’) makes slashing particularly appealing. (…) It is no surprise that greater quantities of people under 30 are choosing to have portfolio careers”.

Quality is enhanced: some bloggers now have their personal photographers. New skills are appearing in blog-posts: art direction, production, work with agencies. Talent managers are now targeting these people, booking them with the right brands.

social media in fashion for fashion

social media in fashion for fashion

When fashionistas meet entrepreneurs

On eBay France, fashion-related items are the most sought and sold. Some investors decided to dive into these new markets, trying to encourage young platforms to rise. Even if the gap can be huge between creatives and techies, it’s now melting:

“What we know unequivocally is that the momentum fashion startups are having–and this phenomenon of fashion, technology and finance coming together–won’t be slowing down in 2012.”

In France, Ben & Fakto has just conciliated fashion needs and post-crisis reality, focusing on “happy fashion” and social marketing, partnering with Babyloan.

What used to be 2 opposite worlds, is now merging. Because digital culture is now directly impacting the way fashion rejuvenates its ideas, finding new roots to some kinds of digital undergrounds. Main famous brands are now on TumblR, a way to propagate their vision of fashion but also to directly plug with new trendsetters. Trendsetters because they MAKE trends (photography etc.).

From inner circle to pervasive fashion

Communication used to be mastered. Authorized journalists were covering the runways. It was an inner-circle of happy fews. Where brands were only challenged by other brands. This time is over.

Traditional Haute Couture brands need to shape new paths. Because the inner-circle is becoming more and more pervasive. The agenda is challenged; there are now so many Fashion Weeks worldwide that there’s too much noise to only count on them. New media like Refinery 29 are dismantling Vogue or other traditional opinion leaders. Bloggers take the lead and do not hesitate anymore to claim when these editorial pipelines go wrong. The last example against ELLE France (accused of racism) has demonstrated that it’s no longer “fashion top journalists” against “the people”; and convinced us that “Eagles” can sometimes be cheap.

When classic catwalks aren’t enough to emerge

Since Louis Vuitton in 2009, the very first luxury brand to broadcast its fashion show live on Facebook, all the other brands have tried to follow the idea that a catwalk needed to be live. That this catwalk should be broadcast, commented, shared, by online communities of influencers. That the most important thing was to generated weak links, “hyphenated marketing“, that could be activated at the best time. We’ve seen in January that it’s not that easy to organize: during the last Gucci live stream catwalk (Men collection), we were only some dozens to live-chat on the related platform. Not much impact compared to Burberry.

Because it requires many skills (Social CRM, digital branding, Social Media Marketing) that cannot be improvized.

The last stats have shown how important fashion e-commerce is:

“Converting the sale online should be the very next focus for fashion sales online,” noted
Cohen, “Getting the consumer to go from browsing to purchasing takes new information beyond just product photos and price. It takes convincing the consumer to push the purchase button.”

A world in which Social Media is not an asset apart. But the core one.

Source: Socialmediatoday.com

1 Comment

Filed under Ad Campaign, Advertising, Android Apps, Applications, Branding, Business, Business Plan, Commercial, Communications Manager, Consumer Psychology, Consumer Psychology, Design, Digital Creative, Digital Marketing, E-Commerce, Fashion, Fashion Designer, Fashion Industry, Fashion Internship, Fashion Jobs, Fashion Journalist, Fashion Marketeer, Fashion Marketing, Fashion Model, Fashion Show, Fashion Themes, Interactive Campaign, Interactive Marketing, Interactive Marketing Online, Internet Marketing, Internet Technology, iPhone Apps, Lookbook, Luxury Brand, M-Commerce, Management, Market Research, Marketing, Marketing Manager, Marketing Mix, Marketing Strategy, Mass Market, Media Outlet, Merchandising, Methodology, Mobile Applications, Mobile Marketing, Networking, New Product Marketing, Niche Business, Niche Market, Online, Online Marketing, Online Shopping, PR, PR Manager, Presentation, Product Advertising, Public Relations, Publicity, Qualitative Research, Quantitative Research, Research, Sales Representative, Social Marketing, Social Media, Social Media Marketing, Social Network, Streaming, Target Market, Technology, Trends, Viral Campaign

Digital Fashion Week – World’s First Live Streaming Only Fashion Week to be Hosted In Singapore October 2012

DFW Digital Fashion Week Singapore 2012

DFW Digital Fashion Week Singapore 2012

Live streaming of fashion shows has become de rigueur but we’re taking it up a notch with Digital Fashion Week (DFW). As the world’s first live streaming only fashion week, DFW will unify fashion and technology innovation in this groundbreaking advancement.

 

Digital Fashion Week 2012

 

Gone is the era of front row guests at the traditional fashion weeks. This time, we’re going digital. For the first time in fashion history, a fashion week will be live streamed solely online, and consumers can shop their favorite looks off the runway in real time and have them delivered in a matter of weeks – way before they hit the stores.

A high-profile showcase of celebrated designers from every major city, DFW gives designers the ability to reach out to consumers worldwide and global audiences absolute access into the world of fashion.

Labeled by CNN Go as ‘The Next Big Names in Singapore Fashion’, DFW is organized by the creative minds of STORM Creative Events Agency. As the pioneer of fashion show live streaming in Singapore in May 2011, it garnered a record high of 500,000 viewers from 90 countries within a week.

This October will see DFW’s debut edition, Digital Fashion Week Singapore exclusively available for viewing at http://www.digitalfashionweek.com. The twice-yearly event boasts an exciting designer lineup of Singapore’s biggest names presenting their Spring/Summer 2013 collections, with a special appearance by an international guest designer marking the inaugural event in a debut runway show.

Digital Fashion Week

Quote startMr. Keyis Ng, co-founder of Digital Fashion Week states, “Until now, no digital platform as powerful as DFW has
existed for designers to reach out to people worldwide.”Quote end

Besides live coverage of DFW front row and backstage buzz, interviews with designers and artistes and fringe events, DFW incorporates new features such as live runway commentaries by key fashion figures, pre-show performances by internationally renowned artistes and a one-stop mobile application to provide users with instant fashion show live streaming, videos, runway photos, designers information and e-commerce shopping – giving the global audiences a dynamic fashion week experience like never before.

Digital Fashion Week consists of three main elements:

Front Row Access:
Live backstage action of hair and makeup.
Live interviews with models, designers, hair and makeup artists.
Live pre-show performances by renowned artistes.
Live runway shows with special appearances by top models . Live runway commentary by key fashion figures.
Live post-show party coverage.

Real-Time Shopping:
Consumers can buy their favorite designs off the runway instantly and have them delivered within a matter of weeks.

Power to Influence:
Consumers will have the unique opportunity to provide the designers with instant feedback. The pre-orders made for every collection will provide designers with insights into market trends.

Mr. Keyis Ng, co-founder of DFW states, “Until now, no digital platform as powerful as DFW has
existed for designers to reach out to people worldwide. We aim to harness technology and
creativity to promote home-grown designers in each city to the global audiences by capitalizing on the hype generated from the fashion shows. The buzz created will then be directly converted into sales and sync the fashion communication cycle with its retail cycle.”

In conjunction with Digital Fashion Week Singapore, a virtual B2B platform, DFW Digital Showroom will also be launched. Press, buyers and retailers from all over the world can enjoy
exclusive access to intimate collection presentations by the DFW designers through lookbook
images and pre-recorded videos made available immediately after every fashion show. DFW will be the ultimate digital fashion gateway in connecting designers to the world.

“Singapore has grown to be Asia’s most network-ready country with one of the highest mobile
penetrations in the world. The age of Digital Fashion is here; it is the perfect timing for the fashion
industry to embrace the future of technology, first-hand in Singapore.” co-founder of DFW, Ms.Charina Widjaja said.

Besides its official launch as a twice-yearly event in Singapore, DFW will also proceed to other major cities around the world.

Show schedule, designer and performance lineup, additional updates will be announced in August 2012.

Frontrow DFW Digital Fashion Week Singapore 2012

Frontrow DFW Digital Fashion Week Singapore 2012

About Digital Fashion Week Private Limited
Digital Fashion Week Pte Ltd was founded in 2012 by the creative minds behind STORM Creative Events Agency. STORM is widely recognized for pushing boundaries by combining technology with lifestyle and was named by ELLE Singapore as ‘The Name to Watch’ within the first year of its launch. STORM has also been featured several times in leading publications namely Marketing Magazine UK, CIO Asia, Springwise.com, TrendHunter.com, The Straits Times, The New Paper, Lian He Zao Bao and many more. The team at STORM has worked with many established fashion houses ranging from high-end designer labels to mass market brands.

DFW Digital Fashion Week Singapore 2012

DFW Digital Fashion Week Singapore 2012

Original Source: PRWeb.com

Leave a comment

Filed under Ad Campaign, Advertising, Agency, Android Apps, Applications, Branding, Business, Business Plan, Case Study, Celebrity, Commercial, Communications Manager, Consumer Psychology, Consumer Psychology, Design, Digital Creative, Digital Fashion Week, Digital Marketing, E-Commerce, Fashion, Fashion Designer, Fashion Exhibition, Fashion Industry, Fashion Internship, Fashion Jobs, Fashion Journalist, Fashion Marketeer, Fashion Marketing, Fashion Mercendising, Fashion Model, Fashion Photographer, Fashion Retailer, Fashion Show, Fashion Stylist, Fashion Themes, Fashion Trade Show, Fashion Week, Flash, Haute Couture, Interactive Campaign, Interactive Marketing, Interactive Marketing Online, Internet Marketing, Internet Technology, Invitation, iPhone Apps, Lookbook, Luxury Brand, M-Commerce, Make-Up Artist, Management, Marketing, Marketing Manager, Marketing Mix, Marketing Strategy, Media Outlet, Merchandising, Mobile Applications, Mobile Marketing, Networking, New Product Marketing, Niche Business, Niche Market, Online Marketing, Online Product Marketing, Photo Shoot, Photographer, PR, PR Manager, Presentation, Producer, Product Advertising, Promotion, Public Relations, Publicity, Sales Representative, Social Marketing, Social Media Marketing, Sponsor, Sponsorship, Streaming, Target Market, Technical Designer, Technology, Trends, Video, Viral, Viral Campaign, Viral Video, Web Marketing, Website

Is Your Fashion Brand on Instagram?

With so many mobile applications and social networks available, it can often become a daunting task to decipher which platforms are best for your brand. Factoring in time, resources, and manpower, we have to carefully pick and choose where our brands can be socially participating to the fullest potential. It’s no surprise that Instagram has become the fastest growing mobile application recently. The easy to share functions, photo filters, and the strength of an intimate community makes Instagram an attractive social platform, where fashion brands can easily establish themselves as authorities.

Whether fashion or luxury brand, we must not forget that we are still content producers on our social networks. Instagram’s share functions allow users to snap a photo from their mobile device and add an attractive filter (to give photos that instant cool factor) with the ability to share on Twitter, Facebook, Flickr, Tumblr, Posterous and Foursquare. Fashion houses on Instagram, like Oscar de la Renta, have done a superb job at not only sharing behind the scenes photos, but also displaying them on their other social networks like Twitter and Tumblr. This gives audiences welcoming access into the brand with just the swipe of a button.

Much like the micro-blogging platform of Tumblr, the allure of Instagram is heavily based on the distributing of visuals. Fans of fashion are visual people that are constantly looking for that conspicuous stimulation to take them outside of their daily lives and into the fantasy of glamour and luxury. Instagram gives us the space to share the small, intimate moments in our routines in a new, creative way. Kate Spade invites audiences into their world with photos of favorite New York City sightings, venues and restaurants. Using Instagram’s geo-tagging function, by citing the location in which the photos are taken, Kate Spade automatically becomes a reputable source of things to do and see in NYC.

Does your brand have a new product or piece that is need of a strong spotlight? Instagram is the perfect space for your emerging goods to take center stage, catching those prospective consumers that want a piece of your brand. The team at Club Monaco has done a great job of this, by posting images of staff members wearing pieces that have just been released or have just gone on sale.

The built in community on Instagram has a strong sense of intimacy that isn’t afraid to engage with the photos that fashion brands are uploading. The higher the level of engagement, the more likes, comments, and follows your brand can receive. Not to mention, you are presented with direct, instantaneous feedback in a single stream, specific to that image. Audiences want to know where they can get the dress that Oscar PR Girl is wearing in her style photo.

As Instagram is still considered to be in its infancy, only being launched a few months ago, every fashion brand is taking their own approach to fascinate their consumer and fan base on the application. The strengths of Instagram are the filter, social, community, and geo-tag capabilities. Never has a mobile application been able to have such a wide range of functions that users want right now. You can be en route to a meeting, see something interesting on the street, capture it, filter it, share it and you’ve already added some depth to the identity of your brand. The creativity and intimacy of communal photos uploaded on Instagram captivates voyeuristic users and it can certainly captivate the audience of your fashion brand.

Taken by Club Monaco via Instagram

Taken by OscarPRGirl via Instagram

Taken by Kate Spade via Instagram

Lala Lopez is a fashion journalist, stylist and social media expert based in New York. Her clients have included Betsey Johnson, Steve Madden, Jeffrey Campbell, and Solestruck.com. She has been featured on CNN, Teen Vogue Magazine and Chictopia. Lala shares her views on fashion, art and social media trends on her blog Lala New York City. (www.lalanyc.com)

Author: Lala Lopez

Copy Editor: Gina Conforti

Photo Credits: Kate Spade

Leave a comment

Filed under Ad Campaign, Advertising, Branding, Business, Communications Manager, Consumer Psychology, Consumer Psychology, Design, Digital Creative, Digital Marketing, Fashion, Fashion Competition, Fashion Designer, Fashion Industry, Fashion Marketeer, Fashion Marketing, Fashion Mercendising, Fashion Photographer, Fashion Retailer, Interactive Campaign, Interactive Marketing, Interactive Marketing Online, Internet Marketing, Lookbook, Luxury Brand, M-Commerce, Marketing, Marketing Manager, Marketing Mix, Marketing Strategy, Mass Market, Media Outlet, Merchandising, Mobile Marketing, Networking, New Product Marketing, Niche Market, Online Marketing, Online Product Marketing, Photographer, PR Manager, Presentation, Product, Product Advertising, Product Placement, Promotion, Publicity, Social Marketing, Social Media Marketing, Target Market, Technology, Trends, Viral, Viral Campaign, Web Marketing, Website

Levi’s using Instagram As A Marketing Tool

Photo-sharing application Instagram saw its userbase grow to one million in only three months. The service enables people to share their finest moments by letting them take a picture, choose a Hipstamatic-like filter to transform the look and feel, and share it with a small text and/or its geo-location on numerous social media, such as Facebook, Twitter and Foursquare. Recently Instagram has drawn considerable interest from a number of brands. Levi’s Brazil is one of the first to roll out a marketing campaign using the service.

The fashion brand takes fully advantage of Instagram’s unique features to display new products that will be released in the forthcoming collection, as well as images that represent the brand’s personality. Users can start following ‘levisbrasil’ in order to stay updated about the latest stuff, all in a purely visual way. I think Instagram’s photo filters totally breathe the Levi’s style. For the moment the campaign generated limited results — only 127 people started following Levi’s Brazil. Nevertheless, many predict a big future for Instagram as a marketing platform. Interestingly, Giles Fitzgerald from London-based communication agency Frukt claims that the service opens up new social media marketing opportunities for visually oriented brands.

“For fashion brands word dominated social media platforms such as Twitter can be a barrier to the more tactile and lifestyle-oriented element of their brands. Instagram with its ability to turn humble photos into works of art manages to blur the lines between a humble snap and the kind of imagery that dominates the advertising billboards and print ads.”

 

Original Source:  Popupcity.net by JEROEN BEEKMANS

 

Leave a comment

Filed under Ad Campaign, Advertising, Branding, Business, Case Study, Consumer Psychology, Consumer Psychology, Denim, Digital Creative, Digital Marketing, E-Commerce, Fashion, Fashion Industry, Fashion Marketing, Fashion Retailer, Interactive Marketing, Interactive Marketing Online, Internet Marketing, Lookbook, M-Commerce, Management, Marketing, Marketing Manager, Marketing Mix, Marketing Strategy, Mass Market, Media Consumption, Media Outlet, Merchandising, Mobile Marketing, Networking, New Product Marketing, Niche Business, Online Marketing, Online Product Marketing, Online Shopping, Photo Shoot, PR Manager, Presentation, Product, Product Advertising, Product Placement, Promotion, Publicity, Social Marketing, Social Media Marketing, Target Market, Trends, Viral, Viral Campaign, Web Marketing, Website

How Brands are using Instagram to Connect with Consumers

A picture is worth a thousand words, which may explain why Instagram has become the latest social network to catch the attention of brands. With over 1 million registered users, this photo sharing app provides a unique touch point for brands to engage their consumers while telling their story through pictures.

For those who are unfamiliar, Instagram is an easy to use iPhone application for taking, editing and sharing photos. As a user you have the ability to follow, comment and like other pictures. All these interactions make Instagram an ideal outlet for brands who are looking to explore new ways to reach their consumers. Already, nearly a dozen brands have created their own accounts, including MTV, Pepsi and even Playboy.

Instagram has been only too happy to accommodate this new interest from brands, and they have hinted that they’re currently working on changes which will allow brands to communicate more directly with users. One such change, which was rolled out last month is the launch of hash tags.

Hash tags can now be added to pictures via the caption or comment field. These tags help to aggregate pictures into their own special albums. This allows users to view a real time feed of content, based around a particular topic (similar to how hash tags work within Twitter). To view pictures associated with a hash tag tap on the tag text or use the new search functionality located under the profile tab. For those without a smart phone, pictures can be viewed via RSS feeds: http://instagr.am/tags/%5Bhashtag%5D/feed/recent.rss. Simply replace “hashtag” with the name of the tag.

Brands have been quick to take advantage of this new development. Brisk Ice Tea is using the hash tag #briskpics to collect photos, the best of which they will use to create 4000 limited edition cans. Charity: Water are asking people to use the tag #chatirywater to share images of water in their everyday life, while NPR is collecting user generated content using the tags #love and #hate to spark conversation.

So how can your brand use Instagram to reach consumers? Here are a few ideas to get you going:

1. Host a contest. Provide followers with a challenge to take a picture of something related to your brand. Alternatively you could provide the picture and ask viewers to come up with a unique caption. Best picture/caption wins.

2. Give a sneak peak. Whether it’s the first look at a new product or a few snaps behind the scenes, treat your followers to some exclusive content.

3. Create a real time album for an event. Allow attendees to share their event experiences by using a hash tag to aggregate pictures. This will provide you with a variety of content.

4. Connect with influencers. Check to see if your brand is already being talked about. Not only could this give you a hint as to the kinds of content consumers would like to see, but hash tags provide an easy way to track the people who are already connecting with your brand.

5. Show off a different side. Curate images that represent your brand personality. Connect with consumers by creating content around your shared passions rather than just your products.

Are you using Instagram for your brand? Have any other tips or best practices? Tell us below!

Original Source: Antleragency.com by Beth Tucker

Leave a comment

Filed under Ad Campaign, Advertising, Branding, Business, Business Plan, Case Study, Consumer Psychology, Consumer Psychology, Digital Creative, Digital Marketing, Fashion, Fashion Industry, Interactive Campaign, Interactive Marketing, Interactive Marketing Online, Internet Marketing, Luxury Brand, M-Commerce, Marketing, Marketing Strategy, Mass Market, Media Outlet, Mobile Marketing, Networking, New Product Marketing, Online Marketing, Online Product Marketing, Photo Shoot, Presentation, Product, Product Advertising, Product Placement, Promotion, Publicity, Social Marketing, Social Media Marketing, Target Market, Trends, Viral, Viral Campaign, Website

Top 10 Networking Tips for Savvy Networkers


  • .  Be Prepared. Savvy Networkers always have their networking tools with them at all times.  The Networking tool kit includes: an ample supply of business cards, your name badge, any collateral material (flyers, brochures, etc), and your marketing message (often referred to as your elevator speech).

    .  Arrive early. Savvy Networkers arrive early and have their business cards readily available and can relax and focus on learning about the other people in the room.  As an early, Savvy Networker, you can pause to calmly gather your thoughts and your intentions so that your time spent networking will be of benefit to you and your goals.  Preparation goes a long way in making you appear to be someone that other people will want to get to know.  People do business with people they like.  And you will be judged by others, like it or not, based on their first impression of you.
  • .  Have a plan. Savvy Networkers always have an idea of what the goal is for each event they attend.  Know, before going in, what the outcome is that you want for yourself or for the people you meet at each event.  Do you want to meet 3 people and focus on getting to know them really well?  Are you looking for an introduction to a certain type of client?  Are you looking for information or connections that will get you that information?  When you have a plan, it is easier to stay focused and achieve your expected outcome.  It also helps you to keep on track to help others in achieving their goals when you remind yourself to be generous with your own knowledge and connections.  And, when you have a plan it is easier to stay on task as you meet with people.
  • Be a Giver and/or a Connector. When you focus on “giving” and being helpful to others, the “getting” will come later … and it will come in unexpected ways.  Foremost to remember, is that no one likes a person with a “taker” mentality.  When you are generous, people will notice and repsect you for your kind nature.  And, people generally do business with people that they respect, trust, and like.  Act like a host at every event you attend by connecting people.  This can be a simple act of intruducing 2 people to each other or as elaborate as giving a testimonial about 1 person and their services to the entire group.  All of these acts allow you to focus on the “other” and grows your social capital in the room.
  • Leave your troubles behind. Put on a happy face at the door and remind yourself that it is “show time”.  This is your time to sparkle and shine.  People will look forward to seeing you and meeting you if you are energetic, positive, and outgoing.  Again, people enjoy doing business with people that they like.  BE a person that others will like.  Hopefully you’ve heard the zen expression “Be the ball” … well, whenever you have the chance, “Be the ball of the ball!”  Do not burden or bore people with your troubles or your problems.  Everyone has enough of their own, and, trust me on this, they do not need or want to hear about yours.
  • Listen with focus. When someone is speaking with you, give that person your entire focus.  LISTEN.  Really hear what the person is saying.  Keep your eyes and ears focused and keep your self talk and thoughts focused too.  The greatest gift that you can give to another person is to truly hear what that person is saying.  You’ve seen this before and it bears repeating: you have 1 mouth and 2 ears for a reason.  Listen twice as much and talk 1/2 as much and everyone you treat this way will think you are a genius!
  • Be Genuine. Everyone knows when someone is “schmoozing” on or at them.  And, no one likes being “primed” for the pump.  Be genuine in your interactions with others at an event.  Again, it comes back to building trust,  to building “brand YOU”.  There is a huge difference between being INTERESTED and in trying to be INTERESTING.   When you are interested in learning about someone and their business entirely for the sake of learning about the other person, you will leave a lasting impression as someone who genuinely cares.  On the other hand, when you are interested only so that you can take what you learn and then use it to make yourself or your products interesting to this person … well, my friend, you have slipped into the category of “scorched earth networking” and it is not a good place to be.
  • Do Teach/Don’t Sell. The Savvy Networker knows that the immediate sale of a product is not the goal in networking.  Networking is about building relationships with people who will be happy to tell others about who you are and what you do.  Word of mouth advertising is the most cost effective and powerful advertising.   At every opportunity, teach others about who you are, as a person, and what it is that you do.  Always present a clear emphasis on the type of client that you are looking for.  In doing this, you will be building a salesforce that can reach far wider than you can on your own.
  • Follow up. After the event, send a thank you card to each person that you had direct contact with.  Mention something from your discussion in the thank you card (it helps if you jot notes on the back of each person’s business card that you collect).  If there is a referral that you can supply to someone you’ve just met, include that in the follow up note.  Showing up and following up are the two most important parts of networking.  Showing up, in most cases, is the easy part.  The follow up is, sadly, the most neglected part of networking.  Since so many people fail to follow up, you can really stand out by just doing this simple act of reaching out to remind someone of who you are and what you do … and that you are interested in exploring a relationship.
  • Follow up some more! Depending on where you look, marketing statistics state that it takes 7 to 12 impressions for a consumer to make a buying decision.  It also take somewhere between 5 to 12 impressions to become “top of mind”.  AND those are the OLD numbers.  Because of the overload of information that we are all faced with every day, the number of impressions is actually quite higher.  It is more likely to take 15 – 20 impressions before you make the connections that you are looking to build! Meeting face to face is the 1st impression.  An email, a phone call, another card, a lunch date … don’t stop after 1 or 2 impressions.  Keep going.  Savvy Networkers know that to build strong relationships they must dig deeper and make the continued effort to build ongoing relationships!

Source: Top10networkingtips.com

Leave a comment

Filed under Branding, Business, Communications Manager, Consumer Psychology, Consumer Psychology, Fashion Industry, Fashion Marketeer, Fashion Marketing, Interactive Marketing, Management, Market Research, Marketing, Marketing Manager, Marketing Mix, Methodology, Networking, Niche Business, Niche Market, PR Manager, Presentation, Promotion, Publicity, Qualitative Research, Research, Sales Representative, Social Marketing, Social Media Marketing, Target Market

Case Study – how market research supports the new product development process

Market research is the process by which businesses find out about customers’ needs, wants and desires. It makes possible the successful development of new products.

This study shows how an international company, Beiersdorf, combines market research with new product development on its NIVEA Deodorant brand to provide exciting new products that better meet consumer requirements.

Beiersdorf has a clear goal – to be as close as possible to consumers, regardless of which country they live in. Developing superior consumer insights is fundamental to the continued future success of Beiersdorf and its international brands like NIVEA, Eucerin and Atrixo. These are the result of more than 120 years of experience in research and development.

Beiersdorf has launched many new brands and products into a variety of countries and categories. Being an innovation leader has allowed Beiersdorf actively to shape its markets and set new trends. These product launches have led to long-term global growth.

THE KEY STAGES OF MARKET RESEARCH AND NEW PRODUCT DEVELOPMENT

Market research involves the systematic gathering, recording and analyzing of data about customers, competitors and the market. This links marketers to consumers by supplying essential information to solve marketing challenges and help with marketing decisions.

Market research helps a company create and develop an up-to-date and relevant portfolio of products.

Creating new products

Beiersdorf’s international Market Research team is based at company headquarters in Hamburg, Germany. The team’s objective is to be the voice of the consumers within the organisation. High-quality market research has helped secure the long-term future of the business. Analysing and understanding the data gathered on consumers’ behaviours, needs, attitudes and opinions minimises the risks involved in making marketing decisions.

Market research in a global organisation needs the help and support of the company’s overseas affiliate companies. Most affiliate companies (in the UK for example) have dedicated Market Research Managers. how the npd prosses worksThey help the central research team in gathering and interpreting consumer views. These views provide information or insights that ultimately result in the development of new products suitable for a global market.

This case study follows the development of a new NIVEA Deodorant called Pearl and Beauty aimed at young women. This case study will give you a clear picture of how market research has helped New Product Development (NPD).

IDENTIFYING CONSUMER VIEWS AND PRODUCT NEEDS – WHERE TO START?

Market research should start with the consumer and serves two purposes:

1) To inform companies about consumer needs and desires. What are the trends in the market? What do consumers want?

2) To give consumers the opportunity to talk to the providers of products and services so that their views are taken into account.

questions that need answering

Businesses exist in a fast-moving world with increased consumer choice. It is essential that a company knows its market and its consumers before developing any new product. Lots of questions need answering.

Consumer insights drive New Product Development. This information takes into account their behaviours, attitudes and beliefs. It is an expression of their wishes and desires. Businesses use consumer insights to create opportunities for their brands. It is the starting point that enables brands to fit meaningfully into consumers’ lives.

Across countries, consumers are different in terms of culture and lifestyle. NIVEA’s challenge was to find similar insights from consumers across different countries. This was used to optimize product development.

Secondary research

In the deodorant category, NIVEA used many secondary research sources to discover consumers’ views and their need for deodorants. These related to different markets and were supplied by local country market researchers. These included:

i. A consumer Usage and Attitude study. This had been conducted a few years earlier across various markets (UK, France and USA).

ii. An external study by Fragrance Houses. This covered the importance of scent and fragrance to people’s well-being and mood.

Primary research

The research team felt therefore there was not enough recent knowledge about the consumer in the secondary research. They commissioned some primary qualitative research in key markets (Germany, France, UK and USA). This was aided by the local Market Research Manager. The aim was to understand the motivations for using deodorant amongst the female consumer.

Primary research is used when there is no existing data available to answer your questions.

The research involved small discussion groups of females. This helped researchers understand the beliefs and motivations of this group. There were several main findings:

  • There is steady growth in females shaving. They wanted to look after their underarms throughout all seasons (not just in summer).
  • Women cared increasingly about the condition of their underarms.
  • Women desired attractive, neat underarms. This symbolised sensuality and femininity.
  • The deodorant segment remained focused on functional rather than beautifying products.

Results of the research

The market research revealed an unexplored market potential for NIVEA Deodorant. The brand did not have a specific product that addressed ‘underarm beauty’ for the female consumer. No direct competitor was offering a product to meet these needs. So there was a clear opportunity to develop a new product. This would fit across different markets and with the current NIVEA Deodorant range.

TURNING CUSTOMERS INSIGHTS INTO PRODUCT CONCEPTS

Consumers showed a need for a ‘beautifying, caring deodorant’. The team generated ideas on how to address the consumer need.

From these ideas the marketing team created ‘product concepts’. These describe the product benefits and how they will meet the consumer needs. Several concepts were written in different ways. These explained and expressed unique product attributes.

The company needed to know which concept was preferred by prospective consumers. It carried out market research to test whether the concepts would work. The research was conducted amongst the desired target market. For Pearl and Beauty, the desired target market was 18-35 year-old women who were beauty-orientated, followed fashion and looked for products with extra benefits.

Quantitative research on the concept was carried out in two test markets (France and Germany). An international company like Beiersdorf must test products in more than one market to assess properly the global appeal.

The concepts were tested monadically. Monadic testing means that the respondent of the test is only shown one concept. This stops the respondent being biased by seeing many variations of the same product concept.

A number of criteria were used to test the concepts:

1) Deodorant category performance measures. These included wetness, dryness, and fragrance. The new concept must deliver generic core benefits.

2) Product attributes specific to the new product and NIVEA core values. The new Pearl and Beauty product has additional benefits to a ‘regular’ deodorant. For example, it leaves your skin feeling silky and gives you beautiful underarms. Consumers needed to understand and see these benefits.

3) The product needed to be relevant and motivate a consumer to purchase it.

The team chose the ‘winning’ concept. This best conveyed beauty while remaining relevant to the deodorant category and NIVEA brand.

Next the research team tested various name ideas for the product and developed different designs for the packaging. Packaging design plays a very important role in helping to communicate the image of the product. Pearl and Beauty needed to communicate femininity and sophistication. Pink was a natural colour choice for the packaging. They also used a soft pearlescent container to emphasise the ‘pearl extracts’ in the product.

Various design ideas were tested using quantitative market research. In addition, this helped to predict the volume of the new products that would be sold, the optimal selling price and the level of switching from existing NIVEA Deodorant and competitor products.

TESTING THE PRODUCT, BRAND POSITION AND ADVERTISING

Testing

The stages described so far produced a product concept that consumers felt was relevant and which they were willing to buy. The next stage was to test the product on actual customers. Many product launches fail, despite great advertising. A big reason is because the product fails to live up to the promises made.

The Market Research Team conducted a product usage test. A de-branded sample of the proposed new product was given to the target consumer of females in several countries. De-branded means the deodorant was in a blank container so that the consumers did not know who made the product or what type it was. Very often consumers form opinions about products and services from advertising and packaging. This can sometimes be very strong and creates a bias in what they think of a product before trying it.

The consumers were asked to use the new deodorant for a week. They kept a diary of when they used it and scored the performance of the deodorant against a list of criteria. These included:

  • Did it keep you dry all day?
  • Did you have to reapply it?
  • Did you like the fragrance?
  • Did it last all day?
  • Was the deodorant reliable?

Consumers applied the ‘de-branded’ deodorant under their right armpit and continued to use their current deodorant under their left armpit. This helped the users gauge if it was as good as or better than the brand they normally used. This gave a measure of how likely the consumer would be to swap brands.

The results of the test were very positive. Most consumers loved the fragrance and the feel of the product on their skin. They felt it performed as well as their current deodorant. Most said they would swap their brands after trying the product.

Brand positioning

Now the marketing team had a new product idea that consumers liked. It had a name and packaging design that were well received. They now needed to check how this fitted with the rest of the NIVEA Deodorant brand positioning and range.

The brand position is the specific niche in the market that the brand defines itself as occupying.

The NIVEA Deodorant Pearl and Beauty adds a touch of feminine sophistication and elegance to the NIVEA Deodorant brand’s personality. This built on the core deodorant positioning. It made NIVEA Deodorant more appealing, modern and unique to trendy, young female consumers.

Using qualitative research to inform advertising

The next stage was to brief an advertising agency to develop communication to support the launch of the new product. Through market research the team could check whether the advertisements positively supported and communicated the new product.

The company conducted qualitative research on some advertising ideas amongst various groups of the target consumers. It presented ideas in the form of ‘storyboards’ of what a TV advert could look like. The objective was to evaluate which were the best ideas in terms of:

  • Did they stand out as exciting or different?
  • Were they relevant to the consumer?
  • Did they communicate the right things about the new product?
  • Did they persuade the consumer to want to purchase the product?

Evaluating success

Once the product is launched and the consumer can actually purchase it, the research process does not stop.

Continuous consumer tracking can be carried out to find out consumers’ views of the new product. This involves interviewing people every day to find out whether they are using the product, what they think of it and why they would purchase it.

Beiersdorf uses other, secondary data sources such as consumer panel data and EPOS (electronic point of sale) data. These monitor the sales effectiveness of the product throughout the launch phase and through the product life cycle.

CONCLUSION

New product development should start with an insight based on consumer needs.

Throughout the NPD process, market research is a valuable tool for Beiersdorf to check viability and minimise the risk of the product launches.

Being an international company, it is essential that Beiersdorf develops new products using the insights of consumers across markets and cultures. This ensures the products are relevant to a large number of global consumers and will deliver the maximum return when launched.

This maximises return on investment for the company and results in happy, satisfied and loyal consumers


Source: thetimes100.co.uk

Leave a comment

Filed under Business, Case Study, Competitive Analysis, Consumer Psychology, Consumer Psychology, Fashion Industry, Fashion Marketing, Make-Up, Market Research, Marketing, Marketing Mix, Marketing Strategy, Media Consumption, Methodology, New Product Marketing, Place, Price, Product, Product Lifecycle, Qualitative Research, Quantitative Research, Research, Target Market, Trends

Discovering Customer Needs through Research

INTRODUCTION:

Barclays is a global bank. It provides a range of financial services in 56 countries. Barclays provides retail banking services to customers, whether they are individuals or businesses. It offers a broad range of financial products and services including current accounts, savings accounts and general insurance.

Within the UK, Barclays communications are designed to help customers “Take One Small Step” to managing their money better every day. Different kinds of customers represent distinct markets for Barclays. The market for personal banking services is very competitive. Personal customers have a choice of banks on the high street or on the web to assist them in managing their finances. For example, they can have their salaries paid into accounts, pay bills through the bank or save money to gain interest on their savings. There is also a competitive market for business banking services. Businesses require different services such as credit management, payments for suppliers or loans and overdrafts to help them to survive and grow. For example, an expanding business may need a mortgage to buy a new building.

Market segments

Each market is capable of being further sub-divided into segments. A market segment is a part of a whole customer group that shares particular characteristics. These include such factors as age, life stages, geography or occupation. Within the market of personal banking, the segments could include categories such as students, graduates, “new to work”, mature, and families. By identifying different market segments, organisations can ensure they are providing products or services to meet the needs of these customers.

In addition to this, appropriate promotional techniques can be used to reach the people in the separate segments. Through segmentation, Barclays has been able to devise appropriate banking offers for customers in different segments. This approach is helping Barclays to improve its market share of the student accounts market.  Barclays believes students constitute a very important market segment for the business. Students may be choosing a bank for the first time and Barclays hopes to retain these customers. By focusing on the specific needs of this segment, Barclays hopes to attract more student customers and keep them in the long term. Using market research has enabled Barclays to identify the right product offer that will meet their needs.

The case study shows how market research enabled Barclays to improve its student account offer.

PURPOSE OF MARKET RESEARCH

The purpose of market research is to gather data on customers and potential customers. The collected data aids business decision making. This therefore reduces the risks involved in making these decisions. In order to create a product proposition that would attract new student accounts, Barclays needed to understand fully the needs of this target market. Before engaging on external market research, Barclays began by asking itself a series of key questions. It did this to ensure the business was fully aware of all the relevant issues and did not make incorrect assumptions.

In asking itself these key questions at the start and reviewing internal customer data, Barclays was able to clarify its rationale for acquiring students. Firstly, students provide an opportunity for developing a long-term relationship. As the student market segment increases each year in September/October as the university term starts, Barclays has an annual opportunity to target new student customers who need an account and who might not yet have chosen a bank.

Secondly, the use of this data highlighted that in the years after opening their accounts, Barclays was able to establish a valuable long term relationship with students. This meant that students could now be seen as an extremely important market segment, and attracting new student customers became a significant opportunity.

This internal understanding was vital. With this background, Barclays designed a programme of market research. The purpose of this was to establish what students really needed from a bank. In this way it could offer appropriate products and services which would add value to students.

TYPES OF MARKET RESEARCH

Barclays began a process that involved both primary and secondary research.

Primary research

Primary research involves finding out new information. It finds the answers to specific questions for a particular purpose. These enquiries may take the form of direct questioning. For example, it may include face-to-face surveys, postal or online questionnaires, telephone interviews or focus groups. This type of direct contact with people is valuable as it gives specific feedback to the questions asked. However, it is important that the questions are clear and that the researcher is trained. This will ensure that the results are not influenced. Although primary research can be expensive and time-consuming, the up-to-date and relevant data collected can give organisations a competitive advantage. This is because their rivals will not have had access to it.

Barclays” primary research process began internally with two key questions:

  • Who should our key customers be?
  • What are their needs?

The insights from these questions provided a factual basis to work from.

Qualitative and quantitative research

After this an external agency was employed to carry out an opinion panel. This took the form of an online questionnaire. The results of this delivered data about the market itself, as well as Barclays” market share among this target audience.

Quantitative research presents information in a numeric way, such as graphs, tables or charts that can be used to analyse the information.

For example, Barclays found from the questionnaire that 81% of students surveyed held a savings account and 32% an investment savings account (ISA).  The opinion panel also provided qualitative feedback on what was of interest to students and what they wanted from an account.

Qualitative research provides information on consumer perceptions, such as:

  • how they feel about products and services
  • what they like or do not like
  • what they would want from a new product.

The panel produced valuable insights which Barclays used to help re-evaluate its existing student account. It then used the information to develop new features and benefits to meet the established needs.

Testing

The enhanced student account proposition was then tested directly with 100 existing and new Barclays Student Additions account holders. This was carried out through bank branches and an online questionnaire. The sample group provided more qualitative feedback about what motivated students to choose a particular bank. Although small, the sample allowed Barclays to get a feeling for how students would respond to the proposition. For Barclays, it was important to know what motivated a student to choose a bank. Using existing students meant the bank was able to assess if the new offer would meet their needs. The expectation was that new and future students would also find it attractive.

Secondary research

Secondary research focuses on existing information. It uses published data that previous research has already discovered. This covers a wide range of materials, such as:

  • market research reports
  • sales figures
  • competitor marketing literature
  • government publications, e.g. national statistics.

Secondary research may be quicker to carry out but may give less specific outcomes for the topic in question. This part of Barclays research revealed that student accounts in 2009 amounted to 0.4 million out of a total market of 5.4 million new accounts.

RESEARCH FINDINGS

Numeric data gives a factual basis for planning – a snapshot of a situation. On the other hand, qualitative information can find out the things that really matter to consumers. For example, 80 out of 100 consumers questioned might say they preferred one brand of coffee over another. However, more valuable information comes from understanding what it is they prefer. Is it the smell, the taste, the packaging or the price?

To meet student needs for a valuable, helpful financial service, Barclays needed to understand what students really wanted.

By using student focus panels and staff working in branches with a high proportion of student customers, Barclays was able to discover students” concerns, priorities and strength of feeling.

Research outcomes

The outcomes of the opinion panel and the sample of student customers showed that:

  • students relied heavily on different forms of credit. These included an easily manageable bank overdraft to finance their time at university
  • students wanted and often needed to own high-tech gadgets and electrical goods, such as laptops
  • students wanted to have separate accounts to manage their student borrowing and spending
  • any incentives offered would not alone motivate students to choose that product. They were expected as part of any deal.

This insight was a real help to Barclays when considering the most attractive proposition for students. Its objectives were to attract new student accounts. It also wanted to retain students as customers for life in a profitable relationship that met their financial needs.

Barclays could now start to put together an offer that would embrace the main concerns of the target market. These concerns were financial security, credit availability, flexible banking and the right sort of incentives.

IMPLEMENTATION AND EVALUATION

In 2009, Barclays set up a working group to oversee the setting up of the new student proposition. It used the insight from the research to establish the key features and benefits of the student account. These features are valid for the life of students” studies:

  • no monthly fee to keep costs down for students
  • an interest-free overdraft facility of up to £2,000 from starting the account. Previously this started at £500 in the first year and increased through the years of study. This extension helps students manage their finances.
  • mobile banking and a network of local branches for ease of access to accounts.

Incentives

Of several incentives tested with students, Barclays found that an incentive based on a mobile or telecoms offer would have most appeal. This idea was tested further with students on university campus. The students expressed a clear preference for an incentive offering mobile broadband:

“The broadband offer looks good…I”d definitely go in to find out more.” “It”s good if the broadband offer is for the life of the account´you may be in halls for the first year but not after that.”

To establish this incentive, Barclays researched broadband providers. It then entered into partnership with Orange – the UK”s number 1 broadband provider.

Orange”s strengths were a good business fit for Barclays and ensured that the offer had credibility and perceived value. Students who signed up for a Barclays student account were able to obtain a 25% discount on the monthly cost of whichever Orange mobile broadband scheme they chose.

Communicating the proposition

Having developed a student banking proposition that Barclays felt confident would appeal, it began to communicate the message and promote the new student offer. An innovative marketing plan was launched which involved:

  • a word-of-mouth campaign through “100 voices” which encouraged students to share their experiences of managing money whilst at college or university
  • promotional literature available in branches nationwide. This proved useful information for Barclays colleagues as well as for students and their parents to take away
  • online advertising through barclays.co.uk
  • direct mail to prospective students through the summer before going to university.
CONCLUSION

The Barclays student account proposition shows how it is crucial for a business to listen to its market. To do this effectively means targeting specific market segments to discover their needs.

Barclays” new student account proposition was an “insight-led” approach.

Using carefully constructed and phased market research, the bank was able to gain an overall insight into the thinking of students. In the early stages of the research, it was discovered that the student segment provided an opportunity to develop a long-term relationship. It was found that students were not necessarily “here today, gone tomorrow”. If the bank made a valuable and relevant offer, students were likely to remain lifelong customers.

Barclays” initial target was to increase the overall number of student accounts by 25%. This target was exceeded with an increase of 34%. As a result, Barclays increased its market share of the student market, moving from third to second among the top four market leaders.

The process of meeting customer needs is an ongoing one. Barclays has a continuing plan for re-evaluating its student proposition to ensure it remains relevant to the target audience.

Source: thetimes100.co.uk

Leave a comment

Filed under Business, Case Study, Consumer Psychology, Consumer Psychology, Market Research, Marketing, Marketing Mix, Marketing Strategy, Methodology, Product, Qualitative Research, Quantitative Research, Research, Target Market

Insights on Social Media Monitoring for Luxury Brands: Facebook, Twitter, Blogs and Forums.

Major B2C companies should increase their marketing investments in On-Line activities in 2010 according to a recent survey completed by Forrester Research. Social Media should be the Big Winner.

Marketing Investments 2010 - Forrester Research
(*) Forrester Research – Global Marketing Leadership Online Survey (multiple answers)

However, the main question remains the optimal allocation of resources in Social Media Marketing: recruitment of a Community Manager, selection of specialized agencies, production of specific content?
One way to look at it could be to monitor actual behaviors of Social Media users in order to define priorities.

I have recently performed an in-depth analysis amongst 28 brands in the Luxury, Jewelery and Watchmaking industry based on Customer Centric MatrixTM methodology (using the monitoring tool Radian 6).

Social Media and Luxury industry: Blogs and Forums are still ahead.

  • “Traditional” Social Media Channels (Blogs and Forums) represent almost 80% of the content published on Luxury and Watchmaking brands
  • The second largest Social Media Channel (Twitter 19%) is the one where brands are the less present and active
  • 34% of brand related content is not supported by a Luxury Brand environment (Twitter and Forums)

Social Media Monitoring - Luxury Brands - Split by Media Type

3 major profiles of Social Media usage amongst the 28 Luxury brands analyzed

  • Active engagement (7 brands)
    Social Media content related to these brands reflects a very active involvement of brands and their communities of “Fans”. A regular and frequent follow-up of brands takes place mainly via Blogs and Twitter. Brands are usually present with an active presence through their Official Facebook page.
    Louis Vuitton communities  are a good example of this profile.
  • Passionate and Sharing (4 brands)
    Committed communities of passionate clients and fans are interacting regularly with their brand(s ). Moreover, they use all Social Media channels to discuss and share points of views.
    Breitling Fans illustrate well this profile.
  • Personal Involvement (17 brands)
    Posts related to these brands are mainly channeled by Blogs. It corresponds usually to individuals sharing their interest via Blogs dedicated to a sector (e.g. watchmaking) or a brand.
    Jaeger Lecoultre can illustrate this profile.
Social Media Monitoring - Luxury Brands - Split by User Groups

xxxxx
The main conclusions of this analysis indicate some practical tips“Story Telling”Frequent publishingSpecific content initiated by the brand,synergies between Social Media channels are some of the critical success factors.

28 brands were monitored and analyzed in March/April 2010
The research sample includes the following sectors: leather goods, watchmaking, jewelery and accessories. The scope covers International leading brands, challengers and niche brands.

Methodology:

– Customer Centric Matrix combining quantitative and qualitative measurements
– Social Media Monitoring based on total number of posts (all languages and all regions) supported by Radian 6
– Social Media channels based on Radian 6 definition

Source: weblog.customercentric.org

Leave a comment

Filed under Ad Campaign, Advertising, Business, Case Study, Consumer Psychology, Consumer Psychology, Digital Creative, Digital Marketing, E-Commerce, Fashion, Fashion Industry, Fashion Marketing, Fashion Retailer, Interactive Campaign, Interactive Marketing, Interactive Marketing Online, Internet Marketing, Luxury Brand, Market Research, Marketing, Marketing Mix, Marketing Strategy, Media Outlet, Merchandising, Methodology, Networking, New Product Marketing, Niche Market, Online Marketing, Online Product Marketing, Product Advertising, Promotion, Publicity, Qualitative Research, Quantitative Research, Research, Social Marketing, Social Media Marketing, Target Market, Technology, Trends, Viral, Viral Campaign, Viral Video, Web Marketing, Website

Consumer Psychology: Understand your Customer

“…the aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself.” ~ Peter Drucker

Introduction
Markets have influenced our acquiring/buying habits from the earliest days of our evolution, perhaps as early as bartering systems in pre-historic times. One tribe had an excess catch from hunting; another tribe had an excess of hides from last season’s catch and the market is born. The exchange of goods is motivated by need and its reptilian drive, “survival of the fittest”.

Fast forward to today’s modern marketing. As the science of marketing has developed, several concepts have gained wide-spread application. The primary focus today is that fully understanding and tapping into the consumer’s motivation, which can be deeply subconscious, results in brand loyalty in purchasing products and services. An example is Clotaire Rapaille’s approach that to understand the “collective unconscious” and thereby articulate the “code” opens the way to desired marketing success.

The foundation of marketing science is based on market research strategy, to know the customer and to fill needs that need filling. Understanding the customer can produce high-quality products, such as Apple has done. On the other hand, some marketing approaches have turned into manipulative endeavors to sculpt the customer to believe they need what’s being sold. This form of marketing is distorted and disturbing. This BLOG post reviews the history and development of marketing as a science, then explores the power of modern customer-centric marketing updated for the digital age, and then looks at the downside of manipulative marketing.

Background – Development of Marketing as a Science
Early development of marketing as a science included Louis Cheskin and Neil Borden. Cheskin contributed the “customer-centric” approach, rather than the top down approach that had been previously popular. The earlier approach to marketing was top-down, where a company would create a new product with the assumption that it would sell. A customer-centric approach is based on consumer feedback, often through customer focus groups and observation. This approach defines the needs of the customer thereby providing products and services that meet those needs. For example, through customer research, Cheskin helped engineer the success of margarine by changing it’s color from white to yellow, and advertising it’s similarity to butter (Cheskin, 1959).

Borden, in his seminal article, “The Concept of the Marketing Mix,” named the 4Ps: Product, Price, Place and Promotion (Borden, 1964). The evolution of technology has brought with it increasing speed as well as additional Ps: People and Performance. We have moved from a top down approach, where the consumer was thought to be one amongst many and easily influenced, to a customer centric approach, where individuality, instinctual desires and inner drives have become the focus of marketers.

Purpose of Marketing
I believe there is a true purpose to the original intent of marketing. Discovering human needs and providing the products or services that support those needs is the most effective formula for exchange in the marketplace.

In Making Meaning: How Successful Businesses Deliver Meaningful Customer Experiences, the authors state, “We envision a time when customers increasingly make their purchase decisions based on deeply valued meanings that companies evoke for them through their products and services – in other words, meaningful consumption – as opposed to simply responding based on features, price, brand identity, and emotional pitches” (Diller, Shedroff, & Rhea, 2008, p. 1).

For example, Apple captured the MP3 market with the iPod and iTunes. The iPod became an emotionally constructed appendage that represents much more than just a music device. It has become a cultural icon that people purchase not only for usefulness but also for a sense of belonging, an image of appearing “cool,” and much like a stylistic piece of jewelry, it comes in hip colors and unique styles.

The Evolution of Marketing Research
Concept Engineering, a market research approach developed by Gary Burchill at MIT, uses an ethnological immersion process called “Voice of the Customer.” Key people on a new product team visit customers, interviewing and observing them in order to discern what the true need is. They are especially trying to discover “latent needs,” needs or wants that the customer has but is not consciously aware of. They then target their new product or service to fill that need or want. This process of listening to the customer allows the new product developers to make meaning of the consumer’s direct experience. Innovation and customer satisfaction can follow (Burchill & Brodie, 1997).

Apple – A Case Example

Apple is a great example of the power of understanding customer needs and providing products and services to fill those needs. Apple has become a cultural icon for our technological era and this digital age. As I wrote in this week’s forum post, Steve Jobs announced Apple’s newest, latest, greatest and COOLest product this past January with global fan-fare: the iPad.

In typical Apple marketing fashion, Apple required customers to wait several months for the iPad’s release. During this time Apple launched a marketing blitz, including an iPad frenzy on Twitter. iTunes has just launched an update for interfacing with the iPad, just in time for the iPad’s release. There was a Netflix app available for the new iPad even before the iPad’s release. Many people tweeted that they were downloading it in preparation for getting their iPad. There were 240,000 pre-orders awaiting the iPad.

Apple has found the “code” for “cool,” at least for this digital generation. Apple is a cultural phenomenon, as the MacHead photo illustrates – “the cult of mac.” There are many who are fervently dedicated. The iPod is jewelry in addition to music, an emotional as well as pragmatic piece of “cool,” coming in different colors and styles to match each person’s individual uniqueness. Apple understands its customers and has successfully tapped into their latent needs, capturing the market by storm.

Daniel and I picked up our iPads on Saturday, documenting and interviewing folks in line. On the whole, the Saturday crowd are early adopters who do respond to Apple’s advertising. There were 2 mechanical engineers and another student, among many others. The wait was short. The Mac Genius who waited on us was knowledgeable and responsive. We left with our questions answered, our iPads and leather cases in hand, and BIG SMILES.

The picture below shows four generations of Apple users: Stephanie, her Mom, her Grandmom, and her son. This was a family adventure for them. Their smiles and excitement might indicate a bit about their psychology. They said they considered this a bonding experience as they upgraded their technology together and supported one another. They were really enjoying playing with their “new toys.” 

Apple sold 300,000 iPads on Saturday according to reported figures. This first rush of purchases is the “early adopters” phase. Apple’s next marketing target is to reach more of the general population.

Downside of Manipulative Marketing
There is a downside to current day marketing. The episodes we watched from Frontline highlighted the hidden and manipulative side of marketing in our digital culture. For example, the use of “product placement.” Product placement is a form of embedded marketing.  Branded goods are placed, without explicit advertising, in the storyline of movies, TV shows, or other programming. This is often not disclosed at the time the product is being featured. (Wikipedia).

Consider that the star of this week’s episode of “Modern Family” is YES: The iPad.  On the eve of the iPad’s launch – Phil Dunphy, one of the main characters in this season’s runaway hit sitcom and touted to be the best new comedy of the year, celebrates his birthday. He is all encompassed in his desire for an iPad. His wife misses the early morning rush to stand in line at the Apple store, eventually getting there only to find they are “sold-out”. Message to audience: get there early, get there or you will miss out. Eventually, Phil’s son manages to get an iPad from one of Phil’s friends through social networking. Phil gets the iPad, everyone is happy, all is right with the world.

Advertising Age reports that this was just a very clever storyline; using Apple is like using a cultural icon, and not product placement. How it’s perceived is another thing though. Advertising Age states, “Even without Apple plunking down any cash, last night’s episode was tantamount to a huge wet kiss of approval for a product that has yet to be tested by actual consumer use (Steinberg, 2010).”

Whether it was product placement or not, it caused significant stirrings and fans perceived it as such reporting being furious. A typical post on IBDb forums stated, “Tuned in for comedy, sat through a 30 min iPad commercial (Bershad, 2010).” Consumers are becoming increasingly aware and critical of manipulative marketing, either actual or perceived.

Marketing’s Message: CONSUME

The message most marketing is driving home to the consumer is MORE IS BETTER. While this is a fallacy, the marketer’s job is to create more and more desire linking satisfaction or fulfillment to their product or service, to continuously consume.

In The Paradox of Choice: Why More Is Less, Barry Schwartz explores the world of excess and its impact on our daily lives. In a local supermarket, he found over 30,000 grocery items available, including 285 varieties of cookies. He concluded that having too many choices is bewildering, erodes our psychological well-being, and becomes restrictive rather than freeing (Schwartz, 2005).

So, in fact, this culture of consumerism is in a crisis of sorts. Product and service images come rushing towards us from every channel of media available, print, web, movies, tv, mail, email, and others. The message is clear and in many ways enticing. BUY! This onslaught has effected us and our culture. We have become a nation of consumers.

“If I were dictator of my own small island, it’s not capitalism that I would get rid of, it’s marketing. That ever-present force telling us we should be more beautiful, happier, drunker, skinnier, hipper, and whatever else it takes more money to attain.” ~ David “Oso” Sasaki

The Future of Consumerism

Internet marketing continues to develop forums for making the strong voice of consumers heard. Dee Dee Gordon, founder of Look-Look, an online trend tracker, focuses on the younger demographic, those 14 – 30. She is a key contributor to product development. She provides the voice for this younger digital generation by gathering data about their needs, wants, habits, and lifestyles, listening to them and describing their world.

Marketing will continue to be a major influence on our decisions. The more we understand our own motivations as well as the marketing techniques used by professionals, the more discerning we will become.

Source: catherineaseo.blogspot.com

Leave a comment

Filed under Ad Campaign, Advertising, Business, Consumer Psychology, Consumer Psychology, Digital Creative, Digital Marketing, E-Commerce, Fashion Marketing, Fashion Retailer, Interactive Campaign, Interactive Marketing, Interactive Marketing Online, Internet Marketing, Luxury Brand, M-Commerce, Management, Market Research, Marketing, Marketing Mix, Marketing Strategy, Media Consumption, Media Outlet, Merchandising, Methodology, Mobile Marketing, Networking, New Product Marketing, Niche Market, Online Marketing, Product Advertising, Promotion, Publicity, Qualitative Research, Quantitative Research, Research, Social Marketing, Social Media Marketing, Target Market, Technology, Trends, Viral Campaign, Web Marketing