| Marketing |
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I am reading Predictably Irrational by Dan Ariely. It is a book about how apparently
irrational behaviour becomes predictable buying patterns for consumers. It talks a lot
about the science of emotional decision-making, and is a very interesting subject.
In one of the chapters Dan touches on the fact that the US savings rate is among the
lowest of developed nations, and that the acceptance of household debt was a
potentially dangerous phenomenon. (Observations recently borne out).
He observes the trend in consumerism with the design of closets (to hold our goods).
A hundred years ago, houses had virtually no closet space. There were several
reasons for this, including practical construction, wardrobe furniture, and tastes. But
the primary reason is probably that people just did not own a lot of clothing (or a lot of
anything).
By the 1940's closets began to grow a little, but were still cramped. In the 1970's they
were large enough to hold clothing and some extra gear.
But only in recent decades has the concept of 'walk-in' closets taken hold, allowing us
to fill these spaces with lots of things that we do not use every day.
irrational behaviour becomes predictable buying patterns for consumers. It talks a lot
about the science of emotional decision-making, and is a very interesting subject.
In one of the chapters Dan touches on the fact that the US savings rate is among the
lowest of developed nations, and that the acceptance of household debt was a
potentially dangerous phenomenon. (Observations recently borne out).
He observes the trend in consumerism with the design of closets (to hold our goods).
A hundred years ago, houses had virtually no closet space. There were several
reasons for this, including practical construction, wardrobe furniture, and tastes. But
the primary reason is probably that people just did not own a lot of clothing (or a lot of
anything).
By the 1940's closets began to grow a little, but were still cramped. In the 1970's they
were large enough to hold clothing and some extra gear.
But only in recent decades has the concept of 'walk-in' closets taken hold, allowing us
to fill these spaces with lots of things that we do not use every day.
Ford's market share in the US has increased four months in a row. According
to Advertising Age, this has not happed for nearly 15 years.
Now why should ford be benefiting in this difficult economic environment? They
are not giving away large rebates, like other manufacturers, in fact, most of their
promotions are going towards their brand.
It seems that a whopping 93% of Americans are aware that Ford has not
accepted any government bail-out money. And 95% of our citizens know that GM
and Chrysler have.
Could it be that even in this socialist day and age Americans really respect
companies and individuals who take personal responsibility to get the job done,
and accept the consequences of their actions..?
to Advertising Age, this has not happed for nearly 15 years.
Now why should ford be benefiting in this difficult economic environment? They
are not giving away large rebates, like other manufacturers, in fact, most of their
promotions are going towards their brand.
It seems that a whopping 93% of Americans are aware that Ford has not
accepted any government bail-out money. And 95% of our citizens know that GM
and Chrysler have.
Could it be that even in this socialist day and age Americans really respect
companies and individuals who take personal responsibility to get the job done,
and accept the consequences of their actions..?
A quote from Peter L. Bernstein, who recently passed away:
"How could so many have failed to see that all the known parameters were bursting
apart?...It was precisely our massive inputs and intimate intercommunication that
made it impossible for most of us to get to the exits before it was too late."
He was talking about the stock collapse of in 1974, but of course this could be now or
a few years from now. Bernstein was an advocate of a very simple concept promoted
by The Black Swan and other books.
He put it in simple terms, "We simply do not know what the future holds." this is a
powerful statement, and disappointing to many marketers and strategic planners.
Why? Because it means that carefully laid out strategies can be made worthless at any
time.
Does this mean you should not plan? Of course not. But it means that one needs
more than one or two plans. Not a strategy, but strategies that present alternative in the
simple event that we are wrong.
Bernstein's observation that oversupply of data and analysis prevents us from seeing
things clearly (and more important - quickly) is a valuable lesson that is difficult to learn
from, in today's business world.
"How could so many have failed to see that all the known parameters were bursting
apart?...It was precisely our massive inputs and intimate intercommunication that
made it impossible for most of us to get to the exits before it was too late."
He was talking about the stock collapse of in 1974, but of course this could be now or
a few years from now. Bernstein was an advocate of a very simple concept promoted
by The Black Swan and other books.
He put it in simple terms, "We simply do not know what the future holds." this is a
powerful statement, and disappointing to many marketers and strategic planners.
Why? Because it means that carefully laid out strategies can be made worthless at any
time.
Does this mean you should not plan? Of course not. But it means that one needs
more than one or two plans. Not a strategy, but strategies that present alternative in the
simple event that we are wrong.
Bernstein's observation that oversupply of data and analysis prevents us from seeing
things clearly (and more important - quickly) is a valuable lesson that is difficult to learn
from, in today's business world.
I live in the small town of west Chester, Pa. Over the past year or so,
several highly original food purveyors have opened up in town. Each
shop offers something decidedly out of the ordinary.
By marketing to a specific subset of shoppers, they are attempting to
speak to people who are fans of a type of food, or else expose them to
a brand in a unique way.
I recently visited the interesting shop, a Taste of Olive. The walls are
lined with metal vats, each containing a different type of exotic olive oil
or vinegar. There may be a virgin Italian oil infused with intense Tuscan
herbs, for example, or a balsamic vinegar with essence of tangerine.
several highly original food purveyors have opened up in town. Each
shop offers something decidedly out of the ordinary.
By marketing to a specific subset of shoppers, they are attempting to
speak to people who are fans of a type of food, or else expose them to
a brand in a unique way.
I recently visited the interesting shop, a Taste of Olive. The walls are
lined with metal vats, each containing a different type of exotic olive oil
or vinegar. There may be a virgin Italian oil infused with intense Tuscan
herbs, for example, or a balsamic vinegar with essence of tangerine.
If you love food and cooking, you will
quickly get caught up in the shop
offerings - little pill-type cups are set
out to allow you to taste every oil.
You are encourage to mix oils and
vinegars, to experience the possible
dressings or marinades you can
concoct.
When ready, you open the tap and
fill your bottle - the staff seals it like a
precious split of wine.
You get credit for returning clean
bottles for a new purchase.
quickly get caught up in the shop
offerings - little pill-type cups are set
out to allow you to taste every oil.
You are encourage to mix oils and
vinegars, to experience the possible
dressings or marinades you can
concoct.
When ready, you open the tap and
fill your bottle - the staff seals it like a
precious split of wine.
You get credit for returning clean
bottles for a new purchase.
Nearby is Eclat - a chocolatier run by
Christopher Curtin. Mr. Curtin studied chocolate
making in Europe, most notably Germany and
Cologne.
The result is a shop that sells malt whisky
chocolate balls, Sizhuan-spiced squares, and
dark wafers with pink peppercorns trapped inside
them.
The staff wears handsome black chef cook
outfits, and the quality of the confections are
wonderful.
Christopher Curtin. Mr. Curtin studied chocolate
making in Europe, most notably Germany and
Cologne.
The result is a shop that sells malt whisky
chocolate balls, Sizhuan-spiced squares, and
dark wafers with pink peppercorns trapped inside
them.
The staff wears handsome black chef cook
outfits, and the quality of the confections are
wonderful.
My last stop of the day was at a wine bar run by the Kreutz Creek Winery, located in
Chester County. Kreutz Creek has BBQ and wine festivals like many local producers, and
wine bars, while nice, are nothing new in wine marketing.
...Until the woman behind the bar explained that they offered a "BYOF". A what? "Bring
Your Own Food," she explained.
For a few dollars, you can sit at a table with take out, home prepared, or delivered food
and sample all the wines that Kreutz Creek makes. On many nights, they offer live music
while you sip. Of course, they hope you become familiar with their offerings and pick up a
few bottles.I bet plenty do.
The economy has seen better days - but it is in times like these that great marketing
ideas stand out, and capture the public's imagination. That's what marketing is all about.
Chester County. Kreutz Creek has BBQ and wine festivals like many local producers, and
wine bars, while nice, are nothing new in wine marketing.
...Until the woman behind the bar explained that they offered a "BYOF". A what? "Bring
Your Own Food," she explained.
For a few dollars, you can sit at a table with take out, home prepared, or delivered food
and sample all the wines that Kreutz Creek makes. On many nights, they offer live music
while you sip. Of course, they hope you become familiar with their offerings and pick up a
few bottles.I bet plenty do.
The economy has seen better days - but it is in times like these that great marketing
ideas stand out, and capture the public's imagination. That's what marketing is all about.
I travel overseas a lot. So I sometimes use instant coffee in lands that are coffee-challenged. See that Starbucks is in
the powered coffee business, I brought some along. It tastes OK, but will never be a substitute for the real thing.
No doubt many people will be up in arms over this. I certainly have my doubts about this development. After all, SB is all
about the experience of having them custom brewing drink for you. I am in Vietnam at the moment, and the room has a
special ceramic Vietnam coffee maker with cup and plunger. - an interesting instant coffee experience, compared to
opening a packet from SB. The economy is lousy, but that is no reason to toss away a unique marketing advantage.
the powered coffee business, I brought some along. It tastes OK, but will never be a substitute for the real thing.
No doubt many people will be up in arms over this. I certainly have my doubts about this development. After all, SB is all
about the experience of having them custom brewing drink for you. I am in Vietnam at the moment, and the room has a
special ceramic Vietnam coffee maker with cup and plunger. - an interesting instant coffee experience, compared to
opening a packet from SB. The economy is lousy, but that is no reason to toss away a unique marketing advantage.
This spot should win an award. While not totally original,
it is especially well done, with an excellent sound track.
This is a feel-good advertisement that is quite effective.
These days, it's easy to see how people feel about an ad. All
you need to is go to YouTube, see if it is posted already, and
see what people have to say about it.
(As an aside) - imagine - we can see an ad, critique it,
see it over and over, and send it to others , if we so choose.
Truly, this is a marketer's dream come true.
Click on the image at left to see the Amex commercial.
it is especially well done, with an excellent sound track.
This is a feel-good advertisement that is quite effective.
These days, it's easy to see how people feel about an ad. All
you need to is go to YouTube, see if it is posted already, and
see what people have to say about it.
(As an aside) - imagine - we can see an ad, critique it,
see it over and over, and send it to others , if we so choose.
Truly, this is a marketer's dream come true.
Click on the image at left to see the Amex commercial.
Barnes and Noble sold out of their Nook e-reader before the Thanksgiving
holiday. Now their stores have entrance displays manned by clerks who can only
give you literature on the device.
They expect to have a supply in on Dec. 6th, and that stock will last less than
24 hours. Pre-orders will be delivered in January.
The Sony Daily Edition ($399 wireless version) is now out of stock for the
holidays. Although still costly, a little cumbersome regarding download options,
and not even in color, e-readers are taking off.
Estimates of 2 million sold this season have been revised to 3 million,
although no one knows what would happen if there was stock.
The obvious demand opens up counter-trend possibilities - a basic $99
e-reader for the masses (look for this in 2010), and high-end color does-it-all
product (like the Apple iPad coming next year.
holiday. Now their stores have entrance displays manned by clerks who can only
give you literature on the device.
They expect to have a supply in on Dec. 6th, and that stock will last less than
24 hours. Pre-orders will be delivered in January.
The Sony Daily Edition ($399 wireless version) is now out of stock for the
holidays. Although still costly, a little cumbersome regarding download options,
and not even in color, e-readers are taking off.
Estimates of 2 million sold this season have been revised to 3 million,
although no one knows what would happen if there was stock.
The obvious demand opens up counter-trend possibilities - a basic $99
e-reader for the masses (look for this in 2010), and high-end color does-it-all
product (like the Apple iPad coming next year.
I use Roku. That's the box that costs $100 that wirelessly
downloads Netflix films to your TV. Last year, the service added
Amazon movie rentals for $1 less than cable, typically.
Now they have just added a host of 'apps' (just think how
Apple dominates our thinking now!). These include services like
Pandora and access to my Facebook and Flickr photo albums.
More exiting to me is a growing host of content - dozens of
video podcasts on technology, news analysis, entertainment.
This means that the promise of 'narrowcasting' -
programming for small audiences who highly value specific
content - is really arriving. I can watch or listen to this
programming on my computers or television sets (and without a
doubt soon on my phone).
The opportunities for enjoying (and sometimes paying for)
content that really interests me is growing. And producers of this
content can now earn a living from an audience willing to pay for
unique services.
This is just the beginning - and an exiting time for media.
downloads Netflix films to your TV. Last year, the service added
Amazon movie rentals for $1 less than cable, typically.
Now they have just added a host of 'apps' (just think how
Apple dominates our thinking now!). These include services like
Pandora and access to my Facebook and Flickr photo albums.
More exiting to me is a growing host of content - dozens of
video podcasts on technology, news analysis, entertainment.
This means that the promise of 'narrowcasting' -
programming for small audiences who highly value specific
content - is really arriving. I can watch or listen to this
programming on my computers or television sets (and without a
doubt soon on my phone).
The opportunities for enjoying (and sometimes paying for)
content that really interests me is growing. And producers of this
content can now earn a living from an audience willing to pay for
unique services.
This is just the beginning - and an exiting time for media.