| 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..?
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..?
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.