The Power of the Child

While I stood in line at one of the local stores, I observed a happy duo of parent and child as they walked hand-in-hand toward one of the cash registers.  The youngster was probably no older than five, and the pair appeared to enjoy one another’s company.  They laughed and smiled at each other, something akin to a Kodak moment or cheesy Hallmark commercial.  Nothing could seem to distract these two or diminish their harmonious interaction. 

Then, the unthinkable happened.  While patiently waiting in line, the young child noticed the merchandise displays located near the cash register.  He stared at the rows of delicious options:  chocolate bars, chewing and bubble gum, assorted candy, and miniature toys.  Remembering his adult counterpart and the loving moments they just previously shared, he decided to take the risk and make his request.  “May I have some candy, please?”  His mother looked at him and politely replied, “Not today, sweetie.”  This slight rebuff left the child unfazed.  He continued, “Plllleeeeeeassse?  Just one thing?”  His eyes grew puppy dog-like.  “No, honey.  You don’t need any candy.”  He poked out his lips and gave his mom his best sad face.  I overheard him say, “I said please.  Why can’t I have it?”  Without fail, his mother offered him the generic default response that most parents say to their children:  “Because I said so.”

With those three words, our young protagonist’s behavior did a complete 180.  Now was the time to pull out all the stops and take the next logical step:  make a scene.  All of a sudden, the store was filled with a loud, high pitched hybrid of crying and yelling, and that once admirable relationship between mother and child dissipated to a showdown and an all out confrontation.  “I WANT THE CANDY!  WHY CAN’T I HAVE IT?”  By this time, most of the other shoppers stopped and turned to look at the mini-breakdown.  The mother’s face turned red as she attempted to scold, console and quiet the child all at once.  A bit defeated, she said “Alright.  Alright.  Go ahead and get it.  Pick what you want.”  The tears stopped, yelling ended, smile reappeared, calm resumed.  The winner was crowned and rewarded, and the consumer decision-making process lasted all of two minutes.     

So what does all of this have to do with buyer behavior?  My conclusion is two-fold:

1.      Store displays are strategically placed and stocked.  Often times, consumers choose those items as last minute purchases they rationalize because of those products’ relative inexpensiveness and small size.  Both children and adults are targets for this methodical approach to fuel consumer purchases.

2.      Never underestimate the power of a child’s influence.  With parent’s eager to make their children happy (sometimes at all costs), kids have a significant impact on their family’s purchase decisions.  Marketers and retailers alike understand the gentle (and even aggressive) persuasion that children exert, and likely appeal to these young people for this reason.  Some may find this act somewhat manipulative; others would consider it quite clever.

D.J. Vaughn

Blue Box Fever - The Silver Bauble vs High End Gems

http://www.businessweek.com/magazine/content/06_51/b4014049.



A recent Business Week article pitted Tiffany’s Silver Bauble collection against its high end jewelry to determine what was actually the cash cow for the company.  As a lover of all things Tiffany’s – there’s just something about that blue box! – I read intently worried my affordable trinkets might soon disappear.  What will I treat myself with for those big accomplishments?  Will something other than that box really feel like a reward?  Despite the drool factor of the high end gems, I just could not see myself upgrading my treat past the silver bauble price tags.  As the panic attack set in, I finally started to focus on the words in the article, and not my thoughts, and was happy to see these baubles will not going anywhere.

It seems I’m not the only girl who can’t stomach the super high end gem tags but loves a good silver bauble treat every now and then.  Tiffany’s silver jewelry has actually become a stable market for the company, and through most of the recession has assisted with profits. In fact, I was surprised to see that the profit margin, due to the lower cost of labor, is actually higher for the lower prices silver jewelry.  As noted below, it appears the fun, silvery jewelry lines may be here to stay:

“Problem is, glam items aren't as profitable as cheaper adornments. The cost of materials and labor to make a diamond-and-platinum necklace is high relative to the price Tiffany can charge; it can mark up less expensive jewelry more. In general, diamond jewelry has a gross margin of about 50%, vs. 70% for silver goods, estimates JPMorgan Chase. With Tiffany saying the "greatest growth" is coming from products with precious stones, lower-margin items likely account for a bigger slice of the pie. That helped send Tiffany's gross profit margin to 53.5%, from 54.1%. It doesn't sound like much, but in the jewelry biz, every fraction of a point counts.”

It appears that Tiffany’s strategy, whether to attract girls younger or appeal to the entry level working class female, of creating a few affordable and trendy lines might be just what the recession doctor ordered.  When money is tight we know that people “treat” themselves less – less salon time, less pricey dinners, fewer nights on the town, and even less accessorizing – after all, it’s hard to justify those little extras with all the uncertainty.  Even those big accomplishments or promotions may cause us to put the reward off and err on the side of money savings.  But with the silver baubles, Tiffany’s is still appealing to us by allowing a smaller, guilt-free purchase.  This will keep us in the door during tough times, and will most likely create the blue box obsession that should help lift the more expensive lines back up post recession.  With graduation and hopefully a job on the horizon, I’m glad to hopefully find a guilt free bauble reward!

Bridget Wilson

Airtel ReBranding

I was flooded by thoughts when I sat to write this. So much that I ended up spending more time organizing this article so that it makes some sense than the time I needed to write it.

Old Airtel Logo

The fifth biggest telecom operator of the world and the biggest in India changed its look and feel by re branding itself. It changed the logo which was already regarded as the strongest and powerful. Why did Airtel have to change it?

Looking at the markets Airtel operates in, I thought I could come out with a  plausible explanation for trying to improve the best. Airtel operates in 20 countries including India and Africa, the countries where the average age is younger compared to the rest of the world. The youth form the biggest chunk of mobile subscribers are instrumental in making the choices to choose the service for the older people. 

The following shows an older Airtel advertisement.

Why did they do it?

With a soft A.R. Rehman melody which became the most downloaded tune from the mobile operators in India and its old logo Airtel had developed a brand identity of freedom, inspiring and patriotic which differentiated itself from the others in the big volumes  Indian market. It signed up big personalities like the bollywood star Shah Rukh Khan and ace cricketer Sachin Tendulkar. This further embellished the brand and made it somewhat 'upscale'. What Airtel perhaps realised is the lack of informality and excitement that is essential to appeal to the youth. And that is the underlying reason for the shift in its strategy and the re branding in my opinion.

New Airtel Logo

In the course of expanding internationally Airtel has acquired a whole lot of companies like Zain in Africa and Warid in Bangladesh. Now as these entities transition to the brand Airtel the company is trying to gain an international image -- a “new, modern, more friendly and accessible” image in the minds of all the users in these various countries.

The shift is shown by the change of letters to lowercase and a small logo that inspires attributes of excitement, competence and ruggedness. The brand personality required  for the Target audience is perhaps of a friend who you could call anytime for getting out and who would always encourage you to “Express Yourself”

A newer Airtel advertisement

Other elements in the logo –

The lowercase is to signify humility. Red colour is for heritage, energy and passion. The font wants to showcase a dynamic force of “unparalleled energy”

The trend towards keeping a young brand personality is seen not only among mobile telecom services providers but also sports brands such as Nike where over time it gradually transformed into a ‘swoosh’ from four uppercase letters. Airtel overall has benefitted marginally by the rebranding as the data suggests. However the lack of immense improvements can be attributed to the huge success of the rival Vodafone with its ZooZoo ad series which has come almost head to head with this leader in the Indian market. The way Airtel reacts to this must be an interesting marketing tactic to be seen.

~Anshuman Rastogi

Mano a Mano in El Baño

I am a hugely ‘ginormous’, super fan of the Old Spice Guy.

I think he is a great spokesperson for the brand’s revitalization effort, he’s hilarious, and he’s pretty easy on the eyes. 

See what I mean?

Anyway, being the fan and internet junkie that I am, I naturally subscribe to Old Spice Channel on Youtube. My subscription gives me a front row seat to the Old Spice brand campaign activities, and of course, up close and personal time with 'the man my man can smell like'. (Random Thought: Imagine how powerful this campaign would be if 'smellivision' already existed. The old spice guy would be wielding the power of conditioned responses via tv disseminated fragrance: Scent marketing to say the least. YUMMY!)

Anyway, back to reality. 

As a youtuber, I check for new videos weekly and a couple months ago, I came across the craziest campaign by Old Spice. It was called Mano a Mano in El Baño. Mano-a-mano is a spanish term that literally means hand to hand. It was a term originally used for bullfights where two matadors would alternate competing for the admiration of the audience. What does this have to do with Old Spice? I'll tell you.

The premise of this campaign was that Fabio... do you remember Fabio? 

Fabio

Yes, that Fabio! The tall, buff, long haired Italian model for romance novel covers who is probably 84 years old by now. Well, the premise of the campaign was that Fabio (New Old Spice Guy) challenges Isaiah, the Old Old Spice Guy to a duel in which the Old Old Spice Guy must defend his title.

And the Saga Begins!

So the New Old Spice Guy and the Old Old Spice Guy engaged in a series of challenges. The battle was waged in the form of a cascade of short internet videos responding to questions that fans posed on Twitter. Naturally, these questions are answered in the most ridiculous, playful and irreverent ways possible, ensuring that those brand attributes are showcased. 

Cognitive Dissonance and the Ducati: A Case Study in Buyer’s Remorse

We are all familiar with the general concept surrounding cognitive dissonance, whether we have formally studied it or not.  It is the idea that you change your perceptions and beliefs based on the details surrounding a situation.  This is most fundamentally portrayed in Aesop’s fable “The Fox and the Grapes.”  In this story the fox desires grapes that are hanging from a high branch but cannot figure out any way to get to the fruit.  He gives up and comes to the false conclusion that the grapes must be sour, anyways.¹  Conversely, we often have the tendency to do this in the opposite direction; proclaiming something is wonderful when in fact it is not.

Let’s take for example the case of the Ducati.  On the hunt for a new motorcycle, I come across a 1993 Ducati Desmondue Super Sport 900.  Beautiful bike, good condition, low mileage, never been dumped, and the price is right!  I take it for a test drive and it runs great!  Nice acceleration, good power, excellent handling, and the exhaust is rich and guttural from an aftermarket set of Ferraci pipes.   No more than a month after purchasing the bike, I start to have problems.  The battery dies, the solenoid melts, the starter switch goes out, and now there is a funny noise coming from the engine.  6 months and a lot of money later the bike is running again (you can imagine the new price point no longer being right).

Now all of this is recapped to emphasize cognitive dissonance: if you asked me about the bike, I would tell you nothing but great things.  “It runs great!  It looks good!  It was the best purchase ever!”  We all know this is not true considering the winter’s worth of mechanical heartache.   But we have to keep telling ourselves these things in order to avoid the potential depression associated with admitting the truth when we make an awful purchase. 

Cognitive dissonance ties nicely in to another form of buyer behavior that we all know as buyer’s remorse.  This is the precept that when we make an expensive purchase, afterwards we are remorseful that we may have made the wrong purchase.  Thoughts run through our mind like, “I should have gotten the red one!” or “I should have gone with Harley; not the Ducati!”  In some cases this threat of remorse hinders us to the point that we never make the purchase at all.  It is with just this that I had an experience at the mall this past summer.

I stop in the Sunglass Hut and begin pursuing the Oakleys for a new pair.  The sales woman walks up and asks about the ones I am currently wearing and how long I have had them.  I tell her I have had them since 2005 and they are the “minute” style.  To this she replies, “They don’t even make those anymore.”  I laugh, pick up a pair, and try them on.  Immediately she tells me that they look great and that I should get them (and this is after I just told her that the pair I am wearing, I have had for 6 years – I am obviously not an impulse buyer).  I do not buy them and walk away with no new glasses, continuing to squint through my old pair, for fear that I am going to get home and wish I had selected another: buyer’s remorse.

So what is the moral – what’s the take-away regarding buyer behavior?  I don’t know.   I still have not learned my lesson.  Sometimes I buy things that I know I shouldn’t (like a 20 year old Italian motorcycle known for being finicky but which by way of cognitive dissonance I will speak of in no manner other than the highest regards) and sometimes I cannot even commit to a new pair of sunglasses even when the ones I am wearing are scratched and worn out (fearful of the remorse I might feel when I see a cooler pair on someone else).  Ideas…?  Help…?

Jon Wilson

¹ Elster, Jon. Sour Grapes: Studies in the Subversion of Rationality. Cambridge 1983, p. 123ff.

Impulse Purchase Zone – the “cash wrap”

The small area that surrounds the checkout area of most retail establishments is an amazing place, well deserving of further discussion.  I often feel sorry for the cashier that has to deal with me as I pay only partial attention while sifting through the myriad of “stuff” that I could throw in last minute before closing out my purchase.  Anything from a soda, candy bar, magazine, batteries or even a lint brush are game and each worth considering.  Some items are in the “hey that’s pretty cool” category, while others are in the “hey I forgot that I just ran out of those” realm.  The barrage of color and range of products seems to put one’s senses into momentary shock while conducting a brief and often subconscious scan of all the options available.

I have several observations about this unique area in regard to impulse buying.   The basic definition of an “impulse purchase” is one that is made on the spot and without prior planning.  An example of this would be if you were to go to the local grocery store to buy eggs and milk, but on the way out notice a pack of gum and magazine that look appealing and decide to purchase them also.  Below are several areas that effective merchandisers key in on to make the most of the spontaneous nature that seems to be built into each of us.

Product involvement level:

Items displayed in an effective cash wrap area require little thought from potential purchasers.  Although there may be several items or aspects of items worth comparing, such as color, size, or flavor, the type of products merchandised are typically not ones that a normal person would spend too much emotional energy choosing between.

Pricing:

For the most part, low priced items are found in this area.  Often playing off of an element of relativity, lower priced items are not a big deal in relation to the more expensive priced items that were the main purpose of the shopping visit.  A $0.99 pack of gum and $2.99 “Monster” energy drink are perceived to be small in comparison to a $140.00 grocery purchase or $60.00 gasoline fill up.

Product Mix:

The types of products that typically fill this area are ones with mass appeal.  They are often (but not always) gender neutral and applicable to a wide range of shoppers. 

Product Placement:

Although candy is enjoyed by people of all ages, placing the candy down low where children can see (and touch…which is sometimes just as important) is a wise move on the retailer’s part, as this often leads the well-known tug of the pant leg followed by the “Mommy mommy (or daddy daddy)….can I have it?!”.   This is just one example of how the probability of purchase (or at least consideration for purchase) can be optimized by strategic product placement.  Complementary products are often in close proximity to one another (known as cross merchandising) to entice the purchase of a related item.

These are just a handful of observations about an area that has always fascinated me.  I know that I often fall victim to tricks of skilled merchandisers in the checkout area, but appreciate all of the intricacies that are behind the scenes.  An entire career could be spent in pursuit of perfecting the art and science that surrounds this relatively small physical space within a retail outlet.

-by T.J. Dennis-

Who actually reads Bridal Magazines?

                Since I am getting married in May, I have become prey to the money pit I used to make fun of – Bridal Magazines. Not only do many of my friends give them to me as gifts, newlyweds offer me their back issues, and for some unknown reason I cannot pass one at Lowe’s Foods without adding it to my basket. This does not include the stacks my mother and future mother-in-law have on their coffee tables. It’s truly compulsive.

                In planning my wedding, I have found them very useful. Not only was I able to get ideas for my dress, but I also used them as sources for pictures I could bring my florist and other vendors to give them an idea of what my fiancé and I liked. On top of thousands of pictures of dresses in an equally astounding number of shades of white (who knew there was ivory, champagne, bright white, candlelight and light white – I thought there was just one white), there are many useful articles about how to deal with issues like pesky in-laws, awkward “plus-one” conversations, budgeting tools, and plenty of advertisements for honeymoon packages. All of these things are to be expected when browsing a wedding magazine and are very useful for the bride-to-be when planning her special day.

                To my surprise, the back cover of almost every issue of Brides has an advertisement from Cartier or Tiffany’s for engagement rings. This was surprising to me since I didn’t receive or purchase my first issue until I had a ring on my finger. I would have understood advertising for wedding bands or bridal jewelry, but engagement rings? This made me think.

                Top, high-end jewelry brands like Cartier and Tiffany’s would not shell out the cash for such prime real estate like the back cover if every girl (and her mother), who bought these already had a rock on her left hand. I would love to get my hands on the statistics on readership for these magazines. How many are planning their big day with their grooms and how many are day dreaming about when prince charming will ride in on his white horse, little light blue box in hand? The number of readers who are not engaged has to be sizeable.

                This got me thinking, is there an opportunity for a magazine devoted to younger girls who may not have met Mr. Right quite yet, but are already busy planning their weddings? Or maybe they have a steady boyfriend and are just counting the days until he drops down onto one knee? Would they buy this “not quite yet a bride” magazine or be too embarrassed to be classified as “that girl” that every young gentleman would run away from - screaming? Would they use a more discreet online tool instead?

                According to a recent survey by The Knot, the cost of the average wedding is almost $28,000. While we’ve all heard the statistics on opulent weddings like the recent Kardashian extravaganza, it still seems astonishing to me that in the recent economic climate that the average wedding is $28,000. With Daddies laying out this much cash, wouldn’t it be good if his little princess knew what she wanted and what her parents could afford before she even gets close to the altar? Maybe if she knew the cost differences between hydrangeas and calla lilies she can be a savvier shopper when it comes time to interview her first florist? I know that in some of my planning, I have felt overwhelmed in the amount of choices and wished I had known more about things like how to hire a videographer and what is a reasonable quote.

                I’m not sure. I can’t say that I never looked at wedding dresses with friends online before I was engaged, but I’m pretty sure I wouldn’t have subscribed to a pre-engagement planning tool or a “Hey, you’re not a bride yet, but you want to be” Magazine. However, I think there are a lot of young women that would. I wonder if that segment’s needs are being met by the countless bridal magazines that are currently out there? Perhaps similarly to getting a training bra before you Mom ever takes you to a department store to get your first bra, there should be a magazine for those that are just trying to drop hints on ring sizes, shapes, and styles and day dream about the day that they’ll have to decide if they want a cathedral or a fingertip veil? 

Christina Waxlax

Fatty Natty: Saving the Environment, One Bottle at a Time

I made a recent purchase the other day at the local Harris Teeter.  While perusing the beer section, I stumbled across a new package of Natural Lights.  The “Natty Lights” were in an unfamiliar section: the bottle section.  First off, it is hard to find Natural Light in bottles and here they were in the 18 pack section right next to 18 packs of Bud Light and Budweiser.  Not only were the Natty’s in bottles, they were in a new package.  The new 12 ounce bottles were “stubbies” and not longnecks.  The bottles were called “The Fatty Natty” which seemed like a fun name, and playing on consumer preferences to call the beer “Natty.”  It also seemed like a good way to improve the brand image, and make the bottle similar to Red Stripe, an imported beer.  It can also provide differentiation in the market.  Miller Lite had a similar marketing ploy a year ago with the “Vortex” bottle.  The bottle looks different enough that a bystander can see a difference between a Natural Light, and a Bud Light (or Busch Light).

From a consumer behavior standpoint, the brand had already done a great job because the new packaging had grabbed my attention for well over 30 seconds.  It caused me to stop in the aisle and examine the case.  I then inspected the case package closer to see if there were any other “surprises.”  On the side of the box, I noticed a statement playing on the “Keep it Natural” theme.  The seal stated, “Keeping it Natural; Contains 13.6% less glass than traditional bottles” (see picture below).  This is where the marketing team lost me.

 I thought it was strange to mention the environmental message on the new case.  This seems to be changing the positioning of the product from its core consumers.  Natural Light is typically purchased and consumed by people looking for a cheap, light beer.  I think Anheuser confused their target customer my adding the environmental message.  Where it is an extra benefit, it doesn’t really matter to the core customer.  It is probably more of a benefit to Anheuser more than anything in order to save on costs of glass.  I think the environmental message causes some confusion for the core customer and doesn’t necessarily need to be included on the packaging.  Maybe the core customer won’t even notice the environmental message, but then it would just be a waste of ink!

Despite my view of a missed message, Anheuser did a good job by launching a Facebook page for the Fatty Natty bottle.  The page encourages fans to request their local bars to carry Fatty Natty’s and also has an area for fans to submit videos of “chilling with a Fatty Natty” and vote what food goes best with a Fatty Natty (see image below).  The use of Social Media is a much better fit for the Natural Light brand.  It is unclear if the Fatty Natty’s are a promotional gimmick or if they are here to stay.  The Fatty Natty’s made an impression on me, but it will be interesting to see if it speaks to the core customer. 

By Andrew Akers

Mightybell: Think Big, Act Incrementally

Just last week, I stumbled upon a new company out of Palo Alto, California, called Mightybell (http://mightybell.com).  A friend on Facebook had a link on her wall which prompted me to click on it.  After exploring the website, I’m intrigued with the concept and think it has the potential to have a big influence on consumer behavior if it is able to take off.

                The motto of Mightybell is “Think Big, Act Incrementally.”  Mightybell is essentially a new social networking website based on the idea that success comes from thinking big, but acting incrementally.  It allows users to share experiences which they think others may be interested in attempting or accomplishing.  The “creator” breaks the experience down into small steps or actions to guide others through the process of accomplishing the same feats. 

One example of an experience listed on the website is “A four day survival camping trip to Yosemite Falls with six freshman roommates.”  Following the steps outlined, online “followers” can use this guide in order for the trip to be replicated by another group down the hall, or even a group of visiting European exchange students.  Followers can record what they did along each step of the way, giving feedback for subsequent followers to improve the experience.  The website allows creators to track their followers’ progress, see where their steps are working or not working.  Followers and creators alike can cheer each on and support each other along the way.  The site automatically links with your Facebook page, much like Twitter, and even has an iPhone app.

I have already joined the site and started following a couple experiences, just to learn more about Mightybell.  One experience I’ve joined is called “Pull Your Plants Up! 5 Dishes for 5 Days,” which gives 5 daily vegan recipes to try, with the goal of helping you adopt a plant-healthy diet, lose weight, and feel better.  I’m among 62 other followers, ranging from Little Rock, AR, to San Francisco, CA, to Montreal, Quebec.  I don’t think it’s going to turn me into a vegan, but I have to admit, the Vegan Lasagna recipe sounds pretty delicious, and I might have to try it out.

                Almost immediately, my mind jumped to our Buyer Behavior class and the implications that this could have for companies.  Just a couple weeks ago, we reviewed a slideshow by Gareth Kay about Creative Briefs in the Post Digital Age.  It emphasized how important it is becoming for companies to give consumers the opportunity to interact with their brand.  Thousands of companies are now on Facebook, giving their customers the opportunity to “like” them or become a fan, and to post on their wall.  Websites like Nike’s are giving runners a place to interactively track their workouts.  If this website were to become popular like Facebook or Twitter, it could give companies the opportunity to create and share experiences which align with their brand and products.  Followers could interact in these experiences and give feedback to the company, creating a stronger tie to the company and increasing ownership and brand loyalty.

                The friend who first introduced me to Mightybell turns out to have just gotten a job with the company.  I spoke to her a bit about where she sees the company going, and she said that already they are having small businesses create experiences on the website.  Going forward, there will even be premium experiences where creators or companies can charge their followers a small fee, giving them the opportunity to monetize their experiences.

                Who knows where Mightybell will go, but I think it’s an interesting company to keep an eye on!

By Sarah Koch

Viral Videos: Why Force Them?

By Eric Wiggins (MBA '12)

Within the last few years, the global phenomenon of YouTube has, in turn, given birth to yet another global phenomenon, commonly referred to as the “Viral Video.” 

As these videos are quickly (and often inadvertently) able to draw hundreds of millions of viewers to a single YouTube page, it is very easy to see the enormous advertising potential.  In a somewhat unnatural trend, large companies and corporations have begun attempts to create their own Viral Marketing Campaigns.

The surprise successes of spontaneous viral videos such as Tay Zonday’s Chocolate Rain (71 million views) http://bit.ly/4tzBuh, Judsy Laipply’s The Evolution of Dance (180 million views) http://bit.ly/p6gAoz, or Charlie Bit My Finger (375 million views) http://bit.ly/cehLPW have generated overnight celebrities from otherwise regular people who just happened to be caught on film.  As a result of their viral popularity, many are invited as guests on world famous talk shows, gaining instant worldwide face and name recognition.

The power of a single viral video has proven its ability to reach a global audience, and it has not taken long for companies to begin frothing at the mouth for their own piece of the viral pie.  Soon companies (some more successful than others) began to try and create their own viral videos.  In some cases, these efforts increased sales substantially.  While examples of some of the more successful companies include the Old Spice Man http://bit.ly/aMkmHc, as well as the Evian Roller Babies, http://bit.ly/Z9m3n, as well as the “Will It Blend?” Videos by Blendtec http://bit.ly/3nFqfp, most others have not been so successful.

But when is a company trying ‘too hard’ to create a viral video?  Part of the appeal of these viral clips is the unrehearsed, unintentional, spontaneous moments that either happen to be caught on film, or contain so much humor and entertainment value that viewers feel the need to share.

As a result, many of these “Forced Viral Video” campaigns have failed, for example Sony’s “All I Want for Christmas is a PSP” video, which backfired and left a bad taste in the mouths of viewers: http://bit.ly/PT750.  GM attempted to cultivate a Viral Marketing Campaign in which they challenged buyers to create their own advertisements.  Too bad they were completely unprepared for the environmentalists who began to submit negative ads! http://cnet.co/12zUyP.

While I realize companies will attempt to purposefully create more and more “Viral Videos” in the future (in fact this marketing survey shows the statistics here: http://bit.ly/20iHxX), companies need to understand that these types of videos rarely are successful if the public perceives the marketing as “Forced.”  The campaign could even backfire on the company when consumers sense a lack of honesty or genuineness to the viral ads.  Even if the goal is to make money, some of the most successful company-led viral campaigns have also shown a genuine interest in entertaining the consumer, or reaching the customer on a personal level, for example the Old Spice Man responding to user comments through his YouTube channel: http://bit.ly/aMkmHc.

Orchestrating the creation of a Viral Video can have high payoffs, but can also be risky to a brand.  As is the case with most high-risk investments, the payoff can also be high.  Companies just need to make sure they are not trying so hard that they lose touch of the core reasons a video becomes viral – viewers want to be entertained, and they want videos they can share with friends and family.  A message to companies out there: before jumping on the Viral Bandwagon, make sure you're being genuine with your customers, because they are smart enough to realize when you aren't.

Dollar-Store Design

I recently read an article in the New York Times which talked about the success of the Dollar-Store in today’s economy.  Before the market meltdown in 2008, conventional wisdom suggested that dollar-stores were mainly shopped at by poor people.  While 42% of the shoppers at these stores are low-wage earners, and do make up their core constituency, recent growth in the market is from affluent households.  This shift in the type of customer attracted to these stores has caused designers to start to rethink the way they are creating the store layout.

 Current developments suggest that a larger shift in the American consumer market is under way.  The article suggests that financial instability in the market has created a feeling of anxiety within consumers; although affluent households have money now, they feel as though they might not in the future.  While this seems to go without saying, the article suggests that part of the reason for the new segment of shoppers is the fear-induced pleasure in selective bargain-hunting they experience at a dollar-store.   

Traditionally, dollar-stores have been designed in a way that facilitates the idea of bargain –hunting through the layout the stores.  Typically when customers walk in the store cash registers are on the left and all the displayed that bombard you upon entrance, force the customer to go to the right and get right to shopping.  The idea behind this is to get customers in a set routine of going down all the aisles and possibly finding something that they forgot they needed.  And this is easy to do considering all of the displays in the aisle are packed with merchandise which is often piled on the ground and all the way to the ceiling.  This is done to create the sense that everything in the store has just arrived and you are getting it first.  The aisles were even designed to be just big enough to fit two small carts side-by-side to give the impression that the customer is getting lots of product for a little price.

Nowadays, with growth in the affluent buyer segment, dollar-stores are beginning to rethink the way the stores are designed and laid out.  Many large chain dollar-stores are moving towards a uniformity in their design  to take out the hunt and gather feel of the old layout.  Research has indicated that much of the growth within the affluent buyer segment consists of “fill-in trips” to the dollar-store rather than going to a Target or Wal-Mart where they can get lost in the expanse of the store.   To make these trips easier and allow customers to get what they are looking for and get out; many stores are opening up the front of the store rather than herding people as they did before.  Aisles now are going to appropriately spaced to allow for quick in-and-out.  They are also grouping the products together to make sense to the mission-oriented-buyer.    

Chad Lovin

Eye Flavor and Buyer Behavior

     Once a decade certain technologies seem to appear that have the potential to significantly impact the way we do business.  In my lifetime we have gone from buying goods in “mom and pop” shops to eBay auctions to advertisements screened by Google analytics.  The next evolutionary step is here with NEC’s introduction of it’s new “Eye Flavor” technology.  These digital billboards utilize facial recognition software to generate custom advertisements based on your age, gender, and nationality.  Is this new technology an invasion of privacy, pure genius, or a little bit of both? And most importantly, how can this new technology change our purchasing behavior?

http://cnn.com/video/data/2.0/video/tech/2010/07/17/pkg.lah.ads.eyes.cnn.html

     This new technology has significant implications for the effectiveness of marketing in the future.  For the first time companies will have the opportunity to evaluate their marketing efforts in real time to see how consumers are reacting to their messages.  Companies are going to have access to analytics that give them detailed information regarding your level of interest and purchasing behavior.  One blog I came across went as far as to claim that NEC intends to have it so that coupons appear on your smart phone after passing the advertisement as well.  I expect Eye Flavor to revolutionize the way companies spend their advertising dollars in the future.        

     The most significant hurdle that this technology faces is the resistance from the western world.  Currently this technology is used in Japan with little outcry from consumers.  However, many citizens of the western world are most likely going to be concerned that Big Brother is looking over their shoulder.  Is this new service a violation of our civil right to privacy or a useful tool to improve our shopping experience? Concerns that I have moving forward include how do we opt out or in to this new technology?  What if I do not want to be inundated with visual spam?  I would expect this new technology to be closely regulated by the government to prevent wrongful manipulation and distribution of data. While I feel that many people would not be offended by the targeted marketing that Eye Flavor offers, these are significant concerns that NEC needs to overcome moving forward.  

     The minute that Eye Flavor is introduced in the United States it is going to alter the way that I make purchasing decisions.  This new technology reminds me a lot of Amazon.com and the analytics they use to sell to consumers. I am an informed consumer and thoroughly enjoy saving money.  I like the idea that companies can gear sales and advertisements towards my specific needs.  I use amazon.com on a regular basis for this very reason.  Like most major technological advances, it is reasonable to expect the younger generation is going to embrace this new convenience while the older and more cautious baby boomer generation resists as long as possible.  This technology excites me because it has the ability to reduce wasted advertising dollars, improve customer satisfaction, and improve bottom line performance.  That sounds like a “win-win” in my book.   The only reasonable request I have is the inclusion of some form of visual spam filter.  


-Chris Gabriel

The mobile and connected world: challenges and opportunities for marketers

It boggles my mind every time I hear about the speed with which technology is changing our lives. In a little over ten years, mobility and connectivity have become ubiquitous in our society. Not only can we travel to almost any place on this earth, but we can also virtually participate in what is happening in any country in the globe. As we become more and more dependent on these technologies, marketers—including aspiring ones like me—should look closely at the challenges and opportunities that these technologies present. 

For the sake of a couple of laughs, take a look at this video that shows in a humorous way how technology has been changing our society:

This summer I had the chance to participate in a webinar on the trends and effects of mobility on people’s shopping decisions offered by two Google executives. They expect that by 2013 more than 50% of web traffic will come from mobile devices. Interestingly, today three times more smart phones are being activated across the globe than babies are born every minute. Furthermore, the trend is for all mobile devices to be connected mostly through wireless technologies. 

Implications for marketers

A couple of weeks ago, I was counting the number of devices in my household that are somehow connected to the web—five in total. I started to ponder how these connected devices were craftily developed to become not only touch points for marketers to communicate their messages, but also gateways to “virtual markets” where I as a buyer can interact with a potentially infinite number of sellers. This is the platform theory that companies like Apple (iTunes), Google, and Amazon are working so hard to create and maintain. Today cell phones, tablets, printers, TVs and even refrigerators are making it easier for all of us to shop at our convenience.

Changes in shopping behavior

The mobile and connected experience is changing our shopping behavior in many ways and I would like to share a few of them:

1. Social Media influence. Yes, we want to show our friends how great a deal we found online. More importantly for marketers to consider is the recent trend for consumers, and especially mobile consumers, to be much less influenced by traditional information sources and instead base their purchasing decisions on reviews coming from friends and families.

2. Price leveling. Mobile devices are putting the power of comparing prices in the palm of consumers’ hands. An increasing number of people can now access mobile coupons, compare prices, and tap into loyalty or similar programs all while standing in store aisles. 

3. Flash deals sites. Another trend empowering consumers is accessing sites that specialize in deep discount promotions. Sites like tanga.com and forums like slickdeals.net are becoming increasingly popular and many more specialized deal sites are springing up every week.

These and a number of other trends have serious implications for marketers, as new technologies seem to put pressures on businesses to gain efficiencies and share those with customers in the form of lower prices or higher quality. The underlining issue of this blog post is to remind us that an increasing number of customers are quickly adopting new technologies when make their shopping decisions. We have a clear example in the adoption rates of mobile devices.

According to Google, last year shoppers spent on average $300 from their cell phones, mostly on entertainment, electronics, and clothing. I’m sure that this number will continue to increase by leaps and bounds in the coming years.

Our challenge as marketers is to adapt to the requirements that mobile consumers present. Adapting to these changes include: 1) building mobile-optimized websites—designing for thumbs and not only for mice; 2) the usage of QR codes on physical products and marketing materials, and 3) understanding and exploiting new dynamics like mobile usage peaks during lunch, nights, and weekends, etc. 

The mobility trend is just the beginning of an era. For a sneak-peak of what is to come take a look at this Microsoft video:

 Many of the technologies presented in the video are actually available today.

Luis De La Cruz