Blog 5

After reading the groundswell article, I feel that one of the best strategies I’ve seen companies utilize are viral videos. From my experience, the intention of the majority of blogs, youtube videos, facebook groups, etc. are all to warn potential consumers on the pitfalls and deficiencies of a product. This negative news will go a lot further than a post dedicated to how great a product performs (with the sneaking suspicion that the individual who posted it is in someway benefiting from the post itself). I feel as if a blog, review, or video simply presenting features is not as effective as a viral video. A viral video creates buzz about a product. Sometimes it is obvious as to what the video is promoting, other times no logical person would make the connection. Personally, I stay away from advertisements online, whether it is promoted via facebook, twitter, blog sites, etc. due to the constant possibility of malware that could be installed on my personal machine without my knowledge. Rarely will anyone within my online social network circle make a post regarding a product unless if there is a discount/deal of some sort. This makes it inherently more difficult for businesses and marketing teams to successfully target consumers through online social networks without giving something in return.

While companies may use social networks with the genuine intention of enhancing consumer experiences, for everyone legitimate advertisement/website there are dozens of fake sites with the intention of defrauding the individual. Numerous social networks have users posting links to sites promising free products after testing or through a lottery – most of which are fake and attempting to extract private information from the end-user. This makes many individuals weary of any online form that may ask questions regarding a user’s experience – even if it is a genuine effort by a company trying to improve their product. Even though online surveys are easy and fast to fill out, it is difficult to ascertain the validity from both ends (whether or not the survey is legitimate, and whether the survey answers are truthful).

I believe the best social media tool that companies can use in order to gain insight or create consumer experiences is through blogs or twitter. These two social media tools allow companies to post what they are currently working on, advancements and breakthroughs, and show that they are listening to what their consumers are asking of them. It allows the company to receive feedback from consumers through comments and replies, and from this feedback the company can take them into consideration. However, just as the groundswell article states, consumers alike can create blogs or twitter accounts with the intention of spreading awareness of the unhappy consumer. Another interesting strategy that some companies utilize is “leaks”. Sometimes a company may intentionally leak details of a new up and coming product in order to create a frenzy. Interested buyers spread the word by reposting blog sites, retweeting posts, etc. essentially doing the company’s marketing job for them. While consumers may feel that this privileged information is a goldmine, it shouldn’t be completely dismissed that the company might have allowed the information to be disseminated into the public. A great example is the next generation iPhone that was found in a bar (http://gizmodo.com/5520164/this-is-apples-next-iphone). With each previous iteration of the Apple iPhone released like clockwork (every June/July) a lot of consumers are eagerly waiting for the debut of the next generation iPhone. Rather than publishing this information themselves, it can be argued that Apple intentionally leaked the product to the public, created viral marketing for the soon-to-be-finished product. Typically, whenever such tech sites gain similar inside information, they are served with cease and desist papers from Apple’s legal team. The news about the 4G iPhone has been public around 24 hours without any retraction. Allowing consumers to think that the information is not meant to be seen by their eyes, excitement and momentum builds behind the debut of the next product. Similar marketing ploys have been used by recording artists that leak their CDs onto the internet.

Wal-Mart

- What do you think about the privacy issues associated with all of that data and the amount of personally identifiable data they are able to capture. Does it bother you? Do you trust them with it?

I am personally comfortable with the amount of information that Wal-Mart’s IT system collects, mostly because I have never cashed a check or participated in any service that Wal-Mart provides where my social security number or driver’s license number would be collected. Despite the fact that I have yet to have any sort of experience that pertains to sensitive information, I am still not comfortable with the idea that Wal-Mart actively collects and preserves the information, especially without the consumers’ knowledge. Unidentifiable information (such as what other items I purchase along with milk and bread) is fine. While some consumers may be uncomfortable with Wal-Mart knowing their most embarrassing purchase habits, so long as Wal-Mart doesn’t place a name to the items they are only ensuring that they provide the products you desire. The possibility of personal information being compromised is not worth the risk, especially if the owner of the information does not know or allow Wal-Mart to retain it. While the non-identifiable information is considered fair game, it is hard to justify the ability to find out a consumers mortgage amounts, court dates, driving record, and creditworthiness in order to provide low prices everyday. The article doesn’t specify if this information is frequently accessed, or whether if Wal-Mart just has the ability to. Either way, I feel that Wal-Mart is overstepping its boundaries and violating consumers’ privacy by accessing this information.

- What aren't they doing with technology that they could; that is, are they using all of the technology that is available to them to capture insights and create great experiences for their customers and, if not, what could they do?

I believe Wal-Mart is using IT in the most efficient way for its own interests. As the article states, some individuals are uncomfortable with the amount of personal information that resides in Wal-Mart’s database. However, not many individuals know the type or amount of information that they collect on their purchasing habits because of the inconspicuous use of the information. If during a visit to Wal-Mart, an ad or Wal-Mart employee offered suggestions on past and previous purchases, it would most likely make people feel on edge having a constant feeling of being watched/followed. As the article states, Wal-Mart does not care what each person buys individually, but rather what sells as a part of a larger basket. Wal-Mart finds more interest in what else you buy with Strawberry Pop-Tarts rather than who you actually are. Based on this information, they can extrapolate this information with all of the other buyers, and create savings and profits based off of the other products purchased in relation to Strawberry Pop-Tarts.

- What impact do you think they are having on their suppliers - making them better and more efficient or driving them too hard and reducing their profitability. Again, try to keep this in the context of technology.

I feel that the relationship between Wal-Mart and its suppliers is somewhat imbalanced and unfair. The bargaining power of Wal-Mart clearly outweighs the bargaining power of its suppliers. Since Wal-Mart is such a large buyer, there is very little room for negotiation. It seems doing business with Wal-Mart is more of a necessary evil in the eyes of its suppliers. A suppliers’ choice is to (a) do business with Wal-Mart and reap the benefits of Wal-Mart’s expansive presence or (b) do business with lesser-known retailers at a higher markup, but without certainty to future business and profits. Being in bed with Wal-Mart guarantees future business and inventory turnover -- the same benefits that cannot be guaranteed by smaller retailers. I believe at the moment Wal-Mart and its suppliers are at an equilibrium that both parties can endure. If at any point Wal-Mart begins asking too much of its suppliers (which result in losses rather than profits for the supplier) then inevitably the suppliers will go out of business (and Wal-Mart will most likely replace them with a similar supplier). The chance that the opposite occurs (where Wal-Mart goes out of business) is far less than the former. For this reason I see the relationship as more negative than positive. Wal-Mart already advertises low prices for its consumers. These low prices are absorbed by the suppliers rather than Wal-Mart. In addition, Wal-Mart presses its suppliers to RFID tag their inventory, making it easier for Wal-Mart to track what is in its stores. While the technology is cheap, it still takes away from the thin profit margins the suppliers are already experiencing.

Blog #3

If you’ve ever heard the term “Apple Fanboy,” you know it doesn’t carry a positive connotation. For those of you that have never heard the term before, I’ll allow Urban Dictionary to explain:

1. A person who believes in almost anything that apple says and gives into it's marketing strategy. 2. A prime target for apple marketers to impose their superfluously costing products to. 3. A person who honestly believes that Windows XP or Vista is Archaic, Inferior, Does Not Work, or just plain ripped off ideas from the Mac OS. 4. One who waits in line for days in some instances, for Apple keynote speeches. 5. One who believes adding an "i" prefix to anything is automatically superior to anything that does not have an "i" in front of it.

While I own and enjoy Apple’s products, I hardly consider myself an Apple Fanboy. I find the people that tout that “Macs just work” just as clueless as those who say, “Windows is a piece of junk” (Watch the Windows Mojave Experiment for some insight).

For my final report I would like to explore the customer insight and marketing strategy regarding the Apple iPad. However, since it isn’t even being shipped yet, I am a bit weary about finding academic sources regarding the product (I may look at Apple more holistically rather than a single product, or maybe even the eBook industry instead).

Whenever I purchase a product, I research it thoroughly, sometimes even before its debut. The same was true for the iPad. While I originally wanted to purchase one, I probably won’t after the technically specifications were announced -- not because it’s a horrible product, as some people believe, but because it does not fulfill my needs. I believe the iPad will sell very well, but just not to Apple’s typical market base. The general tech blogs were in an uproar because of the limited functionality, dubbing it as essentially an XXL iPod Touch. Sure, the iPad won’t fulfill the needs of a typical computer user (especially one that visits technology blogs), but the iPad is perfect for our technology-challenged relatives. My grandmother understands very little English, and despite attempts to teach her how to turn on a computer and surf the web (mostly to read Chinese newspapers) she gave up on it due to its unreliability. With the iPad, there are only so many buttons and only so many things that could go wrong. I think my grandmother is completely capable of learning how to use one. Even if she can’t read the text, she could identify the icon for Safari or for Books.

I wonder if this was a calculated move by Apple. Was it trying to market this product to a clientele they have yet to tap into? They already have products for business (MacBook Air), casual (MacBook (Pro)), and power users (Mac Pro) – was this the final frontier? Or did Apple luck out after swinging and missing on a potentially industry changing product. Suffice it to say everyone that was following the debut of the iPad was disappointed. Whether it be the handicapped OS or the lack of I/O. I would assume based on Steve Jobs’ calling the iPad the a “magical and revolutionary device,” that it wasn’t intended for the “grandma niche” but for everyday users. It is also possible when the iPad is available in stores, that we will all realize that it is the gadget we never knew we needed.

Was Apple expecting this product to be owned by the everyman, or did they luck out by unintentionally creating the perfect product for our grandmothers?

(http://northtemple.com/2010/02/01/on-ipads-grandmas-and-gam)

(http://gizmodo.com/5458531/the-ipad-is-the-gadget-we-never-knew-we-needed)

Blog 2

Kenna’s Dilemma:

I found Kenna’s Dilemma to be the most interesting read. Perhaps it is because of Kenna’s story, the facts behind the Coke/Pepsi taste test, the brandy packaging, and the “ugly” Aeron chair that all amused me. While it did not give an exact guide on how to conduct proper interviews/research, it was enlightening to learn about the common pitfalls that major firms with millions of dollars budgeted toward marketing have spent…and failed. I learned from this chapter that it is important to consider all aspects of a product, which can range from its physical appearance, product packaging, longevity of taste, and obviously its usefulness. It seems that the use of focus groups is inherently flawed. Sometimes these groups do not fully experience the product or artist, and are forced to make a judgment call that is typically wrong, It seems to be a daunting task to successfully complete the marketing project, as the two women from Sensory Spectrum have spent the better part of 20 years tuning their skills to determine what exactly about a product is appealing to them. For the typical consumer, we can distinguish which product we prefer, but for what reason is difficult.

Turn Customer Input Into Innovation:

This article gave detailed descriptions and steps in order to capture the customers’ desired outcomes. I agree with the author in the sense that the only information that should be gathered from the customer is the outcome they want, not the solution. The Kawasaki example clearly depicts the “me-too” effect that customers typically answer when asked what they want, and in order to prevent falling victim, marketers must find the solution to their customers’ needs. However, I feel that taking an outcome-based approach may also result in complications because there would be so many possible solutions

Metaphorically Speaking:

This article was overall more technical in its explanation of marketing strategy. While the science behind this article is definitely more concrete, it does not seem practical for someone in our position to utilize when interviewing our personas. Not only do we not have a full grasp of the concept/techniques, but also we would not have the experience in administering the proper questions. ZMET seems too in-depth for us to able to successfully administer.

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The first two articles are useful for the purpose of our project. It is beneficial for us to understand major marketing flops in the past (i.e. Coke) in order for us to not make the same generalization/mistake when we begin interviewing our personas. It is important that we carefully analyze the results of our research and fully understand what is it our personas need. Likewise, the second article gives insight in how to construct and phrase our questions, in order to get the most useful answer from our personas, as well as the format/order of the types of questions.

Marketing Persona

The task of creating a marketing persona for ourselves seems to be easy since who knows us better than ourselves. It’s eye opening to take a step back and realize the type of persona you fit into. Specific information that a marketer would need to know in order to create an accurate and rich persona would include information such as gender, age, education, ethnicity, and interests/hobbies. The best persona description I fit into is "Jason, the Male Grad Student."

I am a 21-year-old male attending the University of Texas at Austin, pursuing my masters in accounting. My typical week consists of school, work, fraternity life, and spending time with my girlfriend. I work as a desktop support specialist (I didn’t make up the title) doing IT for the Dean’s Office of the liberal arts college on campus. In addition to my full course-load, I work an average of 25 hours a week. At the end of the day I try to stay in shape by going to the gym after work.

One of my biggest (and most expensive) hobbies is computers, and gadgets in general. I consider myself an early adopter – a marketers dream customer. I’m not a sucker; I won’t buy a product just because of all the shiny bells and whistles. I’ll typically research the product and read the reviews even before the product is launched, and end up buying it within the first few weeks of launch – if not days. Once the next revision comes out, I’ll usually sell the old generation and use that money to offset the cost of purchasing the new generation. Although my girlfriend doesn’t agree with my spending habits, I don’t see my spending as reckless. I always research the product beforehand to see if it fulfills my needs. Most of the time I don’t need the product, but want it because it will make my life easier. I won’t name all my purchases, but a great example is the iRobot Roomba. Sure, I could easily sweep the floor of my apartment the old fashion way, but I don’t regret that purchase for a second. I just press the cleaning mode I need and let it run its course.

I’ve also fallen into an online purchasing frenzy. I recently upgraded to an Amazon Prime account ($80 a year for free two-day shipping, and $3.99 next day shipping). Getting what I need delivered to my door with the added benefit of having not to pay tax is great. With such a busy schedule, I never have time to make a trip to pick up what I need during the week. Rather than wait until the weekend, I can get what I need delivered to my door. I can also invite four friends/family members to use my account without any additional costs.

Any downtime I have I’ll usually spend it catching up on TV shows or movies. Since most of the shows I watch air during the week while I’m busy, I’ll usually download them to view later (I spent a good amount of time and money into setting up my home theater system). I prefer to watch movies at home without the annoyances that you find in a movie theater. If I miss something, I can pause and rewind, or even turn on subtitles. The only time I’ll actually go to a theater is for a movie I’m dying to see. Anything else I can wait.

Overall I keep up to date with current trends and advances in technology. While I'd love to buy the newest and greatest, my wallet doesn't always permit it.