Wednesday, May 2, 2007

End of a semester

During my experience with the insight and prototyping product I learned quite a bit about the different needs and perspectives surrounding stay-at-home working mothers. I particularly enjoyed the process of going through the different sensory perceptions associated with the demographic and the room. It was interesting to describe the room and the mothers’ needs based off the five senses. I believe this exercise allows me to really get the feel for the demographic by placing myself into their perspective. How would a member of this group feel with a particular product or in a particular situation? This is a vital question for marketers everywhere. By gaining this particular insight, marketers can better tailor campaigns and products to better suit the needs of the individuals in question. The project helped me understand this aspect of marketing by making us think while utilizing this perspective. I believe our group successfully identified particular feelings that the mothers have towards the home office. We believed the office would smell of coffee, babies, and food. Despite being a working environment there would definitely be a touch of “home” in the room. The mothers are the ones that provide this touch and we believe that it is extremely important to them to maintain that feeling even in a professional setting of their home office. There are also the different mental perspectives of the need to multitask and plan their day. This adds a layer of stress that is associated with that room. Each additional sense adds a different layer to the profile from which people can draw inferences. This process definitely allowed me to better understand a demographic from a marketer’s perspective.

Additionally, another aspect of the project that I learned from was the phase of gathering various insights. I learned that there are a multitude of materials and information available for research in addition to various tools to gather new information. Our insight was gained mainly through the use of our survey and our ethnographic interview. We were surprised by the helpfulness of forum members from different websites that were targeted to working mothers. Additionally we gathered data by viewing the room in question and asking the mother to describe her day. It yielded first hand, detailed information that allowed us to further understand our demographic.

Throughout the project, I feel that the team worked extremely well together. We meshed well and were able to communicate effectively to work through our ideas. Working with the group on this project definitely allowed me to get involved with the material. It was definitely better than just listening to lectures alone. I believe the professor accurately conveyed the information to the class and actually helped us along with the progress of our project. The project made the concepts learned in class tangible and allowed me to better understand the topic. Overall it was a great experience. I also enjoyed the process of designing a product that can actually be tangible and marketable in the real world. It was a fun experience.

Sunday, April 22, 2007

PS3 surprises in Europe! Marketing success?

For my final paper, I will be discussing the different strategies employed by the three competing video game systems that released in the past year. I will be dissecting their different marketing campaigns and evaluating their overall strategies in pushing their systems and capabilities to the consumers that they are specifically targeting. Part of this breakdown will include discussion about whether or not their strategies have been successful or not.

Recently, the Sony released it’s highly touted Playstation 3, the descendant of the extremely successful Playstation 2. Compared to the other two systems, the Playstation 3 definitely has the strongest processing and hardware components. However, the Xbox and Wii have definite competitive advantages in other arenas of the gaming industry. For Sony, the release of the Playstation 3 fell greatly short of expectations in the US and Japan. According to Markio Sanchanta for the Financial Times, Sony has had record-breaking success for the release of the Playstation 3 in Europe. Howard Stringer, Sony’s chief executive has stated that Sony was close to selling 800,000 units in Europe alone. This is a turnaround performance that the Playstation 3 sorely needed after less-than-stellar launches in the US and Japan. This article definitely emphasized that Sony was having success in Europe and the CEO estimates that they should continue to sell units in Europe. The difference behind the success in the European market and the one at home was that they entered the market with much more software backing up the PS3’s strong hardware. This is definitely the strategy that Sony must employee in order to recapture market share from its competitors. Without strong support from their game manufacturers, the PS3 will not be able to convince new customers to buy their high-priced system.

Despite the success of the system in Europe, Goldman Sachs still estimates that Sony will not see any profits from the PS3 until the first or second quarter of 2008. The only strong aspect of the system in its current state is the processing capabilities that current software does not even begin to utilize. Unfortunately for them, Microsoft and Nintendo have already developed a strong niche with their systems and Sony yet has their work cut out for them. From a marketing standpoint, the additional games in the European launch provided more material to show off the PS3’s capabilities. This is the reason why there was more success in this market as opposed to the other markets. To continue this trend, Sony will continue to emphasize the strong graphics of their games and push consumers into a state of sensory overload with pure processing power. Fortunately for the PS3, Sony is reluctant to kill off any unprofitable business and will strive to continue shipping the system, even if it is at a loss. For the future, Sony should maintain a strong output of games and start to ramp up the releases of the other features, such as online support, that the system promises to utilize.

Sunday, April 15, 2007

Whee goes the Wii

I realize that all my previous topics, including my term paper topic, have related to the gaming industry. My interests lie in this particular area. When confronted with the idea of innovation, the first innovative product that I thought of was the new Nintendo Wii. In other posts, I mentioned that the Wii’s specifications were the weakest of the next generation consoles that were released recently. The Sony PS3 and Microsoft Xbox 360 all have vast processing powers that dwarf the Wii’s simple abilities. However, the difference between the Wii and these systems is that the Wii has changed how games at home are being played.

The platform that the Wii’s success has been built upon is its new nunchuk and remote style control. For those that have not played a Wii yet, the controller translates movement into movement on screen. To swing a racquet while playing tennis requires the player to actually swing the controller properly. It is taking interactivity in gaming to another level. Gamers have always enjoyed playing games that mimic the actual action. Duck Hunt and other shooters incorporated gaming pistols that were aimed at the screen to imitate the action of shooting objects/villains. As technology increased, more and more interactive games hit the market. Steering wheels allowed players to “drive” their cars around simulated tracks. There are games that allow players to bob and weave while they box like Ali did. Others allow players to create complex drum patterns and compose music. The Wii brought this gaming concept in the convenience of one’s own home. Previously these technologically advanced games were only found at the arcades on expensive machinery. Now though, Nintendo allows gamers to utilize motion and interactivity to change their gaming environment.

In addition to bringing this technology to the home, the Wii has allowed different demographics to enjoy the system instead of just the adolescent gamers that are typically associated with the stereotype of gamers. The interactivity allows moms to play tennis from home; dads can golf in the rain without getting wet. Parties can watch players box against each other. This has allowed the system to cross generational barriers and engage a multitude of people in the gaming world. While the others systems available have increased graphics capabilities and have enhanced features, it is the Wii’s innovative new design that has allowed it to completely dominate the new system market. The revolution that the Wii has brought to the gaming industry will further the innovations required by their competitors for their products. Consumers now require games to be interactive as well as appealing to their senses. The next generation of games and gaming systems will take their cues from the success of Nintendo and allow for a greater degree of interactivity as well as similarity to the actual events and actions taking place in the games. Nintendo has truly allowed the industry to change and grow into a much more robust and revitalized industry that provides entertainment to so many.

Sunday, March 25, 2007

What women want...what does anybody truly want...

On Sunday evening as I was thinking about this blog assignment, I turned on the television and TBS was showing the movie “What Women Want.” For those that have not seen the movie, the main character, played by Mel Gibson, gains the uncanny ability to “read” the minds of the women around him. With this ability, his character proceeds to cut a swathe through the female world. He is sensitive, insightful, and able to engage women that used to hate him in deep conversations. He has gained the powerful tool of insight into the female psyche. Conveniently he also works in an ad agency and uses these new found thoughts and the female perspective to bolster his creative abilities and become even more successful. What really jumped out about this film was how the insight was being gained. Mel’s character, once he harnessed his powers, would sneakily follow women and observe their daily activities. He placed himself in situations that would allow him to observe women going about their lives. His advantage over others was that he was able to hear the inner thoughts of the women. This allowed him to be able to view the lives of those women around him and also understand what they truly felt about the situation or whether or not they even cared about the action they were doing.

This example illustrates how gaining insight to a consumer’s need is extremely difficult and must be balanced. Taken alone, Mel’s character’s observation skills are only able to get him so far into what the women really require. This same principle applies to consumer research. Observing users of particular products or in certain situations, even when they don’t realize you are observing them, does not allow the ability to understand what they truly feel. It is only part of the entire equation. Without additional information, the observation can be just a giant waste of time. Another problem with observing people is that they must realize that they are being observed. You run the risk of invasion of privacy that the character in the movie must deal with when he goes a bit too far.

As we discussed in class, there are multiple ways to gain insight with regards to a consumer’s specific needs. Unfortunately, taken alone, each technique falls short of providing the entire picture. Only when taking different perspectives is one able to fully understand the shifting planes that is a consumer’s needs. Observation coupled with interviews, and questionnaires allow different information to be taken into account and provide a much fuller picture.

Tuesday, February 27, 2007

Which console to buy?

This past Christmas season saw the release of the highly toted next generation video game consoles from Sony and Nintendo. Microsoft's Xbox 360 had been released a full half year earlier than their counterparts in an attempt to take market share early before their major competitors even released their systems. Each new console brings completely different capabilities and revolutionizes the gaming industry. The three competing consoles each have their own strengths and unique weaknesses. Ultimately, the buyer must choose between their personal preferences and decide which system they wish to purchase if they want to get into the next generation of gaming.

With the new releases, Sony, Nintendo, and Microsoft have all used different forms of advertising and highlighted their own strengths to attract customers. Additionally each company has already established a strong history within the gaming community and has used their previous ties to convince former owners to purchase their new systems. It is interesting now to see how the results of the various campaigns and releases have shaped the current video game market. Many reviewers contended that the Nintendo Wii had the most innovative new control system while the Sony PS3 represented the highest processing power of the three. The Microsoft Xbox 360 has established its title lead currently since it released earlier than the other two. MSNBC’s article and other early projections placed the PS3 as the dominant system for the future.

Since their releases, however, the Wii has proven to be the strongest of the new systems. Retailers are having an extremely difficult time keeping the system, with its gyro-based controllers, in stock. The Wii targets the casual gaming community and parents that do not wish to spend over $500 for a new system. The PS3, though, has met sharp criticism about the lack of titles at release and also the hefty price associated with the system. For my project, I am interested in exploring the various marketing techniques and decisions these companies are using to enhance their market share with their new systems. Since consumers have responded to the releases in unpredicted ways, it will be interesting to see how the different systems adapt their strategies to gain more customers. Additionally with the increased use of the internet, online gaming is becoming more and more prevalent. It is important that these systems offer titles that offer a vastly multiplayer dimension previously unseen with video game consoles. Additionally, many of the software developers have not created titles that fully utilize the capabilities of the new consoles. There are vastly untapped areas of power yet to be released. Until the games and associated required technology catches up with the processing powers of many of the new systems, gamers will still be attracted to their older counterparts. How should these manufacturers draw devoted customers to their new systems and maintain their market shares? This a critical question that I would like to explore with my topic being an avid gamer. Additionally, I recently entered into the personal debate as to which next generation system to purchase. I eventually settled on the Xbox 360, yet in the future I might make the decision to also garner the other two systems. Each have their particular strengths yet each has also have had difficulties in attracting and retaining customers. How these challenges are answered will greatly shape the video game industry for years to come.

Ono, Dennis. “Game consoles vie for next-gen supremacy.” MSNBC, November 17, 2006. February 27, 2007.

Monday, February 19, 2007

iPOD success!!!

The past Apple iPods commercials are a great example of a successful marketing campaign. The ads consisted of black silhouettes of individuals wearing their Ipods and “rocking” out to the music against solid color backgrounds. The individuals encompass a wide range of demographics from male and female to the young and the old. This is part of Apple’s attempts to demonstrate that the iPod is not only the province of youth but that older individuals can also enjoy music using the iPod. When broken down, this ad line encompasses the FEEL, ACT, and RELATE SEM’s described by Bernd Schmitt.

The Apple ad clearly describes the joy of listening to music. This describes the FEEL SEM. The ad demonstrates the enjoyment behind listening to your favorite music and dancing, singing and generally having fun. The viewer gets to feel happy for life and can shed their burdens simply by listening to music with their iPods. Coupled with upbeat music playing in the background, viewers cannot help but feel excited and happy. This is the exact feeling that Apple wishes to elicit.

Additionally, the iPod commercial tells people how to act with their iPod. It demonstrates an activity that is usually reserved for parties but places that exuberance into the everyday. Viewers are encouraged to party with their music since they are placed in their own worlds when their headphones go on. The freedom aspect also is generated by this ad. You are free to act however you please when you listen to your music. Nothing is embarrassing or to be laughed at. It allows users to have freedom of expression when they use the product.

The most important aspect that the Apple ad’s creators wished to convey is, I believe, the RELATE aspect. Viewers need to relate to the users in the commercial in order to feel and then act as they please when they use their own iPods. There is a relation between how happy users of iPods are and it is demonstrated by how they act when they are using the product. By emphasizing the relating aspect, you, as the viewer, are drawn in will seek that same experience. This is the underlying driver of the ad, to get people to realize that the iPod unlocks these experiences and for them to get themselves their own iPod.

I think currently that Apple and their iPod is doing a great job in marketing the product. This is clearly shown by the success Apple has experienced; success that is driven mainly by strong sales of the iPod. While these ads are effective in what they do, I do not believe that they are the perfect ad. One problem is that in their simplicity, they do tend to get overplayed and the idea becomes stale. The format needs to be changed from time to time to ensure a fresh perspective. An additional change I would encourage is to emphasize the ease of use that the iPod has as a core value. However, despite this the ad is strong in eliciting emotions and feelings that are related to listening to good music.

In my evaluation of the iPod ad, I am probably a little biased since I am an iPod Nano owner. I differentiate myself though since I have used other mp3 players and have owned them but none to the satisfaction as my Nano. The ease and portability are driving factors behind this. Despite this bias, the ad quickly came to mind when asked to evaluate a product and the experience it elicits. It was actually the first ad that came to mind when I thought about various products and the experiences behind them. Apple truly does have a strong product. The only worry I have is that the form is quickly becoming outdated and Apple will be pressed to improve upon such a great product.

Sunday, February 4, 2007

Go Go Wii and Alpha Mothers

Nintendo’s use of the “Alpha Moms” in “Alpha Moms Pitch Nintendo’s Wii”as part of the marketing campaign was truly ingenious. Sony, Microsoft, and Nintendo all released their next generation systems this past season. Of the three new systems released, Nintendo’s has by far the most interesting approach to the future. While the PS3 and Xbox 360 all tote high-definition capabilities, the Nintendo decided to go for revolutionary game play with their gyrating controller. The goal was to get the controller into the hands of individuals and let the interaction between gamer and let the system win the customer over. Targeting the Alpha moms turned out to be just the correct method to allow Nintendo to penetrate a market not necessarily known to be into gaming.

The uniqueness with the Alpha moms is their ability to spread the word about new knowledge to the other mom’s that they meet with. I believe every neighborhood or community has an Alpha mother in their midst. They are usually those moms that are into throwing large gatherings at their homes where many families are invited. They are outspoken and active in the community and have gained respect from her peers. These mothers are extroverted and willing to learn about new ideas and products. I believe a key aspect to their status is their willingness to learn their children’s interests. Especially in the case with the gaming system, these mothers were able to dive into a realm usually reserved for the kids and embrace the technology behind it. This trait sets them apart from other mothers. A key assumption would be that younger mothers would better fit this role by being closer to age with their children and thus better understand their desires. However, I do not think that age limits the Alpha mothers. They are usually perceptive enough at all age levels to understand what their children, family, and community wants. In some cases, the Alpha mother might be the matriarch of the community, the wisest mother that other mothers go to for advice. These moms are well connected and able to quickly transmit new information throughout their mom network. This is truly a segment that can help with marketing a new product.

These mothers need to be the center of attention. They thrive on the ability to pass information down through the ranks and influence others. With that said, they need to be on top of the newest products and ideas so that they can spread this wealth of knowledge. These alpha mothers also are on the top of their game when it comes to parenting. They are probably the moms that all the kids love. The motherly instinct is taken to another level with these parents. They wish to provide everything their children want and do probably have a tendency to spoil their kids. However, despite this tendency to spoil, they have done extensive research into their children’s desires and understand their reasons. These alpha mothers utilize insight and awareness to the current environment to make their consumer decisions and need to pass the word out to others in similar situations.

I believe the activity of identifying unique segments is an important aspect of marketing. By isolating certain groups, companies can better tailor their goods and services to fit these specific groups. A better satisfied customer has a higher tendency to repeat their business. By tailoring ideas to fit the needs of different segments, companies gain an advantage of flexibility and allow them to increase their chances of gaining a customer for life. However, this process can not be used for every single segment identified. That just would not be practical. Targeting the major segments and identifying segments that can provide free marketing would be the surest way to succeed. I believe that I, personally, am able to identify segments with relative accuracy. It is not extremely difficult to isolate a consumer’s needs and their tendencies. By working with the needs of individuals, companies can improve their position and offer superior products. Segmenting can be seen as a form of stereotyping but I believe it is not stereotyping in the negative sense. It is more identifying tendencies and traits that groups have and addressing these tendencies. By effectively doing so, marketers are doing their job correctly.