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.

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.

Tuesday, January 23, 2007

First post of the Last Semester

Ahhh...the blog for class. this will herald my great return to that which is blogspot.