Many readers of Learn the 4 Ps may not be old enough to have purchased vinyl records. But even in the possibly 20 years many of you have been around, the product-market for music has changed dramatically. Two big drivers of change have been technology and consumer behavior. A couple of recent articles from CNN.com “ Young listeners opting to stream, not own music ,” (June 16, 2012) and “ Teens’ first choice for music listening? YouTube ” provide some insights into the latest trends. These changes have forced musicians to find new ways to make money. A recent NPR series highlighted some of the new models, see: “ How Musicians Make Money (By The Fraction Of A Cent) On Spotify (September 26, 2012), “ Crowd Funding For Musicians Isn’t The Future; It’s The Present ” (Sepember [Continue Reading …]
That answer is yes. Labeling a food as “medium” increases the amount people eat. Food and drink sizes have drifted higher — today’s small is yesteryear’s extra large. In clothing, sizes keep drifting smaller so people feel better about themselves. This radio story “ How Food and Clothing Labels Affect What We Eat and What We Wear ” (NPR Morning Edition, September 25, 2012 — text also available at same link) describes research being conducted by Aradhna Krishna at the University of Michigan. What are your experiences with food and clothing labels? Do you think they influence your purchases and consumption habits? Have you seen this “trick” used in other product [Continue Reading …]
“It is difficult to make predictions, especially about the future” (a quote attributed to many different people ). That said, a safe prediction for the future is that the world of advertising will be even more turbulent and dynamic over the next several years (if not longer). Search consulting firm HTP Company created this short (5:21) video “The Science of Search: Future of Online Advertising and Search Engine Optimization” that focuses primarily on search and search ads. The video features interviews with some leading thinkers in this area. What do you think? Will this make advertising and search a more interesting place to work in the next [Continue Reading …]
Technology available today gives consumers access to “ digital wallets. ” Examples of this include waving a key fob or cell phone in front of a reader to pay for a good or service. While I think that geeks (like me) look forward to this, I believe most consumers remain reluctant to give up their cash and credit cards. A few recent articles on the topic suggest that maybe the tipping point for electronic payment in the U.S. may arrive soon. A push from Starbucks cannot hurt. Starbucks recently invested in Square (see “ Starbucks and Square to Team Up, ” New York Times, August 8, 2012) and [Continue Reading …]
Marketing Charts summarizes research conducted by BIGInsight in “ Creative Grocery Shopping The ‘New Normal’ Post-Recession ” (May 22, 2012). Somewhat surprising was the finding that consumers are spending more on groceries now than they were before the recession (maybe less eating out? — they don’t say). Not surprising is how consumers have changed their shopping behavior – preparing more lists, using more digital resources before they go shopping, shopping closer to home and visiting more stores. You can find the exact data in the article. Take a read through the article. Do you think that this is the “new normal” or will shoppers return to pre-recession [Continue Reading …]
Electronic Arts (EA) has been a dominant player in gaming — especially with their live action sports games that are usually played on computers or TVs. Then, along came Zynga, which offered mobile games through social media like Facebook. Since this market is relevant to many of our students, it might be useful to keep up with the latest competitive battles. Now EA is trying to play catch up; EA has a lot of cash to invest into these new markets. n this “listen” at NPR’s Morning Edition, “ Game Giant Forced To Play Catch Up ” (May 4), you can hear what EA is trying to [Continue Reading …]
Target stores is launching a new concept — specialty shops they call “Shops at Target”. This short article “ Would You Pay More For Fancy Versions of Target Products? ” (Fast Company, April 16, 2012). provides examples of the efforts to sell upscale and considerably higher priced products just a few aisles from Target’s usual discount fare. Read the short article, peruse the examples, and thoughtfully consider these questions: Will Target’s usual customers buy these products? Is this is consistent with Target’s positioning? What other products might be sold in the Shops at Target?
Showrooming is the practice of shopping in a physical store and then purchasing the product online from home. Online retailers often have cost advantages over their brick-and-mortar competitors; online retailers don’t build stores in high-traffic, high-cost locations, and they don’t need to employ a large, knowledgeable sales staff, many do not have to charge sales tax. Brick-and-mortar retailers do have those costs – and increasingly, customers are going to those physical stores to view products and talk to sales staff before buying online. These advantages, and some great marketing and technology, have fueled Amazon’s rapid growth. This article from the [Continue Reading …]