Tuesday, August 10, 2010

Thursday, April 30, 2009

Market trends 0.000.001: LEE

How do consumers learn about product availability/features? This seems to be the hottest question this summer. And I believe the answer is two-fold. Advertising, and the actual product itself (packaging etc)

 

1: Advertising.

Without advertising the consumer would have almost no way of  knowing of the product exists unless they stumble upon it by accident. Advertising ranges from television ads, billboards,  magazines, flags, posters radio, etc, etc. An advertisement is basically a promotional item used to arouse the interest of  the consumer and get them to make a purchase an ad is designed to make the consumer believe that the product is THE only product they should be buying and sometimes bends the truth to make their product more desirable.

 


2: Product packaging, and such.

            Another large part of consumer awareness is the product itself. If a consumer walks past a product, the product wants to look attractive and eye catching so the consumer will stop, and take a peek at the product, and if all goes well and the consumer approves, a purchase is made.

 

And that ladies and gentlemen, is how consumers learn about product availability in a nutshell.

Alec 1.1 Optus animals sing in harmony


When searching to buy a new mobile phone the consumer is bombarded with an interminable choice of colour, brand, features, applications, accessories, size and shape. This can seem like a daunting and overwhelming task. 

This is why phone companies utilise advertising to help consumers learn about product availability and features etc. TV, internet, public advertising, are all ways phone companies present to the public their products features and availability wholly due to it's mass appeal. Simultaneously they can reach their target markets as well as others who are involuntarily and subconsciously processing the companies advert on Tv or on a bus shelter.

Advertising can be a powerful tool and is used to market certain products at certain demographics within a community. Images, slogans, colours and sounds are stimuli and are used to trigger a response, if the response is negative then the consumer will have difficulty remembering the product but, if the response is positive there is a far better chance the consumer will remember and purchase the product. As the consumer responds to advertising stimuli they begin to learn and form opinions about the products available to them. At this stage they go through the 5 stage buying process.


1. They have a need.

2. They seek alternatives.

3. They evaluate alternatives.

4. They make a purchase decision.

5. They evaluate if the purchase was correct.


A recent market trend within advertising - especially phone companies and manufacturers - is to target young children or 'tweens' aged between six and thirteen. 

"as manufacturers have attempted to engage

with this young age group to develop brand loyalty for life, children have been put

under increasing pressure to consume." (1)


I'm now going to give you a basic overview of a popular phone company and you have to tell me who is the target market. Who are they appealing to?


*Their main colourway on television and internet is bright yellow and pale aqua.

*Their television ad. has a 'tween' on it.

*Within the website you need to click on a vending machine to access the options menu.

*Slogans like, "Using Optus mobile is a snack"

*Both their television ads. and Internet site has cute, cheeky, cartoon animals scurrying everywhere.

*They sponsor a major prime time 'tween' television show - So You Think You Can Dance.  


It seems telecommunications company Optus are leading the way in 'tween' marketing trends with their cute and colourful advertising, but by targeting children at such a young age are the companies moulding them to be consumers with out them thinking twice.



(1) Downie and Glazebrook, Australia Institute Research Paper No. 41 (2007)

Product Introduction and Unique Characteristics...

1.3 The Apple iphone

The apple iphone swept the globe taking it by storm with its revolutionary design and technology. It’s simplistic, easy to understand and computer compatibility made it a must have product.  

Phones have become a necessary commodity of life for the general public. The iphone has become an item of status, and influencing jealousy with other Mac users, not intentionally though.  

The phone has many features that other mobiles do not, for instance the technology is constantly being updated, making improvements on the phone constantly. Being adaptable to a computer makes managing the phone so easy. The iphone is like an ipod making it that more enticing as it is multipurpose, using itunes to mange and store music on it. Itunes to date is the most popular technology to download and store music. Also with this revolutionary phone it can connect to the internet better than any other phone to date, because displays the actual internet as seen on ones computer, not a modified version available on other products claiming to provide internet access.  

The target market is very diverse, Apple’s ingenious idea to patent a phone that works with the Macintosh computer making people subconsciously want this phone. With Apples already massive market it was easy to introduce a product that complimented its already broad range of products. 

The introduction of this phone had a positive marketing campaign for along time prior to its release creating a high level of anticipation for when it was finally released. By promoting it, it boomed out the starting gates. This product is unique to any other phone as it is the Apple phone, no other phone can connect and enhance the Apple computer as well as the iphone. It created interest and excitement about a Mac product enticing new customers who had previously only been identified with the PC. 

With the Apple team constantly looking for practical was of reinventing the product, and not forgetting about previous models, it has created very loyal customers. This is a prime example of how a unique product positioned itself in an already very competitive market.


CONSUMER STUDIES : ROGAN

1.2 : identify characteristics that influence consumer behaviour and choice.

All human beings are different and have their own individual needs and desires.  In many cases groups of people can become products of their environments -  eg. how they were brought up, where they are from and their schooling.  However the specific goals that we elect and action we undertake are the result of individual thinking and learning.

A general group of consumers is known as a demographic - ie. teenagers, middle age men etc...

Marketers target certain demographics with products through advertising and corporate sponsorships of athletes, actors and models who may make the product appear "cool" to the demographic or possibly even across the board.

This heavily influences consumer choice because it compels the consumer to buy the product that the "star" is promoting, in a vain attempt to imitate or just generally because they believe in them and their choices.

Here is an example of a pepsi advertisement used to woo consumers featuring David Beckham.

Also as stated earlier individuals are driven buy wants and needs, these again vary across the board.  For example. : A young student, might require study supplies etc. while a elderly man might simly only require meals and the odd pair of slippers.

A fine example of a product that is marketed towards the older population.

As well as needs and wants consumers are also influenced by their ego.  This might sound funny but young people care far more about how they are perceived than the older generations.  And they are influenced accordingly by fashion and accessories.  Whereas again, an old cobber just want some comfy slippers to slip into and a nice glass of brandy.

On the flipside, mobile phones are tailored more toward younger more social people.  Now phones such as the iphone are flooding the market with additional features, covering all bases and trying to also create features that make life easier for professionals.

Wednesday, April 8, 2009

Consumers and markets - tane

1.4: DO CONSUMERS DRIVE THE MARKETS OR DO THE MARKETS DRIVE CONSUMERS?

– tane richardson

Okay i'm going to set it out like this.
First i'll say what i think about this, then I will do some research and finally come to a fact-based conclusion. Those are always fun.

WHAT ME THINKS
At this point I believe that it's the markets that are driven by consumers. It's the businesses that can't do without you. It's the businesses that desperately research consumer patterns and trends in a bid to trade with you. Businesses are completely driven by the consumers and without us they die and turn into adult bookshops. Consumers driven by markets? I don't think so. I think we are heavily influenced by advertising, but this doesn't drive us, we still have the conscious choice.
What the consumer is driven by is quality. By word of mouth, if a garage hairdresser is said to be better than a professional parlour, then the consumer will be driven by that knowledge to use the better one. But advertising is not as credible as word of mouth. A Current Affair may be nearly as effective when they point out the 'best brands', but that show is crap.

THE RESEARCH
Here are the juiciest bits from a few sites on the subject.
(A) EXAMPLES OF MARKETS DRIVEN BY CONSUMERS
1. "http://www.foodproductiondaily.com/Supply-Chain/Consumers-drive-market-says-book"
Consumers Drive Market, says book
A new book has been published examining how consumer desires shape the way that food manufacturers develop and market their product lines.
(The book says) it is usually the consumers who drive product changes because of their own expectations, forcing manufacturers to make changes to existing lines. Greater personal wealth has given consumers a lot of power in the second half of the 20th century, and globalisation means that they demand a wider level of choice as well as good quality products.
Companies have also had to seriously change due to the current fad for health and wellness products. Consumers are increasingly worried about health problems such as obesity, heart disease and diabetes, and so are turning away from fatty or unhealthy foods.
Other controlling factors discussed in the book include consumer opinion on animal cruelty, the environment and ethics.

2.http://www.cosmeticsdesign-europe.com/Products-Markets/Female-consumers-drive-nutricosmetics-market
Female consumers drive nutricosmetics market
The report states that the current body obsessed society looks set to drive the nutricosmetics industry, with manufacturers feeling the pressure to develop new product lines to meet increasing consumer demands for 'beauty from within'.
Rising disposable incomes are also encouraging the female consumer to spend more on becoming body confident with the emphasis being placed on Chinese and Indian markets, as consumers are becoming more affluent and 'can spend more money on self improvement'.
Many cosmetics giants such as L'Oreal, Procter & Gamble and Shiseido have already capitalised on the trend and created nutricosmetic ranges, with some endorsing their products by collaborating with celebrity doctors such as Howard Murad and Nicholas Perricone.
However, despite nutricosmetics being further driven into the spotlight, there are still some doubts regarding their efficacy with Werner Voss, who heads the Dermatest Institute in Muenster, Germany, described them as 'simply worthless'.
The head of the Dogwell Research Institute For Dogs, T. Richardson, also described nutricosmetics as 'absolute shit. Just absolute fucking shit. Pathetic.'

(B) EXAMPLES OF CONSUMERS DRIVEN BY MARKETS

http://www.marketingmag.com.au/around_the_table/view/230/
HAS ANXIETY BECOME THE DRIVING FORCE BEHIND CONSUMER BEHAVIOR?
"If we get more interest rate rises and things continue to get worse, I will definitely buy more home brand. There is no matter of choice."
IFM research shows that across the spectrum people are becoming increasingly anxious about their budgets and spending. Even the higher income brackets (who suffer the least mortgage stress) are showing caution. Even they have reined in spending on little things and are purchasing cheaper day-to-day alternatives. Middle Australia is also finding cheaper alternatives, but the hardest hit, as we read in the papers virtually every day, are young families with mortgages.
People take action (mostly) based on one of three emotions:
Fear
Hope, and
Love.
The Transportation Security Administration (TSA) is in the fear business. Every time it gets you take off your shoes, it’s using fear (of the unknown or perhaps of missing your plane) to get you to take action.
Doctors selling check-ups, of course, are in the fear business (while oncologists certainly sell hope). Restaurants have had a hard time selling fear (healthy places don't do so well). Singles bars certainly thrive on selling hope.
The easiest way to build a brand is to sell fear. The best way, though, may be to deliver on hope while aiming for love.
Like most creatures, people are stressed out. Almost all the time. We get stressed about money, reputation, safety, relationships and whether we have to move our seat on the plane after we get on.Terrorism, global warming, food scares, the credit crunch etc. are all 21st century epidemics that make everyday life not just faster, but also far more worrying than ever before. Not necessarily because life is more dangerous, but because, through the advent of global media, life just seems more dangerous. As a five-year-old child I walked a mile to school every day without parental supervision. Today in Japan GPS is wired into school blazers to ensure the child has got to school safely!
So, there is no doubt that anxiety is an issue and an issue that needs an antidote. For clever marketers that antidote can be their brand. Brands that make you smile and help you forget today’s worries will do well as will brands that take you back to halcyon days when life was somehow safer and simpler. This is why brands like Adidas, Puma and Nike have reintroduced retro designs with such great success and why you are seeing the renewal of brands like Mini, which remind you of a time when things were – perceptually at least – just so much more innocent!
So, has anxiety been the driving force behind today’s successful brands?Absolutely.

THE FACT-BASED CONCLUSION
Aha, yes. The research has confirmed half of my previous opinion, the pretty frigging obvious part, the part that proclaimed businesses need us so badly they are driven to measures. Of course that's all true. We as graphic designers ARE those measures.
But on the otherwise, the article about consumers being driven by fear, hope and love, that certainly struck a chord. I was previously of the opinion that we were influenced and not driven, but fear campaigns, yep, they certainly drive the consumer once they catch them. And of course with all the 'war on terror' and credit crunch crap we're fed every day, anxiety is a big driving force.
So to sum on up, I say that both statements are true but i think that markets are more driven by consumers than consumers are driven by markets. This is because we have more power of choice due to globalisation.