Sunday, February 25, 2007

Breaching Consumer Cynicism

Because of the vastly technology-oriented society consumers live in today, it is harder and harder to create successful marketing campaigns and target consumers effectively. In Peter DeLegge’s article, “The Marketing Relevance Imperative,” this exact issue is speculated upon. Delegge mentions that consumers are getting tired of receiving ads that are mass-targeted to them in general. In this day and age, they have unprecedented access to information and have learned how to become “more adept in tuning out predatory messages.” Delegge argues that the only way for marketers to make sure their messages are heard is to make them relevant to consumers. Only by creating campaigns that means something to consumers, can marketers effectively connect with them; and vice-versa.

If there is one thing that all marketers have in common, it is that they all want in on the secrets of making consumers more receptive to their messages. But the problem today is that most consumers are raised to be more cynical of marketing messages in general. As part of Generation Y myself, I grew up being exposed to floods of marketing and advertising from a young age. Many promotional efforts and marketing schemes have been a nuisance to me since my teenage years. The article states that consumers have evolved under these circumstances. They have learned to recognize “a shark fin and steer clear.” For example, so many consumers have Tivo and watch pre-recorded television shows. They are able to skip over 90% of the commercials with a click of a button. Likewise, internet programs such as pop-up blockers and adware also filter out spam. With the technology boom at its peak, how can marketers find more innovative ways to market and channel their products?

That is the question I would like to address in my paper. I’m sure all the other marketers would like to know how to penetrate the cynicism consumers have today and connect with what they really want/need. One of the ways I think this can be accomplished also relates to DeLegge’s concept of relevancy. I think the best way to connect with someone is through their emotions. Marketers have to go beyond the surface needs/desires and really engage consumers’ hearts. Personalization may be an answer. Google has been doing pretty good on that aspect. They now allow you to personalize your Google homepage and place all your favorite links on one convenient webpage. Another way to better understand consumers may be to study psychoanalysis. Certain neurons and transmitters in the brain deal with memory and decision-making. If we understand the physical process in which the brain takes in information, perhaps marketers can project messages more successfully. By tapping into the human psyche and researching what really makes consumers tick, marketers will have a stronger foundation for understanding consumers and their buying behaviors.

Friday, February 16, 2007

Customer Experiences: The VW Phaeton

The new Volkswagen Phaeton commercial titled “What Hands Can Do” (watch it at http://www.youtube.com/watch?v=2zIODJsnqXE) consisted of numerous hand shadows on a wall to create realistic silhouettes of animals, people, and nature scenes. In Bernd Schmitt’s article, “A Framework for Managing Customer Experiences,” he mentions the 5 Strategic Experiential Modules used to develop customer experiences toward a product/service: Sense, Feel, Think, Act, and Relate. The VW commercial intends to make an impact on consumers by using most of these elements.

First, the commercial employs the sensory experience. According to Bernd, “sense” creates experiences appealing to the sight, sound, taste, touch, or smell. In the ad, the hands were very visual in creating scenes that were expressive and vivid. The fact that they were black and white in shadow form did nothing to detract from the visual stimulation consumers received. The music was also very uplifting and mystical. Furthermore, the shadow puppets adhere to an almost sublime/fantasy theme, appealing to the “feel” experience. Nature and fantasy scenes in general inspire feelings of wonder and peace, both of which are employed artlessly in the ad. Next, Bernd states that the “think” experience “engages customers’ convergent & divergent thinking through surprise, intrigue, & provocation.” At first glance, one would not think to associate the shadow puppets to the Phaeton. It is not until the end of the ad, that viewers realize the meaning behind the motto VW Phaeton: hand-made perfection. Lastly, the ad attempted to affect customers’ bodily experiences and show them an alternative lifestyle through the “act” experience. The selling point of the Phaeton is that it is completely hand-assembled, as opposed to the usual machine-made cars of rivals. VW implies that customers should experience the wonder and perfection of what pure hands can make- in this case, a vehicle like no other.

Volkswagen has always used touchpoints to better relate with customers. In order to improve their customer service, VW adopted 60 Nextel phones equipped with 4-in-1 technology tools with a digital walkie talkie feature and wireless data to help them establish more solid relationships with their customers. Furthermore, they have tapped into the mySAP Relationship Management solution to deliver an integrated, holistic view of their customers, enabling customers to communicate directly with manufacturers via phone rather than go through a dealership. Another touchpoint was VW’s branding technique. They predefined automobile advertising by moving away from convincing consumers that a car will provide a new and better lifestyle but that it would instead improve the lifestyle they already had. For example, the Beetle became a living entity and an extension of the family itself. Throughout its multiple campaigns and ads, Volkswagen touches customers by portraying itself as quirky, unique, likable, fun to drive, and affordable. The only critique I have is that the most recent Phaeton does not live up to the expectations portrayed by its commercials. It seems that the wonderful ad ends with a photo of a rather pedestrian car… not at all like the innovative advertising campaign.

The VW ad was very enjoyable and easy to evaluate, mainly because it fit most of the SEM categories and was relatively straight-forward in its appeal. However, because I’m a very visual and receptive to emotional appeals, I may have been more influenced than someone who is more fact-oriented and practical. Because different customers respond differently to the same ads, it takes great skill to be able to find a common ground that appeals to the majority. However, I think most people would agree that the Volkswagen’s campaign for the Phaeton was indeed unique and refreshing.

Sunday, February 4, 2007

Segmentation

After reading the articles and listening to the podcasts, one segment in particular caught my interest- the Modern Male Shopper. This segment called out to me because in previous marketing classes, we’ve always targeted distinct segments that were already fully established. The Modern Male Shopper is a newly evolving segment that previous marketers have not directed their focus to before.

As mentioned in the article, “Secrets of the Male Shopper,” marketers traditionally only aimed at the two polar extremities of male consumers- the metrosexual and the retrosexual. Today’s modern male shopper falls somewhere between the two extremities. I believe the age demographics of the modern male shopper ranges from 15 into the 30’s. They tend to be younger because of the higher divorce rates and likelihood of living with single moms. These males are influenced at a very young age by their sisters and moms, and therefore, are more likely to care about their appearances and how others perceive them. Their income levels (or their parents’) may range from the middle class to the upper crust of the elite class. Because these classes have more disposable income, they have more freedom and ability to buy products that satisfy their underlying needs. In terms of behavior, I think the modern males still enjoys “macho” activities such as sports and beer, as well as finds interest in power tools and technological gadgets, but they also incorporate “female” aspects in their behavior. The podcast about male shoppers implies that traditionally, “guys buy and women shop.” But now more male consumers are opting out of mission shopping and spending more time browsing items before purchasing. They may also be willing to spend more time and money on personal grooming items because of the importance of social status. Dressing well now symbolizes social standing, acceptance, and prestige, and men are drawn to these images whether consciously or unconsciously. As implied in both the article and the podcast, the modern male shopper has an underlying fear of being labeled as a “metrosexual” because they don’t want to seem feminine. Therefore, marketers must be really careful how to label/categorize the products they sell. I think they want to feel secure being a man, even when venturing into what they fear is “girl territory.” That’s why places where they can be pampered are called “grooming lounges” instead of “salons” and why skin creams for men are categorized under “health/fitness” to avoid feminine overtones. These men are interested in taking care of themselves and being well-groomed, as long as they can firmly keep their pride without being perceived as gay or feminine.

I found describing this particular segment to be relatively easy simply because I had the guidelines of what it meant to be “metro” and “retro”. And since most male shoppers fall somewhere between there, I was fairly good at placing myself in their shoes to combine aspects of both categories. I think that without these guidelines, it would have been harder to wildly speculate the behavior and needs of random groups of people. Regardless, I think this is a great marketing exercise because it forces you to think outside the box and figure out what really makes certain groups tick. The only thing that bothers me about it is that I am trying to describe these people based on common stereotypes. For example, not all males like sports and being “macho.” Similarly, some men are more secure than others and won’t be bothered about what other people think of them. Not everyone fits into the stereotypes, since no two people are identical. However, I think that marketers now realize that there will never be a set image (as with stereotyping) when it comes to targeting specific groups. They have to constantly alter the characteristics of each target group to reflect changing behaviors and attitudes in the market.