Tuesday, March 29, 2016

How ADIDAS Shapes My Behaviors

When I open my computer, the first thing is go to ADIDAS online store to check the availability of Yeezy Boost 350. I have already done it more than one month. No matter where I am, no matter what class I am taking, I must visit ADIDAS online store in order to buy Yeezy Boost. Unfortunately, even I repeat to click the website, I have no opportunity to have one. I know ADIDAS did a successful marketing plan to shape consumer behavior.

In fact, the official price of a pair of Yeezy is $200. Because it is randomly limited edition, the price rise to more than $1,000. I thought it is not necessary to have one at the first time I knew this shoes. After one week later, I saw a lot of information about how Yeezy popular in the world and in order to have a pair of Yeezy, people become crazy. People do not sleep in order to make sure they never miss the opportunity to have a Yeezy. There was a long waiting line in every ADIDAS retail store. And the information about Yeezy appeared in every social media. So, I paid more attention on Yeezy and become crazy to have one in order to show the shoes to my friends. Recently, I found I am not really like the shoes, and the most important influence for me to have Yeezy became earn confidence. If I have a pair of Yeezy, my friends must be envious of me. Yeezy becomes a tool to active my sense of accomplishment.

As a marketing major students, I realized ADIDAS shaped consumer behaviors about buying shoes. I think the limited edition is the most significant decision and it was a perfect strategy to attract consumer's attention. It is no doubt that less is more. ADIDAS believes the design and function of Yeezy Boost must become the best products. They gave up sell as much as they can produce, and choose limited editing in a random time everyday. Because of that, more and more consumers becomes its regular customers and visit its website when they have free time. Then, ADIDAS easily to shape consumer behavior that is visit and follow ADIDAS. Besides that, I did not have any interests about wear running shoes. When Yeezy Boost 350 became the most popular shoes, I spent more time on running shoes. I knew it is too hard to have a pair of Yeezy, I tried to find another one instead of it. ADIDAS realized that they successfully shape consumer behavior. It is a trend to have a pair of running shoes. About half month ago, ADIDAS began to sell a new type of running shoes, named NMD sneakers. NMD sneakers has three models with more 12 colors and styles for consumer to choose. But it same as Yeezy Boost 350, NMD sneakers are randomly sell time with limited edition. 

After Yeezy Boost 350 and NMD sneakers publishing, ADIDAS spent almost one month to occupy the market of running shoes. I am not surprised about this result, because ADIDAS successfully shaped consumer behavior about purchasing shoes. And it is a good example for us to analyze consumer behavior in doing marketing strategic plans.  

Sunday, March 27, 2016

Why Consumer Favor "Green" Company

I like Tanya Gazdik's article, "Consumers Favor 'Green' Companies, No Matter Why They Are Green." There are a branch of  researches and surveys in the article and all of them can reflect consumer behavior well. First, three in five Americans will make a New Year's resolution to live a "greener" or more environmentally friendly lifestyles in 2015. Second, more than 90% of American say it is important to recycle, moderate household use of energy and conserve water. Third, better than eight of ten americans plan to look fore more opportunities to "go green." Forth, 60% Americans void to make green resolutions represent a significant increase from previous iterations of the survey. Fifth, six in 10 American agreed with environment is in very bad shape and a major environmental catastrophe is inevitable. Sixth, women were more likely than men to say they have felt guilt in recent years about not living a "greener" lifestyle. Seventh, four in five Americans agree that corporations have a responsibility to adopt "green" behavior. 

After analyzing the seven main conclusions in the surveys in Tanya Gazdik's article. The first reflection of marketers is company should pay more attention on "Green", because the surveys shows consumer's attitude is focusing on dealing with environment issues. So, marketers conclude that first, establish company as a "green" company. Second, hold more "green campaigns" in order to communicate well with the market. Third, the main target audience is female. It is obvious that this is a perfect example that for marketers to understand how to define consumer behavior. I do not want to spend more on analyze the consumer behavior from this article, but I want to talk more about how to find consumer behavior after reading this article. First, research is one of most important steps. In the research, marketer need define the problem and conduct the best and representable questions in the surveys. The next step is gathering information and analyze the results of the surveys. We need input results in SPSS, and use SPSS to contract with different data. After those two steps, we can use the result to analyze the consumer behavior. 

I believe only the useful and efficient conclusion must contain reliable facts. The article, "Consumers Favor 'Green' Companies, No Matter Why They Are Green." is reliable for us to analyze consumer behavior, so we can conclude because environmental issues are common sense for every consumer. Consumers have positive attitude to consume a "Green" company. We can establish the company mission and goal connect with "Green" and use words "recycle" in our products. In my opinion, "Green" company is a good idea for company to target audience, and there are a lot of social issues that connect well with consumer behavior, like woman rights, children's development, and poor people.  

Thursday, March 24, 2016

The Edification of Google Glass

The headline,"Even the guy who designed the iPod may not be able to save Google Glass." attract my attention to read the article, because both Google and Apple did successful marketing strategies. The article connect well with consumer behavior, I have interests to read as a marketer. On the other hand, this is a hot and popular topic for readers.

The main reason why Google glass cannot be success as iPod is Google glass doesn't have a clear advantage. Compare with iPod or any other Apple's products, Google glass has not changed the world. On the other hand, it is no doubt Apple has changed the world, e.g. Macintosh defining the computer for the rest of us, there is no operating system does better than OS X, and iPod reinvented the music world. However, although Google glass briefly healed as the wearable heir to the smartphone, consumers do not accept to wear phones on their face. The main advantage does not match the consumers' behavior about phone, that is why Google glass failed in the market.

Now, Google paid more than $3 billion for Nest in order to hire Tony Fadell, the smart-home startup inventor. They want to reset the unsuccessful efforts of Google Glass and redefine it. In my opinion, I think the most efficient way is changing consumers' attitude about the function of glass. For example, my first response about glass is studying or reading. I do not like wear glasses because it is not convenient when I workout. I had bad experience of wear glasses. I think some of consumers have same reason as me. Apple can be success because it change the world. If Google Glass wants be success, the first step is changing consumers behaviors, especially their desire to wear glasses. How to establish the positive attitude about glasses, like, convenient to wear, protect eyes, the fashion trends. Now, I realized why the author said, "Even the guy who designed the iPod may not be able to save Google Glass." Spending on advertising is not a hard project, but changing consumer behavior is a huge challenge. And Google has a competitor, Apple, the most successful company in smartphone.

Anyway, I like Google Glass because it is a new technology and it can change a new world of smartphone, but how to change consumers' attitude about glasses is the key point of success. I learnt a lot from this example and when I start my business, the consumer behavior is one of the most important parts that I need to analyze when making any business decision.

Tuesday, March 22, 2016

Content Marketing

I like the exercise which was a headline at the beginning of the class. Compared my headline with other classmates' ideas, I only had seven people want to click. My headline is the top ten places you have to travel. I believed that majority of us enjoy traveling, and the headline must attract classmates' attention. More than 20 people will click "'sorry mom,' the pictures of spring break." I found people pay more attention on the recent events and earn more happiness from reading. The spring break had gone about two days ago and majority of us had the deep memory about it. It is obvious that this headline struck a chord with us. Also, the headline implies the funny things in spring break and close to college students' life. On the other hand, my headline is too much usual. Traveling is a common sense for everyone, and it is not target college students well because college students has not enough money to travel. For the current situation, college students will choose click the picture of spring break.

According to my analyze about those two headline, I found how to target audience is the most significant step in doing content marketing. Traveling is less connect well than spring break with college students. The handout of audience analysis is helpful for me to understand consumer behavior in content marketing. My group chose Montana Bucks' to do content marketing. We followed the head out and discuss each question specifically. I found the way to be successful in targeting audience, that is establish the audience's profile. In the profile, analyze all parts of the audience, like, attitude, hobbies, income, goal, friends, family background, worries, and so on. After understanding each part, we can summarize the most important things that can attract audience immediately. For example, after analyze different parts in young families (our target audiences), we found the most important thing is the relationship with family members. We set up our headline as how Montana Bucks save my family. All of us liked it and thought it can attract our target market well, because this headline talked about the biggest worry in young families' life.

Content marketing is one of the most significant parts in my future business. After understanding the steps of how to generate headlines. I will follow the steps (set goals, segment, target, hyper target, and personalize) in order to make a successful content marketing strategy. Do not ignore that research empathy in each step is the key in the strategy.


Sunday, March 20, 2016

Cause vs. Purpose

The article, "Cause vs. Purpose: What's the Difference?" gave me a deep impression about doing marketing campaigns. The writer of this article, Max lenderman thought purpose is bigger than cause. He used Target and Yoobi as examples. From compare those two companies' campaigns, they spend different in their campaigns. Target ran a cause campaign, and it supported with six TV spots and seven print ads for the back-ro-school season. Because of that, Target spent millions on the cause campaign. On the other hand, Yoobi is a school-supplies brand and it has "One for You, One for Me" mission and works with the Kids In Need Foundation. Yoobi ran a purpose campaign and saved much more money than Target. It is obvious that, you must choose Yoobi's way to hold campaigns as a CEO or investor. Although cause marketing can achieve win the battle temporarily at the point of purchase, cause marketing can not win long-term brand love in people's hearts and minds. According Max lender man's idea about cause and purpose, I will try to establish  purpose for my future company. 

Max lenderman also mentioned that, "Seventh Generation’s purpose is to help people live a more natural and chemical-free life. A major retailer may sponsor the Sierra Club’s efforts against deforestation; Patagonia makes saving the environment its corporate mission." It means company need connect its own mission with charity or social problem. I agree with that, because consumers has more choices in every purchase. The best way to attract consumer's eyes is be special, and empathetic response to the social problems or charity. I found there are some area that everyone focuses on, social problems like, global warming, energy wasting, Ozone pollution, water decreasing and wasting. Charities like, Africa poor kid and family, handicapped, leukemia and cancer. When choosing the purpose for the company, we need consider more about how to connect the purpose well with our mission. My mother's company is doing cosmetics and providing beauty service. Because of the majority of her consumers are female, I will choose charity as the purpose of company. The woman discrimination still happens today, I will set up a foundation of helping women to work and study. I believe, the purpose must receive our consumers'  empathetic response. They will support our company, not only the campaigns, but also for shopping in our stores. 

Do not do any cause marketing, to be a purpose marketing!

Friday, March 18, 2016

The Paradox of Choice

Barry Schwartz argues why more is less in The Paradox of Choice, it gave me a new concept about consumer behavior. I  had never thought about the choice in consumer behavior. I believed more choice can provide consumers more opportunity to make a decision. And I enjoyed having more choice when I bought anything. After reading The Paradox of Choice, I understand I am a satisficier. I like his idea about maximizers and satisficers. Maximizers always want to make the best decision in every purchase. As maximizers, they always try to maximize the price, quality. Even they made some choices, they still feel regret. They are less satisfaction with life, less happy, or less optimistic. However, satisficers always think good enough. When they make a purchase decision, they will choose one that could meet his or her standards. Satisficers are easy to make a decision and his a opposite life experience to maximizers. I am a satisficer because I spend less time on purchasing decisions. If I want to buy a shoes, I will define the function, style, and color of the shoes that I need. Then, search the brands on the Internet, and choose one that match with my standard. The process of a purchase is about half hour. On the other hand, I went to shopping with my girlfriend in Italy. She is a maximizer because her major is  women wear design. She will consider everything, like, the design must be unique and fashion, the material should match up to the price, and so on. We always went different stores and compare the products in each store. After she understanding all, she would choose the best store. Unfortunately, if there was a tiny thing she felt uncomfortable, she won't buy it. Sometime, we went shopping a whole night without purchasing any clothes.

According my experience and Barry Schwartz's definition, I summarized some ideas when I start my own business. First, I do not want spend more money and time on satisficer, such as me. If the product is good and meet my standard, I will choose it. Second, How to switch maximizers to satisficers is the most significant part for my business. The best way is to let maximizers believe my product is the best product. When I do any marketing communication plan, I will focus on advertise our unique and special points. Third, I will pay more attention on training my employee to understand how to persuade maximizers to satisficiers, such as, tell maximizers why our products can make them feel regret less, to make them feel happy when they finish purchasing.

Tuesday, March 1, 2016

Heuristics

We experienced how to use heuristics in analyzing consumer behavior to make successful decision. I enjoyed using it in analyzing brand position, deal with competition, flagship product,  new product, retailing, cool, pricing, color scheme, communication, and packaging. And there are six types of heuristics that I can choose to use: simulation, framing, gambler's fallacy, conjunction fallacy, availability, and anchoring heuristic. I don't want to list the reasons about how to match each heuristic in different parts of marketing. I want use them in the example of my mother's company.

First, our company did well in brand position. We define our company takes high-end route, because we found the majority of customers only considered the function of products without price. In order to keep beauty, they spend as much as they can. Second, our main competitors are shopping malls, because consumers through shopping malls can guarantee the quality of products and provide famous international brands, like DIOR, CHANEL. Even the price or products are not fit with themselves, they feel confident of using those brands. Because of that, the best of deal with that is focusing on our personalized services and we used different methods to advertise that. Third, we are chain retail stores and we do not produce any products. But considering Chinese consumers enjoy using foreign brands, we choose SHISEIDO as our flagship product. Consumers would be attracted by the Japanese brands and choose to consume in our company. Fourth, our company choose more international brands to instead of Chinese brands. The biggest part is SHISEIDO, and we also have a lot of products, which made in Europe, like France, Germany. Fifth, our company is providing beauty service for females. We designed the main color of our store is warm color, because warm color gives consumers comfort and relax environment. The last one is communication. We spend a lot of time on training how to communicate with customers. We found the most efficient way to persuade is praising. Consumers, especially females always become implosive when people praise them beautiful and young.

I took part in the majority of meetings in my mother's company, but I had never analyzed by heuristics. Now, I understand why our company develops rapidly.

Predictably Irrational

If we cam predict irrational consumer behavior, we have more opportunities to make successful marketing plan. As the videos displayed, people like drinking red wine, which is made in California, and they dislike the red wine comes from North Coronado. It is a good example of predictably irrational. We can select and advertise the wines are made in California in restaurant. People will be attracted by the Californian wine and consume. Another example of predictably irrational is tasting strawberry. Even both of two brands of yoghourt are not strawberry favor, when researcher asked them which one tastes more strawberry, only one student found both of them are not strawberry favor.
I think it is same as one way in Dan Ariely’s predictably irrational. The Fallacy of Supply and Demand: Another irrational consequence of comparative thinking. She gave us examples, like: when we walk into a store, the first price we see becomes an “anchor”, and we will use this price to judge any goods’ value in this store. She also explains behavioral anchors, like we always use the experience of a Starbucks coffee as an anchor point to judge all other coffee brands. It is obvious that understand consumer predictably irrational can do well in marketing. Furthermore, when I analyze these predictably irrationals, ethical dilemma occurs. The first example of drinking red wine gave an advice is choosing the red wine, which is made in California, but there is a situation like if the price of wine made in California is higher than the wine made in North Coronado and the quality is worth than Coronado one. What should I choose? Making more money by selling California wine or be responsible for consumers by quality of Coronado’s?
Anyway, it is the first time to learn predictably irrational and it gives me a new way to do marketing. No matter what kind consumer predictably irrational is, we can analyze it and come up with marketing strategies, but please be honest to consumers because companies would do anything but risk their prestige at stake.