BUS 3500 February 17

The chapter on market research opened my eyes to the methods that organizations use to garner data and insight on product preferences from consumers. I can see the value in these methods although they are often annoying to me as a consumer. Mall surveys especially are irritating when you're being accosted by eager pollsters while in the mall for a purpose other than being someone's research project. The point of sale data collection also gives me a twinge when I consider that Big Brother is tracking my purchasing preferences, and using them perhaps to send me more propaganda (aka advertising) that I did not request. But if I look at it as a benefit, the targeted methods of offering me products that have the propensity to appeal to me does have value to me - if there is a product type or class that I am prone to purchase, then offerings of those products that fit my criteria are possibly a service to me - a convenience, and a benefit. In the meetings and convention industry, I am eager to participate in surveys because I want my voice to be heard, I want changes to be put into play that will make my job and my industry better. I actively participate in these surveys and look forward to seeing the results published. Sometimes there is an incentive, but most often the incentive is in the betterment of the industry, my livelihood. I did appreciate the tips on creating survey questions and data collection. I will use those immediately.

BUS 3500 February 10

I love the topic of market segmentation and especially geodemographic segmentation. I was happy to read the entry about the Claritas PRIZM system because I was exposed to this when I worked at a marketing firm in Denver. I didn't really understand the unique functions of geodemographic segmentation over the other methods of market segmentation at the time, but now after this week's exposure I can see more of a realistic context for what we did back in Denver. We used the Cluster Coding system to conduct target marketing for companies like Vail Associates, Steamboat, the Colorado Tourism Board, and Comcast Cable. We also cluster coded their existing customers so they would know what groups responded best to what product groupings they offered, and then launch marketing to attract more members of those groups. One example was Vail - they assumed that their customers (and therefore future targets) were highly affluent cluster groups - but when analysis came in, they really had a much larger set of mid-level groups - families with kids for the ski packages, fixed income seniors for the golf packages. They dropped their focus on high end offerings and beefed up their offerings to these other groups, customizing each offer and package to fit that particular target. We ended up with eight specific smaller campaigns, rather than just one really glitzy one meant to reach everyone. Then we used database marketing to reach out to the customers with offers that fit their specific wants and needs. It made for smaller more affordable mailings, took the shotgun approach down to a rifle approach. They were also able to drive yield by reaching out to a specific group with a special offering on days (or hours) that were under utilized, or if a unique opportunity came up, such as a last minute booking of a pro skier to do a technique clinic, or room availability at the Inn, etc. Word could get out fast and in a more affordable, personal message format too. Geodemographic segmentation really opened their eyes and also opened the door for expansion into areas they had not previously considered. Then database marketing kicked in to put this new insight to work in making targeted offerings that had a high propensity of being accepted. In "lean" this is referred to as a "pull system." I worked in lean at Shingo Prize for 2 1/2 years. It's providing something in answer to a need by the customer. My old boss in Denver would have said it's Marketing 101: "find out what the customer wants and give it to him." But you first have to find out who the customer is... and these lessons in segmentation and next week's market research topics are a valuable starting point.

Bus 3500 February 3

This week's class went fast - and I can see the importance of understanding consumer behavior, thinking about their decision-making processes. A lot of this subject matter made so much sense to me but I had never really considered it before. The concept of the evoked set, for example, and the criteria that differentiates between a limited decision vs an extensive decision. A really interesting aspect to me was the concept of cognitive dissonance, and what can be done to prevent that from reversing a buy decision. Lots of high end examples were given, such as automobile purchases - but what really came to mind for me was the Snuggi that my family felt compelled to buy for me at Christmas. All the ads said it was the perfect gift, and it was a quick, easy decision for them in choosing a gift for me, apparently - but my perception of it, its questionable usefulness (or lack thereof) and it not fitting with my lifestyle (am I really a Snuggi person??), proved to be a case of buyers remorse - or was it recipient remorse - what in the world were they thinking? A blanket with sleeves?? The ads may have matched the lifestyle and needs of somebody's mother, but not their mother - not me - I would never wear such a thing, the whole idea was ludicrous and a little humiliating. I folded it back up and put it back in its box. But... a day or so later - checking out the box to see where I could take it to return it, considering just donating it if nothing else - I could not help but see the graphics on the package - and I read through it. There were ideas and benefits, photos of features, color photos and descriptions printed on the side of the box - I pulled the thing back out of its box and actually tried it out for an evening - I found that it has some redeeming qualities and have to admit that it serves a need  - was quite cozy and I did not feel conspicuous or lame as I had expected to. I had no idea the thing had convenient pockets for your hands or your tv remote or cell phone - the box description told me so, and so did my "test drive" of it. So, I decided to keep it. Good marketing decision for those guys - countering cognitive dissonance with their packaging.