ADPR 3100 1st Edition Lecture 7 Outline of Last Lecture I Creative Revolution a Growing importance of style b Cynicism about consumer society c Creative Revolution Outline of Current Lecture II Consumer Led Paradigm a Commodity Cost Communication Convenience III Hip Consumerism IV Sony Walkman and Swatch Current Lecture Consumer Led Paradigm Consumer Led Paradigm Hip consumerism 1960s Creative Revolution prior 1960 s was producer led paradigm but 1960s on is a consumer led paradigm Paradigms compared Producer led o Product o Price o Promotion o Place Consumer led o Commodity These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute o Cost difference is that a product sits on a shelf and you get to buy physical thing a commodity is not a thing but it is consumer satisfaction that s what you are trying to sell often gained by a combination of multiple products instead of prices meaning the cost of buying and using a product and serving consumer satisfaction is much broader than just how much someone pays for that product Think about a new phone after purchasing you have to activate it add new contacts etc effort and time involved those are costs too more than just price o Communication Two way dialogue between company and consumer rather than oneway delivery o Convenience Trying to make it as convenient as possible to purchase this product you can do it online and on the phone now Physically where the product is available isn t important but rather making the product purchase as convenient as possible Paradigms compared Producer led o Market manager o Formulaic advertising reason why o Accept consumer society o Goal of fitting in social acceptance The ads want you to feel that you can gain happiness through buying products you can fit in Consumer led o Rather than focusing on a manager who decides about the 4 P s this is focused on delivering consumer satisfaction their desires are much more important o Hip consumerism It doesn t say not to buy things it says if you purchase certain things then it is an act of hipness rather than an act of conformity Hip consumerism advertising urges people to buy products and rejecting consumer society but rather standing out through buying this product The argument why you should buy products are completely opposite with consumer led and producer led Design compared Producer led design o The company is the one who decides what to make and what features it will have company control o They put the stress on functionality standardization one product fits all Consumer led design o Rather than company deciding what to do they figure out ways for the market to tell them what to do market control o Stress on style rather than functionality o What a company offers for sale is determined not by the seller the producer but by the buyer the consumer successful companies don t make the decisions they let their markets make their decisions Sony Walkman Used consumer led thinking to advantage 1979 the Sony Walkman o Preference research not sufficient up until 1960s market research was called preference research what you do is get some of your market in a room and put different products down with competitors and see which they prefer get a fix on their competitors but problem was people were choosing from products that already exist they already know of o You know you need a new product that doesn t exist but you don t know what it is o SONY did this by turning to social trends and lifestyle research sent researchers out into society and observed and studied the everyday lives of the target markets thought about what their market would latch onto but doesn t have yet came up with idea of this Walkman o Social trends and lifestyle research is a way for companies to innovate Demand for style meaning Sony made many different models a different one for everyone Realized people were latching onto the meaning of the product o Ex sport Walkman more rugged version meant for hiking but found that vast majority of buyers of this were not outdoorsy people rather they liked the way it looked Suggested that the people who bought the sport had little practical need for it but it expressed a lifestyle to people who would see them with product o Cultural and emotional satisfactions not just emotional Swatch 1983 Consumer led approach It was a response to Swiss companies high labor costs Market for watches was cheap digital watch OR expensive brand name watches UP UNTIL SWATCH Swatch didn t try to fit into either of the two but made a 3rd market with the idea of watch as a fashion accessory o One for every outfit mood situation emphasis on styling Swatch standardized function to make inexpensive but made many styles of the watch fitting different lifestyles new collection every 6 months with 24 designs in each Express niche lifestyle o Sports people o Trend conscious people o Design and technology people o Conservative sophisticated people traditional watch o Etc Hip Consumerism with advertising now Advertising in the consumer led paradigm o This is advertising urging you to buy products for very different reasons buying the right kind can set you free and enhance individual freedom o Helps you stand out not conform Hip Appeals Cars o Ex Toyota ad rise up and take to the streets The language is about social protest benefit is that you stand out Hit Appeals computers o Apple we are the innovative and creative we will help you stand out Celebrate the streets as real LG has done this in order to sell its new line they developed a spot linking it to the street making it seem authentic to outsiders Ads that criticize authority Ads that make fun of bosses having no morals etc Reject the mainstream Certain products help you reject the mainstream Ex car pulls up to a party then they pull out because screw the party and keep driving to look at the stars in their car Ex beauty product you can invent yourself and define your own beauty it isn t about what the standard of beauty is Ads that make fun of ads get rid of cable and upgrade to direct tv goes way over the top on purpose Ads that declare independence your heart is free have the courage to follow it affliction clothing allows you to live your life how you want Key Points Consumer led paradigm o Key shifts from emphasis from function to style o From company decisions about product changes to marketing research changing product to what