Monday, November 30, 2009

Customer Insights Reflections on Group Project

Over the past semester, having the opportunity to work on the Insight/Experience Audit and Prototype with my group has been a very eye-opening experience. Although there were many aspects of this project that gave me a better idea of what it means to be a marketer, two in particular really stood out: developing the persona and building the prototype.

Developing the persona at the start of the project was really beneficial to me because it helped me understand the purpose of marketing. We are not trying to find people who are willing to buy our product, but rather we are getting to know people on a deeper, more intimate level and gaining insights to create a better customer experience.

Initially, however, I did not approach this assignment in that way. When I first learned which room of the house our group was assigned (the bedroom), I actually began to generate ideas for a bedroom product. It was not until Professor Walls told our group that we should not worry about the product until we develop our persona that I stopped thinking about the product altogether and began to picture our persona, a middle-aged married couple, James and Mary Davis. Our group then shifted attention away from the prototype, and we completely immersed ourselves in the perspective of James and Mary and who they were as people.

After we developed a few assumptions and personal traits about James and Mary, we began our generative and quantitative research to confirm/reject our hypotheses and look for insights about enhancing our persona’s experience in this particular room of the house. The key insight we found across our research sample was that of noise disturbances caused by differing schedules and differing tastes in music, television programs, white noise, etc. Using this insight as a platform on which to generate product ideas, our group came up with separate dome speakers to be placed above the bed in order to prevent noise disturbances caused by alarm clocks and other sources of sound such as music and television.

Approaching the assignment by creating a persona before developing the prototype helped me to better understand the need for this product and how it can improve the bedroom experience of our persona. In addition, the building of the prototype was a very useful, interesting, and personally relevant experience.

What helped me understand products and prototypes the most was listening to the guest speaker, Jeff, speak about his knowledge of industrial design and his experience with building prototypes. In both of the two instances that Jeff guest lectured, I was introduced to topics I knew next to nothing about. The content of both of his presentations gave me a very clear understanding of what is attractive and desirable to consumers as well as the practical ways of achieving the aforementioned. I learned that sleek, simple, and straightforward products that achieve a desired goal are what customers need and find appealing. I also learned about the different approaches to building a prototype such as using objects as simple as paper, tape, and cardboard.

The experience of getting to build an actual prototype allowed our group to produce a physical, tangible manifestation of what we were thinking. It really opened my eyes to the possibility and feasibility of getting our invention on store shelves. One of the things I love about this class is the connections to what is outside the classroom, to the types of situations that companies and marketers face every day.
This assignment and this class as a whole gave me the opportunity to apply the theories I have been learning over the past three years and a chance to think the way a marketer would.

Not only did I gain a richer understanding about marketing by learning about developing a persona and building a prototype, but I also had an enjoyable experience and great interaction with my group, Professor Walls, as well as the entire class. Being able to complete this assignment with my group definitely contributed to my learning and enjoyment of the material because there was a clear consensus between us about what we were learning and why it was important for the assignment.

Practically speaking, having a group with which to share the weight and responsibility of this assignment helped lighten my load and feel a sense of cohesiveness and camaraderie. Luckily, all of my teammates were always willing to lend a helping hand and contribute to the success of this project. For example, Jaime Quintanilla was so flexible with his schedule and was willing to come to every single meeting even when he did not necessarily need to be there. Maggie Bang was wonderful with delegating tasks and making sure that the content of our presentations was up to par. Natasha Immaraj was also really helpful with coming up with ideas especially with building the prototype.

In addition, I enjoyed the feedback and interaction with Professor Walls and the rest of the class which occurred in the process of updating our progress as well as giving our final presentation. I thought that breaking the presentation into parts allowed Professor Walls to track our progress and give us feedback which helped us come up with a much more refined and better final product.

Overall, I really enjoyed this project and class as a whole because I have learned so much about what it takes to launch a product that actually adheres to the needs of consumers and creates a valuable experience for them. There is so much more than what meets the eye when looking at a product on a store shelf. When I look back on all of the research and constant probing and digging through the data to find one valuable insight, I have a much greater appreciation for the work that marketers and industrial designers do and undergo. I sincerely hope that Professor Walls continues to assign The Insight/Experience Audit and Prototype in future classes because it truly is a very valuable and enjoyable project.

Wednesday, November 11, 2009

The Rise of Social Media

Generally, people have always had an underlying desire for relationships and a need for building community. The way people satisfy those needs and wants, however, have changed over time. Currently, we are seeing the rise of social media including social networking sites as a channel through which people can build relationships and achieve a sense of community.

Because companies seek to build relationships with consumers, it is imperative that they use the channels through which people communicate. One of such channels includes Facebook, which currently has about 175 million active users (Smith). Given the sheer magnitude of this number, it would be imprudent of companies not to explore this medium and attempt to connect with this immense network of people.

One of the ways companies can use Facebook to create a unique experience for customers is by creating a platform on which customers can voice their concerns, complaints, and comments by becoming a member of the company’s Facebook “group.” This will allow customers to inform companies about what is lacking, where they have gone wrong, or what companies should continue doing which will in turn help companies gain insights and become more efficient and effective at achieving their goals.

The dialogue that can be established between company and customer can allow for a much more robust relationship without being invasive or overstepping any boundaries. According to the Groundswell reading, one in four online American adults visit social networking sites at least monthly. Some check these social networking sites weekly or even daily. Given this phenomenon, Facebook is an efficient way of keeping customers in the loop about events, promotions, contests, and other programs that will allow the customer to build relationships with companies.

Social media such as Facebook and Google Blog Search are great ways to get informed and get a richer experience with your favorite companies. I recently used Google Blog Search to explore one of my favorite coffee shops, and I immediately discovered a coupon for a promotional event that offers a free seasonal coffee beverage between 4 and 8pm on Thursday November, 12th. I live right across from a Coffee Bean and Tea Leaf location, so I will be sure to participate in this event and receive my free beverage tomorrow after I return from class.

Using Google Blog Search was really an enriching experience because I have been trying to save money lately, yet I still wanted to treat myself to something this week. Now I can treat myself without having to feel guilty about spending money needlessly. I have participated in one of these promotional events before after finding out about it from a friend, and I did develop an affinity for this company after receiving a complimentary drink and great service. This experience made me want to patronize this particular coffee shop, and now I have a useful tool to search for more information from my favorite brands and stores.

Utilizing the tools and entryways of today’s social media can be beneficial to companies and consumers alike. Companies can use media such as Facebook and Google Blog Search to interact with customers, build good will, and update customers with everything the company offers.

Tuesday, November 3, 2009

With Great Power Comes Great Responsibility

As noted in the “What Wal-Mart Knows About Customers’ Habits,” by Constance Hays, Wal-Mart does have vast amounts of detail-rich data that can be used to create a competitively advantageous experience for customers. Utilizing its “predictive technology,” Wal-Mart can anticipate the needs and wants of customers which will enable Wal-Mart to make the necessary preparations in its stores well in advance of any particular situation (Hays).

For example, the article mentions that toaster pastries and beer are top-selling items during the hurricane season. Wal-Mart’s knowledge of this little tidbit of information allows for it to cater more specifically to customers’ needs and wants at the right places and at the right times. This ability does make Wal-Mart successful in achieving a competitive advantage because its resources and predominance enable Wal-Mart to move quickly and effectively.

Although Wal-Mart has been successful at capturing vast amounts of data that can be used to cater to the needs of customers, its possession of personally identifiable data is at odds with the issue of protecting privacy. The ability of Wal-Mart to gain access to my personal information does bother me to a certain extent.

Even though I am willing to relinquish some of my personal data in order to make purchases at stores such as Wal-Mart, I would be very uncomfortable with the idea of Wal-Mart using that data to delve into my personal life or even worse would be the thought of that data falling into the wrong hands. I would be much more comfortable if Wal-Mart expressed its responsibility and accountability both financially and legally with its possession of personally identifiable data.

As noted in the article, Wal-Mart can be using its technology to enhance its supply chain and ensure that it has neither too much nor not enough inventory (Hays). As Hays mentioned, Wal-Mart’s new approach to the supply chain will affect suppliers, but none are likely to complain. The ability of Wal-Mart to place “commands” on the economy and have such an authoritative presence in our economic structure is phenomenal and in large part due to its effective and efficient use of its technology and data.

Wal-Mart can use this power for other areas such as profiting on a social level and pouring back into its local communities. Wal-Mart can use its sophisticated technology to guide its actions such as supplying relief to victims of hurricanes or other natural disasters, responding to specific needs of certain people, victims of certain circumstances, etc. Wal-Mart possesses the information and resources to be an effective agent of social change.

Hays mentioned that Wal-Mart does not necessarily have to charge the lowest possible price for all of their items. If Wal-Mart focuses on reducing the price of specific items, then the consumer can still save a considerable amount on their cart as a whole. The profits attained from this model can be used to implement some sort of loyalty program or way of getting to know their customers on a personal level. Wal-Mart would now be able to use all of its data and technology to benefit the community and make tangible changes for social profit. In addition, this new level of trust and intimacy that would result from such socially and personally beneficial programs would definitely make me feel a lot more comfortable with handing over my personally identifiable information to Wal-Mart.

Wal-Mart’s use of technology and possession of vast amounts of data open up a world of limitless possibilities, both good and bad. If Wal-Mart can use these tools responsibly and with discernment, it stands to gain a much greater chance of creating valuable experiences for customers and developing a much deeper relationship with its customers, suppliers, and other firms/organizations that are involved with and impacted by this increasingly powerful entity known as Wal-Mart.

Tuesday, October 13, 2009

Fashionable Fitness

According to dicitionary.com, the word “creative” is defined as being characterized by originality and expressiveness, or imaginative.

An experience that I think is a good example of something creative is walking shoes that create a natural instability thereby activating your muscles as you walk. There are multiple examples of these types of shoes on the market including FitFlops, MBT’s anti-shoe, and Reebok’s new line of EasyTone walking shoes. I think of this as a very creative type of product experience because it approaches the idea of “working out” and weight loss in a completely new and different way.

As a student at The University of Texas at Austin, my schedule can quickly fill up with group project meetings, catching up with reading and studying, as well as going to class and doing other class-related activities. Although there are multiple accessible gyms on campus, it is definitely a challenge for me to fit in time for fitness and exercise. However, another key aspect of my schedule includes quite a bit of walking on campus. From my bus-stop to classes, and from one class to another, I walk at least 30 minutes Monday through Thursday. Walking shoes that allow me to exercise and tone my body without taking any extra time from my schedule definitely requires creativity and imagination.

I definitely believe that change results from a series of choices made consistently over time. These shoes allow you to do just that. MBT equates its “anti-shoe” with walking on a sandy beach which activates and strengthens the small supporting muscles which are the body's "natural shock absorbers" (us.mbt.com). MBT reports that its shoes are scientifically-proven to improve gait, reduce stress on joints and the back, and train the body even while standing (us.mbt.com).

This walking shoe phenomenon can potentially have a tremendous positive impact on its wearers in the long-run. Not only are they a practical approach to fitness and exercise, especially for those who are short on time, but also they have the ability to enhance lives and improve health. Being able to find creative ways to meet the needs and wants of consumers is a core aspect of marketing.

As mentioned in the article, “The New, Faster Face of Innovation” by Erik Brynjolfsson and Michael Schrage, companies are now able to test new ideas at incredible speeds and cheap prices. As companies identify the needs of people, they can find innovative ways to meet those needs at a low cost and short amount of time. Even the failures of these companies can be used to learn about what works and indicates the way to success.

The economic savings allowed by the use of technology and online data/feedback from customers allow companies like MBT to concentrate its resources on products that are backed by science and are appealing to customers. The risks are substantially mitigated by the relatively low cost of technological advances in research and develop and the rewards that can result are substantially heightened on a much greater scale. The advent of using the Internet to collect customer feedback and discover new insights can cover a lot more people at a much lower cost to companies worldwide.

With the new opportunities made available by technology, companies will be much better equipped to develop creative and innovative products and create great experiences for customers such as combining fashion, fitness, and function to produce an amazingly creative pair of shoes.

Saturday, September 26, 2009

Reaching Customers From The Inside Out

The primary take-away from Ariely’s chapter, The Effect of Expectations, is the fact that people are predisposed to using preexisting knowledge to temper their judgment or views. As noted in psychological terms, confirmation bias is “the seeking or interpreting of evidence in ways that are partial to existing beliefs, expectations, or a hypothesis in hand” (Nickerson).

This unique human predisposition can be used in many ways by marketers to gain insights and design valuable experiences for customers. As Ariely noted in this chapter, when consuming certain products, people use parts of their brains that go much deeper than sensory input. According to Ariely, our expectations are bound within perspectives which everyone is trapped in to some degree. Marketers can gain insights from customers and enhance their experiences by adapting their products to the lens through which their customers view the world.

If marketers can accomplish the very difficult task of stepping outside themselves as individuals and empathize with customers to the degree that they are their customers and believe what they believe, customers stand to gain a much richer and personal experience with the products and services being marketed. The possibility of customers developing a strong relationship with brands and products and creating those pleasurable experiences in their brains can be realized.

The primary example Ariely used to depict this phenomenon involved a choice between two kinds of beer. One beer was commercially brewed and the other was laced with vinegar. If customers were given a blind taste test, they seemed to choose the vinegar-laced beer. However, if they were informed of the vinegar before tasting the beers, they would choose the commercially brewed beer. This denotes that a person’s expectations about a product can profoundly affect his satisfaction regardless of sensory perception.

For example, I am in love with God, and in my heart of hearts, I desire to be in line with His Word and what the bible says about me. If I knew of a candle company that held those same views and embraced a stance of love and compassion for the world, I could get behind that company and would actually feel happy to support it even if there were physically better candles elsewhere. By the same token, if I knew of a candle company that utilized child trafficking to produce candles, I would find the candles distasteful no matter how wonderfully amazing those candles seem.

Marrying the commonly held views of certain markets to companies' products/services will help companies reshape customers’ opinions of those products/services and will create a bond between customer and company that goes well beyond said product/service. Marketers will be able to develop products that enhance customers’ lives and actually make them feel good about those products in the process. Reaching customers from the inside will yield measurable, rewarding, outward results for both parties which is supported by the empirical studies discussed in Ariely’s book, Predictably Irrational.

Tuesday, September 8, 2009

September 9th Blog #1 - Persona

A few key general facts about me are as follows: I am a 21-year-old female studying marketing and psychology and will graduate this May. I have two brothers; one of which is also in college back in Houston. My younger brother is in the eighth grade. My parents are in their 50’s and have been married for over 25 years. In my hometown of Sugar Land, TX, I live in a pretty quiet suburb.
According to an article we read in class, a customer insight is defined as “a fresh and not-yet-obvious understanding of customers that can become the basis for competitive advantage” (Sawhney). A key tenet in marketing has to do with understanding consumers on a personal level--their needs, desires, the types of decisions they make, and their day-to-day lives.
With this in mind, 10 key characteristics, behaviors, or beliefs about me that would be of potentially great value to a marketer are listed below (in no particular order):

1. I am a follower of Christ and have a personal relationship with God.
2. While I love the idea of health and fitness, I am currently not at my ideal body weight and would like to start losing some of the weight I gained in college.
3. Because I am not at my optimal weight, I am not sure what size I am and do not have much desire to shop for clothes (at least not as much as I used to in high school).
4. I am not really certain of my future right now because I am not sure if I would like to pursue law school or a full-time job with my marketing degree.
5. My one-stop-shop for entertainment is my laptop. From this, I can listen to music, watch movies and TV, and Google whatever I am curious about at any given moment.
6. I am involved in a campus ministry, Every Nation Campus Ministries, and think of the members as my spiritual family.
7. I love to draw and look at art as well as different forms, figures, and use of color.
8. If I am not studying or hanging out with friends here in Austin, I am usually back home with my family in Houston. I come from a very tight-knit family and will most likely try to find a job in Houston so I can be close to them.
9. I used to get stressed about school and life but am currently trying to just do my best and let God handle the rest. I try to sleep as early as I can to get the most amount of sleep. I also like to wake up early in the morning and spend about 30-45 minutes in prayer or meditation.
10. One of my goals this year is to minimize eating out at restaurants and on-campus, so I can save money and calories. I am also trying to develop my cooking skills.

Looking at this list from a marketer’s point of view, I suppose it would be wise to promote affordable health and fitness tips or products or perhaps focus marketing on the values of a company such as integrity and compassion. I am sure this list is just the tip of the iceberg in terms of who I am; however, I think it is a good launching point for developing a persona.