Week 6

This week, we further discussed market segments, products, and business models. 

B to B
The process of purchasing a product B to B(Business to Business) is much more complicated than the B to C(Business to Consumer) process.  Let's take Phone Soap for example.  Say a nurse notices how unsanitary the waiting room and surrounding areas are.  Maybe she watched a Dr. Oz where she became informed that our cell phones are eighteen times dirtier than the average public bathroom. She may express the need to buy Phone Soap(that she may have seen an info martial or advertisement for), to the Doctor, who may then tell an administration board about their need. The board then goes to the hospital's purchasing agent, who may do research or conduct a survey before going to Accounting to see what their budget is. Then the Purchasing Agent can, if approved by Accounting, buy a certain quantity of Phone Soap for their hospital.  This process is extremely extensive, as it must be run by several people before a final decision is made, which can be very time consuming. This process would be considered a New Buy, as it is the first time they are purchasing this product.  This product could be considered a Modified Rebuy, if say, next year the same hospital buys more of the same product for their new facility.



B to C

The Business to Consumer process is much simpler.  For example, you go into Staples to buy ink for your printer so you can print your assignment. Since you always purchase ink from Staples, you walk into the store, go to the left, walk down the third aisle and find your ink.  As you are walking to the check out, you see an end cap with a new product you have never seen before.  Because it looks new and interesting, you pick it up and look at it.  If you believe Phone Soap has value, you buy it; if you do not, then you probably will not.  Maybe you are a mother of several small children and want to sanitize your phone more often, in a way that won't damage it.  So, you pick up the product, walk to the cashier, and check out.  Much simpler than the B to B process.

A Good Market Segment is...                               

1. Substantial

Is there enough people that would buy this product? Is this market segment too specific? Is it a niche product? Does it follow the Margin Business Model or the Volume Business Model?  Within the Volume Business Model, the market segment contains a lot of people who will buy the product, but will not spend a significant amount of money for it. On the other hand, within Margin Business Model, the market segment is small, but those in it are willing to spend a lot of money for a product.

2. Identifiable

Can you identify who is in this market segment? What are their characteristics? Stereotypes?

3. Measureable

Can the segment be measured?

4. Accessible

Where will they buy the product? On-line? In stores? Do they have access to the product?

5. Responsive

Will they respond to the product? How will they respond? Does this product create value for them, as to where they will purchase it? Does it address their needs?

SMART PROJECT: OK To Drive?

OK To Drive, our breathalyzer controlled lockers, would be mostly a B to B product.  Our product is intended for bars, restaurants, and law enforcement agencies, rather than consumers.  Although since we had the idea of having them available to be rented out for house parties, they could be considered a B to C product as well.  Our group has developed our final logo, and is working on developing our final concept design.  We are planning on meeting with our Marketing Consultant on Monday night, for further marketing advice.

Week 5

On Tuesday this past week, we continued our discussion of segmentation and market segments through the use of our Bambooee advertisements. We each quickly presented our advertisement, the unique characteristics of our market segments, as well as the tactics we used to try to get our segment to by the product.  Some students kept their ad simple for the older-country folk, while some jazzed theirs up with pictures of the party scene for more upscale younger people.  Their age, geographic location, income, lifecycle stage, and interests all played a part in how we each ultimately marketed the product to them.  Many of these characteristics we looked at in class seemed to be stereotypes, which more often than not, is given  a bad connotation.  However, it is important for marketers to stereotype in order for them to reach their market.  In turn, these consumers are more likely to purchase their product. I believe that this process will really help my SMART Project Group, OK To Drive?, in trying to reach our target audience. 

This Thursday, we had a joint class with the engineering students to discuss, present, and review our concept memos. We started class by setting up our whiteboards by writing our revised and more in-depth POV Statement and arranging our three computer generated concepts, as well as our logo on the board.  Our updated POV Statement is as follows: Bars, restaurants, and law enforcement agencies need lockers activated by breathalyzers because people are too tempted to drink and drive when they have access to their vehicles.  This could prevent crime, injuries, death, and civil or criminal lawsuits by prohibiting the act of driving while intoxicated. We narrowed down our target customers from "society" to "bars, restaurants, and law enforcement agencies".  We believe that these will be our primary consumers.

Next, each group presented our concepts to the rest of the class for about three minutes.  A few questions were asked, and this process was helpful as I know better understand each group's take on their product little bit better.  Each time we present I am able to delve deeper into each group's product. After this process we were able to circulate throughout the room and do a Gallery Walk for each group's concept.  We used sticky notes to leave comments, questions, and criticism on each board.  We questioned if the product would actually fix the specific bug being tackled, pointed out our preferred logo design, and discussed which concept solution was our favorite.

At the end of class, we reviewed the comments that were left on our board by our classmates.  We were able to do our best to answer their questions about our product, as well as clear up some questions based on misunderstandings because of communication problems.  During this process, it was nice to get a point of view different from a voice within our groups.  One group pointed out that our logo was too confrontational, and that there was too much happening with it.  This, for example, I, along with the rest of my group, was unclear of.  This group then gave us the idea of using a car key as the logo, which we will look into at our next meeting on Monday.  Other students opinions are very valuable in this case, as our classmates often point out small issues or positive ideas that can be addressed or added to our product to make it more appealing to the consumer. 

Week 4

On Tuesday this week, we watched a Shark Tank pitch about a product called Bambooee. Bambooee is an alternative to using disposable paper towels.  Bambooee is innovative in that each sheet is reusable.  These sheets can be thrown in the washer to be used again, and they even get softer with every wash! Their company is also in the process of creating a cosmetic line, as well as toilet paper(these would not be reusable, of course!).  This product does not rip nearly as easy as a paper towel does, and is also environmentally friendly.  For every roll of Bambooee purchased, a tree will be planted.  Because of all of this though, the product is much more expensive than your run-of-the-mill paper towels; each roll costs between $12.99 and $15.99.  I, personally, would not purchase this product.  Although they are reusable, so are normal towels.  I would much rather buy cheaper towels than Bambooee, even though they are more environmentally sound(only, in that they plant a tree with every purchase). 

With this in mind, we applied Bambooee to what we have been learning about segmentation. Market segmentation is the process of dividing a market into meaningful, relatively similar, and identifiable segments or group.  These subgroups share characteristics that cause them to have similar product needs or desires.  In class, each of us picked a market segment to market Bambooee to. We used an online interactive tool that let us examine segment groups based on demographics and behaviors. Each and every person in the country is to fit into one of these segments. From the hat, I picked "58 Golden Ponds".  This segment includes downscale, older folks.  Theses singles and couples above the age of 50 live in retirement lifestyle in small towns across the country.  They make less than $30,000 a year, and pass the time with leisurely and sedentary activities, such as crafts and gardening.  They stereotypically shop at K-Mart, drive a Buick, and go to bingo each Thursday night. 

At first  I was unsure of what to put on my advertisement(to theoretically be placed in a magazine or newspaper of some sort).  How could I get this segment to by Bambooee, especially with the high price?  I thought of my grandmother; she fits into this segment perfectly.  In order to get her to buy this, I would tell her about the environmental benefits and how planting a tree would help not only the world, but her grandchildren.  She would like that. On the ad, I wrote, "For every roll of paper towels you purchase, a tree is planted.  For a better world for your grandchildren, and for the world!". I consulted the "Color Emotion Guide" and decided to use the color green for my ad(not only because the product itself is "green" and eco-friendly).  Green represents peacefulness, growth, and health- perfect for both my market segment and for the product! Because men prefer bright colors and women prefer softer colors, I decided to include both, to satisfy both sexes preferences. I also used a visual representation to show how many towels they would be saving by using Bambooee.

I was also able to check to see if my segment was located in Springfield, and my hometown, as well as a couple of places across the country I have visited.  It was in none of them, which is important to realize while marketing your product.  If this segment is not in the place you are selling the product, is it worth it? Otherwise, who in the area will buy your product? There are a lot of questions to think about.

Going through each aspect of this advertisement helped me to realize what I needed to do for my SMART Project.  It is important to use the right colors for our logo, to appeal to our target market.  Also, it is important to know where are target market lives, and if they would even use it.  Doing this research prior to marketing and selling the product is crucial.

Week 3

This week in class, we discussed the Consumer Decision Making Processes in Chapter 6.
Every product or service that you buy can be placed into each cell of the matrix which includes Limited Decision Making, Extnsive Decision making, Routine Response Behavior(Inertia), and Brand Loyal(Habit).



Limited Decision Making


This shampoo is an example of a Limited Decision Making product.  I usually buy this product, as well as their conditioner, but I do not all of the time.  I enjoy the product, but if there is an alternative quality shampoo that is less expensive at the same store, I will opt out.  Likewise, I will not travel to a different store to buy this shampoo if it is not available at the store I am at.  Although I buy it most of the time, it is not a Routine Response Behavior product.



Extensive Decision Making

When making an important, unfamiliar, or expensive purchase, the Extensive Decision Making Process is usually used. To make the right decison, consumers want to know everything they can about the product or service. When I bought the laptop I am typing on right now, I searched both online and in store, consulted friends and family, compared prices, and looked at reviews to get the best product I could with the money I had. I checked multiple brands, and then reviewed all of the criteria before making a decision.



Routine Response Behavior(Inertia)
These are brands that we are accustomed to and enjoy, so as the customer, we return back and buy their products habitually. I searched around until I found  the jeans that fit me perfectly and were comfortable.  When I found the right pair of American Eagle Jeans, I was satisfied and I continue to buy them.  Even though, they are a little more expenive than other brands, the product is worth it.


Habitual Buying

This is a rather quick process. Consumers buy these products and then evauate later.  An example for me would be toothpaste.  I am not particular baout my toothpaste, and most toothpastes taste the same and do about the same thing; I can rarely tell a difference between each brand, whether it be Crest, Colgate, or Oral B. Because of this, I spend little time on searching and decision making before purchasing the product.


SMART PROJECT
My group(OK TO DRIVE?) had its first meeting last Sunday, where all five of us were able to sit down togther for about an hour or so to discuss our product and create a memo.  We solidifed our POV Statement, made a list of conrstraints and goals, and then did a Gallery Walk in class to ask questions and share ideas.  Our group brainstormed ideas of how to address the problems that our classmates brought up about our product. At our next meeting, we will further solidify our brand.