Consumer Behavior


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a presentation that discusses changing consumer consumption behaviors and business implications

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Consumer Behavior

  1. 1. changing consumer behaviors and marketing implications vince santo 16 april 2009
  2. 2. vince santo • 25 years of diverse experience in the consulting services & technology space: – Management Consulting – Brand Strategy – Web Agency – Innovation & Design – Systems Integration – Global Outsourcing • entrepreneur, distance runner & mountain climber
  3. 3. discussion topics • mega trends • changing consumer behaviors and marketing implications • two brands doing an excellent job of experimentation & innovation • future directions • key challenges going forward • recommended readings
  4. 4. quick consumer behavior survey how many people own these products / services? how many people use these social networking sites? when was the last time that you visited one of these stores?
  5. 5. mega trends • consumers engage brands when, where and how they want to -- time / place shifting • consumers have become more tech savvy and socially conscious • we expect immersive brand experiences in personal & professional brand interactions • consumers have grown accustomed to free digital assets • consumers have integrated social networks into their daily lives • content producers can establish a digital franchise w/o using big marketers / distributors • brands have integrated social networking into their products / services • in many instances the experience has become the product / service
  6. 6. in the good old days • push model - one way flow of information from brand to consumer • brands controlled the message and conversation • targeted homogeneous demographics, psychographics market segments • fewer / less complex touch points TV, Print Newspapers and Magazines, Radio and Retail
  7. 7. “Mad Men” era is over • “big hit” series attracted large audiences • the 30 second ad spot was king • agencies generated “big ideas” for TV ad campaigns (Apple 1984 Ad) • nielsen ratings as primary source of ad effectiveness and measurement Chiat/Day 1984
  8. 8. changing consumption habits & industry responses • consumers are in control • TiVo / DVR technology for commercial skipping • VOD, internetTV enables popular and long-tail content anytime and anyplace • TV respond with branded web sites free content • cable experimenting with subscription-based content model tv everywhere / fancast • cable companies experimenting with interactiveTV and social net based set top box applications • branded entertainment as alternative immersive brand experience and identification • digital web and cable microtargeting vs homogeneous segmentation
  9. 9. newspaper, magazines & radio…the good old days • newspapers / magazines storytelling -- paid subscriptions, advertising and classified revenue models • radio hit songs, news, shock jocks -- ads based on delivering audience segments
  10. 10. changing consumption habits & industry responses • information “snacking” free -- blogs, podcasts, e-zines, online news, print, etc. • news as commodity…news-analysis and POV, compelling experience based differentiation • advertising / classified dollars rapidly shifting online…Craigslist as newspaper killer? • Kindle reader pioneering new space…USA Today, FT & Newsweek…is this the future? • XM Satellite / Sirius and iTunes -- genre-specific ad-free music anytime, anyplace…radio killer? • Pandora - personalized internet radio, social network-based music sharing free • DRM-free / sharable music available on iTunes • musicians direct to consumers via services like bandzoogle
  11. 11. changing shopping habits & industry responses To From – b&m retail stores and catalogs… – stores as showrooms to check-out products live…buy online – “trusted” sources evaluate & influence purchase decisions – e-tailers like Amazon, Wal Mart, eBay auctions, Craigslist – e.g., travel agency as value-add one-stop-shop – comparative shopping engines like shopzilla, priceline – iPhone comparison shopping – e.g., travel agency commodity…
  12. 12. two innovative brands doing it right
  13. 13. how does nike differentiate itself in a crowded market?
  14. 14. immersive cross-platform runners experience nike & iPod tv & print ads sports kit follow nike brand on facebook co-branded running system Niketown retail follow nike brand on twitter sponsored events runners social networking community
  15. 15. immersive cross-platform runners experience
  16. 16. how does cnn differentiate in a commoditized information market?
  17. 17. immersive cross-platform information experience cnn interactive tv cnn use of perceptive pixel during election cnn mobile breaking news alerts cnn print ad cnn facebook live streaming of inauguration cnn cable broadcast
  18. 18. future directions
  19. 19. convergence ? smart phones
  20. 20. other trends • skype on smart phones • mobile location-based ads and applications…proximity marketing • Kindle and iPhone up-scale…future newspaper / magazines / / classified • ambient awareness -- Twitter tweets, Facebook News Feeds, LinkedIn Net Updates • google android as ubiquitous platform OS…closed-loop microtargeting + measurement Skype to Launch iPhone Software Apple bows to AT&T ambient awareness T-Mobile Blocks iPhone Skype Over 3G and WiFi
  21. 21. on the horizon • ubiquitous computing “ubicomp” -- smart homes / offices / grids, etc. • wearable technology • sustainable, green movement • global emerging markets… Wireless Firms Eye 'Smart Grids' Cellphone Carriers Cut Prices in Aggressive Push for Deals With Utilities EBay Clears Gmarket Acquisition With Antitrust Authorities
  22. 22. challenges ahead marketing strategists ”how do we”: • build loyalty / trusted brand in a media-fragmented / consumer-ADD market ? • create on-brand, cross-platform, immersive brand experiences? • differentiate when products / services are rapidly commoditized? • monetize products / services when consumers are used to free? • keep up with the rate of change!
  23. 23. interesting reading
  24. 24. more interesting reading interactive tv today