marketing week 2

recap of last week? “being smart about our audience” understanding our audience then using this understanding to connect with them

branding describes how we want our audience to feel about our product

consumer led marketing innovation led marketing products are created after careful research of what the audience already wants “giving people what they want” inventing and believing in a product using our understanding of our target audience to make it appeal to them “getting people to want something they didn’t know they wanted”

consumer led examples

innovation led examples

is music generally marketed as a consumer led, or innovation led product?

What happens when music is led? consumer (giving people what we know that they want)

music is usually innovation led we have a product which we believe is special and unique and we use our audience knowledge to find a market, and make it appeal to people

another consideration… practical emotional vs marketing

in cars convenient safe reliable spacious economical

in cars sexy stylish “attitude” fast Italian “aspirational”

some more emotional marketing messages

practical emotional vs marketing which does music come under?

if music was marketed from a practical point of view… “the CD fits perfectly in your pocket!” “come to gigs and get tanked” “want to drown out your noisy neighbours?”

music is marketed emotionally aspirational identity being in with the crowd rebellion self projection identify escape freedom transcend nostalgia romance sex

the Billy Bookcase © challenge practical emotional vsvs

exchange “what’s in it for me?” “what do I get from this product in return for my outlay?”

the fan’s outlay… buying CDs/downloads spending valuable time listening to the music paying for and attending gigs spending time on band’s MySpace emotional energy dressing like the band?

the exchange… entertainment sense of belonging sense of purpose hero/role model projection/aspiration

product pricing reflects this exchange (more about that in two weeks) pricing and how we value is something is also affected by supply demand &

supply demand & we’re prepared to pay more for something if it’s in short supply we also think more highly of the rarer things in life

$2 million why is it so expensive? does this price reflect the costs of the building materials and fittings in the house? that swanky house in City Beach

$2 million lots of people want to live in City Beach in fact, many more people than there are houses for sale this demand pushes up the price of property but some people are still willing to pay the prices asked these high prices actually have a positive effect because we start believing that City Beach is a better place to live because of the property prices and the cycle begins again

sometimes we can improve people’s perception of our product by limiting its supply “special collector’s edition – only 500 copies available” “his only Perth appearance” “Bon Jovi – see them up close at The Moon Café” deliberately

in 2001, the distillery started running out of whisky what do you think they did? raised the price of a bottle by 50% this actually raised the whisky’s profile and galvanised its reputation as a quality, luxury product Ardbeg Islay whisky

$39.99 $5 which is the better quality CD? more on pricing in two weeks