How Innovation and Changes in Modern Information Technologies are Changing Corporate Marketing Strategies, and the way Consumers Purchase their Goods

What is Traditional Corporate Marketing?

• Advertising – using TV, Newspapers, Radio, Billboards etc. to display a message about a particular product
•    Public Relations- conscious attempts by a company to be seen by society as socially beneficial or as a good product
•  Branding-  “ a mechanism for growth (Barbara E. Kahn)”, identifiers that label and help distinguish a company and its products from their competition
•   Corporate Communications- the ability for a corporation to establish action plans amongst itself. “72% of CEO’s and decision makers are tired of being asked for money without explaining how it will generate increased business, and 77% have had it with talk about brand equity that can not be linked to actual firm equity  (Lee, Harvard Business Review)”

What is Changing in Marketing?

·      

•   Customers Reliance - People no longer rely solely on marketing and advertisement for product information
•   “O- Continuum” -  Other information sources such as user reviews, expert opinions, advice from people you know on social media, etc. (Simonson, Rosen- Stanford)
•  Absolute Value -  what the product actually does and what benefits it will provide to it’s consumer is growing increasingly important, eliminating quality proxies such as brand loyalty
•  Continuous Consumer Needs Changes - Acknowledging this allows for lean research models, and flexible marketing techniques.

 Why Technology is Changing the Consumer Behavior Status Quo in the Digital Age

           

Consumers are the lifeblood of all business. If no one buys a product, it does not matter how well or cheaply the company can make it, the corporation will have no revenue and certainly no profit. Since this is the case, the means of understanding the way a customer acts is the business of all marketers.

When innovations such as the Internet, social media, smartphones, tablets and recordable cable come out,  the job of marketers becomes even more challenging. By using the Internet, consumers now have access to enormous amounts of information about almost every product available to them. Combine the tool of the Internet with the increasing functionality  of mobile devices and a recipe of instant information is created.

In the book Absolute Value, by Stanford University Professor of Marketing, Itamar Simonson, and Emanuel Rosen, the author of the national bestseller The Anatomy of Buzz, the concept of how customers are increasingly searching for products of the highest value to them is reviewed. This means that a customer with the ability to rapidly find mass quantities of reviews and forums discussing what they are interested in purchasing, is at a very real advantage. This ensures a more customer-centered experience in every way.

Customers have become a very intimate part of the marketing experience with expanding web usage and other technologies involved in e-commerce. During a segment of my interview with Dr. Mark Wellman, of the Robert H. Smith School of Business at the University of Maryland, he mentions how this process has impacted business and consumer expenditure. Through increased mass media and communication technologies such as: Facebook, Twitter, YouTube, Yelp, and widely used forum sites, the Internet and world population are more collaborative than ever before. While the consensus of consumers currently is that this type of interface is very beneficial, it was not an overnight process or one that marketing firms could easily predict.

In a study of 10,000 people, a global media company named Universal McCann did research on whether consumers were in need of a universal and convergent product. This was around the time of the first iPhone, so the topic was one of much debate.  The strange results concluded that countries such as Mexico and India were interested in such a product, while more affluent counties, such as the US,  were not as much.

As stated in the Universal McCann study, “There is no real need for a convergent product in the U.S, Germany and Japan, places where, one researcher later theorized, users would not be motivated to replace their existing digital cameras, cellphones and MP3 players with one device that did everything.”

At the time this study was conducted this may have been the case; however,   one does not need to be a researcher to understand how wildly off this statement has become in 2015 and beyond. The iPhone, as well as other smart devices which blend camera, cellphone, and an Mp3 player with much more, is now sold all over the Unites States. Estimated sales of these smart devices go well beyond the 31% of Americans who say they would have need of such a device in the study.

 This study highlights the idea that the consumer is an ever-evolving force, and that marketers must be ready to adjust their means of approaching this customer to whatever the current demand is. In today’s digital age, that approach has been focused in information technologies and targeting customers based on known patterns and searches on their favorite Internet sites.

How Marketers are Adjusting to new Innovations and the new Consumer Behavior Status Quo

          In my interview with Dr. Wellman, a specialist in business and innovation, he pointed out how the “pervasiveness of technology” was influencing the changes we see in modern marketing. The fact that mobile devices are now such an integral part of our lives, people are always connected to the Internet and social media allowing access to information at an absurdly faster pace than ever before in history. This also means that the marketing firms trying to sell their products have constant access to their consumers; and that those looking to capitalize on their own business ideas have a much faster way of spreading the word about their own projects.

            In the “Rethinking Marketing” article, by the Harvard Business Review, the authors discuss the concept of Consumer Managers. This title is to be used instead of titles like Marketing Manager and Director of Sales when describing a new age marketer.  The concept relies on the idea that in order to sell products these days, marketers need to behave more like behavioral scientists and less like brand managers.

According to the article, “We’d expect the most effective customer managers to have broad training in the social sciences—psychology, anthropology, sociology, and economics—in addition to an understanding of marketing. They’d approach the customer as behavioral scientists rather than as marketing specialists, observing and collecting information about them, interacting with and learning from them, and synthesizing and disseminating what they learned. For business schools to stay relevant in training customer managers, the curriculum needs to shift its emphasis from marketing products to cultivating customers.”

            This pulling away from formal branding to a more customer-based economy is something also cited by Barbara Kahn of Wharton in her book, “Global Brand Power: How Branding Has Changed.” She, too, acknowledges that marketers must start to make this change or the brands they have worked so hard to build will not be able to compete with those making a better, more positively reviewed product.

Why these Changes to a More Consumer Driven Economy Mean a More Positive and Productive Future

            Dr. Wellman,  an expert in innovation, has predicted that these innovations are only going to keep happening and become more disruptive each time. This gives even more leeway for hopeful entrepreneurs to become competitive in the global marketplace versus the large established brands.

            The world will benefit from this, because now instead of focusing on just how they sell a product, businesses will need to be hyper focused on what they are selling and who is purchasing the item.  This will result in a better standard of living for all, and increased opportunity for those looking to pursue such business.

Consumer Interviews:

Alfred Taubman, a controversial Real Estate Mogul

and Famous Philanthropist Dies at 91

Who is Alfred Taubman?

•        Real estate developer who launched Taubman Centers Inc., in 1950
•   The company’s primary projects where shopping centers for the growing suburban environment
•       His net worth was $3.1 Billion
•       Established and funded centers at
•     Harvard University
•    Brown University
•      University of Michigan Medical School (his alma mater)
•        Served as President of the City of Detroit’s Art Commission
•       Gained notoriety when the US Government indicted him in 2001, over an international price-fixing conspiracy with competing auction house Christie’s.
•        Served 10 Months in prison and his auction house, Sotheby’s, was fined $45million

 

CNN, A Major News Outlet, Choose to Cover Taubman’s Passing Uniquely

            CNN was the major news outlet I chose to read about Taubman’s passing.CNN is known for being relatively unbiased; but if a sway did exist, it is more left (liberal) than right (conservative). After browsing around the other articles by major media outlets, like Fox News and Yahoo Business , I realized CNN was one of the few major organizations writing a unique article about Taubman. The others had used republished work done by the Associated Press.

            In choosing this more unique work by a major news source I figured I could gain even more insight into the comparisons between this source and my other two.

            CNN chose to introduce Alfred Taubman without first acknowledging that as well as being a successful businessman he was a convicted criminal. Instead, the article’s initial focus was on the corporate effect of the tycoon’s death; acknowledging that his son Robert Taubman, is the current Chairmen, President and Chief Executive Officer of Taubman Centers Inc.

            Taubman is described as a hard-working man who started working at age 9, and was driven by the struggles of his Depression-era parents. His Jewish parents emigrated from Germany and instilled in him a strong desire to live the American dream.

            The article’s next headline, roughly two thirds through the page, addresses his Sotheby’s price-fixing scandal. The article acknowledges that he maintained his innocence and embedded a public tweet showing support for Mr. Taubman. This paragraph quickly trails off into talking about Taubman’s attention to detail.

Prayers go out to the family of Al Taubman, who died today at 91. An amazing man and true Michigan success story. #RIPMrTaubman
— Corey McIsaac (@coreymcisaac) April 18, 2015

           This significant paragraph, while not as biased in favor of Mr. Taubman as my other source from his hometown , “The Detroit Free Press”, definitely showed less attention to his crimes than to his philanthropy. This indicates a more positive approach to the writing and a more positive outlook on Mr. Taubman’s passing.

CNN was the best piece of online Journalism I read for the following reasons:

•       It was the one of the only unique pieces from a major source.
•       It was not nearly as biased as my second source the “Detroit Free Press”.
•       It was not nearly as critical or bland as my third source the “Jewish Daily Forward”.
•       It included sub headings and a good introduction.
•       It was considerably more brief and to the point than the “Detroit Free Press”.
•       It followed an informative headline with a descriptive photo of Taubman in a shopping center.

The Detroit Free Press Presents a Home Town Bias on the Death of One of Their Own

            TheDetroit Free Press chose to write an article about Taubman labeling him a retail genius, a shopping mall pioneer, and philanthropist. The article’s introduction discusses his pioneering methods of development and his road to self-made wealth. Coming from  a town where Taubman gave so much of himself, it is a pretty clear-cut case of hometown bias.

An excerpt from this portion reads:

“Taubman's impact on Detroit and Michigan was broad and deep and will be felt for generations. He made direct donations of money and gifts worth hundreds of millions of dollars to the DIA, the University of Michigan, Lawrence Technological University, the College for Creative Studies and more. (Detroit Free Press)”

           

The article continues to introduce the Governor of Michigan, Rick Snyder, speaking about Mr. Taubman, “He will be long remembered not just for his retail genius, but for the lives he touched through his kindness." This constant attention to his giving all the way up to the top level of state government shows just how impactful this man was in this location.

Much like a beloved athlete, an entrepreneur with a strong character and community presence can overcome the stain of a mistake in the town they are from.

The mention of his trouble with the law is prefaced by, “In a career full of honors and accomplishments, there was seemingly only one slip — one that proved especially painful,” a clear framing of the person’s character. Though the examination of a person’s character is crucial when considering trusting them with your money or family, in this case it wasn’t necessary to introduce his legal trouble. The act alone would not diminish his character as a whole, but framing an article to belittle a hometown hero’s criminal record is a purposely misleading and not fair.

The article, as a whole, is presented well, and if an interested reader from the Michigan area stumbled upon it, I am sure they would be very interested in its detail. As an online read it was far too long for someone who was not interested, but did make use of a slideshow and sub headlines. I would consider it the second best piece of journalism I read, and the best, for someone uniquely interested or supportive of Alfred Taubman. 

The Jewish Daily Forward Falls short on the

Presentation of a Jewish Leader and Businessman

The Jewish Daily Forward wrote the worst piece I  read about Alfred Taubman. This publisher wrote a unique piece about Alfred Taubman, and its first headline labels him a “Billionaire Snared in Sotheby’s Price-fixing scam.” This sets the scene very differently than the Detroit Free Press and CNN. The only confusion I found was that the biased seemed more demeaning of a member of their own culture rather than supportive like in Detroit. It was, however, a quick informative read if the reader was willing to ignore the visual dullness.

The list of why this article was the worst one I viewed:

·      Bland text in block format

·      Only one picture which is not informative or descriptive

·      Brief writing but information is not easy to grab in block formatting

·      Only mentioned Taubman’s business and philanthropy ventures at a basic level

·      Overall a bleak and unappealing presentation for any audience, interested or not

           

 

Startup Culture: Illustrated by a Photo and a Cartoon

 These two different elements describe the same economic phenomenon, known as startup culture. The first, a photo in the top left, appears to be a secluded startup incubator; where an entrepreneur is laying a blueprint to effective startup culture. This blue print is on a chalk board which signals the simplicity in the origins of business. The second element, a cartoon in the lower right shows the same startup culture in a different light. It displays a city and indicates that a startup is like a small home among the background of a city skyline. This displays a similar message about the size of the business entity, but also highlights the competition as being of a higher nature. The photo, doesn't have its focus on comparison, rather it looks to identify a more honest view of the startup. A startup by definition does not yet have competition, because it is pursuing a market which is either not occupied, or it doesn't currently have a place in. The photo thus seems to focus more on the actual nature of startups, while the cartoon compares that nature to the surrounding competition.

The World of Media 5 Years in our Future 

     The year is 2020 and media is increasingly available and a more prevalent part of our lives than ever before. Handheld devices and smart curved TVs with high-resolution displays are bringing the world its news, entertainment and many other forms of media content. The mobile market has been so saturated from different devices that any size device is available, and can perform every function of a laptop from 2015 with touch sensitive, and interactive screens. These devices bring content to their users in ways that allow them to quickly highlight and skim an article for information if they are in a rush, or sit down and expand their webpages to eReading specialized formats. The advertisement industry has started to realize that face time has been taken away from traditional cable newspapers, and other print and is focusing its efforts to these mobile formats. Media giants are using their increasing size and pull to start driving what people see and how they see it digitally.
These media oligopolies have started consolidating much like other industries; such as the accounting major firms and the airline market. “The communications cartel has exercised stunning influence over national legislation and government agencies, an influence whose scope and scope and power would have been considered scandalous or illegal twenty years ago, (p. 51)” said Ben H. Bagadikian. This consolidation aids the ability for one entity to exert influence over the general population, making media a hot debate in political affairs all over the world. This exposure to singular media is causing public unrest and a rejection to giants such as Google, Comcast,  and ABC. The people are more and more aware of information, but also of its slants, causing them to use the internet to start forming 3rd party localized media again. These companies have access to the same technologies as the giants, due to computing innovation and internet growth and coverage.

Question of Reference: Describe your vision of how the media world will be for most people five years from now.  Discuss how and where people would access news, entertainment, and other media content and examine what media companies may be important.

Brief Bio:
My name is John and I am from Nashua, NH. Growing up I loved playing sports like football, hockey, soccer, lacrosse and wrestling. Weightlifting has become a more serious part of my life since the end of team sports after high school. I want to be a business major in either Marketing or Finance, and eventually an entrepreneur. I think being my own boss gives me a chance to innovate and help improve the world I live in. I am taking Journalism 150 to gain a perspective on the technologies used in modern marketing, and also to improve my concise writing ability.