American Made

I found an article on nbcnews.com that I thought was interesting. It says that the baby boomers shifted their loyalty from American cars to foreign cars. Better gas mileage and reliability were the driving force behind this shift. It seems now that the millennials have reversed this shift in favor of American cars. Data shows that Japanese makers have seen their share among 18 to 24 years olds decline by 9.8 percent since 2008. It seems that looks is everything for these young buyers claiming that the American cars look cooler and are a lot more fun to drive than the foreign competition.  

Toyota created Scion, a line of vehicles marketed directly to the younger buyer. What else can foreign auto makers do to regain the young car buyer?

In response to Katie Longchamp

What are some other products that you can think of that can use an undifferentiated strategy to market their products?

The first product that comes to mind is beef. In the early 90’s the beef council ran ads with the following slogan, “Beef. It’s what’s for dinner.” Ads for travel, like the ones for Michigan, California and Jamaica and auto insurance fit into this category.  Their mass marketing effort gives them more bang for the buck.  

Is there a way that the beef council can use a different strategy?

Sheep or a Wolf

Have you ever wondered, outside of a marketing class, why you buy what you buy? There are of course needs which have to filled however much of what we spend goes way beyond needs. It could be argued, and I’m sure it has, that an IPad and a pair of Jimmy Choo’s are needs. Think about your gym membership which you visit so infrequently. Americans spend an estimated $330 billion a year on clothing. We buy for the life we want to have—cocktail dresses for parties we never go to or fancy new workout clothes for the gym we never visit. Another estimate says that we spent about $370 million last year on our pets Halloween costumes. By playing on our delusions and our fears, companies tempt us to shell out for needless items, and that can be a burden on our finances.

I have bought and will continue to buy things which go beyond what I need. I'm not suggesting that you stop buying things you want, but perhaps a little thought might be given to what you need before you buy your next bottle of vitamin water.

When you buy stuff, do you follow the crowd like a sheep, and buy what everyone else does? Yoga pants and Uggs comes to mind. Or do you defy convention and follow your own path?

 

In response to Gina's post

Reference groups are only one tool that can help you with a buying decision. For some, buying decisions require a lot of thought to analyze all the information about a particular product. Most people respect the opinions of the people they are closest to and these opinions can be a good starting point in your buying decision making process.   

Truth in advertising

I found this ad for American Eagle Outfitters. (Please watch) http://creativity-online.com/work/american-eagle-outfitters-skinny-skinny-jeans/31047 It is an ad for skinny jeans. At the end of the video there is a link to the AEO website. When you try to purchase these jeans, a pop up informs you they are out of stock and if you give them your email they will let you know when they are back in stock.  

This has probably generated a lot of traffic to their web site and perhaps even some purchases of products that are “in stock”, which is their intent. But is this type of ad fair to consumers? Does it cross any ethical or legal boundaries?

In response to Haley’s post

I used bundling or packages all the time in my business. By showing products together and how they are related to each other and selling those products at a reduced price by bundling them is a good way to provide the customer with products at a good price. Most people are looking for a “good deal” and this usually includes getting more for less. Tools are a good example of bundling.

Product Placement

Aren’t commercials enough? Do we really need to watch our favorite show, see a movie or catch the game without having all those name drops and visualizations of products? I personally don’t care if all the vehicles on TV show are Chevrolets. It doesn’t matter if someone is drinking a Coke instead of Pepsi. Is it going to influence your buying decisions if there is a Nike swoosh on your favorite, or not so favorite, college basketball team? (March madness you know)

I hope that people realize that an arrangement, usually involving money, was made so that those products can be in all those places I mentioned and that the characters on TV and in movies did not choose those products themselves.

Just one more question. Does product placement make a difference for you?