“The Overspent American: Why We Want What We Don’t Need” was a very interesting video about spending and the idea of the new consumerism. There is a cycle of work and spend which consists of high productivity growth leading to higher income and more spending. People began working more and more over the decades to buy the things that they want and need. It is believed that the American dream has expanded as we move into further decades and more is expected of Americans. We used to think of the American dream as a small house with a white picket fence, a dog and a cat, two children, a car, and maybe a garage. Now it is said that everything has doubled and people want more.
The idea of the new consumerism is that people want to mirror the image of a six-figure income when in reality that is not possible for them. The three factors that led to this idea are: 1. Women began to move out of their neighbors and into workplace for more exposure to reference groups. 2. Income distribution moved to more inequality throughout the decades making the rich richer. 3. The role of the media played a role because they were always bias toward showing upscale consumption through high levels of advertising. We also think of competitive consumption because we want the same or more of what other people have.
Products were branded with “the name” on everything in the 1970’s which ranged from water to coffee to t-shirts. The well educated consumers were willing to pay for status premium. Private consumption began crowding out public good while leading to a diminished social health. Consumerism is taking place of human interaction. Since so many parents are working more and not spending as much time with their children, they are buying more and more for them. Basically, they are “buying their love” because they are not there and want to be good parents.
I agree and disagree with this video to some extent. I know this video is focusing on the middle and upper social classes, but we have the CHOICE to spend. Just because these advertisements are thrown into our faces doesn’t mean we have to go out and buy the products. They are not forcing us and making us go out and spend money. People are trying to be like everyone else when they can’t afford to have as nice of things. If you don’t have to money to pay for something you want, then you don’t need it. I understand that many needs such as the electricity, phone, food, and gas have all gone up and to some extent people do need to work more. However, our basic necessities are still here and will always be here. The things we want are expanding because of technology and innovations which look more appealing to us. I know some people who have a very high income and they are in debt because they think they can afford things when they really can’t. These people go on long vacations around the world and come home and brag about going there when the whole vacation is charged on their credit card. This is frustrating because it is their problem and not the idea of the new consumerism.
Do you agree or disagree? Do you think that overspending is caused by the people or media? Do you think that the American dream has expanded? Are you affected by the new consumerism?
3/26/2010
3/13/2010
John Smith Response
This is in response to Bruce Wichland’s post:
What do you think? Should he sell of the names for his workers? Is it ethical?
Selling the names of the people he surveyed without telling them would definitely be unethical. I agree with you on the fact that he provided privacy to all of the information that was given up by the surveyors, and if he takes the action and sells the names he would make many people angry. Then as you mentioned he would have to take responsibility which could be difficult even though they all know he was the one to make that decision. These are all mentioned in the AMA Standard of Ethics and all marketers should use these values. Also as you said he could call up all 2,000 of the surveyors and ask them permission for him to sell their names. This would be ethical, but would take up too much time. I would say that he should do this because he would be harming less people. If he had more employees than surveyors then I might consider something else. Do you agree with this?
What do you think? Should he sell of the names for his workers? Is it ethical?
Selling the names of the people he surveyed without telling them would definitely be unethical. I agree with you on the fact that he provided privacy to all of the information that was given up by the surveyors, and if he takes the action and sells the names he would make many people angry. Then as you mentioned he would have to take responsibility which could be difficult even though they all know he was the one to make that decision. These are all mentioned in the AMA Standard of Ethics and all marketers should use these values. Also as you said he could call up all 2,000 of the surveyors and ask them permission for him to sell their names. This would be ethical, but would take up too much time. I would say that he should do this because he would be harming less people. If he had more employees than surveyors then I might consider something else. Do you agree with this?
3/08/2010
John Smith's Situation
Even though John Smith is in need of $8,000, he should not sell the names to the car dealer. This would be very unethical and would not follow the AMA Statement of Ethics. As stated in this document, marketers need to exhibit honesty, responsibility, fairness, trust, respect, transparency, and citizenship. If John were to sell the names, those $2,000 people would definitely lose trust in his marketing research firm because they were not truthful in what they did by not telling the people he was selling their names. John’s firm has to be honest in every situation that arises. If he desperately needs the money then he could call all of the $2,000 people and ask them if this would be okay to sell their names. However, this would be so time-consuming and may cost some extra money, but it would be more ethical than just selling the names. If the firm were to sell the names, John would have to take full responsibility for his actions. I feel as if this would be hard to do because most of those people would be furious to know that their names were sold. They would then most likely call the firm and want an explanation and I think this would be hard for John to do. He will be harming the people he surveyed along with his own firm. So John needs to find another way to obtain money because this situation is just too unethical for him to go about doing. Do you feel as if John should take the risk and sell the names?
3/06/2010
Good and Bad Store Images
This is in response to Jenna Hobert’s post:
What stores can you think of that have a good/bad store image? Have you ever not shopped at store because of what it looked like?
I work at L.A. Burdick Chocolate in Walpole, NH and the owner always tells us to make sure we check outside on the sidewalk for any trash or things on the tables. He believes that if it looks messy outdoors then they may not want to come inside because they may think that there is a similar atmosphere when walking through the doors. He also wants us to follow the same steps inside as well because the customers want to feel welcomed and comfortable during their experience there. So Burdick Chocolate is one store/restaurant that has a good image.
I have definitely been in some stores with bad images and I usually walk in then walk right out because it doesn’t appeal to me. For example, a few months ago I went into F.Y.E, the music store in Keene right beside Applebees. I saw that the store was closing so I went over there and it was a horrible experience. When I walked inside it was unorganized, smelled like cigarettes, and had unfriendly employees. I know that the store was closing and I kind of thought well no wonder it’s closing because of the atmosphere. You can’t always judge a book by its cover, but if you want to attract customers you need to have a good location and it needs to be presentable on the outside.
Would you shop in a store that was trashed on the outside of the building?
What stores can you think of that have a good/bad store image? Have you ever not shopped at store because of what it looked like?
I work at L.A. Burdick Chocolate in Walpole, NH and the owner always tells us to make sure we check outside on the sidewalk for any trash or things on the tables. He believes that if it looks messy outdoors then they may not want to come inside because they may think that there is a similar atmosphere when walking through the doors. He also wants us to follow the same steps inside as well because the customers want to feel welcomed and comfortable during their experience there. So Burdick Chocolate is one store/restaurant that has a good image.
I have definitely been in some stores with bad images and I usually walk in then walk right out because it doesn’t appeal to me. For example, a few months ago I went into F.Y.E, the music store in Keene right beside Applebees. I saw that the store was closing so I went over there and it was a horrible experience. When I walked inside it was unorganized, smelled like cigarettes, and had unfriendly employees. I know that the store was closing and I kind of thought well no wonder it’s closing because of the atmosphere. You can’t always judge a book by its cover, but if you want to attract customers you need to have a good location and it needs to be presentable on the outside.
Would you shop in a store that was trashed on the outside of the building?
Target-Market Selection Process
As discussed in class, there are five steps in the target-market process: Step 1- Identify the Appropriate Targeting Strategy; Step 2- Determine Which Segmentation Variables to Use; Step 3- Develop Market Segment Profiles; Step 4- Evaluate Relevant Market Segments; and Step 5- Select Specific Target Markets.
I enjoyed learning about Step 2: Determine Which Segmentation Variables to Use and found it very interesting. First of all, segmentation variables are characteristics of individuals, groups, or organizations used to divide a market into segments. Markets are segmented in ways that may help build relationships with their targeted customers. There are many segmentation variables that a marketer can choose when using segmentation when reaching a consumer market. These include demographic, geographic, psychographic, and behavioristic. I found this very interesting because there are just so many variables and ways that a marketer can go about when segmenting which can be fun too.
I feel like the most popular variables that are used are the demographic variables which consist of age, gender, race, ethnicity, income, education, occupation, family size, family life cycle, religion, and social class. Age is definitely an important factor because many products are aimed for children, teens, young adults, adults, and seniors. For example, clothing stores such as Gap Kids located in the mall targets children because those clothes are specifically made for all children. Gender is another significant variable used when segmenting. An example of this would be deodorants, razors, body wash, and clothing which are marketed specifically to men or women. The income variable plays a role when reaching out to the consumer. This would include stores that would suit the lower, middle, and upper classes. For example, the Dollar Store would attract mainly the lower class while the Brand Coach would attract the upper class consumers because the products are so expensive. Overall, more marketers use demographic variables more than any of the other variables.
Which segmenting variable do you think marketers use the most?
I enjoyed learning about Step 2: Determine Which Segmentation Variables to Use and found it very interesting. First of all, segmentation variables are characteristics of individuals, groups, or organizations used to divide a market into segments. Markets are segmented in ways that may help build relationships with their targeted customers. There are many segmentation variables that a marketer can choose when using segmentation when reaching a consumer market. These include demographic, geographic, psychographic, and behavioristic. I found this very interesting because there are just so many variables and ways that a marketer can go about when segmenting which can be fun too.
I feel like the most popular variables that are used are the demographic variables which consist of age, gender, race, ethnicity, income, education, occupation, family size, family life cycle, religion, and social class. Age is definitely an important factor because many products are aimed for children, teens, young adults, adults, and seniors. For example, clothing stores such as Gap Kids located in the mall targets children because those clothes are specifically made for all children. Gender is another significant variable used when segmenting. An example of this would be deodorants, razors, body wash, and clothing which are marketed specifically to men or women. The income variable plays a role when reaching out to the consumer. This would include stores that would suit the lower, middle, and upper classes. For example, the Dollar Store would attract mainly the lower class while the Brand Coach would attract the upper class consumers because the products are so expensive. Overall, more marketers use demographic variables more than any of the other variables.
Which segmenting variable do you think marketers use the most?
2/23/2010
Response to Facebook Blog
This is in response to Dillan Pierce’s post:
Do you think that Facebook is a real fair or accurate thing to measure an applicant by?
I think that Facebook is fair, accurate, and a better form of a background check to measure an applicant by. A background check includes professional, financial, criminal, and public history. By viewing Facebook, I feel that a company can see who a person truly is. For instance, people who are on Facebook can express their interests, activities, pictures, and videos to the world. There is nothing better than knowing what a person is all about when hiring. However, if a person doesn’t want their information expressed then they don’t have to post any information. I was a high school cheerleading coach last year, and most of the cheerleaders added me as a friend on Facebook so I was very careful with what pictures I posted on my page. I made sure I didn’t post any pictures with alcohol visible because I was supposed to be a role model for the girls and that may have persuaded them to go out and drink. Also they could have gone to my boss and mentioned things that I had on my page even though it was my personal life.
Do you feel that Facebook could be a positive background check for a company?
Do you think that Facebook is a real fair or accurate thing to measure an applicant by?
I think that Facebook is fair, accurate, and a better form of a background check to measure an applicant by. A background check includes professional, financial, criminal, and public history. By viewing Facebook, I feel that a company can see who a person truly is. For instance, people who are on Facebook can express their interests, activities, pictures, and videos to the world. There is nothing better than knowing what a person is all about when hiring. However, if a person doesn’t want their information expressed then they don’t have to post any information. I was a high school cheerleading coach last year, and most of the cheerleaders added me as a friend on Facebook so I was very careful with what pictures I posted on my page. I made sure I didn’t post any pictures with alcohol visible because I was supposed to be a role model for the girls and that may have persuaded them to go out and drink. Also they could have gone to my boss and mentioned things that I had on my page even though it was my personal life.
Do you feel that Facebook could be a positive background check for a company?
Direct Mail vs. E-Marketing
What are some of the benefits of direct mail compared to electronic means of marketing?
Direct mail definitely has some benefits compared to electronic means of marketing. People look through their direct mail everyday whereas people don’t always check their email everyday. Also people can just delete emails that were sent to them if the title doesn’t appeal to them. With direct mail, people actually will most likely look over all of their mail before throwing it in the trash. As stated in the article, companies take the time to personally sign letters. Customers like to see that companies care about them which in turn lead to the response of the customers. E-marketing is less personal because emails are sent to everyone with lots of information that doesn’t really pertain to them and doesn’t focus on a certain group of individuals. In addition, direct mail is obviously a benefit when the sales of some companies had dropped up to 25% and customers were calling and asking if they were taken off of their list.
Bar codes (addressed in one article) seem so promising, but what are some of the possible concerns with their use?
Bar codes are very interesting to me and it’s kind of cool how technology has advanced so much. My friend just bought a new phone which has a bar code scanner on it and we were trying to scan a random bar code and it didn’t work because of the lighting. So her phone needs some adjustments or else she will forget about it and not use the scanner. Another issue might be which magazines the bar codes are in. Companies should do research to see what magazines are the most popular so that more people will see the bar codes.
Do you think e-marketing techniques will replace traditional forms of marketing (direct mail, phone calls, newspaper ads and promotions)?
E-marketing techniques will not replace traditional forms of marketing. First of all, not everyone owns a computer and many people do not know how to use computers. People in my family never grew up with computers so they don’t have experience with them and don’t have the desire to own one. Also there are many people who can’t afford computers and receive the same information for free through direct mail. Direct mail is so much more significant because everyone checks their mailboxes for bills and letters. Therefore, companies should take advantage of this and send out flashy postcards to catch their customers’ attention.
Besides the types of business and examples that are mentioned in the article, what are some other companies who would benefit from direct mail efforts? How would they benefit?
I think that smaller businesses benefit more from direct mail efforts than larger companies. For example, my mom works for a dentist office and sends out reminder cards for their patients telling them when their appointment is. She also calls the day before reminding them the time of the appointment. This has worked very well because the patients usually hang their cards on their fridges so they will remember. Also the patients can save their voicemails or speak to my mom in person the day before. If my mom sent emails people, they would most likely forget to read the emails or delete them. So direct mail is definitely a benefit for small service companies.
Do you think that direct mail will be replaced with e-marketing? If not, what do you think the benefits are of direct mail?
Direct mail definitely has some benefits compared to electronic means of marketing. People look through their direct mail everyday whereas people don’t always check their email everyday. Also people can just delete emails that were sent to them if the title doesn’t appeal to them. With direct mail, people actually will most likely look over all of their mail before throwing it in the trash. As stated in the article, companies take the time to personally sign letters. Customers like to see that companies care about them which in turn lead to the response of the customers. E-marketing is less personal because emails are sent to everyone with lots of information that doesn’t really pertain to them and doesn’t focus on a certain group of individuals. In addition, direct mail is obviously a benefit when the sales of some companies had dropped up to 25% and customers were calling and asking if they were taken off of their list.
Bar codes (addressed in one article) seem so promising, but what are some of the possible concerns with their use?
Bar codes are very interesting to me and it’s kind of cool how technology has advanced so much. My friend just bought a new phone which has a bar code scanner on it and we were trying to scan a random bar code and it didn’t work because of the lighting. So her phone needs some adjustments or else she will forget about it and not use the scanner. Another issue might be which magazines the bar codes are in. Companies should do research to see what magazines are the most popular so that more people will see the bar codes.
Do you think e-marketing techniques will replace traditional forms of marketing (direct mail, phone calls, newspaper ads and promotions)?
E-marketing techniques will not replace traditional forms of marketing. First of all, not everyone owns a computer and many people do not know how to use computers. People in my family never grew up with computers so they don’t have experience with them and don’t have the desire to own one. Also there are many people who can’t afford computers and receive the same information for free through direct mail. Direct mail is so much more significant because everyone checks their mailboxes for bills and letters. Therefore, companies should take advantage of this and send out flashy postcards to catch their customers’ attention.
Besides the types of business and examples that are mentioned in the article, what are some other companies who would benefit from direct mail efforts? How would they benefit?
I think that smaller businesses benefit more from direct mail efforts than larger companies. For example, my mom works for a dentist office and sends out reminder cards for their patients telling them when their appointment is. She also calls the day before reminding them the time of the appointment. This has worked very well because the patients usually hang their cards on their fridges so they will remember. Also the patients can save their voicemails or speak to my mom in person the day before. If my mom sent emails people, they would most likely forget to read the emails or delete them. So direct mail is definitely a benefit for small service companies.
Do you think that direct mail will be replaced with e-marketing? If not, what do you think the benefits are of direct mail?
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