Posts Tagged ‘iPhone’

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POWERSHIFT MARKETING THIS WEEK #5

February 25, 2019

THIS WEEK #5 (FEB 25-MAR 3) – This week, I am departing a bit and focusing on one theme: Embracing change. As a marketing coach, I see businesses simply not engaging in the research and planning needed to be relevant in the future. I thought I would pull a few headlines from the news to show that no industry can avoid dealing with change.

CHANGE BRINGS TOURISM UNDER ATTACK

Many Destination Marketing Organizations (DMOs) are run by chambers under a city or county contract. Today, many of these relationships are facing dramatic challenges to their very existence because DMOs have not invested in the independent research needed to reassure constantly changing and skeptical elected officials that public money is being spent wisely.

The Roseburg Area Chamber and Visitor Center is in this fight right now. The city council refused to renew a three-decade agreement because, as the Council President stated, “We just don’t know if they are doing a good job or not.” Back in 2012, we were fortunate to be hired by Roseburg to do an independent study that proved that the Chamber was doing an outstanding job. Their contract was renewed. Not sure why they didn’t update this study for this contract round. We are still waiting to hear from Roseburg.

Here’s the flip side to this story. Tillamook County hired us to establish a baseline study five years ago before they launched their marketing effort. They have continued to update this study constantly. The result? New and old officials continue to be confident that public money is being invested wisely because they have an independent analysis. Bottom line: If you are a DMO you can’t afford not to have an independent, professional research program in these changing times. Don’t delay, call us now. Can you justify your existence to constantly changing public officials?

BEING FIRST IS UNIMPORTANT

Just because you’re an industry pioneer, it doesn’t guarantee longevity for your business. Your market is constantly changing. This became painfully clear when Bridgeport Brewing announced that its 35-year run was ending, a casualty of poor sales in a crowded craft beer market. When founded in 1984, America had fewer than 100 craft breweries, now there are 7,000 (and counting). I saw this market change first hand when I was on the marketing team that launched Southern Oregon Brewing. It also closed after a short run for similar reason, hard to get statewide distribution in a crowded market. Remember, in a changing world, if you are only maintaining the status quo, you are falling behind.

HAVING A GREAT PRODUCT IS UNIMPORTANT

Wall St. Journal Reporter Ben Walsh reports that everyone is trying to build electric vehicles—including General Motors and Ford. Walsh stated that one of the biggest pressures that Tesla faces over the next couple of years is the advent of new, fully electric vehicles (EVs) produced by established luxury-car makers such as Jaguar, Mercedes, Audi and Porsche. Yes, Tesla has a great product. But if you can’t meet demand, at competitive prices (which are constantly dropping), who cares? A great product or service won’t protect you from a changing world.

STAYING RELEVANT IS IMPORTANT

Virtually everyone in America has a cell phone, which makes smartphones a non-growth market. If you led the smartphone revolution like iPhone (June 29, 2007), what do you do in a mature market? You must embrace change. That is why Apple recently announced that they are reordering priorities and leadership across services. Several projects have been put on hold while new managers are given a chance to reassess priorities. This shift reflects Apple’s efforts to transition from an iPhone-driven company into one where growth flows from services and potentially transformative technologies. Are you prepared to leave your cash cow product or service behind and embrace a new one?

Until next week, thanks for reading. As always, contact me if you have any questions or topics you would like me to cover.

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LIFE AFTER BABY BOOMERS

January 16, 2013

Baby boomers, people born between 1946 and 1964, still have most of the disposable income in this economy. In fact, they have weathered the great recession far better than younger consumers and they will continue to be a driving consumer force for another decade. But as I mentioned in my last post about late night TV, savvy businesses are realizing that consumers in their 20s, 30s and early 40s rival the size of the baby boomer generation. These consumers are now looking for less expensive products that they “perceive” as having real brand value (i.e. they admire the brand and want to be able to afford it).

That’s one reason Apple is working on a less expensive iPhone. They want to use their brand leadership to capture younger cell phone users from Android, Google and Microsoft. They are not alone. BMW just unveiled a new 3 Series sedan with a starting price about $4,000 less than its current least-expensive $37,000 3 Series. Mercedes-Benz’s new 4-cylinder sedan could be priced below $30,000. And Audi is also working on a 2014 version of its A3 compact with a price in the mid- to high $20,000 range.

If your core consumer is the baby boomer, you need to continue to market to them. But you also need to be asking yourself what are you doing to make sure your product or service appeals to consumers in their 20s, 30s and early 40s? It will probably take a different product and pricing strategy.