VIDEOS :

MARKETING
MANAGEMENT
GSEM – deuxième année

Romain Aellen
Table des matières
Week 1 : slide 7 – the real reason we buy diamonds ................................................................... 3
Week 1 : slide 26 – mad men 11 lucky strike ............................................................................... 4
!! Week 1 : slide 49 - Understanding Your Needs | The Lengths We Go To | Singapore Airlines ... 6
Week 1 : Dig Deeper (slide 63) - Philip Kotler on marketing ......................................................... 7
Week 1 : Dig Deeper (slide 63) - Why marketing is important and how it works : Adam Erhart.. 10
Week 2 : slide 14 – Peter Fader on Customer Centricity and Why It Matters ............................. 19
Week 2 : slide 21 – How Carvana reimagined the automotive customer experience ................. 26
Week 2 : slide 29 – New coke, A complete disaster ? ................................................................. 28
Week 2 : slide 36 – CRITICAL THINKING - Cognitive Biases: Anchoring ....................................... 34
Week 2 : slide 47 – Daniel Kahneman: Thinking Fast vs. Thinking Slow | Inc. Magazine ............. 37
week 2 : slide 68 – Why Do You Feel Bad After Buying Stuff? Buyers Remorse .......................... 41
Week 2 : Dig deeper (slide 76) – Paradox of choice : Too much choice ? .................................... 44
week 2 : Dig deeper (slide 76) - Recap of the purchase decision process : MBA 101: Marketing:
Consumer Buying Process ......................................................................................................... 48
Week 3: Slide 26 - Data 101: First, Second and Third Party Data ................................................ 57
Week 3 : Slide 54 - Telling Stories with Data in 3 Steps (Quick Study) ........................................ 59
Week 3: Dig deeper slide 62 - Myths and Realities of Data and Machine Learning in Marketing 62
!! Week 3: Dig deeper slide 62 -................................................................................................. 72
Week 4: Slide 8 - What is Strategy? ........................................................................................... 73
!! Week 4: Slide 23 – ................................................................................................................. 78
Week 4: Slide 81 - GENDERED MARKETING | The Checkout....................................................... 79
Week 4: Dig deeper slide 102 - What Happened To Fossil Watches? ......................................... 83
Week 4: Dig deeper slide 102 - Why You Spend So Much Money At Trader Joe's....................... 89
Week 4: Dig deeper slide 102 - Jeff Bezos on Amazon Business Strategy - How They Succeed and
Thrive in Everything .................................................................................................................. 96
Week 5 : Dig deeper (slide 49) - Marketing Mix 4Ps | McDonald's Examples ............................. 98
Week 5 : Dig deeper (slide 49) – There is No Luck. Only Good Marketing. | Franz Schrepf |
TEDxAUCollege ....................................................................................................................... 102
Week 5-6 : slide 17 - 20 Years of Product Management in 25 Minutes by Dave Wascha .......... 110
!! Week 5-6 : slide 20 – How Apple's Design Changed the Computer World.......................... 125
week 5-6 : slide 23 - How design package affects sales ............................................................ 126
week 5-6 : slide 46 - How Apple and Nike have branded your brain | Your Brain on Money | Big
Think ...................................................................................................................................... 129
week 5-6 : slide 64 – what makes a truly great logo ................................................................ 132
!!! Week 5-6 : slide 20 – How Apple's Design Changed the Computer World......................... 135
week 5-6 : slide 129 – What are NFTs ? ................................................................................... 136

1
week 5-6 : slide 137 – Planned Obsolescence: How companies trick you into buying a new phone
............................................................................................................................................... 142
week 5-6 : Dig Deeper (slide 139) - Crocs: How the Polarizing Footwear Brand Became a Fashion
Statement | The Economics Of | WSJ ...................................................................................... 147
week 5-6 : Dig Deeper (slide 139) - How Oatly Built A $100 Million Oat Milk Empire ............... 151
!! week 5-6 : Dig Deeper (slide 139) – Marketing in digital world ............................................. 157

2
Week 1 : slide 7 – the real reason we buy diamonds

https://www.youtube.com/watch?v=GCuwR4_kFQI
Synonymous with love, commitment and devotion, precious diamonds are set on top of over three
quarters of all engagement rings.
Americans alone spend eleven billion dollars on wedding jewelry every year.
But it’s actually a pretty recent phenomenon.
Here’s The Real Reason We Buy DIamonds
“She’s the girl I’m going to marry. Get a load of this diamond ring!”
Once a very rare gem, vast diamond reserves were found in South Africa in the late 19th
century.
“Diamond diggers line up ready for the word ‘go’ in the latest South African diamond
rush”
One of many prospectors seeking to make their fortune was Englishman Cecil Rhodes - he formed
the De Beers company in 1888, and eventually took charge of much of the diamond trade,
including mining, supply and distribution.
But diamond sales dropped off during the Great Depression of the 1930s. So De Beers turned
to another burgeoning industry for help.
In 1938 De Beers commissioned Ad Agency N.W. Ayer & Son with making diamonds a necessary
luxury in American lives. De Beers’ grip on the supply meant that whoever sold a diamond
was likely selling one of theirs.
The agency decided they had to convey the idea that diamonds were a gift of love:
Men had to be convinced the larger and more beautiful the diamond, the greater the show
of love.
And women had to view diamonds as an integral part of courtship.
“But before every wedding must come a prelude… that diamond is symbolic of a pledge”
The agency went to Hollywood, tasking producer Margaret Ettinger with reinforcing the image
of the diamond as integral to love - she influenced changing the movie title "Diamonds are Dangerous"
to "Adventure in Diamonds" … and she supplied jewelry for stars like Merle Oberon and Claudette
Colbert to wear on screen.
Ettinger’s cousin, Louella Parsons, was a powerful gossip columnist and also on the
payroll - her articles started paying particular attention to the love lives of the stars,
featuring well- staged pictures of engagement rings, or focusing on lavish and aspirational
jewels like Grace Kelly’s “twelve-karat square cut diamond engagement ring.”
They became symbols of upward mobility - anyone could aspire to
become like a movie star or a princess with their own diamond.
De Beers even managed to get into schools and churches to discuss the history of diamonds
- their true intention: sowing the seed with children that diamond engagement rings were
a part of marriage and that it was a tradition.
By the 1940s, as America’s men went off to war, the number of marriages started to
rise.
Ayer also used work by great painters like Picasso and Dali in their posters to associate
the diamond with a piece of classic art.
But it was a simple ad line that was to make the biggest impact -
In 1947, Ayer copywriter Frances Gerety came up with the slogan ‘A Diamond is Forever’
and the association with eternal love was solidified. It’s appeared in every De Beers
advert since 1948.
It’s since been heralded as the ‘advertising slogan of the century’. It was so successful
Gerety worked on every De Beers campaign until 1970. Shortly after it was immortalised in
the Bond film of the same name.
What the slogan did was create the concept that a diamond ring would be kept by the betrothed,
for eternity, creating a special sentiment but also meaning fewer would be re-sold, therefore
increasing the chance for De Beers to sell more, freshly mined stones.
Ayer’s copywriters were also skilled in directing consumer spending habits - suggesting
a month’s salary was a good amount to spend on a ring, then upping it to two by the 1980s.
Over the same period diamond sales in the United States
grew from $23 million to $2.1 billion.
De Beers and N.W. Ayer & Son’s marketing masterpiece played on our emotions so powerfully
that not only were they able to sell us a product we didn’t need but they influenced
the culture of marriage.

3
Week 1 : slide 26 – mad men 11 lucky strike

https://www.youtube.com/watch?v=3wUZvOEGm8c

LEE GARNER SENIOR I just don't know what we have to do to make these
government interlopers happy.
They tell us to make a safer cigarette, and we do it. Then suddenly, that's not good
enough.
LEE GARNER JUNIOR We might as well be living in Russia.
LEE GARNER SENIOR Damn straight.
COUGHING
You know this morning, I got a call from my competitors at Brown & Williamson
and they're getting sued by the federal government because of the health claims they
made.
ROGER Yeah, we're aware of that, Mr. Garner.
But you have to realize that through manipulation of the mass media,
the public is under the impression that your cigarettes are linked to...
certain fatal diseases.
LEE GARNER SENIOR Manipulation of the media?
Hell, that's what I pay you for.
Our product is fine. I smoke'm myself.
LEE GARNER JUNIOR My Granddad smoked them. He died at 95 years old. He was
hit by a truck.
ROGER I understand, but our hands are tied. We are no longer allowed to advertise
that
"Lucky Strikes" are safe.
LEE GARNER SENIOR So what the hell are we going to do?
We already funded our own tobacco research center to put this whole rumor to rest.
ROGER And that's a very good start.
But it may not affect sales.
Don, I think maybe that's your cue.
DON Well, I... I've been thinking quite a bit about this. And uh......
DON: I mean you know I'm a "Lucky Strike" man from way back...so
PETE I might have a solution.
PETE At Sterling Cooper, we've been pioneering a burgeoning field of research.
And our analysis shows that the health risks associated with your products is not the
end of the world.
PETE People get in their cars every day to go to work, and some of them die.
Cars are dangerous. There's nothing you can do about it.
You still have to get where you're going.
Cigarettes are exactly the same. So, why don't we simply say,
"So what if cigarettes are dangerous?"
You're a man. The world is dangerous.
Smoke your cigarette--
You still have to get where you're going.
LEE GARNER JUNIOR That's very interesting.
I mean, if cigarettes were dangerous, it would be interesting.
LEE GARNER SENIOR Except they aren't. Is that your slogan? "You're going to die
anyway.

4
Die with us."?
PETE Actually, it's a fairly well established psychological principle
that society has a "Death Wish".
And if we could just tap into that, the market potential is--
LEE GARNER SENIOR What the hell are you talking about?
Are you insane? I'm not selling rifles here. I'm in the tobacco business.
We're selling America. The Indians gave it to us for shit's sake.
LEE GARNER JUNIOR Come on, Dad. Let's get out of here.
LEE GARNER JUNIOR The bright spot is, at least we know that if we have this
problem,
everybody has this problem.
DON Gentlemen, before you leave, can I say something?
ROGER I don't know Don. Can you?
DON The Federal Trade Commission and "Reader's Digest" have done you a favor.
They've let you know that any ad that brings up the concept
of cigarettes and health together,
well,..
it's just gonna' make people think of cancer.
LEE GARNER SENIOR Yes, and we're grateful to them
DON But, what Lee Junior said is right.
You can't make those health claims, neither can your competitors.
LEE GARNER SENIOR So we got a lot of people not saying anything that sells
cigarettes.
DON Not exactly.
This is the greatest advertising opportunity since the invention of cereal.
We have six identical companies making six identical products...
We can say anything we want.
DON How do you make your cigarettes?
LEE GARNER JUNIOR I don't know.
LEE GARNER SENIOR Shame on you.
We breed insect-repellant tobacco seeds, plant ‘em in the North Carolina sunshine
grow it, cut it, cure it, toast it...
DON There you go. There you go.
LEE GARNER JUNIOR But everybody else's tobacco is toasted.
DON No. Everybody else's tobacco is poisonous. "Lucky Strike's" is toasted.
ROGER Well gentlemen, I don't think I have to tell you what you've just witnessed
here.
LEE GARNER JUNIOR I think you do.
DON Advertising is based on one thing:
Happiness
And you know what happiness is? Happiness is the smell of a new car...
It's freedom from fear. It's a billboard on the side of the road
that screams with reassurance that whatever you're doing is okay.
You are okay.
LEE GARNER SENIOR: "It's 'Toasted'."
I get it

5
!! Week 1 : slide 49 - Understanding Your Needs | The Lengths We Go To | Singapore
Airlines

https://www.youtube.com/watch?v=F_wxDuN3WNA&t=1s

PAS DE TRANSCRIPTION

6
Week 1 : Dig Deeper (slide 63) - Philip Kotler on marketing

https://www.youtube.com/watch?v=bilOOPuAvTY

this is the mantra

Marketing CC DV TP I mean I don't know
if your boss quoted that probably not
because I just invented it but what it
means is your job is to create
communicate and deliver V value to a T
target market at t profit create
communicate and deliver value to a
target market at a profit now let's take
the create communicating deliver
creating value is called product
management your product may be a service
but whatever whether it's a tangible or
an intangible
some way your company must have product
management that's a that's creating
value but you have to communicate value
that's called branding and that's brand
management there's a difference between
product management and brand management
you could have five products what have
you doing what have you done to brand
them to communicate excitement
differentiation and so on and then to
deliver value is called customer
management so you're in three businesses
product management brand management and
customer management and they've changed
you know product management was really
this business of you have a company and
from the inside you make things and then
you ask the sales and marketing people
to get rid of them but you do it inside
you do with your scientists and
engineers what's changing in product
management today take Procter and Gamble
the ones making a new product for
Procter & Gamble are not just they're
scientists
they have connected with 10 times as
many scientists outside see the old idea
was you got to do things secretly in
other words you're inventing something
that Unilever should know about closed
doors now

7
P&G will tap scientists anywhere in the
world where they have solutions to a
problem that P&G wants to sell for
example P&G makes Pringles and they
decided that for kids they'd like to
print funny things on each Pringle which
is a potato chip how do you print a
funny thing a picture or a word on a
Kringle chip and their scientists
couldn't figure it out until they
identified a cookie maker in Italy who
has been printing things on his cookies
so it's called open technology open
innovation is the the word we're giving
find the best ideas anywhere they can
come from so with respect to product
management we've opened it up with
respect to brand management the brand
building that used to mean packaging it
meant a name a logo brand management
today is what you're all about the brand
is a promise the brand inspires
everything you do the way you act when
you're approached and when you reach
customers and it's emotional and be
highly emotional and there's there's a
new direction emotions were generally
thought the formula was this I'm going
after your mind I'm going after your
heart I want mine share and I want heart
share now we're saying we also want
spirit share share of something a little
more than narrow to your own interests
we might be a firm that is civic is
caring and we
to be appreciated because we we care
about the shape of the world and that's
called corporate social responsibility
or whatever but in creating an emotional
relationship it's more than limited to
the person's own nurturing of his or her
ego so CCD V T P and even the D of
customer management has changed customer
management do you think you're doing
customer management if you essentially
have a database of customers and you're
reaching them through direct mail and
online email and so on is that really
customer management or is that dealing

8
with a database what's new about
customer management is we want to meet
the customers and know them really
beyond the database in fact we want to
we want to get their help to get the
customers help in creating products we
want to co-create with the customer our
products and we want to even co-create
our advertising we want their help in
creating ads for us now this is a
radical change in marketing
you

9
Week 1 : Dig Deeper (slide 63) - Why marketing is important and how it works : Adam
Erhart

https://www.youtube.com/watch?v=8PKIgW-eUs0

marketing is the single most important

element to business success which is why
it's so important that you understand
how it all works and that's exactly why
in this episode i'm going to be sharing
with you how marketing works and why you
need to care
let's get to it hey there my name is
adam erhart marketing strategist and
welcome to the marketing show
all right let's talk marketing
specifically just why this
often misunderstood and crazy skill of
marketing
rarely gets the full credit that it
truly deserves and it does deserve a
whole lot of credit
after all as i alluded to at the very
beginning actually as i said
just outright marketing is really the
single most important element to
business success because
without marketing you don't really have
business because it's marketing's job to
attract more customers generate more
leads and essentially help making sales
easy and effortless ultimately
marketing's job is to get you more
customers
and without customers you don't have a
business so if you want to reach more
people
if you want to make a bigger impact if
you want to make a whole lot more money
you're going to need marketing but i'm
getting ahead of myself so let's start
at the top and just accept the fact
that everything is marketing you see the
very first thing that you need to
understand about just how important and
how
integrated marketing is to everything
that you do well you need to understand
that everything that you are doing or
not doing is communicating something

10
to other people whether it's friends and
family or whether it's prospects
customers or potential clients
the way that you dress the way that you
speak the accent that you have
the video that you do or that you don't
make the way that you answer the phone
the way that you write an email pretty
much
everything that you do is communicating
something to your customers to your
prospects to your ideal clients
the reality is is that you and i well
we're being judged all the time we're
being judged on our appearance we're
being judged by what we say we're being
judged by
the quality of the service or the
products that we put out there into the
marketplace
so it only makes sense to try to control
as much of the narrative
as possible that's really what marketing
is all about it's essentially taking
control back and really
influencing and persuading the
perception that other people have about
you
because like it or not they're forming a
perception they're making judgments and
they're making them very
very quickly so it only makes sense to
try to control that as much as humanly
possible when you add to the fact that
first impressions are made
almost in the blink of an eye and they
tend to last a really
really long time well it only makes
sense even more so to try to control
all of your marketing and try to ensure
that you're really putting your best
foot forward
and that's what this is all about it's
not about being fake or cheesy or slimy
or sleazy or
salesy or anything like that rather what
it is is it's highlighting the best
aspects of you
the best aspects of your business and
making sure that that is the first thing

11
that people see
when they come to your business when
they first are introduced to you
or anything like that all right so if we
can agree on the fact that everything is
marketing well let's move on to the next
point which is marketing is
communicating value
one of the biggest misrepresentations or
myths or misunderstandings about
marketing to those outside of the
industry
is that marketing is sales or marketing
is
advertising and while it's true that
there is a little bit of overlap there
and advertising is definitely a part of
marketing
it's not everything that that'd be kind
of like calling
taxes all of accounting or supply and
demand
all of economics or anything like that
it just doesn't make sense really
marketing is a much broader
much bigger picture involving all sorts
of different things but at the core of
it
what it is is about communicating a
message ideally communicating value
even more ideally communicating your
value to your ideal target market
essentially what you're trying to do
with your marketing is you're trying to
again, put your best foot forward
you're trying to show up in the best
possible light and letting other people
know
why they should care about what it is
that you're doing and how you can serve
them how you can benefit them and
ultimately how you can help them achieve
their goals that's really what it's all
about marketing that works marketing
that's effective well it's all about the
other person
it's about being empathetic it's about
understanding where they're coming
through from and what they're going
through

12
and essentially how to position your
business in a way that solves that for
them
on the other hand marketing that doesn't
work that well is all very selfish and
business centered but
we'll cover that in a minute one of the
biggest differentiators in marketing
between those campaigns that really
knock it out of the park they really
dominate they really click they
possibly even go viral well they're
relatable they're authentic
and they're relevant to the situation
and to the time that
we're going through whether that's right
now or whether it's some weird time in
the future or some crazy time in the
past
whatever it is it has to be relatable
and in order to be relatable you've
really got to have your finger on the
pulse
of society and of most specifically
your customers their pains their
problems their wants their dreams their
goals their desires
everything that's going on inside their
minds you've got to try to be as
empathetic as possible
you've really got to put yourself into
their shoes and try to see things from
their eyes and their perspective
and when you do this when you have
customer centric marketing well
you can knock it out of the park because
really all you're going to give them
is exactly what they want and by
understanding them well you're going to
know what they want which makes it that
much easier
unsuccessful marketing on the other hand
is all about the business it's all about
you it's
selfish it's really irrelevant and and
this is really hard to say and
it's a tough pill to swallow for a lot
of entrepreneurs and a lot of business
owners but the reality is
is the customers really don't care about

13
you that much only in so much
as you can help them achieve what
they're really after
after all just think about your
interactions with other businesses i
mean
sure you might like the owner you might
have a good rapport and a good
relationship but
if they stop providing value if they
stop being of any service to you
well you might still be friends but
you're not going to still do business
with them
the takeaway point i really want to hit
home for you here is that the better
that you understand your customer the
better that your marketing will be
and the better you're going to be able
to communicate value which is ultimately
what marketing is all about alright so
now that we've got that covered let's
dive into the weeds a little bit with
how does marketing actually work and i
appreciate this is an incredibly complex
topic so let's break it down
into some very simple parts marketing is
really just a combination
of other sciences or other specialties
like
psychology and economics
and buyer behavior definitely an element
of communication in there
also probably some facets of design i
mean i guess you could probably
reference a little bit of biology
the point is it's kind of a hodgepodge
but what it really comes down to
is people people are complicated like
super complicated which is why anybody
that just comes out and tells you here
just do this and you'll automatically
make sales well
they're probably selling you something
like snake oil oceanfront property in
arizona
i don't know some kind of scam the
reality is is that marketing's complex
and it's nuanced and it's difficult to
just go out there and

14
and toss out some broad generalizations
because the reality is
is that what's going to work for you in
your market with your business with your
specific and unique customers well
it's going to be just that it's going to
be unique and specific to you and your
market and your unique customers and
your business
and all of those things so essentially
marketing is pretty deep stuff
but don't let that dissuade you don't
let that stop you from
really doing some solid marketing
because you don't need a phd to make all
this stuff work
rather if you want to look at it in a
much better way and the way that i
choose to look at it and to
hopefully convince you of is that
marketing is actually pretty simple
when you get down to the bones of it
which is marketing is about
communicating value
marketing is about helping other people
now i talked about this at the beginning
that the better you understand your
customer the better your marketing is
going to be well that's really what this
is all about
it's about trying to have a conversation
with your customers trying to figure out
what their pains and problems are
how your business is uniquely positioned
to solve them and then really just
showing them that what you've got
can help them achieve their goals that's
marketing just show people how you can
help them
give them what they want job done
now of course you can take it deeper if
you want to and my suggestion is
definitely start with the basic stuff
but over time well
it's kind of fascinating to figure out
just what makes people tick why we do
the things they do
why we buy the things that we buy and
why we make emotional
rather than logical decisions in that

15
case got a couple suggestions for you
one of the most interesting fields that
you can start to look into and study is
a field called behavioral economics
really really interesting stuff on the
psychology of why people do the things
they do
promise it's going to be pretty
surprising you're going to learn that
people make decisions emotionally first
and then justify them and back them up
logically and rationally later but
pretty much after the decision's already
been made
and again this brings us full circle
right back to the beginning of
everything as marketing
and you better be taking control of the
narrative that's going on
in other people's minds and really
putting your best foot forward when
you're making those first impressions
and having those touch points with your
customers all right so why else is
marketing relevant why else should you
care
how does this whole thing work well
another reason that is really imperative
and really valuable for you to care
about marketing is that not only is it
going to help you make more sales and
generate more income and all of that
good stuff
but it's also going to make you a better
and stronger person
that sounds kind of weird to say but the
reality is is that great marketing takes
courage
now this is hopefully going to be pretty
easy to accept because
any time that you're doing any kind of
communication well you're essentially
putting yourself
out there and that means that you're
opening yourself up for criticism or for
somebody to argue with you
or or just say you have no idea what
you're doing obviously that takes an
element of courage
well marketing takes that and it throws

16
gas on the fire because your goal with
marketing is to try to reach
as many people as possible which means
you're opening yourself up
a whole lot more here's a fun fact your
haters the people that are gonna
disagree with you and just be
downright nasty well they're not a
specific number rather they're a
percentage so
let's say that one percent of the
population is just not going to like
what you say
well if you're reaching 100 people
that's just going to be one person
but if reaching a thousand people it's
going to be 10. what about a hundred
thousand what about a million
you can see as it grows you're going to
be experiencing a little more criticism
and a little more kickback to your stuff
marketing as seth godin says is the bold
and courageous act of essentially going
out to the market and
saying here i made this i hope you like
it some people are gonna love it
some people aren't but that's okay as
aristotle said the only way to avoid
criticism
is to do nothing say nothing and be
nothing
we don't want that okay so if we can
accept the fact that everything is
marketing and marketing is communicating
value and marketing is going to take and
build
some massive courage well it really does
become a lot easier to accept
that marketing is the single most
important element to your business's
success
if your goal is to generate more leads
or get more customers or
increase your clients or make more sales
or expand your reach or increase your
income or anything like that
the answer is marketing the beauty is is
that once you understand the
fundamentals and the principles of
marketing and just how it works while

17
everything in your business and your
life becomes that much easier
and more profitable and that's why the
next thing you're going to want to do is
check out the video i have linked up
right here on business marketing basics
so
make sure to check that out now and i'll
see you in the next episode
this is why anytime i'm consulting with
a client or we're designing a campaign
through the agency
we always look at market message and
media alignment

18
Week 2 : slide 14 – Peter Fader on Customer Centricity and Why It Matters

https://www.youtube.com/watch?v=eicCJ6jJxmI

[Music]
I'm Steve Caron executive director of
wharton digital press and i'm here to
interview pete fader whose new book and
the wharton executive education
essential series is customer centricity
Pete welcome it's great to be here let
me ask you about something in the book
Pete you argue that Apple Nordstrom and
Starbucks are customer friendly but not
customer centric what does that mean too
many people think that they're the same
thing too many people think that being
customer centric means doing everything
that your customers want for them and
that's not the case being friendly
offering good service is a part of
customer centricity but it's not the
whole thing and one of the differences
huge distinction customer centricity it
means that you're going to be friendly
you're gonna provide good service you're
gonna develop new products and services
for the special focal customers the ones
that provide a lot of value for you but
not necessarily for the other ones you
need to pick and choose some customers
deserve the special treatment and some
well if they want to borrow from you
that's great but they're not gonna be
treated the same does that mean you
ignore all of the customers who aren't
special you're not gonna ignore
customers you're not gonna fire
customers you're not gonna treat them
badly but you will treat some better
than others and you're gonna be real
careful in who you choose to treat that
way and what that treatment means does
it mean you give those special customers
absolutely everything maybe not but you
definitely need to give them more
consideration than customers that
frankly aren't worth that much to you
what does it mean to be a customer

19
centric company and can give me some
examples of companies that you think are
customer centric so the primary
distinction that makes a company
customer centric or at least a
requirement behind customer centricity
is the ability to understand customers
at a fairly granular level to be able to
identify the customers or the segments
of customers who are valuable from the
ones who aren't if you can't sort out
your customers if you can't look at them
and know who's good and who's bad then
you can't be customer centric so that's
step one step two is having an ability
both an operational ability as well as
an organizational capability to be able
to deliver
different products and services to
different kinds of customers and that's
tough to do for the most part we think
about the the most customer centric
companies being online firms such as
Amazon and Netflix those are great
examples but by no means is it limited
to e-commerce firms we'll see others
like like Capital One and Harrah's and
even IBM as examples of companies that
are fairly customer centric how would a
company go about identifying the
customers it should focus on they should
pay the most attention to so companies
have been sorting through their
customers for a long time
ever since they first realized that
customers are different from each other
and might deserve some differential
treatment so the basis that that
companies use to come up with this
segmentation that's the key in the old
days the basis of segmentation used to
be simple observable things like
demographics or or geography of just
easily identifiable characteristics but
the real key is to segment customers on
their value and I'm not talking about
historic profitability I'm talking about
future looking customer lifetime value
which might be related to profitability

20
but we want to sort a customer's out
based on what they will be worth to the
firm in the future and how would you go
about calculating how do you determine
customer lifetime value that's a key
question that's actually been a big
focus of my research for a number of
years now so I've been focusing on those
methods and how CLV would vary based on
whether you're in a contractual business
or non contractual business lots of
different characteristics that will lead
to lots of different CoV formulas and
it's fairly technical and we won't
necessarily get into those details here
but there's a couple of important
considerations one I just mentioned is
you must take into account the different
kind of business setting that you're in
secondly you must take into account
heterogeneity the fact that different
customers are going to have very
different CLV values and thirdly you're
going to look at other kinds of factors
the cost of acquisition the likelihood
that different kinds of customers are
going to stay with you so there's a
number of factors that come together
unfortunately forgot affirms it they
feel it's just too complicated they
don't want to think about it and they'll
oversimplify it they'll ignore some of
these distinctions and we'll use a a
one-size-fits-all formula across all the
customers that doesn't vary based on the
business model
and it leads to more or less a garbage
in garbage out situation along the same
line Pete you talk a lot in the book
about CRM customer relationship
management and you mentioned that most
firms don't handle it well what did it
do wrong how do you do it right so CRM
is a really critical step if you're
going to be customer centric that's
that's the front line that's gonna help
you collect the data and organize it
properly and understand which message
you're going to send through which

21
custom to which customer through which
channel at which time so CRM is is
really the interface that pulls it all
together but unfortunately it's kind of
taking on a life of its own
and instead of it being just a tool that
helps you achieve customer centricity it
becomes this massive system or set of
systems that that get embedded in a
company becomes this huge operational
challenge and then once it's there
people don't know quite what to do with
it because it's often so complex so the
first step of CRM is keeping it real
simple just first starting with real
simple data and then simple queries that
you aren't want to make on that data
keeping the operational parts around it
simple and then building up and adding
complexity as the company has a genuine
need for it so CRM has gotten kind of a
bad reputation I think it's undeserved I
don't think it's a fault of CRM or the
vendors that sell CRM systems but the
companies that are bringing it in are
biting off more than they can chew in
many cases let me ask you another
question the book you talked about this
current generation of consumers is
spoiled as knowing what they want and
wanting it immediately what are the
implications of that for firms for
companies well well well first of all
let's think about the driver of it it's
all about technology that today's
customers are so much more informed
economic times in general tend to be
better than they were say 50 or 60 years
ago so so customers are far more
empowered than they ever were before a
lot of companies spend their time
pushing back hoping for the old days
when they could just put a product out
there and just leave it to the customers
to figure out how to use it and how to
integrate it with other products and
services well that's not the case
anymore so instead of just again pushing
back and complaining companies have to

22
realize that instead of just putting
products out there that they really need
to be a solutions provider and that's
kind of a corny phrase these days
but but I think there's some validity to
it the companies need to help consumers
figure out how their products and
services is gonna fit into their lives
and offer solutions and not just
ingredients you talk a lot in the book
Pete about the difference between the
product centric and a customer centric
strategy what's the difference can you
spell it out quickly product centric
strategy would be pretty much every
company on the planet you look at their
org chart where it's broken up by
different kinds of products you look at
the incentives you look at the language
they use you look at the performance
metrics that they that they rely on it's
all based on different kinds of products
the whole business model is based on
producing something or a set of some
things in really high volumes and it
really low cost and that's gonna drop to
the bottom line so that's more or less
business as usual and I'm not suggesting
that it's easy and I'm not suggesting
that it's going away tomorrow but I'm
suggesting that there are alternatives
and instead if you organize the company
around customers different types of
customers having customer segments
managers who are just as powerful as
today's product managers are and giving
them the right incentives and giving
them the right resources and tools that
for many companies it can actually be a
more profitable way to go to market one
of the things that surprised me in the
book is you say that the customer
doesn't exist we've been talking about
customers all afternoon what does that
mean
well let's phrase that real carefully
it's the the notion of the customer
doesn't exist one of the things that
drives me crazy is when I hear managers

23
or entrepreneurs talking about the
customer doing back of back of the
envelope calculations about what the
customer will be worth or how the
customer will respond to this kind of
product or that kind of offer and by
talking about the customer or by talking
about the average customer that doesn't
do justice to the vast heterogeneity the
incredible differences across our
customers in terms of their propensity
to buy in terms that our propensity to
to talk to each other their propensity
to respond to different kinds of offers
and so again step one of being customer
centric is not only acknowledging the
heterogeneity but celebrating it saying
wow all this heterogeneity is a great
thing because it lets us pick and choose
different kinds of customers so when we
say the customer
we're we're selling ourselves short and
I think it's important to not use those
words and to always have a plural there
let me ask you what was your biggest
surprise in writing this book well the
reason I wrote the book is because as I
said before I'm a model builder I'm
interested in the methods I'm interested
in helping companies improve their
quantitative literacy to be able to to
to assess the value of the customers and
do more effective targeting and so on
and I realized that I need to take a
step back or actually a step up I need
to understand the strategies into which
these models and methods and analyses
would fit so as I step back and looked
at the kinds of strategies to look at
what people what experts are saying
about customer centricity and loyalty
and and and all these these higher-level
terms I was surprised at just how
ambiguous a lot of these definitions
were or how contradictory they were so
you pick up three different books on
customer centricity and you get four
different definitions about it
so for me a really big piece of it was

24
to bring clarity was to try to bring
some consensus to it I'm not sure I'm
going to achieve that goal but I think
it's it's it's important for everyone
especially for firms that want to call
themselves that because they have to
understand what it means
sure anything book does a great job of
making a customer centric approach clear
well that's my objective and I'm glad
you saw it that way I hope that other
readers do as well really there's a lot
of provocative aspects of the book a
part of it because a lot of things that
I believe are actually at odds with a
lot of the conventional wisdom but part
of it is to provoke a discussion is to
get people to really think about what
this stuff means whether it's even right
for them for many firms this customer
centricity stuff might not even be
essential they shouldn't even go there
but I want firms to be able to make an
intelligent informed decision about
whether to go there and what it means
when they start to do it how does the
book help a firm become customer centric
well for one thing it does bring some
clarity so it's going to help them
understand what it is what are the steps
not only that the models that they need
to run but the organizational structures
the the incentives for employees and so
on so so it's getting organized around
this strategy and once again it's it's
real hard to just pick a strategy and
run with
you need to understand what all these
consequences are going to be before you
get into it so I'm hoping to lay out a
bit of a road map for firms to to
understand where they're going if they
choose to go there well thank you Peter
we've enjoyed talking about your book
customer centricity and thank you for
taking the time to talk with us
I've always enjoyed doing so thanks
Steve
you

25
Week 2 : slide 21 – How Carvana reimagined the automotive customer experience

https://www.youtube.com/watch?v=VZ_ZclqxxGU&t=171s

Movie magic.
Set.
Our mission is to change the way people buy cars.
That sounds like a pretty concise, relatively simple mission,
but it's very hard to do that.
We all just wanted to focus on the vision.
Could we sell cars entirely online?
And how do we get people to trust that it was going to be okay?
For about 90 years, car buying hasn't really changed in a meaningful way.
It's really, really hard to throw out the old system
and build a new one when car buying itself is so complex.
If we're going to build something that enables
the whole transaction to be consolidated
into minutes versus hours, what do you need to build?
The customer needs the car, they need financing,
they've got to trade in, they've got a warranty.
The number one reason it was always given
why cars couldn't be sold online was that people needed a test drive.
We said is there a way for us to use technology
to let a customer take themselves through the whole experience?
Is there a way that we can merchandise the car
where they can experience online and get as good a feel
for what that car is about as they would have got in person?
And then can we buttress that with the seven-day return policy?
When you're trying to build something new for customers
I think the first thing that you have to do
is you have to build a system that is actually better for them.
That's step one.
Step two is equally important,
and that's, you have to go find those customers.
Google is the biggest funnel in the world.
It's the place where customers
just go to start any enquiry about buying a product.
Finding big partners where we can go get our message
in front of customers and find creative ways
to explain where we're different is a huge part of our success.
YouTube is an awesome channel for us.
We're able to tell our story in a way that's very impactful
in terms of building awareness.
We also can target really effectively in terms
of what we're looking to do, whether it's
broad base or in-market shoppers for used cars.
Behind the scenes we know where the customer is
in their car buying journey and so we're able to make sure
we're anticipating their needs and providing

26
the best service to that customer.
There's a lot of ways that we try to think about what the optimal
customer experience looks like and what the customer evaluates
isn't a part of that chain, they evaluate the sum of that chain.
Success is about making that chain feel great.
Seeing that magic happen and understanding that
“Hey, it’s as easy as you think it is.”
A customer, honestly will be like, “So this is it?
What else do I have to do?”
“Nothing. Congratulations. You're good to go.
Here are your keys.”
We've hit some pretty exciting milestones.
We recently sold our millionth car.
One million cars!
It's just incredible.
We'd like to think that we've reinvented
the customer experience and made it faster
and simpler and more fun but I think we have
to constantly reinvent it as well.
Sometimes in seeking to do things differently
you can just do different for different’s sake.
Everything we do shouldn't just be different.
It should be better.

27
Week 2 : slide 29 – New coke, A complete disaster ?

https://www.youtube.com/watch?v=ThZJWmCaYRQ&t=121s

[Music]
this is a can of coke you probably won't
even realize this until I show you the
current can but this can is about 10
years old here's the current can hard to
tell the difference unless you see them
together
but speaking of differences there's one
massive difference between these two
cans the older one has the word classic
and the new one doesn't may not seem
like a big difference but that one word
is what this entire video is about Coca
Cola has been around since 1886 you're
heard that right it's older than anyone
watching this it's one of the most
recognizable products and logos in the
world its Coca Cola practically everyone
watching this is familiar with it it's
so massive that in certain parts of the
United States people use it in place of
the word for all sodas one person can
say hey do you want a coke and the
response will be sure what kinds of coke
do you have to which the other person
says I've got sprite and orange Krush
and the reply is I'll have sprite that's
my favorite coke and the other person
will bring it over and say here's your
coke and the receiver says thanks for
the coke even though it's bright okay so
they don't say it that often
but even saying it once seems confusing
to me it's one of the few words that
would be confusing in that situation but
if people are replacing the word soda
with the word coke that means that coke
is doing pretty well so here we have one
of the biggest well known loved brands
the world has ever seen in 1985 they
were approaching 100 years without
changing the recipe or the taste in any
major way it was the taste that everyone
loved and had become accustomed to but
just before they hit that 100 year mark

28
they decided to make one change and that
was to change the recipe in a way that
made it taste completely different no
exaggeration here the Coca Cola Company
pulled the traditional soda from all
North American shelves and replaced it
with an entirely new Cola they told the
public it was happened
and made no effort to hide it all the
new cans of coke were clearly labeled
with a tag that said new and the product
became known as new coke this has got to
be the boldest consumer product smooth
of any kind of any strife since Eve
started to hand out apples so now all
the people that were loyal to this soda
for possibly even 100 years could no
longer buy it their only option was this
new offering from coke or switching to
Pepsi or another competitor now the idea
of this sounds insane and I promise you
this is exactly what happened coca-cola
all at once abandoned their recipe and
their customers were outraged at this
point you might be thinking that the
executives at coca-cola completely lost
their minds but it all makes a little
more sense when you hear their side of
the story as most companies do coke was
conducting taste tests for their
products the kind of thing where you
place two unmarked sodas in front of
someone and ask them which one they
prefer through these tests they were
able to create something that people
actually liked more than coke they would
give someone one cup with coke and one
cup with the new drink and most of the
time they would prefer the new drink
they would also compare both of these
drinks with Pepsi and the winner was
usually this new soda the fact that Coke
created something that people liked more
than Pepsi was a huge plus
the battle between Coke and Pepsi had
been going on for years and continues
today it's such an in-depth rivalry that
it may be the subject of one of my
future videos

29
so when Coke had finally created
something that was better than Coke and
Pepsi it was big news but how should
they handle this they have something
potentially massive on their hands and
need to handle it carefully what most of
us are probably thinking right now is
that they should have kept the original
coke and introduced the new drink as
well a new drink put new coke on the
shelves but keep the original coke there
as well but in the 1980s things were a
little different than they are today
there weren't 18 different kinds of
Oreos and twelve different kinds of
Captain Crunch
so today introducing a new kind of Coke
is no big
but thirty years ago it was remember
that Coke and Pepsi are huge competitors
and whichever one is able to say they
sell more than the other gains a huge
marketing advantage a Pepsi commercial
or billboard that says that they sell
more than coke carries a lot of weight
way more than it would today and even
today it would be an effective campaign
so Coke was beating Pepsi by a small
margin and desperately wanted to keep it
that way through most of the 99 years of
Coca Cola they sold just that Coca Cola
a few years earlier they introduced Diet
Coke and were just now introducing
Cherry Coke now these products were good
for the company but they took away sales
from regular coke and we're helping
Pepsi close that gap I know it's a
strange scenario but Coke was taking
sales away from themselves and Pepsi was
getting closer to being able to claim
that regular Pepsi out sells regular
coke so introducing this new coke as yet
another coke product would almost
certainly take sales away from the
regular coke and ultimately help Pepsi
Coke doesn't want to help Pepsi so they
didn't want to do this so the question
comes back to how do they handle this
great tasting new beverage the other

30
idea going around at the time is that
they could slowly transform the old
product into the new product gradually
and not bring any attention to it but
they concluded that it would be too
difficult to do without anyone noticing
and I would expect that some of those
transitional sodas may have questionable
taste as well well at this point
replacing old coke with new coke doesn't
sound quite as crazy anymore and I have
to admit it was a risky move but not a
crazy move it could potentially have a
big payoff so they went through with it
they replaced their old product with
this new better tasting product yes more
people all across the country when
comparing coke to Pepsi chose the taste
of coke as the better taste let's look
at it this way we gave America a choice
and more people said Kohli is in and it
didn't work
initially the sales were good but it
could have been from curious people
buying the new product overall there was
a huge backlash so were the taste tests
wrong was this actually an inferior
product I don't think so
but there's theories that they were the
new drink was sweeter and maybe good in
small amounts like they would given the
tests but after a while people get tired
of that this idea is possible but that's
not the real issue the real issue is the
fact that they got rid of regular coke
the core of their company that people
had grown to love the new drink was
probably better tasting overall but it
just wasn't coke it's a perfect example
of how people like something that
they're familiar with rather than
something that's new and better and I'm
sure all of you can relate to this I'm
sure there's a movie out there that you
love just because you watched it as a
kid you would prefer it over a new
better movie how about the car you drive
I'll bet some of you drive an old
beat-up car but wouldn't trade it in for

31
a brand new one we all love things that
we're familiar with many of you would
rather drink a coke right now over a new
probably superior drink simply because
you're familiar with coke and have grown
to love it so when they took coke from
the public it was like someone took away
that old beat-up car you've grown to
love people were furious and I can't
blame them I'm not saying coke is an old
beat-up car I'm saying it doesn't matter
it doesn't matter how good or bad the
old product was the point is that's the
product they wanted they changed my coke
I know they could change it the entire
incident made coke realize how important
their product was to some people and it
made the people realize it as well I
suppose you don't realize what you have
till it's gone and when it was gone
people realized what they had it made
the public better appreciate the
original coke in total there were about
three months
in 1985 where it was impossible to get a
regular coke in North America after that
they realized their error and
reintroduced it and as you would expect
it returned to high sales some believe
this was all intentional coca-cola took
away their soda to make people realize
how much they wanted it I thought is
that this is so risky that a company
would have to be crazy to attempt
something like this and I don't
recommend anyone out there attempt it it
only worked out for Coke because of
their ninety nine year history and
connection to the customer any company
that doesn't have that would almost
certainly tank in the same circumstances
but back to where we started this older
can has the word classic on it because
they needed people to know that this was
the classic coke not new coke when they
reintroduced it they called it Coca Cola
classic and it maintained that name for
over 20 years what we didn't know was
how many thousands of you would phone

32
and write asking us to bring back the
classic taste of original Coca Cola well
we read and we listened and you know the
rest they're both yours the new taste of
coke and coca-cola classic today the new
coke incident is mostly forgotten and
nobody's mistaking this product for new
coke but at the time it was one of the
biggest stories in the country something
I think that's funny is when Coke
announced that they were bringing back
the classic recipe ABC interrupted their
program and covered it as breaking news
new coke was still sold as coke renamed
coke to after a few years and was
eventually discontinued altogether what
happened to new coke doesn't even matter
the focus here is the absence of the old
coke new coke was just a victim in all
this it got a bad name and the whole
situation was thought to be a crazy
decision from coca-cola
but in the end it all worked out and the
company came out of this better than
ever before this whole story is very
unique and has an ending that few could
have expected it shows that coca-cola
and any company that relies on the
nostalgia of their customers can't make
any changes people are buying the
product because it is what it is whether
it's good or bad people want it for what
it is
let me know in the comments what you
think of all this was replacing the
original coke of crazy decision or would
you have done the same it's an easy
decision looking back at it today but
try to put yourself in their position
and let me know what products you would
hate if they made any changes I'd like
to hear what you have to say thank you
for watching
[Music]

33
Week 2 : slide 36 – CRITICAL THINKING - Cognitive Biases: Anchoring

https://www.youtube.com/watch?v=NFiDdbquWJY

My name is Laurie Santos.

I teach psychology at Yale University, and today
I want to talk to you about anchoring.
This lecture is part of a series on cognitive biases.
Let's do a math problem. really quickly, and you've
gotta do it in your head
Ready?
First, multiply the following numbers: eight times seven times six
times five times four times three times two times one.
OK, that's it.
What's your guess?
A thousand?
Two thousand?
When the psychologists Danny Kahneman and Amos Tversky tried this with
human subjects, subjects on average
guessed about two thousand two hundred and fifty.
Seems like an OK guess.
But now, let's suppose I gave you a different math problem.
What if I gave you this one?
Ready?
One times two times three times four
times five times six times seven times eight.
What's your answer?
If you're like Kahneman and Tversky's
subjects, your answer might be a bit different here.
For this question, their subjects guessed a lot lower.
On average they said the answer was about five hundred and twelve.
The first amazing thing about these similar
mathematical estimates is that people get the answers really, really wrong.
In fact, the real answer?
Well, for both, its forty thousand three hundred and twenty.
People are off by an order of magnitude.
But the second, even more amazing thing is that people give
different answers to the two problems, even though they're just different ways
of asking exactly the same question.
Why do we give completely different answers,
when the same math problem is presented differently?
The answer lies in how we make estimates.
When you have lots of time to do a math
problem, like eight times seven times six times five times four times three times
two times one, you can multiply all of
the numbers together and get an exact product.
But when you have to do the problem
quickly, you don't really have time to finish.
So you start with the first numbers.

34
You multiply eight times seven, and get fifty-six.
And then you've gotta multiply that by six,
and, well, you're guessing the final number's gotta be pretty big, bigger than
fifty-six, like maybe two thousand or so.
But when you do the second problem, you start
with one times two, and, well, that's only two, and two times three's only six.
Your answer's gonna be pretty small,
maybe only like five hundred or so.
This process of guessing based on the first
number you see is what's known as "anchoring."
The first number we think of
when we do our estimate is the anchor.
And once we have an anchor in our head,
well, we sort of adjust as needed from there.
The problem is that our minds are biased not to adjust as much as we need to.
The anchors are cognitively really strong.
In the first, problem you probably started with fifty-six, and
then adjusted to an even bigger number from there.
And in the second problem, you started with six, and then adjusted from there.
The problem is that starting at different points leads to different final guesses.
Like real anchors, our estimated anchors kinda get us stuck in one spot.
We often fail to drag the anchor far enough to get to a correct answer.
Kahneman and Tversky discovered that this
sort of anchoring bias happens all the time,
even for anchors that are totally arbitrary.
For example, they asked people to spin a wheel with
numbers from one to a hundred, and then asked them to estimate
what percentage of countries in the United Nations are African.
People who spun a ten on the wheel estimated that
the number was about twenty-five percent.
But people who spun a sixty-five estimated that
the number was forty-five percent.
In another experiment, Dan Ariely and his colleagues had people
write down the last two digits of their social security number.
They were then asked whether they would
pay that amount in dollars for a nice bottle of wine.
Ariely and colleagues found that people in the highest quintile of social security
numbers would pay three to four times as much for the exact same good.
Just setting up a larger anchor can make a
person who would pay eight dollars for the bottle
of wine be willing to spend twenty-seven dollars instead.
Sadly for us, sales people use anchors against us all the time.
How many times have you noticed a salesperson or an advertisement
anchoring you to a particular price, or
even to how much of a particular product you should buy?
Whether it's buying a car, or a sweater,
or even renting a hotel room, our intuitions about what prices
are reasonable to pay often come from some arbitrary anchor.
So, the next time you're given an anchor, take a minute to think.

35
Remember what happens when you
drop your anger too high, and then
consider thinking of a very different number.
It might affect your final estimate more than you expect.

36
Week 2 : slide 47 – Daniel Kahneman: Thinking Fast vs. Thinking Slow | Inc. Magazine

https://www.youtube.com/watch?v=PirFrDVRBo4

we're lucky today to have the Nobel

prize-winning psychologist and economist
Daniel Kahneman whose book Thinking Fast
and Slow is one of the bestsellers of
last year and a great manual for how to
make better decisions professor Kahneman
is also a partner in the consulting firm
the greater good professor Kahneman
thank you for being here it's a pleasure
your book makes use of a very useful
analogy in fact the analogy is built
into the title Thinking Fast and Slow
system one is thinking fast system two
is thinking slow what's the difference
between the two systems and why is it
important for business decision-makers
to understand the difference well system
one is essentially what comes up
automatically in your memory so when I
say 2+2 something comes into your head
when I say your mother an emotion comes
so all the things that are automatic
that's what I call system 1 and you have
no control of it because it's automatic
in the involuntary system to the slower
thinking is distinguished really not so
much with by the fact that slow though
it's pretty slow but by the fact that
it's effortful and deliberate so what
you can do deliberately you do in system
2 and you can do you can well control
yourself
control your thoughts perform
complicated computations those things or
activities assistant 2 so system 1 does
most of the mental work happens
automatically we don't have to worry to
where to put our next foot or what word
should come next some of the work and
it's important work is done by system
too when we slow down to decision makers
sometimes think they're in system to
when they're actually in system 1 I
think mostly I think most of us feel
that we have reasons for what we're

37
doing but in fact we do what we're doing
very largely because of reason that
we're not necessarily completely aware
of and then when we're asked why do you
do this we have reasons but the reasons
are not
thoroughly the causes of more action
does it lead to mental errors bad
decisions because you think you've made
a deliberation and you haven't it really
depends whether you're very skilled and
whether the world provides support for
your skills so you know if you're a
tress player and you make very quick
decisions about your next move if you're
a master chess player they're going to
be even move but the world is not like
the Tres board so it's more complicated
and in the world a relatively good move
is not necessarily successful so it's
much more complicated the relationship
between moves and and outcomes and
they're sometimes sometimes system to
slowing yourself down has advantages and
enables you to see things that system
one doesn't you've often talked about
and one of the things has given your
research such purchase is that people
often make mistakes because they're in
system one and even if they know that
they're in system one even if they're
aware of the mental shortcut or a short
circuit if you will that they're doing
they can't help themselves
well you know this isn't familiar to
everybody from visual illusion so know
there are those famous illusions we have
two lines and one looks longer than the
other and I tell you that there are
equal lengths and when continues to look
longer than the other
the problem is with what we call
cognitive illusions the illusions in
thinking that it's never quite as
clear-cut that you know you really
believe that you're wrong with a visual
illusion you really believe that you're
wrong but with the cognitive illusions
it continues to feel right so you have

38
an error somebody tell you it's in there
your better self tells you it's in there
but it still feels right can you give
you an example well you know there there
are people there psychopaths who who
instill a lot of confidence and you know
you shouldn't believe them because
you've been warned against them but you
feel warmth toward them and
and you feel that Oh would you must have
been told what you have been told must
be a mistake because you know that
person is so trauma that's a cognitive
illusion yes some some people trusted
Bernie Madoff and insisted that he was
good and although they were warned
that's the that's the key there was
something very compelling in him and and
the feeling that that he elicited was
stronger than the warnings system one
the intuitive fast thinking system in
which most people spend most of their
time operates in a state that you call
cognitive ease well system two requires
something you call cognitive strain when
you're taking the easy path of system
one what kinds of mistakes are you prone
to in the first place you are going to
act more impulsively you're going to act
quickly so if your impulses turn out to
be wrong you know if you're not a tres
player but you are sort of living in a
world with first impulses are not
necessarily wrong you may make mistakes
which by the way not all mistakes are
avoidable but there are some mistakes
that if you brought system two to bear
if you slow yourself down you could
avoid so when you are in a sort of free
flow mode of cognitive ease and system
when running the show you're going to be
more impulsive you're going to be more
emotional you're going to be more
optimistic and you're going generally to
follow your first impressions and your
first intuitions and isn't that good
haven't we read that your gut is right
90% of the time no it's not right 90% of
the time the chess players got if the

39
Tres player is a master is right 90% of
the time those are situations that allow
for scale but when we're dealing with
situations whether to invest in this or
that of whether to we're not always
there the first impulse is not
necessarily
right the first time

40
week 2 : slide 68 – Why Do You Feel Bad After Buying Stuff? Buyers Remorse

https://www.youtube.com/watch?v=MpCuLlmt-g8

Hello, fellow marketers, Professor Wolters here and today

we're in Santa Fe, New Mexico.
And today we're going to talk about is buyer's remorse, or if
you want the technical term for it, post-purchase cognitive dissonance.
Basically what this is, is you know that feeling you get after
you buy something and you go, "Why did I buy that?"
"Did I make the right decision buying that?"
"Is this the right school for me?"
"Did I choose the right place?"
Or "Did I rent the right movie for this date?"
Or "Did they pick the right restaurant?"
That kind of doubt you have after you purchase something or
make a decision,
that is buyer's remorse and customers have that.
And the thing is, is we as consumers have that, but also
companies have to realize that customers are going to have
buyer's remorse.
And so we need to do something about it.
Okay. Now, when you look at buyer's remorse, what you have
to realize is the more financial risk people put in there, and
the more important the decision is to them, the more chance
they're going to have buyer's remorse.
I mean, think about it, you're a lot more worried about planning
that great vacation, you're going to spend thounsands of
dollars on than you are, you know, picking which movie to go
to, which will cost you 20 bucks, right?
There's a bigger financial risk. Also, there's a more time commitment.
There's more, like I said, money, there's more safety things I got
to worry about, I'm going to go traveling.
You have all those things, there's a lot more involved.
There's a lot more money, those kind of things.
You're gonna have a lot more chance of buyer's remorse,
buying a car, right?
You're gonna buy a car, you're gonna shell out a lot of money.
Is this the right car for me?
Will the gas mileage be right?
Is it going to be okay?
You're going to be worried about that.
You don't have too much buyer's remorse when you buy a bus ticket.
I mean, here in Santa Fe, the bus tickets are like a buck.
So you're out a buck, "Oh, well, went the wrong direction, no big deal."
You buy the wrong car, you're out $50,000 maybe okay.
And so we kind of think about these things.
And so what companies need to do is make sure they're reassuring
their clients that they made the right purchase.

41
So that's why if you buy a new car a lot of times, after a
week, they'll give you a call. Hey, how's that new car going for you?
Is your Ford Expedition doing a- holding up okay?
Hey, don't forget to come in for your 30 day checkup?
Hey, six months in, they might call you again.
Hey, just want to see if everything's going okay.
Why don't you come in, we'll tune everything up, make sure
you're happy.
Because they know you've spent all this money, they want to
make sure you're happy to kind of cut back on that buyer's remorse.
But the thing is, you don't just want to say, "Hey, we want to
make sure there's no problems."
You also want to reinforce that they made the right decisions.
That's why you'll see all these commercials like Chevy
commercials always talk about the JD Power awards. Look at all
these awards we've won.
It's not just for potential new customers, it's also for
customers that already bought the product so they can feel
like "Did I make the right choice?
Well, they won all these awards, we must have made the right
choice, because everyone else thinks it's great."
And so you have those things out there.
And the thing is, buyer's remorse really will depend on
the client how their perception of risk is, and things like that.
Therefore, to find out buyer's remorse, a lot of customers will
do more research.
And it's like, if you're gonna buy a house, you're gonna
research the neighborhood, you're gonna research the
schools, resale market, who lives there, you're gonna drive
through the neighborhood, morning, noon, and night to see
what it's like to get a feel for what that neighborhood is like.
So you feel like you're making a better choice.
And the thing is, if you're selling products that people are
going to want to know all this stuff, you're going to want to
share that information.
That's why if you look on Zillow, which is a website that
lets you look at houses in the US.
It shows you the inside of the house, you can see what's there.
It shows you the rooms, the square footage.
It tells you what school districts it's in.
It tells you what the property tax was.
It shows some of the other houses in the neighborhood that
have been for sale and what those prices were.
It gives you an idea of what's out there.
So you can have a more informed choice.
So it's less likely you're going to have buyer's remorse.
And the thing is you can have this for anything, whether it's
making a college choice, right?
They're like, look, here's all the degrees we have, here's our

42
job placement, here's our alumni that come back and talk to us.
They do those things to help you reinforce to you as a college
student, hey, you made the right choice going to this university.
And so you have that.
So I hope this helps you understand what buyer's remorse
is or post-purchase of cognitive dissonance.
And if you want the technical definition, the technical
definition is post-purchase cognitive dissonance, the
internal conflict that arises from inconsistencies when
consumers question the appropriateness of their
purchase after the purchase.
Basically, "Did I mess up? Whoops, If I did- buyer's remorse?"
If not, you're good to go.
So I hope you don't have too much buyer's remorse watching
this video.
Maybe you do.
Maybe you don't, but hey, you know what, if you're studying for an
exam, this question is always on the exam.
So that might be a bonus for you.
So now you shouldn't have any buyer's remorse because you're
helped out at least for one question on your exam.
Anyway, I'll say bye from here in Santa Fe. If you like
marketing videos like this, hit that subscribe button, give us a
like and we'll say bye from here in Santa Fe.
And I'm having a little buyer's remorse because they have this
thing called the Margarita trail.
You get an app for three bucks and it gives you $1 off like 37
different margaritas.
And if you get a bunch of them, you get to have a free shirt.
I haven't quite got to the shirt yet, but but I'll get there.
Bye from Santa Fe.

43
Week 2 : Dig deeper (slide 76) – Paradox of choice : Too much choice ?

https://www.youtube.com/watch?v=ELNibAVpiWw

not so long ago a car was a holder or a

Ford a vacuum cleaner was a Hoover and
milk was just milk now
our choices have exploded my supermarket
has a hundred and fifty different kinds
of yogurts it's also about what kind of
work you're gonna do where we're going
to live the mobile phone plans two
mortgages choice is the mantra of our
modern economy if some choice is good
more must be better but do you ever
wonder if it's getting out of hand put
too much choice actually make you still
if there's one place choice rules
it's the USA I've come to Philadelphia
to the largest shopping mall in America
to meet a man who takes his choices very
seriously it's kind of insane because I
will I will have to know all the
different options within the choice yes
Nicholas Hall has always believed
there's such a thing as a perfect choice
take his attempts to buy a new mattress
normal people would have laid on a
couple of bed set oh I like this one and
then just bought it but no I had to make
the best choice there are water beds
air mattresses coil spring and like foam
mattresses like tempur-pedic probably a
good 2 or 3 months researching
mattresses and all we'll find out the
results of Nick's extreme mattress
shopping later meanwhile I'm off to
prestigious worth more college to meet
professor Barry Schwartz his questioning
of the merits of choice began with the
strange behavior of his students who'd
been given every life opportunity and I
was discovering as they neared
graduation they were miserable they were
tortured so what happened is they did go
and work at Starbucks or C equivalent of
Starbucks for a year or two hoping that
one morning they'd wake up knowing what
they were supposed to do then in 2000

44
Barry came across an astonishing
experiment which we're about to recreate
we've managed to get 24 different kinds
of jam to try and we're going to see how
many people buy
wonderful holiday Givens try them all
the study found that when 24 jams were
displayed lots of people came to the
table but hardly anyone chose to buy
that is that's the good one thank you
okay now we're gonna try just jams when
there were only six jams fewer people
visited the table but amazingly ten
times as many jams were sold when I read
this result a light bulb went on in my
head because everybody's business model
is to give people 24 jams or 50 jams or
a thousand jams on the assumption that
the more variety you offer people the
more satisfied they'll be with what they
choose so it is amazing
berry started running his own
experiments and a patent soon emerged as
choices went up satisfaction initially
rose but at a point surprisingly the
satisfaction line reversed direction it
makes the question why one reason is the
more choices we have the more we regret
the ones that got away choosing from six
jams means Fiverr rejected choosing from
24 means losing out on 23 we know from
lots of research that losses fueled more
bad than gains feel good the loss
involved in each of those knows mounts
up and it takes all the satisfaction out
of the thing you end up choosing there
is another reason there's simply a limit
to how many choices our poor brains can
handle here near the University of
Pennsylvania I've come to find out the
limits of my brain I'd like you to get
some bread for me pumpernickel a raisin
a country white psychology professor
Paul Rosen is testing how many items I
can hold in my working memory a
multigrain Tuscan and a wheat sandwich a
pumpernickel a sourdough and olive bread
a right sandwich and olive it's already
say that I bet saw the bread I can

45
remember
how'd you do well I got thick but I did
very well seven plus or minus two sixes
seven plus or minus two that's what you
should get that's how much we can hold
in our work so everything's yes more
than seven and our brains have to work
much harder grouping the options making
a sequence of decisions the cost of
exceeding the magic number is that you
have to do more processing segmentation
take more time it can drive you crazy it
shuts down the brain it produces
paralysis people freeze so what did Nick
do some like once he'd sifted through
200 odd mattresses I didn't buy one I
still have it like this 20-year old
mattress that like that my parents had I
still haven't
but there are far worse things than
wasting three months not choosing a
mattress earlier this year
Nick had to find a new apartment I
physically saw 50 apartments that does
not count all of the places that I
called all the people I just spoke to on
the phone it did make me depressed it
made me anxious and it made me unsettled
there has been an explosion of clinical
depression in the United States and
other developed societies so I have
suggested that one source of this
depression is that people have so much
freedom of choice and they don't know
how to make choices so they're
sufficiently miserable that it can
become clinical so Barry wondered if too
much choice could make people sick who
was most at risk read each item and
indicate how much you agree with it or
not on a seven-point scale should only
take you a couple of minutes he devised
a psychological scale to pick out the
extreme choosers he calls them
maximizers and tested 3000 people when I
watch TV are channel surf even while
attempting to renting videos is really
difficult I'm always struggling to pick
when shopping I have a hard time finding

46
clothing that I love
it turned out one in ten people are
extreme maximizers and that group are
less happy and far more prone to
depression yours is 32 which puts you
quite low on the scale and you I've seen
worse with a score of 61 Nick now
realizes he is an extreme Maximizer
inspired by Barry he's trying to limit
the number of options he considers to
just a few and I'm finding that hey I
made this choice and it worked out just
fine
and I was okay and I could go on with my
life so wow that's you know that's novel
yeah in fact avoiding options is how
most of us cope with the choice
onslaught after all how many of us have
the same breakfast or lunch every single
day and while no one wants no choice is
it time for society to realize there is
such a thing as too much choice I've
been asked now to talk twenty or thirty
different gatherings eyes light up and
people are sort of sitting on the edge
of their chairs and it's not because I
know something they don't know it's
because I've put a name to something
that they experience in their bones on a
daily basis this worship of the God of
choice has just gone too far

47
week 2 : Dig deeper (slide 76) - Recap of the purchase decision process : MBA 101:
Marketing: Consumer Buying Process

https://www.youtube.com/watch?v=Afl1vmcFVD8

hello and welcome to another can Indian

channel feature this video is a part of
series lecture 4 intro to marketing
course in this video we will be
discussing the following number one
consumer buying process and number two
how marketers create value far too often
retailers think that consumers buying is
randomized that certain products appeal
to certain customers and that a purchase
either happens or it doesn't they
approach products and service marketing
in the same way based on trial and error
what if there were a distinctive set of
steps that most consumers went through
before deciding whether to make a
purchase or not what if there was a
scientific method for determining what
goes into the buying process that could
make marketing to a target audience more
than a shot in the dark the good news is
it does exist the actual purchase is
just one step in fact there are six
stages to the consumer buying process
and as a marketer you can market to them
effectively number one problem
recognition put simply before a purchase
can even take place the customer must
have a reason to believe that what they
want where they want to be or how they
perceive themselves or situation is
different from where they actually are
the desire is different from the reality
this presents a problem for the customer
however for the marketer this creates an
opportunity by taking the time to create
a problem for the customer whether they
recognize that it exists already or not
you're starting the buying process to do
this start with content marketing share
facts and testimonials of what your
product or service can provide ask
questions to pull the potential
customers into the buying process doing

48
this helps a potential customer realize
that they have a need that should be
solved
number two information search once a
problem is recognized the customer
search process begins
they know that there is an issue that
they're looking for a solution if it's a
new makeup foundation they look for a
foundation if it's a new refrigerator
we'll all the newest technology thrown
in they start looking at refrigerators
it's fairly straightforward as a
marketer the best way to market to this
need is to establish your brand or the
brand of your clients as an industry
leader or expert in a specific field
methods to consider include becoming a
Google trusted store or buy advertising
partnerships and sponsor prominently on
all that material and collaterals
becoming a Google trusted store like my
previous company I happy novelty a
leading dealer of party products allows
you to increase search ranking and to
provide a sense of customers security by
displaying your status on your website
increasing your credibility markets to
the information search process and keeps
you in front of the customer and ahead
of the competition number three
evaluation of alternatives just because
you stand out amongst the competition
does not mean a customer will absolutely
purchase your product or service in fact
now more than ever customer want to be
sure that they have done turtle research
prior to making a purchase because of
this even though they may be sure of
what they want they'll still want to
compare other options to ensure the
decision is the right one marketing to
this couldn't be easier keep them on
your site for the evaluation of
alternative stage leading insurance
provider kinetics in Canada allows
customers to compare rates with other
insurance providers all under their own
website even if the competition can

49
offer a cheap price this only simplifies
the process it establishes a trusting
customer relationship especially during
the evaluation of alternative stages
number four purchase decision somewhat
surprisingly the purchase decision falls
near the middle of six stages
off the customers buying process at this
point the customer has explored multiple
options they understand pricing and
payment options and they're deciding
whether to move forward with a purchase
or not that's right at this point they
could still decide to walk away this
means it's time to step up the game in
the marketing process by providing a
sense of security while reminding
customers of why they wanted to make the
purchase in the first time at this stage
giving as much as information relating
to the need that was created in step 1
along with why your brand is the best
provider to fulfill this need as is
essential if a customer walks away from
the purchase this is the time to bring
them back retargeting or simple email
reminders that speak to the deed for the
product in question can enforce the
purchase decision even if the
opportunity seems lost step 4 is by far
the most important one in the consumer
buying process this is where profits are
either made or lost number five a need
has been created research has been
completed and the customer has decided
to make a purchase all the stages that
led to a conversion have been finished
however this does not mean it's a sure
thing a customer could still be lost
marketing is just as important during
the stage as during the previous
marketing to the stage is
straightforward keep it simple test your
brands purchase process online is it
complicated are there too many steps is
a low time too slow can a purchase be
completed just as simply on a mobile
device as on a desktop computer ask this
critical questions and make adjustments

50
if the purchase process is too difficult
customers and therefore revenue can be
easily lost number 6 post-purchase
evaluation just because a purchase has
been made just because the purchase has
been made the process has not
in fact revenues and customer loyalty
can be easily lost after a purchase is
made it's inevitable that the customer
must decide whether they are satisfied
with the decision that was made or not
if a customer feels as though an
incorrect decision was made a return
could take place this can be mitigated
by identifying the source of dissonance
and offering an exchange that is simple
and straightforward however even if the
customer is satisfied with his or her
decision to make the purchase whether a
future purchase is made from your brand
is still a question because of this
sending follow-up surveys and emails
that tank the customer for making a
purchase are critical this customer
behavior can also be called as cognitive
dissonance
I bought a premium coffee maker recently
I registered it online for receiving
online orders and discounts for the pods
after a couple days I received a
postcard from this company thanking me
and congratulating me for the purchase I
felt really good about receiving the
card and especially making the purchase
this step ensures that the customers
wouldn't be returning the item due to
cognitive dissonance take the time to
understand the six stages of the
customer buying process doing this
ensures that your marketing strategy
addresses each stage and leads to higher
conversion and long term customer
loyalty next we will look at how
marketers can create value value is
result of an evaluation as to cost or
benefits of a particular product or
service the assessment of the value is
derived from needs and wants leads are
something that a consumer requires for

51
example food water clothing once our
goods or services there are not
necessary but that we desire or wish for
for example needs could be clothes but
wads could be designer clothes let's
take an example of say Samson who sends
you a box of assembly of the newest
phone parts it may not add value to you
as a consumer until it's assembled and
the Android software
has been loaded on the phone when
Samsung uses a raw material assembles it
it has created a form utility hence if
the phone may cost 1:25 to manufacture
they will sell it to the consumers for
seven to eight hundred dollars let's
look at an example of the time utility
McDonald's has a restaurant all across
the world and Esper demographics they
stay open 24 hours in this way the
customer can patronize McDonald's
business at any time of the day another
example would be extended hours during
Christmas most retailers will stay open
an hour late or open an hour early to
cash in on the holiday shoppers the next
way that a marketer can add value
through utility is place utility Walmart
as a retailer has tried to incorporate
one stop shop for consumers you can get
your oil change in the car get a haircut
get pictures taken and do your groceries
all at one place at the same time their
strategy is to increase convenience for
the consumer next example is a business
at the airport it provides utility for
the consumer for last-minute shopping
needs the price may be a little more but
it's built as a convenience for the
customer if you remember the old Apple
advertisement about thing different if
you haven't watched this advertisement I
highly suggest that pause this video and
check out that ad Steve Jobs always
cleverly position Apple as a cool
product it tried to change the customers
perception to sway away from IBM or
Windows product to purchasing Apple
products even though it was an expensive

52
platform this is a prime example of how
a clever marketer Steve Jobs capitalized
on ownership utility another example
would be if you ever decide to purchase
a new car you will probably look at the
advertisement in the newspaper then was
it the car dealership after you've
decided to narrow down on the car you
want the salesperson would state about
all the extra features that you can add
they will then offer you 0% interest and
then add the cost of the extra features
onto the vehicle although it might seem
really
smaller the monthly payment it will add
up to a substantial amount at the end of
the finance term the sales may state
it's all the additional $50 or your
monthly payment which makes it really
affordable this is an example of
ownership utility thank you for watching
this video hit like if you enjoyed it
there will be series of other videos on
the MBA course starting with
introduction to marketing subscribe for
additional videos this is Ken Indian
channel signing off peace

53
Week 3: Slide 8 - Coca-Cola: Real-World Data Analytics Example | Google Data Analytics
Certificate

https://www.youtube.com/watch?v=JIcXC_3Gfow

SPEAKER: Previously, we learned about what a data analyst does

and why that work is so valuable.
Now, let's look at where data analysts actually
do their work.
You'll learn much more about the industries
you could work in as a data analyst
and how companies in these fields
are already using data analytics to do some really cool things.
There are so many businesses out there
that have a big need for the skills you're
learning right now.
Across industries like technology, marketing, finance,
health care, and so many more, real companies
are already using data analytics to stay ahead of the curve.
And the more they use data in their business,
the more they understand just how important data analysts
like you are to their success.
Let's look at a real-life example of a brand
you'll probably recognize--
Coca-Cola.
Data is changing the way Coca-Cola approaches
its marketing strategies.
Coca-Cola uses data gathered from consumer feedback
to create advertising that speaks directly
to different audiences with different interests.
How does this work?
You know those high-tech Coca-Cola vending machines
you see at movie theaters sometimes?
It's always fun getting to make your own flavors.
Well, those machines have built-in artificial
intelligence and data analysis tools.
This helps Coca-Cola see all the different kinds of flavor
combinations people are coming up with,
which they can then use as inspiration for new products.
How cool is that?
Ever wonder how Google gives you the right answer
to any question in just seconds?
That's powered by data too.
We use all kinds of data to determine a website's
reliability and accuracy to make sure you
get the most useful results for any search you make.
But it isn't just big companies like Coca-Cola and Google
that use data.
Small businesses everywhere are also

54
starting to take advantage of data-driven insights
to improve their operations and make better decisions.
Small businesses can use data to do all kinds of things.
They might use data analytics to better understand
their customers buying habits, create
more effective social media messaging,
or, in the case of one city zoo and aquarium,
predict the number of daily visitors
based on local climate data.
City Zoo and Aquarium realized that on rainy days,
they were seeing huge drop-offs in attendance.
But they had no way to accurately predict when
those rainy days would hit.
This made staffing a real challenge.
Some days, they found themselves overstaffed.
Other days they were unprepared for the rush of visitors.
To deal with this, data analysts took years of weather records
from the zoo and used that data to accurately predict
future weather patterns.
This made it easy for the zoo to know how much staff they
needed when.
Because the zoo could predict and manage their staffing needs
more accurately, they were able to provide a better experience
for visitors and dedicate more resources to creating a better
experience for the animals too.
We see a similar thing in the health care industry.
There, data analysts look at clinic attendance data
to help hospitals and doctor's offices
predict when rush hours will hit so they can be ready for it.
Your local city hospital is a great example.
Let's say they've been getting complaints about long wait
times.
Sometimes, an hour or more, which
made it hard for some patients to get the care they needed.
So data analysts use data about the hospital's daily foot
traffic to help them make more informed decisions
about how many doctors they need on staff at any given time.
This helped reduce wait times, improve their patient's
experience, and make better use of the health care worker's
time too.
Like I said, there are many ways that companies
in different industries put data to use,
but they can only do that if they have data analysts
they can rely on.
So you might be wondering how you fit into the equation.
Well, you've got plenty of options,
but you don't have to decide what industry you
want to work in right away.
There will be plenty of time to think about that as you make

55
your way through this program.
By the time you finish this program,
you'll have the core skills that will
make you valuable in any industry that
makes data-driven decisions, which, as it turns out,
is most industries, even zoos.
Congratulations on finishing this video from the Google Data
Analytics Certificate.
Access the full experience, including job search help,
and start to earn the official certificate,
by clicking the icon or the link in the description.
Watch the next video in the course by clicking here,
and subscribe to our channel for more from upcoming Google
career certificates.

56
Week 3: Slide 26 - Data 101: First, Second and Third Party Data

https://www.youtube.com/watch?v=mZXjrHOPIag

so who owns the data this is another way

of differentiating data and describing
it so we have lots of different ways you
know of who owns the data you got first
party you got second party and you've
got third party I'm gonna dig into those
a little bit more so first party data
this is the data that's collected and
owned by the brand this is usually free
differentiated and highly relevant to
that brand so this is gonna include
transactional and quantifiable data
online behavior that the collecting via
their website or their app CRM data
subscription and membership data in
social data and here's an example of how
you would use that so if a brand tracks
the online behavior of somebody they're
subscribed as on their website and then
that brain can then use that data to
retarget campaign based on the end users
online behavior we've all seen that ad
that follows us around that pair of
shoes that we really liked what we
decided not to get because they were too
expensive so second party data this is
gonna be another company's first party
data that's gained from a strategic
partnership it's not broadly sold and
available and only available to those
within the agreement so a perfect
example of this is going to be a credit
card with with an airline so if through
a partnership I get a credit card is
gonna gain access to the Airlines
audience data and then they can use that
for targeting next third party data this
is more of the world that I live in this
is gonna be paid online and offline data
made available to advertisers for
insights targeting and measurement this
is broadly sold and easily available
you're gonna find this in all of the
media platforms so here's an example a
woman's apparel store wants to drive

57
more customers to the store so they're
gonna use third-party data then the
store now has access to the data of
women apparel buyers from women's
fashion sites ecommerce and store based

58
Week 3 : Slide 54 - Telling Stories with Data in 3 Steps (Quick Study)

https://www.youtube.com/watch?v=r5_34YnCmMY

Everybody's doing it, right?

You're not doing it?
You should be doing it.
You've been told you should be doing it.
Storytelling with data is the big thing.
[MUSIC PLAYING]
Well, it turns out you should be doing storytelling with data,
but it's a lot easier than you probably think it is.
Once you know the three elements of a story, setup, conflict,
resolution, you can start telling stories with your data.
Setup conflict resolution.
Every story ever told from the beginning of time
follows this structure.
It's really that simple.
Setup.
Charlie Brown runs toward the ball.
Conflict.
Lucy takes the ball away at the last second.
Resolution?
Ah!
And a setup is just some reality.
And by reality, we just mean a situation.
It could be fictional, but it's a reality
you've created for the story.
And then you have conflict, which has changed that reality.
Without change, there is no story.
You just have a bored audience.
The resolution is just the new reality
that the change creates.
So with that in place, we can now take a chart,
and we're going to break it down, pull it apart, find
the stories in it, find the setups,
the conflicts, the resolutions, and we're
going to rebuild it as a storytelling device.
[MUSIC PLAYING]
OK.
Now we're back with a chart.
This is Global Real Home Price Index.
The index is 100 and you see a bunch of lines for countries.
There's a gray line in there.
That's the aggregate as well.
This chart is really showing home prices
in a lot of different places in the world,
and that's where I'm starting.
So, I want to find the stories in here.

59
And the first thing I start to notice, really,
are a couple of things.
I obviously noticed that big hump on the green line there.
That's Japan.
And I noticed that point where everything comes together.
To me, that immediately says those are probably
two places where there's conflict,
but I realized something as I'm looking at this,
and I'm glad I did, because otherwise,
I would have had the wrong story.
And that is that these home prices are indexed to 2005.
So, the fact they come together there at 2005
doesn't mean the prices came together.
That just means those are the dollars
that the people who made the chart
used to show the change in house prices over time.
So, there's really no conflict there.
And in fact, I think that's my setup.
That's where we start, because that's where they started.
I can still tell those two stories on the left
and on the right, but I start there
instead of at the beginning of the chart.
I can look backward and say, home prices rose steadily
in most places in the world for 30 years
except for in Japan, which experienced
a three decade long bubble, and that is a perfectly good story.
The setup is home prices rose steadily in most places,
except in Japan, which is the conflict.
And the resolution?
It experienced this 30 year bubble.
And then working from 2005 to the right,
I have another story, which is that there was a smaller house
bubble, housing price bubble in most places except Japan.
So now, the story has flipped, but something different
happened this time, and that is that the market's bifurcated.
And you ended up with three markets, Australia, Canada,
and New Zealand rising again, looking
much like a bubble, and the rest falling
and then rising back to about 2005 levels.
So, I've really started to see a couple of stories emerge here.
One, both starting in 2005, because that's
where our prices start, and one sort
of working backward in time, and one working forward in time.
[MUSIC PLAYING]
OK, so I'm going to spare you most of my sketching
because it's so messy and chaotic,
it probably would just give you a headache.
But I did a bunch of sketching, and I
arrived at these final charts.

60
And I've split the chart up into a couple of states.
It really helps your audience focus.
So, here's my setup.
You can see it.
Prices rose steadily in most places in the world.
I try to use my titles to actually reflect the story
and hear.
The steady increase reflects that setup.
Instead of just using a generic title about global real home
prices, which is boring and not helpful,
the title can really do some work for me here.
And then, I want to add the conflict and resolution
state, too.
There it is.
You can see we've added Japan, Except in Japan in the title,
and that conflict and resolution becomes clear
that Japan was this bubble that lasted 30 years that was
different than everywhere else.
And you can see as I present this, it almost looks seamless,
as if I'm just showing you one chart that changes state.
So then I'm just going to repeat this process for going forward.
And you see here, I've included my setup, conflict,
and resolution altogether in one state.
You see that little bubble and then
you see the bifurcation of the market.
But the most important thing is, I've really
highlighted the elements of the story
in both cases and nothing else.
I've left out any information that might distract
from telling that story.
I've not focused on anything that
doesn't matter to telling that simple story of setup,
conflict, and resolution.
Narrative is the most powerful, most human tool
we have to communicate.
If you can apply storytelling to your data,
it creates an emotional connection with the audience.
They're not only going to believe what you show them,
they're going to feel it.

61
Week 3: Dig deeper slide 62 - Myths and Realities of Data and Machine Learning in
Marketing

https://www.youtube.com/watch?v=kVxNRigNlZg

there's no doubt of course that we can

automate many and many of the tasks that
underlie the marketing advertising
business today and that could be very
valuable but there's always going to be
room for the human perspective
[Music]
I'm gonna talk to you today my topic is
machine learning and data and I'm not
really gonna get into the weeds of what
machine learning is beyond just saying
this it's a means by which computers can
effectively solve problems or derive
insights without being explicitly
programmed or having rules to do so
that's all I'm gonna say about it
instead I'm gonna turn to talking about
the myths and realities of how data and
machine learning apply to business
from specifically my vantage point
within advertising industry which is on
the technology side so a little bit
about me you heard a little bit
previously but I started off my
professional career as an academic
received my PhD in mathematics
specifically said her studying geometry
and general relativity and black holes
that's the short shield black hole which
I was very familiar with in the olden
days I did a couple of postdocs first at
Stanford and the second one here at
Columbia just a couple buildings over
and partway through MIT realized that I
was miserable and I as much as I loved
the math and I loved the teaching I felt
like I was disconnected from the world
and not really able to use my whole self
as I said I'm not really going to get
into the weeds of what machine learning
is rather I'm going to present to you a
sort of a series of metaphors about the
content but before I do that let me
first ask you all a question how many of

62
you have seen saw the movie Black
Panther raise your hand Oh awesome and
those who hadn't seen it you're at least
familiar with it raise a hand okay so I
want to start by talking about a
vibranium now you may recall that
vibranium is this fictional metal that
sits in a deposit and solely within the
borders of the hidden nation of Wakanda
that black panther comes from and it has
these uncanny third thermodynamic and
kinetic energy properties that he uses
in his suit and it has boots to give
rise all kinds of superhuman actions
that he's able to take and it causes the
local flora and fauna to mutate giving
rise to an herb that when ingested
gives one speed and endurance and in
agility and extrasensory perception and
healing powers and the ability to see in
the dark and to hear heartbeats and on
and on and on so I don't in any way mean
to diminish the really cool and
intricate lore underlying the
storytelling of how exactly vibranium
gives rise to the power of the wakandan
people but you gotta at the end of the
day you gotta admit it's a comic book
universe and vibranium is sort of this
all-purpose source of power right which
is kind of akin to how we here machine
learning and AI being used in the
industry it's this all-purpose source of
power that's gonna solve all your
problems now we know that the reality is
a bit different than that and I'm going
to my goal for today is to try to
separate the fact from the fiction
around machine learning and AI in the
marketing industry so if you take one
thing away from my talk today let it be
this machine learning is not vibranium
okay well the specifics here that I want
to dive into are focused on three
specific areas this as data and machine
learning apply to strategy of your
business the organization of your
business and people so let's start myth
number one creating a data and machine

63
learning strategy is a one-and-done you
gather together some experts you do your
research you sit in a room you create
your strategy and there you have it your
data and machine learning strategy once
and for all
well the reality is much different data
and machine learning is not a
one-and-done it's a new ingredient for
strategy in every part of the business
the metaphor I want to give you for this
is think of it like our favorite
thirteenth element aluminum now aluminum
has thousands of uses today in
automotive industry and aircraft
household and building you name it
aluminum shows up it's an amazing
gradient by the way my metaphor extends
a little bit here because when it was
first discovered aluminum was actually
thought to be very rare and the French
crown jewels actually feature bars of
aluminum because it was thought to be
this newly discovered rarity but not
long after they discovered that actually
it's one of the most common metals on
the face of the planet and it's now
everywhere so maybe some day machine
learning won't be like that to the
severity that we all hold up but
everywhere but the point here is
aluminum is not something that you sit
down and think to yourself what is my
aluminum strategy know you have your
business strategy and you look to see
how aluminum can help solve the problems
that each part of your business whether
that's to make a better product or make
it more efficient or safer or cheaper so
I submit to you then that machine
learning and data science and data are
like the aluminum for marketing and
other businesses as well let me turn to
the marketing our marketplace
advertising marketplace rather and talk
about how it fits in there now I say
marketplace but the advertising
marketplace isn't just one marketplace
there's a whole spectrum of these

64
ranging from television up fronts linear
television on the one in two hand sold
digital advertising in the middle all
the way out to the RTB or real-time
bidding marketplace on the far end for
those who may not be familiar real-time
bidding is that means by which
advertising is bought and sold via
instantaneous programmatic auction every
time a browser loads or an app comes up
a call a sent an auction is held and the
winning bid the winning advertiser gets
the privilege of serving a creative in
real-time in milliseconds and that's the
business that AppNexus was in so much of
the work in my experience has been
deploying machine learning into that
real-time bidding marketplace let me
give you a few examples
first of all using our proprietary
technology for our real-time bidding
marketplace we deploy machine learning
algorithms to help determine that bid
price that has to be calculated in
milliseconds on behalf of an advertiser
to decide on the basis of what website
it's coming from what user it is what
time of day what the advertisers goals
are how much to bid which then in turn
determines whether or not they're likely
to win great use of machine learning on
the sell side on this of our marketplace
supporting publishers with their
monetization of their content we have
machine learning algorithms that help to
set reserve prices or floors per action
to help protect their bottom line their
monetization or to help determine
whether to allocate a given impression
to a guaranteed deal that they have
already sold versus something coming
from the spot market RTB market helping
publishers monetize we have algorithms
that support the marketplace in itself
to create more efficient more liquid
marketplaces so just as an example here
providing the means by which buyers
whether they're using our proprietary
technology or not can buy not just

65
impressions but actually video completes
or views we arbitrage on the back end so
that they only pay if they get the
outcome that they're looking for and
finally my team focused a lot on
marketplace safety so that little four
is intentionally placed between the
supply and the consumers because we're
doing both we're cleaning the the
traffic that comes in to the platform
ensuring that it's human and not bot
traffic and also making sure that the
supply meets the criteria for our
marketplace for instance not piracy or
hate speech or pornography so these are
all different ways that we've deployed
machine learning in the RTB marketplace
but when AT&T acquired app Nexus I think
of it as me acquiring a new arm to the
data science team and that team is
looking at interesting ways of using the
AT&T data to enrich this marketplace the
future xander marketplace even further
so how are they doing that well they're
taking the
pterri AT&T identity data in an anomaly
in an anonymized privacy safe way and
looking to see how we can push that into
the marketplace to allow advertisers to
connect users across screens their
different viewing experiences we're
using our proprietary media assets and
understanding how consumers engage with
media how that ties to the metadata
around the content how they then engage
with brands whom they see through that
content and get deriving insights from
that feeding back into the marketplace
and finally perhaps most apropos for
this audience looking to see how we can
understand that consumer data to provide
insight about the audiences that
marketers are hoping to reach and where
they are in their customer journey and
eventually tying that all back to
attribution around their brands so I
hope you've seen how that there's not
one overarching data and machine
learning strategy for zander there are

66
many places in which it ties in all in
service of the broader vision of the
converged xander marketplace and while
you all may not be running marketplace
companies I submit that you probably
have many different parts of your
strategies as well and should think of
machine learning and data as a raw
ingredient to be used in those areas as
well so next myth machine learning is
best left to the experts in a data
science organization now at the face of
it this has to be true you probably want
to have your machine learning experts
actually designing and deploying your
machine learning algorithms fair enough
but the reality is slightly more
complicated than that machine learning
and data science must directly interface
and engage with the business in order to
derive to drive results you do not want
them sitting off in a little silo to the
side so in order to explain this further
I'll give you another metaphor for
machine learning this time electricity
this metaphor was made famous by Andrew
eing a few years ago who said
that he believed that machine learning
and artificial intelligence would be to
the 21st century what electricity was to
the 20th meaning that it would
one-by-one transform every industry I
actually think that's true and I think
that the metaphor is powerful because
when you think about what it means to
have electricity transform an industry
that gives you some sense of what it
means to have data and machine learning
transform an industry so for instance
suppose you're running some sort of a
manufacturing operation and you want to
electrify your factory you don't hire a
bunch of electricity experts and put
them over in some corner no they're
gonna come look at all the different
parts of your business from your tooling
to your platform to your infrastructure
and address those one by one according
to the business need and by the way once

67
you've meant once you've electrified her
your factory you're gonna have to make
sure that you keep an eye on your supply
chain making sure that you have a full
supply of electricity coming in at all
times and it's reliable so similarly as
we bring machine learning and data into
our organizations we have to think
one-by-one about what that means in
terms of platform and tooling and
priorities and by the way making sure
that we look after our data supply chain
let me give you some sense of what
that's looked like app Nexus this slide
was is adapted from a talk I gave at the
very end of 2014 when we were just on
the cusp of the modern age which is why
it it ends at 2015 just when I'd been
made chief data scientist and I was
talking about the sea change that I'd
already seen then in 2015 just a tap
Nexus now Dark Ages is back before I
started when the company was founded but
in the years prior to when I started in
2012 the company was producing a large
amount of data so I would say was
plentiful but it was essentially a
byproduct it was all reporting data on
behalf of the fundamental service being
offered by the platform nobody was
really using that data very effectively
or when they were they had to use
incredibly sophisticated mathematics on
top of the data because it was so rigid
that in order to drive any insights you
had to be very
very subtle now as the data science team
was created we we then found a new home
in engineering and started being able to
customize some of the data we started
being able to pick some of the variables
we wanted to work with and create our
new aggregations and get better tooling
and start actually using some machine
learning techniques so this was the
beginning of the electrification if you
will and then around the time that I was
made chief data scientists we turned
data science into its own organization

68
and built out that started building out
in 2015 and that it took took place over
the course of a few years a true
platform by which the team could go and
access all the raw data that they wanted
to extract insights and drive machine
learning algorithms to create the value
for the market place that you saw in a
previous slide now you may say well you
just started this section by saying that
you didn't want to have your own machine
learning experts sitting off in some
organization that they needed to be
integrated into the business but here I
am saying that data science became his
own organization and that's when we
started achieving some success but the
point here is that from the time that we
came became our own organization we
started having to make an explicit
intentional decision to integrate with
the business rather than already being
integrated into a product or engineering
team we started having to operate in a
trifecta manner this slide is adapted
from one that I presented to the company
right when we we became an organization
of top-level organization and I was
saying where does data science fit in
right here we have to operate in
lockstep with product and engineering
organizations to make sure that we're
solving the right problems and then
appropriately executing them for the
business now again I'm speaking from an
advertising technology perspective and I
know many in the room are not but this
generalizes I think pretty directly to
probably your own businesses as well
when you have machine learning in the
mix you need to ensure that it is
operating in lockstep with the people
who know what the business needs are
what part of the factory needs to be
electrified where you're going to derive
that benefit and in lockstep with
whomever is going to
executing that vision whether it's a
services organization or a sales

69
organization or whatever the insights
are that you're gonna plug back into
your business you need to make sure that
they're operating always in lockstep not
a siloed organization okay and finally
myth number three this one is very
common it's almost in the water it feels
like machines will replace human
intervention in marketing
there's a lot of fear underlying this
myth but I think the reality is machines
can do a lot but they cannot do
everything in marketing which seems yeah
let me go in thinking about what
metaphor to use for machine learning and
data for this myth I thought long and
hard and realized that it's the simplest
thing possible at the end of the day
machine learning his machines so the
image on the slide here shows go you may
be aware that deepmind recently beat the
world's best go player at go which was
thought to be sort of an insurmountable
hurdle in artificial intelligence some
time ago and I have to confess that I
was a little bit sad when that happened
but at the end of the day even as smart
as that particular machine was it was a
machine it was solving a problem that
was confined to a specific task with
specific parameters in a specific end
goal and that is what machine learning
does today so there's no doubt of course
that we can automate many and many of
the tasks that underlie the marketing
and advertising business today and that
could be very valuable but there's
always going to be room for the human
perspective humans to understand what
patterns are emerging from the data look
at all of that understand the humans
behind that data behind those patterns
and bring that to novels storytelling
formats originality creativity
because that's how our culture evolves
is through this creative evolution
that's not confined a specific task
after a specific task at the end of the
day humans have something that machines

70
will never have at least not in any kind
of future eyes Percy other than a
science fiction one and that is empathy
and that makes all the difference
thank you

71
!! Week 3: Dig deeper slide 62 -

https://learning.qlik.com/pluginfile.php/249083/mod_resource/content/8/DL-Marketing/DL-
Marketing.html

pas de script

72
Week 4: Slide 8 - What is Strategy?

https://www.youtube.com/watch?v=TD7WSLeQtVw

since this is a strategy course it seems

only natural to start with a discussion
of what strategy is and what it isn't
first consider the following strategy
statements drawn from actual documents
and announcements from well-respected
companies
our strategy is to be the low-cost
provider we are pursuing a global
strategy
the company's strategy is to integrate a
set of regional acquisitions
strategy is to provide unrivaled
customer service
chick intent is to always be the first
mover
our strategy is to move from defense to
industrial applications
what do these strategy statements all
have in common well first of all none of
them are actually strategies they
represent tactics goals objectives and
descriptions but not strategies they are
mere strategic threads small components
of overall strategies
the problem is that in recent years
strategy has become something of a
buzzword
whenever we want to sound smart and
demonstrate our business acumen we just
make sure the word strategy shows up in
our ideas
the result is that we now refer to many
mundane and uninteresting aspects of the
business as being strategic when there
are really only small pieces of the
overall business strategy
so then what is the strategy
being clear about what a strategy is
will help us understand more clearly
what a strategy is not well the word
strategy originally comes from the Greek
word Strategos meaning the art of the
general

73
in other words the origin of strategy
comes from the art of war and
specifically the role of the general in
a war in fact there's a famous treatise
entitled the art of war that is said to
have been authored by its son sue a
legendary Chinese general around the 2nd
century BC strategists consider the art
of war to be one of the great
masterpieces on strategy
in the art of war the goal is to win
winning is good and losing is very very
bad
can you imagine the great Hannibal
saying something like our strategy is to
beat Rome No Hannibal's goal was to
defeat Rome his strategy was to bring
hidden strengths against the weaknesses
of his enemy at the point of attack to
achieve that goal such as crossing the
Alps when the enemies did not believe he
could the general is responsible for
multiple units that must work together
to win the battle and the war
the way the general adds value to the
battle is by providing high-level
orchestration and vision
that is he can see what the field
commanders cannot great generals think
about the whole and they work to
coordinate all the necessary pieces even
sacrificing some pieces when necessary
in order to ensure that the overall goal
is achieved
we sometimes think of businesses
modern-day war but the casualties are
more frequently investor pocketbooks
rather than human lives the challenge of
the executive is similar to the
challenge of the ancient general the
modern-day executive needs to develop a
set of complex tactics and activities
that lead to a victory so how do we know
what our strategy is or if we do not
have a strategy how do we formulate one
strategy provides clear and concise
answers to four key questions first
where do we compete
other words what competitive arenas or

74
markets will we be active in we define
markets as industries product markets
within those industries and geographic
markets second what unique value do we
bring to win in those markets in other
words why do our customers choose our
products and services when they could
have chosen the products and services of
any competitor out there
our unique value could be cost or
differentiation which includes image
customization styling reliability etc
third what resources and capabilities do
we utilize to deliver that value do we
have exceptional human capital superior
technology unrivaled network connections
or a unique reputation resources
generally refer to the things we have in
our toolbox these things can be tangible
such as a diamond mind or an oil field
or they can be intangible such as a
reputation capabilities generally refer
to the things that we can do or our
ability to use the things in our toolbox
fourth how do we sustain our ability to
provide that unique value are there
barriers to imitation are there factors
that keep our competitors from being
willing or able to replicate the value
we create for our customers this last
question focuses on understanding what
factors allow us to continue to win over
time
so one example of a clearly-defined
strategy comes from IKEA IKEA sells
relatively inexpensive contemporary
Scandinavian style furniture and home
furnishings to primarily young
white-collar customers all over the
world by being the first furniture
retailer to put stores in every major
country IKEA has greater scale than
local competitors the choice of markets
has helped IKEA offer their unique value
propositions of inexpensive fashionable
furniture IKEA sells this furniture in a
fun and low-pressure showroom where
order fulfillment is usually immediate
IKEA is able to sell inexpensive stylish

75
furniture because they've developed
excellent design capabilities for
inexpensive Scandinavian design but
perhaps even more important is the fact
that products are designed to be
manufactured by suppliers using mass
production techniques and then shipped
in flat boxes the flat boxes require
that final assembly is done by the final
customer but this dramatically drops
shipping costs because shipping costs
are so low
IKEA suppliers can manufacture furniture
and high volumes and ship it around the
globe
the complex interdependence of IKEA
strategy makes it difficult for
competitors to imitate because they
don't design their own furniture and
their suppliers don't manufacture
furniture and high volumes and ship from
flat boxes to imitate IKEA they would
have to completely change the way they
design manufacture and ship their
furniture note that we learn what IKEA
does but we also learned what IKEA does
not do IKEA does not compete in the
high-end furniture business IKEA does
not try to provide high levels of
service or customization to customers
IKEA designs most of its furniture but
does not try to manufacture its products
thus in addition to clearly articulating
why we win with customers a really good
strategy also provides a clear boundary
line signaling what we do not do it is
also important to note that what we've
discussed briefly over the last few
minutes is not in any way intended to be
comprehensive and there are many
important perspectives that are excluded
for example Henry Mintzberg
one of the most well respected business
strategists of our day would want to
emphasize the important differences
between an intended strategy an emergent
strategy and a realized strategy he
would want you to know that sometimes
strategy is really more about what you

76
actually do rather than what you intend
to do
that is your real strategy emerges as
you do it and may not line up with your
plans other strategists would not want
me to leave out the importance of
staging or timing you may have a great
plan but if you execute the plan with
poor timing it may fall flat to be
successful you also need to have a well
orchestrated set of time steps in order
to win in the marketplace in conclusion
since we cannot adequately cover every
experts opinion in just a few minutes I
really want to focus your attention on
the four questions we discussed before
as you strategically analyze companies
and/or develop your own strategies you
need to have compelling answers to these
four questions first where do we compete
second what unique value do we bring to
the table in those markets third what
resources and capabilities do we utilize
to deliver that value
and forth how do we sustain our ability
to provide that unique value when you
have these answers you will be well on
your way to articulating a clear
strategy

77
!! Week 4: Slide 23 –

https://hbr.org/video/3590615227001/the-explainer-marketing-myopia

pas de script

78
Week 4: Slide 81 - GENDERED MARKETING | The Checkout

https://www.youtube.com/watch?v=3JDmb_f3E2c

the wound isn't black-and-white it's

painted and available at Australian
Geographic from the moment we're born
its frills for girls and paws for boys
it's called market segmentation the
theory goes that dividing consumers up
into smaller groups is good for business
and what easier way to divide humanity
then buy the junk between our legs
custom don't confuse sex with gender and
what easier way to divide humanity than
by the totally valid personal
self-identification as male or female
actually gender spectrum and all things
in between but we actually don't want to
get into all that we just want to know
who's really paying for gendered
marketing is it me it's me isn't it you
know always been this way
in fact it used to be the other way
round pink being a more decided and
stronger colour is more suitable for the
boy while blue which is more delicate
and dainty is prettier for the girl
by the early 1970s the split between
boys toys and girls toys seemed to be
eroding today that's all change
[Music]
that's right cute YouTube kid they
worked out that by segmenting the market
into narrow demographic groups they can
sell more versions of the same toy
that's why Lego ads used to look like
this build hotels animals people boats
skyscrapers and more but now look like
these new LEGO Friends
I just finished decorating my house time
to chill with the girls at the beauty
shop emma is styled and ready to go that
move tripled the number of girls using
Lego and scored the company a 25%
increase in global revenue but market
segmentation isn't just the kids by
making two versions of otherwise

79
identical products celebrity slim can
sell many more slim shakes and hair
dresses formula can sell more hair pills
and Gillette can sell more razors and
Cody's can try to sell more cordial and
fail
and it's not just about trying to sell
more it's about trying to charge more to
take this body glide an teach a farm
triathlon Lube it's a thing and it's
great for feet thighs and upper bodies
buzz OE well ladies we don't have upper
bodies we have feet thighs and prods
which is why we need body glide for her
weight
uh no bras on our upper body both so II
that's why our version costs nearly 60
percent more per gram than the original
because according to body glide we
ladies need a petite thighs product to
carry along convenient because there's
no way a woman could carry a normal body
and you don't have to be a loop using
triathlete to feel the rub of gender
marketing it comes with everything from
shaving cream and depilatory cream to
styling powder and eye gel and we might
not even realize it's happening because
we only look at our section of the store
and ignore anything that's not obviously
for us and it's not just color companies
also use shape texture packaging logos
verbiage graphics sound and names to
define the gender of a brand lighter
colors smoother edges floral motifs
softer lines therefore ladies
there's darker colors harder lines
square shapes and science we type
pictures minutes for men that's why this
pastel pack of tenor and countenance
pads for women features a pretty little
flower made of wee drops whereas the
men's packet has a grid and arrows on it
and very specific measurements go in the
7 mil I say nice now market segmentation
can backfire gender contamination is
where a product is so strongly
associated with one gender the other
gender refuses to buy it why don't they

80
just call it the cooties effect because
we're grownups
anyway it's much easier to get women to
buy men's stuff than it is to get men to
buy women's stuff picked of when they
entered the male skincare market they
realized the named of lacks macho
mystique especially when rendered and
slender italics and accentuated with a
stylized bird logo stylized birds are
totally for so they compensated
by printing men plus care in stand-up
capitals and by the use of a battleship
gray background
they even squared off the curves of the
iconic Dove soap bar to give it a more
manly appearance truly dudes are too
smart to just fall for girly goop and
drag no in one year they gain millions
of customers in 30 countries with a
hundred and fifty million dollars in
sales just by reminding men that Durham
haha
and aren't the only ones for men for men
for men for men for him men you'll also
see products with really stupid man
names to help encourage men to splash
them Mancow Ruger broke it brotox'
guyliner no you can't buy candles you
need mandals
in meat-and-potato gunpowder can't buy a
smoke and strippers man but don't worry
guys you're not the only ones being
patronized a couple of years ago Fujitsu
launched a computer for women the floral
kiss laptop for users with long
fingernails came with scrapbooking and
horoscopes software zirconia adornments
and a floral motif and for women who
couldn't use a computer does anybody
have a big brought out pens for her
thanks and today we have Bergen bread
for women's well-being they can call it
this because they claim it may help
maintain breast health they don't
mention mental being though despite also
claiming it may help maintain profit
health yeah but no one wants to think
about prostates when they're having a

81
sandwich look can't we just stop all
this dividing people Unilever found a
way to bring the genders together and
shaft them both to Unilever adjust their
french brand signal white now toothpaste
started out for the whole family but
then they launched a glittery gold
version for women and followed up with a
mannish version for men because they
said it will contribute to driving the
market up and it did although slightly
more for women so that's all kind of
depressing but it's hard to be sad in
this playpen don't worry if you don't
live in a playpen though there are some
other things you can do ask yourself am
i buying this just because it says it's
for my gender it might be worth checking
out the other half of the range if you
were willing to put up with grey
packaging and straight lines and don't
need your shampoo bottle to reassure you
that
come on
you could save a fortune

82
Week 4: Dig deeper slide 102 - What Happened To Fossil Watches?

https://www.youtube.com/watch?v=BlGalsye6pY
as they have grown in power
tech companies such as apple and fitbit
have also sought to conquer
a small strip of real estate on your
wrist
the watch the global watchmaking
industry has
certainly seen its fortunes change since
the introduction of the smartphone and
as demand for fitness trackers and smart
watches grow
however watches have not totally
disappeared higher-end swiss-made
watches have thrived in recent years
serving customers eager for beautifully
made timepieces that exemplify
traditional analog craftsmanship in a
highly digitized era
other legacy watchmakers have had to
adapt and give customers a new reason to
keep timepieces on their wrists
and one company that has especially
suffered is fossil
fossil was once a high-flying brand as
recently as 2014
it had 3.5 billion dollars in annual
sales
shares hit a high of 139.20
on april 5th 2012. the company's
worldwide net sales fell 27
from 2019's 2.2 billion dollars
to 1.6 billion dollars in 2020 and
shares have crashed to around twelve
dollars
as of may 24 2021 it closed and net 30
stores in 2020 and said it expects to
shrink its store count by another 65 to
75 total
in 2021. in addition to its own brand
fossil group also owns the michelle
misfit
relic skogen and zodiac names and it
makes watches for a number of companies
armani exchange bmw skechers
diesel dkny emporio armani
kate spade new york michael kors puma
and tory burch
the company has been licking its wounds
and repositioning itself in a tumultuous
time
when smart watches are taking over the
segment of the market brands like
fossil once owned i'm not saying it's
going to disappear
but it's a tough sell these days you
know especially in that smart watch
price band it's you're really fighting
upstream there
fossil has brought its own smart watches
to market initiated a multi-year
turnaround plan
grown its e-commerce business and
focused on growing markets in china and
india but will that be enough
[Music]
one of the things that distinguishes
watches is how they work
two of the major categories are quartz
watches and mechanical watches
for a long time all watches and clocks
were mechanical
mechanical watches use gears and springs
to keep pace with time

83
then in 1969 japanese makers such as
seiko began introducing quartz-based
watches
these watches are electronic and
typically battery powered the battery
sends electricity to a quartz crystal
which vibrates at a very steady
frequency
world standard of accuracy and that
frequency is used to measure
time quartz made watches a lot cheaper
a lot more available and a lot more
accurate than mechanical watches
the years that followed are sometimes
called the quartz crisis
or quartz revolution the 1980s
saw the rise of the fashion watch
perhaps best exemplified by the swatch
brand which made low-priced
quartz-based watches that often came
with eye-catching designs and bright
colors
throughout the 80s the swatch praise
grew and grew and you saw
these plastic 40 or less quartz
fashion watches but there was a
collectibility to it and a lot of them
were started trading at a thousand
dollars five thousand dollars
twenty thousand dollars it was crazy
it was in this environment that fossil
was founded in 1984
by tom carsodius a greek american
businessman
the business began by selling
inexpensive watches made in asia
the company was named after a nickname
tom kartsotis and his brother had had
for their father
as the fashion watch craze continued
fossil watches developed their own
cult following i remember in the late
80s early 90s there was really
a collectibility around fossil you had
collector groups you had people that
collected the tins that they came in
in fact if you go to fossil headquarters
in dallas there's a whole wall of these
tins that people have collected over the
years and
breakfast clubs that got together and
talked fossil
the company is based in richardson texas
and in december 2019
employed a total of 10 200 workers
in 2020 fossil made cuts to its
workforce and as of january 2021
employed about 7 500 people including
approximately 5 300 employed by foreign
subsidiaries
kartsotis left the company as its
chairman in 2010 when he
left to found shinola detroit a company
with somewhat similar products that
advertised itself as a made in america
brand
cart sodas brother costa who had joined
the company in 1988
took over the role of chairman in the
last
several years watches have consistently
comprised about 80 percent of fossil
total sales
as of 2021 its watch business can be
divided into
traditional watches smart watches and
hybrids
which are watches that look analog but
carry smartwatch features

84
fossil also makes and sells accessories
such as jewelry
handbags small leather goods and belts
for both their own brands and license
brands
these have accounted for anywhere from
about 16 percent to nearly 20 percent of
annual sales
since 2017. there is also a tiny
licensed eyewear business which
accounted for approximately a half a
percent of sales in fiscal year 2020.
fossil sells its products across 140
countries through
23 company-owned sales subsidiaries and
through a network of approximately 75
independent dealers in addition to its
headquarters in texas the company has
offices in hong kong and switzerland
most of its watches are made in
asia and sourced through a hong kong
subsidiary
in fiscal year 2020 about 43 of fossils
global watch production was assembled or
sourced
through wholly or majority owned
factories down slightly from 47
the previous year sales fell more than
27
in fiscal year 2020 compared with 2019
and nearly 13 in that year compared with
2018.
the company had a net loss of 96.1
million dollars in 2020
and 52 million dollars in 2019 compared
with just
three and a half million in 2018. fossil
said in its 2019
10k that changing consumer interests and
shopping patterns have led to a
challenging environment
watch wholesales to retailers have been
soft in both the u.s and europe as
consumers increasingly prefer
connected watches group sells a
mid-priced watch which puts it in a
crowded market and one that is
struggling with the growth of smart
watches
apple makes more watches than every
other brand combined
that smart watch purchase certainly does
cannibalize that that fashion watch
purchase so if you're a consumer
standing in a
in a busy department store watch
department
it's almost like being in a casino where
there's sensory overload there's
shiny little objects everywhere and
those fashion watches
are competing for those smart watch
dollars and they're just not winning the
fight
to be sure smart watches and other
connected devices that can keep
time are a potential threat to all
watchmakers but luxury watchmakers have
fared pretty well by serving a different
kind of demand
for something that represents heritage
analog technology
and old-school craftsmanship upscale
mechanical devices
appeal to customers perhaps because they
are not high-tech products
with a mechanical watch that's a
generally hand-assembled living
breathing mechanical watch that's

85
powered by its wearer so with proper
service by a watchmaker that watch can
last for generations so that becomes a
companion of yours that you wear on your
wrist throughout your
life's trials and tribulations and and
it becomes part of your story
so i think more and more consumers are
becoming aware whether it's through
social media
or better messaging from the brands
collector groups that
you know gee rather than a fashion watch
which is kind of disposable
maybe i should invest in a mechanical
watch
a whole ecosystem of enthusiasts
collectors publications and dealers have
coalesced around luxury watches
there's a strong secondary market and
even old ones can sell for remarkably
high prices
watches are one of those product
categories that doubles as a hobby
there's dedicated communities around it
i really have to give websites like ho
den ki a shout out here because
it has really built a loyal following
built its own community
and it has really great educational and
entertaining content for both novices
and experts
it isn't a perfect benchmark but one
indicator of the overall health of the
watch market is the health of exports
from switzerland
in 2019 swiss wristwatch exports reached
a historic low of 20 million units
a 13 decline from 2018 and below the
depths
seen during the financial crisis that
began in 2009
it is also worth pointing out that the
apple watch alone
outsold the entire swiss watch industry
in 2019
with 30.7 million units however
the value of swiss wristwatch exports
increased to 20.5 billion francs
about a 3 percent increase over 2018
that increase was almost entirely due to
the growth of high
cost mechanical precious metal or
bi-metal watches priced at over 3 000
francs everything else declined
especially steel watches
and quartz-based timepieces of course
2020 was a different story attributed
almost entirely to the coronavirus
pandemic
wristwatch exports were valued at 16.1
billion francs a decline of 21.4 percent
compared with 2019. the number of wrist
watches
sold fell 33 percent to 13.8 million
units
about a half century since the quartz
crisis decimated the swiss
watch industry high-end mechanical
watches are
thriving the quartz watches that once
threatened them with extinction are the
ones that are now struggling
faced with their own high-tech
challenger and getting a piece of the
smartwatch market
is tough when you think of the
smartwatch you also think of its
integration with

86
your phone and your computers the
consumers tend
to trust a technology company in that
sense so you're going to go to apple
because you've got the iphone you know
your apple file apple user
same with samsung it's going to
integrate with your galaxy phone
in addition to tech there are ongoing
troubles facing shopping malls
as of january 2021 fossils international
company owned store count numbered 152
retail locations
and 121 outlet stores brick and mortar
shopping makes up a considerable share
of fossil sales
fossil did not respond to a request for
comment
so what is fossil doing to turn its
business around the company has a four
point
plan underway the first is to boost what
it calls
innovation and storytelling basically
develop new products
and market them there is also from a
design perspective
a lack of newness kind of in the watch
category
it is an investment to come up with you
know new cases new styles
and i'm sure until they see that demand
they're not going to make
that investment in addition to the you
know headwinds of the smartwatch
second is stepping up its digital
business as customers increasingly shop
for goods online
third it is focusing on growing markets
in india and china
and fourth it is tightening its supply
chain lowering
costs and improving its overall
competitiveness
fossil began its new world fossil
initiative in 2016
a multi-year restructuring plan meant to
free up funds for investments in digital
marketing and new products
the company finished the first stage of
the plan in the third quarter of fiscal
year 2019
and delivered 200 million dollars of run
rate cost savings over a three year
period
the company is now in the second stage
which it calls new world
fossil 2.0 it involves reducing costs
and focusing on key growing markets
particularly in asia
and new products especially its
connected watches the company said in
may of 2021 that the plan generated 50
million dollars in expense savings in
2019
175 million dollars in 2020 and 53
million dollars in the first quarter of
2021.
in a presentation in september 2020
fossil said it believes its total
addressable market will grow
from 145 billion dollars in 2019
to 185 billion dollars by 2023
that is for everything watches leather
and jewelry
but will it be enough can a fashion
brand make it in this era where the
watches that are selling are high-end
timepieces or

87
computers there are some successful
direct
to consumer brands that might show the
way such as
olivia burton and mvmt or movement which
was bought by the movado group in 2018.
mvmt or movement is a great example
it started as a direct to consumer brand
and
built a following online through
instagram
in addition to having a great assortment
at a good price point
and now under movado it's really
succeeded in men's and women's and been
more accessible
at mass market there are also some
well-known legacy brands that have
managed to generate some interest and
buzz among mechanical watch lovers and
enthusiasts
one such company is timex which sells a
lot of lower priced quartz watches at
retail
much the same way fossil does and then
there's the timex
that's doing really cool stuff that's
bringing lifelong lovers like me
back to the brand so in 2017 timex came
out with their first
mechanical hand wound watch since 1982
and many of us were just dumbfounded for
199 we got this
hand wound mechanical reissue of the of
the
classic marlin watch it is just a sliver
of timex's business but it is making the
brand intriguing to collectors who care
about watches
like timex fossil does have a
recognizable name
that in its way does resonate with
consumers
fossil is a heritage brand it might not
be
at that luxury level of course of a
rolex but
it is a story brand and consumers
perceive it as
good quality timepieces three out of the
five top watch brands in sales are
exclusively smartwatch makers
apple samsung and fitbit but smart
watches brock says
can be a kind of gateway drug to the
world of watches which can benefit
companies that make a compelling product
most smartwatch wearers report that
owning a smart watch now
will not prevent me from buying either
now or in the future traditional watch
fossil's plan is to revamp its business
enough to survive
the question remains if it can reverse
its declines and lure buyers away from
gleaming new products made by apple
samsung and other massive tech firms
you
Anglais (générés automatiquement)

88
Week 4: Dig deeper slide 102 - Why You Spend So Much Money At Trader Joe's

https://www.youtube.com/watch?v=Q_QPClXo5MU

They just have those random little things that you didn't really
know you ever wanted and then can't somehow live without.
Today we are going to Trader Joe's.
Trader Joe's. Trader Joe's.
Trader Joe's. The gingersnap cookies.
The babka is unbelievable.
Coconut rolls.
Those are my favorite things I've ever had in my life.
The little signs with the corny jokes on them.
Is that crazy to say like it just has a better vibe?
People love Trader Joe's.
They really do.
Welcome to Trader Joe's, where super friendly workers help you
shop for things like kale gnocchi and vegan tikka masala.
Trader Joe's calls itself your neighborhood grocery store,
except it's grown way beyond your neighborhood to over 500 stores
nationwide.The late founder Joe Coulombe opened the first
location in Los Angeles County in 1967.
He then sold Trader Joe's to grocery giant Aldi in 1979.
The quirky grocery brand hasamassed a cult following among health
and value conscious shoppers.
It's so addicting.
Prices and quality put together is unmatched pretty much
anywhere else. Experts estimate Trader Joe's outsells all of the
competition when it comes to sales per square foot.
The company brought in estimated total sales of $13.7
Billion in 2019.
I'm at Trader Joe's right now.
The fan fervor around Trader Joe's has consumers begging for
more, even starting petitions for new locations.
There are none nearby.
And I've begged and beseeched.
There are even Instagram influencers dedicated to Trader Joe's
products. In terms of overall customer satisfaction, Trader Joe's
was the highest ranking national brand in Consumer Reports' 2019
ranking of grocery chains.
Customers report high levels of satisfaction despite the fact
that Trader Joe's is not necessarily convenient or a one-stop
shop. It has a limited selection of meat, produce and toiletries,
and there's no deli, self-checkout, online shopping or delivery
service.Sometimes I feel like they're missing key things that you
need to like make dinner.
I get it.I know I could get a larger and more affordable
selection of my diet staples like meat and produce somewhere
else. In fact, I live right next door to another major grocery

89
store.But twice a month I travel 100 blocks to shop at Trader
Joe's on72nd and Broadway in New York City.
I wait in massive lines at what's officially the busiest Trader
Joe's in the United States.
Then I carry two heavy bags up and down four flights of stairs
between the subway and my apartment.
Trader Joe's may not be the very best all around grocery store,
but it's not trying to be.
The company does certain things so well, it's built one of the
most passionate fan bases in the grocery business.
Here's how. The thing that's preposterous, right, is it's the
anti grocery store.
I often say imagine that I was pitching to investors the concept
of a new grocery store.
And I said, we're gonna have virtually no branded goods.
Nothing's ever gonna be on sale.
There's no coupons.
There's no loyalty card.
No self-checkout.
We're going to have cramped aisles and small stores with limited
selection. No TV ads.
Would you invest?
And people of course go, "No.
That sounds crazy."
Trader Joe's doesn't draw customers in with wide shiny aisles or
high tech shopping.
The company does minimal marketing and didn't have a social
media presence until just a few years ago.
Trader Joe's presents itself as a quaint local store.
Everything is hand-drawn, handwritten, and that gives the store a
very kind of low-key personal feeling.
It also gives a feeling that you're kind of in a market or a
local store that is not overly commercial.
Trader Joe's has I think really captured the culturalzeitgeist
in a way as far as not only tapping into the foodie culture, but
then also kind of the movement away from traditional and
established national or global brands and overly processed or
produced food.
The neighborhood market atmosphere helps shoppers feel that
they're making healthy and environmentally friendly choices.
In terms of sustainability,people have this warm, fuzzy feeling
and it's kind of reflected in the packaging.
Mark Gardiner is a former marketing executive who became
intrigued by the Trader Joe's brand.
So he worked as a crew member, stocking shelves and ringing up
customers at a Kansas City, Missouri location for a year starting
in 2011.
Then he wrote a book about it called Build a Brand like Trader
Joe's. Gardiner says Trader Joe's might look like a local store,

90
but its environmental impact is not necessarily better than other
grocery chains.
When I worked there, we had a product that was naan bread and the
naan bread was baked and frozen in India and shipped frozen to
Trader Joe's stores.
That's pretty crazy.
You can bake naan bread anywhere.
Trader Joe's has made efforts to be more environmentally
friendly, sometimes when under public pressure.
Trader Joe's may not operate just like a local market.
But the experience of being at one helps us feel good about our
shopping decisions.
The unique products that are only available at Trader Joe's.
Zhoug sauce. Haven't seen that anywhere else except Trader
Joe's.Teeny tiny avocados.
I feel like nobody else has those little avocados.
Trader Joe's presents itself as a local store, but one with
worldly connections.
Founder Joe Coulombe gave the store a south seas theme, complete
with Hawaiian shirt clad employees who are called captains and
crew members. The theme plays upon the idea of merchants sailing
the oceans to bring home diverse foods from around the world.
Trader Joe's product developers travel the world seeking
inspiration for these recipes.
They discuss trips to NewZealand, Japan, the Republic of Georgia
and beyondin an episode of the official company podcast.
They present their products as if they are local discoveries,
something that someone found when they were, let's say, traveling
Italy and they're now bringing it to you.
The result?Trader Joe's products feel specially sourced, truly
unique, and like they can't be found in other grocery stores.
The products seem even more one of a kind due to a generous use
of descriptive adjectives.
They don't just have cheddar cheese.
They have Wisconsin farmhouse cheddar cheese.
Or, you know, their gummy bears aren't just gummy bears.
They are fish shaped.
And so they're called Scandinavian swimmers.
Customers want to feel like they are smart shoppers.
If you can make them feel like they are in the know or that they
have found something that other people haven't, then that really
increases the value perception that they get from the price.
When an exotic new product comes out, you might get your hands on
it or you might not.
What makes Trader Joe's products seem even more special is they
come and go.
Trader Joe's regularly introduces new products and then
discontinues others since the stores are relatively small and
shelf space is limited.

91
So there's also this issue of scarcity.
If I like the item, buy it now.
I'm not sure it'll be here next month.
There is an element of impulse shopping that's going on right
because of the treasure hunt.
There's a sense of discovery — of things that feel rare and
urgent.Sometimes when I come home from Trader Joe's, I find
myself telling my husband everything I bought.
And your favorite lava cake.
It's almost like I'm bragging to him, like, look what I found.
And the process of making those discoveries is fun, too, because
it's not too overwhelming.
Trader Joe's stores are typically 10,000 to 15,000 square feet
in size. The average grocery store is about
40,000 square feet, while supercenters like Walmart or Costco
can exceed 200,000 square feet.Trader Joe's stores carry about
4,000 SKUs or scannable units of inventory.
The average grocery store carries about 30,000 SKUs, while
supercenters can hold four times that.
Researchers say too many choices can lead to paralysis.
It's easier to decide what you want when choosing from a smaller
selection of items like at Trader Joe's.
What customers really want is they want the perception of choice,
but they want the experience of no conflict, of less choice.
They want an easy choosing experience.
Sheena Iyengar conducted a well-known experiment that studied
just that. In the study, Iyengar set up a jam sampling station at
a grocery store. She found that more people purchased jam when
there were less options to choose from.
Customers also feel more confident they chose the best of what
was here. So the entire experience makes them feel both more
competent as well as more confident.
What Trader Joe's doesn't want you to know is that you can find
very similar or identical products at other grocery stores.
The company sells more than 80 percent private-label goods,
meaning they're made by third party manufacturers and sold with
Trader Joe's branding.
And Trader Joe's is notoriously secretive, especially about who
their suppliers are.
That way you don't know where their products really come from.
They don't want customers to feel that they have an alternative
way to get the same thing.
But in some cases, they actually could.
Trader Joe's sources some of its products from major
manufacturers that make all kinds of familiar goods.
And some of those goods under different brand names may actually
be similar or identical to the private label version sold at
Trader Joe's. For example, a 2017 Eater investigation found that
Naked Juice, a subsidiary of PepsiCo, has provided Trader Joe's

92
with bottled smoothies.
And when you compare a couple of Trader Joe's smoothies with
their naked juice counterparts, the ingredients are nearly
identical.But Trader Joe's can also have exclusive supplier
relationships.
I know when I worked there, there was a frozen pizza from Italy
and it was a little family in Italy somewhere that made the
pizzas. And Trader Joe's was their only customer.
That is obviously not the case for most products.
Now Trader Joe's does prefer, if possible, to tweak the recipe so
that technically they can say, ok look, this is completely
unique to us.The media expected there to be some backlash towards
this idea that Trader Joe's was trying to pretend as if these
products with their own.
But I think that what consumers discovered is, you know what, I'm
going to get the same product at a lower price and a better
shopping environment at Trader Joe's.
After all, one of the grocery store's biggest draws?
The prices are amazing.
Joe Coulombe established Trader Joe's in the 60s with a certain
customer in mind.
Coulombe said he created Trader Joe's to cater to the increasing
numbers of people getting a college degree.
It's the person who has good taste perhaps, who likes to try new
things but doesn't necessarily want to spend a great deal of
money.So how does Trader Joe's keep prices down?
By keeping its costs down.
For one thing, Trader Joe's sells mostly private-label goods
which are cheaper than name brand goods like Haagen-Dazs ice
cream or Starbucks coffee.
Experts say Trader Joe's is also able to negotiate better
pricing from suppliers by purchasing goods in larger quantities.
After all, Trader Joe's offers a smaller selection of products
than traditional grocery stores and thus sells larger quantities
of each item. It's also possible that Trader Joe's has help from
a corporate parent, Aldi.
Aldi could leverage its relationships with suppliers to help
Trader Joe's get better pricing.
Despite all these cost saving measures, experts say Trader Joe's
isn't necessarily cheaper than other discount grocery stores.
It just feels especially cheap.
I'm not sure if it's so much the reality of a big price
difference as it is the perception that you're getting a better
value from Trader Joe's.
You're getting higher quality ingredients, you're getting a
better edited selection, you're getting a much more pleasant
shopping experience.In other words, you're getting more for your
money than at similarly priced rivals.
But the Trader Joe's shopping experience isn't just about feeling

93
that the products are a great value.
It's about feeling that you are valued.
At this particular location, there's several people that know me
by name. And you know, hey, how you doing?
Why are Trader Joe's worker so friendly and happy all the time?
They're always striking up conversation with you at the cash
register or when walking you to a product you're looking for.
When Mark Gardiner worked at Trader Joe's, he found that this
employee behavior is not an accident.
They barely showed me how to work the cash register.
But they spent hours and hours acting out little play acting
exercises of how you would interact with a customer.
By observing his peers,Gardiner realized Trader Joe's prefers to
hire a certain kind of person.
People who are naturally extroverted, naturally empathetic.
And Trader Joe's is willing to pay above industry standard for
those employees.
According to the Trader Joe's podcast, crew members get raises
twice a year. Perks can also include health insurance and
retirement benefits.
Gardiner enjoyed working at Trader Joe's, but the job wasn't
without its headaches.
Scheduling of staff was a complete disaster.
It was the most completely crazily disorganized.
So there are a lot of things that they're not good at.
Really basic grocery store stuff like restocking the store.
Are they ordering the right mix of stuff?
Are they ordering the stuff that people actually want?
They're not that good at that.
Are they keeping cold things cold?
Are they keeping frozen things frozen?
They're not that good at that.
They're not particularly good at being a grocery store.
They're really not. What they're good at is this one thing.
Building this incredible brand.
But experts say Trader Joe's isn't trying to be the very best
grocery store.Trader Joe's is acknowledging that for most
Americans, you can't do all your shopping at Trader Joe's.
You've still got to go to another grocery store.
I do think sometimes you need the basics and they don't have it.
Sometimes the produce may not be like as fresh as other places.
The company's meat and produce sections have drawn criticism in
the past for being limited or not the best quality.
They've realized, hey, we can't be all things to all people.
And we know that our customers will also shop the competition.
But what will they shop us for?
And can we be best in class for those products?
Let's be honest.
Grocery shopping can be a chore.

94
It's an errand many are happy to outsource to Amazon or
Instacart.Technology is trending toward eliminating the grocery
store shopping experience altogether.
Meanwhile, Trader Joe's isn't competing on convenience.
It's giving you a different kind of grocery shopping experience,
one that motivates people to seriously inconvenience themselves
in order to shop there.
The company has successful regional competition from the likes
of Wegmans on the East Coast and H-E-B in the South.
But other national and multinational grocery brands have tried
and failed to imitate the concept in the U.S.
Roberto says Trader Joe's is hard to copy because it doesn't
have just one competitive advantage.
The goal for any company right isn't just to build a distinctive
strategy. It's to build a moat around their castle, to be able to
defend the castle.
How do you do that? You build a unique system of activities,
interlocking choices and activities.
A system where things fit together really well.
That's how Trader Joe's has carved out its own niche in a very
cutthroat industry.
You can go anywhere to tick off a checklist of basic needs.
But at Trader Joe's, it's about the joy of discovering something
unexpected, even if it means not checking off a few things on
your list.
Anglais

95
Week 4: Dig deeper slide 102 - Jeff Bezos on Amazon Business Strategy - How They
Succeed and Thrive in Everything

https://www.youtube.com/watch?v=tSzzjJd5BHk
we're really focused on is thinking
long-term putting the customer at the
center of our universe and inventing
those are the three big ideas to think
long term because a lot of invention
doesn't work if you're going to invent
it means you're going to experiment you
have to think long term so these three
ideas customer centricity long term
thinking and a passion for invention
those go together that's how we do it
and by the way we have a lot of fun
doing it that way you have been known to
be somebody who is going to plant seeds
and just wait how do you deal with the
pressure say Wall Street or you have a
dot-com crash you I've never seen you
panic I'm sorry you stay the course and
you sort of stick to your script how do
you do that and how do you advise us to
internalize that as well as a strategy
well and I think that if you're
straightforward and clear about the way
that you're going to operate then you
can operate in whatever whatever way it
is and and we don't even take a position
on whether our way is the right way we
just claim it's our way but you know
Warren Buffett has a great saying along
these lines he says you can hold a
ballet and that can be successful and
you can hold a rock concert and that can
be successful just don't hold a ballet
and advertise it as a rock concert you
need to be clear with all of your
stakeholders with you know are you
holding a ballet or you holding a rock
concert and then people get to
self-select in I think and I don't I
don't think there's a particular recipe
but there are elements of what we do
that I think help so one of them is that
inside our culture we understand that
even though we have some big businesses
new businesses start out small and so
you know it would it would be very easy
for say the person who runs our us Books
category to say why are we doing these
experiments with things I mean you know
that generated you know a tiny bit of
revenue last year
why don't we instead focus those
resources and
you know that all that brainpower on
this on the books category where we
which is a big business for us and
instead that that would be a natural
thing to have happen but instead inside
Amazon you know when a new business you
know reaches some small milestone of
sales email messages go around and
everybody is you know giving virtual
high fives for reaching that milestone
and I think it's because we know from
our past experiences that big things
start small you know the biggest oak
starts from an acorn and you've got to
recognize you want to do anything new
you've got to be willing to let that
acorn grow into a little sapling and
then finally into a small tree and maybe

96
one day it'll be a big business on its
own and in fact that's one of the models
for one of your initiatives and forgive
my my pronunciation of the Latin but
Greta team for Ock what does that mean
to you well it means step by step
ferociously and it's the motto for Blue
Origin and basically you can't skip
steps you have to put one foot in front
of other things take time you there are
no shortcuts and but but you want to do
those steps with you know passion and
ferocity amazing about your success is
that you actually your timing was good
too how does an innovator actually
identify that historical momentum that
Kittyhawk moment you recognize what was
happening with the internet and you said
you know what there's actually a room
for me to start with books and they move
on how do you do that how do you find
the time and the momentum the zeitgeist
well I think to some degree you follow
your passions and then wait that you
know you have to hope the wave catches
you I was always interested in computers
I was always interested in software I
was always a big reader and so it wasn't
you know which made me alert to things
like the internet and the possibility
that you could build a bookstore online
that would have universal selection I
think every
buddy has their own passion their own
thing that they're interested in you're
very alert to the things that that are
in the sphere of influence of that
passion so your passion has led you to
change the world frankly with Amazon but
yet you've got Blue Origin you've got
Basil's explorations why can't something
like you just rest on your loss go well
I you know I love what I do I have I
also have four kids I have a wife that I
love I have a lot of passions and
interests but I one of them is you know
at Amazon the rate of change is so high
and I love that I love that I love the
pace of change I love the fact that I
get to work with these smart big smart
teams the people I work with are so
smart and they all they're self selected
for loving to invent on behalf of
customers and so you know it's not do I
love every moment of every day no that's
why they call it work there's you know
there's always there are things that I
would that I don't enjoy but if I'm
really objective about it and I look at
it I'm so lucky to be working alongside
all these passionate people and I love
it why would I
I want to go sit on a beach
Anglais (générés automatiquement)

97
Week 5 : Dig deeper (slide 49) - Marketing Mix 4Ps | McDonald's Examples

https://www.youtube.com/watch?v=M8nC4dgKB9g

The Marketing Mix 4Ps is an analytical model used by businesses to attract

customers.
It is made up of four elements which are referred to as Ps, simply because they all
start with
the letter P. These are Product, Price, Place, and Promotion.
It’s important to be aware that the most effective businesses constantly adapt their
marketing mix to the changes which happen within their environment.
In this video, we will look at each P individually and apply the Marketing Mix to
McDonalds to
see how they effectively use the 4Ps to attract customers.
The first P is product.
The product element of the marketing mix is focused on the products or services that
a
business sells.
Products are classified as tangible items as they come in a physical form and can be
touched by the consumer.
For example, smart phones, clothing, and trainers are all classed as tangible
products.
Whereas services are classed as intangible as they cannot be touched by the
consumer.
Examples of services include, beauty treatments, car valeting, and pet sitting.
When developing a product to sell to the public, it’s crucially important that the
business
conducts market research to identify the wants and needs of the consumers within
its target
market.
Following this, where possible a business should seek to differentiate its products
and services to stand out from the competition and increase the chances of the
customers
shopping with them.
This is where the USP comes into play as the business aims to make the product or
service
different to what is already available elsewhere in the market.
Traditionally, McDonald’s offered fast food which was perceived by the public as
predominately
unhealthy but tasty, with the core products within its portfolio including burgers,
chips,
and milkshakes.
However, over the years McDonald’s has diversified its product portfolio and adapted
to changing
consumer tastes.
For example, McDonald’s has introduced a wide range of diverse products such as
it’s
McCafe range, a breakfast menu, salads, aswell as vegetarian and vegan meal
options.

98
This has helped McDonald’s to attract a wider audience and meet the wants and
needs
of more consumers, which in turn has helped them to increase sales.
We now move onto the second P which is Price.
Price is focused on the selling price set by the business for its products and services.
It’s a very important element of the marketing mix and one that truly impacts buyer
behaviour.
Before setting a selling price, it’s important that the business understands how much
the
customers within their target market are willing and able to pay.
but there are several factors which influence this.
These include: The availability of the product or service,
for example, if a product is in short supply, this typically drives up the price a
business
can charge.
Competition in the market also impacts price, for example, if a business has many
competitors
who offer similar products or services, it is likely that it will need to reduce its
prices to compete and attract customers within the crowded marketplace.
In addition, the brand image is a very influential factor as most customers have a
preconceived
opinion about the business and its products which influences its worth to them.
A business with a very strong brand image is typically able to charge more for their
products and services as customers find the brand desirable and trustworthy.
Once a business has considered these factors and knows how much the customers
within their
target market are willing and able to pay for its products and services, it’s then
able to utilise a range of pricing strategies to influence buyer behaviour.
The price of McDonald’s products could be considered as being very competitive
with
many people visiting McDonald’s stores not only because of factors such as
convenience
and speed but because the products are also very affordable.
They even offer customers a ‘Saver Menu’ which features fan favourites such as the
famous cheeseburger, Fries, and McFlurry’s for just 99p.
However, in recent years, McDonald’s have introduced a signature range which is
focused
on what they deem to be a more premium upmarket product with a higher selling
price, with
the aim of attracting customers who are willing to pay more for a better-quality
product that
still comes with the convenience and familiarity of McDonalds.
The third P of the marketing mix is Place.
Place is focused on the location where customers can purchase the products or
services which
the business offers.
Common examples of place include: Retail stores which customers can physically
visit.

99
Online such as a website or a mobile application which customers can access via the
internet.
Or purchases made directly from the manufacturer.
In today’s business world, it’s very important to provide customers with the
opportunity
to purchase products and services in a variety of places which are convenient to
them such
as having both physical retail stores and a website.
As of 2020, McDonald’s had over 39,000 restaurants around the world, meaning
customers are never
too far away from a McDonald’s or seeing those famous arches in the distance.
Traditionally, McDonald’s could only be purchased instore at their restaurants or
by utilising their drive through.
This has all changed in recent years as McDonald’s have introduced a variety of new
ways for
customers to purchase their products which include:
A mobile application known as ‘My McDonald’s’ which allows customers to order
online
and a delivery service which is known as ‘McDelivery’ that allows customers to have
food delivered
directly to them through third party delivery services such as Uber Eats and Just Eat.
The fourth and final P is Promotion.
Promotion is focused on the activities undertaken by a business to generate interest
and make
customers aware of the products and services which they sell.
Businesses often use a wide variety of promotional activities with the aim of
ultimately increasing
sales.
Common methods of promotion include discounts and special offers, social media
activity,
influencers, sponsorship, and advertising across a range of multimedia such as TV,
radio,
billboards, online video, and website banners.
McDonald’s uses a mixture of promotional activities to bring attention to the brand
and increase sales.
Advertising is one of their most effective promotional techniques and something
McDonald’s
takes very seriously, having spent over $600 million in 2020 alone to carry out
campaigns
across TV, Newspaper, Radio and billboards just to name a few.
McDonald’s also use sales promotion as a short-term incentive which is designed to
encourage people to buy more of their fast-food products.
For example, the Monopoly promotion where customers receive stickers with their
meal
which gives them the chance of winning free food, discounts at certain retailers or
even
cash prizes for a limited time which has successfully increased sales at McDonald’s
as people
buy more often and buy larger meals to increase their chances of winning.

100
McDonald’s also utilise direct marketing through email and app notifications by
targeting
their customers with special offers and seasonal menus items designed to
encourage them to
make an order online or instore.
Now that we’ve looked at each of the 4Ps with some examples of how McDonald’s
utilises
them, it’s important to be aware that the 4Ps shouldn’t be used in isolation and for
the marketing mix to be truly effective in attracting customers and increasing
spending,
it’s crucial that each element of the marketing mix complements the others.
Hopefully, that’s provided you with a better understanding of this analytical marketing
model and how it is used in business.
If you’ve found the video helpful, it would be appreciated if you could hit the like
button
and remember to subscribe to Two Teacher’s YouTube channel if you aren’t already
to
see lots more business videos just like this.
Thanks for listening and all the best.

101
Week 5 : Dig deeper (slide 49) – There is No Luck. Only Good Marketing. | Franz
Schrepf | TEDxAUCollege

https://www.youtube.com/watch?v=AN-41JjIPEg

before i came to amsterdam to study

business and economics i worked in a
bank in my hometown munich
and i left this bank for one particular
reason because even though the people
there earned sufficient amounts of money
they all seemed dissatisfied with their
life
they were frustrated
with their career opportunities
they were unhappy with their
relationships and they were constantly
stressed out
but these people
they all had one thing in common
they did not want to change it
and even outside of the bank i kept on
meeting people
who were unhappy with their lives
but unwilling to change them
and every time these people saw somebody
who had a great relationship who was
happy with his job or who seized a great
opportunity and was successful
those people just said that this person
was at the right time at the right spot
and got lucky
we all know it right
however when you study marketing you
realize pretty quickly that products are
always at the right time at the right
spot just
ah wait
take this coke ken for example ladies by
the way i'm sorry to disappoint there
was a coke can in my pocket
every time you're
good times good times
however every time you first see i can
assure you 100 that there is a coke
vending machine just around the corner
in fact there is one right in this
corner of the room
coke vending machine right there do you

102
want a free coke
nice and warm my friend
so is coca-cola just distributing this
vending machines at random and got lucky
that people bought it
or did they have a marketing department
which actually thinks about it
how to position them and how to reach
out to the customers
it's quite obvious right
so at this point i started looking at my
marketing book in a different way
instead of learning from my exams or
learning in order to help a company i
started learning for myself i looked at
it and i thought how can i learn from
this what can i learn from these
techniques and i came up with an idea
worth spreading
now i need to warn you i gotta present
some theories now and if you're
expecting life-changing knowledge from
these theories i'm sorry to let you down
but if you're guessing that these
theories are like empty jars you need to
fill with your own knowledge and your
own insight
you're an outstanding guesser
so if you study marketing you're not a
stranger to just four
blocks they're called the four ps and
four c's of marketing they're the
foundation of every product launch no
product enters the market without
filling these four blocks and tonight
we're going to launch you
so the first one is the product and the
customer needs the product are you
yourself and all the capabilities you
have and the customer needs
are the needs of the people you need for
your success and your product has to
match these needs
however customer needs are something
really tricky
because
your stated need tonight for example for
this tedx event is that you want to be
inspired and entertained by great

103
speakers
but then there's something else that's
your unstated secret need
and tonight i guess this unstated secret
need is that you want to go home
afterwards show your friends these
videos and brag about how sophisticated
you are for attending such an event
am i right
now these unsteady knees are really hard
to find and if you find a secret needs
you can be sure that you have a massive
competitive advantage but i can tell you
what they are you have to find it
yourself and the only advice i can give
you on this is never ever
ever try googling them there are secret
needs you don't want to know about
now your product has to meet the
customer's needs and most of the time
when you do it for the first time you
will realize that it doesn't but don't
be sad about it because the process is
called r d which stands for research and
development and not research and
depression
even though you realize that your
product doesn't meet the customer needs
you can still develop it's never too
late for personal development my grandpa
is 83 years old and he's learning
english right now just so he can watch
this video what's your excuse
now
who in this room ever wanted to be a
rock star or a famous dj
that's quite a lot right and why
shouldn't you if somebody would come up
with a contract and with me ask me you
want to sign up to be a rockstar i would
take it immediately all the fame and
fortune fast cars giving concerts in
front of a hundred thousand people that
would be great
but that's just half of the story
because who in this audience actually is
a rock star
and the reason why so many people fail
to become a rock star it's the same

104
reason why i never became one
because
when i started playing guitar at the age
of 16 this man was my idol his name is
john butler here in his own ted talk in
sydney and he started playing at the age
of 16 as well
now how did john butler become an
outstanding guitar player and i didn't
it's because he dedicated himself to it
while played once or twice a week
he played every minute
well i was too shy to play in front of
people he went out busking in the
streets
and while i played it safe and went to
university
he quit university just to pursue a
career in music
now i'm not trying to inspire anybody to
quit their university right away and
just go out busking in the streets
but next time you see somebody
successful
ask yourself
what are his costs
because this doesn't come for free there
must be some costs behind it and then
ask yourselves would you be willing to
pay it because when people are told
about the countless hours of practice
the endurance needed and the risks
involved in becoming a rock star most of
them don't want to do it anymore but if
it still sounds tempting to you you
should go for
it now after figuring out your product
your customer needs your price your
costs
it's time to think about how to let
people know you're out there
because life is just basically like a
big supermarket
and in a big supermarket people are
exposed to 300 products per minute
and this little girl could be your
customer
she could be anybody your future boss or
even your wife

105
and all these products around her
okay i know for 20 years but all these
products around her are potential future
husbands just like you
how should she know for which one to
stop
take it out of the shelf and put it in a
shopping cart
we have a product we have a concept for
this as well it's called aida and it has
nothing to do with this boat company
aida stands for attention interest
desire and action
so the first thing you need to do is you
need to grab the customer's attention
you can do that with anything it could
be a smile when you enter into the room
it could be a nice hat a flashy outfit
or you can simply stand on a red carpet
on a stage right in front of them
once you grab the attention
you need to
create an interest within them so that
happens by displaying the attributes you
thought about which they want and
because you thought about it
these attributes create create a desire
in them because they're ex you're
exactly what they need
and that ultimately leads to the action
part it sounds a bit weird when talking
about dating
maybe better with products but it's
really essential because in the market
as well as in life it's not the product
which is the best which gets sold the
most but it's the best promoted product
which gets sold the most
and now you can go through all these
steps and still fail
simply because people don't know where
to buy you they don't know where to find
you
this applies to every single life
situation
but in my case i just really like the
dating example so we're going to stay
with that
so when i was 16 in germany that's the

106
age when you're allowed to go out
drinking so i went to nightclubs with my
friends also because we thought that is
the primary place to meet women
now were we successful at meeting women
at nightclubs no
was there even a realistic chance for us
to meet women at nightclubs
not at all
why not only because of this this could
have worked
it's because at an average german
nightclub there's 80 percent men and 20
women there's a massive oversupply of
men
which leads to greater competition less
success
now i still manage to solve this problem
i wish i could tell you oh yeah i
enhanced my product and i went out into
the nah that's not what happened
what happened was that i simply
positioned myself differently to be
honest my mother positioned me
differently because
she signed me up for standard dancing
lessons
that was the reaction of my friends as
well
but after one hour of standard dancing i
was not even mad anymore because from an
economic perspective that was amazing
there was a room
full of women such an oversupply such a
high demand for a guy like me so little
men so little supply it was like a
supermarket with more customers and
products
that was great
i went overnight from being a free in
the club to a nine a dancing or maybe a
seven
but still improvement
so what we can learn from this
is that
sometimes you need to consider all the
options
because sometimes
the place which is the most obvious to

107
meet your customers is not the place
where they need you the most
and after filling out all these four
boxes
there's one major question left for
tonight
why do people when we can analyze our
situation and position us in the market
would ad reboot sucks they why would
they attribute success
solely to luck
and the answer here for is this
we tell ourselves
that our people are lucky
for the same reason
we take a pill when we have a weight
problem or we drug our children when
they're hyperactive
we have a problem and we're looking for
a solution
and this one is easy
it's fast
and it's effortless but it's also a dead
end
because
rather than tackling the root of our
dissatisfaction because of our problems
we just swallow a luck pill and numb
ourselves to all the symptoms
but with this luck pill
we also numb ourselves to all the great
opportunities this world has to offer
and we constrain ourselves
in developing
our personal best
i was at this point when i was in the
bank i was just as dissatisfied as all
my colleagues
but i didn't swallow the luck pill
what i would do was i analyzed what am i
good at
i positioned myself differently i moved
to amsterdam to enhance my product
i met so many great people and got
inspired as well as inspired others
and within this one and a half years i'm
here now i went from being this poor sad
little man in a bank
who was wearing a suit all day

108
to presenting on a tedx stage my
personal dream
so the next time you feel as
dissatisfied as the people in my bank
you're unhappy with your relationships
you don't like where your life is going
or you simply feel like your life could
be so much better
you have two options
you can either
swallow the luck pill and go on with
business as usual
or you can analyze your situation
take action
and truly change the game
thank you

109
Week 5-6 : slide 17 - 20 Years of Product Management in 25 Minutes by Dave Wascha

https://www.youtube.com/watch?v=i69U0lvi89c

[Music]
oh hello oh man it's so back good to be
back in the US I moved to the UK in 2010
but it's so good to be back
in the Fertile Crescent of product
management I started my product
management career about 20 years ago
pretty much basically back when the
profession was getting started and as
Martin said I started off as the product
manager for Internet Explorer 4.0 so for
context that was back when Apple was
still a failing PC maker and Mark
Zuckerberg was 13 years old now I don't
think it asked Dave I'd like to get a
job like yours I want to be a chief
product officer what advice do you have
for me I don't think that's a very
interesting question I say you don't
really want my job my job is really
about approving expense reports and
listening to product managers wine but
we recently had a new starter at photo
box and she said Dave knowing what you
know now like if you could go back to
that Dave 20 years ago and give him some
advice what advice would you give him I
thought that actually is an interesting
question I never really thought about
that so I thought about it
and I thought about it and it became the
seed that blossomed into this
presentation I've worked on products all
over the world I have had amazing
experiences and I've had some great
successes and I've worked with the best
product managers in the world but I've
also made some mistakes in fact I've
made all the mistakes that you can make
as a product manager some of them more
than once I've been yelled at by
customers I've created products that
failed
I've lost the companies I've worked for
millions of dollars one time I even made

110
a customer cry but I am a better product
manager for it
I've been forged in the white-hot heat
of failure and I'm a much better product
manager before they having to have those
experiences so what I've done today is
I've distilled all of that experience
all those 20 years of successes and 20
years of failure down into its essence
and when you walk out of here today
you're gonna know everything that I know
about product management 20 years in 20
five minutes are you ready all right
let's go the first thing I would say to
my younger self is listen to your
customers now I know this sounds obvious
but I'm constantly shocked by how little
we're listening to our customers it's
always surprising your job is a product
managers to be maniacally focused on
understanding your customers problems
and you cannot do that if you're not
listening to them I've interviewed over
300 product managers at four companies
in the last five years and I'm
constantly shocked by how few of them
have a basic understanding of the
customer problem that they're trying to
solve you cannot solve the customers
problem without understanding it and
when you don't listen to your customers
you end up building solutions for
problems that nobody has ladies and
gentlemen I give you the smalt now the
smalt
is the world's first smart centerpiece
designed exclusively for your indoor /
outdoor dining area now what exactly is
the small you ask well the small tis
three things the first thing the small
tis is it is a speaker it's a Bluetooth
speaker by the way this is a real
product it's a Bluetooth speaker and I
get that right if you're eating you want
a little bit of music you know to go
with your meal that's fine the second
thing is it is it's a it's a
color-changing mood light okay now okay
you might want a little ambience it's

111
not really my thing but I get that okay
so you got a speaker you got some color
changing mood lights alright I like
where this is going and the third thing
that the smalt is and this is the best
part it is an Internet of Things voice
connected salt dispenser
somebody actually wrote that right like
some copywriter actually wrote that okay
now having fun while I'm putting salt on
my food is not a problem that I have
I now need a Wi-Fi code to put salt on
my food I'm going to say it right now I
am never going to ask Alexa to pass the
salt so when you don't listen to your
customers to understand their problems
you end up building solutions for
problems that they don't have so the
first thing I would say a little baby
Dave is spend more time listening to
your customers but the next thing I
would say only stop listening to your
customers when it comes to solutions
your so your customers are the least
qualified people to come up with
solutions
we're not stenographers if we just wrote
down everything the customer said and
and we put it into our products anybody
could do our jobs right I'll show you
what happens when you listen to
customers about solutions you get this
this is the oral-b pro expert pulsar gum
care toothbrush this is the world's most
advanced toothbrush okay it has an
entire website dedicated to this
toothbrush where they expound at length
about all of its virtues and benefits of
which it has many it's got crisscross
bristles it's got power tip bristles
it's got end rounded bristles and soft
gums stimulators but my favorite part of
the whole site is that they figured out
the perfect angle of the bristles to get
the most amount apply some poor bastards
spent his career testing okay is it 15
degrees no is it 17 degrees no it's six
Eureka it's 16 degrees so that was
somebody's job this is a picture of a

112
toothbrush from 50 years ago this is the
pro expert blabbity blah blah blah this
is what you get from 50 years of
listening to customers right so listen
to your customers to understand their
problem but don't listen to your
customers when it comes to building
solutions that's your job so I go back
in time to little Dave the next thing I
would say to him is watch the
competition and no surfing on product
hunt and reading TechCrunch does not
count I would say watch the competition
because there's
rich source of information that can help
us better understand our customers
problems right
I view every time the competition ships
a new feature or the ship a new product
I view that as a user test that I can
learn from even though we didn't ship it
because there's so many signals out
there there's so much information that
we can see where you see instantaneous
feedback from customers about what they
think about our products and other
people's products
so these are some Amazon reviews for the
oral-b pulsar blabbity blah and you can
see maybe not in the back you can see
that people are starting to say hmm I
really don't like that I can't replace
the batteries in this toothbrush
interesting then even got YouTube
reviews right this guy actually did a
YouTube review of this toothbrush but
here's the thing it's had 11,000 views
so you also have then you've got
comments on the YouTube reviews right so
we can go down this rathole all the way
down right so again you've got more
comments about the fact that you can't
replace the battery so if you were
designing a semi disposable battery
powered toothbrush what might you
surmise from all of this information
it's pretty easy to find you might say
that people think it's important is that
they're able to replace the battery

113
right in this thing but oral-b doesn't
want them to be able to place the
battery right why because they want to
sell them more toothbrushes because
oral-b is solving oral B's problems
they're not solving their customer
problems now interestingly enough
[Applause]
interestingly enough when you're doing
all this customer research you can also
come across some amazing information
about how your customers are using your
products in ways that you never intended
but that's the subject for another talk
so first I would say watch the
competition because it's an amazing
source of information to help you better
understand the customer problem but the
next thing I would say is don't watch
the competition ok stop worrying so much
about what the competition is doing in
our tech bubble our echo-chamber
we get we frost ourselves up in a lather
every time some kind of new technology
comes out we all race to implement it
and you really have to ask yourself does
implementing that new thing really help
solve the customers problem or is it
just a novelty you really have to ask
yourself is connecting my service to a
chatbot really going to help our
customers with what they're trying to do
do you really have to ask yourself just
taking something that works perfectly
fine like a salt shaker and connecting
it to the internet going to help anybody
do anything sorry that one makes me
angry is anyone here from smarts malt no
I hope not you better not raise your
hand but you have to remember that the
competition is made up of people just
like you and me and they've got all the
challenges that we have in making good
decisions for our customers my last MTP
talk in London was all about how the
structure of the human brain and
cognitive biases basically make it
impossible to make good decisions we're
not going to cover that today you can go

114
watch it
I mean don't don't watch it now watch
this talk now but you can go watch it
later but if the competition does come
up with something that really works and
something that resonates with customers
then I would tell little baby Dave to be
a thief right I mean I would don't
actually steal anything right but don't
actually be a thief but I would say
don't be a
afraid to take that idea when I was a
young product manager I used to think I
had to come up with all of the ideas and
I wish I knew this sooner in my career
your job as a product manager is not to
come up with all the ideas you job as
the product managers to solve your
customers problem and if someone else
comes up with a better idea than you had
then take it and steal it with abandon
so tell a little baby Dave to be a thief
you're not actually watching my other
talk are you so anyways the next thing I
would tell them is remember to get paid
so most of us as product managers are
working on something that's a commercial
endeavor and we spend all of this time
and effort building features and taking
them to market but we forget to ask one
fundamental question will anybody pay
for this right and if you ask we all go
out we say do you like this feature and
the customer says yes I do and they say
would you like us to put it in the
product and the customer says yes I
would and you're asking the wrong
question right because when you say do
you want us to put that in the product
the customer can say yes for free right
they don't have to trade anything off
well you have to ask and understand is
are they willing to pay for it what is
their willingness to pay that is the
fundamental question that we all need to
understand let's talk about the elephant
in the room
last summer
Evernote decided in search of

115
profitability decided to fundamentally
change the way that it was pricing its
products and the internet lost its mind
now how many companies can have hundreds
of millions of users and not come up
with a way of being profitable
but the internet lost its minds and the
internet lost its minds not because they
didn't see any value in Evernote people
loved Evernote I loved Evernote they
lost its mine because they didn't
understand why Evernote was charging for
the things that it was charging for
right it didn't make any sense so let's
take a look at why people were so angry
right so here's their feature pricing
tier so the first thing you notice is
that the transfer for the free tier per
month is 60 megabytes
okay is that a lot is that a little so
then I'm left to think okay so a notes
probably a couple of kilobytes and a web
clipping maybe 50k 56k like and by the
way like 60 megabytes is a weird number
it's not 50 megabytes it's not a hundred
megabytes like what and so now I'm left
thinking I'm having to do math now like
they're they're making this my problem
to figure out which of these things I
need they're being giving me no help at
all the next thing I did was they took
something that was free and they started
charging for it all right so you could
prior to this change sync your Evernote
stuff across all of your devices and in
an effort to again make some money they
decided to restrict it to do to two
devices and this is Evernote solving
ever notes problems their problem of
profitability not solving their
customers problems so you can imagine
how much customers really loved when
they did this the next thing you notice
if you look at the first page here first
of all you get a gigabyte of transfer I
still have no idea if that's enough for
me or not but then you say they offer
the feature access notebooks offline and
I thought hey I might actually see value

116
in that might actually be willing to pay
for that and then I started to think
okay what are the scenarios where I'm
going to need Evernote but I'm not gonna
have access to Wi-Fi right I can get
Wi-Fi on the plane I can get Wi-Fi on a
train I can get Wi-Fi on the top of
Mount Everest and I'm really struggling
to figure out a solution a scenario
where I'm actually gonna need this but
I'm not gonna have access to Wi-Fi so
that's not very helpful to me but then
this is the one that gets me so for the
biggest tier right your best customers
the people that pay you the most you're
going to give them a
feature customer support right so what
you're saying is for your highest value
customers your best paying customers
you're gonna give them the feature that
they're paying you for that they'll only
derive value from if your product breaks
and this drives me crazy I hate when
companies do this they makes customer
enterprise customers fine like that
makes sense for enterprise support but
not for consumers this is not something
that you should be charging for it makes
no sense but Evernote justified the
price increase by saying it reflects the
significant investment of energy time
and money they're basically saying that
they want us to give them our money
because they're trying really hard not
because they're helping us or solving
our problems so they're solving their
problems right and as product managers
our job is to solve our customers
problems and that is why people got so
angry so as you're developing products
you have to remember to make sure that
people see enough value and what you're
building to pay you money for it so
don't forget to get paid but the next
thing I would say a little bit maybe
Dave it stops worrying so much about
getting paid we are business casing the
sole out of our products
we're so time constrained and resource

117
constrained that we're often put in this
position of having to justify every
little thing we do with these elaborate
business cases and these arduous
processes and not only does that slow us
down but it creates a culture of
systemic risk aversion right it creates
a culture of small incremental thinking
driving small incremental gains when I
was starting off as a product manager
product management was really about
defining the functional requirements of
products and those functional
requirements were often defined in
megabytes megahertz or horsepower or
dollars basically cost speed and power
but it's no longer enough to just meet
the functional needs of our customers we
also have to appeal to their emotional
and social needs as well customers want
to feel connected to us
they want to feel entertained they want
to feel heard and understood they want
to cheer for us and they want to trust
us and Trust isn't built on megabytes
Trust is built on an understanding that
we know who they are and that they
believe that we have their best interest
at heart
and that they believe that they're a
part of our tribe and this is so crucial
it's so powerful now these don't have to
be big massive things right there can be
little gestures this is mondo because
there's a small fin tech startup in
London and they have an app with a
prepaid spending card and they offer a
feature in the app that you might expect
from something like that the ability to
freeze the card right
and after you freeze the card if you
want to stop that what do you do you
defrost the card right this didn't take
anything it's a little bit of micro copy
and a graphic right but it made me
chuckle it tells me that they don't take
themselves too seriously right and it
tells me that we have a shared sense of
humor true jerky is a SAN

118
francisco-based company I actually had
some of this the last time I was here
it's really really good jerky but as I
was eating it I noticed this they
actually put dental floss in the bag
jerky so that when you're done you can
you you know where that was going
um so but did they have to put that in
there of course they did in does that
increase their costs yes it does
do you think that they can justify the
ROI or even measure the ROI in terms of
increased sales or increased customer
loyalty for doing that no they can't
right but it made me smile if you can
make somebody smile give the foundation
for a lifetime of loyalty but for my
money nobody does this better than a
company called pager Duty pedra duty is
an automated incident management system
basically when your site goes down it
wakes all the right people there on-call
up with a nap right and if you're one of
those people on call you dread hearing
that thing go off in the middle of the
night right because it means something's
really bad and you're tired and you need
to get up and it's on you to fix it and
the guys at page your duty really
understood this they made these so
they've got this barbershop quartet
at page of duty it's called barber duty
and they recorded these hilarious
ringtones right it can go off you can
choose that go off instead of some
normal bead that can go off when
happens it's hard to describe should I
play you a few okay no boy that's that's
a bit embarrassing jeez
so is there anybody from page of duty in
the audience you guys are from pager
duty yeah so do you do you guys know
these ringtones that I'm talking about
do you do you think you can sing them
for you guys want to you guys want to
hear them sing one of the ringtones
ladies and gentleman Barbara duty
[Applause]
[Music]

119
I want we need to hear at least one more
you guys wanted one more one more
alright come on give us one more guys
[Music]
[Music]
ladies and gentlemen Barbara Doody
thank you guys thank you very much now
how do you put an ROI on that
well maybe you can so Jeff Atwood
tweeted about this and Jeff Atwood has
two hundred twenty four thousand
followers so maybe you can but that's
not why they did it so you have to
remember that you also need to appeal to
the emotional and social needs of your
customers it's just as important if not
more important than their functional
needs the next thing I would say the
little baby Dave is speed up I shudder
to think at the amount of value that I
have destroyed in my career through
inaction through not taking action as
product managers we often understand the
cost of things in terms of how many
story points it takes or how much how
many dollars how many days it's gonna
take to get done but there's something
much more fundamental that we need to
internally grasp right and that is the
cost of inaction the cost of not doing
something the cost of delay this is one
of the most important concepts that I
wish I had known earlier in my career we
put off making decisions for all kinds
of reasons every time you put off making
a decision you are destroying value the
features and products that we ship have
a limited shelf life and the longer it
takes them to get to market the less
value that they have so every time
you're putting off making that decision
you're destroying value every time
you're leaving a question that somebody
has go unanswered and so they're blocked
on it you're destroying value and
there's all kinds of reasons why we put
off making decisions right we don't have
enough information right or we don't
know who the decision-maker is right or

120
so-and-so is on vacation and so we need
to wait for him to get back the one
though that really gets me so I had a
team and I was talking to them and I
said why haven't we made this decision
yet and the product manager looked me in
the eye this is a true story and he said
we haven't made the decision yet because
we haven't been able to get a meeting
room to hold the meeting to make the
decision
and when I heard that it made me want to
go up on the roof set myself on fire and
jump off the roof
it drives me absolutely insane I just
can't believe when people do that they
don't make a decision because you can't
get a meeting room the next thing was a
little baby Dave is say no as product
managers we don't say no enough and
again what this is one of those things
it's so powerful but our jobs are hard
right we've got lots of stakeholders
we've got lots of competing priorities
we've got lots of people to make happy
but let me be very clear this is not
about making people happy this is about
making our customers happy and there's
all kinds of reasons why we might say no
if marketing comes to you and asked you
for a marketing feature the answer
should be no if a sales guy comes to you
and he says I just need this one feature
for this one customer the answer should
be no it's really hard to do this if the
CEO says hey I got this great email from
my cousin and it's this great idea but
it's not a great idea the answer really
really needs to be no my favorite though
this one that sticks in my memory why
something made it into a backlog I was
doing some backlog grooming with the
team and I saw this thing in the backlog
and I said why is that in the backlog
that doesn't help anything and the
person said to me said well we gave it
to Steve to put something in the backlog
because Steve hadn't had a turn to put
anything in the backlog in a while

121
but if you are saying no you're probably
saying no for all of the wrong reasons
and I'm guilty of every single one of
these right you say no because you think
you're protecting the team you hear that
all the time your job isn't to protect
the team your job is to protect the
customer right you say no because this
is my favorite this is the one I'm
guilty of all the time you say no
because you don't like the person who
suggested it right your job is to say no
but make sure that you're saying no for
the right reasons the next thing is
don't be a visionary right when I was
young I thought I had to have all of the
answers I had to be able to see into the
future and know everything and meant I
would be this Oracle that people would
come to and I would dispense with my
wisdom and then they would go off and
build things and it would be amazing
Elon Musk is a visionary he builds
self-driving cars and spaceships okay if
your strategy to be a really good
product manager is to be Elon Musk then
fine go with that but for the rest of us
this is about grinding it out right this
is about doing the hard work products
don't need visionaries they need product
managers who are obsessed with
understanding the customers problem and
solving it right so don't be a visionary
be a product manager this is what we do
when I was 25 I worked on a product
called host integration server and it's
a product that connects these things
hey IBM mainframes to the Internet and I
was so excited because I was going to my
first customer pitch and I put together
all the features that were gonna be in
this product and it's ready to go
there's gonna be amazing and I walked in
the meeting and there's a 60-year old
man there with a suit on and a pocket
protector and then there was 25-year old
me with shorts and sandals on and we sat
down and I said okay let me tell you
what we're gonna do okay so first of all

122
you're gonna be able to access natively
everything on there but we're gonna put
web service design that you can be able
to wrap xml wrappers around it you'll be
able to do all this stuff and then
you're gonna be able to take it to the
web and he said let me stop you right
there you have no idea what I want do
not come back until you have a clue
about what I want
that was the first time I got yelled at
by a customer as a funny joke my mom
always says this funny thing she says
the product manager that really thinks
he knows his customers like a male
gynecologist and I always get a chuckle
for me I love it um
man I really I got no Nate was thanking
his family earlier I really should
remember to thank my mom for that um you
know I'm just gonna show you a picture
of my mom okay she's really cute just
having a lot of luck with this today
wait a second
is my mom in the audience she is in the
audience mom stand up stand up stand up
round of applause for my mom thank you
mom
the last thing I would say if I could go
back and talk to Dave 20 years ago I
would say Dave be dumb you've got a
precious gift when you're starting off
and that you don't know anything
you're not encumbered by knowledge and
you're not encumbered by inertia and the
best product managers that I've ever
worked with have had this capacity to be
dumb to always look at a situation
through the eyes of the customer
companies drift right they lose sight of
what they're there to do and they start
solving their problems and not customers
problems and as that product managers
it's our job to always correct that and
always advocate for the customer and
bring the customers perspective to the
situation so I wish I'd spent a lot more
time being dumb and if you can spend a
lifetime being dumb you're gonna have a

123
great career as a product manager and
that my friends is what I would tell
Dave if I could go back in time and tell
them everything I knew but don't listen
to me product management is a mindset
and it's a craft and you have to make
your own path you have to make your own
mistakes and you're so lucky you're so
lucky that you have this amazing
community here I didn't have this when I
was starting off you have this amazing
tribe of people that you can learn with
and learn from so don't listen to me
however if in listening to this talk
I've saved at least one of you from
climbing up off the roof setting
yourself on fire and jumping off then it
was all worth it ladies and gentlemen
one more round of applause for Barbara
Doody one more round of applause for my
mom thank you enjoy the rest of the
conference
[Music]
[Applause]
[Music]
[Music]

124
!! Week 5-6 : slide 20 – How Apple's Design Changed the Computer World

https://www.voanews.com/a/apple-design-changed-computer-world/3263590.html

pas de script

125
week 5-6 : slide 23 - How design package affects sales

https://www.youtube.com/watch?v=euacI5VTBhY

[Music]
[Applause]
welcome back to the packaging school
show I'm your host Kevin Kegley direct
here at the packaging school let's face
it we all judge a book by it's cover
right right
that applies to packaging as well admit
it especially husbands that are sent on
grocery runs we're all little swayed by
good packaging the colors the images it
reels us in but it can also backfire bad
colors bad images it can kill a brand
our sister company package insights
specializes in helping brands avoid that
very thing when a brand wants to tweak
their packaging and they want to use
data instead of gut feeling to make a
million-dollar decision that's when they
reach out to package insight p.i uses
eye tracking technology to get this info
we set up in a store and put the clients
branding concepts on the shelf next to
their competition then people sign up to
participate in a study they put on these
cool glasses that track their eye
movements you can actually see what they
look at first how long it takes them to
find the product and how long they look
at it and all of that data is recorded
and when you overlay that information
across the results of hundreds of
participants the client gets concrete
answers about their packaging tweaks big
brands making packaging tweaks with
mixed results happens a lot and with
more on that here's Nick as you might
have heard Land O'Lakes makers of that
butter in your fridge have recently
decided to change their logo and
packaging graphics removing the Native
American woman from the front of their
products for the first time in almost a
hundred years now I'm not here to talk
about the politics of this situation

126
this is a packaging show but I wanted to
know what kind of affect this sort of
packaging change could have on a brand
so I did some digging and found some
examples to explore this first let's
take a look at a success story do you
recognize this product I'm guessing you
don't it wasn't super popular during its
first three years on the shelf how about
this one now this one I always recognize
in my opinion it is one of the more
unique and recognizable packaging
designs on the market right now so how
big of a success was this redesign well
in 2014 our x-bar in the original
package managed two million dollars in
sales
in 2017 with the new package they racked
up a hundred and sixty million dollars
in sales same product different packages
turns out people do judge a book by its
cover in 2017 another huge brand Chobani
also decided it was time to change
things up despite being the world's
leader in yoghurt market share that's a
weird sentence the overall yoghurt
market wasn't performing very well in
Chobani was starting to become
indistinguishable on the Shelf from a
sea of competitors the new design
decided to focus on feeling artisan
man-made and natural the newer muted
colors rustic font and hand drawn images
really give Chobani a premium aesthetic
that once again allows it to draw your
eye in the store lastly let's take a
look at a redesign that didn't go so
well in 2009 Tropicana decided that they
wanted to rebrand themselves through
their packaging they dumped the iconic
orange and straw for a glass of juice
and changed some of their verbage as
well the result consumers were not happy
when sales dropped twenty percent in
just two months
there have been numerous case studies
done on this redesign and the general
consensus seems to be that the new
branding created mixed messaging with

127
the old packaging and the new graphics
made the brand look cheaper than it did
previously
that being said learning from our
previous failures is what makes us who
we are
and ten years later Tropicana is
stronger than ever probably all that
vitamin C right all right all right
so could this packaging redesign work
out for Land O'Lakes it might time is
really the only thing that will tell now
if you'll excuse me I'm gonna continue
working on my own personal redesign
thanks Nick if you know of a brand that
did some packaging tweaks tell us about
it in the comments and tell us what you
thought about it also give this video a
thumbs up and if you haven't already
subscribe to our YouTube channel and
share this video with some of your
friends they might even be your
colleagues or you can share it with your
enemies we just don't want to get along
and as always keep calm and carry on and
wash your hands see you next time

128
week 5-6 : slide 46 - How Apple and Nike have branded your brain | Your Brain on
Money | Big Think

https://www.youtube.com/watch?v=4eIDBV4Mpek

- Coke is just soda.

Tylenol is just acetaminophen.
And Levi's are just jeans.
Yet consumers go out of their way
to select these specific brands over others.
- An economist would say,
"How is this possible,
that a rational consumer would be willing to pay more
for exactly the same thing?"
We love to think about ourselves as rational.
That's not how it works.
A very famous study done by colleagues at Duke University
flashed either the Apple logo or the IBM logo
to two randomized groups of participants.
- The study found that
after being subliminally exposed
to the Apple logo, compared to
when you'd been exposed to the IBM logo,
participants performed better on creative tasks.
- And the argument is that Apple has been telling you
this story over and over again,
that Apple is the brand for hip, cool, fun, creative people.
- This is the true power of brands.
They can influence our behavior in ways
that extend way beyond the point of sale.
So to what degree can the influence of brands
wreak havoc on our ability
to make rational spending decisions?
This is your brain on money.
This is Americus Reed.
He studies identity and marketing
at the University of Pennsylvania.
When I make choices about different brands,
I'm choosing to create an identity.
When I put that shirt on,
when I put those shoes on, those jeans, that hat,
someone is going to form an impression about what I'm about.
So if I'm choosing Nike over Under Armour,
I'm choosing a kind of different way to express
affiliation with sport.
The Nike thing is about performance.
The Under Armour thing is about the underdog.
I have to choose which of these
different conceptual pathways
is most consistent with where I am in my life.

129
- And once a consumer makes that choice,
their relationship with a brand can deepen to the point
where they identify with that brand like family.
And once you identify with a brand,
it can shape the way you behave.
- And it's really interesting because they will also,
if someone talks bad about that product, brand, or service,
they will be the first to go out and defend.
Why?
Because an attack on the brand is an attack on themselves.
- Michael Platt is a professor of
neuroscience, marketing, and psychology
whose research demonstrates how
our perception of brands influences our decisions.
- There's an idea in marketing, which is that
we relate to brands in the same way we relate to people.
It's like, "I love this brand," or, "I hate this brand."
Of course, what people say, right, can often be
different from what's really going on in their heads.
So we thought, "Well, why don't we just
ask the brain directly?"
- Michael and his team observed the brains of
iPhone users and Samsung Galaxy users with an MRI machine
while they heard good, bad, and neutral news
about Apple and Samsung.
- Apple customers showed
a brain empathy response toward Apple
that was exactly what you'd see in the way you would respond
to somebody in your own family.
- Strangely, Samsung users
didn't have any positive or negative responses
when good or bad news was released about their brand.
The only evidence that Samsung users showed
was reverse empathy for Apple news.
Meaning if the Apple headline was negative,
their brain reflected a positive response.
- You know, it really shows us that
Apple has completely defined the market here.
Samsung customers, it seems, from their brain data,
are only buying Samsung 'cause they hate Apple.
- The kicker?
The Samsung users didn't report feeling
the results their MRIs showed.
What was happening in their brains
and what they reported feeling towards Apple and Samsung,
were totally different.
- Most people just don't realize
that they are subconsciously choosing brands
because those brands have some kind of
self-expressive value.

130
- You can see there's a lot of power here
in terms of shaping consumers' decisions.
As we learn more and more about that,
we have to think much more deeply about
the ethical, legal, and societal implications of doing that.
- So, as consumers, what can we do
to make informed choices?
Well, the best thing we can do is to
be aware of the influence that brands hold.
- I think it's important to always pause
and think a little bit about,
"Okay, why am I buying this product?"
- And like it or not,
brands aren't going anywhere.
- I've heard lots of people push back
and say that, "I'm not into brands."
I take a very different view.
They're not doing anything any different than
what someone who affiliates with a brand is doing.
They have a brand, it's just an anti-brand brand.
And I think about,
what is it that I've learned about identity over time?
I think a lot of it has to do with
the fundamental need that we as humans have
to have support systems.
Perhaps it was the church, it was the community,
it was these other institutions that existed.
Now, brands have stepped in as pillars of our identity.
So I'm very much motivated to see that
in that positive light.

131
week 5-6 : slide 64 – what makes a truly great logo

https://www.youtube.com/watch?v=RBTiTcHm_ac

This is Michael Bierut.

“I’m Michael Beirut.
I'm a graphic designer” You might be familiar with is work, but interestingly he thinks
that logos are just kind of overrated.
"I'm actually often very ambivalent about them."
Let’s back out a second.
What is a logo?
Basically a face of a company.
"Some are beloved.
Some... the swastika is a logo and it's reviled.
You know?"
They have to work at tiny sizes, and huge.
There are three specific types.
First type is the Wordmark.
"the wordmark is the easiest one.
And it's the one we're all the most familiar with.
I mean John Hancock's signature is kind of a word mark.
It can look crisp clean and modern like the new Google logo looks.
Or it can look somehow that it has roots in a shared heritage the way the coca cola
logo
looks.
You know?"
The second is PICTORAL.
"Pictoral logos often function as a kind of rebus.
It's a picture, and it's identifying the name of the company.
Sometimes directly like Target.
Sometimes indirectly like LaCoste."
The third kind is kind of the holy grail.
Abstract inconography.
"The third type is favorite kind of category because it just seems almost like magic."
As a designer people will come to me and they'll say I want something like the Nike
swoosh.
They think the Nike swoosh was the Nike Swoosh the day it was drawn.
But it was nothing the day it was drawn."
The company that birthed nike commissioned a design student named Carolyn to
draw some
ideas.
The Nike founders didn't really like it.
"They sort of said awww let’s use that one."
It wasn’t an overnight success.
And then they started putting it on the sides of shoes.
The shoes were good and then the genius of Nike's marketing apparatus made us
further
associate that product not merely with performance athletic gear but with the very
idea of athletic

132
achievement itself.
And that's how over a long time a little mark means something big.
"That’s exactly how religious symbols work – it’s obviously not just anything inherent
in about these shapes, but what these shapes have come to represent in the minds
of the
people who are looking at them."
But there's a fourth type of logo that goes beyond these three types, and can use
elements
of each of them: The Logo System.
A kind of framework, but one that can have endless permutations.
The first huge, popular example of the logo system would be MTV.
But google’s daily “doodles” are another great example the logo system – a familiar
mark that also can point to other ideas and issues.
This approach all has to do with technological change.
"It used to be if a company was doing a logo there'd be this military operation by
which
it would be inscribed on all their equipment and on their airplanes and their retail
facilities
and gold pins and cufflinks would be made for the executive suite and put on
spitoons
in ashtrays, the top of the skyscraper, and everyone’s business card.
Right?
Nowadays none of that’s important as an email signature or your twitter avatar or
the little thing that sits next to your URL.
Those things are much more ubiquitous and they can be changed at the drop of a
hat.”
Bierut used this system approach for his Hillary Clinton logo.
"we wanted to have a mark that could reflect the electorate, and reflect the issues.
The simple forms that comprise the H with the arrow in it are actually designed to
hold
not just two colors such as red and blue, but any colors you want" The use of logo
systems
seems to be continually on the upswing – probably because it allows the the brand
using it to
expand the conversation beyond it’s own name.
"The logo really reminds people that’s what our priority is today."
But at the end of the day, regardless of the shape, style or system, it might not matter
what the logo is.
"It really is about thinking of these symbols as being empty vessels in a way.
And then you pour the meaning into them.
Some vessels are better at holding one kind of meaning."
So what’s this all add up to?
Basically, those fights people get in about new logos are pretty misguided.
"They think they’re judging a diving competition, but actually all these organizations
are in
swimming competitions.
It’s not what kind of splash you make when you hit the water.
It’s about how long you can keep your head above that water."
Logos need to have a long life, not win points in a discussion.

133
12 years after the birth of the nike logo, Nike came back to that graphic design
student
Carolyn with a gift "A Nike ring with her own trademark on it, the swoosh.
Thank you very much it's beautiful."
And an undisclosed amount of Nike stock.
"Wow."
In 1973 when it was designed, her was $35.

134
!!! Week 5-6 : slide 20 – How Apple's Design Changed the Computer World

https://www.voanews.com/a/apple-design-changed-computer-world/3263590.html

pas de script

135
week 5-6 : slide 129 – What are NFTs ?

https://www.youtube.com/watch?v=EJzB_Fa27ko

[Music]
what's worth more
a cute cat lebron james dunking or this
tweet
if you ask the internet it's the tweet
in the past year these three items were
valued online for the combined total of
4.4 million dollars
what gives them that value
it's because they're non-fundable tokens
for nfts
they represent a unique piece of media
like an image or video and they live on
a blockchain at the start of 2021 few
people had heard of nfts
by the end of the year over 24 billion
dollars had been spent on them
it's a wild potentially lucrative
marketplace why
would anyone pay 69 million dollars
for a jpeg and a hyperlink
you're afraid of missing out so it is a
frenzy but i also think in the frenzy
we're seeing the pillars of stability
grow as well
are they just overpriced digital art or
a promising technology that could
transform the way we live
the most exciting uses for nfts are
possibly things that we can't even
imagine yet
[Music]
to many the world of crypto is a foreign
universe
as bizarre as alice in wonderland
i'm alice fullwood as the economist's
finance correspondent i have spent lots
of time writing about crypto and nfts
one of my pieces was on our cover in
september with a pretty cool image
it would make a good nft right
we thought as much so we decided to sell
it as one
and down into the rabbit hole i went
three two one

136
in this world everyone talks in acronyms
money is cryptocurrency
and goods are nfts
an nft is a token a digital asset that
exists on a blockchain
cryptocurrencies like bitcoin are also
tokens
but bitcoins are fungible or
interchangeable
you can swap one bitcoin for another one
and still have the same thing
you can't do that with an nft
they are non-functable or unique assets
they link to the media they represent
providing an irrefutable digital
certificate of ownership
to sell ours i minted an nft linking to
our cover image and put it up for sale
on an nft auction site
and watched as the bids came through
our nft sold for 99.9 ether a
cryptocurrency commonly used by nfts
it was equivalent to about 420 thousand
dollars
we donated the net proceeds to the
economist educational foundation an
independent charity we support
but why was it worth more than the other
images of our cover going around online
the fact that our nft was the only one
minted by the economist gave it scarcity
with that came value
and purchasing it on the blockchain
meant the buyer could prove they were
the rightful owner
being able to track provenance and
monetary value has been a real game
changer for digital artists
which makes sense when one of the men
who created them is one
i've been doing digital art for a long
long time um and
got interested in it uh in the 90s you
would do internet-based projects but in
all of those cases that media kind of
goes out and it's kind of just out in
the wild right and there's no question
of economic value of that stuff for a
long time it was difficult for digital

137
artists to make money with their work
until blockchains like the one that
underpins bitcoin were invented that was
something that artists needed they
needed a way to be able to share their
work as they were doing but they also
needed to be able to hang on to
something so that they could have you
know be able to participate in a market
in 2014 kevin teamed up with a technical
expert anil dash to mint the world's
first nft
and present the idea to a conference
full of people
hey are you interested in some animated
gif art am i ever
i got a good i got a i got a cool thing
here check this out hey do you want to
you want to buy that yeah name your
price in any currency
maybe you're not surprised to hear the
audience didn't really understand what
we were talking about at the same time
even back then and you know in 2014 i
knew that it was an important idea and i
knew that it was a potentially
transformative idea
it took seven years for nfts to hit the
mainstream
in 2020 around 150 000 nfts were sold on
openc one of the biggest nft trading
platforms
in 2021 more than four times that were
being sold monthly
there were a few things that drove that
boom
the first is covert 19. it seems as
though lock down boredom or stimulus
checks tempted a lot of young people and
new people into dabbling in experimental
kinds of financial markets you saw
bitcoin reaching new all-time highs you
saw the sort of second biggest
cryptocurrency ethereum also reaching
new all-time highs
as crypto wealth grew
the supply of nfts grew with it
new artists started minting nfts in
their thousands

138
skyrocketing some to previously
unimaginable levels of success
some were shocked when traditional
auction houses like sotheby's and
christie's bought in on the action
[Music]
kesh is a digital artist whose work
featured in one of christie's first nft
auctions
i don't think that 13 year old kesh
would have ever imagined
that she would be selling her artworks
at christie's
next to warhol and some of the greatest
artists that have ever lived
it's just so exciting because it really
just shows the evolution of digital art
in a sense and the fact that it is now
really being considered as a real art
form
on the business side of things the shift
to nfts has been lucrative colleen is
vice president of auctions at artnet a
global marketplace for online fine arts
sales
that made the leap to nfts in late 2021
for our art nft inaugural sale the
average transaction price in that sale
showed a two hundred and seventy percent
increase versus the average transaction
price in one of our traditional sales
and likewise a hundred percent of our
buyers in that first sale were new to
artnet auctions we were able to
cultivate an entirely new potential
client base by putting our toes in this
world and i think the runway for growth
there is undeniable
but buying and selling nfts comes with a
lot of risks
for those minting them it can be a legal
quagmire
quentin tarantino learned that the hard
way when he tried to sell the script of
pulp fiction as an nft the typist is the
only person who has ever seen it
uh he was like well that sounds like it
would be a pretty good nft he's now
being sued by miramax who say it's their

139
intellectual property
for those investing in nfts there's
another real danger inflated prices
those who are thinking of investing in
nfts for investment purposes
the reality is 99 of them might not
trade on the secondary market for much
of anything
skeptics say the whole market is a ponzi
scheme where those who got in early are
now making money as new buyers enter the
market and bid up prices
but these flaws haven't stopped nfts
from being widely used they are moving
beyond the world of art and into the
metaverse
[Music]
virtual worlds like these are growing in
number and scale you can read our
coverage on them by clicking the link
above
nfts could be the building blocks for
digital economy within these spaces the
things you buy be it a hat for your
avatar or a plot of land can be
purchased as nfts
but some gamers are skeptical they worry
that this is just another way for video
game companies to make money from
players
big brands are also seeing dollar signs
adidas for example has started making
metaverse ready digital clothing
but nfts could also have more serious
uses
being able to securely document and
track ownership could open up some
powerful new possibilities
at their core nfts are just unique
digital representations of assets and
that could essentially apply to any
asset be it real world or digital a
university degree for example could be
issued as an nft
a degree living securely on a blockchain
and verified by the university would be
near impossible to fake
and could be linked up to existing
online sites like linkedin

140
nfts in real estate could streamline the
process of buying a home you could dream
up hundreds or thousands of different
ways to potentially use that technology
but if nfts are to become more widely
used there needs to be a lot of
innovation
the lack of a middleman means there's no
one to help if there are any mistakes in
a transaction
handling nfts is also expensive
adding nft to a blockchain involves
paying fees known as gas which fluctuate
wildly and can end up costing a lot
we paid around 98
to sell hours
the carbon cost can also be high
most nfts are issued on the ethereum
blockchain and the network of computers
that maintains the ethereum blockchain
uses an awful lot of energy to do it the
carbon cost of our auction was about the
same as a long-haul economy flight
there are thousands of startups trying
to find solutions to these problems it's
a time reminiscent of the dot-com boom
when market madness surrounded a new
technology
but when the dust settled the internet
became the backbone of our society
could the same happen with nfts
there's both investment potential
there's trading potential and there's
very functional potential as well in so
far as things authenticate or provide
proof of ownership so i think gold rush
absolutely paradigm shift absolutely
and on the precipice of a new
era really right now nfts especially
those linked to digital artworks are
over-hyped and overpriced
but the technology is worth watching
closely it's possible that when
collecting a degree or buying a house
our future could lie with nfts thank you
for watching for more of our coverage on
decentralized finance and nfts please
click the link and don't forget to
subscribe

141
week 5-6 : slide 137 – Planned Obsolescence: How companies trick you into buying a
new phone

https://www.youtube.com/watch?v=7aYJPonRJd8

[Music]
accidents happen
you probably know that heart stopping
moment when your phone breaks
your photos messages contacts um
when was the last time i saved the
backup basically our whole life is on
these things which
makes it so annoying when they break but
it happens
all the time what's interesting about a
smartphone is pretty much everything and
it breaks
we're going to literally look behind the
surface
are these things built to break so we
keep buying new ones
okay i think
and we're going to find out what happens
to all these broken phones
well they create massive environmental
problems
but let's start at the beginning this is
my old phone that died a couple of years
ago because the battery couldn't hold a
charge anymore but
today despite all the clumsiness in the
world united in this body
i'll try and fix it this is a repair kit
i ordered online for 25 euros
that's the battery that we're trying to
get into the phone
it comes with all the tools you need a
pair of tweezers
a suction cup tiny little screwdrivers
manual let's see it can't be this hard
can it well
we'll see about that for now let's take
a look at just how
crazy we are about smartphones we buy
around 1.5 billion of them every year
manufacturers really must be cheering a
lot of people actually believe
they're inflating this demand through a

142
thing called planned obsolescence
it was invented to stimulate the economy
during the great depression in the u.s
the basic idea is that the quicker a
product breaks the sooner people will
replace it with a new one
and some companies really did start to
shorten the lifespan of their products
the filaments and light bulbs for
example were made thinner so that they
would burn out after just 1 000 hours
instead of double that and nylon
stockings were designed on purpose to
tear more easily
even though it's actually a pretty
strong material
things that you only use one time and
then throw away that's a
that's a perfect product for a
manufacturer it's because
their economic model then repeats and
repeats and repeats
so is the same truth for smartphones are
they
designed to break the idea with planned
obsolescence is that there is intent
there is a smoke-filled room
with evil people that are saying we're
going to make these things die in 18
months
i'm not sure it works that way instead
with the way that this works is that the
marketing
people are saying to the product
designers uh don't put any effort into
making this thing last longer than the
lifespan of the original battery
let's take a look at apple they were
sued because people noticed their phones
got a lot slower after they installed a
software update
and guess what in 2017 apple admitted
this was true
and later agreed to pay a settlement but
they said they throttled the phones to
extend their lifespan
not to get people to replace them is
this really true
maybe the thing is companies might be

143
doing this but
it's extremely hard to actually prove it
well i wanted to talk to them about this
i reached out to the three biggest
smartphone producers but
none of them replied but even if we
can't be sure about planned obsolescence
they've got other ways to sell more
phones the biggest
advancement in the history of
iphone the most advanced iphones
ever the most advanced iphone we've ever
created
every release of a new phone model is
basically saying
the one you bought last year is now old
get a new one
so you um you maintain your position in
consumer
society by what you own and what you
wear how you present yourself uh you
present yourself through
possessions it adapts to all paces of
life
this is psychological obsolescence
convincing people they need a new phone
even though they have one that works
perfectly fine
and even if you don't care about the
latest fashion and would love to keep
your old phone forever
let me tell you they are quite hard to
repair
this is the step that i've been warned
off when you open the case there's a
cable
that's in there you'll want to kind of
hold it with your hands so that you
don't pop it completely open you want to
just crack it open a little bit
okay
[Music]
okay i think
imagine if you bought a car and the
tires that came with it
could not be replaced so when the tires
were out you had to get rid of the car
and get a new car
we would not put up with this this would

144
be crazy and yet that's the situation
that we have with smartphones
turns out the cable that i broke is not
that important but this is really
hard there are tiny screws that you need
special screwdrivers for
and the biggest challenge yeah i think
this is glued
is removing the old battery which is
glued into the case
making things hard or impossible to
repair that's another strategy to get
people to replace them more often
[Music]
[Applause]
i think i got it it's coming off
success all that's left to do now is
piece the whole thing back together
by the way you're going to void your
warranty the moment you open up your
phone so
before you attempt to repair anything be
absolutely sure you know what you're
doing
not like me it's not really closing up
here which makes me think i've
reassembled something wrong and don't
want to break it now this is not going
in
[Applause]
well up to this point it went pretty
well but i just can't get this thing
to shut like how hard do they want to
make it i think i'm defeated
yep that thing is not powering on
anymore i tried for hours and couldn't
replace something as simple as a battery
most likely what is happening
is that you have a loose cable that's my
remote internet tech support i think you
can still get this thing running
if if you're if not don't feel bad about
taking it into a repair shop and asking
them to finish it for you
or i could just throw it out i mean
that's what a lot of us do
and not just with our phones
we have seen a rather increase of the
e-waste mountain so that

145
globally speaking we are generating now
nearly
54 million tons of
e-waste each year only less than 20
of this is properly recycled the rest
poses a real danger to
the environment and the people who
process it
or it never leaves our homes a lot of
our material
is still sleeping in our drawers in our
cellars
they are full of valuable resources and
very
limited resources as well all this
material is then finally not available
for the production
[Music]
we have an ethic anesthetic
of throwing things away and so it's
going to be very difficult
to uh to change this manufacturers are
pointing at consumers consumers of 0.8
manufacturers i think at the end of the
day
everyone needs to take responsibility we
are in a completely unsustainable
electronics industry and it's all of our
faults
and and we can do better and we we can
we should and we must
do better
what do you think should companies be
forced to make their products
easier to repair or is it also on us to
choose more carefully which products we
actually buy
let us know in the comments and hit
subscribe for more videos like this
every friday

146
week 5-6 : Dig Deeper (slide 139) - Crocs: How the Polarizing Footwear Brand Became
a Fashion Statement | The Economics Of | WSJ

https://www.youtube.com/watch?v=kO5FURUKTi4

- [Shopper] They are so cute

and they even smell like the cereal, y'all.
- [Narrator] , Crocs the colorful shoe
that first became popular in the early 2000s,
hit its peak in 2021.
The company reported a record annual revenue
of $2.3 billion in 2021,
up over 60% from the previous year.
And its stock reached record highs.
- The past few years for Crocs has been this moment
of heavy collaboration, constant releases.
They're really trying to put themselves
in front of people
that might not have considered Crocs prior.
(upbeat music)
- [Narrator] The company's success coincided
with the pandemic,
leading some to credit the shoes' popularity to timing,
especially as its stock price has been dropping
since the pandemic boom has waned.
But other comfortable footwear brands
didn't take off the way Crocs did.
So how did Crocs make a name
for itself during the pandemic?
And how did it find success as one
of fashion's most divisive shoes?
This is The Economics of Crocs.
The company was founded in 2002,
the same year it debuted its classic clog.
The name Crocs was inspired
by crocodiles who live on land and in water.
- When Crocs were first released,
they were intended for a consumer
that was looking at them as a functional thing,
so probably gardeners, people that were on boats,
people that worked all day on their feet,
people that worked on a line at a kitchen.
- [Narrator] Part of what makes them so functional
is the material,
a proprietary closed-cell resin called Croslite
that's slip resistant,
lightweight and easy to clean.
- Producing a molded shoe
is certainly simpler in a lot of ways

147
than assembling a sneaker.
The most underrated advantage they have
over the marketplace
is that it's clear that they're able to kind of do things
that other companies would not be able to do
because of their scale
and because of their production capabilities.
- [Narrator] Crocs sales tool off.
In the first 3/4 of 2005,
it sold 4.4 million shoes,
hitting a revenue of $75 million.
Part of the reason for its initial success
was that the shoe was easy to get.
It was available at retail stores,
gift shops and mall kiosks.
In 2006, Crocs purchased Jibbitz,
a company that made small plastic shoe charms.
That same year, the company went public
and became the largest-ever US footwear IPO at the time.
But in 2008, in the midst of the financial crash,
the company suffered a net income loss of $185 million.
Though the initial craze had simmered,
the brand still managed to hang on
to a relatively large customer base
over the next few years thanks to its global presence.
In 2014, Crocs started making major changes
to its business model,
closing dozens of stores, shifting away from malls
and turning to online sellers like Amazon.
- Crocs announcing today it will eliminate nearly 200 jobs
and close a number of retail stores as part
of a restructuring effort.
- [Narrator] The company also cut back
on the number of styles it sold by between 30 and 40%,
and refocused on the classic clog that made it famous.
The following year,
Crocs invested in a global marketing push
to relaunch its brand image.
(lively music)
Despite its efforts,
the company's stock held steady
until 2020 when the global pandemic hit.
- Prior to people working from home
and not wearing their dress shoes,
not wearing their heels,
there was already this rising wave
of comfort-minded, comfort-first footwear
that was really becoming more popular.
Of course, that accelerated during the pandemic.

148
- [Narrator] The comfort aspect is what many call the key
to Crocs' success but another important factor
is how easy it is to customize the shoe with Jibbitz.
You could move them to different Crocs over time
as you got a green pair, a camo pair, a pink pair.
The Jibbitz would stay with you and they were yours.
They were almost like the way a key chain on a backpack was
at a certain point.
- [Narrator] This idea of individuality
and self-expression is one
that the brand emphasizes through its marketing campaigns.
(upbeat music)
And on social media,
the uniqueness of the shoe's design has sparked debate.
- Even going back to Crocs' early days,
there were two warring factions
of Crocs are ugly and they're a blight on society,
and we need to get rid of them.
- I don't care how comfortable they are, they're ugly.
- And then there were people that said,
no, they're cute and they're kind of doughy
and they're fun.
- [Shopper] Look how freaking cute these are.
- [Narrator] Crocs leaned into this polarization,
partnering with celebrities and well-known brands
to create limited edition versions of the classic clog.
- I think that's probably the biggest shift
within the fashion world of the past decade
is that people truly seem to design for Instagram
because you wanna stop people from scrolling
and certainly, a show plastered
with fried chicken does that.
- [Narrator] In 2018, Crocs says its Balenciaga clog,
an $850 four-inch platform shoe,
sold out within hours.
And in 2021, Crocs says it partnered
with more than two dozen brands, artists and creators
through collaborations and license programs.
- Sometimes it was through Jibbitz
but sometimes it was like these kind
of crazy revamping of what their clog was.
- [Narrator] Constantly releasing new collaborations
has not only kept Crocs in the press
but it has also helped it break into new markets.
- There're like Croc collectors
that go after every model.
- [Collector] Honey, I am overflowing with Crocs.
- The same way that Nikes resell
on website like Stock and eBay,

149
Crocs are now reselling.
- [Narrator] Crocs and other comfortable shoes
may have peaked with the pandemic
as people begin to migrate back into work
and consider more traditionalist footwear.
But many others are still prioritizing comfort.
- We're saying that with a lot of doughy running sneakers
that people are wearing.
We're seeing that certainly with the growth of slides
as a huge business in the luxury market.
- [Narrator] Crocs's stock has dropped around 60%
since its November 2021 high.
- I think the market's nervous about the short term.
So we're definitely seeing supply constraints
in the first quarter.
- [Narrator] But the company says its fourth straight year
of revenue growth is fueled by continued global demand,
and it expects revenue to grow to over $5 billion by 2026.
- I think that they might plateau at a certain point.
You can only reach so many consumers but I think for now,
they have been able to convince enough consumers
that they deserve space within their closet.
- And they gotta have the two fingers.
(shopper chuckling)
(playful music)

150
week 5-6 : Dig Deeper (slide 139) - How Oatly Built A $100 Million Oat Milk Empire

https://www.youtube.com/watch?v=kVp0n9Nnt2Y

this is oat milk it's one of dozens of

non-dairy milks to enter the dairy
alternative seen over the last 20 years
it seems like these days if it grows in
the ground someone will try to milk it
plant-based milks from almond to soy are
big business from August 2000 18 through
August 2019 total sales of plant-based
milks were about 1.8 billion dollars
it's safe to say plant-based beverages
have moved from the fringe to mainstream
but of all the brands that come to
market
oat Li is an outlier when the Swedish
companies Americans apply a barista
blend oat milk ran dry in 2018 it
started an online bidding war a case of
12-packs of oat leaf that sells today
for around $50 was selling for over $200
on Amazon a small swedish company with
an unknown product in an increasingly
crowded field muscled its way into
coffee shops and homes around the
country here's how only did it there's a
good reason
oat milk was invented in Sweden the
Scandinavian country is known for its
dairy production and consumption even
with softening demand Sweden produced
around 750 4,000 tonnes of milk in 2018
and back in 1990 Swedes consumed on
average 330 pounds of milk per person
per year for comparison that year
Americans drank about 233 pounds
but as milk consumption grew so did
awareness about lactose intolerance a
condition that makes it difficult for
some people to digest the sugar called
lactose in cow's milk in that growing
awareness of the digestive issues
surrounding cow's milk created a huge
opportunity for plant-based alternatives
oat milk was developed in the 1990s by
Ricardo stick who was working as a food
scientist at Lund University in Sweden

151
post a studied under professor Arne
dahlkvist
known for discovering the underlying
factors to lactose intolerance in 19
three our founders just figured like
okay if vast majority of the world
population are intolerant to milk why
don't we make something that is actually
designed for human beings not baby cows
and then looked like all over the place
but they fire found the solution right
in front of the nose which is like oats
Ricard and his brother bjorn patented
the invention and founded Oatley in 1994
but it would take 20 years for oat milk
to finally gain traction to talk about
the rise of Olli is to look at the
downfall of Dairy Milk since 2015 cow's
milk sales have dropped by about 3.4
billion dollars but it's still in first
place by a lot total sales of cow's milk
in the u.s. from August 2018 through
August 2009 teen we're about 12 billion
dollars sales of oat milk during that
same time period were just 40 million
dollars
experts say only 1 in 10 consumers use a
milk alternative and only 16% of those
consumers use old milk so it's still a
very small portion of the population
that uses oat milk but it's quickly
rising consumer trends are in oles favor
we know that only came to the market in
2016 and certainly with the cult
following that it's that it's grown
within the coffee community we saw that
in about in 20 so it's 2017 2018 but
really over the past year it's really
grown Nielsen data shows that from 2018
to 2019 sales of oat milk in the u.s.
skyrocketed from 6 million to close to
40 million dollars in sales so that's
reflecting a 500% increase in dollar
sales which is really impressive only
generated over 100 million dollars in
sales in 2018 and we're gonna double
that this year and we expect to that to
be double the year after that - you know
it's truly an exponential curve Oatley

152
sat in relative obscurity in Malmo
Sweden for its first 20 years but in
2012 only brought in a new CEO with a
radical new vision for the
and in 2014
Tony Peterson completely overhauled oles
image Peterson revamped the logo
impacting by only using English on its
packaging he was able to give the brand
an identifiable voice no matter where in
the world it was sold he commissioned an
environmental impact study to show that
producing oat milk was better for the
environment than dairy the company
created oddly endearing YouTube videos
and came up with a barista blend
specifically designed to get the
attention of third wave coffee shops so
with the new look and a tasty product
Olli set its sights on America if you
looked up household penetration of
plant-based milk is way higher in the US
and you can steal that it was continuing
to grow so like obviously like we needed
to be there there was no other way
around it oat Lee's introduction to US
customers in 2017 was unique to say the
least at Lee's u.s. general manager Mike
Messersmith said getting people to try a
new brand let alone a product they've
never heard of before is almost
impossible so rather than enter the US
market through a large grocery chain or
beverage distributor Oatley sent
representatives to introduce the product
in person at high-end coffee shops
around New York City we wanted to try to
think of what would be that ideal first
experience for someone to be able to try
the product for the first time and for
us that we thought about specialty
coffee shops and tea shops where if you
were able to take the recommendation of
your local barista you see every day and
try our product through an expertly
prepared latte or cappuccino that would
be a really amazing way to kind of be
introduced to even just the idea of them
the gamble paid off I always make jokes

153
that it's like Oh two o'clock because it
seems like it comes in waves
apparently world travels fast in the
coffee community especially when there's
a hot new product with extremely limited
supply when I started working here our
distributor would only give us
nine cases of Oatley a week there was a
time when we were like seriously running
out and really had to be careful with
how how we were using it like to not
waste too much when steaming or like
putting it out but nowadays I think that
the great Oatley shortage of 2019 is
over oh it was introduced the u.s. in
late 2016 ba1 exclusive coffee partner
intelligentsia in January 2017 it
expanded to other shops and by the end
of that year it was served in about 650
locations as of October 2009 teen Oatley
is available in about 7,000 shops and
5,000 grocery stores in the United
States the problem with such rapid
growth is that only actually had to meet
its crushing demand when we after the
u.s. we had no idea of how big it was
going to become and especially not how
fast it was going to happen so we were a
bit like I'm prepared and taking by
surprise by the massive hype around the
brand in April 2000 19 only opened a
20,000 square foot manufacturing
facility in New Jersey and is opening
another in Utah in the spring of 2020
now that Oatley has a foothold in the US
it's plotting its next big expansion
China we use the same strategy of
entering through coffee shops like the
Third Way coffee shop and then expand
and it's been working really really well
they actually more third way coffee
shops in Shanghai than there is in New
York City which is pretty interesting
hopefully is undeniably gaining in
popularity with coffee lovers but is it
catching on with the general public I
have never tried oats milk
I have tried oatmeal I love it in coffee
I've never tried oats milk it's pretty

154
bland yeah that's all I drink
I've drink a lot of milk in fact I used
to drink a gallon a day cuz I was a
bodybuilder but I don't know if I've
ever had oat milk I actually watched a
video on cows and it really broke my
heart so I jumped on an O train and I
only drink oat milk now and also because
my skin but is it as healthy as regular
cow's milk not necessarily from a
nutritional standpoint
cow's milk of course if you don't have
any you know allergy or when you're
looking at lactose intolerance
there's just purely looking
nutritionally cow's milk and then soy
milk tend to be more superior than some
other alternative while oat milk isn't a
nutritional replacement for whole milk
it has the two things that matter to
baristas consistency and taste I can
pour equally as complex as designs with
oat milk as I can with whole milk I
can't pour complex stuff with soy milk
or almond milk just like the consistency
of it is not close enough to a whole
milk but I think Oatley manages to get
that like sweetness and that creaminess
of soy milk without like without having
that cake batter kind of aftertaste
chemically kind of aftertaste all these
competitors are starting to take notice
of its increasing popularity major
players like silk and Quaker have
recently come out with their versions of
oat milk so we see a number of big
players playing in the space and I think
that's a good thing right
beyond oat milk you're seeing other
varieties now coming to the market like
oat milk yogurt oat milk frozen desserts
oatmeal creamers even within the ready
to drink coffee category you're seeing
the oat milk latte is now coming in
bottles form so I think it's good it's
an exciting time for the alternative
dairy category in the field is expected
to get even more crowded but replacing
Oly success will be difficult brands

155
like impossible foods and beyond meat
were able to recreate the burger eating
experience without sacrificing taste and
that is exactly what Olli was able to do

156
!! week 5-6 : Dig Deeper (slide 139) – Marketing in digital world

à coursera pas disponible sans inscription

157
 Video diamond ring:

Eleven billions dollars spend in America every year for weeding jewellery

Fin 19e me, 1er diamant trouvé en South Africa

Cecil Rhodes from the De Beers company in 1888 —> diamond trade

1930: Great Depression so the diamonds sale dropped off

1938: De Béer commissioned Ad Agency N.W Ayer and Son for marketing diamond as necessary luxury in Americans live

Agency decided they had to convey the idea that diamond were a gift of love : larger and beautiful the diamond is, the greater the show of love
—> men
Women : had to view the diamond as an integral part of courtships

The agency went to Hollywood, asking producer Margaret Eltinger with reinforcing the image of diamond as integral to love

Change de title « diamond are dangerous « to « adventure in diamond » and shpplied (fournir) Jewell’s for stars like Claudette Colbert

Lovela Parsons (gossip columnist = journaliste) —> articles about love life of the stars —> picture of engagement rings —> Grace Kelly 12
karat rings

Rings became symbol of upward mobility (ascension sociale)

De Beer managed to go into school and churches to discuss the history of diamond ~ sowing the seed with children that rings = mariage
tradition
1949: men went off the war so mariage increase

1938-1941: diamonds sale went up 55%

Ayer associated diamonds with piece of classic art

1947: Frances Gerety : diamond is forever = avertis if slogan if the century

1970 : James Bon pd film : diamond is forever

Diamond rings would be kept by the betrothed (fiancé) for eternity, creating a special sentiment and also a few will be resold so a chance to De
Beer to sell more
1980: how can you make 2 month’s salary last forever (=salary = good amount to spend on a ring)

De Beer and NW Ayer and Son played in our emotion and influence the culture of mariage
 Vidéo peter Fader ~ customer friendly VS customer centric

Apple, Nordstrom, Starbucks: customer friendly mais pas customer centric

Customer centric = being customer friendly (good service, new product) but not for every customers, only for
the ones that provide a lot o value => pick and choose customer

Threat some better than other —> give them more consideration

Customer centric : Amazon, Netflix, IBM

1. Ability to understand customer at a fairly gradual level to identify the customer or segment that are
valuable
2. Deliver different P/S to different customer

Segmentation : observable things (demographic, geo, identifiable characteristic) mais surtout segment on
their value (futur looking at customer lifetime value CLV) —> what they will be worth to the Firmin the future

Calculate the CLV : business setting, heterogeneity (diff costumer have diff CLV) cost of acquisition

Customer relationship management CRM : help to collect the data, organise and understand which message
you send to which customer

Customer are spoiled and informé so they have lot of power —> companies have to be a solution provider
(fournisseur) —> how the product is going to fit in the live of the customers —> offer solution and not only
ingredient

Product centric strategy = all companies = high volumes and low cost
Customer centric strategy = more profitable

Average customer don’t exist -> customer centric = reconnaître + célébrer l’hétérogénéité
 Startup Carvana

Changing way people buy car

Focus on the vison : could we sell car entirely online and how do we get people trust that it
was going to be ok

Problem : people need a teste rive

Solution : use technologie (video) so customer can experience it online

Build something new :

1. Build a system that is better for them
2. Find those customer —> Google and YouTube (share the message and target the
customer)

H
 Influence purchase behaviour

Purchasing decisions economics is based on the idea that customer is rational so we weight the product and
his cost —> we come to the right decision based on what will maximise our pleasure

Children influence parents

People think that low price = low quality —> most expensive is best —> Gersende : do higher prices signal
higher quality (1985)

Looking at the health —> when people see label such as low salt tend to think that the taste is not good

Olson & Dover : cognitive effects of the deceptive advertising (1978) —> people see a coffee advertisers which
is not bitter it tastes less bitter —> advertising change the taste of the products

Iyengar & Lepper : when there is to much choice people are overwhelmed by choice and tend to give up and
don’t buy anything (2000) or use world as sale as an easy out

The word free affects your decision-making so if you don’t buy it you feel like you missing something—> feel
the pain of loss more than the joy of gain

Irreverent attributes like the worlds silk (soil) tend to influence the brand that we buy

Purchases make us happier (Deleire & Kaul)

Ego depletion = form of sensory overload (surcharge) : put loud music in a store to put the customer in
pressure and so you are more likely to respond to suggestions from the sales person

Bad/good mood influence how you evaluate products (Gardner 1985)

Role of physical attractiveness (smiling to the client) can influence the mood of the customer and so induce a
stronger desire to purchase the product

Dunning Kruger effect : the more ignorant you are the less are to realise it so you maybe think that you not a
lot but in fact you know nothing —> ignorance is invisible to ignorant person

Credit card make people more likely to overspend because it distances you from the payness payment
 Evaluation~Video
5
Buyer’s remorse = postpurchase cognitive dissonances

Buyer’s remorse is higher when there’s a high level of financial risk or the
purchase is more important to the customer

Firms should reinforce that clients made the right choice buying their
product

More informed choice to limit the buyer’s remorse

Post purchased cognitive dissonance is the interns, conflict that arises

from inconsistencies when customers question the appropriateness of
their purchase after the purchase
 Data analytics video :

Data to understand :
Customer buying habits
Create more effective social media messaging
Predict the number if daily visitors (how much staff we need)

Health car industry :

Data to predict when rush hours will it in the clinic
Reduce the wait time —> improve the patient experience —> better use of the healthcare worker’s time

Coca-cola:
Uses data from customers feedback to creat advertising that speak directly to different audiences with
different interests

=> uses machine where you can build up your own flavour to collect data about the different kinds of
flavour combinations people like and then inspirations for new product flavour

Google
 First, second, third - party data

First- party data:

Collected and own by the brand
Free and differentiated and highly relevant for the brand
Transactional and quantifiable data

Ex:
Subscription and emmener ship data and social data
Online behaviour on the website/app
CRM data

Second-party data
Gained from a strategic partnership
Not sold ans available only those within the agrément

Ex:
Credit card with an airline

Third-party data:
Paid online and offline data made available to advertiser for insights, targeting and
measurement
Broadly sold and easily accessible
Information collected by companies but don’t have a direct relationship with the customer
Always available
 What is strategy :

Tactics , goals, objectives, descriptions but NOT STRATEGY:

- be the low cost provider —> global strategy

- integrate a set of regional acquisitions
- provide unrivalled customer service
- Move from défense to industrial applications
- Always be the first mover

Strategy = Greek word Strategos : the art of the general (art of war)

Book the art of war (sun tzu) : goals is to win

Strategy : provides clear answer to four key questions :

1. where do we compete : what competitive arenas or markets will we be active in

2. What unique value do we bring : why do our customers choose our products and services when they
could have chosen the products of our competitors

3. What resources and capabilities do we utilise to deliver that value :

Capabilities = anticipate rival’s move and identify rival’s weakness

4. How do we sustain (soutenir) our ability to provide that unique value

Exemple : IKEA
Sels inexpensive furniture, is the first fourniture retailer with store in every country ikea has greater scale
that local competitors —> unique value proposition = inexpensive fashionable furniture

Products are design to be manufactured by suppliers using mass production techniques and then
shipped in flat boxes and the final assembly is done by the final customer (drops the shipping cost) —>
complicate to competitors to imitate

IKEA doesn’t compete in the high-end fourniture business, doesn’t provide high levels of service or
customisation to customers, designs most of its furniture but doesn’t try to manufacture its product

Henry Mintzberg :
Intended strategy
Emergent strategy
Realised strategy
=> sometimes strategy is more about what you actually do rather than what you intend to do: real
strategy emerges as you do it and may not line up with your plans

Importance of staging and timing and well orchestres set of time steps
 Marketing myopia

Theodore Levitt: marketing myopia => a nearsighted focus on selling products and services rather
the seing the big picture of what consumers really want

The railroad lines fell into a steep decline because they thought they were in the rail business rather
then being a providers of transportation so they let competitors steal away their passenger (airplane,
car)

The gaz and oil companies think of themselves as energy providers but devote most of their
resources to petroleum —> if they failed develop alternative fluels they risk becoming a companies
without an industry

Organisation invest time, energy and money in what they currently do but they are blind to the futur
—> get lulled into thinking they are in a growth industry rather than continuously capitalising on
growth opportunities

Solution for marketing myopia:

The goal isn’t to sell things but satisfied customers and accept the fact that existing P/S will be
replaced by competitive alternatives so they can identify new offerings that meet consumer’s need
sooner potential competitor
 Gender marketing :

Market segmentation:
Target your customers through market segmentation (Harry Webber)
Deciding customers into smaller groups is good for business
Easier way to divide humanity is the gender (gender spectrum)

Aim is to sell more version of the same product (you sell more because there’s one
version for the girls and one for boys) (toys, cosmetics )
Aim is also to charge more (shampoo for girls cost more than Cham poof or boys)

The companies use colour, shape, packaging, logos, texture, graphic, sound,
names to fade fine the gender of a brand

When product is too strongly associated with one gender the other gender refuses
to buy it —> backfire gender contamination

Females seem more accepting to buy men’s stuff —> when the brand dove
entered in the male market they realised that the name and the bird logo was to
féminin (=macho mystique) —> give the brand a more men appearance

Fujitsu launch a computer for women

Brand find a way to bring the genders together —> inscription for all the family
(signal toothpaste)

1918 blue was for girls and pink for boy

1979: the split between boys toys and girls don’t exist
 Dave Wascha : 20 years of product management :
Chief product officer:

Product manager : solve customers’ problem

1. Listen to your customer —> understand their problems and solve them (ex: smart is a Bluetooth speaker, Color changing lights,
voice connected —> wasn’t listening customer’s need

2. Stop listening to your customer when it comes to solution : (ex: Oral-B electrical toothbrush )

3. Watch the competition : there’s a rich source of information that can help us to better understand our customers problem —>
what they think about our products and other’s products (ex: Amazon review ) —> you see the criticism from the products of your
competitors and then you can improve your product —> use competitors information to improve your product

4. Don’t watch the competition: implementing new things don’t always help us to solve the customer problems (make an
improvement because there’s new technology is not always useful for the customer )

5. Be a thief : take the idea of your competitors

6. Get paid : will anybody will paid for our product (willingness to pay)

Elephant in the room : Evernote in search for profitability decided to change the way that it was pricing its products —> people
were angry because they don’t understand why they have to pay know for the service ) —> Evernote have profitability problems
even if it has a lot of followers —> the solution was to make three type of subscribe (basic, plus, premium) —>
The problems was that they tried to solve their profitability problems and not their customer’s problems and this is the role of a
product manager so that’s why people were so angry

=> make sure that people see enough value on your product to pay you money for it

7. Stop worrying about getting paid : we are time constrained and resource constrained so we have to justify every little things we
do —> create a culture of systematic risk aversion and a culture of incremental thinking drinking small incremental gains

Emotion and social need of customer is important and trusts isn’t build in megabytes but in the fact that we know ours customer
Jerky brand put a toothbrush after their t’ai chilli mango —> increase their cost and they cannot justify if these increase the sold
but they can make the customer smile and then create a lifetime loyalty

Emotional and social need are as important as their functional need

8. Speed up : cost of inaction and delayed —> you are destroying value

9. Say no : it’s not about making people happy but about making our customers happy so we have to say no (ex: I need one
feature for one customer = answer is no) —> say no to protect customer and make sur that you say no for the right vision

10. Don’t be a visionary : you don’t have to know everything’s: products need product manager that are not visionary but
obsessed with customers’ problems and solving it

12. Don’t confuse yourself with your customer : always look at the situation through the eyes of the customer —> bring the
customer situation back to the perspective
 How apple’s design changed the computer world :

New consumer oriented strategy : computer has to do more things than compute

Dieter Rams (German industry): product has to be not only functional but mast also satisfied
psychological aesthetic criteria

Apple make the box that contain the iPhone attractive —> reinvent the phone
 How apple and Nike have branded your brain :

Coke is just soda but a rational customer is willing to pay more for exactly the same things

Study at Duke university show that when participant are exposed to apple logo they performed better on creative task than when they are
exposed to IBM logo because apple has tell the story that it is a brand for hip, cool and creative people —> power of brand

Power of brand = influence your brain that extend beyond the point of sale

America’s Reed: when you make choices between multiplies brands you are choosing to creat an identity :

When you choose Nike you choose a new way to express your affiliation with sport —> Nike is about performance but under it is about identity
Attack on the brand is an attack on yourself

Michael Platt: how perceptions of brand influences our decisions : what happens in your brain and what you reported feeling towards apple and
Samsung are different (you choose sa,sung because you don’t like apple —> feelings were only about apple)—> people don’t realise that they are
subconsciously choosing brands because those brands have a kind of self expressive value

Be aware of influence brands hold = informed choices —> think about why I m buying this

Brands are pillars of our identity

 What’s make a truly great logo

Michael Beirut = graphic designer and author

Log = face of a company

3 types of logo :
- Wordmark : a signature (Google, coca-Cola, Disneyland)
-
1.Getting to know what marketing is and what it can do :
Philip Kotler: marketing strategy

Mantra of marketing = CCD V TP à your job is to create communicate and deliver the V
value to a T target market at a P profit

CCD V : create, communicate and deliver value

a. Creating value = product management

- Ex: Procter & Gamble: connected the creating value with scientific inside
but also outside
- Open technology/ innovation = find the best idea anywhere they came
from
b. Communicate value = branding = brand management
- Packaging: name, logo
- Brand =
o Promise
o inspire the way you act
o emotional: I want mind share and heart share and now we want
also spirit share (firm is civic so it is appreciated because we care
about the shape of the shape of the world = corporate social
responsibility)
c. Deliver value = customer management
- Not only database
- We want to meet the customers and know them really beyond the
database
- We want to co-create with the customer the product and the advertising

Adam Erhart: How marketing works & why you should care

Marketing is the most important things because without marketing you don’t really have
business because it is marketing’s job to attract more customers, generate more lead and
help making sales easy and effortless

à Job = get you more customers and without customer there’s no business

1. Everything that you do is communicating something to your customers à everything

is marketing
- Marketing influence and persuading the perception that other people
have
- control the judgment + highlighting the best aspect of your business

2. Marketing is communicating value

- Marketing is communicating your value to your target market
 - It is all about the other person à being empathetic, understanding them
and solves their problems
- See things from their perspective and give them what the want =
customer centric marketing
- The better you understand your customer the better your marketing will
be so the better you will communicate your value

How marketing works:

Marketing = combination of sciences like psychology, economics, buyer behavior

1. Marketing is about helping other peoples:

- What their pains and problems are and how your business is uniquely
positioned to solve them and then showing them that your business can
help them to achieve their goals
- Marketing = show people how you can help them and give them what
they want

Behavioral economics:
- Why people do the things they do
- People make decisions emotionally first and the justify them logically and
rationally later (after the decisions is already made)

2. Marketing takes and builds courage:

- Communication means that you are open to criticism
- The more you grow the more haters you will have and can’t avoid it

3. Marketing is the most important element to business success:

Niraj Dawar : when marketing is strategy:

businesses have found competitive advantage in “upstream” activities related to making

new products :

- building bigger factories,

- finding cheaper raw materials,
- improving efficiency
- Sourcing
- Production
- à are being outsourced
-
Now competitive advantage in downstream activities:
- Goal: reducing customers’ costs and risks
- the drivers of value creation
- sources of competitive advantage
 - The reason customers choose one brand over another
- provide the basis for customer loyalty.

Today the strategic question that drives business is not “What else can we make?” but
“What else can we do for our customers

- Customers and the market—not the factory or the product

- Downstream, it’s no longer about having the better product: Your focus is
on the needs of customers and your position relative to their purchase
criteria.

1. the sources of competitive advantage now lie outside the firm and advantage is
accumulative à downstream

- companies can use downstream activities to upend (renverser) traditional

strategy

- Upstream competitive advantage: companies scramble to build unique

assets or capabilities and then construct a wall to prevent them from
leaking out to competitors
- Downstream competitive advantage: in contrast, resides outside the
company—in the external linkages with customers, channel partners, and
complementors. It is most often embedded in the processes for
interacting with customers, in marketplace information, and in customer
behavior

- Loss of downstream competitive advantage (consumers’ connection with

the brand) = more severe impact than the loss of all upstream assets.
(Coca-Cola experience)

- loyal to a brand or a company add up to real competitive advantage.

- The strategic objective for the downstream business:

o influence how consumers perceive the relative importance of

various purchase criteria
to introduce new favorable criteria.
-
- Network effects (Facebook) constitute a classic downstream competitive
advantage: They reside in the marketplace, they are distributed (you can’t
point to them, paint them, or lock them up), and they are hard to
replicate

- It is accumulative: ex amassing and deploying data and network effect

 2. it’s no longer about having the better product but about how you position yourself in
the market and which companies you choose to compete against.

- Can you choose your competitor by choosing your positioning within

differentiation (packaging), price, distribution channel

- Brita changes its competitive set when it is placed in the bottled water
aisle at the supermarket instead of with kitchen appliances at a big-box
store

3. The pace of change (rythme du changement) in markets is now driven by shifts

(changement) in customers’ purchase criteria rather than by improvements in
products or technology.

- Innovation ≠ Better Products or Technology?

- The persistent belief that innovation is primarily about building better

products and technologies leads managers to an overreliance
(surdépendance) on upstream activities and tools (outils).

- Downstream reasoning suggests that managers should focus on

marketplace activities and tools. Competitive battles are won by offering
innovations that reduce customers’ costs and risks over the entire
purchase, consumption, and disposal cycle.

- (ex : Hyundai assurance : if you lose your job within a year you can return
it) à Reducing costs and risks for customers is central to any
downstream

Innovation Set (fixé) in the R&D Lab?

- High failure rates for new products suggest that companies are continuing
to invest heavily in product innovation but are unable to move customers’
purchase criteria.

- Market change can be evolutionary, generational, or revolutionary

o Evolutionary push existing criteria of purchase

o Generational changes introduce new criteria that complement old
ones (new market segment)
o Revolutionary changes don’t just introduce new criteria, they
make the old ones obsolete
à Technology is a necessary but insufficient condition in the evolution of markets. It’s the
downstream activities that move customers through evolutionary, generational, and
revolutionary changes.

à Companies compete ferociously against one another not to prove superiority but to
establish uniqueness

Recap of the purchase cession process: consumer buying process:

1. Problem recognition:
- Consumer à problem: their desire is different from the reality (where
they are)
- Marketers à opportunity: create a problem for the customer:
o Share facts about your product
o Ask questions to pull the potential customers into the buying
process
à help the customer to realize that they have a need that should
be solved

2. Information search:
- Customer: the problem is recognized so the search process begins
- Marketers: establish your brand as an industry leader or expert
o Becoming a Google trusted store (ranking and customer security
and credibility)
o Buy advertising partnerships and sponsor

3. Evaluation of alternatives:
- Customer: want to be sure that they have done enough research before
making the purchase so they compare other options
- Marketers: keep the consumer on your site for the evaluation of
alternative (ex: Kanetix allow customer to compare rates with other
insurances providers on their own website) à established a trusting
customer relationship

4. Purchase Decision:
- Customer: they know everything so they can decide to not purchase
- Marketers: should providing a sense of security and in the same time
reminding the customers of why they wanted to make the purchase in
the first time
o Giving as much information relating to the need
o Why your brand is the best provider to fulfill this need

à if the customer walkway you have to retargeting or email reminders

5. Purchase:
- Customer: need has been created, research has been done and purchase
has been decided
 - Marketers: should be sure that the purchase completed good
o Test your brand purchase process online

6. Post-Purchase evaluation:
- Consumer: purchase has been made so they will evaluate their purchase
à risk = cognitive dissonance (you will not buy another product from this
brand even if like the product that you have bought = agir à l’encontre de
ses propres coryances)
- Marketers: customer loyalty can be easily lost:
o Return could take place if the customer is not satisfied
§ Should identify the source of dissonance
§ Should offering an exchange that is simple

How marketers can create value:

Value = cost/benefit of a product

Value = utility:
- ability of goods and services to satisfy consumer want
- inputs that have been converted to finished product (Samsung phone)

You can add value through utility with :

1. Time utility
- providing goods and services at convenient time (macdo)
2. Place utility
- Offering goods and services in convenient locations (Walmart, duty free
airport)

3. Ownership utility
- Offering favorable terms purchase (apple, extra features when you buy a
car)

Needs = something that consumer requires à clothes

Wants = Goods/ services are not necessary, but we desire them à designer clothes

How marketers use data for better decision making

Myths and Realities of Data and Machine Learning in Marketing – Catherine Williams

Vibranium : fictional metal

Separate the fiction around machine learning and AI in the marketing industry
Machine learning ≠ vibranium
Data and machine learning apply to:

1. Strategy of your business

Myths: Creating a data + machine learning strategy is a one and done

Reality: data and machine learning are a potential ingredient for every part of the business
Ex: aluminum à you have your business strategy, and you use aluminum to do a better
product (≠aluminum strategy)
Conclusion:
- data and machine learning = aluminum for marketing
- There is no data/machine learning strategy
- You must deploy machine learning into that real-time marketplace to
help:
o Determine bid price
o Set reserve prices
o Creat more efficient and liquid Marketplace
o Marketplace safety (hate speech and no robot client)
o How we can understand that customer data to provide insights
about the audience (segmentation)

Myths: Machine learning is best left to the experts in a data science organization
Reality: Machine learning and data science must directly interface and engage with the
business in order to drive results
Ex: electricity (Andrew Eing) à machine learning and artificial intelligence would be to the
21 century what electricity was to the 20 century (will transform one by one every industry)
Conclusion:
- if you want to electrify your factory the expert will looking to all the parts
of your business
- Same for data and machine learning you must see what that mean in
terms of platform and tooling and data supply chain
- When you have a machine learning you have to be sure that it’s operating
with the people who know what the business needs are (what part of the
factory needs to be electrified)

Myths: Machines will replace human intervention in marketing

Reality: Machine can do a lot, but they can’t do everything in marketing
Conclusion: human perspective will be always needed because machine don’t have empathy

2. Organization
3. People
Using data and making data informed decisions in marketing analytics:

Data informed decision-making ability to transform information into actionable and verified
knowledge to make better decisions:
1. Identify problems
2. Frame questions
3. Collect required data
4. Transform data to knowledge
5. Apply knowledge to decisions
6. Communicate and act on decisions
7. Evaluate the decisions

Quality of the Data:

Data collection
Data management
Data governance

Data strategy: must be aligned with your business objective

Required skills to do data-informed decision:

- Soft skills: collaboration, creativity, curiosity communication, problem

solving, story-telling

- Hard skills: technical skills, data analytics knowledge, subject matter

expertise

- à both allows marketing teams to have more efficiency and minimize

wasted funds

Marketing analytics:
The practice of measuring managing and analyzing metrics data to maximize the ROI of
marketing efforts à more efficiency and minimize waste funds
- Examine tangible result such as email campaign tracking

Ways to use data-informed decision making:

- Return on investment (ROI) = how much money you bring VS how much
you spent on the marketing campaign
- Customer Insights: you must know your customer (behavior, needs,
preferences) à can help to target your marketing compaign
- Brand development: marketing analytics can capture how effectively you
re achieving brand development
- Tracking clicks data : how many click on the ad and how many of those
converted to sale
- Email campaigns: track opens, click and who engage

Marketing data is used to:

 - elevate decisions
- Improve company marketing results
- Optimize customer engagement
à Added value for company

Collecting data:
1. Ask: Begin with the right question
2. Acquire
3. Analyze
4. Apply
5. Announce : only be shared with key stakeholders
6. Assess

Vodafone:
Want to know the Impact online marketing activities had on offline sales

- Problems Online sales:

o Customer were researching online but buying in store
o Lacking conversions to sales
o Difficult to track campaigns dure to non-standardized naming
conventions
- Solution:
o Construct an ROI marketing measurement framework
o Automated data driven attribution and direct digital marketing for
advertisements to shift bases on performance
o They standardized visitors segments and improved client
experience
o Combine marketing analytics with behavioral data to provide
product recommendations

Humberview Group:
- Problems:
o The current method to track how digital marketing affected sales
wasn’t working
o Missing conversion data
- Solutions:
o Implemented an advanced call tracking system
o Redesign their website so increase customer experience
o Track analytics for advertising channels

RealEats:
- Problems:
o Disparate tools tracking
o No full analytics integration
o No advanced insights from data
- Solutions:
 o Established metrics standards for all their marketing campaigns
(identify customer who are risk)
o Better use of data so efficient decisions

Intel:
- Problems:
o Want to modify their approach to get the greatest brand value
o Build a new audience for their new iQ website
- Solutions:
o Predictive analytics to track the content that was being published

How data analytics is used to improve various processes at the personal styling service
Stitch Fix:

While machines are great for tasks involving rote calculations, there are other tasks that
require improvising, knowledge of social norms and the ability to relate to clients. These
tasks are in the purview of humans. This is where our stylists perform the type of
computation that only humans can do.

To recap the process of filling a single shipment request (remplissage d’une demande
d’expedition):
1. a client creates a Style Profile and requests a shipment
2. we match them to a warehouse
3. our styling algorithms and human stylists work together to select styles
4. the stylist writes a note
5. we deliver the shipment
6. the client keeps what they like, returns the rest
7. Client provides us with feedback.

Two challenges:
A. We must continually replenish our inventory by buying and/or designing new
clothing
- New style development

B. We must anticipate our clients' needs:

- state" of each client at each point in time.

- Markov chain models is to anticipate future demand
- Inventory management (gestion de l’inventaire)

The marketing mix and its instruments – Product

Products Innovation - Crocs : how the polarization Footwear brand became a fashion
statement

- Heavy collaboration, constant release, put themselves in font of people

 - 2002: start of crocs shoes = functional thing for customer (easy to clean,
lightweight, resistant)
- Success because crocs was easy to get (available everywhere)
- 2006: crocs purchased Jibbitz (shoes charms)
- 2008: income loss
- 2014: changes in the business model:
o Closing stores
o Shifting ways from malls
o Turning to online sellers like Amazon
o Refocused on the classical crocs

- 2020: covid-19 people are at home so comfort aspect and easy to

customize the shoes à big success
- Marketing campaigns: idea of individuality and self. Expression
- Social media: uniqueness of crocs design
- Partnering with celebrities and exclusive limited collection
- 2021: collaboration with Balenciaga

Rebranding for success - Oatly How Oatly Built A $100 Million Oat Milk Empire
- Plant based milk
- Oat milk invented by Rickard Oste
- Toni Petersson: CEO of Oatly : vast majority of the world population are
intolerant to milk so why don’t we make something that actually designed
for human beings
o Reinvent the packaging: only English inscription and new logo à>
give the brand an identifiable voice
o Commissioned an environmental impact study that show that
produced oat milk was better for environment than dairy
o Creating a YouTube channel to get the attention
o Attract the intention packaging
- Mike Messersmith: getting people to try new brand and a new product is
almost impossible so Oat Ly present the product in first in coffee shop
(first experience) before introducing it to the market
- Massive hype created around the brand and know they are expending in
China

How NFTs challenge traditional marketing:

https://link.springer.com/article/10.1007/s11002-022-09639-2

non-fungible tokens (NFTs) established marketing understanding of :

- digital ownership
- uniqueness
- value
 - Authenticity
- status,
- sharing
- branding and distribution.
à This emerging subdiscipline offers opportunities to expand our understanding of
consumer behavior, pricing, and product design

NFTs offer an entry point into what we call “crypto-marketing,” a nascent subdiscipline that
includes any marketing practice that leverages blockchain technology for :
- designing
- pricing
- Promoting
- selling digital and non-digital goods.

NFTs raise questions in three main areas: (1)

1. digital ownership, uniqueness and value

- NFTs represent an exceptionally strict form of uniqueness, giving

consumers the ability to prove that they are the only possessor of a good
o uniqueness should drive value because limited supply offers the
owner of a scarce (rare) product a feeling of distinctiveness and
uniqueness (Lynn, 1991)

- Traditional functions of marketing is to communicate the value of a good

or service à In NFTs the creator and any later owner can be verified in
the ownership history of an NFT
- NFTs offer consumers new ways to exchange economic value by the fact
that they are bought and sold on the blockchain using a cryptocurrency or
even by acting as payment themselves

2. authenticity, sharing, and status

- The ability to verify the authenticity of NFTs also presents new challenges
and opportunities to marketers.
- NFT technology may affect what information consumers share with
others.
- Firms may also use NFTs to raise brand status or expand to new markets

3. decentralization of branding and distribution.

- The decentralized nature of NFTs calls into question our understanding of

branding and product management as centralized marketing processes
- , NFT marketing, product development, and personalization are
crowdsourced (externalisé)
 - Consumers can play the role of active creators
- NFTs transform the supply chain, as the decentralized ledger eliminates
the need for intermediaries such as wholesalers, retailers, or sales agents.
This gap may be filled by new intermediaries, enablers and facilitators,
who provide access to and augment NFT technology.

Risks, pitfalls, and conclusion

- the NFT itself cannot be replicated on the blockchain, the good it is

referring to potentially can be replicated.
- crypto-marketing will need to inspire new forms of trust,
o decentralization makes it hard for regulators to police the
behavior in the system.
o Consumers and firms will also need to learn whether and when to
trust blockchain technology, new intermediaries, and the crypto
community, and to manage NFT experiences responsibly
o blockchain technologies include a high degree of self-
responsibility
o blockchains can consume extraordinary amounts of energy and
thus generate environmental costs
Marketing strategy : from the origin of the concept to the development of a conceptual
framework:

how marketing strategy terms and concepts could arrive at their current state of confusion,
how the history of marketing thought can provide a useful guide for current marketing
practice.

Segmentation and differentiation represent two of the oldest and most central strategies in
the marketing literature.

many strategic marketing approaches are interrelated.

- BCG type growth-share portfolio matrices are built on SWOT Analysis.

o Strengths and weaknesses affect a firm’s market share
o opportunities and threats affect a market segment’s growth.

- Andrew SWOT Analysis is built on the marketing mix as a basis for

determining strengths and weaknesses and customer segments provide a
basis for determining opportunities and threats.

- Dean’s penetration strategy is related to the marketing mix

o his skimming strategy is related to segmentation
o the two element of marketing strategy discussed by Oxenfeldt

- Porter’s “generic strategies”

growth and generic strategies are largely based on market segmentation and differentiation
as discussed by Smith.

- Ansoff’s brand development and Porter’s differentiation strategies are

based on the marketing mix
- Ansoff’s market development and Porter’s industry-wide and narrow
segment strategies are based on segmentation.

two structural approaches to strategy offer guidance in choosing among strategic

alternatives:
 1. the PLC describing and classifying the stages sales pass through over time
(Jones,1957; Forrester, 1959; Wasson, 1974)
2. SWOT Analysis: how sales can be increased by aligning conditions inside and outside
the firm

two main sources of individual marketing strategies (Oxenfeldt, 1958):

- customers:
- marketing mixes

Framework of marketing strategy:

Based on the stage of the life cycle and the alignment of organizational strengths with
environmental opportunities, allows the marketing strategist to choose the most effective
strategy for achieving the marketing manager’s goal(s)

1. Alternative customer strategies involve either mass marketing, a single marketing

mix for everyone, or targeting segments, with an individual marketing mix for each
segment (Smith, 1956).
2. Alternative segmentation strategies usually start with targeting a single segment,
from a small niche (Kotler, 1980; Porter, 1980) to a large single segment of the
market (McCarthy, 1981).
3. A single segment strategy will sometimes grow into expansion strategies targeting
multiple-segments and could ultimately involve targeting all segments in an across-
the-board strategy (Kotler, 1980; McCarthy, 1981)
4. Alternative marketing mix strategies include
a. penetration (Dean, 1951; Ansoff, 1965)
b. brand expansion (Ansoff, 1965; Kerin and Peterson, 1978)
c. differentiation (Smith, 1956; Porter, 1980; Kotler, 1980)
d. maintenance (Henderson, 1976b)
e. harvesting (Henderson, 1976b; Kotler, 1978)
f. divesting (Kotler, 1965; Henderson, 1970).

The Marketing Mix Revisited: Towards the 21st Century Marketing:

E.Constantinides :

- the 4Ps Marketing Mix framework has been extremely influential in

informing the development of marketing theory
and practice.
There is too little reflection on the theoretical foundations of the
normative advice found in abundance in the textbooks.
Debate (the mix will survive as the marketing tool of the 21st century?) surrounding the
Marketing Mix as a marketing management tool has been primarily fought on theoretical
rather than empirical level

Proposing alternative approaches:

- adding new parameters to the original Mix

- replacing it with alternative frameworks altogether.

weaknesses of the 4P :

- ignoring the human factor

- lack of strategic dimensions,
- offensive posture
- lack of interactivity

à Two limitations however seem to be common in all reviewed categories: The model’s
internal orientation and the lack of personalisation.

1. the lack of explicit market input (entrée) in the framework :

- Before producers could afford to pay much less attention to

customer’voice and needs than today
- Today, Marketing efforts and future marketplace are likely to succeed if
they are based on close and constant monitoring of the external
environment, with special attention on the frequently changing customer
behaviour and needs. Competition, trends and macro- environment are
also elements reacquiring constant attention.
- marketers must focus their attention on getting better insight on the
dynamics and the constantly changing rules of the marketing
environment of the 21st century
- Instead of managing the 4Ps-defined processes managers should focus on
the factors underlining customer value as well as building market-
oriented, flexible and inventive organisations, able to constantly innovate
and adapt to fast-changing market conditions.

2. The lack of personalisation:

- Ineffectiveness of the mass marketing/one-way communication because:

o The constant stream of new technologies available to businesses
and customers not only reduces transaction and switching costs
but also offers to customers more choices
o Shifts (changements) of consumer behaviour (individualisation,
diminishing brand preference, value orientation, increasing
sophistication)
 - the service and the personalised client approach have become
imperatives
- the Marketing in the 21st century will become not only more
sophisticated but also much more interactive and individual
- The quality of the personal relationship between seller and customer and
successful customer retention are becoming basic ingredients of
commercial performance in all markets
-

Arguments in favor of the 4P:

- the way of applying a tool is what really matters, rather than the tool
itself.
- New framework will be used only if they are persuaded that this can meet
their management and planning needs better than the 4Ps, while
upholding (respectant) the Mix’s essential features:
o Simplicity
o Applicability
o richness