Sunday, February 1, 2009

Analysis on Joseph Pine: What do consumers really want?

I was looking in a TED video and I got interested about Joseph Pine, a guy who wrote books as Mass Customization and Experience Economics, who talks about what consumer wants. That the key question why marketing exist and even as he mention in not clear answer he explain the same marketing evolution that we looked in class about the change from commodities à goods à Service à Experience. This diagram is clear in the way to explain that we have change from giving stuff to give brands, to those brands to take care about the post-sale service and in the end we crease a Experience for the Customer.



The Starbuck example. Grains of coffee are a commodity that you can find for 2-3 cents per cup of coffe. Select them and put in a grocery and you can sell for 5-10 cents per cup. The same good and brewing to the customer in a dining room and you can sell for 20 cent to 1 dollar per cup. Now create an authentic experience, the mood the uniqueness of Starbuck and now you can charge 2, 3, 5 bucks.



So what to do…
If you have a commodity, your business imperative is supply, reduce cost. The customer want only availability, if you aren’t present customer will buy your competition. When you have a Good your business model is to have control and your customer care about the price of your products. When you move to a Service your business strategy is how to improve the service, better for customer and optimizing the cost. The customer care about price, but now they also care about the quality because each service is different. An now to the place with more economic value and the quest for marketers become an experience. Business imperative is to rendering, performance and the customer are looking for an authentic customize experience. That the key word authentic.
So, finally the so what of this journey, every stuff we have to convert in an experience. We have to customize so the customer fell involve in the product and the service. Create the relation, but as any human relation the key stone to base and to grow is authenticity. If not you will fall in a fake relation that will put in danger not only that customer, but the whole concept of your product
http://www.ted.com/index.php/talks/joseph_pine_on_what_consumers_want.html

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