Blog Entry 2 - consumer-created brands for mcwilliams

http://jessicascriticalquestions.blogspot.com/2010/02/blog-exercise-2-consumer-created-brands.html

Blog 2

1. I think to some degree, consumers have always played a big role in the design and branding process for most companies. The spending behaviors of consumers may fluctuate with the economy. There have been several shifts in the behavior of consumers over the last few decades, almost always in relation to the economy. When times are bad, consumers look for the products that will give more bang for their buck, vs. more buying expensive products when times are good. It’s apparent that in the midst of the most recent recession, people have been spending their money a little more carefully. Consumers are also spending more time researching products before they make purchases. Forbes has a great article that goes into detail about the spending habits since the recession.
http://www.forbes.com/2010/01/04/consumer-spending-recession-leadership-managing-mckinsey.html . It says that for products like Alcohol and tobacco, people continued to buy the same brands after the recession; but bought cheaper versions of medicine and some foods. It’s apparent that the products people were willing to spend the same amount of money on have gained customer loyalty, and offered some service that couldn’t be duplicated.

2. Design can really make or break the truth of a brand. Everything that the company stands for, and is known for by its costumers need to be seen in a visual way, through design. Everything from the company’s logo, color scheme, and packaging needs to further add to the experience of the company. Customers can make judgment calls about companies based solely on their advertising, whether its “true” or not. A company called Clean Design shares their view about designing truth for their client’s companies. http://www.cleandesign.com/process.html
It says that “find a truth about your brand means we have made a direct connection with you and your audience. It’s all about emotion and experience, and design can create that.

3. I think producing happiness amongst customers is what essentially creates loyalty with that company. People will return to that company if they happy with their service/product, and had a good experience as well. Concerning the customizable products from the readings, it seems like those companies are all about creating happiness for the customer. The buyers are given a chance to “participate” in the creation of their own products, allowing customization and personalization. They are given the tools to create a product that they will be happy to have, not simply pre-made designs that requires some sacrifice on the customer’s side. Loyalty will come because of the positive experiences had by the customer.

Blog Post #2

· How has consumer behavior has shifted in the past, and will shift because of this recession?

The biggest factor is the economy. In the past, when people felt as though they had some job security they would tend to put more back into the economy. When the housing markets were good people bought houses, accrued debt, and spent somewhat frivolously without worrying about financial stability because at that time there was a conception of stability and security. Unfortunately things can change rather quickly. In the light of the recession and the stock market crash as well as a declining housing and credit markets consumers are now extremely limiting there spending to the essentials like food and shelter and forgetting about the extras. Now this is not true for everybody. Of corse there are exceptions but the majority of consumers have taken a big hit financially with the recession. One of the major factors is employment. As businesses loose business they let people go and downsize to cover the rising cost of things. Plain and simple there is no more job security for the majority of people and this variable alone stops them from spending on the extras.

http://www.consumeraffairs.com/news04/2008/01/recession.html

· How does design develop brand truth?

Visual assets create emotional ties to a product. If people find emotion in your product they tend to remember it. Through tough competition, design brings clarity and differentiates you from your competitor. In the article below it states that" Brand truth defines your brand and your company as a whole. It is the single memorable expression of who you are". In the article it elaborates on a 4 step process that helps to develop brand truth. Those steps.

1. Understand

-ask questions

-research

-analyze

2. Develop

-Need to be more creative than ever

3. Create

- design with brand in mind

4. Measure

- Users develop positive feeling towards brands through interaction on new media channels. This helps to provide an emotional connection to the brand. When an emotional connection is reached the consumer remembers you.

http://visualjelly.com/index.php/en/design/

· Is there a difference between producing happiness and producing brand loyalty?

If you produce brand loyalty to some degree you produce happiness. Why else would a consumer continue to purchase your products. It really is all about being able to relate to people and produce a positive emotional connection to your product. If you can do that consistently you have happy consumers who will continue to buy your products.

http://www.emarketer.com/Article.aspx?R=1007419