Market Segments

Lecture notes with Prof Myung Kyu Lee

Youth market

usually the entry market (mainly in car markets)
Strategically the most important segment
Especially for building long term customer loyalty
Habit is formed when one is young

Strategy:
Dream building/challenge/participation — Giving incencentive
Experience — Fast culture
Speed — Fast fashion

Silver market

Average age of the world is increasing, life expectancy is longer

TONK (two only no kids)
OPAL (old people with active life)

Designers can approach this through Universal Design (designing for everyone)
i.e. OXO Good Grip (designer made it for his wife who was suffering from arthritis)

Isetan departmental store has a Funeral service departmental for the Silver market

Kids market

World population growth is decreasing rapidly
Parents end up having either 1 or no kid
With 1 kid, they spoil the kid with everything!

Microtrends

Gold Miss market — Financial independent women who pass the marriageable age and choose to be single

Single families is over 4 million
Supermarkets sell items in smaller quantities

Marketing Strategies in Korea (considering the cultural factors)

Gurantee Marketing (tackling Korean's attitude of risk aversion)

DIY, warranty services, participatory strategies, i.e. delivery companies offering tracking services

Opinion Leadership Marketing (tackling Korean's attitude of Collectivism)
> a.k.a Word of Mouth communication or Buzz marketing
> i.e P&G has a 'tremor' group who are a prosumer group that leads the market for their products. Products are often tested on the 'tremor' group before officially rolling out
> Viral Marketing
> "Word-of-Mouse" communication

Kiehl relies solely on word-of-mouth to market their products. Product packaging often lack design, implying that the money saved on advertising and design is channeled to be used on charitable causes.

Social media platform

Blog marketing — Alpha bloggers / Power bloggers

Emotional Culture > Experiential/Emotional Marketing

Fashion Seminar

Fashion is popular style of clothing. Fashion references to anything that is the current trend in look and dress up of a person. It is a style of clothing or a way of behaving that is popular at a popular time. It is ever-changing, fast moving.

Fashion changes, if it does not change it is not fashion
—Ann Hollander (Sex and Suits)

Brand Lecture

Usage of Metaphor > Scott tissues > Cloud > Soft

Quaker = Oats
Quakers are honest, frugal people
Quakers exude tradition

Print ads used to embed a symbol of death which are now banned. i.e a distorted image may be interpreted as death. Especially for tobacco and liquor products.

Know target audience. Sell children shampoo to parents who are going to buy it for them.

Tomato brand > Fresh World Farms > Literal and effective

Brand Elements > Rationale, Cultural, Experiential, Visual, Functional, Emotional

Jockey briefs has many sub categories to sell 1 product to speak to a broader audience. Classic (regular), Tech (performance), Reps (rhythmic), Zone (colours)

Nº5 CHANEL PARIS / Iconic structural packaging

Toilet duck packaging is unique and provides great functionality, but not feasible for production from the engineers perspective. The duck name is associated with the rubber duckie toy and evokes positive childhood memories, making household chores less painful.

UX Design Development Process

2 of 3 Lecture series with Prof Kyoung Soon Oh 

Design is a process of creation, evaluation, selection, and arrangement
— James L. Harrison

Design is not a noun but a planning, doing research, thinking and making a decision of a direction. Design is defining problems and a problem solving process
— Steven Tolleson in Design Methodology

Consider activities. Think about the verb rather than the noun. i.e. when designing a chair, think about reading, eating, resting, instead of legs, arm-rest etc.

UX Framework
Physical > Size, shape, colours, materials
Cognitive > Language, symbols, controls
Social > Information interactions, trusting members
Cultural > Values shared, beliefs shared, supportive organization, accepted habits
Emotional >  Interested, happy, calm, friendly

User Experience Design is a interdisciplinary collaboration (including the user)

<Process Positioning Map, Institute of Design, IIT>

UXD Process (manufacturing) is a con-current engineering process involving product design, software development, mechanical and electronic engineering. BECAUSE our product life cycle is getting shorter and shorter.

<Design Innovation Process, Institute of Design, IIT> 

Research methods

Design research

Professional practice is a linear process

Our current generation are Digital natives
Our parents are Analog natives > they are digital immigrants

Tap into their native environment

***Process map

Adapt > Conduct > Communicate

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Liz Sanders (maketools.com)

Product >>> Experience

Conceptualization and Visualization space

Visioning Workshop (bulls-eye chart)


Co-creation and new landscape design (IIT Institute of Design)

Approach
Expert Driven  80s
User Centrered 90s
Co-creation 00s

Empathetic design

Critical Design > You create something and then observe what happens.

Codesigning teams are expanding to include all stakeholders, particularly in the front end of during the design process.

Design is taking increasingly collective forms.  The new domains of collective creativity will require new tools an methods for designing and researching

Hypothesis of design

Deep Knowledge Outcomes (through research)
Latent > Present but not visible
Tacit > Understood without being openly expressed; implied



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Consider service design for disability market (deaf, mute, blind) or elderly market

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Assignment 5
Develop 3~5 personas for your project with the following steps:
1. Identify mutually exclusive and collectively exhaustive user segments for your project
2. Group them with their distinguishable characteristics (their ultimate goals, values, behavioral patterns, desire, or lifestyle)
3. Name them with distinguishable names.
4. Describe persona with their goals, attitude, behavior, context, desire, photo, goal, and problems


Reading reference for next assignment
Indi Young, Mental Models: Aligning Design Strategy

Marketing

Lecture series with Prof MyongKyu Lee


Marketing Concept
1. Customer satisfaction
2. Differentiation

Market definition STP
Segment
Target Position

Matching Concept 4Ps
Product
Plane
Place
Promotion

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Prof Lee mentioned the term Market Myopia and suggests that designers have to look at the market has to be as large as possible to gain larger profits. The example of Harley Davidson and Honda was used, suggesting that Honda found success with affordable motorcycles targeting at a broader market.

From a brand perspective, I would argue that Harley Davidson's focus towards it's target market has enabled them to become an 'inspiring brand'. I would imagine that it will be difficult to have the same traits of masochism and individualism if they had branched out to the mass market. Maybe they did with an entirely different brand? Ultimately business is about making money.

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Societal/Ethical Marketing is about providing product benefits with a long term perspective in mind. i.e. Social enterprise TOMS shoes. How can McDonalds consider long term 'consumer convenience'?

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New Product Development (differentiation)
> Idea Generation
> Idea Screening (screen criteria) Technical feasibility, Commcerial feasibility, Consumer welfare
> Idea Evaluation/Concept Testing (research)
> Development
> Marketing Strategy
> Commercialization

Fun fact: 3M = Minnesota Mining & Manufacturing

Elements of Good Design
> Creative/Original
> Aesthetic
> Functional
> Feasible
> Economical
> Fashionable
> User friendly/Ergonomic - Human Factors
> Consumer Well-being/Welfare

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Assignment 1
1. Explain the idea (design)
2. Target Market (why?)
3. Promotion Strategy (how it's being sold)


Designer/Marketing perspective


Something new and innovative


Product design awards: IDEA, iF, reddot, Good Design Award


3-4 slides / 5-10 minutes presentation — due 29/03

Experience Design & UX Trends

1 of 3 Lecture series with Prof Kyoung Soon Oh


User Experience Design (UXD) is how a product is perceived, learned and used.



Richard Anderson's keyword survey on the definition of UXD
Usability, Consumer experience, User centered design, Customer experience, User interface, Interaction design, Experience design, User satisfaction, Customer satisfaction, Ease of use, Experience, Customer journey, User Interface design, Human factor, Interface design

What is important is the entire experience, from when i first hear about the product to purchasing it, to opening the box, to getting it running, to getting service, to maintaining, to upgrading it. Everything matters: industrial design, graphics design, instructional design, all the usability, the behavioral design.
—Don Norman, 2000 HCI

UXD from 3 perspectives
Desirable by the User / Feaibile by the Engineer / Viable by the Manager
Ease of Understanding / Ease of Use / Pleasure of use

To provide the pleasure of use in the product or services. There are many researches of Emotional Usability

UXD is the Holistic Solution that provides Total Experience to users while they are accessing a product or services in various touch points.

UID: The overall process of designing the interaction between a user and a device
IND: Designing of tasks and behaviors
IA: Organization of information that is logical and understandable
Usability: Measuring of ease of use a system or applications
HCI: The study of interaction between people (users) and computers
Human Factors Engineering (Ergonomics): The study of optimizing the interface between people and objects or systems they interact with
SD: Intergrated design of solutions or services between users and h/w, s/w, online and offline within a context

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User Experience Trends

Change of UI Tech (immersive, hybrid)

1. Graphic Based UI > Multi-Modal UI > 3D, 4D & hybrud (Haptic, Auditory, Tangible, Olfactory
2. Functional based UI > Contextual & Evolving UI (Augmented reliaty, Seneory)
3. Experiential

Market trends
From Technical, Functional + Emotional
Products should be loved (Steve Jobs)

Lovemarks by Saatchi & Saatchi / Kevin Roberts

In order to create the customer's royalty, companies provide the best user experience to them. Brand strategy is not enough to do that.

— a new product > Trademark > Brand > Lovemark
— To create the lovemark for the maximized UX Design
1. Make a product myserious— great stories, past, present future, myth, icons, inspiration
2. Using sensibility
3. Create intimacy between products and customers. Creates commitment, empathy and passion

Target audience should not be drawn towards classification of age groups, gender etc. but towards activities (or tribes).

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Brands can be identified by their sounds. Here's a good example below: