Tag Archives: technology

Is Owning Music at an End?

When was the last time you purchased music? Not music streaming, but actually bought a physical product for money?

If you are like most consumers, it has probably been a long time since you purchased a CD. In the last decade, CD sales have fallen 80% – from 450 million units to 89 million units! Consider the lasting impact of the declining sales, not only on the record industry, but also in manufacturing. Many of today’s car companies (e.g., Tesla, Ford, Toyota) no longer even include a CD player in the car dashboard, and portable CD players are hard to find.

Even downloads of music have taken a big hit, decreasing 58% since the peak in 2012. Artists have also noted the trends; Bruce Springsteen released his latest box set exclusively on vinyl – no CD options. CDs are doing well in some markets though – in Japan, where streaming has not yet taken off, 72% of music sales were physical CDs. But look around U.S. retail stores – where are the CDs even stocked?

It’s not just streaming that has killed off the CD. Vinyl records have grown from less than a million units in 2007 to more than 14 million in 2017. Vinyl sales even hit a 25-year high last year and new vinyl record manufacturing is popping up to replace CD manufacturing.

Here are some numbers to note about music sales:

  • CD sales: 712 million units in 2001, to 88.6 million units in 2017.
  • Track downloads: 1.3 billion sold per year from 2011 – 2013; 555 million sold in 2017
  • Song streams: 118.1 billion in 2013; 618 billion in 2017
  • Vinyl: 990,000 units in 2007; 14.3 million units in 2017

How do you buy your music?

Group Activities and Discussion Questions:

  1. Discuss the stages in the product life cycle. What are the marketing objectives in each stage?
  2. Poll students: When did they last purchase music? What form was it in?
  3. Where did they last see CDs or vinyl music? What was the inventory level?
  4. Who has a CD player in their car?
  5. Divide students into teams. Have each team draw a product life cycle and place various products and services into each stage.
  6. Next, have students brainstorm on how to reposition or revise products/services to that they can move into an earlier stage of the life cycle.

Source: Knopper, S. (14 June, 2018). The end of owning music. Rolling Stone.

 

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Delivery Direct to Your Car

Have you ever had a problem with delivery of packages? Have you been a victim of ‘porch pirates’ stealing packages before you get home? If so, then you may like the new option for Amazon’s in-car package delivery, placed securely in your trunk or back seat. The service is available to Amazon Prime members who have an active GM OnStar or Volvo On Call account in 37 cities across the U.S.

It seems pretty easy. Using an Amazon app, the customer inputs the information about their car (must be a 2015 or newer Chevrolet, Buick, GMC, Cadillac, or Volvo). For each order, the customer selects a delivery to their car, receives a notification when the delivery is on its way, and another notification after delivery is completed and door/trunk relocked. Delivery people use the car’s assistance services to locate the car and unlock it.

The car delivery service only works for vehicles parked in lots that are easily accessible. It won’t work for parking garages or gated communities. And, if you’re worried about damage to the car, Amazon even said that it will take care of a broken window or lock that happens as a result of the delivery.

Go ahead and order – there are a lot of delivery options, including porch, office, in-home, locker, and now, your car.

Group Activities and Discussion Questions:

  1. Discuss the topics of package delivery. Has anyone had problems?
  2. Show the Amazon information and video about car delivery: https://www.amazon.com/b?ie=UTF8&node=17051031011
  3. CNET video: https://youtu.be/8bZfZZJ7Q4Q
  4. Video of customer testimonials: https://youtu.be/w4akHn0jQCc
  5. Poll students: Would they use this service?
  6. Discuss the importance of clearly defining a target market.
  7. For in-car delivery, what is the target market?
  8. Divide students into teams and have each team develop a target market profile. Include demographics, psychographics, behaviors, values, attitudes, etc.

Source: CNET, New York Times, Wall Street Journal, Detroit Free Press, other news sources

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Snapchat’s New Spectacles

Remember Snap’s Spectacles? Launched in fall, 2016, Spectacles were fashionable sunglasses that could record 30-second videos with a 115 degree lens. The specs were $130 and initially sold only through fun, bright yellow, SnapBot kiosks placed around the U.S. There was a lot of hype and fervor from teens to procure the sunglasses and post their videos. Roughly 220,000 Spectacles were sold, but only half of the owners used them after the first month, and Snap took a $40 million write-off after making too many. But, the company learned a lot from its first foray with Spectacles, and is now ready for the next iteration.

So, get ready for Spectacles Version 2. The new glasses are priced at $149.99 and have a number of new features and improvements over version 1. The case is smaller and handier to carry around, and it charges the glasses up to four times. The glasses are lighter and more comfortable and the field of vision has been reduced to 105 degrees. In addition to video, the glasses now take photos – which of course can be posted online.

Colors are new and more neutral with two lens versions, and the pairing process is much simpler than version 1. High quality photos and fast downloads improve the overall user experience. The glasses are now water resistant and can even take photos underwater. Spectacles are now on sale in the U.S., Canada, U.K., France, to be followed by 13 more European countries.

Fortunately, no more SnapBot vending machines to limit purchases – it’s easy to buy since all that’s needed is to go online to Snap to purchase. It really is a wearable camera.

Go ahead – smile, you’re on Spectacles!h

Group Activities and Discussion Questions:

  1. Discuss the strategy that Snap is using to position itself as a camera/hardware company rather than a social media company.
  2. Show the Web site: https://www.spectacles.com/
  3. Show a product review video: https://youtu.be/DRqZoINHCwM
  4. A short product video: https://youtu.be/Qpbyj-hz05s
  5. Pricing is usually a complex topic. Discuss the six steps for pricing (determining objectives, estimating demand, determining cost/profit relationships, select price level, set list price, and make adjustments).
  6. Discuss the various pricing models in class: demand-oriented, cost-oriented, profit-oriented, and competition-oriented.
  7. What price strategy is Snap using for Spectacles version 2?
  8. How does this compare with version 1? Will this be successful?

Source: Constine, J. (26 April 2018). Snapchat launches Spectacles V2, camera glasses you’ll actually wear. TechCrunch.

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