Our new Digital World is dramatically changing the way in products are created, promoted, distributed, and consumed. Although these changes have been revolutionary, we still live in an Analog (or physical) World. For example, even today, over 90% of all sales are still conducted in Analog stores. Thus, both marketers and consumers must simultaneously navigate both the Analog and Digital Worlds on a daily basis. Although the Digital Revolution has received considerable attention in recent years, the impact of this revolution upon the Analog World has been largely ignored. This course examines this issue by asking, "How has the Digital Revolution impacted Marketing in an Analog World? This course will begin with an exploration of the key differences between the Analog and the Digital and then examine four ways in which the Analog World has been affected by the Digital Revolution: Domination, Resistance, Synergy, and Transformation. This course will contain several examples of each of these concepts and explore their implications for both marketers and consumers. This course will also employ a variety of learning techniques, including video lectures, case studies, hands-on exercises, and interviews with leading marketing scholars. The learning approach will be highly interactive; you will have the opportunity to engage in a variety of hands-on activities and be a member of a rich learning community. I hope you will join us in this educational adventure.
Lecture 1: Physicality (Side 1)
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Из курса от партнера University of Illinois at Urbana-Champaign
Marketing in an Analog World
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Aric RindfleischJohn M. Jones Professor of Marketing
Department of Business Administration
Welcome to our examination of physicality.
This is the first of the two types of
analog resistance that we'll explore in this week's lectures.
In this lesson, we'll discuss the definition of this concept,
examine how it relates to our set of digital and analog benefits,
see some examples, explore a few things you should know about this concept,
and discuss some tips for successfully leveraging this idea as a marketer.
Let's begin.
We're here at Exile on Main.
This is the place to come here in Champaign to find
old vintage vinyl records like this one,
Rod Stewart. Good stuff.
We'll take a peek inside, see what else they have.
Come along for the ride.
When I was young, records like this were
the way in which most people listened to recorded music.
However, the digitization of music,
first by compact disc and then by MP3 files made this technology nearly obsolete.
The keyword is nearly.
After two decades of decline,
vinyl records have begun to make a dramatic comeback across many countries.
For example, in the UK,
vinyl record sales increased by more than 50% over the past year alone.
Most of these sales have been in the form of
used records or new releases by small recording firms.
However, it looks like
the major recording studios are rediscovering this analog technology.
For example, Sony recently announced that they will be
opening a new vinyl record pressing plant in Japan.
Thus, it seems that vinyl records have successfully resisted music's digital revolution.
While there are many reasons for the resurgence of this analogue format,
one key factor is the physical form of the vinyl record.
Unlike an MP3 file,
which can't be seen or touched,
a vinyl record is big and bulky and usually comes in a eye-catching cover.
This physical form gives vinyl records a sense of
tangibility that can't be matched by its digital alternatives.
This tangible aspect helps satisfy our need for touch,
and also makes us value music more highly since vinyl records are quite fragile,
and need to be carefully handled, and cared for.
Also, some listeners claim that vinyl records produce
a sound that is warmer and more authentic than an MP3 file.
On top of this, the physical form of a vinyl record makes it especially
appealing to music collectors who like
the social aspect of hanging out in record stores such as this one,
and also showing off their collection to their friends and family.
This is a great example of the power of the physicality of analog products and services.
Due to their physical nature,
analog offerings such as vinyl records are
successfully resisting challenges from the digital.
Now, let's take a look at our definition.
We define physicality as a condition in which the analog product or service is preferred
to its digital alternatives due to
its physical qualities such as its shape, size, or weight.
For example, a vinyl record has a distinct physical form while an MP3 file does not.
For some people, this physical form produces a more enjoyable listening experience.
For example, many fans of vinyl records like the fact that a record has two sides,
it must be physically flipped in order to complete the listening experience.
This simple act of getting up from the couch and turning the record over produces
a tangible sense of satisfaction that they can't get for music in a digital form.
Now, let's take a look at the benefits of physicality.
Typically, physicality leverages the analog benefits of tangibility and sociability.
For example, as we just discussed,
for a growing number of people,
the physical format of a vinyl record provides both of these benefits.
In today's digital age,
fewer and fewer things are tangible in nature and
our social interactions often come through a screen rather than in person.
For example, online shopping is more efficient,
but also more intangible and impersonal than shopping in a physical store.
Now, while efficiency is nice,
sometimes we need things that are tangible and social in nature.
Thus, there appears to be a growing desire for
the physicality that analog products and services can provide.
Now, here is Nadia to show you a couple of other examples of analog products and
services that are resisting the digital due to the principle of physicality. Nadia.
Thanks, Eric. Independent bookstores are a great example of physicality.
In this digital age,
you might expect most people to download books onto their e-reader,
such as an iPad or Kindle.
Indeed, many people do.
However, in recent years,
there has been a resurgence of independent bookstores that offer analog books.
One reason for this resurgence of bookstores is
the preference for the physical form of a book.
Specifically, the ability to physically turn a book's page or feel the weight of
a book in our hands gives us a tangible appeal that is lacking from digital books.
I have here my own book that I'm reading,
and I actually prefer to read physical books over digital books.
In addition, independent bookstores offer a space,
where people from different walks of life can cross paths and socialize.
By hosting author events,
festivals and book groups,
independent bookstores can leverage their tangible products and sociable atmosphere.
Another great example of physicality is Tough Mudder.
Tough Mudder is a 10-12 mile long obstacle course
that tests your physical and mental strength.
As one of the world's fastest growing athletic events,
Tough Mudder is appealing because they are action-packed and somewhat
dangerous since participants must cross obstacles with barbed wire,
electric shocks, and fire.
In addition, Tough Mudder promotes sociability because you must form teams,
and these grueling obstacles can only be completed by working together with your team.
Thus, the Tough Mudder offers a fun and
physical activity that you can participate in with your friends.
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