It isn’t only Google and Facebook that tracks customers for advertising purposes…

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Online music streaming service Spotify believes that it can someday become one of the advertising powerhouses. But like its rivals in the advertising business, Google and Facebook, the company needs to collect and analyze lots of data on its customers. Spotify knows more than just what its customers are listening to, it also knows what they are doing and what you are going through.

The Spotify app can gather data from customers’ phones’ including accelerometer, gyroscope, and location data. This might be analyzed to find out if and when a customer works out or walks their dog.

And “Spotify (also) knows that you started playing Lizzo’s “Truth Hurts” at 23:03, listened to it for one minute, then searched for “break up” and listened to the entire four hours and 52 minutes of the “ANGRY BREAKUP PLAYLIST” without any pauses. Spotify might know to serve this listener ads about ice cream or (maybe a few weeks later) ads for online dating services.

Right now, Spotify is investing a lot in data science to figure out what all that data it collects can be used for. Privacy? Read more in “All the Ways Spotify Tracks You – and How to Stop It,” Wired.

Seattle’s Zero-Emissions Last-Mile Delivery Hub

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Earlier this month, the United Nations’ Intergovernmental Panel on Climate Change issued its latest report on the climate. It was not encouraging and clearly points to the need for the world to limit carbon emissions. Many cities and businesses are stepping already trying to do just that.

One opportunity for lowering emissions is the so-called “last mile” for online retail. This is the delivery to customers’ homes and businesses. This is seen as lower hanging fruit. So the city of Seattle is experimenting with some low-cost options, including cargo bikes, electric vehicles and pallets, and food trucks. This opportunity is leading to some innovation around delivery.

This Fast Company article describes “Seattle’s new zero-emissions delivery hub is an experiment in slashing e-commerce emissions.” This video (also shown below) describes some of that innovation. In Essentials of Marketing, we discuss innovation as a benefit of marketing (Chapter 1) and as part of new product development (Chapter 9). And of course this topic is relevant to distribution (see chapters 10, 11, and 12) Our textbook also covers sustainability in chapters 1 and 19.

World Changing Ideas – New Product Development at Its Finest (#M4BW)

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I always enjoy Fast Company‘s innovation issues. This year’s “World Changing Idea Awards honor the businesses and organizations driving change in the world.” There is always an emphasis on new products and services that make the world a better place — a natural connection to our Marketing for a Better World (#M4BW) theme in the most recent edition of Essentials of Marketing. Winners included:

  • Abbott Labs which made a tiny implant that keeps babies’ hearts healthy (see video below)
  • Carbon Lighthouse which uses AI which adjusts businesses energy consumption by up to 30%.
  • Invest Your Values (I love when the brand name tells you what the product is) is a digital tool that helps employees invest their retirement money in companies that share their values.

These examples can be used across a number of chapters — but may relate most closely to Chapter 8 (goods and services) and Chapter 9 (new product development). The video below (first 2:20) features a few of these companies and might be shown in class.

 

“Jugaad” frugal innovation for new product development (#M4BW)

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This short article, “Corporate America must learn to innovate frugally to get through the coronavirus crisis,” (Fast Company, March 27, 2020) provides some great tips on frugal new product development. While the title of the article implies a coronavirus connection, the advice is universal. The author also gave a great TED Talk, “Creative Problem-Solving in the face of extreme limits” see below. The TED Talk includes some great #M4BW examples.

 

This article and video fits well with a discussion of new product development (Chapter 9).

New Produce Development (again)

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I heard this great story, “The $100 Million Apple” on the NPR Planet Money podcast (November 25, 2019). The story walks you through new product development and commercialization (launched today, December 1) of a new branded apple — the Cosmic Crisp. The podcast story, while short (9 minute listen) walks you through the development of this new branded apple. The story provides a nice overview of new product development in an unusual context.

After listening, I thought this sounded familiar and that maybe I had written about the Honey Crisp apple on the blog before. Sure enough, almost 5 years ago to the day, I posted “New Produce Development” on the blog. Check that post out for some earlier background.