How do you market a new product that while beneficial to the entire planet, will likely only seriously appeal to a small segment of the general population? A product that is the future of an industry. A product that can potentially revolutionize America from our ecological footprint to our dependence on foreign and domestic oil, but the majority of Americans are skeptical of. Well of course, create a mass marketing campaign with television ads during the World Series being a key ingredient... no?
When I read articles like Will Consumers Get Charge From Electric Cars, it just burns me up inside. All of these big marketing execs getting paid millions of dollars to market a product, and even when they get the gift of a purple cow, they work incredibly hard to make a disaster out of it!
Briefly, for those who aren’t familiar with the concept of the “purple cow,” it is basically a unique product in the marketplace. Brown cows are unremarkable. If you see one, you probably wouldn’t think much of it because brown cows are everywhere. But if you were to see a purple cow, now that would get your attention, get you excited, and get you talking! For more, read the book Purple Cow by Seth Godin.
So back to this article, which is discussing the trepidation that despite electric cars being a seemingly clear cut example of a purple cow, will it catch on with “consumers.” Some of the numbers the article highlights in terms of purchasing attitudes towards an electric vehicle include:
- 65% of consumers said they wouldn’t pay more for it (compared to a standard vehicle)
- 51% said they wouldn’t pay more than $5,000 above the average price (of a vehicle)
In related surveys that inquired about consumers’ attitudes towards purchasing “green” products as a whole, some of the results were:
- 66% agreed with the statement, “The environmentally friendly alternatives for many of the products I use are too expensive”
- 74% of respondents rated prices as “extremely important” in their purchases of household paper goods, but only 15% said a product being “environmentally friendly” was “extremely important”
- 33% of consumers believe eco-friendly products don’t work as well as the “regular” ones
So in the face of these challenges with “consumer” attitudes, the article points to the direction Chevy and Nissan (with their soon to be released Volt and Leaf respectively) may pursue:
- Based on the increase in TV advertising in the auto industry as a whole, the author’s hinted that television advertising would be a focal point of their marketing campaign (i.e. Chevy Volt’s ads running during the World Series)
- They must effectively communicate the benefits of electric vehicles such as fuel efficiency (and the resulting savings at the pump) as well as the environmentally friendly aspect
- It won’t hurt to mention the federal tax rebates of up to $7,500 for both the Leaf and Volt
So, if I have summarized this all correctly, what we have here are “consumers” who, though would like to be buy environmentally friendly products, aren’t willing to pay a premium, think they cost too much, and don’t really believe they work all that well. So the idea is to try to convince the “consumers” with as much advertising as can be afforded that it doesn’t really cost that much when you factor in what you save in gas and tax rebates. Plus, what’s price when you are saving the planet?
Somebody needs to read Purple Cow apparently (and/or Crossing the Chasm, The Tipping Point, and Unleashing the Ideavirus), the point being that instead of talking about what to say to them and how to reach them, the marketers need to focus more on who the “them” is they are talking to! You’ll notice I have been putting “consumers” in quotes. The reasoning is because the article continuously talks about marketing efforts to consumers as a vague concept where who the consumer is does not have relevance. It is almost as if they believe they should be trying to sell these electric cars to everybody who could possibly be in the car market in the next year.
If the author of this article, and more importantly, the marketing execs at Nissan and Chevy do not find an important distinction between their consumers, they will almost certainly be responsible for the killing of the second coming of the electric car (see the 2006 documentary Who Killed the Electric Car). They will overspend on advertising, not enough people will buy, and the car companies will scrap the vehicles claiming they did everything they could but the market wasn’t there.
One of the important takeaways from Purple Cow is something that we all should’ve learned in business school, and that is the product life cycle and the consumer curve, where only a small percentage of consumers are eager for new. Everybody else is fairly satisfied and not eager for change. Where Purple Cow takes another step is in stating that not only are most people not interested in new, even when they are interested in what used to be new, you can’t sell it to them. Only the “innovators” and “early adopters” who are peers of the majority that buys later in the product life cycle have a decent chance at convincing them to buy your purple cow. With that said, for as tempting as it is to market to the biggest slice of the pie, it is inconsistent with what we know about how the consumer curve works, and at the end of the day, a huge waste of the resources that go into marketing to people who are ignoring you!
So back to the practical applications, is it really a good idea for Chevy to run television ads for the Volt during the World Series? Despite the fact this is the most obvious autumn mass marketing opportunity for a product that we’ve established shouldn’t be mass marketed (the masses don’t like purple cow), baseball has arguably the most conservative, traditional, and old-fashioned demographic of all the major sports. Think about it, they are still debating instant replay! Does that sound like a group that will be interested in your new futuristic car, Chevy?
Please Chevy and Nissan, please save your money! Put that money into creating iPhone apps and advertising on the iPad. Create a campaign on Foursquare or other newer social networks. Talk to people who LIKE NEW, not to people who HAVE CARS. It will focus your efforts and messaging, make your expectations more realistic, bring your advertising costs down, your ROI will go up, and the electric car will survive this time to meet the mass consumer.