We discussed Last week we read articles on the marketing strategies for businesses such as Disney and Universal that led them to make billions. I think that Disney and Universal had so many strategies that linked to one idea. Their theme parks and their toys are all childhood rite of passages. Kids push their parents to experience the magic behind Disney. Disney advertises these places so that kids can have a once in a lifetime experience that they keep with them their entire lives. Because of this, people associate Disney with their childhood and in turn tell these stories to their children. This can go on over generations, because as those kids become adults that love Disney and pass that down to their children. They change children’s self images and make them believe that they are “touched by magic” and they pass that down to their kids, “Generational appeal”. This insures that not only does Disney have a marketing strategy for the short run but also the long run over decades.
Obviously this strategy is very successful because not only has Disney and Universal expanded ememsly this past few decades, they continue to be a part of every child’s world. But, Disney doesn’t only appeal to children. They can’t because once those children grow up they will lose revenue on newer movies but since Disney is a big part of each generation they are able to create brand loyalty within these people. So when they do come up with newer material that appeal to adults, those adults will watch those Disney movies.
Similarly, in the last part of the article they mention a sandbox. I think this is a metaphor of what Disney and Universal do. A sandbox by definition is a small area in a park or such that is just sand. Like a enclosed mini beach. In a sandbox, children can create anything they want out of the sands. They can build castles and houses and their own kingdom. Disney and Universal are the children of this small world that dominate and control what they want and where they want it. I think they use the sandbox as an example because it can also be a childhood memory that most people can relate too.
This is a really great post about market strategy and how companies try to find "weaknesses" or ways to connect with their consumers and elicit some kind of emotion. If consumers resonate with the product or develop an attachment to it then they are more likely to consistently use it and like you said above, share it with others. A question I had when reading this question was, Disney and Universal seem like oligopolies in the theme park industry, so does that mean that normally companies in an oligopoly industry must have some type of successful marketing strategy in order to stay at the top?
ReplyDeleteGreat post! I think brand loyalty is a very important way that many companies establish a reliable consumer market for their products. Brand loyalty exists in the Disney and Universal examples you mentioned but also exists in other industries, such as the real estate market (as well as many others). Oftentimes, children will settle down near their parents and grandparents, so they will generally use the same realtor as parents if the parents had a good experience. This is why many realtors find that it is so important to establish a reliable clientele. This way, they can count on the same people coming back to buy new houses and recommending their own children to the realtor.
ReplyDeleteI think the term you coined "generational appeal" is a great way to summarize what Disney, Universal, and a lot of other companies do—insightful post Padmini! It made me think of other examples where colleges constantly have reunions for alumni, convincing them that they're reliving memories but are actually also hoping that the alumni donate and support their institution financially. It also lives on and continues through the future with alumni's children who apply through legacy and keep donating. I've also always wondered why yearbooks are so overpriced and I definitely think they take advantage of memories as a marketing strategy as well—but in a different way than generational appeal. I think they do more so what social media platforms like facebook where the photos almost become "commodified memories" and help gain "social currency"...
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