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Video Title: Konica/Minolta: Advancing in the Digital AgeRun Time: 3:39Classroom Application: Instructors will find this video useful in the study of consumer behavior. Konica/Minolta serves as a good case study for understanding consumer behavior, especially as it relates to the changes experienced as a result of the digital age. Providing students with such knowledge can help them to appreciate and better understand the way digital advancements are shaping the business marketplace and the importance of understanding consumer behavior.SynopsisKonica/Minolta has been in business since 1873. It was a successful photo company for many years, but with the advancement of digital photography the company decided to change course in 2007 and completely moved out of the photo industry. Konica/Minolta now produces office equipment and print products for commercial printers. The company also has a health care and medical group, optics group, and a division that produces components for cell phones and televisions. Konica/Minolta’s marketing strategy is now a business-to-business approach and has changed drastically with the advancement of social media.Discussion Questions1.For many years, Konica/Minolta was a major player in which industry? Explain why the company eventually exited this industry entirely.For many years, Konica/Minolta was a major player in the photo industry. In 2003, they began a shift away from this industry. Even though the company was the number three provider of film and photo paper globally, Konica/Minolta recognized the decline of this industry. As digital cameras became more popular, the photography industry was becoming a consumer electronics industry. This change did not play to the strengths of Konica/Minolta; therefore, the company decided to diversify and move away from the photo business. By 2007, Konica/Minolta had completed exited the photo industry.2.Explain how Konica/Minolta’s marketing strategy has changed within the last decade.Konica/Minolta’s marketing strategy has changed drastically within the last decade. The company has moved away from business-to-consumer marketing and now uses a business-to-business marketing strategy. Konica/Minolta markets to small and mid-size businesses, as well as large companies, government agencies, and educational organizations. Brand is critical to their new marketing strategy.3.How has social media influenced Konica/Minolta’s marketing techniques?In the past, the company had complete control over their brand message. Today, social media creates an interactive marketing environment. What customers are saying about a company on social media sites affects the brand image. Social media also provides Konica/Minolta with a method for interacting with customers and an opportunity to understand customers’ thoughts and feelings about their products. This provides the company with instantaneous feedback and can be a useful marketing tool.Quiz1.Which of the following best describes why Konica/Minolta decided to get out of the photo business in 2003?a.Photography was becoming an all-electronic medium in which products such as film would no longer be sold.b.Photography was becoming an all-electronic medium in which products such as cameras would no longer be soldc.Photography was becoming an all-electronic medium in which people would now use video rather than still images.d.Konica/Minolta’s cameras could no longer compete with those of Nikon and other big photography companies.Answer: aExplanation: Prior to 2003, Konica/Minolta made most of its revenue selling photographic film and paper. Recognizing that photographic images would soon be largely viewed on computer screens as digital images, Konica/Minolta exited the photo business.2.Suppose you were a Konica/Minolta manager in 2003 and needed to determine which part of your business was likely to disappear first. Which part of the company’s photo business would you consider to be LEAST likely to survive?a.the camera business because cameras are no longer required for photographyb.the photographic paper business because electronic images do not need to be printed on paperc.the photographic ink business because electronic images do not need to be printed with inkd.the film business because electronic cameras do not require film Answer: dExplanation: Of all the things that changed in the photography business, the need for film was the most drastic change. Currently, cameras, photographic ink, and photographic paper are still products that have a large market. The market for traditional photographic film has almost completely disappeared.3.In 2003, the CEO of Konica/Minolta made a brilliant move by exiting the company’s core business and move into new fields. Which of the following, if true, would pose the greatest threat to Konica/Minolta’s current business?a.cell phone cameras that are so high in quality and resolution that the market for dedicated cameras disappearsb.printing equipment that is so high in quality and resolution that the market for commercial production-quality professional printers disappearsc.tablet computers that are so high in quality that they rival the images that appear on photos printed on paperd.consumers deciding that they will have “paperless” households and causing the consumer printer market to drop dramaticallyAnswer: bExplanation: Konica/Minolta currently focuses on commercial, production-quality printing equipment. If professionals no longer need specialized equipment for publishing such things as magazines, Konica/Minolta’s business will once again be in trouble. Such things as better cameras, better tablet computer images, or paperless households will not threaten Konica/Minolta’s current business.4.Which of the following statements is true with regards to changes in the marketing environment of the past? a.Brand image was more critical 20 years ago than it is today.b.In the past, companies had complete control over their brand message; today, customers share partial control of brand message.c.In the past, customers had more control over a company’s brand message; today, companies retain complete control of brand message by representing themselves on on TV, the Internet, and in social media.d.In the past, it was easier to obtain customer feedback than it is in today’s marketing environment.Answer: bExplanation: Twenty years ago, companies had complete control over their brand message. Today, customers share in a company’s brand message through what they say in social media and other websites. For example, when Konica/Minolta comes out with a new product the company almost immediately gets feedback — through blogs, social media sites such as Facebook, and other consumer rating sites — on how well the product works and whether the product successfully meets a need in the market. This feedback helps the company, in turn, adjust not only its brand image but sometimes also the product itself, making design changes in response to customer reaction.5.Which of the following identifies a key benefit to the use of social media for a company like Konica/Minolta? a.Using social media, companies can get close to customers without having to conduct expensive focus groups.b.Using social media, companies can manipulate the public’s reaction to a product by posting “consumer opinions” that are actually observations that come from the company’s PR department.c.Using social media, companies can get close to the activities of competitors and learn about the products that they plan to market before the public finds out about them.d.Using social media, companies can relate to consumers as just “one of the guys” without the stigma of being seen as having an agenda.Answer: aExplanation: The greatest benefit of social media is that a company like Konica/Minolta can get an accurate view of its customers’ response to a product without needing to conduct expensive focus groups or market research. Companies often release a product in an unfinished “beta” form and allow users to respond. Based on the response, the companies then may choose to tweak the product, make major changes in the product, or release the product for general consumption as is. ................
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