Business and Management 1B [2088069]

Extremes possess the power to terrify. 'Playing it safe' is the norm, following
the herd is easy; the 'average' individual would no doubt choose Eastenders
over skydiving on a Monday evening. Organisations are no different. In the
midst of economic uncertainty, firms cannot be blamed for sitting tightly in
their comfort zone. However this refusal to 'think outside the box' stifles
creativity; often resulting in production teams rapidly hitting a brick wall. In
order to successfully develop a product or service, it is essential to get ahead
of the curve, get ahead in your field, and conduct effective market research.
When developing a product, consumer led innovation is key. This research
focuses on the target consumer, moulding the product around their wants and
needs, rather than allowing organisations to blindly push a product into a
market. However, accurately identifying consumer needs is arduous. The
world is overwhelmed with fierce competition, demand for low prices, demand
for high quality, rapid boredom, and an almost non-existent attention span.
Interviewing or observing the 'average' customer is unlikely to spark
innovation, whereas extreme users can point towards a products missing
link.
An 'extreme user' is almost the opposite of the target customer. The definition
may vary slightly depending on the product or service. On one end of the
consumer spectrum, for example, may lie an individual who does not use, or
refuses to use your product; on the other end may lie a consumer who
passionately and excessively uses your product. I wish to show that
introducing each extreme highlights amplified needs; providing marketers and
production teams with new insights; easing organisations out of any tunnel
vision. These new trains of thought are likely to satisfy the underlying future
needs of the average consumer.

Literature Review
Consumer needs are "complex, subtle, and fast changing" (Thomke
and von Hippel: 2002) therefore capturing them proves almost
impossible. There is no 'correct' way to conduct market research, but
there are several approaches that can work independently, or intertwine
with one another, depending on the product. Recognising consumer
needs "improves targeting" (Cravens: 1996: 183), but marketers need
to first tackle the identification of needs, or future needs, before
developing products.
Franke et al (2009) researched customisation, challenging the general
assumption that customer involvement leads to automatic consumer
satisfaction. They deducted that in order to develop a successful
customised good, the consumer must have a strong, clear idea of what
they want, the ability to express these wants, and must be willing to
become involved in the production process. The first two points pose
several problems; Mr. Melton highlights to Clegg in the Financial Times
that "if you ask people what they want, often they will look at you a bit
blankly". If consumers struggle to express their needs, establishing a 'fit'
between product and consumer proves challenging.
Thomke and von Hippel (2002) build on this idea of customisation,
placing the consumer at the forefront of the production process.
"Custom manufacturing" is a recent trend that uses "computer
simulation and rapid prototyping" to encourage customer involvement.
"The simulation industry is booming" (Rudnyi: 2011), and several
organisations, such as Nestle, have already adopted approaches where
consumers can develop their own product. Ikea have undertaken the
idea of putting the customer 'in charge' by creating an app that allows
the user to digitally enter Ikea furniture into images of their home. This
provides the consumer with a sense of control; such marketing steers
away from stereotypically intrusive advertisements. However, mass
customisation and simulation may not work for every brand, and simply
2

depends on the product or service. In the automobile industry, for

example, prototyping and simulation may work best only in the research
stage; participants can create their ideal.
Clegg (2014) generates innovative marketing research techniques, by
focusing on Sense Worldwide's 'extreme users'. Today there is a
"complexity of consumer activity and concerns" (Aaker: 1995: 173), the
"complexity" being that we love to spend, yet often fail to understand
our own needs. Clegg introduces the kitchen appliance market, whose
producers interview and observe their extreme user, a cocktail
professional. The perfectionist openly expresses his hatred for ice
produced by commercial freezers, and instead reveals several types of
his own ice, made in very particular ways for specific drinks. Opting for
extreme viewpoints helped this organisation view their products in ways
no average consumer would. Typical fridge owners will not ponder
various ice-based possibilities. However, if new ices were presented to
them, they would perhaps discover a need they were not even aware
of.
Muiz and Schau (2005) discuss the "human need for community", and

liken consumerism to religion. We "continuously strive for more"

(Moutinho: 1994: 107) and naturally yearn to belong to a social group,
often manifested through material purchases. Certain individuals will
find a brand, love it, stick with it, and become a devoted member of that
community. It is stated that brands create "powerful cultures", which we
can relate to extreme users. A passionate consumer can prove an
essential asset in the product development stage; their devotion and
vast knowledge of the product constitutes as 'extreme'. One Apple
Newton customer used the phrase "we are all united". Even if a product
proves to be failing, extreme users and brand loyalists can help reignite
market interest.

Marketers are not trying to over-complicate the already effective

research techniques that provide us with "valuable qualitative data";
interviews, participant observations, focus groups, etc (Cardwell: 2008:
29). Qualitative research helps us "find out what is in a consumers
mind" (Aaker: 1995: 173), but it is now evident that we must approach
this research in a quirkier fashion. Logic and strategy are primary, but
innovaton and eccentricity are also key.

Average User

Extreme User

Extreme User

Mercedes-Benz
Mercedes-Benz boast an impressive automobile portfolio, from the modest AClass hatchback, to the powerful SLS-AMG. Their revenue of 61.7 Billion in
2012 (increasing by 7.4% since 2011: Daimler: 2013) confirms the brand as
market leader (Jobber: 2013: 302). However, the C-Class, once their most
popular model, has reached a halt in terms of innovation. The aesthetic has
evolved since its birth in 1993, developing spin offs and extension lines. The
newer model subsequently won several awards, including 'Car of the Year'
and 'Executive Car of the Year' (Wheels Magazine: 2007). But the C-Class
and its popularity is slipping. 'Whatcar' (2014) awarded the most recent model
a mere two-star rating, claiming the saloon "simply isn't good enough".
BMW's 3 Series, on the other hand, gained a five star rating. So what next?
Extensive research and bold marketing will help refresh the model, and
ultimately refresh consumer interest.
C-Class marketing and production teams must:
1. Identify C-Class target market. Do we want to extend the
target market?
2. Find extreme users, then bring them in to participate.
3. Conduct interviews, questionnaires, focus groups, and
prototype workshops to generate ideas from each extreme.
4. Allow the production team to collate all ideas and designs,
expanding and creating their own prototype.
5. Pilot the new prototype to the 'average' consumer.
6. Pilot the new prototype to the new portion of the market we
wish to target.

Original 1993 CClass

(BuyACar: 2014)

Current 2014 CClass

(Car Catalogue: 2014)

C-Class average consumer: Middle to Upper-Class family

man with a managerial or similar position within the service
sector.
Extreme user 1: Non-drivers and avid walkers. With a
particular focus on those who own a drivers licence but not a
car.
Extreme user 2: Sport car fanatics. With a particular focus on
those who build/use top end sports cars as a hobby or
profession.

The typical C-Class owner is generally an individual who seeks an

aesthetically pleasing model to bring pleasure, impress colleagues, and hold
the road nicely. However, with a rise in innovative design and trendiness of
non-luxury car brands (for example the new Volkswagen Scirocco and the
new Vauxhall Insignia), Mercedes saloons are now not only competing with
other luxury car manufacturers, but mainstream manufacturers too.
We will help the production team develop a model that will still strongly appeal
to the existing target market, yet also create buzz and excitement; winning
back any straying customers. It is important to "assess what is happening in
terms of total current industry sales, and what could happen if current noncustomers were converted" (Moutinho: 1994: 105). We wish to help extend
the target market, producing and promoting to reign in a slightly younger,
cooler (still affluent) consumer, as well as securing a portion of the female
market. In order to successfully develop the model and reinstate the C-Class'
success, the market research should consist of interviews, focus groups,
observations, prototyping, and rigorous testing. The main chunk of this
research will not focus on 'average' users, but 'extreme' users.
We wish to locate participants who can drive, yet choose not to drive,
particularly focusing on females within the 17-30 age group [Appendix 1].
These respondents are our first extreme users, and are likely to encourage
helpful environmental issues. It is seen as a 'trend' to be ecological, and with
growing concerns over carbon footprints, avid environmentalists tend to
oppose to large, powerful engines. This group may include passionate
Greenpeace members, for example, who instead of driving, have decided to
turn to public transport, cycling, or walking. This extreme (non) user is also
likely to raise the issue of the high price of cars today, along with additional
expenses of fuel, insurance, road tax, etc.
Our next body of extreme users are sport car fanatics: individuals who build
and/or drive cars as a profession or hobby (specific focus on members and
technicians of the Mercedes AMG Petronas Formula One Team) [Appendix
2]. These users are likely to stimulate discussions on speed, road control,
technology, aesthetics, and ergonomics. We require here individuals so
passionate about Mercedes, and so passionate about sports cars, that they
will help develop the current saloon into a model that is more 'sporty' and
7

'fun'. It is further advantageous if they themselves own (or have previously

owned) a C-Class; they can highlight ways in which the model might be
changed or improved. They may have tried to better the car themselves
through customisation: re-painted bodywork, installation of new
soundsystems, new wheels, spoilers. These users will help identify the spark
missing from the family car. To this group, a car is a way of life; a piece of art,
not simply a device to transport us from shopping centre to supermarket.
It is crucial at this point for Mercedes to be "cross-functional" (Bessant and
Tidd: 2011: 382), and absorb then manifest the information provided by
market research. "Team working provides a mechanism to bring together
different employee expertise and skills that are required to complete
increasingly complex work tasks" (Hudzyski and Buchanan: 2013: 425). The
marketing and production teams must be on the same page when envisioning
the end product.

Case Analysis
Sense Worldwide's marketing approach (Clegg: 2014) works when
developing the C-Class. Extreme users can be clearly identified here; our first
group are not dissimilar to the cocktail connoisseur who refused to use
"commercial" ice cubes. Non-users often articulate what the average user
thinks but does not put into practice. If an average consumer is presented
with a product developed by extreme users, this may unearth a need they
were previously unaware of. In Clegg's example: a more advanced ice
making refrigerator, in the C-Class case: an environmentally friendly car.
Muiz and Schau's discussion on innate needs for "community", ties in with
Mercedes nicely. Car brands often have strong followings and loyal
consumers, and our second group of extreme users show this need for
community and brand strength. Car marketing can also take advantage of
these basic social needs, using (arguably) controversial advertisement
taglines such as Men talk about women, sports, and cars. Women talk about
men inside sports cars (CarScoop: 2009). This highlights the powerful ways
in which Mercedes can try to advertise their new model, using advertisements
that promote ownership of the C-Class as being a member of a fun, cool,
affluent community.
Although customisation and rapid prototyping have proved profitable for
certain brands, prototyping will be beneficial mainly within the C-Class'
marketing research stage. Each extreme user can be brought in to use
toolkits to assemble their own prototype. The ideas generated will hopefully
provide the production team with an alternative perspective. Perhaps they
were previously preoccupied with creating an executive looking, familyfriendly car, but with help from our extreme users, they can now also focus on
ecology and excitement. With regards to consumer autonomy and control, MB
can develop their website and Smartphone app to allow new customers to
select from a wider range of colours, interiors, technological add-ons, etc.
This virtual world should also allow existing owners to chat with one another,
further promoting brand community and appealing to the younger market.

Our extreme users have helped develop the 2015 electric C-Class
that is now:
Eco-friendly: An electric car will secure a younger, more
environmentally aware market. Fuel economy is "customer usage
specific" (Miller: 2008: 33), but the average driver travels on average
6,691 miles p.a. by car (GovUK: 2013). Even if current C-Class owners
are indifferent towards helping the environment, if the car looks and
drives the same, it would be a win/win situation; powerful yet ecological.
Aesthetically pleasing: electric cars are rarely associated with luxury.
The second group of extreme users ensure that the final model has as a
sleek finish.
More affordable: lower the current price of 28,585, to appeal to the
younger, more frugal market. However we must remember, "price can
influence the quality expected of the product" (Trevisan: 2013: 31). MB
cannot tarnish their luxury reputation by taking the price too low. A
premium must still be charged, but one to strongly rival the BMW 3
Series and Audi A4.

Mercedes-Benz (2014)

ZoroCar (2014)

10

The above articles do not necessarily help produce one solid answer when
developing the C-Class because there is no 'right' or 'wrong' answer to
marketing research or product development. However, we can deduct that in
this case, extreme users work well to help the production team develop an
innovative electric sports car. This case shows that extensive market research
and help from the 'extreme user' can develop our understanding of the future
needs of a market.

"You have to be careful how you market dreams" (Tongren: 1991: p59), a
statement that perfectly sums up Mercedes-Benz. It is beneficial to introduce
eccentricity in product development, but great care must also be taken to
avoid damaging a brand's reputation or prestigiousness. Attempting to sniff
out the obscure is all well and good, but marketers must not lose focus of the
main priority: the target consumer. It would be pointless, for example, to
design a C-Class that resembles a Toyota Prius, simply to please
environmentalists.
Marketers must remember to reign themselves back to reality every so often;
to ensure they are not so preoccupied with 'extremes' that they miss the
obvious. It may be tough to locate extreme users, some may oppose
participation: Mercedes-Benz and Greenpeace rarely see eye to eye
(Warburton: 2013). However, as long as a few extreme users are willing to
participate, the primary focus should be the quality of the research techniques
(effective focus groups, high quality prototyping). Teamwork and mutual
understanding must also be conquered. If clients or colleagues originally find
research including 'extreme users' bizarre, they must be reassured that the
end product will be refreshing, innovative, and will ultimately reflect the future
needs of the average consumer.

Bibliography
11

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13

[Appendix 1]
(Open questioned) survey/interview created specifically for our non-drivers
(group 1)

1. Do you currently own a drivers license?

2. Do you currently own a car?
3. If you answered 'yes' to Q1, but 'no' to Q2, please specify the last time you
owned/part owned a car.
4. If you answered 'yes' to Q1, but 'no' to Q2, please go into further detail,
listing as many reasons as possible for not currently owning a car.
5. Have you ever purchased, or considered purchasing a sports car? If 'no',
please explain why.
6. If you answered 'no' to Q5, would you personally, like to own a sports car?
7. What words do you currently associate with 'Mercedes Benz'?
8. Have you ever considered purchasing an electric car? Please explain your
answer.
9. Would you consider purchasing a sports car if it was reasonably affordable?
10. Would you consider purchasing an electric car if it was reasonably
affordable?
11. Would you consider purchasing an electric car if it was as aesthetically
pleasing as an average sports model?
12. Would you consider purchasing a sports car if it used substantially less
fuel than the average sports car?
13. Do you think electric/hybrid cars will successfully dominate the automobile
market within the next ten years? Please explain your answer.

[Appendix 2]

14

(Open questioned) survey/interview created specifically for our car fanatics

(group 2)

1. Do you currently own a drivers license?

2. Do you currently own a car? If several, please specify.
3. Have you ever purchased a Mercedes Benz? If 'yes' please specify the
model.
4. Do you currently own a Mercedes Benz? If 'yes' please specify the model.
5. If you answered 'yes' to Q3, but 'no' to Q4, please tell us what brand and
model of car you currently own.
6. If you answered 'yes' to Q3, but 'no' to Q4, please tell us why you made the
transition from Mercedes Benz to your current car. Were there any (even little)
flaws with your Mercedes Benz?
7. If you answered 'yes' to Q4, are you satisfied with your current model? Is
there anything (as insignificant as it may seem) you would change or
improve?
8. If you answered 'yes' to Q4, have you ever felt the urge to switch from
Mercedes Benz to another luxury brand? (BMW or Audi, for example) Please
explain your answer.
9. If you answered 'yes' to Q4, have you ever felt the urge to switch from
Mercedes Benz to a non-luxury brand? (Volkswagen or Honda, for example)
Please explain your answer.
10. What words do you currently associate with 'Mercedes Benz'?
11. Have you ever considered purchasing an electric car? Please explain
your answer.
12. Would you consider purchasing a hybrid car if it was as aesthetically
pleasing as an average sports model?
13. Do you think electric/hybrid cars will successfully dominate the automobile
market within the next ten years? Please explain your answer.

15