Video Title: Pandora
Length: 6:05
Synopsis: Joe Kennedy, CEO of Pandora discusses the niche of Pandora as a company that uses the Internet to personify the radio experience. Joe discusses how Pandora analyzes music in depth through the use of the Music Genome Project, to be able to offer this service to consumers. Joe then discusses the history of Pandora, which was originally established as a B2B company focusing on music licensing. Joe goes on to discuss the challenges of transitioning from this B2B company to connecting directly with the consumer. Pandora focused their marking strategy of establishing this by word of mouth advertising. Joe ends the segment with career advice for viewers to pursue their passions, which will ultimately lead to success in their career.
Learning Objectives: Competitive Advantage, Word of Mouth Advertising, The Internet, Personalizing consumer experiences
Short Answer
1. Discuss the challenges Pandora faced by transitioning from B2B to a consumer model.
Pandora faced the challenge of building a connection between the company and the consumer directly. They had to ask themselves “how do we build a consumer audience and put forth a platform that people will enjoy and buy into.” The questions and challenges they faced were how to make this transition.
2. Discuss the three advertising options Pandora had and which one they choose and why.
Pandora had three options of advertising: 1) the conventional marketing approach, which would be a media plan; 2) word of mouth advertising; or 3) sell the company to a larger company that would have the capability of connecting with the consumer. Pandora chose to focus on word of mouth advertising.
3. What career advice does Joe give in the segment?
Always focus on what you have a passion for! If you have passion, then you have excel to be the best in the product or service category you are offering.
Multiple Choice / True-False
1. Word of Mouth advertising is
a. Easy to say. Much harder to do
b. One step at a time
c. Viral
d. All of the Above
Answer: D. Word of Mouth advertising requires all of these factors to be successful.
2. Today, Pandora’s niche market is
a. Delivering personalized radio experiences
b. Connecting the world
c. Licensing music
d. None of the above
Answer: A. Pandora has worked diligently to provide to the listener a personalized listening experience.
3. What is Pandora’s competitive advantage?
a. A good marketing plan
b. Putting yourself in the hands of the audience
c. Making radio personal for you
d. All the above
Answer: D. All of these are distinct competitive advantages currently enjoyed by Pandora.
4. True/False: Advertising, by itself, can make a company successful.
Answer: False. You cannot be successful without a good product.
5. True/False: Word of Mouth advertising is only successful after you have established your brand.
Answer: False. Word of mouth advertising can be an effective method in creating brand visibility, as seen at Pandora.