Thursday, November 18, 2010

Misleading Marketing

"Enjoy 0% interest for 12 months with (bank) c/card Balance Transfer. No upfront fee. Now till 31/8/10. For enquiries & to enroll, call (the bank). T&C apply"

Sounds like a great deal, but the shocker will be revealed in the account statement! In the above misleading marketing strategy, (the bank) does not explain that any payments made for the next 12 months can only reduce the Balance Transfer amount, leaving any/all retail spending to be charged the standard interest. A nice cost saving promotion turns out to be an interest-charging scam in disguise (customer's perception).

When the competition gets tough, companies resort to various creative strategies to lure more business. Even the most reputable companies, may eventually resort to scam tactics to deceive unsuspecting customers. While the customer(s) may have fallen for such scam tactics hook, line and sinker, the experience and (negative) post purchase effect will continue to impact the next purchase decisions. It takes years to build a strong brand, but only seconds to destroy it. 

Only 10% of customers complain, the rest, simply take their business elsewhere. But even for the 10% who complained, the once, positive perception of the company/brand could have been marred especially when the product/service is more personal level. We've heard a dissatisfied customer normally tells 10 others, but in the internet (social marketing) age, the dissatisfied customer tells the world!

Thursday, November 4, 2010

When Brands Become Personal

Remember the scene from Up In The Air where Ryan Bingham (played by George Clooney) a corporate downsizing expert having conversation with another frequent-traveler, Alex Goran, who later turns out to become the woman of his dreams...

Ryan: Are you satisfied with Maestro?
Alex: Yeah, I am.
Ryan: A little stingy with their miles. I like Hertz.
Alex: No, Hertz keeps its vehicles too long. If a car has over 20,000 miles, I won't drive it.
Ryan: Maestro doesn't have instant checkout. I like to park and go.
Alex: Hertz doesn't guarantee navigation.
Ryan: It's funny. You don't seem like a girl who needs navigation.
Alex: I hate asking for directions. That's why I get a nav.

This scene is quite common when we discuss about highly competitive and personal brands. For most of us, unlike the movie scene above, we probably didn't get turned on, or spark a romantic relationship while talking about our personal brand preference, but I'm quite sure we may have experienced some tense moments instead defending our preferred brands and attributes.

These are some common brands that always attract different personality customers. You'll like one and have something you dislike about the other.
Toyota - Honda
Coke - Pepsi
AMD - Intel (processors)
McDonalds - BurgerKing
Microsoft (Kinect) - Nintendo (Wii) - Sony (Playstation)

Brands get their own personality. Similar to (EBA) Emotional Bank Account, brands affect us through their display of positive (or negative) messages through public relations, advertisements, sponsorship, CSR activities, and these activities will have some impact in customer's mind.

Brand personality also play a critical role in (new) product diffussion of innovation. Customers become less defensive when trying out new products from the brands they associate with and are confident and comfortable with.

Wednesday, October 27, 2010

Marketing with Product Reviews

Extract from cnet review - the Nokia N900 Smartphone (click here for full review)

The good: The Nokia N900 offers a powerful mobile Web browser, plenty of storage, a 5-megapixel camera, and an ultrasharp display. It's also fast, multitasks well, and has excellent call quality. Wi-Fi, 3G, Bluetooth, and GPS are all onboard.

The bad: The user interface isn't very intuitive. Ovi Store for the N900 isn't live yet, limiting the number of available apps, and it doesn't sync with Exchanger Server 2003. The phone is a bit bulky and not all apps work in portrait mode.

The bottom line: While it has yet to reach its full potential, the Nokia N900 is a powerful mobile device with excellent browsing capabilities and vast customization options. However, its unintuitive interface and other limitations make this a smartphone for tech enthusiasts and early adopters only.

Almost every product reviews will have something about good points, bad points and an overall recommendation. Unfortunately, I have never seen any review that gives a perfect rating without any bad points.

Even the "best smartphone" around, the iphone 4 also has it's bad points;
The bad: Multitasking entails some trade-offs, and home screen folders are limited to 12 apps. AT&T reception continues to be spotty, and you'll need a case for the best calling reception. Also, we'd prefer a 64GB model.
Next on the list of "editor's choice", the HTC Droid Incredible is not spared from bad points;
The bad: You can't use voice and data at the same time. The multimedia experience is adequate but still behind the competition.
So, why do companies continue failing to completely satisfy customer expectations? Or in this case, review-editor's expectations? Are customers expectations being totally unrealistic for current product development standards to achieve? Or current marketing research managers talking to the wrong target audience, and should include review editors in their Delphi research panels?
The task of anticipating and meeting customer's needs effectively and profitably is not getting easier. Marketers need to be updated with product development roadmaps and actively monitor the evolving needs and trends to stay ahead of the competition. A concept that is not new, but extremely useful, is participating in customers discussion forums. Again, referring to the Nokia N900, there is a powerful forum for developers and phone owners to discuss openly their post-purchase experience and expectations. (read more about the Maemo forum).

Sunday, October 24, 2010

Great Products Create Ripple Effect

"I've also started stuffing papers I want to have with me through a sheet-fed scanner and moved the resulting files to the iPad as PDFs. It is like ripping CDs to get MP3s; the iPad is like an iPod for paper." - PETER SVENSSON, AP Technology Writer

From the article caption above, we could expect a sizeable population with the same intention or thoughts to maximize their iPad experience. And this could easily create opportunities for copier machines that could easily sync with the iPad.

Consider the huge gadget products and accessories market. While they compliment the core products, it's market could be larger due to the flexibility to change designs and trends at a lower investment. With easy customization, some accessories even allow you to create team-themes. Besides offering some product protection, gadget accessories allow consumers to differentiate their products and create an identity for themselves, and take HP's tagline, "the [computer] is personal again" up a few levels.

ZAGG Inc. (a company that supplies high-end gadget products and accessories) mission statement, "ZAGG is committed to offering innovative ways to improve the relationship between people and their beloved gadgets—that they love and rely upon. We get it!"

Lifestyle Altering Products

It's interestng how some great gadgets actually influence our daily routine. But if we look carefully, it's not really the gadgets, but the marketing and brand building activities that actually breathes life into a product.

iPods could have been another very  sophisticated "walkman". But consider the impact from the product branding strategy, "Ultra-Portable MP3 Music Player Puts 1,000 Songs in Your Pocket." According to Steve Jobs, "With iPod, Apple has invented a whole new category of digital music player that lets you put your entire music collection in your pocket and listen to it wherever you go. With iPod, listening to music will never be the same again.”

The PDA (Personal Digital Assistant). While the original form and function may have evolved dramatically into surviving smartphone versions, have changed the way we take notes, and made smartphones more of a necessity. Over 150 million smartphones are sold each year, while "stand-alone" PDAs without phone functionality sell only about 3 million units per year (Wikipedia).

The classic marketing explanation of augmented product (the non-physical part of the product) and the presentation creates purpose for the product's existence and sustainability. Marketing is about meeting the needs of customers effectively and profitably, so don't just sell on the product features and specifications, but recognize what the customer needs and sell the customers solutions.

Marketing myopia as introduced by Theodore Levitt suggests a wider perspective of marketing attributes. Some common examples include positioning as transportation rather than train, energy rather than petroleum. Organizations could explore more opportunities and improve their competitive strategies if they positioned the product(s) or corporate vision creatively.

Still on the topic of walkman...
on Monday, Sony announced the end of the classic cassette tape Walkman in Japan.
(AP) Published: Tuesday October 26, 2010 MYT 8:54:00 AM

'Sony Walkman' dies aged 31
NEW YORK: The Walkman, the Sony cassette device that forever changed music listening before becoming outdated by digital MP3 players and iPods, has died. It was 31 years old.

Sunday, March 28, 2010

Impactful Branding

What makes brands powerful?

Making line-extension brand names recognizable by (logical) sequence allows immediate association and understanding of the brand category/classification and supports differentiation strategy and recognition. Here are some case studies:

Cars: Everyone is familiar with the 3-series, 5-series and ultimate driving machine 7-series (BMW). Another example is the S40, S60, S80 (Volvo)which one can easily distinquish the sedan class and catagory. Unless you are an E-class fan, or S-class, or C-class, or B-class,'ll probably get confused at some point of time on the category difference. (of course each code has a distinctive meaning; E = Executive, S = Luxury, SLK = Sports, SLR = Exotic...but isn't each Mercedes model supposed to be executive, luxurious, sporty and exotic?).

Microprocessors: Back in the old days, (marketing brand names) Pentium I, II, III, 4... is so much easier to understand and remember rather than Athlon, Turion, Sempron, Phenom... Unless of course (again) you are a huge computing fan and you've scrutinized and memorized each processor features because of your specific needs.

Mobilephones, Laptops, Digital Cameras and other gadgets: When you have new products every 3-6 months, it's a bit difficult to keep labelling them in series (a case of brand dilution). That's why most manufacturers refer to the category as often as the brand-series.

Laptops: TT Series, Z Series, SR Series, BZ Series, G Series (Sony Vaio series).
To avoid confusion, laptop manufacturers use categories such as Mini, Everyday computing, Ultra-Portable, and High Performance which is so much more user friendly.

Digital Cameras: Usually brand distinction by the simple digital "point and shoot", and professional DSLRs series are more effective rather than the IXUS, Powershot, Powershot Pro, EOS (Canon camera).

Golf: Product categories for Game Improvement (MX-25, MX-1000, MX-100, MX-200, MX-300), Game Enhancement (MP-58, MP-68, MP-52, MP-62) (Mizuno).
The American Marketing Association (AMA) defines a brand as a "name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers.

Therefore it makes sense to understand that branding is not about getting your target market to choose you over the competition, but it is about getting your prospects to see you as the only one that provides a solution to their problem.
Read more on branding strategy here

Saturday, March 27, 2010

Marketing for a Sustainable Future

“The financial crisis is a result of our living beyond
our financial means. The climate crisis is a result of
our living beyond our planet’s means.”

Yvo de Boer,
Executive Secretary of the
United Nations Climate Convention
Learn about climate change - download the WWF pocket guide to Climate Change

Friday, March 26, 2010

Earth: Every Marketer's Responsibility


Earth Hour started in 2007 in Sydney, Australia when 2.2 million homes and businesses turned their lights off for one hour to make their stand against climate change. Only a year later and Earth Hour had become a global sustainability movement with more than 50 million people across 35 countries participating. Global landmarks such as the, Sydney Harbour Bridge, The CN Tower in Toronto, The Golden Gate Bridge in San Francisco, and Rome’s Colosseum, all stood in darkness, as symbols of hope for a cause that grows more urgent by the hour.

In March 2009, hundreds of millions of people took part in the third Earth Hour. Over 4000 cities in 88 countries officially switched off to pledge their support for the planet, making Earth Hour 2009 the world’s largest global climate change initiative.
Earth Hour 2010 takes place on Saturday 27 March at 8.30pm (local time) and is a global call to action to every individual, every business and every community throughout the world. It is a call to stand up, to take responsibility, to get involved and lead the way towards a sustainable future. Iconic buildings and landmarks from Europe to Asia to the Americas will stand in darkness. People across the world from all walks of life will turn off their lights and join together in celebration and contemplation of the one thing we all have in common – our planet. So sign up now and let’s make 2010 the biggest Earth Hour yet!.

It’s Showtime! Show the world what can be done.

Wednesday, January 13, 2010

2010 Expectations

A little late, but it's always fun to join the 2010 expectations bandwagon. Here are some for marketing topics. A new year presents opportunities for new goals, new themes, new ideas, new hopes and new expectations. Of course, any of these could be done any time of the year. But like Christmas and all other holidays, it's a catalyst or gimmack for a happy new year! So, here goes...

Shorter articles will gain more interest unless you are writing journals or academic thesis. Look at how well Twitter is surpassing Blogs. People expect to know things faster and make their own conclusions which is usually more fun. This also applies for advertising messages. If you don't succeed in capturing attention within 3 seconds, the rest don't matter. Again, make it different and make it clear what you are selling.

More me-too products will continue to compete in the market because of saturation of form and function in technology and product developments across various industries. Hybrids for cars, more functions crammed into mobilephones, and thinner laptops with longer lasting batteries, less power-hungry processors, etc are only small, incremental developments. Even new breakthrough product development need to compete with faster emerging me-too. Finding new ways for people to dispose of their old products will be the better strategy to improve new product diffusion of innovation.

Waste will continue. On one hand we look for ways to reduce certain waste (less paper, bio-degradable), but on the other hand crappy products continue to over-flood the market and create more waste. The vicious cycle includes competing for floor space during new product introduction, more advertisement and promotion efforts to sustain growth and fight off competitors, and finally how to dispose of end of life products with new advertisements and promotions. How to consolidate and collaborate effectively will ensure an exponentially greater waste-reduction effort. Also, how to use the same product for different purpose like the WD40 example. Unfortunately, it's easier said than do-able. Imagine using your mobilephone as paperweight?

By making things more "available", we are creating waste. Look at the airline, automotive and housing industries - by making it easily available for everyone to have, we have created excess of everything from the supply chain to the end products. In contrast, limited editions sell for higher profit margin, last longer (because of the prestige association), and reduces supply chain waste (limited order planning). Unfortunately, in economic sense, it's less attractive because volume sells better, but you'll definitely have less waste.

Doomsday themes continue to sell. Doomsday messages including financial crashes, commodity shortages will continue to dominate online search and make interesting headlines. Tag your promotion campaign on these themes to get attention.

Post financial crisis management theories. A lot of previously well-known strategies will be outdated or lose some credibility after the 2007 world financial crisis. Most of the companies featured as "Good to Great" didn't perform or remain as resilient as they should have been. Were the management strategies wrong? No, it's just a different ball-game which only goes to show that we need to be highly adaptable to survive. The iceberg IS melting, Expect more new theories on how to survive the next crash, but to stay ahead of the pack, change the ball-game totally to your advantage.

Stay tuned for more...