This post is in response to an interesting blog written by Seth Godin.  One of his posts, titled ‘Moving beyond impressions’, intrigued me.

As a neglector of internet advertisements, I have never taken much issue with them.  I simply close pop up ads when they come up, look away from side panels, and think about something else during pre-video commercials.  They never inherently angered me; I accepted them as a reality of the internet.

But Godin identified a ramification that had not crossed my mind.  He states that web ads are astonishingly cheap, and that reaching millions of people can easily be achieved.  But Godin states that damage to the company’s image could far outweigh the gains they make from advertising.  He states that companies should consider perception when advertising on the internet – wether or not viewers will consider the label an annoyance or a valued sponsor, an interrupter ar a benefit.

Come to think of it, I do see many Cole Haan advertisements on the New York Times, UEFA, and GQ websites; but I can’t say that this makes me feel any better about the brand…

Seth\’s Blog

In response to Armin’s Netflix blog, I agree that Netflix made a bad business decision, but I think that there was more logic behind it than some would wish to admit.  By splitting their services into streaming and rentals, Netflix evaluated consumer tastes and tested their preference of one service or the other.  In my experience, users of Netflix prefer either streaming movies and TV shows on their computer or loaning DVDs.  With consumers employing one method or the other, splitting them up seems sensical.  However, splitting the services was unfavorable in my household, and I suspect many others.  With a mother who prefers actual DVDs and a brother who is crazy about streaming, sacrificing one wasn’t an option in my family.  So, we elected to pay two installments of $8 per month instead of the old single payment of $10.  Not a tragedy from our point of view, but certainly an annoyance.  I imagine that there were many families in a similar position who were not willing to pay for both services, or dropped their subscription entirely.

I see the logic behind Netflix’s decision – based on my observation that most users use one service or the other.  But consumer’s unwillingness to submit to the separation of the services into two installments is understandable.  Personally I enjoy the convenience of being able to stream or loan DVDs.

Armin\’s Blog Post

Our speaker in class, Joel Primus, is a prime example of a successful entrepreneur.  One of his strategies that really stuck with me was his strategy of starting from the top up.  By marketing his product to the top tier stores, he was able to establish a proper image for his brand.  I find this to be quite an interesting tactic, and on that could be very useful for aspiring entrepreneurs.  At the end of the day, designer clothing is more about brand recognition than about the quality of the good.  By convincing people to pay premiums for his brand by making them feel that his brand is exclusive and special, Primus Established Naked as a brand to be respected.

In Vanessa’s blog, she cites the fact that Naked’s products carry an image of higher quality that they are actually able to substantiate.  Because of this, they are able to charge higher prices and attract customers at premier stores.

Vanessa\’s Blog Post

As an example, The Canada Business Hall of Fame recognizes business leaders whose accomplishments directly benefit society. Each year, recipients are recognized for their contributions to better society.

To that end, society at large benefits from good business by way of corporate social responsibility, charitable giving, and the goods and services that the people so desire.

Some entrepreneurs whose business models encompass social connectivity have experienced unprecedented returns. This relatively new industry has provided man with what is to be one of his greatest psychological needs: meaningful relationships. On that vein, companies like Skype and Facebook and their contemporaries are, perhaps, so successful in that they sell themselves by fulfilling an innate desire for we the users to connect across space and time.

In short, an entrepreneur has the ability to change the way things are and in so doing, change the way things are done.

The responsibility of a company to provide its employees with benefits rests with the company’s management team.  Like any good business decision, a decision to offer benefits should be considered in light of costs and benefits.  While there is no ultimate rule about benefits, a company should also consider its competitive landscape when creating benefits packages that are engineered not only to compensate employees but also to reward and incentivize them as well.

As the old adage states, people vote with their feet. If a company fails to retain its employee’s satisfaction, costly turnover and loss of human intelligence quotients is likely to ensue.  A company has a responsibility to its stakeholders to perform to the best of its ability – this could be interpreted as sacrificing short term gains in favor of long term growth.  One way to potentially achieve this would be to provide benefits, incentives and advancement opportunities to workers.