Month: November 2010

Keith Foong recently blogged about the value of quality, and how a product of good quality will sell. He used Blizzard and EA Games as examples, where Blizzard is known for the high quality of their games and EA is known for releasing many games of questionable quality.

Blizzard’s Starcraft 2 took 10 years to produce.

While from a consumer point of view, Blizzard is preferred to EA due to their high quality products (and games having similar prices), producing very high quality products does not ensure having a successful business. Quantitatively, although Blizzard may sell a higher number of each product they produce, EA’s total sales may be greater in the end due to their higher number of games. The cost of ensuring higher quality may also outweigh the revenue generated from it. In the gaming industry, however, I would agree with Keith that having higher quality games is better for a sustainable business, and that reputation is very important.

When taking a look at another industry like T-shirts where prices can greatly vary, the consumer’s value of quality versus quantity may change. For example, I myself would prefer buying 10 inexpensive shirts rather than 1 quality shirt. Although the quality shirt may last longer, I would place a higher value on variety.

In the end, each business needs to look at what balance of quality and quantity will allow them a sustainable business model in their specific industry.

What do these ads have in common? They all effectively demonstrate the exact benefit of their product with visuals.

At times people struggle to find the perfect words, when in fact no words are necessary at all. Many people are not interested in reading about products, especially when they were not looking for the product in the first place. An interesting picture, however, can deliver the message efficiently and in an entertaining and interesting way. A very simple ad will also have the extra benefit of standing out and being easy on the eyes.

After reading Amelia Lak’s post on the purchasing of luxury goods, I decided to expand on the answer she gives to the question “what are you actually paying for?”

Amelia talks about the promotional costs causing the increase in price of Christian Louboutin shoes, and says that it is entirely possible to get a product of equal if not superior quality at a lower price when the price of the product is not inflated due to excess promotions.

While it is true that a prudent shopper may buy cheaper products of the same quality, the value of the items is not necessarily equal. When promotions cause products to become known for their luxury and prestige, this association with the brand may be worth more than the quality of the product itself. Although many people find it shallow to purchase expensive products for the sake of it’s high price, I think it’s entirely reasonable under the right circumstances.

Many people work very hard for their money, and have had a lot of monetary success in their lives. One way to feel proud and display their accomplishments is through spending. While it can be considered a waste, if it makes the consumer happy, I think the price can be disregarded. Why else do people work hard for money? It is not wrong to want to have nice things and to want others to know how hard you’ve worked for them. I’m not condoning teenagers being obsessed with spending their parent’s money or their entire paychecks on expensive brands of clothing, but sometimes having something nice that everyone knows is nice is a good feeling worth more than the money spent.

Aside from the appeal of being known for your wealth (or fashion sense) in everyday life, there’s also the possible need in one’s professional life. Some like to deny it, but in many industries and businesses, seeing someone wearing very expensive brands will give a more favourable impression of that person, which can be very important.

Snap judgements are made by everyone everyday, and no matter what some people say, the way you dress will influence how people see you and how they treat you. For some, manipulating this influence is worth all the money they could spend on luxurious goods, and how a product is promoted to reflect a persons status/wealth can exponentially increase a products value.

Sometimes what a piece of clothing says is more important than how it feels.

In Michael Fleischner’s marketing blog,The Marketing Blog, he gives easy tips for businesses to develop an online presence.

His main steps are to get a website, register the business and website on online directories, get the business on online maps, such as Google maps, and create spaces on the most popular forms of social media. I just want to emphasize on how critical these steps really are to have a successful business these days, especially since all of these steps except for creating a website are free.

Websites are almost a representation of the experience a consumer will have when associating with a business. An outdated, inaccessible or nonexistent website will give a negative impression to consumers, and make it more difficult for consumers to assess whether the business will meet their needs. Aside from being informative, a good website allows it’s viewers the opportunity to appraise products or services, and also can be used to market the business to the appropriate market segments by having the respective layout and presentation.

Being searchable means being found by consumers who are searching for alternatives to meet their needs. Nowadays, many people who needs a product or service will look for information online, and without being listed in the appropriate directories, many potential customers are lost. It’s free promotion, and it increases brand awareness.

Similarly, maps are very important. I myself use Google Maps frequently to locate destinations and plan routes. If a business cannot be found on a map, the “price” of the products/services offered by the business instantly increases in proportion to the added hassle required to find the business. Being convenient and easily accessible are incredibly important especially for businesses with lots of substitutes and competition.

Social media is a free, yet incredibly effective method for promotion. The only cost is the time associated with creating the proper spaces. Like websites, they can give consumers an idea of the values and associations a business has, and get a glimpse of the experience they can expect. Having proper representation on Facebook, for example, can easily and possibly virally increase brand awareness.

Businesses can’t expect business unless they can get their name out, and nowadays, getting a name out is easy. The problem is that it’s easy for everyone else as well, and if a business can’t keep up, they can’t compete.