Month: September 2012

We are all too familiar with those tedious television ads that use the exasperating act of repetition in order to implant a message in our minds. Well, what if you found out that marketing was taking an innovative approach in regards to brand positioning?

Microsoft has created a new, interactive advertising system for its gaming system, the Xbox. The advertising system, “NUads” is the first to allow users to interact with advertisements from companies such as Subway, Toyota and Rogers. Users are given the chance to not only answer poll questions with their opinions on products, but also to test their knowledge of the plot of the ad by answering “just-for-fun” questions. NUads likewise provides companies with the opportunity to see into the minds of consumers and thereby acquire a better understanding of their values and opinions. This is a skill that is certainly beneficial in the realm of brand positioning, where the company’s goal is to hold a memorable, first-in-line position in the consumer’s mind.

It is in this sense that Microsoft is truly taking brand positioning to a new level. The companies involved with NUads are fully equipped to enter the battle for the consumer’s mind, but are the consumers vulnerable enough to succumb to the conquest?

Below is a video that displays the interactivity of Microsoft’s NUads:

https://www.youtube.com/watch?v=tXXoajzmOdU

Sources:

http://www.theglobeandmail.com/report-on-business/industry-news/marketing/microsoft-xbox-ads-go-interactive/article4568297/

http://microsoftarena.net/microsoft-kinect-supported-nuads-are-coming-in-spring/ (photo)

Even before the new iPhone 5 had been unveiled, the countless rumours, predictions, criticisms and hype over its release rendered it one of the hottest topics in current affairs. Now that the phone as finally been released, economists are beginning to consider the fact that each consecutive iPhone has had astonishingly increasing numbers of sales, and are even beginning to speculate whether the iPhone 5 has the ability do the seemingly impossible and boost the US economy.

According to economist JP Morgan, sales of the iPhone 5 “could boost annualized GDP growth by $3.2bn, or $12.8bn at an annual rate.” But this statement led me to wonder, how is it possible? Why the sudden potential change in economic activity? The answer is simple; consumer behaviour. Recent studies show that, ironically, those who demonstrate the strongest demand for the new iPhone are those who currently own an iPhone. While some believe that it is the result of technological, life-improving innovations that have the potential to boost the US economy, economist Paul Krugman points out that it isn’t the technological advancements of the iPhone that will boost the GDP, but rather the spending that will occur when consumers abandon their phones and upgrade to the iPhone 5. However, he also begs the question, do we truly believe that destroying capital will benefit the economy in its state of depression? Skeptics are likewise quick to point out that if people buy iPhones with money they intended to spend somewhere else, there would be no boost in GDP.

The greatly anticipated phone has finally been unveiled and is set to be officially released tomorrow. So what is in store for the US economy? Perhaps we are over-hyping the release of the new gadget and the US economy will be relatively unaffected. Or, alternatively, perhaps the future of the US economy is in the hands of anxious, Apple consumers. Only time will tell!

Sources:
http://www.businessinsider.com/paul-krugman-on-the-iphone-5-2012-9
http://www.guardian.co.uk/business/2012/sep/11/apple-iphone-5-boost-us-economy?newsfeed=true
http://www.zdnet.com/why-the-iphone-5-launch-will-be-the-biggest-upgrade-in-consumer-electronics-history-7000004024/
http://www.phonewhiz.ca/ (photo)

The devastating outcomes regarding the April 2010 oil spill in the Gulf of Mexico were made clear shortly after the devastating incident occurred. We were aware that the disaster cost the lives of eleven men. We were aware that it was the worst offshore spill in U.S. history. Were you aware, however, that the shares of BP – the oil and gas company – decreased by more than half as a result of its misleading statements in regards to the severe size of the spill and the company’s ability to respond to the incident?

Six investors who bought BP shares right before or right after the incident are now suing for common law fraud and negligent misrepresentation and for statutory fraud, claiming that after the spill, the company had issued statements that neglected to inform investors of both the unmanageable size of the accident and of BP’s substantial wrongdoings. The investors also noted that BP’s safety regulations and statements were deceptive and flawed. BP’s injudiciously false statements were said to entice investors to purchase more shares.

This incident begs the question, what is the extent to which companies will commit moral wrongdoings for the sake of unethical profit? The sacrifice of safety for the sake of financial gain is clear in this particular case. BP should be held accountable not only for the environmental destruction it caused, but also for its seemingly inconspicuous, yet unprincipled disregard of the truth.

Sources:

http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/9518692/BP-sued-for-hiding-truth-over-safety-in-Gulf-oil-disaster.html

http://www.upi.com/Business_News/Energy-Resources/2012/09/04/BP-sued-over-safety-issues/UPI-74091346755890/

http://www.thisblogrules.com/2010/06/contest-opened-to-give-bp-logo-a-new-deserved-look.html  (photo)

Link for background information on the BP Gulf of Mexico oil spill: