Categories
Uncategorized

Regional Differences in Pricing

I’m a fan of a certain Anime series called Tengen Toppa Gurren Lagann. It’s a motivational roller coaster of emotions and over-the-top action. I love it. Here’s how much an import of it costs online.

At the moment, you might be saying “Holy moly! You mean to tell me that a box of CD’s will cost you almost half a grand?! You must be nuts to even think about buying this thing!” And you’re probably right. Not many people in North America, save for the fanatics or the 1%, would ever dream of buying this glorious box. You’re probably thinking that the marketing managers messed up their pricing strategy. Now, here you’re probably wrong.

Let me introduce a fictional character named Cras.

Cras

 

Cras is your typical North American male. He’s 16 years old, talented but unmotivated, and enjoys playing video games in his spare time. He works part-time as a swimming instructor. There is no way that he will blow over $500 for an anime series he can watch online for free (legally, of course!).

Cras’ friends feel the same way as Cras. They’re pretty interested in explosions and giant robot fights, but they’re not going to spend a lot of money on this hobby when they can be out playing League of Legends or buying cheap games on Steam.

In fact, a large majority of North American males would probably fall under the same category as Cras and Co. They love the series and the concept, but wouldn’t be able to dish out $500-600 to pay for this product.

Now allow me to introduce George.

 

George is an Anime fanatic from Japan. He’s 16 years old, likes to hang out with his friends from school, and tutors Economics part time. His favorite flavor is vanilla, and just so happens to love the series Tengen Toppa Gurren Lagann.

 

George’s friends also love Tengen Toppa Gurren Lagann, and George is willing to save up money from his part-time job to buy the product. He’ll be so cool!

There are obviously some cultural differences between the two pools of people, effectively making them two separate market segments. The North American market is huge, and has an abundance of products to buy (like phones, cars, games, etc). The Japanese market, conversely, is very small. Consumers in this market also has an abundance of products to buy (phones, cars, games, etc), but the amount of Anime fanatics in this market is dramatically higher than those in North America. This is because Anime is made in Japan, and is more well-known there.

Since there are so many substitutes for Anime (as a hobby) in North America, and the amount of fanatics is statistically very small, the price sensitivity of this market is very elastic. This means that a lot more people will buy a product if it is comparatively cheaper, and a lot less people will buy a product if it is much more expensive (see terrible diagram below).

From this diagram, we see that if a product sold for $600 in the North American market, 10 people (only the most fanatical) would buy it. If the product were priced more reasonably, say $100, a lot more people (100 people!) would buy the product. Feel free to tag on a few extra zeroes in the Quantity axis if you want the diagram to be more realistic.

Let’s say the producer wants to make as much money as possible from the North American market. Let’s see the calculations:

$600 x 10 people = $6,000

$100 x 100 people = $10,000

If the producer wants to maximize profit here, he’s sell the product for $100 in North America. He’d make $4,000 more than pricing the product at $600, and making money is cool.

Now let’s look at the Japanese market.

Anime is made in Japan, and so the product gains more publicity and popularity here. The amount of fanatics is statistically greater per area in this region. The price sensitivity of this market is very inelastic (see shoddy diagram below).

This hastily-drawn diagram with incomplete labels implies that the fanatic-dense population is willing to pay *any* price for the product. Think of a rich Star Wars fan bidding to buy the original Darth Vader light-saber used in the movies. $30,000? $40,000? It doesn’t matter, he’s going to buy it anyways! Here we can see that even if the price dropped by $500, only an extra 100 copies of the product will be sold (because the 100 fanatics were planning the buy the first 100 copies, and the next 100 copies were bought by people who were interested but on a budget).

Here, if the producer wants to make the most money, the calculations would look like this:

$600 x 100 people = $60,000

$100 x 200 people = $20,000

Whoa, man! You’d better price that thing as high as possible in Japan! You’d make a lot more money than trying to sell lots of cheap copies, I tell you. And since Japan is the main market for Anime, the product is priced at $600.

“But, Chris!” you may ask. “Why don’t you do both? Sell the product for $600 in Japan and $100 in North America? you’ll make ALL THE MONEY!”

Well, sorry, but I’m afraid it doesn’t really work that way. Jonathan Clements in his talk about Anime mentions a peculiar phenomenon that occurs when you segment the market this way. I’ll try to explain it in as few words as possible.

Remember George? Well, he has internet. And an American credit card. And Ebay exists. You can guess what happens next.

George is pretty furious to see that his North American counterpart is able to buy the same product he is, for half the price (let’s say North America prices the product at $300 instead of $100 to make up for import costs). So he goes on Ebay and buys 100 copies of the product from North America and imports it BACK into Japan. Being the businessman he is, he sells it to his buddies and classmates for $400 each. Eventually, enough of these reverse-imports occurs so that 80% of the Japanese market can now access the product at the reduced price of $400. From a company perspective, these are the calculations that occur:

Sell product for $600:

$600 x 100 (Japan) + $600 x 10 (NA) = $66,000

Sell product for $100:

$100 x 200 (Japan) + $100 x 100 (NA) = $30,000

Sell product for $600 in Japan, $300 in NA, 80% of Japanese market opts to reverse-import the product from North America:

$600 x 20 (20% of Japan) + $100 x 220 (80% of Japan and all of NA) = $12,000+$22,000 = $34,000

“Uhhh,” says the producer of the product, “I think that I’ll make A LOT MORE MONEY if I sold this product for $600 instead of trying to segment the market.” And he would be right.

And this is why we can’t have nice things. (I’m joking).

Interestingly enough, the Anime industry is an interesting industry because although most of the money is made in Japan, a huge audience pool lies in Europe and North America. Some production companies have noted the untapped market in non-Asian areas, and have produced anime to cater to a more western audience (Cowboy Bebop). Others stick to Japanese-oriented humor (Haiyore!, Joshiraku). And some have decided to produce “good Anime” that fit their own tastes and dont’ conform to any particular norm (Neon Genesis Evangelion).

Next week, I’ll be talking about how such companies market their products for different audiences, and how their efforts have stacked up on the rankings.

Until next time, signing off!

-Chris

Categories
Uncategorized

Disintermediation and the Anime Industry: Evolution is Critical

Today in our eMarketing class, we discussed the concept of disintermediation and Justin Lew brought up the example of Netflix. The fact that Netflix completely revolutionized the way consumers consumed TV and other forms of digital media is not a new topic; the online model has been adopted by a wide range of industries, from books to groceries and everything in between, since the late 90’s/early 2000’s.

Business students often learn that disintermediation is efficient because it “gets rid of the middleman,” saving costs and streamlining the supply chain. But that middleman can also fight fire with fire and find that an online model can help their own business by offering more choices, bundles, or just general convenience (see:  Expedia.ca). By reinventing themselves through disintermediated online models, existing firms and new entrants around the world continue to challenge the conventional model(s) of doing business.

Disintermediation through adopting an online business model can not only provide a firm with competitive advantage, but can make opportunities out of threats and give birth to a whole new niche to target.

Take the streaming Anime industry, for example.

Five years ago, Japanese animation (Anime) was rather hard to obtain in North America and catered to a niche market. Licensing companies made money primarily on the sale of DVD’s or expensive, new Blu-ray technology. This period of time was also in an era when piracy was at a high; consumers of Anime tended to illegally stream or download series because the pricing for a nice product was either too high or the licensing process took too long after a series was released for a fan to buy the official product. The piracy issue became so bad that Funimation and Bandai, two major licensing companies, issued a statement against Crunchyroll, a website which was, at the time, a source for illegal streams of Anime.

Funimation stated that:

The battle against unauthorized distribution of anime is a battle that Funimation cannot fight on its own.  Without proactive and effective copyright policing and enforcement by those that control anime content, sites like this will continue to gain a reputation as outlets for free anime”

Bandai supported the action with the statement:

Bandai Entertainment Inc. will continue to work with other U.S. companies and Japanese licensors to fight against downloading and its negative impact on the US anime industry

These two licensing giants acted swiftly in response to Crunchyroll as it secured a capital investment of $4.5 million USD from venture capital firm Venrock, publicly denouncing the act of supporting a site that streamed unauthorized anime. And for good reason! As owners of the licenses, Bandai and Funimation had good reason to be upset. The market had essentially become a war between the “expensive, slow, but official licensors” and the “quick to update, free, but illegal streamers.” It was a rough time for licensing companies.

Fast forward to 2012, three years into “the future.”

The rampant piracy of anime has hit Bandai Entertainment hard, and Bandai was forced to cease the distribution of new releases, essentially shutting down its future prospects in the Anime industry. And what of Crunchyroll? Crunchyroll became the only site that offered a unique value proposition: paid, online streaming Anime. Crunchyroll essentially became the Netflix of Anime when it hit 100,000 paid subscribers just over a year ago. Bandai, which relied on physical sales of its Anime, had opted out of the seemingly dead end business prospect. But Crunchyroll continued to support the idea of online Anime streaming by selling premium subscriptions that cost between $5-$12 a month. What irony! Not only did the once-illegal streaming company secure a solid stream of revenue, but it was finally able to do what Bandai and Funimation could not: cater to the needs of the casual Anime watcher.

Before Anime could be streamed legally, the only source of legal Anime was either shown rarely on TV or purchased for huge prices. There was a mismatch between Supply and Demand; physical Anime was much too expensive for the casual consumer and, even today, continues to cater to a niche market for a ridiculous price. With the introduction of online Anime streaming, casual Anime watchers finally have the ability to pay a fair amount ($5-$12 per month) to consume Anime with easy access (streaming). This opened up a completely new market to cater to, and Crunchyroll continues to expand its product offering by selling Anime-related merchandise.

Time and time again we marketers are shown that online business models can completely turn a conventional business model on its head. In this blog post I showed that not only can this result in competitive advantage, but can open up the potential to cater to a completely new market. A point I brought up earlier was regarding the mismatch between the Supply and Demand of a typical Anime viewer; I will probably expand on this point in a later blog post.

But, for now, I thank you for reading this post all the way to the end. I’ll see you next time!

Signing off,

Chris

Categories
Uncategorized

COMM 464 – A New Beginning (alt. “Full Circle”)

I started this blog in COMM 101 during my first year at UBC, and here I am as a fourth-year student taking COMM 464. Only a few years ago did I stand in younger shoes, pondering if my decision to enter Business school was the right one. As the years went by and I learned more in my field, I finally feel the confidence to say: “Yes, it was the right choice.”

As a student, I’ve become more analytical and methodological in my work. I’ve grown to appreciate the concoction of forces that make up a Market environment. Not unlike a scientist, I’ve learned to isolate variables, deduce causes for effects, and strike theories for explaining market trends. While others examine the enzymes that denature healthy proteins, I examine the factors that make up a successful brand image. Some statisticians regress lab models; I regress market prices. I find enjoyment in finding insights in a sea of market numbers, much like a scientist would when dissecting the lab data obtained from painstaking hours at a lab.

A poet would write pages about the grace of a river; the flow of water that crashes, flows, and gives life to an ecosystem. Much like I poet, I would draw notice to the power of a Network, where confrontations, friendships, and activities give birth to the virtual community. It doesn’t matter what field you’re studying as long as you stay true to your interests; so long as you can find joy and wonder in what you do, there’s a good chance that you’re in the right place.

Life isn’t a road. It’s a maze. And sometimes you wonder if you’re on the right path. But so long as you’re willing to step forward, you’ll eventually make it out. Sometimes you’ll backtrack or go in circles, but who ever said that the journey would be easy?

So as I end this somewhat nostalgic post, I hope you’ll be willing to follow me as I take on my final year of courses. This post marks the beginning of a series of posts that I will make in COMM 464. I hope you’ll enjoy your stay.

Signing off,

Chris

 

Categories
Uncategorized

A Sober Second Thought

No, I don’t drink alcohol. However, research shows that sleep deprivation is just as bad as alcohol impairment so I have rightly titled this post as the “Sober Second Thought” after copious (11!) hours of sleep.

At any rate, this is a follow-up post on yesterday’s article, Z.

If you do not wish to read the giant wall of text I wrote yesterday, I blame you not. Thankfully, I have enclosed a tl;dr to the dilemma I encountered yesterday:

Problem: How do you compare the scores of competitors in martial arts competitions in different events (separated by age, sex, skill level and style) without re-testing such competitors in similar brackets?

“Answer”: Seeing as each competitor’s score is already a mean score calculated by averaging the scores given by several judges, and given the fact that each event has at least two competitors in it, it should be relatively simple to calculate the Z-scores of each competitor’s score by finding the mean and standard deviation of the scores in each event.

Advantages – The advantage of calculating Z-scores for each competitor’s event score makes it so that we can compare competitors across different age groups, styles and level, based on the performance of other competitors in the same event. The process of calculating Z-scores can easily be automated through Excel as long as you have a working database that can log competitor scores.

Disadvantages – The main roadblock to the Z-Score method is that we cannot assume normal distribution through the Central Limit Theorem for all the events, since not all events have at least 30 competitors in it. In an ideal world each event would be normally distributed, but I’m not going through all this to forego reality and wish for a better scenario; I’m trying to think up some tools to combat problems that I see in the competitive scene (in terms of efficiency, mind you, the current process is still fair and relatively unbiased).

So, what now?

My original hypothesis was to draft a method that would allow me to compare events without bias. However, after some careful thought I have realized that it is not the correct approach to try to remove bias from the individual events, especially for large prizes (Best All-Around, Grand Champion). This is because competitors in the “advanced” divisions deserve to have higher scores on average (9.2, 9.5, 9.7, etc) as opposed to lower scores in the novice and intermediate divisions (6.5….7.444, etc) because they have earned such scores just by being in such a bracket. To sum it up, if you’re teer-tottering and wondering if you belong in an intermediate or advanced division and end up choosing intermediate, you deserve to have a slight disadvantage in going for the grand champion or best all-around trophies, because your mentality would be that you’re “not good enough to compete in the advanced division.” Therefore, my aim to remove bias from the different events is fundamentally flawed. We WANT bias in these events.

So, seriously, what now?

Three thousand words later, you’re probably not surprised at my final conclusion: Nothing.

That’s right, we change nothing.

If the events are already biased towards giving “advanced” competitors an advantage over “intermediate” competitors, then the average scores of such competitors are already reflective of their skill and ranking over other competitors. This means that, in order to find a grand champion/best all-around competitor, all we would have to do is average the competitor’s scores (for BAA) or just choose the highest score (for GC). Besides, if we were to use the Z-Score system, competitors who were in event with very few individuals would have highly variant Z-scores (waaay better than the average or, in a scenario where the competitor is the only one in the division, a Z-Score of 0).

It’s been an interesting experience. I’m sure this will be useful for me in the future. Mostly as a good laugh when I’m 30, or an “oh wow you really are wasting time over the summer” moment when I’m in my mid-20’s. Hurrr.

 

Signing off,

 

Chris

Categories
Uncategorized

Market Research, Society, and You!

Angus Chak raises a very interesting question in his blog post Results of Market Research; he asks as a closing thought “Does market research results changed based on changes in society or does society change based off the decisions of market research?”

Having just finished a Marketing and MIS presentation in the past week, this question really got me thinking. I feel that traditional Marketing is constrained by societal values (i.e. you wouldn’t market ways to cheat on tests) and reacts to trends in society (i.e. everyone thinks that ___ is hot, we have to market ___ more/give it a spin/emphasize values/etc).  However, I feel that the most effective Marketing techniques challenge societal views and attempt to change them. For example, not-for-profit campaigns such as the Canadian Breast Cancer foundation, Kony2012 and similar campaigns aim to alert society to pressing issues. Marketing can also challenge societal views to gain more attention (“EXTREME CARROTS ARE HEALTHY AND AWESOME”).

But, sadly, Marketing can also have negative impacts. Privacy concerns such as those raised in targeted marketing contribute to consumer unease and the ever-present stigma that Marketing is “Profit-driven” and “evil.” To add on to this negative stigma are the abundance of advertisements that have already desensitized and changed modern society through “culture as anaesthesia“.

It is somewhat grim to think that people view Marketing in such a negative fashion.

Few people recognize that the true value of Marketing is to cater to the customer, to raise lasting relationships so that a firm can MORE EFFECTIVELY serve a customer, not simply to raise money. A firm that does nothing but raise money will eventually lose out to a firm that can effective instill enjoyment from their customer base.

 

If only more people were aware of that.

Categories
Uncategorized

Diamonds are Forever (But maybe not your wallet)

Economics and Marketing. Two simple terms that have enraptured me since the beginning of my University career.

Supply and Demand is the reason why goods sell. These concepts derive from consumer behavior and profit-maximizing firms. A fairly simple concept. One that Marketing turns upside down, inside out, and hangs to dry just to laugh at.

The four P’s of Marketing are Price, Product, Promotion and Placing. These, the Marketing Mix, are responsible for the sales of a product. But sometimes the obvious use of these variables are…not so obvious at all. Take a look at Stella’s post on luxury goods and you’ll see what I mean. DeBeers sells diamonds during a recession not as a luxury good, but as a necessity of love, an eternal link between a couple, a symbol of the eternal, a lifetime, your future…

But probably not as a rock.

Marketing has the amazing feature of adding value to almost anything, from a rock (diamonds), to soda pop (see my first post) and even pieces of paper. Yet, I feel that the most fascinating way that a company can create value is by creating a man-made shortage in supply, otherwise known as “limited editionor “luxury” goods. These goods go for miles above the average price for any product, matching the full willingness to pay from a consumer (consumer surplus, begone!). DeBeers and their monopoly on diamonds effectively allows them to control the world’s Supply and manipulate one’s valuation of the good’s price, affecting Demand. Effective marketing leverages this (supposedly natural) phenomenon and allows the company to effectively sell “rocks” for a fortune.

Adding value is always the ultimate goal of Marketing. But sometimes, if we take a step back, we can see how much marketing really affects us. Sean Dales mentions in his blog about how “invasive marketing is BAD” because it is blatant and annoying. I agree with many of his points but I have a different opinion. Blatant and obvious sure is annoying…but wouldn’t a force that acts in the background to influence our decisions be even…creepier?

Categories
Uncategorized

Segmenting, Targeting, Positioning? Is this some sort of game?

Hi there!

Chris here with my third Marketing blog post. Today I’ll be referencing a blog post by David Sirlin, professionnal game designer/balancer. Sirlin is well-known for his involvement in balancing popular games such as the Street Fighter series and for producing fun, BALANCED card games and board games. He is also known for his acclaimed book “Playing to Win” in which he analyzes the different types of gamers and their mentality of gameplay (A most interesting read which you can find online for free here).

As a passive gamer I am not an expert on game design but as an aspiring Marketing student I am highly intrigued at the way in which Sirlin markets his games. Take a look at his blog post here.

Pay attention to the way in which Sirlin describes his games. In particular, I noted the following:

“Yomi is a card game that captures the essence of fighting games such as Street Fighter […] The decks resemble poker decks, and that makes them pretty easy to learn […] The game focuses on the mind-games that happen in high level play in real fighting games, but extracted into a turn-based form so you don’t need any dexterity.”

In this paragraph Sirlin is pitching his card game Yomi to individuals who have often wanted to play high-level fighting games but lacked the dexterity and practice to go competitive. He segments these “passive” gamers into their own segement and actively targets them by positioning his game as one of the MOST balanced card games in the WORLD that can simulate a fighting game (I could go on for ages regarding this point, but I’ll let it rest). Sirlin indirectly (and directly) references other games in his post, further positioning himself by pointing out the weakness of other games and capitalizing on his game’s balance. He also capitalizes on big game names such as Starcraft and Dominion, comparing the advantages of each game with his own. By doing so, not only does Sirlin attract the specific target of geeks who crave balance in game design, but piques the interest of those who play these games and want something fresh.

A few leaving quotes from Sirlin’s post:

On Puzzle Strike:“You build your deck as you play, so it’s the same genre of game as Dominion in case you’ve heard of that, except it’s far more interactive and suited for tournament play

“We have […] leaderboards, ranked and unraked matches, and the ability to save replays and watch other people’s replays. Even League of Legends didn’t launch with that, ha!”

“Those years spent on balancing ensure that you can play them for years and still find them strategically interesting. There’s a growing competitive scene and frequent online tournaments, so join in! (Casual fun is also allowed!)”

Categories
Uncategorized

Comm296 – Blog Post 2: Listen to Your Consumers!

 

Sometimes, listening to your own consumers may give you a good idea of what to expect if you release (or hold off on releasing) a product.

This week in Comm296 we discussed the topic of research and the many methods of gaining primary and secondary information. Research can take place the form of a survey, an experiment or simply a quick browse of secondary sources on the Internet. Yet, often the signals that companies need to pay attention to are right under their noses.

Take a look at the gallery above. How often do you see something like this on YouTube? These are comments I’ve randomly collected from various product suggestions and innovative ideas shared online. Individuals are often quite responsive towards their consumer experiences and some are apt to share their opinions with one another through various means of communications such as online forums or live gatherings. This tendency to rate products is the backbone of various sites such as “gamespot.com” that rate products  varying from video games to food. Listening to such feedback is, in my opinion, just as important as conducting surveys or experiments (and less costly as well!)

Our Marketing textbook mentions the concept of responding to the Marketing Environment (Chapter 4, pp. 145-147). It features several examples of companies responding to negative feedback that begin to cascade and negatively impact a company’s brand. As harmful as these comments may be to the brand, there are often golden pieces of advice and observations that, if properly dealt with, would help a brand solve many problems and may strengthen the consumer-producer relationship.

The consumer is your greatest critic. Listen to what they have to say!

I’m looking at you, Facebook & Co.

signing off,

-Chris

Categories
Uncategorized

COMM296 Blog Post 1 (EDIT)

This is an edit of my first blog post which you can find below.

As overzealous as I am, sometimes I tend to go slightly overboard with my posts. Usually that is OK. But what is not ok is when one omits key details in his/her message. This post is to amend those missed key points in my first post and hopefully provide a more accurate introduction of myself (hopefully following the 300-word guideline for our blogs that I have only just recently discovered).

Hello there! My name is Christopher Lam. I’m taking Marketing because (other than the fact that it is a required course for my program) I love the idea of creating value and sparking hype about products and innovative ideas. Some Marketing experience I have include working as an intern at REV, a Vancouver-based developer of clean electric vehicle and energy grid technologies; I did some general market research and analysis to aid the firm in their endeavors.

As you can tell from my previous post, I am a fan of anime and the Marketing tactics used in, and are generated as a result of, consumer interest in Anime and related hobbies. I also like to follow the various marketing strategies (which are really quite absurd) in collectible trading card games such as Yu-Gi-Oh! and various other games. I tend to go overboard when I get excited about these things, but you probably already noticed by now.

I hope this post served as a suitable introduction to myself; if anyone from my Comm296 class happens to read this, I’d like to give them (you?) a giant HELLO! and a virtual hug.

signing off,

-Chris

Huzzah! I meet the 300-word limit this time around!

Categories
Uncategorized

Marketing: Accidental Value Creation at it’s Finest

I love Dr. Pepper.

I really do. It is an incredible drink. I go to great lengths to acquire my Dr. Pepper.

But if you were to ask me why I love Dr. Pepper my answer may or may not surprise you (depending on how well you know me).

To answer this question I must first supply some background information.

A few months ago I watched Steins;Gate, an amazing science-fiction anime about a group of self-proclaimed scientists who create a time machine and are on the run from SERN, an organization that wishes to create a dystopia using time travel technology. The amount of enjoyment that I gained from watching this anime is comparable to X, where X=Your favorite hobby/tv show/celebrity/etc. This show was that awesome.

Now that I’ve provided you with some background information, please take a look at the following links:

YouTube Preview Image YouTube Preview Image

These clips speak for themselves. I don’t know whether or not the company was paid to mention Dr. Pepper in their anime but you can clearly see that Dr. Pepper is highly acclaimed by the characters in this show, often referred to as a “drink for the Chosen Ones” or an “intellectual” drink. It was not too long after watching this series that I had my very first Dr. Pepper and fell in love with it (but was it due to the taste or the intellectual stimulus it may or may not boast? That is the real question).

Ever since that day I have had Dr. Pepper as often as possible. Dr. Pepper with any takeout meal. Dr. Pepper at parties. Dr. Pepper with my friends. Dr. Pepper by myself. Dr. Pepper. You get the point.

You will probably induce by now the direction of this post. Just by mentioning Dr. Pepper in an anime that I love, Steins;Gate boosted my consumption of Dr. Pepper over its various cola substitutes by a great deal, a lot more than any commercial Dr. Pepper could ever come up with individually.

And I’m not the only one who acts this way.

This article addresses the rising sales of Dr. Pepper in Japan. Dr. Pepper was never a popular drink, but is now starting to sell out in vending machines. Years of marketing tactics proved futile to boost the sales of Dr. Pepper, but suddenly the drink became popular after the release of Steins;Gate.

This gives way to a phenomenon I like to call “accidental value creation.” There is probably more specific, scientific term for this effect but until someone coins it and sticks it in my marketing textbook I will continue to refer to this as “accidental value creation.”

If I have not caught your attention by now or if you refuse to believe the power of accidental value creation, take a look at this article.

K-ON is an anime about four schoolgirls that form a high school rock band. This simple plot grew into a phenomenon, and the anime’s success fostered a giant effect on the music industry in the form of guitar sales: a whopping 800% increase in sales for the guitar models featured in the anime.

An 800% increase in sales, and the makers of the guitar didn’t have to raise a finger. This is the power of accidental value creation.

It is because of these quirky effects that I love Marketing. It’s never as straightforward as it seem. There is no standard way to market something that will guarantee an increase in sales, yet sometimes the most trivial things can cause an uproaringly large effect on consumer decision making. Throughout my blogs this semester I will attempt to identify certain quirky modes of marketing that pique my interest and review their causes and effects.

Look out for my next entries where I tackle the concepts of targetting using examples from [C] and marketing tactics using examples from the big guy himself: Konami.

Not sure what [C] is? Don’t know why I refer to Konami as “the big guy”? Tune in for my future blog posts to find out.

The first comm296 blog post is complete.

Signing off,

-Chris

Spam prevention powered by Akismet