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Sustaining Greatness in Gaming – Part 1

Firms exist to create and sustain competitive advantage

Firms exist to create great products and services. Customers will pay for said product/service, and business owners profit so that they can spend their money on great products and services. And that is how the world goes ’round.

But what, exactly, makes a great product?

A great product is anything that is perceived to be attractive by the target market. That is all. If children love your board game, it’s a great board game. If avid knitters love the texture of your knitting thread, you have great thread. If a scientist is able to advance his work through your series of PCR thermal cycler, you have a great…well, thermal cycler.

But what happens when your product isn’t perceived by *all* of your target market to be as awesome as you’d like it to be?

Artists and indie game designers rarely unanimously agree on their thoughts of an “excellent game” or “beautiful work of art.” Each and every one of us have varying opinions, and it’s only natural that these opinions conflict with others. This basis is the source of my ongoing respect for artists and game designers: the less well-known your product is, the more degrees of freedom you’ll have to work with. You don’t have to cater to the masses’ cravings for explosions and violence if you have a beautiful story. You don’t have to use high-definition graphics to convey the emotions of an 8-bit character. And because you don’t have to cater to the masses, you can do whatever you want. You’re limited only to your ideas, and those are endless.

But, if your idea is beautiful, chances are that someone else will agree with you.

And that idea will explode.

We can look at a huge variety of indie games that have made it big. Let’s focus on FTL: Faster Than Light, a RTS game created by Subset Games.

Source: Wikipedia

FTL is a wonderful game with hours upon hours of replay value. Replay value is, in my opinion, very indicative of a game’s success. It means that the gamer is willing to spend more time on your game, and that is (almost) always a good sign. Unless a gamer is constantly frustrated going forward, many hours spent on a game is indicative of a flow state of mind, which is basically that feeling you get when you’re completely immersed in completing a task (cleaning a room, dancing at a party, playing games or writing an interesting blog post(hah!)).

Long story short: FTL is a great product and many people recognize that.

Great products don’t mean anything unless people know about it

Back in the day, when you needed to visit a good restaurant you’d have three options to help choose where you’d dine:

1) Which restaurants are close, and how much do they charge?

2) Which restaurant does my foodie friend Fred recommend?

3) Which restaurant’s advertisements seem appealing?

Essentially, your decision is based on convenience, recommendation, and other appealing factors.

In this day and age, you’d probably look up prospective restaurants using Google and read online reviews. Or you’d tweet #hungry and your foodie friends would tweet back #tryChung’sChineseFood. Or you’d receive a groupon for 50% off at a nearby sushi restaurant. The internet, and social media, is essentially supercharging the exposure of great products/services, and damaging the genuinely bad products/services.

So how do indie games fit in?

FTL: Faster Than Light won many awards when it first came out, due to its grueling difficulty and interesting mechanics. But That would appeal to a gamer’s valuation of the game. But the most important factor for indie games is probably the gaming community itself. A positive recommendation, passed on from one user to another, has the potential to go viral and reach insane levels of exposure. This is the concept of a meme: a piece of cultural data that is passed along from person to person until it has gone “viral.”

YouTube Preview Image

It was only a matter of time before I talked about viral videos.

Okay, so FTL never went “viral.” But it did get very popular, and its release in Humble Bundle 9 only increased its popularity.

So you have the two parts to a successful product: A great product that appeals to its target market, and the exposure it needs to get out there and rock.

But, there is a missing piece.

And I will discuss that critical piece in my next blog post.

Momentarily signing off,

Chris

 

 

 

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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

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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

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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

 

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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

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Everything other than School

Z

Context and tl;dr – I spent two hours writing an “essay” for a topic that I felt that was interesting and not for academic purposes, but ended up realizing that a fundamental assumption was flawed. It’s still an interesting topic nonetheless and I might go back to finish the job since I can probably work my way around the flawed assumption. At the very least, I had quite a bit of fun writing this. This was probably more productive than the time I tried to write an excel spreadsheet that could solve Sudoku’s using Solver (I know it can be done! I just need to fiddle around with it some more!)

I apologize for the poor formatting and limited editing of this spur-of-the-moment article.

 

Z-Scores and Solver: How Business School has changed the way I think

 

When I was still a high school student taking the International Baccalaureate (IB) program, I wrote an essay on the Martial Arts and how difficult it was to quantify “good” and “bad” art (for the record, I was writing a TOK essay). I argued that although certain moves were easy to quantify (i.e. “the amount of spins on a tornado kick”) a Wushu form was difficult, if not impossible, to grade using quantitative means.

Now, several years later in the midst of my University career, I still carry a passion for the Martial Arts. However, I am not merely a competitor in the sport but also an event organizer and assistant director of an upcoming martial arts tournament, the 32nd International Can-Am Martial Arts tournament. Oh boy, if only I could go back in time and give my old “me” a quick talk.

Contrary to my arguments in my high school essay, martial arts forms are commonly graded quantitatively by judges. These scores are produced when several judges (commonly 3-4) observe the performances of various competitors and grade each one. These scores are then averaged, and the competitor with the highest score is awarded a gold medal (followed by a silver medal, bronze, etc). How does this work? Well, there are four judges and by averaging the scores of the combined judges we can have a more “accurate” quantitative number to judge the competitors by. Of course, these “numbers” are arbitrary; they serve only to measure a competitor’s performance against someone else in the same bracket. We certainly cannot compare a performance of an 18-year old martial artist to that of a 3-year old, or grade a performance with a quantitative number that would be universally recognized (unless that score was between 1 and 7 ;D).  In fact, it is a urban tale that the first competitor will almost always be given a relatively “low” score so that the judges can grade future competitors higher if they are more impressive than the first (that is not to say that the first competitor will never place first, it just means that you’ll seldom see a superbly high score of, say, 9.98 on the first competitor so that the judges will have room to work with. Judges rarely give out 9.98 as a score at all).

I am rambling on and on about the process of scoring competitors fairly. The point that I’m trying to make is that scoring can be quantitative, but only when placed side by side with a performance with the same bracket.

Now on to the main topic.

^You see this formatting right here? I would never do that in an academic essay. Pfffft.

Today I attended yet another meeting for the upcoming tournament which I am volunteering for. Today we were presented with an interesting problem. That problem is the inspiration for my sudden urge to write a giant article about martial arts, scoring, analytical statistics, and Excel.

The problem is: How do we fairly award the “Best All-Around” and “Grand Champion” trophies to the competitors that deserve it, WITHOUT having the top competitors compete again, and WITHOUT bias on the part of judging.

Some context is needed here.

Every year our tournament hosts a rather large subcategory of competition events under the Wushu category. These range from hand forms and short weapons to flexible and long weapons. Each of these categories are subdivided into beginner, intermediate and advanced categories. Each of these categories are further divided into age categories (14-, 16-17, 18+, etc.). Each of THESE categories are even FURTHER subdivided into male and female categories. With all these categories, the Can-Am boasts over 800 events. That’s a huge number! Each event is awarded a gold medal, silver medal and bronze medal winner. And on top of that, we have large awards known as “Best All-Around” and “Grand Champion” awards. And this is where the problem starts.

The Best All-Around trophy exists to recognize the competitor with the best accumulated scores in a variety of Wushu forms. In previous years, a competitor would have to compete in five different events in order to quality for this prestigious prize (hand form, short weapon form, long weapon form, flexible weapon form, and an optional form). This award was pretty easy to designate to the deserved competitor in each year because, well, not many people can do that many forms in a day without keeling over and dying (or: not many people competed in 5 events). However, in recent years we have lowered the criteria for this award so that eligible competitors need only to compete in three events to qualify (hand form, short weapon form, and long weapon form). Although this means that competition for this prize would increase, we overshot our expectations and found that WAY TOO MANY competitors were eligible for this award, making it very difficult for judges to identify the competitor who truly deserved this award. On top of that, we have so many events! It is also common knowledge that people in the “advanced” category gain exactly one more “point” than those in the “intermediate” category, and the same goes for the “beginner” category (For example, competitors in the “advanced” category typically receive between 8.0-9.0 or 9.0-9.9 depending on the event, whereas competitors in the “intermediate” category of the same event typically receive between 7.0-8.0). Knowing this, competitors who compete in three “advanced” events will almost always beat the accumulated average of competitors who only compete in “intermediate” events. Is this really fair? Will the “Best All-Around” champion always be the one who competes in “advanced” categories? What if he’s the only competitor in that category, making it easier to gain a better score than if he was to compete with, say, ten more competitors? Does that make this situation a Simpson’s Paradox? Will I ever stop asking rhetorical questions?

And there is yet another problem: the Grand Champion trophy. This trophy is awarded to the competitor with the best score. This trophy is meant to be given to an individual who may not excel at a wide range of forms, but is astronomically amazing in his speciality. You may already have questions. Chris! How do you determine the “best score”? Didn’t you just say that there were hundreds of categories? How do you compare a specialist in a long weapon like Spear to a specialist in a short weapon like Straightsword? Isn’t that, well, form-ist? You form-ist person!

Well, of course, we had a system to determine the Grand Champion winner. It was quite simple: the receivers of a gold medal in an “advanced” event were eligible to compete, if they wish, for the Grand Championship trophy. All eligible competitors would then gather at the end of the day and present their forms again, one by one, in front of a strict panel of judges who would then announce the winner of the tournament.

Note the phrase that eligible competitors could compete for the grand prize “if they wish.” Now, why would a competitor NOT want a run for the great granddaddy of all tournament prizes? Two simple reasons: One, it is typically easy to tell if someone is miles above you in skill level, so some competitors wouldn’t want to waste their time vying for an award they know they won’t get (sorry for the harshness). Second, and more realistically, THEY’RE TIRED.

The flaw of the Grand Champion trophy is that you have to go through every single event in order to produce all the eligible contestants. And, in such a huge tournament, that takes time. Lots of time. This means that a competitor that competed at noon would have to wait ten hours or more in order to compete for this little trinket. No thank-you, da-yo. Besides, if you already gave your all in your event early on in the day, waiting ten hours to compete again with the same form is crippling to the competitor. This process is inefficient, and is slightly unfair to those competitors who have to compete in more than one event.

Although this system is somewhat redundant and ugly, for 31 years this system has seldom run into problems and has been tried and true. Why? Because the winners were almost always fairly obvious. Fortunately, every year there would be few Best All-Around entries to choose from, and recognizing the most prominent competitor was always easy (this guy beat everyone else by a landslide in all 5 events!). The Grand Champions were, realistically, fair because the eligible athletes were fairly graded by all the judges. So, in theory, these processes do work.

But.

This protocol is not very efficient under high capacity.

Over the years the Can-Am tournament has grown steadily from the small “West-Coast Championships” it once was, to the “International Can-Am Martial Arts Championships” it is now. More and more competitors are flocking to this tournament, and the martial arts community is only increasing in size. If we relax the criteria for Best All-Around, it will become difficult to spot the athlete that is truly “best all-around.” And of course, the more competitors there are the longer the tournament takes, which means that the Grand Championship competition will probably take place even later than before. In theory, these practices are still viable and can be used to host a decent tournament. But what if we have too many powerful competitors? What if the winner isn’t so clear? What if we run out of time for the Grand Championship? What do we do? What SHOULD we do?

It’s simple. We kill the Batman limit the eligibility of the competitors. That is the easiest way to ensure efficiency in a tournament environment. Just make the criteria harder to achieve, and then we can shake off all the ineligible competitors.

But that’s not what I want.

Regardless, what I want does not necessarily dictate to what should be done. But my opinion stands that I believe that anyone, any competitor, should be eligible for the Best All-Around and Grand Champion trophies. Although it may be slightly counter-intuitive that a “BEST” all-around and grand “CHAMPION” awards should not be awarded only to those in “advanced” weapons forms, we must keep in mind that there are many, many variables apart from mere qualitative categories like “advanced” or “intermediate.” These categories include age, form style, and maybe even sex (if you’re sexist, but I’m not). What I’m trying to say is that if you have an award that is restricted to only “advanced” competitors, you’re biasing that award to competitors that have more experience (say, a competitor that is 18 years old as opposed to a 13-year old that is in the advanced category because he arbitrarily chose that category when he signed up). Likewise, if you have an age-restricted award (say, a grand championship award limited to ages 14 and under, or 18 and over) you’re neglecting the fact that these competitors are all competing in different styles of martial art. Basically, if you only base the award on one variable, you’re ignoring the rest of the variables. And that creates some sort of bias.

Now, usually this isn’t a problem. Large trophies are almost always given out correctly because judges usually rule the best competitor, and their word is final. But for the sake of efficiency, fairness, and stability of the competitive scene I must suggest something else.

My goodness, it’s been 2000 words in and I’m finally talking about the concepts stated in the title of this work. This a terrible “essay” and I should feel terrible.

At any rate, recall the very, very beginning of this article when I mentioned that Wushu as a sport can only be quantitatively described if competitors are compared with others in the same category. This means that each “category,” no matter how different the individual athletes are, is a group with a common variable. If subdivided correctly, such a group would include all the “important” variables such as age, sex, style, experience, you name it, and it could have it. Another important aspect would be that such a group MUST have at least two individuals otherwise it would not be a group.

Now, given the fact that we have one category with at least two different individuals in it, we can derive some average or “mean” from the quantitative scores of these individuals. From this, we can easily deduce the standard deviation of this set of numbers, and from that we can derive the Z-score of each individual in their specific category (given that X is a measurement variable having a normal distribution). Coincidentally, many of the most popular events have 20+ individuals, nearing 30 individuals with which we can assume the Central Limit Theorem…

At this point I realized that the Central Limit Theorem could not be applied to many of the less popular events, which typically had less than 30 people in it. This means that normal distribution cannot be assumed, which meant that Z-Scores are pretty much useless in such a situation. In an ideal world where normal distribution could be assumed, I would have wanted to take the Z-Scores of each event so that I could compare them with each other without bias; I would have wanted to figure out some easy way to do this, and then automate the process using Excel and Solver. In theory, it should not be too difficult to write a spreadsheet that could easily chug out Z-Scores for each event which I could then compare with, making Best All-Around and Grand Champion a much easier task to undergo (and less biased, as well!).

I very disappoint. But mostly because I’m too tired to continue typing a non-academic essay this late in the night.

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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.

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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?

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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!)”

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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

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