Market segmentation is the main mechanism that companies use to target their consumers in an effective manner in order to generate more sales. Firms have been using segmentation by demographics, product categories, etc. for many years, seeing it as the best way to profile their consumers. However, Clayton Christensen, a Harvard Business School professor, argues that this method is quite ineffective.

Christensen argues that there is a difference between something that causes a decision and correlates with a decision. He provided an example, stating that “the fact that you’re 18 to 35 years old with a college degree does not cause you to buy a product, […] It may be correlated with the decision, but it doesn’t cause it.” He later argued that firms need to “crawl into the skin of your (their) consumer” in order to effectively market their products, and continually ask themselves why a consumer made a certain decision over another.

Why would consumers choose a certain product or brand over another at a certain point in time of the day? In relation to my blog post responding to Sharon’s blog post on music streaming platforms, consumers may choose a certain platform over another depending on their mood, whether they want to listen to a playlist while studying or search for music to purchase. The moods and the decisions that consumers make are what companies need to analyze and consider in their marketing.

It was interesting to see Christensen’s point of view on this situation. I was also quite intrigued by the article and the situation it provided with Christensen’s fellow researcher’s and their milkshake situation, along with the fact that 95% of new consumer products fail.

Sources:

Like Sharon, I too like to stream music daily. Whether its through Youtube, 8tracks, Soundcloud, Spotify, or any other music streaming platform, finding and listening to songs is a part of my everyday activity. Often when I listen to music, I think of how different it was many years ago, and not at very advanced stages.

Sharon touched on how Spotify has been seen as the leader in the music steaming service for several years now. This is undoubtedly true, as I find many of my friends using Spotify. What it has, many other music services lack, old and new. With its sleek aesthetic design, ease of use and ability to share songs and playlists, Spotify creates a service that is unmatched by any of its competitors.

It was interesting to see how Sharon’s stance on how CD’s and Albums (such as those that iTunes provides) were being challenged by the “freemium business model” of Spotify and various other music streaming platforms. Despite the inter-competition that these freemium platforms face between themselves, their main concern is still fighting off the CD and Album market.

I personally fear a time where CD’s will no longer be in existence and record players will be a thing of distant memory. Where all we will have as consumers will be these streaming platforms, without any physical aspect to the music that brings us joy.

Sources:

Phone showing list of music streamers. Digital image. Pocket-lint. N.p., n.d. Web. 6 Nov. 2014. <http://cdn.pocket-lint.com/r/s/628x/assets/images/phpoognv4.jpg>.

Spotify New Design 2014 Overview. Digital image. Amazonaws.com. Amazon, n.d. Web. 6 Nov. 2014. <http://s3.amazonaws.com/digitaltrends-uploads-prod/2014/04/spotify-new-design-2014-overview.jpg>.

Grace Liu argues that Apple should reposition their sales or decrease the price of their iPad’s if they want to maintain their dominance in the technological market. I believe that Grace makes a very valid point in her analysis of Apple’s current methods.

Apple has for a very long time continued to branch off of a creation made many years ago. This isn’t a terrible strategy, Samsung is doing it with their Galaxy models and Google has been doing it with their Nexus phones.The thing with Apple though is that they have various generations and various forms of these products. A basic iPad with 3-4 generations has led to an iPad Air and an iPad Mini. This isn’t to say that their strategies are wrong, and neither is it to claim that its unsuccessful, its very successful. However there comes a point where products eventually reach their dog days, and new innovations must arise.

Apple can continue to use brand extension and product-line strategies in order to expand the lifespan of their products, like they did with the iPhone. However, consumers will eventually continue to realize that they’re essentially paying the same price for a good that is practically the same as its predecessor. To some Apple fans, the extra S or C makes the worlds difference.

I have many Apple products myself, the iPhone, the Nano and the MacBook. But eventually, when the new Nano or the new iPhone came out, I disregarded it. Because as a consumer, I’m not willing to pay a premium for a product that isn’t miles away more advanced than what came before it.

Sources:

Launching new iPads is not the best way to promote sales

Apples Devices. Digital image. Cdn.phys.org. N.p., n.d. Web. 6 Nov. 2014. <http://cdn.phys.org/newman/gfx/news/hires/2014/applesdevice.jpg>.

China Denies Government Ban on Apple Products. Digital image.Pakdigg.com. N.p., n.d. Web. 6 Nov. 2014. <http://pakdigg.com/wp-content/uploads/2014/08/CHINA-DENIES-GOVERNMANT-BAN-ON-APPLE-PRODUCTS.jpg>.

Bootstrap. Digital image. Colorlabs. N.p., n.d. Web. 5 Nov. 2014. <http://colorlabs.lemuel.netdna-cdn.com/wp-content/uploads/2014/01/bootstrap-guest-post-helga.png>.

Bootstrap your startup. No, I don’t mean get Bootstrap, a technological framework for developing your first projects on the web. Neither do I mean Boostrap Bill from Pirates of the Caribbean. Bootsrapping is a business concept which involves starting your own company up, from scratch, using your own funds or those you obtain from your startup. Entrepreneurs would be most interested by this concept of bootstrapping. However daunting it may seem, Forbes actually encourages the idea of bootstrap.

Forbes described the three main reasons for bootstrapping to be focus, purpose and iteration.

With focus, Forbes argued that CEO’s would be able to place most of their attention on creating value for their customers rather than “pitch, pitching, and improving their pitch.” I believe that this is a very relative argument, as many CEO’s of startup’s would be aiming to raise funds instead of actually placing their attention into how the company could better serve its consumers. In some cases, the funds are necessary in order to do so. Purpose relates to the fact that there will come a time when there are more and more shareholders within a company, and the true company culture may begin to become diluted as ownership does. Finally, iteration does not have as much of an effect on startups that bootstrap, as they are “more effective at making constant course corrections” primarily due to the fact that they are not politically and financially caught up with various shareholders.

I personally believe that all entrepreneurs should strive to boostrap, and feel that Forbes hits it on the nail with their evaluation of Boostrapping.

Sources:

Weber, Derek. “Why You Should Bootstrap Your Company.” Forbes. Forbes Magazine, 27 Jan. 2014. Web. 06 Nov. 2014.

Twitter received a huge amount of attention around their time towards going public. Leonard, Katherine. Twitter IPO. Digital image. Lonelybrand.com. N.p., 13 Sept. 2013. Web. 2 Nov. 2014. <http://lonelybrand.com/blog/wp-content/uploads/2013/09/Twitter-IPO.jpg>.

I remember sitting on my bed a couple of months ago, eagerly flipping through the channels on the TV. I came by one which I almost flashed past, pressing on the channel key with great pressure. CNN was reporting on Twitter’s recent IPO. There were two things that surprised and confused me about this news story. I had no clue what an IPO was, and after I found out, I was puzzled as to why a firm as huge as Twitter had not gone public already. There is no doubt that private companies are also highly influential and large. It took my by great surprise.

There were mixed opinions about Twitters move towards going public. Many think Twitter made the right choice and is doing well, while others believe that Twitters has failed with its IPO.

Nevertheless, it was very interesting to learn about how companies came public, and learn about the various advantages and disadvantages of doing so. More so, it was interesting to see how there were so many companies I knew and used that did. Square, a firm that I actually wrote one of my blogposts on, is also thinking about an IPO and going public.

Sources:

Canada’s First Nations. A group of Canada’s First Nation’s people’s. Digital image. First Nations. N.p., n.d. Web. 6 Oct. 2014. <http://www.firstnations.eu/img/01-0-chiefs-b.jpg>.

The First Nations peoples of Canada are held in high regard within B.C., at least from the eyes of a UBC student thus far. My perception of this view, however, is being challenged. Although several hundreds of thousands of people within B.C. may still hold such respect, it seems as though some businesses are willing to place their corporate interests ahead of cultural and historical integrity.

B.C. Hydro’s plan to build a hydroelectric dam, one that “would flood 83 kilometers of the Peace River Valley …, destroying farmland and wildlife habitat”, is an example of such motivations. Furthermore, some people are going as far as paying off certain chieftains in order to abandon legal interests in certain land claims made.

Based on the PEST analysis, the external impact First Nations People’s can be directly linked to both the Political and Social category. In the case of B.C. hydro, my analysis shows that there’s a political impact on the business due to the close relation between the government and the First Nations People’s (who are the ones impacted). Socially, B.C. Hydro has to deal with their public image after having the news of them wanting to flood 83 kilometers of a historic valley go public.

Sources:

First Nations. “Indian Land.” First Nations. N.p., n.d. Web. 07 Oct. 2014. <http://www.firstnations.eu/indian_land.htm>.

O’Neil, Peter. “First Nation Chiefs to Stage Site C Showdown.”Www.vancouversun.com. The Vancouver Sun, 18 Sept. 2014. Web. 05 Oct. 2014. <http://www.vancouversun.com/news/First%2BNation%2Bchiefs%2Bstage%2BSite%2Bshowdown/10215965/story.html>.

Hopper, Tristin. “First Nation Members Suing Chief Who Received $800,000 Bonus for Abandoning Aboriginal Land Claim.”Www.nationalpost.com. The National Post, 6 Oct. 2014. Web. 7 Oct. 2014. <http://news.nationalpost.com/2014/10/06/first-nation-members-suing-chief-who-received-800000-bonus-for-abandoning-aboriginal-land-claim/>. 

Market Research Mind Map. IRC. Market Research Map. Digital image. IRC. IRC-Group, n.d. Web. 29 Sept. 2014. <http://www.irc-group.org/images/150.jpg>.

Having finished preparation for class 9, I noticed a topic in the preparation links that struck me. Marketing has always been one of my two favourite business functions, with the other being finance. I generated a love for marketing while studying Business and Management at the higher level for the IB. The idea of advertising and identifying consumers’ tastes and preferences in order to successfully grab their interests and get them to make a decision to purchase the product all seemed very appealing. I knew that market research played a pivotal role in marketing, but how important was it exactly?

According to Greenbook, BrainJuicer, a “full-service market research consultancy, was the most innovative company in market research in 2013. Despite being a market research consultancy, BrainJuicer is able to generate interest from other companies and research for them, because they realize that it is the foundation of marketing. Forbes described JetBlue as a company that performed market analysis effectively. JetBlue “determined that airline passengers cared more about comfortable leather seating and TV entertainment” than other amenities, and as such invested much of their finances into improving on those. “The strategy campaign was so successful that other airlines soon followed.”

Market research is an undoubtedly crucial part in effective market performance, and can be particularly decisive when starting up a company.

Sources:

Greenbook. “BrainJuicer.” Greenbook. GreenBook, The Guide for Buyers of Marketing Research., n.d. Web. 30 Sept. 2014.

Importance of Marketing Research (2014). From Marketing Research Tutorial. KnowThis.com. Retrieved September 30, 2014 from http://www.knowthis.com/marketing-research/importance-of-marketing-research.

Murphy, Leonard. “The 10 Most Innovative Companies In Market Research (A GRIT 2013 Sneak Peek).” Greenbook. Greenbook, 2 Jan. 2014. Web. 30 Sept. 2014.

O’Connor, Shawn. “Step 3 for a Successful Startup: The Importance of Market Research.” Forbes. Forbes Magazine, 23 Apr. 2013. Web. 30 Sept. 2014.

Square Credit Card Payment System in Use. Heater, Brian. “Apple Stores Stocking Square Credit Card Readers.” Engadget. Engadet, 21 Apr. 2011. Web. 25 Sept. 2014. <http://www.engadget.com/2011/04/21/apple-stores-stocking-square-credit-card-readers/>.

Having just completed the group assignment, I was caught by something of extreme interest. The business model canvas served as the catalyst to my expanded interest in learning how business work. I was particularly intrigued by value propositions, as I always tend to think in a more entrepreneurial and innovative stand-point when it comes to looking at various businesses. Thus, for this blog post, I decided to look at the 10 value propositions I wish I had, many of which, ironically, I already had. However, there was one value proposition of the few that caught my eye. This firm was Square.

Square is essentially a firm that focuses on the financial aspects of commerce, and allows individuals to purchase goods and services using offline debit and credit cards through their phones and tablets. Square is a company that is becoming quite successful due to their innovative idea. Value propositions are so important for a business in terms of having a solid foundation for marketing and a USP. They allow firms to remain ahead of the competition and provide a large amount of revenue.

It was exceedingly interesting to view the different firms and learn of how far entrepreneurship and innovation has come in just a few years. With further advancements in technology and developments in efficiency and productivity, we are sure to see further unique value propositions that satisfy our daily needs and wants.

Works Cited:

Olympus 2011 Financial Stock Chart. Digital image. Petapixel.com. N.p., n.d. Web. 16 Sept. 2014. <http://petapixel.com/assets/uploads/2011/11/olympus_mini1.jpg>.

Financial statement fraud is a scathing issue that has surrounded the financial world for several years. Having just finished my class 5 preparation and test, the idea of financial statement fraud lingered in my head. How is it that firms see any long term benefit in falsifying their records? Why have we become a human race that insists on focusing all efforts into short term benefits? Financial statement fraud harms many, if not all, of the stakeholders involved and associated with the firms’ actions, and is the epitome of the word unethical.

Olympus, one of the many firms that participated in the “deliberate misinterpretation of their financial condition“, has been sued for a sum of $273 million for committing 13 years of financial fraud. It seems as if the same actions committed by Enron, Xerox, and many other firms continue to be ignored. The CGA described three main factors which contributed to financial fraud, which includes situational pressure, a perceived opportunity, and a means of rationalization.

Companies begin to lose trust in each other, worsening the business environment. Employees begin to doubt the promises made by their superiors, creating anxiety amongst workers. Banks begin to place more strict regulations on credits, making it more difficult for honest companies to borrow. Enterprises such as Olympus need to stop thinking of the short term gains and start thinking about the long term benefits for society, because in all odds, the short term gains made by the fraud will almost fully be counteracted by the lawsuits and loss of trust inherited by the company.

Main Sources:

Langeland, Terje. “Olympus Sued for $273 Million After 13-Year Fraud.” Bloomberg.com. Bloomberg, 8 Apr. 2014. Web. 16 Sept. 2014.
Coenen, Tracy L. “The Wide-Reaching Impact of Financial Statement Fraud.” Sequence Inc Forensic Accounting. Sequence Incorporated, n.d. Web. 16 Sept. 2014.