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I came across a classmate’s (Ginny Lo’s) blog regarding Nike’s advertisement failure. Ginny mentioned that a grammatical error in their promotion campaign would be embarrassing for a large-scale company such as Nike. I absolutely agree, but more importantly, it is a waste of capital investment. Many advertisements released by the company require numerous employees from all departments getting involved and planning in order to launch a successful campaign that grabs consumers’ attention and persuades/lures them to shop knowing everything in a store is 50% off. We learned in marketing class that not only is it costing the company enormous amounts of money but time is on the line as they need to determine when it would be a reasonable time to launch the promotion. In this particular case, the misspelling of the word “entire” is costly in that all stores across Canada may have used capital and resources to print a misspelt ad but it is relatively small when comparing it to a theoretical situation where Nike could have paid enormous amounts of money for airtime during the Superbowl only to make an embarrassing mistake on national television where people would have observed more the misprint of the advertisement rather than the message Nike is trying to get across. These are large investments that companies work towards each year and if the opportunity is lost, then the business may end up going to major competitors.

Below I provided some embarrassing mistakes that companies and local businesses have made. Despite the fact these mistakes are embarrassing, what is more at stake is that it is a waste of time and capital as it does not deliver the message the marketer intended it to, resulting in inefficient marketing as it leaves consumers confused and scratching their heads.

In this situation, as a consumer I would be hesitant about calling in as I would not be sure if this place takes photos of human or animals.

Instead of a period, this company decided to accidentally replace it with a comma, making their Lennox Air Conditioning Central unit to cost $5.5 million dollars. I would not be surprised if not a single consumer called in to learn more about their air conditioning units for sale.

The ad says to add Blackberry Cobbler or Key Lime Pie to meat. What purpose does that serve? As a consumer I might think that is very strange and move on to the other deserts.

The speakgoggle G33 Intercom created by Buhel is an innovative and unique product that enables the user to stay connected at all times. Not only can the goggles connect to your cellphone over bluetooth to make calls but it can play music and connect the user to multiple speakgoggle users who are 500m away. In regards to Buhel’s marketing strategy, it is clear that they focused on multiple segments:

• Geographic Segmentation: Not only did they target urban areas but also mountainous areas. The product was specifically designed to help people stay connected not only at work but also out in the mountains where individuals enjoy leisure time outdoors. The product can function at extreme conditions (between -30 degrees and -45 degrees).
• Demographic Segmentation: The Speakgoggle targets both males and females. The product is affordable for the average middle class family which increases its divisibility (affordable pricing enables people to try the product).
• Psychographic Segmentation: This product is geared towards people who have a common lifestyle. The Speakgoggle is best suited for individuals who lead an active lifestyle, who are athletic and enjoy the outdoors. This product suits individuals who have outgoing and adventurous personalities.
• Behavioural Segmentation: Convenience is the primary benefit that comes from this product. Buhel did a fantastic job of recognizing the need for a product that has multiple useful functions all packaged together. The goggles protect the eyes from glare and snow, allow the individual to communicate at any point in time without the hassle of fumbling with your cellphone (reduces chance of damaging and losing the phone), controls music, controls incoming and outgoing calls that are easy to initiate even when skiing down slopes and even allows one to communicate with other fellow skiers (the goggles can interface with six other pairs directly for group conferencing). In addition, the microphone that is integrated in the goggles picks up vibrations when you speak through the facial bone and eliminates noise. The Speakgoggle is the ideal product for those who enjoy their outdoor sports (especially winter sports).

The commercial makes you want to own the product if you are an avid skier looking for convenience. Buhel clearly wanted to show the product in action and reveal an image of what the person looks like when using this sophisticated technology.

I came across a classmate’s blog titled “The Advertising Game App” which I thought was rather fascinating and would like to analyze TimePlay’s ingenious marketing Strategies. I fully agree with my classmate in that TimePlay Inc did a phenomenal job of implementing an innovative technology that allows it to differentiate themselves from the various competitors in the marketplace. One of the most challenging task for any competitor is to create a need-satisfying market offering that no other competitor has experimented with and using the popular blackberry and iphone smartphones that 449 million people own worldwide as the platform is ingenious as it makes this technology easily accessible. TimePlay’s new creation is to be applauded from a marketing perspective for multiple reasons:

There are 4 key aspects to a Marketing Strategy that TimePlay Addressed:

1. Market Segmentation: First of all, TimePlay clearly selected an excellent market segment to focus on. The market consists of numerous types of customers and needs but the marketer needs to decide which segment offer the best opportunities and in this case it proved to be the individuals who frequently watch the latest films at the cinema.
2. Market Targeting: TimePlay has chosen to market to those who watch movies at the theatre and own a smartphone such as an iphone, which is clever as many individuals own a smartphone due to their cutting-edge technology.
3. Positioning: TimePlay is the first to introduce this new technology that is critical in brand positioning as the company will be remembered first in the minds of target customers and later down the road if the company chooses to capitalize on their technology. Positioning is the main reason why consumers will be willing to pay a little more for TimePlay’s brand as oppose to their competitors.
4. Differentiation: I absolutely agree with my classmate in that TimePlay has introduced a new technology that offers value to movie watchers as no other competitor offers the same benefits. As my classmate mentioned, many people (including myself) become restless and irritated by the long commercials shown at the theatres.

The 5 Characteristics TimePlay Possesses which will increase the rate of adoption for their technology:

In addition, TimePlay has relative advantage as this innovation is superior to existing products. It is highly compatibleas all smartphones can easily access this app and in regards to complexity, it is relatively simple to use and understand. It is easy to communicate this technology to friends and family and last but not least, TimePlay nailed divisibility as the app is completely free for anyone that owns a smartphone. Due to all of these reasons, the rate of adoptability is substantially high. Subsequently, this is a technology I personally envision expanding and increasing in popularity in the near future as both my classmate and I recognize phenomenal potential and value in this technology.

* Other marketers trying to enter the market should emulate how TimePlay considered all factors that could affect their technology.

          Jim Estill’s blog, “the power of personal” insinuates that the biggest challenge for any marketer is to get prospects to actually pay attention to what is being sent to them. It’s fascinating to learn that personalizing emails can be 40-90 times more effective! I completely agree with Estill’s emphasis on the effectiveness of personalization when companies solicit potential consumers to introduce a new product or a special promotion. Everyday, we are bombarded by thousands of ads to the point that when we receive unpersonalized emails, we choose to ignore them; as a result, sending generic emails evoke a mere 1-2% response whereas personalized emails significantly increase the probability that consumers will respond because they are interested. Sending personalized emails may be more time consuming; however, it is well worth the time investment of implementing such a marketing strategy that will produce a greater response from the targeted market group.

          Spending the extra effort to send meaningful emails that is tailored to each consumer can foster a long-term customer relationship that may lead to consumer loyalty to a specific brand. As we’ve discussed in class, brand loyalty is imperative in a competitive environment where companies are fighting for limited market share. In my opinion, brand loyalty is critical for most companies, especially start-ups that need a competitive edge based on repeat consumers.

          I noticed that ebay has mastered personalization as they send you timely emails about auction items that are going to expire soon as well as suggesting purchase recommendations. I welcome ebay’s “custom-made” email service that saves me time.

I took a screen shot of an ebay email with their list of recommendations. Ebay does a phenomenal job of introducing goods and services that is of interest to the recipient as the items on the suggested list were taken from my past searches. When’s the last time you received a personalized email? It’s subtle but effective as more companies are using personalization to gain a competitive advantage.

Some videos on personalized marketing that I found insightful!

New York Attorney General Andrew Cuomo discovered the unethical practices of the student loan industry. It has been confirmed that the lenders “determine eligibility for private loans based in large part on the college students attend rather than individuals’ credit worthiness.” In recent years, the student loan industry has reaped in an astounding profit of $85 billion dollars annually. Not to mention that some of these private lenders are controlling 20% of the student loan market and this statistic may continue to grow in the near future.To flip an enormous profit, these companies loan students large amounts of money which they are legally obligated to pay back after graduation with high interest rates added on, leaving them further in debt. The student loan industry normally gives a 6-month grace period after graduation for students to secure jobs; however, after the 6-month grace period, interest rates begin to escalate. On average, statistics reveal that student loans burden individuals into their later years. The article I found on the “The Daily of the University of Washington” states that New York has passed the Student Lending Accountability, Transparency and Enforcement Act back in 2007 and that Cuomo has created a code of conduct that all lenders and organizations must follow in order to protect students from being victimized by the industry.

Link:http://dailyuw.com/2007/7/4/politicians-and-schools-resist-unfair-student/

Apple is one company that is dominating the market with their innovative technology. With the growing number of Macbook sales, Apple is currently one of the most influential and successful companies ever created. This year, Apple generated an astounding revenue of $20.34 billion dollars from Macbook sales alone. Figures were substantially larger when ipod sales etc. were included. The reason why consumers are snapping up Macbooks is largely due to Apple’s ability to produce cutting edge products with superior programs that are unavailable elsewhere.  Apple’s  Macbooks are known for their superior sound quality that is particularly  useful when producing music. Apple is showing entrepreneurial characteristics and initiative in their relentless drive to research and design new innovative products that is not offered by any other company. The new products are designed to target different consumer markets such as the ipad which focuses on increasing their senior customer base. Apple’s unique ability to foster an entrepreneurial culture is to be noted for as they constantly release innovative and creative products that are highly coveted, making it challenging for their competitors to enter similar markets.

This year Apple has shipped 1.69 million iphones to Japan “capturing the top share of the country’s Smartphone market.” The new iphones offered by Japan’s third-largest wireless carrier Softbank Corp accounted for 72 percent of smart phones shipped in the country. The iphones in Japan have become a huge success as more than 30.1 million apps have been sold in Japan as a result of the introduction of iphones. This is a form of market research initiated by Softbank Corp which came to the consensus that iphones would be in high demand. As a result, both Apple and Softbank Corp are thriving from the success of iphone sales in Japan.  Market research proved to be valuable in this situation as it helps Softbank Corp introduce a product (the iphones) that would create value in the mind of the customer. As discussed in class, market research is critical for any major company as the perception of value is constantly shifting. What this means is that the product or service that was popular in one particular year may not necessarily be desirable in the following year; therefore, companies need to conduct research to determine whether the market would readily accept the new product. Collecting data and doing research on the iphones before introducing it to Japan was most likely the determining factor for Softbank Corp to invest in the iphones.

Link:http://www.businessweek.com/news/2010-04-22/apple-captured-72-of-japan-smartphone-market-in-2009-update1-.html

This is a YouTube video that shows the opening of the iphone store in Japan. The video reveals the huge demand for these iphones.

Colorware was established in 2000 for the purpose of altering the color of existing products. Colorware allows customers to customize a variety of products such as phones (blackberry) and Headphones (Dr.Dre) etc. These products are either purchased directly from the company or the individual can send in their own product to get the color altered. Colorware offers customers a wide variety of colors and even allows the individual to pick the color of each part/section of their product thus creating a unique product that other people would not have. The website allows individuals to experiment with numerous color combinations on their product before they purchase. To ensure high quality customer service, Colorware has a 24 hour call service and live chats available on their main website for any immediate questions.

As previously discussed in class, Colorware strongly resembles Dell particularly in that their representatives attempt to establish a bond with their customers. Both companies also perform customization at a slightly higher price since consumers are are able to create a product that is a unique expresssion of their personal sense of style or taste. Colorware similar to Dell is one of the fastest growing privately held companies. Colorware has been featured in numerous high-profile magazines such as Vogue, In Style and Entertainment Weekly for its superior quality in both product and service. Both companies, conducts research on the latest products to determine what their customers desire as a matter of fact, every month Colorware offers new products that are available for customization. Colorware and Dell sell directly to their customers which helps to strengthen that bond. Having their products for sale online makes it convenient for customers to glance through their products in the comfort of their own homes as well as having the product(s) shipped to them. Both companies grew into a profitable business by creating a bond with their loyal customers and offering customization, which is a personalization element that few companies offer.

Walmart is one of the most profitable companies and many may be wondering Walmart’s secret to building a strong corporate empire. It appears their growth is due to their high level of customer service.  Walmart focuses on the significance of treating their customers courteously as well as offering them the products and services they desire with the intention for their repeat sales. In order to have high customer satisfaction, Walmart focuses on training employees on how to problem solve as well as guiding employees to exercise excellent customer service skills. In order to maintain friendly and enthusiastic employees, Walmart establishes a positive working environment and favorable working conditions because research has confirmed that employees who are treated better by their employers are more likely to perform better at their jobs. Similar to Walmart, we had discussed in class the rapidly growing shoe company known as Zappos. Similar to Walmart, Zappos also focuses on creating a loyal customer base by providing excellent customer service. During training process, Zappos focuses on core values where future employees endure 60 hours of customer-loyalty training. Zappos would offer incentives such as extended medical and dental benefits to further satisfy their employees. This just goes to show that financially strong businesses value the importance of customer satisfaction and that customer satisfaction pays off in the end, as it is a significant contributing factor in making substantial profits for these companies.

Links:http://www.ehow.com/way_5714916_wal_mart-customer-strategies.html

During the past 30 years, government officials residing in China (Beijing) have fled the country after pocketing a staggering 50 billion dollars. It has been claimed that more than 4,000 government officials have disappeared with considerable amounts of money in public funds and state media. It is evident that numerous embezzlements have occurred out of the public eye despite the government’s effort to stop the increase in corruption. These corrupt officials often flee to the United States or Australia to purchase luxury real estate whereby they live lavishly. There they attempt to start a new life with substantial bank accounts in tow as they try to cover their previous illegal actions that helped them acquire vast sums of money. It has been revealed that many of these corrupt government officials create fraudulent identities to disguise themselves and to hide their illicit actions.  If more than 4,000 officials are disappearing with enormous amounts of money, then the Chinese government needs to better regulate or monitor where money is being allocated in order to prevent devious officials from embezzling money that isn’t legally theirs. This relates to our brief in-class discussion on business ethics in general. We discussed that when one is overly focused on trying to achieve one’s personal goals, one can lose moral ground or engage in UNETHICAL business practices. In this case, Chinese officials who were after large sums of money decided to “get rich quick” by engaging in embezzlement, rather than earning it legally.

Link:http://www.google.com/hostednews/afp/article/ALeqM5j97pgKgZCZwHmD_Wyd7kf1X03kCA