Justin Ko's Blog

This is the end of another year and sadly the conclusion of this blog. Looking back at my work, the progression of thought and the expansion of knowledge is truly wonderful. The application of the marketing concepts and frameworks into the gaming world has helped develop a greater understanding of the world of marketing. Through the application of classroom material each week to topics of interest in the gaming world, I have garnered a much richer interest in marketing. From situation analysis, to the marketing mix the gaming world has proven itself a haven to apply marketing. Everything from the development of new products, to the understanding of the behavior of gamers who support the products, all the way to the sponsorships and promotions were explored in this blog. A special shout-out to Steelseries, Razer, Blizzard and the COMM 296  Blogs for not only giving me material to write about, but also for inspiring some interest in marketing. But just like the closing credits of any game, it is not the end but merely break before the next chapter.

The writing is done, and the real gaming can now commence.

Stumbling on this gem in a blog post by Clarence So (found here), has provoked some thought into  how effective pricing can solely determine the success of a game. To make it clear at the beginning, I am biased towards DotA and see all of these new iterations as cheap imitations to the original great game that defined the genre. However, it intrigues me how a game of inferior quality has managed gain such a loyal following and in some ways surpass the original. I feel the answer lies in effective application of the pricing elements.

Riot Games uses a sales and competitor oriented objective to determine the pricing of their product. Competitors such as DotA and HoN offer their games at very low cost, the first being a free mod for Warcraft 3 and the latter a standalone game originally retailing around $30. In order to take part of the loyal following from these games, LoL has decided on the most extreme pricing strategy and offered the game for free. This is a perfect reaction to the price war between the big players in the Action RPG genres that has essentially driven the base price to zero. Further, due to the large amount of substitutes and high elasticity, decreasing the price has a substantial effect on the quantity demanded to maximize the market penetration. Unfortunately, there is a cost of making a online game that is frequently updated. Riot used a system of micro transactions to basically capitalize on the loyal LoL followers to essentially finance the development of the product. These consumers are more than happy to support the game they like so much, while others are able to enjoy the game for free.

LoL…this is a perfect example that free is the best price.

Having seen some really great examples of product placement in media during today’s class, my awareness about the subtlety of this form of promotion has greatly increased. Starcraft 2 is my new addiction as mentioned early and I have been playing since the release of the game back in the summer. Just recently, I have become aware of all the subtle product placement in the game. Well, it is not really product placement but it is a really interesting take on how rampant product placement has become. When playing through the campaign, the Starcraft developers put in many Easter eggs to give the players a laugh. The most notable is the iPistol ad parody of the Apple iPod.

This is a testament to how popular and widespread the Apple brand and advertising has become. Without specifically mentioning Apple at all in the spoof ad, I as a consumer was able to immediately draw the connection between the iPistol and the iPod.  The style of the commercial is a direct imitation of the iPod commercials released over 5 years ago. Interestingly enough, the connection can still be drawn years after the first commercial was aired. The encoding of the Apple brand has been so well executed that the colours, tunes and the art style has become almost as strong as the brand itself.  At first I saw the advertisement as a great little cut-scene; however, through my growing knowledge about marketing, the advertisement has become so much more. It now appears that the iPistol Easter egg is a tribute to how ubiquitous Apple and product placement has become.

It never dawned on me how clever Razer was when it influenced my first gaming mouse purchase. Having never owned a high end mouse or know any of the technologies, a trip to Razer’s website seamlessly communicated all the information I needed to know about making my first purchase. Upon reading about the integrated market communications it dawned on me how effective Razer was at building up interest in their product. The website channel with all testimonials and technical specifications communicated the message of why a gaming mouse is so important. Perhaps even more importantly, it communicated why a Razer mouse is so important.

The AIDA model is the backbone of the Razer mouse guide. The awareness of gaming mice are first established as soon as you enter the site. The latest products are always showcased on the front page and the Razer brand is incorporated into the design of the website. The interest is developed when they give specifications about mice in the Razer Mouse Guide. Educating the consumer is key when they have little prior knowledge. The technology and the functionality are explained to the consumer building interest in the product.  To push consumers to desire the product they have a mouse configurator that will recommend a mouse based on your own personal preferences and usages. The action to buy a mouse is then easily facilitated by linking to the online store where the mouse can be ordered and shipped.

If you want to experience high end computer performance, let Razer communicate the message with this easy to follow mouse guide.

When it comes to common or specialty computer parts, mt first choice of retailers is always NCIX.  The reason why I have always chosen NCIX is due to their much larger variety of computer parts compared to the other big name electronic stores like Best Buy and Future Shop. The lack of vertical integration in the stores, means that NCIX has no loyalty in choosing their suppliers and as a result, seek out a wide variety of manufacturers based on recommendations from customers on the NCIX forums. In recent times, the former internet retailer NCIX has expanded its distribution channels and have become multichannel to accommodate an even wider variety of consumers. During the past year, NCIX has opened stores in Coquitlam, the United States to further widen their channels both nationally and internationally.

The most attractive aspects about the NCIX stores are the personal service, browsing opportunities, and the entertainment experiences. The sales associates are knowledgeable about the specifications of the computer parts and the are more than eager to use the in-store demonstrations to show off the newest innovations in the computer industry. However, the physical experience of computer shopping is only secondary for many computer users as they have a great deal of experience with using the internet. The internet is where NICX really captures the bulk of its market. By offering a wider variety of items at a lower price and allowing for in-store pickup to avoid the shipping costs the main benefits of internet shopping are capitalized. When it comes to the competitive market of computer retailers,  by offering a wide variety of cheaper products through multiple retail channels NCIX does what other retailers fail to do.

Stumbling upon an interesting blog post by Cyrus Cheung, I was amazed to find out that I was not the only DotA fan in the school. Reading the post about the sequel reminded me of  my high school and first year university late night gaming sessions. However the game has been through some tough times  recently. I feel that many of the consumers who have advocated the game in the past have moved on to newer iterations of the game such as Heroes of Newerth and League of Legends. Even then, the charm of the genre has so far disappeared as the lack of innovation has consumers moving onto other popular genres of console and PC games. I too have broken my DotA addiction…only to get sucked into Starcraft 2. In terms of the product life cycle, the action RPG genre is sadly in its decline.

DotA 2 might be the rope that can pull the declining genre out of the pits. Revamping the graphics and keeping the game play formula the same might be all that is needed to extend the product life cycle of this dying genre. As the primary reason for many of the players moving onto different genres is the outdated graphics engine, the updated graphics in DotA 2 might be all that is necessary to win back many of the consumers. By keeping the core game play elements the same and only  improving on the interface, the consumers will know exactly what the sequel will deliver and will be sure not to disappoint. I for one will be glad to jump back on the DotA fan base once the sequel gets released later in the year.

For those who are wondering, this was my best hero.

Stumbling upon the Cult of Razer blog, I was amazed to learn of the great sponsorship deal that was just agreed upon. The legendary Starcraft player Lim Yo-Hwan, or better known by his ID Slayers_`Boxer`, has just joined team Razer. For those who are not familiar with Boxer, Boxer is one of the players that essentially popularized Starcraft in Korea. He basically pioneered the way the game is played today and has also played a significant role in the success of Starcraft 2 by making a recent comeback. This commitment to e-sports prompted Razer to sponsor him. As we all know, Razer’s motto is “For Gamers. By Gamers.”. Now Slayers (Boxer’s Clan) will join other legendary teams such as WeMade Fox and Rox.Kis already sponsored by Razer. This effect of this sponsorhip can be seen through consumer behaviour and the last of the 4Ps.

By sponsoring Boxer in tournaments, Razer gets recognition where it counts the most, in the eyes of gamers. This appeals to the consumers affective attitudes. Boxer has won the hearts of many fans as being the pioneer for e-sports. He is the one that made gaming the sensation it is nowadays in Korea and around the world. Hopefully, this love for the game will drive the consumers to buy Razer products. In a way, by buying Razer products, the consumers are making a commitment to support gaming and the players they love. And of course, if Boxer advocates the use of Razer gear, then it must go good.

The original blog post can be found on the Cult of Razer blog here.

SteelSeries is known for offering a wide range of high quality peripherals with a focus on performance rather than flash or gimmicks. One of the greatest examples of this can be seen with the Xai and Kinzu. The Kinzu is a mouse made for the lower end consumer, who is considering buying a gaming mouse for the first time. The Xai on the other hand is geared towards the veteran high end user who wants the latest and greatest technology. This has allowed SteelSeries to capture profits from a wide range of gamers. A quick look at the STP strategy will really show this benefit.

The main segmentation techniques used are behaviour and demographics. There are essentially two types of gamers, the hardcore and the casual, with the latter unwilling to spend as much on products. However, both have a need to have good peripherals while gaming. If I were to convince my friend who is a casual gamer to spend $100 on a mouse, he will immediately decline. In this case, a $30 mouse will be much more reasonable to him.

After identifying these 2 users, SteelSeries developed a differentiated targeting strategy. The Xai was promoted as a high end mouse, while the Kinzu was promoted as an affordable alternative for everybody.

To position the brand, SteelSeries focused on simplicity in the design with maximum focus on performance. As such, both mice look identical, with the only difference lying in the components. Positioning the new products was relatively easy, as the Steelseries brand was already notorious for its good quality. In many consumers’ eyes, SteelSeries was already number 1 in performance and value.

“For gamers the Xai/Kinzu is a gaming mouse that provides simplicity and performance, unlike Razer which provides style and flash.”

Exponential growth is the dream of many companies as they fight for domination of the marketplace. And no other company has demonstrated this concept as well as Razer, a gaming peripheral company. Much like a mother mouse, this ever growing gaming company has released 6 new gaming mice just this past year. Over the past 2 decades, Razer has released a more than 22 gaming mice, each of which have seen its rise to stardom, and its fall off production. But with such an expansive portfolio, how does one keep track of it all? As we have learned in class, a tool such as the Boston Consulting Group matrix will be perfect to analyze which mice are bound for stardom and which are left in the dog house.

Stars: DeathAdder (black edition), Mamba, Abyssus, Imperator

Question Marks: Orochi, DeathAdder (left hand), BoomSlag CE, Spectre, Tron, Naga Molten, Naga Epic, Lachesis V2

Cash Cows: Death Adder V2, Naga

Dogs: Lachesis V1, BoomSlag, Viper, Diamondback, Copperhead, Krait, Habu, DeathAdder V1, Salmosa

The relative high abundance in the dog category is largely caused by the changing sensor technology. The outdated mice are still favoured among a few hardcore fans, but for the masses, state of the art mice are most appealing. The few mice that have stood the test of time due to superior build quality and ergonomic design make up the cash cows. Next come the new age mice and re-releases of the classic mice which form the question marks, as they show great potential. Lastly, the ever popular flagship mice of the company are the stars with a ever growing fan base on top of its already loyal following. With all these iterations of mice, I wonder why Razer’s logo is a 3 headed snake and not a doe.

My gaming session ended abruptly when my old keyboard gave its last breath and died peacefully that summer evening. And hence, I was thrust on a journey many have taken before: the Consumer Decision Process.

1. Having dug up my 10 year old keyboard from my closet as a replacement, I first realized that my need wasn’t a functional need (the old keyboard just didn’t feel right) but rather a psychological need. Not only did I need a keyboard, I needed the best.

2. Having been exposed to only membrane keyboards, my internal knowledge was limited. So I consulted the World Wide Web and gathered opinions from typists around the world with regards to mechanical keyboards. I learned that Cherry Brown Switches were amongst the best for modern keyboards, so my search for the best keyboard became the search for the best Cherry keyboard.

3. Thanks to all the research, my retrieval set was vast. In fact, I needed to create a set of evaluative criteria to narrow it down to my evoked set. My main criteria were build quality and switch type, with weights 0.4 and 0.6 respectively. The Filco was known for its solid construction and low performance risk, so it was an obvious choice for me over other manufacturers with inferior build quality such as Ducky and Das.

4. By now, I was going through any means to get the Filco FKB104/EB. After a search for suppliers, I was forced to buy from Taiwan (a small inconvenience in hindsight).

5. Although my expectations were set high, I am happy to say that my hopes were exceeded. Accurate reviews and diagrams built a superior yet realistic expectation. After adjusting to the tactile click, I must say that writing essays have never been so much fun.

A new year brings a mass of new gear and devices to put on our Wish List for 2011. The wait isn’t long this year as January 6th marked the start of the 2011 Consumer Electronics Show, where the newest technological gadgets are showcased to the world. Among the new phones, laptops and cameras rises what might be the next biggest thing in gaming: the Razer Switchblade. This new toy brings hardcore computer gaming onto a mobile portable gaming device. The Switchblade is no lethal knife, but without a doubt will cut out a healthy portion of the mobile gaming market for the leading manufacturer of gamer gear. Although this brand new concept device is in its infancy, it is off to a promising start by winning CNET’s People’s Voice Award. But will this new concept make it out of its display case and into the hands of gamers? As we learned in marketing, the journey from idea to product starts with understanding the environment.

With regards to the immediate environment, Razer has it all figured out. Razer is already known for its stylish and cutting edge gaming peripherals, but with the recent acquisition of a highly specialized team of engineers, Razer can leverage its core strengths to develop this product. A quick look at the competition reveals vast amount of gaming laptops, handhelds and the popular iPad. Fortunately this new kid on the block, has positioned itself quite nicely in the market, giving consumers what will hopefully be a the middle ground between a laptop and a handheld. Making up Razer’s corporate partners are Intel by supplying the Atom processor, and game developers by providing popular games such as DotA and WoW. As for the macro environment…that will have to wait until another time.

Interested? Find out more at: http://www2.razerzone.com/switchblade