Month: February 2011

This reading break, I learned the impossibility of marketing and I want to take this opportunity to share it in my blog.

During Christmas on a visit to my family in Hong Kong, my father bought me an iPhone 4. I was honestly quite excited with my present because the iPhone 4 is truly a unique and fascinating piece of technology. Not only is it Apple’s newest smart phone, the device quickly ingratiated itself into my everyday activities to the point where it has become an integral part of my daily life. But before I get carried away singing the praises of the phone, I want to talk about the merits and marvel of the marketing juggernaut behind the iPhone series because that, more than the phone itself, I find extremely interesting and awe-inspiring. Warranted by its functions or perhaps overly hyped up by media and celebrities, there is a much higher market demand for the iPhone 4 than there is supply. The excess demand is particularly strong in countries outside of North America and Europe, like Hong Kong and other Asian nations. The excess demand, as in any economic case study, yields higher market prices. So, when my father buys a 32GB iPhone 4 at higher than market price, I don’t think he is being gouged by the retailer even though I could probably buy it for less at home in Canada.

I love this phone a lot, and it does indeed bring me a lot of conveniences and entertainment. The endless applications possible for download make the phone much more than a communication gadget. During this past reading break, however, my world almost fell apart when my iPhone stopped working. Albeit a little bit dramatic but a piece of me stopped functioning when my phone ceased operating because I accidentally spilled water on it. When the accident occurred, I, admittedly a little ashamed to be even saying this, cried because the phone, handiness and all, is very important to me, especially because it was a Christmas gift from my father.

My friend immediately told me to go to an Apple repair centre. When I arrived there, the sales representative asked me some questions about what happened to my iPhone 4 and then told me to wait for her while she brought the phone to the back for inspections. The salesperson’s generous and genuine concern helped me calm me and I was amazed to see how detailed the training and marketing strategy Apple has developed actually is; nothing, not even the most minute details, have been left out of their customer care strategies. After about 10 minutes, the salesperson apologized for the misfortunate accident, even though it was not her fault and completely the result of my own clumsiness, and, to my utter and absolute shock, assured me that Apple would be willing to give me another iPhone 4. She did, however, caution me about the complexities of the international warranty and emphasized the need for me to be more careful in the future. The thoroughness of Apple’s customer care program has converted and convinced me to buy or at least consider Apple next time I need to purchase computer products. Apple’s service and willingness to solve customers’ problems was so satisfactory that I am at quite a loss trying to think of another company that can possibly compete.

In the beginning, I was extremely worried that my iPhone was a gonner, but the sales representatives at the Apple Store assured my loyalty to Apple’s products because of their exceptional care and warranty package. I was genuinely impressed by their comprehensive international one-year warranty that they honoured regardless of where I bought my phone from. I cannot admire enough Apple’s marketing strategy to retain and foster customer loyalty. They understand how taking a small hit on their profit margin by offering customers a new phone has the potential to generate even more profits when I buy other Apple products. If Apple successfully retains and builds loyal customers their ability to generate profits over the long term is significantly and exponentially enhanced. The word of mouth and anecdotal recommendations between friends who have experienced Apple’s generous treatment would be more effective than billboard advertisements. Apple’s positive brand image is bolstered and brandished by providing products and services that exceed customer expectations throughout the world. The Apple iPhone 5 is expected to come out this summer and, given my fabulous experience with Apple, I just might buy one.

One day, when I was sitting with my friends, we talked about how buying a Nissan would save polar bears, and the planet by implication, because it would stop global warming. Our conversation was sparked by a recent Nissan commercial that used the message of environmental as its selling point. Recently, I read my classmate Billy’s blog entitled “Buy a Nissan, save a polar bear.” In his comment, he talks about how Nissan’s work relating to the environment and their commitment to protect the environment has effectively generated customer loyalty. Their green message has influenced many consumers to consider choosing a Nissan.

It is not only advertising that makes a car an attractive purchase, but the reputation or implied image of corporate responsibility. Customers alert to environmental protection will find Nissan’s advertisement images heartwarming but also tinged with guilt because they too know that they are culpable of contributing to global warming. With its soft background music, and its focus on the plight of the polar bear, even the most visually illiterate viewer can understand the simple and straight forward message of the marketers. Cars are a major source of environmental pollution, because emissions destroy the ozone layer leading to environment damage, but Nissan is on the side of helping the environment. The polar bear hugs the man, implying that nature is thanking Nissan for their help and consumers who buy Nissan can also participate in Nissan’s effort to save the bears. Unlike other brands of cars that I am aware of, Nissan is the only brand that persuades consumers to buy their cars to stop pollution. The meaning behind the advertisement is explicit but not the only way to advertise effectively. It is obvious that pollution is the main cause of global warming, putting animals at risk and the future of humanity in danger. This ominous forecast has not been lost on marketers. In the commercials and advertising that we are exposed to in our daily lives, marketers vie to get a greater share of the market by using different strategies to enhance their products’ ability to lead to a higher quality of life, improve efficiency in the workplace, or make the world a better place. The problem as I see it is that as our quality of life improves, more and bigger problems to our environment are created. Polar bears are just one of the many victims and they make a powerful visual impact on consumers who are environmentally conscious. My family drives a Nissan too, but not because of the environmentally friendly marketing messages. I chose it because I genuinely enjoy the luxury of the car and because it provides me and my family with a high level of comfort, especially when we need to travel over extended distances for long periods of time. There are so many luxury brands available as well, of course, but my family chose to buy a Nissan instead of a BMW, Meredes Benz, or Audi because of brand loyalty based on our previous experiences on the reliability of Nissan cars.

Valentine’s Day is approaching soon. Recently, I found an interesting advertisement clip on my friend’s Facebook. The content of the advertisement didn’t impress me as much as what was implied and suggested non-verbally. Usually, an advertisement lasts only 2 or 3 minutes, but this advertisement ran for 6 minutes. Light background music plays throughout the advertisement while a timeline shows the start and end of a couple. Sweetness transitions to anger as the girl focuses on a silent phone and then to hurt as neglected feelings lead to a breakup.
 
The advertisement, for a pudding snack, revolved around the idea of “one couple, one dessert: without words but with inexpressible feelings.” In the ad, the hero fails to send the girl a pudding. He leaves without getting her phone number but, surprisingly, he sends her different kinds of pudding. Even though the ad ran in Chinese speaking communities in Asia, one doesn’t necessarily need to understand Chinese to feel the love and care behind the images. Marketers are trying to push pudding, a very popular dessert in Asian countries, to other markets by creating a commercial that is relies extensively on non-verbal actions and body language. I found the clip an excellent way of communicating beyond linguistic barriers to different multicultural markets and ethnically diverse societies.
 
This idea has a particularly apt application in multicultural Canada. When marketers want to promote a product in a country with so many different ethnicities, sometimes it is better or even unnecessary to use language and verbal communication. Body language, as simple as eye contact is a good way to express ideas regardless of language. This pudding advertisement will most likely work even in Canada despite having originally targeted Asian consumers. Usually, I can’t stand advertisements that are more than 3 minutes, let alone one that is almost twice as long, but the timeline combined with the story and the innovative use of body language drew and has still captured my attention. The ending was also unexpected: clueless of who sent the gifts, she enjoys the dessert anyway and dreams of love.