Month: March 2011

       A few days ago I saw an interesting Youtube clip from Hong Kong called “The World in 30 years.” In it, the filmmaker tries to illustrate how Apple will dominate every aspect of our lives and completely take over the smart phone market. The clip predicts that Apple technology will progress to a point where iPhones can meet our every need from lipstick applicator, to hairdryer, and food cooker. IPhones will even be able to store cigarettes, act as lighters, and function as portable guns through a variety of very real applications.

       I think the clip is facetious and a farfetched, but the filmmaker’s message is clear: Apple has not only transformed the cell phones market, but, bit by bit, Apple products are invading our lives so successfully that we have become unconsciously increasingly reliant on them. Don’t get me wrong: I adore Apple but I think we also need to be aware of this filmmaker’s message. Are we letting iPhones and Apple products overwhelm our lives?

        My last phone was a Sony Ericsson, and I wasn’t too interested in the hype surroundin the first three iPhones. When iPhone 4 came out, I wanted to buy one to check out the craze but the price was so high that I couldn’t bear to buy one. Once I did, however, I don’t really know what I did before I got it. The iPhone Apps are my favourite part of the phone. I absolutely admire the sheer amount of interesting and useful functions, the tremendous number of applications, and the simple economic design of the phone. I am so impressed with some applications that I am often willing to spend quite a bit of money to buy them.

       I concur with the filmmaker that Apple will gradually take over the world with its technology. When IPad 2 came out, I saw people willing to camp out overnight outside Apple Stores just to be earlier than others to buy the new product. Even though the supply is high and there will be enough for everyone to get one, and I really couldn’t understand the fanatic craze over being the first to get one, I cannot but be awed by Apple’s marketing strategy effectiveness. The incessant willingness of consumers to buy Apple shows that there is an incredibly high demand that is a testament to the success of the overall brand management and loyalty maintenance that the corporation has invested so much money in.

        In the past, I had to buy phone cards to call my friend who are overseas. But now, my IPhone can help me send unlimited free messages and make free calls to my overseas friends through the Whatsapp and Talkbox programs. Apple’s innovation is unstoppable and the fact that they are able to continue to innovate and launch so many new products and applications to grow their brand every year makes Apple, in my opinion, a mandatory part of every business and economics program curriculum.

        Recently, I downloaded the free scanner application on to my iPhone. I am once again taken aback by how convenient my life as become as a result. I am , paradoxically, impressed but also apprehensive. Sure, I can scan documents directly through my iPhone and then send them automatically to my friends but the sheer power of being able to do so makes me consider how much information and influence Apple actually has in and over my life. I am not an Apple slave, but perhaps unconsciously I have already been enthralled. Many people are in the same boat as me but I wonder how many realize this. Has the convenience of , for example, being able to scan and send documents faster than the traditional method subconsciously made me devoted to Apple even more? This is the greatest success of Apple’s innovation: they are able to capture minds and allegiances even without openly doing so. Apple applications have replaced a lot of products that I use everyday. The applications can also save me a lot of time and money by letting me do things faster and more convenient. This is why Apple will take over the world but are we really aware of it?

Before coming to UBC, I went to high school in Hong Kong. Throughout my time in secondary school, I did not know how to study properly in order to do well on exams. As a result, I failed my first set of government exams, which are used in Hong Kong to determine university eligibility. I still remember failing Chinese, a memory I recall with much humiliation and which also motivated me to leave Hong Kong to study in Canada. The worst part of failing Chinese was that even my high school teachers teased me about it. The time between my exam results and coming to Canada were some of the most depressing of my life.

Before I transferred to UBC, I studied at Coquitlam College, where I met my favorite instructor so far in my university career, Michael Cui. He is also a friend of mine now. While I was at Coquitlam, he taught me how to study efficiently, think strategically, and use the information in the textbook instead of memorizing it. The conservations I had with him made a lasting impact on me, and led, in great part, to my success at Coquitlam. I was able to finish my last term there with a 3.7 GPA so I could successfully transfer to UBC.

This past month, I went back to Coquitlam to visit my friend, Michael. I told him that I got into Accounting, and I shared with him the difficulties that I have faced recently. I want to be an accountant in Canada, so I asked him about what I need to do in order to earn my Canadian certification. He’s not only a great instructor but also a great friend. He gave me some great advice that I had never considered. He suggested that I take advantage of the internship program offered by UBC. If I can intern, he says, then I can at least get a taste for what the work in a real accounting firm would be like. He also gave me some tips on applying my accounting knowledge in a real firm. Joining the internship program can pave the way to my future career.

During our talk, he also shared with me some of his musings on doing business. I am a very impatient person by nature, and I like to finish things as soon as possible. I simply do not and cannot wait. He informed me such a disposition would be calamitous to a future career in business. Entrepreneurs think ahead and anticipate problems; there is usually a reason behind their actions. I should learn to observe how successful businessmen behave so that I can learn from their methods.

 I am heeding Michael’s advice. I think an internship in an accountant firm will also held me build up some professional connections within Canada and gain some work experience. Since I am relatively new to this country, I need to start now to build up my work experience or I might miss some good working opportunities when I graduate from UBC.

I really appreciate Michael for his invaluable advice. I need to start to apply the things that I have learnt from 299 and apply for an internship in an accounting firm soon. A true friend helps you discover your strengths and Michael has certainly helped me to forget my past mistakes, realize my potential abilities, and motivate me to succeed. I owe him a great debt of gratitude.

Michael Cui is a knowledgeable person with lot of life experiences.

Recently, I read a blog by Michael Fleischner entitled “Marketing is All About Benefits… And Experience.”

In his comments, Flesichner highlights four points crucial to conducting effective marketing:

1. Marketing needs to speak to your audience in an effective communication tools or media, and understand the needs of the customers.

2. We need to consider whether our marketing strategy is effective or not.

3. We need to consider a good timing to conduct an efficient marketing strategy.

4. The feedback from the customers is very important to maintain our marketing positions.

To illustrate his second point, Fleischner uses the example of buying a movie ticket. If he goes alone to buy a movie ticket, even if the theatre is offering a buy-1-get-the-2^nd-ticket-half-off deal, he won’t consider the sale because he is alone and won’t be able to enjoy the benefits of the deal. But, if the theatre offers a coupon that he can redeem late, he will change his mind. I totally agree with his example because I have had similar experiences in the past.

 I shopped at Metrotown once when a shoe store offered a buy-1-get-the-2^nd-pair-half-off deal. I thought it was a great deal but I noticed that a lot of people did not take advantage of the sale because it wasn’t practical. Most people I watched wanted only one pair of nice shoes and weren’t interested in getting a second pair. Also, I doubt that many were willing to spend extra money on a second pair if they didn’t have to.

 At Guess, however, I saw a markedly more efficient marketing strategy that used effective timing, a practical marketing strategy, and effective communication tools to deliver its products to its customers. Guess marketers understand that if it can attract more customers to buy its products, then the sales volume will increase. Guess times deals to put sales on during weekends when most young people, who have the greatest amount of purchasing power and expendable cash, go shopping. Guess salespeople also do a wonderful job advertising upcoming sales. They also provide free membership that offers in-store credits to reward loyal customers. Guess’s loyalty reward program was, in my opinion, its most effective strategy over the shoe store’s sales campaign because the option to accumulate points means that customers do not have to purchase multiple things at one time and feel like they have spent a lot of money. The feeling of getting a deal and needing to buy more to get a discount are also powerful incentives to inspire people to shop. Guess’s communication tools are also fairly effective. I shop at Guess frequently and I always receive their emails, mail catalogues, and text messages to inform me of upcoming sales. I completely agree with Fleischner’s argument that successful marketing needs to play tricks on customers to derive the most benefit and gain from them in the shortest time possible.

That is the email that I received from Guess.ca recently

     If you were to ask me what kind of computer to buy in the past, I would have, without a doubt, preferred a machine that ran a Microsoft rather than a Mac operating system. Now, however, I’m not so sure. Maybe its the ubiquitous and uber-chic advertisement campaigns that are both persuasive and pervasive, but I think my change of heart has ultimately to do with my dissatisfaction with the services provided by Microsoft. I recently read PC World’s “10 Ways Microsoft’s Retail Stores Will Differ From Apple Stores” that summarizes quite succinctly and articulately the wave of the future for the computer buying consumer experience. I totally agree with Brennon Slattery because I too have had the same experiences as those he describes in his opinion piece.

     Slattery argues that Microsoft, intentionally or not, drives customers insane by treating every customer as thieves who are guilty of some form of intellectual property infringement until they can prove that they’re actually bona fide paying customers. “So, what?” you might ask about Microsoft’s de facto presumption of guilt, but my problem with this method of customer service is the sheer trouble and inconvenience it poses. Every time I purchase a Microsoft product, I need to enter long encryption keys consisting of random alphanumeric combinations. Where’s the trust? Another quandary I’ve had with Microsoft products is with the superfluity and multiplicity of versions of Microsoft Windows, which all seem to do the same thing, more or less, but yet each is more expensive than the last. Do we really need the most up-to-date version? If we do, then why? Microsoft engineers do not seem to have a problem charging more for the same product but as a customer, I don’t see the need to get the latest copy because I don’t see any real benefits from upgrading. Customer care is also a problem; I can never seem to find a human to help me with a problem. Androids are no good when troubleshooting specific problems they are not programed to deal with.

     In contrast, Apple excels where Microsoft disappoints. Besides doing a better job than Microsoft to promote their services, Apple also has a comprehensive and very satisfactory customer care and warranty service. Apple products are designed with convenience in mind; I would argue that even the most computer illiterate person can feel at ease with a Mac. When I bought my iPhone recently, all I needed to do was connect my phone to my computer and the rest took care of itself with the help of a few clicks from me. When I bought my laptop, however, the setting up process was not so smooth. First, I needed to buy a range of Microsoft software separately Then I had to figure out which versions to buy because they all seemed to do the same things but they were all priced differently. Apple, on the other hand, offers software free from their Apps Store, and most of it is considerably cheaper than Microsoft’s. The Apple Apps Store also has many different types of games, useful software, and other convenient programs downloadable free of charge. I feel with Apple that I get a better deal and that is what every consumer is looking for.

     After reading Slattery’s article, I can understand why people are shifting their focus to Apple and Macs because of genuinely better quality, more attentive service, and greater product satisfaction. If Microsoft wants to retain its lead in the computer world, they are going to have to reposition and improve existing problems. They can begin, I think, by addressing the issue of customer loyalty and revamping their brand image. Next time I need a computer, I am am going to buy a Macbook unless Microsoft can give me better reasons not to. At least with a Mac, I get the proverbial “more bang for my buck” because I won’t need to spend additional money on software and I can rely on Apple Customer Service more than Microsoft Customer Service. After all, if I have a problem, I can simply go to any Apple store in the mall for help, but with Microsoft, I would have to ship my computer to them and that is definitely less convenient and more expensive.

The Video from Audi R8

     The Audi R8 is my dream car. Not only is it an unmistakable symbol of prestige, it is also a status marker of success and wealth. I know my reasons sound pretentious, but I have come to have a new admiration for the Audi brand because of an interesting and rather amusing advertisement I saw on Youtube. In the video, a thief entering the parking lot after a heist is stopped by a security guard. Both men pull out their guns while a well-dressed female professional, pulls into the parking lot and exits her Audi R8. As the guard cautions the thief to surrender, the thief steps beside the R8 while the woman looks on. The thief points his gun at the car and threatens, “Drop the gun or I shoot the car.” The guard acquiesces and the thief is picked up by his accomplices in another getaway car. The advertisement ends with a close up of the R8 and the slogan “Already a classic.” What impressed me most about the clip is the obvious inversion of expected behaviours. The thief, if he really wanted to escape, would have targeted the girl instead of the Audi R8 but the irony and comic effect effectively draw the viewer’s attention to the economic value and, by extension, the cultural and social cachet attached to the car.  An Audi R8 is implicitly worth more than a human being, more than life. I was intrigued by the message Audi wants to put forward that few things surpass the R8. I am not sure I completely agree with the exaltation of materialism and celebration of consumerism that the R8 commercial expresses but I would like to own such an impressive status symbol.

    The slogan that “The Audi R8 is already a classic” connotes the universality of luxury and opulence associated with the brand. This extravagance directly affects consumers by enticing them with brand awareness and highlighting the perceived value linked to the name to facilitate and excite the desire to purchase. The Audi R8 is much more expensive than other cars; not the most costly but certainly out of reach for the average workaday laborer.  Nonetheless, people still admire the Audi name and desire to buy an R8 because the reputation Audi has built for itself guarantees an enduring and pervasive brand loyalty. This video reinforces in viewers the link between Audi and speed, the latest in automobile technology and design, affluence, and style. Branding character in this way underscores the status of Audi’s sports cars with the highest quality. 

     In a Marketing lecture, my professor showed the class a variety of advertisements from Lamborghini that accentuated the prestige of the car. The Audi R8 advertisement is more successful in my opinion because it uses an implied storyline to show how fashionable and desirable an Audi R8 is to the point that even defenders of the law can turn a blind eye to legal infractions if doing so can save an Audi R8. That simple, if ethically fraught, storyline persuasively motivates people to want to own the car, although in actually they will probably not be able to afford it. Comparing the R8 marketing campaign with Lamborghini’s strategy, the R8 is more successfully because it can reveal the product’s exceptional quality without being too ostentatious.

        Audi is, and will probably continue to be, a highly successful brand if it is able to maintain consumer awareness that its cars, including the Audi R8, are trendy, elitist, but simultaneously classic and timeless.

The video from Lamborghini

When I went to Holt Renfrew this weekend with a friend, I was very impressed by the high end store for several reasons. Plastered on every wall was the slogan for their spring campaign: “This Spring You Can’t Live Without It.” In pink and full of colour, the banners very effectively drew the attention of ladies perusing the expensive retailer. The eye catching advertisement and attention to detail in every aspect of decorating so that nothing stood out from the carefully chosen design and colour scheme screamed class and exclusivity. At Holt Renfrew, quite a few salespersons from different departments walked around offering samples to potential patrons. One saleslady came up to my friend and I and asked us quite intriguingly, “Have you heard about the perfume that can be sold out within 20 minutes?” Her question piqued our curiosity, so we went with her to her counter. Thinking back, her marketing pitch got us and we were taken, hook, line and sinker.

Salespeople are fundamental to the profitability of any company and have a direct impact on a business’s bottom line. They play the critical role of promoting products to often oblivious clients who are in the mood to shop and are looking for things to buy. At Holt Renfrew, the cosmetics department normally retails products higher than other stores outside of the downtown area; and yet, Holt Renfrew still dominates the Downtown shopping area. I think the reason for their success lies in their effective store image maintenance, careful and ubiquitous salespeople pitching the latest wares by sweet talking customers, and cultivating an aura of prestige that draws people to them despite the costlier markups. Holt Renfrew is willing to offer complementary samples and a satisfaction guarantee. Even when I bought shampoo, they gave me other product samples. The saleslady who helped me even suggested a beauty makeover to improve my overall skin care free of charge. The attention to miniscule details was the most impressive of all; even for shampoo, Holt Renfrew provides a guarantee and a refund policy of two weeks even if I opened and used the product. I can’t imagine anyone actually taking advantage of that warranty to return used shampoo, but the knowledge that it exists assures me psychologically and effectively ensures my loyalty to the store because I feel that they genuine care about my rights and satisfaction as a consumer. If I don’t like it, I can simply refund it and that is enough is comforting. Holt Renfrew’s slogan, very true to all ladies who enjoy shopping, succinctly summarizes their treatment of customers so that they really can’t live without Holt.

Holt Renfrew can set their prices higher than the market price partly due product specialization through imported goods. Their level of attention to customer needs is impeccable and truly remarkable. Their clothing department, which constitutes more than half of their total field of business offerings to customers, features designers from the United Kingdom, France and Paris. Having made themselves into a know locale for haute couture, Holt Renfrew justifies its expensive retail prices because they are one of very few stores in Vancouver capable of offering so many luxury designer labels in one location. Usually, customers are willing to pay higher prices for the convenience. Fashion houses also work with Holt Renfrew to charge more by selling less. Holt Renfrew has a limited supply of products that creates a higher demand. Tourists and local Vancouverites feel the pressure to buy the item they desire before someone else does or before it sells out. Holt Renfrew is truly a model for commercial success that I think businesses, whether in high end retailing or ventures with more realistically priced wares, to follow because their attention to the smallest details of ensuring a satisfying shopping experience, down to the feature of a suggestion box by the main entrance for improvement suggestions which I have rarely found at other stores, builds brand and company loyalty and reminds the shopper that they are the store’s first and most valuable asset.