How I See It

In this technology age, most people  have embraced the internet. I use the computer a lot; from sending mails to doing assignments to watching my favorite TV shows and movie (for free). The internet has revolutionized Marketing and it is changing the way companies market their products. Online Marketing is increasingly becoming popular because of the increased use and popularity of the internet. There are so many forms of online marketing such as Social Media marketing (Facebook and Twitter), search engine ads (e.g. Google ads), and pop-ups.

After reading Beverley’s blogpost: ‘Viral Videos’, I realized that the internet is a very powerful marketing tool. Beverley explains in her post how Youtube has made Rebecca Black become one of the most popular teenager in the US in a matter of days. ‘Rebecca Black’s video and song “Friday,” sparked so much attention that within a couple days there was over 18 million hits on Youtube‘. The internet enabled her song to be heard my millions of people all over the world. This will not have been possible if the song was launched on a US TV network (like MTV).

I recently tumbled upon Glenda Ching’s blogpost: ‘The Power of Khan’. In her post she talked about the power of word of mouth marketing which was epitomized by Khan Academy.

I had never heard about Khan Academy until I read her post; what made me go find out more about Khan was the praises and positive feedback her and her friends gave to Khan Academy. Khan Academy is an educational website that has over 2000 Youtube videos that teaches students topics in various subjects, such as Calculus, Finance, Statistics, and History.

Khan Academy is becoming increasingly popular with students all over the world. One of the main reasons why it is becoming increasingly popular is because of word of mouth marketing. I agree with Glenda that word of mouth marketing is very powerful. Khan Academy does not engage in expensive marketing campaigns such as TV ads and Billboards, but it still very popular. This  shows the power of consumers. Khan Academy does not have to pay students to promote their services, but students do it on their own. I believe consumers promote Khan Academy because of the quality of its services. Khan Academy provides a high quality product that has a great value to consumers.

Many companies want their consumers to spread positive word-of-mouth for them because it is free advertising, but that can only be achieved if consumers believe that the product is great and the product is providing a great value to them

My friends have been telling me how good Matt Damon’s documentary titled the ‘Inside Job’ is. I finally had a chance to watch it and I found it really interesting and a good use of my time. The documentary explains the global financial crisis that stemmed from the U.S in 2008.  The crisis started when big investment banks like Lehman Brothers and Goldman Sachs were investing in subprime mortgages. Banks were lending to borrowers that could not afford having homes. As a result, many of these borrowers could not afford to make the payments of their loans and this led to a crash in the financial market.

Lehman Brothers was one of the investment banks that became bankrupt as a result of the subprime mortgage crisis. The shocking thing about Lehman’s collapse is that S&P (a credit rating agency) gave Lehman Brothers an ‘A’ grade rating just a few weeks before it went bankrupt. Also, the documentary shows that the amount Lehman Brothers paid S&P kept increasing each year; S&P were paid a lot of money for their ratings. Obviously, Lehman Brothers did not deserve an ‘A’ grade rating. The question I asked myself was why will S&P give Lehman Brothers such a high grade when they clearly did not deserve such a rating? S&P were supposed to be opinion leaders and objective but they have betrayed the trust of the consumers. They were supposed to be a guide to consumers (investors) and help them make decisions in whether to invest in Lehman Brothers’ products (stocks and bonds). However, they failed as opinion leaders.

As a consumer, I feel that opinion leaders are supposed to be truthful, honest, and objective, however, it seems to me like the credit rating agencies who were supposed to do their job as opinion leaders failed.

In recent times, many young teens and some may say even adults have been infected by the Beiber Fever; Justin Beiber has a great loyal fan base. Similarly, I feel many people (especially the tech savvy people) have got Apple Fever.

The Ipad 2 was recently released and  just like other popular apple products, the line-up to get the Ipad 2 was really long. I find it so surprising that people will choose to wait all day (no matter the weather) to get the latest Apple products. I have a friend that has all the Apple products and keeps going back to get new versions of Apple products every time a new version comes out. He has an Apple desktop, Apple Macbook pro, Iphone 3G, Ipad and I bet he is going to get the Ipad 2 as well. This clearly shows that Apple has a high customer loyalty and customer retention. This high level of customer loyalty has made Apple to become one of the most successful companies in the world.

In addition,  the high level of customer loyalty and Apple’s brand equity has enabled Apple to successfully increase its product lines and enter new markets. It feels like anything Apple touches turns into gold . It  also influences the product life cycle of its product category. For instance, Apple has revived and influenced the growth in sales for smart phones and tablets. Apple has a strong brand image and great following from its loyal customers that enables it to be successful in its product categories.

I first heard about American Idol when I was 12 because of the infamous William Hung; I have been a loyal fan of the show ever since. American Idol has stood out among a great number of Talent shows; it is popular not only in the U.S but all over the world.

The new season of American Idol recently began and I decided to watch the first episode last week, but after watching the first 10 minutes of episode 1, I realized I was not enjoying it like I used to. This was shocking because my favorite part of American Idol is the auditions; this is because I enjoy watching the funny contestants that feel they’ve got the best voice and can sing better than Mariah Carey. Also, I love seeing people who you will never expect to have an amazing voice blow you away with their beautiful voice.

I finally realized that the reason why I was not enjoying the show as before was because Simon Cowell was not in it.  In my opinion, Simon Cowell made the show what it is today. Simon Cowell was American Idol’s sustainable competitive advantage. What’s not to love about Simon Cowell? Is it his facial expressions, British wit, obnoxious comments, honesty or kindness?

He is a sustainable competitive advantage because many versions of American Idol has been copied all over the world and they have judges that try and emulate Simon Cowell, but they can’t do him justice. Simon Cowell can neither be replaced nor copied. I recently started to watch his hit U.K. TV show, X-Factor, I realized I enjoyed the show more than the new episode of American Idol because Simon Cowell was in it.

Simon Cowell would be greatly missed on American Idol; he is truly the best talent show judge that ever lived.

Taco Bell was recently sued for false advertising. The lawsuit claims that the meat used in Taco Bell’s fillings contains less than 36% beef and does not meet the United Stated Department of Agriculture’s definition of beef.

This accusation can have a negative effect on the views and image Taco Bell’s consumers have on the company because consumers value honesty.

However, the views of many consumers have not changed by the accusation; one consumer commented saying  “I’ve eaten it for five years; I don’t care”. This shows that Taco Bell has loyal customers.

Taco Bell has done an amazing job in responding to the lawsuit; it not only responded quickly to the accusations but it also responded smartly using various means. It used  its website, print ads in NY Times, USA Today, and WSJ , and a Youtube video to inform customers about the beef used in its products and to ensure customers have a positive image about the company

Taco Bell’s campaign focuses on the Cognitive component of Attitude; the print ads and Youtube video provide facts on what ingredients are in their beef. Focusing their campaign on the cognitive aspect of attitude was a good strategy because they need to reassure their customers that they have been honest with their customers and have been using 100% beef in their products. By providing facts on what is contained in their beef, they are ensuring that consumers have a positive attitude towards them.

https://www.youtube.com/watch?v=50Pe_0Gr2_4[/youtube]

I consider myself as a consumer that is price sensitive; this is not because I cannot afford expensive things, but because I prefer buying lots of things than buying few items. Why buy a few items when you can have many? Don’t get me wrong, I love quality items too, but if I can get it for cheap, why pay a higher price.

As you may have guessed, I love discount stores. My favorite grocery store in Canada, is Real Canadian Superstore. I love it so much that I go all the way to Burnaby (about an hour bus ride from UBC) just to get groceries. Safeway is closer to UBC, but I only go there when I really need an item  and I can’t go all the way to Superstore.

Another of my favorite discount store is Ross Dress For Less. In my opinion, this is the best discount store in the world. This store offers designer products like Guess and Ralph Lauren  at low prices and it’s not fake.

These discount stores led me to believe you can have both quantity and quality.

However, there came a time in my life when I had to pay a high price for something important and that was my University education. When I was deciding which schools to choose, price and rankings of the school were important factors in my decision. However, schools with great reputations and higher rankings were usually more expensive. I had to decide between price and quality and I chose quality. I felt that having a degree from a reputable school was worth a high price. Also, the opportunities available from schools with higher rankings is great, making it deserve a high price. Till this day, I’m happy with my decision and I have no regrets for choosing UBC.

On the first day of my Marketing class, we talked about the popularity of the 2010 Winter Olympics Red Mittens. The red mittens were not advertised on TV, radio, or on the internet, but they were still very popular and outdid sales expectations. The discussion made me realize that Marketing is not only about advertising; my view about Marketing changed from then on.

This concept led me thinking about Facebook. Facebook is the most popular social networking site with over 500 million users world wide. Facebook has grown exponentially and its growth rate never ceases to amaze me. How did Facebook get so popular and have so many members?

The most interesting thing about the growth of Facebook is that there was no advertising campaign on TV, radio, or billboards promoting Facebook. How did facebook get as much members as it did?

I think the 4P’s can help provide a good understanding of Facebook’s success.

1. Product: The product provides great value to its members. It provides a great avenue for people to reach out to old friends and colleagues, share experiences and photos, and meeting like-minded people through Facebook groups.
2. Price: The service is free. The benefits of the product outweighs the cost.
   
3. Promotion: Most people will tell you they heard about Facebook and joined because of their friends and family; I started using facebook because my friends made me join. Facebook was promoted through word of mouth; it didn’t need expensive advertising campaigns because they had members who acted as advocates and promoted the product for free.
4. Place: Facebook can be accessed anywhere in the world (except in countries where it is banned) as long as there’s an internet connection.
   

They say the oldest form of advertising is word of mouth; Facebook is an epitome of this form of marketing.