Randy Luo's Blog

Before I comment on Vicky’s post, I would like to comment on the fact that Apple changed it’s network carrier from a small wireless network company to the biggest wireless company in China – China Mobile Ltd. Like my recommendation from previous post, this is a smart move since the carrier company choice can really hinder or assist the sales of iPhone 5, which is said to be released later this year. Also, something extra, according to Bloomberg (http://www.bloomberg.com/news/2012-04-03/-apple-fever-to-push-stock-to-1-001-within-year-analyst-says.html) Apple’s shares are expected to grow up to $1000 and the total value would be bumped up to $1 trillion dollars for Apple. This is also effective marketing since news like these can attract customers to Apple thinking that it is a superior company selling better products.

After reading Vicky Lao’s reply on my post #4 – distribution channel, I think the positioning strategy Vicky implies for Samsung is ‘more for same’. However, I disagree. Even though Samsung is positioning themselves as more for same, I don’t think that’s really true. The hardware and the operating system, even though they are different, but it’s comparable. Other similarities ranges from display to it’s functions.

I think what Samsung needs to do right now is to promote more in Asia-pacific in order to gain more market share. The reason why Apple did not succeed in the Asian market at first it’s because of it’s ‘exclusivity’ and lack of promotion. Samsung participates in numerous advertising campaigns in China, and it is also sponsors for Sports games. Samsung also invites popular Asian celebrities to be featured in advertisements. While Apple also does that, but it lacks focus on a specific market segment and failed to tailor it’s business strategy to the needs and wants of customers.

I think the following promotional solutions for Apple can be adopted:

1) Adopting integrated marketing communications. Apple needs to promote more heavily in the Asian market. With the emerging Chinese economy, the purchasing power of consumers have also gone up. So it is essential to capture the value added from that segment. In order to keep the ‘exclusivity’ of Apple’s products, Apple can advertise in forms of sponsorships, partnering with famous celebrities so that they are willing to advertise Apple’s products within Asia.

2) Expand on the ‘exclusivity’ of Apple. One reason why majority of people still prefer Apple over Samsung Galaxy for instance, in North America market is because of the vast number of applications they can download on to their iPhone. Even though Samsung has been working on this too and have successfully made games like ‘angry birds’ and ‘fruit ninja’ available on Galaxy, Apple can encourage more software developers to come up with more games or useful softwares that are only available through App Store which can only be downloaded onto iPhones.

3) Another problem I have witness during my stay in China is that iPhone’s sim card is different from a normal phone’s sim card. In order to use an iPhone in China, you would need to go to a specialist and “cut the sim card”. Cutting the sim card as in cutting the edge in such a way that it fits in the phone. This might create problems for users since when customers are indifferent between Samsung or Apple, they might choose Samsung instead for the  sim card convenience. Apple  can fix this/ or already have, by signing deals with different carriers so that the card will already be cut and fitted in the phone.

Recently I read an article from Bloomberg regarding the market share of Apple’s iPhone is dropping in the Chinese markets, while Samsung’s market share is three times larger and is still growing. The article addresses a few issues which results in Apple’s lack of competency in the Chinese market,including Apple’s limited operator (Apple is only compatible with a small carrier company while Samsung is compatible with all carriers in China). I think all those issues have certain marketing issues that Apple should address.

Firstly, the carrier problem. Even though I am not so familiar with Apple’s distribution channel structure, but I assume it should be from producer (Apple), to retailers or just straight from producer to customer. Since China Mobile Ltd. is the largest carrier in China, Apple should take that into consideration when deciding the target for the vertical marketing system.

Secondly, the product itself have certain problems. Certain iPhones would have to be “unlocked” inorder for people to use overseas and in China. Some people might just get lazy and opted for the more convenient and trending Samsung phones instead.

Thirdly, Samsung is more involved in communities in China, and also have done immense amount of promotional work, including sponsorships, advertisements around the cities. While Apple also competes by having their promotional activities too, however, Samsung created that strong bond/connection with customers especially in the Asian community.

I think in order to change the situation, Apple should try and expand it’s carrier services. Even though Apple might want to create that exclusivity feeling by limiting it’s carrier service, it ignored the fact that the Asian market is different from the North American market. While Apple is dominating the North American phone market with it’s loyal customers, Asian markets is infiltrated with other rising Asian brands that Apple failed to see. So in order to compete, Apple needs to expand it’s carrier services.

*Article from:  http://www.bloomberg.com/news/2012-03-11/iphone-fails-to-gain-china-share-as-samsung-lead-triples-tech.html

Have lived in South Africa, Hong Kong, Beijing and Vancouver, I have been exposed to a great deal of different types and styles of advertisements. However, most of them are mainly the same. Recently I noticed that more and more companies are using Youtube as the platform to expose themselves to more potential customers, and using it as another advertising platform. For instance, the Youtube celebrity Michelle Phan first started off by making simple make up tutorial videos on Youtube, then after her videos went viral and popular, she landed a contract with Lancome. After that, she advertises Lancome by using their products in her videos, and also going to fan meets outside Sephora ( in front of Lancome).

I think using Youtube as an advertising channel is effective, and also reaches all sort of markets (except for countries where Youtube is banned). Using Youtube is less costly than putting up billboards, printing pamphlets etc., if there’s enough views, Youtube even gives out money as an encouragement and promote Youtubers to make more video.  Having said that, Youtube also give customers the right and choice of whether or not they want to watch it. Unlike the advertisements before video starts (the ones that you can’t skip), the video advertisements give customers the right to skip or watch advertisements that they like. Another example of successful marketing is Vat19. Vat19 is a USA based retailer, they help the manufacture sell products through their online store

Even though there are so many advantages to using Youtube as an advertising channel, I do see some potential problems with this approach.

1. Firstly, since customers can actually respond to the video in the comment section, and also rate the video with a “thumbs up” or “thumbs down”, it then relies on the customer to justify the effectiveness of the advertisement. Since all customers might have different taste in things, potential viewers/buyers might be influenced on what other people might say in the comment section or the rating for the video.

2. Secondly, since not all age groups are active Youtube users, it is still hard to reach all age groups and all demographic groups. Some people might be really busy and might not have time to watch Youtube video to see the product.

In order to solve the problem, I have come up with some plans that will help Youtube advertisers:

1. Disable the rating system and only leaving the comment section. By disabling the rating system, viewers can’t rate the video, so that the video will be very neutral and new potential viewers won’t be influenced by other people’s opinions.

2. Linking Youtube ads on Facebook, Twitter, Linked in, or other social networking websites. Since most people have at least 1 of the social networking account, by linking the advertisement video on the website, it will get more views by people spreading it around. Successful advertisement videos will even become popular and the firm can establish a firm customer base.

In conclusion, I think there is tremendous potential in using Youtube as advertising medium, however, there is room for improvement on matters discussed above.

I agree with you in that effective marketing can influence people in their purchasing decisions. I think people prefer branded products since they think branded products might have better quality. It is especially obvious in Hong Kong where branded products are everywhere. I remember back in High school there used to be tissue boxes (Kleenex) in every classroom. I find it really interesting when students would not use tissue that has no brand and would go to the next class room to get a box of Kleenex instead.

Are they really that different? I think it depends on the product as well, sometimes the no brand tissue really is the same as kleenex, then it’s just a psychological effect of “using kleenex is way better”. Sometimes, kleenex tissue did prove to have a better quality than other brands.

As I was reading the news today I realized Facebook’s new inventions topped the BBC news site again. Facebook itself being a very innovative new social networking platform, it has gone through constant changes throughout the period. First is the change in profile format, then it’s the introduction of newsfeed, online chat, more gaming applications, then very recently we can read news that’s been read by friends on Facebook.

Recently, Mark Zuckerberg introduced Timeline – a new Facebook profile format that allows users to track down the exact activity with respect to time. With the introduction of this new improvement, 60 new applications were also launched with it, and I would like to talk about the microenvironment of the company.

I think customers (or the users more likely) are a strong influence for Facebook in terms of marketing. As a popular online social networking site, if Facebook can satisfy the users needs and wants, then without any effort, existing users will send invite to people who haven’t used Facebook before, and hence, creating a chain effect. Unlike Twitter, MySpace, or Xanga, Facebook successfully differentiated itself from the other social networking sites as user friendly, and has a global reach. I have a twitter account but I rarely use it, mainly because I found Twitter is both confusing and not as user friendly as Facebook. Xanga has slowly being replaced by Tumblr and MySpace does not have as much new applications as Facebook.

Also, it is important to note that the CEO and founder/creator of Facebook also has major impact on the business’ Marketing. After a movie is done dedicating to the creation of Facebook-  The Social Network, Mark Zuckerberg has gain immense popularity. Every status or photo he liked will be liked simultaneously by all his followers.

Overall, I think Facebook has a very unique way of marketing (and marketing/having ads on the side is also their main source of revenue), and all aspect of Facebook can impact it’s marketing in some ways.

http://www.bbc.co.uk/news/business-16625159

My name is Randy Luo and I am born in Beijing China. I lived in South Africa for 7 years then moved to Hong Kong 5 years ago. I went to high school in Hong Kong and I pretty much live there right now. I like to travel around, and I have been to New Zealand, Australia, Korea, Thailand, UK, Vietnam, Malaysia, Singapore and Mauritius. I like doing risky things, I bungee jumped in New Zealand 3 years ago and I like those really steep roller coasters.

Marketing is everywhere around us, and a factor of whether or not we buy a product depends heavily on how it is advertised to the customer. So I think taking this course can help me understand more of the marketing schemes behind every company. Combining with the knowledge I received in other courses, marketing can enhance my entrepreneurial skills.

While I was in Hong Kong I can see advertisement in forms of billboards, posters and pamphlets everywhere. Since Hong Kong is also known for its skyrocketing housing price, the real estate sales representatives swamped the street when a new apartment building is done construction.

My favourite all time advertisement/marketing videos are from Vat19, a retailer company that takes another approach to marketing. Instead of sending out tons of boring advertising emails, Vat19 makes funny yet informative youtube videos, and has by far, received millions of views. Vat19 has also grown and expanded quickly from retailing products to a youtube hit.