Robert Hall's Blog

I was looking at an article on Trendwatching.com called Cash-less and it talked about how we are nearing a future where there will be no more cash, and everything will be bought through handheld devices that will be able to function like credit cards (no more debit or credit cards either!).

I found this to be very interesting, and I was considering what marketing implications it might have, and I have concluded that while Product and Price will probably not change too much, this technological change will have a big impact on Promotion and Place.

First of all, if you no longer need cash to buy stuff, then there are now even fewer reasons to shop at a physical location.  I predict that when this happens there will be a huge boom in the (already popular) online services.  All the online stores need to do is to improve their ease of access and quality of service and there are virtually no advantages that a physical store will have over an online one.  With phones that swipe like credit cards, it will be extremely simple to buy from your home.

Also, online store promotion will become a very big deal.  Right now, I rarely see ads for stores such as Best Buy or Safeway online; TV spots and ads in newspapers are much more common.  However, they will need to shift their marketing mediums to online, as many of their customers will be shopping there, and they will want to attract them.

Overall, I think if/when cash goes the way of the Dodo it will be fantastic for both the sellers and the buyers, as the convenience for the buyers will enable them to spend more, resulting in higher profits for the sellers.

This is a response to Monica Moran’s post about how Disney became popular and how it remains popular.

First of all I would just like to say that I as well am a huge Disney fan, having been to the theme parks half a dozen times and I believe I have watched nearly every single animated Disney movie.  Several Disney movies such as Alladin, The Lion King and Toy Story rank in my top ten favorite movies of all time.

Monica states that Disney became successful first through Mickey Mouse, and then through product extension strategies.  I am going to argue that these product extension strategies in fact came much later, and did not build Disney its successful empire.  Instead, the product extension strategies simply helped an already popular company.

One of Disney’s first cartoons did star Mickey Mouse (the very first being the silent short Alice in Wonderland), and this did gain Disney some recognition and popularity.  However, Disney did not immediately try to expand on this success.  Instead, they created a huge three-year project that, after it was completed, ushered in a new era of film, along with making Disney a household name.  That project was, of course, Snow White and the Seven Dwarfs.

Only after this massive success (and subsequent animated movie hits) did Disney begin to branch out into areas outside of film, such as the Disneyland theme parks.  This is a huge difference from immediately branching out after the somewhat small successes of Mickey Mouse cartoons.  By waiting until they were very popular, Disney ensured that they would not overextend themselves by trying to target outside of their market segment, and possibly fall into financial distress.

I believe that it is important to remember that before you think of expanding, make sure your foundation is very solid.  Product and service quality always come first.

I find that in an age where we are constantly bombarded with marketing efforts it has become very easy to quickly recognize advertisements and immediately tune out their messages.  Just like with many things in life, such as parental nagging and reminders to complete chores and homework, constant repetition leads to many people simply tuning out and ignoring what they have just heard or seen.  Our brains can only take in so much.

This is why I believe it is so important to begin all advertisements with something strange/funny/eye-catching.  In the following ad, the audience will probably tune out within the first five seconds, as it begins the same way many other ads do: a standard boring family eating dinner in a standard, boring room.

This stale scenario is played out in countless advertisements, and could therefore be categorized in many potential consumer’s minds as a “standard advertisement”.  Obviously, the marketers behind the product do no want their product to be viewed like this; they want it to be perceived as new, interesting or useful.

This next advertisement is a good example of an strong, attention-grabbing opening.

Not only is the commercial very funny overall, but it has an obnoxious beginning that ensures that the audience will actually be paying attention to what is being said, thus allowing the audience to absorb the message.

In conclusion, I believe that the most important aspect of creating a successful advertisement is to create a strong and original opening, otherwise the viewer tunes out and the rest of the message is lost.

My name is Robbie Hall and the reason why I’m taking this course is because it is a required course I have to take in order pass my second year at Sauder.  I am somewhat interested in what marketing is all about, but I would be lying if I said that I would take this course as an elective.  I have a small amount of job experience in marketing, as I have run my own piano teaching business and I had to charge fees and create a learning environment that would effectively attract customers.  I don’t really have a favorite advertisement, but if I had to pick one I would choose the famous Budweiser “Wassup” commercial from over 1999, as it’s the most memorable commercial that I have ever seen.

Budweiser’s famous “Wassup” commercial

Finally, two unique things about me are that I love to play and listen to music, and I absolutely adore animals, especially dogs.

I have learned many things in Comm299, but the most important thing has been that I actually enjoy job interviews and preparing myself for job applications quite a bit.  I originally thought that preparing documents such as resumes and cover letters and preparing for interviews would be both time-consuming and boring, I have found out through this class that I actually like crafting an almost-flawless paper and speaking clearly and doing well in an interview.

The greatest lesson that I have ever had was taught to me by my mother when I was ten or eleven years old.  I was taught that when you display emotions, even if you don’t actually feel the emotion, it can and will rub off on you and everybody around you.  For example, if you happen to be in a bad mood, you should try to fake feelings of happiness and smile a lot and look cheerful.  Eventually, what will happen is that you will become happy and forget about your bad mood, for the feelings that you are faking will become your real ones.  Because moods and emotions are infectious, this also affects other people, and one excited person can create an entire room buzzing with excitement.  This is why the emotions that we show are so important, as a single person can greatly affect the moods of others.

GM has been going through troubled times lately, especially seeing as how everyone has been focusing on their file for bankruptcy.  Obviously, it is never good for any company if the media is concentrating solely on its negative aspects, so GM devised a plan to use social media to reverse the situation and focus attention on their products rather than their problems.

The plan is further detailed here: http://www.findandconvert.com/blog/2010/gm-drives-with-social-media/, but essentially what GM has done is they have flooded social media sites such as Facebook, Twitter and Youtube with positive info concerning their products, such as video clips showcasing the improvements to their car safety and security system.

I think that this is a very good marketing idea, as social media just continues to grow larger and larger, and if they can garner a positive image on these websites then it should really help them gain popularity and redirect the public’s focus on their bankruptcy.  Since the implementation of this plan, GM has emerged from bankruptcy and is starting to look much healthier financially.  When used correctly, social media can generate a lot of positive buzz, which leads to the generation of income.

I was reading through the news the other day, and I came across an interesting article (found here at http://www.bbc.co.uk/news/business-11899792) that I thought related to our current project studying Bell’s decision to be the telecommunications sponsor of the Vancouver 2010 Winter Olympics.

As stated in the article, Pepsi is paying 3.8 billion dollars for a 66% percent stake in Russian dairy and fruit juice giant Wimm-Bill-Dann.  Pepsi plans on buying the remaining shares sometime in the near future.

I thought that this was a lot like Bell’s sponsorship of the Olympics because both companies are taking risks by expanding their target markets.  In Bell’s case, they were an almost exclusively Eastern Canadian phone company, and they decided that it was necessary for them to spend $200 million on a large sponsorship deal in Western Canada.  This is a risky effort at expanding their market to the west, as Telus currently dominates the west.

Pepsi’s acquisition of Wimm-Bill-Dann is similar to this because even though Pepsi has no experience with milk products, they are taking a risk in an effort to expand their current market.

I think that both are great ideas, as expanding your target market is one of the best ways to gain new customers.

A few days ago in Comm 101 we were discussing how many small businesses fail.  I found this very interesting so I decided to do further research on both the percentage of small businesses that fail and why exactly they often do not prosper.

According to this article, http://www.gaebler.com/Small-Business-Failure-Rates.htm, only two-thirds of small businesses survive the first two years, and less than half survive the first four years.

There are many reasons why these businesses fail, and I am going to focus on what I believe are the two most prominent: an inadequate business plan and a poor capital structure.

As we are learning in Comm 101 through our analysis of business plans, it is very easy to make many errors or leave out important elements of the plan, and these mistakes can lead to the financial failiure of the companies.  It is essential to consider all of the potential difficulties and problems that could arise when starting a business, and if these are not listed in the business plan then it could be very dangerous for the company.

Secondly, there is the importance of having a strong capital structure plan, which actually relates to a business plan.  One of the most common errors in this area is not having sufficient liquidity to sustain the company in times of trouble.

One of the most famous examples of a successful entrepreneur is that of Apple Computer Inc, which created the first programmable computer in 1977.  When Apple was first created, it was clearly a very entrepreneurial company according to the article we had to read for Comm 101 class 19, found here:

http://www.quickmba.com/entre/definition/

There are four main ways that entrepreneurial ventures differ from simple small businesses, all of which Apple achieved early since its inception: the amount of wealth creation, the speed of the wealth creation, the risks taken and innovation.  Apple was extremely successful in terms of the amount and speed of its wealth creation, as it was listed in the Fortune 500 a mere six years after its creation, proving that it had grown and prospered very quickly.

The start-up of the company was also very innovative, as well as very risky.  Apple created the first personal computer, showcasing its innovation, and, in order to give the company the necessary financial liquidity to function, co-founders Steve Jobs and Steve Wozniak sold their personal Volkswagen van and programmable calculator, respectively.  These men were clearly willing to risk a lot in order to start up their company.

Apple co-founders Steve Jobs and Steve Wozniak