Tim Martiniak's Blog

This is a reflective blogpost regarding the marketing plan assignments and the team video.

We did a good job delivering the third part of our assignment, namely the marketing video that was designed to explain our recommendations regarding an improved marketing mix for our chosen product, the Tata Nano. We started our work early, our brainstorming sessions were productive, and our final plan for the video was well balanced: three different elements, one of them a timelapse of the Lions Gate Bridge (filmed by Alexander and I), the main part being whiteboard drawings (drawn by Hye-Won and Julie), and the last part being short interviews to make the video more entertaining. Daniel and Simon did some work writing the script, and I did most of the editing for the final video.

Looking back at the work we’ve done, I feel that it was definitely the right decision to choose a company we knew nothing about – Tata Motors. It was refreshing to work together on such interesting articles (who would’ve thought that they sold a car that suddenly goes on fire?). Our team had a fun time together, and even though some of the workload might have been uneven (I did spend a lot of time on the project, but I am the only one to blame for that..), I feel that we all contributed a lot to our final result. Our conclusions are all valid and I would not be surprised to see Tata following some of the recommendations we came up with, albeit not because of us but rather because they really make sense. Rebranding the Nano was experimental, but highly interesting from a marketing standpoint. The only thing I would change is perhaps the focus on a specific target segment. Giving us more freedom in choosing what to focus on for the marketing mix would have made the project even more interesting.

This blogpost comments on Sameena’s post about Gillette’s “What Women Want” marketing campaign.

Despite running the risk of offending half of the human population, and acknowledging that this comes from a terrible male chauvinist standpoint (which does not at all reflect my own opinion), I think that the “meme” on the right is an appropriate introduction to the topic Sameena found for one of her blogposts: What Women Want. Generally, one might assume that in typical relationships, men are annoyed by the shopping habits women exhibit. Gillette’s marketing campaign, however, builds on the observation that the men’s very own shopping habits are heavily influenced by women.

Sameena correctly identifies Gillette as promoting metrosexuality (men enjoying shopping and taking care of their appearance, etc.), however, I don’t think that Gillette redefines gender norms. The campaign (see the video below) is essentially an attempt to promote a Gillette razor for men, because it achieves exactly what women want.

https://www.youtube.com/watch?v=CDC29jLmlOw

For this product alone, women clearly do not represent a target market segment. Yet, they are used in the commercial because men respond well to such tactics. Thus, Gillette positions the products as appealing to women, thereby creating demand for it from men. Coming back to how men dislike women’s shopping habits and preferences, they clearly do not dislike them when linking to their very own sex-appeal.

This post comments on Lydia’s blogpost about Lowe’s social media marketing campaign.

Lydia cleverly identified Lowe’s campaign as one of few highly successful marketing efforts in the world of social media. Lowe’s, America’s second-largest chain of home improvement (DIY) stores, launched a number of so-called “Vines”, i.e. 6-second videos, that show smart lifehacks and cool tips on how to improve one’s house or apartment. The campaign was praised to the skies by both Lydia and the press. My personal favourite: a video about removing broken light bulbs using potatoes!

The fact that the campaign was so successful (and even more so from a business standpoint, as it only costs $5,000) is in my opinion due to the fact that Vines are mostly, and for some people exclusively, used for trivial and funny videos with absolutely no practical or functional value. Lowe’s changed this by providing something useful for this platform. Users embraced the new relevance of Vine videos. The 6-second clips are real life-lessons aimed at a generation Y, using social-media every day without having much experience in the DIY world.

Because the world of social media is so inter-connected, hashtags describing the campaign #LowesFixInSix quickly spread to other platforms such as Facebook and Twitter. Lowe’s campaign was ultimately successful in spreading brand awareness among those young and trendy customers, possibly an up-and-coming target segment for the company and the home improvement market.

I’d like to leave you with one last example of the genius of #LowesFixInSix here.

The Canadian British (sorry Vancouverites, but contrary to popular belief, they’re not from around here) cosmetics company Lush offers a wide range of body and hand lotions. One in particular, however, is noteworthy from a marketing standpoint: the Charity pot. Lush states that the entire purchasing price of the moisturizer goes to support one of the charities in the grassroots program (a compilation of smaller charities around the world). Also interesting: instead of supporting the charity once the purchase was made, Lush already paid them and is now selling the Charity pot to recover costs. Have a look at their Canadian website for more info.

The Charity pot is part of a larger strategy that sets out to position Lush as a brand with an exceptionally positive impact on the environment, humanitarian cause, and an ethical approach to doing business. In stark contrast with my previous post that covered Audi and the topic of green-washing, I’d want to commend Lush – they really do seem to do a lot of good stuff. Here’s their official explanation of the Charity pot:

https://www.youtube.com/watch?v=Zor8ZQf52yE

What impressed me most was the smart way of including ethical campaigns into Lush’s every-day operations: the company chooses a couple of interesting campaigns every year that are featured not only on their website, but also in-store when making a purchase. The one time I actually went and bought something at Lush, the cashier asked me if I wanted to sign a petition to stop animal testing. A quick signature goes a long way – and leaves me with the feeling of having done something good by entering the Lush store (and of course buying a Lush product) that day.

All in all, these are excellent examples of a well-thought-out marketing strategy centered around going green, going organic, going ethical, etc. under the slogan:

Happy people make happy soap!

This post comments on a post found on the “influential marketing blog” by R. Bhargava.

Who wouldn’t want to have a phone that has a battery life of…

Yes, you’re right. Days. Not hours. Not minutes. Does that even work? Admittedly, you’ll have to cross off a couple of items on your wishlist. Such as surfing the web, these things called ‘apps’, e-mail, etc… recollection to better values should be the motto. You’ll still be able to call people, text, and take photos. What else do you need, really? The Nokia 515 offers exactly those things, and looks pretty cool as well:

The real question is, however, why Nokia’s marketing team doesn’t focus more on dumbphones. The latest post on R. Bhargava’s marketing blog, a professional speaker and professor in marketing, talks about exactly this issue. Dumbphones could become a stepping stone for Nokia to get back into the black. Nokia has not been doing well in following the smartphone race (compare: “how Nokia lost the smartphone race”) and might do better in targeting a different market segment: namely those in need of a phone. Full stop.

Off the top of my head, I can think of numerous people who don’t need their phone to be a gadget with loads of smart features. Be it seniors, those among us who prefer to stay offline for the greater part of the day, or simply price-sensitive users, all of whom might prefer to buy a Nokia dumbphone. From a marketing perspective, I believe more advertising could do wonders in terms of attracting buyers for the 515. Surprisingly, the website does not even highlight the battery life… instead, it focuses on design. This is not misleading, as the design does look good; however, no one will opt for a dumbphone because of the design. Rather:

• functionality
• easy-to-use
• battery life

..those should be the main factors. Nokia, please have a word with your marketers.

This is the first post counting towards the course Commerce 296 – Introduction to Marketing.

It is commonly accepted practice for companies to stretch the truth – and only very few do not engage in this behaviour – when advertising a product. I did have this in mind when watching Audi’s commercial (see below) that aired 3 years ago. What the commercial actually did, however, went far beyond my expectations in terms of exaggeration. Although the ad is from 2010, none of its relevance is lost today.

The commercial describes how a “green” police is arresting people for offenses pertaining to the environment. The one and only way to avoid the power of said police is to drive an Audi with a “clean” diesel. A seemingly amusing and witty idea, it left a somewhat bitter taste. Does Audi seriously suggest that a “clean” diesel is better than, say, taking the bike? Walking? Driving a vegetable-oil-powered vehicle, as was shown in the commercial? The message Audi sends to its potential customers is of a “feel-good” nature: drive an Audi and feel as though you did something great for the environment (such as using a compost bin, or refusing plastic bags?).

I believe this to be highly questionable. Is it ethical to present a car – so harmful to the environment – as an environmentally-friendly product? Buying a car should not make you feel like you did something good for the environment. Hence the term in the title: “greenwashing”, describing the deceptive use of marketing to present a product as environmentally-friendly.

Don’t get me wrong, I think Audi produces great cars. Nonetheless, a little more honesty would not hurt. Marketing ethics deals with such honesty issues in advertisements, but we lack appropriate legislation that prevents greenwashing. A step in the right direction would be a gentleman’s agreement to stop obvious greenwashing (e.g. as is in place among European companies that prevent comparative advertising).

https://www.youtube.com/watch?v=qIz-su6ueoI

As part of a company’s CSR (corporate social responsibility) efforts, specifically in industries that have a heavy impact on our environment through greenhouse gas emissions, management has the opportunity to “offset” emissions, thereby becoming more environment-friendly. This is a huge business opportunity and James Tansey, CEO of Offsetters, is at the forefront of the “offsetting industry”.

First and foremost, Offsetters offers projects that reduce greenhouse gases around the globe as compensation for the emissions by companies that buy their services. For example, Harbour Air markets itself to be carbon-neutral through Offsetters. As the graphic below shows, projects such as reforestation financed through the airline compensate for the high carbon dioxide emissions:

An article posted on “Business in Vancouver” projects that the offsetting industry will most certainly gain popularity in the future. The article states that because of new legislation requiring certain companies to invest in offsetting projects, the demand for services offered by, e.g. Offsetters, will increase.

In my opinion, this might not even be necessary; in the long run, as more and more consumers become environmentally-aware, they will naturally turn towards products and services that are certified to be environment-friendly, e.g. through carbon offsetting by a renowned company. This is also the competitive advantage of Offsetters, as they are well-positioned in the market. Following James Tansey:

“we’ve got that depth in the regulated markets that very few people have.”

The BusinessInsider published a very interesting article dealing with challenges that entrepreneurs face not before the start-up but once their company actually grows and affairs become too large to be controlled and overseen by the founder.

The author of the article quotes Verne Harnish (founder and CEO of Gazelles, a strategic planning consulting company) who states that entrepreneurs may reach a point where they want to return to

“just them and their assistant working out of a garage…”

When our two guest lecturers Amielle Lake and Eric Carlson told their stories and asked us to think about whether we would like to start our own business in the future, they enquired into the abilities required to be a successful entrepreneur. Apart from the classics such as creativity and a desire to “get things done”, the article above states that one must also be able to “let go of things”. Personally, I know that this would not be easy for me at all. I like to make sure that things are done they way they should be and I find it hard to let others do tasks if I do not trust them or cannot make sure they are done properly.

But who knows? Maybe one day I will find myself creating my own company, following a vision, and eventually being able to let go of things, capable of saying that I am satisfied with what I have done:

https://www.youtube.com/watch?v=T6MhAwQ64c0

Nearly everyone I know has a bank account, and most people own a smartphone – and those brave enough use their smartphones to access their bank accounts! Banking apps have become an important part of everyday banking, revolutionizing the way customers interact with their banks. In a recent article on ZDnet.com, the author describes how banking apps are so important nowadays that they may become the decisive factor for a consumer of which bank to choose. Just like Carson Woo said in his lecture about Business Technology Management, these apps have become a way by which BTM can work together with, say, marketing, to improve sales.

From my own experience, banking apps vary greatly in content. My bank in Denmark – Danske Bank – has one of the most innovative and award-winning banking apps available (for free) that allows customers to

• access chequing, savings, securities and custody accounts with all transactions of the previous two years
• pay bills electronically
• transfers to Denmark and abroad
• convert currencies
• contact the bank directly
• find ATMs and nearby branches
• buy/sell stocks and securities, as well as access market data

Such an extensive banking app may well be expensive in development but proves to be a great competitive advantage for the bank. Just like the author of the article states:

“it can be the little things, including the ability to add new billers and payees directly through a smartphone…”

These may lead to customers switching banks. For example, the banking app of CIBC in Canada is – from my own experience – not even close to what Danske Bank offers its customers. CIBC limits the app to accessing account transactions; their banking app has thus definitely potential for improvement.

(Notes from Oct.30)

Financial markets allow a flow of capital from players that have a demand for money  and those that supply money. Investors supply capital to companies (or government, etc.). In between these two are financial institutions facilitating this flow of money, e.g. banks, pension funds, stock markets, etc… Some skills needed in order to be successful in this environment are:

1. Mathematics, in order to quantify the characteristics of an investment and to deal with uncertainty;
2. Analytics, to make sense of a problem (formulate, investigate, ‘coming up’ with the problem that is to be solved);
3. Communication and ‘people skills’, understanding how to manage relationships;

Stockholders have cashflow rights in proportion to holdings of the stock as well as voting rights in the company. Communication is important because it is important to know the future cashflows of the companies (this influences the stock value: stocks become more expensive as future expectations rise).

Bloomberg is a media company delivering information and content to investors (or traders, brokers, fund managers, etc.). They provide details about stock indices. An example for such an index could be the TSX – Toronto Stock Exchange – an index whose value indicates the price of a value weighted portfolio (weights according to market cap(italization) – defined as the total market value of shares issued by a corporation). A positive change indicates that people have revised upwards their expectations for future cashflows from companies (in this case Canadian companies).

If looking at one specific index, one can see the market cap of sectors of the (Canadian) economy. Example for TSX: Financials are a large chunk of the stock economy, oil and gas as well as basic materials (gold, mineral, etc.) are the second largest. 249 members are currently listed on the TSX.

Remember to set up a Bloomberg Account in the Financial Analysis Centre.