Month: October 2010

To what extent is subliminal marketing ethical? This issue has generated controversy over the years yet subliminal messages are still present, whether trying to sell toothpastes or trying to elect presidents.

I watched this video on  subliminal advertising and it fascinated me. I assumed it is credible. It is truly amazing how many images we keep in our minds and how much it can influence us.

It made me think how psychology plays such a huge role in marketing and how vulnerable we are to these subconscious messages.

I’m sure many of you are aware of what  Groupon is and know what kinds of business they proportionate but what many of you don’t know is that it is not always rainbows and butterflies, at least not for everyone. For those who dont know Groupon, Groupon is a website which puts together a deal sometimes over 50% off of a good or service and they ask that a certain level of people is achieved so that the deal can be made. The result is, people get good deals with amazing discounts, GROUPON get 50% comission (which is a lot) and the seller get the other 50%. By setting the minimum limit Groupon guarantees a high number of customers for the company offering the service or good. I have to say i think it is a very smart idea to come up with something like Groupon. I would have loved to have thought about this idea. Unfortunately, I was reading a blog the other day and I saw how not everyone from this, at least not everyone who is aware of the possible risks.

http://www.retaildoc.com/blog/groupon-worst-marketing-business/

The Blog stated that Groupon was the worst retailing strategy for someone’s business. Personally I agree. How can you agree to sell your good or service for more than half of its value? I mean, ok you will make a lot of money if many people buy but there are so many costs and variables that need to be considered. Plus, you have to give 50 % of your profit to Groupon! FIFTY PERCENT! The seller ends up with very little. I mean, a whole economic case study and marketing study has to be made to aknowledge the costs and benefits but it seems pretty clear that some businesses are not going to be better off by Groupon.

Today I visited the Groupon website and realized that they were selling the UBC CANOPY WALKWAY in the UBC botanical gardens. I thought to myself, ” WOW, I went in there for free and people are paying 11 dollars per person to get in there. 1400 people already bought this deal meaning 15400 dollars in cash which is 7,700 dollars in clean money to GROUPON! In one day, in ONE city. Good job to the guy who created this website…..

As I was reading over one of my friend’s blog I came  across an interesting concept which has been implemented in countries all over the world. It’s called “Dinner in the Sky.” Where a group of people have the opportunity to enjoy dinner on a structure hanging at about 40 meters.

https://blogs.ubc.ca/tszkitng/

http://www.hakuna-matata.be/ditsvid/swf/a_video_worldpressmovie.phpery

As opposed to Kit, I was very curious at first and thought it was such a cool concept to have dinner while enjoying a beautiful view. As I watched the video however, I realized that the concept proposed is not very lucrative and offer several flaws. First of all we have to consider the fact that the dinner is proposed for about 20 guests. In order to come up with such a structure, keeping in mind that it is temporary, the costs become very high. Therefore we can infer that the price of such an experience becomes very high. Secondly, this “Dinner in the Sky” concept has been seen by many customers as something new and creative. It has caught people’s attention and therefore becoming a world wide trend. But just like every trend cycle, the returns will not be very positive especially since there is a lot of indirect competition. Many  restaurants around the world offer the same experience however in closed environments, which for many people may be seen as more comfortable.  In Vancouver for example, The Top of Vancouver Revolving Restaurant provides its guest with an unforgettable experience of having dinner in a very classy environment while the customer also has the opportunity to enjoy the view and a great dinner. The client does not have to deal with unpleasant feelings that the “hanging table” might offer such as cold, safety issues, physiological needs (restroom), and even the fact that one has to stay in the chair with seat belts while eating.

I think there are a lot more considerations that need to be made and several different strategic approaches have to be taken in order to turn the Dinner in the Sky into an actual profitable business otherwise it is just another soon to be forgotten trend.

Brazil has quite often been associated in the international community as the country of the beautiful beaches, the beautiful women and the nation of soccer. However an internal fact that has become popular knowledge to the Brazilian population is that beer is quickly associated to half naked women. Wherever you go to in Brazil, in the streets, shops, supermarkets, outdoor you will always see a half naked model either holding a can of beer, drinking beer or doing some sort of sensual pose along with the beer. I remember from my high school days that is always generated a lot of controversy between the population. Conservatives argued that it generated bad influence to the youth while beer companies argued it was the best way to promote their products. But is it really the best way to promote the products? I mean, I understand that the population easily associate the beer brand with a “sexual object” leading to the conclusion that that particular product is gonna generate them great utility. I understand both sides points of view but I have to disagree with what the beer companies are doing. There are many negative effects that will be generated by this kind of practices. Fortunately, in the last few years, it seems that the beer industry has adopted other methods of advertising their products which also generates positive brand recognition.

Author Thuller discusses some very interesting points regarding this matter. He caught my attention with some very well planned commercials and great insights.

http://novanuvem.blogspot.com/2010/05/cerveja-precisa-mesmo-de-nudez-e-sexo.html

I guess we are in right track. The Brazilian beer industry is finally moving on from the cheap and sexist commercials.

This is one of the videos presented in the blog by Thulles which I found pretty amazing.