11/17/13

Marketing: Being just the opposite of want businesses want?

This blog refers to Xuan Zhou’s blog “I s advertising always a good behavior?” (https://blogs.ubc.ca/sophiezhou/), which argues about Junk Food’s ads not being responsible to tell its true information to customers. It reminds me of many other businesses which intend to make profits by making deceptive ads.

Early this year, Coca-cola introduced  a new product line “diet soda” and produced ads touting how easy it is to work off calories by drinking a cup of Coke. As marketers’ point of view, they expect this health campaign help build a good image for the company and get more health-conscious consumers. However, as many researchers indicate that sugar-sweeten beverage contains nothing nutritionally beneficial but often leads to many diseases such as obesity, the company’s health campaign is doomed to failure.

How comes Coca-cola’s marketing be just the opposite as the business want?

While the starting point of Coca-cola is good since consumers are now more health-conscious than ever, the fact that the company cheats its customers by providing untrue information of its products makes it failed.

I agree with Xuan Zhou that for businesses, “being social responsible for the whole society is much more critical than making money.” Negative Controversy brings by deceptive ads is the one thing that businesses would never want. Not only would they risking losing loyal customers, but the diminished trust in business lead political leaders to set policies that undermine businesses’ operation.

It’s good to see that business are more aware of creating social value as an important way to succeed, but deceptive marketing is never a smart way to achieve it.

Sources:

Soft drink makers accused of using “Big Tobacco Playbook” (Aug 19, 2013) Retrieved Nov. 16 2013 from CBCNEWS: http://www.cbc.ca/news/health/soft-drink-makers-accused-of-using-big-tobacco-playbook-1.1362598

10/7/13

Cultural difference is a main task for a company to enter a new market

China is considered as one of the world’s biggest markets with great potential, not only because of its large population, but also because of its rapid economic growth. So, for those world giant businesses, expanding their markets to China has always been one of the major tasks.

However, in e-commerce, even one of the giant companies eBay have withdrawn from Chinese market. Why? That is because those business models that can survive in China are totally different from the business models in foreign countries, especially the Consumer Relationships part.

For example,  the auction model in eBay stop people from talking, while the selling mode in Taobao encourages communication between consumers and merchants, which caters to Chinese customers’ nature of bargaining. In addition, in the auction model, the product which has been there for the longest time will sit on the top of the website, while in Taobao, it puts the newest products on the top.

In my point of view, in order to enter a new market, one of the most important things to consider is to understand the local culture and consumer behaviors. Different business models are required for a company to survive in different environments.

Source:

David W. E-commerce Bigger in China than United States (2013 Sep. 19) http://edition.cnn.com/2013/09/19/business/on-china-alibaba-e-commerce/index.html