Cultural Differences

As the world becomes more globalised, foreign markets present a wealth of opportunity for companies daring enough to venture outside their home borders. Many of them, when making this leap into new waters, make a crucial mistake; they fail to take the time to understand the culture of the people. This lack of complete information can not only lead to marketing plans missing their mark, but also leave the people with a tarnished brand association.

A Detergent company hoping to establish itself in the Middle East was once taught the importance of this very ruthlessly. This company already had its product in the market but sales were low. To capture a larger share of the rapidly growing market in the Middle East they planned an extensive marketing campaign. Their plan was centered on a simple advert which was published in magazines and billboards in the region. The advert was a simple comic strip made up of three panels. On the leftmost panel was a pile of dirty clothes; the middle one showed them being put into the washer; the rightmost panel showed a pile of clean clothes.

After the ads were run, the company saw a decrease in sales. The executives were surprised until they realized, far too late, that that the official language of the Middle East, Arabic, is read right to left. The ad made people think that the company’s detergent turned clean clothes into dirty ones.

"Thought on Flash"

Steve Jobs released a statement today addressing why the iPod, iPad, and iPhone do not support flash. He listed several reasons, including an argument that Flash is not an open system.

"Adobe’s Flash products are 100% proprietary. They are only available from Adobe, and Adobe has sole authority as to their future enhancement, pricing, etc. While Adobe’s Flash products are widely available, this does not mean they are open, since they are controlled entirely by Adobe and available only from Adobe. By almost any definition, Flash is a closed system."

This quote reminded me of our discussion in lecture about Walmart bullying their suppliers to work on Walmart's terms. It seems as if Apple does not want to be at the mercy of any other company, which in this case would be Adobe.

This was by far not the only reason Jobs provided for Apple's decision, and he said the other reasons were much more significant, but I wanted to share this one because it related directly to something we discussed in class. Here is a link to the full article if you are interested in his other points: http://www.apple.com/hotnews/thoughts-on-flash/

New Marketing Technology?

http://online.wsj.com/article/SB10001424052702304159304575184270077115444.html?mod=djem_jiewr_swwgn_042210

So I just recently found this article in the journal (link above) about how companies like ebay are trying to tap into the social networking hype to find data on potential customers through the friends of their current customers. There is this small startup called 33Across that analyzes data from social networking sites like facebook using tracking cookies that track how current customers and their friends interact with one another so that they can strategically target ads in the right places. For example, say an ebay customer shares a movie review with a friend. The firm then can place a cookie on the friend’s browser so that specific ads that might interest the individual will pop up when they visit certain sites.
As social ties can greatly influence a person’s purchase decisions (think about the whole word of mouth marketing channel), naturally, advertisers are all over this. Many critics have found this to be an invasion of privacy and I would have to agree. I think this is taking the whole idea of using CRM as a tool to gauge your customers’ preferences to a whole new level. CRM tools are ok as they are used to better serve customers and, more importantly, it has more transparency as customers usually are aware of such capabilities. However, this these tracking cookies are similar to predators who stalk you waiting for opportune times to attack with an annoying ad.

Tony Hawk Video Game

Growing up, skateboarding was looked down upon. The board was risky, bulky, dirty, and heavy. There weren't any parks in my neighborhood, and the few that existed outside of town were populated by people who enjoyed getting hurt. Tony Hawk single-handedly raised the sport to a new class of fame and appreciation. After completing the impossible 900-degree spin at a competition, there's been a growing buzz around for skating. Kids in urban areas have dropped their basketballs and footballs for the chance to speed through town on their boards. Even rappers now openly admit to skateboarding - it's the new "cool" thing.

In class we discussed how celebrities are often used to promote a product; and if this is done effectively, both the product and celebrity become synonymous in so that a brand is created. Tony Hawk and his team used this tactic when they launched the Tony Hawk Proskater Series. With each new release, the game sells out and becomes an instant bestseller. Yet, the graphics and gameplay (except for the new version where a board is attached to the system) are not substantially better than the first game. Tony has such a powerful brand in the world of skating that gamers will continue to purchase his games.

TIDE Detergent

The market for laundry detergent is arguably the most competitive internationally. There are thousands of different brands just in the United States alone. Each boasts 1-3x concentration, fresh scent, and downy softness after each load. Through it all, Tide continues to control market share. This can only be attributed to its creative commercials, constant "innovation," and product placement.

Each year, the commercials are more and more clever. Tide specifically targets rural, middle households, and ensures to include a motherly figure in each ad. Each year, it also adds a new type of Tide: Tide bleach, Tide color, Tide-to-go, or 2x Tide with Downy. The customization gives consumers an array of options to choose from. Other brands have one or two products and promote their cleanliness, but Tide reigns because of its differentiation. Tide detergent is also placed conveniently at eye-level in the stores I shop at. It is also difficult to miss because the bright orange sticks out from the others.

Shifting Media Preferences

I haven’t been home since Christmas, and I am really looking forward to going back for a change of pace and scenery. One change that I am looking forward to upon returning home is the change that will take place in my media preferences. Let me explain…

Right now, I couldn’t name a single movie in the theaters and I have no idea what songs are playing on the radio. I haven’t kept up with any TV shows, and I have even found it hard to keep up with the NBA playoffs that I once enjoyed.

Being in college has made my choice of media strictly a computer, and the same can be said for most of my friends. Even though I own a TV here, with a busy schedule it’s hard to watch it other than during meals or in brief breaks during the day.

This personal change in media preferences that I undergo as I travel from college to home makes me realize the challenges that marketers face when trying to attract college students. For example, does American Express stick to the same strategy for marketing the Zync card during the summers that they use during the school year?

The success that firms can have in marketing to college aged students during the six months that they are not at school could really differentiate and decide who ultimately succeeds in the market. Firms need to understand the extent to which college students, like myself, shift their media preferences in order to remain competitive.

ESPN

ESPN is the preferred channel for sports, and it has been maintaining its position as the best source for athletics for decades . This monopolgy is due to its marketing strategy, which continues to adapt to the ever-changing audience.

ESPN's several distinct programming zeros in on specific demographics. "ESPN Classic" is for the Sports fanatic -whether he be the dated viewer who enjoys reliving the '85 Jordan vs. Bird showdowns or the young tyke who wants to learn of Michigan and Notre Dame Universities' football program legacy. "ESPN U" is targeted to the college student who only cares to keep up with his favorite local sports teams. And the main ESPN channels, "ESPN1" and "ESPN 2" are for the general populus. The introduction of Espn 3 is much needed with the growing fanbase for car racing and international soccer.

Over the years, ESPN has intentionally changed its programmings' sportscasters and showstime lengths to cater to the viewer. In the past, sportscasters were mostly middle-aged Caucasian males. Today, they each come from diverse backgrounds - people enjoy seeing individuals who actually look like them deliver the news. Also, highlights and clips are shorter in length and they are repeated several times more over the course of a 3-hr show. ESPN's research revealed consumers were on-the-go and needed updates quikcly.

The color scheme is also rather provocative. The dark red and black colors appeals to athletes because it gives ESPN's interface a rugged, yet modern and tech saavy appearance.