Classical and Popular

There exists variety of products in the marketplace in order to satisfy consumers’ expectations. And most products can be classified as classical or popular.

By definition, classical products are those products that stay in the market for generations and have evolving visions as time moves forward. Also classical products possess high brand recognition among consumers. For example, iPod is the classical product introduced by Apple and still being sold in Apple store. I still remember the time in high school when my friends and classmates craved for the iPod especially for the innovative design in MP3. And for now, the iPod still contributes to the corporate revenues for Apple. Additionally, consumers tend to tell the name of Apple if someone talks about the iPod.

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(Original Source: http://www.popsugar.com/tech/How-Identify-Your-iPod-GenerationModel-131827#photo-131827)

Compared to iPod, there also existed music player named “MD” with high quality when I was in middle school. And the MD player was very popular and sold for substantial quantities at that time since it has less weight than CD player, and also it is smaller than CD player. Consumers believed that MD player could be the future trend to replace CD player for the next generation. However, SONY’s MD player was challenged by the introduction of MP3 player since consumers could download high quality music for free from the Internet in China. And MD’s disc was designed specifically for MD player and sold for relatively high prices in China. As a result, the MD player only thrived in the market for a relatively short time period in China, and then faded away in history.

Sony MD

(Original Source: http://www.zzounds.com/productreview–SNYMZM200)

It is important for modern corporations to understand the current market structure and identify the potential trend in the industry. By doing so, corporations could develop demanding products for consumers and take initiates to respond to the future trend. Also, corporations should pay attention to those classical products which carry special memories for particular customers. They should try to develop certain strategies to renovate consumers’ experiences. Brand image could also be enhanced through the process of developing classical products.

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Permission Marketing

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(Original Source: http://www.amazon.com/Permission-Marketing-Turning-Strangers-Customers-ebook/dp/B000FC0SSC)

Permission Marketing

Recently I am reading the book named permission marketing written by Seth Godin. We all know that the traditional marketing strategy that the marketers will use is by approach as much potential customers as possible. With the development of the technology, the cost of reaching a new customers is lower and lower. And marketers not only can use the email and internet, but they can also use TVs where the major advertisement is played on. By doing so, they can promote their brand awareness. But according to Seth Godin, in today’s market what matters more is the brand loyalty. It can help create word of mouth. Unlike the traditional marketing ways which are interrupting people and make them feel that the marketers are wasting their time.

The permission marketing strategy is a way that develop the relationship with the customers. And also let they feel the needs to be marketed. Besides that, the permission marketing also reorganize the production and selling methods and to define the business model as well. In order to better sort customers information, companies like amazon gained a large competency by recording and analyzing customers consuming behavior. Even though it were not the only book selling company in the United States, they have the data to let them know that which book is more popular among customers, which book is more preferred by the certain customer, and how much customers are willing to preorder the book. Therefore, for small business or start-ups, it may not be a smart way to adopt the mass marketing. It is better to create a loyal customer base first, and then promote the service to customers instead of costing extra more to reach a new one.

How to Use YouTube in Marketing

Founded in 2005, YouTube has developed quickly these years. It has even become the second largest search site after google. Users can create and upload video freely on the site. And with the large viewer base, companies don’t have to spend millions of dollars to reach the potential customers. However, how to make the video that the companies made can have impact on customers. And what kind of content should a YouTube video have has become an issue that confront many companies.

For those videos that already has amassed huge watching record, they usually have certain characters such as funny, unique or creative. But for some companies that the marketing goal is to let people know about their brand and product, usually their videos that are informative will not attract the viewers to watch. The solving method is trying to make the videos short and funny. Hence, the viewers don’t feel the pressure of being forced to watch advertisement. The other method is to create as much tags as possible to the videos that companies create. This will help the videos being searched. The third method is instead of depending on one video goes popular, companies can upload series of videos. Therefore, the chance of one of the video get popular become larger.

In the end, companies can also use the YouTube analyzer to help determine the factors that prohibit or contribute to the viewers’ activities. It could help determine through which channel that the viewers are coming from, and when will the traffic of watching the video occurs. By combining such activities, companies can develop a better video marketing strategy through YouTube.

Outcry of ‘Kids Eat Right’ on Kraft

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(Original Source: http://www.wsj.com/articles/eat-right-meltdown-for-kraft-singles-1427152818)

The collaboration between a food company and credible public organization is a kind of marketing strategies. With a certain logo of credible pubic organization on products, food companies will have an easier access to customers’ trust. However, such collaboration has been questioned because of a recent controversial agreement between Kraft Foods Group and the Academy of Nutrition and Dietetics.

In the original agreement, academy allowed Kraft to put “Kids Eat Right” logo on packages of Kraft Singles, in order to raise people’s awareness of dairy, vitamin D and calcium deficiencies in kids’ diets. In exchange, Kraft agreed to provide financial support for the academy’s scholarships, research and public education initiatives. It sounds good, but the deal triggered an outcry within the academy and outside it. Even though academy never intends to serve as an endorsement, customers would see the logo as an implied endorsement. What’s more, the partnership between Kraft and academy involves donation and sponsorship, which taints the academy’s credibility as a resource on food and nutrition. This is because with such relationship, the public health and nutrition group would be deeply influenced by its sponsor and take risks for it. Under this situation, it is hard for public to take the academy’s words seriously. Because of strenuous opposition, Kraft and the nutrition group called off this collaboration.

“The episode is the latest example of how processed-food makers are struggling to adjust to shifts in consumer attitudes toward health and nutrition and growing distrust of established companies in the industry.” (Wall Street Journal, April 1, 2015 | B3)

In addition, as natural and organic foods grow fast in recent years, the situation becomes harder for processed-food makers like Kraft to keep and expand market share. I think collaboration with credible public organization to develop and improve healthier recipe is a good choice, but they need to reach consensus on the potential dangers of endorsement and figure out how to avoid it. In my opinion, it is important to make all aspects of the agreement transparent, so that reassure customers. Without the doubt about the relationship, food companies and public organizations would be more credible.


Reference:

http://www.wsj.com/articles/eat-right-meltdown-for-kraft-singles-1427152818

Kraft, Nutrition Group Dissolve Marketing Deal – Wall Street Journal, April 1, 2015 | B3

Attributions of Apple’s Success

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(Original Source: breakdown-of-the-success-of-apple-infographic)

Apple has been able to develop itself as one of the leaders in the manufacture of the mobile phones, computers and MP3 players. Success of the company can be explained from various perspectives. From one point, Apple can attribute its success to the successful leadership under Steve Jobs (Isaacson, 2011). On the other hand, the success of it is linked to the accurate and adept marketing strategies that the management has adopted over the years. This post will focus to evaluate the different perspectives on the success of Apple with the aim or to provide the distinction between the two contradictory perspectives.

Steve Jobs became the ultimate representative of Apple. Any mention of the company was associated with the later business leader. Therefore, his input was important. The management style adopted by Steve was the main source of success. One of the management perspectives that the leader adopted was a frequent emphasis on quality (Isaacson, 2011). The company is renowned for the creation of products that are different from the rest. Due to this aspect, Steve was perceived to be the main driver for the company. Making of the business ideas that have made the company a success is the role of the former leader.

Steve Jobs also assumed the maverick approach to the business. The manager is lauded for the introduction of the touch screen technology when the rest of the companies were against the development (Isaacson, 2011). But with the development of the technology, the rest of the companies adopted it. Hence, Apple gained the first move advantage over the other producers in the mobile phone sector.

Marketing strategies of Apple have also made it more successful than other companies. However, the strategies did not operate in isolation. Given the personality of Steve Jobs, nothing could have been conducted in the company without his veto. Therefore, he is also responsible for the development and widespread application of the marketing strategy currently used by the company (Isaacson, 2011).


Reference:

Isaacson, W. (2011). Steve Jobs. New York: Simon & Schuster.

Tencent Likes Facebook’s Success

By the end of 2014, the number of WeChat users has reached 500 million, with a sharp year-on-year growth of 41%. Having such a huge amount of social platform user base, Tencent, the Chinese Internet giant company, is looking for a growth to support the mobile social platform. Pony Ma, the chairman and CEO of Tencent, suggests that Tencent will regard its international counterparts Facebook as example, and improve the liquidity of the mobile social networking platform.

“Compared to the American social networking platform Facebook, advertising income takes a smaller proportion of Chinese Internet companies. Tencent will devote itself to improve the accuracy for advertising, make more effectively matches between users and advertising, and finally realize the growth of this business sector.” Pony Ma said at a conference in Hong Kong in 2014.

A recent data disclosed by Tencent shows that the net profit of Tencent in 2014 is 23.81 billion yuan, increased by 53.59% of that in 2013, and the annual income is 78.93 billion yuan, increased by 30.6% of that in 2013. The game business still occupies half of Tencent’s income. In the fourth quarter of 2014, Tencent’s network game revenue was 11.964 billion yuan with an increase of 41%, accounting for almost 60% of the total revenue of this quarter. Online advertising revenue was 2.627 billion yuan, only took 13% of the total revenue of this quarter. By contrast, the advertising revenue of Facebook in the fourth quarter of 2014 accounted for 93% of the total income which is $3.59 billion, with a 53% increase of that in 2013.

It is noticeable that the mobile games platform of Tencent performed well with an annual income of 11.2 billion yuan. In 2014, the market size of Chinese mobile game industry is 27.6 billion yuan, which means that Tencent holds half of the entire mobile game market.

Tencent has a complete game development and distribution system, other channels can hardly be the rivals of Tencent from the scale. However, the future competition of mobile game will be a more comprehensive competition with multiple indicators, and niche games will continue to rise. As a result, in order to cooperate with WeChat and QQ users, it is difficult for Tencent to develop too distinctive game. Also, the fact that some mobile game manufacturers joined in the market, as well as some mobile game companies went public, will bring a significant impact to Tencent on the development in the vertical field.

Both social network advertising and video advertising are the keys with increasing investment in the future. In 2014, Tencent has made great progress in the mobile version of the QQ space and the public accounts of WeChat. It will invest more resources in the social ads in the future. WeChat’s “moments” will be a highlight of Tencent’s future advertising income, although there is no precise estimates of numbers for the income, the growth of 100% is likely to happen.

As for the video content and advertising, Tencent is very fierce. Last November, Tencent video announced that it became the sole official authorized Internet video playback platform of HBO cable Network Company in Mainland China. Moreover, this January, Tencent announced it signed a five-year exclusivity agreement with the NBA, and obtained the NBA network exclusive rights for the next five seasons, with a $500 million contract amount.

For the future expectations, Tencent points out that it will balance the user experience, and at the same time, it hopes to expand its customer base by adding more mobile advertising inventory and optimizing advertising tools, in order to promote the effect of advertising business.

tencent

(Original Source: http://www.wsj.com/articles/tencent-likes-facebooks-success-1426746064?KEYWORDS=Tencent)

Choosing the Right Advertising Strategy

With the world becoming more and more smaller, and people become more connected, the marketers want to infused the advertisements as much as they can through all possible channels. However, with the TV is now being bombarded with lots of different advertisements, most of them didn’t really achieve their goals of advertising.

I think for business, there are several questions that they are facing when it comes to adopt a marketing strategy. First, they not only have to assign the right budget for the marketing department for the campaign, but also need to figure out that which channel should be used for marketing as well concerning which channel their competitors are using. The other problem is that how to use a right content in the advertisement. For business that has already gained the massive market share and has a very good brand equity, they have more capital resources to use for advertising. Therefore, investing in the advertisements that have a story in it or a story about supporting some philanthropic event is good for them. But those advertisements are usually very expensive. One great example is the advertisement of Budweiser. Budweiser runs on the super bowl. It is a story of the relationship between a man and his pet. The advertisement triggers the emotions of most of viewers and make them feel very moved. However, since the product of the Budweiser is already known by its customers, the advertisement does not have to focus on the features of the products anymore. For other business, the effect of the advertisements campaign rely on the frequency of the advertisements being played. Hence, it is essential for the commercials to includes the features of the product in the advertisements. Also, the customers can know the product better, and usually the advertisements that just focus on the features of the product don’t have to spend much on fancy story telling in the advertisements or hiring a well known people for advertisements for high price. Another issue is wether to use TV or to use social media as the advertising platform. Social media have some benefits that TV didn’t have. One is to social media can help company interact with customers more quickly and directly, and the other one that the social media have is that social media can break the limitation of country boundary. It can reach to those potential customers that the company didn’t targeted as it planned. So in general, choosing the right advertising strategy is not only good for the advertisements, but can also help save the costs for the company.

(Original Source: https://www.youtube.com/watch?v=xAsjRRMMg_Q)

“Dove Woman Sketch Commercial 2013”

(Original Source: https://www.youtube.com/watch?v=9i2FtenUzqQ)

Dove body wash is a Unilever brand under personal care category, and caters for the generic female market since it is a beauty body wash. I also use it, it is moisturizing. It is sold in over 80 countries in the world. It is, however, produced in only 13 countries spread over six continents. This means that the company has to come up with the right advertising approach to gain presence in the countries where it does not have active production of the product.

Unilever Ltd, the owner of Dove brand, realized that there are issues that affect female demographic that stem from the advertising campaigns. In 2004, the company pointed out that most of the women grapple with self-acceptance and body image. The media is awash with falsified perceptions of the ideal beauty. Dove Body wash advertisement, which is part of Dove Campaign for Real Beauty, seeks to discount the stereotypes peddled by conventional adverts the campaign’s goal is portraying the benefits of the body wash as real. The advert portrays the body wash as a product that has attainable benefits among all the women regardless of how they look.

Aadvertise in the cosmetic industry use models whose looks are above the ordinary woman that eventually uses the advertised product. As a result, the consumers of the product end up with a false an idea about the product. Prolonged use of the cosmetic products advertised using the generic approaches is disappointing since the product in itself is incapable of changing the look of the consumer to match up with the model. The mismatch between expectations and outcomes leads to increasing dissatisfaction with the product hence the decline in sales.

Dove body wash is part of female product line that has positioned itself as a brand that can be used by all women regardless of their looks. The advertisement campaign works towards the creation of self-acceptance through propulsion of the ideal that beauty is relative and unique. Therefore, there is no need for a woman to work towards vane emulation of plastic beauty peddled by the majority of the advertisements in the cosmetic industry.

Dove Body wash advertisement Campaign not only focuses on the social aspects of beauty. On the contrary, it states the simple capabilities of the body wash without any form of exaggeration. The adverts also mirror the reliability of the Dove body wash for women body care. The adverts use real women as opposed to the models in order to indicate the real goal of the product, which is taking care of all the diversified needs of the women regardless of their looks or race. Because of this creativity, the company has been able to distance itself from the fallacies of beauty while attending to the real needs of the clientele.

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(Original Source: http://www.heb.com/sectionpage/whats-in-store/departments/beauty/dove-body-wash/sd31440003)

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(Original Source: http://www.dove.co.uk/en/Tips-Topics-and-Tools/Latest-Topics/Dove-Ad-Makeover.aspx)

The social media campaign for dove body wash is accommodative of the women regardless of their look. It is an extension of the mainstream media advertisements which seek to portray the women according to their real beauty.

Dove Body wash Campaign, which is part of Dove Campaign for Real Beauty, uses most of the conventional media outlets to publicize the idea. There are advertisements on the digital media such as the television and FM stations. Adverts for the campaign are designed to suit the target media. However, the modifications do not change the main message of appreciating the real beauty in the women. The billboards used for the campaign depict happy women from all the races. Promotion of the fund is by extension promotion of the brand.

Selling on WeChat

In modern society, everyone is able to obtain various accesses to social media in order to keep in touch with his or her friends, even make new friends. They share fresh news and anything they are interested in with their friends. In the US, Facebook, Twitter and Instagram are top 3 popular social media that people use everyday. Similarly, in China, people become more and more like to share information by using social media, such as WeChat, Weibo, QQ. As a matter of fact, WeChat is the one that is used the most these years.

I use WeChat to make voice chats with my families and friends everyday, and I also share my life with them by uploading photos and videos through the “Moments” function. With the epidemic of online selling over social media in recent years, I found that, in my moments, substantial selling information is posted by my friends frequently. They sell or recommend so many kinds of products, including cosmetics, convenient electronics, mom & baby essentials, apparel and accessories, and so forth.

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(Source: The screen shot below is from my WeChat Moments. It is posted by my friend.)

Compared to general online selling, selling on WeChat is a different way. Everyone is able to operate. You just need to download the APP of WeChat and register an account. Then you can begin to sell through uploading the pictures that you want to market and the introduction of your products. The most important thing is, it costs you nothing! Sellers do not need to pay any money to anyone. Another strength of selling on WeChat is that you already have a large customer base containing your families and friends, even they are potential customers. Thirdly, people check their Wechat everyday everywhere. Therefore, the selling information is easier to be seen. And also, you can timely interact with customers compared with general online selling.

However, selling on WeChat still faces some problems. Firstly, unlike general online selling, there is no “Search” function on the Moments of WeChat. Hence, customers cannot find something that they are looking for by using an easy way. It is inconvenient for them. Secondly, you cannot just market one or two kinds of products. Even though you have the larger consumer base, these people can be divided into several groups because the products that they are interested in are different. Someone may like to purchase cosmetics and someone who is a pregnant woman may more prefer mom & baby essentials. If you sell too many different types of products, it is hard to gain lots of loyal customers and big revenues.

Selling on WeChat is an increasingly popular way in Chinese’ lives. With the development of this industry, these problems will be resolved.