Free is the Future

On 02.03.10, In advertisements, direct marketing, relationship marketing, By jennifer

Attended a webinar with Chris Anderson of Wired Magazine this morning. The topic for today was “Is “FREE” the future of business?”

Chris went over some history about how some of the biggest companies started and flourished by promoting free stuff. Did you know that Gillette promoted free products to create a need for their disposable razors? And Jell-O began by giving out free recipe books with their main product as the key ingredient? Even in early 1900’s, marketers were looking for ways to appeal to consumer wants of “free” stuff. Nowadays, this idea can still be applied to digital goods and services.

This led to another topic that I found interesting – freemium. This refers to web services that are free for the general public, while the upgraded services come at a cost. Great idea, isn’t it? Take a look at Flickr and the New York Times. These sites are free to use but if you really want the good stuff, it will cost you. Free is not just a marketing gimmick, but a viable source that some companies thrive off of.

When it comes to your business or small businesses in general, how do you foresee the use of “free”?

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What Matters in Business

On 12.28.09, In advertisements, direct marketing, By jennifer

What’s the big deal about studying business? As famed father of management, Peter Drucker was noted for saying, “Business has only two basic functions – marketing and innovation.”

The Ever-Innovative Apple

Of course, these aren’t the only two things that make business possible, but they are arguably the most important functions. Apple is an excellent example of an innovative company. From the iPod to the pending iSlate, Apple has definitely set a higher standard when it comes to setting technology trends. Since its groundbreaking introduction in 1984, Apple has revolutionized the way that we work and play. Sure, other companies sell similar products, but Apple has an advantage when it comes to market share. Innovation? Yes, but their marketing tactics are also responsible for their success.

Comparing Marketing: Target vs. Wal-Mart

Marketing serves an essential business function. The general marketing mix focuses on the four P’s of: product, price, promotion and place, but it does much more than that. I mean, who cares if you have a fantastic product if no one knows about it? Let’s take two retailers for example: Target and Wal-Mart. Although these two giants are not identical, they offer similar items. From toilet paper to fresh produce, both convenient retailers offer household items and more. Target’s marketing and fun advertisements has made cheap – chic, while Wal-Mart’s cheap approach… just seems cheap.

In short, business consists of many elements that would not work without each other. If you want to succeed in business, you can’t just do one thing and do it well. It requires you to wear different hats – whether it is marketing, finance, self-management or something more. Most importantly, you have to be prepared to keep up with the changing times.

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Facebook vs. Twitter

On 07.29.09, In advertisements, online viral marketing, social media marketing, By jennifer

When it comes to Facebook marketing and Twitter advertising, which do you prefer? Both have advantages and disadvantages and social media marketing is still in its early stages of development. Users may have trouble keeping up with all the new changes as marketers struggle to find an effective strategy. An analysis from Compete, shows that Facebook is in the lead, but is Twitter a threat? I believe that Twitter and Facebook are strong competitors that and can be strongly beneficial when properly utilized.

People like to use Facebook because they can keep in touch with old friends and easily meet new ones. However, with Twitter, individuals and companies can build a strong following and promote their awareness of their brand. It is important to keep up on changes with both of these giants because it is hard to tell which has more potential. Taking it up a notch, viral marketing is also becoming prevalent on these social networking sites. For example on Twitter, Ashton Kutcher challenged CNN to a “popularity” contest and won! This may be a victory for Kutcher and embarrassing for CNN, but both parties certainly gained more followers. How are some pros and cons of both Facebook and Twitter:

Facebook
+ Rapidly growing number of users
+ Potential to use third party applications for advertising
+ Some report using Facebook messaging more than email to connect with real friends
- Takes time to learn how to navigate
- Requires testing and research to realize long term benefits
- Numerous applications and features could clutter your message

Twitter
+ Easy to use, navigate and use to promote or share anything
+ Cost advantageous in comparison to Facebook (for the time being)
+ More people can be exposed to your message without any formal confirmation or even logging in
- Limited to 140 character for each update
- Potential for abuse by spammers
- Too early to tell how effective it is in advertising

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Controversial Ads

On 07.15.09, In Uncategorized, advertisements, social media marketing, By jennifer

Whether they are from established or up-and-coming companies, controversial ads have always been a hot topic of discussion. The main argument is whether they are intentional or not. From time to time, many companies find themselves defending or apologizing for a controversial ad campaign. From the Whopper Virgins to their ad for the BK Super Seven Incher, Burger King has recently been known for their unusual choice of ads. Critics have accused them of exploiting third world hunger and even misogyny.

Moreover, the fashion industry is well-known for sexual images portrayed in their advertisements and magazine spreads. American Apparel is no stranger to this controversy. CEO Dov Charney has had many sexual harassment lawsuits filed against him and it may not help that his company’s ads are considered borderline pornographic. But controversial ads are not restricted to this industry; Sony has been subject to scrutiny with the release of their white Sony PSP. The ad above shows a racially charged tone that has been criticized by many. Sony actually had a similar ad that was rejected for the campaign with the tagline, “White is better”.

So, why would a company purposely put out an advertisement that could possibly be considered offensive? For some companies, that may be their intent. There are advantages and disadvantages to consider when it comes to controversial advertisements:

Advantages

  • Positive attention from a quirky or unusual ad
  • Increased awareness can generate more sales
  • Reputation for being different
  • Being memorable and subject to buzz on social media sites

Disadvantages

  • Negative attention frsom overtly sexual, racist, or violent ads
  • Boycott can lead to a decrease in sales
  • Hard to follow up with ads without going overboard
  • Other unintended consequences

What are your thoughts on controversial advertisements?

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