Wednesday, January 9, 2013
Tuesday, November 6, 2012
Tuesday, October 19, 2010
Monday, October 18, 2010
Social networking sites on the Internet are now regarded as one of the most important tools of communication. People have recognized social networking as the fastest and most trusted means of spreading news and making people aware of the facts and information. People have begun joining networking groups even as a status symbol. Being on a networking site is now considered as one of the best ways to get recognized. Being part of an online social network helps people to stay connected with their friends and families, and also to develop business links.
Viral marketing depends on a high pass-along rate from person to person. If a large percentage of recipients forward something to a large number of friends, the overall multiplier effect would be quite phenomenal and also the message would travel very quickly. This means that each person one reaches, one is also reaching a group of his /her friends as well. Then those friends tell other friends, leading to rapid increase in reaching down the line, which is in some way similar to what happens in many network marketing companies.
In 2007, Cadbury’s dairy milk chocolate launched a viral marketing campaign, which was much popularized on YouTube. During same year, World Wrestling Entertainment promoted the return of wrestler, Chris Jericho, with 15 a viral marketing campaign using 15-second cryptic binary video.
Recently Pepsi astonished the advertising industry by its move to ignore Super Bowl football matches and instead focus on Social Media. Pepsi, in an effort to leverage on social media, opted for the “Pepsi Refresh Project” which was rolled out in January 2010, to fund refreshing ideas that could change the world. Numerous individuals and organization visit the “Refresh Project” website via several social media platforms, and submit ideas for projects that could refresh their community. The next process involves public voting. The amount of money ($20 mn) saved by not advertising through Super Bowl is being diverted to supporting various selected projects every month ranging from $5000 to $250000 per project. Apart from serving as a promotional tool, social networking sites can also provide a platform to conduct product surveys, undertake research, build the brand, manage one’s online reputation, engage employees t know each other better, and recruit potential candidates for the company.
Manpreet Singh Nagi
Manpreet Singh Nagi
FT 2010-2012 Section C
FT 2010-2012 Section C
Saturday, October 9, 2010
A couple of months back, Google announced discontinuation of online sales for Nexus1.
A couple of years ago, DELL did something similar for its laptop, though Dell did not stop online sales of its Laptops, it moved into a kiosk model in which customers could visit a kiosk, have a look and feel of the laptop they are interested in buying and then make the final choice.
Dell with its unique selling and distribution channels, was enjoying the second position in the market for a very long time (first being HP with 18% market share), but after the economic meltdown of 2009, as people started looking for cheaper products, Acer- a company based out of Taiwan had a 30% increase in sales making it the number two player in market with a 13% Market share.
Dell lost its USP (Unique Selling Preposition) of low price for high quality products. As more big players emerged, Dell found it difficult to maintain the unique bargaining power with the suppliers.
A zero inventory for Dell adds pressure to the suppliers as they are not certain of the sales volume. As a supplier, you would have less bargaining power if you have a fixed order than to have serve a customer with a JIT (Just In Time) Inventory system. As a result, Dell lost its competitive advantage.
Very soon, Acer with similar quality as that of Dell (most of the internal components are made by other manufacturer’s, example: Intel for processors, Nvidia for graphics etc) gave stiff price war to Dell.
Secondly, as the buyer is exploited by choice, he does not see sense in waiting for about a week for the product to be shipped. Acer is available at retail outlets and a buyer can always negotiate a deal with the local seller and also ask for ad-on gifts such as back-pack, pen-drive etc.
Let us have a look at Nexus One
Google's decision to discontinue direct sales, which comes less than six months after launching the online store, is fairly striking.
There is nothing wrong with the product (it has received a higher rating than the IPhone and the Motorola Droid by all tech forum and I have myself used the IPhone, Droid and the Nexus1) , there is enough publicity done, the price is very competitive, it has HTC and Google brand associated with it, but still the product isn’t selling.
Now, if we combine (have a nexus) of the issue faced by Dell and Google, we can see that there seems to be a change in which internet markets are going to operate in the future.
It seems, the shift would very soon be from B2C (Business to Consumer) to a more B2B (Business to Business) model.
Today, the consumer wants to have a touch and feel of the product before making a purchase decision. Internet and online sites are mostly used for doing a product research and comparing between different products, but the final purchase decision is made only after the “demo” is done.
As in the Dell case, the kiosks do not sell the laptop (they accept payment, but the order is still placed online), still, the consumer can have a look and feel of what he is buying, this avoids an uncertainty, thus removing the psychic price that the consumer might have to pay.
In the case of Nexus1, the consumer is not sure how the product is going to look and feel, even the most interactive website cannot replicate the look and feel of the product completely.
Internet market for B2C is promising if the companies are ready to re-innovate the business model and provide additional flexibility to the consumer.
For example, www.bigshoebazaar.com is a portal which enables consumers to order two shoes at a time in case the customer is not sure about the size, pay cash on delivery and when the shoe is returned, they reimburse the full amount of the shoe along with the shipping charges incurred by the customer.
Another example could be of companies into online gifting solutions, customers do not require the feel element while purchase from FernsNpetals (www.fnp.com), they would look for prompt delivery and payment security.
In case of B2B markets, since the goods sold are either raw-materials or have an option of being customized as per the buyers requirements, the need for touch and feel for the product is not strong, moreover, in such markets, it is feasible for the seller to send a sample to the buyer as the magnitude of order is generally big enough to cost the free-sample cost to each buyer.
So, we see that B2C channels are not very promising as the customer’s buying decision is based on the look and feel of the product.B2B and C2C (consumer to consumer) seem to be more sustainable business models over the internet.
Companies must remember that no matter how good your product is, you can’t see it unless the consumer wants to buy it.
“The consumer isn’t a moron. She is your wife.” -David Ogilvy.
Friday, November 27, 2009
Search engine optimization and search engine marketing are similar in many ways. Each online marketing discipline requires a strong understanding of purpose and functionality. The practice of SEO requires a basic knowledge of search engines and how they work at their core. SEM requires an understanding of online marketing and advertising. SEO can be boiled down to this - where your site is ranked on major search engines is a direct result of your understanding and application of best practices in the area of SEO. Search engine marketing is based on an understanding of online ad campaigns that are implemented on advertising networks. The largest online ad network is Google followed by Yahoo! and MSN. These ad networks basically work the same way. You open an ad account, place an online ad and when users search for terms related to your ad, the advertisement displays. When someone clicks on your ad, you pay a fee.
SEO is different than SEM because it is based on natural search results versus paid results. Search engine optimization techniques can be better categorized as ‘On Page Optimization’ and ‘Off Page Optimization’.
On page optimization directs you on how to design your web page in an effort to improve ranking and search ability. In other words on page optimization is closely tied to web site design and Off page is more associated with factors outside your website itself.
The purpose of SEO is to generate natural traffic to your website. After a browser completes a search on Google or other major search engine, the resulting list is based on each search engine’s algorithm. When users click on these results you do not pay. Search engine marketing differs in that you pay when users take an action. The amount you pay varies on the competitiveness of your keywords and the position in which you want your ad to display.
The difference between Search Engine Marketing (SEM) and Search Engine Optimization (SEO) can be simply put in this way: one is the foundation and the other is the bricks upon the foundation. Without the foundation of a solidly-implemented SEO on your website, the house (or your website) in this case, cannot adequately support the marketing efforts put forth in your marketing plans.
Think of your website as a building. Solid SEO would be the base or foundation that supports the site. It could possibly consist of bricks, mortar, cement, and stone. In this case, bricks could be functional, relevant and user-friendly navigation. Mortar could be properly placed tags, headers, and proper page renaming. The cement or the glue that holds it all together is the adequately researched, reviewed and analyzed usage of keywords and phrases which are relevant to your website, your message, your products and your marketing goals. Also, SEO as a general rule is a one-time deal. The marketing efforts must be maintained, and can be built upon layer after layer. The blueprint for the SEM can change month to month, or daily even, according to the marketing budget, the goals, objectives, and the time spent on marketing the site across the entire World Wide Web.
SEM can be thought of as the trusses or the supports that begin to erect the building to new heights. They are firmly attached to the foundation, yet separate entities. The marketing efforts are what will promote your fully optimized site, allowing potential visitors more opportunities to arrive on your optimized site through a variety of sources. SEM, on the other hand, is a continuously on-going process. Even once your SEM efforts help bring your website to a number one ranking for a particular search term, the effort must be continued in order to maintain the ranking.
There is always someone on your site's tail, working hard to take over your coveted ranked spot on any of the major search engines. So, in order to succeed, ensure that you have a solid SEO backing your online efforts and a champion SEM plan to beat the competition.
Monday, August 24, 2009
Incidentally my elder sister, with whom I have very good ( read not good) relationship, never grew older than 16 years although my age crossed the mark of 22 this year.
Well recently I went through the ad of Santoor soap, a brand of Wipro Consumer Care And Lighting (WCCL), FMCG unit of one of the largest IT player of
The position of the brand was as being a normal soap made of sandal and turmeric. Thus, giving the name Santoor (not extracted from music instrument as widely believed) helped in growth. Well initial times did not show any positive sign of growth when it was launched. It was only after the launch of campaign ‘For Younger Looking Skin’ that this soap gained the pace. This campaign was launched with ad showing a mother with five year old daughter, a high contrast from traditional trend with protagonist where a teenager is shown, thus positioning it far from different brand which only used to concentrate on beautiful and great skin. This gave a unique image to the soap and also used the weakest point of women’s, young look (well probably as you can never guess what they think exactly). Also as the soap was normal and nothing was special added to it, the soap is good for any type of skin, not creating allergies and any other disease helped the cause of the marketing as every customer was satisfied with it.
The brand periodically changed the role of mother from normal housewife to fitness cautious mother to working woman to modern housewife which now stand the queues for bills. All these ads evolved with changing role of the woman of middle class family in
However, in recent times it also used Saif Ali Khan for its branding thus , adding the male factor to the soap, a new dimension. Whether this strategy will pay off or not is yet to be seen. Anyways hats off to WCCL and their marketing strategy which was very simple but yet very effective. To capture the imagination of mass with product, this was definitely not the strong point of the company; still they managed to fight with FMCG brands of
After all, ‘Iski twacha se to iski umra ka pata hi nahi lagta’.
Contributed By: Nitesh Singhal