The Seamless brand

This weeks blog seems to have me in a bit of trouble in trying to relate the reading and seminar work to that of the lecture, yet the most prominent connection i can make is the relevance of "meaning". Verganti (2009) provides reasoning to suggest that "people do not buy products but meanings" (pp4), and this relates toward emotional and psychological meanings consumers place amongst both products and services. Verganti also believes that firms need to look beyond the aesthetics of a product and instead aim to understand the true meanings users give to products.


Looking back over the lecture slides it is made immediately obvious, perhaps by over use of 404 examples, that companies are aware of the most minute details of their brand experience. This is in order to provide not only the service promised in a as efficient a way as possible, but to try and ensure positive, almost fond, recollections of the brand are created. Positive word of mouse from something as simple as a helpful, branded 404 page can be the difference between a repeat purchase or a dissatisfied customer.


A favourite example of how brands have little additions that enable the brand to stand out yet still link back to the underlying reasoning of the brand is, once again, Compare The Meerkat.com. I am aware i mention them almost weekly, and no i am not on any sort of payroll from them, they are simply a consistently appropriate, original example. In relevance to this particular blog, they are an example of how a company utilise these little extras in order to reiterate the underlying brand, as the snap shot below from the home page shows

The reading also provides an example of how the Nintendo Wii launched a motion-sensitive based games console that instead of adapting the current game play with more powerful graphics and performance like it's competitors, transformed consoles into an active workout for everyone. This example of a meaning that was not asked for or even expected, has proven to be so successful that the competition in the form of Sony's PlayStation move and Microsoft's X-box 360 have had to follow suit with their own versions of the Wii.


With virtual reality becoming an ever-increasing part of day to day life, as interactivity via the likes of social media sites and online shopping is more readily available, firms need to be aware of the potential consequences that can arise. In an everyday shopping environment, a customers experience can be tailored by anything from the staff on hand and product availability to the facilities on hand, such as fitting rooms. With regards to online shopping, the customer service element is more difficult and harder to maintain as customers experiences can significantly differ from one to another. The way to reduce the difference in experiences would be to make the interactivity of the online experience as easy to use and similar to that of the real thing, this should provide optimal customer satisfaction levels whilst also enhancing the brand experience.


Taking all this into consideration, companies need to ensure that experiences are enhanced, possibly via correct attention to detail, and that design driven innovations could be the way forward in increasingly saturated markets. this allows companies to understand consumer needs and wants, as well as manipulating them with design driven innovations. Service delivery can be improved by understanding the emotional meanings associated with experiences and furthermore, this allows products and services to be produced on a more meaningful basis.


References:

Verganti, R., 2009. Design driven innovation - an introduction, Design-driven
innovation: changing the rules of competition by radically innovating what things mean. Harvard Business Review pp.1-16

Mobile Marketing

Mobile phones are the largest form of media in the world, with over 5 billion of the world’s population currently possessing one and this number is increasing exponentially. Phones have come a long way in the last decade, where 10 years ago there was a lot less choice and I assume most people would have had a Nokia 3310, a true classic of a phone. Nowadays there are a huge variety of phones and it seems as if the most popular phones are the ones that provide the most applications and interactivity options. These are currently classed as smartphones, with the likes of Samsung, I-phone and HTC being the trend setters.

These phones offer all sorts of downloadable applications from games and weather updates to health and fitness guides, there have now been over 10 billion apps downloaded from I-tunes (only applicable for Apples devices) alone. The new modern ways of the consumer embrace these apps by making micro-payments which can be as little as 50p for a simple game, a stark contrast to previous trends when consumers would never have adopted such a concept. This shows just one new way that companies market their product or elements of it through this new "app era". A prime example is one that I use a lot in my blogs because I see them as a very successful example of marketing strategies and I am talking of course about comparethemarket.com. They have released a downloadable app, which provide the various catchphrases of Alex the Meerkat in a fun manner, as well as increasing the awareness of the brand.

Mobile phones allow all sorts of communications forms; MMS, SMS, Phone calls, Video messaging and emails. Furthermore due to the ever increasing popularity of social media, such as Facebook and twitter, mobile phone companies are making them readily available at the touch of a button via your mobile phone, which Apple see (below) as a strong selling point.

With the previously mentioned methods of communication combined with the increasing availability of mobile internet via 3G networks, which supplements the availability of said social media, I believe that efficiency of communication is improving. Mobile phones are almost another appendage for some, perhaps even most of us. Therefore we are almost always in contact with our phones and with these various methods of communication all instantaneously available, I believe we will all expect regular, speedy replies to our messages, independent of the avenue used, which could provide a more efficient society.

This is one reason why mobile marketing is on the rise and it is only a matter of time till the use of QR codes, which blackberry currently utilise, are part of our everyday lives. Essentially they are codes that can be decoded at high speeds by cameras or bar codes and Blackberry use it as a way for one phone user to scan another phone into their memory by simply scanning the appropriate QR code. Companies are starting to implement this by providing said codes in magazines for example, which when scanned provide a direct URL through the phones internet. This cuts out time and hassle of actually inputting the data manually and is more likely to generate a response from a consumer.

Mobile phone advertising can be very beneficial for a company because it allows them to completely personalize to a consumer based on a customers behavioural beliefs (Xu, 2006). This method of marketing is even more effective when considering the reduction of faith in mass marketing and increase in the belief that development of stronger relationships with consumers will increase repeat purchases. Interactivity of phone marketing allows a participant to instantly reply to, or act on it immediately, (Haghirian & Madlberger, 2005.)  A further feature is the ubiquitous nature of mobile marketing in that advertisers can contact their potential customers anytime and anywhere (Bauer et al., 2005).

So in a nut shell, mobile marketing is an effective way to put across personalized targeted messages that are specific to the consumer. They also have a particularly useful element to them as the message can be traced to measure effectiveness and responsiveness; this is not to say however, that there aren't drawbacks.

Ironically, one of the strengths of mobile marketing can be one of its biggest weaknesses in that a mobile phone is a very personal item, which makes users sensitive to receiving messages from unknown persons (Vatanparast & Asil, 2007). Privacy concerns are one of the biggest concerns for mobile marketing, as they require personal information to be truly effective. The best way to deal with these concerns would be to provide customers with an opt-in system that they indicate whether they are happy to receive messages or not.

The most recent form of mobile phone advertising is present in Japan whereby a virtual message can be displayed when a consumer walks around looking through their mobile phones camera. This is a non-intrusive, technologically fascinating way of marketing that could hopefully provide a platform for future marketing campaigns. 

References:

Bauer, H. H., Barnes, S. J., Reichardt, T., & Newmann, M. M., 2005. Driving consumer acceptance of mobile marketing: A theoretical framework and empirical study. Journal of Electronic Commerce Research, 6(3), 181-192.  

Haghirian, P., & Madlberger, M., 2005. Consumer attitude toward advertising via mobile devices–an empirical investigation among Austrian users. Proceedings of ECIS (European Conference on Information Systems), Regensburg, Germany, 1 – 12

Vatanparast, R., & Asil, M., 2007. Factors affecting the use of mobile advertising. 

International Journal of Mobile Marketing, 2(2) 21-34

Xu, D. J., 2006. The Influence of personalization in affecting consumer attitudes toward mobile advertising in China. Journal of Computer Information Systems 47(2), 9-19

How are interactivity, relational marketing and PR related? Also talking to consumers and harnessing co-production, how important are these and what are the implications?

Interactivity is, in itself, worthy of a blog as there are so many elements to it. Consider Rafaeli who said "the most helpful definition of interactivity would be one predicted on the issue of responsiveness. The distinction called for is one between interactive, quasi-interactive and non interactive communication sequence".(p118) For something to be truly interactive then, it must draw on previous responses, it must incorporate reference to content, nature or form of earlier references.

Given this, we look toward new social media sites and ponder the question, are they interactive? I believe they are as they facilitate interaction between people and also allow them to interact with content. By interacting with the people and content on these sites we can assert our own influences, which is what sets interactivity apart, it is a two-way influence. Simply commenting on a piece of content such as a status update or change of profile photo on facebook is interacting with another, via a social media site, something millions of people do absentmindedly each and every day.

Interactive media can come in all sort of forms, computer games, mobiles and the internet to name but a few. Wearing a headset whilst "gaming" allows interaction with fellow participants instantaneously, as if you were face to face, and this is because interaction is assumed to be a natural attribute of face-to-face conversations (Rafelli, 1988.). The interactive media that is often take for granted is the mobile phone. Phone calls, texts and even picture messages can all be achieved at the touch of a button, there are over 5 billion of them circulating in the world today. So with so much interactive media available, how can this be harnessed by the marketing world?

Companies are increasingly trying to retain customers via relational and PR marketing techniques. Take Amazon or ebay for example, transactions are accompanied with an option of rating the experience, usually on a 1 to 5 star basis. This provides added information for customers next time they are trying to buy a product from a certain seller, the seller has a reputation that can influence whether or not they wish to use them. Amazon also provide helpful information that makes shopping easier by suggesting other similar products or complimentary ones. This provides an added value service that customers appreciate. 


I mentioned something similar in my last blog, where companies increasingly provide adverts suited to the person they are targeting. For example, adverts on Facebook pages revolve around research made on the individual and their respective "likes". My page has adverts which i recognise as tailored to my hobbies, likes and pastimes. Companies are also increasingly utilising searches on the likes of Google and yahoo to tailor adverts and use more specific targeting techniques. 


The most recent example of this i can think of is the fascinating story of compare the market.com.  After not achieving the profits and market share they expected, Compare the market decided to investigate by looking at what consumers are searching when they try to find a comparison site. from this it became apparent that consumers were frequently searching for compare the Meerkat.com. From this came the adorable and infamous Alex whom i am sure you are all familiar with.


Nestle are one of many companies who utilise Facebook as a means of corresponding with consumers and gaining feedback. This allows companies to create a rapport with companies and creates an easier medium where customers can interact and propose their current thoughts on what is good or bad with the company. It is this interactivity, often through blogs, twitter or Facebook, that firms are trying to capitalise on by developing their reputation with consumers. This acts as a solid PR platform, because if consumers feel they are being listened to and can have an influence on a companies decisions the the company is likely to find an increase in their reputation. 

                                                                         Source: Hoffman & Novak (1996) 

This is an example of how interaction has changed in recent times away from the "mass media" model to a new "interactive media", where consumers and Firms interact and correspond via media networks. It is now a "two-way" flow of information as opposed to the conventional "one-way" flow associated with web 1.0.

Yes, resources do need to be allocated to deal with these issues which can be costly, but in my opinion co-production via consumers feedback can only benefit a company in terms of reputation and rapport with customers. Furthermore I feel that utilising this social media that enables interaction is key for a companies success in the long run, and in order to be heard relationships have to built with consumers. With an increase in word of mouse where the whole world can contribute to a companies image, either positively or negatively, just by the click of a mouse or the simple typing of a few select words, companies should be doing everything in the power to influence the publics perception of them.

References:

Rafaeli, S., 1988. Interactivity: From new media to communication, Sage Annual Review of Communication Research: Advancing Communication Science, 16,110-134.  Available at:

http://gsb.haifa.ac.il/~sheizaf/interactivity/Interactivity_Rafaeli.pd

How are social media content and channels affecting Marketing?

Social media are web-based and mobile technologies that can be used to turn communication into interactive dialogue (Wikipedia) . If you ask the general public to provide examples of social media, you can almost guarantee that most people will provide the same sort of answers; Facebook, twitter, Youtube, Myspace, blogs  etc. Why might most people have the same answers? Simply because, like it or not, social media is becoming an increasingly significant part of our everyday lives. Econsultancy.com boasts a set of statistics that show just how big a part the likes of Facebook and Twitter play in our lives, and please note that these stats are now over a year old!

Facebook claims that 50% of active users log into the site each day. This would mean at least 175m users every 24 hours. Only China and India have higher populations than Facebook as the sheer velocity of users has skyrocketed, which this table from Joe's Blog below shows.

Given the stats, it is easy to understand why companies would want to make the best use possible out of said social media, and slowly but surely they are catching on. How many times have you been on a website and been asked to "Like This Page"? This is an attempt by companies to try and interact with consumers. Liking pages also provides information on the type of indidual they are and what their tastes are, which is particularly useful to advertisiers who can then decide who to target products to based on their "likes". Looking at my profile will provide evidence for this as there is an advert for protein supplements, which i assume were added because I "Liked" a site I use called My-protein. 

By establishing who "likes" what, companies can specifically target certain consumers on social networking sites, which are taking up an ever incresing part of our lives. Digital Buzz says that over 1.5 million local businesses have active pages on websites, and this number doesnt take into account the larger corporations. 

But how are companies utilisng the social media to their benefit?


Warner brothers have utilised the likes of Facebook and Youtube to promote the most recent Harry Potter Films. Using the free availability of Youtube enables them to release previews and teaser trailers that act as a Pre-announcement launching strategy that "can be used to hype interest in the upcoming product" 1. The Harry Potter film page on Facebook has reached over 16 million likes worldwide and has information such as when the DVD and other films will be released. This provides information to the general public free of charge and in an environment the consumers are used to.


Due to the success of these free advertising techniques that can be seen or viewed on a worldwide platform, perhaps the conventional marketing methods such as billboards will become obsolete. In my eyes with an ever digitalized world becoming the norm, these conventional techniques will struggle to prevail, particularly when considering the speed information can travel across new social media, and its inherent ability to instantaneously effect millions around the world at any given moment.


B2B Marketing methods with regards to social media are most appropriate when blogging and micro-blogging, says Jordan Julien because generally, blogs work better for B2B brands as they require a certain level of prior knowledge and interest. An example of such a B2B company is MLT Creative a marketing company specifically for B2B purposes. Having said this, due to the ease of using sites such as Facebook, companies do still try and utilise it, as MLT Creative show on their blog page. The top icon bar shows other social media areas where they can be followed or interacted with as well as their blog. 


IBM have actually built, and use, a social software that can be used internally -- keeping sensitive business information safe -- or for external use to help you engage and build trusted relationships. IBM use this internally as a way of keeping in contact with colleagues and partners on a regular basis, this is similar to an inter-company Version of MSN messenger. This shows how the work place is transforming from a strict corporate hierarchical environment to more of a small social community.


I think that in reality most social media should be used with regards to B2C marketing as this is where it is at is most effective, communicating with potential customers on the media that they increasingly utilise. However, this is not to say that it cannot be useful in B2B, as my examples have shown. As Digital and social media keep improving in the years to come, I would not be surprised to see a majority of marketing campaigns utilising these to extend their reach to their target segments.


Social media is thriving and for companies to maintain competitiveness and keep in touch with new marketing techniques, the adoption of social media is, in my eyes, not just an option but a necessity.


References:

1: Crawford, M & A. Di Benedetto, New Products Management, 9th Edition.UK, 2008, McGraw Hill Irwin