Posts Tagged Advertising

On Building a Better Product

I’ve talked about this idea in the previous post but, it’s just so crucial that I decided to write a whole post about it. Many companies seem to use advertising as a way to compensate for a bad or under-par product. The problem with this practice (and what companies are starting to realize) is that it creates absolutely no value for companies. They might argue that increased advertising will lead to increased sales, but I tend to think that they should reconsider. In fact, I believe that over time, this practice might actually lead to a loss of customers and potentially to bankruptcy.

In my opinion, no amount of advertising can compensate for a bad product. At first, the increased amount of advertising might lead to several new purchases, but, once the customers discover that the product is not what they say it is, doesn’t work right or doesn’t compare to the competition, they will not repeat a purchase. Companies will have lost their trust, and once that trust is lost it might never return. Remember that the majority of profits will be generated with repeat purchases. Once the consumer is loyal to a brand, he will generally continue buying the products (therefore increasing revenues), and the company will be  spending far less money on convincing him that the product is good. In other words, reapeat purchases generate revenues long after the initial costs of convincing (converting) the customer  have been amortized. Give a great product to your customers and everybody will be happy. They will continue buying and enjoying your products and your company will stay afloat.

David Ogilvy (founder of the Ogilvy & Mather’s advertising firm and one the most historically renown figures in advertising) truly embodied this idea in his book “confessions Of An Advertising Man”. He states: “Good products can be sold by honest advertising. If you don’t think the product is good, you have no business to be advertising it. If you tell lies, or weasel, you do your client a disservice, and increase your load of guilt…” All in all, companies should make sure that they have a product that stands by their words. Doing so should presumably increase their reputation and consequently lead to an increase in sales. If they know that their product could be better, they shouldn’t advertise to compensate. Instead, they should be thinking about investing the money in refining and developing it. Everybody will benefit!

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Microsoft: Listening to its customers

Microsoft has just released it’s new operating system: Windows 7. It seems to be getting good reviews and many are stating that it is almost as good or as good as Apple’s latest effort: Mac Osx Snow Leopard. While reviewing the operating system could be interesting, I’d like to focus on something that I deem much more important:  Their latest advertising campaign and the fundamental shifts in strategy that they have demonstrated recently.

Microsoft had one big problem: They weren’t listening to their customers. While this model could work in the past (because nobody could really express their anger efficiently), this has changed. In this day and age, it has become more important than ever to listen to your customers. The social networking & publishing tools of the internet let anybody publish their opinion and talk about their brand experiences to the rest of the world. As Jeff Jarvis brilliantly states in his book “What Would Google Do?”: Today, when you lose a customer, you don’t lose just that customer, you risk losing that customer’s friends. And thanks to the internet and blogs and consumer rate-and-review services, your customers have lots of friends all around the world.”

Not listening to their customers meant that they weren’t satisfying their needs, expectations and desires. If your product doesn’t meet the customers needs, they will stop buying your products and eventually all their friends will too. The important thing to remember is that it’s all about the customer: At the end of the day he is the one that will be buying your products, so it seams logical to try and please him. Unfortunately, many companies still haven’t understood this idea. Fortunately, Microsoft finally has.

Their previous product (Windows Vista) was a blatant failure. How did they attempt to make this one better? They listened to their customers and added the features they wanted. Jeff Jarvis states that “Your worst customer is your best friend”. He is quite right. Today’s publishing tools have given your customers the power to tell you what you are doing wrong. All you have to do is listen. Your product will inevitably get better and this will help you in the long run. Remember, that your customers have a lot of friends, and if they like your product, they’ll spread the love. This is a two way model, so embrace it.

More importantly, Microsoft finally understood that in our present market you can’t compensate for a bad product with more advertising. A bad product will inevitably lower you reputation and will definitely have negative impacts on your business. Advertising is of no use until you product meets expectations. If the quality of your product isn’t there, don’t waste your money on advertising, invest it in developing a better product. Once you have a good product, then start promoting it. Furthermore, a good product becomes advertising in itself. People will eventually become so loyal to your company that they will embrace it and spread the love. Don’t believe me? Look at Apple. They understood all this a long time ago.

Microsoft’s latest advertising campaign demonstrates all these ideas brilliantly. I firmly believe that these changes in their brand strategy will pay off. It took them a bit of time to adapt but they are finally moving in the right direction. Now, all they have to do is keep it up.

Check out their latest campaign here:

Windows 7 Collaboration Campaign

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Google Fast Forward: Advertising & Marketing channel

In association with the Wharton University of Pennsylvania, Google has just released a new site that focuses on advertising and marketing. They have created a destination which is packed with insight and useful information on the ongoing transformation of the marketing world. I am sure it will come in real handy and be appreciated by many.

But coming to think of it, Google has created much more than a database with useful content and advice. It has actually set up a place for fellow advertising and marketing aficionados to find each other and get connected. This will instantly lead to people debating ideas, sharing content, spreading knowledge and really just talking about their passion. One big collaborative marketing conversation!

You may under-estimate the power of such a place, but don’t! It is places like these that fully show the power of tribes (And companies like Google understand that power). As Seth Godin explained in the Ted video I previously posted (find it here): ”Tribes are about leading and connecting people and ideas” he later goes on to explain: “it turns out that it’s tribes, not money, not factories, that change our world, that change politics, that align large numbers of people. Not because you force them to do something against their will. But because they wanted to connect.” Enabling people to meet, exchange and collaborate often leads to, brilliant ideas, great surprises and more valuable content. Who knows, you might meet your future business partner in a place like this! Google hasn’t created a marketing & advertising tribe. Tribes of this kind already exist. It has merely offered a new space that will let existing tribes unite and develop. Use this to your advantage. Make connections, think, share, create!

Whether its here or elsewhere, I encourage you to find subjects that inspire you and join the conversation. Help ideas develop. It will make you grow and others as well. Everybody benefits.

http://www.youtube.com/fastforward

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Seth Godin on the power of tribes

Author of several best selling books (tribes, Purple Cow, The Dip and many more), Seth Godin is recognized as being one of the most influential marketing thinkers in North America. His latest book “Tribes” analyses the dynamics of tribes and will help you understand how building tribes will spread your cause/message much further than advertising ever will. While pushing you to become a leader he explains how it is easier than ever for ordinary people to create groups that will lead to significant change. He is a brilliant orator and gives several conferences a year in some of the world’s largest companies. if guy’s such as Universal and  Google listen to his advice, I think you should to. I strongly encourage you to read his blog: Seth’s blog. This will help you keep up to speed with his everyday thinking.

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Six Pixels of Separation book

Mitch Joel, president of the award winning digital marketing firm “Twist Image” has just released his first book called “Six Pixels of Seperation”. This is a fascinating business book that gives tremendous insight on the future of digital marketing and social networking. While being clearly written, easy and fun to read, it probes deep into the world of new media and analyses how the internet has changed the way we market products, ourselves and changed our culture. It is a must read for anyone who cares about marketing, media, business and the future of these sectors. I also strongly encourage you to follow his insightful blog which he updates daily: Six Pixels of Separation Blog.

Six Pixels of Seperation by Mitch Joel

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