Red Laser Technology Improves Information Flow

The flow of compensation from consumers to businesses that provide goods and services has long been an evolving process. From the barter system, to gold coins, to dollar bills and then to debit and credit cards, businesses and consumers have been finding more reliable and convenient forms of payment that benefit both parties. The advent of the internet and then smart-phone technologies have increased the capabilities of another important flow process between businesses and consumers - the flow of Information.

Smart-phones are capable of performing tasks thought impossible just a few years ago. Not only can they be used to play such popular games as "Angry Birds" (most time consuming game ever invented...ever!), but smart-phones such as Apple's Iphone allow consumers to source valuable information when making their purchase decisions. Barcode scanning technology had already revolutionized the payment system at most stores (the cashier scanning the barcode on your favorite foods at the local supermarket before letting you know that you now owe him/her more money than you did just last week for example), but now sourcing pricing information using such applications as Red Laser on the Iphone has become more convenient than ever. By simply scanning the barcode on a product in the store you happen to be waiting on your girlfriend to finish aimlessly walking around in, the Red Laser application will let you know the price of the product in the store, the prices at stores in the vicinity as well as the prices available on the internet! Seeing this for the first time made my eyes tear up a little, for the joys of being alive when technology is rapidly changing never cease to amaze me. The Red Laser technology can even give you nutrition information about the food you are about to purchase!

It is this flow of information between consumers and businesses that keeps businesses in the know as to how best to market its goods and services to its consumers. The more information available to consumers, the better prepared they are to make purchasing decisions. Everybody wins!

But come on! You know about this!

Source: Itunes App store, http://itunes.apple.com/us/app/shop-savvy-barcode-scanner/id338828953?mt=8

Source: Red Laser, http://redlaser.com/

Short Term Loss and Long Term Profit?

"Stop downloading my music for free!" That has been the near consensus view of the music recording industry throughout the era of online music dating back to the late 1990’s. The recording industry has reported billions of dollars in lost revenue due to online music sharing websites and programs such as Napster, Limewire and Soulseek. However, has the music industry missed the boat on just how much money can be recovered by taking advantage of this relatively new form of accessing music by their intended customers? 
The most famous battle waged against the online music sharing *cough piracy cough* was the lawsuit filed by the RIAA against Napster at the start of the millennium. Metallica, yes the same Metallica that benefitted greatly from its loyal underground fan base in the 1980’s before the band became a major commercial success in the early 1990’s, was at the forefront, with drummer Lars Ulrich becoming the poster child for the lawsuit. Instead of embracing the inevitable, musicians at the beginning of the internet age chose to fight for every penny they assumed they lost due to online piracy. Radiohead, one of the biggest bands in the world since the early 90’s went in the opposite direction however. In 2007 the band released its 7th studio album via the web. “In Rainbows” was made available for download to fans on the band's website for a price of – whatever you would like to pay! Astonishing! 

Now as you may know I am usually a strong proponent of making that paper (“generating revenue” for you older folk), but in this case I side with Radiohead in their approach to the new age of music acquisition. The band further endeared itself to an already extremely loyal fan base and though many people downloaded the “In Rainbows” album for free, the band still made paper in the present and generated enough buzz to enhance its money making potential in the future. According to a BBC News article in October of 2007, The band's spokesman Murray Chalmers said - “Although the idea is that you can decide what you want to pay, most people are deciding on a normal retail price with very few trying to buy it for a penny.” Radiohead also had a box-set simultaneously advertised for sale on the same website for a small price of £40 which added to the total sales of the album. The bottom line is online music sharing is not as bad as many in the recording industry think. The potential to save on promotional activities by cutting out the middle-man and gain in terms of fan loyalty (i.e. brand loyalty) and ticket sales at live events must be taken into account. Embrace the inevitable because any future restrictions placed on the music sharing industry (it is now an industry of its own) will lead to more innovative ways of beating the system. Capitalism rules!

But come on you all have downloaded music online for free in the past so who am I kidding. Come on! You know about this!

Source:  BBC News, October 2nd, 2007

http://news.bbc.co.uk/2/hi/7024130.stm

Anti(Small Business)-Social Media?

In the past decade social media has become a way of life for many Americans and indeed many people from almost every nation around the world. The average American adolescent can't make it through a single day without checking or updating his/her MySpace (MyWaste), Twitter (Fritter - as in fritter your time away), or the grand-daddy of them all Facebook. To be honest with you I am one of those people who can't keep up with my friends, family or current events without the use of some form of social media. So we have established that there is a built-in market just waiting to be snapped up by companies within the realm of social media. However, how much value does social media really add to businesses and contribute to what we really care about around here - PROFIT?

According to a Wall Street Journal article by Sarah E. Needleman in May of this year, social media has not been all that it is cracked up to be to the companies most tempted to utilize its seemingly never-ending potential - small businesses. Small businesses see social media as a way to compete with the grandiose marketing campaigns of larger companies. Facebook or Twitter provide a much cheaper and convenient marketing avenue for small businesses which can reach a mass market with a simple post on its Facebook page or an update by "tweeting". This is evidenced by the increase from 12% to 24% in the use of social media by companies with less than 100 employees according to a survey of 2000 U.S. companies in 2009. (University of Maryland's Smith School of Business and Network Solutions LLC, a Web-services provider in Herndon, Va.)

This significant adoption rate is however soured by the relatively poor results from another survey conducted with 500 U.S. small businesses from the same sponsors as the previous survey. According to the survey "just 22% made a profit last year from promoting their firms on social media, while 53% said they broke even. What's more, 19% said they actually lost money due to their social-media initiatives." This is staggering news to many I am sure. "The hype right now exceeds the reality," says Larry Chiagouris, professor of marketing at Pace University's Lubin School of Business. Mr. Chiagouris goes on to explain that social media "could harm you if you end up inadvertently saying something stupid, offensive or even grammatically incorrect."

The reality is as it was in the past and as it will always be in the future - without a great product, positioned in the right place, sold at the right price, and promoted in the right way, businesses will not succeed in its marketing function. Though many small businesses have benefited greatly from its use, social media has also consumed the time and effort of many others that were not as fortunate. As a result the use of social media cannot be and is not the be-all and end-all for small businesses wishing to break into a market or an industry. It needs to be incorporated with traditional marketing techniques in order to create value and ultimately add PROFIT!

But who am I kidding? Come on! You know about this.

Source: Sarah E. Needleman, Wall Street Journal, May 15th, 2010
http://online.wsj.com/article/SB10001424052748703909804575123691040422082.html

Campbell's Adds Neuromarketing To Soup Mix

Neuromarketing is being utilized by many large and notable companies today. In a Wall Street Journal article from February, 2010, Ilan Brat writes that Campbell's Soup Co. is planning to use neuromarketing techniques via its labelling. Campbell's soup customers, Brat explains, often choose to eat soup without any real reason for their selection. When consumers are asked why they choose to eat more soup or not, they tend to "say they don't think of it," says Doug Conant, Campbell's chief executive.

By changing the brand elements on the labels of its soup products, Campbell's hopes to influence consumer behavior neurologically and boost its condensed soup sales by 2% over the next two years. According to Brat, for two years, "Campbell researchers studied microscopic changes in skin moisture, heart rate and other biometrics to see how consumers react to everything from pictures of bowls of soup to logo design."

Consumers often remember certain commercials, billboards or other forms of advertising based on memorable images that take them back to their youth, recall a good moment in their life or represent an ideal they would like to experience in the future. An example of this is Coca-Cola using polar bears in their advertising campaigns. Any information that can be used to influence consumer behavior that translates into increased revenues for a company is a great strategy in my book. Neuromarketing components should be used as part of the regular focus groups and the surveys that make up the marketing research strategy for any successful company in today’s world.

 

But who am I kidding? Come on! You know about this.

Source: Ilan Brat, Wall Street Journal Online, February 17th, 2010

http://online.wsj.com/article/SB10001424052748704804204575069562743700340.html

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