I was not familiar with the Amazon internet foul up sensation before reading this bloggers post, however I am now well informed. Church of the Customer Blog expounds upon the modern day word of mouth and viral campaign marketing that the internet has provided. They specifically talk about the negative effects that can arise as found in such situations as the Dominoe’s pizza incident and the Amazon Fail mistake.
In today’s commerce society, many business men and women have come to rely on the advantages of the internet. Word of mouth campaigns for such events as the release of the movie Cloverfield or The Dark Knight have proved to be cheap yet very effective. Consumer reach can amount to tens of thousands even before initial advertising begins due to the internets vast infrastructure. Web sites such as Youtube.com have amassed large audiences based on the participation of consumers, which serves as a haven for advertising when considering the marketing potential.
Viral and rapid word of mouth advertising can have an evil side to it however. Recently Dominoe’s Pizza and Amazon.com have come under negative fire because of internet videos and website mistakes. A marketer must remember that just because the internet has made distributing information easier it does not mean that bad information will be filtered out.
The article focuses on the Amazon incident in which the company accidentally deleted sales ranking for thousands of adult categorized books. Consumers were led to believe that the sale of this category would be halted and removed from the website. This angered many and within hours twitter accounts, Facebook groups and online blogs had begun patronizing the site giving the worlds largest online retailer negative publicity.
In my opinion, large companies should hire entire segments within their company to ensure that content such as this does not reach the masses or is spoken for in the beginning. Stopping a problem at its source is the best possible scenario when it comes to incredibly negative press, but this is not always an option because of the numerous channels found within the internet. Automatic search engines are able to pinpoint references as soon as they are posted, but these are not entirely efficient. When problems such as these arise I believe the company should take positive action in a different situation so as to lessen the amount of negativity surrounding the brand name in the short run. In times such as this one for Amazon.com there is no room for pondering multiple plans of action and weighing their positive counter effects. Therefore I believe it is important for large companies to develop broad crisis management plans for implantation. This way companies can quickly adapt situations to their pre-arranged model and release calming statements to mitigate backlash.
According to the author, companies today should adopt modern technologies and constantly be updated as to Twitter functions and Facebook trends. As long as the company demonstrates that they are up to date on recent developments such as Twitter, the author believes that a positive impact can be made. A separate author found lower on the blog mentions the importance of responding quickly to incidences online. Neither, however, write anything concerning what kind of reactions the companies of today’s age should take. The closest suggestions of how companies should handle drastic situations such as this one is that there crisis communication plans should include quick replies. I agree with their statements, but they leave the biggest part of the equation (what companies should do) out of their blog. To me it seems the blog they have created makes no sense unless they give their opinion on what the company should do. The internet, or most of the internet, has undoubtedly already heard of these catastrophes so this cannot be an informative blog unless you are stressing the statistics given as educational.
In short, this article did a good job in quantifying the rate at which modern day word of mouth campaigns can make or break a company’s image. However, after an initial comment, the blog was unable to address what a company should do in the event of a negative occurrence.
Wednesday, April 22, 2009
Monday, April 13, 2009
Movie Industry and Consumers
I plan to present an extensive outline concerning the evolution of cinema experiences for customers. Introduced in the early 20th century, we have seen American cinema undergo numerous changes resulting in dramatic customer experiences. Changes such as the addition of sound, color or a third dimension aspect have enticed consumers to flock to nearby theatres and pay prices that continue to rise. However, in recent times we have seen declining numbers in movie ticket sales. This may be attributed to piracy and the many different channels that have emerged for multimedia information to be acquired.
Thesis – The movie industry has constantly experienced change in order to boost ticket sales and attract specific segments of consumers.
I plan to split the report into three eras
I. Early Cinema
a. Invention of cinema and movie theatres
b. Consumer reaction to sound and color
II. Pre-digital Age
a. Beginnings of film oligopoly
b. Mass production of mainstream films
III. Digital Age
a. Mass production of low-cost/independent films
b. Consumer film choices
c. Consumers and piracy
Body
A. After World War 1 cinema became very prominent due to the large disposable incomes of families. The cinema was established as a regular place to spend time.
a. Movie theatres began appearing in urban settings and marketing budgets were on the rise as to how to raise ticket sales.
b. The addition of sound and color led to a surge in ticket sales and revolutionized the way consumers viewed the movie experience.
B. Marketers began to perfect practices when it came to pitching movies and improving crowds. Before the digital age occurred, we saw large advertising budgets and dominant companies.
a. Companies such as MGM studios, Paramount Pictures and Miramax Films began taking over the industry and today are still large players in the cinema market.
b. Studios began playing to consumers interests and eventually started trying to create “blockbuster” movies.
C. In the digital age we see millions of movies being thrown around in many channels. Advertising can be seen everywhere now as marketers repeatedly try to boost ticket sales and limit costs.
a. A change in role occurred with the digital age as independent consumers are able to take advantage of low costs. Consumers now have the ability to produce and distribute their own films.
b. Classical cinema story lines such as western, slapstick comedy, musical and animated cartoon are still largely present but no longer adhere to aged rules.
c. The ability to share files in seconds has decreased consumer interest in the cinema experience. Has piracy changed the consumer’s view of movies (movies are mass-produced and lack substance) or has it affected the experience (the cinema venture has lost value)?
Thesis – The movie industry has constantly experienced change in order to boost ticket sales and attract specific segments of consumers.
I plan to split the report into three eras
I. Early Cinema
a. Invention of cinema and movie theatres
b. Consumer reaction to sound and color
II. Pre-digital Age
a. Beginnings of film oligopoly
b. Mass production of mainstream films
III. Digital Age
a. Mass production of low-cost/independent films
b. Consumer film choices
c. Consumers and piracy
Body
A. After World War 1 cinema became very prominent due to the large disposable incomes of families. The cinema was established as a regular place to spend time.
a. Movie theatres began appearing in urban settings and marketing budgets were on the rise as to how to raise ticket sales.
b. The addition of sound and color led to a surge in ticket sales and revolutionized the way consumers viewed the movie experience.
B. Marketers began to perfect practices when it came to pitching movies and improving crowds. Before the digital age occurred, we saw large advertising budgets and dominant companies.
a. Companies such as MGM studios, Paramount Pictures and Miramax Films began taking over the industry and today are still large players in the cinema market.
b. Studios began playing to consumers interests and eventually started trying to create “blockbuster” movies.
C. In the digital age we see millions of movies being thrown around in many channels. Advertising can be seen everywhere now as marketers repeatedly try to boost ticket sales and limit costs.
a. A change in role occurred with the digital age as independent consumers are able to take advantage of low costs. Consumers now have the ability to produce and distribute their own films.
b. Classical cinema story lines such as western, slapstick comedy, musical and animated cartoon are still largely present but no longer adhere to aged rules.
c. The ability to share files in seconds has decreased consumer interest in the cinema experience. Has piracy changed the consumer’s view of movies (movies are mass-produced and lack substance) or has it affected the experience (the cinema venture has lost value)?
Wednesday, April 1, 2009
Wal-Mart vs. Target and its Effects on Consumers
Today’s consumer driven society is characterized by big firms and wide variety at each locale. Wal-Mart has long been the biggest retailer in American markets, but in the recent decade their same store sales have been decreasing while Target has built store loyalty and higher margins. It was only after the stock price crash fourth quarter of last year that Wal-Mart began to take back market share based on their everyday low price campaign. What are the differences in consumer views that have instilled this drastic change in store loyalty and sales?
Target
Target began under a different name, but created a store setup similar to that of Wal-Mart in the 1960’s. In recent years the company has taken a different path than that of Wal-Mart’s everyday low price, cheap appearance. Target took the variety and assortment model to a higher level by learning from mistakes that many discount stores experience. Consumers have begun to view the store as an upper class alternative because of characteristics such as cleaner floors, wider spaces, and organized racks.
Despite the fact that the company repeatedly can be seen charging slightly higher prices for identical items in comparison to Wal-Mart, the store is frequently patronized by those looking for a better experience with less confusion. Consumers believe Target has products that are fresh, original, and fashion-forward. In the years before 2008, Target created a high class experience while still maintaining competitive pricing on staple goods. These higher prices may be attributed to the higher level of service or nicer appearance of the stores products. This all serves in creating a unique experience that is overlooked in the Wal-Mart business model.
In recent months this strategy has been killing the company revenue model. In our time of financial crisis people can now be seen saving as much as possible and striving for better deals. The upper class atmosphere found within the store has created a negative attitude for consumers looking to keep costs as low as possible. The presence of, “anyone wearing a NASCAR shirt, purple sweat pants, and pink fluffy slippers”1 is now weighed less in comparison to higher prices in consumer minds.
Wal-Mart
Wal-Mart, also since the 1960’s, has been a power house in the retail industry and is known as a cut throat company that is destroying small town America. Consumers believe Wal-Mart does not put customers first and is merely trying to boost sales with each action. Cheaper floors and less aisle space have led consumers to believe the store maintains a low price bottom line for every product.
Consumer testimony shows that Wal-Mart is in fact over-crowded, short-handed at check out, and often full of people who pay little attention to their public appearance. Many Americans will probably answer in accord that a trip to Wal-Mart is nothing special to prepare for.
One area where Wal-Mart exceeds is its small town dominance over the years. American society has been quick to point out that this strategy often kills mom and pop stores, but consumers can justify this with the amount of convenience in acquiring more than a few days’ supplies under one roof and in record time.
In recent times many Americans are abandoning the Target strategy of high class atmosphere and jumping back on the Wal-Mart bandwagon in an effort to save money. Despite the fact that Targets prices are on average within 3% of Wal-Mart’s1, there are noticeable revenue differences based on the atmosphere that customers are supporting.
Similarities despite Consumer Thoughts/Behavior
Both Wal-Mart and Target are guilty of treating there workers poorly, stock piling large amounts of product, and strategically pricing so as to eliminate competition. The consumer preferences and labels towards both stores have lost value over time.
1 - http://blogs.moneycentral.msn.com/smartspending/archive/2008/03/28/wal-mart-vs-target-which-is-better.aspx
Target
Target began under a different name, but created a store setup similar to that of Wal-Mart in the 1960’s. In recent years the company has taken a different path than that of Wal-Mart’s everyday low price, cheap appearance. Target took the variety and assortment model to a higher level by learning from mistakes that many discount stores experience. Consumers have begun to view the store as an upper class alternative because of characteristics such as cleaner floors, wider spaces, and organized racks.
Despite the fact that the company repeatedly can be seen charging slightly higher prices for identical items in comparison to Wal-Mart, the store is frequently patronized by those looking for a better experience with less confusion. Consumers believe Target has products that are fresh, original, and fashion-forward. In the years before 2008, Target created a high class experience while still maintaining competitive pricing on staple goods. These higher prices may be attributed to the higher level of service or nicer appearance of the stores products. This all serves in creating a unique experience that is overlooked in the Wal-Mart business model.
In recent months this strategy has been killing the company revenue model. In our time of financial crisis people can now be seen saving as much as possible and striving for better deals. The upper class atmosphere found within the store has created a negative attitude for consumers looking to keep costs as low as possible. The presence of, “anyone wearing a NASCAR shirt, purple sweat pants, and pink fluffy slippers”1 is now weighed less in comparison to higher prices in consumer minds.
Wal-Mart
Wal-Mart, also since the 1960’s, has been a power house in the retail industry and is known as a cut throat company that is destroying small town America. Consumers believe Wal-Mart does not put customers first and is merely trying to boost sales with each action. Cheaper floors and less aisle space have led consumers to believe the store maintains a low price bottom line for every product.
Consumer testimony shows that Wal-Mart is in fact over-crowded, short-handed at check out, and often full of people who pay little attention to their public appearance. Many Americans will probably answer in accord that a trip to Wal-Mart is nothing special to prepare for.
One area where Wal-Mart exceeds is its small town dominance over the years. American society has been quick to point out that this strategy often kills mom and pop stores, but consumers can justify this with the amount of convenience in acquiring more than a few days’ supplies under one roof and in record time.
In recent times many Americans are abandoning the Target strategy of high class atmosphere and jumping back on the Wal-Mart bandwagon in an effort to save money. Despite the fact that Targets prices are on average within 3% of Wal-Mart’s1, there are noticeable revenue differences based on the atmosphere that customers are supporting.
Similarities despite Consumer Thoughts/Behavior
Both Wal-Mart and Target are guilty of treating there workers poorly, stock piling large amounts of product, and strategically pricing so as to eliminate competition. The consumer preferences and labels towards both stores have lost value over time.
1 - http://blogs.moneycentral.msn.com/smartspending/archive/2008/03/28/wal-mart-vs-target-which-is-better.aspx
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