BUY AT WELL KNOWN PLACES
Shopping over the Internet can be as safe as shopping on the street or in a store as long as you know where to make your purchases. The electronic commerce is well developed and there are big companies working on the sector. Giving preference to these companies is one way to safely prevent that your personal data and financials get lost or stolen.
VERIFY THE SECURITY CONDITION OF THE SITE
The first step is to verify how secure the site is. When you access an online store, there must be evidence of some sort of secure method that requires usernames and passwords combined with email, text or phone confirmation with a secure code. Some countries have what is called a digital certificate and the access to information changes on monthly bases. An example of these constant changes is the use of letters and numbers where at one month letter A =1 and the next, letter A =4. In general safe addresses start with “https”, where the “s” symbolizes a safe transaction.
KEEP YOUR COMPUTER SAFE
As important as the safety of an online store is the safety of your computer. Keep distance from sites that you don’t know, avoid emails that you don’t recognize and keep an updated anti-virus program on your computer. Always visits the site of the suppliers of the programs that protect your computer and install all the updates of security as soon as they will be available.
PRIVACY POLICY
Another to verify if a site is secure is looking at its privacy policy. A clear and concise privacy policy describing in detail how your information will be handled is a good point of reference. Always verify if the website won’t keep your information on a database (at least the critical information).
SPAM
Never buy anything or even access a product or link that comes on a spam. The act of sending a spam message demonstrates how unethical that company is. If a company doesn’t care about sending a spam, just imagine what it can do with your information.
Wednesday, June 9, 2010
Thursday, June 3, 2010
Does EVERY website NEED an interactive community?
In order to answer or to discuss the need for an interactive community, I would refer to one of our blogs “Can Your Brand Thrive WITHOUT Online Social Media?” which we have discussed the need of web advertising. There, we see that some companies might be better if they don’t get involved with this new media channel.
The example given –weather.com – is a good start point for our discussion. It goes back to the same principle of any business…how are they paying their bills? How do they profit?
We know that the web can be a good source of revenue if used wisely and in line with the company objectives and goals. As we saw, it doesn’t make too much sense for Boeing to have an interactive web page.
Another example would be a private school. Private schools should have a web site to help parents follow the school activities, children’s files, calendars and so on.
However, if the school tries to get feedback from the parents by starting an interactive community, it would be filled of complaints instead of constructive exchange of information.
For the weather.com, the first question should be if the company needs the revenue from the web to support itself while having the web page. They may need feedback from people that access the site to create a better environment but I don’t see a benefit on having an interactive community.
Next, a list of some websites where interactive communities are not present:
www.colegiocemp.com.br
www.amil.com.br
www.embraer.com
Interactive community:
www.theacornonline.com/comlink-00.html
en.wikipedia.org/wiki/Virtual_community
wiki.answers.com/.../What_are_the_benefits_of_using_internet_services_to_a_community
The example given –weather.com – is a good start point for our discussion. It goes back to the same principle of any business…how are they paying their bills? How do they profit?
We know that the web can be a good source of revenue if used wisely and in line with the company objectives and goals. As we saw, it doesn’t make too much sense for Boeing to have an interactive web page.
Another example would be a private school. Private schools should have a web site to help parents follow the school activities, children’s files, calendars and so on.
However, if the school tries to get feedback from the parents by starting an interactive community, it would be filled of complaints instead of constructive exchange of information.
For the weather.com, the first question should be if the company needs the revenue from the web to support itself while having the web page. They may need feedback from people that access the site to create a better environment but I don’t see a benefit on having an interactive community.
Next, a list of some websites where interactive communities are not present:
www.colegiocemp.com.br
www.amil.com.br
www.embraer.com
Interactive community:
www.theacornonline.com/comlink-00.html
en.wikipedia.org/wiki/Virtual_community
wiki.answers.com/.../What_are_the_benefits_of_using_internet_services_to_a_community
Wednesday, May 26, 2010
Brand Awareness
What is brand Awareness? By definition, Brand awareness, in marketing, is the ability a consumer has to recognize and recall a brand. [1]
Before we discuss brand awareness, let’s first understand the process to get to it.
An individual or a group decided to form a company based on an idea to deliver a product or service. An analysis of the macro and micro environment is made to include industry, threats, suppliers, buyers, demographics, locations, laws and regulations among other drivers.
Once all of that is sorted, the brand is created. A brand may come in different forms such as a logo or a name. The concept behind the brand is to create an identity to the company’s product or service. Companies protect their brands by registering a trademark which is a type of intellectual property.
Now we have our company, wholesaler or retailer functioning with a name and a product. But how do we get people – consumers – to know us? How do we get them to know our brand? How do we build brand awareness?
It’s a delicate process very similar to build trust on a relationship. Like people, some products and services are very sensitive and the actions of a company can be very detrimental to its brand. In other words, one lie can kill one thousand truths.
It’s extremely important to brand correctly because at the end the price paid for your product is direct related to your brand.
Some strategies have been used to build brand awareness. A clear mission and vision is the starting point. A brand statement defining who you are gives the foundation to move ahead.
Develop a brand that is worth believing in. Make sure that your product or service can deliver, that it can meet your consumers’ expectations.
Create a relationship with your customers because they are the ones that ultimately will determine your brand’s value. Listen to them and build a consistent, efficient and fast customer relations unity.
Understand your competitive advantage, what sets you apart from your competitors - Strategic awareness*
Overall, the aforementioned strategies are a good point of start but depending on the industry, product, target segment, etc... Many other factors may be considered as well.
*Strategic awareness occurs when not only does the person recognize your brand, but they also understand the distinctive qualities that make it better than the competition. Strategic awareness occurs when you have differentiated your brand in the mind of your market. This distinction as to why your brand is unique in your category is also referred to as your Unique Selling Proposition or USP. Your USP tells your target market what you do and stand for that is different from all of your competitors. [2 & 3]
1 - http://en.wikipedia.org/wiki/Brand_loyalty
2 - http://www.the2bowmans.com/Strategic-Awareness-intro.html
3 - http://www.davedolak.com/articles/dolak4.htm
Before we discuss brand awareness, let’s first understand the process to get to it.
An individual or a group decided to form a company based on an idea to deliver a product or service. An analysis of the macro and micro environment is made to include industry, threats, suppliers, buyers, demographics, locations, laws and regulations among other drivers.
Once all of that is sorted, the brand is created. A brand may come in different forms such as a logo or a name. The concept behind the brand is to create an identity to the company’s product or service. Companies protect their brands by registering a trademark which is a type of intellectual property.
Now we have our company, wholesaler or retailer functioning with a name and a product. But how do we get people – consumers – to know us? How do we get them to know our brand? How do we build brand awareness?
It’s a delicate process very similar to build trust on a relationship. Like people, some products and services are very sensitive and the actions of a company can be very detrimental to its brand. In other words, one lie can kill one thousand truths.
It’s extremely important to brand correctly because at the end the price paid for your product is direct related to your brand.
Some strategies have been used to build brand awareness. A clear mission and vision is the starting point. A brand statement defining who you are gives the foundation to move ahead.
Develop a brand that is worth believing in. Make sure that your product or service can deliver, that it can meet your consumers’ expectations.
Create a relationship with your customers because they are the ones that ultimately will determine your brand’s value. Listen to them and build a consistent, efficient and fast customer relations unity.
Understand your competitive advantage, what sets you apart from your competitors - Strategic awareness*
Overall, the aforementioned strategies are a good point of start but depending on the industry, product, target segment, etc... Many other factors may be considered as well.
*Strategic awareness occurs when not only does the person recognize your brand, but they also understand the distinctive qualities that make it better than the competition. Strategic awareness occurs when you have differentiated your brand in the mind of your market. This distinction as to why your brand is unique in your category is also referred to as your Unique Selling Proposition or USP. Your USP tells your target market what you do and stand for that is different from all of your competitors. [2 & 3]
1 - http://en.wikipedia.org/wiki/Brand_loyalty
2 - http://www.the2bowmans.com/Strategic-Awareness-intro.html
3 - http://www.davedolak.com/articles/dolak4.htm
Can Your Brand Thrive WITHOUT Online Social Media?
Wikipedia defines Social media as “media designed to be disseminated through social interaction, using highly accessible and scalable publishing techniques. Social media use web-based technologies to transform and broadcast media monologues into social media dialogues.” [1] Andreas Kaplan and Michael Haenlein define social media as "a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0 and that allow the creation and exchange of user-generated content.” [2]
Social media has allowed business to connect with consumers around the globe. As more and more consumers connect with various social media sites, they become more brand aware and more educated about consumer trends. Social media has marked a milestone in the world of marketing, everyone is doing it.
The concept of marketing on Social sites has many up sides. The beauty of social marketing is that a marketer can test it out and get instantaneous reports. If something doesn’t seem to work, they can change their marketing efforts or focus on another channel. This is not possible with the traditional advertising channels where a marketer can wait up to several months before seeing a report.
Another benefit to using social marketing channels is that you are guaranteed to remain within your specified budget. Facebook and YouTube enable the user to set up an account and specify maximum daily and/or monthly budget limits. Your account specifications are uploaded to the site’s database and once your max is reached, your account will not be charged further until the next cycle begins.
Web 2.0 marketing strategy allows a company to market precisely to their target. A channel like Facebook will capture detailed demographic information about the user and in turn will use this information to determine which advertisements will work best based off of their profile statistics. This highly effective “pull-marketing” tactic allows marketers to market their products in a non-invasive, non-threatening manner. Viewers/consumers may or may not click on the banner add. Viewers may or may not choose to comment on the product, ad, video, etc. In the world of Web 2.0, the consumer is the decision maker.
There are several downsides to Web 2.0 marketing. The most obvious negative is the fact that negative information about a business’s brand, product or service, can spread virally just as quickly as positive information. This negative press can destroy the credibility of a brand. Consider this fact: 78% of global consumers say they trust and believe other people's recommendations for products and services - more than any other medium, including newspapers, conventional and online advertising [3]. If those recommendations are negative, the effects can be detrimental.
Traditionally, marketing has always had a top-down approach where marketers develop a campaign and push their content toward their target market. The social marketing phenomenon has introduced a pull method, where the consumers seek out their products. This new wave creates a barrier for the traditional marketers who are not yet ready to adapt to the new pull methods. To overcome these barriers, Jennifer Leggio [4], social media blogger, summarized her learnings after the 2009 Web 2.0 Expo. She reiterated that to adapt to this cultural change, a business has to get the big guns (the executives) involved. She recommends starting small and experimenting and then branching out further as marketers gain confidence and comfort.
Finally, companies have to decide their need to be part of this new emerging channels of advertising. They have to investigate and decide if by exploring this new media they would achieve their advertising objectives. Can they substitute their existing media plan? What are the expected results? What are the benefits and risks? All questions must be answered before changing methods and embracing the explosive propagation of new media.
1 - http://en.wikipedia.org/wiki/Social_media
2 - http://www.slideshare.net/guestef2b2f/social-media-definition-and-classification
3 - http://www.highbeam.com/doc/1G1-170803247.html
4 - http://blogs.zdnet.com/feeds/?p=887
Social media has allowed business to connect with consumers around the globe. As more and more consumers connect with various social media sites, they become more brand aware and more educated about consumer trends. Social media has marked a milestone in the world of marketing, everyone is doing it.
The concept of marketing on Social sites has many up sides. The beauty of social marketing is that a marketer can test it out and get instantaneous reports. If something doesn’t seem to work, they can change their marketing efforts or focus on another channel. This is not possible with the traditional advertising channels where a marketer can wait up to several months before seeing a report.
Another benefit to using social marketing channels is that you are guaranteed to remain within your specified budget. Facebook and YouTube enable the user to set up an account and specify maximum daily and/or monthly budget limits. Your account specifications are uploaded to the site’s database and once your max is reached, your account will not be charged further until the next cycle begins.
Web 2.0 marketing strategy allows a company to market precisely to their target. A channel like Facebook will capture detailed demographic information about the user and in turn will use this information to determine which advertisements will work best based off of their profile statistics. This highly effective “pull-marketing” tactic allows marketers to market their products in a non-invasive, non-threatening manner. Viewers/consumers may or may not click on the banner add. Viewers may or may not choose to comment on the product, ad, video, etc. In the world of Web 2.0, the consumer is the decision maker.
There are several downsides to Web 2.0 marketing. The most obvious negative is the fact that negative information about a business’s brand, product or service, can spread virally just as quickly as positive information. This negative press can destroy the credibility of a brand. Consider this fact: 78% of global consumers say they trust and believe other people's recommendations for products and services - more than any other medium, including newspapers, conventional and online advertising [3]. If those recommendations are negative, the effects can be detrimental.
Traditionally, marketing has always had a top-down approach where marketers develop a campaign and push their content toward their target market. The social marketing phenomenon has introduced a pull method, where the consumers seek out their products. This new wave creates a barrier for the traditional marketers who are not yet ready to adapt to the new pull methods. To overcome these barriers, Jennifer Leggio [4], social media blogger, summarized her learnings after the 2009 Web 2.0 Expo. She reiterated that to adapt to this cultural change, a business has to get the big guns (the executives) involved. She recommends starting small and experimenting and then branching out further as marketers gain confidence and comfort.
Finally, companies have to decide their need to be part of this new emerging channels of advertising. They have to investigate and decide if by exploring this new media they would achieve their advertising objectives. Can they substitute their existing media plan? What are the expected results? What are the benefits and risks? All questions must be answered before changing methods and embracing the explosive propagation of new media.
1 - http://en.wikipedia.org/wiki/Social_media
2 - http://www.slideshare.net/guestef2b2f/social-media-definition-and-classification
3 - http://www.highbeam.com/doc/1G1-170803247.html
4 - http://blogs.zdnet.com/feeds/?p=887
Wednesday, May 19, 2010
MARKET SEGMENTATION
Consumers are not part of a homogenous group. Buyers have different needs and desires. So, for companies, market segmentation is crucial. It defines competitors and Industry.
It helps you to understand and define your business. Once you do that, you have a clear picture of your customers and competitors. More important, it determines what you do – your strategy.
Critics would say that there is no right way to identify or define your industry. You can try a narrow or a broad definition with pros and cons. A narrow definition will focus more on specific resources and purpose but may potentially failed to see threats and opportunities. A broad definition is focused on the “big picture” but may lose focus and use wasted resources.
The Basis for Segmentation: Customer and Product Characteristics:
Opportunities for Differentiation
Characteristics of the Buyers
Industrial buyers
Size
Technical
Sophistication
OEM/replacement
Household buyers
Demographics
Lifestyle
Purchase occasion
Distribution channel
Size
Distributor/broker
Exclusive/nonexclusive
General/special list
Geographical location
Characteristics of the Product
Physical size
Price level
Product features
Technology design
Inputs used (e.g. raw materials)
Performance characteristics
Pre-sales & post-sales services
Kotler mentions five criteria for an effective segmentation:
• Measurable: It has to be possible to determine the values of the variables used for segmentation with justifiable efforts. This is important especially for demographic and geographic variables. For an organization with direct sales (without intermediaries), the own customer database could deliver valuable information on buying behavior (frequency, volume, product groups, mode of payment etc).
• Relevant: The size and profit potential of a market segment have to be large enough to economically justify separate marketing activities for this segment.
• Accessible: The segment has to be accessible and servable for the organization. That means, for instance, that there are target-group specific advertising media, as magazines or websites the target audience likes to use.
• Distinguishable: The market segments have to be that diverse that they show different reactions to different marketing mixes.
• Feasible: It has to be possible to approach each segment with a particular marketing program and to draw advantages from that.
http://www.businessplans.org/Segment.html
http://www.netmba.com/marketing/market/segmentation/
http://www.greenbook.org/marketing-research.cfm/examples-market-segmentation
http://www.themanager.org/marketing/segmentation.htm
http://www.learnmarketing.net/segmentation.htm
It helps you to understand and define your business. Once you do that, you have a clear picture of your customers and competitors. More important, it determines what you do – your strategy.
Critics would say that there is no right way to identify or define your industry. You can try a narrow or a broad definition with pros and cons. A narrow definition will focus more on specific resources and purpose but may potentially failed to see threats and opportunities. A broad definition is focused on the “big picture” but may lose focus and use wasted resources.
The Basis for Segmentation: Customer and Product Characteristics:
Opportunities for Differentiation
Characteristics of the Buyers
Industrial buyers
Size
Technical
Sophistication
OEM/replacement
Household buyers
Demographics
Lifestyle
Purchase occasion
Distribution channel
Size
Distributor/broker
Exclusive/nonexclusive
General/special list
Geographical location
Characteristics of the Product
Physical size
Price level
Product features
Technology design
Inputs used (e.g. raw materials)
Performance characteristics
Pre-sales & post-sales services
Kotler mentions five criteria for an effective segmentation:
• Measurable: It has to be possible to determine the values of the variables used for segmentation with justifiable efforts. This is important especially for demographic and geographic variables. For an organization with direct sales (without intermediaries), the own customer database could deliver valuable information on buying behavior (frequency, volume, product groups, mode of payment etc).
• Relevant: The size and profit potential of a market segment have to be large enough to economically justify separate marketing activities for this segment.
• Accessible: The segment has to be accessible and servable for the organization. That means, for instance, that there are target-group specific advertising media, as magazines or websites the target audience likes to use.
• Distinguishable: The market segments have to be that diverse that they show different reactions to different marketing mixes.
• Feasible: It has to be possible to approach each segment with a particular marketing program and to draw advantages from that.
http://www.businessplans.org/Segment.html
http://www.netmba.com/marketing/market/segmentation/
http://www.greenbook.org/marketing-research.cfm/examples-market-segmentation
http://www.themanager.org/marketing/segmentation.htm
http://www.learnmarketing.net/segmentation.htm
Monday, May 17, 2010
Where should companies draw the line in their activities abroad?
It all depends on where the activities are being held. There are a block of countries where laws and regulations are taking seriously such as the US, some countries in Europe and Australia. Countries from South America are more corrupted and it’s very hard to comply with the law and still have a profit. Africa still has a lot of turmoil – wars – and it makes even harder to comply with ethical and moral values.
A US company operating in Asia, may adopt the same guidelines as it would domestically in US, with some adjustments to local context. For example, installing filters to avoid air pollution should be a standard procedure regardless of the country minimum requirement. In case the US requirements are more stringent, then it should follow this level, or be very close to it. Working conditions also should be of higher standards, even if local practices are at low levels. Wages should be accessed according to the local context, but in case the local wages are too low, companies should offer minimum wages compatible with a decent living condition.
For each scenario, companies need to mold to the culture and values of the specific place. We tend to believe that corporations have an obligation to do more for society. So, corporations should not engage in illegal activities such as bribery. However, if they don’t do it, they won’t be able to operate and survive in certain countries. Therefore, the right thing to do is to close the operations and layoff thousands of people.
Unfortunately, we need to understand that sometimes is better to have a little wrong to produce a greater good for a large number of people. According to the principle of utilitarianism, the right way to behave in a given situation is to choose the alternative that is likely to produce the greatest overall good. The positives and negatives must be weighted from the situation at hand and how they will affect both parties, the business and its employers. Cultural norms and practices in ethics should be researched for the country by the company so they are not pushing any of these limits
But, we can draw the line where the basic human rights are violated. We should not tolerate slavery, torture, and distinction of any kind, such as race, color, sex, language, religion, political or other opinion.
A US company operating in Asia, may adopt the same guidelines as it would domestically in US, with some adjustments to local context. For example, installing filters to avoid air pollution should be a standard procedure regardless of the country minimum requirement. In case the US requirements are more stringent, then it should follow this level, or be very close to it. Working conditions also should be of higher standards, even if local practices are at low levels. Wages should be accessed according to the local context, but in case the local wages are too low, companies should offer minimum wages compatible with a decent living condition.
For each scenario, companies need to mold to the culture and values of the specific place. We tend to believe that corporations have an obligation to do more for society. So, corporations should not engage in illegal activities such as bribery. However, if they don’t do it, they won’t be able to operate and survive in certain countries. Therefore, the right thing to do is to close the operations and layoff thousands of people.
Unfortunately, we need to understand that sometimes is better to have a little wrong to produce a greater good for a large number of people. According to the principle of utilitarianism, the right way to behave in a given situation is to choose the alternative that is likely to produce the greatest overall good. The positives and negatives must be weighted from the situation at hand and how they will affect both parties, the business and its employers. Cultural norms and practices in ethics should be researched for the country by the company so they are not pushing any of these limits
But, we can draw the line where the basic human rights are violated. We should not tolerate slavery, torture, and distinction of any kind, such as race, color, sex, language, religion, political or other opinion.
Will Only the Rich Get High-Quality News Online?
The New York Times and some news outlets are ready to charge for their online content. The NYT has been developing this idea for over a year. It has considered three types of pay strategies but it seems that it will adopt the pay wall approach. The move has been seen by some as a radical approach as it would restrict its content to a minority of people that can afford to pay [1-2].
Newspapers have endured a huge loss in circulation and in advertising. It has been so bad that some blogs refer to it as “the death of the newspaper” and a group - The Newspaper Project - has been formed to fight against the misconception that newspapers are a dying industry [3]. If you follow this http://timeswv.com/business/x681701079/Newspaper-problems, you will find some facts about newspapers gathered by the Newspaper Association of America.
But the question here is not whether newspapers are running out of time but whether people have the right for free information. Do we actually have free information?
We have been paying for information for quite a while. We pay for the news that are broadcast by CNN, Fox, Bloomberg, NBC…we also pay for the contents on MSN, Yahoo, AOL.. How? We pay for cable and internet services! So, why would we be so defensive if a paper such as the NYT wants to charge?
Furthermore, it’s a misconception to think that it would affect the poor. Are we assuming that the less fortunate have access to a computer and to the internet? One of the potential limitations on the growth of B2C e-commerce is the global inequality that limits access to phones and pc’s [4].
Finally, the price that one would pay for a newspaper is not that significant. If we see an article that we would like to follow, we just have to go to a newsstand and buy the paper ($5.00?). More important changes in cost of living were gas prices, milk, and rice, among many others.
Food for thought: Is it really quality news?
Sources:
1- http://nymag.com/daily/intel/2010/01/new_york_times_set_to_mimic_ws.html
2 - http://www.nytimes.com/2010/02/03/business/media/03brill.html
3 - http://timeswv.com/business/x681701079/Newspaper-problems
4 - e-commerce: business, technology, society 2010, 6th Edition by Kenneth C. Laudon and Carol Guercio Traver, ©2010, ISBN-13: 9780136100577
Newspapers have endured a huge loss in circulation and in advertising. It has been so bad that some blogs refer to it as “the death of the newspaper” and a group - The Newspaper Project - has been formed to fight against the misconception that newspapers are a dying industry [3]. If you follow this http://timeswv.com/business/x681701079/Newspaper-problems, you will find some facts about newspapers gathered by the Newspaper Association of America.
But the question here is not whether newspapers are running out of time but whether people have the right for free information. Do we actually have free information?
We have been paying for information for quite a while. We pay for the news that are broadcast by CNN, Fox, Bloomberg, NBC…we also pay for the contents on MSN, Yahoo, AOL.. How? We pay for cable and internet services! So, why would we be so defensive if a paper such as the NYT wants to charge?
Furthermore, it’s a misconception to think that it would affect the poor. Are we assuming that the less fortunate have access to a computer and to the internet? One of the potential limitations on the growth of B2C e-commerce is the global inequality that limits access to phones and pc’s [4].
Finally, the price that one would pay for a newspaper is not that significant. If we see an article that we would like to follow, we just have to go to a newsstand and buy the paper ($5.00?). More important changes in cost of living were gas prices, milk, and rice, among many others.
Food for thought: Is it really quality news?
Sources:
1- http://nymag.com/daily/intel/2010/01/new_york_times_set_to_mimic_ws.html
2 - http://www.nytimes.com/2010/02/03/business/media/03brill.html
3 - http://timeswv.com/business/x681701079/Newspaper-problems
4 - e-commerce: business, technology, society 2010, 6th Edition by Kenneth C. Laudon and Carol Guercio Traver, ©2010, ISBN-13: 9780136100577
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