Month: June 2012

What should companies use Facebook for?

Taura Khuluma Say it!!, , , , , , , , , , Leave a comment

 

 

 

 

 

 

 

 

 

 

Much of the hype behind the actual value of Facebook was to an extent based on the business potential of the site in terms of it being used as a market platform for companies. But, a big but, the transformation of facebook from being a free service for individual user to a site that companies use to target the free service users has many obstacles to over come, firstly how will customers react to deliberate commercialisation of their social capital? there are lessons to learn from the experiences at myspace and capitalisation of social interaction, it didn’t work too well. The next question is how can companies guarantee that their investment will receive coverage that justifies the expanditure on advertising on facebook? There are already several conspiracy theories regarding coverage, exposure and publicity limitations being imposed, randomly or otherwise, by facebook. So, investment on advertising might only produce a fraction of expected market outcomes afterall.

My reservations against the investment in advertsing on Facebook, as shared by www.larrykwirirai.com, are based on two observations, one of which is that marketers are being opportunistic in trying to convert social interaction into commercial capital. And, the other is that, without complete control if this process, since Facebook will manage all the analytics, there are serious strategic gaps that bring up red flags to observers.

I personally think any company looking to use Facebook as an out and out marketing platform to sell products need to fire their marketing team. Selling and overtly capitalist conduct goes against the whole ethos of social media!. Facebook should be a relationship building platform used to develop brand affinity and general communications while giving customers access into the organisation. It’s all about interaction and whether or not this leads to increased sales is dependent on the use of the data gathered via these interactions with customers and strategic capability of the marketing department to convert brand awareness into brand loyalty.

Just because Facebook has hundreds of millions of people to sell things to doesn’t mean marketers should be lazy, there is still the need to be creative be proactive in responding to customers needs if marketers are to successfuly sell their products while using Facebook as part of an effective marketing strategy!

Everyone can be your customer, even your supplier!

Taura Khuluma Say it!!, , , , , , Leave a comment

The pressure to sell is greater than ever in these austerity driven times because the more a company can sell the better it would be able to not only survive but also compete in an environment that has driven down profit margins to the bearest minimum.  So where possible companies are finding that strategic alliances or strategic networks can also be fertile hunting grounds for sales generation.

Consider the case of Tom tom and Aple, until now Tom Tom has used the iOS App Store as platform to sell its products and profitably so, I might add. But, this postion is now compromised because over time other brands selling the same product have also joined the market place and have come with the benefit of learning from Tom Tom’s experiences which has enhanced their competitive strategies to levels where they are out selling Tom Tom with better products and lower prices. Tom Tom have had to look around for further opportunities to sell their product and realised that developments on the iOS have created sales opportunities. Apple have ditched the Google Maps for their own maps app in the next version of the iOS and it has been announced that Tom Tom will supply the maps for the new Apple Maps! The intricacies of the deal havent yet been published but the benefits will not be little especially if the deal pays on units installed and not on a flat fee. Click the link to drink from the source!

http://www.pocket-lint.com/news/46081/tomtom-supplies-apple-maps-ios6

Commercializing your talents

Taura Khuluma Say it!!, , , , , , , , , , , , , Leave a comment

Looking through Twitter this week I got caught up in a discussion about how Zimbabwean hip hop artist and producers are failing to grow consumership in the Zimbawean market or any other market for that matter. The discussion  brought foward several issues that observers felt contributed to the lack of the development in the genre’s quest for recognition and market share. The aim for any artist is to be recognised for their craft and for the craft to be taken seriously but it seems achieving this or knowing how to achieve it is beyond the grasp of the players in the music industry. This is an which goes beyond just the artist because there are record labels  investing in studio time and production of music which does not bring in much revenue.

The question amongst many participants in the Twitter discussion was what can be done to change the market position of hip hop music in the Zimbabwean market and then also package the music so that it can be sold to an international audiance? I think the starting point for everyone concerned with this product is to put themselves in the position of a customers and ask the following questions;

What value do I get from the product?

Why should I choose this product instead of the alternatives that are in the market?

It is also good practice at this point to do some market research with whoever the industry considers to be their target market. It is my opinion that most of the products that fail to gain any foot hold in their target market would have failed to answer these two questions. But these are very important questions for any customers and require an answer. That answer will be the reason customers buy the product.

Once those questions are answered all players should then look at their product in terms of attractiveness of the markets and this could be done by asking the following questions;

How much of the market is a potential market for our product?

Who are we competing with?

Who is the market leader and what are their core competencies and USPs?

How can we nullify their competitive advantage and convert their advantage into our own?

What resources to we need to achieve this?

It is my belief that in answering these questions honestly the musicians will come up with a product that is acceptible to the market, competitive against its rivals but more importantly the artists will be more aware of the value they give to their customers.

But some people will say good music or art does not need commercialisation or strategic planning, it sells itself….