Volkswagon Marketing has failed, I’ll never own a Passat.

Posted on May 13, 2009 by . Filed under: business, marketing

Do you remember the Passat commercial where the guy is driving a nice Passat and is stopped at the border where the border guards proceed to dismantle the guy’s Passat? I don’t know what point of that commercial is supposed to make me want to buy a Passat.

In marketing, one of the fundamental points to make to the consumer is that by buying the advertised product, their life will be better, more fulfilled, or that they will benefit in some way. It’s the general idea that has to get across so that a customer thinks that they have to have the advertised product.

At what point is this message portrayed to the consumer? It’s not. Lately we’ve been seeing more advertising geared developing a sense of superiority. It’s not a buy this because it will make your life better, but buy this because it will show that you are above others and you will have something others want but don’t have. As a matter of fact, your life probably will be worst off having this, but you will have what others want but don’t have and for that alone, buy it.

Do you own any of these cars?

1. 1991 Honda Accord
2. 1995 Honda Civic
3. 1989 Toyota Camry
4. 1994 Dodge Caravan
5. 1994 Nissan Sentra
6. 1997 Ford F150 Series
7. 1990 Acura Integra
8. 1986 Toyota Pickup
9. 1993 Saturn SL
10. 2004 Dodge Ram Pickup

If so, you may be fall under the category mentioned above. According to State Farm, these are the cars stole most often in 2005. Why buy a car that has a greater chance of being stolen? The sense of style or some of the included features gives us a sense of comfort that even though we have a greater chance of having our car stolen, we still will choose to have the car.

Part of the mentality that we have today gives greater emphasis to our sense of style and superiority, which overcomes the traditional sense of practicality. Because of this we will see more and more marketing geared to appeal these senses, regardless of how impractical or burdensome the luxury items may be.

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Time for Something New?

Posted on May 12, 2009 by . Filed under: business, management, marketing

With the recent economic issues, and nearly all business sectors taking hits as the economy still drags through the recession, I wonder if it’s the opportune time for companies to try new ways of doing business. I mean, if you’re struggling as it is, and especially for those companies that have seen the writing on the wall and are facing closure, isn’t it worth it to try one last ditch effort at making it in their line of work?

The airline industry had quite a bit of time in the headlines for the financial problems they faced. The problems haven’t gone away, the media has just gotten tired of reporting on that and are currently in the financial sector market. I read a recent article about the airline ticket pricing business and felt maybe, just maybe, things could change if they changed their ticket pricing rules.

Sure, millions have been spent in designing models to determine how, when, and for how much tickets should be sold, but one thing I always ask myself and ask of ideas: What has come of it? In the airlines’ case, not much. Still the same stale business, with consumers ever more frustrated and feeling just plain not satisfied.

Jon Bonné, with MSNBC, explains it like this:

…the old models are breaking down. Price ratios between the lowest and highest fares have spread as far as 20 to one, which is a difficult split for anyone to explain. The full-fare traveler has become increasingly difficult to woo, in part because of the economy and in part because of low-fare competitors.

The models for selling airline tickets are extremely complicated. Tickets are sold in groups, at different times, and for different prices. This leaves consumers second-guessing their choice of buying a ticket. “Will the ticket price be lower tomorrow? Will it be lower the day before the flight? It’s like pulling teeth if I have to change my ticket, maybe I’ll just wait….” and so airlines miss out on business, because people just can’t make a decision without a transparent process where they are informed.

It’s like buying a car. I can’t stand going near a car dealership because I never see prices on cars. Consumers often ask themselves, “How do I know that the salesman is not going to up the price on me? Do I really have to sit here and haggle with this guy about the price of the car?” And so many more people who maybe would have gone to the dealership and could have purchased a car stay away, far away.

Companies are springing up doing the opposite. Small airlines have basic pricing on tickets. If the ticket is available, it’s the same price yesterday, today, tomorrow, a week from now. Book early and get the peace of mind. Car dealerships are beginning to offer, low-price guarantees, with NO HAGGLING (love Carmax for that, will go back to them over and over again).

Companies that are unsure about their economic future should seize the opportunity to break away from the mold that has been created in the business world. Consumers are now living in the information age, with a few strokes of the keyboard and clicks of a mouse, stores and stores on information is available to the consumer. People like to be informed, they like to know what to expect when going into an experience. Give the people what they want, it just works better that way.

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Computers in the Near Future

Posted by . Filed under: business, general, marketing, technology

I think that computer companies too often get caught up on petty ad wars “I’m a Mac…”, “I’m a PC.” Not enough is being done to show consumers where we’re going and why we should stick with a computer company.

I came across a great video that gives us a glimpse of things to come. We should see more of this. People want it, need it. Yeah, you’ll get a few laughs when the PC guy sneezes (supposedly having a virus), and the PC guys will scoff at the Mac people and their having to pay the “Mac Tax“. Overall, what keeps customers and keeps them happy is to see where we’re going and to feel like they’re part of that future.

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