Archive for the ‘ web 2.0 ’ Category

Internet Killed the Salesperson?

In a day and age where an increasing amount of business is being conducted online, many industries are finding themselves unable to cope with the costs associated with implementing internet business strategies. The troubles have been clear for many industries including newspapers, textbook publishers, record companies, etc.

In a recent blog post mentioned by one of my professors, automakers have noted a decrease in the auto sales among Generation Y consumers. Some believe this drop has been caused by the popularity of social media, apparently creating an ease in friends’ connecting and carpooling to various locations together. They also note teens’ and twenty-somethings’ increased desire for electronics and other goods, which often tie up their income. Just as the rest of the nation, however, Generation Y is being hit hard by this “Great Recession.” With jobs being lost, hours being cut and tuition costs on the rise, many of us are being forced to cut back and simply cannot afford the costs associated with acquiring a car.

The internet does, however, create a new medium that sales personnel must utilize in order to maximize sales. Generation Y consumers are a unique segment. In order to create a lasting marketing campaign among this target it is essential to use cutting edge tools, such as those available through online and mobile APIs (Application Program Interface) that can be tied into brand value.

One of my personal favorites is Foursquare, a popular new app that combines GPS, reviews and ratings to provide you with a snapshot of what your friends are up to tonight. Upon arriving at a new destination, users can “check-in” to that location — be it a gas station, a restaurant, a theater, a nightclub and so on. Users can leave tips on this location’s home page, invite friends to attend, and post their check-ins to Facebook and Twitter. Upon checking into Sergio’s, for example, Luis E. would recommend you try the pollo empanizado! It’s free brand support such as this that is truly exciting in terms of marketing potential.

So while some industries might complain that the internet is driving away business, in reality I believe consumers are simply looking for more interactivity. For example, as newspapers are struggling to stay alive it’s not as if people simply don’t pay attention to the news anymore; they’re just going online to view it for free and at their own leisure from any computer, smart phone or laptop. The internet isn’t killing sales — it’s simply changing the way companies must approach it.

References:
“Carmakers’ next problem: Generation Y”
http://www.msnbc.msn.com/id/39970363/ns/business-autos

“E-Marketing for Sensible Folk”
http://e-marketingforsensiblefolk.blogspot.com

“Application Programming Interface”
http://en.wikipedia.org/wiki/Api

Foursquare
http://foursquare.com/about
http://foursquare.com/venue/11751

Image:
http://commons.wikimedia.org/wiki/File:Texting.jpg

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Information, the Internet and Government

One of the primary topics I cover in this blog is the amazing change we can observe in information search and retrieval. We’ve only reached the tip of the iceberg in utilizing the internet for daily activities including studying, finding recipes, purchasing used furniture, contacting a friend in Hong Kong, donating to an orphanage in Moscow, and so on and so forth.

It’s these new advances in technology that are sending ripples throughout factors of our daily lives, simply because we are a society based upon information. The information we place — and have access to — online grows exponentially each year. It is with this surge in the availability of data that entire businesses have been designed to streamline the process: Google AdWords, Facebook, Amazon, etc. With this shift in power from manuscript to “140 characters or less,” even governments are taking action. Just this past summer, the United States Library of Congress announced it would be archiving all Tweets in order to record how our society is maintaining communication and interacting.

Stories such as these do raise some concerns, however. Namely, how much information do government entities have access to? How might this information be used in an unethical manner? These concerns are legitimate, and we need to take a close look at how information search and retrieval is changing in order to understand what troubles might lie ahead.

References:
“Library of Congress to Archive Your Tweets”
http://articles.cnn.com/2010-04-14/tech/library.congress.twitter_1_tweets-micro-blogging-twitter…

Twitter: Brand Development or Publicity Gimmick?

Based on current trends in today’s Web 2.0 marketplace, you’d be hard pressed to find a single piece of information on the world wide web that doesn’t have a button to “Recommend on Facebook” or “Share on Twitter” (by the way, be sure to click above to share this blog on your favorite site). Businesses large and small are catching on to the social media craze, and developing new techniques to harness the power of this new form of “personalized” mass communication.

Experts are adamant on the question of whether social media does or does not drive consumers’ purchasing decisions, with each side touting research studies to back their respective claims. But is it really so simple to quantify how these new media impact the customers’ mindset of a brand? Can all the variables truly be account for? Most studies are inconclusive.

One of the aforementioned communication techniques businesses are using, by which they utilize word of mouth from the general public in order to accomplish tasks, has been dubbed crowdsourcing. This is a concept that has been used frequently on social media web sites, blogs, etc., particularly on the quirkiest, fastest information channel of them all: Twitter. Fueled by the modern individual’s desire for immediate gratification and information that appeals to customized tastes, Twitter (famously in 140 character “Tweets”) “asks ‘what’s happening’ and makes the answer spread across the globe to millions, immediately.”

In a new era where Generation Y now outnumbers Baby Boomers, there are certainly arguments one can make for supporting new business plans that involve social media. However, while everyone has heard of the concept and knows how easily information can be passed from business to the consumer, there are still several gray areas in terms of how these sites actually make money. Facebook didn’t turn a profit until five years into its development, and even now the company is hesitant to go public based on an uncertainty of what the future holds for its business model.

Still, the undeniable power of word-of-mouse marketing has spilled into web sites like Twitter. Even the largest corporations are feeling the heat from consumers who might be unhappy with current business practices. Take, for example, the recent NY Times story of the eight-year-old Harry Winsor, who received a stern letter from Boeing on the importance of intellectual-property law after mailing the following drawing to the company’s design team. The kid’s father, who conveniently enough manages an ad agency, decided to discuss the story on his blog and Twitter profile. After receiving support from several others on Twitter, Boeing eventually took notice and decided to re-think its policy, contacting Harry directly in order to mitigate the situation. Is this an example of how techniques like crowdsourcing are changing the way businesses interact with consumers, ultimately opening the line of communication between us and providing higher quality all around? Or, is this simply an isolated incident of how a father used a mix-up by a large corporation in order to foster some free publicity?

References:

“Social Media Helps Drive Purchases”
http://www.marketingmagazine.co.uk/news/1012746/Social-media-helps-drive-purchases

“Social Media Doesn’t Drive Purchases?”
http://www.marketingpilgrim.com/2009/05/social-media-doesnt-drive-purchases.html

Wikipedia
http://en.wikipedia.org/wiki/Crowdsourcing
http://en.wikipedia.org/wiki/Generation_y
http://en.wikipedia.org/wiki/Word_of_mouse

“How Exactly Is Facebook Making Money?”
http://www.guardian.co.uk/technology/blog/2009/sep/16/facebook-money

“Boeing’s Social-Media Lesson”
http://mediadecoder.blogs.nytimes.com/2010/05/03/boeings-social-media-lesson