Does Music Artists Hate P2P?

April 22, 2010 2 Comments

Listen to this postFile sharing sites are delivering free music to users around the word. Most of the files are shred or downloaded freely. The media got the public to believe that the file sharing sites are negativity affecting the new artists and the recording companies. but, not every recording artist is upset because their music was downloaded without payment. The Peer-to-Peer (P2P) file sharing sites help exposing the new artist to the audience. The audience can search the artist and then download the music illegally to listen to it at their convenience. The file sharing sites are good advertising source that help the new artist to reach to the greatest number of audience. The newly downloaded files are a sampling opportunities for the users to test the music if its meets their taste. Research by Bounie, Bourrreau, and Waelbroeck (2007) showed that 93% of the  P2P users purchased new music after they have sampled it on the downloaded MP3 format. Further, the research also reviled that 67% of the surveyed participant purchased new CDs that they discovered by downloading from the P2P sites. That CDs they would not normally purchased if they did not discover it on the file sharing sites.

References

Bounie, D., Bourrreau, M., & Waelbroeck, P. (2007). Pirates or explorers? Analysis of music consumption in french graduate schools. [Article]. Brussels Economic Review, 50(2), 167-192.

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What Is Your Value Proposition?

April 15, 2010 4 Comments

Listen to this postValue Proposition is a business or marketing statement that summarizes the customers need to buy a product or use a service from an organization. The term “Value proposition” became a buzz word lately and many people started abusing the term for the wrong purpose. Marketing Manager main goal is developing a marketing plan that details how the company would meet its strategic objectives. The plan will show analysis of the cost, benefits and values that the organization would deliver to the stakeholders. The value proposition model explains how the supplier would fulfill the customer’s needs.  The value proposition “specifies the interdependence between the performance attributes of a product or service and the fulfillment of needs” (Kulonda, 2009). The value proposition model would list six steps for the marketing manager to set for his or her goals :

  1. First step is identifying the market in which the organization is going to create value for. The market would include the consumers, environment and the shareholders.
  2. The second step would be listening to the customers and stakeholders to addressing their concerns and requests. The organization should recognize the valuable feedback from the customers. The feedback should be real and confirmed by the organization’s representatives. The organization would not consider exaggerations and political statements that some people would use to draw the media’s attention.
  3. The third step would be describing the services and products offered by organization to the stakeholders. The stakeholders would receive the right information for the organization without distortion.
  4. Fourth step for marketing manager is to list the benefits expected from the organization business. Where and how the benefits would be felt and how it would be materializing.
  5. The marketing manager would address the stakeholder’s concern by discussing the alternatives for their existing business. Show why the organization have chosen certain suppliers, why the supplier is local or offshore. Alternatives are always available for the organization but the marketing manager would explain why the current supply chain and current products are the best business model a company would choose in the current business environment.
  6. Finally, the marketing manage would display the organization’s road map to deliver what it promised to do in the above steps.

The value proposition should talk to the customers needs and should not be another sale presentation the list what the organization is good at.
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References:
Kulonda, D. J. (2009). Manufacturing strategy for high tech start-ups: A reconsideration. [Article]. Issues in Innovation, 3(1), 74-92.

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Two Thousands and Five Hundreds

March 29, 2010 4 Comments

2500 Indonesia Rupiah Bank Note

Yesterday was Saturday, March 28, 2010 the 87th day of the year which is also Rabia-II  12, 1431 in the Islamic calendar or Nissan 13, 5770 in the Jewish calendar that is the equivalent of  Eryue 13, 4707 of the Chinese lunar calendar. Saturday daytime was 12 hours and 21 minutes long which was enough to reach the 2500 visitors milestone on this blog. The Romans represented 2500 as MMD but the binary representation is 1001110001002. The number 2500 is a perfect square which can be written as 2500 = 142+482 or 302+402. In case you did not understand what is meant by all this then I would like to simplify it for you by saying that 2500 visitors like you had visited this blog since I publicized it in January 3 , 2010. Thank you for re-visiting.

The most visited posts and pages since the start of this blog are listed below. To my surprise, three out of the five top visited places are special pages where I post researches and case studies. I always thought that readers are interested in the posts, but apparently most of you are intellectual readers who wants to sharpen their knowledge.

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The Results of Wrong Relationship Marketing

March 25, 2010 10 Comments

RakazListen to this postReligious and patriotic campaigns are getting more intense and popular in the last few years in Kuwait. The campaigns are trying to reach the young generation in the age of 16-26 and those with modernized thinking and western influence. Most of the advertisement and billboards that display the campaigns massages are showing young men wearing western outfit (T-shirts and pans) while the Deshdash (traditional men outfit)  is never used in these messages. The western outfit may be used intentionally to relate to the targeted group but at the same time wrong message might be delivered. Showing the young generation in non-traditional outfit encourage them to abandon the traditional principles which is directly connected with religion and patriotism.

I have done an extensive research on the wrong relationship marketing done by Coca-Cola in India and would like to share the research with you. The researched case might not be similar to the above subject but would present the consequences of building the wrong relationship. Please click here to read the full research.

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Self Development Programs are Like Ice Cream

March 11, 2010 5 Comments

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Robin Sharma and Me

Robin Sharma and Me

Yesterday I attended a nice full day workshop by the best-selling author Mr. Robin Sharma. His most popular book is “The Monk Who Sold His Ferrari“. I enjoyed the workshop but there is a variety of self-development books which I read before made this workshop look similar. Once you read few of these self-development books you will find them repeat the same principles. They are like choosing a flavor at Baskin-Robbins, the color and taste might be different but the basic ingredient is Ice Cream. I distilled the presentation to the following important points:

  • All human are equal and anybody can be an amazing leader.
  • We all have equal opportunities which we should take advantage of before it is too late.
  • We need to set long-term personal targets (10-50 years) and then dissect them into smaller tasks.
  • Work everyday on 1% of the task (or goal). You will accomplish the goal withing the target date without being overloaded.
  • Ice Cream

    Baskin Robins Ice Cream

    Keep on focusing on your goals all the time.

  • Fall in love or be passionate about what you do. Keep your focus on that ultimate goal and neglect other distractions.
  • Do not make yourself a victim. Do not blame other people or circumstances for your failures.
  • Learn from you failures, they are a good opportunity to learn.
  • Do not be afraid of risk. Change will always bring the best in you.

Mr. Robin Sharma has a good presentation style that captivate the audience and has a talent for telling passionate stories that makes the audience want to cry. On my scale I would give Mr. Sharma 7/10 when compared with other motivational speakers.

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Looks Easy to Win

February 21, 2010 2 Comments

Grab the toy

Grab the toy

Listen to this postThe game looks simple. Insert a coin in the machine, maneuver the mechanical arm to the toy you like and then let the arm grab it for you. Or does it? I played this game once when I was a kid and figured that I will never be able to get the toy because the mechanical arm needs good practice to master its movement. You could spend enough money to buy the toy by the time you learn how to position the arm. The arms clips does not have strong grip to pick, hold and left one of the toy from the neatly packed toys. But you will know this obstacles after you try the game and lose some money. Yesterday I took the kids to the arcades and watched many kids lose their money trying to win one of those pink bears.

Neatly stacked toys

Neatly stacked toys

You may ask why do people try it since it is difficult to win? Well, it is located in the kids arcade section and the toys inside it have vibrant colors that attract the kids to try at least once. You or the kids can be easily fooled in trying the game (at least once) because you would assume that maneuvering  the arm would be easy and its grip is strong. You discover after few trails that it is not, and you never tell anybody about your failure. I was advising my son about this rep-off scheme when finally one of the kids got a toy and made me look stupid!

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Valentine’s Day is A Commercial Day

February 14, 2010 5 Comments

Happy Valentine's Day

Like most lovers

Listen to this postValentine’s day is today February 14 if you forgot. This day is set for people to express their love to each other. I believe that valentine’s day is a commercial day and has been marketed very well to make us feel guilty for not buying something valuable to express our love to our loved ones.
Valentine’s day is named after a priest who lived in Rome around AD 269. The occasion became more popular in 1800 when British printers started producing decorated cards that have paper ribbons and lace.  People started mailing each other such cards and the occasion grow up with popularity since that date. This how it was back then but now, you have to buy gifts, flowers or chocolate. A combination of all these gifts will get you closer to your loved one. The more you buy the better they will feel. That is how Valentine’s day is sold to us. But we do not need to show our love only on that day and does not have to be through gifts.

Cut Hart

Getting ready

I will now discuss the commercial side of Valentine’s day. The day is marketed very well by printing calendars with a reminder that February 14 is Valentine’s day. Just before that day, the companies (especially brand names) need to remained us of their existence. No more marketing is needed because we are sold on the idea. I think the reminder is actually meant for the gift-receiver to expect the gift from the giver. A survey conducted this year in Bahrain estimated that 30% of the population would spend $180 (KD 52) for Valentine’s Day gifts. A quick calculation resulted in $40 million will be spent this year on Valentine’s Day in Bahrain. Please note that this survey was done in Bahrain, an Arab country that did not hear about Valentine’s Day until recently.

Be My Valentine

Most of the gifts has short shelve time, meaning that the store can not store them for the next year similar to unsold water heaters and blankets when the winter season end. So it is more economical to prepare the gifts just one week before the set date and sell them on that day. Commercially, Valentine’s day has another advantage which is storage space. The stores order large quantities of their merchandise and sell them all in 1 – 2 days. No storage needed to stock delicate products like flowers and chocolate around the year in large quantities. The store need to hold the smallest quantity always. So the business formula is to market the date, pre-order the products, sell them all in one day to enjoy quick profit. Now if I try to convince my wife on the above logic she would think that I am cheap!

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Customer Retention in The Local Barbershop

January 28, 2010 4 Comments

Local Barbershop

AudioI am at the age where hair cut means hair “cut”. I do not make an appointments with fancy hair dressers to cut my hair. I just walk through one of the nearby barber shops and trim whatever hair dear to grow at the top of my head. I don’t use gooey gels, vitamin-enriched shampoos or style my hair differently for those special evenings. The local barbers in Kuwait (and neighboring countries) are a good case study for customer satisfaction and customer retention. They are relatively clean and use disinfected utensils. Most of them updated their tools and started using hair driers and special  creams for facial treatments which I never used before in these barber shops or plane to use in the future. Entertainment is the newest thing in the local barber shops. Lately, every barbershop you visit would have his TV switched to one of the satellite channels showing a program in his native language (Hindi, Turkish or Bangladeshi). On top of the noise coming from the TV you would hear the barbers loudly talking to each other, using a language you would not understand. When they look at each other and smile I wonder if they are talking about my newly developed bold spot on the back of my head? I think the local barbershop has two main factors helping them retaining customers. First is the convenient location, since they are located in the neighborhood and it would be easy for the customers to just walk in. The other important factor is the low prices they charge for 30 minutes of customized personal services. Sometimes they offer free head and shoulder massage when the business is slow. Other than these factors I don’t think anybody with his right state of mind would set a foot in these shops.

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Permission Marketing Without Permission

January 9, 2010 Leave a comment

A promotional image distributed by Ogilvy & Ma...

Many marketers distort the truth

AudioPermission marketing is a term invent by the marketing expert Seth Godin. Permission marketing developed from a simple gesture when the customer let the marketers to advertise their products or services directly to the customer. The customer wants the advertisement or knowledge and he or she gave the permission to be contacted when the information is available. Some of you had filled forms on the internet to subscribe in one of the internet sites. While filling the form you will notice that a small sentence asking you to subscribe to their services, send you a news letter or send you an update on their product as soon as they are available. You have to select (or check) the option to permit the site to send you that information otherwise the information will be direct annoyance. Some markets would broaden their annoyance by selling your information to other markets to sell it again to another …. and suddenly you are flooded with spam email.

In the past few years I notice that charity societies and small stores are becoming professional in non-permission marketing. The teller would ask you for your address or mobile phone number when you buy a small item or donate small amount of money. You will start receiving SMS messages or big envelops in the mail starting from that moment you give up your information. It will be almost impossible to stop the direct advertisement you got yourself into.

You will see the result of this poll immediately after you answer it and I will publish the overall result after I receive enough answers, so please check this blog again after few days.

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