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Posts Tagged ‘Communications’


Social Media

In the old days, people relied mostly on products and services. Advertising didn’t exist back then, it was just as simple as putting a plank with your name and your occupation on your door or outside your gate. Nobody would see the plank unless they passed by your house or store. The business rule was very simple, if you have good products or services, then your happy customers will tell their friends, and if they were satisfied, then they will tell their friends and so on and so forth. Until now, we still found Word Of Mouth (WOM) marketing to be the most powerful tool every marketer should utilize. However, maintaining positive WOM is extremely difficult, since the expectation is always getting higher and higher so there has to be continuous improvement on the products’ or services’ side.

Then radio was invented and soon after, the television. Advertising as one dominant type of marketing communication became too strong. Small companies suddenly had national brands because they started selling their products in a massive way all over the country or even the world. Brand image suddenly become THE MOST important thing in marketing. Companies would do anything to defend their brands, they lied, cheated, even said negative thing about their competitors. As I have said before, they’d do anything to make their brands look good.

Then there’s the era of consumer power, where suddenly the market became so saturated with advertising, that customers became confused and started to come to their senses. They just want products that work and fit within their budget.  Marketers started panicking and scream that Advertising is Dead, Sales is Dead, etc. Of course they’re dead, advertising and sales are mostly one way communication, it’s how companies are pushing their products to the customers. Customers eventually have to make their choice based on their limited budget. The competitions then reached its peak and escalated into a price war. Who wins the war? Customers for sure, a lot of big bulk retailers that sells high volume at small margins and a few niche players.

Within the last 3 years, the social media has stolen the spotlight. Companies are flocking to use the new media to reach millions of (potential) customers. Social media specialists suddenly are in high demand. Despite all the hype, these companies keep forgetting that social media is not another type of advertising they thought they knew and will never be one.  Most companies use social media (i.e. Twitter, Facebook, LinkedIn, etc.) and blogs as a form of one-way communication. Although they have done a great job of making it looks interactive, they hardly read their customers’ comment, and deleted the negative comments as if there is nothing worth improving. They are creating a narcissistic “faux-brand-image” where they always look perfect and everybody’s always so happy.  Those companies do not realize that those unsatisfied customers will never go away, because they have been using their personal blogs or any other media (facebook, twitter, etc) to express their disappointment and frustration.

As for me, I am a traditional marketer who believes that everything is about innovation and continuous improvement of products and services. Advertising, updates, tweets, blogs and everything else is secondary. The best example that I can use probably is to compare Apple and RIM. Apple always come up with disruptive technologies that upset the competition, while RIM (who used to be very innovative) prefers to use its current proprietary Blackberry Messaging technology. iPad is definitely not the first tablet computer in the world, but in people’s mind, iPad is ultimate tablet computer because of its intuitive touch technology. On the other hand, despite how much money RIM had invested in product development, PlayBook will never be regarded as an innovative product, since people will always see it as just another iPad clone.

It really doesn’t matter how much budget  your company has allocated to hire the best social media specialists to exploit the potential of social media and other internet-based technology, I still believe in the power of Word of Mouth Marketing (WOM) because in the end, everything will come down to this: IF YOUR CUSTOMERS WON’T RECOMMEND YOU TO THEIR FRIENDS, THAT MEANS YOUR PRODUCTS OR SERVICES STINK! (PW)

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