Twitter Bug

These days, Twitter seems to be all the rage. I, being somewhat of a love it or leave it kind of person, first messed around with Twitter when it first launched. I work for an interactive marketing agency, so when Twitter began to gain some hype, it was a company-wide assignment to "get on Twitter!" I made an account and explored a little bit, but found the site to have absolutely no purpose. None of my friends were on Twitter, and I really don't like to update people about what I'm doing every second of the day... essentially what the entire concept of the website is. Remember, though, that this is when Twitter first launched, and not many people/companies/brands were using it. I stayed on the site for oh, I don't know, max 15 minutes, signed off and never returned again.

A few days ago, Twitter was brought up in my Marketing on the Internet class. I listened to the rave reviews it was getting from my classmates and professor, and was utterly baffled. I just didn't understand it! In my experience, Twitter was simply another stalking tool for the obsessive compulsive, who need to know what complete strangers are doing on a daily basis. Did I miss something? Did something change? Were we even talking about the same website?! I hopped on the Internet right then and there to have another look. I had to know what was going on.

But nothing had changed. It looked and functioned exactly the same as it did many, many months (maybe even years?) ago. By now I was getting angry. I hate being left out of the loop. So, I spoke up, and frankly asked my peers, "What is the big deal?! I just don't get it." Thankfully at this point, some others were clearly thinking the same thing, as a few "I don't knows" and "good questions" whispered around the room.

What I learned was that Twitter, for most, is not for keeping tabs on your friends. It isn't for stalking other people, and it certainly isn't only for the obsessive compulsive. I now know that Twitter is (at least for my friends and peers) the quickest and best way to get updates on your favorite brands, products services and companies. They update their status daily, if not multiple times a day, to update customers or fans of recent news, upcoming sales or discounts, or any other announcements they want to broadcast to consumers.

Of course, as soon as I learned this, I went to the search box and became a follower of US Airways and Continental Airlines, some of my favorite clothing, shoe and handbag retail stores, Blackberry, Apple, and duh...Uconn Huskies athletics. Now? I can't get enough of Twitter. The constant updates are awesome, and go right to my phone. I think when I first got on Twitter, there weren't too many other people using the site yet. It had some growing to do, and the creators needed to convince people of its purpose. Now, it has attracted people who see the potential it has, and has developed into a very successful social networking tool.

Cell Phone Ads...A Bittersweet Technology

That's right. Marketers are starting to mess around with ads that pop up on your mobile phone as you pass the store!

Take a look at this awesome article from the Arizona Reporter, by Jay Yarow... Sci-Tech: An Ad on Every Block

Good? Hell yah. If I can get notified of discounts and sales at all of my favorite stores as I pass them, I'll be much more inclined to stop in a check it out. However, this is exactly what is so bad about this great new technology too. Discounts or sales usually mean I spend money that I wasn't even planning on spending in the first place, only because "it was such a great deal!"

Not only that, but my cell phone is one of the few pieces of technology that I own that don't constantly bombard me with advertisements. Television, radio, magazines, newspapers (online versions of course), and especially the Internet. In the mall, in the grocery store, in the car, even when I'm in my own home. There's just no escaping it.

But then again, as a marketing major myself, this idea is a phenomenal new advancement for advertisers. Not only is it innovative, but it reaches a HUGE audience. My prediction: within a few years, every cell phone carrier in the world be in business with some company that offers this technology. And, I think people might actually like it.

Ideeli is my New Obsession

So when my sister sent me an invitation to one of those "invite only discount shopping websites", I was really skeptical. I don't know why, but I just have this thing about them. Usually they are from people who need to send it to 1200 people in order to be accepted, and I know they only invited me so they could get in. These invites usually go right into the trash can. But when my sister sends me emails, I know its not crap. She knows how picky I am with email. So, I opened it up and found my invite to Ideeli.com.

I registered an account on Ideeli. I think a part of me only registered because all it asked for was my email and a password. Not too time consuming. Already a plus. But as soon as I got on the website and had a look around, I was immediately hooked.



Here's how it works:
Every day, Ideeli offers at least one new online shopping "event", as they call it. Events can be giveaways or SERIOUSLY discounted designer items. Every Monday, members can preview the week's upcoming events. The catch? Items are on a timer. There is a countdown that tells you when the event will be over, usually within a few days, if not hours. And, members aren't told the start time of the event countdown.

Another positive? The more friends you invite, the more $25 dollar credits you receive to your account. I guess I know why I keep getting invites from people, huh? Well send them my way girls, cuz you can bet your butt I'll be sending invites to Ideeli to every person I know. I want my 25 bucks too!

Now, I've only been on the site for a few days now, and have already seen everything from discounts on clothes, handbags, shoes, undergarments and other accessories. But, the site also claims to offer...

"...privileged access to the most sought-after fashion, home and beauty products, but that's not all. ideeli members also enjoy privileged access to luxury lifestyle experiences such as fashion shows and sold-out concerts. ideeli makes sure its members aren't "all dressed up with nowhere to go!"

Actually, as of right this very moment, there is 20:10:14 left on the countdown clock to enter to win an Oscar de la Renta handbag, straight off the runway. The "Indore Box" bag, made from white twisted raffia and calfskin was carried by supermodel Agyness Deyn at Oscar de la Renta's SS 09 NYC Fashion Week show.

What am I looking forward to most this week? The Vera Wang giveaway and the Christian Lacroix sale!

I will tell all of you designer and discount shopaholics...this site should have a warning: WILL become an instant addiction!!

SIRIUS Satellite Radio: Personalize your Pricing

SIRIUS Satellite Radio lets subscriber listen to what they want, when they want and wherever they are. With over 130 channels of music, sports, talk, news and comedy, there is something for everyone. And, without any commercial interruptions. It also allows subscribers to listen to a certain genre or type of radio anywhere, from the car, in the home, or even on-the-go with a portable radio.

SIRIUS Satellite Radio uses a dynamic pricing strategy. They have a number of different pricing options that fit certain wants and needs of each customer. They are as follows:

"SIRIUS Everything Plus the Best of XM"
$16.99/month PLUS 9 months free ($150 savings), $458/3 years subscription OR 5 months free ($85 savings) $322/2 year subscription
This package is what SIRIUS claims to be the best. Listeners who sign up for this package get "the best of both worlds". It includes over 140 channels, including the full SIRIUS lineup, consisting of Howard Stern, Martha Stewart, live games and races from the NFL, NASCAR and exclusive 100% commercial-free music channels from the Grateful Dead to SIRIUSLY Sinatra.
Subscribers also get a selection of some of the best XM channels - The Best of XM - including Oprah Radio, MLB Home Plate, NBA and NHL GAMES, the 24/7 NHL Home Ice channle, the PGA Tour Network, Opie & Anthony, XM Public radio and more.
subscribers to this package are eligible for Premium SIRIUS Internet Radio Online upgrade (128k) for an additional $2.99/month, as well as additional savings on annual subscription plans, and discounts on additional subscriptions.

"SIRIUS Everything"
$12.95/month PLUS 9 months free ($115 savings), $349/3 year subscription OR 5 months free ($65 savings) $245/2 year subscription
This package gives listeners everything that SIRIUS has to offer: Over 130 channels, 100% commercial-free music, and all of SIRIUS' sports, news, talk and entertainment.

“Family Friendly Plus the Best of XM” – $14.99/month
For only $15 a month, this package includes over 120 channels with all family-friendly SIRIUS programming, plus some XM channels as well.

“Family Friendly” – $11.95/month
This package has over 115 channels, again, for the entire family.

“Mostly Music” – $9.99/month
Although this plan does not include online listening with SIRIUS Internet Radio, listeners still have access to over 65 channels.

“News, Sports & Talk” – $9.99/month
This package offers over 50 channels of the biggest names in news, talk and entertainment, plus all sports channels, live games and races.

“A La Carte Gold” – $14.99/month
This subscription allows users to create their own personalized package of 100 channels. Listeners can choose from the full SIRIUS lineup, plus some of the best channels from XM radio too. And, there is no extra charge for Premium channels, Howard Stern or live games and races from the NFL, NASCAR, college sports and more.

“A La Carte” – Starting at $6.99/month
Similar to the “A La Carte Gold” plan, this package lets users choose what they want to listen to, but only from 50 channels. If subscribers wish to add Premium channels, an extra $0.25/month is charged. Users are only allowed a maximum monthly package addition of $12.95, and Howard Stern and/or sports bundles require additional payment.

SIRIUS also has what they call SIRIUS XM All-in-One Packages. These include:

“SIRIUS XM All-in-One” – $19.99/month
This package is the only way for subscribers to enjoy all of SIRIUS and all of XM, all in one radio. It offers the most comprehensive sports coverage, exclusive programming from the biggest names in radio, including Howard Stern, Oprah Radio and Martha Stewart, and the top news programs on the radio like CNN, CNBC, NPR and BBC.

“SIRIUS XM Family Friendly All-in-One” – $17.99/month
As described on the website, this plan is the only way to enjoy all of the family-friendly programming available on both SIRIUS and XM, all with one radio. You’ll keep the whole family happy with, again, the most comprehensive sports, news, talk, music, entertainment and kids’ programming.

To evaluate SIRIUS’ pricing strategy, I turned to its 2008 annual sales report, which was compared to the 2007 year-end report. “For the year ended December 31, 2008, SIRIUS XM recognized total pro forma revenue of $2.4 billion compared with $2.1 billion for the year ended December 31, 2007. This 18.4%, or $378.1 million, increase in revenue was primarily driven by a $367.6 million increase in subscriber revenue resulting from the net increase in subscribers of 1,655,234 during 2008.”

Other figures for evaluation are as follows:



I think SIRIUS satellite radio can also track the effectiveness of its pricing strategy by looking at individual numbers of subscribers of each package. If the company is seeing a drop in the less valuable packages, they may want to think about lowering the price, or just getting rid of the package altogether to try to get those customers to upgrade to a better package. I have a feeling that the personally customized packages are probably great sellers too because consumers are much more inclined to purchase products or services that are designed just for them, and are one-of-a-kind.

Nordstrom's website rocks

If I had to pick one website that I was absolutely addicted to, it is indefinitely Nordstrom's. The Nordstrom's website is the ultimate in window shopping. Although it is a retail website and was created particularly to satisfy the demand for e-commerce, I don't find myself actually wanting to buy anything on the website. This may seem a bit odd, however, I think that it is perfectly fitting for the Nordstrom's brand.

Nordstrom's prides itself on its customer service. It has remained one of the top department stores in the country because of this reason. Walking into a Nordstrom's is an experience in itself. With most stores outfitted with live piano players and salespeople waiting on your every beck and call, it is simply pleasant shopping there. So why is the Nordstrom's website so awesome if the store sounds like it can't be beat? For me, the website serves as a little preview. I hope online, check out the new arrivals in the shoe, sunglass, handbag, jewelry and clothing departments, and if I am happy with the quality of items I see, I hope in the car and go to the store.

I think this concept of window shopping online is a great asset to the Nordstrom's brand. I'm sure they would rather have people in their stores rather than purchasing products online. So, instead of just hoping for customers to randomly decide to pop into the store, the website serves as an enticer. With the ability to examine each item in detail with the zoom in and zoom out features, as well as the rotating features, it gives customers just enough material to encourage them to go to the store and try on the dress or the shoes.



Some people may actually buy online. By all means, if you are someone who can purchase online and know the shirt will fit or the sunglasses will look good, more power to ya. But for people like me who need to be absolutely sure that my purchases are good ones, and that the pair of Enzo's that are a size 6 won't fit like a 5 1/2, I need to do my shopping in-house. In cases like my own, although the Nordstrom's website may not be collecting my dollars, it is certainly getting me in the store, where the opportunity and likelihood of buying more is much, much higher.

PayPerPost Pure Play

PayPerPost.com is the largest sponsored content marketplace in the world. This online-only company, owned by Izea Inc., boasts tens of thousands of bloggers who interact with advertisers to help them in their viral marketing tactics. Bloggers are compensated for distributing unique content subject to the acceptance of the advertiser.

As described on the website, and as I have found myself, the process is very simple. Advertisers first create an account, where they are required to set up some sort of payment plan for the activity that will transpire on the website. After the account and credit card, PayPal, etc. is set up advertisers are free to create what is called an “Opportunity”, also known as an Opp. An Opportunity is basically a detailed outline that tells the blogger what you would like them to post about.

“Think of an Opportunity as a posting on a bulletin board or a listing on an auction site,” Izea says. “The Opportunity is exposed to bloggers who are willing to create content on your behalf and post it to their blogs in exchange for payment.”



Bloggers who see the opportunity and want to post submit an entry, which PayPerPost (PPP) then reviews to make sure it meets the requirements that the advertiser has set. PPP then facilitates the exchange of money and takes care of any tax filing.

PPP very clearly runs a brokerage business model. A third party, in this case PPP, bring in buyers (advertisers) and sellers (bloggers) and act as the liaison for the exchange of services for money. This particular type of brokerage business model is focused only on business-to-business transactions. Unlike many other brokerage pure play businesses like eBay or Travelocity, PPP is a tool for professional advertisers, not consumers.

In order to generate revenue for itself, PPP takes a small percentage of the amount of money that is paid to each blogger.



I think that it is pretty easy for PPP to evaluate the success of their business. They can easily keep track of how many opportunities are being posted, as well as how many opportunity responses the advertisers are getting from bloggers. Another way for PPP to evaluate their performance is to track how many new accounts are being created versus how many accounts are remaining inactive. This will tell them first, if the business is growing and attracting advertisers. Secondly, it will tell them how satisfied advertisers are with the service. If there are more accounts being left inactive than accounts being created, it will say a lot about how happy the advertisers are with PPP. The company can also evaluate its performance by tracking how many bloggers are signing up to be a part of the company. The more bloggers that are creating accounts to respond to opportunities and be a part of the site, the better PPP’s business is doing. I’m actually surprised, however, that a survey isn’t available on the site to evaluate PPP’s performance to a more detailed degree. I think sending out a survey to the advertisers and the bloggers would be a really good way to further improve the business

Google vs. Borings...that's right, the Borings.

The Internet has shown us to undiscovered territory and brought exciting new opportunities. This multifaceted tool has allowed the entire world to take advantage of its beneficial uses in financial, retail, communication, legal, health and many more areas. But, it would be a serious understatement to say that this newfound tool has also brought along some problems. Since the dotcom boom in the mid- to late- 90’s, new legal and ethical issues have been raised. And, despite all the good that the Internet has brought us, it has opened up far too many opportunities for misuse, leading to some severe punishments.

In April of 2008, a privacy lawsuit was filed against one of the largest Internet search engine players, Google Inc. Aaron and Christine Boring of Pittsburgh, Pennsylvania took legal action after images of their home were posted on Google’s free Internet mapping program, called Google Maps.

The Boring’s claimed that Google caused them “mental suffering” and that their actions decreased the value of their home. They accused Google of privacy violation, negligence, trespassing, and unjust enrichment.

The photographs for Google Maps are taken by the Google Street View Car, which uses 360-degree cameras and GPS to give a street level view of the world’s cities, towns and neighborhoods. The Boring’s street is labeled as a private road, but that didn’t stop the Google Street team from snapping pictures. Photographs at the end of the couple’s driveway were taken, from where the house, detached garage and pool area could be seen.

However, on February 17 of this year, US Magistrate Judge Amy Reynolds Hay dismissed the lawsuit, per Google’s request, and ruled that the plaintiffs had “failed to state a claim under any count.” The Borings were seeking $25,000 in compensatory and punitive damages from Google, in addition to the removal of the images of their house from Google’s Street View program. Although Google did take down the photos of the Boring’s home, the US District Court in Pittsburgh rejected the Boring’s request for a permanent injunction preventing Google from showing the photos of their property. "The plaintiffs have failed to plead — much less set out facts supporting — a plausible claim of entitlement to injunctive relief," Judge Hay commented.

Google has replied to the outcome of the lawsuit, saying that it is pleased with the ruling. A Google spokeswoman said that the company thought the lawsuit lacked merit, and that Google holds the utmost respect for individual’s privacy. “We blur identifiable faces and license plates in Street View, and we offer easy-to-use removal tools so users can decide for themselves whether or not they want a given image to appear in Street View. It is unfortunate the parties involved decided to pursue litigation instead of making use of these tools.”

Personally, I think this was a poorly planned stunt. Anyone who wants to take an Internet giant like Google to court is looking for money. First of all, $25,000 in damages is pocket change for Google. I’m guessing they figured that Google wouldn’t want to bother going to court and would shell out the money in an attempt to settle the case quickly and quietly. Borings—Helloooooooo?! What are you thinking?? You don’t think Google has an entire legal department dedicated to beating people like you off with a stick? Good plan.

Secondly, as a comment posted on one of the articles I referred to states, the constitution doesn’t guarantee the right to privacy. Amendment 4 (Privacy of the Person and Possessions) states: "The right of the people to be secure in their person, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized."

And lastly, seriously Borings? Really…if you wanted your 15 minutes of fame, you could have come up with something a little better than this. Congratulations, you are now the laughing stock of the Internet for one whole week.

ComputerWorld

Telegraph.co.uk

Mass Customization: Nike v. Puma

Mass marketing and production are officially a thing of the past. With the introduction of mass customization, companies of all different industries and sizes are now able to offer customers not just a product, but personalized experiences with the product. And although the route in which the customer takes to get their customized experience differs from company to company, in the end, mass customization comes down to a successful business venture that is proving to be satisfying and profitable.

Nike has really done something truly unique to this customization process. They have not just simply allowed consumers to design their shoe. They have given Nike fans a place to express themselves, and in doing so, created a distinctive customization experience. By allowing customers to interact with the product and make it their own, they are creating a relationship between not only the product and the consumer, but the brand and the consumer as well.

Nike’s approach in shoe customization is fairly simple. First, pick the shoe, and then pick the colors. It’s easy. There isn’t too many choices where ones is sitting there wondering what the heck to pick. And, there aren’t too few choices where your customized shoe isn’t exactly original. This is what makes Nike’s customized shoes so successful. Nike has chosen to allow every person, no matter how technologically savvy to be able to create his or her own shoes with just enough say so that they are indeed customized, but without the danger of having too much.

The Nike site is also much…smoother (I guess is the word I’m looking for). I mean that the site is sleek and chic. Anyone would be attracted to such a cool looking and working site, complete with not only shoes, but apparel and accessories as well, some of which are also customizable. Man or woman, old or young, Nike has really hit the nail on the head in the design of their website. Sometimes I think there is the threat of designing a website that is too feminine or too masculine. Especially with sports related products, many times companies can run into the more masculine feel, which is a turn off to women. However, Nike has done a wonderful job with the balance of their website.

Nike even has a section of their website that is dedicated to the NikeiD studio in New York City at NikeTown. They have successfully integrated the online customization with the in-store customization, and made it possible to access each area in both places. NikeTown actually has computers in the store where people can hop on the online studio and create their customized shoes. They have brought the Internet to the store, and the store to the Internet.

Puma’s Mongolian Shoe BBQ idea is interesting to say the least. But why a Mongolian BBQ? Puma says, “…the origin of the BBQ has helped us understand that everyone has different taste. So at our BBQ we have a generous assortment of pre-cut materials, so you can cook up something that suits your style”. The idea is that Puma customers have many different choices in terms of fabric colors, patterns and prints.

However, there comes a point, which I believe Puma has reached, when too many options are offered in the customization of the shoes. It was very overwhelming to create a shoe. The changes that I made to see each of the choices was slow to reload, and the sample fabrics on the side of the screen weren’t clear. There are just far too many things for a customer to look at, which often leads to frustration and then abandonment of the design. But, at the same time, there are only three different shoe options to customize, not one of which I was exactly thrilled about.

The actual idea for the website is a little odd. Clearly Puma was trying to think out of the box on this one, and that they certainly did. But there is a very obvious disconnect between a Mongolian BBQ and Puma shoes. They abandoned the sporty feel that most people who are probably actually customizing their shoes appreciate. For those who are purchasing their shoes based solely on fashion trends, it may work. Nike appeals to both the sporty people of the world and the fashionistas.

Puma has also failed to integrate their other products with the Mongolian Shoe BBQ website. This is a free opportunity to promote all of their products, not just the customizable shoes. They pretty much missed the boat on that one. They have also missed out on a number of other marketing ideas. Nike and Puma both allow consumers to take the shoe they designed and buy the sneakers. Puma, unlike Nike, hasn’t realized the other wonderful opportunities for brand extensions. Nike allows users to take their shoe design and make it their background on their computer or share it on Facebook.

Overall, I think we can all agree that Nike has just blown Puma’s Internet shoe customization out of the water. Not only is it easier to use, but it appeals to more people, is less overwhelming with choices and has other product extensions. But, are we really surprised? There is a reason why Nike dominates this market and continues to be successful.