14
Sep

Hello again, I hope you had a nice summer!

In several discussions I have about sports marketing and sports business in general, many people seem to confuse the “sports” with the “business” side. A frequent confusion is the one of “sports value” with “brand value”. This point is subtle, because the two are frequently correlated. For example, Real Madrid FC is doing great from both a sports and a business perspective. It is both a great brand and a great team, and one side helps the other.

A recent case from Greek football however clearly illustrates that these two aspects can be very different. Here is a summary of the story. The formerly public Greek betting agency (ΟPAP), was always the most important sponsor for the Greek football “Super League” (the Greek equivalent for “La Liga”). The plan was the same for the coming 2013-14 season. However, the situation changed when a major club of “Super League” (AEK Athens) was relegated  to play at a lower-level league.

 

 

 

 

 

 

 

 

The new management of OPAP, judged that this major drawback from the sports side would have a little impact on the value of the brand “AEK Athens”. Thus, it decided to keep sponsoring AEK, with an amount that is a lot higher than the amounts received by many current “Super League” clubs. From a marketing perspective, this seems to make sense. If many eyes are watching AEK every weekend, then putting your brand on the jerseys is clearly desirable.

This decision however was not accepted as easily by other interested parties. First, the clubs that will be playing with AEK Athens (and which have a lot less commercial value) next year, see this sponsorship as contaminating the competition. They would have to play against an opponent with much more resources. Then, the “Super League” clubs are furious to see that a club not competing at top national level is getting more money than they are. Many of these clubs (including the champion Olympiacos FC) have already publicly declared that they will deny the sponsorship from OPAP this year, as a sign of protest.

This case, although extreme, is not the only one. For instance, Liverpool FC has been struggling sports-wise for many years, but it is still a great brand in the UK. Similarly, the Chicago Bulls have not won the NBA title for some 15 years, but their brand is still strong.

 

 

 

 

 

 

 

 

To conclude, in several businesses (e.g., sports, education, health), marketing actions that make perfect sense from a business perspective, might raise problems if the non-business perspective is neglected. Reconciling the two perspectives is the job of a good marketing manager, but the question “How much should we consider business vs. non-business” is not an easy one to answer.

What do you think?

Antonios (Adoni) Stamatogiannakis, Ph.D.
Assistant Professor of Marketing
IE Business School – IE University

Antonios . Stamatogiannakis @ ie . edu

9
Sep

“Engineers have done their job, marketers have not”

Written on September 9, 2013 by María López Escorial in Bottom of the Pyramid, Marketing Strategy

From my point of view, one of the most striking findings of the Hystra report about “Marketing innovative devices at the base of the pyramid”, is the fact that products are there, research is done, prices adjusted, production sorted out, manufacturing organized but we can not manage to get the bottom of the pyramid consumers to demand a product that would change their lives.

If we are selling affordable most needed products, why consumers do not buy them?

In most marketing courses, we study the importance of understanding the consumer buying process and its motivations. Are consumers at the BOP different? Are their economic constraints so high as to make them take non-logic decisions?

It seems to be other reasons….
Some have to do with the fact that most BOP specific products, are consumer durables and the expected benefits are not seen immediately but in the future. Consumers have to make a trade off between future savings or benefits and an immediate cost increase, moreover when many of them have to finance the product they are buying, as they do not have the cash on hand.

india_reading Enjoying a new solar lamp.

Furthermore, with the fact that, the future benefits are unknown and unfamiliar for them and most people in their community, as they are all brand new products (stoves, lamps, water purifiers, latrines,..) paring an appropriate aversion to change long standing practices. Having said that, it seems that the most adequate promotion strategy for these products should focus on early adopters, pioneers and free demonstrations.

Distribution reliability and after sales service are also a big hurdle… most products do have a technology component or need some kind of maintenance and the geographically dispersion of the most poor, mainly in rural areas, makes this product feature quite unreliable.

It is easier when we talk about pull products such as mobile telephones or consumers goods. However, most products specifically directed to the BOP are push products which makes demand generation a huge task and a big barrier to successful growth.

As an example, look at the Indian company Global Easy Water Products (GEWP) selling irrigation systems able to increase crop yields by 50% and achieving significant reductions in water and energy use, with a huge market potential. They had to invest $11.5 million of a grant awarded by Bill & Melinda Gates Foundation on demand stimulation activities design to make farmers aware of the benefits of drip irrigation to overcome farmer reticence as they did not have previous experience, and therefore did not have appreciation of its benefits. This investment resulted in the real acceleration of sales, increasing annual sales growth rate from 40% in the years previous to the marketing investment to 73% in the subsequent years.

irrigation systems GEWP Irrigation system instalation

In summary, looking at marketing 4 P´s, when talking about marketing to the BOP: product and price seem to be there, distribution (place) and communication (promotion) are still a big challenge.

What do you think?

I will wait for your comments! here and at @marialescorial

8
Sep

Volvemos después de un necesitado descanso. El verano ha dejado muchas cosas tras de sí y tenemos mucho que comentar por delante. Y hoy quiero empezar haciéndolo con el reposicionamiento de Lady Gaga y Hannah Montana (Miley Cyrus).

Jeff Kravitz

Aunque ninguna de las dos necesitan presentación, os hago un esbozo del punto de partida:

  • Lady Gaga es un icono musical, con un excelente posicionamiento entre veinteañeros y grupos alternativos, logrado entre otras cosas a golpe de performance. Entendiendo como performance su capacidad para sorprendernos una y otra vez con disfraces imposibles. De tal manera que llegó a un punto en el que ya daba igual lo que dijera o cantara, lo que esperábamos y queríamos ver era con qué nuevo look aparecía.
  • Miley Cyrus era hasta hace poco un icono contrapuesto. Fruto de la fábrica Disney, era más conocida como Hannah Montana, icono adorado por el público adolescente y que encarnaba los mejores valores familiares y tradicionales.

hannah montana

Iconos de gran éxito las dos por lo tanto, con una imagen muy bien definida y un problema en común: Las dos parecían haber agotado su recorrido, y necesitaban evolucionar. En el caso de Lady Gaga, por motivos de salud (su atuenda atentaba contra su salud), la imposibilidad de estar toda la vida deslumbrando, y la necesidad de llegar a un público más amplio. Y en de Miley Cyrus, para explotar sus dotes artísticas, llegar a un público más adulto, posicionarse a sí misma como artista más madura, y hacer olvidar a la buena de Hannah Montana.

Ante esto, ¿qué ha hecho cada una?

La aproximación de Lady Gaga ha sido bastante inteligente. Después de una forzosa retirada de los escenarios (y de los medios sociales) por motivos de salud, rompió de repente su silencio con un look sorprendente, que ha ido mostrando poco a poco: Su look natural. Es decir, una imagen sin disfraces, aunque manteniendo su discurso alternativo e integrador para con sus “little monsters”.

lady gaga normal

En definitiva, se ha reposicionado sin renunciar a atributos base, que hacen que su público no se haya sentido alienado y abrace el cambio, mientras migra a una imagen sostenible y de mayor alcance.

Y en el otro extremo tenemos Miley Cyrus. Hablo de otro extremo pues su camino va en sentido exactamente contrario al de Lady Gaga, y ha sido completamente desacertado.  Porque en el mundo del Marketing en general, el cómo puede llegar a ser incluso más importante que el qué; y aunque el qué tenga sentido, un cómo mal diseñado puede ser devastador…

Que es lo que a mi entender, sucedió en los premios de la MTV con un show esperpéntico, en el que efectivamente dejó claro que Hannah Montana había muerto, para dar paso a una suerte de pelele de mal gusto y bastante vulgar:

YouTube Preview Image

Dicen que Miley Cyrus sabía perfectamente lo que hizo. Creo que no. Hizo lo que le dijeron sus asesores, pero no era consciente de los efectos de la actuación… No dijo que la escena no sea remontable, pero sí que va a tener mucho mucho trabajo para hacerlo olvidar…

Con lo que adelante con las reinvenciones y reposicionamientos, , pero cuidando en detalle el cómo, no sea que nazca algo indeseado.

Espero vuestros comentarios en @ignaciogafo.

THINK DIFFERENT!!!

Ignacio Gafo

10
Aug

Young males, living in big cities…

Written on August 10, 2013 by Antonios Stamatogiannakis in ADVERTISING, International Marketing

In several of my classes, this is how students (especially those with little marketing training) describe market segments for a product or service; Gender, age (or age range), and geographical location. Then the discussion goes on with me explaining that such description is inadequate, or even misleading, and that a more appropriate description should include “psychographic” and/ or “behavioral” elements as well. At this point, I sense several students wondering: “What does this mean?” “What is psychographic, anyway?” “What is the use of this, besides learning more fancy marketing buzzwords?”

Well, here is an excellent example from McDonald’s advertisements in China that shows why. The target segment of McDonald’s is exactly: “young males, living in big cities”. These are the people who are more likely to opt for fast food versus other, more expensive or time-consuming eating options. This targeting was reflected in a controversial campaign that provided discounts to male customers only.

When however MacDonald’s had to decide on the advertising, they realized that “young males, living in big cities” see themselves differently, and aspire for very different things depending on the big city that they live in. Thus, in their “Manly Man” campaign, McDonald’s created different ads for different cities, trying to appeal to characteristics of the target segment deeper than “gender, age, location.” Some of these characteristics were very common among young males (e.g., interest in females), but others were tailored to the specific image of a “Manly Man” in different regions of China.
Young males living in Shenzhen, the first “special economic zone” in China, saw an advertisement stressing the importance of career in a man’s life:

YouTube Preview Image

Young males living in Shanghai, where a man must take good care of his wife and home, saw an advertisement stressing these qualities:

YouTube Preview Image

And young males living in Beijing, saw an advertisement stressing that real men are tough and decisive:

YouTube Preview Image

Interestingly, regardless of whether the focus is on career achievement, care-taking, or toughness, the slogan is always the same: “Manly Man”. Thus, the different foci of the ads do not merely reflect differences in how desirable some traits are in different parts of China. Rather, they show that these characteristics (successful, care-taker, tough) define what a “manly man” is in each of these cities, at a deeper “psychographic” and “behavioral” level.

 

Antonios (Adoni) Stamatogiannakis, Ph.D.
Assistant Professor of Marketing
IE Business School – IE University

antonios.stamatogiannakis@ie.edu

29
Jul

TeleKAM brokers, a new breed

Written on July 29, 2013 by Claire Bastien in Sales Management

Talking with a friend who works in Quantum Telcom, it became fascinating to realize that this business involves aspects of stock-broking, speculation in future markets like rice or petrol and also pure gambling. A bad decision can have direct consequences for example imagine a contract selling traffic – telephone minutes – to a South African company during the World Cup and then having connection problems from your supplying operator.

Traditional telecommunications has been direct sales from provider to customer, for example Telefonica to me. During the last few years, new players have arrived to the market. Essentially brokers or re-sellers, who are intermediaries in the B2B market of voice termination. They ensure the routing of a telephone call, these companies buy from one supplier (an operator) to another, hopefully at a profit.

Voice Termination

This dynamic new market is exploding now with globalization. However the margins are very small and so volume of business becomes very important. These companies are selling minutes but perhaps more important than price is reliability (cheap prices are useless if calls are continually dropped). In this sector there is a limited number of clients and a lot of companies competing for their business. Companies, who invest in IT have a distinct advantage as the reliability of their server becomes paramount.

KAM in voice termination spends more time marketing to and building relationships with existing and potential clients. Additionally the KAM needs to be well informed, educated in the market and paying attention to social and politic events in order to quickly react.

28
Jul

¿Sirven los medios sociales para vender?

Written on July 28, 2013 by Carlos Saldaña in Social media

Me gustaría compartir con vosotros el estudio realizado por Vision Critical bajo el título “From Social to Sale” (de lo social a la venta) ya que puede servir de apoyo para responder a preguntas recurrentes que surgen en las distintas clases que imparto sobre medios sociales: ¿Sirven los medios sociales para vender?, ¿se puede captar clientes en los medios sociales?, ¿influyen los medios sociales en las decisiones de compra?.

El estudio está basado en 6,000 respuestas centradas en el comportamiento de compra en los medios sociales y en concreto en Facebook, Pinterest y Twitter y cómo estos influyen y “empujan” a la compra offline y online.

Algunas de las conclusiones que se desprenden del estudio:

  • Un 38% de los usuarios de Facebook han realizado una compra después de compartir o hacer un “like” sobre un artículo, un 29% de los usuarios de Pinterest y un 22% en Twitter.
  • Las categorías de productos que más convierten desde los medios sociales a la compra (por orden) en cada una de las redes son: Facebook: Tecnología (25%), ropa (22%) y comida (14%), Twitter: Tecnología (34%), ropa (18%) y comida (13%), Pinterest: Comida (34%), Arte/diseño/fotografía (18%) y decoración (13%).
  • Un 50% de los usuarios de Pinterest han creado un “board” donde muestran productos que les gustaría comprar.
  • Un 29% de los usuarios de Facebook compran en menos de 24h después de compartir una marca o producto, un 20% en Twitter y un 10% en Pinterest.
  • El 75% de los usuarios accede diariamente a Facebook, frente un 17% a Twitter y otro 17% a Pinterest.

Podéis descargaros el estudio completo aquí: http://www.visioncritical.com/sites/default/files/pdf/whitepaper-social-to-sale.pdf

Espero que sea de vuestro interés y aprovecho para desearos unas vacaciones tranquilas.

@CarlosSaldana

compra social por tipo de medio social

how social purchases are first discovered

la audiencia en los medios sociales edad y sexo

uso de los medios sociales

27
Jul

Congratulatory messages are flooding in from around the world to mark the birth of the Duke and Duchess of Cambridge’s son, the third in line to the throne.

Which is a unique occasion for the BRANDS to join the congratulation showing off how creative they can be + engage with their customers.

I am enclosing a sample of the Advertising carried out. I look forward knowing your favourite one.

 

J&J

royal george j&j

 

 

COKE

 royal george coke

 

OREO

royal george oreo

 

 MINI

Mini Royalty has arrived video

 

MAGNUM

royal george magnum

 

 

CHARMIN

royal george charmin 

 

DELTA

royal george delta 

 

GRANOLA

royal george granola 

 

HOSTESS SNACK

royal george hostess snacks 

 

MUMM

royal george hMumm

 

SMURFS

 royal george smurfs

 

STARBUCKS

royal george sb

 

 

Look forward for your comments here or @ignaciogafo.

THINK DIFFERENT!!!

Ignacio Gafo

22
Jul

El post de hoy es una llamada a responsabilidad. De los Medios de Comunicación en primer lugar, de las Agencias de Rating y demás agente bursátiles a continuación, y del lector por último.

La llamada viene después de leer el artículo ¿Qué ha sido de los profetas que anunciaron el hundimiento de España?, donde se hace un repaso a la infamia vertida sobre le economía española y la Marca España,  por diversos medios y agencias.

spain dead

El esquema es sencillo:

Toma un Medio o Agencia reconocida un país marginal para sus intereses, vierte comentarios apocalípticos sobre el mismo, y lo justifica en base a informaciones recibidas por fuentes ilustres pero anónimas o en base a declaraciones de pseudo gurús repentinos.

Teniendo como efecto una creencia generalizada, que no se para a pensar si lo que lee es verídico…

Lo anterior, resulta ser a larga una falacia,  sin impacto alguno en la credibilidad del Medio o Agencia, por que ya nadie se acuerda de lo dicho o nadie quiere hacerlo…

Ante lo cual pregunto: ¿Quién es más culpable de alimentar este círculo destructivo? ¿Los Medios y Agencias que viven del oscurantismo? ¿Los agentes bursátiles que sobreviven con la especulación? ¿O la masa de lectores que digieren sin pensar lo que les están contando? Os dejo que lo concluyáis vosotros mismos…

falacia

Y cierro lanzando algunas reflexiones:

Los Medios y Agencias tienen cierta responsabilidad informativa. Tienen que estar a la altura de las expectativas depositadas en ellas, so pena de perder su Reputación Corporativa y en definitiva su Valor de Marca.

Cuidado con los Gurús repentinos. Soy consciente de que el público los reclama, al igual que lo hace con las “nuevas personalities”.  Pero resultan teniendo menos base real que lo que afirman.

Los Países tendrían que tomar un rol más activo en proteger su percepción y Marca. En el caso de España, tenemos que tener un enfoque más sistemático y coherente en lo que es el cuidado de la Marca España, y protegerla a como diera lugar.

- Es necesario por último cultivar y desarrollar más el espíritu crítico del consumidor. Sé que hay una marcada tendencia a lo superfluo, pero también tenemos la responsabilidad de desarrollar el espíritu crítico yo no creer a ciegas, aunque lo diga alguien tan reputado como el Wall Street Journal o el Economist…

españa

Siento si me he salido del Marketing por hoy, pero me parece importante que reflexionemos sobre cómo construimos nuestras percepciones, y cómo nos llegamos a creer sin más afirmaciones de grandes Marcas de Comunicación.

Que ni España está tan mal como la pintaban, ni tiene todavía los claros signos de recuperación que nos quieren hacer ver ahora. La situación es todavía grave, estamos tratándonos de recuperar, y esperamos hacerlo pronto y de forma sostenible. Medios de Comunicación mediante.

Espero vuestros comentarios en @ignaciogafo.

THINK DIFFERENT!!!

Ignacio Gafo

 

 

20
Jul

Hello everyone, I hope you are enjoying your summer.

In this post I return to my field of expertise: consumer behavior and specifically consumer goal pursuit.

In a previous post (http://marketing.blogs.ie.edu/archives/2012/12/marketing-savings-accounts-in-times-of-crisis.php) I explained how consumers focus their attention to different aspects of the environment depending on whether they are asked to improve their current position (e.g., a bank asking you to increase your balance, or a diet center asking you to lose weight) or  they are asked to maintain their position (e.g., a bank asking you to maintain your balance, or a diet center asking you to maintain your weight). Specifically, based on my research*, it seems that “Maintaining” usually evokes thoughts like “what may help or prevent me from succeeding?”, whereas “improving” usually evokes thoughts like “what is the amount of the improvement needed?”

These differences in thinking may have an interesting consequence. When people think about small improvements in their present position (e.g., 1-2 Euros in their balance, a few grams in their weight), focusing on the (small) amount of improvement will make them believe that their goal of improvement is very easy. On the other hand, when people think about maintaining their present position, they consider a more balanced set of factors – factors that may be either facilitating or inhibiting their pursuits. As a result of considering those factors, although no improvement is required, these goals will not look that easy.

Thus, ironically, someone who is asked to increase his bank balance may think that this is easier compared to if he was asked to maintain it – as long as the amount of improvement is small. Similarly, a diet aiming at weight maintenance may be thought as requiring more effort than a diet aiming at losing a few kilos.

 

But what can be the implications for marketing practice? Interestingly, from the perspective of a company, the two goal types can be used (almost) interchangeably. Whether a bank asks consumers to maintain their balance or increase it by a few Euros over a year, are almost identical from an operational perspective. Similar is the case of a diet center which may ask its consumers to either try to maintain their weight, or lose a few grams – without changing the pragmatic requirements of a diet program. This relatively flexible interchangeability between the two goal types (improving versus maintaining) implies at least 2 interesting applications.

First, using the “small improvement” type of goals in their offerings, companies will make them look less difficult, and thus more attractive. The terms of a bank account would look easier if they asked to just contribute to the account a few cents per year, than if they asked to maintain the balance. Or, a casino could make potential bonuses it offers to its clients more attractive if those bonuses were given to customers slightly increasing their number of chips, than to clients who are able to maintain their number of chips while playing.

Of course, such practices may call for legal scrutiny, in case they are used against the welfare of the consumers (e.g., in order to prevent addiction to gambling).

Second, using a “maintenance” type of goals, may make an offering look more difficult. This type of goals, for instance, could be used by a diet center in the case that small improvement goals (e.g., lose half a kilo) look too easy to consumers, involving thus the risk of failure because of insufficient effort. Since the maintenance goal may look a bit more difficult, it could help to increase the effort put by the consumers in their diet.

I wish you all a great summer!

 

Antonios (Adoni) Stamatogiannakis, Ph.D.
Assistant Professor of Marketing
IE Business School – IE University

antonios.stamatogiannakis@ie.edu

*The Research leading to these results has received funding from the People Programme (Marie Curie Actions ) of the European Union´s Seventh Framework Programme (FP7/2007-2013) under REA grant agreement No. 298420.

9
Jul

Ya no sólo Coca-Cola llega al fin del mundo

Written on July 9, 2013 by María López Escorial in Bottom of the Pyramid, Distribución

Durante muchos años, cuando visitabas comunidades alejadas en países en desarrollo, uno de los pocos productos masivos que encontrabas era Coca-Cola, teniendo el honor de ser la empresa con la distribución más extensa del planeta.

De vuelta de mi viaje por Ghana la semana pasada, te das cuanta del desarrollo que ha tenido la distribución en estos países en los últimos años. Cuando te encuentras vendedores de Vodafone, Tigo o MTN, totalmente uniformados, con el rojo Vodafone o el amarillo MNT impoluto,

instalación electrica 046

transmitiendo los valores de marca de solidez y seguridad en lugares imposibles de llegar con una red de ventas tradicional, te das cuenta del esfuerzo constante y titánico que hacen estas marcas por servir a los clientes de la BOP con un producto que les ha cambiado la vida. Tanto en su uso como en la generación de ingresos.

Realmente no te explicas como pueden mantener uniformes, petos, sombrillas, carritos con el color con el pantone correcto, el logo perfecto y el material en buen estado en medio del tráfico, el polvo, el caos organizado que siempre reina en estos países.

IMG_5529

Estructurar y gestionar una red de ventas de estas características tiene retos titánicos pero es clave a la hora de lograr una distribución masiva especialmente en productos de alto volumen y bajo margen.

Cada paso de la gestión de ventas supone un gran esfuerzo; desde la selección de vendedores, training, incentivación, supervisión y monitoreo cuando el perfil de los vendedores es de escasos recursos, la dispersión geográfica muy grande, la casuística inimaginable, pero la única forma de tener resultado en estos mercados.

Según Hystra, para poder triunfar en los mercados de la BOP es clave invertir en una buena y moderna fuerza de ventas, que combine 4 elementos:

– Una red de ventas móvil y a tiempo completo que se apalanque en las relaciones a nivel local y disminuya los tiempos de desplazamiento
– Un network local de “evangelistas” a comisión que evalúan el mercado, agregan las ventas, recogen pagos, ..
– Red de ventas altamente supervisada que aunque supone un sobre coste de ente 4-6%, baja la rotación de vendedores alrededor de un 25% que a la vez minimiza el coste de formación
– Apalancamiento que de tecnología siempre que sea posible; en el móvil de los vendedores, plataforma central que envía información a los agentes y les informa de nuevos productos o promociones, mensajes de texto con formación, dispositivos móviles para la captura de datos in situ, ….

Difícil… pero no imposible. Qué os parece la adaptación de Bulberry?

instalación electrica 047

Espero vuestros cometarios! En el blog y en @marialescorial

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