Celluar Wallet

There seems to be a new app or a new use for smart phones everyday. And to no surprise there is technology that enables a smart phone user to purchase items just by scanning a bar code displayed on their phone. The bar code would be linked straight to your bank account of course. So if you can do everything else on your phone what's the damage in making your smart phone your wallet as well? Security feels like it should be an argument, but isn't all of our banking information electronically organized anyway? It is hard to imagine that your phone would make your information any more accessible then it already is. Then there are the worries of functionality. We all have those moments where our phone does absolutely nothing it is supposed to. This could be an extreme turn off to potential users of this technology. This new technology also poses a threat to our favorite plastic occupants in our wallets. Visa and MasterCard recorded 2.45 trillion in U.S. consumer spending was through their products. The effect this new technology could have on big companies like Visa and MasterCard is not yet known, but we can probably bet on some sort of bite being taken out of their cake.

The implementation of mobile device payment may be a tricky one. Consumers would more than likely resist the change due to not enough merchants adopting the new technology and merchants will more than likely not jump into anything without knowing enough consumers will use the technology. This predicament could make it difficult for this technology to take hold. Regardless of the obstacles, it is my belief that one day in the near future smart phone payment will be a marketable business. It is yet another way to enhance the exchange relationship between merchant and consumer. Even with the concerns of security, functionality and implementation this new technology will become more popular as it already has been in Japan and the U.K.

Article:
http://www.bloomberg.com/news/2010-08-02/at-t-verizon-said-to-target-visa-mastercard-with-smartphones.html
Linked!:
http://e-marketingforsensiblefolk.blogspot.com/2011/01/pay-by-smartphone-at-starbucks-mobile.html

Knock, Knock...It's China.

In the times where small businesses to large corporations alike are asking themselves "what is our core competence?" and "how can we stay competitive" it is important to remember that the same questions are being asked by our world leaders. When thinking about America, what would you say our core competence would be? For decades we have been the mecca for innovation and the place where innovative companies could flourish. With China's tremendous growth not only in population, but also their online users, they have become a HUGE online presence.  But is it safe to say that "he who rules the Internet, rules all?"

Right now China's Internet market is booming. With more users everyday the Internet has become a place of possibility for Chinese innovation. Companies like Giant Interactive and Shanda Interactive Entertainment are popular market watchers because of their potential to expand into social networking, given the popularity of gaming in China. These companies have experienced great growth and when compared to their fellow U.S. companies they win the race. It's not to say that the U.S. is out of the fight. With top companies like Google, we claim our right to compete. The soil might be rich in China's Internet market, but without the proper tools and know how their potential could be lost. The security measures that the Chinese government uses to filter certain things from the Internet could possibly inhibit innovation, BUT with the Chinese Internet user community growing it is a reality that U.S. companies will experience less growth in the future.

Article:
http://www.reuters.com/article/idUSTRE57R33420090828?pageNumber=1
Linked!:
http://e-marketingforsensiblefolk.blogspot.com/2011/01/how-will-chinas-online-presence.html

Dear Groupon: I like your style.

Pretend you are a small business owner and you are sitting in your place of business on a Monday morning with a cup of Joe. You ask yourself "How do I boost sales?", "How do I reach those customers that don't even know my company exists?". Enter Andrew Mason, CEO of Groupon (you can assume it's not your typical Monday morning). He would tell you about Groupon and how there is no other service that has been shown to boost small business sales and awareness like this one. With his history of being one of the fastest companies to make their first billion you might just go for it, but will it really be profitable for your company?

The way Groupon works is through a subscription service. Members of the Groupon community receive daily emails showcasing that day's deal. Whether it be a massage, dinner and drinks, group fitness classes or tickets to shows, all deals are offered at a radical discounted rate. The catch you ask? You don't get the deal unless a certain amount of people buy the deal. With 6.5 million members you might not have to worry too much, but to a small business this might sound like a bit of a gamble. Check out this video on Groupon!

My take on Groupon is that it really does work. Of course you will have those people that come into your business one time, show you their Groupon deal and walk out pleased with the fact they paid no where near what you really charge, BUT you will also get the customers that will keep on coming back. And with those customers comes positive word of mouth, which we all know is the best form of marketing. Small businesses and Groupon have a harmonious relationship and one can see that when they look at Groupon's profits.

We all know that with Internet success comes interested buyers, enter Google. Concerns about Google buying Groupon range from the concern of lack of consideration of Groupon's worth to the concern it might lose a bit of that exclusive feel. Although Groupon has millions of users there is still a special feeling when you log on and "discover" the deal for the day. Would Groupon be "selling out"? With the brand of Google backing Groupon it might be exactly what they need to launch into the next level. 

Groupon continues to expand their profits by offering small businesses a solution to limited reach and low purchase frequency. The discovery of small businesses in your city is just a click away, have you checked your deal today?

Reference Article:
http://www.forbes.com/forbes/2010/0830/entrepreneurs-groupon-facebook-twitter-next-web-phenom.html

Linked!
http://e-marketingforsensiblefolk.blogspot.com/2010/11/blog-post_30.html

Neuromarketing: You think it, They know it

When it comes to the classic question of "If you could have any superpower, what would it be?", a marketer's answer would understandably be "mind reading". The consumer mind has always been a dark, mysterious place that marketers are constantly trying to tap into.  Through different forms of research like surveys and focus groups more data has become available, but there is always that gap of what the consumer says and what the consumer feels and feelings are what drives buying decisions.  So how have marketers done the impossible? Drum roll, please.  They call it Neuromarketing! The use of neuro technology for marketing.  The following are some techniques used by neuromarketers to gain information on consumer responses: Functional Magnetic Resonance Imaging (FMRI) which shows neural changes in blood flow, Steady State Topography (SST), Electroencephalography (EEG) which records the brains electrical activity due to a stimulus, Eye Tracking, and Galvanic Skin Response which shows the body's topical response. Now that a lot of big words were just thrown out the basic principle is that Neuromarketing practices give marketers a realistic, real time breakdown of a consumer response to a stimulus. In this video Jack Bush walks us through the basics of using Neuromarketing techniques.

Feeling exposed? It is safe to say that this practice is something that can be argued both ways, but let's try and concentrate on whats important. Money. More effective ads mean more dollars in their pockets and less in ours. The trade off? We get products that we think we need! Companies like Frito-Lay and The Weather Channel have already used Neuromarketing to attempt to crack the code of consumer decisions. In Frito-Lay's attempt to appeal more to woman they studied the female brain. Their findings showed that they should focus more on "healthy" associations. The Weather Channel used eye tracking and EEG to gain knowledge on reactions to pitches of possible programming. With these techniques companies get the kind of information they've been scratching their heads about for years.

It is clear that this type of research won't lose momentum anytime soon. Neuromarketing will continue to shine light on consumer decision drivers and for consumers these techniques will lessen the gap between the marketer and your wallet.

Reference Article
Linked!

Well hello there...

In my attempt to implore my thoughts about business and marketing I hope to be both entertaining and insightful. Marketing drives you and I into the belief we need something and by marketing to you, I will attempt to make you feel you need my blog. I am up to the challenge. I'm a full believer in the wonders of Marketing and look forward to reflecting upon different topics that come our way. Thank you for reading - happy blogging!!