Ok, this is the second part of the evolution of business strategy. I have some thoughts but unfortunately very few spare time to write them down and post them here... This is the second part which is very short but I am already working on the third (and maybe last) part.
The Beta Products
Harsh competition forced many companies to speed the process of product development and resulted in a model where customers are also testers of the early stages of products. Beta versions are very popular and common on the internet. Furthermore beta versions apply more to services and tangible products rather than regular products (I can’t imagine Beta toothpaste!). Two are the key points when discussing the beta products: Firstly, betas mean less testing for the company thus lower investments. Lower investments lead to lower risks associated with product failure. So, we come to the second point: The collaborative model where business and customer cooperate for the interest of both (company for increased profits, customer for better experience). In that model, customers constantly give valued feedback to the company and in a way they actively participate in the product development.
So in brief, Beta products help companies be ahead of competition and lower the risk of product failure, which in normal occasions is very high (the majority of products fail either in development or at their launch).
The Experience Approach
Businesses are trying a different approach in delivering products; a holistic approach. From the core product, we have advanced to an escorting set of services as a point of differentiation. From now on, companies are starting to transform products’ & services’ consuming to “Experiences”. That is a new emerging approach that is unexploited yet. Experience means more integration of services, more customer satisfaction and a strong focus on loyalty and value for customer.
Thursday, April 27, 2006
Monday, April 24, 2006
The Evolution of Business Strategy: Part A
I saw a post in one of the blogs I read (The Messaging Times) about the evolution of Strategic Management and Business Strategy. See the post here: http://www.messagingtimes.com/blog/?p=218. Dmitry Linkov (http://www.dmitrylinkov.com/) is writing his Master Diploma work and he can use some help and thoughts about the evolution of business strategy and management.
Below I post some of my thoughts about the subject… this is the first part:
SME Shelter
The internet is the last frontier for small and medium sized businesses in order to compete with the contemporary giants. I foresee two possible scenarios:
The Referring Economy
Another trend that will gain much popularity and importance is the “Referring Economy”. Referring Economy is the system in which each individual will have great referring power and he/she will be in position to make really great impact in economy and markets. This goes further than the average affiliate selling program; each of us will have a great amount of information and choices thus enabling us to refer others to use the services and consume the products either we know and trust or we have a vested interest at them. Viral marketing and word-of-mouth will be the case in the first occasion and affiliating / referring the later.
Below I post some of my thoughts about the subject… this is the first part:
SME Shelter
The internet is the last frontier for small and medium sized businesses in order to compete with the contemporary giants. I foresee two possible scenarios:
- Web 2.0 and modern internet trends will shelter small and medium sized businesses and will become the strategic center where these businesses will answer back and proactively claim customers’ attention and preference. That will happen through management of change, customer careful listening / trend watching and finally through advanced specialization, know-how, intensive and innovative ways to compete.
- Big corporations and multinationals will fast and easily respond to the latest trends such as blogging, internet affiliating and referring, infolust, etc. They will carefully adapt those latest developments and moreover they would be available to evolve those concepts to even more innovative projects and wealth channels for them.
The Referring Economy
Another trend that will gain much popularity and importance is the “Referring Economy”. Referring Economy is the system in which each individual will have great referring power and he/she will be in position to make really great impact in economy and markets. This goes further than the average affiliate selling program; each of us will have a great amount of information and choices thus enabling us to refer others to use the services and consume the products either we know and trust or we have a vested interest at them. Viral marketing and word-of-mouth will be the case in the first occasion and affiliating / referring the later.
Thursday, April 20, 2006
Ad Copy
Copy is the message that an ad is trying to communicate. Sometimes it is a written message in a newspaper or a website and sometimes a short video in tv or an audio file on a radio broadcast, etc. Whether written, read or transmitted in any way, copy is what the advertiser wants us to listen and pay attention to.
All advertisements tell a story; sometimes a story is more appealing or less appealing than others. So, in order to have an eye-catching, effective ad you need an attractive story but also the right copy. Think of that: The same story seems to appeal differently from storyteller to storyteller. Exactly the same applies to different copies for the same story.
Every ad message is based in either logical reasons or sentimental reasons. Sometimes it refers to both ways. There is no perfect solution; according to the product or service and the ad audience it may be preferable to enlist logical reasons (e.g. for a business software or an ERP) or sentimental reasons (e.g. for a luxurious and status car).
As regards the ad copy there are two options as well. You can either be direct to your audience or indirect. Direct copy means that it is written like you refer to the each of the audience personally while indirect is more of a general call for action. Direct copies are very common in internet ads and in infomercials. Indirect ads are more common in other media like regular tv ads and newspapers. There is also no better solution between those two. Sometimes it is more preferable to be direct and other to be indirect. An example of preferable direct copies may refer to products that sales are based in impulse purchases while in products where much consideration is needed before an action is taken, indirect messages may be better. Generally in low involvement products or services, direct ads are better. On the contrary, in high involvement products indirect messages may be better. Of course this is not a rule and doesn’t apply in all occasions.
It is also very common for ads based in sentimental reasons to use copies that respond directly to the audience, while those that cite logical reasons to have a more indirect approach.
Fine Resources on the net about how to write effective ad copies:
All advertisements tell a story; sometimes a story is more appealing or less appealing than others. So, in order to have an eye-catching, effective ad you need an attractive story but also the right copy. Think of that: The same story seems to appeal differently from storyteller to storyteller. Exactly the same applies to different copies for the same story.
Every ad message is based in either logical reasons or sentimental reasons. Sometimes it refers to both ways. There is no perfect solution; according to the product or service and the ad audience it may be preferable to enlist logical reasons (e.g. for a business software or an ERP) or sentimental reasons (e.g. for a luxurious and status car).
As regards the ad copy there are two options as well. You can either be direct to your audience or indirect. Direct copy means that it is written like you refer to the each of the audience personally while indirect is more of a general call for action. Direct copies are very common in internet ads and in infomercials. Indirect ads are more common in other media like regular tv ads and newspapers. There is also no better solution between those two. Sometimes it is more preferable to be direct and other to be indirect. An example of preferable direct copies may refer to products that sales are based in impulse purchases while in products where much consideration is needed before an action is taken, indirect messages may be better. Generally in low involvement products or services, direct ads are better. On the contrary, in high involvement products indirect messages may be better. Of course this is not a rule and doesn’t apply in all occasions.
It is also very common for ads based in sentimental reasons to use copies that respond directly to the audience, while those that cite logical reasons to have a more indirect approach.
Fine Resources on the net about how to write effective ad copies:
Wednesday, April 19, 2006
New Tenant!
I am very happy to announce that I have a new tenant (this is actually the first time I use the renting feature in my blog)! It is a very good blog about advertising on the internet, online promotion and the use of technology and new developments (such as blogging) for marketing and success. The blog's name is CoolAdzine for Marketers and the blogger is CyberCelt.
I am particularly happy not only because of the relevant content but also for the quality of the posts and the freshness (at least one post every 2 days). So pay a visit, you will like it!
The url is: http://cooladzine.blogspot.com/
Most recent posts so that you have a sample:
I am particularly happy not only because of the relevant content but also for the quality of the posts and the freshness (at least one post every 2 days). So pay a visit, you will like it!
The url is: http://cooladzine.blogspot.com/
Most recent posts so that you have a sample:
Monday, April 17, 2006
Sites about Small Business Resources
All Business is a very good website with resources about small business, business advice, answers from experts, business plans and many business administration and management topics (including sales, marketing, finance, accounting, etc.). The url for this site is: http://www.allbusiness.com/.
Other good sites about Business and particularly small ones are:
http://www.entrepreneur.com/ - Business and Small business resources
http://www.startupjournal.com/ - Start up Journal (Wall street journal, center for entrepreuneurs).
- Do you know of other good sites about business resources, marketing, management? Post a comment please...!
Other good sites about Business and particularly small ones are:
http://www.entrepreneur.com/ - Business and Small business resources
http://www.startupjournal.com/ - Start up Journal (Wall street journal, center for entrepreuneurs).
- Do you know of other good sites about business resources, marketing, management? Post a comment please...!
Saturday, April 01, 2006
Internet marketing e-books
Lately, I‘ve been reading a lot about internet marketing and strategies to success, about web 2.0, even affiliate programs and business opportunities!
After a lot of research I have found some good e-books or better e-guides about online marketing and the use of web 2.0 to spread your message. Many of these books are written by the online marketing guru Seth Godin. Visit his blog and download his ebooks at: http://sethgodin.typepad.com/. You will find among others: Who’s there, which is about blogging (for business and not for business), flipping the funnel which is about viral internet marketing (in three editions: company, politics, non-profit). Demo e-books are also included such as Permission Marketing etc. Note that these books are very short and easy to read.
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