Friday, February 17, 2012

In response to Brooke's post

Brooke talks about Tide's new product and the accompanying marketing campaign. These new 'Tide Pods' have detergent, softener and stain remover all in an easy to use, single use pod. She asks:
Do you think this campaign is going to be successful in targeting the younger audience by using these phrases and colors in the ads? Will people be open to trying something new or just stick to their usual detergent?
My first thought is that this is defiantly something that is targeted to young adults, especially those who do not like to do laundry. I can see parents sending their kids to college with these, just as I was given detergent/dryer sheet combos (despite an extensive knowledge of how to laundry). People like convenience, and I can see how this will cater to that.

I don't see people making the switch however. Products like these have, in the past, been more expensive than regular detergent, and get used up more quickly. Since you are being given pods, and not liquid, you get less detergent really. While the idea of a premeasured amount of detergent is great, I can't see people on a budget making a switch. There's also no generic for this. Many brand name companies make generic store brands that cost less. A product like this will have no generic supplement.

I do think it is possible that there will be an initial rise in these pods. College kids will enjoy them for the ease. Working parents may also want them. However, I don't see people making a permanent switch. In the NY Times article Brooke cited, it talked about bringing innovation to the industry and "Apple Envy".
Giants like Procter, Clorox, Reckitt Benckiser and Unilever are seeking to continually deliver distinctive new products that pique the curiosity of consumers who dote on high-technology items like smartphones and tablets.
However, if all that's happening as piqued curiosity, one has to wonder what the staying power of the product will be. And honestly, I don't think of my laundry when I think of technological innovations. I believe trying to draw parallels between high-tech items and laundry isn't the smartest idea.

People stick to what they know. People like routine, and dislike change. That's my opinion. What do you think of the ads? Can a product like this have any real staying power? Is it a good idea to cash in on people's love for the high tech, or will this just fall flat? 

Thursday, February 16, 2012

How effective is marketing on Facebook?

Like many other people my age, I spend a decent amount of time on the internet on Facebook. It's on my laptop and my phone, saved into my bookmark bar with my login information already saved so I can log on at a moments notice. Just like everyone else, my news feed has ads on the side of it. Right now, there's ads for Wendy's, engagement rings, a closed-captioning service, Cheez-Its, shoes and a targeted ad for Kohl's employees. 


I just ignore all these, as I'm sure most people do. However, plenty of companies advertise on Facebook. Many have fan pages, groups or just regular accounts. While these sidebar ads might be easily ignored, how effective are these regular pages? Does thousands of fans equal any measurable sales or increase in services?

According to a study done by Rice University, yes, it does. Facebook marketing is very effective. They "surveyed customers of Dessert Gallery, a popular Houston based cafe chain". Over a 3 month period, 1,700 fans were compared to the typical customer, and the following was deduced.

The Facebook fans:
    • Made 36 percent more visits to DG's stores each month.
    • Spent 45 percent more of their eating-out dollars at DG.
    • Spent 33 percent more at DG's stores.
    • Had 14 percent higher emotional attachment to the DG brand.
    • Had 41 percent greater psychological loyalty toward DG.
Those statistics translate into dollar signs for the company. Considering Facebook is a free service, this is a low cost way to increase knowledge of your company, as well as increase profits.

While social media marketing is not as effective with the older generation, it certainly is popular with the tech-savvy generations. Coupons and other bargains, offered exclusively through Facebook, often keep customers coming back.

Do you follow any particular companies on Facebook? If so, do you feel more connected or more likely to interact with that company because of their Facebook page? Do you think Facebook marketing is an effective strategy for companies?