More Than Just Clicks: Where is the Social ROI?

Hola Todos!

A friend forwarded me this link yesterday from TechCrunch highlighting comments from the TechCrunch Disrupt NY conference. At the event, senior advertising managers from Google, Facebook, and Twitter discussed/argued the value of digital advertising. Surprisingly, the panel spent more time discussing the value of a click than anything else.  Not surprisingly, the three firms stated that their brand advertisers are most concerned with the reach, frequency and results of their ad campaigns.

As my students will surely attest, I have an ROI mentality and discussing how much a “click” is worth is mostly uninteresting.  Of the three panelist, only Facebook mentioned  they have “been doing quite a bit of research in an attempt to tie online ads to offline purchases.”  In the article, Facebook said they are working with “Nielsen and DataLogix” which means they are really working with our friends at Catalina Marketing, which is the only firm that can link online behavior to offline purchases.

Something to read today…

Best

Dr. Dan-o

 

 

SXSWi Round Up

Hola Todos!

The South-by-Southwest Interactive Conference (AKA SXSWi) wrapped up yesterday.  More than 30,000 people, up 25% from last year, attended the dizzying array of sessions and celebrity appearances (e.g., Al Gore, Elon Musk, Steve Carell, etc).  The world’s first crowdsourced car was unveiled.  One of the big themes at this year’s SXSWi was hardware over software including 3-D printing and the marker-bot movement.

Perhaps most interesting to attendees was the in-depth demo of Google Glass.  Mashable had Google as the clear winner of this year’s SXSWi as Google Glass accounted for 21% of all brand conversation at the conference.  I highly suggest checking out the article as it features an excellent infographic on all the top conversations at SXSWi.

Best regards,

Dr. Dan-o

 

Daniel M. Ladik, Ph.D.,

Associate Professor of Marketing

Stillman School of Business

Seton Hall University

 

 

 

Market Orientation: Nokia is NOT Market Driven nor Market Driving

Hola Todos!

As I always said in class, it is much easier to find non-market orientated firms than market orientated ones.  The other day when reading The Wall Street Journal, I found 2012’s exemplar firm on how to be non-market orientated.

For a quick review, market oriented firms have three main characteristics: (1) an incredibly strong external orientation towards customers, (2) an incredibly strong external orientation towards competition, and (3) incredibly strong internal communication within the firm.  Most firms do #1 and #2 well.  These two orientations are relatively easy.  Its #3 is where most firms do not do well (or at all).  Too many companies have functional silos (e.g., divisions, SBUs, offices, etc. that are relatively independent and do not talk/plan/coordinate together).  Non-market orientated firms have mostly an internal orientation for items #1 & #2 and item #3 is non-existent.  Companies that have mostly internal power struggles and are dominated by politics are mostly non market-orientated.  For more detail market orientation along with the two main types, market driven and marketing driving, click here.

In “Nokia’s Bad Call on Smartphones” journalists Anton Troianovski and Sven Grundberg detail many of Nokia’s non-market orientated missteps in the smartphone marketplace.  What follows are some select quotes from the article and then my commentary afterwards.

This year, Nokia ended a 14-year-run as the world’s largest maker of mobile phones, as rival Samsung took the top spot and makers of cheaper phones ate into Nokia’s sales volumes. Nokia’s share of mobile phone sales fell to 21% in the first quarter from 27% a year earlier, according to market data from IDC. Its share peaked at 40.4% at the end of 2007.”   – – Notice Nokia’s peak was the same year the iPhone hit the market and one year before Android.

More than seven years before Apple Inc., rolled out the iPhone, the Nokia team showed a phone with a color touch screen set above a single button. The device was shown locating a restaurant, playing a racing game and ordering lipstick. In the late 1990s, Nokia secretly developed another alluring product: a tablet computer with a wireless connection and touch screen—all features today of the hot-selling Apple iPad. Consumers never saw either device. The gadgets were casualties of a corporate culture that lavished funds on research but squandered opportunities to bring the innovations it produced to market.”  Ouch – the next set of quotes emphasizes the lack of interfirm communication component of market orientation.

Nokia is losing ground despite spending $40 billion on research and development over the past decade—nearly four times what Apple spent in the same period. And Nokia clearly saw where the industry it dominated was heading. But its research effort was fragmented by internal rivalries and disconnected from the operations that actually brought phones to market.”  Politics and functional silos KILL market orientation.  R & D didn’t work with marketing who didn’t work with operations – let’s not forget about senior leadership.

In 1996, the company unveiled its first smartphone, the Nokia 9000, and called it the first mobile device that could email, fax and surf the Web. It weighed slightly under a pound. “We had exactly the right view of what it was all about,” says Mr. Ollila, who stepped down as chief executive in 2006 and retired as chairman in May. “We were about five years ahead.” The phone, also called the Communicator, made an appearance in the movie “The Saint” and drew a dedicated following among certain business users, but never commanded a mass audience. Nokia’s smartphones had hit the market too early, before consumers or wireless networks were ready to make use of them. And when the iPhone emerged, Nokia failed to recognize the threat.”  Here – we have a clear failure of the 2nd part of market orientation – an incredibly strong external orientation towards competition.  Plus senior leadership at Nokia failed to look forward and see where the market was headed.

One team tried to revamp Symbian, the aging operating system that ran most Nokia smartphones. Another effort, eventually dubbed MeeGo, tried to build a new system from the ground up.  People involved with both efforts say the two teams competed with each other for support within the company and the attention of top executives—a problem that plagued Nokia’s R&D operations. “You were spending more time fighting politics than doing design,” said Alastair Curtis, Nokia’s chief designer from 2006 to 2009. The organizational structure was so convoluted he added, “it was hard for the team to drive through a coherent, consistent, beautiful experience.”  Wow – no interfirm communication or coordination – more like creating a competitor within you own company? What make this all worse is senior managers in the C-suite supported this strategy, then was divided as some supported Symbian and others backed MeeGo.  Much time, money and resources were spent on Symbian and MeeGo in internal battles and competitors Apple and Android took advantage of opportunity by the distracted #1 player.

The irony of this whole Nokia story is that after all that time, money and resources were spent on Symbian and MeeGo, BOTH were scrapped as Nokia took Microsoft’s cash and switched over to Windows mobile.  OUCH!

In closing, just about everything in the Nokia story above (except the cameo part in a movie) was mirrored by the 2011 exemplar for non-market orientation: RIM and their Blackberry smartphones.

 

Something to think about today…

 

Best regards,

Dr. Dan-o

 

Daniel M. Ladik, PhD

Associate Professor of Marketing

Stillman School of Business

Seton Hall University

 

Yahoo is Going to Save itself!

Hola Todos!

I have been critical of Yahoo on the blog (try here and here) but now, Yahoo will be a firm to follow with the addition of former Google employee #20 Marissa Mayer.  Finally, Yahoo has itself a leader who will use her product and advertising knowledge gained at Google to steer Yahoo in the right direction.  The surprising and unexpected news broke on the NY Times Monday afternoon (click here).  Here is so much to talk about with this story that I am just going to blurt for now:

-Congrats for Marissa who jumped a few levels of the executive tree to land the CEO gig.

-Marissa is now one of 20 female CEOs in the Fortune 500.

-She could not have been very happy in the Page tenure as she was not given a significant position when he became CEO.

-I see this as a major blow to Google as the Page tenure has not smooth by any stretch of the imagination.  I feel Yahoo’s luck in landing Mayer has just as much to do with the lack of vision and/or conflict at Google with Page.

-Yahoo should be able to attract stronger talent (including some future Google defections) in the hyper competitive valley environment.

That’s it for now – I am sure I’ll be blurting about this more in the weeks to come.

 

best regards

Dr. Dan-o

 

 

 

 

 

 

 

The Next Battle: Google’s Play vs. Apple’s iTunes

Hola Todos!

As you know, one of my most recommended Apple blogs is Philip Elmer-DeWitt’s Apple 2.0 blog on CNNmoney.com.  In one of his recent posts, Philip forecasts a new war brewing between Google and Apple of online marketplaces (click here).

It’s a must read but here a few interesting tidbits:

“But there was one announcement that should give Apple pause: The rebranding of the Android Marketplace into Google play. It’s no secret that the Android platform — despite its dominance in terms of smartphones sold — has been struggling to hold its own against Apple’s iTunes. Although Android has nearly caught up to Apple in the sheer number of available apps (650,000 vs. 600,000), in almost every other respect it trails far behind. iTunes users listen to more music, buy more apps, keep them longer, look at more ads, purchase more products and generate far more revenue ($1.9 billion in fiscal Q2 alone).”

Check it out when you get the chance.

Best regards

Dr. Dan-o

 

Daniel M. Ladik, PhD

Associate Professor of Marketing

Stillman School of Business

Seton Hall University

 

 

Google Heats Up the Table Battle: The Real Battle is in the Living Room

Hola Todos!

On Wednesday, Google introduced their new Nexus 7 tablet to the world (click here for an overview).  At 7 inches and a $199 price point, Google did a smart thing by aiming it at the Amazon Fire and not the iPad.  The reviews have been positive (click here) and in my eyes, the most interesting Nexus 7 detail released yesterday is that it will be assembled in the United States (although details were vague on this point).

However, the more interesting product announced yesterday was the Nexus Q: a two-pound magic 8 ball looking device that streams content to your TV and uses the phone as the controller.  At $299, its $200 more than an HD Apple TV box but it sure seems like a battle for the living room is brewing for the end-of-the-year holiday shopping season.

Click here for an interesting video of both the Nexus 7 and the Nexus Q.

Stay tuned…

Best regards

Dr. Dan-o

 

Daniel M. Ladik, PhD

Associate Professor of Marketing

Stillman School of Business

Seton Hall University