Advertising-less Advertising

Recently I had read a blog post by my fellow classmate Shawn Davis about the "advertisement" of marijuana. Shawn pointed out a very interesting fact "it literally markets itself: no ads on buses, skytrains, TVs, magazines, and for the most part even the internet" and at that point, I realized that there are so many more businesses which do not advertise at all, but still comes back with incredible amount of revenue.

Take facebook for an example, one of the most unbelievable story of the past decade. I think we can all recall how we first became the "addicts" that we are. We did not get talked into by some random sales person, nor did we see any direct TV commercials. Chances are we first stepped into the world of endless-hours-of-being-on-facebook after hearing our friends talking about it. This is the power of "customer loyalty", and it's one of the most effective ways of spreading popularity.

We trust our friends and family more than anything. Hours of persuasion by a stranger could not compare to a 5 minute chat with a friend. We believe that these people that we trust always have our best interests in mind, and that they do not try to get anything out of us. 

That's what's so great about "customer loyalty".  It's relatively cheap compare to other methods of promotion, and it's far more effective. But of course, to have a solid foundation of "fans", a venture must have some sort of competitive advantage over others, and always treat their customers with respect and care.




(picture source: http://xprojectmanagement.com/wp-content/uploads/2010/09/customer-loyalty_retention.jpg)

Let Out the Kid in You

When was the last time you reminisced about your childhood, about your favorite cartoon or favorite toy, or even favorite vacation? And I bet chances are that your favorite memories are somewhat Disney related. Yes Walt Disney Company, the endless Disney Movies, Disney Land, Disney World, Disney Princesses… You know what I’m talking about.

Today Disney is a multi-billion franchise that has grown its roots into every corner of the world, and has captured the hearts of millions of children. It’s every kid’s dream to visit one of the 11 Disney theme parks, and even the dream of many adults as well. So how did this happen? The undisputable international recognition and adore? I say cheers to the fantastic marketing strategies.

Disney has successfully positioned itself as a family-friendly brand over the past decades, but did you know that it’s also mother company for TV channels like the ESPN or the Marvel Studios? ESPN is one of the largest sports related broadcasters in America and Marvel Studio has produced many blockbusters such as the X-Men series and the Blade series. The point I’m trying to make here is that Disney has separated its market by the different target groups to prevent the name “Disney” from being “polluted”. Disney wouldn’t be the same innocent, magical and fairy tale like brand if the movie Blade was closely associated with Disney at times of promotion.

Any company needs to be able to figure out its place in the market, and only that way, the characteristics of that company will not conflict with each other. In fact Disney is only one of the many examples that use this strategy to broaden their consumer base without cannibalizing itself. When we think about Toyota, we think economic and practicality, but another brand under this motor manufacturer is Lexus; it’s operated by the same company however its message is completely different, suddenly it represents luxury, comfort and prestige. In many industries, almost all, it’s very difficult to target all the potential consumers and that’s why it’s extremely important to state the standing ground and enforce that image.http://www.scrapdazzle.net/images/logos/DisneyMemories.jpg