Wednesday, May 19, 2010

Hey Google, Anybody Home?

http://www.nytimes.com/2010/01/13/technology/companies/13google.html


Summary

Google is seen as the web's most popular search engine but it doesn't even have proper customer service. Nexus One, the latest touch-screen smartphone, was developed and branded by Google and is sold directly by the company to customers. People who have recently bought this phone tried using Google's mobile operating system, Android, but had a hard time fixing problems with their handset. Google was more accustomed to providing little support for its free services. It has been unprepared to deal with the high service expectations of custmers. Because of this, customer forums have been filled with complains about the Nexus One. Complaints such as being unable to call Google for help and the company warns that it make take up to 48 hours to respond to email messages. Some people haven't even heard from the actual people either. Even though it is the webs most popular search engine, Google does not appear to have built a significant infrastructure to provide customer support. There is no phone number for support, for example and customers who send an e-mail message may wait for days to hear back. Katie Watson, a Google spokeswoman, said no one was available to speak about the service problems. But in an e-mail statement, she said, “Solving customer support issues is extremely important to us.” Andy Rubin, Google vice president, announced last week that the company needed to improve. “We have to get better at customer service,” Mr. Rubin said during an on-stage interview at the Customer Electronics Show. Instead of taking three days to respond to e-mail messages, he said, “We have to close that three-day gap to a couple of hours.” But Mr. Rubin said that the release of the Nexus One had gone smoothly. With the Nexus One, Google aims to extend the reach of its Android operating system for mobile phones. And it hopes to eventually change the retail model of the cellphone market in the United States by becoming a major seller of Android phones made by various manufacturers. But if that is the goal, it will need to impose a better customer support strategy, Mr. Ganguly said.


Connections

The marketing book says that customer service is a form of assistance or a service offered to customers by a retailer in order to maintain existing business or to attract new business. Also, to provide customers with information, offering price, service and quality gurantees. Google fails to meet this customer service expectation. Google does not have a proper form of assistance or a service that is offered to customers. Customers are complaing that Google doesn't even reply to emails and doesn't have a phone number for them to call for techincal help. They are not providing any information for customers that are having problems with their Next One smart-phone. Their service isn't even proper service, customers are struggling with trying to reach Google for help. Customer shouldn't need to struggle, finding help should come easy but Google lacks this. Google states that "solving customer support issues is extremely important to us," but they fail to reach do what they say. Their bad customer service is leading them to customer complaints and bad impressions.

Reflections

I find it silly how google can't do something as simple as giving proper customer service. Isn't the first step in building a business to attract and help customers to their needs? Google, I'm sure has been running for a long time, now that they are expanding their business to something like developing a new phone, they should be more efficient with their policies and customer services. I'm sure Google has enough money to hire people to provide customer service. Reading this article gives me a different impression on Google, I now see them as a company that just wants to attract people and gain more business but not caring about customers after they purchase their merchandise. They care only about how much they sell and not about helping their customers that are having problems with their products. I personally think that in order to have a sucessful business, the first thing you deal with is how you're customers will think of you and how you will help your customers with their needs. If you can't satisfy the customer then in the end you'll just lose that customer. You have to work hard to get what you want, but you also have to remember that even if you got what you worked hard for you should still work hard and keeping it. Google is working hard at getting their customers but they are not working hard at trying to keep their customers satisfied.

Wednesday, December 2, 2009

Bleak Friday

http://www.economist.com/businessfinance/PrinterFriendly.cfm?story_id=14973087


Summary

Every November 27th a traditional shopping day called Black Friday, thousands of Amercians head out to stores early in the morning just to be the first to lay their hands on heavily discounted merchandise. Amercians take this very seriously, last year a Wal-Mart emplyee was trampled to death. It is a time of the year when retailers profit the most for the year. It also is a time that marks the start of many retailers attemps to regain businesses. E-tailers was very popular in 2008, online sales grew by 13% where as retail sales only grew by 1%. Amazon's sales rose to around $5.5 billion in only the third quater of the year, which is 30% more then last year. The reason is because online shopping enables people to compare prices across retailers quickly and easily. Buys are also able to avoid local sales taxes and shipping is often free. Also many online retailers has provided a range of items available. Amazon has started sellin groceries. This is a big concern to retail store because their prices are often higher than those of e-tailers. Online sales rise 9% in the 9 months to the end of October while sales in stores fell by 19%. People need to be more aware of this, thats why popular Amercian department store Macy's came up with the idea of every dollar a consumer spends oline with Macy's leads to $5.70 in spending at a Macy's store within ten days. Now lots of online retailars offer options that lead people to outlet stores. Now that retailers are aware, they're trying to make shopping seem more fun and exciting, stores are trying to lure customers by offtering services that are no available online.


Connections

Online retail is a nonstore retailer but in the book online retail is not mentioned because it wasn't created when the book was published. E-tailers is a nonstore retailer thats operations offer goods or services for a sale without line-ups or restricted store hours. Online retailers are available 24/7 and allows consumers to purchase merchandise without needing to leaving their house. Online retailers that were mentioned in the artible include: Amazon, P&G and eBay. During Black Friday more stores are under the catagory of general stores. They are stores that carries single brands of a wide variety of necessities, from grocery and clothing items to handware, tools and building materials. General stores that were mentioned in the article include: Apple, Wal Disney Company, Lululemon athletica and Best Buy.


Reflection

Wow, I never realised how much a day like Black Friday could affect so many different areas in the retail industry. I never though that it could affect online retailers and how online retailers affect retail stores. I think it is a good idea for retail stores to start luring customers by offering services that are not available online. Especially since many teens can't buy merchandise online, now they get more then just what's seen online. Idea's "pop-up" stores is a very interesting idea, te idea of a store that appears for a short time and then vanishes. Another cool idea is the one Lululemon athletica has offering free yoga classes. Thats a good deal to many yoga lovers out there. This articles makes me want to buy a lot of things just to get those free offerings that come with it. Their idea to bring people back to its shops regularly, increasing the likelihood that they will develop the habit of shopping there is a very clever idea. Not only is it a benefit to retailers, also a benefit for consumers.

Tuesday, November 3, 2009

'Shockvertising' spreads to cut through media clutter

http://www.nationalpost.com/news/story.html?id=2143696

Summary

This article is based on how 'shockvertising' has become a new way of advertising for marketers. Although this is a benefit to martkets only, this reflects negatively on comsumers. Toyota's idea of using stalking as a way for advertisement lead to a new $10-million lawsuit accusing them of "terror marketing." Because of Toyota, a woman was led to beleive she was being stalked; she recieved emails, videos, and was litterly being stalked by a person in a Toyota car. Though as horrible as shockvertising may seem, Lindsay Meredith, a marketing professor at Simon Fraser University says, " If i thow you a really annoying ad, studies shouw you may remember my product but forget why you remember it." In other words, shockervertising is a good way of advertising and to get peoples attention. Shockvertising is different and is a significant way to get noticed by consumers and to be unique, even if it annoys people. Our society has become more complex and harder to grab attention from, that's why marketers have to be cutting edge and use the method of terror marketing to get noticed. This article states some unforgettable examples of shockvertising like Boost Mobile for instance, has been running ads both online and on T.V. of pigs eating on of their own to show how "enjoying the flavours of a fallen friend." Not only that, but videos for clotheir Diesel showed a woman breatfeeding a puppt made of rotting beef. Even vice-president of development for SDI Marketing says, " We didn't want another lame-ass pasta sauce commercial that zooms in on green peppers while a guy with a gravelly voice talks about fresh ingredients." This is being said because Aylmber past sauce is advertising videos of an angry chief that breaks into peoples homes and pops out where they least expect it. Shockvertising is slowly becoming a popular way of advertising and will soon be spread everywhere.



Connections

Shockvertising are are examples of niche marketing, free market system and demographics. This method of advertising is exactly what niche marketing is; it's only appealing to certian people and to the target market. Although this also connects to people who are agianst it. Free marketing system is also used, marketers are able to do whatever they desire as long as it doesn't hurt anyone; also known as freedom. Lastly, demographics is also connected to shockvertising. It is a way to catagorize a group of people. Marketers need to keep a good demographic profile in order to attract target consumers. At the same time many people can be offended because the message implied is offensive to certian people. Like Toyota's way of advertising for instance, stalking has no good and is a bad method of marketing period.



Reflection

It's hard to explain but I don't entirely feel that shockvertising is a bad but at the same time I do. It is a good way to get noticed by consumers and to be unique. It's true that the strangest ads are the most memorable, that's a plus side to shockertising. At the same time it can be quiet annoying and disturbing. I think it would be better if marketers would think of more suitable ads apposed to something weird like rotting beef. I’m sure they can come up with ads that are neutral and don’t offend people or make them feel awkward after viewing their campaigns. Hopefully marketers come up with better ways of being “unique” so there’d be less terror marketing spreading around.

Wednesday, September 23, 2009

Holiday Spending Predicted Flat with Last Year

http://chainstoreage.com/story.aspx?id=116297&menuid=439


Summary

The article is about the prediction for retailers of this years sales and how it's remaining inactive compared to last year. Deloitte's Retail group predicts that this years holiday sales will improve a total of $810 billion compared to last holiday's decrease of 2.4%. Although the economy is slowly improving and getting back on it's feet, the chief economist with Deloitte Research, Carl Steidtamm says, "...many consumers remain burdened by restricted credit availability, high unemployment and foreclosures." Retailers are striving to attract new consumers with targeted advertisements and campaign effectiveness. Deliotte states that retailers are targeted on consumers who are embracing the digital age.
This article suggests that the economy has been on a roller coaster ride since 1967 and that this year the ride is taking the economy upward.


Connections

A section of the chapter is based on Channels of Distribution (refers to the routes that goods travel from producer to the consumer) which teaches the different ways goods are distributed from one place to another. The text states the four basic channels of distribution for consumer goods. In this case, it could lead to all of these channels. The economic crisis leads to less consumers because of restricted credit card availabilities and unemployment. Which then leads to retailers ordering less goods or merchandise from wholesalers. This then causes wholesalers to stop requesting products from producers. This would all contribute to the problem with the economy slowing down and decreasing holiday sales year after year.


Reflection

I've actually learned a lot from this article. I always knew that there were some problems going on with the economy and the business industry but I never thought about how much it affected people and businesses. Retailers do a lot to attract people into buying their goods and I never really realized how much consumers mean to them. Consumers are the most important people in the channels of distribution, without consumers the economy would be nothing! I really wonder how the economy will be like in two years, either decreased by a whole 10% or perhaps improvement and higher sale rates. I also didn't know the economy in America has higher sale rates then Canada and it's still improving.