Category Archives: Business

Business, Marketing

Instagram And Pinterest Will Change How We Shop

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Remember the days when you’d get a catalog in the mail, or you subscribed to a store and received online catalogs which influenced your buying decisions? With the existence of social media, and platforms such as Instagram and Pinterest, that’s all beginning to change. Pinterest, more than Instagram, has become the social media outlet where 32% of users plan to go buy what they pinned, while 30% said they’d take the next step in the buying process and purchase what they viewed on an online store, according to a recent study done by Millward Brown Digital. We’re slowly beginning to see changes in buying habits and behaviors, and it all starts with visualization.

Why are Instagram and Pinterest so compelling from a consumer’s standpoint? For industries such as home improvement, home decor, and clothing, visualization has become key to online marketing success. People who need new bath or kitchen fixtures no longer have to look through a catalog and find what looks good. On Pinterest, people can now see what those products look like in a bath or kitchen setting. They can visualize and see themselves in that room instead of being given a photo of the product with a white backdrop.

As the old saying goes, “A picture is worth a thousand words” and it can’t be more true for marketers and businesses on social media in 2015. The reason why Instagram is successful is because of the editing and filters done by users to make pictures really stand out. Not only are they great to look at, but they’re beginning to influence consumers in multiple industries. You’ve probably seen Millennials on Twitter sharing photos of cars, houses, and pictures of happy couples with the caption, “Life goals”. When did this all come about? Nice cars, houses with luxury interiors, and happy couples could always be found on television, in a magazine, or through a search engine. Why now has every 20-35 year old become enamored with pictures displaying luxury and happiness?

Pinterest, Instagram, and to an extent Youtube is where this craze for virtual visualization has come from. Similar to the days of the first movie with sound or first television that brought color to screens, people want more. Back in the early to mid 20th century people wanted sound and color to help make movies and television shows more appealing and easier to watch. Today Instagram and Pinterest have given consumers pictures with real life settings where they can see themselves owning that car, living in that house, or being happy with their significant other. That’s why Pinterest is seeing a combined 62% of users making buying decisions online, or being influenced to buy a product in the store. Those pictures are almost a trial version for consumers, where they can see what looks good in their house and if it’s worth purchasing to make their homes look the same as the one in the picture.

With all this being said, Pinterest and Instagram are opening the door for virtual reality and point of view videos. Instead of seeing someone in front a camera reviewing a product, first person videos is where the imagination of consumers goes one step further. If you’re interested in buying a car, you can find multiple car reviews on Youtube, with similar presenters all saying the exact same thing, with the same camera angles, and none of them can find a way to be different in any way.

However, Winding Road Magazine offers viewers point of view videos with a first person look behind the wheel. The sound systems they use make it possible for people to hear exactly what the driver is. Since the cameraman doesn’t say a word, viewers can put themselves in his shoes and imagine themselves in that car. With over 150,000 subscribers and over 50,000,000 views, Winding Road Magazine is well ahead of the curve when it comes to the next era of technology and social media marketing.

Visualization is becoming a major factor in buying decisions. If you’re posting pictures of your products with white backdrops, your content may not be as effective as the company who is using photos of their product in a real life setting, such as a living room or kitchen. Virtual reality will be made possible thanks to GoPro cameras and technology coming out next decade. More importantly though, right now in 2015, you must use Pinterest and Instagram to your advantage and give your customers exactly what they want; a visualization of your products.

Business, Economy, Marketing

Social Media: Killing Friendships, Or Building Stronger Bonds?

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You’ve probably seen videos or graphics showing the breakdown of socialization due to everyone looking at their smartphones constantly, or spending far too much time on social media. People crying out and spreading the word that social media, despite containing the word social, has destroyed interaction with our friends, families, and others around us. The campaigns that are out there to encourage Internet users to turn off their phones, shutdown their laptops, and other devices that connect us to the virtual world, are out there, but so often not listened to and falling on deaf ears. Little do these activists, if you can call them that, know that they’re the ones being left behind with a 20th century mindset in a 21st century world.

Taking a quick look back 15-20 years ago, kids used to be on the playgrounds, playing basketball at the park, or catch with a small group of friends. They’d have face-to-face conversations with each other, and if they were home, they’d call their friends on the home phone and schedule a get-together. Those were the days right? Maybe not so much.

In today’s world, what is going on? Kids are still playing basketball, baseball, and other sports, but not on their own, they’re usually part of a league (AAU, Little League, Pop Warner). Their friendships arise by playing on the field or court together, not because they live in the same neighborhood. When they’re home, they’re texting, Skyping, and FaceTiming each other constantly. But what about the kids, or even adults who didn’t join an official group that their parents or themselves signed up for, how are they still maintaining and growing friendships? Social media.

Car enthusiasts are joining Facebook groups, commenting on car magazine statuses, posting videos on Youtube that are reaching like-minded individuals, and sharing photos on Instagram that attract others who have the same interest. Through these resources, car meets such as Cars and Coffee have been created to bring an entire community of car enthusiasts together, and these car owners from all over the region likely had an online friendship prior to meeting face-to-face.

Their bond has been created by a common interest. This group is made up of people who probably don’t get along with others in their neighborhood, or go to school with a class that has no interest in cars. Instead of being left out, this group can meet on the weekends, chat on social media, and text each other. Friendships are no longer decided by geography or what school or neighborhood you live in. These people could live 50 miles away from each other, but will meet in the middle on weekends because of that friendship and mutual interest in cars.

Relationships are another aspect that people believe social media is getting in the way of, but is it really? Take a look at your friends and the relationships they are in with their significant other. They appear to have the exact same interests, doing activities together as if they were best fiends. Social media and their smartphones aren’t getting in the way of their relationship, and if they are, then are those two compatible? If not, that’s when the Internet and smartphones begin to dominate.

What we are seeing is the death of the traditional friendship, but the creation of a brother and sisterhood. Celtics fans are getting to know each other on Twitter, after a while of chatting on social media, they’re now meeting up before, during, and after games, and sharing that common fan-hood, creating a fan base that’s much closer than in previous generations. Instead of 18,000 Celtics fans who’ve never met before going to a game, there are now cliques and groups in each section who do in fact know each other. The fan experience has now become a bond and friendship, and not a collection of Bostonians watching their favorite team in the TD Garden.

The people and Facebook users who are complaining about the end of face-to-face interactions and loss of friendships, are now the victims of being last in their social network to realize where we’re heading as a society and how we interact with each other. People desire a friendship that shares mutual interest on a number of levels. Just because you go to the same school, work in the same office, or live in the same neighborhood, doesn’t mean you’re that great of friends. There needs to be more in common than that, and car enthusiasts, Celtics fans, and any other large group of hobbyists have seen that, and they’re joining other lilk-minded people.

As I said before, the only ones complaining about the “over-usage” of social media and smartphones are the last people to know and interact with people who share their same interest. In reality this isn’t anything new to mankind. All this really is are fraternity/sorority, after school programs, and sports leagues on a much grander scale that are being established via social media. Stronger bonds are being created, while the last remaining link is all alone waiting to assimilate with a group of friends who share the same passion towards a hobby.

Business, Economy, Marketing

How Much Different Is SMM From Old School Marketing?

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As with any innovation, we are often struck with amazement as to how we went so long doing daily tasks the conventional way, when there was a better solution that offered just as much, if not more valuable in less time. Social media marketing is one of those innovations that business owners look at as the game changer, the revolutionizing method of marketing on a small or grand scale. But is SMM all that much different than old school marketing, which has dominated the advertising agency for the better part of 50 years?

When Steve Jobs created the iPod, everyone thought it would revolutionize how we listen to music, and it has. However, the groundwork was already put in place with the invention of the Walkman. Jobs innovated and improved an existing concept, and by combining that with modern technology, we’re able to access our music libraries on our phones, iPad’s and laptops. Almost every song ever written is now available, and can be bought with just a click of a button, instead of buying individual cd’s or records and frantically searching for the album. Marketing and advertising have seen the same innovation, but instead of one man changing how we communicate and reach out to customers, a group of innovators have created the world of marketing as we see it today.

Advertising in the 20th century was mainly television commercials and radio and newspaper ads. It was pretty straightforward as companies could reach consumers on a massive scale by using a variety of methods to get their messages across. Today the focus is on social media, and instead of giant corporations dominating the advertising scene, small and medium sized businesses can have just as much success as their larger counterparts.

While television, radio, and newspapers are still used today, the innovation Steve Jobs had on the music industry, is the equivalent to what Mark Zuckerberg, Kevin Systrom, and the founders of Youtube and Twitter have done to business and marketing.

One could argue that Youtube, to some degree, has taken a bite out of television advertising. The same ads we see on television are now being seen on Youtube before videos. Combine that with Facebook through sharing links, and you not only have a platform that shares videos that are in essence ads, but a micro blog that allows business owners and marketers to share important news, information, and links to persuade consumers to buy into their products. Facebook can be seen as a mini newspaper because of the ability to post short tidbits of information, while also having the capability to purchase ads to specifically target consumers who would get the most value out of what the company is selling.

Instagram and Pinterest can be used as online catalogs, zoning in on one specific product at a time. Instead of mailing out printed catalogs to a number of recipients, pictures being posted to these two platforms can capture the attention and interest of specific viewers, and with Pinterest, a link can be provided which leads the consumer right to the online store.

Podcasts can be used similar to radio. The major difference here is that companies can choose which podcasts to advertise in, leading to a higher rate of conversion. If there’s a car discussion podcast, a local or regional auto parts store or supplier could advertise, which would have more of an impact on the listeners than if that same company decided to place an ad on the radio, despite the larger listening audience. Of course, podcasting is already niche oriented to begin with, and that plays a factor into how companies use that platform to reach consumers.

Twitter is the virtual billboard. The people who are scrolling down their Twitter feed are similar to the drivers who are passing by signs on a highway. Each tweet is a quick blurb with 180 characters and a picture to go along with the message. The most important factor for companies is how to get those users to click and go to their profiles, and that comes with eye catching photos and short phrases

Social media marketing isn’t exactly a new concept, but it does however offer platforms for companies to specifically target the right consumer. Instead of 30 second television commercials, radio ads, and newspaper articles, businesses of all sizes not only can capture a consumers attention with a strong social media marketing plan, but retain them and add to the community of consumers that Facebook, Twitter, Instagram/Pinterest, and Youtube can provide. Old school marketing captures attention on a grand scale and creates short-term recognition. While SMM, if done right, captures and holds onto the consumer, if those future customers see long term value.

Business, Economy

Amazon and eBay Hasn’t Killed Retail Off Like It Was Supposed To. Why?

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If someone told you back in 2000 that Amazon, eBay, and online stores won’t kill of retail and brick and mortar stores would you believe them? A click of a button from your couch and the comforts of your own home has had absolutely no affect on consumer behavior, leaving many baffled, especially since we’re in the age of convenience and are part of a “lazy” generation. The irony here is that convenience isn’t ordering online, but actually driving to the mall or store, and buying the product immediately.

Impatience and the desire to want something at that very moment is what’s keeping brick and mortar stores alive. Why wait a day or two when you could have it right now? What’s absolutely shocking is that consumers are willing to spend more money by going out and buying what they want, as opposed to ordering the same item online for much less. In what’s considered to be the age of technology, people still shop as if it’s the 20th century, and there are a few factors behind that. Teenagers who have grown up in the age of the Internet and smart phones, shop similarly to seniors and the elderly.

What it all comes down to is the experience that brick and mortar stores can offer, the ability to touch and feel the product they want to buy, and consumers having an excuse to get out of their houses. Forbes wrote an article last year on the study done on what the percentage of consumers were who preferred buying products via brick and mortar. 90% said they’d rather go to the sore or mall than shop online. The consumers who don’t make their final purchasing decision in the store, window shop, and then click the buy button online after they’ve already seen what they want in person.

This could explain why we haven’t seen the complete demise of bookstores such as Barnes & Noble, or even local public libraries. With Starbucks inside every Barnes & Noble store, people can go read their new book, surf on the Internet, and grab a cup of coffee. It’s an experience that only a brick and mortar store can offer, and it’s incredible that people would rather go out than do the same exact thing at home.

People are social beings, and even if they don’t interact with their fellow consumers while they’re out, being around others and living life outside the four walls of their living room is what they desire. This is why many predictors can speculate consumer behavior and how they’ll react to new technology that will make their lives easier, but if it means that it will change their lives completely, they won’t adapt to that as quickly. The same could be said for autonomous cars and all the hype surrounding them, but it might be safe to say that consumers desire their freedom to shop or drive whenever they feel like it.

We may be living in an age that offers convenience and the ability to stay home 24/7, but technology hasn’t fully taken over our lives to the point that we’re willing to buy products online and never leave our couches. Amazon and eBay are great when you’re lazy or you can wait the extra day or two for the item. But so far, all the speculations and predictions have been wrong, and malls and stores are still thriving today.

Business

Being a Team and Knowing Your Roles Are the Keys to Success

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Growing up we often heard the saying, “There is no “I” in the word team”. Out of all the lessons that can be learned through sports, teamwork is the most important. Without a cohesive unit, whether that be in sports, on the battlefield, or in the office, you cannot succeed. Teamwork also goes hand-in-hand with knowing your roles and using those strengths to benefit the team as a whole. Of course, this starts with leadership and the ability to manage the team so they can do their jobs to the best of their abilities. Often, individuals want all the glory and notoriety, but if they were willing to be part of the team, that individual would see more success than trying to take on the world on his own.

Being from Boston and a die-hard Celtics fan, teamwork and playing for each other is the successful ingredient for the best franchise in the NBA. The reason why this organization experienced success for three decades is because of the players who were willing to sacrifice their individual goals for team oriented goals. Dozens of former Celtics are now in the Hall of Fame due to their greatness and achievements, but without having the team-first mentality, these players wouldn’t have accomplished as much as they did had they decided to just pursue glory for themselves.

Coach Brad Stevens, whose coaching philosophies can easily be translated to the business world and any real life situation, teaches the importance of knowing your roles and doing your job to perfection. When you look at the roster, none of them are All-Stars, superstars, or would have been considered go-to guys throughout the game. They’re all role players, but without having a team mentality, they wouldn’t be in the playoffs and watching their hard work being paid off. Everybody knows their job and never plays outside that role. They’ve bought into a system, a system that allows each individual player to play at their very best.

This group of players are just hard workers who every night give it their best, but it’s because they’re playing for each other and not themselves. This is what teamwork is. In an office setting, not allowing an employee to work at their best, or giving them undefined roles within the company is how they fail to succeed and thrive. Sales, marketing, finance, HR, and accounting should be considered as a team. No one is more important than the other, and with that mentality your employees will work with confidence and a positive attitude, because they know they offer value to the company as a whole.

That’s a team. Businesses shouldn’t segregate divisions and departments and put them in a pyramid chart. Your company is an organization, a group of employees who come to work everyday to benefit the company as a whole. The lack of teamwork, camaraderie, and a sense of belonging is why employees don’t care about their jobs, and just work for the paycheck. By putting these people in the right position to succeed, and creating a teamwork environment is how your employees will come to work because they want to, not because they have to.

Sports can teach us a lot. Why are their 16 playoff teams and 14 lottery draft competitors? Because 16 organizations know the value of teamwork and putting players in a position to succeed. The bottom seeded teams aren’t “lucky” to get in to the postseason, they deserve to be there.

The Celtics aren’t the most talented group of players, but by putting the team first and going to war every night with their brothers in arms, they feel invincible and show no fear. Great managers and coaches can unleash the best in their team members, and the ones that don’t are on a golf course for the offseason, or have disgruntled employees who don’t care about the company and are contacting head hunters to find other job openings. Create a positive team culture, and rest assured, you won’t be losing your best employees.

Business, Economy, Marketing

BBC and Top Gear: A Business Lesson Can Be Learned From This

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It’s safe to say that if you’re a Top Gear fan, you’re feeling depressed like many other car enthusiasts. With Jeremy Clarkson’s firing, James May and Richard Hammond have already made it clear that it’s all three of them doing the show or there is no Top Gear at all. The BBC and Clarkson have had an interesting history over the past few years, with the BBC threatening to fire Clarkson should another controversial story come about, and now that prophecy has come to fruition. However, is this really the end of Top Gear or just the beginning of something even better?

Top Gear rakes in $74 million for the BBC annually, and this show has become a worldwide sensation, drawing in fans from around the world. Needless to say they’re lucrative, and in business, making money is the name of the game. While the BBC might be willing to cut ties and take a gamble on possibly losing millions of weekly viewers, other TV networks are willing to take their own risk and try enticing Jeremy Clarkson and the rest of Top Gear’s crew to join their TV lineup. Who wouldn’t want to see $74 million in annual revenue? That’s why this isn’t the end of the greatest show on earth, but in terms of the name, Top Gear as a TV show might no longer exist.

TV shows that make this much money don’t just disappear. If money can be made, there’s always a way to mend fences, or build new ones with some other TV network. For Jeremy Clarkson, he’s holding all the cards. Not only has Netflix shown interest in the outspoken presenter, but Sky News and ITV are rumored to be positioning themselves to bring the entire cast and show to their network. If Clarkson decides to go in a different direction and go independent, he’s already got the connections to make it happen, and it wouldn’t shock anyone that Richard Hammond and James May would not be too far behind in joining their brother in arms.

What BBC has done is nothing short of being the worst business decision in the history of the entertainment industry. Not only are they in jeopardy of losing $74 million per year, but they gave the most powerful presenter on television the opportunity to make more money if he decides to make his own TV show, whether that be with help from Netflix, other networks, or business investors.

It’s safe to say that Top Gear is one of the most influential car shows on the planet, possibly creating millions of dollars for car companies that not only sell in Europe, but also in the United States. Having Jeremy Clarkson going his own way, he can choose to have production done in the United States where distribution, annual revenue, bigger networks, and larger audiences reside. What could be a Top Gear fan’s biggest nightmare, might just be their biggest pipe dream come true. There’s the potential for Top Gear to come back better than ever should all three presenters leave the BBC.

Jeremy Clarkson isn’t stupid, and in fact has connections in very high places to make creating his own show a reality. James May and Richard Hammond are without a doubt going to join Clarkson on his next endeavor, and for all three of them they have an opportunity to make more money than if they did under the guidance of BBC.

Bigger profits are the possibility here. Who’s to stop a guy such as Jay Leno from acquiring these three to create an epic TV show in the United States? The doors are now open for all possibilities, and we can thank the BBC.

The lesson than can be learned here is that when you have a product that’s making you money, you do whatever is in your power to make sure that you don’t lose it. Clearly the BBC doesn’t value Top Gear like so many around the world, and they’re going to regret it when Jeremy Clarkson, James May, and Richard Hammond make someone else extremely rich, and see their own fame rise higher than it was under the BBC.

Business, Economy, Marketing

Make Sure To Compare Apples to Apples When Discussing Sales

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Sales figures always appear to be written in black and white, either sales are good or bad. But when it comes to comparing two completely different markets, and trying to find a correlation between both sales figures, that’s where they become very misleading. Whether it’s in the business world or the journalists who report it, sales figures must be reviewed carefully, or the one who comes up with inaccurate findings looks like a fool. It’s important to take into consideration the markets in which your company or the company you’re writing about or reviewing, is in line with other companies or your business report will be flawed.

In the auto industry, journalists like to stir the pot a bit by posting misleading headlines that turn heads, but with further review, make the writer behind them look silly. This past February the Mitsubishi Mirage outsold the Volkswagen GTI. It seems to be a surprise considering the popularity of the GTI’s within the car enthusiast community, but base price for both cars proves to be the reason for the Mirage’s ‘improbable’ outselling of the popular hatchback.

The Mitsubishi Mirage starts at $13,000, while the Volkswagen GTI starts at $25,000. The $12,000 difference is one reason for more sales for Mitsubishi, but both these cars aren’t even in the same class. Also by doing some research of my own, the Mirage didn’t run away with overall sales as the GTI was only 84 cars behind. In one article, the writer posted a graph of which vehicles the little economical car outsold, but every other car on the list was either $12,000 – $40,000 more than the Mirage, making the sales figures not that outstanding. If a Lexus GS, with a starting price of $48,000, almost outsold a $13,000 car, that’s not good news for Mitsubishi.

Sales figures can be misleading if there isn’t further research. Also when it comes to business, you can’t compare apples to oranges, and that’s what a Mirage is to a GTI, they’re not the same or even in the same market. Because Volkswagen considered the GTI to be a different model than the Golf, sales figures are somewhat distorted since as the Golf, which is closer in price to the Mirage, sold 2,000 more cars than the Mirage.

Always do research and make sure both businesses and products are in the same market. What appeared to be a disappointing month for the GTI, was in fact on par with the previous 6 months of sales.