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.

Blogging, Economy

You Have $15,000 In Cash, Do You Buy Or Lease A Car?

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Some of you may know that I’m the creator of BostonAutoBlog.com, and if you’ve followed me for a while you also know that marketing, social media marketing, and business are topics that I discuss quite a bit on my own personal blog. I’m going to combine both of my interests into one article, asking a financial question that I don’t want a quick answer to in return, but rather the most logical solution to a problem many consumers who are in the market for a car face everyday. If you have $15,000 in cash, do you buy or lease a car? Actually, I’m going to make it more interesting. If you have $10,000 in cash would you buy or lease a car?

Having scanned through forums and Reddit, there are many young, and even older consumers, who ask the same question, usually with the same amount of money in hand asking for car buying advice. Now, if your commute to work and weekend trips make your annual mileage higher than 12,000 a year, then buying is the better option. But what about those who are driving around 8,000 – 10,000 miles a year. Would you still be so hasty to buy instead of lease?

Most people feel that leasing costs you more in the long run. But does it really? True, your car payments could be higher per month, but because it’s a new car, you won’t have to factor in major maintenance costs. At $10,000 – $15,000, you’re not going to end up with what you want. Certified pre-owned, you’re looking at the Honda Civic, Hyundai Elantra, or Toyota Corolla to name a few. Used can be a case of trick or treat. There’s always diamonds in the rough, but more often than not, you’ll end up with someone else’s problem. Mechanical failure is likely, factoring into the overall cost of the car, while it’s aging, and every year the resale value is slowly tanking. You either wind up with a money pit, or a decent car that will last you a few years before maintenance issues could arise.

Now let’s look to leasing. You have $10,000 – $15,000 in hand and you’re visiting local dealership websites comparing lease offers and deciding which one works best for you. You stumble upon a great deal. Your local Ford dealership down the street has a lease offer for a new Ford Escape SE; $4,173 due at signing, $159 a month for 24 months. If my math is correct, for those 2 years it will cost you a grand total of $7,989, not including oil changes and annual maintenance. You’re saving $2,000 in the long run, which will be two grand more saved up for your next lease. If you buy a $10,000 car, you’re looking at a world of unknowns.

So the choice. A new Ford Escape SE or an 8 year old car with 50,000+ miles on it. $8,000 overall in 24 months, or $10,000, plus maintenance that will inevitably happen sometime during your ownership of the car.

Another example; this time you have $15,000. Now I’m sure you can find some sweetheart deal for a 6+ year old Infiniti G35 or G37 or an older BMW 3 Series, but again let’s factor in unforeseen maintenance. But you decide, “I’ll lease instead because I want to drive a new car”. Here are the potential options you have. Let me just say this is all predicated on what the dealerships in your area are offering. Here’s a few from my neck of the woods.

Audi A3: $2,694 downpayment, $299 a month for 36 months = $13,458

BMW X1: $4,000 downpayment, $239 a month for 36 months = $12,604

BMW 320i X-Drive: 4,000 downpayment, $239 a month for 36 months = $12,604 (Same offer as the X1)

Infiniti Q40: $1,499 downpayment, $229 a month for 39 months = $10,430

Lexus IS 250: $1,599 downpayment, 349 a month for 36 months = $14,163

These are just some of the deals that are out there. They all cost under $15,000 within the three year window you have the car. Most come with leather seats, heated seats, bluetooth, navigation, and electric sunroof. So think about it for a minute. You can have a luxury car for the same price, or less than if you bought a certified pre-owned Honda Civic. There are even better offers out there if you don’t want to spend $15,000.

After seeing this, would you still buy or would you lease?

Business, Economy, Marketing

Car Dealerships: Don’t Be Afraid To Use Social Media

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The name of the game is to sell cars, and what better way to do that than having an effective social media marketing strategy? Every other industry has hopped on board, and now it’s time for the auto industry to do the same. But what is really stopping dealerships across the country from branding and marketing their businesses to appeal to customers within their region? Unlike with TV ads, Facebook ads can target specific potential car buyers that live within walking and short driving distance of the dealerships that are advertising. So what’s the hold up?

First off, I’m just going to be straightforward. The social media accounts most dealerships operate are downright boring. You’re a business, not a virtual newspaper selling coupons every 3-6 months. Stop hard selling as if this is the 1950’s. One reason there is very little engagement with most dealerships’ social media pages is due to lack of trust. But more importantly, the content these accounts post aren’t worth reading or responding to. Instead of posting already used content by other dealerships that are selling the same brand, post unique content that shows off your showroom, best cars in your inventory, and interesting news or services that you provide.

Create a blog and share your content on your social media accounts. Tell possible car buyers why they should buy from you, why they should have their car serviced at your dealership, and explain the parts you use in the maintenance department to build trust and persuade car owners to come to you. Only posting when you have a sale or service special falls on deaf ears because you haven’t created good enough content that keeps people coming to your Facebook or Twitter page. They will inevitably glance or skip right over your post because 90% of your content is hard selling.

Post photos on Instagram. Herb Chambers BMW of Sudbury consistently posts pictures of BMW’s that are in their showroom. What 20, 30, or 40 year old doesn’t like a BMW M3, i8, or 435i Gran Coupe? You’re missing out by not posting on Instagram. The companies who are utilizing all social media platforms are increasing sales, but it’s their patience and determination that’s keeping them relevant because they’re posting good content that people want to see.

By being on social media, you’re in essence becoming an influencer. In studies, 27% of consumers are influenced by the cars they see on Facebook, Twitter, and Instagram. Because the pictures contain the car on the road, in the city, or in the woods, consumers can visualize themselves driving that car, or taking that same photo on their vacation. You’re giving social media users eye candy that they just might indulge in.

This doesn’t just apply to car dealerships, but businesses in every industry. You have to capture the reader’s attention by posting articles that are worth reading, post photos worth liking and sharing, and posting quality content that will show up on people’s timelines. By not using social media, you’re feeding the perception consumers have of your business or industry as a whole. You can change that by showing who you are, what products you sell (in this case cars), and why consumers should walk into your doors and not the competition down the street.

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