Marketing 2.0

Facebook Ads Make You the Star -- And You May Not Know It | Epicenter from Wired.com

More controversy about ads on Facebook. This is a good article from Wired that details some of the legal concerns over Facebook's latest strategy.
Link: Facebook Ads Make You the Star -- And You May Not Know It | Epicenter from Wired.com.

Strike in Second Life

More evidence that real and virtual worlds are converging - IBM workers conducted a strike in Second Life. This article from the Globe and Mail details the use of social networking for labor activism.
Link: globeandmail.com: STRIKE!* (*banana suit optional).

Macworld: News: AOL to lay off 20 percent of staff

The death spiral at AOL continues. Interesting that the company at the forefront of the Internet revolution is now struggling to become relevant again.
Link: Macworld: News: AOL to lay off 20 percent of staff.

'If Brands Are Built Over Years, Why Are They Managed Over Quarters?' - Knowledge@Wharton

Here's a summary of new research from Len Lodish and Carl Mela on the impact of short-term discounting on brand equity. Their work indicates that brand managers are focused on short-term results and are using quick fixes such as trade promotions and price cuts to boost sales. As a result, consumers have become much more price sensitive and less likely to choose based on name brand preference. The authors provide metrics to measure the true, long-term success of brands.

Link: 'If Brands Are Built Over Years, Why Are They Managed Over Quarters?' - Knowledge@Wharton.

Second Life in the Classroom

Interesting article in the Ithaca Journal about a new course at Cornell that deals with the business being conducted within Second Life. While $1.5 million in transactions take place everyday, there's no regulation similar to the "real" world. Professor Bloomfield refers to it as the "financial wild west."
Link: The Ithaca Journal - www.theithacajournal.com - Ithaca, NY.

A Mansion in Second Life

How much would you pay for a home in Second Life? How about $3.1 million? Coldwell Banker has created a virtual model of one of its premier listings and so far it has attracted several thousand visitors. Whether the SL demographic is consistent with luxury home buyers, well I do wonder about that. What's interesting here is the use of virtual worlds and new media to supplement a very traditional sales process. When the technology advances a bit you can imaging walking into Coldwell's virtual listing world and walking through many houses to find the right choice.

Link: Real $3.1 home causes a stir in virtual world, Second Life - Aug. 9, 2007.

Speaking as a Performing Art

Here's an interesting post on Guy Kawasaki's blog. The author is Doug Lawrence and he presents 15 tips on giving effective presentations. I learned something new here - the bite your tongue strategy. Check it out to learn more.
Link: How to Change the World: Speaking as a Performing Art.

The Top Ten Reasons Why PR Doesn't Work

Great article here on Guy Kawasaki's blog, courtesy of Margie Fisher, on why PR campaigns often fail. Many clients do not understand the distinction between PR and advertising. With advertising you buy media placement, you construct your message and control the distribution. PR doesn't work that way. The message can be far more credible when reported by a media outlet but in return the client must cede a measure of control over the process.
Link: How to Change the World: The Top Ten Reasons Why PR Doesn't Work.

Dell hooks up with Wal-Mart

This is a major development in channel marketing. After years of succeeding with its innovative direct sales model, Dell is now opening up a retail channel. Their first partner is none other than the world's largest retailer, Wal-Mart. In case you missed it, Dell has slipped from its perch as North America's market leader and has started to fall further behind the new leader, HP.

Will this new strategy work and what does it signal? Computers are in the late maturity phase of their life cycle. When products become commodities the typical strategy is to open up a very broad distribution channel for maximum customer convenience. Other than Apple, there's not much product differentiation going on so distribution and pricing become paramount. In this sense, Dell's move is strategically sound. I think that customers were increasingly unwilling to transact over the phone or the Internet when they had lots of options at the local mall, from well-priced HP units at stores like Best Buy to the fashionable products sold through the Apple boutiques. Dell got lost somewhere in the middle.

With this change Dell is focusing its future clearly on the consumer segment of the market. They can pretty much kiss the enterprise market goodbye. What IT chief is going to trust her company's core business system to products sold at the local Wal-Mart? By choosing Wal-Mart Dell gets exposure to a large client base including those late adopters who are finally getting around to buying a home computer. The price they pay for this exposure is in brand image, especially in the corporate market.

Link: TheStar.com - Business - Dell hooks up with Wal-Mart.

How hybrids took over Hollywood

Want more proof that PR is becoming a primary promotional strategy? Here's an article from CNN that details how Toyota used product placement through a nonprofit organization to get many prominent Hollywood celebrities to drive their Prius hybrid.
Link: How hybrids took over Hollywood - May 28, 2007.