New Business Models

Reading about some of these new business models that have arisen from the Internet like the Dollar Shave Club got me thinking about what other interesting business models I have heard of.  One that I can think of is using podcasts to reach an audience instead of live performances.  There are a few personalities I can think like, like Joe Rogan, that use podcasts to reach their audience, and generate a larger following because of it.  For some it has resulted in larger live audiences.

Another way people have created a business is through YouTube.  One example of this is Justin Bieber.  Posting videos on YouTube is just another way to make yourself known to people who are looking for your skill set.  In Justin's case it was singing.  Another way to create a business through YouTube is to monetize your videos.  Should you get enough views, that provides a way to receive income.  Here's one more interesting article I read with some examples of different Internet business models.

Showrooming

After reading a couple of the articles about business model of showrooming (for example Warby Parker), it got me thinking about online shopping in general.  For consumers, there is no doubt that online shopping is easier, quicker, and more convenient than visiting retail stores.  However, with that reward comes the risk of the item not satisfying the customer and the customer having to return the item.  I think that risk and the costs associated with the risk (shipping costs, an extra trip to the post office, repacking the item, waiting on a refund, etc.) cause people to decide not to shop online.  Showrooming is an interesting concept that takes much of that risk away.  Consumers can "try before they buy" so that they are sure what they are ordering is what they really want.  I have definitely done this before with shoes.  If I see shoes I like in a retail store, I figure out what size I need, and then I find them online hopefully for less.  Although the department store is not trying to be a "showroom", that is how I use them when I have a smartphone to find the best price at my fingertips.  Amazon makes that activity even easier with their barcode tool.  I can take a picture of a barcode, and Amazon will find the item for me and many times, I can order it with no shipping charge.

The next thing I thought about was how this concept applies to the industry I'm in.  Not surprisingly, you will not find a retail store for medical devices.  Devices are sold directly, and often ordered through sales representatives.  In fact, the sales reps act as a mobile show room.  They call on clients armed with sample product, iPad demos, etc.  This seems to be the next step for a showrooming concept.  Instead of making the customer come to the showroom, find a way to bring the showroom to the customer.  Perhaps retailers could consider letting customers try before the buy.  Let's say a customer doesn't get charged for the item for one week.  If they return the item within the week, the customer is not charged.  If the customer decides to keep the item, then the company will automatically charge the customer after the one week.  This saves the consumer any concern about paying and then waiting on a refund.  It may motivate customers to order more options at once to try, and in theory, they may decide to just keep more items than they normally would if they were paying up front.

Week 4 Plan

Week 4 has quite a few required articles to read!  I'm planning to dive into those early this week to get a sense of how business models are different when the web or mobile interfaces are involved.  Apart from all the required material, I'm hoping to read the article "Twitter turns 7" and watch the video about  eCommerce.  I find that whenever I am reading / listening / watching this material, my mind tends to wander to think about how it applies to the medical device industry.  I think what I want to focus on this week is just taking a broad view of the material and see how it applies to many different industries. I may be in the medical device industry now, and I do enjoy it, but I'm also open to what opportunities may come up in the future, so I need to consider that as I learn.

I didn't get a chance last week to dive into the team marketing assignment because of travel, but we did communicate about how to go about the assignment, so I know the plan, and this week, I will execute my part!  Additionally, I'll be working on the personal branding assignment as well.  When I read the description earlier today, it was hard not to get started on it right away.  When you enjoy what you're doing, it is fun and no longer work!

The Point of Twitter

After this week, I have a better idea of the purpose of Twitter as it relates to businesses.  People want to share things in the moment.  Businesses can take advantage of this by using Twitter to find out what consumers are thinking about in real time.  They can use this information to engage individual potential customers in a conversation that could eventually lead to a sale.  The NPR podcast "On Media" says that Google helps find information about things, but Twitter will tell businesses how people feel about things.  Personally, I see people posting tweets about their lunch, and I think "who cares?".  However now I have a better understanding that those seemingly inane statements can be relevant to, for example, a local restaurant.  This week's studies have motivated me to pay a little more attention to Twitter and find out its place in my life and career.

Customization

This post is more of a question.  In the Seth Godin video, he talks about how mass marketing concepts are moving toward individual marketing instead.  It isn't enough to know your market segments, companies need to know their customers.  In an age where retail products are getting more and more custom, I can't help but notice that the medical device industry is moving in the exact opposite direction.    Back in the 60's - 80's, a doctor could call up a medical device company, explain what they need, and it would be built and shipped out that day.  Due to a significant increase in regulation, it is no longer possible to make custom medical products.  A simple, low risk product like a needle now takes years to design, develop and approve.  A doctor may have a need today that cannot be met until several years in the future.  I don't have an answer for this, but I find it very fascinating that although information and innovation seems to move faster in the retail world, it is actually moving slower in my world!

Corporate Transparency

As I read the "Origins of Social Media" article, something that stood out to me was transparency.  The article states that transparency is the key to successfully working in the blogosphere or community forums.  The article had a great example on Sony and how they didn't immediately fess up to their crime of embedding hidden software in their music CD's and their lag in response time damaged their brand equity more than their initial blunder. 

This concept made me think of the industry in which I work, medical device.  Something that is a hot topic recently is the "Physician Payment Sunshine Act" as part of the healthcare reform.  See #1 on this list: http://www.cnn.com/2012/03/26/health/health-reform-fun-facts

1. How many goodies your doctors get

Is your doctor prescribing you certain drugs because those are the best for your condition or because of a pharmaceutical company's influence? Here's one way you can find out.

The Physician Payment Sunshine Act under health care reform requires drug, device or medical supply companies to report annually certain payments or things of value that they've given physicians and teaching hospitals. This could be speaking fees, consulting fees, meals and travel. So, you can find out which and how much companies pay doctors or health care workers. The companies are obligated to report annually about physician ownership and their financial investments.

All this would be available on a public website.

Effective date: Final rule is expected December 2014.

The way that CNN describes payments / things of value is exactly what my company is worried about.  My company relies on creating strong relationships with physicians to be able to understand what they struggle with in treating patients and innovate to advance medical care.  This does require transfers of value in order to accomplish this.  The transparency is not what is concerning to people, but it is the information without context.  They are seeing a picture of patients looking up their physicians to find out what companies are "transferring value" to them and making an interpretation on what conflicts of interest they may have. 

What medical companies should do is create the context for this public information.  That way when patients see that Dr. ABC received a flight, hotel and meal from a medical company, that it was to come to the company and educate employees on the disease states that their products treat.  Giving that context turns the public records into a marketing opportunity instead of a threat to their reputation.  

Week 3 Plan

We have quite a bit on the agenda for Week 3 in X501.  I've been traveling for work all week (still am) and found a few minutes to take a look at all the material for this week.  Beyond the required material, I'm interested in the NPR podcast "The point of Twitter".  That has been something I have been wondering for a long time, and I'm looking forward to having that answer.  I understand the importance of Twitter as a marketing tool, but for personal use, I don't see a point.  I'm also planning to check out the video "When social media became news". 

As far as the deliverables for the week, the Twitter assignment is the project due first.  Right now I'm in the process of registering for wedding gifts, so I will probably choose a company that I'm considering registering with.  I'd like to see what they are all about before I suggest that my closest family and friends spend their money at these stores. 

The team assignment is coming along.  My team has selected our brand, the Nissan Leaf, and has chosen to take the divide and conquer approach!  I haven't read much about the personal branding assignment yet, but I'm going to dive in later on over the weekend. 

My learning goals for this week are to find out how to effectively reach microsegments through social media.  Also, to find out what is the value of Twitter. 

Business - DIY

The article about how to build your startup without learning code illustrates the power of the internet has of connecting people.  If you want to start your own business, the article explains that you don't need to be able to do everything yourself.  No need to re-invent the wheel, someone else out there already has a skill that you need, and you just need to connect with them.  You no longer have to code to make your own website with all the different simple website building tools that are out there.  You also don't need to be your own graphic designer; there are several websites out there connecting people who do just that with people who need the services.  With all of these tools getting simpler every day, anyone can realize the dream of running their own business with work and resourcefulness.

This very much applies to my life!  My fiance is living this process every day growing his personal videography / photography business.  In just five years, I have seen what used to be his side hobby grow into an all consuming, self supporting business.  He has used many of these tools like WordPress, Google Analytics, and of course Facebook and Twitter to promote his videography business (nichampagne.com).  I'm very much looking forward to learning new things in this class as well as the rest of my MBA education to help him grow the business even more.

Role of the Consumer

One perspective on the role of the consumer came from "The Dawn of the Human Network" reading.  I read about how consumers can actually participate in the creation of the product as in the example of the Threadless t-shirt company.  This company didn't just design t-shirts, they empowered the consumers to create designs themselves and provided an avenue for consumers to dictate and receive what they want.  

Another powerful message I got from that article was about how the masses are capable of producing a better quality solution than just an individual.  Several companies are crowdsourcing to solve relevant problems.  It is very interesting what happens when credentials and experience fall to the wayside and the person who wants the job the most does the job and these connections get made through the internet.  

Week 2: Empowering the Customer

This week in Marketing in the Era of Digital Technology, I'm hoping to learn about the way the role of the consumer is viewed by marketers.  Some of the extra materials that intrigue me are the google and youtube videos and the NPR audio.    My other goal for the week is to make initial contact with my team for the Online Marketing assignment.  Its a busy week ahead but I'm ready for the challenge of fitting in as much learning as possible!

Week 1

After getting through the week 1 required material, the lesson that stands out to me is that technology and the internet is changing to become interactive instead of dictating.  Every customer has a voice that can be heard by the world, so companies no longer have complete control over their brand equity.  Companies listen to their customers and respond to them.  The most successful corporate uses of social media are the uses that involve interactive communication with prospective and current customers.

Gary Vaynerchuk is someone that I have come across who made a very successful online wine business through social media in the mid 2000's.  Here's an interview with him talking about how he did it: http://www.youtube.com/watch?v=YNM9kA1bSHk

He reiterates many of the concepts present in this week's reading: trust, transparency, interactive communication, etc.  Another concept he mentions that resonates with this week's meeting is that eyeballs turn to cash.  People's eyes are turning away from traditional media sources like tv and newspapers and looking toward personal electronic devices like smartphones and tablets.  Companies who are one the forefront of this interactive movement are seeing success.

First Post

Welcome to my first post for X501 - Marketing in the era of digital technology!

I have been at my second Kelley Connect Week and this is the first day I've had a chance to dive into this course.  Blogging is not something I do regularly, and I'm not sure how it fits in with my every day life, but I'm looking forward to using it as a tool to reflect on the material for this course.  I'm also looking forward to hopefully figuring out what Twitter is all about.   I've had an account for probably four years and haven't used it because I haven't found a use for it yet!  Hopefully this class will change that for me.  Personal branding is also something I have an interest in.  After I have my MBA, I'm going to be looking for jobs and it is important to be aware of my online brand and what it communicates to potential employers.

Since I only have today and tomorrow to dive into the first week's material, I'm going to get to the required reading assignments and some of the videos in the extra material section and reflect on them before the end of the weekend.