1. When talking about Yahoo auctions, what did Seth Godin mean by 'billion dollar decisions do not have anything to do with technology'?
Seth Godin states that marketers and decision makers spend extensive amounts of revenue on advertising. Yahoo did the same to promote its auction website. However, Google had no sales-force to promote their service. They developed a magnificent search engine that delivers personal, relevant and anticipated messages to people who want them. Word-of-mouth is their key promotional element. They do not need to spend a dime on promotion as customers do it for them.
2. What has storytelling got to do with cat food?
Seth Godin used the example of Fancy Feast cat food to demonstrate the concept of ‘storytelling’. He explains that people do not buy Fancy Feast for their cat, but buy it for themselves and their well-being. They want a story to tell. For example, people do not buy Chanel No. 5 for the perfume itself, but buy it so they can tell a story about their wealth, status and good taste.
3. Explain the concept of funnel marketing. How would 'flipping the funnel' help the marketing of a product?
A funnel is very wide at the top and narrow at the tip. Not everything can come out the bottom all at once. Funnel marketing is the process of offering something of high value and little or no cost to customers. Once marketers have captured the interests of customers, they can then start varying the weight of the value and costs accordingly. Funnel marketing is a successful concept as customers already have an idea of what they are buying. As long as they feel that the last step in the funnel is worth the price, they will always be open to pay the higher prices in the future.
The essence of 'flipping the funnel' is that for most companies, friends and customers are under-used assets. Network marketing leverages the single most powerful form of advertising: word-of-mouth. It is about flipping the funnel and turning it into a megaphone.
4. What does the term 'remarkable' mean in the context of purple cows?
The word ‘remarkable’ means giving customers something worth talking about. For example, if people have seen one cow, they have seen hundreds. There is nothing special or remarkable about them. However, if people saw a purple cow, they are mostly likely to take interest in it as it is a story worth telling. Marketers need customers to keep talking about their products to produce and maintain demand.
5. As eMarketers we all want 'happy surfers'. Godin talks about the fashion/permission complex. He lists four parts to the fashion/complex. They are:
1) Make it (the message) worth listening to.
2) Tell it to the people who want to hear.
3) Tell their friends.
4) Get permission to tell about your next fashion.
Can you think of an example from your experience that demonstrates the fashion/permission complex?
An example of the fashion/permission complex is Sri Chinmoy Races. It is an event company that offers a smorgasbord of quality running, swimming, triathlon and multi-sport races Australia-wide. I heard about the event company at a Health & Wellbeing Festival. As I enjoy running I took interest in their message. A lady from the registration tent asked if she could take down my details to send me email updates about upcoming races. I told my friends and family about the events as they are also interested in running. I now participate in the races on a regular basis.
6. Thinking back to last weeks lecture, give an example of an 'idea that spread', and an example of marketing 'that is broken'. What elements of the promotional mix did your examples include?
IDEA THAT SPREAD
An example of an idea that spread is Facebook. It is a social directory that was introduced to help people communicate more efficiently with their friends, family and co-workers. I first heard about it from my friends and decided to sign up as another way to stay in touch. It now has more than 130 million active users. Facebook’s key element of the promotional mix is word-of-mouth. Minimal amounts of revenue are spent on promotion.
THAT IS BROKEN
Some years ago Coco Cola tried to introduce a new Coke. Even though they did extensive market research and people seemed to like the taste of the new Coke, the product still failed. The reason why is because there was nothing wrong with the original Coke and people didn’t want to give up buying it. Coke would have used advertising, sales promotion, PR, sponsorship, packaging and word-of-mouth to promote the new Coke. However, due to poor planning the product did not succeed.
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