20501008 Entry #14

Building a Better Brand

Summary:
The key to marketing your business is finding a timeless position and staying focused on what you want. Each brand has their loyalists for example, Nike and Michelin etc. Why are people like you and me willing to spend more for products from companies like Nike and Michelin? The answer is branding. The huge investment of time and money they spend on their brands will make their products worth more in the marketplace.

Then, how we can build a better brand?

Adding Value
The better the branding efforts the more value a brand can add to the products and services.
People don't diagram the meaning behind brands. The name or logo instantly brings to their minds a perception built by years of branding cues.

Take Your Positions
Positioning is simply the rational and emotional benefits people associate with a brand.

Keeping Focus
As the company introduces new models, they inevitably include the latest and greatest features. But BMW doesn't attempt to build its positioning around run-flat tires or side-impact airbags. Instead, the company understands that in the automotive market there will always be a segment of buyers for whom the way a car handles and feels (and makes its driver feel) is the most important consideration. Furthermore, performance is the benefit BMW has owned for decades, and the brand has kept its focus there even as the definition of performance has evolved.

Opinion:
Most people like some prominent brand like Nike, Reebok and I Pod some thing like that. Some people buy those companies’s product because of its new technology and new function. However, that’s not all for customers in the world. Many companies try to set their image through branding. To brand their name is one of the important key points in marketing. The huge investment of time and money they spend on their brands will make their products worth more in the marketplace. So, we need to study about the way, how we can build a better brand. To build a better brand, you can add value through the name or logo. It may bring to customers minds a perception built by years of branding cues. The brand perception can be made not ease but hard through many years. Next, Company has to keep their position. Many brands have its steady customer. So, try to keep their rational and emotional benefits people associate with a brand. Lastly, keeping focus is necessary. As you know, BMW does not advertise their new product’s new technology. They emphasize more on their comfortable and history. That kind of strategy is keeping their position. As I said before, don't focus on features that will soon be co-opted by its competitors is important. Consider the primary benefits your brand provides and what they really add up to. Getting positioning right is the first step in creating a brand worth billions.

Annotation: Building a Better Brand, Business week, October 12, 2007

"McDonald's Specialty Coffee Kick" Entry # 13 (Jung Won Kim - 20700158)

Summary: Janice Fields, is the chief operating officer of Mcdonald's USA. She started off as a counter girl when she was around age 20, and she has worked up the career ladder, and now she is in charge of thousands of stores and millions of dollars of revenue. Since she has been the chief operating officer of Mcdonald's there have been constant improvements, such as increased hours in 90 percent of the stores, improved the health-issue of the industry, and increased revenues. Janice is about to start an idea that is totally revolutionary since the introduction of breakfasts. They are planning to start serving latte and cappuccinos in Mcdonald's. They have already started this procedure in many different countries, and the reponse does not seem to be quite positive.

Opinion: Even in Korea, Macdonald's started to serve high-class coffee such as lattes. I have not heard of anyone say, "Let's go to Mcdonald's and grab a cup of coffee." I do not think that they have culturized this concept of Macdonald's coffee as they have culturized breakfast menus. Many would agree that many people get excited over the breakfast menu of Macdonald's. Even myself, I try to to go to Macdonald's before it is 11 Am, so I do not miss out on the breakfast menu. It is true that this reacting is portrayed because of the good taste of the mcmuffins or sausages, but more of it is I think because of the culture that Macdonald's has created. The happy feeling that you get when you're eating breakfast with your friends where everyone is smiling is what most of us crave more than the actual taste of the burgers or breakfast meals. What Macdonald's needs with this new idea of lattes and cappuccinos, is to culturalize the cafe culture within the world, a culture where Macdonald's can state that one does not need to go to Starbucks or Seattle's best to get good coffee, an image that states Macdonald's can provide a happy experience with the meal and complement it with a high class environment that goes well with the coffee experience.

source: http://www.businessweek.com/bwdaily/dnflash/content/may2008/db20080514_138620.htm?chan=innovation_branding_top+stories

How important image of firms is

세계적 생활용품 업체인 P&G는 2005년 '이미지 가치'를 감안,장부 가액 28억달러에 불과한 질레트를 570억달러에 인수했다.질레트가 갖고 있는 이미지의 위력을 높게 평가했다는 뜻이다.이미지가 좋은 기업들은 경쟁이 치열한 시장에서 손쉽게 이익을 올린다. 경쟁업체와 엇비슷한 제품을 내놓아도 훨씬 비싼 가격에 팔려 나간다.모토로라의 15년 독주체제를 무너뜨린 노키아,창의적인 기업문화를 바탕으로 야후를 제압한 구글,실용적인 차를 만든다는 이미지로 GM을 압도한 도요타 등이 긍정적 이미지의 덕을 본 글로벌 기업으로 분류된다. 기업 이미지를 끌어올리는 문제는 한국 기업들에 특히 중요하다.국내 기업들은 기술력에서 글로벌 기업과 비슷한 수준을 갖췄음에도 불구,브랜드 파워와 이미지 경쟁에서 밀려 시장을 주도하지 못했다.삼성경제연구소가 지난달 28일 발표한 '무형자산과 기업의 경쟁력' 보고서에 따르면 한국의 코스피 100대 기업이 갖고 있는 기업 이미지 등 무형자산의 가치는 글로벌 기업(미국 S&P 100대 기업)의 3.2%에 불과했다. 시장 내에서도 긍정적인 이미지를 유지하는 일은 무척 중요하다. 한국은 반기업 정서가 강한 나라로,자칫 정치적 이슈에 휘말려 노골적인 '반기업 운동'의 표적이 되기 십상이다.미리 긍정적인 이미지를 만들어 놓지 못한 기업이라면 돌발 변수를 만날 경우 한 순간에 '2류 기업'으로 전락할 수 있다는 뜻이다.최근 들어 대기업을 중심으로 '이미지 경영'이 활성화되고 있는 것은 이 같은 측면을 고려한 것으로 풀이된다.우선 기업의 사회공헌활동(CSR)이 강화되고 있다.△기업의 경영방침이 윤리적인지 △제품 생산 과정에서 환경을 파괴하거나 인권을 유린하는 일이 없는지 △지역사회와 국가에 얼마만큼 공헌하고 있는지 등을 따지는 소비자들을 우군으로 끌어들이겠다는 전략이다.신입사원 하계수련대회를 충남 태안 지역에서 개최해 기름제거 활동을 벌이기로 한 삼성그룹이나 '직원 한 사람이 한 그루 나무심기 운동'을 벌이고 있는 포스코 등이 대표적인 사례다.제품 디자인을 강화하는 움직임도 '이미지 경영'의 일환으로 볼 수 있다. 제품 이미지가 일관되고 고급스러워야 기업 이미지도 높아진다고 판단하고 있는 것이다. 특히 가전업계 등 제품의 품질이 상향 평준화돼 있는 분야의 기업들은 디자인 인력 강화에 힘쓰고 있다.'글로벌 기업'이라는 이미지를 가꾸기 위해 노력하는 기업들도 쉽게 볼 수 있다. SK그룹은 최근 이사회를 미국 뉴욕에서 개최했다.내수 기업이란 이미지를 글로벌 기업으로 바꾸기 위한 움직임으로 해석된다.LG전자는 CHO(최고인사책임자)를 포함,4명의 최고경영진을 외국인으로 선발하는 등 인적자원의 글로벌화 작업을 벌이고 있다.현대♥기아자동차는 자사 차량을 타고 2박3일 일정으로 금강산을 다녀오는 '금강산 가족여행 이벤트'를 개최하는 등 소비자와의 접점을 늘리는 데 공을 들이고 있다.소비자들에게 'VIP 대우를 해주는 기업'이라는 이미지를 갖도록 하자는 포석이다. 스포츠 마케팅을 '이미지 경영'에 접목시킨 사례는 매우 많다. 이제는 글로벌 차원에서 스포츠 마케팅이 이뤄진다.삼성전자와 LG전자는 각각 영국 프리미어 리그에서 활동하는 프로축구클럽 첼시FC와 풀럼FC를 후원하고 있다.스포츠 마케팅이 기업의 이미지 제고와 실적 향상에 상당한 도움이 된다고 판단했기 때문이다. 실제로 삼성전자는 첼시FC를 후원한 지난 3년간 유럽 시장 휴대폰 매출이 4배나 늘어나는 효과를 봤다.송형석 기자 click@hankyung.com

Summary: Global famous firm, P&G purchased Gillette about five billon dollars for their image value although Gillette’s value was three thousands million dollar. P&G thought firm’s image is very important to marketing. Firms that have good image win the competitive market. It is important for Korean corporation to win the competitive market. Last month, Samsung economic research institute presented that intangible asset, Korean Kospi top 100 corporations has, is only 3.2% that of American S&P top 100 corporations. Hyundai, Kia motors is making effort to make their good image. Nowadays, image marketing is more and more important than ever.

Opinion: Consumer always chooses merchandises and services that are cheap and rational. But people buy some merchandises and services because of image of them. As time goes by, image of firm is more important. And many huge global firms invest their money in order to get good image. But I think Korean firms do not think about it sufficiently. Korean firms must invest their money so as to make good image by using sports marketing, volunteering and so on. Firm’s image is so important to get more market share and profit.

http://www.hankyung.com/news/app/newsview.php?aid=2008060361201

20600197 Kim, tae hee

20501008 Entry #13

Name That Firm
What should you call your business?

Josh Robbins of Geckotech

Movie "Wall Street" ultimately inspired the name of his company. It's Josh Robbins' favorite movie, he explains, and the name of Gordon Gekko, the callous Wall Street titan played by Michael Douglas, had a better ring than other names in the movie. So he took the name, changed the spelling slightly, and added "tech" to the end.

SUMMARY
It's not necessary to spend a lot to come up with the right name of the company. But it is necessary to follow some guidelines.
FIND THE UNIQUE
The first step is usually pinpointing the company's unique value or service. People always ask where the name comes from. The image became a metaphor for the firm's creative efforts. Sometimes, an idea for a business can be so unique that the name comes easily.
BUT DON'T BE OBSCURE
To change the company's former name or to find a new name, the company tapped its own talent.
AVOID THE MUNDANE
Indeed, companies trying to create a unique brand sometimes err by choosing a name that describes too closely what they do. When a company tries to describe its services, it usually makes the company sound generic. The names of many successful companies don't describe what they do. Names that describe a company also require a greater investment to promote the name in the marketplace. The only way how to do that is through repetition. Company has to get people to see it many times. To convey a unique and fun approach to an otherwise dry and complicated technology is important. For example the movie, Gordon Gekko, the callous Wall Street titan played by Michael Douglas, had a better ring than other names in the movie. It changed the spelling slightly, and added "tech" to the end.
GET REACTIONS
The best way to gauge the effectiveness of a small-business name is to find out how it resonates with people outside the company. To research a new name for the company, asking to 10 customers and 10 vendors about their perceptions of its original name and services is a good way. Only a few correctly knew it was a generalized design firm.
DOMAIN DO'S AND DON'TS
An Internet domain name should be closely related to the company's name and make sense to users. For example, when http://www.dm-i.com/ came out, People just couldn't remember it, and had difficulty typing it both as a Web and email address. Many people surfing the Web don't look for corporate Web sites by remembering a domain name. Instead, they type the company's name into Google, and then click on a link that is listed.

OPINION
When the company launches its business at first, finding appropriate name of the company is the most important thing I think. As you can see at this article, name of the company has a strong influence on clients’ understanding. So, if the name of the company is wrong, many clients wrongly assumed. Furthermore if the name of the company does not give an impression to clients, it would be a loss of the company. Clearly, a better name was needed so, owner needs to find appropriate name of the company. As the author said, to find the unique the image became a metaphor for the firm's creative efforts. Also, we can avoid the ordinary thing by choosing a name that describes too closely what they do and a company tries to describe its services. It can gauge the effectiveness of a small-business name, and a company could get reaction from clients. Finally, company has to make a domain of the webpage easily. If clients had difficulty typing it both as a Web and email address, they do not remember at all. Many small companies don't understand the basics of choosing a good name. To give an impression, people should find a name memorable and easy to look up, either in phone listings or on the Web. The easier a name is to remember, the more it will benefit from referrals. Similarly, a name that's hard to spell makes a company hard to find. I always type the company's name into Google or Naver, and then click on a link that is listed. To make the clients keep logging on the website, easy domain name is necessary. If a company keeps all of these rules, customers will remember the name of company and keep the relationship with that company without oblivion.

Annotation; Name That Firm, The Wall Street Journal, March 17, 2008

How P&G Pampers New Thinking (Jung WOn Kim 20700158) Entry # 12

Summary:

P & G, after facing serious financial problems around 2000, a new President of the company was introduced. Lafley who was new developed many innovative ideas that helped the company out. Also, getting insight from stores and places where consumers hang out, so that the company can relate their products to their consumer's emotional aspects of their lives, have been a big part of the new president's philosophy. Products are not the only important part of an innovative plan, but alos knowing to keep your loyal customers. P&G has emphasized a lot of design into their products so that it could attract teenagers. Also the new president, Lafley believes in bringing in ideas from outside so that more opinions could be heard on how the products should be designed and made.

Opinion:

I think this is a very good idea to bring in ideas from outside of the corporation. When you critique yourself it is very difficult to find flaws, but if you ask someone to proofread your paper or evaluate your performance they can find them in a more logical manner. So I think P$G bringing in ideas from outside is a big advantage that they have over other leading companies. I think innovation is the key here in the article. You need to be strategic, but then find ways to attract and keep customers in a new and different way. There needs to a "Wow!" factor for a company to succeed. There must be something different in a time where we live in where everything get boring really fast

Source: http://www.businessweek.com/magazine/content/08_15/b4079073614638.htm

20501008-Entry 12

The Escalator Pitch

Summary

It's no secret that less is more in the age of information overload, no matter how you're trying to reach people. That's why Boyd also calls it the escalator pitch. "It's something you can say in 10 seconds while he's going up the escalator and you're going down the escalator,"
Google's Eight-Word Pitch
Veteran entrepreneurs and financiers understand the need for brevity when pitching any business. So what makes a good escalator pitch? "Brevity and Relevance”. It's about focus and precision, and it needs to be aligned and presented in a way that reflects who you write to and why it's beneficial to your readers. That means tailoring your message to your audience.
The Foundation of Your Brand
Message should start with the people behind the product, rather than an outside public relations or marketing firm. When you're actually talking about your own product, it's your idea. You will find the words. If you can't, it may be a sign that your product is not distinct from competitors. Unknown startups should also think of escalator pitches as the foundations for their brands.
The Fortune-Cookie Message
The real value isn't how many commas you put into an e-mail. It's really about how effective you are about getting people who are interested to take a call or a meeting. And with your audience drowning in more noise than ever, cutting your message to fortune-cookie length may be the best chance you have at getting their attention.

Opinion

In an era of information technology, we are in an embarrassing situation, a deluge of information. So, many information looks like a spam for us. Lots of information has low accuracy. In the marketing strategy, it is same. In an embarrassing situation, what could be a proper way to persuade or appeal our target? That is ‘Brevity and relevance’. Who you write to and why it's beneficial to your readers, tailoring your message to your audience is important. When pitching any business we have to focuses on something and we have to give an attention with precision. If I talk about my products, to give a just one impressive word is necessary. That means my product is distinct from competitors. The length of e-mail is not important I think. With short e-mail, we have to give an impression effectively to our target people. As give a short massage like fortune-cookie message we can get an attention from our target.

Annotation;The Escalator Pitch, Business week, May 16, 2008

20400520, Entry#12, Smartphone?

Summary
Contrary to the situation of other countries around the globe, smartphones are not welcomed in Korea. Currently the most famous smartphone, ‘BlackBerry’ is used by people in over 120 countries with 14 million subscribers.
Unlike the world trend, Koreans don’t like something large and heavy especially mobile phone. But recently some changes to the larger and bigger phones can be seen in the market.
Going with the tide of smartphone trend, SKT is planning to introduce the BlackBerry in Korea in the second half of this year. No.1 mobile phone maker in Korea Samsung Electronics also is going to releasing their own smartphone ‘BlackJack’ later this month, and Taiwan-based HTC is expected to introduce its ‘Touch Dual’ at the same time.

Opinion
Through this article we must think about what should be done first to launch samrtphone in Korea. Of course, market analysis must be preceded. Because Korean mobile market(phone, internet, banking etc) is totally different from rest of the world. In Korea, there is little or no concept of ‘smartphone’ in contrary to the else where in the world.
I suggest that smartphone is not needed because ‘mobile internet’ function, which is the most powerful function of smartphone, is not useful in Korea. As there are no inconveniences using internet anywhere in Korea, mobile phone users are not expect to use mobile internet which is relatively expensive than LAN.
One another main reason that I don’t recommend launching smartphone is because that the demand of smartphone would be too small. As we all know, percentage of using mobile phone in the purpose of business is not so big. Relatively large percentage of people is using mobile phone as common supplies. These people don’t need mobile internet or Qwerty keypad system. On the other hand, entertaining functions such as camera, MP3, mobile game is needed.
Related industries must close look at what consumers wants, and develop their own competitiveness to fill consumers needs.




20400520 Jeon Keong Won
reference: http://joongangdaily.joins.com/article/view.asp?aid=2890252

The dream of 'second lego'

“전세계 어린이들이 친숙하게 느낄 수 있는 헬스기구를 만드는 것이 제 꿈입니다.” 어린이 헬스용품이란 생소한 아이템으로 성공의 꿈을 키워가고 있는 오주열(38·사진) 베베스포 대표의 포부다. 베베스포는 미취학 아동들을 대상으로 체력강화와 성장발육을 돕기 위한 운동기구를 개발, 판매하는 회사다. 오 대표는 대학 졸업 후 패션업계에서 종사하며 아동의류를 다루다 이 사업을 떠올렸다. "제가 하루라도 운동을 안하면 몸이 근질근질할 정도로 운동을 좋아합니다. 그런데 아무리 좋아해도 버릇을 들이지 않으면 안하게되거든요. 그래서 어릴 때부터 재밌게 놀면서 운동할 수 있는 습관을 길러주는 기구를 만들어야겠다고 생각했습니다." 처음에는 주변의 반대가 컸다. "'누가 애들한테 헬스용품을 사주겠느냐'며 의심의 눈초리를 보내더군요. 하지만 요즘 엄마들은 아이들의 키를 크게 하고 비만을 해소하는데 관심이 많잖아요. 그런 점에서 충분히 해볼만한 가치가 있다고 판단했습니다." 그는 블루오션을 개척한다는 생각으로 승부수를 던졌다. 2003년에 스포츠의학 전문가를 초빙, 제품 개발에 착수했다. 성인용 기구를 축소하는 단계부터 밟았다. 헬스사이클을 필두로 7가지 제품을 만들었다. 아이들이 좋아하도록 디자인도 바꿨다. 제품이 출시되자 유통업체의 반응은 긍정적이었다. 참신한 아이디어 제품이라며 흔쾌히 입점을 허락했다. 하지만 소비자의 반응은 냉담했다. 생소한 제품이라 선뜻 구입하려하지 않았던 것. 특히 가격이 비싼 것이 흠이었다. 막대한 개발비 때문이었다. 그는 문제점들을 고쳐나갔다. 주문자상표부착생산(OEM)에서 탈피, 공장을 직접 운영해 가격을 낮췄다. 제품의 재질과 품질관리에도 신경을 썼다. 1년여의 시간 동안 시행착오를 거친자 부모들 사이에서 입소문을 타기 시작했다. "2004년에 웅진과 거래를 시작했습니다. 그동안 비슷한 카피 브랜드나 중국산 제품도 많이 들어왔죠. 하지만 저희 제품은 불량품이 나오지 않기로 유명합니다. 그래서 2006년도에는 웅진에 독점으로 납품하고 있습니다." 국내에서 인정을 받기 시작하자 해외시장에도 눈을 돌렸다. 지난해 2월에는 독일 '뉘렌베르그 국제완구전시회'에도 출품해 주목을 받았다. 그 결과, 현재 12개국과 계약을 성사시켰다. 올해는 30억원 정도의 매출을 예상하고 있다. "아직도 갈 갈이 멀죠. 해외시장 개척에 박차를 가할 겁니다. 앞으로 수출물량은 지금보다 5배 정도는 더 커질 수 있을 것 같습니다. 제품을 보강하고 종류를 늘린다면 '레고(lego)'처럼 전세계 어린이들이 좋아하는 브랜드가 될 수 있다고 믿습니다."

Summary : Oh joo yul who is CEO of Bebesports dreams the second ‘lego’. He makes merchandises that related to children’s health. At the beginning, his family and friends stop him from doing his business. The people around him told him who buy health-merchandise children. But he starts and set about his business. At last he succeeds his own business. In 2003, he contact sports medical expert and develops his thought. He makes a lot of money in Korea industry and now he expands oversea market. He believes he can make the second ‘lego’.

Opinion : We have learned niche and blue ocean strategy. I think he think health merchandise for children is niche market. A niche in the market is a specific area of marketing which has its own particular requirements. After he makes sure it, he researched and contacted expert to make his own merchandise. I think it is so important for business man to have confidence for his own idea and make effort to make sure his goal though there is opinion against us.

http://www.moneytoday.co.kr/view/mtview.php?type=1&no=2008052811244993985&outlink=1

20600197 Kim,tae hee

Johnson & Johnson's Big Design Challenge (Journal Entry #11 - Jung Won Kim 20700158)

Summary: Johnson and Johnson is faced with challenges with their products. Being knownas products for anti-pimple, cleansing, foam and other hygeniec products, Johnson and Johnson have been tryng to improve their field of Marketing. There were much struggles as the company produced products that looked tacky and medicine-oriented. When Chris Hacker came into the designing department, all of that was changed. Chris Hacker said that there needs to be more strategic ways to get customers motivated to buy the product. Chris Hacker also created a huge think-tank for Johnson and Johnson, where it is composed of 120 persons who came up with ideas of how the packaging would be done, and what kind of improvements could be made with the product. Hacker stated that what Johnson and Johnson had lacked before was the field of "expertise." Hacker also has proposed a plan where 30 percent of the products are made of post-used materials. Overall, Hacker has brought an innovative way to package, market, and attract customers in the field of design.

Opinion: Most companies and organizations struggle mostly problems, not the same problems as we do about doing the laundry or taking out the trash. Most of these problems consists of blockage of ideas and lack of problem solving skills. Many people know what the problem is, but they cannot define it specifically, and they do not know how to solve those problems. What Hacker did in this case was define the problem specifically and hired experts that were more advanced in the field than he was. That is what companies and organizations need to do. A lot of CEO's and leaders have a pride issue and believe that they can solve problems of their organizations, but the truth it is far more productive and efficient for a CEO to hire people who are more skilled than they are in a certain field or division. Hacker has done a good job of marketing what their experts have thought of in order to attract customers with their newly designed packaging and ideas and design.

Source: http://www.businessweek.com/innovate/content/may2008/id20080521_194730.htm?chan=innovation_innovation+%2B+design_top+stories

2001008-Entry11

Netflix Battle with Blockbuster Gets Ugly

Summary:
The fight between Netflix (NFLX) and Blockbuster (BBI) is getting uglier. Blockbuster's new strategy, though expensive, is robbing Netflix of profits and subscribers. Netflix reported earnings of 37 cents per share on July 24, up from 25 cents a year ago. The online movie rental service also warned investors that its revenue, earnings and number of subscribers will be lower than predicted. That sent Netflix stock falling, down more than 6% to $16.21 on July 24, after touching a new 52-week low of $15.24. That comes on top of a 12% drop the day before, when the company cut prices for subscribers. The problem for Netflix is renewed competition from Blockbuster. With its store movie rental business withering away, Blockbuster has spent heavily on its Netflix competitor "Total Access" program. The service delivers movies through the mail but also allows customer to exchange videos in person at Blockbuster stores. Blockbuster is losing money on the program, but it's succeeding in depriving Netflix of new subscribers.

Opinion:
To outsmart their competitor, Blockbuster tried to give lower price, shipping cost and distribution to their customers. With the result that Blockbuster did measure an increase in in-store rentals after eliminating late fees, but there were no early returns, so the annual late fee revenue no longer was being collected. I think it is too risky. It should take advantage of its prevailing position in the bricks-and-mortar rental industry. They accepted the Netflix’s good points, and to outsmart their competitor they tried to give lower price, shipping cost and distribution to their customers. However, there were revenue and inventory management problems. Because it was too complex to make the plan reality and report card was mixed. So, when Blockbuster has 1 million subscribers, Netflix has 3 to 4 million subscribers. In their complex situation, they kept up there business policy.

Now they are faced with a new set of challenges because of VOD technology to watch movies and programs that are not yet available on DVD. And there was a problem about file size. Six movie studios, including Warner brothers, Sony pictures, Universal studio, MGM, and Paramount offered movie download via online. Considering this issue, legal digital distribution of movies is not good in their business condition. I think there are continuous appear about company like ‘Movielink and Apple’ without development of new technology, they will be declined.

I think Movie rental service is in plentiful supply. Even Amazon.com already operates an online movie rental service in the United Kingdom. Considering that flow, they have to go with flow and see the business world more widely. They need not only alter their present problems but also have a broad vision about business to pass the other runners.

And I want to consider this in Korean market’s perspective. Because of the VOD file which is trade illegally through internet, Korea's DVD and Video market has experienced the failure. The war, which is made by Hyoung-Rae Shim, earned 11 billion dollar at theater market and 22 billion dollar at DVD and video market in US. In Korea, video and DVD market is below the level of Theater market. It’s just 10 percent. What is it mean? The theater market needs to study the Netflix's case to survive in a flood of the illegal VOD file.

Annotation;
Netflix Battle with Blockbuster Gets Ugly; Business week, by Ben Steverman, July 24, 2007

Facebook's Big Facelift by Matt Vella "Jung Won Kim (20700158) Entry # 10

Summary: Facebook has recently announced that they are going to improve their layout on the site. Facebook which has been started by two college students have become a success over the past years. Once which was a college startup has become a corporation worth billions of dollars. Recently, facebook has been criticized to be becoming more like myspace, a site full of spam mails, and messy page layouts. What facebook has done is add a personality of the person to the site such as adding applications and other tools that may aid the person in communicating oneself to other faceboook users. Facebook will "facelift" their site by organizing the layout, separating the personal info page, with other gadgets such as games and other utilities, making it a more clean, cut looking site. Designers of facebook are saying the restructuring of the site is only "skin-deept." The layout and typography of the site will remain the same, the only thing that will be touched will the division of information, so that it will be more organized.

Opinion: I think that this is a wonderful identification of the problem and an attempt to solve the problem. Most corporations have problems whether it be a small one or a big one. The difficult part is identifying those problems and attempting to offer a solution that it may benefit the organization and the consumers. In this case facebook's consumers are the daily users who want to form social networks around their world. Personally, as a user of facebook, I have noticed these problems and was always annoyed by such problems of gadgets and tools in the site interfering with my personal page. Facebook obviously is on the right track in improving their industry and trying to attract more users for the growth of their corporation.

Source: http://www.businessweek.com/innovate/content/may2008/id20080514_205389.htm?chan=innovation_innovation+%2B+design_top+stories

The channel of firm and customer

‘소비자-기업간 커뮤니케이션 채널’이란 슬로건을 내세운 매스온 (대표 유현종 www.masson.co.kr)이 공식 서비스를 시작했다.
매스온은 소비자 마케팅의 발상을 전환한 ‘소비자-기업간’ 사이트로 소비자가 기업들의 제품 및 서비스를 사용한 후 불만, 개선점 등을 등록한 글을 선별, 분석하여 기업에 제공하고, 기업에 제품 개선 및 신상품 개발에 도움을 준다. 또 기업으로부터 그에 해당하는 비용을 받아 소비자에게 현금으로 돌려주는 보상제도를 도입해 현 마케팅 패러다임에 변화를 시도했다.
‘이제 고객의 작은 불만도 비용을 지불해야 한다’라는 매스온의 새로운 발상의 시스템은, 소비자에게는 활발하고 적극적인 의견 표출의 기회를 제공하고, 그를 바탕으로 기업이 성장을 촉구하는 계기가 된다. 이는 현 기업들의 숙제라 할 수 있는 고객과의 원활한 커뮤니케이션에 윤활유 역할을 할 것으로 예상된다.
매스온은 회원들의 글 작성 활동의 동기 부여와 사이트 활성화 유도를 위해 사이트 오픈 이벤트(“글 쓰면, 매스온이 100만 원 쏜다!”)도 실시한다. 회원을 대상으로 작성한 글의 평균 평점이 가장 높은 회원에게 상금을 시상할 예정이다.
앨빈 토플러 [부의 미래]의 ‘기업은 돈을 주지 않고 고객에게서 유용한 신제품 아이디어, 광고아이디어, 슬로건을 얻고 있다’란 말에서 아이디어를 얻었다는 유현종 사장은, “프로슈머(생산자+소비자)라는 신조어가 생겨난 이후 프로슈머는 단순한 소비자를 넘어서 주요 경제 변화의 일원으로서 큰 몫을 차지하고 있다. 따라서 기업도 마케팅 활동에 고객을 직접 참여시키는 슈퍼마케팅이 중요한 요소로 자리 잡게 되었다.”라며 매스온의 탄생 배경을 설명했다.
소비자와 기업 모두가 ‘win-win’ 하는 가치 창조를 바탕으로 한 매스온을 발상의 전환을 해 소비자 마케팅 패러다임이 바뀔 수 있을지를 기대해본다.

2008/05/16 [10:48] ⓒ브레이크뉴스

http://breaknews.com/new/sub_read.html?uid=81507&section=section37

This article shows us how important participation of consumer to business. Consumer and firm interact to get their advantage. From this article, we can see consumers participate in firms strategy. For example of this article, communication channel (consumer-firm) of Mass-on site,, it give good points to both side. Consumers tell firms dissatisfaction, improvement, and good point. And firm pay a fee to customer who tell firm about it.
As time goes by satisfaction of consumer is more important than any other side. We have learned manufacture is most important in mid 19c. But now we can see how important attitude of consumer. It improves satisfaction of firm and consumer. I think it is good win-win strategy.

20600197 Kim, tae hee

20501008-Entry 10

Advertising: Think Before You Speak

Summary
Your ad may not be saying what you want the target audience to hear. The same is true of advertising. We don't truly communicate simply by speaking to someone, we communicate only if they understand what we mean for them to know. The trick of creating effective advertising is to get inside the skins of your target customers, to see your message through their eyes and hear it through their ears. It doesn't matter what an advertiser intends to communicate, what matters is how the target audience interprets the message. Don't just put an ad out there because it sounds good to you. You may like what your advertising has to say, but that can be misleading. You, after all, aren't the target. In fact, since you know so much about your products, your industry, your competition, and even your own good intentions, your reaction may be as far from the target's as it can get. Study the people you're trying to reach. Get to know them. Understand their attitudes and perceptions, even if you think they're incorrect. And don't just say what you want to say.

Opinion
First of all, I want to talk about the title; Think before you speak. It's a kind of a slogan so, the 'SPEAK' has a lot of meaning. In this article, the meaning of speak is advertising. So, before we make an advertisement, we have to think more deeply. To advertise in customers' perspective is the thing what we have to consider. The target of the advertising is customers, not me. If we make an advertisement with a word or slogan what we like but customers don't like, there will be no impressions for customers. The advertisers have to consider the customers' hobbies and interesting. So, to make an advertisement more effectively, we have to make an advertisement in the customers' perspective. we have to put ourselves in customers’ shoes.

Annotation:
Advertising: Think Before You Speak; Business week, by Steve McKee, January 11, 2008

firms name in 'Green' 'Bio' 'Clean' 'Chungjung'….

특허청에 최근 5년 동안 출원된 상표 가운데 가장 많이 등장하는 인기 단어들이다. 이들은 공통적으로 친(親)환경 브랜드. 환경문제가 사회적 이슈가 되면서, 상표에도 '녹색' 바람이 불고 있는 것이다.특허청에 따르면 지난 5년 동안 출원된 상표 중 가장 많이 사용된 단어는 'Green' 또는 '그린'으로 2737건이나 됐다. 두 번째는 'Natural'(자연)로 2730건이었고, 다음으로 'High'(하이·2217건), 'Pro'(프로·2030건) 순서였다.
이외에 'Bio'(생명, 5위), 'Clean'(클린, 12위), 'Well-being'(웰빙, 17위), 'Chungjung'(청정, 19위) 같은 친환경 단어도 사용빈도 상위 20위 안에 들었다.그러나 친환경 단어를 실제로 상표에 사용하려면 주의가 요망된다. 친환경을 바로 연상시키는 단어는 상품의 우수성을 직접 표시하기 때문에 그 자체로는 상표에 쓸 수 없다. '좋다' '우수하다'란 상표를 쓸 수 없는 것과 같은 이치. 특허청 김내성 사무관은 "친환경 용어를 상표에 쓰려면 기업명과 같이 식별력이 있는 용어를 함께 사용하는 게 유리하다"고 말했다. 예컨대 시멘트 회사인 홍길동사는 '그린홍길동시멘트'로 상표를 출원하면 등록될 가능성이 높지만, 그냥 '그린시멘트'로 출원하면 상표로 등록하기 어렵다. [이영완 기자 ywlee@chosun.com][☞ 모바일 조선일보 바로가기] [☞ 조선일보 구독] [☞ 스크린신문 다운로드]- Copyrights ⓒ 조선일보 & chosun.com, 무단 전재 및 재배포 금지 –

http://news.naver.com/main/read.nhn?mode=LS2D&mid=sec&sid1=101&sid2=310&oid=023&aid=0001960663

Nowadays environment is more important than ever. Pollution is severe. Because of growing of genetically modified organism that harm people and is not verified, besides, consumer is in danger to eat. So purity environment oriented merchandise is getting popularity. In this article, many firms use their name on word that bio, clean, well-being, natural and green. It make customer feel comfortable. I think consumer is satisfied with using this merchandise because they can feel they contribute to environment. We have learned to make more useful marketing, firms must satisfied consumers. I think there are many various strategies to give consumers satisfaction. By using logo and name of firms, supplier could make profit.


20600197 Kim, tae hee

Making good partnerships -Blog Entry #9 - Jung Won Kim 20700158

Apple has been known as the clean, well -functioning product of our age. Most people these days either own an Ipod. The Iphone which was released almost a year ago has become sensational, with its slick design and practical functions, it has attracted millions of customers around the world. When Iphone was introduced to become a multi-entertainment functioning cell phone, it partnered up with America's biggest mobile company, "AT&T." This seemed to be a good move. Everytime AT&T received its bills from Iphone using customers, a portion of that bill was paid to Apple. Now, Apple recognizing AT&T's wide range or customers and high revenue, took the opportunity to partner up with them so that their profit could be tied in to AT&T. And AT&T knew that by partnering up with Apple they too could gain more customers and charge them at a higher price for the service they provided for the Iphone device. Marketing involves a lot of advertisement and promotion, but I believe effective partnership can also be effective marketing. In this case Apple's targeting does not need to be specified. By providing AT&T with its technology of the Iphone, automatically, all AT&T users become a segmented target for Apple. All AT&T users become a potential customer for the Apple Iphone product. In my opinion this is a very effective marketing and business strategy. With one important decision made, Apple has widened its range of customers, acquired more opportunities, and gained lots and lots of more revenues.

Source :http://www.marketwatch.com/news/story/growth-unlocked-iphones-means-trouble/story.aspx?guid=%7BFF1245CD%2DC5E3%2D4B8E%2D8BDE%2D1D696E5C7C26%7D

20501008 Entry 9

Original article;

http://www.businessweek.com/smallbiz/content/jul2006/sb20060713_044166.htm?chan=search

The Cocktail Party Test for Advertising

My Opinion

I agree with the writer's opinion. As the writer said, advertising needs etiquette for the customers. We have to focus on the customers' perspective and make eye contact and listen their opinion. As an advertiser we tend to talk about ourselves. That will make the customer unesasy. When we think the customers' position first than my position, it will make the new relationships increase and decrease the chances I am going to be perceived as someone to avoid. Many advertisements approach to someone with bad manners. At a cocktail party, keeping the manner is important. In a deluge of advertise, advertisers must be smart and have to set the goal more effectively.If our objective is to inform, entertain, or otherwise please customers, we can obtain many customers' interest and affection. If we keep this rule in mind, we will not fail at the cocktail-party test. Once again I want to stress 'the need of eye contact' and 'considering the customers needs, wants, and desires'. A selfish advertisement and a punishment will give us the failure.

20501008 Jeong-hwan Kim

Star-marketing

육류 판매왕 스타 마케팅 주효
“도축장에서 돼지 한 마리를 잡아주고 처음 받은 돈이 3만원이에요. 이걸 밑천으로 고기 장사를 시작했는데, 이렇게 커질 줄은 꿈에도 몰랐죠. 가족들에게 줄 음식이라고 생각하고 정성을 다한 게 성공 비결이라면 비결입니다.” 보는 사람을 미소 짓게 하는 푸근한 웃음에 넉넉한 체격. 이승훈 정성식품 사장(39)의 첫인상은 마음씨 좋은 이웃 ‘정육점 아저씨’다. 그러나 그는 맨손에서 매출 800억대 식품 회사를 일군 자수성가 CEO다. 대구 지역에서 가장 주목받는 젊은 CEO 가운데 한 명으로 꼽히는 이 사장의 사업 성공담은 이미 대구, 경북 지역에서는 유명하다. 이 사장을 더욱 유명하게 만든 건, 그가 경영하는 정성식품이 홈쇼핑 ODM(제조자개발생산) 업체로 활약하며 내놓는 제품마다 히트 상품이 됐기 때문. 실제 농수산홈쇼핑에서 누적 매출 100억원을 넘은 ‘전철우 항아리갈비’를 비롯해 ‘배연정의 오삼불고기’ ‘김학래 임미숙의 인절미 탕수육’ 등이 모두 정성식품이 개발한 제품들이다. 정성식품은 소비자 기호에 맞는 음식들을 기획, 개발하고 여기에 스타마케팅을 통해 제품을 홈쇼핑에서 판매한다. 이 사장은 “홈쇼핑에서 처음 제품을 팔기 시작한 2003년부터 지난해까지 판매한 누적 금액만 500억원에 달한다”고 설명했다. 정성식품이 이렇게 홈쇼핑시장에서 두각을 나타낼 수 있었던 건, 철저한 품질 관리가 바탕이 됐다. 배연정, 전철우 등 음식 장사를 하는 스타들을 적절히 활용한 스타마케팅이 주효하기도 했지만 스테디셀러가 될 수 있었던 원동력은 역시 ‘맛’에 있었다. 고객들이 한 번은 스타의 이름을 보고 제품을 구매하지만, 두세 번 이어지는 반복 구매는 맛에 있기 때문이다. 이 사장은 21살 때 처음 도축 ‘칼’을 잡았다. 직업 군인이셨던 부친이, 친구 빚보증을 잘못 서 집안이 통째로 날아가면서 생계를 책임져야 했기 때문. 마땅히 배운 기술도 없어 인근 도축장에서 돼지 잡는 일을 했다. 이때 돼지를 잡아 고기를 정리해 주고 처음 받은 돈이 3만원. 이 사장은 이 돈을 모아 정육점을 차렸고, 또 정육점에서 번 돈을 모아 축산 가공 공장을 설립했다. “92년도에 정성축산을 인수했는데요, 그 전에 4번이나 망한 회사였어요. 그런데 그 회사를 인수해 단번에 연 50억원 매출을 올렸습니다. 항상 거래처를 먼저 생각하고 사업을 했던 게 도움이 됐죠.” 현재 정성식품은 홈쇼핑 외에도 전국 600여곳의 식육 판매점에 돼지고기, 쇠고기를 공급하고 있다. 또 롯데햄, CJ푸드시스템, 푸드머스 등 대형 식품회사들에 원료육을 제공한다. “원료육에서 양념육으로 사업 범위 및 가공 식품 비중을 넓혀 명실상부한 종합식품회사를 만드는 게 꿈입니다.” ▶ 69년생 경북 울진/ 계명대 경영학과,계명대 경영대학원/ 92년 정성축산 사장/ 한국육가공협회 이사(현) [정광재 기자] [본 기사는 매경이코노미 제1451호(08.04.16일자)에 게재된 기사입니다]

http://news.mk.co.kr/outside/view.php?year=2008&no=226637

This article introduces the meat seller, who succeeds in meat market. He was poor but now he makes 80billion won a year. We learned Nike Company that uses a star to attract consumers last class. CEO, Lee seung hoon uses star-marketing similar to Nike co. he makes hit merchandise by using star whose image harmonize with agricultural and marine products. I think star-marketing is very effective method to attract consumer. But I felt firms should consider carefully to find the fit star for merchandise.

20600197 Kim,tae hee

20400520, Entry#7, Relationship

Relationship
It is very common in Korea using subsidies to help cell phone manufacturers to sell more products in telecommunication industry. Using subsidies, phone companies (wireless telegraph operators) such as SKT and KTF (in this article AT&T) would make more revenue from telephone call charge and can reinforce the relationship with manufacturers.
In Korea, most of cell phone manufacturers distribute their products to three main phone companies. However, this kind of distribution is seems not to be common in US. It says in the subtitle “the phone company may cut the iPhone's price to boost demand—and cement its relationship with Apple.” AT&T wants to deal with Apple exclusively and did subsidize Apple. So the partnership or relationship really matters, more than Korean situation like supplier-producer concept.
Doing a Business in equal status comes from good relationship and this relationship requires not only money but also trust and confidence. To say in opposite direction, a relationship makes more values to both parties.

reference:
http://www.businessweek.com/technology/content/apr2008/tc20080430_591776.htm?chan=rss_topStories_ssi_5

20400520 Jeon Keong Won

Blog Entry #8 "Sports industries and marketing -" - Jung Won Kim 20700158

I have always been interested in sports and love to be engaged in sports all the time. I think the reason for this is because I am an active person. I played rugby and soccer in high school. Every since I got involved with sports in high school, i became interest in the fashion of sports. I always wanted to wear sports clothes, always wanted to wear athletic shoes, and of all the products, I needed to have those nikes. In class, while we were watching the video on Nike's success, it hit me quite hardly. Why did I need those nike shoes? Why did I need that pair of sneakers that had a swoosh sign on it? It was about brand inequity. Ever since the 70's it is said that Nike has had deals with sports stars, and in the 80's a major increase in sales happened for NIke because of the deal with Michael Jordan, portrayed as many as the best player to ever played the game of basketball. Once Michael Jordan started to wear Nike's everyone wanted one! It make a link or formed a relation between the lay man and the super star! Nike's executives knew how to advertise and promote their brand by linking their products to hero's of the modern times, such as Michael Jordan. Every kid who idoled Michael Jordan wanted a pair of Nikes. Not were the executives aware of the brand inequity but also the emotional ties that were affililiated with the product they promoted. If a customer becomes emotionally attached to a product in one way or another, the executives knew that the customer would have to get them in all costs! I think this is a very inspiring and motivating case for a business student. Seeing how a small start has become so successful just by using good marketing strategies and knowing the customers is very inspiring.

Source: http://www.marketingcrossing.com/article/index.php?id=220018

20501008-Entry 8

Original Article;
http://www.businessweek.com/smallbiz/content/aug2007/sb20070810_058283.htm?chan=search

A Hotel in a Box

First of all, as I read this article, I thought that Qbic read customers' mind. Qbic offer a valuable service with a compact service. Qbic Hotels has much strength; design, comfortable, and low cost.
First, Qbic allows guests to change the color and theme of their room with a touch of the finger on an LED screen. Qbic Hotels is the low cost design hotel company also. Especially they are very comfortable and convenience. All of these are the design strength that makes the customer feel attractive. Next, its ability is to offer both high style and low cost in a self-service environment, DIY service. As you know, other hotels give many services for customers. However, Qbic hotel makes customers to do by themselves as lower their price. As this hotel gives a card to customers, let customers do what they need and let them easy to use self service check in terminal. And also they give us free wireless internet access in the hotel and in our room.
The Grab & Go Corner's vending machines provide to customers bakeries' bread and beverages. It is same as other hotel service. The unique thing is that all of these things are self-service. So, as we rest at hotel, we can keep our prices low.
As I read this article, I became to have a dream. In the near future, I will visit this hotel alone as a backpacking.

20501008 Jeong-hwan Kim