Archive for April, 2009

Join the Mile High Club…

Thursday, April 16th, 2009


…for Blogging , that is!

This just in: TopRight today set the unofficial record for the world’s highest blog at 38,000 feet. That’s right, thanks to a Wi-Fi enabled iPhone, the WordPress iPhone App and the GoGo Inflight Internet, this blog is coming to you from 38,000 feet over Charlottesville, Virginia!

Delta has plans to install GoGo Inflight Wi-Fi on over 300 of its planes by the end of 2009. This week I found GoGo on ATL-> DCA and LGA-> ATL flight segments. GoGo has also partnered with VeriSign, so you can make purchases and check bank balances with the same level of security as if you were sitting at your desk. You can also seamlessly access your corporate network using a VPN connection – so no more excuses for not being able to access the “shared drive” while you’re on the road! Obviously, the implications for eCommerce, mobile marketing and employee productivity could be huge…

Please let us know what potential applications you see by commenting on this blog….

A Facebook friend of mine did point out one key drawback to this new technology: the last safe haven for escaping email is gone…

Are PC’s Positioned As Cheap Or Cheaply Positioned?

Tuesday, April 14th, 2009

I’ve advocated that Microsoft needs to regain control of its brand by developing a compelling value proposition that allows it to take the dialogue away from Apple’s turf. (Read my blog “Can Microsoft Regain Control Of Its Brand“)

Microsoft just launched its new campaign in which “Laptop Hunters” search for  laptops under $1,000 and under $1,500.

Watch Lauren hunting for a laptop under $1000.

Watch Giampaolo hunting for a laptop under $1,500.

The impression I get from these commercials is that Microsoft is positioning the PC as being cheap. That might help it sell computers during a recession but it can be dangerous in the long-term because cheap products result in lower margins. Once consumers perceive a product as cheap, a company will struggle to take it “up-brand” to command higher margins. 

Another interesting message that Microsoft sends [in Giampaolo's commercial] is that  “Mac’s are about aesthetics not computing power.” Could this be an attempt from Microsoft to position PC’s as functionally superior to Mac’s? If so, will the marketplace believe that claim when comparing Vista to Leopard? Will Windows 7 allow Microsoft to claim functional superiority?

What do you think? Is it wise for Microsoft to position PC’s as the cheap option in the marketplace? Can PC’s claim to have superior computing power than Mac’s? Are these 2 messages compatible with each other?

Bank of America’s Branding Misstep

Friday, April 10th, 2009

As a marketer, we know our organization’s brand is sacred.  For many firms it solely defines their value – Coke is just sugar water without their brand identity.  The Coke brand, according to Interbrand was worth over $66 billion in 2008.   If this is so, why can’t organizations understand how their actions to capitalize on short-term revenue can lead to disastrous results?

So, what does the brand of Bank of America mean to you?  Does it mean “an organization that takes advantage of those who fall on hard times?”  It might now:

Bank of America announced the following today:

The North Carolina-based bank, which has a strong presence in the Chicago area, is bumping its overdraft fee by $4, to $39, on June 5. The new charge is among the highest in the nation.

In addition, the bank is increasing the number of times in a day it can hit customers with that $39 overdraft fee. Bank of America customers will be charged for the first 10 times they overdraw their account in a single day. The previous limit was seven times. That means a customer could be hit with a total of $390 in fees in a day.  

And the reason for this outrageous increase in fees – “Overdraft fees are designed to modify customer behaviors and offset the risks that an overdrawn account pose to a bank, so given the changing economic conditions, those risks have increased,” a B of A spokesman said.

 Yes, the risks have increased – the risk that your customers will quickly move their funds to other banks.  This move is epidemic of organizations who do not consider their brand and the impact it will have on their organization for years to come.

What other branding missteps have you seen?  Let us know your thoughts.

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