Sunday, August 15, 2010

You get what you pay for: discounting quality is false economy


"Pedigree" is a pioneer work of  new business model
This article is written by a professional in advertising industry. This interested me alot because I am taking an Master's degree related to advertisgin recently.

The Author seemed upset to see the economic downturn because the whole industry is highly effected by the big economic enviroment, especially in the Western countries like Australia.

This author choosed an very interesting topic. What is the role of advertising in the new digial era under economic downturn is a very big issues. However, this author disappoited me because all he was talking about is to complain the client's side.  The most important thing for advertising professionals is to think what they need to do to become trustworth and  then the clients would spend more money on advertising to help the business.

for example, beyond advertising, Disruption ( the philosoly of an advertising agency 'TBWA") believes that by changing the rules, the brands could gain a distinct competitive advantage and create new market. It doesn’t believe that brands could outperform the market if they simply keep doing what everyone else does. TBWA has helped its clients break free of conventional thinking by applying Disruption. A great example of this is Pedigree. It has moved from a product-based packaged good strategy to a brand-based strategy. Pedigree’s success shows the shifts in corporate behavior, marketing and communications, and resulting brand perceptions, could be enormous.

Disruption has also been used by some of the world’s leading companies. It opens up new levels of creativity by challenging a business’ conventions to create new ways of marketing, communicating, and even offering products and services. A disruptive idea has been considered as the best, fastest and most effective way to overturn conventions and achieve an expected vision.

In addtion, I hoped I can hear any clue for the future of advertising industry and its future development because since the tranditional business is now discouted the only thing advertising can to is to transfer its rules and change the tranditions.
Personaly, I have 4 ways of thinking. First, the practical way of creativity is changing. For example, Adidas believes that “impossible is nothing” is not a fact, but an opinion; Pepsi revitalized the Pepsi generation theme by reminding us that “every generation refreshes the world”. In this turbulent world, the role of disruption has pivoted. Advertising needs to create a reference point that can be constantly looked back to unexpected directions the market may have taken people in. In addition, people are living in a new digital world; and then actions speak louder than words. Brands are judged in the way they act and in all the initiative they take. Therefore, Disruption about brand belief needs to be augmented with another discipline, Media Arts, at a deeper level.

Second, advertising communications can contribute to reinforce companies’ business strategies more deeply.Today’s market has changed and the business world has involved beyond recognition in the internet age. Therefore advertising needs to offer something new to corporations that are creating their own rupture in their business model, services and communications, in order to change its path and accelerate growth.

Third, under the Global Financial Crisis, creativity is essentially important because advertising needs to help companies seek branding and marketing opportunities in a downturn. The moments to be remembered forever in human history are all from the hard times. The downturn is the time to reset. It demands that advertising acts smarter and does things differently.

Finally, Disruption needs to be applied properly. It needs to be applied on the right product at the right time in the right place with all the right people.  For example, advertising for human rights organization against Chinese Government with the background of 2008 Olympics  has annoyed the biggest market, China

5 comments:

  1. This comment has been removed by the author.

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  2. this articule interestes me because the title is realted to the GFC, which is quite an inportant issue for all graduates who are desperatly seeking for job in the downturn.

    the author, who owns his business, which is a very big that can make effects to the advertising industry, explained how the discountied services operated: distounted quatlity of services.

    As a advertising postgraduate student, i quite understand about the process in the advertising company's side and this is what we are learning to do in this semester. Then, I totally get the author's idea that to ignor or skip some steps of the process in order to save the cost is a really stupid idea because thats not the way of making advertising.

    However, standing on the normal audience's side, his explanaiton seems to be to generall without letting the audiences know to get it. For example, he can add things like: if without the strategic part, such as comprehensive secondary research about market, when the samples are made are put in every supermarket in Australia, and the direction of marketing is actually wrong, how could the discouted services even be called as positive? the cost of mistake is serveral time bigger and then, the business's trust on advertising will be discounted in a deeper level. that would be a disaster for the whole industry even bigger than the GFC.

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  3. the author mentioned that, "Our industry needs to invest more in systems and research to manage the increasing complexity of the media environment." this is a very good point and thats why both advertising company and clients cant not skip some certain process if they still want to increase the brand awareness and accerlate the market growth.

    however, without some explaination about that , in the new digital world, people's behaviors has changed and their comsuming are actually beyond the recognization, the audience can not really get the author's point.

    therefore, this artical is more like the complaning, not for the audience of mass.

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  4. i still remembered that when i was doing my first degree, all my teachers were requiring us to explained everything, with supposing the people who would read this article is without any relevant knopwleage. ---no matter how theoritical my topic was and no matter if my course was for the beginner or for the students aimed to do something really advanced.

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  5. +++ the layouts of the website (SMP) is really good. although for this article, indivudually, is not impressive virsually.

    there are the linked with the most updated and most popular stories( with specific catogaries) on the websites.

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