AB1501 MARKETING INDIVIDUAL ASSIGNMENT
ARTICLE: “ONLINE BRANDS SET OFF ON NEW MARKETING JOURNEY”
DR KRISHNA UDAYASANKAR
ONG SHI XIAN GARY
TUTORIAL GROUP 6
I, ong shi xian gary (u1110552e), declare that the work which I am submitting is original and that I have made proper referencing and citations (where appropriate and required).
8 NOVEMBER 2011
WRITE-UP ON ARTICLE: “ONLINE BRANDS SET OFF ON NEW MARKETING JOURNEY” BY MICHAEL BARNETT (15 SEPTEMBER 2011)
1. Article Summary
The article describes and looks into the benefits of the growing trend in which online brands use offline, traditional marketing promotion ...view middle of the document...
However, unlike interactive social media, traditional media and products can be expensive. It has also been observed that ninety per cent of all new products fail. Thus, the decision for brand extension should be accompanied by ample funding and commitment. Failing to do so will result in the organisation wasting precious funds and brand awareness will remain as it is instead of increasing.
4.1. Increased Differentiation and Reduced Service Intangibility
From personal experience playing online games, I have found myself categorising online brands as a virtual and fake experience compared to real life. Especially for the aspect of online games, I find myself often unwilling to pay for something that I cannot feel or touch. Instead, I will resort to free online games. This is a result of the intangibility that comes with most services. This intangibility is amplified by the fact that there is nothing, not even a service provider, to assure the consumer that he will get what he paid for except for words of guarantee in an online transaction.
Hence, promoting brand awareness and/or implementing brand extension using an offline platform allows online brands to greatly reduce the intangibility issue mentioned in the above paragraph. Besides the online brands mentioned in the article, companies like Blizzard have also implemented this strategy on their worldwide hit, World of Warcraft, with great success. From my observations, World of Warcraft employs many offline strategies, marketing action figures, books, posters, events and road shows. This has helped to generate widespread publicity and high differentiation compared to other online games, giving World of Warcraft a physical, real world presence which increases consumer confidence and assurance in making monthly subscriptions to the online game.
4.2. High Costs
The main drawback to all of this is the relatively higher costs of traditional media and development of physical products compared to interactive social media as well as online services. From what I have learnt in Business Operations, the added cost of inventory and required inventory management skills for...