today's AMAZING TV AD : honda's "cog" 2 minute tv spot

for more on this, go to this post : http://the-wawam-file.blogspot.com/2008/04/cog-honda-tv-spot-another-amazing-ad.html; april 14 post.
the inspiration is mount pinatubo when some years ago, all of a sudden, after decades of being dormant, it decided to erupt, spewing debris and ash several kilometers high, blowing ashes to float everywhere, far and wide, turning the skies gloomy gray as far away as metro manila, hundreds of kilometers away, covering metro manila streets and rooftops with thick ash. the pinatubo eruption was so powerful that its ashes changed the color of sunsets not only in the philippines but also worldwide.

that's what happens when clients and advertising agencies decide to run ads not worthy to be called advertising. its dark, its huge and very irritating and unfortunately, everywhere!

all they are doing is wawam! what a waste of advertising money!

here is a first row view of Philippine Advertising and Philippine Marketing.

mount pinatubo erupts shooting ashes several kilometers high, then floating to blanket many other towns hundreds of kilometers away

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Monday, September 1, 2008

globe iphone 3G's pricing blunder

you have probably seen the tv ads for globe's iphone 3G, some print ads were also released and we see the posters in globe hubs for the iphone 3G. globe's iphone 3G ads exclusively talk about the excellent features and use of the iphone 3G. these marketing activities makes a lot of sense as globe is the only authorized dealer of the iphone.

clearly, globe is selling the iphone handset.

globe in the case of the iphone 3G has taken the role of handset marketer and seller, not anymore just a mobile service provider. in these iphone 3G ads, globe does not at all talk about their mobile services or plans. it's 100% talk on the iphone 3G as a handset.

and that is where the problem of globe's over-pricing the iphone 3G begins. i would even say that is where globe's marketing blunder in pricing also starts.

first, let's look at the consumer. based on globe's over-pricing of the iphone 3G and now it's advertising, it is obvious globe is targeting the upperclass, AB upper C target market.

these upperclass target market i would say already own a cellphone, i would think a high 99% of them own at least one cellphone and is already a current subscriber of a mobile phone service.

the marketing objective therefor of globe iphone 3G is to get the target market to switch from their old/current cellphone to the iphone 3G.

since globe is asking the target market to switch, or to change their old cellphone to the iphone 3G, consumers will naturally look into the features of the iphone 3G and compare these to their current handsets.

not only will consumers compare the features of the iphone 3G, they will also look into the price of the iphone 3G that globe is selling it for.

they will compare the iphone 3G's price versus the price they bought their current handset for, the present price of an equivalent model now and the top of the line models of nokia, sony ericcsson and samsung. and because these are from the upper class, they probably will go to t he internet and find out that THE IPHONE 3G HANDSET is being sold in the US for $199 or P10,000 while globe is selling exactly the same iphone 3G handset for P16,000 or P38,000.

that clearly says the iphone 3G as priced by globe is over-priced.

the first battleground that globe needs to win on their marketing push for the iphone 3G is handset sales. the question of mobile service subscription plan is a second stage battleground. they first need to win consumers on the handset battleground. if globe does not win their target market on that first battleground, their intended consumers WILL NOT move to the second battleground.

in fact i think this second battleground of mobile service subscription plan is actually not really a battleground. i think there is no war on that level, that globe does not even have to fight for anything at this level. why is that? for the simple reason that these target consumers of globe ALREADY OWN A CELLPHONE AND ALREADY HAS A MOBILE SERVICE SUBSCRIPTION PLAN (pre-paid or post paid).

in other words, these consumers are actually already spending money on a subscription plan. it's no big deal if they move from their current plan to a new one with the iphone 3G. it is the shelling out for a new handset, to buy the iphone 3G that is a new expenditure. and because that is where they will incur a new expense on, that is where the battleground of value or price comes into play. and in that battleground, globe lost because they over-priced it.



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read WAWAM! posts on globe's iphone launch : http://the-wawam-file.blogspot.com/search/label/globe

read WAWAM! posts on the iphone here :http://the-wawam-file.blogspot.com/search/label/iphone
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