Marekting

6.

Background: Software piracy in China is a huge problem for Microsoft. In 2008 Microsoft went on the offensive by sending a software update that could turn the desktop wallpaper black when a pirated Windows XP operating system was being used. Not surprisingly, this move stirred much controversy in China.

Is this the right approach to combat piracy? What are the possible risks? How would you fight this problem if it were your job?

I don't think Microsoft's approach to combatting piracy was effective in any way. I'm not sure how changing the default background screen effects the user in any way because if they are still able to operate programs on the software without any hiccups or errors, then the desktop image is completely useless. While I agree it's clever because of how subtle the difference is, I'm not sure what Microsoft was trying to accomplish by carrying out that plan.

Fighting piracy is extremely difficult because of the multiple sources that share specific data with the public. I don't really know the ins and outs of piracy but if this were my job, I would try to track down those sources by IP addresses but I'm not sure how easy that is. In the case of Microsoft, I think the viable option would be to offer free updates to the software. It's not fair of them to charge users a fee to simply upgrade a software they already have on their device.

Counterfeit issues are not easy to handle in China, and I don’t agree with this approach that Microsoft used to combat piracy. Counterfeit problems have become sorts of “custom” to residents in China where people know they purchased the fate products like software or application. The reason they are willing to have those “known FATE products” because they didn’t see the benefits of real products. “Lack of technical knowledge or protection theory” is the central issue in the computer market. The way that Microsoft used to combat piracy is extremely offensive. Their appoach might warn the consumers, but destroy its public reputation. Because there are thousands of consumers involved including the business. If the “black screen” showed to any business, that would be the huge issue, which Microsoft's reputation might poorly reduce.

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I have no problem whatsoever with what Microsoft did. If software piracy is a huge problem, Microsoft must protect themselves. They can only spend so much time and money to continue to try to be one step ahead of piracy. But, when piracy gets to a level that begins to hurt a company, a company should strike back. The people who pirate the software should know that they are risking being on the bad side of a battle against software piracy. With what Microsoft did shows the people who dowloaded the software illegally a few things. It shows them that they are easily identifiable and microsoft is just as good as playing games as they are. I don't think it would cause Microsoft's customer base to become worried because if they purchased the software, nothing will happen to their computers. Like I said at the beggining of the post, I like this approch to combatting piracy and I would fight it with little annoying ploys as well.

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I would consider the approach was not so effective. Sometimes, innocent software users may be tricked into purchasing such fake products without knowing it. Using viruses or ‘revenging’ protection strategies are unethical and illegal for various reasons.

Innocent users may be damaged as well. This is true when it comes to applying revenge tactics to their use of fake software. This is because they may lack a proper method of distinguishing the real product from a counterfeited one. The impact of using such mechanisms for averting piracy is harmful and not proportional to the damages that are caused by piracy. Thus, it is an inappropriate mechanism for defense. Furthermore, end-users often develop a dislike for software that has revenging protection systems. This is because they are afraid that owing to some errors, such offensive or defensive mechanisms may be utilized in situations where they have no piracy intents. Moreover, the end-users may mistake the impacts of malicious software or virus for offensive software.

Under those concerns, I think there should be some alternative measures. One such strategy would be to limit the degree of usage. In addition, software developers can curb piracy by limiting possible modifications. Software developers can bar users from modifying the system by limiting modifications. This is because the codes normally have logos to the vendors, and when end-users change such codes, they may be vulnerable to making mistakes that may later on be construed as mistakes of the vendors. This causes the vendors to lose credibility.

Honick, R. (2005). Software piracy exposed. New York: Syngress.

Combat Piracy

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I personally like this approach, it's a little playful in a way to me. While it might not be solving their problem since all it does is turn the desktop wallpaper black its like they're saying "we caught you!" I think they could take it a step further and make the computer shut down so that people cannot use the pirated software at all. Some people may stop buying these computers because they cannot use the pirated software, which would be a risk for Microsoft. Another alternative would be that they could have automatic software updates and just sell the computers with the software already installed so that people do not have an option. Allowing piracy to continue is detrimental to their business, so any of these approaches carry the risk that people will stop buying Microsoft and Windows, but it still needs to be addressed.

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In emerging markets such as India, consumers shop far more frequently than in most Western countries –often on a daily basis. As a result, consumers there have many more opportunities to switch brands. What does this buying behavior imply in terms of communication approaches? In situations where a foreign firm such as Unilever or Colgate tries to foster repeat purchase and brand loyalty, what strategies or actions can the firm take?

The buying behavior of consumers who are constantly switching brands indicates that the companies are either not effectively communicating to the public or the products themselves are not being emphasized on quality. Companies can intill stronger messages regarding their product ensuring higher quality and customer satisfaction. Brands should make an effort to allow themselves to stand out from the other competitors. Establishing a wider presence within the market, consumers will automatically think about that brand because of how many times they have been exposed to it, leveraging out other competitors.

In order to foster repeat purchases as well as brand loyalty, Unilver and Colgate can try and appeal to the market by rewarding repeat customers by establishing loyalty programs and other incentives or even by communicating with the consumers directly. Asking consumers about their experience and how they can improve might be a good way of reaching the audience through a personal platform. And when consumers choose to take these surveys, the brands can offer discounts for their next purchase. Making consumers feel like they have impact on the product making process can influence them to stick with the brand because of that personal connection that was built.

Having an Indian background I found this week’s discussion topic to be rather interesting. It is indeed very true that emerging markets such as India have consumers that exercise their purchasing power more frequently. Housewives in India are responsible for making daily trips to the local “markets” and purchasing the family's’ daily needs. With this in mind I believe a promotion strategy in India would be best served to be directed towards female consumers. These consumer in India are much more likely to make the ultimate purchasing decision therefore it may be beneficial for international markets to appeal to their interests.

In addition creating a strong loyalty program may help companies market their products in India. Since consumers shop much more frequently a strong loyalty program could help to keep old customers and acquire new ones. Initiating savings towards loyal consumers will ensure they pick your product over the competitors.

It is important for international markets to continually relay their message to potential consumers. In India consumers visit markets on the daily therefore need to be constantly reminded what their choices when purchasing goods. In this sense it is important to focus on value. Firms must learn to explain the benefits of their products over competitors repeatedly to ensure continued brand loyalty.

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The consumer behavior of high frequency shopping in India is a direct correlation to their way of life. In an environment where many people cannot rely on a set monthly income their daily purpose is to maintain and obtain items that are needed. A communication approach to this buying behavior is frequent consumer dialogue to maintain familiarity, reliability and trustworthiness. Firms like Colgate and Unilever have adapted flexibility with their traditional product placement to conform to their consumer base. Packaging products in a smaller, more adaptable container to provide lower prices for less amount of product, accessibility in many venues and locations in the communities and welcoming feedback for the consumer by giving an opportunity to hear their opinion and make changes that will provide better convenience to them are actions they can take to foster repeat purchases and brand loyalty.

In my opinion, the informative communication will reveal information about new features in a product. Information should focus on providing a hint that the product has been changed. Advertisements should thus keep changing. They should be appealing to listen and viewing to achieve maximum attention from customers. Information should highlight the benefits of a product. Customer compare products according to information presented to them. Therefore, the information should inform customers the availability of goods in the different parts of the Indian market. In India, personal communication will influence the purchase of an individual brand. Indians live in organized communities. They value social relationships. Hence, most of the purchases will be made via referrals. To achieve that, there is a need to target individuals. The individuals will become points of references in the society. Clients will tell their families, friends, and neighbors about the benefits of using Unilever products. Personal selling can be achieved having a customer relationship management. Such that customer's personal details which include their emails address and telephone numbers are available. Personal messages will be sent via texts, emails and calls. Texts can take the form of short messages services. Personal contact will thus boost repeat purchasing which will build up brand loyalty.

Promotion in emerging market

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I think, for any emerging market, communication does have a great impact on any consumers’ purchasing behavior. Since many emerging markets are more open to alternatives and trying new products/services, companies that want to dominate in the market needs to make that first mover advantage and build a solid customer relationship with its consumers. How a company goes about building that customer relationship or customer loyalty varies across industries and companies.

I believe for a country such as India, where the country is more collectivistic, relationships are important and will have a great impact on any company. With that, foreign firms such as Unilever or Colgate should try to promote their product around the concept of a “we” culture. The firm should consider advertising personal testimonials from the consumers who used the products/services. Or companies can look into personal selling, which gives the consumer that one-to-one communication in order to build a solid relationship before talking about the product/service. In the end, whichever strategy a company chooses to use, it is important that the company understands that relationships (family, neighbors, community, etc.) is what the consumers in India value and their product/service need to show that value.

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8. Background: Some economists have brought attention to the importance of the role of geography in international trade. For example, the dramatic rise in trade between the US and Mexico is attributed primarily to wage differences between the two countries and the geographic proximity, which allows for the relative cheap movement of goods by train from Mexico to any corner of the US within 3 to 4 days. However, advocates of globalization claim that the role of geography in international trade is limited and is declining constantly. They contend that direct transportation costs as a % of the total value of goods for most goods is low and is declining. Furthermore, it is not actual transportation costs, but the coordination of managerial resources and information that is the key to savings through global logistics. This reduces the role of geography in international trade to a minimal level.

Either argue in favor of the importance of geography in international trade or argue for the declining role of geography.

Given the ease and speed with which information, services, and even physical goods can be transported all over the world, I definitely think that geography is becoming less and less important in regards to international trade. The combination of the internet and globalization has made it so much easier to get exactly what you need in a much shorter amount of time.

The logistics and coordination of international trade are simpler than ever before and have the ability to connect people and ideas on opposite sides of the world in an instant. So yes, in a sense, geography will always matter because there’s no denying something will get from the United States to Mexico faster than it will get from the United States to say, Thailand, but there is no denying that physical geography has become a much less relevant factor in international trade especially in comparison to factors that are rising in importance like economic development of the countries involved and political factors.

Even though the role of geography in international trade is limited and is declining constantly, it is still playing an important role in international trade at a minimal level. Because of the development of each country and the international relationships among all, the role of geography weights less important than before, especially between those countries that are close to each other such as US and Mexico. However, the geographic factor is unchangeable, but influential. Even though there are free trades agreements and other collaborations from countries to countries, it is still difficult for most of businesses to reach the other side of the world. Depends on what product or service the business is, it might take different amount of time and cost to achieve and accomplish what they want. Additionally, geography brings in the matter of time differences which is another factor to consider. To sum up, I agree that the importance of geography is declining, but it will always keep its role in international trades.

Location, location, location...

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While I agree that the importance of geography in international trade doesn't carry as much weight as it has in the past, I still believe it is important. It also depends greatly on what kind of business, product, or service we are talking about. While the ease of shipping is much better now, it is still a huge expense. Having worked for an international shipping company in my first co-op, I know first hand the time, money, and border control hoops that need to be jumped through that it takes to get product from point A to point B. With the energy crisis as a very eminent problem coming up fast in the very near future, I think that location will continue to play a huge part as fuel prices continue to rise. Another thing that plays a part in international trade that is usually linked to geography is free trade agreements. Because they normally exist between geographically close countries, it is something to keep in mind as the tariffs and bureaucracy of getting products into a different country affect companies just as much if not more than geographical location.

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