Video Games For Christmas?

Market research firm NPD has announced Monday that video games and video game system sales has increased 73% in October reaching an incredible $1.1 Billion is revenue.

I have to say that I have contributed to that number. OK I admit it. I do like to play video games. You see, I come from the 80's where we used to gather en masse and drop countless quarters into great great big machines at places called arcades. Yes kids, you actually had to leave your home to go play video games, well the good ones anyway. These were the days where full sized arcade games like PacMan, Donkey Kong, Centipede, Gauntlet, Asteroids, Defender and Frogger ruled the world. I guess I never grew out of it. I know this is kind of geeky, usually Thursday nights is "video game night" with the fellas. Just fun with friends I guess.

I did purchased a couple of games in October. I picked up a copy of Guitar Hero 3, Call of Duty 4 and Scene It (shhhhhh this is for a Christmas present.) In fact I bought the X360 just because Halo 3 came out. This seems to be what a lot of people are doing.

"Software continues to be a real highlight for us. We had more software sales in the month of October than the Wii and PS3 combined," Aaron Greenberg, group product manager for Xbox Live, told Reuters. In September, the Xbox 360 took the top spot over the Wii, which had held the position all year, due to a surge from Microsoft's popular "Halo 3" game." The Wii is no lightweight though. It has sold more units than the earlier released XBox 360 since it's launch just over a year ago. However the PS3 and the Xbox 360 are gaining ground for the holiday season as a result of widespread Wii shortages.

I don't know if people are buying games for Christmas or they are buying them for themselves. All I know is that a LOT of great games are getting released right now. I don't think I put much though into or participated in the Guitar Hero phenomenon up until this point, but I have to tell you, that game is a ton of fun. AND now, Microsoft has taken it a step further with "Rock Band." Evidently you can play the drums, sing and play the guitar with the latest edition to the XBox 360 virtual music scene. As I am writing this, in the adjacent window, I am composing my Christmas list for those that requested one. I do have a couple of games for the 360 on there. If Santa deems it worthy, he may want to drop off a copy of TimeShift for me.

When it comes to Christmas presents and IF your kids were really good, do you think that you would buy your kids a gaming console this year?

 

Social Media And How You Market

There has been a LOT of buzz about Social Media and the influence that it has on people. Social media can include but not be limited to blogs, forums/message boards, podcasting sites, vlogs, and other online communities like Facebook, Second Life, YouTube and Myspace. These online tools allow users to share ideas, opinions, and thoughts with individuals that are typically in the same demographic. This type of online interaction has introduced a new format in which information is disseminated.

Everyone has been trying to figure out how to tap into this social media and better market their business. Even Kraft Foods is getting into the game by dedicating a portion of their marketing dollars to advertising within Second Life. This new outlet for information is why Viral Marketing has had so much industry attention lately.

However, a survey released by Jupiter Research indicates that social media sites are not big contributors to overall sales. Online shoppers prefer information as opposed to entertainment and will gravitate to sites that are seen as an authority. This is why I think that 3rd party information sites, like Consumer Reports, are still extremely valuable. The one thing that the report DID say was that 29% of online shoppers felt that they made better buying decisions after having been on a "social" type website. This is still not enough to persuade me to jump on the social media bandwagon just yet. Granted I am one that will read every review I can find about a product before making a decision on a purchase, but most of these reviews are not on social media sites.

So when you are thinking about trying to tap into the new social media as a way of increasing sales, maybe you should fall back, regroup and find a way to make yourself the authority. Authority and satisfaction are ultimately what equals conversions.


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When and What to Cut

For quite some time I have subscribed to Seth Godin's Blog. I just read a post called "Fall into the Gap." It talks about Gap stores and the recent struggles they've been going through. Seth's post addresses the inappropriate cutbacks that the Gap has been making and he is right on.

Often times when a company is struggling, all they know to do is cut expenses. It's a nasty cycle. You become under-capitalized, cash flow begins to suffer and the owner turns to the only thing they feel they have control over, operational costs. But what is an appropriate cut? Do you cut sales people, close locations, eliminate advertising, what? When a company cuts back on their sales force or customer service, you know they are in a world of hurt and the end may be near. Sales people are the lifeblood of any organization, without them how do you retain and acquire new business? You need to identify your profitable markets, understand what you do best, market effectively, and understand the value of your key people.

I have a friend that owns a business. His one-track minded approach to revenue building is raising prices (regardless of market demand) and trying to figure out how to cut employee salaries. Declining any help that I have offered and after years of this approach, he now has the most expensive product in his market segment and continues to struggle with poor service and bad employees. Sales have continued to decline. I fear the damage that has been done is irreversible and he will never be able to climb out of the hole.

One of the most humbling things that a business owner can do is realize when they are out of their league and can't handle it any more. Once you realize that you don't know it all and you need help, you can surround yourself with people who "know more" than you do. This is when the healing can begin. Too often an owner will ride their pride into the bankruptcy sunset.

Seth said it best: "When your current strategy isn't working, doing the same thing, but just a little less of it, doesn't make a lot of sense..."

 

More sales to the same people.

Just a quick post while I am thinking about it.

Did you know that shampoo makers actually increased sales by adding the word "repeat" to the instructions on the bottle?

Next time you are in the shower, take a look at your bottle. Does it say to "repeat?"

 

People still buy from People

Sales people still have the impression that they are buying a product or service from their company. Not true. People are buying from you, the sales person. You can have the best service or product available but if the customer doesn't like you, trust you, or understand you, it is over before it begins.

I know sales people that have called on companies for years before the needed trust was established. Once you have the rapport, once you have their confidence, once you have their trust, then and only then, can you have their business.

Customers perceive your worth based on results and the value that they feel they are getting. I have dealt with companies that could give me their service free of charge and I still wouldn't use them.

Lawn care companies are always calling me in an attempt to get me to relinquish my lawn care. However, what they never bother to ask about and what they don't know is that I like to do it myself. Still they continue to call every year and I say no. Now, if they came to me with a consultative plan that outlined the proper fertilizer, seed and aeration schedule, I may purchase their services and potentially some product from them given that it was priced competitively.

When dealing with prospects, make sure you do your diligence in research, fact finding. If you are not asking the right questions or you are not digging deep enough. You can never be a true solution provider. Establish yourself and your company as the authority in your industry and position your self as a "go-to" person. If people like you, trust you, and see value in what you do, your have conquered one more step in building your business.

For more information on how you can take your business to the next level contact Impact Marketing Technologies at 319-232-4332 for more information.