Advice on marketing, business strategy and of course info on factor1 projects.

we aren't dumb.

business — Posted by: matt adams on January 23, 2009 at 7:46 am

I often see communication from companies that think we (consumers) are dumb.

Examples. 

• Circuit City is filing for bankruptcy due to the economic colapse.
   – The reality is that CC has been failing for the past 5 years. The last 6 months were merly the nail in the coffin.

Microsoft is cutting 5000 jobs because the slow economy.
   – Again, same story, Stocks and sales have been down for 2 years, yet apple reports one of the biggest profits (26% growth) ever for 4th quarter 08. Maybe the issue is bigger than the current economy.

• I recently switched cell phone carriers. My former carrier wants me back, and is offering me “special deals to come back”
    - The problem is that these so called special deals, are not special. In fact, they are worse than the deals a new subscriber would get walking off the street. 

• Locally, ASU is announcing huge budget cuts because the state is cutting some educational funding. They are dropping programs, loosing teachers, and making class sizes huge. 
    - The problem here is that ASU has raised tuition 233% in the last six years, and the ASU president makes $750k a year, plus $750K in bonuses. The average state school president makes $420k.  Seems to me they are whining and cutting the wrong things. ASU is a business after all. Maybe they should run it like one. 

 

Consumers are not a dumb as big companies think.

2 Comments »

  1. Another thing to look for is abused mutually exclusive associations. For example, “choose our product or go out of business”. This implies that “our product” will be the only thing keeping your business running. These marketing tools can be useful, but are often abused because of the marketer’s perception of public intelligence.

    Comment by Eric — January 23, 2009 @ 9:03 am
  2. i think qwest does that for business phone service. Too bad they are practically the only provider in most business locations.

    Comment by matt — January 23, 2009 @ 9:07 am

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