Wednesday, July 7, 2010

Marketing Japan: Is the Long Tail all Junk?

By Mike in Tokyo Rogers

After reading my "Primer on the Long Tail" where I explained what the Long Tail really is, one kind reader wrote to me claiming that most of the stuff (products, services and merchandise) on the Long Tail is "crap" and claimed that the proof in this lay in the fact that the average product in the Long Tail doesn't sell well. This, he claimed, is logical because he reasoned that it doesn't sell well because the average person doesn't want to buy it. So, in his reasoning, if the average person doesn't like it, then it hasn't mass appeal; If it hasn't mass appeal then it doesn't sell well so it must not be "good."

He claimed that sales are the ultimate determining factor in deciding whether or not something is "Good" or "Bad."


Is this pile of junk the Top 40 Charts or the Long Tail? You decide!

Well, I won't go into the subjectiveness of "Good" or "Bad" as what I think is good you might not like or vice-versa (or what is an "average person" - I like to think that I am not average and I hope most people realize that they are special too!) But the idea that one person's "Good" translates into "Everyone's Good" is, I believe, a little bit too simplistic so, I think you will have to find someone more intelligent than I to debate that point with you. But! I will show you how, without a doubt, for many smart companies who are doing intelligent business in Japan, the Long Tail provides them with better sales, profits and opportunities than the "hit" products. And I will prove to you, once again without a doubt that, when it comes to quality, what the the "average person" buys can often be a poor indicator of quality.

Popular and best selling? Yes. Quality? No comment (not from me at least).

The evidence of the booming business that the Long Tail offers on the Internet is all around, but even with that, some people refuse to see it, so I'll make some simple examples today.

Like I said, sure there is a lot of junk on the Long Tail, but there's a lot of junk at the top of the best seller list too. Would anyone argue that there's not a lot of crap on the, say, hit charts of popular music too?

Whether something sells well or not, is not completely a measure of it being "Good" or "Bad"; it is also a a factor in whether or not something was promoted or marketed well. It has to do with distribution problems and whether or not there was enough shelf space for it in a brick and mortar store.

I disagree that sales, in and of themselves, is a measure of "Good" or "Bad" and, once again, would like to point out what Chris Anderson wrote in The Long Tail to support my arguments. On page 118 it says,

"...for many people, the best stuff is in the Tail. If you're interested in Audiophile stereo equipment, the finest equipment is not going to be among the best sellers at Best Buy."

Think about that, that's exactly right. The best stereo equipment in the world would never be a top ten seller at a discount electronics shop or at K-Mart. Those places sell cheap boom-boxes imported from Asia. The best equipment would have to come from a specialist shop. I doubt that the average person is spending over ten or twenty thousand dollars for the world's best component stereo equipment. I won't argue that the average person is scooping up the compact, battery powered, CD, cassette, radio made in China that K-Mart has marked down to $8.99 for after Christmas clearance.

No arguments there. K-Mart also sells a guitar for $24.99 too... But I think you'd have a very hard time finding a professional quality Gibson or Fender for that low, low price - holiday clearance or not (OK, well, perhaps during the coming of the Four Horsemen of the Apocalyse!)

OK. I think anyone would agree with me on the examples above. Yes?


Now, I'd like to point out that, when done correctly, a company in the year 2010 and beyond can sell and profit more through exploitation of the Long Tail and products residing in the Long Tail market more than they can by just selling hit products.

Because the Long Tail offers a virtually unending source of goods, then niche marketing can find the perfect product to fit exactly what the customer wants... Not so with a brick and mortar store! Think about this: How many times have you gone to the store to buy something but couldn't find exactly what you wanted, so you settled on the next best thing? I know I have many times.

This should never happen with Long Tail retailers.... You search for what you want; find other customer reviews and recommendations, and order the best product to fit your needs. Not a product that is the least of two evils.


A good case in point how this niche marketing can be hugely profitable is Rhino Records. When I was a student in California in the late 1970's, I used to go to Rhino Records store in West Los Angeles. It seems to me that they had two shops at that time. I thought Rhino Records was dirty and dingy but I also thought it was cool as they sold 60's music as well as the local underground Punk bands too.

Rhino built a strong and loyal niche in that market for the Punk Music, underground, and 1960's psychedelia.... The story would have ended there, but they later made a deal with Capitol Records where they would remaster old Capitol back catalogue and re release it under the Rhino name. From that one deal, Rhino Records became a force to be reckoned with in the music industry.

Rhino Records didn't release big selling artists nor Top 40, yet they became one of the most respected and profitable record labels in the United States. They got that way by being cool and having street credibility. Credibility is hard to get, it is even harder to buy. Rhino got it by sticking to their guns and only marketing to a niche audience... A niche audience who, by the way, were sick of the big stars and the top sellers.

And all from releasing old material and back catalogue.

There is a huge opportunity for all of us in the Long Tail. The Long Tail, like Punk Rock in the 1970's, is taking the market out of the hands of the big corporations and bringing it back to the people.

And that is a key factor here: The Internet is bringing back business into the hands of the people; whether it be a small businessman promoting his company through blogs and blogging, video blogs (vlogs), Social Media and networking sites like Facebook, Linkedin or Mixi; to the housewife who has started a business out of her home utilizing Pick, Twitter, YouTube or U-Stream to freely promote herself and her business, the Internet has opened up an entirely new world to all of us.  

The Long Tail has lots of junk to be sure; but one man's trash is another man's treasure and, on top of that - say in the case of a record store  - the Long Tail has millions and millions of titles whereas the local record store has how many? A few thousand?

So, where do you want to shop? The Long Tail businesses that have these millions of items  - and the list keeps growing longer day by day - that are easy to find at the tips of your fingers from the comfort of your own home, or do you want to have to get up and travel to the brick and mortar shop that only sells a limited number of items in the hopes that they might have what is merely acceptable to you?

Your choice.

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Keywords: Pick, Networking sites, Capitol Records, YouTube, Linkedin, Blogs, Facebook, Popular music, Networking, Long Tail, hit charts, Rhino Records, vlogs, business, big corporations, Mike Rogers, Chris Anderson, the Long Tail, small businessman, Mixi, China, smart companies, Twitter, U-Stream, video blogs, Top 40, Mike in Tokyo Rogers, Marketing Japan, smart business, Social Media, Internet, blogging, best seller, Punk Rock,

Tuesday, July 6, 2010

Marketing Japan: George Williams Lands NHK Educational Show....

Once again, George Williams lands another major program on the prestigious NHK Educational Channel 3 here in Japan.
The programs is a song and dance show for children and they really wanted George. The show starts August 29,  2010, every Sunday, and airs from 5:50 pm ~ 6:00 pm.
Congratulations George Williams!
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Keywords: NHK, George Williams, Channel 3, Japan, Educational Channel

Monday, July 5, 2010

Marketing Japan: No Medium Can Survive the Indifference of 25-year-olds...







By Mike Rogers
After talking to a very interesting fellow named Roger Marshall from Odgers Berndtson on the phone this morning, and after reading the article I want to introduce today, I was inspired to quickly write up this short blog. Hope you find it interesting and useful.

There is a great article in the Guardian UK today. It is mostly about online newspapers charging for services in a scheme called, Paywall, that Internet Guru Clay Shirky says is doomed to fail (You won't find me disagreeing with him). It's an excellent article and I strongly suggest that any read it.

Most people will not have heard of Clay Shirky but he is recognized as one of the world's top experts of Social Media.


But there is one part in the article that struck a chord with me. This one part should strike fear in the hearts of anyone who is working in the old media. It says;

...if you are 25 or younger, you're probably already reading this (article) on your computer screen. "And to put it in one bleak sentence, no medium has ever survived the indifference of 25-year-olds."

I found this particular point quite useful and timely as, if you read my last blog about the Long Tail, you'd know that I am now in discussions with one of the larger satellite TV stations as to what to do about their admittedly bleak future.

In the case of this music TV channel even they know that 20-year-olds today;

1) Do not pay for subscription TV (their parents do - and it's probably part of a package anyway). The 20-year-olds do not have the habit or thinking that they need to pay for music TV.

2) When 20-year-olds want to see their favorite new band's video, they won't wait through 20 other videos that they don't like in the slim hopes to see the one that they do like. They will just click on YouTube and see what they want, for free, right now.

The TV station people understand this. Yet they are stuck in a sort of denial and they hope that things will get better... 

Sorry folks, but I have found that "hope" is usually not a very good business plan.  Funny that.

The other interesting thing the TV station people have all said to me when I asked them, "Why do young people watch your TV channel?" They almost all invariably answered, "I think they search the Internet using Google Search or Yahoo for an artist that they like, then they turn on our TV channel..."

So, dear reader, bear with me for a second as I get this straight in my own head... 

Let's see.......A guy or girl goes on the Internet to find the music that they like... They do! Then the TV station people think that the young person, after finding what they like on the Internet, is going to turn off the Internet and turn on the TV and watch their channel!?.... 

What in the world are these people thinking!?

Yes. I found their thought processes quite amusing also. But it just goes to show the depths of denial that some of our good friends are in. And, don't forget, most of these kind people that we must convince are coming from a far different point-of-view than we are. They come from inside their companies, we come from outside...

It is often far easier to understand something like, say, one's own country when they are on the outside looking in. 

We need to convince our friends in old media, and in other businesses in general, how they can increase their business and protect their jobs (families too!) by opening up their minds to the possibilities that the Internet can offer them. We need to show them that the Internet is not a threat.

Clay Shirky Cognitive Surplus

In Japan, the opportunities are everywhere. Most companies seem to be running their web pages as a sort of company directory instead of a branch of a business that turns a profit by itself. From what I see today, 92% of the corporate web pages are still Web 1.0. So, opportunities abound!  

The companies that do embrace this new way of thinking will have a much better chance of survival and could even prosper.

I won't go into more about the article in the Guardian, but will say that I think you should read it. If you need ammo in convincing someone that they need to wake up and start acting, then it could help. 

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Keywords: Guardian, old media, Odgers BerndtsonClay Shirky, Satellite TV, Internet, Google Search, Mike in Tokyo Rogers, Paywall, Social Media, Japan, business, music TV, Yahoo, Google, online, newspapers, Roger Marshall, 





 
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