VIN TON WROTE:
> Can a successful ad campaign and, or brand create
> a significant barrier to entry? And how to do so
> successfully? This post is regarding to the
> explanations from dot.com companies trying to
> justify the exorbitant amounts of capital devoted
> to advertising both on and off line.
TO WHICH ROB FRANKEL REPLIED:
> Sure, happens all the time. It's called fear-driven
> marketing and works by suggesting that if you use any
> other brand, you're in deep yogurt. Fedex, for
> example, has thrived for decades on the fear of
> allowing a less qualified service screw up delivery of
> your critically important packages.
I think it is quite limiting to suggest that only when
fear driven marketing is applied can a brand serve as a
barrier to entry.
Amazon.com's brand has become a strong barrier to entry
because they created and own the category of "online
books.", it had nothing to do with fear.
eBay did the same for "online auctions" and Yahoo! did
the same for "search engines". Again, no fear was used
in any of these cases. If anything, when Amazon first
launched its online presence, the fear factor worked
against Amazon's favor and in the favor of the brick
and mortars, like B&N.
Consumer fears of Amazon included:
- stolen credit cards
- misshipments
- late shipments
- defective products
- return hassles
> They began with "when it absolutely, positively
> has to be there overnight" and continue with
> "Be absolutely sure".
Fed-ex created and owns the category of "overnight
delivery service." That is why there is no other
choice. If I want world wide service I think of DHL.
This is changing and blurring but that is what
categories each company has been in.
James Santagata
Received on Fri Mar 17 2000 - 09:38:23 CST
