{"id":2376,"date":"2012-05-20T03:44:05","date_gmt":"2012-05-20T08:44:05","guid":{"rendered":"http:\/\/www.bytebot.net\/blog\/?p=2376"},"modified":"2012-09-04T23:21:43","modified_gmt":"2012-09-05T04:21:43","slug":"advice-from-david-ogivly-about-group-buying","status":"publish","type":"post","link":"https:\/\/www.bytebot.net\/blog\/archives\/2012\/05\/20\/advice-from-david-ogivly-about-group-buying","title":{"rendered":"Advice from David Ogilvy about group buying"},"content":{"rendered":"<p><iframe src=\"http:\/\/rcm.amazon.com\/e\/cm?lt1=_blank&#038;bc1=000000&#038;IS2=1&#038;bg1=FFFFFF&#038;fc1=000000&#038;lc1=0000FF&#038;t=colincharles-20&#038;o=1&#038;p=8&#038;l=as4&#038;m=amazon&#038;f=ifr&#038;ref=ss_til&#038;asins=190491537X\" style=\"width:120px;height:240px;\" scrolling=\"no\" marginwidth=\"0\" marginheight=\"0\" frameborder=\"0\" align=\"left\" hspace=\"5\" vspace=\"5\"><\/iframe><\/p>\n<p>I just started reading\u00a0<a href=\"http:\/\/www.amazon.com\/gp\/product\/190491537X\/ref=as_li_ss_tl?ie=UTF8&#038;tag=colincharles-20&#038;linkCode=as2&#038;camp=1789&#038;creative=390957&#038;creativeASIN=190491537X\">Confessions of an Advertising Man<\/a><img decoding=\"async\" loading=\"lazy\" src=\"http:\/\/www.assoc-amazon.com\/e\/ir?t=colincharles-20&#038;l=as2&#038;o=1&#038;a=190491537X\" width=\"1\" height=\"1\" border=\"0\" alt=\"\" style=\"border:none !important; margin:0px !important;\" \/> by David Ogilvy of <a href=\"http:\/\/www.ogilvy.com\/\">Ogilvy<\/a> advertising fame. I&#8217;m about half way thru it and I think that if you&#8217;re in the advertising, media, or the digital\/social space, you should definitely read this brilliant book.<\/p>\n<p>He lists four problems that advertising faces, and I highlight excerpts of <strong>problem one<\/strong> (highlighting is my own):<\/p>\n<blockquote><p><em>The first problem is that manufacturers of package-goods products, which have always been the mainstay of advertising, are now spending twice as much on price-off deals as on advertising. They are buying volume by price discounting, instead of using advertising to build strong brands. <strong>Any damn fool can put on a price reduction, but it takes brains and perseverance to create a brand.<\/strong><\/p>\n<p>Listen to a speech I made in Chicago in 1955:<\/p>\n<p>&#8220;The time has come to sound an alarm, to warn manufacturers what is going to happen to their brands if they spend so much on deals that there is no money left for advertising to build their brand. <strong>Deals don&#8217;t build the kind of indestructible image which is the only thing that can make your brand part of the fabric of life.<\/strong>&#8221;<\/p>\n<p><a href=\"http:\/\/en.wikipedia.org\/wiki\/Andrew_S._C._Ehrenberg\">Andrew Ehrenberg<\/a> of the London Business School has one of the best brains in marketing today. <strong>He reports that a cut-price offer can induce people to try a brand, but they return to their habitual brands as if nothing had happened.<\/strong><\/p>\n<p><strong>Why are so many brand managers addicted to price-cutting deals? Because the people who employ them are only interested in next quarter&#8217;s profit.<\/strong> Why? Because they are more concerned with their stock options that the future of their company.<\/p>\n<p>Price-off deals are a drug. Ask a drug-addicted brand manager what happened to his share of the market after the delirium of the deal subsided. He will change the subject. Ask him if the deal increased his profit. Again he will change the subject.<br \/>\n<\/em><\/p><\/blockquote>\n<p>This was David Ogilvy talking about modern group buying sites in 1963.<\/p>\n<p>Yesterday I <a href=\"https:\/\/twitter.com\/#!\/bytebot\/status\/203713714740936705\">asked<\/a> on Twitter: <em>Do you run a restaurant? Have you succeeded in running a group buying deal? Have you seen return customers?<\/em> Comments like its <a href=\"https:\/\/twitter.com\/#!\/ShaolinTiger\/status\/203714191494873088\">a scam<\/a>, <a href=\"https:\/\/twitter.com\/#!\/alphaque\/status\/203714990140690432\">anyone that wants a cut price deal is unlikely to return for full price<\/a>, and even feedback from buyers <a href=\"https:\/\/twitter.com\/#!\/sapiensbryan\/status\/203714285866721280\">whom don&#8217;t return due to disappointing experiences<\/a> or how the <a href=\"https:\/\/twitter.com\/#!\/sapiensbryan\/status\/203714671709130753\">food just isn&#8217;t worth the full price<\/a>. I had some offline conversations about this and the ones that did return were basically already loyal customers saving money through a deal. <\/p>\n<p>My own thoughts about group buying have been posted before: <a href=\"http:\/\/www.bytebot.net\/blog\/archives\/2011\/07\/18\/a-groupon-before-you-close\">a Groupon before you close<\/a> looking at the deal dynamics behind a deal, and some <a href=\"http:\/\/www.bytebot.net\/blog\/archives\/2011\/02\/06\/thoughts-on-group-buying-sites\">initial thoughts when they first started becoming mainstream<\/a>.<\/p>\n<div class=\"sharedaddy sd-sharing-enabled\"><div class=\"robots-nocontent sd-block sd-social sd-social-icon-text sd-sharing\"><h3 class=\"sd-title\">Share this:<\/h3><div class=\"sd-content\"><ul><li class=\"share-email\"><a rel=\"nofollow noopener noreferrer\" data-shared=\"\" class=\"share-email sd-button share-icon\" href=\"mailto:?subject=%5BShared%20Post%5D%20Advice%20from%20David%20Ogilvy%20about%20group%20buying&body=https%3A%2F%2Fwww.bytebot.net%2Fblog%2Farchives%2F2012%2F05%2F20%2Fadvice-from-david-ogivly-about-group-buying&share=email\" target=\"_blank\" title=\"Click to email a link to a friend\" data-email-share-error-title=\"Do you have email set up?\" data-email-share-error-text=\"If you&#039;re having problems sharing via email, you might not have email set up for your browser. You may need to create a new email yourself.\" data-email-share-nonce=\"2933303068\" data-email-share-track-url=\"https:\/\/www.bytebot.net\/blog\/archives\/2012\/05\/20\/advice-from-david-ogivly-about-group-buying?share=email\"><span>Email<\/span><\/a><\/li><li class=\"share-facebook\"><a rel=\"nofollow noopener noreferrer\" data-shared=\"sharing-facebook-2376\" class=\"share-facebook sd-button share-icon\" href=\"https:\/\/www.bytebot.net\/blog\/archives\/2012\/05\/20\/advice-from-david-ogivly-about-group-buying?share=facebook\" target=\"_blank\" title=\"Click to share on Facebook\" ><span>Facebook<\/span><\/a><\/li><li class=\"share-linkedin\"><a rel=\"nofollow noopener noreferrer\" data-shared=\"sharing-linkedin-2376\" class=\"share-linkedin sd-button share-icon\" href=\"https:\/\/www.bytebot.net\/blog\/archives\/2012\/05\/20\/advice-from-david-ogivly-about-group-buying?share=linkedin\" target=\"_blank\" title=\"Click to share on LinkedIn\" ><span>LinkedIn<\/span><\/a><\/li><li class=\"share-twitter\"><a rel=\"nofollow noopener noreferrer\" data-shared=\"sharing-twitter-2376\" class=\"share-twitter sd-button share-icon\" href=\"https:\/\/www.bytebot.net\/blog\/archives\/2012\/05\/20\/advice-from-david-ogivly-about-group-buying?share=twitter\" target=\"_blank\" title=\"Click to share on Twitter\" ><span>Twitter<\/span><\/a><\/li><li class=\"share-end\"><\/li><\/ul><\/div><\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>I just started reading\u00a0Confessions of an Advertising Man by David Ogilvy of Ogilvy advertising fame. I&#8217;m about half way thru it and I think that if you&#8217;re in the advertising, media, or the digital\/social space, you should definitely read this brilliant book. He lists four problems that advertising faces, and I highlight excerpts of problem [&hellip;]<\/p>\n<div class=\"sharedaddy sd-sharing-enabled\"><div class=\"robots-nocontent sd-block sd-social sd-social-icon-text sd-sharing\"><h3 class=\"sd-title\">Share this:<\/h3><div class=\"sd-content\"><ul><li class=\"share-email\"><a rel=\"nofollow noopener noreferrer\" data-shared=\"\" class=\"share-email sd-button share-icon\" href=\"mailto:?subject=%5BShared%20Post%5D%20Advice%20from%20David%20Ogilvy%20about%20group%20buying&body=https%3A%2F%2Fwww.bytebot.net%2Fblog%2Farchives%2F2012%2F05%2F20%2Fadvice-from-david-ogivly-about-group-buying&share=email\" target=\"_blank\" title=\"Click to email a link to a friend\" data-email-share-error-title=\"Do you have email set up?\" data-email-share-error-text=\"If you&#039;re having problems sharing via email, you might not have email set up for your browser. You may need to create a new email yourself.\" data-email-share-nonce=\"2933303068\" data-email-share-track-url=\"https:\/\/www.bytebot.net\/blog\/archives\/2012\/05\/20\/advice-from-david-ogivly-about-group-buying?share=email\"><span>Email<\/span><\/a><\/li><li class=\"share-facebook\"><a rel=\"nofollow noopener noreferrer\" data-shared=\"sharing-facebook-2376\" class=\"share-facebook sd-button share-icon\" href=\"https:\/\/www.bytebot.net\/blog\/archives\/2012\/05\/20\/advice-from-david-ogivly-about-group-buying?share=facebook\" target=\"_blank\" title=\"Click to share on Facebook\" ><span>Facebook<\/span><\/a><\/li><li class=\"share-linkedin\"><a rel=\"nofollow noopener noreferrer\" data-shared=\"sharing-linkedin-2376\" class=\"share-linkedin sd-button share-icon\" href=\"https:\/\/www.bytebot.net\/blog\/archives\/2012\/05\/20\/advice-from-david-ogivly-about-group-buying?share=linkedin\" target=\"_blank\" title=\"Click to share on LinkedIn\" ><span>LinkedIn<\/span><\/a><\/li><li class=\"share-twitter\"><a rel=\"nofollow noopener noreferrer\" data-shared=\"sharing-twitter-2376\" class=\"share-twitter sd-button share-icon\" href=\"https:\/\/www.bytebot.net\/blog\/archives\/2012\/05\/20\/advice-from-david-ogivly-about-group-buying?share=twitter\" target=\"_blank\" title=\"Click to share on Twitter\" ><span>Twitter<\/span><\/a><\/li><li class=\"share-end\"><\/li><\/ul><\/div><\/div><\/div>","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true,"jetpack_social_options":[]},"categories":[25,1],"tags":[1237],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p4vJD-Ck","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":2566,"url":"https:\/\/www.bytebot.net\/blog\/archives\/2012\/11\/14\/group-buying-sites-their-false-advertising","url_meta":{"origin":2376,"position":0},"title":"Group buying sites &#038; their false advertising","date":"14\/11\/2012","format":false,"excerpt":"I just read that Coupang, in South Korea, has been fined for using false information by the Korean Fair Trade Commission to sell beef. What's amazing is that there was 117 million won (~USD$108,000) worth of beef sold at a 50% discount. The fine for false advertising, which is common\u2026","rel":"","context":"In &quot;Business&quot;","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1407,"url":"https:\/\/www.bytebot.net\/blog\/archives\/2009\/04\/04\/behind-the-scenes-advertising-and-pr-bloggers-and-integrity-making-money-while-being-honest","url_meta":{"origin":2376,"position":1},"title":"Behind the scenes: Advertising and PR, Bloggers and Integrity: Making Money, While Being Honest","date":"4\/4\/2009","format":false,"excerpt":"Today at BarCamp KL, I presented a brand new talk: Advertising and PR, Bloggers and Integrity: Making Money, While Being Honest. Advertising And PR, Bloggers And Integrity Making Money While Being HonestView more presentations from bytebot. The back story On April Fool's Day, I sent out a feeler to see\u2026","rel":"","context":"In &quot;General&quot;","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2441,"url":"https:\/\/www.bytebot.net\/blog\/archives\/2012\/08\/16\/zalora-malaysia-some-quick-thoughts","url_meta":{"origin":2376,"position":2},"title":"zalora malaysia: some quick thoughts","date":"16\/8\/2012","format":false,"excerpt":"I'm not your typical shopper, but I've worked with a tonne of e-commerce in my days. From shopping carts to getting the word out, I've probably got to start listing more down here.\u00a0 One of the first shopping malls in Malaysia to me was jipaban. The terms (for sellers) weren't\u2026","rel":"","context":"In &quot;Business&quot;","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2605,"url":"https:\/\/www.bytebot.net\/blog\/archives\/2012\/12\/02\/oracles-advertising-needs-to-be-more-truthful","url_meta":{"origin":2376,"position":3},"title":"Oracle&#8217;s advertising needs to be more truthful","date":"2\/12\/2012","format":false,"excerpt":"I've always wondered how Oracle was getting away with its rather mocking advertising. Usually seen on the front-page of the WSJ on a daily basis. Apparently, they're not. Taken January 14 2008, on the front page of the WSJ","rel":"","context":"In &quot;General&quot;","img":{"alt_text":"","src":"https:\/\/i0.wp.com\/farm3.staticflickr.com\/2208\/2194924083_14414ab9b5_n.jpg?resize=350%2C200","width":350,"height":200},"classes":[]},{"id":598,"url":"https:\/\/www.bytebot.net\/blog\/archives\/2007\/07\/30\/vice-advertising-moving-to-various-internet-mediums","url_meta":{"origin":2376,"position":4},"title":"Vice-advertising moving to various Internet mediums","date":"30\/7\/2007","format":false,"excerpt":"Brilliant. Alcohol-related advertising is hindered upon quite regularly. Then there's the problem of selling cigarettes. Vices are just finding it harder to advertise, and reach their prospective markets. Hence, I have got to commend Smirnoff. They pick up a bunch of \"A-list\" bloggers, invite them to a party (a launch\u2026","rel":"","context":"In &quot;General&quot;","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1620,"url":"https:\/\/www.bytebot.net\/blog\/archives\/2009\/12\/16\/churpchurp-alcohol-advertising-on-twitter","url_meta":{"origin":2376,"position":5},"title":"ChurpChurp alcohol advertising on Twitter","date":"16\/12\/2009","format":false,"excerpt":"While waiting for a meeting to start, I fired up Twitter, and I saw an interesting tweet from Niki Cheong promoting the Heineken Facebook application, which apparently allows you to \"plant trees, send greeting cards, and gives you tips on how to party!\". Of course, this isn't something Niki himself\u2026","rel":"","context":"In &quot;General&quot;","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.bytebot.net\/blog\/wp-json\/wp\/v2\/posts\/2376"}],"collection":[{"href":"https:\/\/www.bytebot.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bytebot.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bytebot.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bytebot.net\/blog\/wp-json\/wp\/v2\/comments?post=2376"}],"version-history":[{"count":4,"href":"https:\/\/www.bytebot.net\/blog\/wp-json\/wp\/v2\/posts\/2376\/revisions"}],"predecessor-version":[{"id":2464,"href":"https:\/\/www.bytebot.net\/blog\/wp-json\/wp\/v2\/posts\/2376\/revisions\/2464"}],"wp:attachment":[{"href":"https:\/\/www.bytebot.net\/blog\/wp-json\/wp\/v2\/media?parent=2376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bytebot.net\/blog\/wp-json\/wp\/v2\/categories?post=2376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bytebot.net\/blog\/wp-json\/wp\/v2\/tags?post=2376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}