Monthly Archives: September 2012

IPhone 5 Could Account for 0.33% of GDP Growth on Q4-2012

According to Michael Feroli, J.P. Morgan’s chief economist, sales of the new Apple phone can contribute quarter and half a percentage point to annualized economic growth in the fourth quarter.

J.P. Morgan’s analysts project sales of 8 million iPhone units during the last 3 months of the year. If you do the math, at a $400 sell price after accounting for deductions, it is a 3.2 billion boost to the GDP on the fourth quarter. That figure can be larger if more units are sold.

Economists that believe on a free market economy get a point here. High demand and low supply will keep prices high and the equilibrium point provides such a great margin that it will contribute to the growth of the GDP. The Congress, the White House, or the Federal Reserve have not been able to achieve this goal. However, a product with great features and ease of use may manage it.

My take on this is that if more marketers and companies that create and manufacture products for mass consumption focus on creating value and quality for the consumers, we would have a better economy. Read more on this subject at the Wall Street Journal


TV Advertising To Students Most Effective; Email Best Reach

While reviewing the findings of a recent article from MediaPost’s Research Brief with highlights of a proprietary 2012 College Marketing Report from the Barnes & Noble College Marketing Division, I was surprised to learn that e-mail is one of the methods providing the most reach among college students. Key finding are listed below.

 Best Way To Reach College Students by Company or Brand (% of Respondents)
 Medium                       % of Respondents
 Email                        20%
 TV commercial                19
 Coupon                       14
 Facebook ad                  9
 On-campus WOM                9
 Social coupon                8
 Print ad                     8
 Website ad                   5
 Radio commercial             4
 Texting campaign             3
 Source: Barnes & Noble College Marketing, September 2012

Significant findings from the 2012 College Marketing Report include:
• Although Internet and social media usage is strong among college students, 42% still say TV ads are the most effective form of advertising
• 65% of college students engage with brands via social media at least weekly, primarily on Facebook, and a third do so at least three times a day. However, 55% do not think Facebook is a good place for brands to advertise to them
• Students are most motivated by brand loyalty as a key driver of social engagement (26%), but also love a good coupon offer (26%) or fun contest (19%)
• 61percent do not believe a text message campaign is a good way for a brand to connect with them. Further, 58% of students view the majority of their emails on their laptops
• 59% of respondents say friends have the biggest influence on their purchasing decisions, both online and off
• 63% of students never scan QR codes located on ads
• 68% of college students would be interested in becoming an on-campus student brand ambassador, while half of students would like brand ambassadors to help during move-in
• 70% of students say they’re more likely to buy from a brand that supports a charitable cause and 63% are willing to spend more on products tied to a charity

Read more.


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