Microsoft Marketing and Advertising

John Dvorak has a very good article commenting on Microsoft’s advertising. (See link below) His main point is Microsoft is only advertising for lowest price versus Apple. Microsoft doesn’t sell laptops, they sell software. This is a recipe for disaster. Low price means low margins. It also means low respect and lower profits.

I much preferred the ads with the kids and adults showcasing their talents on a PC. “I am a PC” was that slogan. It at least showed why you want a PC.

Not sure the advertising was working. Apple makes superior hardware with software that is convenient to use. Look at how easy it is to integrate your iPhone and iPod with your Mac. All these affordable apps make owning and synchronizing multiple machines easy so your time is productively spent.

Now Microsoft is no slouch in software. Apple is now able to make us of multi-core chips. Microsoft developed this capability with multi-core chips three years ago (more or less). Second the biggest U.S. gains in productivity came when businesses starting using Microsoft Windows machines with Office. How many businesses have not used this combination? Microsoft is still superior for large corporations. Their server and pc software is productive to manage for IT. They improve and service their customers well. Updates are ready regularly to keep your computer safe and sound.

Microsoft is not the greatest innovator for software. Others often came up with ideas how to use computors. Microsoft is the integrator of software supreme. Buy what you need, and Microsoft will take care of you. Really when you look at their marketing for many years they were leaps ahead of any competitors. Who else would a business work with?

When Microsoft focuses on business benefits and advantages for small pc owners and business they market successfully. What advantages? How about more programs for any purpose available. Why does Apple offer programs to mimic Windows? Because you can’t get everything for a Mac. My business card scanner is one application that won’t transfer to a Mac. In fact even though Apple offers compatible programs to Office, most small business owners will buy Office for the Mac just to make sure.

Let’s get back to your business. How are you Marketing and Advertising Your Business? Are you showcasing your advantages and benefits for your customers? Let’s focus on benefits. It is not you offer a product or service, it is how the customer benefits from buying your product or using your service. This is what you have to do for your marketing to succeed.

Also check out John Dvorak’s good article. Very good read.
Steve

Apple vs. marketing on 'best price'
http://www.marketwatch.com/story/apple-vs-marketing-on-best-price

The Bernanke Market

More commentary By ANDY KESSLER in the Wall Street Journal. Favorite line in the article: "But I think what really bothers the market is that the structural problems that got us into trouble in the first place still exist."

http://online.wsj.com/article/SB124762005061042587.html

Happy reading,
Steve

The Economy Is Even Worse Than You Think

An interesting analysis of the economy and commentary by MORTIMER ZUCKERMAN. My favorite line of the article: " So what kind of second-act stimulus should we look for? Something that might have a real multiplier effect, not a congressional wish list of pet programs. "

http://online.wsj.com/article/SB124753066246235811.html

Happy reading,
Steve

How About a Real Stimulus Plan?

Washington is now talking about another Stimulus Package. The problem is the current one has not spent the money necessary to stimulate the economy. Only 10% of the pork laden bill has been spent.

How many permanent jobs will the bill create anyway? Aren’t GAO estimates we are spending $600,000 per job created? You could give away money cheaper. Let’s not forget what this is going to cost us. Consumers eventually pay all taxes.

To create jobs we need to focus on manufacturing domestically. Businesses grow from creating real value. Services and finance grow from these bases.

Stop the Cap and Trade nonsense. It will export more jobs than create jobs. Climate change occurs naturally. Temperatures have not gone up in the last ten years. That disproves the theory that CO2 will increase temperature. Remember, temperature was much higher millions of years ago. Wasn't that the natural temperature we should go back to?

How about limiting litigation costs by capping awards? That would lower medical costs. Even better lower the costs of government regulations. Make filling out forms and information simpler for reporting. How about simplifying tax regulations so we can concentrate on serving customers?

For more jobs we need nuclear power and domestic oil production to lower our energy costs. I am okay with alternatives, but these are the lowest cost energy for transportation and electricity. What regulations have to change to allow investment?

Government building infrastructure is a worthwhile investment, but central governments do not respond quickly to needs. Government needs to be neutral to the market, or we export more jobs which slows the economy.

Let’s stop government from ruining our economy and stimulate real growth.
Steve

Advice from an Economist Who Saw 1929

Interesting article in Time commenting on the actions (stimulus) the government is taking. Good read.
Steve

http://www.time.com/time/business/article/0,8599,1909115,00.html?xid=rss-biztech-yahoo

Plastic Molders Predict Increasing Oil Prices and Report Market Conditions

Interesting report by Injection Molding magazine that covers a prediction the price of oil will be in the 90's or 100's again by the end of the year. Notable is the recommendation manufacturers convert to all electric molding machines to save energy costs.

It also reports every market using plastic injection is down except medical products. It is an interesting read on the economy by Lisa M. Pellegrino
Steve

http://www.plasticstoday.com/imm/articles/MEI0709

Oil falls for second week as demand worries return

This article comments on the falling demand versus the falling dollar. Oil is in an interesting position.
Steve

http://www.marketwatch.com/story/oil-extends-rise-above-70-in-asia-trade

Maxwell: Oil Price Forecast

Energy expert Charles Maxwell notes that because of the recession, oil supply and demand are in balance, but down the road there will not be enough supply.

http://www.moneyshow.com/video/video.asp?wid=4022&t=3&scode=009597

My conclusion, there will be more demand for domestic and international drilling starting in 2012. This may hurt President Obama's reelection campaign since the energy policy has been discouraging more drilling.
Steve

Adapt to Change – or You May Be Left Behind

Laura Rowley has a good article on change. The best advice comes from a company with 50 years of growth. Listen to the customers. Change when the customer needs something.
Listen. Change. Two actions for us to take today.

Read the article here on Yahoo Finance:
http://finance.yahoo.com/expert/article/moneyhappy/171226

Are Oil Prices Going to Continue to Rise?

Friday the market price closed at $72.25 per barrel. The price of a barrel of oil has increase 17% in the last month. Four months ago the price per barrel was around $36. Here in California, gas prices have zoomed from $2.25 per gallon to $2.85 per gallon. Just in time for the driving summer season. What is happening?

First of all, oil went too high when it zoomed past $100 to $147 per barrel. There was no economic justification for oil going up so high. Speculators drove the market too high has everyone had to buy oil to make some money. When everyone is buying the same thing, you are nearing the peak price.

Oil usage dropped rapidly as gas cost over $4 per gallon. Mileage driven went down as people drove less, bought better mileage cars or took the public transit. This is a permanent change in behavior, and lowered usage more. Of course oil supplies rose. Then the price per barrel over-corrected into the 30’s. This happened despite cuts in production by OPEC. Demand fell faster due to a global recession.

But there are multiple situations affecting price. Developing countries like China and India are buying more cars. Oil stocks have fallen to normal levels. Bio-fuels have risen to be roughly 6% of consumption. Politically the Obama administration is not supporting drilling more oil domestically. Lower prices let that slide by without much political pressure, but I expect that to be a mistake as usage will increase worldwide. The energy alternatives for the green energy do not replace oil however. They generate electricity.

OPEC desires stability. They realize now too high of prices can stall the global economy reducing demand which ruins their economies. They recently increased production about 0.5% to stabilize demand.

So what is driving the price increases? The amount of money the government is borrowing and the policies of the treasury to fight the recession. The dollar is under pressure due to the debt levels and the value of the dollar will fall as the economy recovers. The Chinese and OPEC are looking to protect themselves by diversifying away from the dollar.

So what is my prediction? Oil will stay in the $50 - $80 range this year. Expect this bubble to deflate a bit by August. $3 per gallon gas is too big of a drag on the US economy to help the global economy recover. Second this should be a slow economic recovery. Oil usage is starting at a lower consumption rate for 2009 and 2010.

Long term the falling value of the dollar will be inflationary. US energy policies with global warming taxes will hurt energy independence for the next ten years. It will be cheaper to import oil than produce it domestically. Unless an energy break through occurs, expect oil prices to rise in the years 2011 - 2013.
Steve Amos