They Are Not Always Omnipotent

Social media as one of essential segments of digital marketing is lacking with medium effects. 

One of the perfect example to demonstrate this can be the classic American fashion brand Tommy Hilfiger (TH). TH is a mid-end brand in the United States, but it is a high-end brand in China with even more than double price. Why is this type of American brand able to sell their products in such high prices like entry luxury brands in China?

If you have opportunities to go shopping in China, you’ll find Tommy Hilfiger stores are usually located close to luxury stores like Gucci and Louis Vuitton. Luxury stores like Gucci will likely to deliver a message that TH is one of the homogeneous varieties with those luxury brands.  In other words, the information received by consumers is not only the advertising content output by the enterprise, but also the medium effect in the specific location which the related information is located.

The Whole World Is Getting ‘Smarter’

Internet has become one of the essential parts in our daily life.  As technology advances, more and more physical devices are connecting to the internet for the convenience of our every-day life, they are also called internet of things (IoT).

IoT in automotive industries is fast growing in recent years, currently there are smart phone apps available for connected vehicles to check its current condition.  The app will share the cars’ data to the manufacturer, the manufacturer will then analyse the data.  It can help workshops to ‘smartly’ determine each vehicle’s service needs and potential consumer interest.

Word of Mouth – The Neglected Factor in Marketing

Word of Mouth (WOM), being an essential part of our social lives, plays an important role in marketing.

People usually have blurred understanding to distinguish social media marketing and digital marketing, where WOM is the key factor that distinguishes them, as the intention of WOM is about sharing interests or a story to the audiences instead of directly selling products or services.

As we have seen, there was a virality Power Ball with $120 million Jackpot on February, 2022.

Celebrity Influencers – They Are Taking Advantage of You

Celebrities as influencers play an essential role in influencer marketing. Comparing to micro-influencers, they possess a larger fan base and stronger persuasive power as they are admired, trendy and recognisable. They can influence more people and facilitate powerful consumption on various social media platforms.

Due to celebrity endorsement, the target audience for brands that applies celebrity influencer tends to be hard-core fans, which contains strong brand loyalty and attachment.

The ‘Truth and Lie’ of Reviews and Ratings in Social Commerce

As we all know, there are reviews and rating for almost every industry on the internet to influence consumers’ decision making, and the most straight forward example should be the ratings and reviews on Google.

Imagine, when we are planning to go out for a dinner and deciding on which restaurant we should try, we usually go onto google and typed the key words of the cuisine we want, by then hundreds of recommendations will show up with a ranking of their ratings and reviews from highest to the bottom.