PRICE Marketing designed for the
interactive generation Outside the Box
INSIDE THIS ISSUE: Intro   Guest Column   Ask The Expert   The Top 20 Videogames
Joe Cerbo
August, 2005
I Knew I Wasn’t Alone!
It became very obvious to me after last month’s e-newsletter went out that a lot of you agree with my opinions and frustrations regarding professional courtesy and how tough it is to get someone to call you back these days.

I received an overwhelmingly positive response!

I was fairly confident that I would hear from people who are in sales, but I was surprised to find that product managers don’t hear back from their vendors, PR professionals get no love from the media, and marketing executives sometimes hit a brick wall inside their own companies.

I’m glad that my commentary on the subject struck such a chord with our readers. It’s funny how I now get a quicker response (or, for that matter, any response at all) from people who were previously slow to respond to an e-mail or to return a call.

I’m not naïve enough to think that this will last, but I’m enjoying it while it does.

In this month’s issue, Felix DiMartino from Belmont Sales shares a funny story about how abbreviations can sometimes be very confusing to the young and old alike. And David Kandasamy of SearchRev offers his expert advice on where you should spend your money online.

As always, I hope that you enjoy this month’s issue of “Outside The Box” and please, keep your feedback and suggestions coming. I enjoy hearing from you.

Until next time …

Joe Cerbo
President
PRICE

Felix DiMartino
A Valuable Lesson Learned
— By Felix DiMartino, president, Belmont Sales, Inc.
It’s not often that the videogames industry gets to hear a marketing point-of-view from a manufacturer’s rep’s perspective … but I’d like to share with you a very valuable lesson I learned about 30 years ago …

Did it ever occur to you just how many abbreviations we use during our daily communications? Abbreviations have become a normal part of our grammar. In only a few minutes I was able to list over 50 … I’m sure you can think of many, many more besides these:

PS2, IEMA, E3, GS, EB, XB, GBA, ESRB, RE4, PSP, DS, THQ, O3, EA, .com, www, PC, RP, GTA, MMX, FYE, ESA, VJ, MMORPG, TRU, CPU, GC, MHz, MTV, 360, WWE, IGN, RYL, T, E, M, DOA, MTV, VH1, DSL, USB, CD, DVD, DDR, VHS, HDTV, SD, MIDI, 3D, FPS, SKU, UPC, EDI, RAM, ROM … the list is practically endless. (Were you able to identify them all?) Just last week. I sent an e-mail to someone that read, “We reviewed everything with EB and O3 at E3.”

So what’s my point, you might ask?

The lesson I learned happened on my very first day of work as a radio salesman for Alexander’s Department Store in the Bronx. Expecting large crowds, we were all asked to arrive early so we could pre-write sales receipts for our very exciting promotion. Alexander’s was the first retailer in the area to offer an AM/FM (7-transistor) pocket radio for $9.99!

The doors opened and the crowds rushed in. My very first customer was a petite, elderly lady who handed me her old pocket radio and asked me to explain the differences between hers and the unit on sale. I pointed out some obvious differences.

“The new model is smaller than yours,” I explained. “It also operates on a 9-V battery, which has a longer life. However, the biggest and most important difference is that your radio is only AM but the one on sale is AM and FM!” At that point she looked up at me, and, almost in tears, she gasped, “Thank you for changing my life!” Totally confused, I asked her to explain.

Click here for complete article.

Ask The Expert
Send your marketing-related questions to our experts.

Q: “I’ve just been given a budget for online marketing. Our company has never done any kind of online marketing in the past and, frankly, I’m not sure where to spend the money. I’ve been told not to waste time on banner ads and to spend the money on “search advertising.” What do you think?”

A: David Kandasamy, VP and CTO at Palo Alto, CA-based SearchRev, which specializes in “search engine keyword advertising,” responds: “Advertising is perhaps the most effective way to utilize an online marketing budget. A recent Nielsen study found that, of the 74% of Internet users who conduct searches, 55% clicked on paid search results.

“With ‘search advertising,’ the marketer has the potential to dramatically influence the behavior of the buyer, as the advertiser can tailor its message to the specific terms the buyer is actively searching.

“In addition, ‘search advertising’ offers many benefits as a marketing tool, including:

  • Conversion-tracking capabilities. Measure the ROI or cost per order per keyword and adjust your bids to meet your campaign goals.
  • A high level of consumer targeting. Content targeting is obvious, but geographical and language targeting are also available.
  • Active consumer participation. Searching is a ‘lean forward’ activity as opposed to watching TV or listening to radio. The user has explicitly signaled an interest in the subject by conducting the search. Your ad can be the result they’re actually searching for versus having to use distraction to make someone click on a banner ad.
“Google and Yahoo offer self-service tools for building campaigns and quantifying results. There are also many qualified professionals available to help with your campaigns. You should consider seeking them out if/when your monthly spend gets to about $5,000.”

NPD Group
The Top 20 Videogames: June 2005
An Analyst’s Thoughts On How Creative Marketing Led To Their Success

Billy Pidgeon, founder and senior analyst with Manhattan-based Go Play Research, weighs in exclusively for “Outside The Box” readers on some of the marketing strategies that kept “Pokemon Emerald” high on NPD’s Top 20 Videogame List in June, although it slipped a bit from #1 to #2.

Meanwhile, the Top 20 was again dominated by games based on franchises and licensed properties that helped push software sales to an increase of over 25% year over year.

Nintendo offered limited edition collectors’ tins and exclusive Internet info and access to a Pokemon tournament to sweeten pre-orders for “Pokemon Emerald” GBA. Despite the fact that the game combined elements from previous versions — Ruby and Sapphire —Emerald sold strongly in May (#1) and June (#2). The continued success of the Pokemon cartoon series and the May 9th release of the Emerald card series surely added to momentum.

Speaking of momentum, the marketing blitz accompanying the motion picture event that is “Star Wars Episode III: Revenge of the Sith” translated into chart tenure for LucasArts and fueled success for “Lego Star Wars” licensee Eidos Interactive as well. LucasArts’ official game was propelled by game trailers on Virgin Airways flights and the inclusion of clips from the film prior to the theatrical release as well as the aggressive use of the Star Wars license in most product sectors.


TOP 20 VIDEO GAME TITLES
RANKED BY TOTAL U.S. UNITS
June, 2005

Last Month Rank Title Platform Publisher Release Date ARP
** 1 GRAND THEFT AUTO: SAN ANDREAS XBX TAKE 2 INTERACTIVE JUNE ‘05 $50
1 2 POKEMON EMERALD GBA NINTENDEO OF AMERICA APR ‘05 $35
2 3 STAR WARS EPISODE III: REVENGE OF THE SITH PS2 LUCASARTS MAY ‘05 $50
** 4 MEDAL OF HONOR: EUROPEAN ASSAULT PS2 ELECTRONIC ARTS JUNE ‘05 $40
** 5 CONKER: LIVE AND RELOADED XBX MICROSOFT JUNE ‘05 $50
6 6 LEGO STAR WARS PS2 EIDOS INTERACTIVE MAR ‘05 $40
** 7 MADAGASCAR PS2 ACTIVISION MAY ‘05 $39
** 8 MADAGASCAR GBA ACTIVISION MAY ‘05 $28
5 9 MIDNIGHT CLUB 3: DUB EDITION PS2 TAKE 2 INTERACTIVE APR ‘05 $48
** 10 DESTROY ALL HUMANS! PS2 THQ JUNE ‘05 $50
3 11 STAR WARS EPISODE III: REVENGE OF THE SITH XBX LUCASARTS MAY ‘05 $50
** 12 DESTROY ALL HUMANS! XBX THQ JUNE ‘05 $50
** 13 MEDAL OF HONOR: EUROPEAN ASSAULT XBX ELECTRONIC ARTS JUNE ‘05 $40
16 14 FIRE EMBLEM: THE SACRED STONES GBA NINTENDO OF AMERICA MAY ‘05 $31
9 15 MVP BASEBALL 2005 PS2 ELECTRONIC ARTS FEB ‘05 $30
** 16 BATMAN BEGINS PS2 ELECTRONIC ARTS JUNE ‘05 $39
7 17 STAR WARS EPISODE III: REVENGE OF THE SITH GBA UBISOFT MAY ‘05 $30
** 18 KIRBY: CANVAS CURSE NDS NINTENDO OF AMERICA JUNE ‘05 $35
11 19 LEGO STAR WARS XBX EIDOS INTERACTIVE APR ‘05 $40
4 20 FORZA MOTORSPORT XBX MICROSOFT MAY ‘05 $48
* Includes Limited & Collector’s Editions
** Not in Top 20 in previous month

Source: The NPD Group / NPD Funworld / Point-of-Sale
David Riley 516-625-2277




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