Writing a Essay; heavy marketing on game industry
I just had a good time writing about the topic: “All companies should heavily invest in advertising because high-quality advertising can sell almost any product or service.“
Using some knowledge I have about some gaming companies and how they market.
The text is pretty raw, and I had to leave behind key points about their business models.
While it is stated that companies should heavily invest in advertising, I disagree on that, given how innovative companies use the power of internet, mainly, social media in synergy with their costumer´s love for their products to build a solid brand, while companies focusing too much on advertising may forget quality and lose their core values.
Lets take a look at two gaming industry examples. Zynga, a company founded in April 2007, focusing social gaming platform over Facebook has built an evaluation of 20 billion dollars, July 2011. While Minecraft is a PC game made by a small company called Mojang, released it May 2009 has just reached 15 million registered users. Each copy of the game is priced 15 euros and also sell lots of shirts.
What does both companies have in common? A lot, from being focused on developing and distributing games over the web to the way they market. Word of mouth and social media are key words here! While not spending much money on heavy marketing, they could instead build great quality products, games that attracted love and wonder of many fans, that helped voluntarily spreading the game to their friends, and this chain-effect process go on, to points where the companies don´t have to flood the market or spend millions to advertising. The very core product is so attractive, it sells itself.
Building a good relationship to costumer has also played key role in these companies. Zynga have a large portion of their website dedicated to showcasing fans, and offering support for problems people find during their game experience. Mojang’s main founder, has a very strong profile in Twitter having half a million followers, keeping a strong attitude of answering most of the players relevant requests.
Whilst Electronic Arts is a for older company, follow the path of heavy marketing investment, their revenues, indicated by the stock market, have been stale for the last 3 years. Every time a new game is launched the budget for marketing is 2 times the value spent under development.
Concluding, this analysis focused some major players of the game industry, and how some companies could exponentially increase their market value through low cost social media, and another experienced company following the stated way of marketing failed to increase their profits.
References
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