Sunday, January 23, 2011

Starbucks Mobile Payment


Starbucks on Wednesday launched a mobile payment system . Now you can pay at Starbucks with a mobile app that displays a matrix barcode (or two dimensional code) for your orders. Starbucks card mobile lets users add their Starbucks cards, Track rewards, and reload cards as needed via PayPal or a credit card.



The app is free to download; once the Starbucks mobile card app loads onto your phone and the download is complete, users may enter their card number and their device will display a barcode they can use as their Starbucks card to make purchases at the register’ dedicated QR barcode scanner allowing the customer make swift and easy payments. However, it's actually no different from putting a 2D barcode on the physical Starbuck card itself. Starbucks card mobile app will be used to pay for their coffee, pastries and other stuff at starbuck’s 6,800 stores and 1,000 Starbucks locations in target stores. Currently the app is available for Blackberry, iPhone & iPod touch. They are currently working on an app for Android and Windows users.


This has left me wondering what would happen if you expose your credit cards info or barcode images to hackers. Also imagine if someone takes your phone for a minute and takes a camera shot of your barcode image, this person can end up buying cafĂ© vanilla frappachinos for everyone at Starbucks for free. What would happen if you can’t buy coffee for yourself because your battery is drained or phone is stolen. These are the issues i'm worried about.








http://www.b2cmarketinginsider.com/mobile-apps/starbucks-now-offering-mobile-payments-via-new-free-starbucks-smartphone-app-09771

http://finance.yahoo.com/news/Mobile-Payment-Debuts-bw-1926630830.html?x=0&.v=1

http://starbucksgossip.typepad.com/

Sunday, January 9, 2011

Marketing : Nothing draws a crowd like a crowd !!!: Music Piracy

Marketing : Nothing draws a crowd like a crowd !!!: Music Piracy

Music Piracy





Music piracy is the illegal distribution of copies of sound recordings on physical carriers without the permission of the owner. It is also known as “stealing” of music. A typical example would be borrowing a friend's CD and burning a copy for yourself. Also, downloading music from the Internet if the song's royalties are not paid for.
The word “music piracy" sounds funny it makes me think of Somalian rebels on speed boats with AK47 rifles chasing Justin Bieber's yacht trying to steal his cd's. There is definitely nothing anyone can do to stop music piracy right now. There will always be ways around it no matter what legislation is brought in. It’s an almost impossible thing to control because this has become a global problem.


Here is a Possible Solution
Although I know that this can never happen, I would offer a simple possible solution for the music industry on how to curb music piracy. The Prospect of music should accept file sharing and try to monetize it vs. attacking it. Let’s assume file sharing is made legal, not in a way that enables illegal activity but in a way the music labels can accept new concepts & ideas of how music can reach a fan.Now the answer lies with the ISPs. If the music labels or copyright holders could actually acknowledge some sort of model with the ISPs it could be innovative. There will be software’s that charge these ISPs every time a person shares a music file. The more a person shares the more of a boomerang they get from these labels. Therefore increasing music sharing while having a monetized model would be flawless but I really doubt any major label is ready to embrace these new ideas.

Sunday, December 12, 2010

Federal Trade Commision & Online Privacy Issues

The Internet has become  the major hub for  information and communication, with different types of new networking platforms being developed . Social media sites like Facebook, MySpace, LinkedIn, and  Twitter are now playing vital roles in a lot of people's day to day  lives. Thereby making  online privacy issues a critical problem today.

 So how can you use the internet and not worry about online privacy problems?
 I would suggest before signing with any social network site always read its conditional terms and privacy policy. Although reading these terms, conditions and privacy policy could be so long , you could find a summarized version just by using Google or bing. Doing this will inform you if your private information is safe or not safe.
Every time you upload your personal information such as full birth date, street address pictures, schools attended, work place and phone number to your profile online, always bear in mind that this can be viewed by anyone in any part of the world. The idea of uploading your funny pictures, party pictures, adventurous pictures unto MySpace or Facebook might not be a good idea. Why because,
(1) Anyone can go online (and potentially access your information): your family, your friends, your colleagues, your potential employers... and total strangers! Consider the Web as a public place
(2) Identity theft is made easier for identity thieves just by telling what kind of person you are

So What is Online behavioral marketing? 
This is basically tracking the activities of customers online, activities such as what website he/she loves to shop, what airlines he or she travels with, what rental services they use, what music they play frequently etc thus allowing businesses to deliver direct advertisement that suits their interests. they working mechanism behind this is by using cookies, these cookies are small text files with a unique ID tag that is saved on your computer's web browser whenever you visit a website. Those cookies are now used to monitor frequent visits to websites, track how much time is spent on the websites etc.
There are other monitoring tools marketers use such as web-bug. Web bugs  are used in conjunction with computer cookies to build profiles of  a person's web surfing habits, keeping a running log of sites  the person has visited  with contents of the pages viewed. Surfing profiles can span days, weeks, months and even years. These Direct marketing techniques like surveys requesting a user for  account information could also be used for future transactions which is  not uncommon. Signing up for online services, e-mail, instant messaging, personal websites, blogs etc.  Consumers signing up for all these make themselves vulnerable and their personal information susceptible to being used by these online customer information trackers.


Some Useful Preventive Measures 









1.    Always Keep your computer’s software patched and up-to-date. Make sure you do all relevant security updates and keep your anti-virus up to date.
2.     Only download updates from reputable sources
3.     Always think before you install anything, weigh the risks and benefits, and be aware of the fine print. Do not install anything from a website that doesn’t look legitimate and be aware of your internet surroundings
4.    Installing  spywares and using firewalls
6.    Prevention is always better than cure; do your best to protect your system from vulnerabilities and don't open yourself up to malware.

Being aware of how  internet marketers, and advertisers siphon personal info out of social networks like Facebook (data mining) through  the use of Third  party apps and ads. and also  know the extent of how  sophisticated hackers and criminals who know how to manipulate any social media sites like MySpace, Twitter, Facebook, or any other social networking apps can come up with in the way of privacy protection. 

Well I  have chosen to never post anything online that is truly "private & personal"  . I never  use third  party applications. I hardly visit  gaming sites, free download sites, peer-to-peer etc. I don't  click on everything I see. For example: I never click adverts on any blog or on social networking sites. 

My best advice is that if you don’t want your personal and private information to be either shared or siphoned out of your social networking accounts then don’t post it. Don't use the third party applications. Don't click the ads and don't play online games.

The Federal Trade Commission (FTC) Proposing an Online Behavioral Advertising Privacy Principles
The purpose of this proposal is to encourage more meaningful and enforceable self-regulation to address the privacy concerns raised with respect to behavioral advertising. The proposal states that behavioral advertising provides benefits to consumers in the form of free content and personalized advertising but notes that this practice is largely invisible and unknown to consumers. 
FTC proposes:
1. Every Web site where data is collected for behavioral advertising should provide a clear, consumer-friendly, and prominent statement that data is being collected to provide ads targeted to the consumer and give consumers the ability to choose whether or not to have their information collected for such purpose
2. Any company that collects or stores consumer data for behavioral advertising should provide reasonable security for that data and should retain data only as long as is necessary to fulfill a legitimate business or law enforcement need. 
3. Companies should obtain affirmative express consent from affected consumers before using data in a manner materially different from promises the company made when it collected the data.
4. Companies should only collect sensitive data for behavioral advertising if they obtain affirmative express consent from the consumer to receive such advertising.



Useful links

Sunday, December 5, 2010

Groupon/Google Deal Gone Sour



Groupon is basically a group buying website where huge discounts are offered on deals in specific cities, deals such as 50% off local goods, services or even 50% off a stated meal at a popular local restaurant. The idea behind Groupon is simple, they provide deals to their prospective shoppers that allow them to buy merchandise and services at a significant discount (usually 50% or more) to the retail price. If enough of the shoppers buy the Groupon, the deal is “on” for that day. This makes it a win-win situation, you get the discount and the store or company gets enough customers to make it worth it.
So how does Groupon make profit:  Groupon makes money by taking a portion of the money that the users spend on the Groupon (usually around 50%). The diagram below depicts a simple Groupon Business Model:


Should Groupon sell out to Google?

Walking away from this offer is a gigantic mistake .In my opinion I feel Groupon made a rather dumb decision. $ 6,000,000,000  is a lot of money for a company with little brand equity. They should've taken the money and ran. Google was paying a huge premium for a company that I feel has limited upside, and a lot of copycats are coming out everywhere, they had their chance to cash out. Google is a shrewd company, but  $$$6Billion  is a pretty shocking offer. 

Plus, Groupon isn't a very good product. Every organization with a local sales force (for example, newspaper) can replicate this service quickly and effectively. Smaller entrants will nibble away at Groupon’s niche, and will muddy the water for Groupon among the all-important B2B market.

I've also given their Iphone/Ipad app a try a couple times, but there is rarely anything worth taking advantage of. The restaurants/services that are going to offer these huge discounts usually aren't worthwhile in the first place. 

Thursday, November 18, 2010

Quote of the Day

"A Smart person learns from their own mistakes but a Wise person learns from other people's mistakes ". John Zdanowicz...