Cell Phone - All you need when you leave your house

Starbucks' acceptance of electronic payments via a mobile application puts the company ahead of the curve on the technology front.  The move by Starbucks is an example of the first step in the further advancement of mobile devices as we know them.  There is a vision among mobile device innovators of a world where the only thing a person needs to carry with them when they hit the road is their cell phone.  Starbucks adopting this payment process demonstrates that the corporate world is open to the vision as well.

Near Field Communication could possibly expand into the future mainstream form of payment.  Much like it is hard to imagine the world today without credit and debit cards, there is a strong likelihood that we won't be able to imagine the world in ten years without NFC.  Mobile device companies would like to see credit card companies move their cards into smart phones via NFC.  If this were completely integrated, many people would not need their wallet anymore as they could scan their phone at store counters for all purchases, just like consumers can do now at Starbucks.

Another future wave of technology for mobile devices is the installation of RFID.  This technology adds day to day convenience for employees that do a lot of their work out of the office. But wait, it gets better.   With RFID technology, key fobs (the car keys that are now used among many brands that allows push start in vehicles) can be integrated into smart phones, as documented at thecarconnection.com.  The way this works is that a vehicle can sense when the key fob is around the car and allows the person to push the ignition button to start the car.  If this technology makes it on to the mobile device, there will be no need to carry around car keys.

Today, when a person leaves their home to go to work or anywhere else, they typically carry their wallet, car keys, and cell phone.  In the future, the only thing they may need is the cell phone.  Society is always looking for speed and convenience.  Therefore, NFC, along with all the other potential technologies, will be desired by consumers and companies.  Because of this I believe Starbucks' new electronic payment app is here to stay and expand with one caveat: 10 years from now, don't lose your smart phone.

Referenced: http://search.proquest.com.ezproxy.fiu.edu/docview/215959329/12D0AFE48571E7AF7C4/4?accountid=10901

http://www.thecarconnection.com/marty-blog/1044760_coming-soon-smart-key-fobs-and-corresponding-smartphone-apps

Cracking Down on Music Piracy

Governments across the globe are continuously passing legislation in efforts to combat piracy. Recent efforts have been well documented in this article. Countries of note are China and Mexico, which have some of the highest piracy rates in the world.  The article shows how not only the developed countries, but all countries are doing their part in an effort to reduce music piracy.

The problem is that these laws tend to be a step behind the latest innovations in music piracy.  It is practically impossible for legislation to keep up with any kind of technology so music piracy is an issue that will persist for years to come.  Governments can only do their best to limit music piracy and their campaign against pre-release music piracy is a step in the right direction.

The future of music piracy is more of the same.  Governments can continue to crack down on certain programs and sites, but other innovators will continue to find loopholes and create new technology to keep music piracy alive.  The main reason the illegal industry will continue to prosper is because of the high demand for free music.  The majority of that demand comes from young consumers with a small source of disposable income, which will always drive them towards cheaper alternatives, in this case free.

I believe that if piracy were to ever be eliminated, it would have to be done by cutting down the demand for free music.  Without demand, there is no incentive for individuals to create new programs that provide pirated music.  However, the issue of eliminating demand is a very difficult one that will require millions of dollars and likely would not be undertaken by any government.

Referenced: Birmingham Post http://www.lexisnexis.com.ezproxy.fiu.edu/hottopics/lnacademic/

Groupon Bankable

A recent article in the New York Times reports that Google has offered $6 billion to acquire Groupon.  Recent reports have also indicated that Groupon's annual revenues exceed $1 billion and the sites subscriber base has tripled this summer.  So now, the multi-billion dollar question is should Groupon sell to Google, or should they maintain ownership?

Despite an influx of imitators joining the industry, Groupon has managed to stay head and shoulders above the competition by expanding the website to far more locations than other sites.  Groupon is also more flexible with their vendors by offering different commission levels and allowing vendors to promote deals through microsites.  These innovative approaches in the industry are what make Groupon such a lucrative acquisition for a company like Google.  They have been able to grow their company and dominate an industry on their own merit, so it does not seem to be in the owners' best interest to sell the company at this point.

As far as an IPO goes, it is still early for Groupon (started less than two years ago) and a struggling economy is not the best of times for an IPO.  It would be wise for the Internet company to wait and see how Facebook's IPO performs, whenever it is released.

The best thing for Groupon right now is to continue to grow its website and increase market share.  The company strengths that have established Groupon's success, innovation and steady expansion, are the types of success factors that all companies strive for, but cannot always attain.  If Groupon continues operating as it has, the growth of competitors should not threaten Groupon considering how far behind imitators are in the process.  There are specific reasons Google offered $6 billion to acquire Groupon, and those are the reasons the same reasons why Groupon is too good of an idea and brand to sell this early in the process.

Can Neuromarketing Increase Sales?

Recent success for companies adopting neuromarketing techniques has demonstrated the importance of such techniques for consumer goods companies.  An example would be New Scientist magazine, which used neuromarketing technology in order to select their recent August issue cover.  The issue saw a 12% increase in newsstand sales in an expected quiet month for the magazine.  The magazine measured three different covers with the technology and the one chosen tested exceptionally well.  New Scientist believes the experiment was a big success and recommends neuromarketing for any company in the magazine industry.

The company pushing neuromarketing technology is NeuroFocus, the market leader in bringing neuroscience expertise to advertising, branding, product development and packaging, and entertainment.  NeuroFocus is all in on neuromarketing and works with various consumer products companies to help increase their sales.  The company focusses on helping companies build relationships with their customers through their products, by strengthening brands and innovating the product's packaging.

To demonstrate the effectiveness of neuromarketing, lets consider packaging or labeling.  When a company is deciding what kind of label they want for their product, or how they want it packaged, the decision usually comes down to a few choices.  Neurological testing can determine which label or package would be preferred by customers with pinpoint accuracy.  It can answer questions such as: does it entice the brain to pick it up? or does it "pop out" at the shelf?  Having the answer to these questions provides companies with a level of certainty over their product that never could have existed before.

Neuromarketing has proven to be very spot on when it comes to getting into the minds of the consumer.  Isn't this exactly what a company feels is paramount in order to sell effectively?  NeuroFocus appears to be providing positive results for various companies by appropriately using the technology.  With the technology that is available in today's world, it would seem foolish for consumer products companies to not embrace neuromarketing as a strategic tool.  To answer aforementioned question, yes, neuromarketing can increase sales.

Referenced: http://proquest.umi.com.ezproxy.fiu.edu/pqdweb?index=11&did=2127664271&SrchMode=1&sid=2&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1290387499&clientId=20175