Archive for July, 2009

Posted on July 29, 2009 - by Justin Hartman

My presentation at the MIH Media Lab Entrepreneurship Workshop

This morning I delivered the following presentation to the students of Stellenbosch University’s Media Lab. My topic was on the start-up lifecycle and I think it went alright. Students are sometimes hard to gauge but I hope that this provided some insight into life running a startup. There’s also some interesting insight into the Afrigator business which has never been released.

Special thanks to Darren Gorton for unknowingly allowing me to use his lighter side of startups presentation in mine! I simply love it! He’s also got a great post on funding for startups in South Africa which any entrepreneur must read.

 

Posted on July 7, 2009 - by Justin Hartman

Should companies fear Social Media?

In the last week or so there’s been a huge furore in the South African Social Media scene around the pricing of Apple products in the market. For those not in the know Apple is solely distributed by the Core Group who have had the monopoly in SA for a number of years now. I’ve been silently watching anti-Core websites being launched, poorly handled PR by the management and asking myself if I really cared.

It’s no secret that I love Apple and I’ve owned many of their computers and accessories for the last six years and to be honest I simply don’t see the issue with pricing in SA. I also have to concede that the Core Group have actually done a fantastic job at distributing and growing the Apple market share in South Africa.

With the advent of the Internet and more recently the adoption of Social Media many people would have forgotten or are not contextualising what it was like six years ago in the SA market. I remember when Beeld bought an Apple computer for almost R500,000 because it was the super-computer that would take them to a new level in production. Today, however, pricing of Apple products have dropped considerably and the company has positioned itself away from publishing and graphic design to the more lucrative consumer market.

I also remember a time when the Core Group had a lot of competition. Many years ago Apple granted multiple licenses to companies in South Africa yet despite this open market the only distributor to survive was the Core. At that time gaining market share was near impossible yet despite it they’re still around to tell the tale hence why Cupertino decided to award the Core Group with the sole-distribution rights to South Africa.

Granted that the Core Group have benefited by Apple’s overall positioning and mass global adoption but irrespective they have seen the best and worst of Apple and stuck to their guns.

So what’s the point of all of this I guess you’re wondering? Well the point is that not everyone is Social Media hates companies or are out to hurt reputations. I’ve sat in countless meetings with potential Adgator clients where I’ve explained that when a blogger takes the time to write something bad about their company it generally means only one thing – they care about you.

In fact not only do they care about you but they’ve taken the time to write something about you in the hope that you will respond. Most of the time, no one ever does.

It is because of this that I encourage people to engage users, no matter how tough it may seem, because by turning a negative response into a positive you start to create brand champions for your company. These brand champions will take your company a lot further than any marketing initiative could ever accomplish because quite simply put, people value their friend’s opinions more than they value yours!

From my experience, dealing with the negative responses in the right way is sure to change perceptions however the issue is that most companies have no idea how to go about this.

The Core’s situation is a case in point. RJ van Spaandonk retaliated, via Twitter, to the angry lynch mob which really just fueled the fire even further. While he tried to highlight similar pricing strategies from countries outside of SA it wasn’t handled in the right way and his strategy, or lack thereof, backfired badly.

The bloggers now hate the Core Group even more and RJ van Spaandonk is now recommending that companies stay far away from Twitter, bloggers and Social Media in general. In the end everyone has lost.

Had I been the Core I would have sought help from professionals before publicly making statements and retaliating. If you don’t know how to deal with this medium, ask for help – there are many professionals today who can help and advise you on the right Social Media strategy and how to mitigate negative responses around your brand(s).

For any company the message is simple. People are having conversations about you all the time and you really can’t afford to not be apart of it. Seek help, build a good strategy and above all – #DLFS*!

* Don’t Look For Shit! (this is Afrigator‘s corporate motto and we stick to it, religiously! We learned our lesson the hard way.)