Is it just me and Andrew Martonik or...

[jephanie]

Is that why Motorola is on Google's books? :-\

It's on their books but is operated as an independent company. If you recall, Moto was introduced to 4.3 at the same time the rest of the world was. They (Moto) is not being given preferential treatment in the ways that I think some people expect them to be.

 

[jephanie]

I don't think that necessarily lines up with the reports that they have a $500 million marketing budget for the phone -- a number I still have trouble believing by the way. I know there are different strategies for marketing and creating awareness, but I agree with posters that are underwhelmed with the efforts to date. I would think they would be doing more to create awareness at this point.

That said, their approach is consistent with efforts to have a slow launch and reinforces my belief that they do not want to crush their supply chain out of the gate. If they still feel like they want to test MotoMaker prior to huge number of orders coming in, then allow the tech bloggers and the community to drive awareness initially is smart. They would be relying on simple market segmentation. Then once the system is stressed tested, they will be able to validate/update their forecast and then start to drive more awareness. This is a classic strategy used by marketing teams, and fits with the types of issues that would typically be expected with a launch of this type of product.

I have said this in other threads as well. This is very consistent also with the way Google stress tests their major software roll outs, and could reflect some cross pollination.

What good would it do to advertise now? The tech nerds are already foaming at the mouth. There's been a ton of (free) press on all the tech sites. All advertising would do now is stir up the masses who don't plan two days in advance much less two weeks or two months. And since Moto doesn't have the billions that Apple and Samsung have, they have to spend their money (even if it is $500 billion) wisely. So why not wait until it is out and then push it. And, as you agreeably point out, in a "don't overwhelm the capability to deliver" way. After all, until now, Moto's (Droid) devices have been limited to a single carrier and never more than that. Can you imagine the huge black eye they would get if so many people were hyped for the phone but couldn't get it? Something tells me the public wouldn't be nearly as forgiving of Moto as they have been with Apple delays/backorders.

 

[Ry]

What good would it do to advertise now? The tech nerds are already foaming at the mouth. There's been a ton of (free) press on all the tech sites. All advertising would do now is stir up the masses who don't plan two days in advance much less two weeks or two months. And since Moto doesn't have the billions that Apple and Samsung have, they have to spend their money (even if it is $500 billion) wisely. So why not wait until it is out and then push it. And, as you agreeably point out, in a "don't overwhelm the capability to deliver" way. After all, until now, Moto's (Droid) devices have been limited to a single carrier and never more than that. Can you imagine the huge black eye they would get if so many people were hyped for the phone but couldn't get it? Something tells me the public wouldn't be nearly as forgiving of Moto as they have been with Apple delays/backorders.

Moto X needs to be a "household name" like iPhone and Galaxy (Sx). Non-tech nerds know those names.

 

[JungleLarry]

It's on their books but is operated as an independent company. If you recall, Moto was introduced to 4.3 at the same time the rest of the world was. They (Moto) is not being given preferential treatment in the ways that I think some people expect them to be.

What? If Google were to give Motorola "preferential treatment" re: software updates it would be undercutting the OEMs it supports; that's cannibalism. From a strategic standpoint, allowing Motorola to operate as if it were a separate entity makes sense, but don't for a second think that there's not rich Googliness rubbed all over that business segment. When Motorola posts a loss, GOOGLE posts a loss. When Motorola posts a profit, GOOGLE posts a profit.

Google has a vested interest in the success of Motorola, and have even charged themselves for returning Motorola to profitability. You make it sound as if Google just threw buckets of cash at Moto and said, "Here you go, run and be free!" I assure you, that is not the case.

 

[jephanie]

Moto X needs to be a "household name" like iPhone and Galaxy (Sx). Non-tech nerds know those names.

I completely agree. And we have to assume Moto knows what they are doing given their strategic plans, capital, etc.

 

[jephanie]

but don't for a second think that there's not rich Googliness rubbed all over that business segment.

Oh, I agree with you. But I have to say this made me giggle with Googliness. LOL

 

[thegrants82]

Just hold on for a month or two then jump on the Nexus 5. If Moto produces the Nexus 5 then Moto X will truly be mid range in all aspects, from camera to battery to software updates to screen...........

 

[Woosh]

I don't think that necessarily lines up with the reports that they have a $500 million marketing budget for the phone

Motorola Cheaps Out With Moto X

Samsung last year spent 4 billion on advertising and 5.3 billion on sales promotion. About 11 billion through all of its promotions and ads. Compare that to the 500 million that Moto will be spending and you'll see why you see Samsung everywhere.

If Moto is only spending 500 million like its reported.....they need to spend it properly.

 

[SteelGator]

What good would it do to advertise now? The tech nerds are already foaming at the mouth. There's been a ton of (free) press on all the tech sites. All advertising would do now is stir up the masses who don't plan two days in advance much less two weeks or two months. And since Moto doesn't have the billions that Apple and Samsung have, they have to spend their money (even if it is $500 billion) wisely. So why not wait until it is out and then push it. And, as you agreeably point out, in a "don't overwhelm the capability to deliver" way. After all, until now, Moto's (Droid) devices have been limited to a single carrier and never more than that. Can you imagine the huge black eye they would get if so many people were hyped for the phone but couldn't get it? Something tells me the public wouldn't be nearly as forgiving of Moto as they have been with Apple delays/backorders.

I largely agree with this, as you can see from my post. There is market prep work that I think could be done (ie. the original print ads that say something is coming), but it is so hard to second guess a strategy when you don't have all the data. My intent was more to analyze what they are doing and make guesses about what is going on inside base on what we see out here.

 

[SteelGator]

Motorola Cheaps Out With Moto X

Samsung last year spent 4 billion on advertising and 5.3 billion on sales promotion. About 11 billion through all of its promotions and ads. Compare that to the 500 million that Moto will be spending and you'll see why you see Samsung everywhere.

If Moto is only spending 500 million like its reported.....they need to spend it properly.

This is interesting perspective, but may be misleading. Samsung spent $4B last year on how many brands? Apple spent $1B on how many brands?

Moto has stated a $500 M BME (brand marketing expense) for the X alone. I would guess the Samsung budget was spread across the Note and the S4 at a minimum, but it may include their the consumer electronics and TVs. That is not at all clear from the link you provided. Apple's number is not an iPhone expense, but and Apple expense, and they spend a lot on the iPods (TV is very expensive).

Also are the Samsung and Apple numbers world wide? If they are, then the comparison breaks down further, because the Moto X is not going to be a global brand.

All this is to say, it is not clear from this data how competitive $500M is to other brands. I still think it is a pretty robust investment that will be complemented by the Droid campaigns.

 

[ki11ak3nn]

Just hold on for a month or two then jump on the Nexus 5. If Moto produces the Nexus 5 then Moto X will truly be mid range in all aspects, from camera to battery to software updates to screen...........

The Nexus 5 isn't coming to Verizon. So what am I holding out for??

Sent from my Galaxy Nexus using Tapatalk 4

 

[Ry]

Just hold on for a month or two then jump on the Nexus 5. If Moto produces the Nexus 5 then Moto X will truly be mid range in all aspects, from camera to battery to software updates to screen...........

What is this Nexus 5 you speak of?

 

[thegrants82]

The Nexus 5 isn't coming to Verizon. So what am I holding out for??

Sent from my Galaxy Nexus using Tapatalk 4

It is if Moto makes it....thats what your holding out for.

 

[ki11ak3nn]

It is if Moto makes it....thats what your holding out for.

So I'm hoping Moto makes it and not LG?? I won't hold my breath on that one. But that would be cool if Moto makes the next Nexus. I just hope VZ doesn't take a huge dump on it like the GNex.

Sent from my Galaxy Nexus using Tapatalk 4

 

[Woosh]

It is if Moto makes it....thats what your holding out for.

Doubt it.

 

[jephanie]

I just hope VZ doesn't take a huge dump on it like the GNex.

Verizon would eat a metric ton of Ex-lax in order to take a dump on another Nexus. Hence...not another Nexus for Verizon, which is a major bummer.

 

[ki11ak3nn]

Verizon would eat a metric ton of Ex-lax in order to take a dump on another Nexus. Hence...not another Nexus for Verizon, which is a major bummer.

So the next best thing in my eyes is the Moto X. Close to stock. Great hardware. Hoping for timely updates.

Sent from my Galaxy Nexus using Tapatalk 4

 

[dj ozone]

As long as everything is ramped up by the holiday shopping season Moto X will be fine...

 

[jephanie]

So the next best thing in my eyes is the Moto X. Close to stock. Great hardware. Hoping for timely updates.

Sent from my Galaxy Nexus using Tapatalk 4

I'm in the same boat as you.

 

[JHBThree]

Motorola Cheaps Out With Moto X

Samsung last year spent 4 billion on advertising and 5.3 billion on sales promotion. About 11 billion through all of its promotions and ads. Compare that to the 500 million that Moto will be spending and you'll see why you see Samsung everywhere.

If Moto is only spending 500 million like its reported.....they need to spend it properly.

No. Just, no. Samsung spent roughly $400 million on marketing for its mobile division. Apple spent a little less at a little over $300 million. The numbers that article throws around (totally misleadingly, I might add) are for the marketing budgets for those entire companies. Samsung makes everything from phones to refrigerators, so that number reflects all of their marketing efforts. Apple's includes marketing for all of apples products.

Put in perspective, Motorola's investment is right where it should be.

Sent from my Nexus 4 using Tapatalk 2