Project 2: Marketing Analysis

English 103

Word Count: 1,289

September 25^th 2008

Companies need to sell their products, but to do so a company must attract customers through marketing.  Two very successful, but very different companies, International Business Machines(IBM) and Electric Sheep, have perfected their marketing strategies, and built empires by selling virtual goods.  The difference between these two companies is that Electric Sheep is only in Second Life, while IBM has established itself in Second Life and the real world.  It is the prior establishment in the real world that has allowed IBM to excel in Second Life, but at the same time this link has hindered IBM’s advancement in specializing in virtual world development.  Electric Sheep Company has immersed itself in Second Life and developed products specifically for this virtual world.

Both IBM and Electric Sheep want to present themselves as modern companies that have the latest innovations to attract knowledgeable buyers that know progressive technology well; and I believe that both companies have achieved this image.  The Electric Sheep Company has two locations in Second Life, one of which has a grey, five-tiered monstrosity in the center of the island. There is no name on the outside of the building, indicating that the location is so well known that it does not need to be advertised.  The only object that indicates the location is a sheep icon present on the exterior of the building between the fifth and sixth floor, but it can only be seen if an avatar is flying since it is placed very high, (refer to snapshot one).  The sheep icon is also present in the building’s interior.  In the atrium, the first floor of the building, the first object an avatar sees is a white and grey-blue, cartoon like sheep suspended in mid-air.  The suspended sheep is a focal point because it is centered in the hex decagon and the few objects in the room are facing toward the suspended icon.  The icon is then only seen on a small scale on the teleport boards.  Since Sheep Island is geared towards business executives there are no products on display; this contrasts Electric Sheep’s Media Island, which has a club, lounge, and products on sale for Electric Sheep customers.  The buildings are very industrial in design on Media Island and have a downtown feel to them caused by the luminance of neon lights, (refer to snapshot two). Though Media Island is supposed to be Electric Sheep’s location for selling music the name I saw heavily displayed was Sony BMG; Sony and Electric Sheep joined in 2006 (Sony BMG).  This collaboration benefited Electric Sheep because now they had an outlet to the real world and a “big” name company behind them.

Snapshot One: Rae flying between the fifth and sixth floor outside of the main building on Electric Sheep's Sheep Island.

Snapshot Two: Rae flying in Electric Sheep's Media Island.

In contrast, IBM did not need additional support to succeed in Second Life, since it was already a major corporation in the real world and already had connections with Linden Labs. IBM helped prototype and develop Second Life, therefore IBM has excelled in Second Life as much as it had in the real world.  IBM has numerous locations in Second Life, which look very different in comparison to the grey buildings and neon lights present on Electric Sheep’s islands.  IBM has more of a fun theme present throughout their locations that is created by the curvature of their open architecture, water features, and colorful bowl shaped chairs, (refer to snapshot three).  This design contrasts IBM’s real world buildings that are typically boxed shaped with a dark exterior, for example IBM’s Chicago building.  Though an avatar may get the feeling that he or she is in a place for amusement in virtual IBM it is impossible to forget that one is in an IBM location since the familiar blue “IBM” logo is displayed everywhere.

   Snapshot Three: Rae sitting in a chair in IBM's Innovation Island.

The IBM logo is displayed throughout the island, but not on objects for sale such as PCs like one would expect to see in a real world IBM store.  Many stores selling technological projects in the real world have goods, such as computers, printers, and mp3 players, on display, but in virtual IBM and Electric Sheep this is not the norm.  IBM and Electric Sheep keep their décor and goods on display to an absolute minimum, to such an extent that a new visitor would not know what either company is selling.  This method of design is very appealing to graphic designers and others who have immersed themselves in the field of computers and/or design; it is this demographic that makes up their most frequent customers and the type both companies most want to attract.  Though this minimalist design is extremely alluring to one type of customer it is difficult to find the products if you are a newcomer to the location. Though once a consumer is in the correct tower on IBM Green Data Center, it is easy to navigate because there are seven desks each labeled with the type of product sold at that desk, for example “software”.

In Second Life IBM markets and sells products that can also be bought and used in the real world, such as software to update a computer.  Therefore, IBM markets to avatars that are purchasing for real world consumption, using Second Life as an alternate way of selling goods.   IBM has succeeded in this practice because IBM has established itself in the real world and has produced many reliable products. Consumers have learned to respect IBM because of its history.  Unlike IBM, Electric Sheep produces products only for avatars to enhance their virtual experience and does not market to real people.  This differentiation in products and target customers explains the lack of connection Electric Sheep has with the real world. 

Though, Electric Sheep is making real world connections by linking itself with the broadcast company CBS.  In 2007 a “CSI: NY” episode directed viewers to Second Life to play the virtual role of investigator in a program developed by the Electric Sheep Company.  Along with this CSI project Electric Sheep pursued developing Second Life and making it available for mass marketing use by attracting people interested in pop culture, which is a large portion of the population (Boslet).  IBM also took part in this pursuit, but not directly.  IBM developed software that made Second Life easier to use in general instead of developing a program for a specific television show or company, and this innovation benefited all Second Life users (Boslet).  After all, it is the easy ability to use Second Life that will really keep users coming back; the opportunities to be an investigator will only be an initial attraction.  This marketing example reflects Electric Sheep and IBM’s different business approaches; IBM looks at the broad spectrum and designs products to help real world people, while Electric Sheep develops particular products for the enjoyment of avatars.

Electric Sheep may never surpass IBM in real world attraction, but Electric Sheep is ‘the’ company to purchase goods from to enhance an avatar’s Second Life experience.  Both marketing strategies, although different, have proven to be successful for each company because they are each attracting a different sector of consumers.  Electric Sheep is marketing to avatars very involved in Second Life, so their locations do not need to be as visually alluring like IBM’s, because consumers are there for the product.  Since IBM is selling products that can be purchased in the real world IBM created a fun environment to give consumers a new and exciting experience while shopping in virtual IBM, otherwise there would be little reason to purchase IBM goods in Second Life.  The products of these companies have really allowed each to excel in Second Life or the real world, and both marketing strategies have helped allure a certain type of consumers.

Bibliography:

            Boslet, Mark. "Virtual access: SECOND LIFE, OTHER VIRTUAL WORLDS ARE EXTENDING THEIR REACH TO THE MAINSTREAM." Knight Ridder Tribune Business News (2007).

         "New era of advertising hinges on the free flow of information." Marketing Week 30 (2007): 22-23.

          "SONY BMG launches in Second Life with Ben Folds live event." Out to Pasture. 12 Oct. 2006. The Electric Sheep Company. 24 Oct. 2008 <http://blogs.electricsheepcompany.com/giff/?p=118>.

          Wallace, Mark. "IBM Brings Sears to Second Life at CES." The Metaverse and 3D Web. 8 Jan. 2007. 24 Oct. 2008 <http://images.google.com/imgres?imgurl=http://www.3pointd.com/wp-content/uploads/2007/01/ibm06kitchen.jpg&imgrefurl=http://www.3pointd.com/20070108/ibm-brings-sears-to-second-life-at-ces/&h=361&w=479&sz=57&hl=en&start=14&um=1&usg=__b3ckr__ei9xenzyi8gsn_uz>.

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