Davis Thinking } analysis and interpretationMormons and The Church of Jesus Christ of Latter-day Saints, or LDS - not to be confused with LSD(!) - have been on my my radar screen lately. It has nothing to do with HBO's popular drama Big Love or Mitt Romney's failed presidential campaign. Rather, LDS has embarked on a brand image campaign which, upon a closer look, is much more than a polished, high-gloss initiative aimed at a younger generation of potential disciples. In fact, it is both a timely move for a marketplace in search of answers and a bold competitive move among religious institutions.
This past weekend, the Wall Street Journal included a neatly illustrated article by Joe Queenan on the dearth of imagination in Hollywood in 2010. The Worst Movie Year Ever? lamented recent storytelling efforts in Tinstletown, painting a picture of movie theaters around the country where audiences sit “listlessly through a series of lame, mechanical trailers for upcoming films that look exactly like the DOA movies audiences avoided last week.” I’m familiar with the feeling that the popcorn is the only thing to be happy about in theaters this summer. But as I was thinking about it, I started to wonder: is Queenan simply describing the state of entertainment, or is he actually providing a metaphor for the state of business lately?
The Boston Globe recently launched a digital scavenger hunt that further blurs the lines between physical and digital spaces, news and entertainment, and social and traditional media. Boston Globe Trek is a prime example of innovation within an industry struggling to reinvent itself, and other news organizations should take note.
I've been a tad critical of the Disney marketing machine here and there, but I predict that the House of Mouse's recent decision to angle for a major franchise featuring a triangle and a rectangle will shape up beautifully for the Disney brand.
Ashton Kutcher is a figure I find so unsavory that it is difficult for me to see him as worthy of anything other than endorsing POS Clothing. He is the "dude" who stays at the party an hour too long, holding court and announcing his own coolness long after others have started to yawn. Image is hard to change. That said, the man is not stupid, and very well may be ahead of the pack in terms of social media and brand endorsements. His innovative partnership with Popchips, Inc. proves the point well enough. Kutcher built his fame on mild talent, good looks, and a variety of attention-grabbing stunts (whether via Punk'd or geriatric marriage). His cultural relevance, though, came through a carefully engineered drive to be the first person to have 1 million followers on Twitter (@aplusk now broadcasts in real-time to more than 5 million people). Mr. Kutcher saw what other stars -- and major brands -- have missed: that building an audience and managing a direct relationship with it is the way forward. Notably, his work with Popchips does not involve MadAve's services. It is the latest example in what I've written about as the the trend toward post-agency markets.
PBS chef and 1999 James Beard award winner Lidia Matticchio Bastianich is a stark contrast to the Food Network's lineup of chef entertainers. She exudes knowledge and offers simple, clear instruction on her PBS show Lidia's Italy. There's no pageantry or pretense -- just a serious chef with a love and appreciation for Italy's many classical, regional dishes. Yet while I'm a fan of her show and her approach to cooking, her brand strategy lacks the refinement of her recipes. As meticulous and knowledgeable as she comes across on her program, the translation of the promise she establishes isn't consistently translated across her many ventures, most notably her restaurant Lidia's in Kansas City.
Last weekend, I took my two preschoolers to Six Flags. We walked through Bugs Bunny National Park, past Tweety's Twee House and Yosemite Sam's Tugboat Tailspin, my five-year-old nervously eyeing the 6-foot tall anthropomorphized rooster waving menacingly at her. "Mommy, what is that?" "Oh, that's Foghorn Leghorn," I explained. Then her wee brow furrowed. "Who?" The child had no clue. Neither did the heat-stroked fourteen-year-old inside, I bet. It was then I realized Six Flags has become less theme park than museum, teeming with cartoon icons put to pasture when cross-dressing, gun-toting, homicidal role models fell out of favor. Bugs, Elmer and Wile E. have joined Minnie, Donald and Pluto at the edge of obsolescence. Can WB bring them back from the brink?
I’m 25-years-old, California-bred, a sports fanatic and a Nike brand advocate. Oh, and as an average American I have not played (or remotely cared about) soccer since I was 8. Nike has decided it is time to play. And it turns out the American company is really, really good at it. Last week the Wieden + Kennedy campaign Write The Future was released racking up 7.8 million first week views, breaking its own viral record.
I’m 28-years-old, born and raised just outside Amsterdam, a loyal Nike customer and very passionate about soccer. Some of my greatest memories in life revolve around a season, game or goal, so when I first saw this new Nike ad for the World Cup Soccer 2010 - described by the brand itself as one of their best ads ever - I got excited. This was about a global sporting event that makes my blood run faster.
Swiss Tourism has long struggled to promote its country in a modern, meaningful way, oftentimes relying on national cliche. The situation is compounded by an apparent lack of brand strategy or a sound understanding thereof. As a result, in its most recent attempt Swiss Tourism tells the wrong story well. Switzerland isn't the only mismanaged national brand, but as a Swiss citizen and brand strategist, I find this latest fumble particularly painful, if pretty, to watch.
Facebook seems unstoppable. The community boasts more than 400 million users, half of whom log on at least once a day, and 35 million of whom update their status at least once a day. In the first week of March, its traffic increased 185 percent compared to the same time last year, briefly beating out Google for most-visited site in the U.S. And according to comScore, it commands a 41 percent share of unique visitors to top social media sites, including Twitter, YouTube, MySpace and Ning. But history suggests that when it comes to destination sites, what goes up must come down. And Facebook has apparently learned a few lessons from AOL, Friendster and MySpace. Facebook Connect and Facebook's recent announcement to extend its popular "Like" feature to the rest of the Internet point to strategic shifts intended to help it avoid a similar fate. In a decidedly Google-like move, Facebook wants to follow you outside of its walls to become a more integral part of your entire Internet experience.
Poor CNN. The network is trying to be everything to everyone and, as is usually the case with such efforts, pleasing no one. Ratings are in the toilet and in every corner -- from the plush offices of Vanity Fair to the hallowed halls of NYU to the ash-covered continent -- one hears the jarring thumps of unsolicited advice. It's enough to make an executive producer drink more heavily than he already does.
Every second, unfiltered information streams fill a growing data ocean. To sift through the depths, sort the finds and bring exactly what we need to the surface, we rely on the mapping and ranking algorithms of Google and other search leviathans. Their technology fuels our virtual treasure hunt, but without the right coordinates, there's little guarantee we'll salvage anything of value. Two startups, Aardvark and Hunch, think a greater emphasis on the people on both sides of the search will improve their chances of striking gold.
The Museum of Modern Art's recent acquisition of the @ symbol challenges, in the museum's own words, "the assumption that physical possession of an object [is] a requirement for an acquisition." The move has provoked varying responses, from mystified to dismissive. While some consider it no more than a clever marketing ploy, the move is not only bold and necessary, but indicative of something much more momentous: MoMA's redefinition of "modern" and evolution of the role of today's museum.
One need not stretch too far, nor have particularly partisan views, to accept arguments that ours is a culture marked by institutional collapse. Confidence on Wall Street and in capitalism itself slipped with the tarnishing of names AIG, Lehman and Merrill Lynch (among others) during the Great Recession. Trust in the U.S. government eroded along party lines, calling into question the integrity of the democratic process, on the path to health care reform. Faith in the Catholic Church continued to fold just last week under the weight of yet another round of scandal fueled by priests preying on the most vulnerable. On somewhat lighter fronts: there is no longer a "most trusted man in news" when every adman is a newsman, and so many newsmen an advertisement (or plagiarist). Science is more politicized than ever, the clarity of its objective truths clouded by a climate of competing interests. If our cultural institutions are not as strong as they once were, where is one to place belief?
Davis Brand Capital, which published the 2009 Davis Brand Capital 25 ranking in December, today announced expanded rankings in five industries: automotive, finance, retail, technology, and telecom.
AshleyMadison, of "Life is short. Have an affair." fame, trotted out this Avatar-themed spot for broadcast during Sunday's Academy Awards. Then, in a move as predictable as an over-the-top Sharon Stone reaction shot, ABC banned it from the telecast. Funny that the nation's leading adultery enabler ends up flaccid on Oscar night. Why did those frigid execs give Ashley's aliens the cock block?
Haute couture brands recently have been in the headlines for promoting an unhealthy body image, mourning the loss of one of fashion's brightest stars and, in general, dealing with a full-blown identity crisis. Meanwhile, an increasing number of mainstream brands have turned their attention explicitly to the end consumer: she now plays a central role in how we view and buy fashion. This reinvention and democratization of fashion has its origin in the mainstream, unlike most trends, which work their way in from the fringe. Moreover, it's a global phenomenon with brands from Japan to Germany embracing the everyday woman's new role.
Tough times for automakers have turned the industry upside down. Household names like Oldsmobile, Pontiac, Saturn and Hummer have gone the way of the dodo. Saab narrowly avoided a similar fate with a last-minute purchase by Dutch super car manufacturer Spyker, a niche player that has intriguing plans for the quirky Swedish brand. Fiat and Chrysler became strange bedfellows. And Toyota is struggling through an historic, crippling recall. But one of the more interesting outcomes of the recent upheaval within the auto industry is Ford Motor Company's sale of Volvo to China's Geely.
We recently voiced optimism that the Super Bowl launch of Dove's Men+Care line would challenge the alpha male ad genre, just as its revolutionary Real Beauty spot from Super Bowl XL confronted unhealthy female beauty standards. On Sunday, our optimism swirled its sad little way down the drain.
When Steve Jobs took to the stage in San Francisco's Moscone Center on January 27, the world knew what to expect: Apple would finally announce its long-awaited tablet. With that pre-determined focus and the anticipatory roar for the next "insanely great" thing, most missed the larger announcement of the day. Steve Jobs did not simply announce the company's latest creation; he completed a task first made public in January 2007, when the company dropped "Computer" from its name to become Apple, Inc. The real news hidden in plain view as Jobs unveiled iPad was the repositioning of the company that created the personal computer.
First, Hardee's showed you its B-Hole. Then, Bud Light Lime gave it to you In the Can. Now Axe, with all the class and finesse we've come to expect from the brand, wants to Clean Your Balls. On the surface, this seems like nothing more than your typical nether regions marketing. But look under the hood, and Axe's down under approach has more in common with early marital aid advertising than beer and fast food.
GE (NYSE:GE) captures the number two spot in the Davis Brand Capital 25 for 2009. The world's largest company, GE has rebounded from a transition period and one of the most challenging years in its history -- one that saw its stock plunge to record lows. The company's nimble and effective management of its brand capital is helping it tackle new market paradigms and position itself to lead into the future.
As the year ends, we look back at the most read and shared posts from Unbound Edition's contributors, and a few more favorites chosen by our editorial team. We appreciate your continued readership and commentary and look forward to more dialog in 2010.
Microsoft ranks #4 on the Davis Brand Capital 25, besting twelfth-place rival Apple. Despite taking some hits in a year-long advertising tit-for-tat with Mac, Microsoft joins fellow technology brands IBM (#1), HP (#3) and Cisco Systems (#5) at the top of this year's list. The Davis Brand Capital 25 is the only annual list to evaluate brand as an amalgam of intangibles, including brand value, competitive performance, innovation strength, company culture and social impact. Microsoft's top-five ranking is a reflection of the company's successful management of its brand capital across a diverse portfolio of technology products and services.
Cisco's #5 ranking on the 2009 Davis Brand Capital 25 should come as no surprise. Cisco has taken an integrated approach to developing its intangibles for years. The following sections detail Cisco's success in carefully managing its brand value, competitive performance, innovation strength, company culture and social impact.
Patrick Davis Partners, the brand capital consultancy, today announced an expanded portfolio of services and a name change to Davis Brand Capital.
Back in June, Miracle Whip broadcasted its condiment manifesto to Gen Y. Punctuated with the official quivery chalkboard script of all advertising-spawned youth movements and set to a swaying, poly-ethnic crowd kickin’ it kiddie-pool style, a bored (yet defiant!) voice-over proclaims: “We are our own unique, one-of-a-kind flavor. We are Miracle Whip. And we will not tone it down.” Hmmm. A hipster decree from a 76-year-old sandwich spread most famous for its supporting role in my great aunt’s deviled eggs? The campaign was hard to swallow.
Twenty years after the fall of the Berlin Wall, new walls are being erected that challenge the fundamental right of the public to free news and information. However, free today no longer means free from bias or state control, but instead not paying for content. News Corp.'s announcement that it would introduce pay walls has set off a firestorm of response -- the majority of whom say it will not work. The minority see Murdoch as the potential savior of professional journalism, an ironic twist for the man behind The New York Post and other tabloids. Others focus on the proposed model and respond that it could work, if News Corp. can apply the lessons it has learned from pay television and the music industry, which evolved its model in response to illegal downloading.
Not much surprises us these days. And that, by and large, is the way we like it. We have more control than ever over our lives. We bank and shop on-demand online. We use RSS feeds to filter our news. We carefully manage our public image by broadcasting the most appealing pieces of ourselves -- photos, status updates and MP3 playlists -- on our blogs and Facebook pages. Recognizing this demand for control and customization, more marketers are asking us to help shape their products as we see fit. So it's surprising to see some new businesses thriving by keeping us in the dark.
The motoring and mainstream media alike have scrutinized Detroit's Biggish Two-and-a-Half ad nauseum. Both experts and the car-buying public are questioning Detroit's ability to innovate in the post-SUV cash cow, post-bailout world. And rightfully so. Admittedly, there are a few bright spots on the horizon. But the real innovation story likely won't be the much-hyped Chevy Volt or even Ford's Fit-beating Fiesta. And it certainly won't be the ridiculous idea that positioning Chrysler to compete with Cadillac will somehow save the beleaguered brand (have you seen Cadillac's sales figures, Mr. Fong?). I'm betting Detroit's next disruptive innovation will be the rebirth of Saturn.
No, we aren't referring to the 80s clothing line, rather we are referencing the mixed messages professional tennis is sending to the public. Both authors are tennis fanatics. However, despite our love of the game, as brand strategists we are baffled by the sport's inability to evolve, notwithstanding its stated intention to do so.
The most successful beer marketers in the world have crossed a line. According to AdAge, a pun is “the final frontier” in “tasteless” beer advertising. In a spot for Bud Light Lime leaked on the Internet, everyday folks innocently confess to getting it “in the can” (some of them like it and want to do so again!). The punch line of the spot reveals that the popular brew is now available in all-too-familiar handy aluminum containers.
I noticed Clear has been stealing a page from its competitor Verizon with its creative - or lack thereof. To tout its comprehensive coverage, it uses sprinkles as a metaphor.
Starbucks has a brand problem. Everyone knows it. Their founder knows it. And, to Starbucks' credit, the company is taking action. A brand problem, though, is a business problem. It's not a matter of addressing or re-dressing things. It's about operations, about the integrity of processes. Making the promise and keeping the promise of the brand can never be detached from the consumer experience. This is not good news for Starbucks; it's still faking it.
Pepsi is exhibiting some fresh bruises after recent media coverage of the company’s brain drain under Massimo d'Amore. When one considers Arnell’s leaked logo study and the lashing from the trades (and 20% freefall) over Tropicana’s repackaging, it’s hard to argue freshening up its brands netted PepsiCo any positives. Yet despite a flood of negative attention (much of it deserved), the most interesting aspects of the work have received the least attention. I may take my own lumps for this one, but I think the Pepsi brand has made some smart choices in its updated approach to communicating “refreshing.”
Some say Goldman Sachs has a brand problem. And the media pile-on includes the FT, New York Magazine, the New York Times and Rolling Stone with its oft repeated and colorful judgment of the company as a “giant vampire squid wrapped around the face of humanity.” But I say, Mr. Lloyd Blankfein, light up a cigar and stick to your arrogant guns. I don’t think you have a brand problem. I think you have a brand which is working very, very well. To the chagrin of many others.
CNN and sister network HLN face a difficult brand challenge. As Teri Schindler noted in her recent post on the branding of broadcast networks, CNN is caught between a rock and a hard place with MSNBC’s liberal bent and Fox News’ right-wing “reality."
It’s a hard time to tackle branding if you are a television channel. What with the mishmash of shows, the plethora of “talent,” the multitude of distribution platforms, the unrelenting pressure on retaining audience and the changing media landscape, distinguishing the distributor is a difficult and possibly thankless chore. So many egos and properties, so many fragmented audiences, so little room for a clear, identifiable position. So little opportunity for a relationship with the public.
The inevitable economic recovery is arguably just around the corner. Yes, it’s always too far ahead. But at least there is light at the end of the tunnel. Obama says it’s a “long way off,” likely to cover his own posterior. However, the IMF and the Fed are cautiously optimistic. And, with few exceptions, the Dow has been relatively flat in recent weeks. I don’t want to jinx it, but it feels like we’re at the bottom of a very steep hill to climb rather than falling off of a cliff. The recovery -- albeit likely a slow one -- is coming. It’s just a matter of when. And the world, including marketing, may never be the same.
According to the dictionary, “confluence” describes the flowing together of two or more rivers -- for example, where the smaller Missouri joins the roaring Mississippi. There is a similar confluence of strategy forming between the for-profit and non-profit sectors. And considering the reputational challenges damming many for-profit revenue streams, the non-profit sector may prove its contributions to the union to be more Mississippi than Missouri.
The TED conference began in 1984 with the simple goal of bringing the top minds of the Technology, Entertainment and Design industries together for short, thought-provoking talks with their peers. The for-profit, invitation-only gathering was largely unknown in its early years outside of the small community of innovators who spoke at and attended the annual conference. Twenty-five years later, a very different TED announces TEDx, independently organized local events designed to share recorded TED talks with and capture new inspiration from a global network of community leaders. The brand’s evolution is a case study for what our institutions of higher learning should be doing: leveraging digital strategies and new technologies to create global resonance for content traditionally constrained by bricks and mortar.
In the wake of recent legislation allowing the FDA to regulate the tobacco industry, a variety of smokeless tobacco products are hitting the market. A few e-varieties promise a comparable experience without the stink and stigma of the earlier models. But will smokers find any of these alternatives up to snuff?
There has been much talk lately of data overload. Of marketing noise and the struggle to attract and maintain consumer attention. A weekend outdoors with my toddler reminded me this isn’t a new problem, nor is our selective attention a new response. My daughter still notices every soaring airplane. Every buzzing hedge trimmer. Every distant siren. The sights and sounds I have learned, over time, to tune out as irrelevant. When faced with data glut in the marketplace, most consumers respond like me. That is to say, they don’t respond. So how do brands help consumers see their information through the eyes of a child?
Anyone who’s seen me flail at Guitar Hero understands - even encourages - my reticence to play Rock Band. In spite of my enthusiasm, intense concentration and true desire to rock out, I once performed so poorly that a kind friend suggested to the room that “perhaps the signal isn’t getting through.” That, combined with the overt disappointment and head-shaking from the animated characters on-screen put me off the game. I must say, however, that for the opportunity to play some Beatles Rock Band, I would again risk such embarrassment.
Alfred P. Sloan’s famous quote epitomized the strategy that built GM into what was once the largest company on the planet. And while an entire laundry list of problems led to GM’s bankruptcy, the mismanagement or gross misinterpretation of Sloan’s strategy is what ultimately led to the behemoth’s demise.
LEGO made its first brick in 1958 and has been building ever since, but not without difficulty. Facing major competition from interactive electronics and computer games, the Danish company almost crumbled into bankruptcy in the late 1990’s. Then LEGO redesigned the brand blueprints, with a little help from its amateur architects.
Something shocking has happened at McDonald’s, the likes of which we haven't seen since the embezzlement scandal that sent Mayor McCheese to white collar prison in the mid-80s. For the first time in its almost 30 year existence, the Happy Meal's freebie is a piece of media rather than a cheap, plastic doodad. Clouds part, angels sing. And sing they will, to the jaunty tunes of Kidz Bop.
Microsoft wants to help you advertise. Let’s pause on that for a moment, shall we? The people who respond directly to a smaller competitor, cannot present a consistent image to save their own markets, promote the idea that brand does not matter and release broadcast spots created on a Mac. That Microsoft. The Microsoft so in touch with consumers that they are boldly going into retail with nothing but a tightrope of user frustration upon which to dance or hang. That Microsoft. They want to help you advertise. To women. Specifically, something called “women (25-54).” We assume this is not geek speak for the code to activate some Redmondian Fembot. It might as well be, because what Microsoft proposes in its recent online campaign (proof of its own advertising pudding?) makes the fairer sex seem more foreign than ever.
As interesting and important as micro-blogging and other momentary, disposable bits of culture might be, I tend to be more interested in the larger patterns they can help reveal — not the chatter itself. Recently, the former has helped me tune into something intriguing: an emerging meme about brand voice.
If Disney’s latest strategy works, moppets across China will be saying “Just a spoonful of sugar helps the medicine go down” in a most delightful way. And with perfect diction.
Ad Age released five new rules for marketing this week and invited emails for other “new rules.” At Patrick Davis Partners, we agree that these times demand new thinking by marketers. We even released our own thoughts about new priorities for a post-agency age last November. So with a nod to the “radical transparency” Ad Age cites, and a sense that one ought to practice what one preaches, we’re responding in an open letter instead of an email.
Fully aware it’s ironic to blog about listening - here I am, “talking” about “listening.” Still, it seems a worthy topic right now - the value of the oft-neglected art of closing your mouth and opening your ears.
Social media platforms, blogs, smart phones, online video conferencing and a host of other technologies will facilitate revolutionary changes for brand research and innovation. Many companies are already leveraging these technologies for more traditional types of data collection, such as survey research. However, few have taken advantage of the real opportunity these technologies collectively provide: crowd-sourced research models for consumer-driven innovation.
Peggy Noonan recently wrote an opinion piece in the WSJ detailing what she interpreted as the depression we are feeling as we sense “something slipping away, a world receding, not only an economic one but a world of old structures, old ways and assumptions.” I agree with her overarching sentiment – and know a lot of people who are anxious and depressed in the current environment, and for good reason. But holding a glass to the cultural wall and listening closely - pardon me Peggy, but the loudest voice I hear is petulance.
Recently, I wrote of my interest in branded commodities and provided some fine examples of how this complex form of brand management can be done correctly. In the “never do this” category, I must now offer the other end of the spectrum.
There’s plenty of chatter about Microsoft’s new viral video. Great. You got some people to watch it, and with this post, even more. At a technical level, the spot is working (pun intended). At a brand level, I am at a loss.
We already know Dora the Explorer can crank dat, but who knew that a brand extension would crank out such controversy?
Pity poor CNBC. Oh, the horror. To be taken on by a comedian - a comedian! - and lose. To have the comedian come off as more serious, more substantive, more tuned in to the zeitgeist, more honest. To have a funnyman call you out for not doing your job. And then to have that showdown not just air and be forgotten, but pick up speed virally and, for gosh sakes, make the front page of the Financial Times, among others, despite all the media weight you use (Stewart’s term: “all those peacocks”) to try to downplay it.
After ten years, Companion was embarking on an ambitious plan to expand its bakery/cafe business. In conjunction with the expansion, Saint Louis-based designlab and Atlanta-based Patrick Davis Partners developed a unique identity. The wordmark and logo—birds holding various conversations about life, bread and friendship—provided the foundation for an extensive brand strategy. Because a majority of the design would be produced in-house, a Brand Expression Guide was developed to assist designers and vendors with creating a cohesive presence.
Welcome to the new Unbound Edition. For the past two years, our readers have made Unbound Edition one of the Web’s most read marketing news aggregators and blogs. Along the way, we have laughed with you, listened to you and learned from you. Thank you. Now, we are making some changes to serve you better and to take advantage of new technologies.
De-commoditizing categories has proven hugely valuable for more than a half-century in building specialty and niche markets. But the resetting of the economy and the emptying out of the Starbucks cup suggests a macro shift back to the big brands that have the price flexibility to deliver real consumer value for the long-haul. Branded commodities are poised for a return to growth, even as the ultimate commodity still floats about in the air.
I frequently find Fast Company to be a frustrating read; it’s had more than a hard time finding a relevant voice post-dot-com. The magazine’s recent take on Amazon’s decision to release both Kindle 2 and an e-book reader app for iPhone and iTouch proves how old the publication’s vision of markets and technologies really is.
Product and packaging design can be one of the most impactful brand touchpoints. Here are a few recent executions I admire.
Cher. Madonna. Prince. Charo. The club of one-name celebs has a new member. Just call him Dunkin.
For Amazon’s Jeff Bezos, being the earth’s most customer-centric company means more than giving customers what they want. It requires inventing “on their behalf,” moving beyond dialog to predict future needs and develop the necessary skills to meet them. Such action begot Kindle, and through new collaboration with IBM, is moving cloud computing forward.
GE spends $3 million to bring Oz’s scarecrow to life in a Super Bowl spot riddled with future tense. Silly CGI. No real details. The message: efficiency through intelligence. Someday. Two weeks later, Google uploads a video to its Youtube channel. A new product, described in simple language by Google engineers and clearly connected to the brand through a compelling quote. Real data, real benefit - in percentages and dollars. The message: efficiency through intelligence. Today.
Love’m or hate’m (please hate them), the brand managers at Axe have their formula, and they’re sticking to it. Sophomoric? Check. Misogynistic? Check. Aggressively Sexual? Check. Perfectly aligned with their audience of high school boys and socially delayed college students? Check mate.
Call me some kind of wacky, old fashioned romantic, but I generally prefer Valentine’s Day campaigns that do something other than make me want to run out and bludgeon the first woman I see sporting a green suit.
Just in time for Valentine’s Day, the communications experts at AT&T have released a texting primer to answer our most perplexing SMS questions: Should we respond to texts immediately, or hours later? “Textpert” Nicole Beland has the answer. Is breaking up by text appropriate? AT&T knows. Armed with this “D8ing Textiquette” and stunning figures from AT&T’s Valentine’s Day Texting Survey (33% of texters surveyed plan to send at least one Valentine’s text!), aspiring texters everywhere can now confidently use this “new language of love.” Additional information and more fantextic puns available in their texting media kit.
It’s hard to overstate how off-target TeleFlora’s Valentine’s Day spot is, both in concept and context.
This week we’ve discussed a few Super Bowl standouts, good and bad. But what of the ads that didn’t make the cut? PETA doesn’t shy away from extreme antics, from flinging paint to flashing skin. This year’s Super Bowl submission was no different. Borrowing a page from Victoria’s Secret, a few of PETA’s leggy veggies turned up the heat and brought some serious steak-free sizzle.
This morning, February 3, Denny’s is treating America to breakfast. Seriously.
For the most part, this year’s Super Bowl ads were lackluster at best (Deja vu. I think I wrote the same sentence last year). Bridgestone’s Mr. and Mrs. Potato Head spot was cute and funny if you ignored the misogynistic overtones. And the Ed McMahon/MC Hammer spot for Cash4Gold.com was simultaneously amusing and terribly depressing. But perhaps one of the most notable things about this year’s ad slots was what was missing. No Big Three. And Hyundai took advantage.
While likely to score high on the favorites lists, Careerbuilder and Monster's Super Bowl fare missed a real opportunity to shoot straight with the American people. More than 100,000 Americans lost their jobs this week, yet both organizations once again positioned their sites as resources for disenchanted and disrespected workers looking for more rewarding careers.
A new campaign from Diet Pepsi is an odd departure for a brand long-associated with hip celebrity. No Sean Combs or Jackie Chan here. No dramatic red carpet entrances or Hollywood magic. Just a young professional and a sobering dose of reality.
At the risk of crossing Oprah, we question whether the Starbucks “I’m In” initiative was the best way for the struggling coffee giant to tap into the zeitgeist. No doubt the election put a premium on optimism and grassroots participation, and admittedly, the campaign’s execution to date has been flawless, earning major endorsements and plenty of ink. But does a populist rally cry from a company that sells $5 Venti Caramel Frappuccinos trigger anyone else’s BS meter? More importantly, does it translate to sales?
I have been following a brand for a while, on Twitter and in general. In 2004 I was walking down the fresh drinks aisle in my local supermarket in Amsterdam when it caught my attention. It was appealing, kind, real, and it stood out. It was innocent.
Sound strategy can flounder in the absence of a clear voice. It’s especially interesting, however, when a shift in strategy causes an otherwise powerful voice to crack.
UE’s Video of the Day recently featured the latest spot in Geico’s Kash campaign. Allstate also recently launched a new spot clearly aimed at retention and equally noteworthy with regards to voice. While Geico whispers from the deep discount bin, Allstate resonates with gravitas. The two spots stand at opposite poles of a broad spectrum of insurance company voices, each struggling to speak to their customers in the context of our current economic realities.
It’s rare to see the first person applied effectively to brand voice. Corona beer does it brilliantly, visually transporting consumers to pristine beaches unsullied by human form. Apple's "Get a Mac" campaign does it metaphorically, caricaturing “PC” as a bumbling, insecure uncle scrambling to hide his inadequacies from a hipper counterpart. But Microsoft’s attempt to counterpunch by commandeering “I’m a PC” as a populist rally cry failed.
What is G? The first spot aired during the Rose Bowl, a black-and-white conveyor belt of people posing, smiling, some instantly recognizable, others vaguely so. Lil Wayne spoken-word poetry: gifts, gold, glory and game. A large white G to close.
Something interesting is happening this holiday season at Walmart. First they partnered with Coca-Cola on Extended Family, a hip, young ditty light years ahead of the company’s recent cringe-inducing Rollbacks campaign. Discount messaging rides shotgun, while celebration drives the brand forward. In Christmas Morning, a 60-second highlight reel of kids joyfully scrambling for a first glimpse at their loot, discount messaging has been hogtied and thrown in the trunk.
Dear Nostalgia Marketers, Oh my God, I am your biggest fan. I’m just smitten with your thirty second windows into my imaginary childhoods. Especially those shot in Super-8 and black-and-white (VHS just doesn’t get me in the mood). Because really, who doesn’t love grainy signifiers that we’re traveling back into a simpler time? With each handheld shot, you nail that dreamy pre-cubicle-meets-Playdoh-smell-on-my-hands paradise. I mean, I think I speak for everyone when I say we wholeheartedly welcome your strip mining of our Hallmarkiest moments.
I was indoctrinated into the cult of car fandom in the mid 80s at the height of the pro-labor, “Buy American” movement. During that crisis in Detroit, angry crowds smashed Japanese imports with sledge hammers on the nightly news. Michael Keaton starred in the Asian stereotype comedy “Gung Ho.” And the American auto manufacturers bought some time with the SUV. We all rallied around the Big Three and their living rooms on wheels, and Detroit bought some time. Unfortunately they’ve been out innovated ever since.
Patrick Davis Partners, the global brand consultancy, today announced that the firm has relocated its headquarters from St. Louis to Atlanta, where the company has operated an office since 2002.
The post-agency age is upon us. With remarkable speed and effectiveness, technologies and consumer preferences have coalesced, forcing a broad and deep cultural demand for direct, honest relationships. The go-between agent is less relevant than ever before, and the global financial crisis is likely the final blow to the inefficient and long-suffering agency structure. Winning in the post-agency age will require these new priorities.
What will Barack Obama do with the first presidential social network once he manages to get elected?
In brand strategy we talk about the necessity of giving people a reason to believe. That intangible aspect of a brand that causes one to pause, consider and ultimately feel right about their choice. People are turning out in droves this election to support their political brand of choice, their reason to believe. Whether it’s Obama/Biden or McCain/Palin, there is passion and belief in the intangible aura that surrounds these candidates.
Rather than provide advice that executives can use to guide their brands through devastating financial times, the overwhelming response, much like the GOP, is simply to spend more on image.
Instead of letting panic rule your agenda in these uncertain days, a strong brand can function as a compass to navigate the troubled markets.
My wife and I recently moved to Atlanta, purging in the process a quarter century of bric-a-brac to make room for our daughters’ plush menagerie and a growing empire of Disney princesses. I’ll muzzle the rant over sacrificing my memory-laden artifacts to their marketing-laden geegaws and turn to the catharsis brand we entrusted to haul away our history: 1-800-Got-Junk.
What is happening in the global financial markets is stunning, surely. I am more stunned, however, by the complete absence of dialogue in the marketing community about this historic moment. Like most stockbrokers who fell into success as markets expanded, most marketers only know how to carnival-call their offerings to cash-flush consumers. Say goodbye to that easy effort. The age of true strategy is at hand. It is make or break, to be sure.
Um, I’m no prude. I’m all for edgy. But Levi’s latest attempt to be relevant seems a little off the mark.
It is, perhaps, one of the few times that brand managers may consider a higher power than themselves, but the differences between traditional media and interactive media requires a relaxed grip. Put away your lexicons and logo specs for a moment and consider three thoughts.
Given the fundamental market shifts of higher gas prices and heightened consumer concern for the environment, adding another crossover SUV to an already crowded space seems like an odd choice for the iconic car brand.
I must admit, I really did not want to like the new Microsoft campaign. I found the initial “Shoe Circus” spot to be silly and irrelevant — an effort that came off as simply trying “too hard” to be funny and awkwardly hip. Then came the joyfully odd bit of suburban “connection” in the latest spot for Microsoft. I love it, have watched it numerous times, and have forwarded it to many people. I have been converted to a Microsoft marketer, if no longer a customer.
Luxury retailers are finally feeling the pinch. So, how is Prada responding? Under pressure, the company has decided to go public.
America has a troubling brand portfolio quandary. Internationally, it seems America is a branded house, with the parent brand operating from the position “military strength.” Domestically, America strikes me as a house of brands, in which each sub-brand (i.e. state) is not necessarily chained to the militaristic meaning of the American parent brand.
Ad Planner service from Web giant announces age of advertising brokerage.
Earlier this month I was discussing fad products in my Marketing class and brought up 80s icon Chia Pet. Immediately my senioritis-inflicted students burst into renditions of the now infamous jingle. That’s impressive name recognition for a brand that peaked in popularity when they were fetuses and sustains itself today only through nostalgic impulse buys and endless line extension. It got me wondering whether manufacturer Joseph Enterprises, with a little outsourced design help, could retrieve the Chia brand from the compost pile.
NBC Universal is still trolling for broadcast advertising dollars the old fashioned way. While they claim to be doing something different, their approach is far from innovative. If NBCU wants to avoid extinction, its leaders should think like portfolio managers.
One of my earliest childhood memories is shuffling into my parents’ tiny bathroom at daybreak, mirrors fogged over with shower steam, to watch my father shave. He frequently ended this morning ritual by depositing a thick dollop of lemon-lime Barbasol on my nose.
London-based designer Orla Kiely has extended her brand to stationery. In so doing she is growing a design language that seems familiar and global at once. It is the right way to build the next major brand.
Maytag’s century-old brand owes much of its equity to Ol’ Lonely, a lethargic Mayberry gent in a blue jumpsuit and replica 40s policeman's cap. Created by Leo Burnett in the late 60s, the ad campaign’s clever premise - expert repair services you’ll never need – emphasizes the brand’s dependability promise.
With an umbrella brand name like Staples, can the company succeed with its launch of an upscale brand?
It's true that there's nothing new under the sun. Also true that sex sells. Oh, true, too, that outrage gets news coverage. And true, so it seems, that Abercrombie & Fitch have become hopelessy lost in marketing cliches with the beautiful boredom of their new Gilly Hicks underwear brand.
In a recent issue of California Management Review (CMR), author David Aaker makes a compelling case for the necessary link between innovation and branding. While I think it’s a good article, the suggested union between innovation and branding led me to focus on a larger topic about value creation within a company.
There’s something about Svedka’s Svedka_grl that creeps me out. Maybe it’s because Daryl Hannah made me feel a little funny as the, um…acrobatic android in Bladerunner when I was far too young to know why.
There are a lot of left turns engineered into DLD . There is always the possibility you might look at a scheduled session and think, “what does this have to do with anything?” and then come away with a completely new idea. You might hear someone speak about their work and be certain they are brilliant and equally certain you don’t completely understand what they’re saying or what it actually applies to. Sometimes you are just knocked out by the beauty or ingenuity of thought processes and topics
A Brand on Any Other Platform Can Still Smell as Sweet There was a lot of talk at DLD about Millennials – 3 billion under age 25 in the world, but fewer of them in the audience. They’re probably at home on Facebook, listening to their ipods, surfing YouTube or canvassing door to door for Obama.
It’s warm in Munich at DLD , and we are talking about audiences. Or what used to be called audiences and now might also be known as fellow users, producers, consumers, colleagues or all of the above. A conference session called “Exploding Media” focused on both the exploding media world and our exploding notion of media – and the implications of that explosion for not just media, but inevitably, also for brands.
{self}Value both direct marketing and narrative marketing.{/self}
{self}Amazon’s Beedle the Bard idea illustrates four criteria any company could use to brainstorm and evaluate content strategy ideas.{/self}
The Trabant, East Germany’s “darling” car turned 50 a week ago. And what a run it had, as it went from East German luxury good and West German laughing stock to a cultural icon in reunited Germany.
After much procrastination, my wife and I finally bought her first new’ish car. I’m on crutches because I’m a klutz, and we needed a vehicle with an automatic transmission that I could drive while I recover. So the timing was right for somewhat selfish reasons.
The cross-over between the digital and the physical space continues as Starbucks and Apple roll out their “purchase what’s playing” strategy. Coupled with an iTunes device, you can now impulsively purchase and download music just as the latte hits your bloodstream. What Apple and Starbucks have embraced here is the incredible power of having thousands of locations all over the globe as distribution points for digital media.
When we counsel clients about online strategy, we frequently use the term “perpetual beta.” The idea is to break the notion of a “complete” web project, that what lies ahead is a continuous learning experience. Corporate response to this is almost universal: Help us make a bullet-proof plan. The problem with “perfect plans” is that they end in perfect failure.
When scanning the news, I caught a glimpse of the headline, “Courtney Love to Launch Her Own Perfume” and naturally assumed it was an Onion article. Really, can you imagine a celebrity LESS appropriate to launch a new fragrance? Oh, ha ha ha, my sides split just thinking about it. What? It’s REAL? Sweet Jesus.
The retail giant's new slogan suggests Wal-Mart is part of a higher standard of living. There's more than one problem with that claim, from internal policies to a lack of marketing vision.
Congratulations. Your business has embraced a digital content strategy. You’ve all settled on the cornflower blue icons. The company president wants to know if you’ve “gotten IT to install the Web 2.0 yet.” You’re sitting in your cube, taking a moment to breathe, thinking that the beast has been slain, the stables cleaned, the rock is on the top of the mountain, and hey, Hell looks nice from up here.
I knew a guy who was worried about his teenage son. He was a good kid, but he was struggling and he had just called to tell his father he was going to drop out of college. Years ago, the father fretted, he’d have shipped the kid off to the military – forced some discipline on him to help him grow up. That had worked for his generation. But the inflammatory world situation no longer made that a viable option in his (or his wife’s!) mind. He was at his wits’ end. So what did he do?
Alcohol companies, by nature of their product, have a greater degree of permission from consumers. People bring their beverage of choice into golden moments of relaxation, celebration, and even hard times. In a hotly competitive market such as alcoholic beverages, it’s vital to capitalize on this permission and the social nature of sharing a drink with a friend.
Marketers seem a bit surprised today that Volvo is evolving its core brand positioning to evoke some sexiness alongside its legendary safety. Anyone who has a confused reaction to this is way behind the times. The tired notion of brand as repeated “one-note” song has hobbled some of the biggest companies in the world. (Wal-Mart’s challenges might be tied back to its singular focus on “low prices,” which led consumers to see the entire company – rich as it is – as “cheap.” And everything Ford is doing is “bold,” right? Except sales.)
Attention, ladies! Playtex is on to the fact that we constantly are talking about, joking about, and otherwise obsessing over our breasts. Constantly, I tell you. And they’ve got a multimillion dollar campaign about it. Um, what? Is a 14-year-old boy the marketing genius behind this?
Last week I started to address what’s wrong with U.S. tennis, reviewing the United States Tennis Association’s (USTA) misguided attempt to interest younger consumers in tennis.
{self}No longer is “we have a website” a sufficient response to the question “What’s your company’s digital content strategy?”{/self}
AT&T, what were you thinking? First you divested an arguably more relevant, fresher, younger and hipper brand for “the new AT&T.” Now, by censoring Pearl Jam’s relatively benign comments criticizing George Bush during your broadcast of Lollapalooza, you’ve given an entire generation of consumers a reason to hate you for being an “evil corporation.” Not to mention you’ve created a rallying cry for net neutrality activists the world over.
Let’s role play. You’re a pharmaceutical company who (allegedly) covered up the dangers of your last billion-dollar drug, for which you’re mired in costly and reputation-damaging litigation. You’re eager to launch a new, ground-breaking drug you can legitimately claim prevents cancer, and you want to avoid a barrage of articles comparing your new rising star to its fallen predecessor. You also need to break through consumer hesitation to early adopt, given your less-than-glowing track record. The new drug vaccinates against an STD. What do you do?
{self}Is there an opportunity to make Yahoo! the soul apart from Google’s machine?{/self}
Wow. It doesn’t get much classier than this. I must admit, I’m not the target audience for team-branded coffins or urns from Major League Baseball. Mainly because I still have a pulse, but also because I’m not a huge sports fan. However, going to the grave in a receptacle plastered with your team colors seems a bit extreme.
Just because you can do something doesn’t mean you should. I learned this the hard way when I was about 10 years old and found out I could stand up on the frame of my bicycle with no hands.
The branding of cities may be popular. But fading corporate approaches don’t work when it is time to capture the true character and competitive value of a place.
So I’m walking through the security line at LaGuardia when a guard holds up my quart-sized baggie and yells, “Whose is this?” Uh-oh, this spells TROUBLE.
Would you trust a skin cream from Pepsi? PepsiCo and Aquafina brand licensee Added Extras are betting you will with their Aquafina Advanced Hydration RX.
This week, Unilever announced a company-wide initiative to ban size zero models from appearing in advertising for any of its products. The company says it “believes in a healthy balanced diet and that both men and women have the right to feel comfortable with their bodies and not suffer from lack of self-esteem brought on by images of excessive slimness."
Mr. Murdoch wants the take it up a notch and buy Dow Jones & Company and the world’s leading financial paper, the Wall Street Journal. Who can blame him, really. His portfolio of holdings could be more balanced, and the Journal certainly could benefit from his legendary approach to cost management.
The cover article of Inc. Magazine’s latest issue asks companies how they are utilizing their intangible assets: brands, customer information, business models, employee expertise, to name a few. While this subject can be a quantifiable nightmare (especially for smaller companies…and auditors), it is imperative for companies of all sizes to address.
Starbucks and other "experience brands" need to evolve into the age of brand meaning quickly. Why? Because the brands that win today are ones that drive social agendas.
Today's New York Times title page announced: Firefighters Symbol of Pride Gets Image Upgrade. Sounded like a rather innocent piece of news. But, as I read on, it became clear that the New York Fire Department's unofficial patches are either being refashioned, or eliminated all together, if deemed inappropriate. These patches are worn on the right sleeve, opposite the department's official patch.
Usually I would argue that service is no more than a price of entry to do business. If companies cannot provide good service, they have no business to be in business. Ironically, service is at the airline industry’s very core, and despite them completely ignoring this fact, many of them are still in business!
Recently Car and Driver posted an April Fools Day blog entry claiming Ford was bringing back the Escort – and I bought it hook line and sinker. Why did I fall for the gag? Because an increasingly out-of-touch and all-too desperate Detroit has been so enamored with its familiar formula of nostalgic branding that the absurdity of an Escort reintroduction didn’t seem outside the realm of possibility.
Maybe, but solid brand strategy and management might be a more tangible and, frankly, smarter move for England’s monarchy. Why? Because Queen Elizabeth II is a brand in and of herself. Look no further than to the movie The Queen and you realize her majesty is an iconic brand in her own right.
As we get more engrossed in the idea and practice of digital experiences, are we missing out on the opportunity to build better physical experiences with brands? There's a huge opportunity here to fuse the world's of design and art with technology and create something new. As way of inspiration, I think it's good to look at the work of artist Olafur Eliasson- who's spent a lot of time trying to understand how we "see", manage, react to and interact with space.
A recent post from BBH Labs turned our attention to a short video clip from management consultant Tom Peters, in which he discusses his perspective on how storytelling isn’t just a marketing hot topic of the day, but rather something that is in our genes as human beings – we translate everything that happens to us in life into stories. If we communicate this way amongst each other as people, why should it be any different when brands speak to consumers?
Where have all the marketing strategists gone? Perhaps the downturn has forced marketers into a more tactical mode; perhaps the lack of strategy is due to leaner teams trying to execute more for less. Whatever the reason, marketing strategy seems to have all but disappeared from the marketing skill set. And this gap has huge implications for marketing effectiveness. When strategy is neglected, the price paid is beyond just dollars out the door; the price comes in terms of fewer opportunities from the target market, lower inquiry rates, and fewer sales conversions.
Meet Jack. He has an abiding interest in soy protein isolate. Or carob-seed gum. Or high-oleic sunflower oil. And can't stop talking about any of it. Jack just met Jill. Yet Jill is edging away from Jack at the gallery opening. Or "unfriending" him on Facebook. And we don't blame Jill. Yet, this is precisely the opening gambit used by many marketers trying to engage with people. This self-absorbed approach is incompatible with basic human nature. And this should come as no surprise, as it is also incompatible with common sense. Yet, it's a trap brands fall into too often, obsessing over the minutiae of what separates them from other brands within a particular category.
How a new view of consumers changed the way we think about products, companies, and economies.
What does winning look like at your organization? Defining success may sound simple, but few strategic plans come to grips with this question. Instead, management teams fall back on broad-brushed vision statements. "To be the best ... the biggest ... the leading ..." that lack the specificity employees need to implement the strategy or provide the benchmarks that leaders can use to measure progress. Should growth strategies be visionary? Certainly. But they should also be concrete. That's what Plan to Win is all about.
In this installment we review the various aspects and formalities of bringing a brand alive, truly alive in social media. Everything begins with establishing the rules of engagement in order to define the boundaries, context, and objectives for conversations. Guidelines such as “don’t be stupid,” “use common sense,” “stay positive,” is not the most useful approach to steering representatives or consumer experiences. While many brands possess a brand style guide, many have yet to adapt it to the social Web.
After coping with the global economic crisis, companies are beginning to aim for growth again. But their approach to managing innovation and the challenges they face haven’t changed. The survey results suggest a few ways to improve.
Packaging creates awareness. Companies can offer a variety or great services, but if marketers don't know how to use them or can't see the benefits, those tools might as well not exist. Search marketers especially know this. So, when Google decided it wanted to bring some awareness to a variety of its tools, expert marketers for the tech company created the "zero moment of truth" and the five Ps of digital marketing. Brilliant.
Google products are efficient, slick and -- as the coders say -- elegant. They get you from point A to point B fast. Really fast. But are they fun? That's the question for the search engine as it struggles to gain a foothold in the fast-growing and here-to-stay social web. That web isn't marked by speed and elegance but rather by pit stops and side roads that allow people to pull over, meet new or old friends, play a game and buy souvenirs. In short, have fun.
It’s possible Apple will become more enterprise-centric in the future, but I doubt it. Why? Because Apple doesn’t seem to target markets in the way other companies do. It targets people. It focuses on users. And Apple lets them decide how and where they’ll use its products. This sounds simple, but in my experience very few companies think this way.
If for one reason or another, you’d slept through the past five years, only to find yourself suddenly awake in August 2010, you’d quickly realize the world of advertising and marketing has fundamentally changed in three major ways. First, subconscious or subliminal communication (and research) has become part of the vocabulary of most marketers. Second, power has shifted from brand owners to consumers - even the most powerful brands know that successful campaigns have to systematically engage consumers, who will in turn use their mighty word of mouth to spread the messages opposed to relying on big media budgets do the work. Third, 2010 is shaping up to be dominated by guilt. Guilt for spending money in the midst of a debilitating global recession, guilt for polluting the world, and finally, parental guilt, as kids increasingly engage in their own online world, far removed from traditional values that were previously the exclusive domain of the family. So what does this mean for a marketer in 2010?
Can companies do well by doing good? Yes—sometimes. But the idea that companies have a responsibility to act in the public interest and will profit from doing so is fundamentally flawed.
While the tech world obsessed about when Facebook would turn on location and morph into a "Foursquare killer," the social network has quietly become something else: the biggest relationship-marketing provider for many brands.
The third tenet of the Marketers' Constitution states, "Marketing must become more effective -- more creative, insightful and accountable." Marketing as a whole encompasses a wide range of activities geared to address and inform the consumer and provide a return on that marketing investment. However, business leaders are challenged to measure the impact of their marketing strategies. A successful plan involves the implementation of three pillars which serve as the basis for marketing effectiveness: Smart consumer insights, Great creative, and Accountability.
Facebook announced a new Places product Wednesday evening that will let users check-in from a mobile device, see who is around them, let friends or the public know where they are, and find interesting, new places. The announcement extends, yet again, the reach of the immensely popular social network, in hopes that the new service will convince its 500 million users to feed more information as they move around in the physical world.
To some, Google has been looking a bit sallow lately. The stock is down. Where once everything seemed to go the company's way, along came Apple's iPhone, launching a new wave of Web growth on a platform that largely bypassed the browser and Google's search box. The "app" revolution was going to spell an end to Google's dominance of Web advertising. But that's all so six-months-ago. When a group of Journal editors sat down with Eric Schmidt on a recent Friday, Google's CEO sounded nothing like a man whose company was facing a midlife crisis, let alone intimations of mortality.
The other day, I got an email from a new friend. The subject line read "Are you a TED talk person?" It linked to an 18-minute video of MIT behavioral economist Dan Ariely talking about the bugs in our moral codes. Other friends have sent me videos of Eat, Pray, Love author Elizabeth Gilbert on the spiritual dimension of creativity; rocker David Byrne on how venue architecture affects musical expression; and UC Berkeley professor Robert Full's insights into how geckos' feet stick to a wall. Each of these emails is like a membership card into the club of "TED talk people." I love being a member of this club. The videos give my discovery-seeking brain a little hit of dopamine in the middle of the workday. But just as important, each one I see or recommend makes me part of a group of millions of folks around the world who have checked out these videos. What links us is our desire to learn; TEDsters feel part of a curious, engaged, enlightened, and tech-savvy tribe.
Andrew Mason figured out how to inject hysteria into the process of bargain hunting on the Web. The result is an overnight success story called Groupon.
The second tenet of the Marketers' Constitution states, "Marketing must build real, enduring, tangible brand value." A marketing environment in which brands are launched, built, tracked and precisely valued will allow businesses, across the marketing ecosystem, to make strategic decisions about how best to build and protect their brand.
Nike's Mark Parker brings together extreme talents, whether they're basketball stars, tattooists, or designers obsessed with shoes.
A recent post by Gareth Kay (of Goodby’s Brand Strategy discipline) turned our attention to a presentation he made at Boulder Digital Works on crafting a creative brief for the post-digital age. Kay begins by taking a (somehow comical) look at creative brief templates of yore (1992), which mostly all addressed a very common set of elements: a problem to be solved by advertising, consumers to ‘target’, a message to tell them, reasons to believe, and tone of voice. Needless to say that there is a continually expanding set of technology devices and platforms – and respective user interfaces – available in our current culture: from mobile to social media, to desktop and mobile video and others. Their impact includes facilitating a more participatory culture, making us more social, contributing to a more fragmented media landscape and leaving us ‘always on’ and conscious/communicative of our location; these factors need to be considered within an informed creative brief.
K-Mart and Marc Jacobs have something in common: low- and high-end fashion products tend to have less conspicuous brand markers than midprice goods, according to a paper soon to be published in The Journal of Consumer Research. Rather than rely on obvious logos, expensive products use more discreet markers, such as distinctive design or detailing. High-end consumers prefer markers of status that are not decipherable by the mainstream. These signal group identity only to others with the connoisseurship to recognize their insider standing.
Google and Verizon announced a joint proposal on Monday that would allow ISPs to offer premium content bundles over an unspecified global network — an unexpected gambit that would seem to call for separate and unequal internets. The two companies say the guidelines would ensure that no internet traffic of any kind is prioritized over any other kind (with the exception of viruses, spam and the like).
A confidential, seven-page Google Inc. "vision statement" shows the information-age giant in a deep round of soul-searching over a basic question: How far should it go in profiting from its crown jewels—the vast trove of data it possesses about people's activities?
For Blockbuster, the advent of DVDs in the mail was a disruptive technology. The chain relied initially on bulky videotapes and late fees to generate a fat revenue stream, and its scale was huge; smaller, independent stores gradually left the market. Netflix opened a new battlefront, mailing thin DVDs and letting customers keep a disc as long as they wanted. Blockbuster saw the change coming. It even took action, setting up its own mail service. But seeds of destruction had been sown, and Blockbuster is now financially troubled. Netflix, meanwhile, is already embracing technology shifts that will make those red envelopes a quaint memory. Creative destruction has such a cataclysmic sound. But the term, coined by the Austrian economist Joseph Schumpeter to show how capitalism destroys companies as more innovative ones succeed, describes a process that is more like a slow-motion train wreck.
Mark Anderson, the high-tech industry’s most accurate prognosticator, foresees an economic landscape still under the stress of too much liquidity — and decision makers still in denial.
I love baseball and will always await the first day of spring training with the ardor of a lover coming home after an exile. But I will never be a baseball player. It’s just not in my make-up. My misery over my failed baseball career is no different than Google’s. The world’s largest search engine covets a key to the magical kingdom called the social web. It would do anything to become part of that exclusive club that, for now, is the domain of Mark Zuckerberg’s Facebook and to some extent, Twitter. Google will do just about anything to get social, like spend a rumored $182 million on San Francisco-based Slide, a head-scratcher of a deal.
The first tenet of ANA's Marketer's Constitution is that "Marketing must become increasingly targeted, focused and personal." We all know that marketing works best when brands can have direct conversations with people. It works even better when those conversations are with audiences that want to hear specific product and service messaging. The simplicity and elegance of this objective is finally becoming reality.
Product cycles aren’t getting shorter. They’re disappearing. Retailers are concentrating on their store brands and giving shorter shrift to national brands and manufacturer partnerships. They’re culling nationally branded products that fall short of sales and turn expectations from shelves. Sometimes, these metrics aren’t even used as justification!
In early 2008, Microsoft Corp.'s product planners for the Internet Explorer 8.0 browser intended to give users a simple, effective way to avoid being tracked online. They wanted to design the software to automatically thwart common tracking tools, unless a user deliberately switched to settings affording less privacy. That triggered heated debate inside Microsoft.
While 2009 was arguably the year brands embraced the iPhone, developing apps left and right, the iPad doesn't seem to have inspired the same enthusiasm. Magazines have embraced the iPad, but despite the product's hype, larger screen and dual-touch technology, brands haven't followed suit.
Tony Hayward, the departing chief executive of BP PLC, is unrepentant about how the energy giant responded to the U.S.'s largest offshore oil spill. In his first interview after agreeing to step down from the top spot this week, Mr. Hayward said he did everything possible once the Deepwater Horizon rig exploded and sank in the Gulf of Mexico, by taking responsibility for the spill, and spending billions of dollars to stop the spewing oil and clean up the shoreline.
At the heart of the Ryanair business model is differentiation of the finest and most deliberate kind. I would - in all seriousness - rank Ryanair next to Hermès or Pret a Manger in terms of brand positioning and execution. Ryanair’s brand associations centre on three key themes: low-price, no nonsense and aggression. Don’t underestimate points two and three.
Now that Saab is Swedish again -- or at least Scandinavian, having been wrested from General Motors by Danish company Spyker earlier this year -- the automaker is hoping to bring back consumers who have departed over the years.
Not so long ago, brands were in the limelight. They were seemingly powerful, and virtuous. Any inconvenient truths were hidden by glossy packaging and one-way, big-bang marketing campaigns. Now, as organizations become ever more transparent, people can see behind the marketing facade and are questioning what they are told.
In psychology, the term "identified patient" refers to a family member — often a child or a teenager — who gets scapegoated for behavior that is actually just a predictable response to dealing with an unhealthy family. Tony Hayward is BP's identified patient.
Google Inc. is in talks with several makers of popular online games as it seeks to develop a broader social-networking service that could compete with Facebook Inc., according to people familiar with the matter.
Recent breakthroughs in neuro-science confirm what we marketers know in our guts, but sometimes forget in the day-to-day rush of preparing the next ad campaign launch. Namely, everybody feels (emotions) before they think (rational decision), and without generating the appropriate emotional response, no ad campaign can succeed. Here are some guidelines to help avoid that fate.
In a study out today, Forrester finds that only 4% of U.S. online adults have ever used location-based mobile apps such as Foursquare, Gowalla and Loopt. Only 1% update these services more than once per week. What's more, 84% of respondents said they are not familiar with such apps, leaving the vast majority of Americans online still in the dark about location-based apps, which have had the marketing world obsessing over them in recent months.
Marketer interest in the NFL has been so strong that the league actually moved to reduce its number of sponsors to 21 for the upcoming season from 30 corporate partners in 2001 and 24 in 2008. The purpose was to avoid the sponsor-overload of, say, a Nascar, which has done a good job of delineating the categories for its partners so there are no conflicts but, nonetheless, still has 49 corporate sponsors.
The rock-star CMO is dead, but the post-rock-star CMO is quietly living pretty large. The era of the high-profile, big-personality, high-production-value chief marketing officer -- which was already going wobbly as the recession began -- has ended definitively with the departures in the past year of the likes of Unilever's Simon Clift and Kodak's Jeff Hayzlett. Yet the less-ostentatious personalities that increasingly populate CMO slots have something their rock-star forbears lacked: power.
BP’s board is expected on Monday to name an American, Robert Dudley, as its chief executive, replacing Tony Hayward, whose repeated stumbles during the company’s three-month oil spill in the Gulf of Mexico alienated federal and state officials as well as residents of the Gulf Coast. The planned appointment of an American to run the London-based company, which was confirmed by a person close to BP’s board, would underscore how vital the United States has become to BP.
After the dogged recession and uncertainty of recent years, it seems we're coming out of it in a more hopeful, optimistic mood. So why not focus on positive emotion and happiness in marketing? We've always believed in leveraging "enjoyment" for the consumer brands we work with. Nothing elicits more of an emotional response from people than associations of "enjoyment" with brands.
Everyone knows they should eat fruits and vegetables. Few people hear it from fast-food companies and snack purveyors. That is changing as companies that make foods rich in fat and salt aggressively market healthier options.
The trouble: the T400 doesn’t have “it” quality. It is a business machine in the most pedestrian sense of the term. No trace of elegance. No claim to being the pick of the technological litter. No “wow” factor. The T410 is just another business machine. This takes us into one of the thorniest issue in the branding world. What is “it?” And what’s “it” worth?
A brand crisis can take many forms, which can linger differing lengths of time, depending on the survivability of the brand. Every corporate brand crisis is unique; each has a starting point when the CEO becomes responsible for the survival of the company. BP's bumbling management of its Gulf crisis, its seemingly endless decision-making process, not to mention post-crisis effects that will last decades, make this crisis unprecedented. Tyco, Texaco, Dynegy, IBM, Enron, Worldcom and Citigroup are a few of the crises we've studied. Some companies survived not only intact but emerged stronger than ever. Others were destroyed, or forced to merge. A handful limped on, weakened but not ruined.
A mass marketer needs to reach the masses, and to do it in many ways, simultaneously. The mass marketer needs retail outlets and fliers and a website and public relations and tv ads and more more more and then... bam... critical mass is reached and success occurs. Best Buy is a mass marketer, but so are Microsoft and the Red Cross. Ubiquity, once achieved, brings them revenue, which advances the cycle and they reach scale. The direct marketer, on the other hand, must get it right in the small.
Most companies are barely prepared to deal with unhappy customers who use social media to air their gripes. Now they must be ready to respond when organized entities, such as Greenpeace, wage massive campaigns against their brands using social media channels.
Business leaders face the most disruptive market conditions in decades as competition keeps increasing, large rivals continue to compete aggressively by buying market share, new entrants are more nimble and substitute products seem to pop up almost at every turn. To deal with these changes, telecommunication providers -- telephone companies, cable TV companies, wireless companies and satellite TV companies -- need to change their organizational design as "inside-out" structures that put products, not customers, at the center of the organization. They need to become truly customer-centric, and to get there, they need to take these three critical steps.
Old Spice has made history, dominating YouTube last week with 8 of the 11 most-watched videos on Friday and racking up tens of millions of views. Its "Smell Like a Man" campaign, in which its spokesmodel quickly shot mostly unscripted and hilariously funny replies to nearly 200 online inquiries (including some from famous people). It prompted numerous copycat videos and got covered by just about every news outlet in America. Now what?
Pepsi is engaging in a bit of war re-enactment, remaking a well-known comparative commercial, but with a twist, replacing Coke and Pepsi with the sugarless versions Coke Zero and Pepsi Max. The new spot, by the TBWA/Chiat/Day division of TBWA Worldwide and directed again by Mr. Pytka, uses the same setup, except this time the drivers drink Coke Zero and Pepsi Max, and the song is “Why Can’t We Be Friends?” by War.
I’ve finally gotten around to reading “The Opposite of Fate: A Book of Musings,” a book released quite awhile ago by Amy Tan, the author of best-selling novels like The Joy Luck Club and The Kitchen God’s Wife. Tan includes many insights about story-telling and communication in general which I believe can be applied to developing brand strategies. One of such “musings” is “Five Writing Tips” — an edited version of a speech given as a commencement address at Simmons College, in Boston, in 2003. Although her remarks were intended to inspire a new generation to write and think differently, I found they also provide helpful guidelines for creating brand strategy.
Audi has spent several years building brand awareness and consideration in the U.S. market. Now the company, which saw sales increase 28% in June, is hoping to join the ranks of bona fide luxury brands. The company has focused much of its marketing muscle on vehicles like the A4, but the next phase will be a raft of premium vehicles positioned against vehicles like Mercedes-Benz S-Class and BMW 7-Series, says Loren Angelo, Audi's U.S. brand marketing manager.
One of the modern Holy Grails of advertising is to translate a successful TV campaign into a monster viral Internet phenom. Working with their client Procter and Gamble, the advertising firm Wieden+Kennedy opened the ark with its online work for Old Spice. The campaign is simple: The manly star from the TV spots responds to queries on Twitter via humorous 30-second YouTube videos that are being watched and re-tweeted with abandon.
Two venerable brands have recently sidelined their names in favor of initials. National Public Radio now wants to be known as "NPR" while the Young Men's Christian Association — the YMCA — has abbreviated its abbreviation to, simply, "The Y." But aren't "NPR" and "The Y" already de facto brand names?
The world may not need another social network. But Google does. Google needs a place where people can easily congregate and communicate. A place that's as easy to understand and use as Google.com. A place that people "like." Why?
The Cannes Film Grand Prix-winning Old Spice campaign has evolved over the last 24 hours to dominate discussion in social media, in what is sure to become the ‘case study du jour’ for the foreseeable future. Yesterday, however, the marketing campaign took a different turn and really got ‘social media right’. It’s been updated and sees Isaiah Mustafa respond directly to YouTube comments, Tweets, Yahoo! Answers and blog posts about him in 117 publicly available, timely and pesonalised video messages. So what are the results? It’s still early to tell, but a few things are apparent.
Mr. Steinbrenner became a marketing asset who not only enhanced the Yankees' brand, but helped rebuild the U.S. Olympic Committee's brand and transformed his own personal image through TV commercials, a hosting gig on "Saturday Night Live" and signing off on the self-deprecating pop-culture portrayal of him on "Seinfeld."
While marketers traditionally were the direct channel and voice to the customer, creating direct mail, advertising and corporate press releases. CMOs today must develop advocacy programs in order to scale, increase credibility and demonstrate commitment to customers. In doing so, marketers will develop a low-cost trusted unpaid army of customer advocates.
It wasn't a multi-million dollar television campaign for a Fortune 50 company, nor was it a digital media program for some new-age service. Instead, the Grand Effie award was given to the Detroit Public Schools (DPS) for a very simple, and cost-efficient word-of-mouth program to encourage student enrollment. Here's what they did.
Designing a new brand platform for a 160-year-old organization is no easy task, particularly when that organization is as diverse and well-known as the YMCA. The new brand platform involved a two-year development process that looked to reflect the character of the more than 2,600 individual "Y" organizations around the country.
By now you've heard the offense against basketball star LeBron James' one-hour TV special to announce his team choice -- that it was narcissistic, sullied his brand and blurred the journalistic line for ESPN. But what you haven't heard is the defense of the man who helped put the show together: uber-agent Ari Emanuel, who says "The Decision" forwarded the paradigm for advertiser-funded programming.
Domino’s last week introduced an industry first: A transparent pizza. The chain, working with Crispin Porter + Bogusky, attempted to one-up competitors on the authenticity front by announcing that all the photographs of its pizza that will appear in ads will from now on be devoid of “fancy food artistry” or “fancy touch-ups.”
Observers are wondering why Canton, Mass.-based Reebok, after successfully readjusting its focus to target the women's market, and making great gains with both its ZigTech training shoe and its Easy Tone sneakers, would get back into the basketball-shoe endorsement business when that sector of the sneaker world is losing market share.
Corporate social responsibility, or CSR, means companies aligning their values with a greater good and taking action to have a positive effect. They often do so through "cause marketing," joining forces with nonprofit organizations and focusing ad campaigns on those philanthropic relationships. Why are more companies than ever flaunting their good works this way? Partly, experts say, because they realize that their employees want to be part of a business that does more than just make money.
Many departments within a corporation will argue the need for accountability in marketing, but none steps forward to take ownership of how to account for brand equity. Theoretically, the CEO is responsible for the value of the corporate brand. Unfortunately, it is a rare CEO who understands how brand equity value is created. CEOs would love to see their company prosper, but few understand how to take command or utilize the tools available to make it so.
Now Kleenex, the brand that invented facial tissues 86 years ago, is hoping to bolster summer sales with packages that resemble wedges of fruit and look more at home on a picnic table than a bedside table. The A-frame packages, featuring fruits like watermelon, orange and lime, were available only at Target last summer, and are being sold at all major retailers this summer.
The top advertising spots--actually the best whole branding campaigns--have always begun with a flash of brilliant insight about a category and its primary audience, something meaningful that no one noticed before. Call it an observation of the obvious, a point of view that captures a profound and different truth about a product that no one else has seen.
Social Media started out as a bit of a novelty — a playground for the “geekerati.” But it has taken hold as a game changing force that will reshape advertising at its very core. It’s time to move past debates about traditional media co-existing with social media. Madison Avenue should see social media as a wonderful, if not disruptive, gift. It should run hard to catch up with the consumer, let go of legacy business models and build something better.
Did ESPN just get "mediajacked"? Come Thursday, in prime time no less, ESPN gets the exclusive. But to do it, the Disney sports network appears to have sacrificed revenue -- and even some journalistic control by letting Mr. James choose one of his interviewers -- in exchange for the ratings and buzz the event is likely to provide. Commercial revenue from the special program -- which is being called "The Decision" -- will be donated to Boys & Girls Club of America, a charity that ESPN and Disney also support.
What did I learn on Take Our Board Members to Work Day? It's a nice idea but our day revealed that nice ideas don't often translate into reality. I didn't change ROI's understanding of my job; it's as if he and I live on two different planets. We certainly don't share the same language, though there's one thing on which we agree when it comes to the many disconnects.
No one is an expert, and it is only through a multidisciplinary process that it all comes together; materials, process and design. There must be a meaningful confluence of the elements otherwise it will be like sticking wood laminate on a laptop to make it more valuable. Furthermore, this requires stepping away from the computer and getting reacquainted with materials and processes. Indeed this is quite a hat tip to the old school craftsman approach to design.
When I started out in advertising almost 20 years ago, the firm I worked at had a simple mantra. Promise a lot. Deliver more. And we did. It was our "ad" you might say and the founder of the firm believed that every day we had to live up to that ad. If we didn't, then over time we'd fail and eventually that failure would cause us to lose many a client. I've never forgotten that lesson but alas I'm reminded every day that companies around our fine country have.
Levi's annual Fourth of July campaign, Go Forth, this year focused on the theme of work and on the residents of the recession-battered community of Braddock, PA. Check out its latest campaign above and after the jump, including a spot for Levi's Workshops, inviting the public to "roll up your sleeves, get your hands dirty, and get down to work" at workshops located across the U.S.
Forest Hills-based JetBlue has prided itself on being a challenger brand and, in doing so, has become one of the hottest brands in America.
Google is preparing yet another attempt to crack the social networking market. The project is reportedly called "Google Me," and it will be a Facebook clone. What are the odds that Google finally gets it right with social networking? Not good. At least that's what Silicon Valley's tech insiders think.
Digital is fast becoming so pervasive for marketers that it may soon lose its meaning as a separate media designation, according to Procter & Gamble Co. Global Brand-Building Officer Marc Pritchard. It's one of the many ways the company is changing through a brand-building organization he brought together last year that encompasses all areas of marketing communications.
It's inevitable that as organizations navigate the complex world of sustainability, they will experience some internal cognitive dissonance about how they operate. Nobody said it was easy to balance the competing forces of (a) the inertia of how things have always been done, (b) the desire to meet the assumed needs of customers (for, say, welcoming, well-lit rooms), and (c) new pressures and questions about environmental and social performance. But forcing your customers to confront these choices or, worse, making them do the work themselves, is not a good option.
The number of advertisers with presences in the social media like Facebook, Twitter and YouTube are increasing faster than the lines at the supermarket when the values of the cents-off coupons are being tripled. Now, two familiar brands of baked goods sold by Kraft Foods are stepping up their marketing efforts in social media.
Wal-Mart's move to eliminate 20 million metric tons of greenhouse gases from its supply chain in the next five years is impressive. It's also an example of the world's largest retailer exerting a blunt form of regulatory vigilantism.
Did you know that the US is the world’s second-largest Spanish-speaking country? It’s true. In fact, there are 46.3 million Hispanics in the US today, and 20 million of them use the internet. Are you targeting the Hispanic market with search? If not, perhaps it’s time you considered doing so.
PSFK sat down with Anna Klingmann for a conversation covering trends in architecture as they pertain to sustainability and health. Her agency, Klingmann, specializes in a niche area where architecture meets branding. Although not all applications of branding will bring about improved communities and healthier living/working spaces, Klingmann’s work clearly demonstrates the importance of branding in nurturing a sense of belonging.
Calling on brands to help consumers simplify their selection and purchase experiences makes sense; in the past, brands have served as the most important institution and clarifying mechanism there is in the marketing world. They have acted as liaisons between company and customer; they're descriptors, promises, expectations and attitudes, all together. But brands themselves have caused great consumer confusion of late. We recently completed an in-depth study of 1,488 consumers; as the results attest, 70% perceive the brands they know, based on memory, in the categories they want to go shopping for, as confusing. And at the point of sale, brand confusion more often increased rather than decreased.
While the Rolling Stone article "The Runaway General" created enough of a flap to lead to U.S. Gen. Stanley McChrystal's public downfall, it also represented the culmination of the very heady rebirth of a counterculture brand.
The first of Apple's iAds are expected to start popping up on iPhones later this week, but don't expect all the marketers that have committed to the platform to be there. A check-in with declared iAd advertisers found that many are still in the early stages of flushing out concepts and creative. Some are weeks -- perhaps months -- away from having an iAd in the system. What are the i-advertisers up to? Here's a look at some of those willing to share.
Feature proliferation is the name of the game in new product development. Most innovation in the market is composed of incremental improvements to what's been done before. Yet those new features often outpace what the consumers actually want. In the case of the Fusion, Gillette had to launch a marketing campaign specifically targeted to their own Mach3 consumers. Instead of campaigning to steal share from competitors, they had to practically beg their own consumers who were plenty happy with the earlier Mach3 to upgrade to the more expensive Fusion. They over-served the market.
Brands identify the source or maker of a product. Based on what customers know about the brand, they can form reasonable expectations about its benefits. Companies believe that brands contribute to reducing risk by helping buyers avoid a purchasing mistake. It is also a widely held belief that brands are financially important to companies.
There is a good chance that if you are reading this article you already have a personal Facebook account. There's also a possibility that many of you may be trying your hand at tapping into the power of the 400 million-plus members on Facebook. However, Facebook's recent announcements on how its platform is evolving may be as clear as mud. To that end, the goal of this article is to break the latest news into four areas: 1. Graph API 2. Analytics 3. Storable data 4. Social plug-ins. Within each area, we'll translate the technical into what it means (at a high level) and, most important, how brands will benefit.
You've seen him in those commercials for BP. An unassuming man wearing an orange polo and wire-frame glasses approaches the camera as he walks along a generic dock and says, "I'm Darryl Willis. I oversee BP's claims process on the Gulf Coast. BP has got to make things right, and that's why we're here." Mr. Willis has been setting up and overseeing BP's claims offices in the affected Gulf Coast states -- a juxtaposition that some commentors on black-focused blogs said has undertones of racial perfidy. Nonetheless, Mr. Willis, a married father of two children, has become the most visible face of BP. Ad Age spoke to Mr. Willis via phone as he was en route from Florida to New Orleans.
The public image of Goldman Sachs, the investment bank, has suffered in the wake of the credit crunch with a famous article in Rolling Stone magazine describing the organisation as a “great vampire squid wrapped around the face of humanity”. BP is widely perceived to have compounded the damage done to its image by the oil spill in the Gulf of Mexico through a poor public relations and crisis management strategy in its aftermath. What affects reputations in turn affects brands. It is too soon to say how badly the Goldman Sachs and BP brands will be affected but it seems certain that they will be. And what all of these examples highlight is how hard it is to manage reputations.
Apple, without a doubt, is creating a massive sea change in how we interact with digital content. Note that I didn't say "the Web." This is because the millions of iPad and iPhone users spend more time within Apple's walled garden of apps rather than in a browser. However, there's a potential dark side to the millions of Apple devices being sold and it should give every marketer pause.
A campaign for a clothing brand is rolling up its sleeves, figuratively and literally, as the ads are set in an actual distressed town and the advertiser donates money to help revitalization efforts there. The campaign is for the flagship Levi’s brand sold by Levi Strauss & Company, and it is the start of the second year of an initiative that carries the theme “Go forth.”
Forever 21 Inc. is set to open a massive new store in New York's Times Square on Friday, the latest and most aggressive step in the low-priced fashion retailer's plan to expand from a clothing boutique into a department store. The privately held, Los Angeles-based company is expanding aggressively at a time when most retailers are holding back or downsizing, a move enabled in large part by the recession.
AT&T’s exclusive deal with Apple for the iPhone in the U.S. has proven to be something of a mixed blessing. It has delivered new customers and lined its corporate coffers, but it has simultaneously strained the very fiber of the AT&T network. Faced with new but unhappy customers and a flailing brand image, AT&T is turning to social media for a quick fix. In keeping with its "Rethink Possible" campaign, it's taking its customer care service to the social Web.
There’s no shortage of big initiatives going on at Facebook these days. We sat down with Facebook CEO Mark Zuckerberg this week to talk about the state and future of Facebook and its surrounding ecosystem. Zuckerberg shared his thoughts on recent changes to the Facebook Platform, competitive dynamics he desires amongst developers, the surprising growth of the social games business on Facebook overall, his vision for Facebook Credits, market perceptions of Facebook’s revenue streams and overall revenue numbers, what the company learned from its period of serious interest in Twitter, and Facebook’s company culture around money.
Aleksandr is one of the more prominent examples of the trend for animated characters or puppets to act as brand ambassadors. US consumers have long been charmed by the frogs that feature in Budweiser’s advertising or the cockney gecko that stars in Geico’s campaigns. Meanwhile, Domo, the saw-toothed mascot for Japanese broadcaster NHK, has gone on to appear in video games and comics, and spread virally online. But the proliferation and popularity of these creations and the merchandising they have spawned raises questions for both brand owners and advertising agencies hoping to capitalise on the value of the intellectual property.
I think I've finally got the answer, and I can thank two smart CMOs for coming up with it independently of one another (you know who you are): Your brand is what's going on when you and your customers aren't looking. That means that branding is how, when and why you and your consumers choose to see and talk about it.
This month’s Forum covered an email marketing company which had experienced great success as a trailblazer years ago. But now as the gap between the company and the competition has narrowed, the company realizes the need to respond with a robust next generation solution. The founder explained the history of the company, introduced the company’s new offering, and asked for advice on the best customer value proposition for this new version – should it be a suite of brand management and marketing services OR an email marketing provider which also offers related services?
Getability is simply how easy an idea is for someone to immediately understand without a whole lot of explanation needed. When your marketing has getability, it means that it is simple, clear and memorable. This matters for good reason. Marketing that is complex or confusing rarely works. To help their getability, two brands in particular are using a technique that may be worth considering when promoting your product or service ... they are giving an ownable name to the problem they solve. The recent marketing from Dyson around their new Air Multiplier fan is one great example.
The past is making a comeback in brands and branding today and it's not unusual at all. Marketers recognize that in our weird and wonderful minds we believe former days are better days and that even people too young to remember feel a fondness for places and products that evoke happier times.
A brand has to have a reason for being. It should make a difference in the world in some way. Moreover, a brand has to have an organization that powers it -- an organization that is passionate and committed to bringing that brand to life in all facets of the company. The power of a brand starts from the people who create the experience every day. And the purpose the brand represents needs to come through at every possible touch point.
The gap between a company's market capitalization and its hard assets is often immense. Consider Coca-Cola Co. According to its 2009 annual report, Coke's total hard assets were valued at $48.6 billion, whereas its year-end market capitalization was $132.8 billion. The huge difference between these two numbers -- more than $84 billion -- represents the value of the company's intangible assets, largely its brands.
John Ross, president of the research and development arm of Interpublic Group's Mediabrands, thinks retailers have a big problem. Their circulars, which worked in the offline world for decades, haven't caught up with consumer habits online.
Twitter this week began testing a new type of advertising: "Promoted Trends." Under the new system, brands can pay to appear below the "Trending Topics," the most talked-about terms on Twitter at any given moment. The idea is, in a word, ingenious -- the perfect way to generate revenue from the popular social network without infuriating users.
Although luxury brands remained surprisingly isolated from the downturn in 2007 and 2008, 2009 was tough on all sectors, including haute couture. Even the acclaimed Christian Lacroix was driven out of business. Naturally, when circumstances call for bold actions, it's tempting to expand your market to enhance your bottom line. But is it possible without compromising the luxury nature of your brand?
At this year's World Cup in South Africa, which kicked off Friday, soccer's governing body FIFA is trying to squelch guerrilla-marketing tactics by those who haven't paid for official sponsorships. It created new "exclusion zones" that restrict companies from advertising close to its venues and hired agents to help enforce the zones. But big-name advertisers including Nike, Puma AG, PepsiCo Inc. and others are finding ways to go over and around them.
BP PLC, under intense legal and political pressure from President Barack Obama, agreed Wednesday to put $20 billion into a fund to compensate victims of the Gulf oil spill, and said it would cancel shareholder dividends for the first three quarters of this year to offset that cost. BP said it would pay another $100 million to a separate fund to help oil-industry workers sidelined by the Obama administration's moratorium on deepwater drilling.
Consumers generated word-of-mouth buzz about the brand, in many cases, without any incentives—something O’Brien sees as being crucial to long-term engagement with fans. In an interview with Brandweek, O’Brien discussed the results of both "DEWmocracy" campaigns, and how, moving forward, social media and crowdsourcing will play a bigger role in the brand’s innovation.
For many marketers, advertising in stores is an increasingly important way to influence shoppers at the so-called moment of truth, as they finally make up their minds about which brands of soup, soap or cereal to buy — or not buy. Now, a company is hoping to bring commercials to the retail point of purchase on screens that will be attached to shelves and above aisles.
Kicking off Nielsen’s Consumer 360 conference in Las Vegas, Irene Rosenfeld, Chairman and CEO of Kraft Foods addressed the ways reaching consumers have changed significantly over the last twenty years and how the Internet and social media are increasingly important components of overall marketing strategies. Previously, brands acted as teachers, according to Rosenfeld. Marketing was designed to build an image around a brand with the expectation that consumers would be attracted to it; they would aspire to the brand. Today, that “paradigm is upside down,” as brands want to learn from consumers and find ways to connect with them.
Repositioning is all about changing people’s minds. Changing the minds of current customers who know the brand and accept its current state is difficult. The most frequent, loyal customers are the most resistant to change – but if they’re not generating enough sales and profits to keep the business growing, they probably shouldn’t be the priority. Changing the minds of folks who have rejected the brand usually depends on the execution of the concept. So, asking consumers about the appropriateness of a brand change is generally not helpful. Instead of assessing brand fit of the new concept, evaluate its unbranded appeal – and then explore how the company might make the concept believable for its brand.
Infiniti from the very beginning has had a difficult time establishing a brand identity and finding a way to execute it in communications. Introduced in 1989, Infiniti was Nissan's response to the introductions of the other Japanese luxury marques; Acura and Lexus. The original Q45 was a sporty performance alternative to the Lexus. Unfortunately, the brand got off to a rough start when it introduced the car and brand with the infamous "rocks and trees" campaign created by its agency Hill, Holliday, Connors, Cosmopulos.
Last week we looked a ranking of the top ten brands on Facebook globally, based on the number of people who ‘like’ them. There were no real surprises – Starbucks came top and the rest of the top ten was filled with well-known consumer and fashion brands. The same dataset, from Famecount, can be used to look at brands on Twitter and, unlike with Facebook, it throws up some unexpected findings. For example the most followed brand in the UK isn’t a consumer or fashion brand, an airline or a bank. It’s a museum: @Tate.
They are among the World's Hottest Brands, an Ad Age Insights global report that tells the stories of 30 brands succeeding on a global, regional and local level. The goal was not to create a list of the largest global marketers or rank the brands that contribute the most to their company's market value -- plenty of others tackle those lofty questions. Rather, we sought to chronicle the brands percolating at the local and regional level; sometimes great marketing lessons can happen in your backyard, sometimes halfway around the world.
In one sense, the public has never been more informed. This is the first spill that has been covered in real time, with streaming high-definition video on desktops and televisions everywhere, network anchors racking up miles flying back and forth, and throbbing info-graphics that track the mess. We can all see the video for ourselves: an angry plume that looks like hell has been breached and is sending a dark, massive emissary to the surface. But to look for clarity amid the murk is a daily riddle. The size of the spill has been a moving target, with estimates recently doubled to 25,000 or 30,000 barrels a day, even after BP stanched some of the flow.
Brandchannel’s weekly Digital Watch feature takes a deeper look at brands’ digital strategy. Our latest case study, McDonald’s, takes a multi-tiered approach to digital branding that cozies up to moms to reinforce its nutritional, family values.
As Nike's top marketer, Trevor Edwards, VP-global brand and category management, has helped the world's leading footwear and apparel company grow its market-share lead by becoming possibly the world's most accomplished digital marketer.
It's kind of like air. Invisible but omnipresent, every industry, market, and sector has a dogma — "a doctrine or code of beliefs accepted as authoritative." "This is just how things are done," dogma whispers, every second of every day, to every decision-maker in every boardroom. What does it mean to be a revolutionary? To challenge an existing dogma, instead of complying with it: to reject its tenets, highlight its flaws and improve each of its shortcomings.
Unilever may be a global marketer, but it hasn't been able to do many truly global ad deals -- at least not until its multimillion-dollar deal with Apple to be the consumer goods "presenting advertiser" on the new iAd platform was announced June 7. For Unilever, the deal aims at tapping the two biggest, and largely interdependent, trends it sees shaping marketing: globalization and mobile digital media.
On Tuesday, G.M. sent a memo to Chevrolet employees at its Detroit headquarters, promoting the importance of “consistency” for the brand, which was the nation’s best-selling line of cars and trucks for more than half a century after World War II. And one way to present a consistent brand message, the memo suggested, is to stop saying “Chevy,” though the word is one of the world’s best-known, longest-lived product nicknames.
Walt Disney Co.'s ESPN network has convinced three major advertisers to produce expensive 3-D commercials for its new sports channel debuting Friday with the 2010 World Cup broadcast. It is the first major test of marketers' appetite for 3-D pitches. Procter & Gamble Co., Sony Corp. and Disney's Pixar will all experiment with spots on the new 3-D sports channel. ESPN has previously aired several 3-D telecasts, including the Masters Tournament.
Pepsi's social media-backed community change effort, dubbed “Refresh Project,” is off to a good start. So far, the soft beverage giant has funded more than 100 projects and given back approximately $5 million to local communities, according to Ana Maria Irazabal, marketing director for Pepsi. With new entries and winners announced every month, the brand is on track to hit its goal of $20 million in grant money this year. "Refresh Project" is also helping Pepsi expands its already massive presence on Facebook, Twitter, and other social nets. The initiative has sparked human interaction and is affecting change in communities, Irazabal said.
Given the variety of needs and considerations by different municipality audiences, the question I most often am asked by stakeholders interested in municipality branding is, “Can one brand position work for a municipality or do we need a separate brand position for each audience?” The answer is “yes.” Yes, one overarching brand position can work but it must be designed to work with more specific brand messages for each audience.
While the Internet and social media are a potential boon to market researchers, they've also raised concerns and ongoing debate about methodology and the ability to project results. Now, one social media-based research firm is charging into the fray with a report that maintains that today's empowered consumers and marketers' need for faster, actionable insights requires an approach that combines the strengths of newer, "humanistic" approaches with those of traditional, experimentally-based research.
A couple of days ago I wrote a post about exposure and visibility and how quality content that is valuable takes time to create. Everyone agrees with that sentiment. However, when push comes to shove, with very few exceptions, people tend to spread content that is more popular -- even when popularity means less helpful, sometimes incomplete. The ability to think critically is a gift -- it's also the underpinning of an effective business strategy, where you work from your core competencies. I worry that much of that ability gets lost to the desire to fit in and become popular -- to make the quick list, in blog parlance.
CEO Steve Jobs also unveiled some new metrics. Among them: Apple expects to control 48% of the mobile display ad market in the second half of 2010; it already has $60 million in commitments for its mobile iAd format; and it has paid out more than $1 billion in revenue to app developers. Here are some takeaways from Mr. Jobs' presentation at Apple's Worldwide Developers Conference today.
The first decisive marketing goal of World Cup 2010 was scored nearly three years before the opening match of the soccer tournament, in which Mexico will face South Africa on Friday. It came when Nike, the American sports shoe and clothing maker, acquired Umbro, a British supplier of soccer gear that is a longtime sponsor of the English national team. The deal signaled a new determination by Nike to challenge Adidas, the German soccer apparel powerhouse, on its European home turf.
Undeterred by criticism of a new TV commercial featuring its leader, BP PLC is pressing ahead with a major ad campaign—in an effort to rescue its badly damaged image—as torrents of oil continue to spew into the Gulf of Mexico. "We are preparing a series of ads to air over the next days and weeks," said Andrew Gowers, a spokesman for the British oil company. President Barack Obama blasted the company on Friday for reportedly spending $50 million on television advertising as the company scrambles to fix its leaking well.
Newell Rubbermaid Senior VP-Chief Marketing Officer Ted Woehrle admits it wasn't always easy going from a world of big budgets at his alma mater, Procter & Gamble Co., to a world of smaller brands with smaller budgets at Newell Rubbermaid in 2007. Nearly three years in, Mr. Woehrle discusses how he's beaten the two-year CMO curse, how he's helped build a marketing culture at a product-focused company and why he's willing to wait for social-media programs to develop organically without big-budget pushes.
Will the idea of a "generation gap" eventually atrophy into obsolescence? We see this not only in the video-game world, but also in other brands: moms and daughters with matching Ugg boots, Juicy Couture sweatsuits, Abercrombie hoodies and Coach handbags. Fathers and sons comparing fantasy football rankings on matching iPhones or killing precious productivity hours on YouTube. Teachers and students sipping from matching Starbucks latte cups or ordering the same items from Pinkberry. Moms and daughters rooting feverishly for their favorite "American Idol" contestants or shaking their heads in utter disgust at the shameless and hygienically dubious conduct of the latest batch of "The Real World" participants.
All of these are disconnected events; a Polaroid snapshot of our psychology at a single moment in time. Some of these memes are ephemeral. Others may be lasting. However, our success as marketers increasingly hinges on having a deep, real-time understanding of our networked environment and how these themes can impact our programs. Enter situational awareness--an essential skill every CMO-level executive and his staff must build and evolve.
As Mr. St. Angelo and several other longtime American executives tell it, a new era has arrived at Toyota. Its face is Mr. Toyoda, who this month reaches his first year as president, and by these accounts, has come to appreciate how closely Toyota flirted with disaster in the United States — and is prepared to shake things up because of it.
In a significant shift in how phone carriers bill customers, AT&T Inc. will stop selling unlimited Internet data plans to new customers that buy smartphones and iPads, and will instead begin charging more for heavy bandwidth users. New AT&T customers will have to chose between two data plans with monthly usage limits—and pay additional fees for extra use. Existing customers, however, can stick with their current plans, AT&T said.
Facebook Inc. Chief Executive Mark Zuckerberg defended the company's privacy practices and expressed regret for some of his behavior during the company's early history, speaking at the Wall Street Journal's All Things Digital technology conference Wednesday.
I've just read that PepsiCo is evolving away from traditional mass market advertising towards an approach that connects with its audience in a direct and more meaningful way. According to Frank Cooper III, chief consumer engagement officer for PepsiCo's US beverage arm, "We want to become a catalyst in the culture rather than act like a big brand announcing something." This is big, big news. It may be a sign that the ship of big brands has finally become aware of the changing environment and is beginning to turn.
Is quality important? Yes. Is Innovation important? Absolutely. Is service important? Of course. Is it desirable to be the industry leader? Sure. However, in more and more categories, as I perform brand audits, I find that large numbers of companies in many categories make these claims, so much so that the claims have become hollow.
Corporate strategists often struggle with strategic options. First, there's a lot of worrying about what they have to come up with to make the proposed option credible: they spend hours on SWOT analyses and spreadsheets, which gives them reasons to kill their ideas at worst and can slow down the process of coming up with ideas at best.
After learning how to market themselves through tweets and status updates, some small companies are taking the next step: selling directly to consumers via social-networking sites. Merchants on Facebook and MySpace are adding e-commerce stores to their fan pages, hoping users will scan lists of for-sale items and services—such as floral bouquets, hand-crafted jewelry and spa treatments—and click a button to add them to online shopping carts.
PBR can trace its success directly to its failure. It started the 2000s as a has-been brand name, so pointless and uncool that it was perfectly poised to become cool when it was touched by the dark, abstract magic that drives consumer trends. No schmarty-pants marketer can take credit for architecting the Phoenix-like rise that followed; the brand was owned by a charitable trust that knows about as much about consumer tastes as you'd expect a charitable trust to know. It didn't hurt that PBR was the beer of choice for the wacky Dennis Hopper character in the movie "Blue Velvet" but the brand's revival was pretty much organic, from what I can tell.
Kentucky Fried Chicken, the serial phony immortalized in some of the most stunningly dishonest marketing efforts of the past 10 years. The chain's latest outrage is a promotion with the Susan G. Komen Breast Cancer Foundation, in which 50 cents is donated to the foundation for every special pink bucket of chicken purchased -- that is, for every 20 grams of sodium, every 2,500 calories, every 120 grams of fat in KFC's smallest pail. Whoa. How low can you go?
Judy Hu, GE's global director of advertising and branding, on stage at the TechCrunch Disrupt conference last week, discussed a new effort by GE to crowdsource ideas for how to "avoid the lame and embrace the awesome" in digital media. Over the next four days, GE collected 60 suggestions, ranging from ideas for ad campaigns to product concepts. The effort is the latest example of a worldwide brand testing the crowdsourcing waters. The move has put the spotlight back on the ongoing debate about the value of such efforts -- including to creators.
Everyone is talking about the new Nike World Cup spot, and with good reason: It's a beautifully told story that transcends media formats to deliver a truly emotional and inspirational experience. In 30 seconds, it appears that Nike finally cracked the code by combining compelling narrative with the power of digital distribution. And, Wieden & Kennedy showed us what it means for a brand to truly participate in culture. Or, did it? Is this really still a way to build a strong digital brand?
How does a company inspire its consumers and what does it mean for business growth? Inspiration Blvd, a brand-consulting firm in Alpharetta, Ga., surveyed 1,752 consumers to identify America's top motivating companies. Conducted online, the survey asked consumers to pinpoint influential indicators--such as innovation, reliability, growth, charity--and to freely describe companies they see as inspiring. The goal was to determine a correlation between successful companies and companies that inspire their consumers, says Terry Barber, chief inspiration officer of Inspiration Blvd. "We set out asking whether companies that inspired others were more likely to connect and draw shoppers," Barber says. "We see now there's a strong link between the message consumers take away and how they act on it."
We are living in a world of skeptics, where credibility remains essential to engaging customers in a conversation. Yet companies no longer get the benefit of the doubt they once could expect. In this environment marketers need to remember the long-forgotten best policy concerning honesty--something often obscured in today's ultra-sophisticated marketing and communication dogma. When it comes to effectively engaging your audience and truly establishing trust, talking about a product's weaknesses can actually be the best way to communicate its--and your--strengths.
The upfront market, the annual mating dance in which ad buyers and major broadcast networks haggle over ad time for the new TV season, is heating up, and could be sold out in a matter of weeks, ad buyers and marketers say. It's a major reversal from last year when talks dragged on through much of the summer in a harsh economic climate.
Coke & Pepsi are very active in social media and I think their hard work is helping to build up a “trust bank” with their audience. As has been widely reported, Pepsi took their Superbowl ad budget and instead of creating a set of iconic commercials they launched their “Refresh Everything” campaign, in which they asked their audience to come up with ideas to “refresh the world”, in the categories of health, the planet, art & culture, food & shelter, neighborhoods and education.
With the meaning of a brand wide open to public interpretation and prone to hyperbole and misconception, corporate managers must thread a thicket of sticky challenges to successfully communicate brand mission, values and philosophy. Moreover, as brands become the publishers of their own unfolding stories, they need intelligent editors who can provide stakeholders with a stream of high-value content that is packed with utility, seeded with inspiration, and that is honestly empathetic. Anything less will not suffice in a world where consumers can simply click away or spin around and mount a web-wide counter-attack on brands that refuse to walk their talk.
Social Media marketing is not new nor is it widely established or even understood. However in 2010, it will completely transform the way businesses attract customers and the way consumers find the businesses and services that matter to them. And like that, an overnight landmark, which really is over a decade in the making, will challenge business owners, more so than today, as they now compete for the future, right now. Social Networks are no longer the playgrounds we once perceived. The simple truth is this; social networking is not for just for kids or people with too much free time on their hands.
"TV meets Web. Web meets TV." This is the tagline that Internet giant Google has given to its new software-based television platform called Google TV, described as the blending of the best of both TV and Web experiences. Realizing that TV still has the majority of the consumer eyeballs, Google is trying something new by extending its reach in cross-platform content--in this case, bringing Web, gaming, online video, and social media to the set top box and/or television set. According to Google, millions of "channels" of entertainment will now be easily maneuverable, seamless and searchable--in one device. Google has also challenged Web developers to start creating new apps using the Android open-source platform.
By all official indications, the Great Recession has very likely ended. But as marketers, we know better than to interpret this to mean we can pick up right where we left off prior to the steep economic slide. Many consumers have readjusted their budgets and some continue to cope with concerns about the security of their jobs. Even those who have not been directly touched are still anxious about the future. Things that once mattered to our customers no longer seem so important to them. That's why we have to reconnect with them in a way that reflects their new reality.
Facebook's imbroglio over privacy reveals what may be a fatal business model. I know because my students at Parsons The New School For Design tell me so. They live on Facebook and they are furious at it. This was the technology platform they were born into, built their friendships around, and expected to be with them as they grew up, got jobs, and had families. They just assumed Facebook would evolve as their lives shifted from adolescent to adult and their needs changed. Facebook's failure to recognize this culture change deeply threatens its future profits. At the moment, it has an audience that is at war with its advertisers. Not good.
Mountain Dew took three new Dew flavors to fans, asking for feedback on placing ad media buys. The move represents the latest in a series of attempts through Dew Labs to turn over the entire product development cycle and marketing process to consumers who love the brand most.
There's been a lot of buzz about the long-tail phenomenon—the strategy of selling smaller quantities of a wider range of goods that are designed to resonate with consumers' preferences and earn higher margins. And a quick scan of everyday products seems to confirm the long tail's merit: Where once we wore jeans from Levi, Wrangler or Lee, we now have scores of options from design houses. If you're looking for a nutrition bar, there's one exactly right for you, whether you're a triathlete, a dieter or a weight lifter. Hundreds of brewers offer thousands of craft beers suited to every conceivable taste. It's not surprising that so many companies have embraced this strategy. It allows them to avoid the intense competition found in mass markets. Look at the sales growth that has taken place in low-volume, high-margin products such as super-premium ice cream, noncarbonated beverages, heritage meats and heirloom vegetables. But the case for the long tail has frequently been overstated. This strategy can be expensive to implement, and it doesn't work for all products or all categories.
Today, much of the marketing world has embraced the spirit of the digital age, and perhaps the strongest evidence is that it's doing a lot of work that's not so, well, "digital." The best companies have harnessed the digital mindset and taken the shareable, ongoing, interactive, participatory nature of digital and created brand experiences that matter to people where they ought to -- in their real, everyday lives.
Plummeting newspaper circulation, disappearing classified ads, “unbundling” of content—the list of what’s killing journalism is long. But high on that list, many would say, is Google, the biggest unbundler of them all. Now, having helped break the news business, the company wants to fix it—for commercial as well as civic reasons: if news organizations stop producing great journalism, says one Google executive, the search engine will no longer have interesting content to link to. So some of the smartest minds at the company are thinking about this, and working with publishers, and peering ahead to see what the future of journalism looks like. Guess what? It’s bright.
When top executives set out to build well-regarded companies, most start in their home countries. If they're successful, strong business practices and values they craft there will translate overseas. As companies become more connected and businesses more international, creating a first-class reputation across borders is critical. For some companies, this can be the difference between success and failure. So what is the secret to earning esteem that spans the world? And which companies are best at doing it?
Numbers are the universal language of business. We use them to attract investors for our startup ideas, to win approval for product introductions, to make the case for expanding into new markets or entering new categories. In other words, numbers, when used well, tell a compelling story. So why is it that so many of the numbers we encounter in business — from endless Excel spreadsheets to bloodless calculations in business plans — make our eyes glaze over rather than set our minds racing?
We've all been there. It's that dreaded moment of truth when you realize that having The Talk, The Big Conversation, perhaps even The Great Ultimatum, is inescapable. It could involve your child, your spouse, your subordinate or your colleague. But in every case, it only arrives when it's too late to pretend that the conflicts aren't there or don't really matter. If you're in marketing, that moment often means getting to the bottom of differences that, in so many companies, force your own professional efforts out of phase with those of sales. And in a dicey economy, when doing more with less has become a mantra, alignment between the two functions has now become a core survival strategy.
In the massive new Barnes & Noble superstore on Manhattan's Upper East Side, generous display space is devoted to baby blankets, Art Deco flight clocks, stationery and adult games like Risk and Stratego. The eclectic merchandise, which has nothing to do with books, may be a glimpse into the future of Barnes & Noble Inc., the nation's largest book chain. Electronic books are still in their infancy, comprising an estimated 3% to 5% of the market today. But they are fast accelerating the decline of physical books, forcing retailers, publishers, authors and agents to reinvent their business models or be painfully crippled.
Like motherhood and apple pie, corporate social responsibility has achieved iconic status as a feel-good pursuit. Corporations around the world have embraced its charitable philosophy and created divisions devoted to its pursuit. The problem, however, is that corporate social responsibility — by design and definition — can only go so far. Because no matter how widely a firm defines its reach, and how generous its leadership grows, the primary objective of any for-profit firm in a capitalist system will still be as Friedman described it: to maximize the returns of its shareholders. Or at least not to engage in any activity that undermines those returns.
In a time of big promises and increasing consumer skepticism, building a strong corporate brand starts with understanding the truth about an organization.
Though the economy is now hinting at improved conditions ahead, consensus remains that the recession's effects on consumer spending habits will endure beyond the recovery. Much like the Great Depression changed the spending habits of a generation, the current recession has left consumers reaching past the lure of luxury in search of value-driven purchases. While this has been a boon to mass and value-priced retailers such as Target and Amazon, it has left many premium brands swooning.
Rather than seek increased revenues and profits by expanding products and markets, companies should follow a seven-step strategy for achieving more with less.
Since late 2005, Apple's stock has quintupled. With a market capitalization of close to $250 billion, Apple is (at least today) the third most valuable company in the world, behind ExxonMobil and Microsoft. It's a stunning story that's been dissected to death, but still remarkable enough to warrant reflection. Ten years ago — three years after Chairman and CEO Steve Jobs had returned to "rescue" Apple — the company was still largely treading water, with a relatively meager $3 billion market capitalization. Its personal computer products had a loyal following in niche markets, but that was about it. Over the past decade, Apple has launched five legitimately game-changing innovations.
Intel has a new plan for growth: getting in good with young, hip adults. This week the Santa Clara, Calif., processor giant launches, in collaboration with the Montreal-based magazine Vice, what it calls the Creator's Project--a multi-year, international marketing program designed to showcase technology-influenced art, film and music.
Comparing Starbucks and McDonald's may not seem to make sense at first, but the two chains actually have a lot in common--namely, they both promise quickie and easy food and beverages on the go, and both companies have recently ramped up sustainability efforts. In the new book The HIP Investor, author R. Paul Herman attempts to compare the two mega-chains. Below, we do the same.
US retailers have become engaged in a battle for hearts and mobiles. As leading retailers, including Walmart and JC Penney, continue to grapple with the potential of the internet, the proliferation of smartphones has inevitably caught their attention. Three years after Apple launched its first iPhone, mobile connectivity is shaking up the way retailers do business, not only online but in their stores.
What's a brand? You realize that no two people, let alone two marketers, agree on the answer. It's a word, a metaphor, an analogy, a concept or some sort of thing with an existence and personality dependent on whomever is doing the defining, where they're doing it, and what they hope to accomplish.
Google Inc. will make an ambitious bid to extend its reach into the living room when it debuts its Internet television software this week. Through a joint initiative with other prominent technology and consumer electronics companies, the Web search giant is expected to showcase technology that TV viewers can use to flip seamlessly among familiar shows, YouTube videos and home videos on their sets.
Woody Allen once said that “80 percent of success is just showing up.” Unfortunately, at purchase decision time, the vast majority of brands never show up at all. Getting consumers to “think” about your brand more often, and in more buying situations, is one of the most under-rated marketing challenges that brands face today.
That social media is a powerful tool for raising awareness is not new news. But its increasing power is leading some advertisers to reconsider how they plan and measure traditional ad campaigns as they increasingly look to so-called earned media impressions as being as important as primary paid media. The promise of what some are calling "free media" is that it's more credible than paid placements, particularly when it comes from consumers speaking to other consumers.
Brand Australia was conceived by the Federal Government of Australia as a four-year program to position Australia internationally as not just a pleasant place to holiday, barbeque shrimp and wrestle crocodiles, but also a nice enough place to perhaps invest a few dollars. And that’s the key to understanding the place this brand is intended to take; it does not replace the tourism brand created by FutureBrand, rather it sits above it as the overarching brand for global citizenship, culture, business and investment. Confusingly, that same tourism brand created by FutureBrand had been in use as the business to business brand under license by Austrade — the government agency responsible for promoting Australia and Australian businesses overseas. Therefore, it’s a before and after, whilst not being a before and after. Still with me?
This is one of those important posts to forward to your marketing team, agency partners, and to Facebook themselves. While there’s been plenty of coverage about user privacy concerns, attention on Facebook’s changes on brands hasn’t been adequately covered, this analysis is intended to unravel what’s at stake –and what brands should do. I’ve spoken to a handful of brands and their representatives to learn what’s eating at them.
Global marketers such as Coca-Cola, McDonald's and Nike are describing the 2010 FIFA World Cup as a larger event than even the 2008 Beijing Olympics. That scale -- combined with the intensity of interest in the sport, the national pride of fans and the fact that it's the first major global sporting event ever held on the African continent -- figures to sell a lot of sneakers and soft drinks.
Striving to do more good is associated with greater profitability, equity and asset returns, and shareholder value creation. But that's still not good enough. Today, the bar is being raised: success is itself changing. Those are yesterday's metrics of success — more importantly, maximizing good lets companies outperform on tomorrow's measures of success.
For big companies, bounding back from corporate scandal, financial malfeasance or public disaster is difficult--but it isn't impossible. Looking at companies that have come back after business downturns, product problems or corporate scandal, several experts on corporate reputation and crisis management helped Forbes identify 10 companies that have made, or are making, turnarounds after corporate hard times.
Defensive branding is protecting and defending brand equity and reputation in an increasingly consumer-driven environment. Think media planning plus actuarial viral risk management. It's first strategic, then tactical. The logic goes something like this: Sandbag before you sell. Protect before you promote. Defend before you dance. Self-critique before you self-destruct.
If Facebook were smart and open and meant what it said about the benefits of publicness and transparency that it now expects of the rest of us, then:
Starbucks is brewing a fresh image for Seattle’s Best Coffee, a specialty brand it acquired in 2003. The coffee giant this week kicked off a rebranding effort, which includes a simpler logo and a new tagline, “Great coffee everywhere.” Starbucks hopes to grow Seattle’s Best into a billion-dollar business by expanding it to fast food channels, convenience stores, drive-through restaurants and even vending machines this fall. But the coffee chain faces a challenge presented by competitors like McDonald’s and Dunkin’ Donuts; both have rolled out lower-priced coffee drinks aimed at penny pinched consumers. That's why Starbucks is rounding up its best and brightest marketers to lead the rebranding effort.
Though I often like to riff on smart or silly marketing decisions, I'm more interested in the business strategy behind brands. In considering Dell and Starbucks, I'd have to say that both companies are utterly and somewhat similarly lost.
Simon Sinek has a simple but powerful model for inspirational leadership all starting with a golden circle and the question "Why?" His examples include Apple, Martin Luther King, and the Wright brothers -- and as a counterpoint Tivo, which (until a recent court victory that tripled its stock price) appeared to be struggling.
Whatever industry you’re in, in the end, everything is about status. And since what constitutes status in consumer societies is fragmenting rapidly, here’s a (modest) framework to help you start exploring new status symbols and stories with your customers.
For Research in Motion, the maker of the popular BlackBerry smartphone, staying No. 1 isn't about apps or fancy hardware, it's about cost effectiveness. For all the hoopla surrounding Apple's iPhone and the various Android smartphones that have hit the market recently, many forget what is still, by a healthy margin tops in the market: RIM's modest BlackBerry. And RIM intends to stay on top by doing what it does best: offering something that's more affordable and can operate on wireless networks more efficiently than its flashier competition.
Today, Seattle’s Best is announcing a major push in its distribution: By partnering with other retailers like Burger King, Subway and AMC Entertainment (one of the largest movie theater chains in the U.S.), to add Seattle’s Best coffee to their menus, bumping its distribution by about 30,000 points of sale. Additionally, Seattle’s Best will be dispensing coffee via vending machines, although I’m not clear how or where. Along with this announcement, a radically new logo has been introduced, designed by Seattle ad agency Creature.
A great deal of my community has given up on large organizations, stating that the “true” innovation is now happening at start-ups. What that story misses is that many of the “free agents” we see around us as consultants, and so on are actually part of a larger enterprise, albeit in a loose relationship. Larger organizations will survive if only because of the human need to be apart of something larger and the efficiencies of those ecosystems.
The environment for marketers is changing dramatically. Marketing's leadership in driving business success has never been more in demand, and those who have demonstrably begun to expand mindsets, skills and capabilities are setting the standard. The difference this shift makes has never been more evident than during the bleakness of the lingering recession. Businesses whose marketing leaders have embraced its components may not have emerged unscathed, but they at least have found themselves entering 2010 with substantial positive momentum.
Chiquita, Victoria's Secret, The GOP, Amnesty International. They all use marketing and invite trust in a distinct belief system. They're all, to one degree or another, brands. For a brand, nirvana is when your good name is so widely endorsed that it enters the language. "Pass the Kleenex." "Google it." But that's the top of a long and slippery slope--look at Toyota and Tiger Woods. A healthy brand drives up your stock, and vice versa. These are the things we thought we knew. It's 2010--are they still true?
Nike Inc. Chief Executive Mark Parker took an unusual path to the top: The former Penn State University runner spent years as a shoe designer before starting to climb the corporate ladder. Now, he's taking Nike in a new direction, targeting overseas expansion—and not just with the Nike "swoosh." Last week he set the ambitious goal of increasing sales 40%, to $27 billion, by 2015. To achieve that while Nike sales growth in the U.S. is slowing, he's betting on such markets as China, India and Brazil, and on their burgeoning middle classes.
After a concentrated period of regrouping and refocusing, Starbucks is on the move -- and its expansion of Via Ready Brew in the U.S. and other markets is a pivotal component of a worldwide push to leverage synergies across business segments, channels and media platforms. It's still early in the game for Via, introduced last September, but the new line's roles within that global game plan as a revenue stream, door-opener and template for ongoing brand expansion is becoming increasingly visible.
Coca-Cola Co. hopes a new high-tech soda fountain will add some life to listless soft-drink sales by letting restaurant-goers mix up 104 different drinks, creating inventions such as Caffeine-Free Diet Raspberry Coke. The soda fountain has been the touchstone of Coke's business since 1886, when a pharmacist John Pembertoncreated the secret-recipe syrup and mixed it with carbonated water. But the technology hasn't changed much since the 1950s, as a line of nozzles spit out big-name sodas.
If there’s one thing we’ve learned from the Internet it is that if a middleman doesn’t add enough value, their days are numbered. Media companies may not have thought of themselves as middlemen—but that’s what they have been for marketers. When I used to buy advertising a decade or so ago, I felt it was my job to do what I could to get the media provider out of the middle between my company and the customers we desired. For example, we did a lot to drive a direct relationship including encouraging them to register with us so we could communicate with them directly later—first through e-mail, now it would be via a Facebook page or Twitter.
In a new, technology-driven, hyper-connected world that rests on technology, data becomes the basis for new IP. Digital services become the new products. And products become the new marketing. Firms must re-think their very nature of their structure, physical and otherwise. This has huge implications for brands that are focusing their innovation spending toward developing economies.
What can Procter & Gamble learn from Method, the San Francisco purveyor of natural home products? How about Fidelity Investments — could it profit from observing Zurich's Sustainable Asset Management? What lessons are offered to mainstream companies by mission-driven companies, those small- and medium-sized enterprises that balance profitability with social and environmental goals? By studying them, mainstream companies can get beyond the fruitless debate over whether it pays to be responsible, and move onto a far more important issue: How they can make being responsible pay.
Facebook is preparing to launch location-based status updates for its users. But the social network is also planning to offer it to marketers, including McDonald's. As early as this month, the social-networking site will give users the ability to post their location within a status update. McDonald's, through digital agency Tribal DDB, Chicago, is building an app with Facebook would allow users to check in at one of its restaurants and have a featured product appear in the post, such as an Angus Quarter Pounder, say executives close to the deal.
This morning during his keynote talk at Web 2.0 Expo, Tim O’Reilly took a look at the State of the Internet Operating System — a term he uses to describe the intertwined web services like search, the social graph, and payments systems that power applications on the web (and increasingly, mobile devices). During his talk, he gave a report card of sorts for tech companies like Google, Apple, Facebook and Microsoft. Apple, he says, “has a vision of world domination”, and that with the App Store platform Steve Jobs is trying to build a fundamental challenge to the web.
Goldman Sachs may have broken the law making gazillions betting its products would crap out, the entire country of Greece is probably going out of business, and financial services brands are telling individual investors that they deserve better from their brokers. Duh. It seems like absolutely reasonable messaging until you get into the details:
There are many ways a merchant can create a choosing — not just a shopping — experience. For example we know from extensive research in the online realm (and from common sense) that ratings and popularity drive increases in sales. Yet nowhere in the stores could customers find reviews or any information about which items were most popular.
General Motors Co. removed a recently named marketing chief Wednesday and replaced her with an executive known in the car industry for a clever campaign that helped Hyundai Motor Co. bolster its U.S. sales. The move reflects the urgency Chairman and Chief Executive Edward E. Whitacre Jr. places on winning customers and increasing sales in the critical U.S. market. Since becoming chairman last summer, Mr. Whitacre has made it no secret that he expects GM to gain share in the U.S. market, and sees raising sales as critical to its turnaround.
Last year was the worst year ever for global luxury goods, with worldwide sales falling 8%. But in a look at the world's most valuable luxury brands, Forbes identifies 10 that are poised to thrive in better economic times. These brands, including BMW and Louis Vuitton, share some qualities that help keep them strong even when wealthy consumers are curtailing spending.
BP isn't all bad any more than Petrobras is all good. But, unlike Petrobras (and its informal boss), BP seems to have forgotten the number-one rule in marketing and management: walk the talk. BP is a victim of a disingenuous ad campaign that worked too well, and you have to wonder if its reputation will ever fully recover. Writing in HBR in 2007, reputational risk consultant Robert Eccles and his co-authors presciently noted, "When the reputation of a company is more positive than its underlying reality, this gap poses a substantial risk...BP appears to be learning this the hard way." BP doesn't yet seem to have absorbed the lesson, but other companies can surely learn from its mistake.
Digital technologies have fundamentally changed the way consumers interact with each other and, by the way, with brands. The role of engaging brand stories has not gone away. However, to truly establish loyalty and advocacy -- the holy grail of marketing in the digital age -- our marketing and brand strategies need to go beyond telling great stories. We have to make marketing focus on how products or services are actually used, not on how we hope they are used. We have to make them more useful by wrapping them in applications that increase their usefulness to the consumer.
Our tastes have expanded. Not just with food, but how we consume information, relationships, and experiences. Our expectations are on the rise. Social media storytelling is changing things. We demand communication that doesn’t insult our intelligence. Our instincts tell us we’re better than this. And so increasingly we opt-out, filter, and turn off the noise. We have settings for that. The message better be worthy of our attention.
Yesterday, United and Continental Airlines, the third- and fourth-largest U.S. carriers respectively, announced they would be merging, creating the first-largest carrier. While the media focuses on numbers of flights, ramifications for shareholders and what will happen to customers’ frequent flyer miles we focus our attention on what really matters: The literal merger of two infinitely different brands.
PepsiCo is making a strong push to reach out to consumers on their turf. In the next two months, the Purchase, N.Y., beverage and snack food company plans to roll out a partnership with location-based social networking company Foursquare and to launch its own geo-targeting mobile application, Pepsi Loot. Both programs, when activated by consumers, will let the app's users know when they get close to Pepsi-selling restaurants and fast food chains, such as Taco Bell, Pizza Hut and Arby's. When they stop by to pick up a drink, Pepsi will reward them with points that can be redeemed for a free music download from artists such as Neon Trees and Katharine McPhee.
In the face of turbulence and change, culture and values become the major source of continuity and coherence, of renewal and sustainability. Leaders must be institution-builders who imbue the organization with meaning that inspires today and endures tomorrow. They must find an underlying purpose and a strong set of values that serve as a basis for longer-term decisions even in the midst of volatility. They must find the common purpose and universal values that unite highly diverse people while still permitting individual identities to be expressed and enhanced. Indeed, emphasizing purpose and values helps leaders support and facilitate self-organizing networks that can respond quickly to change because they share an understanding of the right thing to do.
In the days ahead, a clue to the long-range growth strategy of Starbucks Corp. will become apparent, though not at its vast chain of coffee shops. Instead look down the coffee aisle of your local grocer. Starbucks is rolling out Via instant coffee—so far sold only in its own shops and a couple of retail chains—to tens of thousands of supermarkets, mass merchandisers and other outlets in coming weeks. The product's migration from coffee counter to grocery aisle reflects one of the food industry's hottest trends: putting more restaurant brands like California Pizza Kitchen and P.F. Chang's China Bistro into grocery aisles.
Reputation is a "soft" concept that most managers and employees don't feel is their job to manage. Instead they view it as the role of senior executives, or of functions like corporate communications, marketing, advertising, or public relations. While this is certainly true to some extent, it may also be a cop out. For example, two firms that are consistently at or near the top of the "most reputable" companies list (based on extensive consumer surveys by the non-profit Reputation Institute) are Johnson & Johnson and The Walt Disney Company. Despite having many types of businesses, J&J emphasizes through its "credo" that every employee has a responsibility to put the well-being of the people they serve first. Similarly, Disney makes every employee feel responsible for the entertainment products and services they provide. So maybe their positions on the top of the reputation list are no accidents.
Finally, marketers are acknowledging the necessity of listening to consumers - aka "people" - and brands are adjusting to the social networked environment by opening conversations. Market researchers cannot ignore these developments since they dictate the necessity of understanding peoples' identities, not only their interests. We Are People, Not Data Points - See Us Live
Hewlett-Packard Co. scooped up Palm Inc. for about $1 billion in cash, pushing the computer giant deeper into the competitive smartphone market and ending the independence of a struggling company that was rapidly running out of prospects.
Today's consumers are more diverse, more inter-connected and more demanding than ever. Their expectations are rising while their propensity to be loyal to companies is declining, so (let's face it) they are in the driver's seat. The questions for companies today are then: Are companies orchestrating where consumers go, and are they making the trip pleasant?
Reckitt Benckiser ("RB") made ad trade headlines last week when it announced a record-setting $40 million web video buy for 2010. What shocked everyone wasn't the dollar amount but rather that the company pretty much doesn't care where the ads run. "This kind of strategy echoes planning/buying 101 back in 1970," said a comment on the news article in Advertising Age, "It's a senseless approach that abandons all facets of leveraging for optimization and efficiency." Spoken like a true technonut, I say. At risk of overly analyzing the move I wonder if it heralds a realistic approach to web advertising. Say hello to mass media 2.0?
Saw The Joneses over the weekend. This movie has kicked up a bunch of articles about stealth marketing and who's using it. As their tagline says, They're not just living the American dream, they're selling it. Now, this isn't really a new approach, brands have been using stealth marketing for quite sometime. BzzAgent created some controversy when it first started a few years back because their agents were not disclosing the fact that they were promoting a product.
Millions are embracing a hot steaming plate of serious issues served with a side of mockery of the politicians, businessmen and celebrities who populate conventional news. And given this, how big a leap is it for companies to mock themselves as a means to reach audiences? It can be done effectively. Last fall, for instance, we worked with Intuit subsidiary Quicken, issuing a report on Mustached Americans being in greater financial need due to their profligate spending habits on ladies, leather pants and teeth whitening. The result was the most publicity Quicken had ever received and the company reached new consumers in a humorous way.
Invaluable as innovation may be, our relentless focus on it may be obscuring the value of its much-maligned relative, imitation. Imitation has always had a faintly disreputable ring to it — presidents do not normally give speeches extolling the virtues of the copycat. But where innovation brings new things into the world, imitation spreads them; where innovators break the old mold, imitators perfect the new one; and while innovators can win big, imitators often win bigger.
The term "business model" is often bandied about in the mainstream media as a way of capturing the essence of how a company makes money. To keep things simple for the home gamers, the media usually reduces the term "business model" to something impossibly simple - as in "advertising" or "paid subscriptions." When you talk to insiders, though, the reality is often much more complex and textured. In some cases, the way you think an industry makes money turns out to be nothing more than fiction.
The legal and political consequences of the complaint brought by the Securities and Exchange Commission against Goldman Sachs have drawn most of the public's attention, but it is the cultural fallout that will be the more meaningful legacy of the case. The fuzzy link between a real asset like a home mortgage and a synthetic collateralized debt obligation is hard to grasp for people focused on Roth IRAs and pretax health care expense accounts. By ignoring the need most of us have to see how investments are linked to tangible assets, Wall Street generally, and Goldman Sachs specifically, have given us ample reason to believe the truth of the charges.
What's it take to get cut-throat agency competitors to play nice? A $2 billion global budget doesn't hurt. It's at least one reason McDonald's can get its agencies to collaborate on strategy and major messaging before releasing them to develop their own spins. But McDonald's doesn't pit them against each other in winner-take-all shoot-outs; rather, it asks clients for their best work and often goes with multiple agencies contributing to the campaign, as it did with the recent "I'm Lovin' It" update. The company sees that collaboration as crucial to its advertising success.
The baleful consequences of the Great Recession cannot be resolved by maintaining the same approaches as when we created it. The "new normal" in business means many brand owners need to leverage something much larger than a re-take on marketing. They need to accelerate their collaboration with consumers, so that principles such as "for people, for planet, for profit," combined with tools of the web and next-generation media, can transform brands' role in the economy, society and business.
I'd like to use the term "sustainability 2.0" to talk about this emerging space, in which the world of corporate social responsibility meets the world of brand communications. There's one fundamental difference between sustainability 2.0 and how we've approached things in the past. For some time now, people have recognized that sustainability can be a brand-builder. But using sustainability to build your brand can only be a successful strategy if it starts from a consumer perspective. Sustainability 2.0 is about organizations creating positive effects in the lives of people in three ways: as individuals, helping meet personal needs, goals and ambitions; within their communities, sparking cultural movements, supporting causes and making connections; and within the world at large, tackling environmental issues and enabling greener lifestyles. So what's shaping this new landscape? Five fundamental trends are influencing the sustainability 2.0 agenda.
PepsiCo Inc. is launching a new ad campaign during Friday night's NBA playoffs meant to boost its struggling Gatorade business by getting athletes to gulp its iconic sports drink before, during, and after the game. The campaign, promoting the Purchase, N.Y., food and beverage giant's new lineup of "G Series" drinks for athletes, aims to demonstrate that Gatorade isn't just a sports drink that replaces nutrients sweated out during the game, but a system with three steps: a carbohydrate-loaded "Prime" concentrated liquid before play; the traditional "Perform" sports drink during; and a light, protein-rich "Recover" drink after.
After more than a year of consumer research and agency brainstorming, McDonald's global chief marketing officer unveiled an updated take on its iconic, 7-year-old "I'm Lovin' It" campaign today before an audience of 15,000 franchisees, marketers and suppliers.
In the first weeks of the iPad launch, retailers have been largely left out of the conversation. But industry executives believe the device could have a major impact on everything from retailers' catalogs to e-commerce to enhancing the in-store experience. So far, few retailers have embraced the new Apple device even though many already have iPhone apps. Gap, Gilt.com and eBay are among the retail brands that have created iPad applications, while Puma is expected to add iPads to its stores late this year.
Some small businesses start without a business plan, finding success in a breakthrough product or service early on and building upon that success organically. However, it’s inevitable that the venture will need to have a structured business plan put in place at some point if the business is expected to scale, expand and ultimately thrive. This well understood concept is the basis for what I’m informally labeling “social business planning”, yet from my experiences working across multiple organizations, the current focus remains on social media programs (the external) without putting in the appropriate social business infrastructure (the internal).
So strong was the antibusiness sentiment for the first Earth Day in 1970 that organizers took no money from corporations and held teach-ins “to challenge corporate and government leaders.” Forty years later, the day has turned into a premier marketing platform for selling a variety of goods and services, like office products, Greek yogurt and eco-dentistry.
After a week in which an estimated 102,000 flights were canceled in and out of Europe due to the Icelandic volcano eruption -- costing airlines, travel agencies and the like tens to potentially hundreds of millions of dollars -- nearly every airline was back on schedule today as airports lifted travel restrictions. Even so, an estimated 250 people were still stuck at JFK and living in a veritable "Cot City" on the fourth floor of Terminal Four, waiting to be re-booked or fly stand-by, meaning it was another day for marketers to try to engender some goodwill for their respective brands by offering aid to frustrated flyers.
Marketing campaigns that encourage considerable word of mouth among consumers have a greater impact on sales than more traditional forms of advertising, according to McKinsey. The consultancy argued that word of mouth is the "primary factor" behind between 20% and 50% of purchases, with a particular relevance in relation to expensive products and first-time acquisitions. It added that an advertising "overload", growing mistrust of marketing and the social media-driven shift in control away from companies and towards consumers have all encouraged this trend.
I'm convinced the time is now for a fresh, new -- perhaps even difficult -- conversation on trust. And like any good conversation, we need to start with many more questions than answers. Marketers in particular need to ask really hard questions. Trust is the currency of effective advertising, and yet it's so curiously evasive and increasingly murky.
To truly capture the State and Future of Twitter and all that was revealed during its first official conference, requires additional time and space. In Part One, we examined the sociological impact of Twitter on society, the true size of the network, as well as equally exploring its challenges and opportunities. In Part Two, we’ll review and interpret streams, interest graphs, and Twitters new advertising platform.
Thanks to Internet-equipped smartphones, shoppers are increasingly using software applications to check prices at other stores without leaving the mall. Now retailers are trying to use technology to fight back.
So you've got an elevator pitch — a short, pithy description of why your business is special, exciting, and unique. Yawn. Today, elevator pitches are the economic equivalent of speeches at a beauty pageant: predictable, often vapid, always bland. Here's a suggestion. Try a Dumbwaiter Pitch instead. It's an exercise I often do with startups, giant corporations, social entrepreneurs, and investors. Its goal? To strip an organization right down to its bones, and see how compelling it really is.
With big names like Tiger Woods and Toyota Motor stepping into the spotlight of public scrutiny this year, reputation is a hot topic in the media and in corporate boardrooms. No company wants its public image to be the reason it has a hard time rebounding from the recession. So what factors shape the public's image of American businesses? Which companies do consumers trust and admire?
The following 10 companies stand out as prime examples of how social responsibility can be productively coupled with sound strategies to advance goodwill, while building sustainable and impressive businesses. They provide the leadership to demonstrate how marketers can pursue both objectives simultaneously. As such, socially conscious companies have stepped up their efforts with increasing effectiveness and productivity. It is an impressive movement and one that invites society at large to do even more. Let's use these as examples for "how to get it done" so that we can effectively expand our efforts to give back.
A push for real and meaningful innovation permeates the business environment. Leading brands embrace innovation as a tangible driver of business performance as opposed to a meaningless moniker-and inculcate true innovation and entrepreneurialism into their cultures, employees and overall enterprises. Innovation in the Re-Invention Economy shows its evolved self in every aspect of organizational drive and is industry agnostic in its rapid manifestation.
Men are, well, men. They live in the 'now.' They are concrete thinkers that like to consummate, finish. A male axiom is "complete what you set out to do." Men are interested in power and in looking good, even more than being good. In short, that's the nature of beauty for the beast. You cannot market to men the same way you market to women. It's not a simple transformation of changing colors, fonts or packaging. Men and women are different biologically, psychologically and socially.
The success of Apple’s mobile devices gives the firm an opportunity to capture a goodly chunk of the emerging mobile-advertising market. Indeed, that is the reason why Apple recently acquired Quattro Wireless, a mobile advertising agency. Becoming an advertising powerhouse is certainly attractive. But Mr Jobs has far bigger fish to fry. The biggest of them all is turning Apple into the Microsoft of mobility. But first there is a little matter of locking as many software developers as possible into the Apple ecosystem. If the applications are there, so the argument goes, users will follow in droves.
Marketers have always sought that secret sauce, the data that gives them an edge over their competition. And online, where data is generated faster than anyone can make sense of it, that arms race has taken on an extreme dimension.
The State and Future of Twitter was revealed to the world at the Chirp Conference. Developers, futurists, reporters, investors, stakeholders, and businesses convened at the Palace of Fine Arts in San Francisco, making the journey from all over the world to witness history in the making.
Recently, there has been a lot of buzz on the Internet about two similar events. What happened was basically this; The Masters of the Universe had proclaimed their decrees like dictators and the only thing the rest of the world could do was, for a lack of a better phrase, gnash their teeth in frustration. If businesses are going to bet on creating solutions on platforms they do not own, they have to realize that this a huge business risk. When the platform owners change the rules of the game, everything pretty much goes down the drain and we will have likely no control or say over this decision.
Twitter’s first developer conference, held this week in San Francisco, served as a coming-out party for the four-year-old service. Twitter the start-up is becoming Twitter the big company, with more polish, controversy, competition and revenue.
Strategy used to be about protecting your existing competitive advantage. Today, it's about finding the next advantage. Strategy starts to decay the moment it's created. That's why corporations must develop strategies that address tomorrow's business realities. Strategic actions that companies take belong in one of three boxes.
With the aid of a US$1.8 million grant from the Department of Labor, they studied the way young people learn in a world of video games and smart phones. In collaboration with MIT; Virginia Tech; and the Institute of the Future, they build a high-tech, next-generation training facility called UPS Integrad. This facility offers 3-D simulations and webcasts along with traditional classroom instruction. Trainees are recorded to show them how they look in action. UPS teach them to drive in a replica outdoor city called Clarkville that has real streets, street signs, sidewalks, and simulated commercial and residential delivery and pickup sites.
OK, I’m going to go out on a limb here and say something that might not make sense at first: the most important outcome of successful web analytics (or SEO effort or landing page testing, etc.) is not a better web site. The most important outcome is a better, more functional company.
In today's economic environment, chief marketing officers and their companies need to take more risks than ever before to reach their customers. We marketers must adopt a philosophy that encourages taking chances when we deliver our messages. We should all be comfortable failing early, failing often and failing on the cheap in order to learn the most effective ways to accomplishing our goals. Although inundated with messages, customers are now in control of their information-gathering experiences and are demanding information relevant to their lifestyles.
Birds of a feather flock together. Or, in the Internet age, a customer's friend is a potential customer. Embracing those truisms, some big marketers, including Sprint and eBay, are turning to small start-ups to help them tap social-networking data to find would-be clients among the friends and acquaintances of existing customers, to the dismay of some privacy advocates.
Twitter. The privately held company received a new round of investment last fall, believed to be $100m, which values the business at a whopping $1bn (£624m). That makes Twitter roughly as valuable as WH Smith - which provides an excellent point of comparison. WH Smith has done well this year. Its annual revenues are likely to be about £1.3bn, and most analysts are expecting those revenues to result in pre-tax profits of about £80m. Over at Twitter, for all its glorious PR and amazing technological impact, there is nothing. Not a cent. Because Twitter does not charge for its service.
I usually try to keep my critiques to categories I’ve worked in, primarily because I think it’s irresponsible for me to comment on what works and what doesn’t when I have little basis for my assessment other than being a consumer. So I initially demurred when some folks have asked for my POV on AT&T’s new campaign, Rethink Possible. But then I started wondering whether my expertise in other categories might actually shed some light on the issue — that’s when I realized that there are some instructive parallels between AT&T and fast food chains. And while AT&T has adopted some of what drives fast feeders’ success, there are a couple of important lessons it might want to learn.
"Brands are dying," we're told. As a result, we hear that branding is no longer relevant. So now, what do we do?
The first time I noticed the word "Content" had changed, I was being ushered into the inner sanctum of Zappos by a woman answering phones in an Elvis Costume. Why is there a content department at Zappos? Don't they sell shoes and other nifty stuff? Well, it turns out, at Zappos the folks who make images, text and product information for the Web site are working with Zappos "Content." Makes sense, in a Zappos kind of way, I thought at the time. But in the eight months since that visit, the world has changed. All of us, it now appears, are in the Content business.
The business of marketing is in the midst of a massive cultural shift. While buzzwords like co-creation, mass-collaboration and crowdsourcing are all the rage, there’s actually a much bigger and deeper change going on with the way work gets done. Three disruptive forces: the expectation of transparency, the further digitization of the workforce and the rise of the curator class, all coupled with the current macro-economic conditions, have changed the world of marketing forever. Like it or not, from professional creatives to consumers, people want to be involved with your brand.
Twitter will unveil on Tuesday a much-anticipated plan for making money from advertising, finally answering the question of how the company expects to turn its exponential growth into revenue. The advertising program, which Twitter calls Promoted Tweets, will show up when Twitter users search for keywords that the advertisers have bought to link to their ads. Later, Twitter plans to show promoted posts in the stream of Twitter posts, based on how relevant they might be to a particular user.
It's the trillion dollar question. Justin Fox, in a recent post here, put it this way: "I don't think anyone has come up with an argument for or description of better business behavior that has anything like the elegance and power of the economists' 'incentives matter.' As long as it remains possible to get rich via less-than-upstanding behavior, and enjoy those riches, a lot of people in business will choose that path." I call it the egocentric question: "Why is doing good in our self-interest?"
When Lee Applbaum joined RadioShack in September 2008, he had his work cut out for him. Circuit City had filed for bankruptcy, and retailers across the country found themselves enduring the worst holiday season on record. A year and a half later, Mr. Applbaum, 39, an alumnus of Schottenstein Stores, Coca-Cola and David's Bridal, is presiding over what may well be the beginning of a massive turnaround for the staid brand that many consumers had long ago abandoned.
After spending last year atop the retail death-watch list, Talbots Inc. is now a favorite on Wall Street, thanks to cost cuts and a complex financial arrangement for unloading its enormous debt. But to solidify its comeback and boost sales, Talbots must complete a merchandise and image overhaul aimed at attracting younger customers. And that's a tall order for a brand that many women think of as perfect for their grandmothers.
As wary Americans start to crack open their wallets, household-goods makers like Procter & Gamble Co., Colgate-Palmolive Co., Kimberly-Clark Corp. and Clorox Co. are cranking up their advertising, hoping to coax consumers farther out of their shells. Amid signs of an improving economy, recent survey data show consumers are more willing to splurge by eating out or buying new shoes, but the same doesn't necessarily hold for everyday household goods.
Apple, the maker of popular gadgets, is getting into the business of selling advertising, ratcheting up its rivalry with Google. On Thursday the company gave a preview of a new version of the basic software for its mobile devices, including the iPhone. The software has a built-in advertising system, meant to be used by the developers who have created the more than 185,000 applications in Apple’s App Store.
It was such a long time ago when AT&T ditched its original Saul Bass logo that the discussion about it happened not on Brand New, but on Speak Up. In 2005. One year before the launch of Brand New and, also of importance, nearly two years before the iPhone launch. All this to say: Has it really been that long? But also: Didn’t this happen, like, yesterday? Either way, a lot has changed for AT&T, having risen as the heaven where the iPhone lives to also being the hell where the iPhone dies in the clogged lines of its 3G network with all of its hope placed in the hands of Luke Wilson. No more. Yesterday, AT&T launched a new brand campaign that introduces the theme of “Rethink Possible” and tries to do what few other companies — like Nike, Target and Apple — can, drop the name from the logo.
How does a great brand like Toyota, built over decades, lose its way so quickly? For that matter, how did General Motors stumble? And how about Kmart, Washington Mutual and Circuit City suddenly become irrelevant? One day these companies were global leaders. The next, seemingly, they were flat on their backs, bleeding years of brand building and future sales and profits.
As Tiger Woods prepares to tee off at The Masters on Thursday, the humbled athlete is not the only one counting the cost of his fall from grace. The 34-year-old golfer’s reputation as a clean-living and dedicated sportsman and husband was undone when his infidelities were spilled across television, newspapers and internet sites in the wake of a mysterious car accident at his home in late November. Mr Woods’ success on the course had enabled him to line up lucrative sponsorship deals off of it, with brands including Accenture, Nike, Gillette, Electronic Arts and Gatorade signing him up to lucrative sponsorship deals. Some estimates suggest that the arrangements made him the world’s first sports star to make $1bn in career earnings.
AT&T is undertaking an ambitious rebranding effort under the banner "Rethink Possible" that includes a redesign that updates its trademark logo. The new theme attempts to position AT&T as a lifestyle company and elevate it from the recent ad sniping with rival Verizon. "Rethink Possible" will inform all advertising from the country's fourth-largest spender going forward.
That sound you hear is the cry of outrage over the decision by Spirit Airlines to charge customers as much as $45 to stow carry-on baggage. It's a horrible idea, but not for the easy, airline-bashing reasons cited by most critics. In fact, this decision is a pretty interesting case study in the wrong ways for companies to respond to tough economic times--a reminder of how so many leaders manage to make bad situations worse.
Anyone who knows me knows that I’m a fan of Google. This isn’t a post to describe my personal affection for a corporate entity, but it is an attempt to describe one element that I find particularly appealing. Don’t Be Evil. This phrase is Google’s infamous, informal corporate motto. I love it. Not only does it help reinforce my romantic, naive teenage dreams that I could become the next Richard Branson or Bill Gates just by doing good in the world, but it also helps prove that in the new business world, evil is bad for business.
Guess who says the following attributes are most influential in making "important purchases" today: value, price, overall quality, good design and functionality? A clue: 84% of this group texts from cellphones; 78% use social networking; 66% use the mobile web and 57% use mobile apps. It's not who you think it is. In fact, it's a group whose median age is 45, not 19.
Trending topics reveal much more than the objects that captivate the hearts, minds, and keyboards of Twitter users around the world. Twitter’s trends is a cultural mirror that reflects the state of attention and intention. And as such, Tweets then offer an MRI that visualizes the minds of consumers and more importantly, serve as a crystal ball that reveals the future of products and services before and soon after they’re released. For the most part, however, the vast amount of precious insight is widely untapped. Instead, businesses focus on volume and congregation, enticing brands to engage in the conversation rather than truly capturing and analyzing the activity that inherently inspires empathy and ultimately relevance. I think that’s about to change…
The Considered Purchase Pattern is a powerful model for a business-to-business website because so many businesses have flaccidly chosen to build their site on the brochure pattern. With the strategies outlined here, you will generate new leads and sales at a fraction of the cost of your competitors. Get these strategies right, and you have the opportunity to dominate your competitors on the Web.
Enter iPad. The proponents call it a radical new dominant design for computing. Don't buy the hype, say the detractors: the iPad's just another land-grabbing walled garden. Both sides are right — and wrong. The iPad is a revolution waiting to happen. But the revolution's biggest roadblock is Apple itself.
Nokia retains a massive share of the global mobile phone market, but cracks are beginning to appear in its once-impenetrable leadership. In particular, the electronics brand is struggling to defend its lead in smartphones - the fastest-growing and most profitable part of the mobile phone business.
Last fall, Mercedes-Benz ran a competition among business schools like Harvard, New York University, Wharton and Kellogg, in cooperation with NYU, to find out what the next critical market for the brand actually thinks of the brand.
Recently, I spoke to a crowded room of senior marketers at a CPG retailer, one of the executives asked “What’s an indicator a company is advanced in the social space?”. I gave three answers, and one of them was “Developing a thriving advocacy program to fight your battles”. The executives, which were used to traditional advertising and direct marketing had a lightbulb go off as I showed them this framework.
With a carrier-agnostic iPhone coming to market later this summer, the conventional wisdom is that AT&T will lose customers (its phone coverage and iPhone service haven't been stellar) and a lot of profits (some say the iPhone has been not only its brightest but biggest single source of earnings). I say it doesn't have to work out this way. There's a post-generification breakout strategy for AT&T, but it would require a massive rethinking of its brand and marketing communications. Here are the three core realizations the company's brain trust would have to reach.
In and around last week's New York International Auto Show, Ad Age got in front of marketing leaders at some of the world's major car brands, including Jim Farley, group VP-global marketing and Canada, Mexico and South America operations, Ford Motor Co.; Scott Keogh, CMO, Audi of America; Chris Perry, director-marketing and acting head of marketing, Hyundai Motor America; John Maloney, VP-marketing and product planning, Volvo Cars of North America; and Jack Pitney, VP-marketing, BMW of North America. We asked them how they intend to market through the economic recovery, how they are evolving their global-marketing strategies and what's yet to come.
Mr. Yospe was not a screenwriter, not a producer, not even a studio executive. No, Mr. Yospe was a lawyer with the firm Manatt, Phelps & Phillips. He was meeting with the writer-producer Roberto Orci, who co-wrote “Transformers” and “Star Trek,” to talk about how to include brands in “The 28th Amendment.”
Author Peter Drucker’s adage that a business enterprise has two basic functions—marketing and innovation—certainly resonates in the quick-service industry today. Marketing and innovation serve as critical drivers of growth at a time when the limits of cost cutting have been reached. While the innovation function is steady across all chains, marketing strategies vary greatly.
In January 2010, nearly 75 million people visited Twitter according to comScore. While that number seems remarkable, it represents only a fraction of what’s realistically attainable. I believe that Twitter’s growth, to date, is hindered not by its ambition nor potential, but by the company’s ongoing focus on competing priorities rather than showcasing how users can effectively communicate and excel on this unique platform. But that’s all about to change… Every day, millions of potential people are introduced to Twitter through traditional media, online dialogue in other social networks, as well as the content and marketing campaigns of local, national, and global businesses and media properties.
There's the key and the lock. The bolt and the nut. The button and the button hole. So, too, there's the position and the hole in the mind the position is trying to fill. Except, of course, many marketers seem to have forgotten about those holes in the mind. Which is strange. If there is one constant in the communications chatter about the marketing function it's this one: The consumer owns the brand. True enough. But where in the world is the consumer going to put the brand except in his or her mind?
Marshall McLuhan once famously said, "The medium is the message." Here's what he meant: "The 'message' of any medium or technology is the change of scale or pace or pattern that it introduces into human affairs." Today, the meaning is the message. The "message" of the Internet's social revolution is more meaningful work, economics, politics, society, and organization. It promises radically more meaning: to make stuff matter, once again, in human terms, not just financial ones. And that's never mattered more.
The next generation of Ford's Sync technology will turn its cars into rolling, talking, socially networked, cloud-connected supermachines. Introducing America's most surprising consumer-electronics company.
Procter & Gamble Co. became the first corporate inductee to the American Advertising Federation Hall of Fame on March 25, and while it's a big honor, it could be seen as a mixed blessing. After all, the other inductees are retired, and many have been honored posthumously, while P&G still considers itself very much in the game. In an interview with Advertising Age prior to the induction, P&G Chairman-CEO Bob McDonald said avoiding the trap of leaning too heavily on the company's marketing legacy is one thing that keeps him up at night. Increased focus on digital marketing, he said, is one of the keys to P&G's strategy to remain a leading marketer.
David Jason's voice wafts into British living rooms as images of everyday life fill the screen. 'Some things in life just have to be,' he intones. It's not meant to be prize-winning creative work. It's the latest part of Heinz's increasingly successful strategy to fight private labels. The food giant offers a playbook on how to survive and prosper in an age of own-label brands.
Although March Madness still has a weekend to go, advertisers are already gearing up for June and July Jubilation. The 2010 World Cup, to be held in South Africa from June 11 to July 11, has attracted a lengthy list of blue-chip sponsors seeking to capitalize on the global passion for soccer — or, as they say outside the United States, football. Marketers are starting to disclose details of their ads or, in some instances, introducing elements of their soccer-centric campaigns.
Will Walmart, not Whole Foods, save small farms and make U.S. healthy?
Customers may not know it, but senior executives are counting on them to help reinvent, reposition, re-ignite and regain brand relevancy. They are helping businesses and brands take swings for the fences that actually have a shot at going out of the ballpark. They are not just joining the conversation but fully taking notes, leading to action and big outcomes that are driving their businesses and brands forward. So, while Tiger and Toyota are grabbing too many recent brand headlines, three other companies are paving the way for others who want to make a serious brand-pivot.
In the recent film Up in the Air, George Clooney plays a human resources consultant who prides himself on his ability to humanely deliver the difficult news that an employee has been let go. He sees his job simply: do his very best to turn a negative situation into something, anything more positive. The film reinforces a lesson that many of us have learned in 2009 about the connection between human resources and brand management. The manner in which companies part ways with their employees has a potent and lasting effect on the former employee, employees who remain, and the brand.
It has never been more important to turn your brand into a service. Jaded, time-poor, pragmatic consumers yearn for service and care, while the mobile online revolution (it's finally, truly here!) makes it possible to offer uber-relevant services to consumers anywhere, anytime. Basically, if you're going to embrace one big consumer trend this year, please let it be BRAND BUTLERS!
Should we be surprised that the biggest fight over freedom of expression in years involves Google, a company that produces algorithms rather than articles? Probably not. Google executives struck a blow for free speech in China last week when they announced they were moving their service to Hong Kong after a series of mounting conflicts with the government over the privacy of its users and the free flow of information. That would seem to put Google in league with newspapers, television news divisions and other outlets that look to protect information from government control. But no, Google insists, it is definitely not a media company.
It didn't take long for Julie Liu -- late 20s, smartphone-addicted, constant Googler -- to get hooked on the online review site Yelp. Where to eat Friday night? Read some reviews by random anonymous diners. Oh, that looks good. Book a table online, show up, eat. But after Liu and her sister opened Scion restaurant in Dupont Circle, they saw Yelp from a different angle. Liu said Yelp's salespeople phoned repeatedly, telling her that if she advertised on the site, negative reviews would move lower on Scion's page and positive reviews would move up.
Simply put, if marketers are counting on their agencies to lead them into a world of changing consumer behaviors and media habits, they should think again. As digital-marketing channels multiply, agencies are struggling to figure out their own businesses, and a recent Forrester study suggests that marketers may need to force their agencies to evolve rather than wait for them to do it themselves. Ad Age got a peek at the 16-page study, called "The Future of Agency Relationships," for which Forrester spent nearly four months interviewing agency and marketing executives.
Starbucks has lately found itself in the middle of a debate between advocates of “open carry” gun rights and of gun control; the former have held armed meet-ups at several of its locations, and the latter have demanded that the coffee chain prevent this from happening. Seeking to duck these fresh salvos in the long debate over how firearms fit into American life, the company has issued a statement that such matters ought to be worked out “in the legislatures and courts, not in our stores.” Well, sure. But drawing a line between official institutions of lawmaking and the daily sphere where citizens move about is not so easy. And one thing the pistols-and-Frappuccino moment has demonstrated is that this is acutely true for a business with an image carefully devised to blur the line between public space and commercial space.
The announcement that Tiger Woods would finally begin his 2010 PGA season with an appearance at the Masters Tournament didn't surprise me. My belief has always been that he would step forward to rebuild his brand. The love of the game, if not the love of the fame, is just too important to him. This announcement, along with the continuous bad news about Toyota and other long-standing brands under duress did, however, get me thinking about how much harder it is to transition and reposition a brand in the digital world than it was in pre-Internet days. With information about everything from culture to commerce immediately accessible and sharable on social media, no topic is immune to scrutiny or commentary. This has marketing folks asking some very good questions about strategies for working through both planned and unavoidable changes in brand status.
Coca-Cola once famously defined its market as “throat share”, meaning its stake in the entire liquid intake of all humanity. Not to be outdone, Indra Nooyi, the boss of Coke’s arch-rival, PepsiCo, wants her firm to be “seen as one of the defining companies of the first half of the 21st century”, a “model of how to conduct business in the modern world.” More specifically, she argues that Pepsi, which makes crisps (potato chips) and other fatty, salty snacks as well as sugary drinks, should be part of the solution, not the cause, of “one of the world’s biggest public-health challenges, a challenge fundamentally linked to our industry: obesity.” To that end, on March 22nd she unveiled a series of targets to improve the healthiness of Pepsi’s wares.
Pricing is one of the most powerful--yet underutilized--strategies available to businesses. A McKinsey & Company study of the Global 1200 found that if companies increased prices by just 1%, and demand remained constant, on average operating profits would increase by 11%. Using a 1% increase in price, some companies would see even more growth in percentage of profit: Sears, 155%; McKesson, 100%, Tyson, 81%, Land O'Lakes, 58%, Whirlpool, 35%. Just as important, price is a key attribute that consumers consider before making a purchase.
From the moment it was the first premium beer imported into the U.S. after Prohibition up until the middle of the last decade, Heineken lager was a fast-growing brand fueled by its social cache. But that seems like a long time ago now.
A smart subordinate should actually want the relationship with the firm to be based at least in some part on things that are qualitative — that require judgment and interpretation because these are what makes it necessary and optimal for him to be an actual part of the firm. A quantitatively based relationship is a shallow one while one that has an important qualitative dimension is a deeper one. The same logic applies to a firm's relationships with customers. If our understanding of customers is based entirely on quantitative analysis, we will have a shallow rather than deep relationship with them.
Executives at Allstate, known, after their famous slogan, as “the ‘good hands’ people,” are looking for a few good advertising ideas — and are making that clear in attention-getting fashion. Three top managers of the Allstate Corporation came to New York from the company’s Northbrook, Ill., headquarters to make a presentation to senior sales executives from dozens of major media companies. They were joined by a surprise guest: Dennis Haysbert, the actor and Allstate spokesman. The message, delivered by the Allstate leaders on Wednesday under the title “The New State of Allstate,” was this: Help us advertise more effectively by developing, for all types of media, better ways to tell consumers that Allstate sells protection, not just insurance.
Coke Zero was launched in 2006 with the ambition of being as big as Diet Coke in 10 years. I posted back in 2006 asking questions about the rationale for Coke Zero and how successful it would be. Well, 4 years into that 10 year journey, and the status is (mkt share 4 weeks to 26 Dec 09): Coke Zero: 2.2% share, lowest share since launch Diet Coke: 26.8% share, +1%pt So, why is Coke having such a hard time?
While the high and low ends are thriving, the middle of the market is in trouble. Previously, successful companies tended to gravitate toward what historians of retail have called the Big Middle, because that’s where most of the customers were. These days, the Big Middle is looking more like “the mushy middle” (in the formulation of the consultants Al and Laura Ries). The companies there—Sony, Dell, General Motors, and the like—find themselves squeezed from both sides (just as, in a way, middle-class workers do in a time of growing income inequality). The products made by midrange companies are neither exceptional enough to justify premium prices nor cheap enough to win over value-conscious consumers. Furthermore, the squeeze is getting tighter every day.
Everyone who jammed into the Yerba Buena Center for the Arts in San Francisco on January 27, 2010, knew what they were there for: Apple CEO Steve Jobs’ introduction of a thin, always-on tablet device that would let people browse the Web, read books, send email, watch movies, and play games. It was also no surprise that the 1.5-pound iPad resembled an iPhone, right down to the single black button nestled below the bright 10-inch screen. But about an hour into the presentation, Apple showed something unexpected — something that not many people even noticed. In addition to the lean-back sorts of activities one expects from a tablet (demonstrated by Jobs while relaxing in a comfy black armchair), there was a surprising pitch for the iPad as a lean-forward device, one that runs a revamped version of Apple’s iWork productivity apps. In many ways, Jobs claimed, the iPad would be better than pricier laptops and desktops as a tool for high-end word processing and spreadsheets. If anyone missed the point, Apple’s design guru Jonathan Ive gushed in a promotional video that the iPad wasn’t just a cool new way to gobble up media — it was blazing a path to the future of computing.
Augmented Reality (AR) is the next keyword wet dream for the online industry buzz word bingo enthusiasts. As social media becomes more ingrained in commercial planning and the excitement fades into practical solutions, it’s inevitable that the new kid on the block will start to make headlines. I think AR is an exciting development. However, behind the pomp that surrounds another buzz word, is there a commercial model that could make AR a practical tool in the e-commerce armoury?
Today's consumers are more intuitive, more informed, more skeptical and more demanding than ever. They live in a world of immense choice and personalization. They want the benefits of increased choice without the complexity of increased choice. With the economic anxiety of our times, there is a growing generation of shoppers for whom frugality is fashionable. These changes are tailor-made for the talents of marketers. But marketers be warned: We need to be concerned about the degradation of marketing. We must redefine it--or be part of its deadly decline.
This is a nation that builds dams, high-speed rail lines and skyscrapers with abandon. In newly muscular China, sheer force is not just an art, but a bedrock principle of its seemingly unstoppable rise to global prominence. Now China has tightened its grip on the much more variegated world of online information, effectively forcing Google Inc., the world’s premier information provider, to choose between submitting to Chinese censorship and leaving the world’s largest community of Internet users to its rivals. It chose to leave.
So the Dow hit a bull-market high last Wednesday and gas costs more than $3/gallon. You know what comes next, don't you? It's not a question of if but rather when we'll all be complaining about falling stocks and rising gas prices. We should be particularly aware of this inevitable reality since most of us are still smarting from the wounds we received over the past year or two. You'd think that the branding brain trusts at big financial services firms and oil companies would have gotten together and recognized these facts -- the context of reality in which their brands exist -- and modified both their business operations and marketing accordingly:
Attention: fast food marketers – you’re wasting half of your advertising. But I’m not talking about the waste that John Wanamaker was referring to in his famous quip about not knowing which half of his advertising was being wasted. I’m talking about the average of 48% of people who say there’s a big difference between what you promise in your advertising and what they experience at your restaurants.
The idea of branded utility is nothing new. In fact, it’s an idea that has cycled in and out of popular conversations for almost a decade, and yet there is still debate on exactly what it means and whether or not brands can truly provide branded utility in a way that makes a relevant connection to the brand.
Procter & Gamble Co. got to be an $80 billion company and the world's-largest marketer almost entirely by selling goods, but it's increasingly looking to services ranging from concierge physicians to car washes and dry cleaners to fuel its thirst for growth.
Walmart has decided that national brands are still important -- even ones with relatively small shares that it used to think didn't. The world's-biggest retailer had embarked on an ambitious program to winnow brand assortment in an effort to reduce inventory, improve margins and, it said, offer the consumer a better shopping experience. But realizing the culling actually "aggravated" consumers, it's now restocking hundreds of brands and products eliminated or curtailed months ago and taking a new look at other categories where it has streamlined assortment.
Design, or design thinking, is becoming increasingly popular among management practitioners and scholars. Leading popular magazines like BusinessWeek and Fast Company regularly feature design as an important topic. Many leading business schools around the world incorporate some elements of design as a part of their curriculum. At the same time, leading design schools around world are challenging business schools by providing plausible alternatives to students and recruiters alike.
A lot of people are excited about social media and think it could have a hugely positive impact on their brand, their marketing and communications, the insight they get, the way in which they deal with customer service and many other benefits it can bring to an organisation and to the way it interacts with and engages customers. They are right to be excited, the opportunities are great but brands should not hide from the fact that getting an engaging social media presence takes proper thought, some effort and may take time to embed.
On March 13, a Virgin America flight from Los Angeles to New York was diverted from John F. Kennedy International Airport to Stewart airport in Newburgh, N.Y., due to severe weather, and the passengers and crew waited in the plane on the tarmac for over four hours. The crew was anxious, babies were crying, mothers were anxious, and the passengers were unruly — to the point that one woman was taken off the plane by police. The entire ordeal was documented by David Martin, the CEO of Kontain.com, on his company's iPhone social-media application.
It was not that long ago when Madison Avenue believed that Web video — also known as webisodes, online video and Web series — would replace television, or at least put a big dent into the ability of TV to reach consumers. Now, however, as more marketers turn to Web video, many are increasingly doing so along with — rather than in place of — television.
A little while ago, I wrote about my current class assignment to reinvigorate a brand that is “dead, dying or defunct”. As we are nearing the semester’s end next month, I thought it would be a good time to begin describing the process of this project. The final deliverable is a book, in which we describe the history of our chosen brand (and why it’s time for a update), outline the new identity guidelines (visual standards manuals, usage considerations etc), and show potential extensions (mock ups of storefronts, products, etc). For this process post I’ll describe my brand choice and eventual logo development.
Indeed, the results of our 2009 Leading Global Brands study, which includes responses from 20,000-plus global marketers who work on over 200-plus brands across all industries, employed by companies like Unilever, Diageo, and GlaxoSmithKline, indicate that getting the proper local vs. global balance is a top challenge. Almost 65% of respondents confirm that global brands have become more important over the last five years. But only 15% fully agree that their global brands are effectively leveraging their scale. Even fewer believe that their organizations excel at quickly rolling out successful global brand initiatives.
Google and Intel have teamed with Sony to develop a platform called Google TV to bring the Web into the living room through a new generation of televisions and set-top boxes. The move is an effort by Google and Intel to extend their dominance of computing to television, an arena where they have little sway. For Sony, which has struggled to retain a pricing and technological advantage in the competitive TV hardware market, the partnership is an effort to get a leg up on competitors.
In today's world of endless choice and prolific product options, brands are confronted with the challenge of gaining mindshare and market penetration. Combined with a stalling economy, many brands have addressed this challenge by rethinking the way they have always done business, altering their core product or trying to attract customers through promotions, giveaways and campaigns. Yet one of the best strategies, if thoughtfully prepared and executed, remains one of the most visible and well-known in the food industry: co-branding.
The day when commercials are indistinguishable from the programs they support finally arrived -- just before 10 p.m. Eastern last Thursday night. That's when an ad for Dr Pepper ran after NBC's insider-y sitcom "30 Rock," making use of recurring character Dr. Spaceman, played by comic Chris Parnell. In the spot, which was paired with a more-traditional TV commercial for the soda, Mr. Parnell's fictional medical practitioner decried boredom and told viewers how drinking Dr Pepper could banish it. A few moments later, viewers saw the credits roll for "30 Rock." Staffers from "30 Rock" were not involved in the creation of the commercial, according to a person familiar with the situation.
That limited, old-school perception of design is missing out on something important: Today's increasingly complex and multi-faceted marketing campaigns are, in essence, design projects. With the splintering of "old" media and the explosive rise of social networking, marketing messages now are constantly morphing and being reinvented--taking new forms that range from highly innovative viral stunts and films (such as Volkswagen's Fun Theory) to branded social networks (Nike Plus) and even sponsored save-the-world movements (Pepsi)'s "Refresh Everything" project).
Digital-marketing companies are rapidly moving to blend information about consumers' Web-surfing behavior with reams of other personal data available offline, seeking to make it easier for online advertisers to reach their target audiences. Advertisers say the push could enhance their ability to target ads at specific types of consumers, but it is drawing scrutiny from Congress, federal regulators and privacy watchdogs, who are already concerned about the use of Web-surfing data.
In my work as a cognitive anthropologist I study how the mind works, how people "make meaning," how people form attachments to things (brands), and how people make decisions. Decisions like how to select what to invest in, whether stocks or mates; why and under what conditions, people prefer Coke over Pepsi (or vice versa), Charmin over Cottonelle; why a person believes in one God over another. In that search I have inadvertently uncovered something about viva la difference: WOMEN CYCLE, MEN CONSUMMATE.
Computer users searching online for information say they are “Googling.” Commercials running in states like Michigan and Ohio suggest that shoppers go “Krogering.” But what will investors make of a campaign that proposes they start “Vanguarding”? The campaign, scheduled to begin this week, turns the Vanguard brand name into a verb, the better to help potential customers remember the company’s mutual funds and other investment products.
For years marketing professionals have been telling Wall Street that brand value confers a genuine competitive advantage. For years Wall Street has smiled politely, pulled down its green eyeshades and told us to stick to our knitting. So you can imagine my surprise when a senior manager from Credit Suisse reported recently that, after undertaking an in-depth, facts-and-figures research study on the topic, the company had determined that brand value gives companies a genuine competitive advantage.
Perhaps the most difficult aspects of Social Media to embrace are the changes in our behavior and overall philosophy it necessitates in order to earn relevance and ultimately prominence in consumer hearts, minds, and markets. Simply put, Social Media makes us vulnerable and officially ends an era of perceived control threaded by the illusion of invincibility. Everything we thought we knew and valued is now in dire need of reassessment. We are entering into a time when we are affected by voiced sentiment in the public spotlight and backchannels of the social Web. What we hear, see and observe can and should touch us.
The Disney studio, which is to unveil its production slate this spring, is backing away from one-off comedies like "When in Rome" and "Confessions of a Shopaholic," according to people familiar with the studio's new gameplan. In their place, Disney plans to focus on films that are essentially brands—like a planned Muppets movie—that can be exploited across its network of theme parks, videogames and commercial products. The recent success with "Alice in Wonderland" has given a new team of executives who run the studio confidence in their approach.
Allergan and Medicis Pharmaceutical are the Coke and Pepsi of vanity medicine. Allergan makes Botox Cosmetic, the well-known injectable anti-wrinkle treatment. Medicis markets Dysport, a competing anti-wrinkle shot, in the United States. The Food and Drug Administration has approved both drugs to smooth skin furrows between the eyebrows. And now Medicis has introduced a new marketing campaign that pits Dysport directly against Botox, essentially issuing a Pepsi challenge for the wrinkle wars. The campaign is even called the Dysport challenge.
Here's the rub: We've got too much sizzle in the system right now. Social media garnishes every marcom conference and discussion, and I'm already bolting myself in my chair before the unstoppable tweet tsunami from the SXSW crowd over the next 10 days. We're obsessed. Join the conversation! Engage the conversation! Hell, spike the conversation!
In need of an image makeover after an aggressive acquisition spree, Hewlett-Packard is launching its first corporate advertising campaign in more than five years. The company, which consumers know primarily for its printers, says it is seeking to recast itself as a broader technology concern with a campaign featuring, among others, rapper Dr. Dre and stand-up comedian Rhys Darby, star of the HBO series "Flight of the Conchords." A person familiar with the matter estimated that the eight-week campaign will cost $40 million.
Despite improvements in the global economy, chemicals, retail banking, consumer packaged goods, engineered products and services, oil and gas, and technology still need to transform.
Two weeks ago on TechCrunch I posted “The Facebook Imperative,” which posed a simple question, “Why isn’t all enterprise software like Facebook?” It was the next iteration of the question I asked in 1999 that spawned salesforce.com, “Why isn’t all enterprise software like Amazon.com.” If you have read my book, Behind The Cloud, you are well aware how that one question launched a company, and a movement. Its been an exciting decade. But the real excitement is just starting.
A few weeks ago, Forbes ran an article entitled, “Innovation Beyond Apple.” The piece de-briefed a discussion among executives from a range of consumer goods companies including HSN, Mattel, and Chrysalis, an incubator company for emerging brands. It challenged readers to think about innovation differently, and many of the points resonated with me.
Toyota has announced three major recalls covering a total of eight million vehicles globally since October 2009. The recalls are for defects that have been associated with 52 fatalities and 38 injuries so far. Not surprisingly, the business media and notable Toyota experts are starkly pessimistic. We looked at 108 Wall Street Journal articles discussing Toyota during February, 2010, and found that 106 were negative to Toyota. In a recent column by Dennis Seid, Jeffrey Liker, an economist and author of The Toyota Way observed that the hearings and the resultant lawsuits could severely damage the company in many ways.
Recessionary darling Walmart saw the first down sales quarter in its history and a surprisingly weak top-line over the holidays as aggressively expanding dollar stores and hard discounters swiped at its positioning. Additionally, last year it lost modest market share in package-goods sales for the first time since Information Resources Inc. began tracking the data -- while supermarkets, dollar and club stores all gained. In short, Walmart is increasingly finding itself caught in the middle between higher-end retailers and value players and, at least in recent quarters, is losing share to both.
I’ve been working with a major retail brand and my engagement has included an audit and assessment of retail best practices. Although most of my work is proprietary, I wanted to share some of my findings here because I’ve found some really interesting patterns.
Credit Suisse's report picks its 27 elite brands of tomorrow based on a deeper analysis of their potential. Most of the picks are brands that are "transforming," making the leap from niche/emerging players into powerful mainstream brands. Brands like Trader Joe's and Hyundai. These are brands that offer investors attractive returns, some risk but not as much as early-stage brands that may never make it over the hump once the initial rush of growth and enthusiasm is over. Only two early stage brands make the list: Facebook and Comac, a Chinese aircraft start-up.
Today many marketers are tripping over one another to invade social networks in force. There is a social media land grab underway as businesses rush to set up hubs on the "big three:" Facebook, Twitter and YouTube. All at once, businesses large and small recognize that they need to go where the people congregate. And with 100 million Facebook users in the U.S., this movement is understandable. When your local pizzeria is promoting their Facebook page at the register, as mine does, then you know that marketing has changed.
If any company seems well-positioned to both influence and profit from a generation of environmentally aware youth, it's Walt Disney Co. And Robert Iger, president and chief executive of Disney, insists the company is doing just that. Mr. Iger sat down with The Wall Street Journal's Alan Murray to talk about the new green strategies the company applies to everything from its theme parks to its movie studios, as well as changes Disney has seen in consumer attitudes. They began the conversation by talking about the company's conservation campaign—Friends for Change—which so far has reached more than a million children, he says.
American Express is using the celebrity-studded Academy Awards TV event on ABC to give one of its new programs a star turn: the company is promoting its cards by urging consumers to "take charge of making a difference." At American Express, card "membership" was long touted for its privileges. Now it comes with responsibilities too.
Move over, Amazon. Consumer-products makers, squeezed by private-label goods at retailers like Wal-Mart, are hawking their wares directly to buyers online.
Renzo Rosso, the tattooed, Ducati-driving founder of denim giant Diesel, owns some of fashion's most cutting-edge labels. In addition to the popular jeans-maker, Mr. Rosso's holding company, Only the Brave, includes celebrated European fashion houses Viktor & Rolf and Maison Martin Margiela. But Mr. Margiela is gone, as is the designer of Diesel, which Mr. Rosso founded in 1978. Mr. Rosso has replaced them with unknown teams that rank lower in the brands' hierarchy than business executives. The new creative director at Diesel is a magazine editor, not a clothing designer. Mr. Rosso believes his brands need trend-spotters more than someone who can craft a hemline.
There's a struggle with defining "branding" in digital. Some people claim that brands should be about utility, others that we need to build brand platforms and yet others think that brands should entertain us and give us something to talk about. Yet overall, surprisingly little has changed in the actual branding strategies in the industry. Something is wrong here.
"Good taste" is rarely used to describe great advertising, but Domino's is going to town with it. It just announced that it has doubled its quarterly profits after telling its customers that it had fixed the taste of its pizzas. It didn't "improve" things or follow any other standard operating procedures of the marketing world; in fact, it violated some of the basic tenets of advertising, such as telling the truth. Critics lumped it into the category of "mea culpa ads" (such as the billboards London's Evening Standard newspaper ran last year apologizing for the crappy quality of its content). Domino's went one better, though, by running documentary-style spots of consumers likening the crust to "cardboard" and topping to "ketchup." It was called extreme and even bizarre. Comedian Steve Colbert got in on the commentary.
Facebook, the world’s biggest social network, is selling more ad spots to big companies like Wal-Mart Stores, Procter & Gamble and PepsiCo. But the site’s pages are also home to countless ads from smaller companies that can be funny, weird or just plain creepy — those suggesting you are, say, eligible to get a free iPad because you are exactly 26 years old, or entreaties to see what your offspring would look like if you had a child with a celebrity.
Ford Motor Co. surpassed General Motors Co. in sales last month for the first time in at least 50 years, presenting a new headache for the government-owned car maker as it struggles to return to profitability. Hours after the sales results were disclosed Tuesday, GM announced an overhaul of its top managers—the second executive shuffle in three months. The news underscored the impatience of GM Chief Executive Edward E. Whitacre Jr. and the heat the company is feeling from a resurgent Ford.
"Caution. Not all hazards are marked." I couldn't help but notice this sign on the side of a ski trail during a recent vacation in the mountains. As I slowed my descent I thought about how this sign could apply to any number of things in this crazy world. Being in the brand business, I also thought about how apt they were relative to navigating the current marketplace. It's one thing to watch as consumer attitudes shift and you alter your product or service to meet the new conditions. It's another to sense that something's on the horizon and be the first in the category to address it. The ability to do so has always separated the good brands from the best brands.
Judging from its branding and the griping of its competitors, Apple customers are hip, aware, and enlightened, yet its shareholders recently defeated resolutions to make the company more environmentally responsible and affirmed instead their uncool unconcern about anything other than profits. There isn't just a disconnect here, but an entirely topsy-turvy arrangement.
Organizations love data: numbers, reports, trend lines, graphs, spreadsheets — the more the better. And, as a result, many organizations have a substantial internal factory that churns out data on a regular basis, as well as external resources on call that produce data for onetime studies and questions. But what's the evidence (or dare I say "the data") that all of this data is worth the cost and indeed leads to better business decisions? Is some amount of data collection unnecessary, perhaps even damaging by creating complexity and confusion?
The seemingly continuous commercials during the coverage of the Winter Games on the networks of NBC Universal gave a new meaning to the term “snow job.” It was as if every spot showed snow, or ice, or both, in which skiers, skaters and snowboarders cavorted. That made it difficult for ad-weary, ad-bleary viewers to distinguish the commercials from the actual coverage of the Vancouver Olympics. Perhaps that was the sponsors’ fiendish intent: to perpetrate the ultimate blurring of the line between advertising and content.
Is it possible to have a coffee, buy a car or go shopping without saving the world? Not these days. And now you can also host a pancake breakfast, send Girl Scout cookies to the troops and shelter stray pets, thanks to a friendly corporate sponsor. In addition to the now-requisite cause marketing, brands such as Quaker, Pepsi, Prilosec and Bisquick are turning to so-called microsponsorships of a few hundred or few thousand dollars that go straight to the consumer to fund their own pet project. The most visible of these is Pepsi Refresh, in which consumers can apply for grants ranging from $5,000 to $250,000.
Caribou Coffee, a distant No. 2 in the coffee chain category next to Starbucks, is attempting to bolster its appeal as a branded coffee company by playing down the ski lodge imagery and, yes, the caribou, with a sweeping rebranding. The push, which includes a new logo and print work, comes as the brand attempts to foster a more contemporary, less regional image. With locations in 15 Midwestern and Eastern states, Caribou doesn’t have the national retail footprint of Starbucks and has a fraction of the marketing budget. But it is known for its quality—Consumer Reports ranked it No.1 among java purveyors—and a new management team wants to expand upon that and build a national presence. One way to do that is by rolling out branded ground coffee on other retailers’ shelves. Such sales rose 77 percent in the fourth quarter of 2009, per the company. Caribou is now in 7,000 U.S. grocery stores.
Magazine executives spent much of last year telling anyone who would listen that they were taking their brands digital. Their message this year: Print rules. Five leading magazine publishers have pitched in on a multimillion-dollar ad campaign touting the "power of print." They say nearly 1,400 pages of the ads will be sprinkled through magazines including People, Vogue and Ladies' Home Journal this year.
Efficiency is a business school idea that suggests a company is running smoothly. It’s absolutely terrific when you’re talking about a coal mining operation or a Supercuts. But when it comes to a company like Yahoo, it’s not a positive. The Internet is still in its wild west days, and the “ready, fire, aim” game plan of Facebook and the other young guns is eating their lunch. Even the massive Google is still trying to shake things up with new and controversial products. Yahoo’s strategy seems more like “ready, aim, aim, aim, aim…”
I spoke recently with Walter Kiechel about his new book, The Lords of Strategy, which describes the rise of the large strategy consulting firms — BCG, McKinsey, and Bain — as well as the business school professors who contributed conceptual frameworks and pragmatic insights to the strategy revolution. Kiechel, a former Managing Editor at Fortune magazine, was the Editorial Director of Harvard Business Publishing from 1998 to 2002.
A useful survey from global PR firm Burson-Marsteller this week looks at the ways in which the Global Fortune 100 companies are using social media. The tools they are using and how they are developing a social media strategy. The survey looked at 100 firms in the US, Europe, Asia-Pacific and Latin America and examined how these firms are using social media.
Facebook's virtual currency, "Facebook Credits," is getting very close to its full launch: a post on the Facebook developer blog explains some of the full terms of the system and what developers can expect as the currency continues to roll out slowly.
Ever wonder what is really behind this thing we call "identity? " It's one of those words that attracts a variety of meanings, ranging from a company's name and logo, to its business definition (Fuji: We're a digital imaging company), to its image in the marketplace, to its values.
General Motors said on Wednesday that it would shut down Hummer, the brand of big sport utility vehicles that became synonymous with the term gas guzzler, after a deal to sell it to a Chinese manufacturer fell apart.
Online newspapers face two seemingly insurmountable challenges: getting customers used to paying for content and getting the industry used to charging for it. But in fact airlines have faced a similar, albeit simpler, situation with respect to baggage.
With its traditional video-rental business under assault, Blockbuster Inc. has brought in restructuring advisers, looking to buy yet more time to remake itself in the face of new rivals and technologies. In recent days, Blockbuster tapped law firm Weil, Gotshal & Manges and investment bank Rothschild Inc. to look at ways to reduce its roughly $1 billion debt load and explore other strategies, such as acquisitions or partnerships, said people familiar with the matter.
Sears Holding Corp. has undertaken a huge task: To completely revamp and relaunch approximately 450 Kenmore appliance models. The move is part of a larger effort for the home appliance brand, which is sold exclusively at Sears. Right now, the changes are rolling out on washing machines, and soon, on refrigerator units. Kitchen appliances will follow later this year. The goal is to contemporize Kenmore, an 83-year-old, iconic American brand, said Betsy Owens, Kenmore vp and general manager. Female consumers, primarily, saw Kenmore as a brand that their grandmothers and mothers bought, but that didn’t necessarily speak to them, Owens said. So to update the brand and its image, a new television, in-store and social media campaign was launched.
Brand loyalty is crucial for brand health. Ad agency founder Jim Mullen once said: "Of all the things that your company owns, brands are far and away the most important and the toughest. Founders die. Factories burn down. Machinery wears out. Inventories get depleted. Technology becomes obsolete. Brand loyalty is the only sound foundation on which business leaders can build enduring, profitable growth."
Like many retailers, the North Face has been having trouble luring shoppers into its stores. The company, which sells outdoor apparel and gear, is about to try a new tactic: sending people text messages as soon as they get near a store. Advertisers have long been intrigued by the promise of cellphones, because they live in people’s pockets and send signals about shoppers’ locations. The dream has been to send people ads tailored to their location, like a coupon for a cappuccino when passing a coffee shop.
Some small businesses are experimenting with new Web-marketing services that integrate social media. While entrepreneurs say they've seen some positive results, some of the services carry hefty fees and their long-term value remains unclear. Start-ups like Groupon Inc., LivingSocial, BuyWithMe Inc. and IMshopping Inc.'s NimbleBuy let merchants offer one-day promotions, sometimes requiring a minimum number of customers to participate in order for the promotion to be valid.
Why go to the trouble of creating networks of passionate consumers? Well, partly because your consumer will insist you do. Engaging directly with them is the new normal. The ubiquity of social-networking tools has created an expectation of accessibility not just from friends and colleagues but from companies too. We're now in a culture that celebrates and enables constant contact and responsiveness from everyone, like it or not. But the real reason to go beyond conventional broadcast media, and even beyond constant engagement to the Holy Grail of community, is to create commitment in an environment that predisposes people to capriciousness.
The wave rolls in every day at noon Manhattan time. It gathers invisibly, out in the digital netherscape. A few minutes before the hour, the online retailer Gilt Groupe blasts out an e-mail, and a hush falls over many a workplace, as phone calls are cut short and spreadsheets minimized. Gilt Groupe is in the business of selling high fashion at deep discounts, and as you might deduce from the company’s name, with its Frenchified “e,” it presents itself as an exclusive club. In reality, that’s just artifice—Gilt is a viral-marketing phenomenon. During the hour after its weekday sales kick off, between noon and 1 p.m., the company claims, its site is visited by an average of roughly 100,000 shoppers. For that time, it might as well be the most crowded store in New York.
One thing I learned from my days in traditional advertising is that a brand doesn't exist on shelves—it exists in the hearts and minds of people. Your brand is the sum total of perceptions about your product in the heads of your relevant audience. If that's true, then online media are the most important place for your brand image to be established, defended and grown. This is where your offering comes face-to-face with your audience and where its responses can be measured, shaped and—if need be—countered in real time. This is where perceptions can be built, person by person.
Let's get this straight right away: Return on investment in social media is not measured in how many friends you have on Facebook or how many followers you have on Twitter. It's not calculated in trending topics or YouTube comments. It should, in fact, be held to the same criteria other marketing channels are: Did it move your business? It's done just that at Starbucks, which is a digital marketer worth watching.
The Kaiser Foundation recently released a study documenting the astounding fact that 8-18 year olds in the United States have increased their media use from 8hrs 33 mins per day in 2004 to 10hrs 45 mins in 2009, which means that except for when they sleeping or in school they are almost always consuming media. I call them the 10:45 generation. Regardless of whether you think this is bad news signaling the demise of our children, or good news expecting our progeny are on the way to be becoming more literate in rich media world, as a business leaders we all must face this new reality. In particular, this short post will deal with the issue of managing your brand for the 10:45 generation.
Richard Saul Wurman is an architect and graphic designer known for sparking debate. In 1984 he founded nonprofit TED and began holding annual events to stir up conversations about technology, entertainment and design. More recently, Wurman is appearing in Web videos to create chatter about a new topic: emissions, cars and the hope for a cleaner environment. Nissan Motor tapped Wurman and other thought leaders in December as part of a year-long marketing effort geared to make more people aware about the impact of emissions on the environment. Wurman and other luminaries, including Swedish designer Marcus Eriksson, appear on in videos a Web site called Journey to Zero that many might miss as being a message from Nissan.
Disney, the company that created "the happiest place on earth" and cornered the market on pink, is embracing a darker aesthetic as it reaches out to an unlikely audience for new merchandise: female "goths." In the run-up to the March 5 opening of director Tim Burton's movie "Alice in Wonderland," Walt Disney Co.'s consumer-products division is aiming its marketing firepower at young women and teenage girls, particularly those who gravitate to darkly romantic entertainment like the "Twilight" series.
Editor’s Note: In his inimitable style, Marty Neumeier, author, lecturer and director of transformation at Liquid Agency, makes complex marketing principles seem logical and easy to understand. Here from his book “Zag: The #1 Strategy of High-Performance Brands,” Neumeier explains why in a world of “look-alike products and me-too services” it is important for brand marketers to zag when everyone else zigs.
NBC Universal’s television coverage of the Winter Olympics in Vancouver this month is exhaustive, as viewers have come to expect. But its Web coverage, at least when compared with the Summer Games in Beijing 18 months ago, is limited. NBC’s Web site is live-streaming fewer sports than it did in Beijing, marking a step backward in online access to marquee events. The company is making no secret that it would prefer for viewers to watch the Olympics on television, especially in prime time, even though a growing number of people are accustomed to watching TV on the Internet.
Think of someone you know who is graduating from high school in 2010. Maybe it’s your younger cousin, or a niece or nephew. Perhaps it’s your son or daughter. Or perhaps it’s some young folks in your town you may know. Take a minute to think about someone you have watched grow up for the past 15 or so years. Furthermore, let’s acknowledge that your young high school graduate represents, quite literally, the “18” in the coveted “18-35 demographic” that many marketers are constantly trying to reach. Now think about the fact that the high school graduating “Class of 2010” was born around the time that Netscape Navigator arrived—the time when the Web was born.
It goes without saying that the Great Recession has been a time for companies to pull back and retrench. But the recessionary downswing has also become a remarkable opportunity for re-imagining and reinventing brands. Some marketers have been forced to rethink their brands because of competitive pressures; when things are good, it's easy to put aside the marketer's responsibility to continually re-excite its consumers (and stun gun the competition). Too many marketers leave that quest to Apple, Nike and Marc Jacobs.
The bowls are getting bigger and steamier, but the soup spoons are going away. Those are among the biggest changes Campbell Soup Co. is making in decades to the iconic labels and shelf displays of its condensed soups—the company's biggest single business, with more than $1 billion in sales. The changes—expected to be announced Wednesday—will culminate a two-year effort by Campbell to figure out how to get consumers to buy more soup. Condensed soup has been a slow-growing category in which budget-conscious consumers have little tolerance for price increases.
Kraft Foods expects to realize annual pre-tax cost savings of at least $675 million by the end of 2012, some of which will be used to further increase advertising and consumer spending as a percentage of revenue, chairman/CEO Irene Rosenfeld reported during the company's Q4/year-end fiscal 2009 earnings call on Tuesday. The global food giant increased advertising and consumer spending to 7.2% of net revenues in 2009, versus 6.7% in 2008, she pointed out. The increased advertising support for key brands, including the Philadelphia Cream Cheese "Spread a Little Love" and Miracle Whip "We Will Not Tone It Down" television campaigns, have been "extremely well received" and effective at building the brands' franchises, Rosenfeld said.
Some prestigious brand-name pharmaceutical companies that once looked askance at the high-volume, low-cost business of generic drugs are now becoming major purveyors of generic medicines. Just don’t call them no-name drugs.
For all the excitement about social media, there's a specter hanging over its use by companies. Is all this tweeting, blogging and Facebooking paying off? For some proponents, the question is irrelevant. They agree with the view encapsulated in the social media bible The Cluetrain Manifesto -- markets are conversations. Companies have to participate in the conversations where they're happening, ROI be damned. Their dismissal of metrics is summed up in an oft-repeated question, "What's the ROI of putting on your pants in the morning?"
As a brand, publisher, designer, photographer, artist, or filmmaker, the social web is your new distribution channel as well as your portfolio for intellectual assets. Whether you’re in the business of creating, marketing, selling, or distributing media, the social Web is an incredible medium that can create a brand, establish visibility, and build demand, all without active promotion. It’s about letting your expertise or work market itself through the practice of a socialized form of inbound marketing that helps make content discoverable when people search.
NBC calls it "the world's biggest focus group." With an estimated 185 million unique viewers over a 17-day period, the Olympic Games provide a special audience microcosm, and one that NBC believes will be particularly useful for measuring new-media consumption habits and trends. NBC touts all the different platforms it is bringing to bear for the Games, which began Friday in Vancouver. Viewers can watch on the network, NBC Universal's many cable channels and NBCOlympics.com. They can download clips to their iPhones and receive mobile updates on a favorite skier or figure skater.
Procter & Gamble, the consumer goods company behind products such as Tide and Pampers, hopes the Olympics will help it score with penny-pinching shoppers. The Cincinnati company rolled out a $10-million ad campaign Monday, integrating corporate and brand messaging, to win over consumers watching the 2010 Winter Games. The goal? To convince shoppers to buy its premium products. TV and Web ads, themed "Thanks, Mom," announce P&G's efforts to subsidize travel costs for every mother of a Team USA athlete.
The Chief Marketing Officer (CMO) has become one of the more commonly talked about corporate designations in recent years. Given the tremendous marketing potential offered by the new media and proliferation of distribution channels, companies have begun to realize the huge potential of marketing in guiding corporate level strategies and substantially contributing to the financial bottom line. In spite of such an understanding, it is startling to note that the average tenure of a CMO is merely 23 months compared to a CFO that typical lasts 4-5 years on average. Further, not many companies have a senior marketing representative in their C-suite. This begs the question – do companies need a CMO or is the role of a CMO a mere hype? This article probes this question and offers companies some guide posts for better strategic directions.
We all know the statistic and scratch our heads: The average tenure of a CMO is around two years or less. Why? Usually it takes that long to fully understand the intricacies and true insights of most industries, companies and brands. Repeating an action over and over again anticipating a different outcome is a humorous definition of insanity. So are CEOs and boards insane?
With Americans tightening their belts, BMW AG is parking "the ultimate driving machine" in the garage, at least for a while. The auto maker for years has promoted the power and performance of its cars using that slogan, one of the longest-running and most well-known in the auto industry. But now the company is switching gears. On Friday, it was launching an advertising campaign that focuses on the joy the company says comes from owning its vehicles and suggests BMWs are safe for mothers and children. One print ad uses the tagline "Joy is Maternal"—a departure from past promotions that touted horsepower, handling and acceleration.
No one has seen more changes to the MTV brand than Judy McGrath. The CEO of MTV Networks started with the network in 1981 as a copywriter and eventually ascended the ranks to her current position in 2004, where she has seen many different iterations of the network and its programming even as fellow pioneering executives such as Tom Freston and Robert Pittman have come and gone. One of those changes came as recently as last week, when MTV unveiled the first major on-air update to its logo in its 28-year history. The redesign was met with mixed reaction. "I don't think what they did is wrong," George Lois, creator of the network's historic "I want my MTV" campaign, told Ad Age. "I think what they did is strategic. And it just proves to me that MTV is dead."
Daring Fireball's John Gruber — a Drexel University computer major turned professional blogger — is perhaps the most forceful and articulate defender on the Web of all things Apple (AAPL). He came to Macworld Expo 2010, however, not to praise the company but to probe its vulnerabilities.
General Electric, for one, still believes in advertising. As the Olympics begin, the company is introducing its biggest campaign ever aimed at consumers. Called Healthymagination, it publicizes G.E.’s role in the world of doctors and hospitals. In the United States alone, G.E. expects to spend more than $80 million this year on the campaign. Its role in health care is technical: G.E. makes and sells medical devices, like machines that measure bone density and perform M.R.I. scans. But the advertising focuses on the personal.
One of the greatest challenges I encounter today is not the willingness of a brand to engage, but its ability to create. When blueprinting a social media strategy, enthusiasm and support typically derails when examining the resources and commitment required to produce regular content. Indeed, we are programing the social web around our brand hub, which requires a consistent flow of engaging and relevant social objects. Social objects are the catalysts for conversations — online and in real life — and they affect behavior within their respective societies.
The world's biggest retailer, Wal-Mart Stores, and Procter & Gamble, the world's biggest consumer-products maker, are jointly creating a made-for-TV movie, in an effort to promote "family-friendly" alternatives to what they say is increasingly risqué TV fare. The two advertising heavyweights have teamed up on the two-hour "Secrets of the Mountain," to be broadcast in April on NBC. The movie, which focuses on a single mother who brings her family to a mountainside cabin, highlights values—such as generosity, honesty and togetherness—that Wal-Mart and P&G executives say are in short supply on television.
"To build a global medium as central to people's lives as the telephone or television ... and even more valuable." This was Steve Case's vision in the early 1990s, and everyone wanted to be a part of it. The company he founded, American Online, was one of the nation's most admired. By turning Internet access into a home utility, AOL became one of the nation's most admired brands and workplaces. It was the Google or the Facebook of its time. Then something happened.
PepsiCo ditched the Super Bowl this year to make a major social media play. Instead of spending money for ad time on the Super Bowl, it's relying primarily on digital initiatives to spread the word about its Internet-based Refresh Project contest and charity campaign. The cause-marketing effort is a good one. Word is spreading through traditional media, online networks, social media and celebrity chatter. But I believe Pepsi made a big mistake in giving up its long-held Super Bowl ad real estate. A more integrated media approach--one that included the Super Bowl--would be a savvy play for Pepsi. And such integration is something top marketing executives need to keep in mind in their rush to embrace digital initiatives.
For those of you who have been following Wikimedia's open strategy initiative on this blog, you'll know that one of the goals of the work has been to strengthen the health of the Wikipedia community of contributors who create and use its online encyclopedias. In a healthy community, contributors feel a sense of affiliation and social bonding, they come from diverse backgrounds and expertise areas required to accomplish the project's expansive work, remain open to differences of perspective and able to resolve disputes respectfully. "Community health" is a hot topic among participants engaged in developing the Wikimedia strategy, both within the broader Wikimedia community and outside it.
Be afraid, Madison Avenue. Be very afraid. That seems to be the message in the aftermath of the crowded, frenetic advertising bowl that took place inside Super Bowl XLIV on Sunday. Among those commercials consistently deemed most effective, memorable and talked-about, many were created or suggested by consumers — or produced internally by the sponsors — rather than the work of agency professionals.
Hello, Hollywood. On the heels of the Foursquare-Bravo TV deal, news of several additional major media partnerships involving the location-based social networking app have dropped this evening. According to various reports, Zagat, Warner Bros., HBO, the History Channel and ExploreChicago have all been added to Foursquare’s media and entertainment mix. Here are the partnerships that appear to be live or coming very soon:
Microsoft is getting cozier with Madison Avenue. The software company is partnering with advertising holding company Interpublic Group in a deal that will make Microsoft the go-to ad technology provider for the U.S. offices of ad giant's agencies, including McCann-Erickson, Deutsch, Hill Holliday and The Martin Agency. Microsoft, of Redmond, Wash., slashed its undisclosed rates, so that its ad server Atlas will become the default technology to deliver ads and analyze their performance.
Panicky poultry, a battered Betty White and a series of violent ads for Doritos provided plenty of laughs during Sunday night's Super Bowl, even with the weak economy prompting several heavy-hitting advertisers to sit out the Big Game.
Pepsi's Refresh Project, a first-of-its-kind experiment in social media that invests the brand in community-building projects, won't simply leave a legacy for the recipients of its financial grants. It's also a pivotal test case for other brands trying to navigate an ad-cluttered, cynic-rich marketing landscape.
As dangerous as it may be to generalize, it is probably safe to say that few folks think of Marcel Proust as they watch the Super Bowl. But for the advertising bowl that took place inside Super Bowl XLIV on Sunday, it was one long remembrance of things past — with candy bars, mobile phones and beer bottles standing in for madeleines. Nostalgia is a critical component of the pitches from sponsors on Super Bowl Sunday. After all, the best way to appeal to a mass audience of 100 million or so Americans is usually to fill spots with paeans to the past along with catchy music, stars, special effects, talking babies and endearing animals.
If you're a marketer who has steered clear of Twitter, your (non)strategy may be paying off! It's possible that this Twitter thing may just take care of itself. In the middle of last year, Twitter's growth slowed from 7.8 million new users a month to 6.2 million, according to a recent study from RJ Metrics. That report also found that only 17 percent of Twitter users updated their accounts in December -- an all-time low. An earlier study by the Nielsen Co. revealed 60 percent of Twitter users do not return from one month to the next. Taking that into account, it's tempting to conclude that Twitter is following in the footsteps of another social-media ghost town, Second Life.
Chances are, a good portion of your target audience is actively engaged in online games. And if they're there, you should be there, too. Gamers are not passive observers; they're active and motivated participants. Brands have a chance to be part of that experience -- often in the very moment when players are willing to give something to get ahead in the game. This is a level of attention that few, if any, other media can offer.
Charging into the Super Bowl for the first time, Kia Motors is discovering that buying a 30-second ad during the game, which will air on CBS this Sunday, is opening a few doors, namely a deeper relationship with a very big company: Google. Google is working closely with Kia and nearly all Super Bowl XLIV's 40 Super Bowl advertisers, offering them exposure far beyond the TV. The marketers that are paying up to $2.8 million for each 30-second spot can upload the ads on Google's Super Bowl Ad Blitz page, as they have in the past. But this year Google has added even more features including social media buttons that will make it easy for viewers to pass them along or "tweet" them on Twitter.
Social Media marketing is rapidly earning a role in the integrated marketing mix of small and enterprise businesses and as such, it’s transforming every division from the inside out. What starts with one champion in any given division, be it customer service, marketing, public relations, advertising, interactive, et al, eventually inspires an entire organization to socialize. What starts with one, a domino effect usually ensues toppling each department, gaining momentum, and triggering a sense of urgency through its path. And, it also marks the beginning of our journey through the ten stages of social media integration. But where do we start?
Today, as the globe struggles with an historic economic decline, it's time for a new revolution. I'd like to advance a hypothesis: Today's great competitive challenge isn't going from Good to Great. For people, companies, and countries, it's going from great to good.
Several years ago, my colleague Dave Ulrich and I looked at how leaders build value by building employee confidence in the future. Our findings bear revisiting as companies begin to emerge after the devastation of the last 18 months and work to create new value.
Just days before the Super Bowl, when media outlets are abuzz about all the commercials consumers can expect to see in the big game, the folks of Gastonia, N.C., a small town 25 miles west of Charlotte, are opening their newspapers to find an article about one company that will be sitting on the sidelines this year: Pepsi.
A new report from the Chief Marketing Officer (CMO) Council report indicates that marketers are under-valuing perks, discounts, deals and additional service opportunities, as customers give them high marks. Both customers and marketers agree that deeper engagement and personalized contact drives loyalty.
When the going gets tough, costly good intentions can go out the window. Company spending has been squeezed by the global recession and budgets for corporate social responsibility have suffered disproportionately. A survey of U.K. businesses by KPMG and Business In The Community found a third of companies cut their corporate social responsibility budgets in 2009. Corporate philanthropy has also been hit, with a study by the Giving USA Foundation revealing that charitable donations by U.S. companies fell by 8% in inflation-adjusted terms in 2008.
While the reviewers pick apart Apple's iPad, one unassailable argument remains: We are not just living in digital times, but on digital time. From getting news to reading the latest best-selling novel, to watching reruns of Gilligan's Island, most of the content, products, information and entertainment we enjoy is available with a click. Consumers are conditioned to get what they want when they want it. I'm not sure this "double-click mentality" is necessarily a healthy thing, but it's real, and the reality has huge implications for marketing and media executives. People want things that are immediate and convenient. Woe to marketers--even bricks-and-mortar retailers--that don't get this. Double-click gratification is a table stake.
My first exposure to the term "social media" came courtesy of Ted Leonsis, former VP of AOL, back in 1998. At the time, I was one of the leaders of Procter & Gamble's first interactive marketing team, and Leonsis was briefing us on a new tool called ICQ ("I Seek You"), created by an Israeli company AOL had just purchased, Mirabelis. What Leonsis put on our lap was akin to instant messaging on steroids. He had no clue how P&G might take advantage of this curious tool. There was no "ad model," per se, and he even had doubts whether advertising was appropriate. He just thought we needed to internalize its capabilities -- what with tens of millions of global consumers, mostly teens, using an insanely wired and networked desktop device with so many hieroglyphic style icons, it would make your head spin.
There certainly will be advertising winners (and losers) on Super Bowl Sunday but let's hope that the Monday morning quarterback chatter doesn't obscure the larger shift at hand for marketers this year. 2010 will be the year of the "platform" for advertisers. Unlike a website, banner, Facebook application or 30-second spot, a platform is an always-on digital environment that allows brands to run specific or multiple programs. The goal is to meaningfully engage consumers on multiple levels.
The frequent question asked of the design community is of its value to business. The query itself makes little sense. Quite simply, the role of designers has always been to translate and communicate the value of a business idea to consumers. The best designers can do far more—they can help companies connect and establish a dialogue with consumers, thus enabling firms to innovate more efficiently. The challenge for most corporations today is about how to innovate while mitigating risk. For consumers, choices are made by balancing the need for evolution with the force of habit. Designers are trained to understand how people think and how to make things. For this reason, there are four basic areas in which design has an important role to play in value creation.
Fueled by the music industry's ongoing turmoils and, finally, books going digital at a very rapid pace, there is a lot of debate on how to deal with the fact that many people habitually share i.e. redistribute digital content without any of the upstream users making their own payment. How can you monetize content when the copy is free? This question is a key issue across the board, whether it's in music, eBooks, news, publishing, TV or movies. The fear is, of course, that once a digital item has been purchased by one person it can be easily forwarded to anyone else if it is in an open format, thus seriously reducing the possibility that someone else will actually pay real $ for it, as well (of course, the same is true for supposedly locked or protected digital content as well - it just takes a bit longer). No more control over distribution = no more money. Right?
The mea culpa and brand-saving by Toyota Motor Corp. began today, as the embattled carmaker launched a public relations defensive on all fronts -- print, TV and social-media networks -- in a bid to salvage its image in the wake of the 2.3 million vehicle recall.
Though there's still widespread disagreement of just when the industry will put the recession firmly behind it, one thing's clear: Whenever it happens, marketers had better be ready. Forward thinkers such as Allstate, Walmart, New Balance, Macy's, Procter & Gamble, McDonald's and Bank of America are already paving the way to recovery by spending on marketing and product innovation, cementing relationships with new consumers and rewarding loyalists who stuck by their brands during the bad times. They are also creating products and messaging that bridge from recession to recovery.
Decades ago, consumers were invited to “be sociable, have a Pepsi.” Now the brand wants to invite consumers to help Pepsi support social causes — and will use social media like Facebook and Twitter to help spread a message. Pepsi-Cola is formally introducing on Monday an ambitious campaign named the Pepsi Refresh Project, aimed at doing well by doing good. The brand is dedicating at least $20 million through the end of the year for donations to local organizations and causes proposed by the public in realms like health, arts and culture, the environment and education.
When the Vancouver Olympic Games kick off on Feb. 12, visitors will find café furniture made from pine-beetle-salvaged wood, drink out of bottles made from 30% plant-based materials, and their beverages will be delivered via hybrid vehicles and electric cart. All are elements of Coca-Cola's first zero-waste, carbon-neutral sponsorship. The effort has been years in the making, beginning with a relatively simple recycling effort for the Athens Olympic Games in 2000. Since then the company has layered in additional elements, like environmentally friendly coolers and shirts made out of plastic bottles.
NBC Universal likely won't turn a profit off its broadcast of the Winter Olympics this year, but it hopes the research it performs on the event's massive audience might generate additional ad revenue in the days and months after the last gold-medal hockey skate has left the ice. The media giant, in the midst of parent General Electric's transfer of majority ownership to Comcast Corp., intends to ratchet up its examination of Olympics viewers' media-consumption habits, building off a big test it performed during the 2008 Summer Olympics broadcast from Beijing.
Long the quality and efficiency standard-setter, Toyota now has an ostrich-sized egg on its face — a problem with sticking accelerator pedals that led to global product recalls and a suspension of production and sales. There are important lessons to be learned from Toyota's stumble: Competitive success is fluid. It depends on continuously discovering better ways to do work. The capabilities to do this are powerful but fragile and need constant reinforcement. Relentless attention to their development can lead to great success; conversely, a loss in attention can have grave consequences.
In the old days, most of the meanings of our objects came prefab. This is what brands did for us. Brands, and the advertisers, planners, researchers and marketers who made them. Inevitably we would add meanings to our possessions. We might finesse the ones we found there. But mostly, anyone with the same objects had the same meanings. Thus did our material culture make our culture material.
You have to give it to Apple. The company has an uncanny knack for seizing the moment and whipping journalists and consumers into a frenzy. The latest wave comes from today's launch of the iPad tablet with iBookstore content store. As always, there's a lot to like about Apple's device. The user interface looks great, the bookstore seems intuitive, and Apple set a price point (at least for the entry level iPad) that positions the device well in the marketplace. The hype bar was set so high that inevitably some people were disappointed - Dan Frommer from Silicon Alley Insider called it a big "yawn" that won't define publishing the way many experts projected.
Modern capitalism can be broken down into two major eras. The first, managerial capitalism, began in 1932 and was defined by the then radical notion that firms ought to have professional management. The second, shareholder value capitalism, began in 1976. Its governing premise is that the purpose of every corporation should be to maximize shareholders’ wealth. If firms pursue this goal, the thinking goes, both shareholders and society will benefit. This is a tragically flawed premise, and it is time we abandoned it and made the shift to a third era: customer-driven capitalism.
Book publishers were locked in 11th-hour negotiations with Apple Inc. that could rewrite the industry's revenue model after the technology giant unveils its highly anticipated tablet device Wednesday. Apple's new multimedia tablet device, with a 10-inch touch screen that is expected to deliver video, text, navigation and social-networking applications, is trying to change the way much of traditional media is delivered.
There is a lot of talk today about word-of-mouth, social media and all the technologies that surround them. But have you ever wondered why consumers talk? It turns out that understanding why consumers choose to communicate is rooted in the cognitive psychological sciences. Before you nod off, read on, because this just might make you think differently about your marketing. The brain is designed not to think.
Buying Super Bowl ads has helped catapult companies like online brokerage E*Trade Financial, Internet job board Monster.com and video site Hulu into the public eye. That's why several little-known advertisers—including mobile pay-TV firm Flo TV, information provider KGB and vacation rental service HomeAway.com—are forking over millions of dollars to appear on this year's Big Game broadcast.
When it comes to innovation, many executives in the consumer goods industry are chasing Apple. Who can blame them? While most retailers spent the holiday season slashing prices, Apple reported record earnings by enchanting audiences with iPhones. Now, as retailers try to re-engage consumers this year, executives are trying to replicate the "Apple thrill." But focusing exclusively on product innovation is a mistake for most companies, say executives who gathered recently at Berglass + Associates, my company, to discuss innovation.
Steve Jobs is walking the same path as Walt Disney. As soon as California’s Disneyland was completed, Walt knew he had made a terrible mistake by not securing the surrounding real estate. He had built this wonderful destination but his oversight allowed hotel chains and restaurants to come in and make more money off his customers than he did. So Walt immediately went to Orlando, FL and built Disneyworld the right way. The moral of the story is that Steve Jobs is not someone you want to depend on for your livelihood. His goal is to build a closed digital neighborhood where Apple (AAPL) controls who makes money and who doesn’t. I'll bet that in one of those Apple board meetings that Google (GOOG) CEO Eric Schmidt used to attend, he realized that Jobs was on the verge of building AppleWorld and he's been scared ever since.
One of the most common fears I focus on defeating among executives and brand managers is that in new media brands lose control by publishing content and engaging in social networks. The general sentiment is that by sharing information and creating presences within public communities that they, by the nature of democratized participation, invite negative responses in addition to potentially positive and neutral interaction. By not fully embracing the social Web, many believe that they retain a semblance of control. The idea is that if brands abstain from providing a forum for hosting potentially disparaging commentary, it will prevent it from earning an audience – in this case, an audience that can impact the business and the reputation of the brand.
There's a war going on in the business of sports. On one side are the sponsors that pay millions of dollars for their brands to bask in the publicity surrounding certain teams and events. On the other: a growing number of companies that crowd into the spotlight without paying—sometimes by bending, or breaking, the rules.
When Time Warner Cable was tussling over fees with the News Corporation, it did something that would have been unthinkable in the backrooms where deals were once struck: it hired a political consultant to mount a public campaign against its own client.
According to the 2009 Cone Consumer New Media Study, an online survey by Opinion Research Corporation among a representative U.S. sample of 1,048 adults, comprising "new media users," 44% of American new media users are searching for, sharing or discussing information about corporate responsibility (CR) efforts and programs and are highly confident they can have an effect on business.
Quick: Describe your company's business model. Having trouble? That wouldn't surprise me. In reality, there isn't really any consensus about what the term "business model" even means. Suggestions range from the all-encompassing, everything-in-your-value-chain approach to the reductionist "A business model is nothing else than a representation of how an organization makes (or intends to make) money."
NBC has mopped up its late-night mess. The network now faces a more challenging task: rebuilding its evening hours after years of cost cuts and creative missteps. NBC executives are saying they plan to spend at least 30% more than last year to develop TV series for the fall, and 20% more to market the shows, although they didn't attach a dollar figure to the estimate. The General Electric Co. network, which has seen its ratings and profit slide since 2005, is working on 18 to 20 pilot episodes for new shows, up from 11 last spring.
2010 is the beginning of a new era for business. We've mastered quality. Squeezed every drop out of efficiency. Saturated the marketplace with innovation. And we're using advanced information and communication technologies to reshape the very fabric of our marketplace concepts and relations. So what's next? Certainly not "branding;" at least not in the conventional sense. The notion that a marketplace offering is a static, transactional thing that needs the right injection of cosmetics and communication to bring it to life is flawed thinking in today's environment.
Here's what the economic historians of the 23rd Century are going to say about the 20th. "They built giant, globe-spanning organizations, that employed tens of thousands of people working around the clock, to produce... sugar water, fast food, disposable razors, and gas guzzlers. Perhaps the defining characteristic of the paradigm of 20th Century capitalism was its astonishing lack of ambition. Rarely in history has such a void, a poverty of imagination been so deeply woven into the fabric of humankind's economic systems."
Young people wearing hoodies and chunky glasses are sipping microbrew beers and espressos, nibbling on cheese and baguettes made at a local bakery and listening to a guitarist strum and sing. The scene could be at any independent coffeehouse around the country. Instead, it is at a Starbucks-owned shop called 15th Avenue Coffee and Tea. The new store, one of two in Seattle’s trendy Capitol Hill neighborhood, grew out of a series of brainstorming sessions by a group of Starbucks employees after Howard D. Schultz, Starbucks’ chief executive, told them to “break the rules and do things for yourself.”
It took the telephone 45 years to penetrate half the homes in America; radio, less than 20; color TV, 15; computers, 10; cellphones, eight; and the internet, a mere six years. The speed of change is accelerating. Five years ago Facebook, Twitter, YouTube, Hulu and the iPhone didn't exist. Today Facebook has 350 million members; Twitter boasts 30 million; and Hulu is the second biggest "channel" in America, having surpassed Time Warner Cable. Technology now has profound impact on consumer behavior. Take brand loyalty, for example. Smartphones enable consumers to comparison shop on the basis of price at the point of sale. The democratization of information may result in commoditization of brands as consumers make purchase decisions by searching for the lowest-priced product. Technology may also alter the purchase cycle and give rise to powerful third-party influencers, counterbalancing paid media's "management" of the purchase cycle. These are transformational shifts for brands.
In May 2009, Absolut Vodka launched a limited edition line called "Absolut No Label." The company's global public relations manager, Kristina Hagbard, explained that "For the first time we dare to face the world completely naked. We launch a bottle with no label and no logo, to manifest the idea that no matter what's on the outside, it's the inside that really matters."
During my early years in large scale project management with GE, I was exposed to an idea by an outside advisor which he referred to as the three knobs. In essence, every project is ultimately controlled by turning (up or down): 1. The time knob - The duration of a project (e.g. implementation, ROI, etc.); 2. The money knob - The dollar investment; and/or 3. The people knob - The human capital investment.
Apple on Monday ratcheted up the public relations buzz surrounding the launch of a new product, widely expected to be a tablet-sized computer, this month. It sent out a press invitation via email, inviting journalists to “come see our latest creation”. Whilst far from explicit, as is Apple’s wont, the invitation was the strongest confirmation yet of what has been the company’s most anticipated new product since the launch of the iPhone three years ago.
The irony of the report that The New York Times is going to start metering readers and charging those who come back more often is this: They would would end up charging — and, they should fear, sending away — the readers who are worth the most while serving free those who are worth least.
For most marketers, the growth of multicultural segments became a business imperative after the 2000 Census and the generational focus shifted from boomer to Gen Y. If you're managing a large brand today, you are likely addressing these opportunities through some combination of targeted Hispanic, African American or Asian, and youth-marketing initiatives. But today that segmentation is not enough; a bigger change is emerging that is more meaningful than just demography.
A hill, a giant chasm, and a cloud-covered peak. Close your eyes and picture a lopsided "M" for a second. That's the new landscape of advantage. And the recent skirmish between Google and China is its best example yet. On one side is the old high ground of the industrial era capitalism; on the other, the new high(er) ground of next-generation capitalism. The yawning chasm in between them is the gap between the 20th century and the 21st.
In 2010, Social Media will rapidly escalate from novelty or perceived necessity to an integrated and strategic business communications, service, and information community and ecosystem. Our experiences and education will foster growth and propel us through each stage of the Social Media Marketing evolution. As MarketingSherpa observes, “2010 is the year where social media marketers gain the experience required to advance from novice to competent practitioner capable of achieving social marketing objectives and proving ROI.” It’s a powerful prediction and it’s one that I also believe. This is your year to excel, teach, and create your own destiny.
After years of bidding up fees for the rights to televise sports, U.S. media companies are putting on the brakes. Richard Carrion, a member of the International Olympic Committee's executive board, said the organization is seriously considering delaying until next year the bidding for the U.S. media rights for the 2014 and 2016 Olympics because of the ongoing struggles of broadcasters hurt by a rocky advertising market.
Oscar Meyer, which has two of the most famous advertising jingles, is pushing them to the side as it introduces its biggest campaign to date. After more than 125 years in existence, the brand is spending more than $50 million on its first campaign to extend across all of its meaty products: bacon, hot dogs, premade sandwiches, bologna and sliced packaged meats. The brand wanted to emphasize its name beyond just a few well-known products, said Sean Marks, director for marketing at Oscar Mayer, a division of Kraft Foods.
When Volkswagen CEO Martin Winterkorn said two years ago that he was determined to zoom past Toyota to become the world's biggest automaker, the notion seemed laughable. At the time, the German automaker sold 3 million fewer vehicles than Toyota, was losing ground in the U.S., and had a reputation for iffy quality. Toyota, then set to pass General Motors as the best-selling carmaker on the planet, seemed unassailable.
On Dec. 13, Accenture decided to end its six-year sponsorship of Tiger Woods. The next day, Roxanne Taylor, the global consulting firm's chief marketing officer, presented the concept for a new ad campaign to Chief Executive Bill Green. Amid salacious headlines about the golf superstar's alleged extramarital affairs, the new campaign, based on an idea Accenture's ad agency already had on hand, was put on a fast track. It would replace images of Mr. Woods with a lineup of animals pictured in ways designed to jibe with Accenture's longstanding slogan: "High Performance. Delivered."
Most of the marketing rules we lived by just five years ago are practically obsolete. The industry has faced more changes in the last five years than in the previous 50. Let's face it, there's no point in improving broken legacy models. Since necessity is the mother of invention, let's not waste this recession and instead use it to rethink how we go about branding in this new decade.
In a post-recessionary world, trust has moved from the individual to the corporate realm. It is one of the most important issues that business organizations face when it comes to the future of their brands. A 2008 study by the Chief Marketing Officer Council found that some 99% of customers surveyed said they would either scale back or terminate relationships with companies that fail at building customer trust. In the past, trust may not have seemed like a natural part of management's role, but these days it is a critical part of every business, one proven to have an effect on the bottom line. Customers need to see that a solid foundation has been built within a business and that their needs will be addressed--especially in times of crisis.
Google’s stunning declaration that it would stop cooperating with Chinese Internet censorship and consider shutting down its operations in the country ricocheted around the world Wednesday. But in China itself, the news was heavily censored. Some big Chinese news portals initially carried a short dispatch on Google’s announcement but that account soon tumbled from the headlines and later reports omitted Google’s references to “free speech” and “surveillance.”
What makes Barnes & Noble a better brand than Charter Communications--and many others? Customer experience. Forrester Research recently released its third annual Customer Experience Index. The study ranked 133 US companies across 14 industries using feedback from more than 4,600 consumers. Barnes & Noble came in at the top for the second year in a row, slightly ahead of Marriott Hotels and Hampton Inn. Other winners: Amazon.com and Costco. At the other end of the spectrum, Charter Communications took the bottom spot for the third consecutive year. Also at the bottom: Cigna and Medicaid.
Social Media impacts every business, every brand, and in doing so, connects a network of distributed communities of influence, making the world a much smaller place in the process. Small businesses are in fact at an advantage in Social Media Marketing as they can focus on hyper-local activity that can offer immediate rewards or at the very least, the real-time feedback or lack thereof says everything about next steps.
I gave myself a deadline of January 15 to do a recap of identity work in the 2000s, assuming that it wouldn’t be an editorial faux pas to do a list of this sort well into the new year. So here it is. An admittedly incomplete — it would take months to do this exhaustively — compilation of the most relevant identities of the past decade. The choices are listed chronologically and there is no ranking system, they are simply there as records of the corporations, products and services that shaped the decade and the identities that helped (or didn’t help) shape their perception in consumers’ eyes and minds.
In the midst of every marketing meeting, there comes that point where the entire room leans forward in their seats. The tension heightens. There's an almost palpable sense of voyeurism; everyone strains toward the reveal of that titillating morsel that represents insider access. And the question is asked: "So, what's the consumer insight?" The strategist slowly rises and says, "We always knew that the consumers say this, but did you know that they really do this?" Yes, ladies and gentlemen, it's shock and awe time. As a planner at heart, that's my bread and butter. What this very authentic example of consumer-insight fetishism raises is the question of what to do when your brand represents one thing but consumers are searching for another. Said differently, what can be done when your brand marketing becomes more about reflecting the reality of your consumers and less about your brand's aspirational identity? To keep your unique brand-driven narrative alive and prevent it from turning into a slow-moving episode of "60 Minutes," there are a few things that I believe every marketer should strive to do.
UBS AG Tuesday issued an employee code explicitly banning staff from helping clients cheat on their taxes, as part of the Swiss bank's effort to restore its reputation after a messy U.S. probe into hidden offshore accounts. "We do not provide assistance to clients or colleagues in acts aimed at deceiving tax authorities," according to the code, which is prefaced with remarks from UBS Chairman Kaspar Villiger and Chief Executive Oswald Grübel. The code, which also addresses issues such as financial crime, competition, confidentiality and diversity, is meant as a response to wrongdoing in UBS's U.S. offshore arm, which has since been shuttered.
This interview with Tony Hsieh, the chief executive of Zappos.com, was conducted and condensed by Adam Bryant. Q. What are some of the most important leadership lessons you’ve learned? A. After college, a roommate and I started a company called LinkExchange in 1996, and it grew to about 100 or so people, and then we ended up selling the company to Microsoft in 1998. From the outside, it looked like it was a great acquisition, $265 million, but most people don’t know the real reason why we ended up selling the company.
A decade ago, America Online merged with Time Warner in a deal valued at a stunning $350 billion. It was then, and is now, the largest merger in American business history. The Internet, it was believed, was soon to vaporize mainstream media business models on the spot. America Online’s frothy stock price made it worth twice as much as Time Warner’s with less than half the cash flow.
Sir Richard Branson has begun his assault on the financial industry with the purchase on Friday of a little-known private bank as a launchpad for a fully fledged business. Virgin Money, the personal finance arm of Sir Richard’s company, is buying Somerset-based Church House Trust, which has 3,000 customers and no branches, for £12.3m.
The buzz is palpable about Apple's plans to announce a tablet computer later this month. I think it's instructive as to the function and uses of conversation. Apple is a company that has utterly shunned the social media campaigns that have displaced more old-fashioned ways to waste consumers' time. It has no Twitter feed, provides no payola to twentysomethings so that they’ll blog about its products, and I bet it would happily ignore a request for comment from the President if asked. It doesn't talk. Apple does.
A number of retailers raised earnings forecasts Thursday after reporting healthy December sales gains, the fourth month in a row of year-over-year sales increases. Sales for the five weeks ended in early January rose 2.9% compared with the prior year, the best monthly showing since April 2008, according to a Thomson Reuters index of 30 retailers. Total holiday-season sales grew 1.8%, overcoming a tepid start in November with a late surge before Christmas, according to a similar index of 33 retailers by the International Council of Shopping Centers.
Ford recently wrapped the first chapter of its Fiesta Movement, leaving us distinctly wiser about marketing in the digital space. Ford gave 100 consumers a car for six months and asked them to complete a different mission every month. And away they went. At the direction of Ford and their own imagination, "agents" used their Fiestas to deliver Meals On Wheels. They used them to take Harry And David treats to the National Guard. They went looking for adventure, some to wrestle alligators, others actually to elope. All of these stories were then lovingly documented on YouTube, Flickr, Facebook, and Twitter.
While most CMOs have laid forth their plans for 2010, many are still seeking a way to innovate in a time of uncertainty. Where are the opportunities? With the recent dramatic drops in marketing spending, there has been one category that continues to grow. Throughout 2009 we saw the launch of many national cause-marketing programs (see sidebar: Dawn, H&R Block, Pepsi, Sonic Drive-In) at a time when marketers were watching budgets more closely than ever. With this rise in popularity comes the question: Where is cause marketing headed in 2010? While the rules of a successful cause campaign remain solidified, the category is set to change dramatically in 2010.
Microsoft on Wednesday evening positioned itself for a potential war over a new category of touch-screen “tablet” computers as Steve Ballmer, chief executive, anticipated an expected major product announcement from Apple by showing off a version running on Windows software. The Microsoft boss used his speech at the opening of the annual Consumer Electronics Show in Las Vegas to highlight the product, made by Hewlett-Packard.
General Motors Co. will make money in 2010, its chairman said Wednesday, a bold and surprising forecast for a business that exited bankruptcy proceedings just last summer and hasn't turned an annual profit since 2004. "My prediction is we will be" profitable in 2010, Edward E. Whitacre Jr. told reporters at GM's Detroit headquarters, a sign of rising confidence that also sets a tough benchmark for the still-struggling car maker's employees. "Do we have obstacles in the way? Yes. But we have a good management team and a good plan in place."
So Google's got a new phone now. Internet coverage is predictably hyperbolic, though Scott Anthony smartly puts the phone's potential to make waves into the future tense, and the New York Times' typically giddy David Pogue was downright snarky in his review. Nevertheless, the tech industry is atwitter with a fresh new rivalry. Mac versus PC is so last decade. Now, it's "Hello I'm an iPhone." "And I'm a Nexus One." I vote for Rainn Wilson playing Google in the commercials.
Coca-Cola today has a market capitalization in excess of $100 billion because the perceived value of its brand is significantly higher than the sum total of all the assets of the company. In my years with Procter & Gamble and Heinz, I have come to realize that no matter what the product or service, the key principles for building a great brand remain the same. By staying true to these seven principles, a marketer can weather economic highs and lows while building an iconic brand for target consumers.
The coverage of Google's Nexus One "superphone" - officially unveiled today - was swift and almost universally positive. The HTC-designed device looks beautiful, its functionality sounds fantastic, and by all accounts it looks like a viable competitor to Apple and Research in Motion in the smartphone market. In this case, however, there's more to the story. Google's distribution approach has the potential to dramatically accelerate a broad disruption in the mobile phone market where the balance of power shifts from carriers and retailers to device, software, and applications providers.
When it comes to rebrands, few were more ridiculed in 2009 than the Sci Fi Channel's much-ballyhooed switch to Syfy, a respelling that prompted an outcry of negative feedback from hardcore fans and marketing gurus alike (including our very own Adages, which asked, "Is Arnell involved in this somehow?") But unlike the ill-fated redesign of the Tropicana logo that Peter Arnell oversaw last February and that Pepsico eventually pulled, the switch to Syfy is so far a success, with the network logging its highest-rated year, quarter (fourth) and series ("Warehouse 13") ever after its July 7 rebranding. The newfound ratings momentum also seems to have had a halo effect on its ad dollars, which were already up to $264.8 million by November 2009. That means the network is on track to surpass the $274.9 million logged in measured ad spending it recorded for all of 2008, according to TNS Media Intelligence.
Investor Warren Buffett waded into the rancorous battle for Cadbury PLC, issuing a rebuke of Kraft Foods Inc.'s just-sweetened, nearly $17 billion takeover offer for the British confectionary company. As Kraft's largest shareholder—with a 9.4% stake—Mr. Buffett's holding company, Berkshire Hathaway Inc., said it wouldn't support the issuance of new shares to pay for a Cadbury deal.
News Corp has unveiled its biggest restructuring of Dow Jones since its $5.6bn takeover of the financial information business in 2007, merging its consumer and enterprise divisions. The reorganisation will see the departure of Clare Hart, president of the enterprise business, who had driven a more web-based strategy for a business dependent on distributing its newswires content over the terminals sold by Thomson Reuters and Bloomberg.
Special K, the 54-year-old Kellogg brand, has in recent years aimed at women with its “Special K Challenge,” which recommends replacing two meals daily with cereal and curtailing snacking to lose up to six pounds in two weeks. The popularity of the plan led the brand to expand to nine flavors and develop noncereal products like frozen waffles, protein bars, crackers, shakes and powdered drink mixes that can be substituted for cereal at mealtimes or eaten as the two daily snacks the plan permits. Despite all those products to sell, a new series of Special K commercials, by the Chicago office of Leo Burnett, part of the Publicis Groupe, features none of them.
Google’s expected unveiling on Tuesday of a rival to the iPhone is part of its careful plan to try to do what few other technology companies have done before: retain its leadership as computing shifts from one generation to the next. The rapid emergence of the smartphone as a versatile computing device may be as much a challenge as an opportunity for Google, which built its multibillion-dollar empire largely on the sale of small text ads linked to search queries typed on PCs.
Happy New Year! I hope you had a great holiday and you are as excited as I am about kicking off 2010! After the long hard haul of 2009, I’m eager to see business get off to a fresh start this year. It’s impossible to know exactly what the New Year will bring, but I’m confident more attention will be paid to brands and brand-building. That’s because there are at least three key areas that I see brands having an immediate and significant impact in.
Call it 2010. Call it twenty-ten, or even 2K10. No matter how you refer to the last year of the first decade of the 21st Century, everyone in the marketing is wondering what the past few sobering years will mean for brands and consumer behavior. It doesn't take a seer, or even a branding professional, to declare that consumers will continue to demand value, no matter which direction the economy goes. Consumers have learned--some the hard way--that financial discipline is a must. They will also demand that the values practiced by the companies with which they choose to do business are good and honest and trustworthy. And lest any company thinks it can put one over on anyone, a text, a blog, a YouTube video or a Tweet will quickly prove otherwise.
In a manifesto-like e-mail message sent last month to all Google employees, Jonathan Rosenberg, a senior vice president for product management, told them to commit to greater transparency and open industry standards. Rather than hoard knowledge to exploit it, he wrote in “The Meaning of Open,” share it and watch Google and the entire Internet prosper. With the Chrome browser, however, Google’s inclusive principles are being put to the test: a new version of the browser allows, one might even say encourages, users to stop Google ads from appearing. How Google got to such a position speaks to the inherent dynamism (or is that chaos?) of business on the Internet.
A year-end flurry of ad spending helped moderate steep declines at some newspapers and magazines, and has fueled an uptick at others, raising hopes for a recovery in 2010. Still, following a brutal 2009, when scores of publications closed or made drastic cutbacks, publishers remain wary of declaring an ad rebound as marketers selectively reopen their wallets. Publishing executives attribute the recent influx of ad money in part to marketers hurrying to spend the remainder of their annual ad budgets after doling out those funds sparingly earlier in the year amid fears of an economic collapse.
Novartis AG aims to get full ownership of Alcon Inc. through the purchase of a 52% stake in the U.S. eyecare company from Nestlé SA and by buying out minority shareholders, in a deal that will bring the Swiss drug maker much closer to its goal of becoming a global health-care conglomerate. Getting a strong foothold in the market for eyecare products is part of Novartis's strategy of branching out into fast-growing areas of health care to make up for slowing sales of branded prescription drugs. The Swiss group is also investing heavily to build its generic drugs and vaccines businesses, two sectors with double-digit annual sales growth.
Imagine a planetarium-style presentation about the future of technology, followed by a tour of dozens of hands-on exhibits — whether of sandlike microparticles that flow like liquid in a beaker, pictures that appear three-dimensional or concrete that floats. Is it the latest science museum, or a new Disney attraction? No, it’s the “World of Innovation” showroom, a cornerstone of the 3M Company’s customer innovation center at its headquarters in St. Paul. In a world of online user communities, social media, interactive blogs and other technological means for companies to elicit customer feedback, you might think that face-to-face interaction is a thing of the past. Think again.
Some have asked, Where does social media live? Is it marketing? Is it public relations? Is it IT or corporate? Is it a combination of multiple business units and functions, and if so, who leads the efforts and how does an organization choose partners? These are valid and complex questions, currently with no simple answers. Social media is still emerging and being defined in real time. There's a question missing from that litany, one that organizations or individuals rarely ask themselves: Do you live social? Many organizations simply skip this question because they assume that they themselves don't have to be social (open and collaborative) to reap the rewards (cost savings, marketing ROI, effective reputation management, and search engine juice) they think they might get from social media.
Think back, way back, to the last time you were in a 7-Eleven. Recall the smell, the light, the products on the shelf, the linoleum under foot, the clerk behind the counter. It’s as if everything that is bad and wrong in the ordinary world has assembled in a kind of jamboree of awfulness. When I used to frequent one in downtown Boston, I would shuffle around endlessly looking for something to eat. And I came to the conclusion that with the exception of a token apple or two, only artificial food is allowed in this place. If you ate here exclusively for a month (instead of at McDonald’s), there is no chance you would complete the assignment.
Imagine a planetarium-style presentation about the future of technology, followed by a tour of dozens of hands-on exhibits — whether of sandlike microparticles that flow like liquid in a beaker, pictures that appear three-dimensional or concrete that floats. Is it the latest science museum, or a new Disney attraction? No, it’s the “World of Innovation” showroom, a cornerstone of the 3M Company’s customer innovation center at its headquarters in St. Paul. In a world of online user communities, social media, interactive blogs and other technological means for companies to elicit customer feedback, you might think that face-to-face interaction is a thing of the past. Think again.
It’s hard to argue that 2009 wasn’t the year of Twitter. Yes, the questions about monetization loomed over the young web company as soon as it started gaining popularity, and they’re still largely unanswered. But people loved this new way of communicating via 140 character messages that go out to everyone who wants to hear them. So much so, that everything else (even money) wasn’t very important.
What's the best business reaction to a recession? How about none at all. Unlike many outfits in the struggling restaurant industry, Panera, the soup and sandwich chain with more than 1,300 stores in 38 states, has stayed strong by standing still. "The key to Panera's success lies in what the company hasn't done," says Nicole Miller Regan, an analyst at Piper Jaffray. "Panera hasn't fallen victim to discounting. It hasn't levered up the balance sheet. It hasn't tried to change." Such calm amidst the storm has paid off for shareholders. Panera stock is up 26% this year: in fact, it's one of the best performing stocks of the decade, having generated a whopping 1,560.65% return.
Last week I sent an email to Googlers about the meaning of "open" as it relates to the Internet, Google, and our users. In the spirit of openness, I thought it would be appropriate to share these thoughts with those outside of Google as well. At Google we believe that open systems win. They lead to more innovation, value, and freedom of choice for consumers, and a vibrant, profitable, and competitive ecosystem for businesses. Many companies will claim roughly the same thing since they know that declaring themselves to be open is both good for their brand and completely without risk. After all, in our industry there is no clear definition of what open really means. It is a Rashomon-like term: highly subjective and vitally important.
Madison Avenue gave a nod to grim economic realities in this year's crop of ads, but also pitched plenty of escapist fare—both inspired and goofy. The industry was struggling through one of the worst business climates it has seen in decades. Global ad spending plummeted 10%, according to ZenithOptimedia, a media-buying company owned by Publicis Groupe. Cash-strapped advertisers cut the fees they pay their advertising firms, and tens of thousands of ad jobs were lost. Some of the country's largest firms, such as WPP's JWT, were forced to close once-thriving outposts in markets such as Chicago. Well-known agencies such as Cliff Freeman & Partners ("Where's the Beef?") were forced to close shop completely. From reviews of major campaigns and interviews with advertising executives, here are our choices for some of the best and worst marketing maneuvers of 2009.
As we begin a one-year celebration of the ANA's 100th anniversary, we have created the Marketers' Constitution, which contains 10 essentials of marketing for the next 100 years. Its purpose is to ensure that our industry continues to thrive and contribute to the growth of the U.S. economy and to the well-being of our society.
In a sign that Google is interested in broadening its reach among local businesses, the search giant is in acquisition talks with Yelp, the review site for local businesses, according to three people with knowledge of the deal. The two companies have had conversations for several years, but a more serious round of acquisition talks began two months ago, one of the people said late Thursday. The companies have discussed a price and are negotiating the details, but have not yet signed an agreement.
Snapping a 23-year streak on the gridiron, PepsiCo's beverages will sit out Super Bowl XLIV, as the soft-drink and snack giant puts its advertising muscle behind a new cause-related marketing program. The move is an about-face for Pepsi, which was the biggest advertiser on last year's broadcast of the big game and has long made the National Football League championship the centerpiece of its marketing strategy. Pepsi has used the event, TV's priciest showcase for ads, to launch splashy spots starring celebrities such as Britney Spears, Cindy Crawford and Ozzy Osbourne.
The economy appears to have begun recovering after the worst recession in half a century. But businesses ranging from shoemakers to financial services to luxury hotels don't expect American consumers to return to their spendthrift ways anytime soon. They see consumers emerging from the punishing downturn with a new mind-set: careful, practical, more socially conscious and embarrassed by flashy shows of wealth. Much as the 1930s shaped the spending habits of an entire generation, many companies now anticipate a shift in consumer behavior that persists even after jobs and growth get back closer to normal.
In an effort to turn around Blockbuster Inc., Chief Executive Jim Keyes is trying to get customers to think of the struggling video-rental chain as more than just a pit stop for DVDs. By offering a broad array of entertainment options and ways to get them, Mr. Keyes hopes to beat back competition from companies that provide movies via mailed rentals, kiosks and deeply discounted sales. But even with a detailed plan, Mr. Keyes faces a tough slog. He has already closed unprofitable stores and slashed inventory, and the chain is still struggling to turn a profit. In three of the last four quarters, Blockbuster posted losses, and it got a going-concern warning from its auditors in April.
Back in the good old days, Microsoft did desktops, Google stuck to search and Apple made toys for people in polo necks. No more. The superpowers of the technology world are at war, and like real wars, the battle is happening on several fronts. They're fighting on the desktop, they're fighting on mobile phones, they're fighting in the browser and they're fighting in your front room. Who will prevail, and who will end up in a bunker?
In order to compete in this new economy, chances are you've already pared down your operations. You've also probably adopted "flat revenue" as the new measure of growth. Even typically profit-focused Wall Street is looking at sales growth to see how people are spending money again. I have news, growth is the only real measure of growth. And with your operations streamlined, now is the perfect time to grow.
Does your company truly care about its customers or are you--and your employees--just saying you are "customer focused"? These days, customers won't be fooled if your company's actions don't live up to its promise.
Weighed down by lackluster programming and declining ratings, NBC has been a problem for many different people: programming honchos Kevin Reilly and Ben Silverman; NBC Universal CEO Jeff Zucker; GE chief Jeff Immelt; and even one-time top-rated late-night comic Jay Leno. Now the hot potato is soon to be passed to Comcast -- which, oddly enough, doesn't see the broadcast network as a burden at all.
Cadbury's chief executive will today make a staunch defence of the confectionery group's future as a standalone company as he urges shareholders to reject Kraft's £9.9bn hostile bid. Todd Stitzer, along with Cadbury chairman Roger Carr and chief financial officer Andrew Bonfield, will unveil the company's formal defence to several hundred investors in a 90-minute presentation.
As web-based augmented-reality applications have exploded, it's more important than ever to remember AR is a technology based on utility and not gimmicks. Unfortunately, as with most new and emerging technologies, it's quickly becoming overhyped and abused. Usability and user experience have been thrown under in the stampede of agencies and brands saying "Hey, look -- me too!" Even more disturbing is that most marketers are overlooking the most unique aspect of AR itself: that it's a technology that can create innovative and sustained engagement between a brand and its target consumer through utility.
Until now, executives have focused on two forms of strategic advantage: structural and capability-based. The Big Shift challenges both. It undermines traditional approaches to structural advantage by systematically reducing barriers to entry and movement. Static capabilities are also increasingly vulnerable - they represent knowledge stocks that depreciate at an accelerating rate. Unless they are rapidly refreshed by knowledge flows, these capabilities rapidly lose their power to differentiate. The findings from our recently released 2009 Shift Index provide graphic evidence on these points. Our analysis shows a sustained and significant deterioration in ROA for all public companies in the US since 1965 - ROA declined by over 75% during this period.
Google Inc. and Apple Inc., which have long thrived without treading on one another's turf, are vying to acquire some of the same Silicon Valley start-ups and developing products that put themselves in more direct competition. Google was in serious discussions to acquire online-music company La La Media Inc. before Apple won the deal this month for $85 million, people familiar with the matter said
Video entertainment was “the one that got away” from Apple, but recent moves reveal the company is taking a second stab at the category, and that streaming video will play a major role. The addition of video cameras to Apple’s latest iPhone and iPod Nano were just the first hints of the company’s new personal-media strategy. The company is also building a 500,000 square-foot data center in North Carolina, which could provide the massive bandwidth required for ubiquitous streaming video. And Apple’s recent acquisition of Lala suggests it’s interested in rebooting iTunes into a streaming service, according to Wall Street Journal. That means music, in Lala’s case, but the same infrastructure could be shared with streaming video.
Apple Inc., the company that restructured the music industry around its iTunes service, is exploring an overhaul of the way it sells and stores music that is aimed at extending its influence to the Web, according to people briefed on the strategy. The key vehicle for the move is Apple's newly acquired music-streaming service La La Media Inc. for which Apple paid $85 million, according to people familiar with the matter.
A host of Web start-ups are gaining traction based on the premise that they make it easier for people to buy and sell online than the company that invented the idea: eBay Inc. Second Rotation Inc.'s Gazelle.com site, which offers people a set price to take used gadgets like iPods and laptops off their hands, last month more than doubled the number of products, to 18,000, that it took in compared with a year earlier. Glyde Corp. last month launched its own online marketplace that allows consumers to sell used books, DVDs and videogames in a system that automates posting a listing, figuring out how much to charge and even mailing it out. Gazelle pays consumers for used electronics that it then lists for resale. Above, an employee shelves electronics at the company's Boston facility. Many of these companies are tapping a recession-friendly opportunity they dub "re-commerce," which essentially means using the Internet to find a second life for used stuff that usually just gathers dust on bookshelves and in garages.
Gone are the days of relying solely on boasts about towing capacities and horsepower to move the metal. Ford and Chevy dealers soon will start talking more about fuel economy and iPod outlets as the companies roll out new compact and subcompact cars.
Five major magazine and newspaper publishers on Tuesday announced plans to build an industry-standard platform to present their work on the Web, phones and e-readers in a richer, more flexible and more lucrative form than is possible today. The consortium of Time Inc., Conde Nast, the Hearst Corporation, Meredith and the News Corporation does not lack for ambition, hoping to design software primarily for devices that do not yet exist – cellphones more advanced than anything now on the market and e-readers far more sophisticated than today’s mostly static, black-and-white devices.
France's Groupe Danone finally lost its foothold in China this fall after a two-year legal battle with local beverage maker Wahaha. Apple's iPhone logged a disappointing debut there in November. Figuring out the Chinese retail market -- which posted 5.9 trillion yuan ($867.6 billion) in total sales in the first half of this year -- is far from a piece of cake for some big international corporations. But not for Kraft. The president of Kraft International, Sanjay Khosla, told Forbes how the world's second largest food company overhauled its recipe for success to align with the particular appetites of China's 1.3 billion people. It now boasts the biggest market share in China in two major categories: cookies and powdered beverages.
Nike is changing directions to go places it's never gone. But the floor leader directing this isn't legendary co-founder Phil Knight– as well-known for his ego as his vision. It's his unassuming, hand-picked replacement, Mark Parker. After four years as CEO, Parker is growing Nike from a brand that you slip on your feet or pull over your shoulders to one that follows you off the field into your life of digital socializing and New World hobbies.
Comcast Corp.'s deal to take control of NBC Universal from General Electric Co. will create a television and movie giant that faces challenges in an uncertain media business and a lengthy review from regulators. Comcast, which is paying $13.75 billion in cash and assets, gains 51% of a joint venture that will own two broadcast networks, more than a dozen cable networks, a major movie studio and theme parks. As part of the deal, Vivendi SA agreed to sell its 20% stake in NBC Universal to GE for $5.8 billion.
People typically lunge for metaphors when trying to describe the Internet’s Domain Name System, or D.N.S., so here’s mine: think of D.N.S. as one of those switchboard operators at the old Ma Bell telephone company. Each Internet service provider has its own bank of these operators, called D.N.S. servers. Type in a Web address — nytimes.com, for example — and the ISP’s operator looks up the numerical IP address of the site and connects the call. On Thursday, Google introduced its own “switchboard operator” — a new product called Google Public D.N.S. Essentially, it will allows you to use Google’s operator instead of your ISP’s. Why is Google doing this?
It's the year 2015. The compact device in my hand delivers me the world, one news story at a time. I flip through my favorite papers and magazines, the images as crisp as in print, without a maddening wait for each page to load. Even better, the device knows who I am, what I like, and what I have already read. So while I get all the news and comment, I also see stories tailored for my interests. I zip through a health story in The Wall Street Journal and a piece about Iraq from Egypt's Al Gomhuria, translated automatically from Arabic to English. I tap my finger on the screen, telling the computer brains underneath it got this suggestion right.
McDonald's is going to change its logo in Germany, casting its iconographic golden arches against a green background to invoke its respect for the environment. I can't decide if the idea is irrelevant or insane. Or both. Central to the decision would be the premise that fast-food customers make eating decisions based on corporate environmental policies. If comparisons between hamburgers or fries net out in a tie, McDonald's must believe that it'll win because it's doing good things for the planet.
Ford Motor Co., betting that U.S. drivers will embrace small cars with the amenities of larger models, is preparing to resume building subcompacts in North America for the first time since ending the Pinto in 1980. The domestic version of Ford's (F) new Fiesta was unveiled at the Los Angeles Auto Show on Tuesday, Dec. 2. It will feature seven air bags and voice-activated audio controls to help win buyers who might snub diminutive cars with substantial prices.
Microsoft’s top search technology executive on Wednesday all but dismissed the likelihood that the company would pay newspaper owners and other publishers for removing their content from Google. His comments came a week after it emerged that Microsoft had been in talks over a News Corp-led initiative that would have paid publishers to leave Google as a way to boost Microsoft’s own search engine, Bing.
Jack Dorsey, who came up with the idea for Twitter and is now its chairman, has unveiled Square, his new start-up. The idea: anyone with a mobile phone can accept credit card payments. Mr. Dorsey has been working on the idea for a while, and on Tuesday the company’s Web site went live. Square makes a small square device that plugs into any gadget with an audio input jack, including an iPhone or iPod Touch, and turns the device into a credit card machine.
The Web is changing before our eyes. Traffic to almost every major media and portal site has been in a free-fall since September 2008, according to Nicholas Moerman, a planning intern with Proximity in London. This begs the question: If we are spending more time on the Web, not less, just where did our attention go? The answer is, unsurprisingly, social networking sites. According to Moerman's analysis, they buck the trend. Social networking is on a tear. Other than Google, few sites loom larger today in brokering traffic and attention flows than Twitter and Facebook. The New York Times reported recently that Twitter will soon become one of its top 10 traffic drivers. Facebook alone grabs 25% of the entire Web's page views, according to an analysis by Perry Drake of Drake Direct.
General Electric has reached a tentative agreement that clears the way for the sale of NBC Universal, including the flagship NBC network, to Comcast, the nation’s largest cable operator, people briefed on the deal said Monday. Under terms of the deal, G.E. will buy Vivendi’s 20 percent stake in NBC Universal for about $5.8 billion. It removes one of the few remaining hurdles in its plan to sell control of the television and movie company to Comcast in a $30 billion agreement that reflects the changing landscape of broadcast television.
AOL is putting the finishing touches on a high-tech system for mass-producing news articles, entertainment and other online content, the linchpin of Chief Executive Tim Armstrong's strategy for reviving the struggling 25-year-old Internet company after Time Warner spins it off next month. Mr. Armstrong's goal is to make AOL, which has been losing visitors and revenue, a magnet for both advertisers and consumers by turning it into the top creator of digital content. He hopes to do so in part by turning some media and marketing conventions on their ear, and potentially blurring the lines between journalism and advertising.
Looking for a good flick to watch tonight? Visit Instantwatcher, which marries New York Times critics' picks with the Netflix streaming-movie catalog. Interested in updating your music collection? Visit ArtistExplorer, which combines the Billboard charts with BestBuy.com's inventory database. Neither Netflix nor Best Buy made the applications—but both made them possible by opening up their APIs. You've likely been hearing a lot about APIs lately, and the concept isn't as confusing as it sounds. An open API simply means you've launched an interface that lets third-party software interact with your data; and those third parties can then mash the data up and build useful new tools on top of it.
Todd Stitzer, Cadbury chief executive, has signalled support for a possible tie-up with Hershey, declaring the US confectioner a better cultural fit with the chocolate maker than Kraft, the food conglomerate that has launched a hostile £10bn bid. Hershey, which has owned the licence for the Cadbury brand in the US since 1988, is contemplating a bid for Cadbury after the decision by Kraft of the US this month to go hostile. If Hershey can finance the bid, it is likely to make a friendly offer.
Digital is so yesterday. It will soon be 20 years since the advent of commercially available digital services such as America Online, multimedia, mobile phones and widespread use of personal computers. The American household went digital long before marketers embraced technology and the Internet. Now, as companies struggle to get their "digital strategies" in order, they will be surprised to discover consumers have moved on to the "post-digital" age.
The Empire always strikes back. Every revolution inspires a counter-revolution. Luke Skywalker and the Rebel Alliance didn't win independence overnight — and neither, it seems, will the www. Microsoft is negotiating with News Corp to pay it to remove its content from Google's index. Uh-oh: the Empire — industrial-era business as usual — is striking back. Will the rebels be crushed? Not a chance. Blocking Google is about as smart as eating a pound of plutonium. Here's why MicroFox is making a big mistake.
I believe if Social Media warranted a mantra, it would look something like this, “Always pay it forward and never forget to pay it back…it’s how you got here and it defines where you’re going.” This is the credo I live by and something that has only been reinforced as part of my daily regiment, online and in the real world. Paying it forward and paying it back is the balladry of reciprocity, the undercurrent of social media and the currency of the social economy. The words, “what comes around goes around” and the overall spirit of karma reminds us that there may be personal rewards and satisfaction for helping and contributing more than we take away from our environment. In sociology, this form of alternative giving is referred to as “generalized reciprocity” or “generalized exchange.” In the same vein, the idea of giving something to one person by paying another is credited to Benjamin Franklin, which would ultimately serve as the defining foundation to “Pay it forward.”
Bad news isn't bad wine. It doesn't improve with age. According to Bain & Co, 80% of CEOs think their brands offer a superior experience, but only 8% of their consumers agreed. AOL seemed to have gleaned that fact. AOL's running man (logo) had already run off the cliff, revealing a brand that was desecrated, unoriginal, normalized and downtrodden. The business goal of any brand is to create more users, new users or new uses by continually innovating to add value to customer's lives. AOL CEO Tim Armstrong needs to ask himself: What is AOL's true brand ambition? What does he wish his AOL brand to be capable of achieving? With great brands come great benefits -- including higher customer loyalty, increased opportunities and elevated profits.
As the high season of holiday shopping pain (or gain) arrives, I find myself fixated -- perhaps irrationally, and certainly emotionally -- on Best Buy's Twelpforce. This is the viral army of 2,200 Best Buy employees who answer questions and solve customer problems via the customer-care channel we know as Twitter. Self described as "a collective force of Best Buy tech pros offering tech advice in Tweet form," the program has nearly 15,000 "followers" and it's growing. Think Apple Genius Bar but without the physical counter.
Now Wal-Mart, the mightiest retail giant in history, may have met its own worthy adversary: Amazon.com. In what is emerging as one of the main story lines of the 2009 post-recession shopping season, the two heavyweight retailers are waging an online price war that is spreading through product areas like books, movies, toys and electronics.
Consumers are generally cautious heading into the critical holiday shopping season, with preseason trends suggesting that electronics sales may be solid while sales of apparel, particularly women's styles, could get pummeled. Spurred by the release of a hot videogame and earlier-than-usual promotions on televisions, U.S. shoppers spent 6.1% more on electronics in the first half of November the month, through Nov. 14, than a year ago, according to a recent analysis from MasterCard SpendingPulse, a unit of MasterCard Advisors.
At some point in our schooling, we all learned about the ancient Greek marketplace called the "agora." The agora was a place where people gathered to shop, discuss politics and meet friends. Merchants built early commerce around one essential element: human interaction. But gradually, the marketplace changed. Along came the industrial revolution, the creation of mass communications and long-distance travel. We suddenly found ourselves in the 1950s, the true dawn of the consumer society.
Microsoft has had discussions with News Corp over a plan that would involve the media company being paid to “de-index” its news websites from Google, setting the scene for a search engine battle that could offer a ray of light to the newspaper industry.
In case you haven't noticed it, almost every public and commercial establishment blew up this year. Your reputation and brand aren't what they used to be. Citizens no longer believe in their governments. Investors don't trust the markets. Science, history, and even the very definition of what constitutes facts are up for debate, quite often contentiously so. Even though our planet is evermore wrapped in the knowing embrace of instantaneous communications, networked conversation, and access to literally infinite amounts of information, people seem to agree less, distrust more, and rely on a shrinking list of common beliefs.
Here's something I've been thinking about for some time now. You see, there is this company. It publishes over a hundred RSS feeds and several email newsletters, but not a single blog. The only conversations this company entertains are the ones it starts itself or is subpoenaed into. Conversations it doesn't like, it tries to silence.
The Future of the Social Web is here today and we’re learning that engagement is not a matter of if or when, but to what extent, how and what value can we deliver and derive from it. The Social Web is much more than a window into information and interaction, it is a completely transformative medium that is changing how we forge relationships, interact with one another, and distribute and discover information. In many ways, the online social revolution is reminiscent of the Industrial Revolution. Access to free and expansive media platforms and distribution channels has democratized influence and shifted the power of authority from those who previously controlled the media to those who disseminate it.
A growing number of big marketers have circumvented the middleman and launched their own mainstream media and entertainment properties. The revolutionary development has moved them into direct competition for audiences with traditional media companies. But are these projects just novel anomalies, as some suggest, or a powerful trend that will ultimately reshape the media business? Ad Age editor Jonah Bloom addresses the issue in his talk at the ANA annual conference in Phoenix.
A recent study revealed 20 percent of tweets published are actually invitations for product information, answers or responses from peers or directly by brand representatives. Now we learn that Twitter users are actively paying attention to brands on the popular information network. According to research conducted by Performics and ROI Research, about half of Twitter users who were introduced to a brand on Twitter were compelled to search for additional information.
Have digital and social media leveled the marketing playing field so much that scale is losing its power?That this prospect has big marketers increasingly worried -- and smaller ones pleased -- was clear at the recent Association of National Advertisers conference in Phoenix. But while much evidence points to a leveling effect, plenty also points to scale remaining a powerful and even growing force in marketing.
There aren’t enough hours in the day for all the chores that social media puts in front of us. The best writing I’ve found on how to manage your time in social media is via Amber Naslund’s social media time management series. Her efforts in crafting this should become a little ebook that you hand around to everyone. If you skipped over that link, go back, click it to open a new tab/window, and then read it when you’re done with this (or skip mine and read Amber’s- it’s that good). If you’re still with me, here’s what I want to say on the matter.
Shocked -- again. That's how I felt when I saw in BusinessWeek yet another example of marketing being totally misunderstood. An article titled "At Amazon, Marketing Is for Dummies" said, "Instead of lavish ads and splaying its logo everywhere, it invests in technology and distribution -- and the results are startlingly effective." Last time I checked, product and distribution are two of the essential pillars of marketing. What the article didn't say, but should have, is that Amazon has built its business without much advertising. So? This stands in stark contrast to the dot-bomb when hundreds of companies were created, and CMO became the title du jour. The prevailing "get large or get lost" wisdom drove companies toward publicity stunts, Super Bowl one-offs and multimillion-dollar sweepstakes and away from anything resembling marketing strategy. Brand-building gave way to branding. Marketing became soft, and credibility faded. Here we stand, on the verge of economic recovery, with brands having nowhere to go but up. Marketing should be leading us through growth, but it's not. And we all have a role to play.
Web 2.0 has changed the way companies look at their brand – ceding more and more responsibility to their brand communities - the people who surround the brand. The ubiquity of social media has created awareness of the role customers play in building (or destroying) brands. That awareness of the human impact on branding has rubbed off on the people who build the brand from the inside out.
All the incessant chanting of new media's Greek chorus notwithstanding, 2009 revealed two emergent facts about the promise of social media: first, it's not really "social," and second, "media" is its least important quality. Instead, the opportunities it presents arise from what goes into it, and what comes out of it. Ignoring these inputs and outputs are its downside, too.
With Black Friday approaching, there isn't a CMO around who isn't wondering if consumers are going to be in the mood to spend over the holidays. With a sluggish year almost behind us, many are interested in what will make women--who buy 85% of what is sold in the U.S.--open their wallets.
With Google's Social Search experiment, Bing's integration with Twitter and Yahoo!'s partnership with One Riot, social search clearly has both potential and momentum. But what will social search look like, and will it help us search better? And if it will, how?
“Volkswagen is really down-to-earth.” “Nike is exiting.” These examples show that consumers use personality traits when they communicate about brands among each other. Brand personality is the set of personality traits that consumers associated with a brand. Brand personality is related to human personality theory that explains human behavior and preferences on the basis of personality traits. Personality traits are distinguishing characteristics of a person. They are a readiness to think or act in a similar fashion in response to a variety of different stimuli or situations. So, the traits of a person define behaviour to a large extent and consistent over time: an extravert person will behave in an extravert way, while an introvert person will most of the time behave in an introvert way. The value of human personality is found in the potency of the model to forecast human behavior. If a person is introvert he or she can be expected to behave in this way most of the time. Next, personality steers preference. For example women prefer more than men people who show higher levels of socially desirable traits. Brands, like people, can use the potency of personality.
The wretched economy has forced many consumers to, well, consume less, or at least less avidly than they did before the bubble — or bubbles, if you count Wall Street and real estate — burst. What, then, has that meant for the cause marketers, which depend on the kindness of shoppers to raise funds for nonprofit organizations, associations and assorted other doers of good deeds?
Every brand makes a promise. But in a marketplace in which consumer confidence is low and budgetary vigilance is high, it's not just making a promise that separates one brand from another, but having a defining purpose. This point and its implications were made clear to me at the recent Association of National Advertisers conference in Phoenix where CMOs from some of the smartest organizations explained why purpose-driven branding is essential to success in this "new normal" environment. While it may sound a bit like Philosophy 101, a company whose employees can answer the question, "Why are we here?" will be the company that makes stronger connections with consumers in search of solutions to life's new normal issues.
General business strategy dictates that there are two ways a business responds to a dramatic downturn in consumer spending. They cut costs and/or discount heavily to drive traffic and lure beaten consumers out of their malaise. Both approaches are easy levers to pull because they have a salient short-term impact. The rub lies in not knowing what the long-term impact of these short-term decisions will be. While the long-term implications of cost-cutting is an article in itself, today many retailers find that their most immediate issue is working their way back out of discount-driven brand-price erosion.
Collaborative design methods play a key role in aligning team members towards a shared and strategic project vision. In this article we describe how user stories stimulate and facilitate discussion and decision making with clients in the development of a User Experience Strategy. In our context (the development of online projects) the User Experience Strategy becomes an ‘in principle agreement’ on the shape of the project (what), its purpose (why), and provides potential implementation strategies (how). It takes into account all perspectives (e.g business, technical, marketing, brand) but privileges the intended user experience.
Businesses are made of people, many of them in the middle. While everyone loves to talk to the C-level, the shift in the way people at all levels work, select and recommend service providers, and get things done is more notable in the thick of things, so to speak. Technology has made it even easier for people to connect with peers, collaborate, and get and give direct and indirect (through search) feedback. There's a reason why social media has put a spotlight on being human - brands forgot how to tell stories. Along with a "me, too" characteristic of many B2Bs always in search of benchmarking and way to validate their value props, companies forgot (more likely stopped funding) media integration. This first set of considerations presents some difficulties in the connected world we live in.
Flip, the Cisco-owned maker of pocket-sized camcorders, wants to go mass, and it's hoping its first, multimillion-dollar ad campaign, launched today, will establish it as a lifestyle brand. For a company that has previously eschewed big media buys in favor of grassroots marketing, it's a new strategy. But there's a lot at stake for the player that invented the sub-category of dummy-proof, affordable camcorders priced around or below the $200 range. For starters, it needs to quickly capitalize on the market's growth before it tapers off, thanks in part to competition from video-camera-enabled smartphones.
Successful organizations spend a lot of time saying, "that's not what we do." It's a requirement, because if you do everything, in every way, you're sunk. You got to where you are by standing for something, by approaching markets and situations in a certain way. Sure, Nike could make money in the short run by licensing their name to a line of wines and spirits, but that's not what they do.
You know social media is a powerful tool for business when a grocery store attracts more Twitter followers than pop star Lady Gaga and almost as many as Miley Cyrus, whose departure drove her 2 million fans to make #MileyComeBack a trending topic for more than a day. If Whole Foods Market ever followed suit, its 1.5 million registered fans would surely start a virtual food fight.
In a push to expand its digital advertising empire to cellphones, Google has agreed to acquire AdMob, a fast-growing mobile advertising start-up, for $750 million in stock, the companies said Monday. AdMob is one of the top sellers of banner ads on iPhone applications and Web pages that can be retrieved from mobile phones. The acquisition could help establish Google as an early leader in the small but rapidly expanding mobile phone advertising business.
Narratives are a staple of every culture the world over. They are disappearing in an online blizzard of tiny bytes of information.
Companies approach social in one of two ways: The first way, companies experiment with little order or goals, the second way, companies have clear goals and intend to invest in a deeper relationship.
A group of 1,200 marketing and advertising executives at the 99th annual conference of the Association of National Advertisers in Phoenix are anxious about the economy--but many see opportunity as they look toward 2010. Executives from Walmart ( WMT - news - people ), McDonald's ( MCD - news - people ) and MillerCoors on Friday spoke about how their companies, which sell "value" products, have profited from the recession and changes in their businesses. The takeaway message from these executives: Don't be too distracted by fads and trends--stay focused on customers and the brand basics.
Brands are busily trying to figure out how to build their followings on social networks like Twitter and Facebook. The secret to success may lie in the most old school of marketing techniques: give people a deal. A new consumer study of "digitally connected" consumers commissioned by Razorfish found that 43 percent of those following brands on Twitter do so because of exclusive deals or offers. That tops interesting content (23 percent), current customers (24 percent) and service support (4 percent). Overall, more than 25 percent said they followed a brand on Twitter
A year ago, 1,200 executives in marketing, advertising and the media attended an annual conference that by coincidence took place a month after the financial crisis began. Together, they stared into the abyss, wondering what conditions would be when — or if — they met again. The sky has not fallen, at least so far, and most of those executives are now gathering for the 2009 conference. Many of them are saying, “What a difference a year makes.” Others, however, are wondering, “What difference does a year make?”
Have you seen anything lately that you thought was a creative approach to a consumer business? I'm talking about something that isn't a social networking or mobile business, but instead is an established product or service that is extending its brand in a way that puts competitors on the defensive. While speaking at a recent event, the moderator asked my co-panelists and me if the pendulum had swung too far toward short-term returns rather than long-term marketing and new product development. We collectively agreed that while improving analytics and financial discipline is a good development, marketers are currently shortchanging the creative side of the equation.
Google's Android software will soon be powering Motorola phones, but for the 11-year-old Internet giant, advertising is still king. Google beat analysts' estimates last quarter, thanks to brisk advertising sales. In October the company announced that its third-quarter revenue increased 7% from the same period last year, to $5.94 billion. Net income rose 27% to $1.64 billion. Google accounts for roughly a third of all online ad spending in the U.S.
What's a megatrend, you ask? It's something big. I'm talking really big. Think of a giant unstoppable tsunami of change transforming society as we know it. Think global warming scale -- then apply it to mass human behavior. Think glaciers carving the grand canyon of consumer sentiment. So what are the new megatrends that I believe will transform society in the coming years? What brands are taking advantage of them? And what can you learn from them?
Ritz-Carlton has become a leading brand in luxury lodging by rigorously adhering to its own standards. It is the only service company in America that has won the Malcolm Baldridge National Quality Award twice, and Training Magazine has called it the best company in the nation for employee training. Its unique culture starts with a motto: "We are ladies and gentlemen serving ladies and gentlemen." One of its remarkable policies is to permit every employee to spend up to $2,000 making any single guest satisfied. Ritz-Carlton codifies its expectations regarding service in "The 12 Service Values," "The Credo," "The Three Steps of Service," "The 6th Diamond" and other proprietary statements that are taught to all 38,000 employees throughout 73 properties in 24 countries. Simon Cooper, who has led Ritz-Carlton for the past eight years, talks about what makes Ritz-Carlton, well, the Ritz.
The important question during a downturn is not whether or not the economy will recover -- it will; it always does. What's important to ask is whether your company will be in position to surge as the economy begins to grow. To a large degree, the level of your success will depend on your marketing efforts and capabilities -- what you have done during the downturn and what you put in place now to win business during the recovery. You will need to make strategic decisions about choosing new media, entering new markets, and positioning products.
The recession has battered some of the nation's biggest companies. Even so, top marketing executives believe social media and behavioral targeting technologies will help them boost business as the economy stabilizes and consumer sentiment improves. A cautiously optimistic group of marketing executives from big companies, including Bank of America, Dell, Hewlett-Packard, IBM, Mercedes-Benz USA and Xerox, gathered in Palm Beach, Fla., at the Fifth annual Forbes CMO Summit late last week. There they discussed ways they can rebuild trust and boost sales at their companies as the economy stabilizes.
Businesses that want to create long-term sustainable growth will be increasingly moving towards connected company status. That is the place where being social benefits the business by providing insights, strengthening relationships with partners and customers, and building and connecting a community with common grounds and needs. In many organizations, the listening post resides within the marketing group. As we discussed yesterday here and on Twitter, customer service should co-own the space and collaborate to develop big ears during customer conversations and interactions. In many B2B organizations, the customer support role is much expanded and works hand in hand with operations.
If video killed the radio star, wasn't video supposed to obliterate text? It hasn't. Not even close. Who would have thought that 2009 would witness instead the continued resurgence of the written word? The language was sometimes indeterminable, and the conversations often unrepeatable without a blush added to the shrug, but text has proven amazingly resilient as a communications medium. Words "work" on printed pages and mobile phone screens (i.e. cross-platform), find utility for marketing strategies old and new (you can use them to declare, or to converse), and prove convenient and adaptable for users young and old.
A recession seems like a funny time to move your product mix upscale, but Kimberly-Clark Corp. has been doing just that of late, focusing more on premium and super-premium offerings and brands such as Cottonelle, Viva and Huggies Pure and Natural, while watching distribution of its Scott value brand shrink. It's a bold strategy to zag upscale as most of the market, including archrival Procter & Gamble Co., have been zigging more toward value products and private-label sales have been rising.
If you run a business or are in charge of marketing one, you know that your Web site is often the first interaction a potential customer has with your brand. For many of today's businesses, particularly those in the digital media and technology space, Rich Internet Applications (RIAs) have become the primary point of customer interaction. With online experiences contributing so heavily to how people feel about brands, an effective union of user experience design and brand strategy has become critical to sustaining business success.
In a Times Square studio last Thursday, actor Ed Norton was interviewed as part of a Diet Coke promotion. The interview was beamed live to billboards in Times Square, as well as on the Diet Coke Web site and banner placements sprinkled on sites like E! Online, Cosmopolitan and Hello. Diet Coke is not the only brand going live to garner attention. Marketers including Burger King and Adidas are warming up to real-time Web content, mirroring a shift in digital media away from asynchronous communication and content delivery (e.g., the sending of e-mails and watching posted videos) towards instant feedback and interaction. Upping the ante for these marketers are real-time systems like Twitter and Facebook, which mix content delivery with communication, making something hours' old seem stale.
Procter & Gamble Co.'s new chief is ready to deal. Facing mounting pressure to boost sliding sales and recalibrate his company, P&G CEO Robert McDonald is stepping up the hunt for acquisition and divestiture candidates, people close to the company said. Since assuming the chief executive role in July, Mr. McDonald has been trying to shake-up P&G's slow, process-heavy culture. He has increased scrutiny of P&G brands including Braun small appliances, Iams pet food, Duracell batteries and Pringles potato snacks. While those businesses have long been considered extraneous to P&G's focus on beauty, health and nonfood household staples, Mr. McDonald now is presenting an ultimatum: The leaders of those businesses are on heightened notice to prove their brands' prospects or face a sale.
Private label is at something of a crossroads. Rising out of the shadows of its humble, “no-name” generic past, private label today has blossomed into a $100 billion industry. While the media and analysts are fixated on sales numbers and growth expectations another story frequently gets little air play: Private label has the freedom (and not the baggage) to seize opportunities to leapfrog name brands in such critical areas as ingredients, flavors, preparations and even packaging. Looking through the lens of contemporary consumers and shoppers, we see that the rapidly changing private label landscape is far too complicated to be adequately explained by aggregate sales or customer transaction sales data alone. Our Private Label 2010: Redefining Meaning of Brand report moves beyond simplified discussions of sales data to present a holistic consumer and shopper perspective on private label that accounts for the role of the economy, new meaning of value, distinctions in retail formats, product categories, name brands and, of course, private label brands.
As my original career was in biology, when I started working with stories I naturally wanted to consider the natural history of stories, including their life cycles. Now this is a much more difficult thing with stories than with tadpoles or mushrooms, because stories mingle and morph in ways that creatures can't. But here is try at it, based on my experiences and what I've read. I've been pondering this cycle for a long time and playing with it in mind, and this is what I've got to lately. Of course this cycle will be nothing new to anyone who thinks about stories, and it's obviously a greatly simplified metaphor, and I'm merrily making up terms as I go. But this sort of thing can provide a scaffold for discussions about helping people tell and share stories to attain goals.
The right conversation strategy answers two big questions: What meaningful content will attract sufficient conversations with the right people? And, how will you jump-start conversations and keep them alive? When people are starved for time and already engaged in many conversations, jump-starting new and meaningful conversations is the big challenge of marketing today. Just building a website, writing a blog or posting videos on YouTube doesn't mean sufficient numbers to impact ROI will find them organically, much less take the time and energy to converse with you. By definition a conversation requires others to be present and participate -- otherwise you're talking to yourself. Perhaps therapeutic, but no way to make a living.
Open source, open access, open standards, open architecture — all are part of why so many have fallen in love with Facebook, Firefox, WordPress, and — I’ll say it because everyone else is saying it — Twitter. They’re all flexible platforms, invite user opinions, and enable co-development and co-creation to varying degrees. The “open web” and its underlying set of technologies have indeed made a big impact on how we interact and engage with online properties, sites, social networks, and the like.
Since its invention towards the end of the 20th century, the Internet has changed a great many things. And one of the things that is has done time after time is dismantle business models that had seemed, until its arrival, absolutely rock solid. From music to publishing to TV, the Internet has swept away seeming certainties and replaced them with doubt and uncertainty. Whilst this fact can not be argued with, the common perception that the reason these media models have been so badly damaged is due to the rise of UGC is, like so many ‘commonly held facts’, actually untrue.
They're off! Although trick-or-treaters are still days away from ringing doorbells, the nation’s retailers are already starting their mad dash toward the Christmas finish line. The efforts to stimulate holiday feelings ahead of schedule are, of course, a result of the dire economy, as retailers remain anxious about the parsimonious mood among shoppers. The National Retail Federation predicts that Christmas sales will decline 1 percent from Christmas 2008 — not as bad as last year, when retail holiday revenue fell 3.4 percent from 2007, but still not in positive territory.
Around the world, four billion people live in poverty. And Western companies are struggling to turn them into customers. For the past decade, business visionaries have argued that these people, dubbed the Base of the Pyramid, make up an enormous, untapped market. Some of the world's biggest, savviest corporations have aimed to address their basic needs—by selling them everything from clean water to electricity. But, time and again, the initiatives have quietly fizzled out. Why? Because these companies were looking at it all wrong.
With Apple posting record profits last week, thanks in large part to brisk sales of its iPhone, it may seem downright crazy to mount a smartphone challenge at all, let alone one that takes direct aim at the iPhone. But that's just what Verizon, Google and Motorola are doing. With a teaser ad from Verizon zeroing in on the device's perceived shortcomings, such as its lack of a physical keyboard, the triumvirate is beginning a big push for Droid, the flagship device of the Google-backed Android operating system. So far, industry observers are unmoved by the buzz and give the Droid long odds in its bid to become the next ubiquitous handset.
Moms and college students have long been critical targets for brands -- moms for their hefty control of household spending and college students for the important transitional life stage they are in, which shapes their brand preferences for years to come. Most Millennials, born between 1977 and 1996, are well within their baby-rearing years. These new parents have been raised on the Internet, email, SMS and IM and quickly adopted social networking in their teens or early 20s. What may have seemed like two polar opposites a decade ago now bear considerable resemblance as a result of changes in communications spawned by technology.
Microsoft Corporation regularly asks PC users for feedback about its products. But after the debacle with Vista, the operating system nobody liked, the company and its advertising agency, Crispin Porter & Bogusky, realized that the concept of consumers as an intrinsic part of the development process could be an effective selling point for the Vista replacement, Windows 7. And so was born a campaign, getting under way on Thursday in six countries, carrying the theme “I’m a PC and Windows 7 was my idea.”
Can social media sell cars? Ford Motors seems to think so. Fresh off the Ford Fiesta Movement, the American car maker is announcing another social media initiative designed to once again combine the passionate voices of happy Ford owners with the distribution opportunities made available through social media channels. Fusion 41, part of the Ford Drive One campaign, is a brand new challenge and campaign seeking 8 passionate 2010 Ford Fusion or Fusion Hybrid owners with an active social media presence.
A few weeks ago, I had lunch with a friend prior to an evening speech. After some small talk about life, the universe and everything, our conversation naturally turned to the abysmal U.S. economy. “Things are really tough right now,” she explained. “I’ve tried to get everyone to understand the importance of branding in this very difficult environment, but I don’t think they get it. In fact,” she added. “Our customers hate that word.” “What word?” I asked. “Brand?” “Yea. The non-profits we work with have a real aversion to the whole notion of branding. I guess they don’t really understand the concept and how it applies to them.” They’re not the only ones.
We believe marketing communications are already being forced to become increasingly agile, particularly for more youth-oriented brands. In such a fast-paced and dynamic media environment, relevance is increasingly determined in the moment. Recency matters. Audience and attention are fleeting. Fame spikes -- even for the famous. For brands to achieve and maintain fame in this context, communications for certain types of them must make a dramatic shift from highly polished epic launches to a continuous and diverse stream of messaging and content designed to ride hyper-current cultural trends, consumer attitudes and competitive maneuvering. The performance of this diverse activity is continuously monitored and optimized like a portfolio of stocks -- kill the under-performers and reinvest in the ones showing returns. However, this "continuous beta" mentality is a big leap from 18-month planning cycles and dogmatic, rigid testing protocols, despite its more real-time and real-world feedback.
Social media advertising has stumbled in its current form, and needs new choreography. That’s the blunt message that media consultancy Media Link has for MySpace. Media Link has been advising MySpace since August, following a major executive shakeup at the troubled News Corp. unit. That message might as well be aimed at the entire social media landscape, which generates a disproportionate amount of ad impressions but commands such low prices that some in the industry even speculate it could hinder an expected online advertising recovery.
The imminent publication of Forrester’s new report on the challenges facing clients - “Adaptive Brand Marketing: Rethinking Your Approach to Branding in the Digital Age” is a welcome turning of the spotlight toward client organizations. Without question agencies of all sizes, shapes and persuasions need to get their collective acts together and transform into leaner, more agile, more creative, & more technology- and data-fuelled businesses. The best in the business are no doubt all plotting how they can come out of this recession leaner, meaner, quicker, better. But that’s kind of pointless unless clients adapt too.
How many design icons were developed based on consumers' stated needs? We've researched this question, and think we've found the answer: none. Celebrated examples such as the iPod, Walkman, Dyson Cyclone, Formway Lifechair and Fisher and Paykel Dishdrawer all have one thing in common-a strong team of designers who ignored focus groups and ended up shaping markets to their advantage. Although it's tempting to attribute this success to lone genius, analysis reveals that these products are underpinned by design-led cultures.
Nearly every brand exercise doubling as content has come across as just that: overproduced shtick that has no compelling reason to exist independent of the beflogged marketer. You can stick however many aching-for-work actors you want in an IKEA or in front of a Dell computer, but unless you give them something interesting to do, viewers will check out the first few minutes of the first episode before dismissing it and moving on to a content-first play -- say, Marvel's dark, extravagant Motion Comics.
The attention dashboard is rapidly emerging as the online hub for sharing and discovering information, connecting us to people, content, and events in real-time. According to research, we’re already spending more time in social networks than we are in email. New studies are only fortifying these findings, documenting an increase time spent specifically in Social Media and blogs. In fact, the Nielsen Company reports reports that time spent on social networks and blogs accounted for 17 percent of total time spent on the Internet in August 2009. Most notably, but not surprising, however, is that this discovery represents nearly triple the percentage of time spent using Social Media just one year ago.
How Sean Maloney and brand guru Deborah Conrad are helping Intel's first carpet-dweller CEO reengineer the company once known as Chipzilla -- and free the bong.
Image is everything to luxury fashion companies. Preserving prestige is what sets brands such as Gucci and Hermes apart from Gap and H&M. But that same elitism is keeping certain luxury brands from engaging in social media, one of the most powerful forms of marketing at the moment. Luxury fashion companies are known for setting trends when it comes to their products, but their media preferences are surprisingly dated. Most prefer to simply buy ad space in publications where they can present--and control--their image in glossy two-page spreads. While traditional media will remain an important advertising vehicle for high-end fashion companies, social media needs to be part of the marketing mix too.
It's an increasingly common dilemma for CMOs with brands in the middle or top end of the market. Should you tackle the threat head-on and reduce existing prices on your premium brand, knowing it will reduce profits and potentially damage brand equity? Or should you maintain prices, hope for better times to return, and in the meantime lose sales from customers and support from your CEO? With both of these alternatives often proving equally unpalatable, many marketers have decided on a third option: launching a fighter brand.
I happen to think that the folks who were in charge of the Olympics branding strategy in Rio de Janeiro did a phenomenal job of differentiating Rio's promise from the other cities in contention, and then clearly establishing its relevance to the IOC. In other words, the "Brand Rio" team followed a couple of the basic rules of smart brand management and came out the category leader as a result. There is almost no brand category that isn't awash in choices. Whether cars or cosmetics, beverages or baby carriages, there is a lot of stuff out there and most of it is pretty similar. The competition for consumer attention is fierce and it can't be won on table stakes. The only way a decent brand can ever hope of becoming the chosen brand is to make a promise that's completely different from any its competitors' and ensure that this difference is meaningful to its target audience. In an ever-expanding global marketplace, this is getting harder and harder to do.
Managing a brand has always been a slightly odd concept, given that consumers are the real arbiters of brand meaning, and it's become increasingly outmoded in today's two-way world. That's why a new report is going to recommend changing the name "brand manager" to "brand advocate," and fundamentally changing marketer organizations in response to the onset of the digital age. The report, due out next week from Forrester, finally puts the onus on marketers to change their structures -- a welcome conclusion for media owners and agencies who keep hearing how they should change, but often complain that their clients have done little to shift their organizations to cope with an increasingly complex world of media fragmentation and rising retailer and consumer power.
Whenever I see a business magazine glow about design thinking, as BusinessWeek has done recently with this special report, and which Harvard Business Review did last year it gets my dander up. Not because I don't see the value of design (I started a company dedicated to experience design), but because the discussion in such articles is inevitably so fetishistic, and sadly limited. Design thinking is trotted out as a salve for businesses who need help with innovation. The idea is that the left-brained, MBA-trained, spreadsheet-driven crowd has squeezed all the value they can out of their methods. To fix things, all you need to do is apply some right-brained turtleneck-wearing "creatives," "ideating" tons of concepts and creating new opportunities for value out of whole cloth.
For all the focus on marketing ROI, some companies miss the forest for the trees, because improvements won't happen through tactics alone. They need a new approach, applying marketing analytics to business decisions -- call it return on brand -- that can more than double marketing ROI through a cross-functional implementation of integrated business analytics. Many companies use accountability programs to measure and optimize marketing and media investments; their valuable insights can dramatically increase revenue and profits if implemented correctly. They often fall short, however, in their ability to act on this information and realize true marketing accountability ROI.
Branding Is Dead! Long Live Brands?! Many pundits have declared the death of branding and it would be difficult to argue to continue typical branding activities. Creating an image to serve as the “face” of a company, refreshing a logo or tagline in an attempt to reinvigorate the business, developing advertising campaigns to “get our name out there” – the business value of these efforts can indeed be questioned. Today’s savvy consumers are likely to see through a brand façade. They can easily find out if the business practices, products, and people behind a brand are what their ads say they are. And they’re more likely to trust their own experience or the recommendation of a friend or even an online reviewer than a company’s own chest-thumping. In fact, one could argue that the historical role which brands played – that is, serving as symbols to guarantee a certain of level of quality – is no longer relevant or useful today. But that is not to say that brands themselves are no longer valuable.
History is littered with good ideas that didn’t work out because they were ahead of their time. Tablet PCs didn’t work out a decade ago, but with technology advances, they’re poised to make a comeback. Microsoft’s local information web site Sidewalk.com was a bust in 1997, but now sites like Yelp and Google Maps offer local information that many people couldn’t fathom living without. This week we saw the release of the highly anticipated Google Wave. It’s been touted as both an email killer and a Facebook killer. In short, there’s a lot of hype, and while Wave may prove to be a huge success, I think one thing it potentially represents is a great opportunity for Facebook.
It’s hard to overstate the degree to which habits of thrift and frugality have taken on the cast of virtue in the past year. There are different ways any given person can find to express these admirable traits, at least to him- or herself. For instance, you might decide not to buy a pair of designer shoes. Alternately, you might decide to buy a pair of designer shoes that has been marked down 50 percent. Abstaining can make you feel thrifty, frugal and (these days) admirable. Buying a bargain can make you feel all that, too. Plus you get new shoes.
Leo Laporte, creator of This Week in Tech and the TWiT network of podcasts, spoke before the Online News Association this week and presented the very model of the new media company: small, highly targeted, serving a highly engaged public, and profitable.
Having just returned from vacation, (hence the break from blogging) I had the distinct pleasure of keynoting Silicon Valley AMA last night at Cisco’s Telepresence suites in Santa Clara. In my opening keynote, I had a specific message to marketing leaders in the valley to think holistic about social. I outlined some of the major impacts to other departments beyond marketing.
I’ve been doing research on some companies and have spent quite a bit of time looking at companies’ corporate reports – e.g., annual reports, official statements, corporate presentations, etc. I’m amazed at how many companies completely overlook these reports as touchpoints through which people experience their brands. Often the reports are dry and pedantic or fluffy and full of corporate-speak – they don’t communicate or reflect what is differentiating or compelling about their brands. What’s ironic is these reports are becoming increasingly important brand touchpoints.
I was watching Stephanopoulos yesterday morning and I saw this IBM ad. And I thought, "hey, I've seen that guy somewhere before." And sure enough, he's in a Castrol Motor Oil ad. I think it's the same guy, right down to the wrinkles in his forehead. Does this matter? Maybe what happens in an ad for Castrol Oil stays in an ad for Castrol Oil. Or do actors have "transmedia" properties? Do they carry anything with them between ads? Here's what the "meaning transfer" theory says.
This might be the most subtle yet important shift that marketers face as they deal with the reality of new media. Marketers aren't renters, now they own.
Every day, legions of new web sites appear, each competing for eyeballs and dollars. This presents an acute problem for companies. As consumers are presented with a vast array of online campaigns vying for their attention, businesses are grappling with the best way to target and engage them. Many are increasingly adopting an aggressive web-based strategy around sub-branding. So that rather than plaster the internet with, say, glossy blue-and-white logos, Ford, the motor company, is creating online communities for each of its vehicle lines.
While Americans have spent the summer seeking new remedies for their financial ailments, attending noisy town-hall meetings on health-care reform and trying to find something to occupy their time besides the travails of Jon and Kate, it was pleasing to read that these issues have not had a completely negative effect on what the rest of the planet thinks of us. This was made known in a recent New York Times op-ed in which the author noted that, over the last several months, the United States' brand has been seen more positively in the eyes of the world. This bit of news was reassuring to me and got me thinking about how the very idea of "good brand, bad brand" has taken on new meaning in this age of renewed thriftiness, environmental consciousness, corporate responsibility (or, flagrant lack thereof) and, most of all, consumer vigilantism arising from our all-digital-all-the-time marketplace.
Marketers caught on early that emotion sells product. "Would your husband marry you again?" screams a Palmolive ad from 1921. (Not unless you scrub with Palmolive soap, honey.) Today, Heineken has promised warmer international relations via handoffs of Premium Light from mountain men to Indians to ballerinas. And, of course, Axe has sold young men on the fantasy of hooking up with deodorant-loving nymphomaniacs. Emotional appeals are ubiquitous. They're also interchangeable. It would be just as easy to pitch Heineken as an aphrodisiac and Axe as a global harmonizer ("Peace starts in the pits"). And that's the problem: It's all stick-on emotion. Sometimes that works brilliantly (see: Corona). Other times, it's as weird and clumsy as an adhesive moustache -- remember Carl's Jr. and Paris Hilton's sexed-up hamburger ad? Fortunately, there's a better and more sustainable way to create emotion: Mean it.
F. Scott Fitzgerald wrote in The Great Gatsby that personality is forged by an "unbroken string of successful small gestures." And as with people, so with brands. Brand personality takes root in the soil of its own heritage and history. Some brands have to make up a past. Others have ancestry galore to utilize if the brand's stewards can strike the right tone without relying too much on nostalgia. I call this brand mythos -- the archetypal true back-story, the legend of itself told to itself and its fans.
Companies as diverse as McDonald's, Ford, and American Express are revamping their marketing to win back that most valuable of corporate assets.
For corporate communications specialists and reputation managers in the post financial crisis universe, the combined elements of distrust for authority and demand for transparency converge on the internet, specifically in the realm of social media. Hardly a day goes by without a breathless email announcing yet another conference, video, webinar or book providing the definitive answer to the mysteries of bending social media to one’s will. However, the relentless hype that has accompanied its growth may exaggerate or misconstrue its impact. Professionals would do well to take a deep breath and begin to think about how to build a detailed business strategy that includes but does not necessarily focus on social media so as to create sustainable value.
While the concept of personal branding has taken off corporate branding seems to go in and out of favor. Economic cycles may have a lot to do with that. With the growth of the Internet and social technology tools, personal branding activity and opportunities have exploded. On the other hand, in some ways, the arc of Web 1.0 to 2.0+ (not to mention this current economy) has seduced many marketers into being focused on tactics at the expense of strategy including branding. Hot media tactics often substitute for the "strategy." If you are skeptical that brands still matter in the age of 1-1, millennials and social media, or if you are trying to run a business and make numbers and don't have the patience for brand consultant-speak or theories, here is a quick, simple refresher on good old fashioned branding that works today, that can help you frame your marketing and other operational tactics...to drive business results.
Every so often the vocabulary of business adopts new words that filter into the mainstream business psyche. For example, the language of brands and branding is now commonly used and understood across a range of sectors— from universities to social enterprises to small businesses. Over the past year or two, the new vocabulary has brought in “sustainability,” whether it is to talk about the environment or general business operations, about communities or the future. Google the term and you’ll see that “sustainability” has 28 million definitions—only a few million short of the 34 million entries for “branding." Words that become common business parlance can shift in meaning and, in doing so, become open to a multitude of interpretations.
Crises are particle accelerators for brands that reveal their fragility, as we've recently witnessed with bankrupt banks, tampered-with pizzas, poisoned pistachios, dodgy cookie dough and lethal drugs. While there are impressive tomes on crisis management, we still are littered with embarrassing reminders of the recurring gap between preparation and accomplishment. It's time to stop repeating the same mistakes when it comes to crisis management. It's also time to recognize the CMO's role in negotiating crises. As social media has enabled consumers to more actively participate in brands, the CMO arguably now has an even greater role to play in activating customer support or other mechanisms necessary at a time of crisis. That's because CMOs are more in tune with consumers; they are using social-media tools to interact with them, and they can harness those tools in a time of crisis, turning those most loyal consumers into brand ambassadors.
Students starting school this year may be part of the last generation for which "going to college" means packing up, getting a dorm room and listening to tenured professors. Undergraduate education is on the verge of a radical reordering. Colleges, like newspapers, will be torn apart by new ways of sharing information enabled by the Internet. The business model that sustained private U.S. colleges cannot survive.
Given that innovation is the only sustainable advantage these days, advertisers need to allocate at least 10% of their marketing budget to foster it, even in these economically challenged times, said former eBay and Best Buy CMO Mike Linton, who spoke to an audience at the Aberdeen Group's Chief Marketing Officer Summit here yesterday. Innovation, by Mr. Linton's definition, is any action taken by the brand that changes consumer behavior in favor of the company, and that can range from a new product to a new way to service customers.
Customer support is tactical, a cost-center, and the clean-up-kids at the company. Well, that’s the mentality that needs to change. Instead, customer support can be strategic, a value center, and proactive towards customer needs. The lines between marketing and support continue to blur, as customers share their experiences (most recently, Dooce vs her Whirlpool washing machine) the support experience she has becomes a PR task. Support organizations must quickly evolve as customers connect to each other –and share their stories –using social technologies.
"The paradigm of competition is a race: by rewarding the winner, we encourage everyone to run faster. When capitalism really works this way, it does a good job; but its defenders are wrong in assuming it always works this way." - Richard Stallman A paradigm is nothing more than a set of assumptions, values, and practices that constitute a way of viewing reality. For example, if you view business as a competitive endeavor, then you place yourself, metaphorically, on the same track as the "other guy." You think about beating the other guy. You value beating the other guy. You put practices in place to beat the other guy. Unfortunately, customers could care less about you and the other guy. Customers care about themselves. Today's paradigm shifting is about new, out-of-the-box consumer experiences.
Google has an image problem – not a PR problem (that is, not with the public) but a press problem (with whining old media people). Google is trying hard – too hard, perhaps – not to argue with the guys who still buy ink by the barrel. Google is only causing them to buy fewer barrels. And newspaper people will use their last drops of ink to complain about Google’s success and try to blame it for their own failures rather than changing their own businesses. What should Google do? I think it needs to become news’ best friend.
Anthropological dreams are made of this: helping Disney and Marvel manage their rapprochement. Nothing short of heroic effort will do. Disney is, after all, a pretty good marker for all that is mainstream about American culture. Marvel is, by deliberate contrast, darker and less predictable. One corporation turns in towards the gravitational center of our culture. The other prefers to plot a course for the margin, for the uncharted, for the unknown. I mean, this can't be a match made in heaven. It's going to be tricky, complicated and, possibly, agonizing. Right?
Failure to recognise the value of building a brand internally will cost a company its competitive advantage. Failure to implement internal branding should cost the CEO his or her job. Sustainable competitive advantage can only be achieved by the consistent meeting of customer expectations. In simple terms, this means that the brand has to keep its promise. While the more glamorous application of external brand-building — through campaigns in a variety of visible media and communication channels — is necessary for connecting with customers and other stakeholders, it should follow the brand platform established internally, and not lead it.
Here's a test. Ask five to 20 of your employees to explain what your company's customer value proposition is. How many different answers do you guess you'll get? Answer: somewhere between five and 20. This is, of course, in addition to the response, "What the heck do you mean by a value proposition?" This is slightly exaggerated to illustrate a point. But, in the many years with which we have advised on and written about customer-driven strategies, there has been a common pattern: massive inconsistency in people's ability to clearly articulate their company's value proposition.
In reality a product is all about the experience. It is about discovery, purchase, anticipation, opening the package, the very first usage. It is also about continued usage, learning, the need for assistance, updating, maintenance, supplies, and eventual renewal in the form of disposal or exchange. Most companies treat every stage as a different process, done by a different division of the company: R&D, manufacturing, packaging, sales, and then as a necessary afterthought, service. As a result there is seldom any coherence. Instead, there are contradictions. If you think of the product as a service, then the separate parts make no sense - the point of a product is to offer great experiences to its owner, which means that it offers a service. And that experience, that service, comprises the totality of its parts: The whole is indeed made up of all of the parts. The real value of a product consists of far more than the product’s components.
As the global economy emerges from recession, regardless of when or how quickly, the focus in the executive suite is already shifting from cost cutting to recovering top-line growth. What role can the CMO play? If CMOs are truly to be growth champions for their corporations, they can't simply rely on traditional marketing and brand-building techniques. In nearly a decade of research, my colleagues and I have found that established companies increasingly are successfully building new businesses on a repeated basis, a process we call corporate entrepreneurship. Marketing -- true marketing, not just selling the story but helping create it -- must play a central role. True marketing is about understanding current and potential customers better than anyone else, translating those insights into powerful new offerings and experiences, and creating ever more effective and efficient paths to market. In other words, marketers must design new businesses, rather than just launch new products.
This concept of going from macro to micro must be the most significant development brought by the social Web. While in the past, the official position of a company was the *only* public position a company would have, today, a company's public face is a composition. In fact, if it's done its job well, an organization could have a myriad voices, all different, yet all on the same cultural page.
I hear versions of the same conversations almost weekly. While they're not necessarily new conversations, the tenor of them has grown considerably tenser as a result of the struggling global economy. The conversations run something like this: The chief financial officer says: "Before I spend any money in this environment, I need to know the impact of this investment. I need to see an ROI." The CMO responds with: "It's not about ROI; it's about creating awareness. Having people understand our brand will create engagement, which will lead to revenue."
Every 90 days, I report to Wall Street and our shareholders on the financial health of our company--called to the carpet when results are bad, receiving a pat on the back (if memory serves) when numbers are good. Many years ago, we put corporate social responsibility on the agenda for these quarterly financial calls, because as a critical component of our effort to be a responsible business--fiscally and socially--it felt not only appropriate, but necessary. Guess how many times I've been called to the carpet by shareholders for not delivering satisfactory CSR results, or how often we've received a comment or question about our CSR programs on these quarterly calls? Never. The silence isn't an indication that we've perfected corporate responsibility--far from it--it's an indication that shareholders don't find CSR performance relevant.
Are you more loyal to brands than you were 10 years ago? Are there any businesses that provide such a great product or service that you would never price-shop, and you'll declare your brand loyalty across your social networks? My guess is that you and your customers are much less loyal than you were in the '90s.
In 2001, Jonathan Kaplan and Ariel Braunstein noticed a quirk in the camera market. All the growth was in expensive digital cameras, but the best-selling units by far were still cheap, disposable film models. That year, a whopping 181 million disposables were sold in the US, compared with around 7 million digital cameras. Spotting an opportunity, Kaplan and Braunstein formed a company called Pure Digital Technologies and set out to see if they could mix the rich chocolate of digital imaging with the mass-market peanut butter of throwaway point-and-shoots. They called their brainchild the Single Use Digital Camera and cobranded it with retailers, mostly pharmacies like CVS.
Street fashion designer Rick Klotz has announced that he's going to forsake any brand logos or names on his Freshjive products next year. Is it an anti-branding move, or something more? I say something more.
Last month I shared what search taught me about running a business. Today, I'd like to list 10 lessons Google taught me -- and the rest of the world, for that matter -- about marketing.
There is a vital lesson buried in the August 19, 2009 Jet Blue announcement that they were suspending sales of the $599.00 "All You Can Jet" promotion they'd debuted only seven days before. Any student of Behavioral Economics could have predicted that an "all you can eat" approach would inspire vastly different behavior than if Jet Blue had charged a lower fixed fee plus $1 per mile. Similarly, over a decade ago when AOL switched to a usage-independent flat price, connection time increased four times more than they anticipated. "All you can eat" is an entirely different price than "very, very cheap."
When consumers make purchase decisions, they're spending anywhere from 10 to 20 seconds - according to surveys and research conducted by consumer behavior experts. Studies show that consumers ignore up to two-thirds of category products when they shop. That kind of statistic points to just how difficult it is to successfully package products. And clearly demonstrates why so many products fail at retail.
Most companies have turned from feeling paralyzed by the economic shocks of 2008 to plotting response strategies appropriate for today's tough markets. One thing companies need to carefully consider is how to confront the new reality of increasingly value-conscious customers.
I am an early adopter of social media and set up my listening post 5 years ago to scan for people, trends, and ideas related to social media and nonprofits. Listening and engaging with people has been critical to any success I’ve achieved as a social media practitioner – whether I’m blogging or fundraising for Cambodian children. For the past five years, I’ve been teaching social media workshops for nonprofits and lately doing deeper dives on the techniques of listening both for nonprofits and in my role as Visiting Scholar in Residence at the Packard Foundation. This is a four-part series about listening for nonprofit organizations summarizes the insights I’ve learned about listening.
Repeat after me: "Your customer doesn't have the answers!" I thought we put this to rest fifteen years ago, but apparently there are a number of companies still trying to create innovative consumer experiences by asking people what they want. Consumers want what their neighbors have. They have no idea what's next--they consume!
“If I am I because you are you. And you are you because I am I. Then I am not I and you are not you.” ⎯ Unknown Rabbi. It may sound like double-talk, but the wise Rabbi’s message is a profoundly important one for those trying to navigate today’s complex and rapidly evolving marketplace. And it’s this: We are not separate. We define each other. We are fronts and backs of each other⎯producer/consumers; government/citizens; manufacturer/suppliers; consultant/clients; management/talent; and, especially, brand/customers. In fact, a brand only knows what it is in terms of its customers. Unfortunately, we tell ourselves a very different story.
According to market research firm Hartman Group, consumer loyalty is shifting -- from products and brands, to the experiences offered by retailers -- in a radical transformation that started before the recession. I think the change is much bigger than that. Hartman is onto something because it specializes in enthnographic market research (among other tools), which is an attempt to understand consumers in the context of their lives, both in terms of their knowledge and beliefs, and through their behaviors. I believe the firm is saying that capturing consumers' attention with creative and/or compelling marketing communications no longer carries the water in our busy, confused, noisy lives; experiences are what stick, bring differences into sharp focus, and compel purchases.
An old yet dominant definition of branding is emotion-driven storytelling in which the brand works to attract and guide us by projecting a desired lifestyle. An established yet fringe definition of branding is storytelling inspired by the tangible qualities of the objects or systems the brand supports. This later definition and approach to branding reverses out of transcendent, emotion-based brand experiences and gives more responsibility to the customer's intelligence to create the experience and meaning. What would our branded world look like if this approach was widely adopted?
Just about every company has a Web site. But today, many marketers are going further. They are transforming their digital presence into powerful media channels, direct to consumers. The practice is prevalent enough that, as the research firm Outsell Inc. reported in July 2008, about 62 percent of marketers’ online advertising and marketing budgets are spent on their own digital media, up from 58 percent in 2007. These marketers recognize that with the right mix of content, utility, community, and product, they can create compelling premium experiences for consumers. And they see that these efforts deliver powerful benefits in branding, relationship building, and lead generation.
One of the best parts of vacationing in a small town is visiting the local video store, where the proprietor--a scruffy guy who loves everything related to movies--will recommend films that he thinks you'll love. There's no scientific algorithm to his suggestions, no data analysis or statistical assessment. The owner makes his recommendations based on bits and pieces of casual conversation with customers. I was thinking about that video store as I read about the contest hosted by Netflix, which offered a $1 million prize to anyone who could significantly improve its recommendation system and ended in July. While digital technology has made our lives more convenient in many ways, especially in the way it helps people make buying decisions, smart companies realize that there are some things even the most sophisticated digital applications can't do. Above all, they can't replace the personal touch that often helps consumers distinguish one brand from another.
We all know what our customers want. We’re confident that we understand the problem. We look at reams of marketing reports. We conduct the focus groups. We survey them. We have plenty of data. Guess what? It’s not enough. Data can only indicate facts.
Are you building a business? Or are you building a brand? Silly questions, you might be thinking. Naturally, you are trying to do both. But that might be a mistake. What's good for the business is not necessarily good for the brand. And vice versa.
New media creates a blizzard of tactical opportunities for marketers, and many of them cost nothing but time, which means you don't need as much approval and support to launch them. As a result, marketers are like kids at Rita's candy shoppe, gazing at all the pretty opportunities.
I got a recommendation from someone to read Martin Lindstrom's book, "Buyology: Truth and Lies About Why We Buy." It describes the new neuromarketing sciences exploring how the brain's physical reaction to our thoughts, sensory stimulation or even rituals can evoke brand loyalty or apathy. According to Lindstrom, this new understanding of the biology behind our unconscious mind's ability to make "decisions" faster than our conscious mind represents a "historic meeting between science and marketing. A union of apparent opposites."
We live in a conversation driven world. Even if your brand is not an active user of social media, your customers and potential customers are. This is revolutionizing the way brands have to think about themselves and how they choose to compete. In a conversation driven world, the real threat is not conversation itself, but commoditization. Unless customers have reason to talk, they won't. And a brand that generates little or no conversation will be killed by one that does.
Consider for a moment that the humble Amazon product review can nullify millions of dollars of ad spend, that a search for "best razor" on Google can route around all of Gillette's best efforts to communicate the "best a man can get," and that a "hate Comcast" group on Facebook has the power to drive a consumer straight into the arms of DirectTV.
Remember how crazy, desperate United and Delta got when JetBlue started making cheap flights cool? With those nutty flight attendants' ad libs, TV in the seats and interesting snacks? They thought they couldn't compete with that tonality, so they created two new sub-brands; Song even got Kate Spade to design the uniforms. Starbuck's 15th Avenue may be the Starbucks' version of TED and Song.
Marketing researchers of note, Forrester Research and McKinsey & Company, recently conducted studies on the nature of consumerism today. Their results are important because they point to a shift away from the classic “consumer purchasing funnel.”
After months in development, the new product is ready for worldwide launch. The product manager tells the creative team to use a picture of a globe. "But our brand is about what we do for people. Our brand guidelines specify images of humanity," the designer pleads. "I don't care. Use the globe," the product manager demands. Unfortunately, there's always the need to balance business objectives with branding goals. Says the VP of Global Branding for a major commercial information data base company, "It's not that product managers ignore branding. They don't understand how to leverage it."
A popular blogger can create as much impact as a 30-second spot. Should personal influence be the next CPM? Marketers seem to have realized only recently that people can be brands. Madonna constantly reinvents herself. Martha Stewart is now a redeemed domestic diva. But personal branding has been around for as long as mass media. In the heyday of the silver screen, studios managed their stars like brands in a portfolio. They carefully positioned, packaged and presented each one. Stars could launch a look or a way of walking and could influence millions of consumers.
Successful businesses are always making choices and sacrifices, strategically looking as to how they are going to prioritize their resources, including human capital, budgets, and, of course, time. As the world around them adapts, so too do they need to make changes internally to respond, or to predict where trends are going – and if they guess right, the business could catapult ahead of less-agile competition.
Marketers are finally beginning to understand that, like any intimate relationship, a dialogue works better than "talking at" someone. When a marketer has a deep understanding of people's habits and needs, it's a pretty intimate thing. Who else knows about the double fudge ice cream buried in the grocery cart under the reduced calorie, low-fat frozen dinners?
To really incite the full range of customer reaction to a brand -- and by full range, I mean everything from bitter rage at the low end to fantastic appreciation at the high end -- traditional advertising is not the way to do it. In these postmodern times, where every interaction with the customer is a marketing event, the real crunch point comes when the customer meets your customer-service department.
A recent Nielsen study revealed that people most trust what their friends say about stuff, and that they trust generic online consumer opinions as much as they do branded communications. I think this has more to do with the contextual reality of the expectations than it does with any inherent trustworthiness in a particular communications medium (or lack thereof).
Two items in the Wall Street Journal caught my eye today. Both show us the American corporation as it struggles to divine the mysteries of American culture.
The newly reformulated Powerade contains "ION4," and the branding emphasizes the secret code for this new concoction at the expense of the name of the product. I'm not sure that’s such a smart thing to do.
Brands have a unique opportunity to understand how they can matter more to consumers by delivering beyond the product and value proposition and contributing to an individual's experience. Too often, sponsorships and promotions are viewed as secondary efforts to a brand's above-the-line efforts. In flush times, they are nice to have. In bad times, they are easy cuts. And, with the digital channel serving as a direct conduit to a brand's consumers, it is even easier to dismiss live efforts as expensive and hard to measure.
Amazon just announced that they're spending $800,000,000.00 (looks better that way) to buy Zappos.com. But wait. Amazon already has plenty of shoes. Amazon already has great technology. Amazon already has relationships with Fedex and UPS. What you buy when you spend that kind of money is what matters now.
A wise Rabbi once said, "If I am I because you are you. And you are you because I am I. Then I am not I and you are not you." We are not separate. We define each other. We are fronts and backs of each other." In order to describe a particular brand -- what it is -- you must describe its behavior -- what it does. And to describe what it does, you must describe it in relationship to its audience and its audience's behavior (customers, fans, members, et al). Which means that a brand is one, interdependent system of behavior, and not a separate thing.
GM's CMO Robert Lutz was recently told an awful truth: "In my group it is just uncool to drive a GM car -- even if they are as good as the imports." He replied: "I guess it depends whether you have your own personality or whether you are a lemming-like follower of current trends. I think an audacious and bold person with a mind of his or her own would go to a dealership and see that our new vehicles easily trounce the foreign competition. . . . It's uncool to drive an import." It's hard to assess how many ways this violates the marketer's handbook...but I'm going to try.
Financial Times editor Lionel Barber predicted that “almost all” news organizations will be charging in a year just because they need to. Meanwhile, former McClatchy news exec Howard Weaver thinks that news orgs should get, oh, say, 10 percent of Google et al’s revenue because they, oh, should. Amazing how news people lose their sense when they talk about news.
Paula Courtney found "wow" when she took her daughter to the employee washroom at her local grocery store. A sign by the door instructed workers to remain physically by the side of any customer experiencing a problem until that problem was resolved. Later, when Courtney was in the checkout line, the cashier noticed Courtney's blueberries were squishy. The cashier insisted on walking back to the produce section to find a fresh box. For Courtney, chief executive of The Verde Group, a Toronto retail research and consulting firm, that was a "wow" shopping experience.
There is no centralized location in the digital world. Increasingly, digital content spans platforms and devices seamlessly, connecting users with information and with each other. In doing so, it democratizes and levels the traditional playing field for the persistently connected audience, becoming a global platform capable of providing ubiquitous access to content and experiences. For brands, it represents a new priority, influencing the digital tribe.
Budgets continue to be slashed. Brands are disappearing. Media is getting more fragmented. The only thing getting bigger is our federal deficit. So as a marketer, how do you capitalize on a world that is getting smaller in so many respects?
With all the news coverage today on financial mismanagement, I can tell you from first-hand experience about a company that continues to prosper amid all the chaos. And I think it is worth trying to understand why.
Marketing people, and the minds of the people they are trying to influence, are often in conflict. Unfortunately, these arguments are being presented to minds that really aren’t up to dealing with all that glorious information. Our perceptions are selective. And our memory is highly selective. We are cursed with the physiological limitation of not being able to process an infinite amount of stimuli. This means that in a crowded category, your difference might not be enough unless it is a dramatic difference.
In an economy as whacked out as this one is globally, the tired "customer is king" adage is actually a wicked understatement. Consumers have seemingly infinite choices from good brands--many of them desperate to move the merchandise to generate cash and survive. In an unforgiving marketplace like the one we are enduring, brands better build products and services around real, differentiated and defensible insights. "Here's what I hope you want to buy" is a merchandising strategy for failure.
There are two kinds of brand: national and niche. National brands are their own planets. They have the incumbent's advantage, channel control, big reputations, deep pockets, and, if they're lucky, consumer loyalty.
Social media has evolved beyond a series of platforms that enable content publishing, sharing, and discovery into a genuine, peer-to-peer looking glass into the real world conversations that affect the perception, engagement, and overall direction of the brands we represent.
While the mind may still be a mystery, we know one thing about it that is for certain—it’s under attack. Most Western societies have become totally ‘‘overcommunicated.’’ The explosion of media forms, and the ensuing increase in the volume of communications, has dramatically affected the way people either take in or ignore the information offered to them.
These are austere times, but the logos recently loaded onto Logo Lounge.com–nearly 35,000 since 2008 – certainly do not reflect it, writes Bill Gardner. And that is how it should be. Wary homage may be paid to marketing in lean times, but not to identity design. These are two wholly different efforts with different goals. Identities should set a long-term course for clients, not fall into the pits carved out by economic phases. Our seventh annual logo trend report, as always, is as much a forecast as it is a study of the past 12 months. The past informs the future, and the recent past has such momentum that designers would be well-advised to stay this course, even when clients are only maintaining the brands they have, not creating new ones. Business may be slow, but it does not have to be dull.
Since the video game console industry began with the Atari 2600, every successive generation has been touted for its better graphics, faster processors, and increasingly complex controls. In 2005, when the latest generation of consoles was first announced, many assumed Sony's Playstation 3, which had the boldest specs, would prevail, following on the monster success of the Playstation 2. As it turns out, Nintendo's Wii has been the runaway success.
Marketers focus on their brands and customers as the family jewels--and they are. But there is another kind of marketing asset that I call "runways" and if you don't have them, you will miss huge opportunities. In this ADD world of rapid-fire Twitter streams, long-tail options, and media multi-tasking, you must be in the right place at the right time or the moment is lost. Runways are relationships your company can create with trading partners and consumers that make your brands accessible, and give YOU access to markets and marketing options you otherwise would not have. Let me illustrate.
Is Google’s OS the end of the OS – the long-predicted moment when Google and the web take over the PC? Or is it merely the disruptive OS throwing marbles on the floor for Microsoft and to some extent Apple and the software industry? Or will it be a platform and boon for app developers and PC makers and cloud companies? Or all of the above? Yes.
Imagine for a moment that you're standing on an overpass high above a busy L.A. freeway like the 405 or the 5. It doesn't really matter which. Pick one. In a span of a few minutes literally thousands of cars will speed buy. Some will be loud. Others quiet. Some will be notable, but most won't.
You don’t have to build relationships to sell things. McDonalds is sinking over $100 Million USD into their McCafe program, because they expect sales of those products to account for $1 Billion in sales. Do you think they give a rat’s anus about getting to know me? Not at all. Will their efforts work? I’m guessing yes. Even if they miss that Billion mark, it will be a pretty decent ROI in the end for their efforts. (We like coffee.)
Mad Sheep Rage. There - what a satisfying way to introduce a new column. No, I'm not nuts. Mad Sheep Rage is an acronym you might find useful. But first, let's get some perspective from another world where an important debate is raging.
Customer service is the new marketing because it is grounded in competency, people, and contact - all things that can help you with innovation and relationships and that cannot easily be outsourced. They in turn create the experience your customers have that contributes to your story - that of your company and your brand.
Every now and again, a PR meme appears on the Web – almost to the point where you could set your watch by it. This time around, Claire Cain Miller of the New York Times sparked the conversation with an in-depth article, “Spinning the Web: P.R. in Silicon Valley.” I respect Claire and I believe she wrote an extensive article that chronicles the launch of one particular startup and also featured supporting quotes from those PR professionals who are helping to usher in a new breed of corporate communications. While an exposé makes for an interesting read, PR is undergoing a much more significant renaissance that receives almost zero attention in this article. P.R. in Silicon Valley is far more sophisticated and effective than what’s actually spotlighted in the story and it’s much more potent than most entrepreneurs, investors, and executives realize.
The recent debates about the redesigned Tropicana orange juice packages that made a brief appearance on the market and disappeared after an outpouring of customer complaints brought to light again the need for caution when changing the packages of major brands.
It's almost impossible to escape the constant reminder that we are in a recession. While it's easy to criticize the media for playing up the downturn, marketers in general--and technology marketers specifically--feel obligated to lead with the message, "In these tough economic times..." Enough already!
One of the things that you probably learned by hanging out with me here at Conversation Agent is that I tend to bring together a lot of ideas in a short space, show you how those ideas are connected, and why you need to care. But, here's the thing, you care only if I catch you in the right frame of mind, if when you're reading this post you wrestle with the very same thoughts.
Word has it that Yahoo is going to debut new branding in the fall, courtesy of a newly-hired CMO who has a newly hired coterie of her favorite branding gurus. There's nothing surprising about this news: one of the first things new top marketers usually do is hire new vendors to reinvigorate or change the brand. It's what they do.
Creating an enduring brand is a huge challenge in today’s rapidly evolving marketplace. It’s similar to raising a child: it requires focused attention, intuition, and a lot of patience. It also requires a desire to change and adapt. Our natural instinct, however, is to shelter our brands, like our children, from the knocks and bumps that come in life. We want to keep our arms around them, keep them safe and under our control.
Consumers are bombarded with more messages than ever before. Refining and clarifying your target segment is becoming evermore important as mass-messages are falling upon deaf ears. Specific, tailored and relevant messages, combined with consumer engagement and empowerment are elemental in the new marketing era. Less and less are market leaders dictating consumer needs through “push” advertising. By way of digital networking and publishing tools, consumers are creating consumer needs. To identify the key forces driving this marketing shift, we synthesized insights from over 40 industry professionals.
While Professor Joe Plummer and I may not see eye to eye on everything (see my post on the definition of engagement), there is one thing we definitely agree on: an enterprise can achieve optimal results only when its business and its brand are aligned to work in synergy. When business and brand are out of synch (as happens all too often), the return to the company and shareholders is compromised.
I’ve recently delved into Habit, by Neale Martin. Every once in a while you come across the right book at the right time - a perfect confluence of ideas. Just the right perspective for a problem you’re working on.
Customers will talk about your company, its products and services, whether you want them to or not. And online there are a multitude of places to do so. The question is, do you as a brand facilitate or participate? I will argue that you should do both, and tell you why.
Marketing is possibly the most widely misunderstood business topic in the managerial world today. The problem of marketing ignorance stems not from the difficulty of the topic. After all, marketing at its core is just about as simple as it gets. The problem is that to understand what a concept like marketing means is one thing, to actually apply the marketing principle to your day to day business life is an altogether more difficult challenge.
What can consumer companies do to make sure that their brands aren’t among the losers? Our research revealed that the most successful brands today — including Adidas and iPhone and Pixar and Wikipedia — resonate with consumers in a special way: They communicate excitement, dynamism, and creativity in ways that the vast majority of brands do not. We call this quality “energized differentiation,” and we have identified, out of dozens of brand attributes in our consumer-research database, the metrics that capture this quality. By focusing on these attributes, marketers can keep their brands constantly moving and gaining value. In a world of excess capacity and diminishing trust, creating these kinds of energy-infused brands can help companies reinvigorate their brand management practices.
I’m sure you’ve heard the definition of madness: Doing the same things over and over and expecting different results. But have you heard of the "First Rule of Holes?” When you’re in one, stop digging! I see it all the time. Organizations are lost, but they’re making really good time. Ask yourself, and really think about it: Is my organization producing the growth in customers, members, revenues, donations, profits, etc. that it is designed to produce? Like it or not your answer has to be “yes,” because the design determines the results.
Aiming to please too many different types of customers can be a fatal flaw. Focus on your core audience and don't waste money on the rest.
Times are tough. People are hurting. Your mission to help people is critically important. But please don't confuse "mission" with "strategy."
I’m taking a break from the series on brand value creation for a post on a topic I’ve been reading a lot about lately — saying “thank you.” For people in general, service providers specifically, and companies, communicating sincere gratitude, it seems, is a lot more complicated than you might expect.
I guess you’ll have heard about the Versace hotel, the Ferrari laptop, and the Apple cell phone. Yet, had I suggested any one of these products to you fifteen years ago, you might have been forgiven for thinking that a few extravagant typos had made it past the editor. Yet today, we’ve become perfectly used to extreme brand extensions like these. But, can you go too far? Brands have been stretching their way into such new and unexpected product categories that some product progeny can be impossible to link to their brand parents.
I've thought a lot about "thinking global, acting local" since I moved to the UK to help launch an American brand two years ago. It's a constant tug-o-war between global consistency and local adaptation. Recently, I had coffee with Patrick Cairns, CEO of Plum Baby, who spent a lot of time in global roles with Unilever. He described the standard dichotomy as being either "mindlessly global" or "hopelessly local".
News broke this week that Yahoo has hired a cost-cutting specialist as its new CFO, with references that he'll help "...weed out the bureaucracy that has been dragging down its profits." Is that what Yahoo needs to fix?
When Guy Kawasaki talks about business innovation, as he did recently at a University of Pennsylvania technology conference, he brings more than 25 years of major league experience to the conversation--a background that the good-humored investor and entrepreneur calls "my checkered past." At Penn, he spoke at a conference marking the 20th anniversary of the Executive Master's in Technology Management (EMTM) program, offered by Penn Engineering and co-sponsored by Wharton. His talk, titled "The Art of Innovation," amounted to a 10-point manifesto on how to make something of value for customers.
Yahoo CEO Carol Bartz has been talking a lot over the past two weeks about Yahoo and how it competes against Google and Microsoft. Each time she does, I feel like she’s digging the hole even deeper for Yahoo’s prospects in search. Rather than communicate a clear search strategy — which you’d better have if you’re in a war against Google and Microsoft — she resonates mixed messages that Yahoo can ill afford to send.
Microsoft is hoping, of course, that Bing will wipe out Google's dominance in one fell swoop. That, next month, their $80 million ad campaign will cause their 8% market share to morph into 80%. That they'll finally be able to put that pesky Google decade behind them. They won't, of course. They won't because they seem to be forgetting some key fundamentals of the space in which they operate.
I want to Bing. I want to be Binged. I want to hear the Binging bells from a million laptops ringing the news that there might be an alternative to Google's dominant bong. So I was only too delighted to hear that two TV ads have already emerged to do the Binging ringing.
You have to love - or at least pay attention to - Digg’s new advertising system enabling users to vote on ads: The more that users digg an ad, the less the advertiser pays. That’s a reversal of advertising but it’s the way advertising probably needs to go: The better your relationship (which springs from a better product and service), the more your customers will market it for you, the less you’ll have to pay to market it. That is the ideal. Advertising is failure.
GM says it is reinventing itself. And what makes them or the government think they can do that on top of old infrastructure and old ways even with our billions? Good fucking luck.
Perceived quality is a brand association that is elevated to the status of a brand asset for several reasons.
When McDonald's launched its corporate social responsibility blog at the beginning of 2006, its title — Open For Discussion — signaled the company's readiness to engage with the blogosphere. Eight months later, it faced widespread criticism for the limitations of that engagement. McDonald's could have learned something from the tale of the Trojan Horse: beware of g[r]eeks bearing gifts.
When I first got into the ad biz and during my college studies the big thing that was repeatedly hammered into my young, impressionable mind was the need for every ad and ad campaign to have a "concept." A concept was that big idea, that creative aha that would simultaneously capture the consumer's attention and drive home a key benefit of the brand being advertised. And in the world of interruption based marketing, that makes sense. And to a lesser degree, today, it still does. But here is the rub. Here is the big thing that I think many of my fellow advertising folk haven't quite figured out. In the world of social media and web based marketing, you don't need a concept. Why? Because social and by and large digital isn't an interruption based communication platform. It's invitation based.
Advertising almost always wants to be upbeat, the better to jolly consumers into, well, consuming. So it is startling to see a spate of campaigns invoking some of the most downbeat times America has ever endured: the desperate decade that began when the stock market crashed in 1929 and continued through the Great Depression.
With social networks like Facebook transforming the way companies communicate with consumers, it's time for the ad industry to get its head out of the sand.
It's the place senior managers gather to deliberate. It's the place where the most pressing decisions are made. What's the metaphor that best captures the C-suite?
Design thinking is currently an "It" concept, the topic of countless books and blogs and conference panels. While it can mean a lot of different things to different people, for me, design thinking is a methodology, a tool, a killer app, and a problem-solving protocol to be used on virtually any problem. It can be equally effective in designing a new product or creating a new brand, to envisioning a new approach to health care or to reinventing city management. Mayor Daley in Chicago, where I live, is a pretty effective design thinker. That's right, Mayor Daley.
It's both, and that's the problem. Some marketers are scientists. They test and measure. They do the math. They understand the impact of that spend in that market at that time with that message. They can understand the analytics and find the truth.
The Internet was always fast. Google made a point during its rise to prominence to detail -- to the millisecond -- just how quickly it delivered a search result. And, as we all know, the Web has gotten even faster.
“We thought we’d update the logo a little.” “It’s not a new tagline. It’s just a catchy phrase that we are using instead of the tagline.” “We thought the icon would make a great decorative element.” “We are thinking about creating a new name for the organization.” “We developed a new product so we created a new brand for it.” “We created a different tagline for each audience. Pretty clever, huh?” “We were getting so tired of the old logo.” “It’s more fun to present the brand in a wide variety of colors.” “There was no room for the icon so we left it off.” “This is a funky stylized version of the logo targeted at younger audiences.” What is it about marketers that cause them to want to create something new all of the time?
To extend or not to extend? With apologies to the Bard, allow me to suggest that is the question -- for marketers. The lure of sales growth combined with lower advertising and promotion costs makes brand extensions an attractive move, but success is not guaranteed. For every brand extension win (iTunes), there are countless failures (Google print ads, Hooters airline, Bic underwear ...) Brand extensions are risky - but by following the methods of successful extenders, marketers can increase their chances of a win. Looking at what drove recent brand extension success stories, we find the questions of why, what, and how have been carefully considered.
Today, everyone knows we have to be smarter about how we spend marketing dollars regardless of whether we're increasing, decreasing or holding steady. But with an ever-changing media landscape and our country in an economic slump, the question becomes: is now the time to focus on short-term success, or do we wait patiently with a long-term vision in place?
I read last week that Sprint is in talks to outsource its network, and it kind of got me wondering what would be left if it did. A company name. A logo. A marketing budget. Everything else would get done by someone, or some thing else.
Unlike the ironic sentiment often expressed when quoting (or, as in this case, vitiating) Shakespeare's Richard III, I am not suggesting that attention is unimportant. I am, however, suggesting that businesses obsession with attention is misplaced, at best. And the fact that major industries have evolved to feed this obsession, simply adds to the problem.
Today's reality consists of multiple media channels, new technologies and consumers who have a short attention span. Traditional communications are no longer sufficient for creating loyal fans or bringing the brand to the forefront. This new reality demands a new approach to engaging consumers; this is where corporate social responsibility (CSR) as branded content comes in.
Have you seen Starbucks new campaign? The one designed to remind you of the "Starbucks story?" From the announcement video to the ads themselves, Starbucks is making the first mistake of modern advertising - they're telling you when they should be showing you.
Cisco, Corning, IBM, Intel, and Schwab have weathered worse economic storms. Five strategies to come out of this one even stronger.
The mad men of Madison Avenue are really mad these days, creating a spate of angry advertising campaigns that seek to channel the outrage, frustration and fear felt by consumers hit hard by what some are calling the Great Recession.
What do guns, burglar alarms and condoms have in common? Their sales all boomed in 2009, with condom sales jumping 22 per cent over the same period in 2008. But why? The answer can perhaps be found in Nigeria and Chile – two countries I visited on my world tour promoting Buyology. Surprisingly neither of the two countries was familiar with the “R” word. When asking government officials why that was the case, the explanation was simple – the media hadn’t paid that much attention to it, and as such no one had effectively read about the Recession, so the Recession simply had not yet arrived.
It takes a while for changes to sink in—for the full ramifications of market shifts to impact how we actually do business, what we plan to achieve and how we communicate our intentions. Up to now, what I’ve heard from clients has had mostly to do with money…budgets have tightened and spending decisions have slowed. But now clients are realizing that today’s market is reshaping not just what they spend but what they say. They are starting to look at their brand messages and ask themselves, what do we talk about now?
Yesterday, I wrote about how I didn't necessarily understand (or believe) Best Buy's plans to expand significantly its private label technology products business, and its hopes that incorporating customer feedback would let it make simple improvements that the big name brands might miss. I think there's a far bigger, far more radical, and much more likely sustainable opportunity for the company to pursue: Services.
Best Buy plans to expand significantly its private label technology products business, believing that customer feedback in its stores will let it make simple improvements that the big name brands might miss. Such vertical integration might be torn right from Capitalism 101, but I'm not sure that I buy it.
Elevator pitches, 30-second spots, viral videos, strategic PR, the brand called "you." Today’s commonly accepted view is that great brands are great at telling us their interesting stories. That’s a misguided view. In reality, we use our interaction with brands—their sceneries, props, set decorations, scripts, and actors—to construct our own stories, ones that we want to tell about ourselves. And since we define ourselves both according to what we identify with and what we reject, and given the abundance of marketplace choice, we now choose interactions which we feel will produce the best story possible. And we reject the others.
People expect companies to do more than just sell stuff. They want to know what you stand for, what choices you make as a result and what difference that could make in the world. So when it comes to people making their brand choices, Cause Marketing can be a tiebreaker. Almost 80% of Americans are more likely to switch to the brand supporting a good cause over a competitor with the same price and quality. But Cause Marketing is not just about photo opportunities, oversized checks and warm fuzzies. It can be an opportunity to turn commercial interest into real change.
In a loud and proud public announcement, Facebook said it didn’t care whether its members visited Facebook.com at all. The company said it would provide a set of technology tools that will let other companies create programs that tap into the heart of the social network — the endless stream of photographs, status updates and comments that people post to the service. Saying it is unable to provide a range of access to the service from every possible gadget, Facebook expects developers to create Facebook programs that sit on computer desktops, run inside Web browsers and are tailored to a wide range of mobile devices like the iPhone.
In a couple of weeks we’ll be partnering with Microsoft to give a joint presentation to some IT and Marketing directors about the idea that their two disciplines are starting to (or needing to) work much more closely these days. Regular readers will recognise this as a favourite theme of ours - we like to think that the best marketing ideas are actually company operations that happen to be really appealing or compelling to customers too. One of the many advantages of this line of thought is that marketing is completely integrated into the business and you don’t have to spend money to build marketing programs that then build your business, you simply spend money on building your business.
One of my pet peeves is the elevation of corporate mascots and celebrity spokesmodels from sales promotion tactics to brand strategy. Only now I'm thinking that in certain circumstances, they really are one in the same. Almost. Consider Geico and Priceline. Both businesses offer pretty generic, unsexy products (insurer and travel agency, respectively) that compete primarily, if not solely, on price. Good luck trying to attach emotional or other intangible attributes to such brands, right?
Listening is about being still. And patient. And generous. It’s a difficult trifecta to achieve. Think about the last time almost anyone you know gave their absolute attention to you or someone who was talking to them. You have to quiet your mind entirely, and be willing to be influenced by someone else’s thinking and thoughts. You need to put aside any desire to rebut or argue a point, and be completely open and non-judgmental. Very hard to do.
I read with interest today the removal of Chris DeWolfe as CEO of MySpace. According to the "growth" model of capitalism, MySpace has a problem. If senior management can't renew growth, change is called for. But what if this growth model is, at least for new media purposes, mistaken? If we embrace a new model of the kind someone like Henry Jenkins, David Weinberger, or Don Tapscott might endorse, then this might be precisely the wrong way to think about things.
No, not its inane brand image campaign and logo nonsense. I'm talking about its announced intention to spend $6 billion to take control of its bottling and distribution operations. I think it is the smartest branding move the company has made in recent memory.
AT the entrance to almost every shopping mall in the country, you will find a directory that, if you are spatially coordinated, will give you an approximate lay of the land. You can gauge the distance from Abercrombie & Fitch to its younger-skewing cousin, Hollister, or its older cousin, Ruehl, and find the way to their closest competitors in the teenager and young adult category, Aéropostale and American Eagle Outfitters. But you will be no closer to discerning what drives the modern youth from one store to the next; what differentiates one’s frayed cargo shorts from another’s; or why one of them, Abercrombie, is facing a consumer revolt, while others are paradoxically upbeat. A clue: It has to do with price.
As the executives at Apple (AAPL) were passing around the Dom Perignon, their counterparts at other companies which design and manufacture smartphones were putting all sharp objects out of reach. In a recession, there is only so much air in any room. Smart phone sales are suffering like all consumer electronics. If the iPhone is doing extraordinarily well, others are doing badly.
As the recession deepens and stretches out quarter after quarter, more companies will close or will shut divisions. More brands will disappear because their parent firms fold or can no longer afford to support them. Other brands will be obliterated by mergers. We have compiled a list of 12 brands that we believe will not survive until the end of next year. Each brand and the major reasons for its demise are listed along with some of the public information 24/7 Wall St. examined.
As Twitter and Facebook compete for your attention and social status, there's another story that serves as the undercurrent for something much more important, a fully pervasive and functional social operating system (OS) that serves as a open platform to connect you, your content, updates, and activity to your friends, peers, and followers across your social graph, regardless of network, browser, or device.
Differentiation, of course, exists, but does so on the basis of a product or service actually owning values — real or perceived, rational or emotional — and occupying a real place in the consumers’ minds — beyond the consumers just being aware of them. And the degree to which they possess these values and have meaning in the consumers’ minds (beyond primacy of product) determines whether they have differentiated themselves. But fewer and fewer products and services are able to demonstrate any degree of actual differentiation.
Anytime a brand's advertising slogan begins with "We do more than _____," you know the brand is making a major mistake. This is exactly the case with the UPS Store’s new slogan: “We do more than shipping.”
Brands aren't simply brands anymore. They are the center of a maelstrom of social and political dialogue made possible by digital media, said Unilever Chief Marketing Officer Simon Clift, who warned that marketers who do not recognize that -- and adapt their marketing -- are in grave peril.
We've written much on what we know will be virtues of a successful 21st-century brand: trustworthiness, durability and accessibility, distinct from the core values (or motivators) they ultimately support. For instance, a brand may value Independence (Harley-Davidson, say), and exercise its virtues of Trustworthiness, Durability and Accessibility to ensure that its core value is understood, and motivating, at every turn. We as a practice don't assign values to brands; we simply apply these virtues to brands in when designing for their values, whatever they may be.
If the "backlash against bling" is real, then we really have to ask ourselves, what on earth is marketing going to look like to millions of people who don't want to buy like they used to—who are marketing weary? People just like my dad, only more digitally savvy. Not only that, but beyond marketing, what's the effect on companies who make their profits by continually producing new products? Bigger, better faster—guaranteed to make your life meaningful. Business and brands have a problem.
I have good career news for those of you on the recession front: When the economy improves, the skills and approaches you perfect during these troubled times will better position you for greater riches and fame. The trick will be surviving until then.
Marketing is a long-term proposition. A company can get in trouble if it changes its marketing strategy to cope with a short-term problem.
Cable station AMC has announced a new slogan -- "Story matters here" -- and plans to market new original programming and themed movie nights. I'm intrigued by the idea that the station could give itself an identity, of sorts, perhaps in the spirit (if not the exact execution) of a Disney and its kid movies. It makes sense as a branding strategy, especially when you consider the wash of cable programming, and how tough it is to make money in the content distribution business.
Companies large and small have been wandering in the wilderness, trying to figure out how to play with the rapidly growing number of multisided platforms such as Amazon. MSPs are products, services, or technologies that connect different types of customers to one another. Credit-card companies and eBay link consumers and merchants. Google’s search engine connects advertisers and users of its services. Microsoft’s Windows platform has three sides (application developers, users, and OEMs), as does the Blu-ray standard for high-definition DVDs (content providers, manufacturers of DVD players, and consumers). Once a relatively obscure strategic problem, multisided platforms have become important for all companies today, thanks to the power of the internet and related technologies.
In a simpler time, design wasn't harsher than a mixed-martial arts event. In the olden days, say three years ago, companies would order their new logos and new-and-improved packaging from their design fortresses on high, and the lowly customers below would quietly accept the blobby, 3D-textured versions of once-beloved logos without complaint. No more, of course.
Losing control is a primary reason stated by brands who are unwilling to open themselves up to the conversation - and a major reason why most continue to use social media as little more than a brochure on the web. And yet the illusion of control is just that – an illusion. By not involving yourself you actually do more to remove control than if you did.
For the Web's cognoscenti, the lolcats fad is so over. I Can Has Cheezburger, the site that sparked captioned-cat-picture mania, launched in January 2007. The online world's early adopters learned about the phenomenon that February, when Boing Boing first linked to the site. Over the next few months, lolcats showed up in Gawker, Slate, the Wall Street Journal, and Time. Last October, Eric Nakagawa and Kari Unebasami, the site's founders, published I Can Has Cheezburger?: A LOLcat Colleckshun, a book that spent 13 weeks on the New York Times' paperback best-seller list. Lolcats are now even showing up on hipster soda bottles. Is there anyone left in America who hasn't had enough of these cat photos appended with ironic, allusive, peculiarly spelled captions?
People are scared. Have you finally figured that out? They want to make sure that their marketplace decisions are "good" ones; that they'll receive "value" for their exchange of precious time and money. So how do you help them do that? The first step is to think and feel what your audience is feeling.
I’m gonna open up the Brains on Fire heart and soul here for a moment and talk about something that we struggle with: it’s how we talk about what we do as a company. Here’s the dilemma: If you use your own language, then you have to explain harder what you do. But if you use the same language as everyone else, then you fall into the “just another” category.
Why should anyone care about brands in times like these? Because it's during these times of transition, internally or through market shifts, that businesses simultaneously have the highest level of vulnerability and opportunity. Those responsible for shaping and maintaining a brand have much more influence over whether the current news climate weakens or strengthens their brand than they may realize.
So what is effective brand building in the new digital world? What is the best way to prime the pump? As I started to think about that, I realized the answer depends on the nature of the brand to be built. And, as I was chewing that over, the Microsoft story hit my inbox and I realized that it captured the essence of two distinct characters of brand: promise and religion. These two characters of brand occupy two totally different places in our mindscape, and so have to be treated differently, no matter what branding channel you choose to use.
The Postal Service has withstood challenges from the telegraph and telephone. It has adapted to stagecoaches, railroads, airplanes and other innovations that quickened the pace of American life; however, the economic crunch and digital mail may be forcing the postal service to change its operations.
A vivid example of the silo problem -- the failure of autonomous product and functional silos to cooperate -- comes from Sony's incredible miss of the iPod market, as recounted in the new Wiley book Sony vs. Samsung by Sea-Jin Chang.
Carmakers need to let go of their musty business models and start thinking like 21st century companies—like Google.
Blue Thinking is the antidote to Green. It doesn’t go away and it’s not a project with a budget. It is the next generation of thinking emerging from the heart of brands embracing sustainability as business strategy and a driver for innovation. It’s not a green consumer story or marketing idea, not a single product innovation, not one change in the supply chain (but instead many), and nor is it a disconnected concept that should be applied to business because climate change has come upon us. Instead, it is transformational innovation.
"The fruits are in the roots." This is a key concept in the M.B.A. course I teach at Emory University's Goizueta Business School. In class, we explore the soulfulness of organizations -- how to discover it, harness it and profit from it. President Obama's inaugural address is a primer on this subject as well as an important lesson for marketers who believe our industry could do better. The president believes that going back to our fundamental truths -- our soul -- is indeed what propelled our nation to greatness.
Marketing expert David Aaker argues that to succeed in today’s global arena, marketers must learn to appeal to consumers whose interests transcend individual products and regions.
When The Wizard of Oz goes from black-and-white to color, the story springs to life all the more vividly; extraordinarily. In the eyes of today’s audiences, many companies’ stories, images and messages are missing a richly individual character: a truly distinctive color, contrast, aura, personality.
The goal is to create a product that people love. If people love it, they'll forgive a lot. They'll talk about it. They'll promote it. They'll come back. They'll be less price sensitive. They'll bring their friends. They'll work with you to make it better. If you can't do that, though, perhaps you can make your service or product less annoying.
I just finished walking through the exhibits at the 2009 Consumer Electronics Show in Las Vegas, and my shopping list is blank. I don't need anything that I saw.
Don Carli of the Institute for Sustainable Communications weighs in on how the issue is evolving and where it's likely to be going in 2009.
Steve Forbes believes "capitalism will save us." You know he speaks on behalf of a generation of businessmen who believe that there's nothing fundamentally wrong with the system; that what we're seeing right now is simply another of those cyclical periods of correction and Darwinian winnowing of the weak.
That's the choice most of us make when we launch a product or service. We can make a market or we can take share from a market.
There are two reasons that gravity has had so much better marketing than evolution, and both may impact the way you market your product or service as well.
In many ways the story of General Motors since the 1960s is a tale of accelerating irrelevance. Customer preferences changed, competition tightened, technology made big leaps, and GM was always driving a lap behind.
The post-agency era is upon us. With staggering speed and efficiency, consumer preferences and digital technologies have coalesced to create a broad and deep cultural demand for direct relationships. In this disintermediated market, do we need go-betweens at all?
A multiple choice question: is Land Rover British, German or American? Or none of the above? That’s right - it’s Chinese. The Shanghai Automotive Industry Corporation (SAIC) recently acquired the brand and the rights to all its past models for US$140 million.
Advertising Age honors the top brands of the year -- and the brains behind them.
Competition? Sure. Rotten economy? No doubt. But there's a larger, deeper reason the green giant is drinking the dregs: It ignored everything that made its customers loyal.
Country second. Political expediency first. Strategic rigor about 18th. My friends, what a terrible campaign.
Given its recent financial struggles—at the core of which are weak sales that have forced the closing of about 600 of its U.S. stores through the first half of fiscal year 2009—the question many people are asking right now is: Can Starbucks get its mojo back?
The Nike+ site is drawing hordes of runners, and its success may hold lessons for brand building on the Web.
Four years after delivering the speech called "The Audacity of Hope" that would launch him toward the White House, Barack Obama has become a case study in audacious marketing, an object lesson on why you should forget inherited notions of whom your audience can be.
Nov. 4, 2008, will go down in history as the biggest day ever in the history of marketing.
It's obvious that this is the most talked about election in the history of the world, and I think there are some lessons for every marketer, regardless of nationality or political leanings.
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