What were they thinking?
The history of Xerox is laid out on Laura Ries' "Origin of Brands". The print ad with the headline
This Xerox machine can't make a copy
makes me shudder. They owned the term, the category, the mind -- and lost them all.
If it can't, it must be broken.
Friday, January 25, 2008
Tuesday, January 22, 2008
Your Specialty is Your Brand
How do you link sales and marketing?
Offering 'wide selection, good service, and best prices' is a very common online strategy for retailers. It is also the most likely to guarantee mundane results. Everybody says it and nobody is different. Getting people to understand what it is that makes you different will help them understand why they should work/shop/visit with you. Thus, your brand is your specialty.
This is particularly true if you use search in your marketing mix. As that tactic continues to grow, both in terms of share of online spending and in absolute terms, the competition for general key words will get terribly expensive. To succeed you must focus on (and own) those ideas most closely related to what it is exactly that you do better than anyone else.
While William Bernbach of VW "Think Small" fame was referring to advertising most of the time, his quotes often reflect marketing. This one speaks volumes:
"In advertising not to be different is virtually suicidal."
If you can't find a way to differentiate yourself, then get out of business.
Offering 'wide selection, good service, and best prices' is a very common online strategy for retailers. It is also the most likely to guarantee mundane results. Everybody says it and nobody is different. Getting people to understand what it is that makes you different will help them understand why they should work/shop/visit with you. Thus, your brand is your specialty.
This is particularly true if you use search in your marketing mix. As that tactic continues to grow, both in terms of share of online spending and in absolute terms, the competition for general key words will get terribly expensive. To succeed you must focus on (and own) those ideas most closely related to what it is exactly that you do better than anyone else.
While William Bernbach of VW "Think Small" fame was referring to advertising most of the time, his quotes often reflect marketing. This one speaks volumes:
"In advertising not to be different is virtually suicidal."
If you can't find a way to differentiate yourself, then get out of business.
Thursday, January 17, 2008
The Wanamaker (or Leverhulme) Question
Why is half your advertising wasted?
Seth Godin has reduced the answer to four words. Who vs. how many.
Hopefully you can figure out your target market and start there. Simply put, once you've reached your target; you should stop spending - no matter how 'big' the rest of the world is.
Help the poor soul who finds his target last.
Seth Godin has reduced the answer to four words. Who vs. how many.
Hopefully you can figure out your target market and start there. Simply put, once you've reached your target; you should stop spending - no matter how 'big' the rest of the world is.
Help the poor soul who finds his target last.
Saturday, January 12, 2008
Facebook Saving Face or Egg on the Face
Did I read this right?
In a post on GigaOM written by Stacey Higginbotham about Mark Zuckerburg's appearance on 60 Minutes there's a quote that I had to read a couple of times.
Successful businesses align their solutions with the needs of their customers. Yes, advertisers and agencies (and I work for one) are enticed by the promise of social networks; but if people aren't there in the mood to shop then no amount of advertising is going to work. (ok, you can make a branding argument if you'd like, but the metric that matters at the end is revenue.)
Facebook didn't start as means of facilitating commercial transactions; the switch to another business model will be very difficult and if successful will be for a different audience segment.
“I mean, there have to be ads either way because we have to make money…We have 400 employees. We have to support all that and make a profit.”The quote is both short-sighted and immature.
Successful businesses align their solutions with the needs of their customers. Yes, advertisers and agencies (and I work for one) are enticed by the promise of social networks; but if people aren't there in the mood to shop then no amount of advertising is going to work. (ok, you can make a branding argument if you'd like, but the metric that matters at the end is revenue.)
Facebook didn't start as means of facilitating commercial transactions; the switch to another business model will be very difficult and if successful will be for a different audience segment.
Five Nines: 99.999%
Is that level of precision good?
Well, it depends on what you're measuring. For systems like 911 it is an indicator of reliability or guaranteed up time. Even at five nines the system could be down around 5 minutes a year; still might be considered too much. It is a very expensive proposition to get this level of service - triple redundancy, remote hosting across different parts of the power grid, etc.
In marketing, particularly lead generation in competitive categories, five nines is often the level of misaligned effort. Consider the following for display ads:
Click-through Rate: 0.1% (yes that is one tenth of one percent)
Convert to Lead: 1%
Convert to Sale: 5%
So, for every 2 million impressions you get 1 sale. This makes even bargain basement networks or sites look expensive in the end. A $2 CPM equates to a $4,000 Cost per Acquisition.
Since well over 99.999% of the impressions are "wasted", what can we do?
PowerPoints:
Well, it depends on what you're measuring. For systems like 911 it is an indicator of reliability or guaranteed up time. Even at five nines the system could be down around 5 minutes a year; still might be considered too much. It is a very expensive proposition to get this level of service - triple redundancy, remote hosting across different parts of the power grid, etc.
In marketing, particularly lead generation in competitive categories, five nines is often the level of misaligned effort. Consider the following for display ads:
Click-through Rate: 0.1% (yes that is one tenth of one percent)
Convert to Lead: 1%
Convert to Sale: 5%
So, for every 2 million impressions you get 1 sale. This makes even bargain basement networks or sites look expensive in the end. A $2 CPM equates to a $4,000 Cost per Acquisition.
Since well over 99.999% of the impressions are "wasted", what can we do?
PowerPoints:
- Target better - explore behavioral, geo, and related category options. But that still works on the assumption that a clear link from a click to a sale is the only thing on the path, so don't stop there.
- Capture intent better - the standard 'give me your name and we'll send you' info may work in the CPL-compensated world but may not be the best strategy for this category
- Treat it is branding - this alone is a cop out. But the impact of branding advertising on search and choice should be understood because it does help cut through the clutter of unknowns. Now it is true you end up paying twice in a sense - once for the display ad and then again for the lead from an aggregator/affiliate, but you do end up with the lead.
- Say it differently. Even a slight improvement in the original CTR cascades into financial metrics that would make the CFO smile. And this means understanding your audience really, really well.
Monday, December 31, 2007
Collection of Ads
Where can you see current creative?
Firebrand, a site launched last month is dedicated to TV ads has some interesting pieces from television around the world. While still in beta (and having a few technical and layout issues) the idea of good ads as good content is interesting. Yes, they could be on YouTube but if I'm interested in what ideas actually get produced then this cuts through the clutter.
Particularly enjoyed the Braveheart ad for "The Mail on Sunday".
Firebrand, a site launched last month is dedicated to TV ads has some interesting pieces from television around the world. While still in beta (and having a few technical and layout issues) the idea of good ads as good content is interesting. Yes, they could be on YouTube but if I'm interested in what ideas actually get produced then this cuts through the clutter.
Particularly enjoyed the Braveheart ad for "The Mail on Sunday".
Sunday, December 30, 2007
Marketing and Advertising Defined
What do these terms mean?
In a recent MBA course I taught at Neumont University on marketing I had to define these terms. While there are myriads of technical definitions; here's what we came up with to capture the main point.
Marketing: the alignment of a need with a solution to everyone's benefit.
Advertising: publicizing the fact
Thus, marketing must understand who has a problem to be solved and then figure out how to make the exchange of benefits profitable to both parties.
On a side note, Neumont is interesting in that it focuses on two-year Bachelor's degree in Computer Science -- that's it. Students attend college full time, work on industry-sponsored projects, and graduate with 100% placement and above average salary. The founders (and venture capitalist backers) designed the program for what enterprises need in software developers.
In a recent MBA course I taught at Neumont University on marketing I had to define these terms. While there are myriads of technical definitions; here's what we came up with to capture the main point.
Marketing: the alignment of a need with a solution to everyone's benefit.
Advertising: publicizing the fact
Thus, marketing must understand who has a problem to be solved and then figure out how to make the exchange of benefits profitable to both parties.
On a side note, Neumont is interesting in that it focuses on two-year Bachelor's degree in Computer Science -- that's it. Students attend college full time, work on industry-sponsored projects, and graduate with 100% placement and above average salary. The founders (and venture capitalist backers) designed the program for what enterprises need in software developers.
Sales and Marketing Babel
What if we shared a common language?
Sales and marketing continue to talk in different languages. Consider the 'sales pipeline' and the 'brand pyramid'. Both tools should focus on helping to align people and solutions better; but we talk about qualified, buying stage, etc. in the sales cycle and emotional benefits and brand essence in marketing. In the end sales and marketing want the same customer - one that is deliriously happy with the solution.
The brand pyramid should be held up as a sales tool and the sales pipeline should be as a marketing tool. Maybe we should have "brand pipelines" and "sales pyramids" to help with alignment.
Sales and marketing continue to talk in different languages. Consider the 'sales pipeline' and the 'brand pyramid'. Both tools should focus on helping to align people and solutions better; but we talk about qualified, buying stage, etc. in the sales cycle and emotional benefits and brand essence in marketing. In the end sales and marketing want the same customer - one that is deliriously happy with the solution.
The brand pyramid should be held up as a sales tool and the sales pipeline should be as a marketing tool. Maybe we should have "brand pipelines" and "sales pyramids" to help with alignment.
Saturday, December 01, 2007
Lattitude is the New Black
What do you do when your stuck for a brand name?
Well, two vodkas have used their location to create a brand. Both 44 North and 42 Below are flavored vodkas based on local fruits, huckleberries and manuka honey, respectively. Grizzly bears vs. bees; interesting positioning. Great ads as well.
I've had the one from Idaho; need to get to New Zealand.
Thursday, November 29, 2007
Dove gets Axed
What happens when brand positionings collide?
We've all been taught that a product should own a place in a given target audiences mind. But what happens when two contradictory positions are attempted by the same company? Just ask Unilever. Their Dove brand focuses on 'real beauty' and 'self-esteem'. In contrast, Axe makes you think it is a pheromone in a spray bottle.
The press and YouTube (or should we consider that press now) are filling with stories and parodies about Unilever's apparent contradiction.
Now, when dealing with the essence of a brand one must also take into account the essence of the company.
We've all been taught that a product should own a place in a given target audiences mind. But what happens when two contradictory positions are attempted by the same company? Just ask Unilever. Their Dove brand focuses on 'real beauty' and 'self-esteem'. In contrast, Axe makes you think it is a pheromone in a spray bottle.
The press and YouTube (or should we consider that press now) are filling with stories and parodies about Unilever's apparent contradiction.
Now, when dealing with the essence of a brand one must also take into account the essence of the company.
Saturday, November 17, 2007
Walls of Jericho Are Coming Down
What does open social mean?
First, what is it? Gabriel, I mean Google, is breaking down the walls between web sites by creating a means for functionality to be seamlessly shared across the Internet. Of particular interest is the ability to share functionality across a series of social networks.
Notice I didn't say 'site' above. The concept of open social implies that the web site is no longer a destination per se; but rather one part of the entire vehicle for interaction. This is a very good thing. As I've noted before, the concept of the Internet as a series of destinations is ultimately doomed because people want content to come to them.
In the past I sometimes wondered if I was inside those walls (corporate site) or outside (consumer). Today, its clear -- the wall is gone.
As Jeremiah Owyang recently wrote on MarketingProfs: " Web marketing no longer is limited to your corporate site. Let go of the concept of "driving traffic to your Web site" as a sole measurement of success. The Web, its message, and your battles are now fought on the open and distributed Web."
First, what is it? Gabriel, I mean Google, is breaking down the walls between web sites by creating a means for functionality to be seamlessly shared across the Internet. Of particular interest is the ability to share functionality across a series of social networks.
Notice I didn't say 'site' above. The concept of open social implies that the web site is no longer a destination per se; but rather one part of the entire vehicle for interaction. This is a very good thing. As I've noted before, the concept of the Internet as a series of destinations is ultimately doomed because people want content to come to them.
In the past I sometimes wondered if I was inside those walls (corporate site) or outside (consumer). Today, its clear -- the wall is gone.
As Jeremiah Owyang recently wrote on MarketingProfs: " Web marketing no longer is limited to your corporate site. Let go of the concept of "driving traffic to your Web site" as a sole measurement of success. The Web, its message, and your battles are now fought on the open and distributed Web."
Tuesday, October 23, 2007
Sputnik Now Delivers Pizza
What is in a connection?
Like James Burke's show "Connections" from the late 70's on the BBC, Chris Linnet over on Search Engine Land also outlines the linkage between two disparate events. This time it is the launch of Sputnik in 1957 and today's ability to search for local options, like pizza.
Seems people really like connections, linkage, etc. -- something marketers should consider as part of branding. In fact, Hill and Lederer propose this notion in their 'brand molecule' approach where a product is part of an overall network of connections, some explicit some not.
Like James Burke's show "Connections" from the late 70's on the BBC, Chris Linnet over on Search Engine Land also outlines the linkage between two disparate events. This time it is the launch of Sputnik in 1957 and today's ability to search for local options, like pizza.
Seems people really like connections, linkage, etc. -- something marketers should consider as part of branding. In fact, Hill and Lederer propose this notion in their 'brand molecule' approach where a product is part of an overall network of connections, some explicit some not.
Thursday, October 18, 2007
Campaign Dips
What are the benefits of slogging through the tough patch?
In both Seth Godin's new book, "The Dip", and Chris Matthews' "Life's a Campaign" the central concept is about sticking with your dream/goal/objective and overcoming the hurdles thrown in your face; including the fact that most things take seriously hard work to achieve. The "Dip" argues that there is a trough between the beginning of something and a successful final outcome; "Campaign" argues that nobody wants a level playing field, no matter what they say. So, when launching a new campaign or product there is a very natural tendency for the world to conspire against you.
Sometimes it is worth the effort to persevere, sometimes it isn't.
"Superstars" know when they're in a dead end; they quit, move on and don't take it personally. Marketers should do the same.
In both Seth Godin's new book, "The Dip", and Chris Matthews' "Life's a Campaign" the central concept is about sticking with your dream/goal/objective and overcoming the hurdles thrown in your face; including the fact that most things take seriously hard work to achieve. The "Dip" argues that there is a trough between the beginning of something and a successful final outcome; "Campaign" argues that nobody wants a level playing field, no matter what they say. So, when launching a new campaign or product there is a very natural tendency for the world to conspire against you.
Sometimes it is worth the effort to persevere, sometimes it isn't.
"Superstars" know when they're in a dead end; they quit, move on and don't take it personally. Marketers should do the same.
Wednesday, October 17, 2007
Internet History and Web 2.0
How did we get to here?
In a recent article published in Chief Marketer, I argue that a fundamental issue with the Internet is that it was and remains a collection of destinations. Born out of the need to connect computers in the event of disaster, we're still leveraging destinations as a core marketing concept. So every new idea is yet another place to go. - just try to come up with a unique domain.
I don't know about you, but I don't want to go anywhere new anymore. Like any and all forms of advertising before it, the concept of a hot new website will diminish.
In a recent article published in Chief Marketer, I argue that a fundamental issue with the Internet is that it was and remains a collection of destinations. Born out of the need to connect computers in the event of disaster, we're still leveraging destinations as a core marketing concept. So every new idea is yet another place to go. - just try to come up with a unique domain.
I don't know about you, but I don't want to go anywhere new anymore. Like any and all forms of advertising before it, the concept of a hot new website will diminish.
DMA - Buzzless Again, But Steady
What was new at the DMA?
Last year I wrote that the annual conference was a bit flat. This year was more of the same, but maybe that's the way it should be -- we're just working hard o achieve our clients' objectives. The best practices of 'being direct' are crossing the chasm with other forms of marketing. In a note on spending, "DM will make up more than half of all US advertising."
Another sign of the times, the interactive pavilion was integrated into the main area -- no more trudging underground to a place far, far away. More importantly the concept of integrated campaigns started to make sense to vendors from all walks of life.
Last year I wrote that the annual conference was a bit flat. This year was more of the same, but maybe that's the way it should be -- we're just working hard o achieve our clients' objectives. The best practices of 'being direct' are crossing the chasm with other forms of marketing. In a note on spending, "DM will make up more than half of all US advertising."
Another sign of the times, the interactive pavilion was integrated into the main area -- no more trudging underground to a place far, far away. More importantly the concept of integrated campaigns started to make sense to vendors from all walks of life.
Monday, October 08, 2007
Goldilocks and Article Length
What is the right length for content?
Readers' attention span varies by medium - print, online and blogs. Emailing with Tim Parry of Chief Marketer about an upcoming article we discussed a submission that was "WAY too long for the Web." This got us thinking about the 'ideal length'.
Here are my PowerPoints:
Readers' attention span varies by medium - print, online and blogs. Emailing with Tim Parry of Chief Marketer about an upcoming article we discussed a submission that was "WAY too long for the Web." This got us thinking about the 'ideal length'.
Here are my PowerPoints:
- Blogs -- 100 words or less and focus on one point.
- Online articles -- 600 to 800 words to communicate a single idea with support
- Printed articles -- 1,200- 1,500 words to develop and explore a concept
Monday, October 01, 2007
Saturday, September 29, 2007
Management Summary
Where are the cliff notes for management?
You've heard people quote this strategy, method, or theory - Porter's Five Forces, BCG Matrix, Balanced Scorecards, etc. -- and want to know what the hell they're talking about.
For an excellent summary of hundreds of approaches to management the 12Manage site provides 1 page summaries organized in a spectrum of categories. Well worth a visit.
So the next time a consultant or job applicant spouts off "I'm a proponent of using Ohmae's 3C's Model tempered by Kapferer's Brand Identity Prism to develop a profitable CRM strategy" -- you can call their bluff.
You've heard people quote this strategy, method, or theory - Porter's Five Forces, BCG Matrix, Balanced Scorecards, etc. -- and want to know what the hell they're talking about.
For an excellent summary of hundreds of approaches to management the 12Manage site provides 1 page summaries organized in a spectrum of categories. Well worth a visit.
So the next time a consultant or job applicant spouts off "I'm a proponent of using Ohmae's 3C's Model tempered by Kapferer's Brand Identity Prism to develop a profitable CRM strategy" -- you can call their bluff.
Saturday, September 15, 2007
New Visualization Element Discovered
How many ways can we look at data?
The folks at Visual Literacy summarized a wide range of visualization techniques in a periodic table format. It organizes approaches into data, information, concept, strategy, metaphor, and compound visualization. It covers 100 techniques ranging from the bar chart to the affinity diagram.
I submitted the data cloud (see previous post from August 02) for submission; might have a "discovered" a new way of presenting information.
The folks at Visual Literacy summarized a wide range of visualization techniques in a periodic table format. It organizes approaches into data, information, concept, strategy, metaphor, and compound visualization. It covers 100 techniques ranging from the bar chart to the affinity diagram.
I submitted the data cloud (see previous post from August 02) for submission; might have a "discovered" a new way of presenting information.
Campaigning is Not Marketing
Just what do they think they are doing?
The coming onslaught of commercials, billboards, radio spots, banners, search jacking, etc. focuses on the immediate and short term world of getting a vote. It might be called advertising, PR, bullying, or just plain silly --- but it is not marketing.
Marketing takes (well it should) the long term view of what need needs to be satisfied. In the world of products, and what politician isn't a product at the end of the day, the prevailing wisdom is to focus the needs of a single user defined by a persona. This is our target market - nothing more - and the features align specifically to her. The trouble with the political and election process is that there fundamentally isn't any way to focus on the needs of one segment and still win an election. This flaw creates wish washing, flip-flopping, and some of the best sound bytes that don't really say much.
In marketing we should be able to clearly articulate a benefit statement -- politicians work hard to avoid that in fear of alienating some other group. No wonder they often fail in satisfying our needs.
The coming onslaught of commercials, billboards, radio spots, banners, search jacking, etc. focuses on the immediate and short term world of getting a vote. It might be called advertising, PR, bullying, or just plain silly --- but it is not marketing.
Marketing takes (well it should) the long term view of what need needs to be satisfied. In the world of products, and what politician isn't a product at the end of the day, the prevailing wisdom is to focus the needs of a single user defined by a persona. This is our target market - nothing more - and the features align specifically to her. The trouble with the political and election process is that there fundamentally isn't any way to focus on the needs of one segment and still win an election. This flaw creates wish washing, flip-flopping, and some of the best sound bytes that don't really say much.
In marketing we should be able to clearly articulate a benefit statement -- politicians work hard to avoid that in fear of alienating some other group. No wonder they often fail in satisfying our needs.
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