Marketing Strategy

    Rubel, Facebook and Fruit Cocktail.

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    There’s a pretty interesting debate going on over at Steve Rubel’s Posterous stream.  It revolves around his moving his stream (sorry, guys of a certain age) to Facebook.  He’ll continue at Posterous but feels Facebook gives him more visibility, a bigger audience and a richer discussion. 

    Mr. Rubel initially moved to Posterous because it was a place for him to aggregate his musings. Plus it was an easy and elegant interface.  (The aesthete in me likes the Posterous look better than the templatized Facebook frame.)  Sequestering most of his business and digital observations on Posterous and moving everything  else — business, personal, real time — to Facebook seems like a good strategy. But is it? Time will tell.

    Specificity

    In America and countries that look to America for tech and taste, specificity rules the day.  No one ever became president (of anything) being a generalist.  Let’s leave Mr. Rubel for a moment and use Ms. X as an example.  Say you’ve never met Ms. X but you think she’s a brilliant marketing mind. She may be a lousy partner, driver, dancer and cook but she can really mesmerize a room filled with marketers. You may be marginally interested in her meatball recipe but it is certainly not the driver of her attention.  The more meatball recipes in her stream, the less likely she is to be unique. By mixing all of her postings into one stream, Ms. X is not managing her brand very well. Her fame is diluted.

    Moving Toward the Middle.

    This is another example – common a couple of years ago when social computing companies were all trying to match each other’s feature sets – where everyone is moving toward the middle. It should not be. LinkedIn is about business relationships. Twitter is about real time info and immediacy.  Facebook is about friends and self and entertainment.  As Facebook moves to the middle, attempting to be all things to all people (brand fan pages included), it becomes like fruit cocktail — that can of fruit in the back of the cabinet where everything tastes like peaches. As quickly as Facebook is growing, I’m afraid it will mirror Google and turn into nothing more than an amazing advertising platform. (And then divest.) Peace!

    What Really Matters…Is Everything.

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    If I’ve read it once, I’ve read it a hundred times.  “Use service X and it will free you up to do what really matters.” 

    I first ran into this strategy when working on an AT&T Outsourcing business years ago. It was probably a precursor to hosted web services with some consulting thrown in.  A typical B2B strategy, this presumes ancillary business practices aren’t as critical as is your main business. Cheese makers make cheese, it’s their passion. Retail, shipping, human resources, marketing are plumbing; some might say secondary, and as such outsourceable. Or automatable.

    Bullshit.

    Trying to automate or outsource parts of your business so you can do something you are “good at” is a cop out. You need to be good at all parts of your business. It’s the required heavy lifting that gets you to success.  Everything is important. The entire body must work together. Every vessel. Every organ.

    Where it gets to be fun for me is when a client sees this and uses brand strategy to infiltrate each and every department. This is how to build corporate muscle. When every department is valued and working toward the same end it build antibodies, to carry the metaphor even further.

    Don’t outsource anything. Not your social media. Not your hiring. Not your financial oversight.

    Love and build your entire business.

    Peace.  

     

    Data and Product Recalls.

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    Every product purchased in a store using price scanners creates a record. More often than not that record is tied to a credit or debit card.  Consumer products befouled in manufacturing, like liquid children’s medicines from McNeil Consumer Healthcare, or collapsing baby strollers, bad tomatoes, sticky brake pedals, etc., also create purchase records.  Why not use these records to alert purchasers to recalls. I’m no analytics nerd but this seems like a no-brainer.  

    The way recalls are handled today is messy.  And, dare I say, not particularly transparent (sorry for the markobabble).  The ability exists for marketers to do one-on-one contact with purchasers of faulty or dangerous products.  No longer is there a need to scare everybody. No longer the need to make us check our cabinets and refrigerators for lot numbers. No more hiding recall information on website FAQs pages. No more expensive newspaper ads filled with obfuscation. 

    Let’s use data collection for good, not just for cross-selling, up-selling and McPestering.  Good data.  Good boy.  Roll over.  Peace!

    Control Your Marketing

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    Loss of Control is one of marketing’s 6 most motivating selling strategies. (I haven’t locked down on the other 5, though “save money” and “better service” have to be included.)

    I wrote a brief once for a home healthcare service catering to well-heeled, upscale individuals who didn’t need to rely on Medicare for payment. I called the target “Captains of the Castle,” a mixed metaphor indicating that not only were these people heads of household from a financial standpoint, they were one-time captains of industry.

    Let’s just say, back in the day these individuals were powerful, proud and in control.  Now in their 70 and 80s, Captains of the Castle are still proud, but in failing health and no longer powerful or running the show. (You’ve seen this black and white movie, no?)

    Most healthcare marketing in the home care category targets the caregiver. This brief was aimed not at the caregiver but at the care recipients — the Captains. The promise or offer was a specialized homecare program that gave them control back.  Control in their own homes.   (In fact, the brief generated a new product idea.) 

    As you are writing briefs and segmenting your targets, don’t forget to ask yourself about the loss of control as a motivator.  And, as you are selecting your media, message and proof, don’t cede control to the consumer.  Media Socialists think that’s the haps and they are largely wrong. Peace!

    Leo’s Brilliant, Mistimed, Cloudy Future.

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    Today there will be lots of stories written about Leo Apotheker’s plight at Hewlett-Packard. And of the HP board, and potential replacements for Mr. Apotheker. One lens I like to look through when doing strategic planning is the “history” lens.  When viewed over time – a long time – will the company, product or leader have made a historic contribution?  Typically, that means looking at strategy rather than tactics.

    In Mr. Apotheker’s case, it is clear to me that his PR handlers were at fault.  His moves to purchase Autonomy, shed the PC and tablet business, and stop investing in WebOS were historic moves — looking well beyond the dashboard.  One might say, and say accurately, that when you put a software person in charge of a mixed media multinational, the road to the future is paved with software.  Mr. Apotheker saw deteriorating PC sales, reduced profitability in services (the cloud is getting not only bigger, but smarter), and device manufacturing (especially sans Steve Jobs) under enormous cost pressures. Think device kudzu.  Rather than stay and fight for integration of solutions hard and soft around his OS — which code-wise may not have been ready for primetime and perhaps at risk from new OS pushes by Microsoft and Apple — he decided to retrench with eye toward the future. Very ballsy.

    The cloud is the future. Device complexity will reduce over time and when it does, the cloud, run by software, will become the electricity of business. And that is where Mr. Apotheker was going. Sadly, he had a lapse in judgment and bad guidance and announced it at the wrong time and inelegantly.  Como se billions in lost shareholder value?  Some strategies (read historic) are better left unannounced. Is that not so, Mr. Jobs? Peace.    

    Cashiers, Conversationalists and CMOs.

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    There are two factions in online marketing these days: Cashiers and Conversationalists. 

    Cashiers

    Cashiers care about the sale. They have the small dashboard that tracks click-to-sale and spits out an ROI calculations. Cashiers can’t wait to wake up in the morning to see the new numbers. They are in to usability testing, shopping cart abandonment, media optimization and other measures but their interest and energy pretty much stops at the sale. The buck stops there.

    Conversationalists

    Conversationalists are a daintier.  They immerse themselves in the process.  They want to make friends.  (Like the kid with the runny nose in grade school, sometimes they just walk right up to you and ask “Do you want be my friend?”)  In my world, conversationalists are actually more likely to find truths and insights about their products and win in the long term.  All the pop marketing gurus today are into the conversation. They are not technologists, thank God, so they are easy to listen to and learn from but their failing is that they’re a little too caught up in the sausage making, not the sausage tasting.

    CMOs

    For a CMO it’s great to have both types of people on staff.  A Yin and Yang thing. Cashiers are imperative for sales now. Conversationalists care about future sales, and loyalty and sale predisposition. But it’s hard to take predisposition to the bank. Good CMOs have a brand plan in place that gives direction to the factions.  A brand plan is informed by the work and findings of both factions, but it drives them.  A brand plan helps Cashiers and Conversationalist organize “claim and proof” in a way that creates Return on Strategy near and long term. Peace!

    Black Eyed Peas for Volkswagen.

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    Pop quiz.  You are thinking of buying a new car.  A Volkswagen Beetle is among your choices. For the sake of this exercise, let’s say you are 25 years old.  Here’s a marketing multiple choice:

    A.     You’re invited to a special free concert with the black Eyed Peas performing. There are Volkswagen Beetles positioned at the entry points to the concert.  There is mad signage and car pictures projected on screen throughout the concert but the performers never mention the words Beetle or Volkswagen.

    B.     You like the Black Eyed Peas and buy a ticket to their concert. At the show there are no physical cars on display, but there are large display ads tastefully arrayed around the concert space showing car, brand and promise.

    C.     Fergie, in workout clothes, is photographed leaving the gym of her personal trainer. She looks particularly aglow and has a hand darting around her bag looking keys — about to get into her new black Volkswagen Beetle.

    I can tell you what an event marketing company would pick. And charge. I can suggest what a typical social media company would select (all three, they rarely care.) And I can tell you what a PR company would prefer. Heavy on one, but all three would generate fees.  There is only one true answer here. And that answer is fundamental to marketing. And you all know which one it is. Marketing is hard. Peace!

    PS. Answer “A” actually happened… and it’s not correct.

     

    Sears Spanish Inquisition

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    sears

    “All Spanish all the time” is the business strategy I have recommended to Sears in this blog a number of times. Once again, quarterly earnings are out for the Sears Holding Company (owner of Kmart) showing it is hemorrhaging money. You can’t continue to lose a billion plus a year and stay a viable business (listening Blackberry?).

    Think about the country. Think about the state of retailing…with more and more sales conducted online and delivered via the mail and package carriers. Where does this leave Sears? And all retailers, for that matter.  In need of bold moves. All Spanish speaking today, is a first-mover strategy. And frankly a no-brainer. If it doesn’t happen in 2014 it will happen at some point. If not Sears or Kmart, someone. The purchasing power of Spanish speaking Americans is too great. The growth rate of this segment of the pop. too great. 

    Sure stores will have to close. But the idea is solid. The market is solid and the move will have unexpected positive impact not only on the expense side of the ledge, but also the growth side…with new opportunities for other services hitting this massive part of the economy.

    Edward S. Lampert, CEO, pull that Band Aid off right now. I smell a Fortune (cover) in it for you. Peace.   

    An Unexpected Show of Caring.

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    My wife does Yoga at Fitness Incentive in Babylon a couple of mornings a week and she just retuned asking if I would smell her.  The instructor, you see, had sprayed some lavender on her at the end of today’s session, saying something about its soothing properties.  This was an unexpected show of caring on the part of the instructor. 

    Marketers would do well to learn from the instructor and offer unexpected demonstrations of caring to customers.  Bob Gilbreath, chief marketing strategist at Bridge Worldwide, is building a brand and a movement around Marketing with Meaning.  Is an unexpected show of caring marketing with meaning?  Most certainly.  

    Expected

    When leaving a store and someone says “thank you for shopping at ____” it’s nice, but not unexpected.  While at a restaurant with spoon to mouth and the proprietor sticks his smiling face in asking “Everything alright?” — this may be unexpected but it is not a real show of caring. While at Mary Carrol’s Pub and the bartender buys back after your third quaff, unexpected?  Not really. Good business, yes, but not necessarily a show of unexpected or caring. 

    Caring and thank you are two different things.  The latter requires thought; it’s a skill actually. Twitter can be used as an example of unexpected caring, used correctly.  A coupon dispenser is not caring.  Customer service is not caring, it’s the price of doing business. When Steve Jobs, as was reported in the news yesterday, answers an email to a customer it is unexpected. And it’s caring.   

    Let’s get on with it marketers!  When you leave the building each day ask yourself “What did I do to show a customer – not every customer – I care about them in a surprising way. Lavender anyone?

    Don’t Market To The Middle.

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    Adaptive learning is an educational practice that tailors lessons to the learning level of each pupil. It is the opposite of the all too common pedagogical practice of “teach to the middle of the class ” where lessons are created for average, middle of the class students, not the highest or lowest performing. (Talk about no child left behind?) Adaptive learning is really individualized learning. As a term it has been taken over by technologists who employ computer software to identify a student’s learning level, via a battery of questions, and then create a learning scheme that best fits each student. It’s good pedagogy.  

    Responsive design is the new “big thing” in web development. It creates a valuable, though often singular, web experience for users regardless of the device they’re using. And we know there are lots of devices and operating systems out there. There’s big money in responsive design today.

    When we apply the tenets of adaptive learning and responsive design to digital marketing we recognize there is a long way to go before we’re not marketing to the middle of the class. Data people and ad serving jockeys will tell you they can serve up a special pieces of creative based upon user behavior or website visits, but this does not tell you where the customer is along the continuum of a sale (awareness, interest, desire, action and loyalty).  In offline and online we are still profoundly marketing to the middle of the class.

    Brand love and brand loyalty will ebb through boredom. Through repetition. Marketers who treat their most loyal customers like babies are forgiven…up to a point. (America knows that “15 minutes can save you 15% or more on your car insurance.”)  So what’s the 21st Century Challenge for marketers?  Adapt to your target. Be responsive to time and place.  And stimulate them with brand positive messages and deeds. But most importantly, do it in support of a brand strategy — an organizing principle that marries what you do well with what customers want.

    Peace!