Marketing
Editing Cancer
Ad Agencies and Innovation.
Innovation in selling has always been with us. Half driven by science, half driven by art, through the years marketers have looked for more cost-effective, efficient ways to sell product and out-sell competitors. These days the web, digital production and mobile have tossed into the innovation crucible a number of exciting new tools. It’s a new day. An example:
I saw a TV spot last night in which the screen was split into four quadrants — each had a picture of the same young lad with four different style glasses on. If you want to sell glasses, this is a very efficient way. It’s a trial application, a comparison application, and perhaps, should they put prices in each screen, a price/value application. Did someone think of this as a tool in the 80s? Probably. Could they do anything about it then? Elegantly? Nope.
This is what excites me about marketing technology or marketing tech today…the possibilities. And the ideas can come from anywhere. But my bet is that this idea came from an agency? Some shop like Anomaly, Droga5, BBH, Mother, or R/GA. It may have come from an innovation group, but my money is on a shop. Agencies have the most creative people. Innovations groups tend to have facilitators and rent-a-cops.
Agencies know the future is new marketing apps, buildables and technologies in addition to lovely advertising. Agencies, if used properly, are way more valuable than they used to was. A new whoosh is here. Let’s use it. Give your agency the opportunity.
Peace.
Ever Feel Cornered?
Kathryn Ruemmler, the current white house counsel, is leaving her post in May. A long running presidential advisor, one of her more highly rated skills is her “uncanny ability to see around the corners that nobody else anticipates.”
Lots of marketers, myself including, tell stories about Steve Jobs and how he didn’t listen to research on what consumers wanted next. Jobs would tell consumers what they wanted next. The oft heard “we don’t skate where the puck is, we skate to where the puck will be,” a Wayne Gretsky-ism also supports this forward looking approach. Seeing around the corner is more than a skill. Tainted Tylenol. Spittle-covered pizzas. Ignition keys that fall out of the steering columns. All examples of corners that couldn’t be seen around. Business needs to be prepared for the corners. Those are on the negative side of the ledger; there will be many positives around the corner as well.
Brand strategy is built upon what customers want and what a brand is good at. One idea, three proof planks is the organizing principle which yields business success. The planks look backward and forward. Coca-Cola is about refreshment and refreshment is way more than high fructose corn syrup, for instance. Forward looking.
When you evaluate your brand plan ask yourself if it is built to see around corners. Peace.
Amazon Brand Strategy. A New Claim.
Yesterday I parsed the Amazon brand strategy explained by Shah Mohammed while offering that the “everything store” was not the most powerful claim Jeff Bezos and team could have made. It wasn’t bad mind you, but it left some value on the table. Today I promised to come up with a claim that trumped “everything store.” The key to branding is to set the strategy (like setting a hook) with proof. Or what I call a proof array — three proof planks.
We discussed yesterday that the three proof planks were extraordinary convenience, comprehensive selection and lower prices. A claim is best supported when the planks are closely linked to the claim. In harmony with the claim. Assuming these planks are right, and they certainly look right, how might we strengthen the claim?
I would look at the word store. Sure, everyone knows what stores are. That’s good. But not everyone has positive associations with stores. What about a word like bazaar. It’s a bit more communal, sensory and exotic. A different kind of experience. And Amazon is certainly a different kind of shopping experience. Bazaars are known for bargaining, so it delivers the low price story. And it hits comprehensive more directly as well.
When brand manager are looking to develop programs to further create brand value (and sales), I bet they will have more fertile ground to play on “bazaar” than with “store.”
Always thinkin’.
Peace.
Ready, Shoot, Aim the Arrow
What is it about this marketing stuff that is so hard? Sergio Zyman once said marketing is about “Selling more product, to more people, more times, at higher prices.” Why can’t we just focus on that?
Straight Outta Amazon!
When your corporate culture and work practices are skewered on the front page of The New York Times, you have two paths forward: respond defensively or not al all. Jeff Bezos and Jay Carney opted to respond. With a tail lowered a few degrees, Mr.Bezos smartly wrote his employees telling them the characterization of his company as a harsh place to work was, in his mind, inaccurate. And in some of the cases cited in the article, very un-Amazonian. Anyone, said he, who feels they have been wronged should “write me directly.” He also suggested, harsh working conditions and lack of empathy will not be tolerated. Mr. Carney brought this internal memo to the NYT and public. Those mea culpas out of the way he went on to say the story was inaccurate.
The second approach would have been to do nothing. Nothing externally. That’s the approach I would have taken. It’s a big company. Nasty happens. Hard work happens. Has anyone ever worked at an ad agency? Doh! Bad managers are just like bad people, they exist.
By going public, extending the news cycle another day, the NYT ended up gathering more stories to publish. Women Bill Cosby raped began “coming out” when the crimes became topical. Hard work at Amazon is not a crime. Slashing a percentage of workers each year is not a crime – it’s Jack Welchian.
I suspect Jay Carney counselled Mr. Bezos to lay low and he did not abide. Or, it could have been the other way. Either way it was a learning moment. Either way Amazon will rule the world (silly drone idea aside) in 10 years.
Peace be up on (not “upon”) you. (Saw Straight Outta Compton last night. Crazy, crazy great movie!)
Digital Agencies Less Profitable?
Twitter and Skype just made executive moves at the top in efforts to take their fast growing, oft used businesses in the direction of profitability. Both companies are moving past their infancy. The venture partners helping drive the strategy of these two exciting, brilliant tech companies are pushing for stronger, more “grown up” management.
This makes me think about digital marketing shops — other businesses coming out of the infancy stage. Do big holding companies like IPG, WPP, Omnicom and MDC Partners cut digital companies more slack than traditional marketing companies? My bet is they do. The young, filled-with-promise always get the benefit of the doubt. Plus, I’m guessing the financial people at the holding companies don’t quite know how to manage profitability of digital clients just yet. Because digital is the fastest growing sector in marketing, profit blemishes are being masked.
Digital business people grouse that they don’t get a seat at the big person table when it comes to planning. Often, the “idea” is already cooked when the didge shops are brought in — the big expensive thinking complete. What is left is the digital translation, a degree of digital creativity and execution… much of which can be performed by lower cost worker bees. If this thesis is correct, then the per capita payroll of a digital shop is lower than that of a full-service ad shop. This is why the profit margins are lower, why digital shops don’t scale past new business, and why they are not getting a seat at the big table. This will change, but will probably lag the pace of change at companies like Twitter and Skype. Peace!
PS. RGA does not fit into this mold. They have strong highly paid talent throughout. They are the exception.
Mad About Agency Data Analysts.
Back in the Mad Men days when David Ogilvy and Marion Harper were roaming the halls amidst the think Pall Mall smoke, whenever someone needed data, the research department was called in. Research was important. The quants were the drivers of insight back in the 50s — when American Demographic began publishing (I think).
Today there is nary a research department to be found. It’s the planning dept; either account or brand. Insights are the purview of today’s planning dept. BUT…
A number of marketing plans I have written for clients recently have included a line item for the hiring of a data analyst. Or a half of a data analyst. I was reading a story in the NYT today of missing black men, in the 25-54 demographic, and it dawned on me that data analysts are really needed at ad agencies. When I speak to heads of planning — at BBH and the like — they are interested in “quants” and data analysis, but it is not a core need. Maybe, when they’re working in digital it gains importance. But the top people are not jockeying numbers as a day job. (And they shouldn’t.) They should however, dial up their reliance on data analysts. And prep them with insights. It is an important component (pronounced COM-ponent) of today’s advertising. Use data to think like an ad guy.
As Mad Men leaves us, perhaps the research dept. of yore will make a comeback. Peace.