Friday, December 11, 2009

College Students: Facebook Only Game in Town

Not surprisingly, Facebook is the social network of choice for college students in a study by Anderson Analytics.
http://www.marketingcharts.com/wp/wp-content/uploads/2009/12/anderson-analytics-cool-lame-social-networks-facebook-male-female-college-students-december-20091.jpg
College Students: Facebook Only Game in Town

It makes sense that one network would be seen more positively and used overwhelmingly by specific market segments. After all, a social network is like an online party. Why would choose to go the lame, barely attended party? You wouldn't if you were typical. So someone has to win, and that is Facebook.

Wednesday, December 9, 2009

Celebrity Endorsers -- Quick Gains for Awareness, Large Reputational Risk You Don't Control

This just in....celebrity endorsers are a risky marketing strategy. It certainly works. Tiger Woods as your spokesman was a sure way to gain awareness. But guess what? All celebrities are human, and this past week only reinforces this. It can be a good strategy, but have a plan when your spokesman beats his wife or crashes his car after a bender in Vegas.

It can be risky to place the reputation of your company in the brand of a celebrity. You can't control their actions and that is a direct risk to your business. I prefer to control as many of the risk factors that are controlable. Some aren't controlable. But your company's reputation should be.

Its not a surprise that
Pepsico would make this move, especially because the product wasn't that good and I suspect wasn't selling to projections.

PepsiCo Drops Tiger Woods Drink

PepsiCo Inc. is dropping a Gatorade drink named after Tiger Woods from its lineup, and television ads featuring the golfer haven't been aired since a storm of publicity erupted over his car accident last month and subsequent revelations about alleged extramarital affairs.

Mr. Woods has been at the center of a media frenzy since he crashed his Cadillac Escalade outside his Florida home Nov. 27, setting off a chain of events that has opened his personal life to scrutiny and led him to admit unspecified "transgressions." For nearly two weeks, news media have continued to closely monitor Mr. Woods and the comings and going of his family.

On Tuesday, Mr. Woods's mother-in-law was treated for stomach pains at an Orlando-area hospital and released. Barbro Holmberg, the mother of the golfer's wife, Elin Nordegren Woods, is staying with the Woodses during a visit from her native Sweden.

A second 911 call in less than two weeks comes from the home of Tiger Woods. The golf superstar's mother-in-law was admitted to the hospital for stomach pains and has been treated and released. Video courtesy of Fox News.

Golfing great Tiger Woods is turning his back on the media, now clamoring for information about his car crash and alleged affairs. It could be a very bad move, according to the News Hub panel.

PepsiCo said Tuesday the move to drop its Gatorade Tiger Focus sports drink is part of a broader overhaul of its Gatorade brand that has been in the works for months, and isn't connected with Mr. Woods's recent troubles.

Advertisers haven't aired TV commercials featuring Mr. Woods since shortly after the scandal broke, according to monitoring data from Nielsen Co., which scans the prime-time, evening news, late-night and sports telecasts on major broadcast networks and 19 cable networks. The Golf Channel isn't included in Nielsen's tracking.

Most recently, Gillette ran a 30-second TV spot including Mr. Woods on Nov. 29, Nielsen said. That ad, which also features baseball player Derek Jeter and tennis player Roger Federer, aired eight times in November. It was the only ad including Mr. Woods that Nielsen recorded during the month, said Aaron Lewis, a spokesman at Nielsen.

It isn't clear what, if any, other commercials featuring Mr. Woods might have been in the works or slated for broadcast at the time of the accident.

Gillette, a unit of Procter & Gamble, hasn't pulled any ads, said Michael Norton, a Gillette spokesman. "We are running our media schedule as planned," Mr. Norton said. He said Gillette has one ad in rotation that includes Mr. Woods, and that he doesn't know when it is scheduled to return to the air. "We haven't made any changes at this time to our marketing strategy," he added.

PepsiCo said it is discontinuing Gatorade Tiger Focus and some other Gatorade drinks to make room for a new lineup of products focused on athletes and sports performance. A company spokesman said the new offerings will be released soon, but declined to provide specifics.

"We decided several months ago to discontinue Gatorade Tiger Focus, along with some other products to make room for our planned series of innovative products in 2010," Gatorade spokeswoman Jennifer Schmit said in an e-mailed statement.

Gatorade Tiger Focus hasn't been a strong performer; volume in the first 10 months of this year was down 34% from a year earlier, according to Beverage Digest, an industry publication and data service. Tiger Focus accounts for about 4% of overall Gatorade volume, Beverage Digest said.

Ads and promotional matter featuring Mr. Woods continued to run on sponsors' Web sites Tuesday. A section on the Nike Inc. Golf site dedicated to Mr. Woods continued to display Web videos featuring the golfer, as well as his line of apparel, balls and golf clubs. "Being the best takes dedication, patience and insight. For Tiger Woods, these are the pillars of his approach," the site read.

Representatives of Nike, Gillette, Electronic Arts and laser-eye surgery chain TLC Vision Corp. said Tuesday that their sponsor relationships with Mr. Woods hadn't changed. TLC Vision continued to feature Mr. Woods prominently on the homepage of its Web site.

Among other companies with which the golfer has endorsement deals, jet-rental company NetJets said in a statement Monday that it continued to support Mr. Woods. Sports-collectible retailer Upper Deck and phone giant AT&T declined to comment. Consulting firm Accenture and watch maker Tag Heuer, a unit LVMH Moët Hennessy Louis Vuitton, couldn't be reached for comment.

Why Do Illegal Drugs Have Such Better Names Than Legal Drugs?

Have you ever noticed this? There are all sorts of creative names for marijuana, methamphetamines, cocaine, etc.

What about high blood pressure medicine or cancer drugs? Here's a list of the top 200 prescription drugs. A sample from the list:
  • Avodart
  • Byetta
  • Cardura
  • Cozzar
  • Tricor
And the list goes on and on with non-existent word names that, with rare exception, tell you nothing about what the drug actually does. No wonder drug makers need to spend million and millions on advertising. If they didn't, why would you ever remember the name Vytorin?

There are a couple of drug names that are better than the others.

Flowmax for one. It just sounds like a drug that helps you pee.

And Plan B. Well, if you didn't want that pregnancy......you are looking for a plan.

So here's my idea for the pharmaceutical industry. Get a bunch of college guys who use drugs from time to time and create a bunch of real world creative teams to name your prescription drugs. The results can't be any worse. And you can probably pay them in pizza and beer.

Mary Jane, reefer, speed, weed, crack......these are much better names and names inspired by the use and experience of the actual drugs. I am certain that my team would have come up with a better name for Viagra. Liftoramus or Erectilomax perhaps. They couldn't do worse. Let's give it a shot.

Friday, November 27, 2009

Fast Company Article -- Mr. Social: Ashton Kutcher Plans to be the Next New-Media Mogul

Fast Company is the best magazine going right now. This article is very good and worth a read. The web is crushing all kinds of business models. And only those who can think across businesses, industries, platforms and conventions will adapt and succeed.


Mr. Social: Ashton Kutcher Plans to Be the Next New-Media Mogul

By: Ellen McGirt
Ashton Kutcher, Katalyst HQ, Production, Web

DUDE, WHERES THE CASH? Here's what scares Kutcher: "When I have a conversation with someone and they say, 'I'm not worried about monetization yet.' " | Photographs by Jill Greenberg

How Ashton Kutcher is pioneering a new kind of media business, bridging Hollywood, technology, and Madison Avenue. Really.
EnlargeAshton Kutcher, Katalyst HQ, Production, Web

Photographs by Jill Greenberg

EnlargeJason Goldberg, Sarah Ross, Hot Pockets, Nestle

ON THE JOB Everyone at Katalyst has a role in the Katalyst HQ mockumentary Web series, including cofounder Jason Goldberg, left, and new-media director Sarah Ross, above right. This year's sponsor is Nestlé's Hot Pockets, below right.


Related Content


I've walked into the middle of a swine flu outbreak.

"Here, put this on!" Ashton Kutcher bounds from around the corner in his loft-style Hollywood office, wearing a paper face mask and holding another one. "You can choose whether to wear it or not, but we all are. We can't afford to get sick!" Within seconds, I am surrounded by a fast-moving herd of masked Flip-cam marauders, filming my every move. Perched on the stairs. Popping out from the office kitchen. Uh-oh. "Seriously!" says Kutcher, with a goofy grin around his mask. "Swine flu!" He points to the mask in my hand. Punked and defeated, I put it on. "Awesome," he laughs.

I've walked right into an episode of Katalyst HQ, a Web-based video serial that puts the staff of Kutcher's production company, Katalyst, through a loosely scripted, hopefully funny parody of its workday. The current 16-week "season" is sponsored by Hot Pockets, the savory pastry item whose creators want us to "eat freely," unencumbered by a knife and fork. (Truly. The brand manager told me that.) The program is a collaboration between Katalyst; Slide, a Web company founded by Max Levchin of PayPal fame; advertising titan Publicis Groupe; and Nestlé, which owns Hot Pockets. It has been a huge hit, with millions of reposts of the videos on Facebook, each one reaching an average of 65 friends.

"There is nothing really like this out there," says an obviously thrilled Mike Niethammer, Nestlé's group marketing manager. Niethammer, who reviews the script concepts, chuckles at the report of my punking. "I did throw out a Hot Pockets mention," I say. "Nice," he laughs.

The Katalyst HQ series illuminates what Kutcher's production company wants to become: not just a home for his television and movie projects but also a go-to source for brands looking to deploy what's called "influencer marketing," a squishy hybrid of entertainment content, advertising, and online conversation that finds its audience via video, animation, Twitter, blogs, texts, and mobile. "Entertainment, really, is a dying industry," says Kutcher. "We're a balanced social-media studio, with revenue streams from multiple sources" -- film, TV, and now digital. "For the brand stuff, we're not replacing ad agencies but working with everyone to provide content and the monetization strategies to succeed on the Web."

Kutcher, 31, is not exactly the image of a business visionary. He's still best known for his eight seasons as Michael Kelso, the pretty-boy lunkhead from That '70s Show, and as the executor of cringe-worthy celebrity pranks on the hit MTV show Punk'd. (Not to mention his marriage to Demi Moore.) But his future, Kutcher insists, will be all about business. He intends to become the first next-generation media mogul, using his own brand as a springboard. "Punk'd is part of who he is," says Sarah Ross, Katalyst's director of new media. "We're using his brand as a syndication system."

If this all seems far-fetched, hang in there. Mask off, Kutcher holds forth nonstop on his multiplatform plans. He talks of Web trending, content pirating, and the fact that Twitter has yet to make any money. "If we in this industry don't figure something out, we're going to go the way of the music industry and be cannibalized by the Web," says Kutcher. "It's really a war to make money."

It's not just talk. Some 3.9 million people follow Kutcher on Twitter (@aplusk), and he has nearly 3.3 million Facebook fans. Those numbers have helped attract corporate clients beyond Nestlé -- including Pepsi and Kellogg -- and supporters such as Oprah, Larry King, and former News Corp. No. 2 Peter Chernin.

Kutcher and his partner, Jason Goldberg, spent the better part of two years courting the wizards of Silicon Valley, converting them from teachers and skeptics to friends and allies. For all their pranks, Katalyst's digital division can claim one thing most other social-media businesses can't: profitability.

The episode I walked into has a Thanksgiving theme, and Kutcher tells me he plans to let loose a live turkey in the office. "Then everyone will be worried about bird flu!" he says. This from a future media titan? Still, even if Kutcher turns out to be more style than substance and Katalyst doesn't become the Next Big Thing, Kutcher's experiment points toward a new model for the evolving media business that connects Hollywood, tech, and Madison Avenue. No kidding.

From Issue 141 | December 2009

Tuesday, November 24, 2009

My Photo of the Week -- Godly Light

SmugMug My Photo of the Week -- Godly Light

Cartagena, Colombia

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Friday, November 13, 2009

irishtimes.com:Top of the popes

The Pope has a new album out for Christmas. One that he speaks and sing on. Perhaps this is a smart way to expand the Pope's popularity and broaden his image....I guess.

I don't know. Seems like a weird move by such a conservative Pope.

Bring back JP II.

From today's Irish Times:

Top of the popes; Pope cuts new CD for Christmas

ARTS:TAKE SOME Gregorian chant, add in the sumptuous strings of the
Royal Philharmonic Orchestra, top it off with the voice of Pope
Benedict XVI, mix the whole thing up in the historic studios of
London's Abbey Road, and what do you have? A Christmas chart-topper?
With its suspiciously New Age, sumptuously melodic feel, the Pope's new
record, Alma Mater, might indeed do well, writes PADDY AGNEWin Rome

http://www.irishtimes.com/newspaper/features/2009/1112/1224258652585.html

Colin Barlow, president of Geffen Records UK, at the launch in the Vatican on Tuesday, is making no predictions right now, but he does expect this record to sell “quite a lot of copies”. He thinks that in this time of recession times, Alma Mater offers a message of hope and inspiration.

So what is going on? Has this rather crusty, Teutonic old Pope decided to go funky? Well, no, not quite. What we have here are eight tracks which cleverly interweave Gregorian chant with rich modern orchestration, topped off by the Pope, who speaks on seven of the tracks and sings on the other. On track one, Sancta Dei Genitrix, the Pope himself explains just what this record is all about, saying: “Faith is love, and for that reason it creates poetry and music. Faith is joy because it creates beauty. The great cathedrals of the world are not medieval monuments but rather houses of the living where we meet God and we meet one another. Great music, like Gregorian chant or Mozart, is not something of the past for the Church, but rather something living which is an expression of the vitality of the liturgy of our faith.”




Wednesday, November 11, 2009

Good Article in Ad Age

Transparency and Chemistry Key to CMO Longevity

Speros, Chow, Judge, Addicks Talk Shop at ANA Roundtable

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CHICAGO (AdAge.com) -- Get a bunch of longtime chief marketing officers in a room and you'll hear one thing for certain: lots and lots of questions about staying power. The Association of National Advertisers CMO Roundtable this past weekend was no exception. The group, comprised of Best Buy's Barry Judge, General Mills' Mark Addicks, Con Agra's Joan Chow and Fidelity Investment's Jim Speros, underscored the importance of transparency, relationship building and making sure you're right for the job in the first place.

First of all, Mr. Speros said, you've got to realize that the clock is ticking. "Velocity is key, because you don't have a lot of time to make a difference," he said. "You have to get in very fast and make relationships with the right people, understand the hot-button issues."

Mr. Speros said it's important to have representatives from all the relevant teams -- distribution, product, regulatory, legal -- and make sure they all have a seat at the table. Within that dialogue, he added, great CMOs can be indispensable as "the voice of the consumer within your organization."

Con Agra's Ms. Chow said she's also worked hard to support transparency within her department, keeping executives abreast of what's going on, and holding open meetings. "Our CEO [Gary Rodkin] didn't want to hear about commercials by seeing them on TV," she said of the state of affairs upon her arrival almost three years ago. Ms. Chow responded by setting an hourly meeting with Mr. Rodkin each week, giving a list of high-level projects or ideas. Her team initially worried that projects would be killed before completion, but it's been more about keeping the head honcho up to speed. "Even if he disagrees, he allows us to overrule him," the CMO said. And it's helped open up the conversation elsewhere in the c-suite.

Ms. Chow also said she gave Con Agra's CFO an open invitation to attend her meetings. He eventually joined them for a day in the field, and has now become a key advocate. When the marketing department started presenting social-media ideas, the executives asked to be trained in Twitter and Facebook. She also opened her doors to criticism. After finding an office freezer full of competitors' products, she started asking people why they weren't eating Healthy Choice, and why they hadn't told anyone before.

"If you can't inspire employees to be your brand champions, then you can't inspire anyone else," she said. Following sweeping quality improvements, Ms. Chow has conducted follow-up freezer inspections. While "there are still a few stragglers," she's helped spur a number of conversions.

All four CMOs stopped short of saying that the office should have full ownership of the P&L. While it's possible at package food companies, it would be unrealistic at Best Buy or Fidelity. Instead, Ms. Chow said, "You have to be accountable for your company's investment in marketing."

Mr. Addicks of General Mills took it a step further. "I see myself as the person who has to be a stopping point on a brand if it's not doing well," he said, adding that as CMO he also needs to know the areas of opportunity for General Mills.

Ultimately, the ability to keep a CMO job is in the marketer's own hands. But an important part of that is making sure you land in the right place. "Sometimes it's a matter of chemistry," Mr. Speros said, adding that cultural fits are important to evaluate before walking through the door. And ask yourself hard questions. "Ask if you're qualified, credible" for the position, he said.

This Week's Photo -- The Tractor

SmugMug This Week's Photo -- The Tractor

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Wednesday, November 4, 2009

My Photo of the Week -- Grand Central 3 PM Saturday

SmugMug My Photo of the Week -- Grand Central 3 PM Saturday

I will share some of my photography on my blog each week. Hope you like them.

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Thursday, October 15, 2009

Bad Names for a Business

Coming up with a good name for a business is not easy. Coming up with a mediocre name is fairly easy based on how many there are. But bad business names are less common. I came across this retail furniture business in LA this week.
CostPlus World Market? I mean, really? That is the name of your business? As in we charge you cost plus a margin? Does that really get your customers excited? I guess it describes what you do though.

I am sure there are plenty more "great" examples of bad names. Share 'em if you got 'em.

Wednesday, October 7, 2009

Short CMO Tenures Reflective of Dysfunctional Companies - Advertising Age - CMO Strategy

So here's no surprise....CMOs have short tenures. Why? Well, who really knows what a CMO role is and what it is supposed to do?

Its not like the CFO. Everyone knows the CFO reports to the CEO. To whom does the CMO report? Well, it depends on the company...and what they think the CMO role is.

What control does the CMO have over all aspects of sales, marketing and communications? Sometimes a CMO oversees all three functions. Sometimes just one.

And how often does the CMO control R&D, strategic planning or business development?


Short CMO Tenures Reflective of Dysfunctional Companies - Advertising Age - CMO Strategy

It is not surprising that CMOs have short tenures. CMOs need clarity of their role. Clear mandates and control to get their job done. And understanding from leadership of what it will take to accomplish. That's a tall order, especially when you are trying to hit the quarterly numbers.

Monday, September 28, 2009

When is Going Green Pure Self Interest?

Ok, so this is a bit of rant, but I really can't stand companies that "offer" you the ability to save the environment. Am I the only one who hates the phone company and the cable company and believes their efforts to "go green" and "save the environment" have nothing to with saving the world or even helping me. Its all about saving them money, pure and simple.

Prove me wrong Verizon, Citibank, Comcast.....what is your overall environmental strategy? Where does less paper fit in? Show me what you are doing and maybe I will believe you. Why do I have to change my behavior to save you money?

But right now I am a very skeptical customer.

If it were my brand, I would be careful to show the customers that my company was changing behavior too. We don't only ask our customers to change their behavior. We change our behavior too. I would share the overall plan. I would provide metrics. I would tell customers how we plowing those saving back into better service or even more environmental measures.

Right now I am certain the savings goes straight to their bottom line. Prove me wrong and I will go paperless, tomorrow.

A Lesson for CMOs from the Health Care Reform Mess

The vast majority of Americans have health care. Maybe not good health care, but they pay money each month and believe that they are "protected."

It seems to me that the campaign to reform health care started with the high minded goal of making sure that the uninsured get access to affordable health care. This is a noble goal. One I personally support.

But from a PR/sales perspective, why would the 80% with health care want to change to an unknown system? Remember the adage of sticking with the evil you know? To get health care to those 20%, we need to convince the 80% it is somehow in their interest or, at the very least, not counter to their interests.

Remember Harry and Louise? There is a reason those ads were effective. Only now is President Obama focusing his message to those with health care, but it may be too late.

This is a good lesson for brand managers and CMOs. Who needs to accept your change in strategy? If you are introducing a shift or an extention in your brand, make sure you start by convincing your brand loyalists to support the move. And for sure, you don't want them to defect because of it.

Develop a concentric circle strategy to your messaging and put your best customers at the center.

Saturday, September 26, 2009

When Do Consumers Decide to Pick Your Brand?

Why do consumers pick certain products? When do they decide to buy those specific products? When is their purchase decision influenced?

These are all extremely important decisions for your marketing strategy. The recession seems to have scrambled the purchase decision criteria for a lot of consumers. The only way to know is to watch and ask. Research will give you the insights that will guide your strategy. There is a good article in Ad Age this week by Rick Roth.

Boost Your Brand by Understanding the Path to Purchase - Advertising Age - CMO Strategy

There was also an article in Ad Age about P&G shifting their focus and resources to in store promotion. My guess is that they have done the research and understand that in this new economic environment more and more purchase decisions are being made in store based on price and placement.


Thursday, September 24, 2009

Behind the Rebranding Campaign of Wal-Mart’s Scarlet Woman | Fast Company

This was a useless article, but much like a car crash. You can't look away. It is a sad, twisted tale. I am still trying to sort out the meaning of this story.

Behind the Rebranding Campaign of Wal-Mart’s Scarlet Woman | Fast Company

Perhaps sometimes people and companies get what they deserve.

Perhaps sometimes we need to understand that newspaper and magazine articles only tell one dimension of a story.

Perhaps Julie had the wrong values.

Perhaps Wal Mart couldn't handle an edgy woman.

And perhaps Julie shouldn't have agreed to do this article...I am not judging her behavior or performance at Wal Mart. I am just saying that if I were advising her on her PR and career, I would have counseled against doing this.

But the sun is a strong lure for Icarus.



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Avoid Sucky Presentations

How many bad presentations have you sat through? Or worse, how many bad presentations have you given?

Its not easy to put together a good presentation. What's the formula? It seems a bit like Judge Potter's definition of pornography: "I can't tell you what it is, but I know it when I see it."

So I offer three tools to help.


A How To Guide for Building A Great Presentation
The first is Extreme Presentation Method a methodology by Dr. Andrew Alba at Catholic University.

"The Extreme Presentation method is a step-by-step approach for designing presentations of complex or controversial information in ways that drive people to action. It is based on extensive empirical research and has been pilot tested among leading corporations, including Microsoft, Exxon-Mobil, Kimberly-Clark, eBay, and Motorola."
This site is a great resource. It will walk you through all the major elements you need to consider when putting together a presentation. And the advice is really good. Look at his explanation of Ballroom Presentations for Conference Room Presentations:

A presentation idiom is a form of expression with an associated set of design principles. I call the two main types of presentation idiom Ballroom style and Conference Room style. Ballroom style presentations are what most typical PowerPoint presentations are trying to be: colorful, vibrant, attention-grabbing, and (sometimes) noisy. They typically take place in a large, dark room—such as a hotel ballroom. Conference room style presentations are more understated: they have less color, with more details on each page; they are more likely to be on printed handouts than projected slides, and they are more suited to your average corporate conference room.
The biggest single mistake that presenters make—and the root cause of the PowerPoint debate—is confusing the two idioms, and particularly, using ballroom style where conference room style is more appropriate. Almost all PowerPoint presentations are given using ballroom style—yet most of the time presentation conditions call for conference room style. Ballroom style is appropriate for where the objective is to inform, impress, and/or entertain a large audience and where the information flow is largely expected to be one-way (presenter to audience). Conference room style presentations are more suited to meetings where the objective is to engage, persuade, come to some conclusion, and drive action. This covers any presentation where you want your audience to do something differently as a result of your presentation. It includes: making recommendations; selling; training; communicating the implications of research; and raising funds. Information flow in this idiom is expected to be two-way—it’s more interactive.

Pictures Tell A Thousand Words
Eliminate the 11 point font pages with paragraphs of text. There is a better way. The other presentation to look at is by Seth Godin, marketing guru. If you don't know Seth Godin you have to check out his blog.

Seth has a book out called Tribes which is a good quick read. He posted a presentation that he did about the book to slideshare and I have posted it below. This is one way of doing a presentation. It uses images to tell the story. Remember? A picture tells a thousand words? Well, I assure you that if you can do even a little of this in your presentation, people will remember it.

Seth Godin on TribesView more presentations from sethgodin.


Borrow and Steal
And lastly, I recommend the site Slideshare.
There are thousands of presentations posted by users all over the world. What better way to develop a good presentation than to look at a few dozen to see what works for you, what catches your eye, what doesn't work. You will pick up at least five good ideas by spending 15 minutes on this site.




Tuesday, September 22, 2009

Brilliant Move By Census Bureau and Telemundo

Marketers pay attention. A brilliant effort by the Census Bureau, yes the U.S. government, and Telemundo may have a big impact on the quality of Census data and the cost to advertise on Spanish language stations.

Census Bureau Uses Telenovela to Reach Hispanics - NYTimes.com


Tele-novelas, the Spanish language version of soap operas, are a tried and true format. Increasingly, the format is being used to send social messages. Recent examples include drunk driving and home ownership. The latest is an effort by Telemundo and the Census to tell Latinos that they should not be scared to give their information to the Census takers. With all the news of deportations in the last 4 or 5 years, their hesitation is understandable.

But the impact of not counting everyone is great. And yes, illegal immigrants do get counted in the Census. Telemundo is certainly acting in some self interest. The more Latinos the more they can charge for advertising. So it makes sense then, that they are covering the cost of production and airing of the program.

It will be interesting to see what kind of impact an effort like this has. Telemundo remains the smaller network. Univision has about twice as many viewers on most nights. Regardless, this is an innovative approach to solving the consistent problem of under counting Latinos in the decennial census.


Tuesday, September 15, 2009

University of Phoenix Spends $100 Million Annually on Advertising - Advertising Age - News

Traditional universities hate to think of themselves as brands. I guess it cheapens their work as educators. But let's be real. Colleges and universities have brands that must be understood, shaped, nutured, and managed....managed just like a company would manage a brand.

There have been some really interesting articles recently about the future of traditional higher education, especially given the economic crisis and the ridiculously high price of most 4 year universities. Some see this as a classic paradigm shift = business opportunity. Try this article in Fast Company: Who Needs Harvard?

The for profit higher ed market has been growing exponentially over the last 10-20 years. The Internet has only accelerated the growth.

Interestingly, these schools are as much marketing machines as institutions of learning. None is as clear as University of Phoenix. It spends $100 Million a year on advertising, but as the artcle in AdAge offers, they may not be much better at defining their brand than traditional schools.

University of Phoenix Spends $100 Million Annually on Advertising - Advertising Age - News

The for profit schools have two key problems: 1) attracting paying students and 2) establishing their credibility and quality. And success establishing credibility will help in attracting students.

But interestingly, I don't see any of these schools address this issue. Most of the advertising I see or here is targeted to their current demographic of non traditional, older students and focuses on convenience and the non traditional nature of their student body as a way to attract non traditional, older students.

Why not spend some of that $100 million to establish credibility? Until most people think online learning and for profit schools are in the same category of quality as traditional higher education, the value of their degrees will be diminished. If I were marketing one of these schools, I would create a consortium of my competitors to throw in marketing dollars and launch a campaign to build credibility. It will take years, but it is the best long term hope for the business.

Wednesday, September 2, 2009

Will Advertising Agencies Go the Way of the Newspaper Industry?

The newspaper industry is trapped in a collapsing business model. This is well documented. Technology has forced an evolution of a once solid business model that lastest a couple hundred years. Media companies are all seeking new and sustainable business model and in an increasingly fragmented and specialized marketplace where barriers to entry have been virtually eliminated.

Used to be only those with a printing press could publish. That was a pretty high barrier to entry. In fact, the web has allowed anyone with access to the Internet to be a "journalist." Many will argue about the quality of information being purpogating across the internet by professional and amateur writers. But technology has democratized publishing.

In the analog age, there were real barriers to gathering and reporting news: staff, print or broadcast capabilities, foreign bureaus, telecommunications costs, etc.



So what about Advertising Agencies? Why do we need them? And has the ditigal world changed the business model?

Agencies have always been a place to find bright, creative and strategic thinkers. You go to the full service agency to help develop you marketing strategy -- everything from value proposition to advertising campaign to media buys. And it used to be that the national firms were located in NY and each major city would have a few good firms. This is where talented people would go to find work.

But technology is blowing the model apart. Now, it doesn't matter where the client or the talened ad execs are located. You can see and talk to the client daily on your computer. You can create a virtual creative team.

And when a 22 year old can edit video on his MacBook Pro in his mother's basement, it is hard to understand why you need all the infrastructure and overhead of a large firm.

Watch the revenues of the major ad conglomorates over the next few years. I predict continued downward revenue lines. Lets see how they adapt.

Sunday, August 30, 2009

Florida Is Shrinking!

The New York Times has a story yesterday about a recent report from the University of Florida's Bureau of Economics and Business Research which found that Florida's population has shrunk for the first time since perhaps 1900 (with the exception of WWI and WWII) -- "After Century of Growth, Tide Turns in Florida"

Florida’s First Decline in Decades


The state is very interesting demographically. From a marketers perspective there are many different markets in Florida. It has one of the highest Hispanic populations in the country. The population until recent years skewed much older. South Florida is vastly different than the rest of the state - younger, more Latino. Northern Florida is as deep south as any place in the country. Like many states, Florida is not one market.

So who left? Who is coming? For marketers, the devil is in these details. My guess is that fewer laborers came to the state and a whole bunch of construction workers left. Anyone who has been to Florida in the last 5-10 years has seen the explosion in building. The collapse of the real estate market in Florida over the last 18 months is well documented.

The 2010 Census will be a treasure trove for marketers seeking to understand consumer markets and migration flows. The Pew Hispanic Center also has very good analytical work regarding the Hispanic population in the U.S.

Looks like Florida's loss is Alabama's gain. The 2010 Census should show for sure, but look for the faster growing states in the Southeast and Southwest to continue to grow.

Friday, June 5, 2009

How Should Businesses Use Social Media?

Businesses are trying to figure out how to use social media. Many are not sure what it means to their business or their bottom line. This was an interesting presentation from HubSpot that was posted on Slideshare. It is a good overview.

Thursday, June 4, 2009

Chief Marketing Officers Need To Know The Business As Well As Anyone in the Company

There is an interesting article in Ad Age about the need for CMOs to understand how their businesses work, For CMOs to Be Visionary Leaders, They Must Have a P&L Mind-set.  This seems overly intuitive, but you would be surprised.  A true marketer needs to understand all the drivers of the business, the profitability of each customer type, the cost of each product. And many do not.  

When I started at Georgetown University, I was coming from financial services.  The first question I asked was "what is the business model?"  I wanted to know how the university made its money.  Academia doesn't really talk this way, but it has a business model nonetheless.  Turns out that tuition and philanthropy are key to staying in business. 

I have always believed that a marketing strategy really is the same thing as the business strategy.  Many people don't really understand what marketing is.  Some think it is PR.  Others think it is sales.  The truth is, marketing is the strategy for selling your product, ie, the business.  Marketing is the starting point, not the end point.  In other  words, if you are doing it correctly, you begin the entire strategic process by asking: Who are our customers?  What do they want or need?  Does our product or service meet those needs?  That is where the strategic process begins....and that is marketing.

Check out the article:
Chief Marketing Officers Must Have a P&L Mind-set - Advertising Age - CMO Strategy

Monday, May 18, 2009

25 logos with hidden messages – Amazing Graphic Designing tricks! | Graphic Design Blog

This is a great post. Logos are a difficult thing to do well. Think of how many logos are completely meaningless and tell you nothing about what the company does. If you are clever enough to design a logo that reinforces your brand message, congratulations.

Every interaction with a customer is an opportunity to reinforce your brand. Does your logo project the image and message you want your customers to hold about you?

25 logos with hidden messages – Amazing Graphic Designing tricks! | Graphic Design Blog


Sunday, May 10, 2009

Beliefs - Roman Catholics’ War Over Abortion - NYTimes.com

Beliefs - Roman Catholics’ War Over Abortion - NYTimes.com

This was an interesting op-ed in the NYTs yesterday. Most people don't think of the catholic church as a business or as a brand. But it is both. And I think the "business model" (if I can say that without getting in trouble) is under attack from scrappy start ups (evangelical churches) that are more nimble and hungrier for success as well as from a sect of brand loyalists (conservative catholics) who seek to define the brand.

The church in the U.S. has been losing more people than it has been gaining for a while. You would think that an organization that has lost as many as half of its customers/clients/members would try to understand the market and figure out why it is not meeting their needs. I fear the Catholic Church has done what many good, but mistaken, companies have done. They have blamed the member..."they don't like to follow the rules; they don't understand; we aren't going to change, they must."

A brand is owned by the customers. It feels to me like the Catholic brand in the U.S. is now being controlled by the most conservative members of the church. I think that the Catholic church, at least in the U.S., is at risk of making some members feel unwelcome. Look at what the pro-life Christians are doing at Notre Dame. I mean, can you find a more conservative, religiously pious community than Notre Dame?

I respect the conservative Catholics' views and their faith, but I fear that I do not fit into their church....nor do I want to. The most conservative are trying to define what it means to be catholic in the U.S. They want stict adherence to church teaching. While I accept the teachings of the church, I do not agree with all of them. So I ask you, should I be allowed to remain in the church?

I am not saying that the Church needs to abandon or compromise on its teachings. But any large organization that has unanimity of opinion on such important issues can not be an intelligent, organic organization. That would be a cult where all personal opinion and reason is taken away.

I like to think that the Church is a big tent organization, not a narrow one with strict rules of who gets in and how they stay there. The current situation in the Catholic Church feels an awful lot like what is happening in the Republican party. It seems, the most worthy and righteous have decided that their organizations are better off being smaller and purer, than larger, more open minded and, yes, a bit messy.

My God is benevolent and tolerant one. That is the church I seek.

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Thursday, May 7, 2009

Welcome To The Reputation Economy - louisgray.com

Great post from Louis Gray today. If you don't know Louis Gray, you should. He is a West Coast blogger who is smart and insightful and has an inside line on tech.

He writes today about the importance of personal reputation. In a world where information can be created and distributed by anyone, about anything, you must manage your own reputation. And you must recognize that every action has an impact on your "brand." Every Facebook status update, every photo, every article you post.

Like great brands, the market will ultimately determine what it thinks your brand stands for, but you must do everything you can to make sure the market can see you the way you want to be seen. Your reputation is your brand. Don't mismanage it.

Welcome To The Reputation Economy - louisgray.com


Sunday, May 3, 2009

How Lehman Got Its Real Estate Fix - NYTimes.com

How Lehman Got Its Real Estate Fix - NYTimes.com

Well, if there was any question that the newspaper business is desperate, check out the article in today NY Times. The article is fine, if not a little sensationalist and focused on the personal. But this has been an increasing trend with the Times and WSJ. They now compete with Access Hollywood, CNN Headline News, and Joe Nobody's blog. So they increasingly go to content they would never have dreamed of running even ten years ago.

But that is not the point of this post. Check out the photo in the Lehman article. I find it offensive, flat-footed and not very clever. Its too easy and ridiculous.....aside from that I have no opinion.

Is it just me? What do you think?

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Friday, May 1, 2009

Michael Vick in Talks to Become PETA Spokesman - Advertising Age - News

This is perfect. PETA needs all the help it can get. It has become the Taliban of animal rights. And now they find Michael Vick, who is in desperate need of showing remorse if he ever wants to get paid to throw a football again.

Its so crazy it just may work. It will bring PR to both of them. But the question is, what are their objectives. Vick wants to be seen as remorseful that he contributed to the harm of animals. And PETA want to raise awareness about animal rights. Ok.

But this feels too baldly opportunistic for both of them to be truly successful. I could be wrong. Though we should never underestimate peoples ability to dismiss those who are disingenuous are clearly motivated by purely personal reasons.

I guess we'll see.

Michael Vick in Talks to Become PETA Spokesman - Advertising Age - News



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Tuesday, April 28, 2009

Are Stadium Naming Rights and Sports Adverstising Deals Worth It?

Citi paid something like $300 million for the naming rights of the new Mets stadium, now known as Citi Field. You will find similar deals in every city. But are they worth it? There has been lots of debate. The debate usually comes down to a fundamental debate in marketing. Is brand advertising and spending worth it? Here we are again at the ROI question.

How do you measure the return to your business of naming the Mets stadium for example? You can come up with some metrics such as new accounts, customer loyalty etc in the market, but it is usually and indirect metric, that is, you can't directly attribute the new account to the stadium name but it can be seen as helping.

As budgets get tighter, many companies are looking at their budgets and asking, is brand advertising worth it? After all, it is much easier to measure return on investment (ROI) on a direct mail piece. You know your cost. You know your response. You know your resulting sales.

How can a sponsorship of the Washington Capitals or Seattle Mariners makes sense for a business?

I think it can makes sense, but only if there are several conditions in place:

1) You must be targeting a regional audience. By definition, sports franchises are local enterprises. Yes, there are some that are national or global, but this is the exception and not the rule. And, it will be very difficult to measure any kind of tangible impact for a local sponsorship on a national or global scale. Know your audience and make your decision with the assumption that your impact will be local.

2) You must go for some kind of endorsement or key sponsorship. Advertising during Steelers games can be an effective way to reach a specific demographic, if that is your goal. But if you are seeking to benefit from that demographic's emotional connection to the team, then straight advertising misses a key opportunity.

3) The team or franchise you are sponsoring must have a strong and irrational fan base. Think about it. The Tampa Bay Devil Rays made it to the World Series, but never filled the stadium during the year. The Nationals have a new stadium and lots of attention, but the fans are just learning to love them irrationally. The Nats are not the Redskins. Those fans are truly nuts in love. That is the kind of franchise you would want to be associated with....assuming their fans are the demo you are trying to reach.

4) You must make your brand part of the team's brand family. Red Sox fans know that they are part of something more than following a sports team. They call themselves Red Sox Nation. For many, the Red Sox are part of their own personal brands/identities. With effective sponsorship and advertising deals, you can make your product part of the "family." The key is meaningful placement and enagement as well key endorsement by the organization. Another Red Sox example. Citizens Bank is a corporate sponsor. They have signage. They advertise during broadcasts, but perhaps the most effective part of their plan is when Jerry Remy, the color man for the Sox TV broadcasts, reads promo scripts and often goes off script to say what a great bank they are. You can't pay enough for that kind of promotion. But it comes from being a trusted part of the family. And it is a cycle that perpetuates itself.

5) Develop relevant content -- ideally playing off the fans and their emotional connection directly. Avis does this brilliantly in a recent ad developed for the New York market.



I don't know if the $300 million was worth it. But I can tell you, if it is a flat footed advertising deal that doesn't seek to make Citi part of the Mets organization and its fans identities, it will have been a waste of money.

Here are a few other sources of info:
http://www.nytimes.com/2000/10/29/us/denver-journal-what-s-in-a-stadium-name-tradition-or-money.html

http://www.performanceresearch.com/naming-rights.htm

http://www.ameinfo.com/61816.html

http://www.sportslinkscentral.com/sports_business/sponsorship_research.htm

Thursday, April 23, 2009

Facebook Pages Become the Newest Ad Platform

Facebook Pages Become the Newest Ad Platform -- Mashable

US Weekly, that highly popular, never admitted to, magazine of high culture, has sold a sponsorship of its Facebook page to State Farm Insurance.


Hey State Farm, I reach a highly desirable demographic. Want to sponsor me?

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Wednesday, April 22, 2009

Microsoft Plans Retail Stores-- For Real?


Anything you can do, I can do better?  Hey, Microsoft be careful.  Remember the Zune.
Microsoft announced that it will open Microsoft branded retail stores. This raises interesting strategic questions.

First, the business environment:

The OEM market is huge for Microsoft. 

Microsoft has 88% market share of operating systems in the U.S. Most people get their Microsoft operating system when they buy their new computer. The manufacturers decide which version of the operating system to install and ship. And as PCs dominate, MS OS obviously dominates. But it doesn't always go the way Microsoft wants. It is interesting to note that there has been a bunch of noise in theblogosphere about manufacturers shipping new machines with the "downgraded" XP operating system but counting them as Vista machines.

(Random thought for another post: It is interesting that Intel chips have a bigger impact on consumer choice than the operating system that is installed on the machine.)


Computer sales are slowing like everything else.
PC sales 6% worldwide in 2008 according to Gartner. But the all the gains were racked up in the first three quarters. In the Q4 08, sales dropped more than 10% compared to Q4 07. That means fewer versions of the Microsoft operating systems. So perhaps people will hold off buying new computers. Consumer direct sales of operating systems (upgrades) could grow as people try to make their computers last longer. Prices of computers continue to fall. Will the cost of the operating systems?

Microsoft doesn't have direct interactions with consumers.
MS software products are sold through manufacturers. Their software is sold through retailers over which MS has little control. With an increasing number of consumer direct products like Zune and Xbox, Microsoft may be looking for more control over the sales experience and the presentation of its brands.

Microsoft's Solution = Retail stores


Retails stores could be seen as a form of brand marketing rather than a distribution play.


Apple's highly successful stores were primarily about distribution. And as a strategy, it worked. For Microsoft, retail stores as a distribution strategy makes less sense.

In a ComputerWorld article by Preston Gralla, he writes: "Seattle Times blogger Benjamin Romano has more details. He interviewed Microsoft President of Entertainment and Devices Robbie Bach, who compared Apple's stores to what Microsoft's will be:

'Apple's approach was about distribution. People forget that when they entered their stores [in 2001], this was quite a while ago, they didn't have distribution for Macintoshes, so they created their own distribution.

'We have plenty of distribution. These stores for us are about building our connection to customers, about building our brand presence and about reaching out and understanding what works and what improves the selling experience.

'So Apple you would think of as a volume distribution play. You should think of ours as much more of a brand and customer relationship investment more than anything else.' "


This has to be about Window 7. 
Microsoft is releasing it Window 7 soon and needs that product to be far more successful than the Vistas launch. They can't risk a repeat with Window 7. So by definition the launch must be different. Microsoft was reportedly a bit puzzled about why Vistas wasn't better accepted by consumers. In focus group environments consumers really like Vistas, but in the real world, adoption was more difficult. Microsoft seemed to blame this on "unfair" media coverage. But perhaps it was a bit more complicated than that. Vistas is/was expensive. It is a memory hog. Windows XP, which was pre-installed on most everyones' machine, was running fine. So why pay several hundred dollars to upgrade to a new operating system with a few cool new features?

Will retail stores help or hurt the brand?
I don't have much of a desire to have more "experience" with Microsoft products. Dealing with the headaches they create at work seems enough. What kind of brand experience will they create? Apple is hip and cool, very mod. How do you reflect the Microsoft brand? Perhaps a key feature could be the Simulated Software Crash. It could be fun. Every 45 minutes they could turn the lights off, force customers to put down merchandise, clear the store of customers and force everyone out outside and then reopen. When they reopen the sales people could forget all the conversations they were just having.

Some think Microsoft retails make sense, like Joe Wilcox at Apple Watch, but he also raises the issue of what the stores will be like.

It seems to me that the challenge is getting people into the stores.

Why would I go to a Microsoft store if it isn't to repair my PC? What exclusive products will they have? What can I find there that I can't find at Best Buy for less cost?

What lessons can Microsoft take from Sony and Gateway Country Stores?
Didn't Sony start retail stores for brand reasons? I don't think you could call the Sony stores a retailing success, but perhaps that wasn't the point. It is about the brand lifestyle no doubt as they call the stores Sony Style Stores. And Gateway wanted to create a direct channel to deliver their unique brand to consumer face to face. The NYTs wasn't convinced it is working.

This will be interesting. I can't help but think of Discovery Stores that sought to build brand and experience while selling some products. Retail stores as a brand strategy is an expensive proposition. But if you are Microsoft, and you have the money, perhaps you view the retail loses as an investment in the brand. Eventually, somewhere, Microsoft will need to see a sales increase. Stay tuned.