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SocialTech 2010: 4 Ideas for B2B Facebook Marketing
Fri, 30 Jul 2010 08:29:57 -0700
While Facebook marketing continues to grow at lightning speed, it’s still relatively untapped territory for many high-tech marketers. Just because Facebook got its start with the college crowd in 2004 doesn’t mean B2B marketers shouldn’t be there in 2010. With that in mind, here are 4 ideas for getting more from your B2B Facebook Marketing.
1. [...] |
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Content Rules: One Key Element That Can Set Your Content Apart
Wed, 28 Jul 2010 11:26:04 -0700
One of the key messages of Content Rules—the book I’m writing with C.C. Chapman, to be published by Wiley this December—is that creating content as a cornerstone of your marketing offers your organization an enormous and unprecedented opportunity. Among them:
• To engage directly with customers (or would-be customers)
• To communicate with personality, empathy and real emotion
• To create [...] |
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3 Ways B2B Marketing Professionals Can Adapt to the Real-Time Web
Mon, 26 Jul 2010 12:21:31 -0700
It’s no secret that modern B2B marketing is all about the web. B2B marketing is actively being shaped by the power of the Internet as a resource and researching tool for prospects and buyers alike.
Add another layer of change when you consider the ability to share information in real time, and modern marketing can get [...] |
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Serving Up Cheap (and Healthy) Fast Food
Mon, 26 Jul 2010 09:14:42 -0700
These are interesting times in the fast food business. Fast food continues to be popular, but consumers are hungry for more options now. So, how about fast, cheap and healthier, or more ethnic, or a touch of “gourmet”? Hence the success of Panera, Chipotle, Baja Fresh, Quizno’s, etc.
A recent Brandchannel blog post, “McDonald’s President Cooking [...] |
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SocialTech 2010: 6 Ways to Generate and Nurture More Leads on Twitter
Fri, 23 Jul 2010 12:16:32 -0700
Now more than ever, lead generation for the complex sale is a long process of developing relationships with your prospects. Gone are the days of just getting names and making calls. Since Twitter is a fantastic way to build new relationships, it makes sense that B2B adoption continues to grow. However, because it’s still a [...] |
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Drive Innovation: Suggest Ideas, Don’t Propose Them
Fri, 23 Jul 2010 08:15:05 -0700
How something is presented has an effect on how it is received.
“No duh.” Right? We’re marketers here. Our job is presenting things to create an effect.
No wait, keep reading … Hear me out. We should be using these super persuasion powers of ours to help our companies be more innovative. So many innovative ideas get [...] |
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False Numbers, Lost Revenue & ‘The Karate Kid II’
Fri, 23 Jul 2010 08:08:44 -0700
Now that Netflix can stream movies to computers and through the Wii, my kids are taking full advantage by watching some of the shows and movies I watched as a kid. At any given time in our home this summer, I have been serenaded by the eloquent dialogue of Hannibal from “The A-Team” and even [...] |
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Match Your Blog’s Metrics to Its Goals
Thu, 22 Jul 2010 00:53:45 -0700
One of the biggest issues companies continue to have about blogging (and social media in general) is: “How do we tell if it’s working?’
One way to greatly improve your ability to measure the effectiveness of your company’s blogging efforts is by tracking the right metrics. When you are creating the strategy for your company blog, [...] |
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The Zero Latency Future is Now
Thu, 22 Jul 2010 00:24:21 -0700
Today’s advanced technology brings us virtual broadband autobahns that move data across the globe with speed and precision. In an attempt to capitalize on fast-moving data, some companies are using sophisticated applications and compute power to make decisions faster than competitors. However, when machines move millions of times faster than humans, there are some [...] |
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Fame: Show Why You’re Different & Why Others Should Care
Wed, 21 Jul 2010 09:03:45 -0700
Want to be known as a go-to person? Then you better learn how to “Fame,” says Richard Laermer, co-founder of The Bad Pitch Blog, president of NYC-based RLM PR and founder of “How to Fame,” a program designed to inform and instruct us on how we can achieve Pragmatic Notoriety.
No, not like Fame-the-TV-show (though those [...] |
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Every monster has a big shadow
Thu, 29 Jul 2010 22:27:00 -0700
That's what makes it a monster. In fact, when you look the monster in the eye, when you calmly and carefully inspect the actual monster, you discover that he's not so bad after all. It's just the shadow that's scary. When in doubt, ignore the shadow.  |
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A few books for summer reading
Thu, 29 Jul 2010 08:15:08 -0700
Paco Underhill on women and retail. Nancy Lublin on learning from causes. Noah Boyd with an FBI thriller beach read. Better than the last Reacher novel, imho. And stunningly elegant (and lovely to hold) pottery inspired by some of my work from Lori Koop.  |
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The power of sync
Wed, 28 Jul 2010 22:18:00 -0700
100 people doing something at the same time has far more power than 300 people doing it over time. We unconsciously amplify the power of coordination when we consider the impact of actions. If there's a thousand people waiting outside of a store, we instantly believe we're seeing a phenomenon. While the internet makes it easier than ever to spread ideas, it makes it far more compelling to coordinate actions. If everyone in your weekly meeting drops a pencil at precisely 12:03, you'll notice.  |
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Here comes the paperback Kindle... as promised
Wed, 28 Jul 2010 14:13:59 -0700
The wifi Kindle, $139. Drop the first digit and you're on to something. And it only took them six weeks!  |
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It's (always) too soon to know for sure
Tue, 27 Jul 2010 22:55:00 -0700
The cost of being first is higher than it's ever been... It's entirely possible that you're racing. Racing to the market with a new product or a news story or a decision or an innovation. The race keeps getting faster, doesn't it? If you're racing, you better figure out what to do about the times that you don't know for sure...because more and more of your inputs are going to be tenuous, speculative and possibly wrong. Day traders have always understood this--all they do is trade on uncertainty. But you, too, if you're racing, are going to have to make decisions on less than perfect information. Given that fact, what are you going to do about it? I think it's worth a few cycles of your time. Is it smart to blog on a rumor? Worth dropping everything and panicking because of a news alert? Should you hire someone based on information you're not sure of? What about changing your website (your pricing, your layout...) based on analytics that might not be absolutely correct? How long are you willing to wait? Given that you will never know everything for sure (unless you're opting out of the race), some of the issues are: - What's the cost of waiting one more day?
- Are you waiting (or not waiting) because of the cost of being wrong, or because loud people are yelling at you?
- Is the risk of being wrong unreasonably amplified by part of the market or your team? What if you ignore them and focus on customers that matter?
- And have you thought about the costs of waiting too long? If you don't, you'll probably end up last.
Have you noticed how often stock analysts quoted in the news are wrong? Wrong about new products, wrong about management decisions, wrong about the future of a company? In fact, they're almost always first and almost always wrong. Rule of thumb: being first helps in the short run. Being a little more right than the masses ultimately pays off in the long run. Being last is the worst of all three. A few people care a lot about scoops. Most of us, though, care about alert people making insightful decisions. Decide who you're trying to please, then ship.
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The problem with unlimited
Mon, 26 Jul 2010 22:12:00 -0700
If you work out on a weight machine that has a limit--where you have to push the bar until it stops--you're far more likely to to hit that limit than if you had left it to your own initiative to figure out how far is far enough. People enjoy going to the max (or in the case of Spinal Tap, a little farther than max, to 11). But if there is no max, no limit, it's much easier to satisfy yourself and declare that you've done enough. If you want your best users to do more, one way to do it is to announce the most they can do. While this may dissuade a few people from pushing ever farther, it will in fact motivate a large number of people to up their game. "The maximum number of times a week you can dine here is three." "The maximum bonus paid is $100k." "The maximum number of tweets per day is 30."  |
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Getting unstuck: solving the perfect problem
Sun, 25 Jul 2010 22:51:00 -0700
The only problems you have left are the perfect ones. The imperfect ones, the ones with a clearly evident solution, well, if they were important, you've solved them already. It's the perfect problems that keep us stuck. Perfect because they have constraints, unbendable constraints, constraints that keep us trapped. I hate my job, I need this job, there's no way to quit, to get a promotion or to get a new boss, no way to move, my family is in town, etc. We're human, that's what we do--we erect boundaries, constraints we can't ease, and we get trapped. Or perhaps it's your product or service or brand. Our factory is only organized to make X, but the market doesn't want X as much, or there is regulation, or a new competitor is now offering X at half the price and the board won't do anything, etc. There's no way to solve the perfect problem because every solution involves breaking an unbreakable constraint. And there's your solution. The way to solve the perfect problem is to make it imperfect. Don't just bend one of the constraints, eliminate it. Shut down the factory. Walk away from the job. Change your product completely. Ignore the board. If the only alternative is slow and painful failure, the way to get unstuck is to blow up a constraint, deal with the pain and then run forward. Fast.  |
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15% changes everything
Sat, 24 Jul 2010 22:56:00 -0700
When a newspaper loses 15% of its readers or 15% of its advertisers, it goes out of business. There are still people who want to read it, still people who want to advertise, but it's gone. When a technology company increases its sales by 15%, profits will double. The sales line doesn't have to increase that much for profits to soar. It's so tempting to head for green fields with a new thing, a new market, a new business. But in fact, 15% right here and right now might be exactly what you need.  |
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Running away vs. running toward
Fri, 23 Jul 2010 22:35:00 -0700
Every brand, every organization and every individual is either running away from something or running toward something (or working hard to stand still). Are you chasing or being chased? Are you leading or following? Are you fleeing or climbing?  |
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But who will speak for the trees?
Thu, 22 Jul 2010 22:37:00 -0700
Defenders of the status quo at newspapers, book publishers and the magazine industry are in a panic. Some are even misguidedly asking for government regulation or a bailout. All three industries are doomed (if doomed means that they will be unrecognizable in ten--probably three--years). And yet... And yet there's no shortage of writing, or things to read. No shortage of news, either. And there doesn't appear to be one on the horizon. In fact, there's more news, more images and more writing available to more people more often than ever before in history. No, just about all of the whining is about protecting paper, the stuff the ideas are printed on, not the ideas themselves. It's paper that makes the economics of the newspaper industry work (or not work). It's paper that creates cost and slows things down and generates scarcity. And scarcity is what they sell. It's paper that makes the book industry what it is. As soon as you remove paper from the equation, the costs change, the timing changes, the barriers to entry change, the risk changes. And defenders of the status quo don't like change. Is there not enough paper in your life? Why are we wringing our hands about the demise of paper as the economic gating factor for ideas? In fact, some of the trees I know are delighted that we've found a better, faster, cheaper way to spread ideas. If the demise of paper means that good people doing good work in important industries will have to find faster and better ways to do their jobs, I don't think that's a bad thing.  |
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The art of seduction
Wed, 21 Jul 2010 22:36:00 -0700
Carole Mallory was Norman Mailer's mistress. Seducing him probably wasn't that difficult, though, as he was already on his sixth wife at the time. Marketers seek to seduce. So do painters, authors and job seekers. The most important thing to understand about seduction is this: it only works when the other person cooperates, contributes and is at some level interested in being seduced. In short: it's a lot easier to seduce someone whose worldview and attitude makes them open to it. If you want to be successful at whatever form of seduction you have in mind, seek out the right people. Some people were seduced by the iPad. Many ignored it. It wasn't that the iPad changed from person to person, what changed was the audience's worldview and openness. And yet... And yet as marketers we seem to want to treat everyone the same, want to please everyone, want to come up with the magic words that open every heart.  |
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Getting to scale: direct marketing vs. mass market thinking
Tue, 20 Jul 2010 22:24:00 -0700
A mass marketer needs to reach the masses, and to do it in many ways, simultaneously. The mass marketer needs retail outlets and fliers and a website and public relations and tv ads and more more more and then... bam... critical mass is reached and success occurs. Best Buy is a mass marketer, but so are Microsoft and the Red Cross. Ubiquity, once achieved, brings them revenue, which advances the cycle and they reach scale. The direct marketer, on the other hand, must get it right in the small. That pitch letter can be tested on 100 houses and if it gets a 2% response rate, then it can be mailed to 100,000 houses with confidence. That business-to-business sales pitch can be honed on one or two or three prospects, and then when it works, can be taught to dozens or hundreds of other salespeople. The key distinction is when you know it's going to work. The mass marketer doesn't know until the end. The direct marketer knows in the beginning. The mass marketer is betting on thousands of tiny cues, little clues, and unrecorded (but vital) conversations. The direct marketer is measuring conversion rates from the first day. That's the reason we often default to acting like mass marketers. We're putting off the day of reckoning, betting on the miracle around the corner, spending our time and energy on the early steps without the downside of admitting failure to the boss. Of course, just because it's our default doesn't mean it's right. Business to business marketing is almost always better if you treat it like direct marketing. Most websites that do conversion as well. Same with non-profit fundraising. As well as marketing goods and services to the bottom of the pyramid, people who live in villages where mass media and mass distribution are difficult and have little impact. Get it right for ten people before you rush around scaling up to a thousand. It's far less romantic than spending money at the start, but it's the reliable, proven way to get to scale if you care enough to do the work.  |
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The paradox of promises in the age of word of mouth
Mon, 19 Jul 2010 22:29:00 -0700
Word of mouth is generated by surprise and delight (or anger). This is a function of the difference between what you promise and what you deliver (see clever MBA chart to the right--->).
The thing is, if you promise very little, you don't get a chance to deliver because I'll ignore you. And if you promise too much, you don't get a chance to deliver, because I won't believe you... Hence the paradox. The more you promise, the less likely you are to achieve delight and the less likely you are to earn the trust to get the gig in the first place. Salespeople often want you to allow them to overpromise, because it gets them through the RFP. Marketers, if they're smart, will push you (the CEO) to underpromise, since that's where the word of mouth is going to come from. I have worked with someone who is very good at the promising part. She enjoys it. And when the promises don't work out, she's always ready with the perfect excuse. This is a great strategy if you have a regular job and the excuses are really terrific, but if you need internal or external clients, it gets old pretty fast. It certainly doesn't lead to the sort of word of mouth one is eager to encounter. Surgeons have this problem all the time. They promise a complete, pain-free recovery and work hard to build up a positive expectation, particularly for elective surgery. And the entire time you're in bed, in pain, unable to pee, all you can do is hate on the doctor. This is one reason why recovering from failure is such a great opportunity. If you or your organization fail and then you pull out all the stops to recover or make good, the expectation/delivery gap is huge. You don't win because you did a good job, you win because you so dramatically exceeded expectations.
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The new dynamics of book publishing
Mon, 19 Jul 2010 09:07:00 -0700
Click to listen or Download mp3 In May, I did a talk for the Independent Book Publishers (site). The link above gives you a free and slightly abridged recording of the talk, probably of interest if you are focused on how industries are making (or not) the shift to the new rules of a digital age.  |
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Self marketing might be the most important kind
Sun, 18 Jul 2010 22:52:00 -0700
What story do you tell yourself about yourself? I know that marketers tell stories. We tell them to clients, prospects, bosses, suppliers, partners and voters. If the stories resonate and spread and seduce, then we succeed. But what about the story you tell yourself? Do you have an elevator pitch that reminds you that you're a struggling fraud, certain to be caught and destined to fail? Are you marketing a perspective and an attitude of generosity? When you talk to yourself, what do you say? Is anyone listening? You've learned through experience that frequency works. That minds can be changed. That powerful stories have impact. I guess, then, the challenge is to use those very same tools on yourself.  |
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Is everything perfect?
Sun, 18 Jul 2010 05:46:00 -0700
Greetings have traditionally been an acknowledgment of the other person. "I see you." "Hello." "Greetings." Then, we moved on to, "how are you?" or even, "how's business?" Recently, though, our performance-obsessed, live-forever society has morphed the greeting into something like, "please list everything going on in your life that isn't as perfect as it should be." In a business setting, this causes bad prioritization decisions. The owner of the bar says to the manager, "how was the night?" and the response is, "the cash register came up $8 short." Suddenly, there's an urgent problem to be solved. How to replace the eight dollars and who do we fire? If the question instead had been, "what's up?" (as in literally up) the answer might have been, "well, there's a big party at table 12, another going away party. They've been buying champagne all night. And Mary told me she set a new record for tips. And the new beer we added on tap is..." Highlighting what's working helps you make that happen more often. Perfect is overrated. Perfect doesn't scale, either. I'm not proposing you endorse theft or ignore the bad news. But it's clear that one more going away party on table 12 is going to make up for that one piece of bad news, every time.  |
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The only possible response...
Sat, 17 Jul 2010 22:41:00 -0700
isn't.  |
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The management of signals
Fri, 16 Jul 2010 22:11:00 -0700
There are two things we can get better at: 1. Getting accurate signals from the world. Right now, we take in information from many places, but we're not particularly focused on filtering the information that might be false, and more important, what might be missing. 2. Sorting and ranking information based on importance. We often make the mistake of ranking things as urgent, which aren't, or true, which are false, or knowable, when they're not. Dealing successfully with times of change (like now) requires that you simultaneously broaden your reach, focus on what's important and aggressively ignore things that are both loud and false. Easier said than done.  |
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A hierarchy of failure worth following
Thu, 15 Jul 2010 22:37:00 -0700
Not all failures are the same. Here are five kinds, from frequency = good all the way to please-don't! FAIL OFTEN: Ideas that challenge the status quo. Proposals. Brainstorms. Concepts that open doors. FAIL FREQUENTLY: Prototypes. Spreadsheets. Sample ads and copy. FAIL OCCASIONALLY: Working mockups. Playtesting sessions. Board meetings. FAIL RARELY: Interactions with small groups of actual users and customers. FAIL NEVER: Keeping promises to your constituents. The thing is, in their rush to play it safe and then their urgency to salvage everything in the face of an emergency, most organizations do precisely the opposite. They throw their customers or their people under the bus ("we had no choice") but rarely take the pro-active steps necessary to fail quietly, and often, in private, in advance, when there's still time to make things better. Better to have a difficult conversation now than a failed customer interaction later.  |
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Information about information
Wed, 14 Jul 2010 22:24:00 -0700
The first revolution hit when people who made stuff started to discover that information was often as valuable as the stuff itself. Knowing where something was or how it performed or how it interacted with you can be worth more than the item itself. Frito Lay dominates the snack business because of the information infrastructure they built on top of their delivery model. 7 Eleven in Japan dominated for a decade or more because they used information to change their inventory. Zara in Europe is an information business that happens to sell clothes. You've probably already guessed what's now: information about information. That's what Facebook and Google and Bloomberg do for a living. They create a meta-layer, a world of information about the information itself. And why is this so valuable? Because it compounds. A tiny head start in access to this information gives you a huge advantage in the stock market. Or in marketing. Or in fundraising. Many people and organizations are contributing to this mass of data, but few are taking advantage of the opportunity to collate it and present it to people who desperately need it. Think about how much needs to be sorted, compared, updated and presented to people who want to choose or learn or trade on it. The race to deliver this essential scalable asset isn't over, it's just beginning.  |
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Upstream and downstream
Tue, 13 Jul 2010 22:04:00 -0700
Most of the time, we think of our job as a set of tasks that take place in a ---> [box] <---. It turns out, though, that if we go upstream and alter the stuff that comes to us, it's a lot easier to do great work. And if we go downstream and teach people how to work with what we created, the final product is better as well. Now, it's more of a --> [ box ] <--. A doctor can consider her work in the box of the examining room. But if she figures out how to get people to quit smoking before they come in, her results are better. If she figures out how to get people to take their meds after they leave, same thing. A designer who receives a better project brief will deliver better work. A manufacturer who figures out how to teach users to use the object properly will get better word of mouth... Marketers, of course, can have the biggest box of all. So the stuff we think of as 'marketing' can be altered long before the person ever sees an ad, and have an impact long after they've got the product. The challenge lies in spending a lot of time and money on the upstream and downstream parts of the work, instead of always assuming that your [box] is just what happens inside your cubicle, or as a direct result of your actions.  |
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Two kinds of schooling
Mon, 12 Jul 2010 22:11:00 -0700
Type 1. You can take a class where you learn technique, facts and procedures. Type 2. You can take a class where you learn to see, learn to lead and learn to solve interesting problems. The first type of teaching isn't particularly difficult to do, and it's something most of us are trained to absorb. The first type of schooling can even be accomplished with self-discipline and a Dummies book. The first type of class is important but not scarce. The second kind, on the other hand, is where all real success comes from. It's really tricky to find and train people to do this sort of teaching, and anytime you can find some of it, you should grab it. The sad thing is that we often conflate the two. We think we're hiring someone to do the second type, a once in a lifetime teacher, someone who will change the outlook of stellar students. But then we give them rules and procedures and feedback that turn them into a type 1 teacher. Even worse, we often pay as if we're getting the scarce and valuable type 2 teachers but we end up hiring and managing type 1 teachers. I spend a lot of time in colleges and other teaching institutions. Over and over I see the same thing--organizations that have painted themselves into a corner, keeping themselves busy but refusing to do the difficult work of teaching people to see. The dean of one college was so stuck in his type-1ness that he couldn't even bring himself to participate in a session run by a gifted type 2 teacher. Is there anything more important to you and your organization (or your kids or your town) than figuring out how to obtain and share the wisdom that real teaching can deliver?  |
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The big sort
Sun, 11 Jul 2010 22:59:00 -0700
Kevin Kelly argues that the most important breakthrough in the history of mankind was the invention of language. Before language, we were wild animals. After language, humans as a species took a huge leap forward. Language allowed us to coordinate, to teach and to learn. The second great breakthrough on this axis was writing. Writing is language solidified. Writing permits language to travel through time or over distances. It ensures that ideas last more than one generation. Now, we're on the cusp of the third breakthrough, one that is proving to be as powerful as the other two. And we're living through it, not reading about it history books... We've taken the smartest and richest people on earth, hundreds of millions of them, and put them to work sorting and organizing and polishing data. We're sorting everything. Not just which videos are imitations of other videos, but identifying local breakthroughs and spreading them around the world, highlighting problems or insights and leveraging them and connecting resources to each other in ways that create massive amounts of leverage. Think about all those folks checking their Blackberry, upvoting Digg articles, retweeting links and connecting people to ideas online. Think about the human enabled filtering, a giant system working without obvious compensation. Right now, the big sort focuses on finding clever viral videos, but it won't for long. The power of this coordination is so huge it won't stop with building Wikipedia and turning the founder of ChatRoulette into a millionaire. Instead, the big sort will relentlessly find and connect and spread ideas that generate productivity and impact.  |
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So easy to talk about lunch
Sat, 10 Jul 2010 22:52:00 -0700
If you want to get things moving at a meeting or in an online forum, start discussing what to order for lunch. Even the most reticent attendee has something to contribute. Same thing when you start discussing the logo for your new venture, or what to call the subcommittee on committees... Have you noticed how many people are willing to weigh in on redecorating your office? It's so easy to speak up on the things that are trivial, defensible, matters of taste. So easy to imagine that you're a valuable contributor because you're willing to share your personal taste on a matter that's beyond reproach. If I want your opinion, I'm going to want it for something where you might be wrong, for something that actually makes a difference and most of all, for something where you are putting yourself at risk. Not lunch.  |
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Insubordinate... 50th anniverary free ebook
Sat, 10 Jul 2010 03:25:00 -0700
What’s the opposite of insubordinate? I guess it’s subordinate.
Which is better, I wonder. Is it preferred to do exactly what you’re told, to be clearly subordinate to the system, to the boss, to the short term demands of the organization--or are we better off doing the right thing instead?
As I think about the insubordinate people I’ve worked with over the last few decades, the answer is really clear to me.
I’ve written a personal addendum to Linchpin. Here it is, it's a free PDF. Insubordinate is a 40 page ebook, feel free to share. I couldn’t possibly include all the linchpins I’ve worked with over the years, but I think you’ll find that many of the examples in the ebook resonate.
Enjoy.
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Brandless At The Beach – NEVER!
Thu, 29 Jul 2010 10:41:10 -0700
Just because you’re on vacation and lounging at the beach doesn’t mean your brand has to relax too.
Here are ten ways you can promote your brand when you’re supposed to be relaxing:
1: Build a sand model of your store or office.
2: This one’s for the ladies. Get a one piece suit and using an exact-o [...] |
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Sometimes all we need is a hand.
Mon, 26 Jul 2010 19:59:47 -0700
Hi everyone I just wanted to take a few minutes and share something with you. I am sure you all have that someone in your life that you listen to. Make room for one more.Tony Robbins I have never listened to him that I didn`t get something useful out of it.
Tomorrow night Tony starts [...] |
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Jump And Grow Your Wings On The Way Down.
Fri, 23 Jul 2010 06:37:04 -0700
The headline to this article is a quote from a client of mine – Belinda Bond. Belinda is the visionary behind the Celebrity Mama Tour. I thought it was the perfect bit of advice for entrepreneurs. How many times have you sat down for a chat with someone and they are pondering the age old [...] |
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Business Research Reports Free Now, $399 Later
Wed, 21 Jul 2010 12:00:57 -0700
We received news of these reports a few days ago and wanted to put the word out so you can take advantage of these business research reports by Aberdeen Group. The reports covers a wide variety of topics.
We’ve been told these are time sensitive offers, many of them expire July 30th. After that, they are [...] |
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How To Record Skype Calls
Tue, 20 Jul 2010 07:01:00 -0700
In our office, all long distance including calls out of the country are done via Skype. And why not. It is cheap and for the most part, gives you pretty clear calls.
I also particularly like Skype for audio interviews because it means I don’t have to hook up extra hardware and deal with a tangle [...] |
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10 Critical Questions To Ask A Web Designer
Wed, 14 Jul 2010 10:54:54 -0700
Building web sites is not rocket science, but it is job that requires many skills you can’t learn overnight. Not if you want a good looking, yet functional and efficient web site. It is certainly a full time job on its own. So having this important task outsourced is smart.
On the other hand, when you’ve [...] |
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How Your Brand Values Strengthen Your Business.
Thu, 08 Jul 2010 12:38:51 -0700
How fast do you return a telephone call or an email from a potential lead?
I ask myself this every time a lead remarks to me, how quickly I responded. I wonder if perhaps most businesses do NOT return contacts as fast as they could. I try to respond the moment I get a contact. [...] |
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Aggression: A Worthy Brand Builder
Tue, 27 Jul 2010 17:10:00 -0700
 Irish low-cost airline Ryanair was in trouble again last week. Chief executive Michael O’Leary was forced to apologise to easyJet founder, Sir Stelios Haji-Ioannou, for depicting him in the January ad campaign above as a Pinocchio who misleads clients about punctuality. To avoid a court case, Ryanair agreed to pay Sir Stelios’ costs and damages of £50,000 which will be donated to a charity of the easyJet founder’s choosing. Stelios joined in by claiming O’Leary was the “ugly face of capitalism”. The “ugly” face, however, was smiling broadly this week with the expected announcement that Ryanair would report first-quarter sales of £730m. Despite angry volcanoes and even angrier competitors, Ryanair continues its transformation from a tiny brand that had only one plane to fly between Gatwick and Waterford in 1985 into Europe’s largest airline. More importantly, the brutal intelligence of Ryanair’s marketing strategy has once again proved itself. It starts with advertising. A very special kind of advertising. Usually black and white. Consistently tacky in tone and execution. And always offensive. It could be a picture of a stripper dressed as a schoolgirl announcing “hot fares”. It might be a hastily copied image of Churchill declaring that to “beat terrorism” after the 7/7 attacks consumers you should fly Ryanair. Or it might be a specific attack on a famous figure. Stelios is merely the latest in a long line that includes Gordon Brown, the Pope and the president of France who have been aggressively parodied by the airline. What follows is inevitably a public backlash or formal complaint. At this point, Ryanair kicks in with its PR campaign. O’Leary himself usually goes onto the front foot and makes even more incendiary claims: Ryanair will make people pay for toilets; there will be tickets for standing room only on flights; fat people will have to pay more; and everyone flying business class will get free sexual favours. All of it is nonsense, of course. Few of the claims that Ryanair has made over the years are ever likely to come to pass. But that’s not the point. A £25,000 ad campaign has suddenly become a million-pound piece of brand strategy. Because make no mistake, Ryanair’s continued success is as much the result of building one of Europe’s most distinctive brands as it is low fares. The airline itself might publicly deny any such emphasis on branding - but the greatest trick the devil ever played was making you believe he didn’t exist in the first place. At the heart of the Ryanair business model is differentiation of the finest and most deliberate kind. I would - in all seriousness - rank Ryanair next to Hermès or Pret a Manger in terms of brand positioning and execution. Ryanair’s brand associations centre on three key themes: low-price, no nonsense and aggression. Don’t underestimate points two and three. Ten years ago, there were a slew of discount airlines all competing on low prices, but all of them attempting to do so while they aped premium airlines. Only O’Leary was savvy enough to build a brand that gloried in the low-cost model and made no excuses for the no-frills approach or the aggression with which it attacked established airlines. Or as he put it himself: “For years, flying has been the preserve of rich fuckers. Now everyone can afford to fly.” Everything the airline has done since has centred on delivering a brand that consistently screams low price, aggression and no-frills - ad campaigns, the website, press conferences, and of course O’Leary himself. I have a theory that Trinity-educated O’Leary is actually quite an aesthete in his spare time. At weekends, he completes crosswords and enjoys the paintings of Velazquez. Only on Monday mornings does he look in the mirror, shout “Bollocks!” at himself and head out to deliver his very special brand of aggressive anarchy to the airline industry. And what an asset he is. Think of all the identical old white duffers that run our brands so generically in the UK. Most would not even know what the concept of brand means, let alone their own organisation’s brand positioning. In contrast, O’Leary is walking differentiation. This is a leader who understands brand and its importance to the business and also the key role a CEO can play in reinforcing the positioning in the most basic but effective manner. Generic CEOs praise staff as the heart of their business. O’Leary’s response: “MBA students come out with, ’My staff are my most important asset’. Bullshit. Staff are usually your biggest cost.” It’s time to recognise Ryanair. But let’s give the airline credit for what it is, as well as what is pretends to be. Yes, it’s a superbly aggressive low-cost airline. But it’s also one of Europe’s best run brands. And while we’re at it - let’s reassess Michael O’Leary’s status too. Rather than a scourge of CEOs, he is their living prototype. Published by Branding Strategy Insider in partnership with Marketing WeekSponsored By: The Brand Positioning Workshop  |
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Exploring Premium Brand Extension
Mon, 26 Jul 2010 18:47:42 -0700
 Regular readers of Branding Strategy Insider know we welcome and answer marketing questions of all types. Today, Eugene, a marketer in London, England writes… "Dear Derrick and Brad, I really enjoy Branding Strategy Insider, thanks for the resource. My question is how to measure the Halo effect a premium brand extension can have on the rest of the range, and the Halo effect mechanics." Eugene, thanks for the compliment and your question. Regarding the Halo effect a premium brand extension can have on the rest of the range, following are things to consider: - One cannot add a significantly more premium or inexpensive product within a brand’s range without encountering credibility problems. This is especially true if one is trying to move a lower cost brand into a more premium market segment. This is why Toyota has the Lexus brand and Honda has the Acura brand. Even Marriott’s association with the Ritz Carlton brand (as its parent company, even though they are not linked in an identity system) could lead people to think less of Ritz Carlton compared to the (luxury only) Four Seasons brand, for instance.
- Adding a more expensive product at the top of a brand’s price range may increase people’s propensity to buy a higher priced (but not necessarily the highest priced) product within the range. They may think, “I cannot afford the most expensive product, but I can afford the second most expensive one.” Adding a more expensive product to the top of a brand’s price range may also increase the average perceived value of products in the category. (Investigate reference pricing. I cover this concept in greater detail in my book Brand Aid.)
• One should test the responses of current customers to adding a more premium product to a brand’s range of products before it is actually done. This is even more important if one is considering offering a lower end product to a luxury brand’s price range. Often, people who buy luxury products do so at least partially for the status that it confers on them. Adding lower priced products could potentially reduce that status. • Incrementally moving brands up the price and quality range over time has often proven to be effective in improving the perceived quality and value of those brands. • Consider creating a sub-brand for the new premium products within the brand’s range. Depending on the category, words and phrases such as “platinum,” “gold crown,” “sapphire,” “seven star,” “concierge,” “private,” “reserved,” “special selection,” “VIP,” “red carpet,” “club” and “elite” have been used to communicate the premium status. On the other hand, many of these words have been overused and are clichés. American Express actually invited competition when it created its Gold Card as American Express always stood for premium, but when it introduced its Gold Card, Visa and other credit card companies could offer what could be perceived to be comparable premium offerings with their own Gold Cards. Gold (and eventually Platinum) Cards, which are not legally protectable by American Express, became synonymous with premium positions within the category. Overall, my advice to you is to move cautiously, informed by customer research. Be sure to explore credibility and impact on the rest of the range. If executed correctly, the addition of premium product(s) could improve the image of the brand overall. I wish you great success with your brand management efforts. Have a question related to branding? Just Ask… Sponsored By: The Brand Positioning Workshop  |
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Brand Crisis and Brand Survival
Sun, 25 Jul 2010 17:10:00 -0700
 A brand crisis can take many forms, which can linger differing lengths of time depending on the survivability of the brand. Every corporate brand crisis is unique; each has a starting point when the CEO becomes responsible for the survival of the company. BP's bumbling management of its Gulf crisis, its seemingly endless decision making process, not to mention post-crisis effects that will last decades, make this crisis unprecedented. Tyco, Texaco, Dynegy, IBM, Enron, Worldcom and Citigroup are a few of the crises we've studied. Some companies survived, not only intact, but emerged stronger than ever. Others were destroyed, or forced to merge. A handful limped on, weakened but not ruined. In 2002, Tyco's CEO and CFO were accused of theft of over $600 million. With negative press around the scandal, brand familiarity increased dramatically, while brand favorability plummeted. The speed and magnitude of this brand's collapse indicates a brand catastrophe. Even after management had been changed and the company got back to business, the Tyco brand continued its downward slide for years. Nationwide attention spotlighted Texaco for racial discrimination in 1995. The tremendous media exposure immediately heightened brand familiarity, while perceptions reduced favorability in the eyes of influentials. Texaco's immediate, focused response by senior management helped mitigate an adverse environment. Still, it took Texaco nearly five years to fully regain its previous brand strength, at which time management decided to merge with Chevron. In 2002, Dynegy was the subject of an SEC fraud investigation of its Project Alpha, a multi-year natural gas transaction from which Dynegy took an illegal tax benefit resulting in an earnings restatement for 1999 - 2001. The company was also involved in round-trip energy trades with CMS Energy, which artificially drove up the company's trading volume. Yet Dynegy handled the crisis in a straightforward manner. CEO Chuck Watson resigned; the company fully cooperated with the investigation, and agreed to pay a $3 million fine. While nearly following Enron into oblivion, Dynegy's brand actually grew both in familiarity and favorability following the scandal. The crisis helped raise familiarity of the company and management s handling of the crisis, which positively affected their favorability rating. By contrast, Enron is the classic case study of a complete brand catastrophe. A systematic and well-planned accounting fraud, coupled with massive media coverage and public outrage doomed the Enron brand. In late 2001, financial transactions that were intended to take unprofitable entities off Enron s books were discovered. The scandal not only destroyed the company, but also accounting giant Arthur Andersen. The negative "goodwill" that was created by Enron as shareholders lost everything through made the angled "E" that stood outside its corporate headquarters a symbol of corporate fraud and corruption that was too much for the brand to endure.. In the early 1990s IBM's inflexibility in the face of industry evolution diminished its' leadership position. Unrelenting focus on core business lines in the midst of dynamic industry changes yielded decreased brand favorability and IBM's brand valuation plummeted in 1993 as concerns about its ability to adapt to a changing market grew. Louis Gerstner, brought in to awaken this sleeping giant, recommitted to the business with a focus not only of survival, but growth. His significant involvement and determined communication support helped IBM to achieve an almost complete recovery of favorability in a very short period of time. Some brand crisis situations are self-imposed. The cause is with the best of intentions, but is generally executed by poor management. Such was the case with Citicorp's merger with Travelers in 1998 to form Citigroup. The merger took place with little communication support from Citigroup. There was virtually no spending to introduce Citigroup as the new corporate entity. As a result, brand familiarity with the new brand plummeted as key audiences became confused. Among customers who were very familiar with the brand, perceptions of the company were unchanged. Citigroup lost many followers who did not deal with them on a day-to-day basis, but were supportive of the company, many being retail investors. This brand loss resulted in a significant decline in brand equity, which could have been avoided with a relatively small investment in corporate communications. I contend that some of the lingering doubts about Citigroup s ability to survive go back to this crisis of confidence that started in 1998 with a poorly communicated merger. BP's crisis makes these examples appear tame by comparison. Despite the best intentions of BP, mismanagement of their crisis communications team seems to be unavoidable since the media is determined to drill them a new one. Until that well completely stops gushing oil, any effort to manage the brand crisis is more about damage mitigation rather than proactively trying to restore the company image. BP's projected loss of brand equity is severe. In 2007, after years of carefully building their brand image through corporate advertising, BP's brand equity amounted to 9.8% of their market cap - or $20 billion in brand equity value. This compares to the industry average of 6.4% - or $13 billion in brand equity. In 2009, at the height of the recession, BP reduced their corporate advertising from $75 million (2007) to $33 million (2009), and their brand equity dropped significantly to 8.6% - or $14 billion, compared to the industry average of 5.6% - or $7 billion. At this point, the decline of BP's brand equity was in relation to the decline of the industry in a recession. When BP's brand equity drops $6 billion due to the recession it will no doubt collapse with the dramatic increase in negative media coverage the spill has created. I estimate the brand equity value of BP by the end of 2010 will be approximately $5 billion (down from $20 billion in 2007). BP will not be able to regain any brand equity, as the burden of the crisis will weigh on them for decades. Can BP's brand ever be fully restored? Not in my opinion. The most likely outcome is that once BP gains control over the well the company will become an acquisition target - preferably by a competitor with a better safety record. Contributed to BSI by: James Gregory, CoreBrand Sponsored By: The Brand Positioning Workshop |
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Brand Messaging For A Strong Emotional Response
Wed, 21 Jul 2010 17:10:00 -0700
 Recent breakthroughs in neuro-science confirm what we marketers know in our guts, but sometimes forget in the day-to-day rush of preparing the next ad campaign launch. Namely, everybody feels (emotions) before they think (rational decision), and without generating the appropriate emotional response, no ad campaign can succeed. Here are some guidelines to help avoid that fate. Get Physical Sight and sound are fine, but over-used. Leverage the sensory dimensions of feel, touch and taste to create more intimacy and differentiation. Remember: the brain originated with the sense of smell. So Descartes got it wrong: it's more like, I can smell, therefore I feel/think and will buy your product. Keep It Simple You've got three seconds to connect. The joke that has to be explained is never as funny as the joke you just get. The frustration of "huh" (message-itis) is marketing's hidden emotional cancer. Consumers feel lost more often than anybody wants to admit. Keep It Close to Home Generate likeability and preference through familiarity. Most advertising only has time to echo the story already in your head and heart. Out-of-the-box ideas risk being out of one's emotional range. What's intellectually complicated merely becomes emotionally obscure in a 30-second spot. Focus on Faces The face is the center of our being, the barometer of one's health and beauty. It's also how we tell if we like somebody, or the place to check if we distrust what they're saying. Fake smiles don't fool us; everybody's a natural facial coder. For instance, "surprise" that lasts for more than a second isn't genuinely feeling surprise; it's canned, spin, rejected. Make It Memorable Ad agencies too often set a pace that feels like a blur to consumers. Their clients can meanwhile be foolishly blind to the need for an ad that has an emotional peak. People notice change; a solution where the "pain" of the status quo isn't conveyed adequately means the solution isn't perceived as valuable and the storyline just drones on. Relevancy Drives Connection Us and me is everything; attachment and self-esteem are the motivations that work best. Differentiation from rivals doesn't by itself deliver anything on behalf of your target market. In Latin, "motivation" and "emotion" have the same route to move, to make something happen. Without emotional engagement, you're dead. Always Sell Hope Meaningfulness is the key to sustained happiness. Create a powerful context, a way to enhance confidence and security, or merely sell a product or service instead. When we're happy we embrace a branded offer, and are inspired to solve problems at a clip that's as much as 20% faster (with superior results). In other words, happiness isn't "soft." Don't Lead with Price Price has only to be heard to be pigeon-holed, short-circuiting the emotional connection. In contrast, value gets assessed over time, based on the build-up of brand associations and experience of the offer. Make money by building a relationship. Loyalty is a feeling, after all, and in this case depends on overcoming our natural aversion of giving up cash for a company's goods. Mirror the Target Market's Values There are the ephemeral emotions created by responding to an ad as stimulation. But richer pay dirt results from evoking emotions that nourish brand equity through projecting a compelling brand personality and enshrining values that echo what the target market accepts and can embrace. Most companies merely talk to themselves, thinking the offer is the hero, when the consumer is. Believability Sticks Arguing through statistics is the least persuasive type of advertising. Analogies and cause/effect ads work because we intuitively believe the story and visuals. That enables us to believe the tale, not the teller, which is essential to ad effectiveness because corporate credibility is on life support. Contributed to BSI by: Dan Hill, President, Sensory Logic Sponsored By: The Emotional Connection Workshop  |
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Negative Brand Equity: A BP Death Sentence?
Sun, 18 Jul 2010 17:10:00 -0700
Buy shares in BP. That was the bizarre advice from Royal Bank of Scotland analysts last week after those bright sparks worked out that even the worst possible costs of the Deepwater Horizon will total less than the actual drop in BP’s market value. RBS has, of course, got it wrong again. Long after the costs have been paid and the oil cleaned up, BP will continue to live in infamy as one of the world’s most shamed brands. The official terminology for this kind of perilous state is negative brand equity. And it spells disaster and probable death for the company that was once known for being “Beyond Petroleum”. Negative brand equity occurs when a company’s brand actually has a negative impact on its business - meaning that the company would be better off with no name at all. It happened in the Seventies when Tesco’s brand was so poorly perceived that Imperial Tobacco decided not to acquire the retailer for fear of being associated with such a tarnished and unpopular organisation. It happened again in the Nineties when Skoda discovered to its horror that it could not get British consumers to buy its cars despite spending millions on advertising. Consumer research later confirmed that two-thirds of its target market would literally not consider anything at any price that carried the Skoda badge. And now we have BP. Like every case of negative brand equity before it, the peculiarities of the situation mean that all the traditional advantages of branding are now inverted. BP would be better off whitewashing its forecourts and removing all evidence of its Helios brand identity. That said, the actual impact of the Deepwater disaster on BP’s petrol pump sales is likely to be localised and temporary. We know from past history that petrol consumers are a fickle bunch. When the Exxon Valdez oil tanker spilled its load into Prince William Sound in 1989 the enduring impact on Exxon’s gas sales, even in the state of Alaska, was virtually zero. Unfortunately for BP, the more serious implications of negative brand equity transcend consumer sentiment. BP is discovering that negative brand equity can also have a detrimental impact on its relationships with suppliers. Earlier this month, for example, the company returned to its bankers to seek additional finances to help fund the clean-up operation in the Gulf. While BP did apparently raise money, the funds were only obtained after it agreed to pay significantly greater margins and fees. BP needs to get used to this - it will become standard business practice from now on as suppliers that once prided themselves on dealing with BP regard such interactions as a reputational and financial risk. Even Lord Coe, the head of the 2012 London Olympics, recently had to defend BP’s sponsorship of the Games in light of the Deepwater affair. The tarnished oil giant can’t even give money away without a fight. Even more pernicious damage is being done to BP at the employee level. Internal memos at BP have recently advised staff not to wear the company logo and to take caution in revealing who they work for in public settings. Good advice, but also a measure of the kind of impact that negative brand equity has on human resources strategies. One of the biggest drivers behind the rebranding of BP in 2000 as “Beyond Petroleum” was to avoid losing talent to better positioned, more ethical brands. BP now faces the prospect of navigating the century ahead with a damaged brand and an increasingly second-rate management team. To put it in layman’s terms, BP is worth more dead than alive. And finally there are the financial implications. A well run global brand like Google trades at a massive premium from its net assets because it also owns a brand name that has widespread awareness and positive associations. Millward Brown values Google’s brand equity at $114bn (£75bn), or roughly three-quarters of the company’s total value. In contrast, BP’s current market capitalisation is less than its book value. If you broke up and sold off all its oil wells, offices and other assets, you would recoup a sum bigger than BP is currently worth. To put it in layman’s terms, BP is worth more dead than alive. And death is exactly what will eventually befall BP. It will probably be gobbled up by a competitor keen to get its hands on BP’s assets for less than they are actually worth. Even if BP avoids that fate, its brand is so tarnished that it will eventually have to break itself up and rebrand the various offshoots with new identities untainted by any association with its current corporate identity. However it eventually occurs, the death of BP is an entirely appropriate fate for a brand that claimed it was green (and wasn’t) and a company whose core competence was pumping oil safely to land (and couldn’t). Good riddance.
Published by Branding Strategy Insider in partnership with Marketing Week Sponsored By: The Brand Positioning Workshop
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In Search of Brand Accountability
Thu, 08 Jul 2010 17:10:00 -0700
 Many departments within a corporation will argue the need for accountability in marketing, but none steps forward to take ownership of how to account for brand equity. Theoretically, the CEO is responsible for the value of the corporate brand. Unfortunately, it is a rare CEO who understands how brand equity value is created. CEOs would love to see their company prosper but few understand how to take command or utilize the tools available to make it so. The CFO properly challenges the high costs of marketing today because there is no standard for accounting for the profitable return on investment for brand building activities. In the world of the CFO, marketing is ONLY seen as an expense without any direct connection to ROI. Thus, creating a self-fulfilling prophecy. CMOs would be wise to step forward to take command of brand marketing accountability. Many would argue that they have done so, but attempts to date to create a unified set of standards have been anemic. Most attempts to build accountable ROI bridges to the CFO or CEO have been misunderstood or at the least unrequited. Procurement officers, whose mandate is to dissect every transaction and shave off another percentage point from the already impossibly tight margins of advertising agencies and marketing communications firms, are reluctant to open their view of the total value of a transaction to include the impact of growth (or potential loss) of brand value. To acknowledge that brand building is a two-way street that creates ordestroys value with every communication would open an entirely new avenue for evaluating the performance of vendors. Investor relations, which could help the CEO add billions in market capitalization, is usually focused only on the next earnings release. While they have the attention of the CEO, it is rare to find an IR professional who is willing to suggest that the corporate brand might need tweaking or that corporate clarity is a bit soft. Shouldn't this department have its finger on the pulse of the corporate brand? And, why aren't advertising agencies and public relations firms demanding accountability? They have the most to gain by understanding consistent accountability measures for valuing product and corporate branding. Yet, the agency industry is too frail due to decades-long cost containment pressures or too afraid of the results to demand accountability. So, most seem happy just to survive another year. Most unfortunately, the accounting profession has ignored the undeniable growth of brand value. GAAP standards don't account for the value of brands until a company is bought or sold, which doesn't accurately reflect the changing value of the living brand. Brand value fluctuates daily based on the decisions and communications of management and the impact on key constituencies. It can be easily identified, readily measured and valued on an ongoing basis in comparison to its industry or specific competitors. Accountants should embrace this process and shareholders should demand to better understand and to see brand equity reported on financial accounting statements. Only one association has come forth ready to take on the issue of marketing accountability. The Association of National Advertisers, under the leadership of Bob Liodice, has been pursuing the concept of generally accepted brand valuation principles. The ANA represents the largest advertisers so it is logical and commendable that such an organization lead the discussion. A group of academics and practitioners have also been in hot pursuit of brand accountability standards. It is aptly called the Marketing Accountability Standards Board, under the leadership of Meg Blair. I believe the creation of consistent and reliable standards formarketing measurement is the single most important business issue of this decade. If you agree with me that marketing stands to gain tremendously by connecting the brand to accounting standards then you should join with the ANA and MASB and add your voice to the discussion. Contributed to BSI by: James Gregory, CEO CoreBrand
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Comcast Makes Classic Marketing Mistake
Mon, 05 Jul 2010 17:10:00 -0700
Comcast is in the process of rebranding some of its offerings to "Xfinity," although the company name will remain Comcast. Consumers in 11 markets will have a choice of Xfinity TV, Xfinity Voice and Xfinity Internet. Presumably, Comcast will soon be rolling out these high-speed, high-definition services to other prospects in the 39 states the company serves. Is this a good move? Lawyers will tell you the best trademarks are "coined" names such as Kodak and Xerox. So we are seeing a raft of coined brand names you can't find in any dictionary, including Xfinity. But wait a minute. There's a well-known automobile brand called "Infiniti." Isn't Comcast worried about the confusion between the two? If not, did Comcast consider using Xonda or Xundai or Xoyota? But there is a bigger issue here. Comcast is a large company with revenues last year of $35.8 billion. In addition to its cable, telephone and internet services, Comcast has cable programming interests (G4, Versus and The Golf Channel) and also owns entertainment channel E! Not to mention the company's 51% interest in NBC Universal, a joint venture with General Electric. It makes sense for Comcast to have a pure "company" name like Procter & Gamble and have its services, programming and cable channels defined with their own brand names. Internal vs. external But what makes sense from an internal point of view often doesn't make sense from an external point of view. Comcast is in competition with five giant corporations, each of which is spending a small fortune trying to reach the same consumers Comcast is targeting. Here is 2009 advertising spending for Comcast and its five competitors. - Verizon: $2.2 billion
- AT&T: $1.9 billion
- Sprint: $1.1 billion
- Comcast: $439 million
- DirecTV: $401 million
- Dish Network: $385 million
Money is not everything, of course. The message is important, too. But what message is Xfinity trying to communicate? "More." As a typical TV commercial points out, Xfinity offers "more choice, more control, more speed, more HD than ever before." Other commercials boast about Xfinity's "fastest internet speeds" and "triple the HD channels." But what are consumers supposed to think when they are bombarded by the big three big networks? - AT&T: "Fastest 3G network."
- Verizon: "Five times more 3G coverage."
- Sprint: "4G network."
One axiom of marketing is that confusion always benefits the leader. If the consumer can't make sense out of conflicting claims, he or she is more likely to go with one of the leaders. That's certainly what's been happening in cellphones. In the first quarter of the year, Verizon had 92 million subscribers. AT&T had 86 million. And Sprint had just 47 million. Old African proverb: When elephants fight, it's the ants that take the beating. Sprint is getting killed. In the past three years, both AT&T (10.2% net profit margin) and Verizon (7.4%) have been highly profitable. But Sprint Nextel Corporation, with revenues of $108 billion, managed to lose $34.8 billion. Brand vs. category What's Comcast doing playing in this game? That's a classic marketing mistake. Comcast is trying to fight a branding war with its heavily-hyped Xfinity brand when it should have been fighting a category war. With about 24 million subscribers, Comcast is the leading basic cable TV provider, well ahead of No. 2 Time Warner, which has about 14 million subscribers. Instead of introducing a marvelous new TV, internet and phone service called Xfinity, Comcast, in my opinion, should have been telling its prospects why they should buy digital services from a cable company. Why is cable better than satellite or cellphone towers? I have no idea, but I suspect that cable might be more reliable than the alternatives. Look at the success of DirecTV and Dish Network. Even though both companies are much smaller than Sprint, they are both profitable with net profit margins in the last three years of 6.8% for DirecTV and 6.7% for Dish Network. My feeling is that both of these companies are successful because their satellite services have captured the public's imagination, not because they offer "more" -- more choice, more control, more speed, etc. As a DirecTV subscriber, I'd be hard pressed to name any specific reason for selecting the service, except that DirecTV is the leader in satellite. Leadership is the most important attribute a brand can own. It's usually better to be the leader in a small pond rather than an also-ran in a big pond. The top two brands in every category usually suck out all the profits, leaving nothing but crumbs for the also-rans. But then, who thinks category anyway? Today, it's nothing but brands, brands, brands. Many well-known brands are not associated with any specific category. Many companies have taken brands that used to stand for something and turned them into master brands that don't stand for anything. What category is a Chevrolet? What category is a Sony? What category is an Olay? A quirk in the laws What confuses many marketers is a quirk in the laws of marketing. What leaders can do doesn't necessarily apply to No. 2 or No. 3 brands. We have warned repeatedly, for example, about the dangers of line extension. Yet the truth is, the law applies more to laggards than leaders. McDonald's has been line-extending its menu for decades, but still remains a fast-food leader. Burger King, on the other hand, has been following in McDonald's footsteps, from chicken to breakfast to gourmet coffee, with little to show for its line-extension efforts. On an average sales-per-unit basis, Burger King lags behind the other hamburger chains. - McDonald's: $2,158,900
- Whataburger: $1,653,100
- Jack in the Box: $1,421,100
- Steak n Shake: $1,416,100
- White Castle: $1,383,400
- Carl's Jr: $1,356,100
- Wendy's: $1,352,800
- Burger King: $1,288,600
When we worked for Burger King, the CEO at the time told me we would be heroes if we fixed two things: breakfast and chicken. "But your signs say Burger King," I replied. "Why don't you focus on hamburgers? Specifically, flame-broiled hamburgers." Back then, many Burger King managers thought the hamburger was passé. The future belonged to chicken, fish, and even veal parmigiana. Here it is, decades later, and the fast-food outlets that seem to be capturing the public's attention are the "better burger" places, like Five Guys, Smashburger, Elevation Burger, Mooyah Burgers & Fries, M Burger, Boardwalk Fresh Burgers & Fries, Meatheads Burgers & Fries and Bobby's Burger Place. Nation's Restaurant News calls the better burger "the fastest-growing food-service category at a time when most other types of concepts have put hopes of growth on hold." According to Technomic, sales last year at the better-burger chains were up 18%. Where was Burger King when all the better-burger action was taking place? They apparently were busy introducing their latest line extension, the fire-grilled ribs eight-piece combo meal for $8.99. Focus vs. line extensions Focus is what makes a brand successful, not line extensions. Look at the success of Chick-fil-A, a brand focused not just on chicken, but on "chicken sandwiches." Even though the chain is closed on Sunday (for religious reasons), the average Chick-fil-A unit does $2 million a year in revenues, some 67% more than the average Burger King. On June 7 of this year, Chick-fil-A introduced a spicy-chicken sandwich, its first new sandwich since 1989. That was 21 years ago. In many ways, marketing is a category issue and a simple test will tell you if your brand is headed in the right direction. - What category is Chick-fil-A? Chicken sandwiches.
- What category is Five Guys? Better burgers.
- What category is DirecTV? Satellite networks.
- What category is Xfinity? Who knows?
Leaders like McDonald's can violate the laws of marketing and seemingly get away with it. But not the also-rans. Sponsored By: The Brand Positioning Workshop
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Marketing Lessons Continue To Flow From Apple
Sun, 04 Jul 2010 17:10:00 -0700
Look at how the company executes a pre-launch strategy to build anticipation and generate awareness. Examine closely how Apple uses its retail partners to make the launch events an actual occasion rather than just the start of availability. Study carefully how Apple initially uses premium prices at the outset to maximise profits and communicate exclusivity, and then later as the reference price to discount from in order to drive sales from less involved market segments. But most important, look at how Apple always runs out of product long before the initial launch ends.
Sales managers and finance people must think Apple is insane. Why make less stock than the guaranteed demand? Only marketers, the good ones at least, understand that the success of the iPhone 4 hinges as much on running out of initial supplies as it does on the phone’s sleek new design. By running out of iPhones, Apple actually ensures its product will eventually be more successful. Scarcity keeps its retailers like AT&T, Vodafone and O2 onside by restricting their supply. It also ensures a vital additional hit of publicity as media coverage of retailers selling out of iPhones underlines both the massive demand for the new product and the continued success of Apple. The anticipated scarcity also drives thousands of consumers into store to pre-order their iPhone – a vital success factor for a product that is actually (whisper it) little more than an upgrade to a phone that most of these consumers already own. It also ensures essential word of mouth from consumers who did manage to get one of the phones before they sold out. Surely someone last week bored you with the news that they had secured one of the precious new machines or gave you a demonstration of their hot new phone? This is wonderful free promotion for Apple and the sort of thing Google’s Android phone, with its buy-one-get-one-free approach, is hardly likely to achieve. If marketers want their brand to have equity they must avoid the perception that it is available in unlimited amounts to everyone – no matter how many units they actually sell. Apple sold 1 million iPhones last Thursday but, thanks to their limited supply strategy, each consumer who managed to get their hands on one felt like they had obtained something precious and rare. Contrast that with brands like Cadbury and Nestlé, which regularly allow WHSmith to destroy the equity of their biggest chocolate brands by allowing the retailer to over-promote the products at their point of sale. Seemingly every time you head to WHSmith for a newspaper you are pestered to buy a gigantic bar at a discount price from the several towers of chocolate piled behind the sales assistant. These brands might be selling more chocolate thanks to this promotion but they are clearly doing untold damage to their brand as a result. Too many marketers in companies like Cadbury and Nestlé come directly from sales positions – as their subsequent brand strategies reveal. In many organisations, the senior marketer even enjoys the title of “head of sales and marketing”. Why not “HR and finance” or “operations and accounting”? These roles have as much in common with each other as sales and marketing. If marketing was the same as sales, we would have called it sales. There is a reason we use a different word. Marketing is a completely separate discipline and, in many cases, a good marketer will do everything in their power to actually prevent a sale if it’s not in the long-term interests of the brand. How could a sales and marketing executive possibly handle that challenge?
Show me a well-managed, successful brand and I will show you a company actively restricting sales from certain segments. Abercrombie & Fitch makes an XL size that most over 30s can’t get into with a blowtorch (trust me, I know). Pret A Manger closes its high street outlets at 5:30pm even though people would still buy from them for another two hours. Chanel makes six rather than 6,000 couture dresses despite global demand. Sloan MIT only enrols 400 students each year to its MBA course even though it gets 10,000 excellent applications. In each and every case, these brands could sell more. But like Apple they know that marketing is a game of chess, not checkers. Only marketers know that some sales are bad for business. They cost you money. They spread you too thin. They result in inappropriate segments trashing your brand. They are inconsistent with your positioning. Or, in the case of Apple, they will come to you anyway and bring more of their friends if you make them wait for a while. So, dear marketer, I ask this question of you: when was the last time you walked away from a sale or worked hard to exclude some consumers from your brand? If you can’t give me an example I am afraid you are not really a marketer, you actually work in sales. The good news is that there are many companies out there that don’t know the difference and would hire you anyway. Just don’t apply to Apple for a marketing role. Sponsored By: The Brand Positioning Workshop  |
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Why Computers Don’t Matter Anymore
Fri, 30 Jul 2010 05:37:27 -0700
Why Computers Don’t Matter Anymore
This content from: Duct Tape Marketing
Why Computers Don’t Matter AnymoreThis content from: Duct Tape Marketing An event occurred recently that was widely covered in financial and tech circles, but the significance of which may have been lost on most. Apple’s market cap rose slightly above Microsoft’s, making it the largest tech company in the world. Now, market cap is based [...] |
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Why Is Simple So Hard
Thu, 29 Jul 2010 09:09:02 -0700
Why Is Simple So Hard
This content from: Duct Tape Marketing
Why Is Simple So HardThis content from: Duct Tape Marketing The other I posed this somewhat trick laden question on Twitter – “Is making something easier to understand dumbing it down or smartening it up?” The answers I got were mixed. Some obviously saw that I was suggesting it’s actually harder to make some easy [...] |
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Think Like An Editor
Tue, 27 Jul 2010 12:53:18 -0700
Think Like An Editor
This content from: Duct Tape Marketing
Think Like An EditorThis content from: Duct Tape Marketing I’m writing a series of posts over at Colourlovers for HP and what follows below is an excerpt from today’s post. I’m also doing some fun video interviews with real small business called Local Color. So often content producers have no real plan. If they write [...] |
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Inspiration Is the Root of Commitment
Tue, 27 Jul 2010 09:34:14 -0700
Inspiration Is the Root of Commitment
This content from: Duct Tape Marketing
Inspiration Is the Root of CommitmentThis content from: Duct Tape Marketing I’m going to continue another day or two on this idea of commitment. Forgive me if you find it tedious, but it’s a really big, really important topic and I think it will lead somewhere helpful – I started with the Evolution of Commitment [...] |
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A Convenient Truth
Mon, 26 Jul 2010 04:39:37 -0700
A Convenient Truth
This content from: Duct Tape Marketing
A Convenient TruthThis content from: Duct Tape Marketing Last week I wrote a post on a subject I’ve been fascinated with of late called the Evolution of Commitment. The general idea of the post was to suggest that with all of this free information and free versions of products available it’s become more challenging to [...] |
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Weekend Favs July Twenty Four
Sat, 24 Jul 2010 07:42:12 -0700
Weekend Favs July Twenty Four
This content from: Duct Tape Marketing
Weekend Favs July Twenty FourThis content from: Duct Tape Marketing My weekend blog post routine includes posting links to a handful of tools or great content I ran across during the week. I don’t go into depth about the finds, but encourage you check them out if they sound interesting. The photo in the post [...] |
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The Social Profile Interactive Tool
Fri, 23 Jul 2010 11:43:33 -0700
The Social Profile Interactive Tool
This content from: Duct Tape Marketing
The Social Profile Interactive ToolThis content from: Duct Tape Marketing Email service provider Exact Target has been doing some very valuable research of late called SUBSCRIBERS, FANS, & FOLLOWERS. More importantly, I guess, is that they have been sharing this research and I think you should go grab this fascinating read. Below is a pretty [...] |
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The Evolution of Commitment
Fri, 23 Jul 2010 05:21:20 -0700
The Evolution of Commitment
This content from: Duct Tape Marketing
The Evolution of CommitmentThis content from: Duct Tape Marketing Most of us want to sell something – want to get people to commit to plopping down the hard won cash in an exchange of value. That’s certainly one of the reasons millions of business folks have jumped into online networks and social platforms – to [...] |
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Republicans Block Small-Business Lending Measure
Thu, 29 Jul 2010 15:37:00 -0700
Senate Republicans blocked a measure that would cut taxes and ease credit for small businesses, saying they objected that Democrats refused to consider their amendments to extend tax breaks and cap federal spending. |
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U.S. May Add $300 Billion of ‘Junk’ Small-Firm Loans
Mon, 26 Jul 2010 09:43:00 -0700
President Barack Obama is on the verge of creating as much as $300 billion in credit for small businesses as bankers raise doubt about whether there’s demand for new loans and how much will be repaid. |
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A Booster Shot for Gay-Owned Businesses
Fri, 30 Jul 2010 16:51:15 -0700

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Credit Unions Can Do More Small Business Lending, Cheney Says
Thu, 29 Jul 2010 08:08:12 -0700
Head of Credit Union National Association urges Congress to lift cap on lending |
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Obama Promotes Plan for Small Business, Raises Money
Wed, 28 Jul 2010 17:09:00 -0700
President Barack Obama met privately with Democratic donors and made a pitch for his plan to aid small businesses on a trip that combined campaigning for his economic policies and raising money. |
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The Boss Shouldn't Have Promoted His Sons
Tue, 27 Jul 2010 09:16:20 -0700
Morale and profit margins plunged when an entrepreneur gave his sons too much responsibility. To save the business, he must reassert authority |
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Scott Boras Interview, Pt. IV
Tue, 27 Jul 2010 08:55:53 -0700
In this week's edition of Bloomberg Venture, Cris Valerio talks with baseball super-agent Scott Boras about his background, his firm's representation strategy, and George Steinbrenner's legacy. |
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Scott Boras Interview, Pt. III
Tue, 27 Jul 2010 08:53:25 -0700
In this week's edition of Bloomberg Venture, Cris Valerio talks with baseball super-agent Scott Boras about his background, his firm's representation strategy, and George Steinbrenner's legacy. |
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Scott Boras Interview, Pt. II
Tue, 27 Jul 2010 08:49:37 -0700
In this week's edition of Bloomberg Venture, Cris Valerio talks with baseball super-agent Scott Boras about his background, his firm's representation strategy, and George Steinbrenner's legacy. |
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Scott Boras Interview, Pt. I
Tue, 27 Jul 2010 08:46:13 -0700
In this week's edition of Bloomberg Venture, Cris Valerio talks with baseball super-agent Scott Boras about his background, his firm's representation strategy, and George Steinbrenner's legacy. |
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Tony Hsieh Interview, Pt. IV
Tue, 27 Jul 2010 08:44:02 -0700
In this week's edition of Bloomberg Venture, Cris Valerio talks with Zappos.com CEO Tony Hsieh about the launch and growth of the online shoe and clothing retailer, its focus on customer service, and its sale to Amazon. |
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Tony Hsieh Interview, Pt. III
Tue, 27 Jul 2010 08:41:44 -0700
In this week's edition of Bloomberg Venture, Cris Valerio talks with Zappos.com CEO Tony Hsieh about the launch and growth of the online shoe and clothing retailer, its focus on customer service, and its sale to Amazon. |
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Tony Hsieh Interview, Pt. II
Tue, 27 Jul 2010 08:39:47 -0700
In this week's edition of Bloomberg Venture, Cris Valerio talks with Zappos.com CEO Tony Hsieh about the launch and growth of the online shoe and clothing retailer, its focus on customer service, and its sale to Amazon. |
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