Poll: Bargain Brands

I was at the store the other day picking out some items when my autopilot shut off and I became aware of the items in my basket. Crest toothpaste. Bargain mouthwash. Pantene Pro V conditioner. Bargain body lotion.

Since I used to be a faithful buyer of Scope and St. Ives, I began to wonder... How many more people are dropping name brands for store/bargain brands due to the current condition of the economy?

My curiosity pushed me to create a poll!

Online Surveys & Market Research

Small talk

I visited the Apple Web site today to discover two words on the home page, “Small talk,” with a hand holding up a tiny silver rectangle. My initial goal flew out the window (I don’t even remember why I was visiting the Apple site to begin with.) Instead, I started to click around to find out more about this shiny new product, the newest iPod shuffle. 

I already have an iPod and no need for a new one… but this little guy (and boy do I mean little) caught my attention. Not only is it the smallest music player around (the earbuds are about the same size as the shuffle itself), it also boasts the new VoiceOver feature. With the press of a button the iPod will tell you about the song you are listening to. 

Sold.

I already have a fun enough time typing random phrases into text-to-speech programs… and I figure my goal will be to fill the 4GB of space with as many lengthy, foreign or oddly spelled titles as possible. (Apple claims VoiceOver will automatically select the proper language and voice for foreign titles and artists.) 

I’m not one to collect tech toys, but this one really hooked me. I’m almost ashamed of myself! In 10 minutes, I went from not being in the market for a new mp3 player to pondering whether to have my name or a small quote engraved on the back of my new iPod shuffle (I chose “A witty saying proves nothing.” – Voltaire).

Apple quickly turned me from a casual browser to a customer with their innovative products, sleek design, to-the-point copy and free shipping. Now that's genius.

The Oscars and the Economy

It seems as if the economy has caught up to Hollywood! 

An article in the January 19 issue of Advertising Age mentioned a bit of a discount for would-be Academy Awards advertisers. Instead of the whopping $1.7 million for a spot last year, advertisers could snag a spot for a mere $1.4 million. Not only were spots cheaper… movie advertisements were accepted for the first time. 

This was a result of big boys like FedEx and General Motors dropping out of the sponsor lineup last year. ABC (and the Academy) seemed to hope allowing film ads would fill the void. 

The advertising rate decrease could have a lot to do with last year’s disappointing ratings, 32 million viewers, compared to the 39.9 million in 2007. Not to mention the great writer’s strike of ‘07/’08, which canceled the Golden Globes. There has been some tension with the Screen Actors Guild as well, so advertisers may have been reluctant to drop their dough on an event that could be canceled as result of a strike. 

Even the stars weren't as bright on Oscar night! Many of the "best dressed" stars were adorned in drab shades (ivory, champagne, grey, black) and minimal jewelry-- albeit their outfits still cost more than most of our homes, and they still looked fabulous!

Thoughts?

Wake-Up Call

Is there marketing genius in a wake-up call? Have you ever been WOW'd by a wake-up call? This morning, I was.

'Good morning. This is your 7AM wakeup call. Join us for breakfast in the Commonwealth Café for the best-tasting omelet you'll ever have in your life.'

This came from the automated wakeup call srvice at The Galt House Hotel in Louisville, Kentucky.

Most wakeup calls consist of either No Message...or a Boring, Same-Old, Same-Old message. You know it as well as I do.

Kudos to the marketing genius at The Galt House (a very nice hotel, by the way) for creating a wakeup greeting that is unique, one that presents a tasteful offer. Why be boring and dull--ever?

All morning, that 'omelet of a lifetime' kept popping into my mind. I'll bet the cafe is selling omelets 'like hotcakes.'

Zappos Truly Engaged with Customers

Twitter can be kind of fun. I've been on it for about a year. My lovely wife is now on it, too. And so is her sister. While we were poolside at the beach this Labor Day weekend, we were doing a bit of Twittering. One of our observations was that--now this year--the Crocs style of shoe appeared to be quite out of style. So I put out the following Tweet:

Observation from the beach::: Crocs are soooo 2006. What's the hot new beachy
footwear? @zappos? 01:43 PM
August 31, 2008 from txt

Notice the @zappos. I had a hunch that the world's leading shoe merchant might have something to say about the question.

Not more than 48 hours later, I got a reply. Not just any reply--but a reply from the CEO of Zappos. Here was his response:

i don't know if there are any new beach footwear brands this season! at
least none that i personally know of...
Zappos.com CEO -Tony / zappos
--
follow me at http://twitter.com/zappos
reply on the web at http://twitter.com/direct_messages/create/zappos

That, my friends, is one incredible example of managing your online presence and finding ways to connect with customers. Kudos to Tony and the other marketing geniuses at Zappos. We'll have more great marketing examples--of customer engagement, of creating loyalty, of inspiring raving fans--from Zappos to share in the days ahead.

Misoneism

Do you know about "A Word A Day?" It is a fabulous e-mail educational service. Each day Anu Garg and the crew at Wordsmith send you an interesting, unique word to help you expand your vocabulary. It's free (although they do accept donations and subscriptions), and I have enjoyed it for the past 9 years. In fact, I've shared it with many friends and colleagues over the years.

So onto today's word: misoneism. If you're a leader and a change agent, undoubtedly you encounter misoneism frequently. I'd like to think that my misoneism index is near zero. How's yours? As a marketing professional or change agent, how do you overcome misoneism?

Definition-
noun: A hatred or fear of change or innovation. (mis-uh-NEE-izm)

Etymology-
From Italian misoneismo, from Greek miso- (hate) + neos (new). Ultimately from Indo-European root newo- (new) that also gave us new, neo-, neon, novice, novel, novelty, innovate, and renovate.

I encourage all marketing geniuses to subscribe to A Word A Day ... to visit their fun Web site ... and to play around with their very cool, quirky anagram tool? What's your favorite anagram that is derived from your name? Mine is "Bring Eel."

Repairing a Damaged Reputation

Rehabilitating a damaged public image. This is one of the most popular topics that I am asked to address. From time to time, whenever controversy arises (and that seems to be more frequently, doesn't it!) the question is presented: how does one rehabilitate or repair a damaged image? How can someone rebuild his or her reputation? Given such popularity, I am reposting this article from last year with the hope that you'll again find it useful.

It takes time to rehabilitate one's image: such a matter does not lend itself to a quick fix.

Many people hope that if they say the right thing at the critical moment all will be made good. That's just not how the world works.

We, as human beings, form perceptions about other humans over time. This is the basis of reputation. If a person has made a major blunder, it equates to a big, negative hit against his or her reputation. This cannot be overcome with one press conference. No, the perfect statement at the perfect time will not wipe the slate clean. Instead, those in the audience will watch and observe, most likely in a cautious manner at first. Some will be inclined to forgive; others may become embittered permanently toward the person who made the major mistake. Over time, most people in the audience will adjust their assessments of the person in question.

So if the perfect words will not do the trick, what can rebuild a tarnished reputation? One word: actions.

As we've all heard, actions speak louder than words. Once a person has made the gargantuan gaffe, the best thing he or she can do is to consistently do good and do right. According to the laws of communication theory, 93% of the information that human beings process and learn from is related to non-verbal signals or cues. By contrast, words account for only 7% of that which we process and upon which we form perceptions. With this fact in mind, it is easy to see why actions are so much more important than words in regard to mending one's reputation.

With the clear understanding that (1) rehabilitating a reputation takes time and that (2) actions speak louder than words, let's shift the focus toward the public relations strategy. What are the right tactics to use in a situation where a person has made a career-threatening mistake?

I would advise my clients and anyone else to adhere to the following ABC principles:

A - Apologize. Admit your mistake and ask for forgiveness. Demonstrate that you have a contrite heart. This is done by speaking in a humble manner and expressing remorse.

B - Be genuine. Show some emotion. No one will forgive an over-rehearsed, stiff emotionless robot. Speak from the heart and use natural, appropriate hand gestures and other non-verbals. Obviously, we don't want to see a blubbering basket case, but genuineness and emotion can be very helpful.

C - Compassion. Show compassion. The root of the word "passion" is "suffer." To show compassion is to demonstrate that you are suffering with the person (or parties) who were affected. The audience will identify with compassion and respond favorably to it. Perhaps no one understood this better than Bill Clinton who repeatedly emphasized: "I feel your pain."

Remember that non-verbal communication is crucial. People in the audience are watching, more than listening. Therefore, the speaker's emphasis should be placed upon apologizing, being genuine and demonstrating compassion. It may be acceptable to speak briefly about one's past track record (which may have been glowing and heroic) but only in the context of remarks about future plans to atone for this incident. Specifically, the speaker may want to briefly discuss specific plans about rehabilitating himself, through counseling, clergy, medical care, training or community service, to demonstrate that he is focused on atoning for his actions and preventing future blunders.

All in all, the majority of the positive impact, or image rehabilitation, will come in the weeks and months that follow the initial episode. Sorry ... there simply is no quick fix.

Accordingly, we would work with our client to establish an ambitious, pro-active outreach plan to lead them through this subsequent phase. Ultimately, the key to successfully rehabilitating a reputation is consistently repeating good deeds, rightful and helpful acts, over an extended period, in a manner that reestablishes trust.

Do Agencies Get Social Media?

Friend, blogger and marketing genius, Tom Pick of Web Market Central posted this interesting commentary recently. (Perhaps I found it interesting because he cited our firm. Thanks for the compliment, Tom!)

Tom's thesis is that smaller marketing consulting firms, like ours, are exploring and implementing social media tools (such as this blog), while larger traditional agencies are still relying upon traditional tactics like advertising and PR.

While this is true and we are, indeed, exploring and learning about new ways to communicate and promote, we have not completely abandoned traditional media. Our soapbox philosophy and credo remains: success lies in creating aligned layers of strategic marketing tactics. The Web, blogs, Facebook and Twitter are new, promising (and exciting) channels--not the answer. In fact, we hold as truth the belief that there is no such thing as the answer. Each client is different; each situation with corresponding objectives and audience targets is unique.

Part of the beauty of Web 2.0 and social networking is the relationship aspect. I have not met Tom Pick (in person). Yet, we are working together to share ideas and to promote the best of what the other is doing. And once you jump onboard with social media and embrace the concept, you will meet dozens of allies. I certainly have, and I consider it a true blessing.

West Virginia's Business Potential in a Web 2.0 World

Jason Keeling and I will present “Business for Breakfast” at the Charleston Marriott’s Whitewater Grille, on April 25, from 7:30-8:30 a.m. The focus will be Web 2.0: Blogs, Pods and Twitters — How Emerging Internet Technologies Can Enhance Business Communications. We’ll consider the growing importance of blogs, podcasts, and social media sites like Facebook and Twitter. We will discuss the significance of these technologies to West Virginia businesses and organizations. We are also utilizing Zoomerang to poll our audience in advance of the presentation to assess their familiarity, needs and expectations.

Pre-registration at http://www.score.org/ is appreciated. The event is sponsored by The State Journal, SCORE, and the West Virginia Small Business Development Center.

Add questions and comments here or at aBetterWestVirginia to get the conversation started early.

Branding Historical Sites Can Be Tricky

You will enjoy this insightful and thought-provoking guest article from our good friend and colleague, Jason Keeling.

The former Weston Hospital (W.Va.) had capacity to provide for up to 2,000 mental health patients until it closed in 1994. This National Historic Landmark remained quiet until 2007, when a contractor purchased it for $1.5 million. The new owners recently decided to market the location by its pre-Civil War name, the Trans-Allegheny Lunatic Asylum.

That decision has drawn the ire of several disability rights groups who claim the terminology is derogatory and outdated. Ann McDaniel, executive director of the Statewide Independent Living Council told the Associated Press: "It's like turning back the clock to a time we don't want to go back to...I think they could still do what they want to do without being offensive."

The owners claim that reverting to the original name is a matter of historical preservation. Commentator Hoppy Kercheval points out that the old mental hospital in Williamsburg, Va. is known today as it was more than 200 years ago as “The Public Hospital for Persons of Insane and Disordered Minds.”

So Marketing Geniuses, do you believe using the Weston Hospital's old name is an appropriate branding strategy, or should a more politically correct title be selected?

Jason Keeling is a PR Consultant, a fellow blogger and an all-around smart dude. His contributions as a young business leader in West Virginia were recognized in 2006 by The State Journal, which named his as a member of its Generation Next: 40 under 40.

Starbucks: Charlie from Bridgeport, WV

Allow me to introduce you to Charlie (photographed with permission by yours truly). Charlie is a barrista.

Scratch that. Charlie is a coffee guru. He knows coffee and espresso. He's passionate. Truly enthusiastic about coffee. It is obvious to anyone that Charlie loves what he does.

Wednesday afternoon, we made it a point to visit Charlie's Starbucks in Bridgeport, West Virginia. We've been following this whole Starbucks turnaround, along with several other bloggers, with great interest.

And so, on this cold, damp, windy March Wednesday, we wondered: following last week's company wide three-hour training shutdown ...

Would there be any palpable difference?
Had things changed inside this one Starbucks store?
Would we be able to notice anything?
What would employees report about the training episode?

We could not help but get caught up in Charlie's enthusiasm about coffee, as we listened to him advise a patron on choice of beverage. Painting an elaborate and engaging word picture, Charlie built the customer a caramel macchiato ... layer by layer. Ingredient by ingredient. Step by step. At each juncture, Charlie explained how each process and each layer added to the taste, texture and feel of the drink.

After eavesdropping on aforementioned conversation, we talked with (interrupted, quite truthfully) Charlie about the training.

Did last week's three-hour training make a difference? "Yes. The company has traditionally relied on a lot of book learning for new-employee training and orientation," Charlie explained.

"This week's training was hands-on. It allowed our employees to see, touch, feel, smell and hear how to make great espresso. How to serve it. It's one thing to read about it. It's another thing to demonstrate and to try it out. They encouraged us to make some mistakes ... milk that has been oversteamed and such. And to study the goof-ups. We all learned some things. I think it was much needed and it was beneficial."

Charlie continued, "I am really excited about having Howard Schultz personally involved in the business again. That really helps."

The answers to all of our questions had become evident in the form of Charlie and his passion. Kudos to Charlie and everyone everywhere who loves what they do. And here's to marketing genius Howard Schultz: congratulations on building a great brand--and having the pride, commitment and courage to rebuild it.

Post Script - In the name of balance and full disclosure, the staff did not ask our names to assign to our orders, nor did they call us by name to announce our drinks were ready. That would have been a nice touch. But I certainly appreciated the young lady's suggestion of a Peppemint Mocha, and it tasted especially delicious this time. It was richer and I sort of nursed it for about 40 minutes, instead of chugging it.

Welcoming a new Blogmeister!

David Pray, our neighbor and friend, has launched his first blog. Head on over to Dave's 209 Capitol Street blog and check it out. Give him a hearty welcome and let him know that you are part of the Marketing Genius community.

I think Dave's approach, which is to chronicle a development project with a blog, telling the stories of the places, people and processes as they unfold, is unique and appealing. Naturally, some of the projects will have compelling historical backgrounds, as well.

Adding an additional marketing touchpoint to his development consulting practice, Pray Works, Dave plans to give each project its own separate and distinct blog, with cross references and links as appropriate.

Cool concept, Dave. Best of luck--and welcome to the blogosphere!

Tell Us!

Considering the fact that a whopping 75% of consumers rate “word of mouth” as the #1 influencer of their purchase decision, what is your business doing that makes people talk?

Google's Whimsical Logos

Don't you love how Google posts special thematic or seasonal variations of its logo every so often? I surely do. They call them "Google Doodles." It keeps it fun and interesting. Here's their special Valentine's logo below:

Actually, you've probably seen it in context already on Google, considering the fact that 200 million people visit each day. Kudos to Dennis Hwang and the design team at Google and to its leaders who see the value in doing cool, fun stuff like the Google Doodles!

Hidden Logo Design Elements: Hershey Kisses

With Valentine's Day coming soon, we have a sweet little brain teaser for you. Can you find the hidden design element in the Kisses logo?

Yes, we know that you are now suffering from an insatiable chocolate craving. Sorry 'bout that.




How many times have you looked at the Kisses logo? Have you ever noticed anything special about it, aside from the letters, the colors or the word itself? I have to admit that even though I've eaten my fair share of Kisses over the years, I had not noticed the wonderfully subtle design touch that is embedded inside the logo.


Here's another photo that may help you find the hidden design element. Don't worry about the product itself. Forget about the mini cookies and the confetti sprinkles. Just see if you can find the unique, hidden element within the "Kisses" logo.


If you like these visual puzzles, we have several in the blog archives that you will enjoy.


Have fun ... but please do not blame me if you are unable to look at a logo the same way ever again.

KFC Invades the Super Bowl: Fowl Play?

On the eve of the biggest game in football, Kentucky Fried Chicken is making news without buying one second of advertising. KFC is promoting their new line of chicken wings by announcing they will award a $260,000 scholarship in the name of the “athlete or on-field entertainer who is filmed doing the chicken dance in the end zone for at least three seconds.” (Trivia: $260,000 is what it would cost to buy three seconds of airtime during the game.)

Critics, however, are crying “fowl” (I know…) saying that KFC is guilty of “ambush marketing” and isn’t playing by the rules. Marketing geniuses: What do you think of KFC’s strategy? Guerrilla brilliance or rotten egg?

P.S. Despite the coverage KFC has received leading up to the game (worth well beyond $260K, by the way), don’t count on seeing any touch down arm flapping. It’s been reported that the NFL will fine any player who participates.

See the full article at http://adage.com/article?article_id=124768

Too Much E-Mail?

If e-mail traffic continues to increase at its present rate, the average corporate e-mail user will spend 41 percent of the workday managing e-mail messages in 2009.

Whoa. That's disturbing. If you are anything like me, you sometimes feel like you're drowing in e-mail? In fact, I feel like e-mail has nearly reached the point of ineffectiveness in many respects.

Here's help, courtesy of a recent article in Jugglezine. [By the way, I have to give another well-deserved plug for Jugglezine. It is one of the best, most relevant and well designed e-communications that I receive.]

Seize control
In this age of e-mail gone wild, is it possible to escape its ever-widening reach? Sure, you can turn off the sound that signals the arrival of e-mail to prevent distraction, and you can set aside several time blocks each day to address e-mail instead of checking your inbox constantly.

But those practices alone won't cut down on the sheer volume that clogs up your inbox. The solution is to change the way you send, write, and file e-mail. Here are eight high-impact techniques--all recommended by experts and road-tested by employees--to help you manage e-mail more effectively and seize control of your workday.

Send fewer e-mails. A 20 percent reduction in e-mails sent correlates to a 10 percent reduction in e-mails received, according to Song's research. Before you write a message, ask yourself three questions: Is this information timely and relevant? Does the recipient really need it to do her job today? Is this message appropriate? If the answer to each question is yes, then send the message.

Get the full article here.

Chili's Dog Tags - Clever Recognition Tactic

These "dog tags" were spotted yesterday worn proudly by our lunchtime server at Chili's in Charleston, West Virginia.

One reads: "Give Back." The other says: "Get Ready."

[Pardon the blurry, lo-res photo.]

Why was our cheerful, charming waitress wearing dog tags .. and wearing them with such pride? These dog tags, she explained, were earned. It's all part of a new employee recognition program underway at Chili's. She can earn a dog tag by completing a learning module or receiving a praiseworthy comment card (or survey) from a customer.

I've seen some really bland, ordinary employee recognition programs. Think paper certificate. Think blurb in the internal company newsletter.

Bland this is not! These dog tags are cool. Unique. Visible. Hip. I think Chili's has really struck a chord with these trendy badges of honor!

What does this have to do with marketing? It's part of "living your brand." We're going to be engaging with you in many conversations about "living the brand" over the weeks ahead. Sound good? Interested?

Valuation of an E-Commerce Relationship

Recently we've been working on an e-commerce project for a client. The client's project involves a major Web play. And so lately I have been scouring the Internet and reaching out to smart friends to find the answer to these questions:

1- What is the monetary value of a registered member (i.e., an opted-in community member) on a retail Web site? This person has purchased a product or content from you.

2- What is the monetary value of an opt-in, e-mail address for an e-commerce prospect. This is someone who has not yet become a customer but who has granted you permission to add their contact information to your database.

The answer of course is: "It depends." But thanks to good friend and marketing guru Jeff James (a Microsoft alumnus), we can all refer to the following primer.

Customer Lifetime Value (CLV) is the dollar value of a customer relationship based on the present value of the projected future cash flows from the customer relationship:

Customer Lifetime Value ($) =
Margin ($) X (Retention Rate (%)/1+Discount Rate(%) – Retention Rate (%)
In a web ecommerce scenario, that should be relatively easy to figure out based on the average dollar amount of a sale, average frequency of sale, etc. On a site where ad revenue is generated, it can be more complicated, but still doable.


Prospect Lifetime Value is the expected value of a prospect minus the cost of prospecting:

Prospect Lifetime Value ($) =
Acquisition Rate (%) X [Initial Margin($) + CLV ($)] – Acquisition Spending ($)

Acquisition rate above refers to your closing percentage, i.e., the percentage of prospects who will actually buy. In the case you reference below, the firm should have some idea of what percentage of prospects come to the site and registers, and what percentage of the registered prospects turn into buyers before they could factor this value.

Finally, here are a couple of other good sources for this topic and related ones (e-commerce, e-mail marketing, search engine strategies, etc.):

Marketing Sherpa
Silverpop

If any of our marketing genius readers have relevant info and would like to contribute to the knowledge base, please leave us a comment.

Calling All Charleston Area Bloggers

A couple of friends are working to jumpstart and rejuvenate the local bloggers group. It was known as CAB and met on Friday mornings at Taylor Books. [I was never able to attend yet, due to scheduling, but always wanted to join. Always heard good things coming out of those meetings.] This promises to be fun, informative and possibly even entertaining!

Oncee wanted me to spread the word. I'll post again with the date/time of the next CAB meetup.