Showing posts with label branding. Show all posts
Showing posts with label branding. Show all posts

Monday, May 24

Establishing Reputation: A Holistic Approach To Business

Every year, Reputation Institute looks at how the general public rates 1,000 companies in over 20 industry categories in more than 25 countries, making Global Reputation Pulse the largest study of reputation in the world. Most of the work focuses on how companies perform in their home countries, but an article in Forbes today highlights 28 companies with international merit.

The Top Ten Brands By Reputation.

1. Google (United States)
2. Sony (Japan)
3. The Walt Disney Company (United States)
4. BMW (Germany)
5. Daimler (Germany)
6. Apple (United States)
7. Nokia (Finland)
8. IKEA (Sweden)
9. Volkswagen (Germany)
10. Intel (United States)

Microsoft just missed the top ten. And there are many great companies that round out the full list of the 28 most reputable companies. The study was based on several factors, including products and services, innovation, workplace, governance, citizenship, financial performance, and leadership.

Understanding What Reputation Really Means.

One of the most common mistakes in business is to use two terms — brand and reputation — interchangeably. (The same can be said for brand and identity.) The confusion has become more pronounced in recent years, in part, because some social media experts frequently combine identity, brand, and reputation. So let's dispel some of the mystery.

There isn't much reason to reinvent an answer in this case. Richard Ettenson and Jonathan Knowles clarified brand and reputation well enough in 2008.

They defined brand as a “customer-centric” concept that focuses on what a product, service, or company has promised to for its customers and what that commitment means to them. In short, it's the total net sum of all positive and negative impressions about a company based largely upon the consumer-company relationship.

Reputation, on the other hand, is a “company-centric” concept that focuses on the credibility and respect that an organization has among a broad set of constituencies. This would include everyone: employees, investors, regulators, journalists, local communities, and customers. And, it would include all those factors cited by the Reputation Institute.

If you need an example to help drive the difference home, Walmart is one of the best companies to consider. It frequently scores high as one of the best known brands, but its reputation often serves as its primary detractor. It will always be that way for Walmart until the company holds itself to a higher standard.

What It Takes To Establish A Strong Reputation.

1. Product/Service. The ability to deliver on a brand promise — products and services — is paramount to establishing legitimacy. It's one of the primary reasons Google sucked some of the air out of Yahoo as search stewards. As Yahoo bought companies and rebranded them to the central brand, it also inherited and transposed product and service issues. Sometimes it worked out okay with platforms like Flickr, but it suffered the opposite fate with platforms like MyBlogLog. Google, on the other hand, saw its reputation soar as it transformed its acquisitions into Google culture.

2. Brand & Identity. While reputation, brand, and identity are different, they work in tandem. While the products and services may have differentiation, the ability to communicate that differentiation makes all the difference. Apple is paticularly good at this by demonstrating its minimal design elements and innovation virtually with everything it does, right down to the people we expect to see behind the counters of any Apple retail outlet.

3. Advertising. While anyone can argue the finer points of whether social media has circumvented the traditional principles of advertising, it's still the primary source of message delivery. Advertising, more than any other discipline, communicates the brand promise, establishes the identity, and attracts enough attention to create sales opportunities. Sure, sometimes advertising drives sales, but mostly it focuses on everything else.

4. Public Relations. While some people might take exception to seeing public relations follow advertising, there is some truth to the idea. Public relations (and this includes but is not limited to the art of media relations) works to have other groups — ideally employees (via internal communication), investors, regulators, journalists, local communities, and customers — to adopt and believe in the brand promise. To do it, public relations professionals need to assist in creating an environment of mutual trust.

5. Corporate Citizenship. Great companies do not operate within a void. They generally consider corporate philanthropy part of their culture. Even small localized companies can learn from larger companies in that if the community isn't economically viable, healthy, vibrant, and provides a better quality of life, then it will wither. And with it, so will sales within that community.

When you add it all up and look to some of the best run companies in the world, you might sometimes come away with the feeling that those scoring highest on the reputation charts seems to have it all or, at least, very close to it. In some ways they do. But what's even more important to consider it that any company (or individual) can have it all too. It's a choice.

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Monday, May 17

Engineering Trust: Can Toyota Do It?


According to a recent study by Consumer Reports, Toyota has lost more than sales in the first quarter. It has experienced a spiraling decline in consumer loyalty.

In April, 57 percent of current Toyota owners said they would "most likely" buy another new vehicle from Toyota, which is down from 70 percent in December, with Honda and Ford the new beneficiaries. While Toyota has lost some consumers permanently, Honda now tops consumer loyalty with 68 percent of Honda owners saying they would buy another Honda. Ford has climbed to 61 percent.

While Toyota did manage to curb sales losses with zero-interest financing and cheap leases, it could be undermining its own long-term brand value as incentives tend to be quick fixes that competitors can match. And, if continued too long, can create consumer expectations to wait for more historic sales once they are over. Toyota's defensive posture throughout its recall crisis may have long-term consequences.

"There's permanent damage there," James Bell, an analyst with Kelley Blue Book, told the Daily Finance. Though not fatal, the recalls require that "Toyota compete in a way they haven't in 25 years."

Restoring Trust Starts At The Local Level With Dealerships.

If Toyota wants to regain long-term consumer loyalty, it may need to reconsider national sales efforts and focus in on where trust really counts — with individual dealerships. While reliability may no longer be associated with the once admired auto manufacturer, dealers could make the difference with one-on-one consumer-dealer communication and outperforming on service expectation.

A recently published five-month study by Foresight Research backs up such analysis. More than 50 percent of all new car buyers surveyed reported the dealership experience as being "highly influential in the purchase process." In fact, dealership experience is the number one factor positively influencing sales during the car buying experience.

"At a time when the dealership network is under increased pressure across the industry, this data clearly supports that no single aspect of the automotive sales and marketing spectrum is more influential than what happens inside the dealership," said Steve Bruyn, president of Foresight Research. "Many buyers visit the dealer early in the shopping process, not just at the end of the process so automotive marketers have a big opportunity to win new customers and build brand equity by offering attractive dealership environments."

To capture a positive in-person experience, the burden primarily resides on the sales team. Study respondents attribute positive experiences with professionalism (90 percent), product knowledge (84 percent), and trustworthiness (66 percent). Sixty-seven percent also said that inviting, modern and well-organized showrooms makes a difference.

When you stop to think about it, the new study goes well beyond auto sales. These factors tend to be the same underlying trait associated with sales professionals, consultants, and even bloggers, online and off.

But for Toyota specifically, the national brand needs to work at non-incentive reasons to drive people into the dealership and then encourage their dealers not to blow it. And, for some dealers, that may require a culture change.

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Wednesday, May 12

Closing Out Cows: Final Lessons From A Dead Network


Once upon a time there was an increasingly popular social media network that resembled Twitter. It had a memorable name. It had a lovable mascot. And its member base seemed to have a mission to make it a "Twitter killer."

Truth be told, very few network knock-offs, even with slightly enhanced services, ever have a chance of supplanting popularity. While it may change one day, numbers attract numbers. But even so, we had placed the network on a watch list because the application did have something that Twitter didn't. It had better multimedia functionality.

But then something happened. In September 2008, Utterz changed its name to Utterli. It traded in its mascot for something resembling a Sprite logo. And its members were surprised, and then disgusted, by the lack of communication about the change. It was a disaster and I had no problem calling it as such.

"As much as you might characterize it as a 'disaster,' our customer base has grown substantially since the change - and the growth rate is rising," said Michael Bayer, CEO of Utterli. "That's GREAT! I call that a success."

Bayer went on to say that I was fishing for attention. He said I insulted him. And he insisted that despite community feelings, it was his decision to make. Besides, he implied, my round-up of member feedback wasn't enough. I wasn't a member anyway.

After that, we tracked the steady visitation decline that followed in the six months after its claimed "successful" name change. We almost followed up on the post then too. But it didn't seem worthwhile to re-engage a defensive CEO. So I promptly forgot about it. So did everyone else.

In fact, I hadn't thought about Utterli again until reading Doug Haslam's post that Utterli was dead. In truth, it had died in September 2008. And, almost sadly, a short one-and-a-half years later, Utterli didn't even have time to say goodbye.

As for all those promises that Bayer made about enhancements that would carry the service forward? According to the ByteMonkey Chronicles (which is also credited with the image accompanying today's post), it was very much the opposite. ByteMonkey says even then there was an underlying feeling among the users that the company wasn't quite doing so well.

Lessons For Networks And Participants.

Networks. While seeing what could have been a successful service come and go is never pleasant, there are a few lessons that can be taken away. For network owners, it' simple. I've said it before. Unlike product companies, you are only as successful as your members. And without them, you're nothing.

So abrupt change is bad. Sure, Twitter and Facebook can get away with it nowadays because they've reached a critical mass of sorts with no clear alternatives that support the numbers. But in the case of a brand like Utterz, improper communication with the community is a killer. Never mind what Bayer said in response to my critique on his company's rebranding roll out, the truth was that they didn't do any of it (and if they did, then they did it all wrong).

Add to that knowledge that anything done for investment capital or with the hope of being sold is generally a bad idea until you have the cash in hand. And even then, the guidelines for operating a successful venture after a sale or infusion of cash doesn't replace the community commitment. There are scores of social networks that have failed. And, there are more that will eventually fail or fade away too.

Participants. If you continue to rely on network tactics alone, one day you may find yourself with nothing. As reported by ByteMonkey and Haslam, Utterli isn't just dead. All of the member content and contributions are dead too.

So too is any need for Utterz tips and Utterz tactics that are useless because that community is no more.

In other words, don't fall in love with any network unless you can back up your content. Case study closed.

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Thursday, April 29

Advertising Challenge: Apple Suggests No Crappy Stuff


"As a creative director, I can completely understand that they [Apple] created this new baby and they want to make sure it gets born looking gorgeous. But as a creative director, I don't feel completely comfortable letting Apple do the creative." — Lars Bastholm, chief digital creative officer at Ogilvy & Mather Worldwide.

That was what Bastholm told The Wall Street Journal on the news that Apple's upcoming iAd program will require advertisements to go through an approval process and require Apple to build the ads for aesthetic and functionality reasons. It is one of several hurdles, along with price (1 cent per banner impression and $2 per view),  to reach more than 85 million iPhone and iPod Touches sold.

For the launch, marketers will pay as much as $10 million, which is much higher than the $100,000 or $200,000 most agencies are used to paying. One early example is Nike (it has endorsed the Apple creative), which Apple has been using to introduce the iAd concept. How to build an app advertisement isn't the only advice Apple CEO Steve Jobs recently shared with Nike.

Mark Parker, president and CEO of Nike, shared Jobs' advice at Fast Company's Innovation Uncensored conference. "Get rid of the crappy stuff," he said.

The Apple Approach.

There are two ways to take anything Steve Jobs says. You can think of him as an egomaniac, as some people reportedly do. Or, you can think of him of someone who is always trying to raise the bar higher, which is why you won't see Adobe's Flash technology on an iPhone. He said more than that.

"Flash was created during the PC era--for PCs and mice," Jobs said in the letter. "New open standards created in the mobile era, such as HTML5, will win on mobile devices (and PCs too)," Jobs recently explained in an open letter. "Perhaps Adobe should focus more on creating great HTML5 tools for the future, and less on criticizing Apple for leaving the past behind."

Adobe won't argue the point. It is reported to be working to improve Flash, specifically to appease Mac, despite what Philip Elmer-DeWitt had to say about it.

The Advertising Challenge.

When you add it all up, some people might think Apple only wins because its competition is lousy. But maybe Jobs and crew would welcome the opportunity to be pushed a little harder, with someone not only developing better products but better advertising to boot.

While there are some great examples out there, communication has become more complacent as of late. While social media has shown some companies how integrated communication can work, turf battles still exist with everyone — public relations, advertising, marketing, corporate communication, etc. — fighting for dominion over the same space.

The results are sometimes convoluted. According to one recent survey by Vocus, 43 percent of public relations professionals feel they should own social media and 34 percent of marketers feel they should own social media. Seriously?

Seriously. Someone should sit those folks down and tell them no one owns it. Or, perhaps, more accurately, nudge and remind them that the company not only owns social media but their departments or contracts as well. The first rule of order ought not to be who's in charge, but how can we accurately and provocatively communicate the company's message.

And with that in mind, can anyone blame Apple for wanting the opportunity to set a higher bar for advertisements? Say what you will about the company, but its messages match the product across all communication channels. The company already knows that the the communication of tomorrow will be both striking (advertising), responsive (public relations), and interactive (technical). See for yourself.

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Friday, April 2

Targeting Mascots: Corporate Accountability International


In one of the more absurd public relations campaign linkages to date, Corporate Accountability International is making the case that the best way to prevent childhood obesity is to retire Ronald McDonald. According to the release, the percentage of obese children has tripled in children ages 2-5, and quadrupled in children ages 6-11.

"This clown is no friend to our children or their health," said national spokesperson Stacey Folsomof, Corporate Accountability International. "No icon has ever been more effective in hooking kids on a harmful product. Kids have become more obese and less healthy on his watch. He's a deep-fried Joe Camel for the 21st century. He deserves a break, and so do our kids."

According to the release, parents have a growing recognition that the fast food industry is the primary driver, with close to 60 percent of Americans feeling that the industry is responsible for the growing epidemic. The report, Clowning With Kids' Health, analyzes how Ronald McDonald and other children's marketing are at the heart of current trends.

Highlights From The Clowning Study.

• Two out of three Americans have a favorable impression of Ronald McDonald, which is the result of positive branding for 50 years.
• More than half "favor stopping corporations from using cartoons and other children's characters to sell harmful products to children."
• 47 percent support retiring Ronald as a corporate mascot, with 46 percent of those with a favorable impression of him also wanting to retire him.

How My Son Debunked The Study.

Since nobody in our office could find any evidence of children, ages 2-5, riding up to McDonald's drive-thru windows on tricycles to support their habit of Happy Meals and shakes, I asked them how do these kids get the merch? Blank stares. So I asked my son, age 11. He's on spring break.

"The few times we ever go near McDonald's, Mom drives us," he said, then amused. "But the image of Ronald McDonald doesn't make me want hamburgers. I would blame the Hamburglar."

Interesting. Based on his input, we might conclude that parents who drive their kids to McDonald's excessively might actually be responsible for childhood obesity. Or, if you prefer the wit and wisdom of an 11-year-old boy exposed to countless commercials, it might be the dude in the striped pajamas.

More likely, the real curators of childhood obesity beyond parents are school cafeteria lunches. You see, with the exception of schools smart enough to adopt the National Farm to School Network, students seem to be served a nutritional menu that could be below even McDonald's standards. Still, I wasn't sure. So I asked one of our clients, Allen Wong, who manages Kung Fu Plaza in Las Vegas, since Thai food is generally considered the healthiest in the world.

He cited a February 2008 article in Edutopia that compared school lunches in the United States, Russia, and Japan. Americans are eating turkey dogs and tater tots. Russians are eating beef, beet soup, and rye bread. And Japanese students are eating wonton miso soup, spinach and Chinese cabbage, rice, and milk.

Interesting. Based on his input we might draw some other conclusions. First, if Corporate Accountability International really intended to do something about childhood obesity, it might start with school lunches or the candy and snacks some school districts use as rewards. Second, the study proves there is a healthy trend in this county to blame everybody for the purchasing decisions of parents, except the parents.

Of course, if you don't see any of these points as glimmers of truth, then all I can suggest is you better be careful this weekend. I heard that the Easter Bunny is in town and he's ready to force feed children baskets full of candy. Except at our house. He tends to leave coins tucked inside those plastic eggs.

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Friday, March 19

Shopping Psychology: How Consumers Connect To Brands


A new study of social media from Chadwick Martin Bailey reinforces what many people already think they know: 60 percent of Facebook fans and 79 percent of Twitter followers are "more likely" to recommend a brand after becoming a fan or follower. And 51 percent of Facebook fans and 67 percent of Twitter followers are "more likely" to buy from brands they connect with.

And yet another study recently conducted by trendwatching.com, a consumer insight firm, revealed that consumers do not identify with brands. In fact, not a single consumer said they believed any brand cared about them, except as a source of profit. And many, according to the study, said they have no love for any brand and found loving a brand to be unnatural.

Can they both be right? How about wrong?

Marketing's Understanding Of The Brand Relationship Is Digressing.

I tend to advocate for the brand definition as proposed by Phil Dusenberry, former chairman and chief creative of BBDO Worldwide. Dusenberry, if you don't know, was responsible for campaigns such as "We bring good things to life," "It's everywhere you want to be," and "The choice of a new generation." Those campaigns belonged to GE, Visa, and Pepsi. He also helped elect Ronald Reagan and co-wrote "The Natural" with Robert Redford.

“Brand is the relationship between a product and its customer,” he said.

Dusenberry was right. (He was right about several things, which you can glean from one of his last interviews. But where we can deepen his thinking is understanding that brand relationships do not always occur because of a direct connection between a brand and a consumer. There are some degrees of separation between the consumer and the brand.

Consumer-to-brand. Some brands do have a direct relationship to the consumer. Most notably, Apple and Coca-Cola have some of the strongest direct relationships. We can see it in psychological studies and intense interest.

Consumer-to-experience, tied to brand. Some brands rely not on a brand relationship, but the consumer experience provided by the brand. Offline, the Four Seasons has mastered the experience. Online, Facebook delivers. On a smaller scale, horseback riding might be the experience people connect to, regardless of who delivers it.

Consumer-to-product/service, tied to brand. Some brands win because they deliver a specific product or service people expect. The concept has propelled McDonald's to the top of quick service restaurants. Amazon demonstrates it online. Or, a consumer might love their car, but not the manufacturer.

Consumer-to-idea, tied to brand. While he might not have framed it up this way, Dusenberry's initial success with the Pepsi Generation concept was directly tied to association of an idea to a brand. The idea of "change" propelled Barack Obama to his presidency (and has also contributed to declining poll numbers as the "idea" has not materialized).

Consumer-to-group identification, tied to brand. One of the most recent success brand stories is undoubtedly Zappos. And although Tony H. was wrong to think the Zappos branding strategy is unique, he created a culture people wanted to belong to. In the 1970s, so did Kiss.

Consumer-to-individual Identification, tied to brand. If you ever wondered why Chris Brogan or Seth Godin are popular, it is because people identify with them. Offline, it's any number of celebrity spokespeople and motivators like Anthony Robbins.

Consumer-to-friend(s), tied to brand. Most recently, Geoff Livingston demonstrated friends will support friends and personal connections, especially to do good, because it brings the degree of separation between the cause and the friend within two degrees. It motivates people to join fan pages on networks like Facebook, even if the friend or follower has no connection to the brand.

Keep in mind, that many brand relationships work across several of these connections. Many of those mentioned above do not rely on one connection exclusively. And, there are several other relationships not listed here.

However, it can also illustrate how some social media and marketing constructs weaken relationships between a brand and the consumer. Ergo, if the only reason a consumer buys a book is because they have a connection with Oprah, the connection to the author is three degrees removed (consumer-to-Oprah-to-book-to-author) and the publisher could be as many as seven degrees removed from the publisher. Or, in considering the primary difference between Coca-Cola and Pepsi, the former has a direct connection and secondary connections whereas the latter has relied on secondary connections.

How does this help us decipher two studies? People do connect to brands, but they often do not connect to them in any way they can or want to articulate. Conversely, the majority of people who follow a brand on Facebook or Twitter are "more likely" to buy from those brands is virtually predetermined. Why else would they follow a brand? Well, we provided several possible reasons above, most of which people would not want to or cannot articulate.

So what is really going on? It seems evident that social media can help companies benefit from secondary connections — individual identification, friend identification, group, experience, idea, and so on — stuff that they never considered before. However, relying too much on social media can also cause interference between the consumer and the brand.

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Thursday, February 25

Branding Advantages: Credit Suisse Links Brand To Market Performance


Credit Suisse Research Institute, which identifies and provides insights on global themes and trends for Credit Suisse AG, released an in-depth analysis of how a company's brand can be one of the few true competitive advantages remaining in modern industry. The study focuses on industry and company conditions that are vital for brand success as well as a model for brand lifecycle that suggests key entry and exit points for investors.

"We believe a strong brand is one of the most powerful and sustainable advantages a company can have, but one that is often ignored by the financial markets," said Omar Saad, director at Credit Suisse. "We believe brand stocks will continue to outperform the market, and our proprietary framework analyzes brand lifecycles to determine how and when to invest in brands for optimal returns."

Key Findings From "Great Brands of Tomorrow."

• Stronger brands consistently generate out-sized long-term growth and returns for shareholders.

Companies that invest at least two percent of sales revenue on marketing outperform the S&P 500 by more than four percent annually. The top one-fifth of strongly branded companies outperform the market by 17 percent.

• Some industries are more brand friendly than others.

The study demonstrates that brand power is strongest in industries that have the closest proximity to the customer. This suggests that even B2B companies benefit from some direct-to-public communication. The study also demonstrates that reputation is one of the most important roles in customer purchasing decisions.

• Most brands follow a sustained arc with five distinct stages.

These stages include: emerge, hit the wall, transform/proliferate, dominate, and reinvent. For investors, this means spotting companies that transform from a niche player into a powerful brand that can be proliferated across new markets and categories.

• Tough financial times are often the most opportunistic backdrops for great brand companies.

As weaker competitors scale back and new entrants delay riskier plans, strongly branded companies emerge out of a weakened economy and outperform the market by as much as 18 percent within the first six quarters of recovery. According to Credit Suisse Research Institute, brand stocks are already beginning to outperform their markets by seven percent since March 2009.

In addition to its report, which identifies brands and their relationship to the market, Credit Suisse released a list of 27 brands that it believes will outperform based on their brand advantage. They include: Alibaba.com, Almarai, Amazon, Apple, BIM, Capitec, China Merchants Bank, Commercial Aircraft Corporation of China, Enfamil, Facebook, Hyundai Motor, Indian Hotels, Julius Baer, Li Ning, Mahindra & Mahindra, MercadoLibre, Mercedes-Benz, Polo Ralph Lauren, Sonova Holding, Swatch, Tiffany & Co., Tingyi, Trader Joe's, Tsingtao Brewery, Under Armour, Uniglo, and Yakult Honsha.

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Tuesday, February 23

Sharing Happiness: Coca-Cola


By now, you may have heard about the viral video, Coca-Cola "Happiness Machine," on YouTube that generated 1.5 million views in about a month. Some pros keep asking me how they hit 1.5 million views, but they're asking the wrong question.

Even reading the write up by Christine Kent doesn't tell the full story. Atlanta-based interactive agency Definition 6 shares its tactical and technical goals, and reveals that neither Definition 6 nor Coca-Cola pushed the production with a publicity campaign (an all-too-tempting component of anxious agencies and clients). They let their considerable fan base find the video and share it on their own.


Coca-Cola's "Happiness Machine" Celebrates The Brand Relationship.

The video works. It doesn't focus exclusively on the product (it even shares non-Coke products). It doesn't center on customers or demographic examples (as many social media proponents claim). Instead, it focuses on the relationship between the product and the customers, and what happens when the two come together, underscored by the social aspects — sharing Coke — between friends in a setting where spontaneity is a welcome distraction.

Two weeks ago, I shared a presentation that discusses the elements of great writing, with an emphasis on how communication needs to be accurate, clear, concise, human, and conspicuous. The Coca-Cola video hits all of these elements, effortlessly, without the need for a script beyond the concept. It also captures many of the elements that make up news — stories that people need to share.

Sure, not every company packs the power of the Coca-Cola brand nor is every brand relationship a celebration. But that is part of crafting the right message for the right audience. You have to consider every strength that can be conveyed within the context of a single memorable message.

Running two minutes in length, the Coca-Cola video does something else too. It demonstrates that advertising can easily adapt to an online environment. It might require thinking different, but that is part of the profession. Virtually every wildly successful advertisement in history broke more conventions than they followed. And that's not by accident.

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Friday, February 19

Organizing Lists: Retention Psychology & Branding


Almost everyone involved with online content creation knows it. Lists can be powerful tools for traffic attraction. Search for "3 tips" on Google and it will return 80 million results. Type in "5 tips" for 74 million. Ten tips returns 84 million. So on and so forth.

Okay, people like lists. So what?

Lists can be excellent resources, which is why we like them. But lists can also interfere with retention. In fact, most memory studies conducted by psychologists reveal that the power to retrieve information from our memories decreases with every new bullet item associated with those clues.

In one study (Anderson, 1980), participants were given a list that associated two professional titles with five actions. For example:

• The banker was asked to address the crowd.
• The banker broke the bottle.
• The banker did not delay the ship.
• The lawyer realized the seam was split.
• The lawyer painted an old barn.

When the participants were tested later, they took longer to remember any facts about the banker. Subsequent studies demonstrated that the more facts provided about someone or something, the less likely they were to retain facts unless those facts were well organized and grouped together to form other associations.

For example, if all the banker facts were related to a ship and all the lawyer facts were related to a barn, participants had no trouble retrieving facts about the banker or lawyer. Why? Because the lists were effectively reduced to manageable memories.

The link to retention becomes: banker + ship: three details; lawyer + barn: two details. It becomes a powerful memory.

Creating Organized Context Associations Drives Content Retention

Think about how this applies to branding. In Tiger Woods' statement today, media headlines focused on that he admitted to having affairs and apologized. Afterward, the stories all opined whether or not the apology should be accepted.

On the other hand, a word cloud reveals his focus was on his wife, family, friends, and children as it relates to his behavior.

So why didn't most media pick up on these central points? In looking at the full transcript, the organization of his apology was muddled, leaving the media construct simpler associations that set the tone for the apology regardless of what Woods said. For most people, they are more likely to remember the news snip than the statement.

Think about the last few posts or news stories you read that contained a list. Can you remember most of the bulleted items? Probably not. More than likely, unlike posts that tell a story or have one central theme, you might remember the topic but none of the details.

The good news for the list builder is that people will have to revisit the site to retrieve the information again. The bad news for readers is that the lessons and the author are less likely to be remembered over the long term. This doesn't just apply to posts. It applies to education in general.

In my course material on writing, students frequently tell me that they are more successful retaining my five elements on writing and Ike Pigott's three element on writing than those offered by Don Gale or Ogilvy and Mather.

Although all of the four sets lend value, the difference is in the presentation. Pigott links three frequently associated attributes to his writing, underscored by a kung fu analogy. I employ organized association, reinforcing those points with alliteration.

Why is it important? It's important for bloggers and journalists because while increasing retention might not spike traffic, it will help readers retain information and associate the content with you. Otherwise, they will be more likely to forget the content and the source, eventually conducting a new search based on the headline they remember. Will they find your post again? Maybe.

In closing, I'm adding a related psychology study to my watch list. Richard Elliot Wener, professor of environmental psychology at Polytechnic Institute of New York University, is studying whether highly visible recycling bins remind people to not only recycle but to also be more environmentally conscious in general.

How it that related? The study might have findings that cross over into understanding organized associated content, and whether those associations affect behavior.

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Tuesday, January 12

Getting Attention: Shock And Sorry


"It's all about brand visibility and getting an ad out there. In a blogging and Twittering era everyone wants to do something worthy of talking about." — Paul Kurnit, author of the Little Blue Book of Marketing to Forbes.

In an effort to show that outdoor advertising works, The Outdoor Advertising Association launched a campaign to get attention in London. The creative, designed by the Beta Agency, was planned to run for 14 days on buses and buildings.

"Career women make bad mothers." — The Outdoor Advertising Association

The Outdoor Advertising Association gained attention. The ads came down after hundreds of moms expressed their outrage in forums. The Beta Agency offered its apology on a blog, claiming to have no idea the campaign would create outrage.

According to Game Change, a book about the 2008 presidential campaign quoted Senate Majority Leader Harry Reid (D-Nevada) as he described why he thought Obama could win. Reid, though enamored by the candidate's speaking abilities, attributed it to Obama to being a “light skinned” black man.

People like Barack Obama "with no Negro dialect, unless he wanted to have one." — U.S. Sen. Harry Reid

Reid apologized to the President on Saturday for the remarks. The President accepted and said he considers the issue closed. Sen. Reid is reported to have called many African-American leaders to extend his apology. He did not apologize to Americans, who he believed wouldn't vote for a candidate who seems "too black."

Kentucky Fried Chicken is running an advertisement in Australia that features a distressed white guy, surrounded by a crowd of black people at a cricket match, using chicken to get out of an "awkward situation."

"Need a tip when you're stuck in an awkward situation?" — Kentucky Fried Chicken

Kentucky Fried Chicken originally defended, claiming that its advertisement was never intended for the U.S., where the culturally-based stereotype exists. Australians are baffled by the controversy, but Kentucky Fried Chicken has since apologized and pulled the advertisement.

What people talk about is more important than how many people are talking.

P.T. Barnum was the one who originally coined the phrase "all publicity is good publicity," and there are plenty of marketers who are happy to quote him today. Of course, it was easy for Barnum to utter those words. He made himself a millionaire by promoting celebrated hoaxes and for founding the circus.

The question marketers sometimes forget to ask themselves is do they want their product, services, or persons to be associated as a hoax or a circus? Brands are fragile things. If they weren't, Tiger Woods would still be signed by AT&T.

No one really wants their name caught in a firestorm of negative press and public backlash. It's all too easy for such follies — whether contrived or accidental — to overshadow every other message. In every case above, deserved or not, the organizations, companies, and people were forced to put their messages aside in favor of apologies.

Don't misunderstand me. Kentucky Fried Chicken's advertisement doesn't really have any racial undertones unless people insert them (the ad featured different rugby fans in a country that doesn't understand chicken stereotyping); U.S. Sen. Reid demonstrated ignorance over malicious intent (dialects aren't racial as much as regional); and The Outdoor Advertising Association and its agency is either naive or lying to think such a loaded message wouldn't offend someone.

Sure, there is always the case to be made that people, especially Americans, have become hypersensitive to messaging. However, as marketers or communicators or consultants to public figures, it's our job to be aware of those hot buttons.

Equally important, on those occasions when mistakes are made, we need to help clients know when and what to apologize for. Kentucky Fried Chicken didn't need to apologize; pulling the advertisement was more than enough. U.S. Sen. Reid could have apologized to the American people; his statement clearly discredits the majority of Americans as being racist. The Outdoor Advertising Association ought to have apologized without clarification, especially because it knew exactly what it was doing.

The bottom line is that in a world where any communication might be amplified, marketers might be more sensitive to what those messages might be. If they aren't more sensitive, then they'll always risk having the message manage them more than they manage the message.

Tuesday, January 5

Talking Tacos: Christine Dougherty


"Over the years, we've heard stories from our customers who have lost weight by incorporating Fresco into their meal choices, and Christine had written Taco Bell a letter detailing her journey," Rob Poetsch, spokesman for Taco Bell to Adweek.

Taco Bell's new ad campaign by DraftFCB features a "real-life Taco Bell customer" who lost 54 pounds over a two-year period by replacing her usual fast-food lunch or dinner with an item from Taco Bell's Fresco menu. While consumer feedback is mixed and dietitians split, there is no debate that the campaign is a publicity win.

The Unique Selling Point

As laughable as it sounds, the Taco Bell "Drive-Thru Diet" is grounded in truth. According to an ABC affiliate, the Fresco menu that Dougherty dotes on features menu items with 20 to 100 fewer calories. In Dougherty's case, she dropped her calorie intake from 1750 calories per day to 1250 calories per day.

In fact, according to the dietician, the Taco Bell campaign is more honest than the Special K Challenge that suggests you can lose up to six pounds in two weeks. At six pounds per week, Dr. Lokken said the challenge is based on reducing calorie intake (whether or not you eat Special K) and borders on promoting malnutrition.

The Brand Disparity

The question for advertisers to ask isn't how to duplicate Taco Bell buzz. The question to ask is how do you introduce a unique selling point that is so far removed from the brand that people hate it.

Since launching the campaign, Taco Bell has scored on publicity and blog buzz, but consumer feedback is overwhelmingly negative. Before the campaign, Zeta Interactive noted that 73 percent of Taco Bell posts were positive, well ahead of Subway, Wendy's and Domino's. Following the campaign, the number of positive posts has dropped to 67 percent, dropping it below White Castle, Blimpie, and Arby's.

The criticism is especially harsh from women, ages 18-34, with negative sentiment from this segment climbing steadily. It's climbing fast enough that the Taco Bell campaign could feasibly face a boycott.

In contrast, when fast food chains like Wendy's and McDonald's launched healthier menu items, they received a surprisingly amount of praise. The difference is subtle, but underscores the fragile brand theory: Consumers equate cereal with healthy choices and fast food with fat. It's a difficult association to break, even when it's true.

The reason Wendy's and McDonald's didn't face as much push back is that both offered non-fast food menu items. Taco Bell, on the other hand, is marketing items that still fall well within the fast food category, despite lower calorie and fat counts. Add in the timing of the campaign, when people are most sensitive to fitness, and combining "diet" with "drive thru," and the result is a campaign that wins on attention, but falls flat on public sentiment.

Tuesday, December 1

Opting Out: American Greetings


"... but what if people don't want to opt in your content? Wouldn't it be so much better to ask them to opt out? What do you think?" — Valeria Maltoni

Maltoni already knows the answer to the question she posed on her much more substantive post "Lists, Permission, and Content Marketing." American Greetings Corporation does not.

In 1996, at about the same time American Greetings launched its first site, AmericanGreetings.com, it also launched Egreetings.com, and Bluemountain.com, concepts that were designed to capture consumers from different demographics. The classic marketing strategy seemed to be working. Between the three sites, the company boasts two million paying subscribers.

To help put that in perspective, the subscription rate for Bluemountain.com is $15.99 per year. However, to really understand the presumed success of the mom and pop vignette e-card shop identity propped up with American Greetings cash, you have to look below the surface and under a few rocks. It does not rely on quality content as much as sleight-of-hand marketing.

The enrollment process requires customers to provide all payment information prior to receiving a "free" 30-day trial. If you have any concerns, BlueMountain.com borrows the VeriSign Secured brand and Better Business Bureau (BBB) brand, pointing consumers to this BBB page.

However, if customers search the BBB on their own, BlueMountain.com leaves a different impression. The BBB processed a total of 301 complaints in the last 36 months (from people willing to take the time over $15.99). And of those complaints, only 198 were closed in the last 12 months. In fact, the subscription trap scheme was so disingenuous, the BBB contacted the company in April and sought cooperation in addressing the underlying cause.

The company responded in May, promising changes to be implemented by June. The BBB took the company's response in good faith, never realizing that American Greetings didn't fix the problem but rather elongated the process. No follow up by the BBB has occurred. So we followed up.

The American Greetings Subscription Trap Scheme

This morning, I received notification that BlueMountain.com would extend my membership for another year, at the new rate of $15.99. I originally subscribed to BlueMountain.com on a trial basis to evaluate its system and, like many consumers, failed to opt out in time because there was no prompt that the trial membership was expiring. No worries. I decided to stay with the system a year, promptly forgetting about it until receiving notification this morning.

To ensure that you enjoy uninterrupted access to the heartfelt cards your friends and family have come to expect from you, we'll continue your eCards Membership for the next year at $15.99 as your current eCards Membership was scheduled to end on 12/15/2009 00:00. It's automatic -- we'll simply use the payment method we have on file, unless we hear from you. The charge will occur on the date of your expiration noted above.

It went on to say that if I wanted to cancel my membership, I could find the instructions in their Help section or simply click on the link. It seemed easy enough, even if I had to retrieve a long-forgotten password. Here is what the Help section said:

To request a cancellation of a subscription, please contact our membership support center by calling 1-888-254-1450, Monday through Friday from 8:00 a.m. until 8 p.m. EST

Since customers outside of the U.S. and Canada are allowed to cancel online, I decided to submit an online complaint and cancellation request anyway. Within minutes, BlueMountain customer support sent me notification that said "For security reasons, we are unable to process cancellation requests via email," which was followed by Terms of Service outlining customer obligations.

The explanation defies logic.

American Greetings wants consumers to believe that an online service enrolling members online and accepting payments online cannot accept membership cancellations online for security reasons. But more than likely, American Greetings wants to prevent cancellations. And if there is any doubt, the call confirmed it.

Customers hoping to cancel their memberships are greeted by an automated recorded call service with voice recognition technology. My first thought was that the technology belongs to a union, given the set hours of operation.

My second thought was that it is disingenuous that the recording requires a membership number, last name, and the original phone number to verify the identity of the caller. (BlueMountain.com doesn't tell customers to have any of this information prior to calling.)

If you miss any of the questions or if you do not speak slowly enough for the machine, you cannot proceed or cancel your membership. If you do answer all of the questions, your name is likely added to a marketing list that will be sold at some later date. We suspect that to be the case because once you answer these questions, you are transferred to a live scripted customer service representative who has to verify the identity of the caller.

The scripted customer service representative then asks for your membership number, last name (to which she verifies the first name), and a mailing address before asking why you are calling. Except, the customer service representative is not interested in helping you. She has a script to read.

The script is designed to prevent your cancellation, offering a reduced subscription rate or reward. And, even after the cancellation is confirmed, the representative asks you to hold for a bonus offer. A bonus offer for canceling? As tempted as I was to play along for this post, even I couldn't justify wasting another five minutes for what seemed like a 20-minute process.

Twenty minutes is longer than most customers will sacrifice for $15.99. American Greetings knows it.

Does The American Greetings Scheme Pay Off?

It's a valid question given the brand value. How can American Greetings, even if it is hiding behind the BlueMountain.com brand, justify the considerable risk associated with a subscription trap scheme for $15.99 per year? Or, perhaps more appropriately, was this the model Jacob Sapirstein, a young Polish immigrant, envisioned when he set out to achieve the American dream with ambition, ethics and hard work?

That seems doubtful. It doesn't even seem to be what shareholders expect since the company's first public offering in 1952, but it does seem to fit the pattern of progress since Zev and Jeffrey Weiss were entrusted to oversee the varied brands in 2003.

Since 2004, American Greetings seems to have headed in the wrong direction, delivering an increasingly diminished return when compared to the S&P 400 and its own self-defined peer group. Last year, in fact, the company experienced a net loss of $227.8 million. It was the worst performance in the last five years of diminishing performance.

If there is an e-card for karma, someone might consider sending them one with a bit of marketing advice. Q: Wouldn't it be so much better to ask them to opt out? A: Only if you want to follow in the footsteps of what used to be one of America's best-loved and most trusted greeting card brands.

Friday, October 30

Balancing Transparency: Social Media And Psychology


"Recruiters shouldn’t care about that Facebook picture of your beer pong game in college." — Shel Holtz, ABC, principal of Holtz Communication + Technology.

Holtz calls the increasing shift toward total transparency a cultural transition, spurred on by social media. And, as a consequence, "Animal House [by Millennials] behavior really shouldn’t matter to hiring managers today."

The communication has sparked an interesting conversation, with Jen Zingheim, Media Bullseye, wondering if "Millenials are perhaps setting themselves up for future problems, because it's hard to put that privacy genie back in the bottle." At the same time, she recognizes that she came from a different era, one that celebrated the separation of professional and personal, work and play.

For my part, I offered up the interesting case study of Amanda Marcotte and Melissa McEwan, who found their personal and professional worlds collide while working on John Edwards campaign just last year. Holtz said it was apples and oranges.

Is it? Marcotte and McEwan isn't a story about bad behavior. It's a story about merely having publicly conflicting views with the candidate you work for — without bad or illegal behavior. It led to the chastisement of two professionals over nothing more than their own rhetoric. It also marked the beginning of the end for the Edwards campaign.

The consequences present evidence enough. What we do in public is public. Social media can make personal public.

Does this mean Holtz is wrong? Not in the least. This is a conversation with a dynamic that allows two people to be right at the same time in that there is a cultural shift occurring that allows for greater personal and professional crossovers. However, Holtz might be taking one step to far in suggesting that what you share might be exempt from public scrutiny after it's shared publicly.

What we do in public, especially when it includes personal behavior, has always had professional consequences. To think otherwise is saying that the employee who unexpectedly got drunk and put the lampshade on his head at the company party didn't somehow change the perception of the public that was present. Social media expands that public.

In some ways, it might be more hazardous because social media is different from daily relationships as it expands the audience (instead of 50 impressions at a company party, there might be 500 impressions on Facebook).

We might also consider that the online public has a limited engagement. For some in social media settings, they might only see that lampshade on his head, which wouldn't create the impression of someone who had too many. They might only see a drunk. Or maybe an alcoholic. Or maybe something else. It's hard to guess.

In recruitment, it might beg the question: do we hire the drunk or the other guy or gal?

In some cases, it might depend on the corporate culture of the company. In most cases, maybe not. After all, there is a growing feeling that semi-public employees make statements about companies.

And while I may personally agree with Holtz that companies might be going too far (given some use sites like Zillow to evaluate a prospect's real estate), it may be equally irresponsible to suggest to students that what they say or share online ought not to have consequences when it very clearly has consequences, whether you're a student or not.

There are a good number of people who might disagree with me. Many social media professionals and social media authors practice, in varying degrees, total transparency beyond authenticity. However, there is another distinction to be made.

Many of them have already become public figures as de facto public speakers, columnists, and authors. And public figures, based in part on personal branding, follow different rules. Their fans and followers want to know more about them personally, horns or halos.

Where the challenge for everyone else is in that they want some semblance of privacy while operating as a semi-public person in very public forums.

And while I personally do not judge people on their behaviors, opinions, etc., the public most certainly does. Customers do. Constituents do. Colleagues do. People do.

This last weekend, two servers at restaurants shared personal information with me. One was tired because another employee called off after coming down with a severe medical condition and she was working a double shift. Another was tired because they stayed out late the night before, and were nursing a hangover. (Both of them were Baby Boomers, not Millennials, by the way).

I tend to be very personable when I interact with people; they share a lot of information with me. I make it a point not to judge or label them for it either. However, I cannot help but to wonder if a greater population really wants to know. Most people just want personal service without public commentary and introspection by those providing the service.

So whereas Holtz presents an interesting case study for how we are in transition (and we are, all the time, like a pendulum), I lean toward Zingheim's point in that there seems to be some ignorance about the potential consequences of participants who don't filter personal content, especially when the engagement might be confined to a single impression.

Or, in other words, choosing not to consider what people might think about certain behaviors, actions, or ideas is one thing. But expecting people to only affirm those behaviors, actions, or ideas is another all together. Not all such stories will end like David Letterman. Some will end like John Ensign. Are you ready to flip the coin?

Thursday, September 17

Unselling Sex And Other Stuff: Buyology


With 25 percent of all search results for the world's top brands linked to blogs, forums, and tweets, is it any wonder communication is being challenged? But just as fast as social media professionals are chatting about the tools they use on a daily basis, neuroscience is also opening up doors and changing convictions that were long thought to be held true.

Sex Doesn't Sell

Sex doesn't sell, at least not according to research conducted by Martin Lindstrom, whose book, Buyology: Truth and Lies about Why We Buy. Lindstrom's case is simple enough: it detracts from the intended message and seems to hold true based on brainwaves.

It's also one of the many sound bites that most reviewers picked up on because, unlike sex, controversy sells (or so says the author). It helped sell the reviews; and it helped sell the book. (The down side is controversy is not sustainable.)

So how can that be about sex? Because what the author doesn't reveal is that most communicators knew sex never sold. It simply captured people's attention. After that, the ability to sell the product relies on the ability to move the reader into something else. Unless, of course, you are selling sex. And that is a different subject all together.

But It Tried To Sell Buyology

Buyology certainly has some high points, given I had recently read What Would Google Do? by Jeff Jarvis (which I have no desire to review) and was reminded by Lindstrom that Ford Motor Company had asked consumers to build their own car well before Jarvis was shouting that companies ought to do the same. The model flopped.

Sometimes people don't really want what they say they want. And sometimes, they certainly don't always want what they want for the price it takes to deliver.

Lindstrom does a great job demonstrating exactly that, using brain scans to confirm what people say and how they really feel (whether they know it or not) are not often the same. In the book, study participants said they liked one television show better than two others, but their brain scans revealed a different outcome. And these actual outcomes, when the shows aired, mirror their success.

Unfortunately, the few high points in the book are too few and far between. For anyone studying or working in the field of studying neuroscience and advertising, the book mostly presents a recap of studies and experiences that are all too familiar, including my personal favorite, Coca-Cola.

For example, dedicating an entire chapter to fragrance and sound experiments conducted by large companies might be new to some. But for anyone who has ever worked with a home builder, adding some ambient music and the scent of freshly baked cookies has been proven effective for as long as I can remember (and for much less than grander experiments).

Another example is Lindstrom's assessment that says infusing fear into a message can work for the short term, but sometimes scares people away from a product. The better communicators already know that. In much the same manner, fear can immobilize people from giving to nonprofit organizations if the organization makes the challenge seem insurmountable.

And finally, the section on subliminal advertising didn't really belong. It's a subject frequently covered, generally conclusive, and relatively understood. I saw it work first hand in 2008 when it was used against a political candidate we were working with. The opposition ran television ads that included a fractional clip of a gun pointing at his head.

However, I won't go as far as some detractors and say the book is worthless. There are certain people who would benefit from the book — especially novice communicators who do not have the benefit of experience or familiarity with some classic studies that Lindstrom cites and social media professionals who want to take some edge off the ask-the-consumer-everything "Kool Aid" or appreciate that social media by-in had initially hindered its own adoption rate with too much fear messaging.

But even for these professionals, the book faces some hurdles with too much memoir writing, the promise of neuromarketing science (which is basically applying neuroscience to marketing) with too little science, and not enough focus on the studies Lindstrom conducted. There is also an overemphasis on the idea that people never make rational purchases, which is only partly true.

If you can get past these problems, it's a quick read that might may you rethink a few popular ideas out there right now, assuming you can draw up your own solutions. If you cannot get past those problems, then you might find it to be another business card book that presents an argument and ties it together loosely with a few cherry picked examples to prove the position but no real solutions (which is why I can't even review the title by Jeff Jarvis). Or, you can always visit Lindstrom's site.

From Others Who Bought Or Didn't Buy Buyology

• Buyology by Martin Lindstrom is a compulsively readable account at FutureLab

• Book Mashup: Saving the World at Work and Buy-ology by Bobbie Carlton

Book Review: Buyology by Martin Lindstrom by Nicholas Kinports

Buyology: Sound Science or Wishful Thinking? at ResearchTalk

• "Buyology" Illuminates Unlikely Marriage of Science and Consumerism at Fast Company

Tuesday, September 1

Rethinking Volkswagen: Five Agencies


There seems to be a bit of buzz about Volkswagen shopping five new agencies to helm a campaign backed by a $220 million media buy that Volkswagen represents. And some even seem to lament that Crispin Porter + Bogusky declined to defend it.

Don't lament. The decision comes after 2008 realized a 14 percent decline in sales from 2007. While some might blame a tough year for automakers, the real unraveling came after one of the biggest branding mistakes ever made.

"Max," the German-accented black Beetle that Crispin chose to represent the brand, clearly missed the mark. And while some people still argue that the Crispin work was rarely ignored, it's easy enough to make the case that Volkswagen would have been lucky had some of the work been ignored. With exception to the "Safety Happens" campaign years ago, Crispin spent years dismantling the sophisticated cool creative delivered by Arnold years ago. Ads so powerful they helped people rediscover Nick Drake as much as the Cabrio.

Any new agency pitching with the hope to return Volkswagen to the second age of great creative might reflect on the work Arnold laid down before Crispin walked couples on the lot of a Volkswagen dealership to prevent her from "birthing children for German engineering." What was missing through most of the campaigns is what Arnold taught us about Volkswagen and Ogilvy & Mather before that — the brand relationship between the drivers and the cars was passionate and the advertising worked best when it celebrated that passion with the sweet spot always found between overtly forced and mainstream.

It was also the concept we carried forward with The Idea Factory in Las Vegas when Findlay Volkswagen wanted to open against a 20-year plus Volkswagen dealership that had gone so mainstream it employed John Elway as a spokesperson with price points. In contrast, we focused on the passion between the drivers and the cars, giving some personalities like Crispin did, but without the cornball gimmick of a German accent and a company spokesperson.

Instead, we told stories about drivers who became jealous when people admired their "girl," a man confessing he coveted a Beetle owned by the priest he was confessing to, or a car calling its owner to "sneak out" for a ride while his wife was sleeping. Arnold always approved the ads with reimbursement for full production because they married well with the national campaigns.

At the end of four months, Findlay Volkswagen ranked first in the state and fourth in the region. It continued to set new records every quarter until the agency's account executive jumped ship and took the account with him. His intent was to make the dealer more mainstream too, and he overshot with ads featuring singing kids that failed to reach the audience. The dealership has never seen the same success for the same reason the Crispin ads didn't connect, except in the opposite direction.

Volkswagen is anything but mainstream, but the consumers who buy them aren't shock advertising savvy either. They're smart people who appreciate the brand distinction without the price.

Friday, August 14

Understanding Emotion: Branding Beats Banners


There are several studies related to neuroscience (not marketing) being conducted that marketing professionals and other communicators might consider following anyway. Both of these studies touch on long-standing advertising rules; Rule 3 and Rule 7, specifically.

Study 1: How Emotions Connect To Memory.

The first study is being conducted by researchers at the Wake Forest University School of Medicine. The intent is to develop treatments to prevent and treat conditions such as post-traumatic stress disorder, but the findings may also be important to understanding communication, emotions, and memories.

Specifically, the study is finding that Protein Kinase C (PKC) is activated through the release of norepinephrine. When norepinephrine and glutamate arrive together, PKC gives them permission to create stronger memories.

As Ashok Hegde, Ph.D., an associate professor of neurobiology and anatomy and the lead investigator on the study, explains: when memory is stored in the brain, the connections between nerve cells, called synapses, change. Strong memories are formed when synapses become stronger through structural changes that occur at the synapse.

Where this may connect with communication is it helps demonstrate why some messages connect and others do not. A large amount of advertising, especially push marketing, never penetrates our natural filters because those messages never touch our emotional triggers (e.g., well-developed synapses), which represent some of our strongest memories.

Simply put, we tend to react to messages that are capable of piggybacking on established memories that help shape our emotions OR messages from a source (via a brand connection) that we already have an emotional attachment to. The latter exemplifies why social media works because our interaction with select people and companies creates emotional experiences (good, bad, or indifferent) and reinforces these synapses.

In the case of a banner ad, which generally doesn't have any emotional connection, for example, we mostly ignore it unless the person or company already has established a brand connection. Who knows? It might pinpoint why a company like McDonald's has such a powerful brand as it establishes and strengthens synapses throughout childhood.

Study 2: Why Interruption Advertising Is Losing Its Luster.

Meanwhile, neuroscientists at New York University are conducting some interesting studies on a group of monks and secular meditators to understand how our brains work. While the study is being conducted to better understand brain disorders such as stress, depression, Alzheimer’s, and autism, it may also unlock some practical applications for marketers and communicators.

Specifically, they are finding that average people are either conscious of the external world or their personal world (self-awareness), and alternate between the two. Scienceline describes the phenomenon by asking we "Imagine how concentrating on a situation in the present, like listening to a friend’s story or solving a math problem, can make you less self-aware — that is the pull of the external world. But then a lapse of focus creeps in, and you begin to wonder if you missed your doctor’s appointment this morning, or what you want to do on vacation next week — and you have felt the push into your inner world."

For marketers and communicators, the lesson to be learned is that if the goal is to reach the inner world then attempting to compete with an increasingly loud external world is much less effective. Using Scienceline's analogy, imagine several external world experiences competing for your attention. Some advertisers have come to believe that the only means to reach people is to create advertising that demands attention and some public relations professionals think that hyped news releases sell.

However, we know those tactics are not sustainable over the long term and, in general, do not reinforce a brand relationship. They cannot because they generally never reach people on an emotional level or break into the inner world. Specifically, the messages are being pushed at them.

This might also explain why social media tends to work well as a communication tool. People often search and find content because they begin with an inner world problem — they want to learn something, need to know something, etc. When they find the content, it tends to be more reflective and has a greater chance to establish an emotional bond. In a sense, that is the pull.

What do you think? Does communication that connects via the inner world have a much greater chance of creating an emotional experience that, in turn, stays in our memories much longer than interruption that commands our attention for a few moments of time? It seems to be.

Tuesday, August 11

Being Generic: RadioShack Becomes The Shack


When most people talk about "The Shack," they are probably talking about the controversial book by Paul Young, except in Santa Monica.

In Santa Monica, "The Shack" probably means a place to party with wings, burgers, and other things, except basketball.

If you mention "The Shaq" within a context even close to sports, social networks, or down-to-earth celebrity, there can be only one.

And yet, for the strange oddball "rebranding" reason, RadioShack, an international chain of electronics retail stores, hopes to break into millions of brains and reshuffle their indexing system. When we hear "The Shack," they want us to think about them.

Ironically, the abrupt identity change last week has done more to reinforce the electronics chain as an out-of-touch brand.

Although the company's push claims to be a "legacy" brand trying to put a cool, hip spin on itself, "The Shack" is about as hip and cool as being called "Siffy" or forgetting that the orange juice you make is not from concentrate. Worse, the communication plan calls for the company to retain "RadioShack" signage on retail stores in an effort to "hold onto its brand heritage and attract more tech-savvy shoppers."

Brand heritage? They must be kidding.

Not only are the dual objectives in conflict, but one can easily argue that RadioShack's brand image is what earned it an "F" from the Better Business Bureau (BBB) last April. Since, it has made amends with the BBB to receive the much better grade of "C-."

If they really wanted to capture any semblance of brand heritage, they would have to go all the way back to the days when Isaac Assimov endorsed them or well before the near-bankruptcy that convinced the Tandy Corporation to buy them in 1962. Back then, "Realistic" meant exactly what it meant. It meant "generic," which is exactly why all the other brand names — Presidian, Accurian, Optimus, Enercell — that RadioShack has invented have never become household names when compared to any number of greats like Kenwood, Pioneer, JBL, Bose, and a host of others.

A campaign launch on Times Square has about enough chance to change that as passing out T-shirts to employees and calling it an internal rebranding effort designed to change corporate culture. A much more appropriate T-shirt would have read: "My employer spent $200 million on rebranding and all I got was this lousy T-shirt." And on the back: "And a travel mug. Oh boy."

The truth about names and branding is branding better come first.

It's really very simple. Branding makes a name. Naming does not make a brand.

RadioShack's half-hearted rebranding campaign "Our friends call us The Shack," complete with an ugly thumb, is not likely to recapture the $1 billion in lost revenue over the last four years. If anything, it's likely to accelerate the problem created by inflated pricing, lackluster customer service, and "it's stupid" being the most common consumer reaction to the new campaign. If RadioShack wants to save itself before it goes belly up like Circuit City, the most obvious first step is to retool the entire company starting with the people who thought "The Shack" was a good idea.

It seems clear enough that not everyone liked it. If they did, "The Shack" wouldn't be a campaign nickname. It would be the new name. But even if they did commit, it would still have a long way to go before advertising could reverse the mess they made of a once viable company. Nowadays, the only distinguishing feature for this defunct company seems to be that it is a defunct company.

After all, while Best Buy isn't everyone's favorite big box electronics retailer, it does have an image that beat The Shack on price and people some years ago. Meanwhile, Fry's Electronics seems to have the stronger position on staffing knowledgeable people and offering a diversified product. While those two are among the best known, there are more than two dozen other retailers looking to make the The Shack nothing more than a stepping stone for their success.

Want more about The Shack attack? It's not pretty.

"Radio Shack rebranding to 'The Shack'?" by Joshua Topolsky for engadget.

""Yeah, RadioShack is turning into the Shack" by John Biggs for CrunchGear.

"Bringing Down The Shack" by Blake Howard for Matchblog.

"RadioShack, er, the Shack makes its case for relevancy" by Dan Neil for The Los Angeles Times.

"Radio Shack rebranding: Why? Why!?" by John Biggs for CrunchGear.
 

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