Auto marketing messages as weak as their business

Why do some advertisers treat people as if we had no brains?  One example of misplaced messaging is GM and Chrysler’s recent ads assuring people people about their business. Duh! You have to live in a cave to not know that these companies are in big trouble. Plus, don’t we all realize that “employee pricing” is a joke; it’s code for “we have a lot of inventory to move so we’re really cutting prices.”

This new Chrysler “assurance” spot even goes so far to end with this tag line: “At Chrylser the future is not only bright it’s electric.”  Oh puleeeze. We know you’re future isn’t bright, even with Fiat.


Ad Age’s Jonah Bloom wrote a great editorial on how these auto companies are mis-spendng millions on the wrong message.

Ads for assurance programs may seem soothing and may even increase foot traffic to some degree, but they strike us as pointless and the consumer as completely out of touch with reality. For instance, how can Saturn promise to make your car payments for up to four months when the brand itself is slated for disposal?…So however well those ads may be executed…they ring false.”

Bloom suggests, instead that these auto makers promote “deals of a lifetime” and use plain English to do so.

Excellent advice.

Creating new categories: social marketing delivers needed trust, emotion

Marketing as usual when you’re trying to create a new product or service category is doomed to fail.

The ads, the messaging, the press releases, the events are likely to fall flat for two reasons — people don’t trust information from companies and most marketing information is factual, filtered and rational.

Social scientists have proven that logic is ineffective in getting people to change their behavior and adopt new types of products. Similarly, so are most marketing campaigns. Harvard Business School professor John Kotter has said:

“Behavior changes happen mostly by speaking to people’s feelings. In highly successful change effort people will find ways to help others see the problems or solutions in ways that influence emotions, not just thoughts.”

As for trust, the 2009 Edelman Trust Barometer finds that people’s trust in companies, the media and CEOs is at an all time low. Approximately 62 percent of the 25 to 64 year-olds surveyed in 20 countries said they trust companies less than they did a year ago. In the U.S. trust in a company’s CEO is at an all time low — just 17 percent  trust what a CEO has to say. Trust in business magazines is also down, from 57 percent to 44 percent.

I believe that social media and its first cousin, word of mouth marketing, are critical for a company intent on creating a new product category. All too often, however, companies spend more on mainstream marketing when building a new category because it feels safer, the tactics are more familiar, you can create “things” like brochures and advertisements, and you can make sure the “key messages” from the research are included.

While those elements certainly play a role in a marketing strategy, think social first. Here’s why:

  • People trust other people like them more than marketers, CEOs, governments, analysts. (See Neilsen Buzz metrics trust research) Why not sponsor an online community where people can share experiences and get and give help from people they trust?  This is likely to speed trial, if not adoption. As importantly it will help you as a marketer better understand obstacles and objections — and see the arguments people use to overcome those obstacles.
  • After people like them, people next trust outside subject matter experts. Why not sponsor an editorially-independent blog/community and invite outside experts to share their views of the new product or service category?  They’ll be much more believable than your company blog. According to the new Edelman research, 59 percent of those surveyed said an academic or an independent expert on the industry or issue would be very credible.
  • Most marketing communications is based in logic, and that  doesn’t work when trying to change behavior.  The passionate, real, credible conversations are happening among people in new social forms.  The emotion infused in these conversations is what influences change and adoption.  Yet marketing and advertising agencies tend to filter and focus on key messages, and too often  advertising designed to trigger emotion comes across as phony.

Social media conversations are unfiltered, trusted and genuine.  And that’s what you need when taking on the formible challenge of creating a new category.

Most valuable and under-used social media strategy

“What’s the best social media investment? Where we can really see a good ROI?”

The answer is easy. Getting companies to implement it is not. The most valuable and under-used social media strategy is embedding customer reviews in your Web site.  Not blogs, Twitter, communities or tagging.

An eVoc Insights study found that 48% of consumers need to read reviews before making a purchase decision. Neilsen’s research has found that consumer recommendations are the most credible form of advertising among 78% of study participants.

What gives? Fear of having negative reviews on the company Web site.  According to Sam Decker, CMO of BazaarVoice, companies have three options if they’re selling a bad product and are afraid of negative reviews:

  1. Without reviews, you keep selling the product and risk costly returns and low customer satisfaction
  2. With reviews, you can use the leading indicator of negative reviews and quickly remove this product from inventory to reduce returns and improve satisfaction
  3. Or, just allow the negative reviews to steer customers to a more satisfying purchase within the category. Let the best products win, and you will win.

“In cases 2 and 3 you remain a trusted editor of the best products; customers are happy; you maintain their loyalty, and avoid a return,” says Sam. For more on overcoming this obstacle, check out this classic article “Positives about Negative Product Reviews.”

Example: Consumer reviews on Panasonic.com

New creatives vs. old creatives

Last night I randomly opened the Age of Conversation/2 and landed on Ernie Mosteller’s “The New Creatives Get It” article. Wow.  Here’s his take on the two fundamental differences between new and old creative, which I think really gets to the heart of the creative sea change.

  1. Information first, entertainment second. It used to be that creative led with entertainment to get our attention, and then served up product information. Today people are looking for information, so effective creative leads with information people are looking — even if they’re looking for  entertainment.
  2. Elegant complexity vs. clever simplicity. Old advertising focused on simplicity. But, Ernie warns, “on the Web simplicity fails. Miserably.”  Today great creative is telling an intricate story, but in ways that are interesting, fun and compelling to prospects.

Is you organization in the new creative mindset — or the old?

(I love the line on Ernie’s blog: “The medium is the audience.”  Oh yeah.)

More dumb tag lines: United “Its Time to Fly”

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This is a sweet television ad from United Airlines that is totally disconnected from its business. Why is United romanticizing the flying experience at a time when planes are dirty, seats are cramped, food is terrible, and staff is grumpy? The disconnect between the promise of the ad and the actual experience is huge. Why promote an experience that you can’t deliver? That’s just dumb marketing.

Then there’s United’s new tag line: “It’s Time To Fly.” What is that suppose to mean to the customer? How does it build preference or loyalty? And doesn’t United realize that actually it’s a bad time to fly in view of greater overbooking, flight delays, rising costs, and the need to reduce our energy footprints?

At a time when airline business is bleak, this expensive and irrelevant campaign is especially appalling. What were the marketing and agency people thinking?

Southwest gets that marketing is the customer experience

Fortunately there is one airline that understands that marketing is the customer experience, not a new ad with a Robert Redford voice over or a tag line.

It’s hard to work while traveling, but Southwest’s new seating in gate areas makes it easy for me to plug in and have a little workspace to get things done. The children’s seating area is also a nice touch.

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Now here's a great 6 word billboard…

I rarely notice billboard ads, but this one from financial firm UBS got my attention while I was driving up the Southeast Expressway in Boston early yesterday morning . It conveyed a compelling message in just 6 words:

Bank fees are like financial wedgies.

Social media and the 2008 Presidential Campaign

I was recently invited to share my views on the effect of social media on the 2008 Presidential Campaign for an upcoming feature article in the Public Relations Strategist.

Here are a few highlights:

Is the use of social media mainly tactical or strategic?

  • If a goal of the candidates has been to convey a message of change, the use of social media represents a clear change from traditional ways of reaching out to and engaging voters.
  • If a goal has been to engage with young voters, the use of digital has been a hugely successful strategy. According to Rock the Vote and CIRCLE (Center for Information & Research on Civic Learning & Engagement), voter turnout among 18- to 29-year-olds has doubled and tripled in almost every state primary and caucus. These young voters’ preferred way of learning about candidates and participating in the campaigns is through social media and word of mouth marketing. According to a Pew Research Center for the People and the Press study that looked at voter behavior, two-thirds of Web users under 30 use social networking sites, and only 25 percent watch television news for campaign news.
  • If a goal has been to manage positive and negative feelings about the candidate – and help people connect with candidates’ personal characteristics — social media has been strategic for Obama, but far less so for Clinton or McCain. Obama has shared more about himself- and social media is about people wanting to connect and share with people. He has also used a relaxed conversational communications style vs. speaking in “message points” during interviews and in videos. Clinton and McCain have used social media more as a channel, filling it with traditional “produced” videos and ads. Clinton and McCain haven’t adjusted their content or communications style for the new medium nearly as well as Obama, although Clinton has done a better job than McCain.

How has social media changed the game of the campaign so far?

The three biggest impacts of social media on the 2008 campaign:

1. Fund raising: Changed the game on how candidates raise money, putting more power with the everyday people than in any previous race. In March alone Obama raised $40 million, largely from the campaign’s 1.5 million Internet donors. According to Clinton’s campaign she raised $2.5 million after winning Pennsylvania primary and asking people to go to her site and donate. According to the most recent Federal Election data, 43% of contributions to Obama’s campaign have come from donors of $200 or less, compared to 27% for Clinton and 20% for McCain.

2. Traditional media: Changed the influence and role of traditional media, with more and more people going direct to hear and read about the candidates – viewing speeches on YouTube vs. TV, and going direct to sources vs. reading journalists’ coverage and analysis. For example, after Obama’s speech on race in March, the transcript of the speech “ranked consistently higher on the most emailed list than the articles written about the speech,” according to The New York Times (“Finding Political News Online, the Young Pass it On.” )

3. Advertising: Showed the diminishing effectiveness of “packaged” TV advertising. Leading up to the Florida primary Mitt Romney spent $29 million on 34,821 ads, more than three and a half times as much as John McCain who spent $8 million on 10,830 ads, according to analysis of data through Jan 27 by the University of Wisconsin Advertising Project. The effect of the big advertising spend? No lift for Romney who soon pulled out of the race.

In addition, millions of people are tuning into candidates via video vs. TV ads – on their campaign sites and on YouTube and other video sharing sites. Obama’s speech on race, “A More Perfect Union,” has been viewed by almost 4.5 million people on YouTube since March.

Six facts to support marketing change

Getting management to buy into innovative marketing approaches can be tough.

Here are six facts to support change, based on performance data that Copernicus Marketing Consulting has collected from more than 500 marketing programs (consumer and B2B products and services.)

  1. 84% of programs are resulting in declining brand equity and market share.
  2. Customer satisfaction averages just 74%.
  3. Most acquisition efforts fail to reach break even.
  4. No more than 10% of new products succeed.
  5. Most sales promotions are unprofitable.
  6. Advertising ROI is below 4%.

For more, see the Harvard Business Review article, “Don’t Blame the Metrics” by Kevin Clancy and Randy Stone.

Katie Couric's Viagra problem

 [photopress:Katie_Couric.jpg,thumb,pp_image]  The buzz is that CBS may “divorce” itself from anchor Katie Couric long before her contract expires in 2011. What went wrong?

Maybe it has nothing to do with Katie Couric or the fact that people are tuning out of  television for their news.   Maybe it comes down to a Viagra problem.

Watching the evening news — CBS or the other networks — we are bombarded with ads for one medical ailment ad after another. Penile erection, bladder control, constipation, bone loss, arthritis, diabetes. What kind of customer experience is this? Terrible. Erections and constipation happy messages while trying to make dinner, and maybe catch up on the news.

CBS, like most companies, has different silos responsible for different functions, and no one organization is looking at the customer’s experience. CBS News is responsible for Katie & Co., while the advertising group is bringing in the television dollars — and the Viagra ads.

In many retail companies, marketing is responsible for branding while operations oversees the stores, and never the two shall collaborate, often creating a mixed message and uneven customer experience.  Similarly, customer service isn’t usually part of marketing, yet the customer service group often has more influence on customers than advertising, promotions, or pricing.

I hope CBS doesn’t put the blame for poor ratings on Katie Couric, a fine journalist. CBS has bigger issues; the customer’s experience matters more than the ad revenue. If the first is bad, the second will become disastrous.

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What is marketing effectiveness?

I’ll be blogging The Conference Board’s “Marketing Effectiveness Conference” next Tuesday and Wednesday in New York. There’s a great line up of speakers from companies like Citibank, Eli Lilly, Pepsi, Disney and Met Life. The conference leader is Don Sexton, professor of business and director of the Jerome A. Chazen Institute of International Business at Columbia University.

Some of the things I’m interested in learning:

  • How are leading organizations assessing the effectiveness of social media and digital strategies? Advertising Age’s Jack Neff wrote a great piece last month, “Why Mix Models Don’t Mesh with Digital,” about how many companies aren’t investing in these new areas because the budgets aren’t big enough to be factored into the marketing mix models. So because innovative approaches can’t be measured with the old tools, that’s reason not to invest? Yikes!
  • How are companies taking a holistic view of what is influencing customer decisions? It seems that most companies measure silos — search, broadcast, direct, online advertising, PR, promotions. These discrete views often cloud real issues and opportunities.
  • Are there different approaches for measuring B2B vs B2C? Could a B2b software company, for example, use the same strategy as Pepsi?
  • If a company could only do one thing when it comes to assessing effectiveness, what should that be?

If anyone has other questions, please post them here and I’ll be sure to raise them at the conference and post the replies next week.

Beyond Buzz wins gold prize

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I’m so honored and thrilled that my book Beyond Buzz has been awarded a gold prize in the 2008 Axiom Business Book Awards in the Advertising/Marketing/Public Relations category. I’m especially honored to share the gold with Andy Sernovitz’s Word of Mouth Marketing. Here’s a list of all the winners.The awards are sponsored by Independent Publisher, Inc, Jenkins Group, and Padilla Spear Beardsley.

Bose Music Monitor "warning"

The people at Bose must know that people trust other people far more than a manufacturer.? So in its ads for its new Bose Computer MusicMonitor Bose does something very clever that disarms and earns credibility.? Before listing the product benefits the ad uses a “warning.”

BEWARE THIS IS THE MANUFACTURER TALKING!

Then, rather than the usual “benefit” copy, the ad lists four things that Bose believes, e.g. “We believe that the Computer MusicMonitor also comes the closest to our goal that sound is meant to be heard and not seen.”? Another clever tactic as people gravitate to beliefs and points of view.

 

Best Super Bowl Ad: Hank the Clydesdale

This Anheuser-Busch ad got a bigs thumbs up last night when it aired on the Super Bowl. Hank, the Clydesdale, doesn’t make the cut to pull the Budweiser wagon. His friend, a Dalmatian dog, steps in and trains the dejected Hank so he can win the following year.This spot wins because it’s aspirational and affirms the? American values of friendship, discipline, and never-say-no.? The music from “Rocky” puts it over the top.

When looking to connect with audiences aspirational themes always win. One reason Obama is neck-in-neck with Cliinton is his how he so expertly uses aspirational messages to connect with voters.

Great TV ad: Jeep Liberty

Every once and a while you see a TV ad that is so good you want to share it. Here’s one for Jeep Liberty that makes me smile every time I see it.

Dove, Axe Controversy: New Chapter in Marketing?

Is Unilever a hypocrite or just doing good brand marketing as usual? Here’s the controversy: Dove’s successful “Campaign for Real Beauty” introduced a video called “Onslaught” this fall educating girls on a wider definition of beauty, warning of the onslaught of typical beauty industry messages about what makes a beautiful woman (plastic surgery, bulimia, etc.), and advising parents to “Talk to your daughter before the beauty industry does.”

At the same time AXE, another Unilever brand, introduced some videos that depict women in just the opposite way — sex-crazed, busty, near-naked Amazons.Then comes this Dove-AXE mash-up spoof video, with the line ” Talk to your daughter before Unilever does.”

Since then there has been a blizzard of media articles, like this Op-Ed in the Boston Globe, “A company’s ugly contradiction” by Michelle Gillett.

“But the launching of “Onslaught,” the most recent of Unilever’s efforts to foster self-esteem, has also launched a controversy about the sincerity of its commitment to “real beauty.” …Viewers are struggling to make sense of how Dove can promise to educate girls on a wider definition of beauty while other Unilever ads exhort boys to make “nice girls naughty” and assure them, “the more you spray, the more you get” in the Axe deodorant body spray ads.”

Business school marketing courses taught us to create brands that connect with the target audience’s values and appeal to them emotionally, which both Dove and Axe seem to be doing superbly well, especially when you look at the revenue and market share growth of these two brands over the past few years.

In this new world of transparency, do branding “best practices” need to be rewritten? Instead of “connecting” with artificially constructed brands, do people want to connect with companies whose values and causes they identify with? Do people want “relationships” with brands or with the companies and people behind the brands?

I think the Unilever controversy shows that people want to buy from companies they like and identify with, not brands. A new marketing mash-up is in the making — branding and corporate reputation. The new stars won’t be the ad agencies, but the company’s leadership team.