An Old School Measurement Discounts the Internet

In my salad days selling radio, one of the compelling reasons for radio was its influence on individuals at the point closest to the point of sale – that is, in the car on their way to go shopping. It intimated radio’s conversion - the power of radio to convert listeners to buyers. A recent survey took a similar notion – influence on the consumer’s buying decision – and it doesn’t look good for new media.

Regarding electronics, "The Internet and Consumer Choice” study from the Pew Internet & American Life Project found that just 27% of mobile phone sales were significantly impacted by the web. The figure was only 23% for real estate, and surprisingly (to me, anyway) only 17% for music choices. (I’m a big fan of Pandora.com and its ability to introduce new artists, so perhaps I’m a bit of an early adopter there.)

Still, the role of the internet in researching purchases has not changed – 90% of respondents indicated that they still use the web for product research. For marketers, that means that on the web, content is still king – and that market awareness, visibility, credibility and brand building are critical on product websites. Conversion, however, appears to remain elusive.

Think radio. My former employers would love me for that plug.

Green is the new green

From my office in McKinney, Texas, where the city slogan is “Unique By Nature” and recent commercial developments include a LEEDS-certified Wal-Mart, an office building with their own rainwater cistern, and a Toyota dealership that used recycled materials in the construction of the building, I cannot help but recognize that the once nascent green movement trend is now a fully fledged market force.

Of course, you didn’t need me to tell you that. If you are like most Americans, you likely made a green-focused buying decision in just the past few days.

Time was when status was flaunted with clothing stitched with the right logo, cars sporting the correct nameplate, and even dogs of the proper pedigree. Today, status is increasingly conveyed not by the green spent but the green saved – both eco-logically and eco-nomically. This is a new culture of conspicuous non-consumption.

From tags on our emails imploring recipients to consider a tree before printing an email (whatever happened to the ‘paperless office’, anyway?) to organic household cleaners and hybrid vehicles, a product’s “environmental impact” has seen a spike as a key decision-making factor for consumers. But how committed are we to green products? After all, Americans tend to read diet books instead of dieting – do we also buy green products instead of truly living green?

A 2007 study by the New York Times indicated that only 36% of buyers of the Toyota Prius said that gas mileage was a factor in the decision. Moreover, fully 51% of Prius owners indicated that their purchase was fueled (no pun intended) by the fact that the Prius “makes a statement about me”. So, if we were to extrapolate this to all green-based purchase decisions, what does this mean for marketers? It means green claims are more at risk, not less, in the face of such (currently, anyway) superficial commitment. After all, if you’ve made a purchase as a personal statement, you don’t want to later find out that the product against which you leveraged your valuable personal image is in fact a fraud. Under these circumstances, the credibility of your product's 'green-ness' is additionally critical as it makes your environmental claims more subject to rumor, innuendo, and the whims of fashion. Marketers using ‘green’ claims to sell more product without credible evidence to support the messaging are subject to a backlash that could deleteriously impact the product, related products, the company and even the more established green movement.

Here then, from Environmental Leader, are five guidelines for effective environmental marketing:

1. 70% of Americans say quantifying the actual environmental impact of a product or service is influential in their purchasing decisions, so make specific claims about the quantitative impact of your green approach.
   
2. 74% of Americans indicate that a connection between the product/service and the environmental issue influences their purchasing decisions, so stay relevant regarding landfill waste, ozone, or emissions.
   
3. Make the claim and the support of it visible. Americans reach out to websites and product packaging for information.
   
4. Like all marketing messages, make it consistent across all language, images and branding activities.
   
5. Communications that include some sense of context, as well as a “work in progress” tone, will be more credible and less subject to criticism than claims suggesting that a product is the answer to all society’s ills. Even cereal companies claim that their product is only a part of a healthy breakfast!

Green is the new green. But tread carefully or it could become the new red. As in ink.

UBS: Uncertain Brand Strategy?

Peter Kurer, chairman of the bank UBS, which is arguably the world’s largest wealth manager and the bank most highly leveraged in sub-prime mortgage loans, was recently quoted by Reuters as suggesting that the damage to their reputation (read, brand) from the sub-prime mess will “go away after two or three years”.

That’s not brand management, that’s brand abdication. “Goes away?” Brand reputations don’t “go away”, they are merely replaced by new perceptions. What has Kurer in mind for replacing a brand perception damaged by $37 billion dollars in asset write-downs and two recent requests for emergency cash infusions?

Time heals all wounds? Not so fast.

Small gods

I recently discovered that a friend considers himself a Luddite because he has so far resisted the seemingly inescapable social pressure to own a mobile phone.

Having just returned from CTIA, where the discussion among the assembled wireless companies and network equipment providers was once again on the subject of providing more data access, services, collaboration on mobile devices - and I feel somewhat like an anthropologist among the crowds because I still know at least one 18-49 year old without mobile service at all. That's right, forget mobile internet and collaboration apps... he is lacking even simple mobile voice communication.

Actually, I am very sympathetic - and in fact envious - of my friend's postion on mobile phones. As Jerome Lawrence wrote for the play Inherit The Wind, "Progress has never been a bargain. You have to pay for it. You can have a telephone, but you lose privacy and the charm of distance. You may conquer the air, but birds will lose their wonder and the clouds will smell of gasoline."

Today we clone livestock and can grow a heart in a petri dish. We 'google' or 'wiki' information at our fingertips and can quickly become a skeptic, if not an expert, on any topic under the sun. We live and work in orbit 220 miles above the earth. We TIVO our favorite programs and thus appear to control the fabric of time. This week, a 'man' even announced his pregnancy.

Mobile phones have already allowed us to master the concept of being omnipresent. Success with these other endeavors will bring us closer to be omnipotence too. Small gods, each one of us.

So I cut my friend a break. Those who refuse the latest gadgets aren't Luddites. Just human.

D'oh!

Have you seen the the WaMu ad with the bald customer who, excited at the 'free services' at Washington Mutual (WaMu), fantisizes about driving a sporty ragtop as his hair grows - then billows - in the open air?

It disturbs me on so many levels.

The brief CGI sequence where his follicles are seen growing out of his scalp gives me the willies, plus I'm not certain the point of trying to convince people that a large bank will excite them. Beside the fact that it is a totally unreasonable claim - I mean, its a bank, not a Disneyland e-ride. Why is that a critical brand message anyway, given the country's current financial meltdown? Credibility, stability, authority, yes. Excitement? That's the last thing I want from my bank.

Now, adding insult to stupidity, CNBC's Jane Wells reports they've co-opted Homer Simpson, the icon of American stupidity, by trademarking the term Whoo-hoo (spelled intentionally with the 'h' as to not to be conflict with Homer's trademark widely known 'Woo-hoo' - honestly, look it up on their website, "Whoo-hoo" with a 'TM') and posted it visibly on billboards in bright colors all over urban America.

I must've missed that episode... "Mmm, donuts" I remember, "Mmm, beer" I recall seeing several times, but the episode where Homer and Bart go to make a deposit and Homer groans, "Mmm...WaMu Free Checking™ account with one style of check for free. WaMu will not charge ATM fees for cash withdrawals, but non-refundable ATM operator fees may apply. Foreign currency exchange and transaction fees may apply to wires and card transactions. Other banks involved in wire transfer may also charge fees. If your account is open and in good standing on your anniversary date you’ll receive a $0.03 reward for each Debit MasterCard® purchase transaction made within the last year up to a $250 reward. Ask about other fees applicable to your account."

Nope, I missed that one. Right along with my confidence in WaMu.

George Carlin - Visionary

"If you nail two things together that have never been nailed together before . . . some shmuck will buy it from you."

George Carlin uttered these words thirty years ago, and the only thing this visionary was missing from that statement, in itself an abbreviated marketing plan, was the question of distribution.

The cyber flea-market that is eBay, folks, I have now realized, is the answer to Carlin's distribution problem. Its the most effective method of distribution since Sam Walton sold his Ben Franklin franchises. It's toast with Elvis' image, its a box of rocks, its baby naming rights. Most recently, it is a cornflake in the shape of the great state of Illinois: http://news.yahoo.com/s/ap/odd_illinois_corn_flake.

There is no harm in listing the item for sale (although let's hope it was done during one of eBay's free listing promotions) but it is in the buying I find questionable. After all, I don't think there is a corn flake made that doesn't resemble one of the plains states. I mean, come on, people, its CORN. It's in the DNA of a flake!

Or is it Obama-mania?

Either way, add Carlin to legendary names like Ogilvy, Porter, and Godin. Pure genius.

When did the guys from Delta House start running Microsoft?

"Fat, dumb, and stupid is no way to go through life, son."

These immortal words, uttered by Dean Wormer in the classic Animal House, could be applied collectively to many companies today. Many come to mind, the most obvious is Microsoft, where last year in the rush to get a new product launched, it wasn't so much 'fat, dumb and stupid' so much as 'hubris, avarice, and... okay, stupidity'. It isn’t often easy to distinguish between those three. Too often, all are a part of a lousy decision, and the launch of Vista illustrates all three.

Twelve months following the launch of the Vista operating system there remains a significant reluctance among consumers and enterprises to ‘upgrade’ to the new operating system. Heads in the sand, Redmond executives are quick to suggest that price alone is a deterrent to sales. Yet anyone who knows anyone who has used the operating system likely knows one or more of the dozens of horror stories associated with Vista. In short, the stories caught fire and the Vista brand now precedes itself. No amount of new pricing strategies will change that.

In recent court documents stemming from a class action lawsuit, it is discovered that even Microsoft’s own executives were victims of Vista, either through a lack of drivers for peripherals, certification of underpowered hardware, or a host of other issues common to all Vista users… the executive types from Redmond voiced their frustrations in revealing internal emails obtained by the court.

The reason for the failure of Vista is, as stated above, actually three-fold: hubris, avarice, and stupidity. According to a recent article in the New York Times, all three were in play in Redmond at the time before, during and after the launch.
Hubris:
In the run-up to launch, Microsoft lowered the requirements for hardware, changing required wording on the ubiquitous sticker from “Vista Ready” to “Vista Capable”. (The latter is actually on the notebook on which this is being typed. I run XP, as after having deloused a neighbor’s Vista machine, I elected to stay with what I know).

Avarice:
Internal documents obtained through the legal action reveal that the decision to dumb-down the hardware specifications faces even internal protest in Redmond, including, according to the Times article, Anantha Kancherla, who as a Microsoft program manager was in a position to know that the configuration was so minimal that “even a piece of junk will qualify.”

Stupidity:
Anticipating customer revolt after the hardware requirements were compromised, Microsoft’s own staff prepared for the certain complaints in internal discussions, including a comment from a Microsoft sales manager who wisely – and obviously – wrote, “It would be a lot less costly to do the right thing for the customer now, than to spend dollars on the back end trying to fix the problem.”

It’s too late for Vista, and my humble prediction is that it will go away and undergo a retooling - perhaps a later integration of key features into a different OS release. (There is precedent for a failed OS... anyone running ‘Windows Me’? Didn’t think so.) As for Microsoft, to borrow another Animal House reference, they are now on "double secret probation" with the marketplace. Microsoft needs to be schooled in the threat posed by its competitors – not the least of which include Google, and of course, open source. The days when consumers would accept whatever Redmond dished out are past . Vista is just a symptom of the whole of the Microsoft brand.

To paraphrase Deam Wormer, “Hubris, avarice, and stupidity are no way to run a company, son.”

The British are clicking! The British are clicking!

According to a recent report by eMarketer, the British are embracing digital technology - notably e-commerce - at quite a clip. "Britain has one of the most experienced and active online populations in the world," says Karin von Abrams, eMarketer Senior Analyst, and “confidence in e-commerce is high.” Apparently in 2007 nearly 37 million Brits went online each month, or about 60% of the population, with estimates of 70% in four years.

Notably, the report indicates that 40% of 2008 online sales in Western Europe come from the UK. The UK is expected to represent the greatest share of the European market for years to come, even as the continent catches up. The report's author Von Abrams suggests that the island geography presents a long tradition of catalog shopping that "has contributed to the practice of online buying".

Important to marketers is the insight that the British are very confident of their shopping online, as sellers have established "excellent security for transactions and reliable delivery services ... and online prices are very competitive, particularly for books, travel tickets and items bought at auction sites."

Low price, buyer confidence, convenience. No surprises, really, just a different venue.

Sir Edmund Hillary, RIP

Sir Edmund Hillary, who in 1953 was the first Western man to summit Everest (his Nepalese Sherpa, Tenzing Norgay, should never go unrecognized) died today.

Many might suggest that he wasn’t the first person to summit Everest, that that honor arguably belongs to George Leigh Mallory, who died in the attempt in 1924. But as significant as Mallory’s attempt was, it is important to remember that the rule for summiting is that a successful effort is measured less by reaching the summit as by the safe return afterward. So it is in mountaineering as in business, the greatest leaders are trailblazers known as much for their own accomplishments as the opportunities they create for others, the imagination they spark in us, and the possibilities they inspire among us all.

It is hard to imagine that the tallest peak on earth was conquered only as recently as just 55 years ago. But almost as proof of the impact of Hillary's pioneering spirit on others, it is perhaps even more difficult to comprehend that the moon was conquered a mere 15 years after Hillary’s summit here on terra firma. I would suggest that the indomitable spirit of Edmund Hillary and Tenzing Norgay certainly fed the spirit of our space program as much - as if not more - than the competition we felt from the Russian launch of Sputnik.

Just as Hillary had his moment, business leaders today have an opportunity to leave their mark on history – but they should also learn from that humble New Zealand beekeeper that the larger impact they can make is through leading by example, taking risks and inspiring their team toward their own, as Jim Collins (Built To Last) would have it, “Big Hairy Audacious Goal”.

As George Mallory proved, driven men are remembered for the risks they take and the accomplishments the master. But it was Sir Edmund Hillary who proved that leadership is not only about reaching the peak, but about coming down off the mountain, and by doing so, showing others the way and encouraging them toward their own personal summits.

Know thyself

"The essence of leadership today is to make sure that the organization knows itself." -- Mort Meyerson

This statement by Perot confidant and former EDS Chief Executive Mort Meyerson is my advice for you in 2008. Not far from the platitudes “Know thyself” and “To thine own self be true”, Meyerson’s statement emphasizes the importance of a widely understood, and closely followed corporate Vision that drives a firm’s mission, principles, and strategic direction. An organization that knows itself knows how to spot opportunities, navigate troubled waters, and work together toward common goals. For individuals, it helps define roles and responsibilities, establishes their individual value to the organization, and builds the foundation for empowerment in decision-making.

To thine own company should each employee be true.

Brand In The Place That You Live

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A pie in the Facebook

Like so much in marketing communications, particularly events and public relations, it is often hard to see good efforts working. But you sure know bad efforts when you see them.

Specific to PR, with their widely publicized Beacon debacle, add the golden boys at Facebook to the legions of bad PR episodes, now along side the fake blogging shills for Wal-Mart, promotions for Cartoon Network, executives at Enron, and on-going messes for the Red Cross and FEMA.

Sayeth Josh Quittner at no less a source than Fortune: "What’s harming Facebook - perhaps to a terminal degree - is enormously bad PR. For a social media company, these folks don’t understand the first thing about communication; they have alienated the press by being arrogant, aloof and dishonest. " And still more from CNET: "The big question for users is whether there is anything Facebook can do to regain their trust."

I can't always define bad PR, but I know it when I see it.