The Last Wave?
November 5, 2009 @ 12:40pm
Updated — November 16, 2009 @ 3:25pm
by Austin Edgington
Every twenty five years or so, a really big communication wave comes along that sweeps innovation and change into our lives. The first one I remember occurred when network television replaced radio as a focus for info-tainment and created modern advertising; so nicely portrayed by the butt puffing men of Mad Man. Yes, I’m old enough to remember when a ‘Winston tasted good like a cigarette should,’ and other tobacco pedaling jingles. In the 80’s, cable TV launched and undermined the network’s dominance by decimating advertising revenues with lower costs and wider choice of programs, characterized by re-runs, ESPN, and faux news show.
Then Web 2.0 crashed on our shores a few years ago, washing in social media and revolutionary web platforms like Facebook and Hulu.com. What’s interesting about this shift is the audience social media created. Techies, artists, writers, housewives, students, innovative business leaders, anyone with an opinion and others looking for connections beyond their daily toil flocked to Vox, Facebook, Twitter, Plaxo, Linked In, and more. They formed communities, groups, relationships, and trust arising from dialogue among one another in ways not imaginable by marketers in the past. It’s weird, it’s wonderful and it’s happening now.
The reality is that this new media, a term I use to describe the aggregate of social media and new web offerings, has disrupted marketing. For example, blogging news sites like the Huffington Post changed the way public relations is conducted. Social utilities like Facebook allow businesses to easily run ads and changes the way ad agencies can reach target audiences, while social media platforms like Vox, where people from tight, trusted neighborhoods converse about everything from their parents divorce to whether to purchase a VW or a BMW…changed web marketing as we knew it.
The traditional paradigm of engaging customers based on creating awareness, to create interest, which leads to a desire that prompts a consumer to purchase has been replaced by a new model that has more steps, but, paradoxically is more immediate and happens virtually 24/7.
In the new media model consumers take different steps purchasing. We call it the “Five R’s”;
- Referral – A potential customer can easily be referred to your product or service by a friend or neighbor from their social network, and often the customer has never met the friend or even know their real name.
- Research – Based on their online buddy’s referral (or not), they can research your brand on Google, Yahoo, or Bing. Conversely, you must now research where they are, what sites they travel, and what they have to say about your brand to be effective in reaching them.
- Relationship – In doing so they may develop relationships with other brand users and further discuss brand attributes. They are developing a now have a relationship with your brand and are arriving at the purchase decision.
- Reliability – Now the ball is in your court, and you must easily, seamlessly capture the purchase, facilitate the delivery, and follow up with customer service. This is more and more becoming what is known as the annoying ‘pile-on’ method, which often erodes your credibility. Comcast will drive you nuts with this approach after a botched service implementation.
- Responsiveness – Being responsive to your customers needs in a reliable manner is most important. Drop the ball on this and immediately negative responses will begin to emerge on the very sites you are searching for customers. Two great examples of doing this right are Zappos and Amazon.
With the current wave washing away the way marketing has been conducted in the past, which is often last month in new media time, the question often posed by clients is: What’s a marketer to do? The answer is innovate. As the late great Hunter S. Thompson once quipped, “When the going gets weird, the weird turn pro.” Marketers need to look the weirdness of social media in the eye and turn social media pro. They need to think like those they wish to engage and go where they are; and do so with the credibility and authenticity the defines the trust that hinges the culture of the new media together. If you’re a CEO you will get much more mileage out your blog or tweets if you pen them yourself, even if you are not a witty communicator like Tony Hsieh of Zappos. The medium is the message, and authenticity rules the message.
The way to ride this wave is to embrace change, innovate, and partner with those who are riding it with knowledge of the waters they navigate and an eye on the future. After all, in new media time, it will soon be the last wave.
Tags
Bing, communications, Facebook, Google, marketing, social marketing, social media, twitter, web 2.0, Yahoo
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Is Starbucks Diluting It’s Brand with Via?
October 7, 2009 @ 11:07am
by Mason Razavi
When Starbucks announced that they are launching their version of instant coffee, a thought went through my head: Good job Starbucks, way to take the “luxury” out of “luxury brand”. Known to many as providers of premium coffee, and to others still as simply carrying a premium price tag, entering the instant coffee market seems like a diversion from Starbucks’ overall plan of being the top coffee vendor in the world.
Love ‘em or hate ‘em, it’s become trendy to slam Starbucks by making a snide comment on paying $5 for a cup of coffee. I always found that statement slightly inaccurate; after all, can a triple grande non-fat, no whip, peppermint zebra mocha (my old supervisor’s drink of choice) really be considered just another cup of coffee?
Still, Starbucks has made efforts to downsize their organization and readjust their strategy to provide some lower priced options. Most notable was that they began to offer breakfast combos including a hot drink and a meal item for around $4. Now with their instant brew, Via, Starbucks takes another step in becoming a value-driven retailer.
One has to wonder how much this will impact Starbucks’ image in the long term. I once read something intriguing in a book on management and motivation about how you should play to your strengths instead of trying to be everything to everyone. Stick to your guns, do what you do best, and get even better at it. In another book I read that was geared to songwriters, the author very specifically and emphatically noted that it is paramount to make 1 or maybe 2 styles your own, and not try to become the be-all and end-all of songwriters who can write beautifully in every style. To that end, is Starbucks diluting it’s own brand by trying to be everything to everyone?
After all, people don’t drive BMWs because they’re practical, they don’t buy Tiffany’s because they’re affordable, and they certainly don’t wear Diesel jeans because of some “everyman” sort of image. People certainly don’t visit Starbucks for affordable, practical coffee buys. Most people walk into a Starbucks knowing what it is and expecting to spend a few bucks.
With the economy being the way it is, it’s certainly not a bad idea for Starbucks to reposition themselves as value-based retailer, or at least to have those options, and I trust that greater minds than mine are concerning themselves with the long-term affects of such decisions.
For what it’s worth, yes, I tried the taste challenge, and yes, they did taste remarkably similar. And no, unfortunately I’m not getting paid to say that.
Tags
branding, marketing, Starbucks
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You spent how much?
June 1, 2009 @ 8:08pm
Updated — July 6, 2009 @ 5:28pm
by Mason Razavi
Let me start by saying that as a general rule of thumb, I’m not the type that tends to cling to a brand name. For example, I have a friend who will only buy Sony electronics, Ford cars, and Oakley sunglasses. My nose ironically stuck in the air, I often considered myself to be above this seemingly baseless snobbery. Sadly, I recently found out that I too am privy to the expectations, vision, and lifestyle associated with high-end products…which is why I spent about $200 on a pair of Ray-Ban sunglasses. A pair of Ray-Ban Cockpit RB3362’s, to be exact.
Why? I had never before spent more than maybe $20 on a pair of shades before, yet for years I had been attracted to the allure and understated class of a pair of Ray-Ban aviators. Finally, I had some disposable income that I could feel less guilty about throwing away on a pair of sunglasses that, without the little logo on the right lens would probably be worth about $25.
So I did it. They’re awfully nice, and come with a little cleaning cloth and case, also stamped with the classic logo.
Ah, the power of branding.
Those $25 shades that work the same as their $200 Italian counterparts are missing one thing: a brand. Much more than just a logo, a brand allows a company’s products to transcend the ordinary to become associated with a lifestyle, an exclusive club, or perhaps just a sense of endowment (no jokes about overcompensating. This is a family blog).
For me personally, I don’t care if other people on the street see them and think “wow, this guy must be some hot S.O.B.”. Rather, it’s to satisfy my own needs, my own desire to sport a pair of sunglasses that have achieved legendary status.
For what it’s worth, I showed my friend. You know, the one who’s all about Sony, Ford, and Oakley? According to him, these look like $10 sunglasses. Go figure. I guess the understated isn’t for all of us.
Tags
branding, consumer behavior, marketing, purchase, Ray-Ban
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Marketing and The Economy Part 2: Binky’s Bananas
May 20, 2009 @ 4:58pm
Updated — May 20, 2009 @ 5:01pm
by Mason Razavi
Back for more info on marketing and the economy? How could you not be! Examining corporate behavior during desperate economic times not only makes business sense, but is fascinating as well.
This time around I want to talk about a company that probably doesn’t want me divulging their clever marketing plan to the public. So, let’s just say this company is called “Binky’s Bananas”, and let’s say that they manufacture and sell high-end bananas through retail stores as well as several other sales channels.
Binky’s had a relatively rough year last year, though not as bad as many companies out there who had to seriously restructure their business or shut down altogether. They finished their fiscal year at about 75% of their sales goal company-wide which, while not great, is relatively respectable considering the uphill battle they fought against the crumbling economy.
During not-so-rosy economic times, it becomes difficult for high-end manufacturers and retailers such as Binky’s Bananas to convince people that they should fork over hard earned dough for products perceived as luxuries. So, with a new fiscal year, new and attainable sales goals, and the promise of new products coming out, Binky’s also decided to re-vamp their marketing campaign.
You see, Binky’s is perceived as an unattainably expensive brand by most, so these crafty marketing primates have to find a way to re-position themselves as a brand that offers quality products at attainable prices. With this in mind, their new campaign focuses on positioning their most affordable products at the forefront. This is evident at their stores; the window displays use images and copy that stress value, and the main banana in the window is their most modestly priced model.
But Binky’s isn’t done monkeying around just yet. What’s really interesting – especially to consumers – is how they are using different promotions and promotional copy in different regions. You will find that their retail stores that are in rural areas stress value using one tagline, whereas stores in affluent areas use different words to essentially say the same thing. What’s more is that they are running different promotions in their western region versus their eastern region. So while the print ads in California offer a free banana rack with a purchase of their fully featured Big Blamo Banana, the print ads in New York City entice you with a free banana launcher if you buy one by the end of the month.
The best is yet to come. What Binky’s is doing is running A/B tests across the country to see what promotional items and compelling copy is best reaching their customer base. Throughout the year, they’re going to compile their data to assess what has been working and what has not. With this in mind, their future campaigns can be more focused, more in tune with their customer’s needs, and hopefully will drive more sales.
There is a moral to this story, for consumers and also for businesses.
For consumers, keep your head up and your eyes open! You never know what kinds of deals are out there, and how they differ from location to location. Businesses are desperate to make a sale these days, so don’t be afraid to do your homework and walk into that local car dealer/electronics retailer/high-end banana shop and ask for what you want.
For businesses, keep an open mind and utilize the most creative people around you to find new ways to reach your customers. Things have not only changed, they’re in flux as we speak. Some of the rules of yesterday don’t apply, and new technologies in the social networking world are changing the ways that consumers behave, spend and advocate. Now is the time to try new things, to unleash that creative beast inside, and let the brightest creative minds at your disposal take charge to create compelling campaigns in an effort to deliver an extraordinary experience to your customer base.
Hey, if you need some expert advice, don’t be afraid to pick up the phone or click the mouse a couple of times to get a hold of Elative Marketing. Our team of highly advanced, bi-pedal primates can help you reach your clients through engaging, compelling promotional campaigns. No, really. No monkeyin’ around, I promise.
Tags
binky's bananas, campaign, creative, economy, marketing, plan, strategy
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Marketing and The Economy
May 12, 2009 @ 5:22pm
Updated — July 6, 2009 @ 5:26pm
by Mason Razavi
We all know what happens when an organization starts to lose money: the creative departments are usually the first to take a hit.
Take public school systems for example. When there are budget issues (and believe me, us Californians know about budget issues), the art and music departments are shut down and the teachers running those departments get the boot. This is all too sad, but I guess some school districts feel that the investment we make in trying to develop creative-minded individuals who are not just left-brained robots is a boondoggle.
In the business world, it’s the marketing and advertising arm of the company that gets downsized. After all, pretty pictures of a company’s products are more of a luxury than manufacturing and other departments, right?
I hate to talk about the economy, as anyone who has had any contact with any news source over the past year and a half is probably tired of talking about it. To that end, I won’t dwell on the economy, but rather the shift in marketing resources and the rise in email and social media marketing.
Excited? Good! You should be.
I was reading an interesting article from the Associated Press about how companies are turning to more cost-efficient, internet-based alternatives to their traditional marketing tools.
That article is a well-written testament to the power of the internet when it comes to contemporary marketing strategy. In a day where companies are forced to steeeee-retch their dollar, e-mail marketing campaigns and websites like MySpace and Facebook are coming to the forefront as powerful and cost-efficient marketing tools.
Some companies have gotten clever and have put together an integrated online marketing strategy. This would involve putting up a website as well as accounts on all of the popular social networking websites. Then, updates are made on all of the websites to reflect what is happening with the company. Smart organizations track who follows them on which website, and they use the information they gather to come up with focused, targeted advertising campaigns. As the Associated Press article says, there is some cost involved in terms of paying the right people to execute such a strategy, but there is no doubt that that the return is significant.
Tags
marketing, marketing promotion, social media, social networking web 2.0, strategy
