Showing posts with label strategies. Show all posts
Showing posts with label strategies. Show all posts

Wednesday, September 2

Why Do Marketers Still Struggle With Decision Making?

By most accounts, CMOs are increasing their organizational spending on social, mobile, and analytics. One recent study places this budgetary increase at 12.2 percent over the next year.

The increase is in addition to social media spending, which already accounts for more than 10 percent of most total marketing budgets. In five years, this same spending will eventually account for about 25 percent of most total marketing budgets. And none of this news should surprise anyone at all, especially with the increased attention that marketers are giving to the growth of online video.

Digital marketing and social media are mainstream even if measurement remains somehow elusive to marketers. 

What should surprise people instead is that marketers readily admit that they don't really know how to measure the outcome of their efforts. In fact, only 15 percent of CMOs say they have successfully proven a quantitative impact associated with their social media efforts. Conversely, 41.5 percent of marketers haven't been able to show any impact from their social media efforts. The mind boggles.

This apparently nagging inability to measure outcomes is a symptom and not the problem. The problem is how many organizations lack a marketing or communication plan and, even more commonly, how many lack good marketing or communication plans. If they did have good plans, measurement wouldn't be a problem as the key has always been to set realistic and measurable goals.

It's almost impossible to measure outcomes that aren't tethered to objectives. 

Likewise, it's almost impossible to not be able to measure outcomes if they are tethered to realistic, measurable, and specific objectives. And ideally, those objectives will be drawn from the organization's mission, vision, and strategic plan.

Why is this important? Because specific business goals — along with considerations like product or service life cycle, market share, consumer base, competition, proximity, resources and self-imposed restraints — lead to very specific marketing and communication goals. Consider just a few of them:

• Introduce new products or services. While awareness is worthwhile, introducing new products and services means more than people knowing something exists. Communication objectives can be grounded in outcomes like market position, brand recognition, and value proposition retention.

• Capture market share. Given market share is a key indicator of competitiveness among competitors and market viability. Subway, for example, focused on market share when it stopped defining its market as sandwich shops and started attacking the quick service market.

• Become an industry leader. Most companies that strive to be industry leaders market the influence of the leaders and knowledge of their industry more than they do their products or services.  Becoming a trusted source increases credibility and results in significant market advantage.

• Improve customer loyalty. Organizations that want to increase customer loyalty invest in marketing that reinforces individual relationships, personalization, and the best possible customer experience. Some include incentives, but only those that reinforce positive customer experience.

• Increase product profitability. Sometimes reining in a marketing plan, pushing loss leaders, or reducing non-productive expenses can mean more to a company than expansion. The same objective can also include add-on items that require no additional marketing and well-timed follow-up sales.

• Increase gross sales or revenue. Increasing sales (units sold) and revenue (money made) can sometimes be likened to a throwaway objective in that sales and revenues are often the natural outcome of every objective listed. So if you include this objective, make it specific — X percent of increase in the marketing budget will generate X percent increase in sales within three or six months.

• Become a good corporate citizen. Responsible corporate citizens that support the communities in which they operate often benefit from increased visibility, credibility, and opportunity. Outreach programs can be especially effective when they lift up communities, creating the most potential customers.

• Foster a strong corporate culture. Whether the objectives is tied to acquiring top talent or is more market oriented in better meeting the needs of the customer, a strong corporate culture pays dividends by positioning the company from its people out. Allocating more to internal communication can help.

• Nurture ideas and innovation. When companies make this their objective, marketing enjoys a pretty clear directive that their content and creative ought to aspire toward the same goals. Apple used to be the best example in marketing innovation but not so much nowadays.

• Increase store or website traffic. If this is the objective, it almost always has to be tied to some residual effect such as lead generation, conversation, or community building. The challenge with the concept is to keep it relevant so the traffic counts don't lose customers for life in the process.

• Shape public opinion. If we remember that the primary objective of any marketing and communication program is to change behavior or public opinion, then it stands to reason our objectives ought to define what change we anticipate. Once launched, measure the change.

Naturally, these objectives (most of which would need to be fine tuned and more specific to work) only scratch the surface. There are dozens and hundreds of organization-specific objectives that could be taken into consideration, including proximity, community culture, competition, etc. (For example, a marketing plan for an Asian restaurant in China Town would look very different from a plan in a suburb without one or a farm town without many dining options.)

In fact, these variables (and marketing's unwillingness to accept they exist) are the primary cause for confusion. Too many marketers are looking for some holy grail of marketing plan and outcome measurement that somehow manages to cast the whole of marketing (and each of its tactics) into a plug and play template. But outside of making a few marketing consultants rich on 10-step books in the short term and shifting marketing budgets to social, they work for relatively few organizations.

So before your organization jumps on social, mobile, and analytics wagon, make sure any budget increases are tied to strategic objectives that can be readily measured. Who knows? You might discover a different communication vehicle for your company, one your competitors would never consider.

Wednesday, August 5

Are There Too Few Analysts In The Field Of Journalism?

There is one place broadcast news continues to beat out print journalism online and it's about time print-to-digital migrants took notice. People aren't looking for news outlets anymore. They are looking for informed experts — analysts, informants, and influencers — who add commentary and consult to their observations of world events and breaking news.

For many journalists, especially those hanging on to the last thread of objective journalism, the concept sends shivers up their spines. It's something different being a columnist or critic than a hard news journalist — writers who prefer to be seen not for their style but for the masthead they make home.

But that's not what people want. They don't want to find the same news in every paper. They don't want truth in media if that means vanilla reporting. And they certainly don't want forgettable bits of top-down information that can be spun out by anyone no matter how hard print tries to maintain it.

Print-to-digital migrants need people that the public can identify.

Sooner or later, print-to-digital migrants have to realize that their decision (some of them, anyway) to cut costs by letting all their veteran journalists go in favor of young, cheap, and desperate writers was a mistake. They needed to double down and transform those old school journalists into quasi-celebrities, a status once reserved for columnists, investigative reporters, and Gonzo journalists alone.

Except, unlike some of their more biased brethren, they need to usher in an era of impassioned objectivists — journalists who aren't afraid to look at the world the way it is (rather than the way they want it to be) and still turn a phrase that causes you to turn your head or wreck you gut or shake you awake. They need to write so well, in fact, that we want to know them by name and trust them to shape our brains.

By shape, I don't mean the advocacy and affirmation news that broadcast serves up on daily basis. What I mean is striving for stories that leave people so deeply informed about a topic that they can form their own opinions. What I mean is writing articles that aren't afraid to dig deeper into topics so we may transcend the tit-for-tat tactics of sourcing two opposing viewpoints who only talk around the surface of the subject. And what I mean is raising the bar rather than insulting the public's intelligence.

How to make print media relevant again with modern reporting.

Just as news publishers are learning in Pakistan, news organizations are learning all over the world: The "power of the press" shrinks exponentially when the public can buy digital ink by the barrel too. In other words, reach ceases to be a value proposition when companies and campaigns frequently beat out the circulation of most major news organizations. So maybe it's time to change it all together.

• Develop more specialists. Whereas news reporters used to be generalists, the public craves to get their information from specialists. This is one of the reasons some research firms have thrived in recent years — they publish content by passionate analysts who are informed, visible, and objective.

Journalists can easily take a page from their playbook or any number of 'new media' publishers that began delivering better content in some verticals than the dailies did, starting almost a decade ago. These people didn't just report the news and other people's views, they provided real analysis.

• Market semi-public reporters. Of course, content wasn't the only place new media started to crush some dailies. Almost every new media publisher and content provider won on personality too. Instead of providing authoritative reporting from under a masthead, the public was treated to a snapshot of the people behind the words.

Much like broadcast has known for years, the messenger can be just as important to the public as the message. In fact, most of the public will even forgive openly biased reporting as long as they feel like they know the person behind it. Ergo, the reporter IS part of the value proposition nowadays.

• Content needs to be intuitive. Ask most people about the ideal length of web content and most of them will skew short. It isn't really true, but plenty of people make a great case for short. Most folks only want a few graphs that sum up everything, they say.

What they really want is tiered content — short introductions that allow them to discern whether or not it's a topic that interests them enough to dig deeper. In fact, I've met more and more people who tell me they use media outlets like Newsy to scan the content and then turn to The New York Times or The Washington Post for in-depth coverage in an attempt to create a DIY hybrid of content agility.

• Multimedia wins the Internet. Sometimes people want to stream clips and other times they want to scan headlines with pics, but they want so much more from anything they decide to dig into deeper. Just as it is having an impact on content marketing it is true for journalism too.

Different people learn differently so they want their content to be visual (see), auditory (told), kinesthetic (touch), or language based (read/write) as it suits them. So knowing this, it only makes sense that digital journalism needs to be multimodal whenever it makes sense — reinforcing whatever story that happens to interest them with maps, infographics, interactive displays, video clips, animation, or anything that make sense.

Maybe all we need are authentic journalists with dazzling content.

While most newspapers have been busy chasing eyeballs to make themselves look more viable than they are, they should have be reinventing their value proposition instead. Consider the obvious.

What if more print-to-digital migrants hired authentic reporters that people could trust to deliver passionate stories that could help us better understand the world? And, what if they did it in such a way that we could preview the content before immersing ourselves in interactive multimodal content?

While no one can be certain, odds are that this kind of publication wouldn't have to worry too much about circulation. In fact, when you look at how people cobble multiple sites together to get the same effect, they wouldn't have to worry about revenue either. Journalism would become relevant again.

Wednesday, June 17

Five Practices To Put Some Strategic Back Into Social PR

Public relations is in a self-selected state of change and the driving force is clearly social media. As many as 81 percent of communicators now believe that public relations can no longer operate without social media despite 64 percent considering it more superficial than traditional media. Wow.

Many professionals find those statistics frightening for two reasons. As social media consumes more and more of a public relations professional's day, the more those pros feel as superficial as their task work. And as more public relations professionals include social media as part of their primary practice because they must, more of them break away from the tenets of public relations in favor of measures that are much more akin to tactical marketing. Some, arguably, have become marketers.

While there is nothing wrong with that per se, the emphasis on tactical work has consequences. I've warned about several such problems many times before. But more than that, the way social media is being practiced tends to take public relations practitioners further way from strategic thinking, which was the quality that provided the profession real substance.

How can public relations channel strategic communication again?

1. Refocus On Relations. With all the pressure to increase impressions or go viral via social media, it's all too easy to forget the real stakeholders. By crafting communication with particular publics, special interests, or industry influences in mind, you can make deeper, longer lasting impressions.

Sometimes the best content isn't designed to generate leads as much as to deliver value to niches that have already expressed an interest in your products and services. If they appreciate it, there's a good chance they'll share their experience or your story— referring qualified leads to you anyway.

2. Stop Dialing Up Content. Sure, automation has its place across public relations and social media, but absenteeism can cannibalize your budget while eroding brand equity. Status quo, especially with an increased frequency or to mass media over niche, will eventually kill the communication program.

Stop setting a news release quota and select only the choicest news over the wire services and then repurpose the release for direct-to-public content with a twist for whatever audience has been assembled there. The same can be said for content marketing. Strive to elevate over educate.

3. News Wants Multimedia. Given the outpouring of studies that support the growing impact of visual communication, news releases need to do more than deliver words. Photos, videos, audio files, interactive graphics, graphs and illustrations are all worthwhile accompaniments for any release.

You don't have to include them all in your pitch or press release: A well-organized landing page or digital press kit makes everything easier, especially when it includes vertical photos for mobile. And what if the story you're selling doesn't merit multimedia? Then maybe it doesn't merit being shared.

4. Inspiration Beats Interruption. While people still consider the Oreo cookie blackout advertisement a classic case study, the novelty of news jacking and link bait is wearing thin. Simply put, the frequency of interruption — and distraction — has outpaced its real-time marketing merit.

Yes, there is still room to be timely on a topic. Successful advertising, marketing, and public relations campaigns have always been tapped into the current culture and current affairs. But with consumers growing wearisome of messages that follow them around (privacy pushback) and interrupt conversations in an attempt to change the subject (ad blocking pushback), it's time to think long term. Ensure those real-time marketing opportunities lend something to the conversation.

5. Be First For A Change. Years ago, I used to tell public relations students to not only know public relations inside and out, but also the industry or industries in which they work in as well. Doing so meets one of the criteria related to traditional public relations, which is to research trends within the industry and marketplace and determine what impact they may have on the organization and its publics.

Nowadays, I tell students that technology needs to be included in the research mix too because we're only a few years out from another disruption in communication. So instead of being reactive to things like social networks and search engines, public relations professions need to be proactive in determining how to apply cutting edge technology to their communication mix with an expressed intent to strengthen the relationships between their organization and those publics it needs to survive.

And if it doesn't? Then the bulk of the profession will eventually be absorbed by integrated marketing communication, with a handful of practitioners remaining to denote some specialty skills such as media relations, crisis communication, and public or government affairs. Who knows? Maybe that won't be such a bad thing. Or will it? I'll leave that one for you to decide.

Wednesday, May 27

What Could A Leaner P&G Teach Us About Marketing?

It's a new discussion that isn't new. Every few years, someone wants to break up Proctor & Gamble, which is the largest publicly traded personal products company in the world. With a market capitalization of $220 billion, it's also one of the largest companies in the United States.

Some of the reasoning is tied to sales. The company recently reported 3 percent growth in organic sales, but its CEO suggested that growth could have broken 4 percent if it had split off some brands. Specifically, the idea is to keep the top 70-80 products that generate about 90 percent of its sales.

About 23 of those top brands boast sales ranging from $1 billion to $10 billion, and 14 with sales of $500 million to $1 billion. All those would be kept, even if some stakeholders think the time might be right to break it up in bigger chunks rather than shed smaller assets like Duracell.

Some of the reasoning is psychological. Big companies rarely capture double digit growth rates. They are also prone to job cuts and restructuring, which can take a toll on employee morale. Most people see them as threatened by smaller and much more nimble competitors, especially those with a keenness for innovation — something P&G has tried to keep by developing a new model for R&D much like it did for marketing, which led the company to embrace digital at a deeper level.

How a leaner P&G could produce a better marketing model.

From a marketing perspective, breaking P&G into three or four big chunks doesn't make as much sense, especially after the company successfully retooled its marketing division to think more like brand managers and less like corporate number crunchers. The result has been mixed, with the lackluster launch of Tide Pods but the iconic #LikeAGirl campaign that people still talk about.


Perhaps all the company needs to do to reinvigorate growth is to even out those marketing efforts by reimagining a hybrid between its old and new models. Once the company successfully diverges some of its non-core brands, P&G could develop a brand partnership model that provides each brand manager more market insight, consumer data, negotiation power, and creative co-ops that cross over from one brand to the next. (e.g., #LikeAGirl might not be confined to a single brand.)

There are times where P&G succeeds in developing collaborative strategies. As an Olympic sponsor, the company successfully promoted several brands as part of one package. Its sentimental Thank You Mom campaign during the 2012 summer Olympics, for example, resulted in a $500 million sales boost and prompted an encore for the winter games. (The company was ready with 38 different YouTube commercials before the Olympics even started.)

Even better than the immediate return, any P&G converts will deliver a lifelong return for the company. It's this kind of forward thinking that continually leaves a positive impression. Now all the company has to do is start thinking beyond a singular event to bind its brands. Spontaneous crossovers could go a long way, especially for a company that reinvests more revenue into marketing.

Such a move by P&G could reinvigorate marketing. 

Much like the company already directs regions and media, P&G could be on the verge of a much more versatile marketing machine, one that is worthy of a case study. Such a program could be built with individual brand campaigns with the most successful providing crossover opportunities and uniting themes (combined with bigger buys) for the others. It would reinvigorate some marketing theory, even for small companies willing to partner with complementing and non-competing businesses.

Such a move would also quell the idea that P&G needs to be broken up into three or four big chunks, given the resilience of flexible marketing comes from a bigger network of brands (not a smaller one). Sometimes the brand could market itself (with shared research, etc.) but other times build off something another brand has built or reinforce each other's reach by sharing a proven theme.

What do you think? In an era when consumers appreciate smaller companies rather than the giants of the past, some people believe it is too late for any behemoths. Others disagree. They see some of today's giants rewriting the playbook while their pockets are still deep and revenues large. And with the company vested in innovation, such as 3-D bioprinting, no one really knows what could be next.

Wednesday, December 3

Social Media Has Grown Up. Maybe Your Marketing Does Too.

A few weeks ago, someone sent me a long list of advice on how to use social media to market an event. Suggestions included arbitrary hashtagslike and comment contests, and keyword bombs.

You get the idea. Someone surfed and scraped up a social media campaign. And who knows? Maybe some of their ideas would have worked a few years ago, given that their punch list read like 2009.

But I had to do something different. The tactics were summarily dismissed for something more strategic, given an impossibly short promotion window of just over two weeks. Along with adding an emphasis to organic offline promotions, the revised campaign delivered approximately 350,000 first round impressions and helped sell out the event. Everyone was happy, especially the sponsors.

None of it was that big of a deal, but it did make me think. Are social media novices that naive? 

Last week, social media fueled protests over Eric Garner, helped kids with with cancer find support from their peers, became a battleground against ISIS extremismcreated a firestorm about free speech, and proved that participants are culpable for what they say online in some countries. None of this is really new, but the cumulative tone marks a lead story maturity that hasn't always existed.

Social media has grown up. And while there will always be a place for silly cat photos and memorable hashtag moments, the balloon popping party your organization has planned for next month doesn't stand much of a chance to win over the top trending news story. To drive attendance, you have to do better than the top ten social gimmicks that most search engine queries will turn up.

Most organizations need to think locally before they ever take aim globally. After all, no one benefits from a global social media campaign that tries to sell out a local balloon pop party. To drive local or regional attendance, the campaign model would have to reach party prospects through various outreach efforts, which may include social but would never be limited to an online environment.

For many events and offerings, social media can be much more powerful as a secondary touch point after introductions are made via mail, email, word of mouth, direct contact, or co-op or partnership solicitations. As such, the campaign objectives can be effectively reverse engineered to worry less about exposure and focus more on reinforcing the value, momentum, and excitement of the event to those individuals who have already been exposed. And then, if the value proposition is proven, they will compound exposure by sharing their intentions to attend and/or all the assets that prove its value.

What kinds of assets help prove a value proposition? 

The trouble with far too many social media campaigns is that companies have been trained to click the boxes or go through the motions to garner results. Grown-up marketing adds value to the event.

• Articles and interviews about the guest speakers who will be present.
• Special demonstrations that highlight the skill sets of the presenters.
• Videos that provide an expose about the event venue or sponsors.
• Event pages where attendees can share their intent to participate.
• Twitter conversations with sponsors, speakers, and other attendees.
• New raffle and giveaway rollouts that add momentum to the offering.
• Sponsor highlights, especially if they can be integrated into the event.
• Event attendance updates that project an expected level of attendance.
• Special pre- and post-event opportunities, such as lunch with the speaker.
• The promise of live event updates and post-event recaps with pictures.

More importantly, all of these ideas provide organizations an opportunity to expand their online assets while creating a lasting legacy of successful event offerings or product launches. After all, nothing builds momentum for the next event like missed event regret — online or offline.

Wednesday, September 10

Form Follows Function In Everything. Why Not Marketing?

by Louis Sullivan
You can see it anywhere. In microbiology, the genomic organization of cellular differentiation demonstrates it (Steven Kosak/Mark Groundine). In anatomy, bones grow and remodel in response to forces placed upon it (Julius Wolff). In modern architecture, functionalism means the elimination of ornament so the building plainly expresses its purpose (Louis Sullivan). Form follows function.

The underlying emanation behind this philosophy is straightforward, whether designed by nature of mankind. Wolff noted that when loading on bones decrease, they become weaker because they are less metabolically costly to maintain. And Sullivan, who adapted this construct for architecture, looked for efficiency in material, space planning, and ornamentation as a core component of smart architecture.

Form follows function out of an inherent desire for efficiency. 

But that doesn't mean we always get it. Applications, social networks, and websites are largely designed in reverse. Developers, programmers, and marketers construct a form and then ask participants to function within it. And while some have their reasons, few consider efficiency.

Ergo, Facebook didn't launch sponsored posts to help improve the efficiency of receiving status updates of friends and family or organizations, but rather to stimulate ad revenue by creating an artificial model of supply and demand. Twitter doesn't limit tweets to 140 characters as an optimal communication model, but because it believes constraint inspires creativity. Google doesn't organize search to deliver the best information, but rather the fastest information based on 200 unique signals that range from your region to the freshness of your content.

Marketing TodayMarketing has adopted a similar approach. Rather than providing the right content on one network, they explode the same content across every network. Rather than producing valued content, they produce large quantities of low quality content to create pitch sheets. Rather than developing proactive public outreach, more campaigns are built on distraction, disruption, and slacktivism.

As a result, the continued explosion of digital marketing has led to unmanageable change with more marketers leaning on automation as a means to increase their production efficiency with little regard to function — such as organizational purpose or public need. Yes, the budgets are bigger but marketers will eventually have to consider efficiency to maximize budgets and protect themselves from consumer aversion. As they do, most will find pre-social media strategies put function first.

What does function-first marketing and communication look like?

There will always be novel exceptions, but function-first marketing reconsiders the intent of the organization and interests of its audience. Much like Sullivan in architecture, function first means optimizing a balance between aesthetics, economics, experience, and usability. It breaks away from ornamentation design for the sake of cleverness and more toward prioritizing fewer but more cohesive messages where they will have the most impact as opposed to the most reach.

Aesthetics. Creating a memorable brand goes well beyond good design and a recognizable identity. Brand aesthetics bring organizational purpose into the design, creating a second layer of communication that reinforces the organization mission, vision, and values.

• Economics. While everyone loves a big budget, they tend to be the most prone to misallocation. For example, a marketing director can all too easily invest in increasing production content from inferior sources, thereby wasting money on the presumption that it's cheap. Fewer well-proposed pieces from quality sources are likely to have a greater impact and be perceived as more valuable over time.

• Experience. As content marketing is treated more and more like a marketable product in and of itself, organizations looking for maximum impact with minimal means will consider the customer experience at every point of contact. Ergo, link bait headlines would never lead to disappointment.

• Usability. The era of non-functional marketing is nearing its end. Just as social media initially begged organizations to create valuable content, the next generation of communication solutions will be baked into many products in an effort to assist consumers as opposed to distract them.

The real question that marketers ought to be asking themselves is what is the purpose of their organization and the intent of their communication (aside from sales generation). And if those two questions cannot be addressed without any semblance of efficiency for both the organization and the consumer (such as unwieldy sales funnels, capture and call telemarketing, database spam), then it might be time to re-evaluate the budget for something better. Why? Form follows function.

The more often organizations waste their communication efforts, the more likely those actions will eventually have an impact on the form of the company. Always make sure the marketing and communication reflect where the organization is going because form will eventually follow function, for better or worse.

What some additional insights into the future content. See my guest writer contribution to The Future of Content series from Danny Brown. We're right on the edge of something fantastic. And while we didn't see it with the launch of the new Apple Watch today, I fully expect we will in the near future.

Wednesday, July 9

Separate Advertising And Pubic Relations At Your Own Peril

Advertising Or Public Relations? by Rich Becker
Every time someone attempts to divide advertising and public relations into two distant camps, it makes my skin crawl. They always make it sound like both fields have to be at odds with each other, with cliché conversation starters like advertising is paid and public relations is pray.

There doesn't have to be such a stark division. No one has to choose one over the other. After all, while it might be true that advertising and public relations have distinct world views, they essentially aim to fulfill a bigger organizational need — to meet organizational objectives through communication while reinforcing a brand that has (ideally) already proven its market differentiation.

It doesn't even matter what that product or service differentiation might be. It could be based on any number of tangible and intangible attributes — quality, price, availability, prestige, functional specifications, design aesthetics, corporate citizenship, and whatever else someone can think up or any combination of them provided there aren't too many to remember. One to three points is enough.

People don't see public relations or advertising. They see brands.

When people see an advertisement or article about Porsche, they don't categorize the communication into categories or departments. They only see stories that reinforce and expand on a single idea.

"In the beginning, I looked around and could not find the car I'd been dreaming of: a small, lightweight sports car that uses energy efficiently. So I decided to build one myself." — Ferry Porsche

To hear Porsche tell it, they have always strived to translate performance and speed — and success — in the most intelligent way possible. It was never about horsepower alone, but intelligent horsepower.

The medium doesn't matter. You will read the same story in every article or advertisement equally. This car is about a dream. And as each dream is realized, Porsche pushes the envelope even further.

PorscheIn being exposed to either the advertisement or the article, consumers don't score the credibility of one or the other because credibility is not created by the communication. Credibility is created by delivering on a brand promise. Advertising and public relations merely reinforce what is there.

And for Porsche, the principle they abide by isn't confined to ads and articles. They apply it everywhere — to customers who believe there is no substitute and to motor sports spectators who may never own a Porsche but are more than happy to share the dream conjured up in every piece of communication. It not only extends to their cars, but also to their corporate offices, environmental policy, employee responsibility, and long-term sustainability as well. You don't even have to like them to respect them.

More importantly, you have to appreciate that this kind of outcome doesn't come from advertising or public relations or word of mouth. It comes from a unified communication strategy, one that transcends the tactics chosen to deliver it.

So no, advertising or public relations isn't a valid conversation. What communication strategists need to ask is what is the organizational strategy and how do we best communicate it to those people to whom it will matter most with whatever budget is available. The answer to that question is as varied as the products, services, and markets served. Every communication budget mix is different.

Some professionals think it's all about persuasion. Stick with the truth.

The fundamental reason that no one questions a Porsche advertisement is that the brand has banked credibility. It is known for taking care of its customers. And in doing so, its relatively small customer base has worked with the company to create a public perception that extends beyond that base.

Sure, some people will mistakenly believe this is a phenomenon exclusive to luxury brands, but it really isn't. Walmart, McDonald's, Coca-Cola, Proctor & Gamble (various products) and Colgate (various products) all employ the same fundamental premise. Small marketers do too. The Abbey Inn in Cedar City, Utah, is one example. It's a 2-1/2 star hotel that consistently ranks as the number one place to stay in town.

There isn't big budget marketing behind it. It employs targeted advertising with some public relations support, with most media and social media exposure earned by exceeding expectations (including mine) rather than feeding journalist story pitches.

Abby Inn in Cedar City, Utah
Not all of the advertising is great, but it still succeeds in establishing a brand promise from a 2-1/2 star hotel (one that it can easily exceed with friendly service). In doing so, it achieves what other hotels — even big brands — cannot do. They has achieved and continues to have a market advantage along with repeat visitors and a strong referral base. And in some cases, it is this groundswell that earns it inclusion in other stories about the area — everything from the Utah Shakespeare Festival  to national parks like Zion and Bryce.

When considered as part of a comprehensive communication strategy — marketing, advertising, social media, public relations, customer service — organizations that can deliver the right concept with the right market differentiation across all of it win and those that can't struggle. And the only reason that more organizations don't employ such an approach is because most talk to one specialist or the other, with each attempting to maximize their budget rather than considering the overall mix.

It's something to think about. When was the last time your organization put the strategy ahead of the tactics? Considering what most professionals are measuring these days, I'd say not very many.

Wednesday, June 25

Having Engagement Problems? Make Your Audience The Content

It doesn't matter what study you look up. Marketers always struggle with the same measurements — engagement, lead generation, and sales. They aren't the only ones. Americans feel miffed too.

According to a recent Gallop poll, a clear majority of Americans say social media has no effect at all on their purchasing decisions. A whopping 62 percent say social has no influence over them.

Even when respondents were broken out by age, not much changed. Forty-eight percent of Millennials said that social media had no influence over them (43 percent said it had some).

Consumers are influenced by social media, but it has to be good.

The good news is that the consumer survey by Gallop doesn't prove much. Americans have said much the same about advertising for years. It's not a lie per se, but they are genuinely mistaken.

We don't always know which bits of information are from friends or pass through marketing messages. The same can be said for social and cultural shifts too. You would be surprised how many come from outside of the country before they are shared by Americans inside the country.

On the other hand, most marketers are still only marginally adept at social media because they tend to start out with the wrong intent. They are too "sales" focused, which generally produces a social media campaign akin to celebrating itself online. Nobody wants to visit a social page for push messages.

"How are you? Let's talk about me." It's true. Marketers don't use those words verbatim, but that is what most of the messages become. It's common for many social media experts to let you leave a page but not without pounding you to subscribe to an e-newsletter first. Never mind the risk associated with more studies that are veiled attempts for lead generation a.k.a. permission to spam lists.

The problem with all of it is pretty clear. If the intent is all about sales, then you can't expect the method to magically produce engagement. It's mostly the other way around. If the method produces engagement, then it is very likely the organization will experience incremental sales growth.

If you want better engagement, make your audience the content. 

This simple answer is only slightly deceiving in that the execution is complex. It's complex because every audience or public or group of people or whatever you call them have very different needs.

If you simply run from one organization to the next organization with a cookie cutter solution (or one stolen from a best practices SlideShare deck), people won't care about your content. The reason they won't care is because content creation that aims for engagement is not the same as content created for an editorial calendar. The content people want to read has to be about them, directly or indirectly.

What does that mean? Sometimes the answer can be exceptionally direct — a professional membership organization that focuses on its members and upcoming events (where members meet up) has a great opportunity to develop a vibrant community. Sometimes the answer is less direct — an organization that wants to establish itself on the cutting edge of an industry will seek out innovation (even if it is not their own). And sometimes the answer is in between — an event that brings together hundreds of authors and book enthusiasts makes it easier for the two to connect.

"How are you? Let's talk about you." It's the message that really matters. People mostly don't want to know about your organization, but they may want to know who attends your events. People mostly don't want to know about your program, but they may be fascinated by the advancements being made in the industry. People mostly don't want to know about your product, but they might want to know how to fix a problem or make their lives easier. If it happens to include your product, service or position, then it's win-win. Sales tend to be a by[product of doing everything else right.

In other words, maybe it's time to throw out your elevator speech and work on a deliverable instead. How can you better bring a concept, conversation, or community to your customers that they can actually be part of and care about? Good. Go do that. And once you do, never put it on autopilot.

What do you think? Isn't engagement what made the earliest forms of social media fly? People wanted to connect and the medium helped make it possible. The comments are yours.

Wednesday, June 11

Marketers Renew Their Interest In The Customer Experience

Content marketing might have a lion's share of the social conversation, but more and more marketers are starting to see customer experience (a.k.a. CX) as the single most exciting opportunity for business this year. According to one recent study conducted by Adobe, customer experience even edged out mobile by a narrow margin for the first time in recent years.

It only makes sense. Content marketing and mobile are both part of the customer experience, which includes all customer facing touch points (and I might argue internal facing touch points that can influence customer facing touch points). Ergo, the best lead generation on the planet is pointless if the only outcome is to target those leads with long-term loss leaders such as email spam or telemarketing.

"Every ad is an investment in the long-term image of the brand." — David Ogilvy 

Ogilvy had it right in that every advertisement, message, and touch point has a brand impact. It's only by mapping out the entire customer experience from the first touch point to post-experience that business owners and executives can begin to understand the relationship forged with customers.  

The customer experience concept goes beyond the sales funnel. A typical customer experience journey begins with a need, consideration, engagement, evaluation, purchase, receipt, usage, and post purchase. 

Need Awareness. The three most common types of need awareness are those that are externally generated (friends, influencers, or businesses pinpoint a known problem or unknown need), internally generated (an individual has a problem and is searching for a solution), or purposefully sought after (an individual who already knows what they need). All of them require a different approach. 

Solution Consideration. Once someone accepts there is need, brand loyalty tends to be the first consideration. People generally rely on brand familiarity and measured previous experiences before considering solutions from other companies with which they have had little or no experience. There are exceptions (such as price-motivated customers that never develop brand loyalty). 

Customer Engagement. As part of the decision-making process, customers will likely visit websites, social network pages, retail outlets, mobile apps, visit links, or engage in any number of other direct touch points. Always remember that even if the company is absent from the conversation (such as comments left on a review site), customers still consider the experience as a brand touch point. 

Customer Evaluation. Everything during the experience — from perceived need fulfillment and frontline staff to presentation and ease of purchase — may have an impact the brand relationship. This includes outside interruptions and messages intended to reach customers earlier in the sales cycle. In fact, this is one of the most neglected truths in marketing: the sales funnel is not linear.

Point Of Purchase. Even some of the best companies never consider how many negative impressions they introduce at the point of purchase. Anytime they include an additional charge (e.g., baggage claim), charge too much for shipping and handling, attempt to add on impulse offers or unneeded plus sales, make it difficult to claim a rebate, add unjustifiable financing terms, introduce post-purchase policies, etc., customers add it to the weight of their experience. 

Delivery/Installation. Many marketers consider the the point of purchase to be the end of the sales funnel, but the purchase is only the beginning of the customer experience. How something is shipped, the length of time required for delivery, the ease of installation, additional costs that were unintended or expected are generally attributed to either the manufacturer or retail outlet. 

Promise Delivery. If modern marketing has learned anything in the last century, it ought to be that the expectation marketing creates with a value proposition needs to be closely aligned with the ability to deliver on that promise. It's often the difference between the proposition and promise delivery that makes or breaks the company. 

Post-Purchase Satisfaction. Even after a purchase is made and the customer owns the product, post-purchase touch points have an impact. When companies send too many post-purchase incentives, any time the company is embroiled in controversy, or if the life cycle of the product or service fails to meet expectations (and sometime even if it does), post-purchase satisfaction remains ever-present.

Every touch point deserves consideration within a communication strategy. 

When you begin to think from the perspective of the customer's experience, things change. Retailers don't settle for a low price leader claim, they make lower prices part of the customer experience. Innovators do more than make a motorcycle helmet, they augment reality to make it safer and smarter. Shoe companies do more than tell you to just do it, they innovate the tools to help you get it done while considering the customer experience from introduction to the next innovation. 

At every stage of the customer experience, there is considerable room for communication. Marketers have an opportunity to express a need, help people find a solution, ensure the right message, make purchasing easy without being overbearing, create the first post-purchase touch point, reinforce the promise delivery, and continue to add value (not sales pressure) until the product or service life cycle is complete. 

Marketers desperately need to develop comprehensive plans that better address the customer experience with the convergence of next generation digital, engineering, and personalization. According to the same Adobe study that revealed CX is steadily gaining ground, nearly 75 percent of respondents recognized that marketing still doesn't have the skill sets needed fully realize tech.

While that may be true today, it won't be true tomorrow. The next round of communication convergence will come with an engineering edge — customer experience baked into the products we buy and the services we select. After all, isn't that the real reason companies like Uber and Lift disrupted the marketplace? Technology helped them change the customer experience.

Wednesday, November 20

Content Management Has It Backwards. Behavior Trumps Action.

screens or people
During an organizational meeting last week, I asked several colleagues what they thought the biggest trend in public relations, advertising, and marketing might be. Their answers were expected.

Someone said mobile. Another said big data. And yet another tossed in content management for good measure. As I wrote down their answers, I considered some of my own, everything from versatile display surfaces to 3-D printing — conversation threads that have become standard for my students.

All in all, we came up with a solid list of trends but none of them felt too important. Maybe it's because the answers all sounded too easy. Six months ago, any of them could have been viable topics. But nowadays, they provide a distraction as much as direction. Most answers are based on actions.

Sure, every now and again, a marketer touts transactions over actions, but transactions have a limited shelf life too. Everyone is trying to measure everything based on multiples of the one-time something.

Actions are all about one time and they cost a lot. 

The truth is that actions aren't moving anything forward. Transactions aren't much better. They're largely built around the same one-time sales cycle as if every prompt is a standalone metric — one piece of content times the number of impressions times a conversion percentage is a measurement.

That sounds great, but it's not efficient. And it isn't how anyone ought to be thinking as a marketer.

Instead of attempting to remind people to recycle every time they are about to toss a plastic bottle away, you want them to develop a long-term behavior so you don't have to be an ever-present reminder. Conversely, great campaigns results in long-term behavioral changes so people not only toss plastic bottles into recycling bins, but also actively seek them out by extending their threshold for convenience.

So maybe it's better to think less about systems of delivery (technology), single event triggers (response), and the minimum reach to generate an expressed conversion (reach) and think more about how you can change behavior so that your company is part of the equation much earlier in the decision making process. Some people might mistakenly assume I'm talking about brand loyalty alone, but the relationship is embedded before brand consideration, making loyalty an outcome.

The future of marketing isn't just technology. It's behavioral sciences. 

Why? Simply put, behavioral sciences investigate the decision processes and communication strategies within and between organisms in their environment. It's all about how people think.

It's what will help researchers pinpoint the root of why cardio fitness is in decline among kids, why Jeremy Grantham remains bullish on stocks, and why graduate schools are seeing a decline in enrollment. It's how one application maker solved the psychological uncertainty problem associated with waiting for taxis (hat tip Mark Harai), which is one of Ogilvy Group UK Vice Chairman Rory Sutherland's favorite examples of applied behavioral sciences. In this case, eliminating the uncertainty angst increased taxi usage.

taxi
Consider this single solution against existing marketing models. Day in and day out, marketers propose more content, more often, and sometimes at a discount as the end all to their formula. But in reality: talking to more about taxis to more people, even with a discount, would have no measurable impact beyond shifting a few fares away from a competitor. The application Hailo, on the other hand, removed one of the largest decision-making obstacles to book a cab, increasing overall demand.

The more you understand your clients and customers' decision-making processes at the deepest level possible, the less likely you need to trick them with interruptions, link bait, or empty promises. What marketers can help organizations deliver on is a better product or service though psychology.

Ergo, the shoe company that understands why children run around less, the investor who pays attention to consumer confidence, the master's program that removes enrollment barriers will outperform those that rely on creative advertising, piles of whitepapers, or tuition waivers.

How about you? When was the last time your company or your client's company invested in empirical evidence over industry trends? And if they never have, maybe this is the first "why" that needs to be answered. Why are companies investing in persuasion tactics for short-term results over sound communication that leads to long-term behavioral shifts that require minor reinforcements?

Wednesday, October 17

Sticking With Tactics: Do Marketers Know Strategy?

A recent study by Econsultancy tells the story. Marketers believe in content marketing. Ninety percent of those surveyed say that content marketing will become more important in the next 12 months.

It's not a surprise for anyone working in social media. But what is even more telling about the survey is something else. Only 38 percent have defined a content strategy. It's also likely most don't know how.

What happens when you work without a content strategy? 

The entire communication process becomes tactical, relying on the tips of the trade but never really reaching business objectives, campaign goals or even brand reinforcement. Remember Bud TV?

But perhaps even more disturbing, even those that are in the process of planning a strategy demonstrate thin objectives. The top three goals: increase engagement, increase site traffic, and raise brand awareness.

Seriously? While some of these might be considered outcomes, none of them are well-defined objectives on their. Rewritten, marketers might consider increasing brand loyalty, positioning themselves as source experts, or improving positive brand recall (e.g., not only increasing awareness but also ensuring people get it right and have a positive impression of it).

Even some of the lower scoring answers — improving SEO links, generating leads, influencing stakeholders — represent a tendency to focus on tasks that lead to something but seldom define what those tasks are likely to lead to. Ergo, marketers are becoming too reliant on "doing" something but many of them don't know to what end while others plug in "increase sales," which ought to be a given. (Businesses are in business to sell things, hopefully in such a way that they actually benefit people.)

Establishing objectives always starts with a situation analysis.

Many companies do not start their planning process with an understanding of organizational purpose (preferably one underserved in the market), their long-term achievable position in that market, or a handle on their most pressing issues within the company that are holding them back. If they did, it would likely change the fundamental nature of their organization and establish different objectives.

To give you an example, I worked with a company that developed an environmental solution for the construction industry to meet certain environmental protection regulations. They could have picked any path to do it, but the shortest path made the most sense — prove to the construction industry that they have the most cost-effective solution (lower cost and fewer fines) and prove to the environmental policy makers that they had the best available technology (in order to be recommended or even mandated).

The communication plan was built around this understanding because if the company could prove its value to general contractors and necessity to policy enforcers — everything else would fall into place. Sales would increase. Brand awareness would increase. Their reputation as innovators would increase.

There were many ways to accomplish this, including partnering with regulators, cooperating with environmental organizations (shifting them from aggressors to educators), and targeted educational communication to companies that would purchase their technology among them. I'm not going to list all the details today.

I mention it merely to illustrate the point. Without a strategy, they would be chasing likes, follows, SEO links, web traffic, and lead generation like many marketers. So the question becomes ... to what end?

This is why a communication strategy is the most important part of a campaign. If it isn't, then your company can waste money chasing the wrong numbers for very little results beyond a short-term spike. At the end of the day, especially in this economic climate, you most assuredly can't afford it.

Monday, September 24

Thinking Different: New Ideas For Solar

Sometimes watching the various communication gaffes and tit-for-tat soundbite stalking during campaign season is almost unnerving. It makes for a case study example of all the most basic public relations rules (e.g., there is no such thing as private communication) and sometimes entertainment, but it really doesn't move much forward. It's an exercise in attempting to drive up negatives. That's about it.

But what the nation really needs are solutions, and I don't mean some of the solutions that are typically presented as contrasts during the political season. I mean the kind of solutions that don't subscribe to red-blue ideas. Here's one example of what we ought to be hearing from a presidential candidate.

How to make alternative energy work without the nonsense. 

There have been many schemes cooked up around solar energy. The worst of them, probably, was Solyndra. It received at least $70 million from a Department of Energy loan guarantee without much of a business model, proving why government is best left out of corporate investments based on preferred policy and not profitability. Government could have created the market instead of the company.

What might have worked is a government program that gave distressed homeowners (and then later expanded to other homeowners) guaranteed loans to have solar panels installed on their homes. They could make the purchases from any U.S. owned and operated solar panel company, creating jobs fueled not by government directly but by consumer choices in the new market.

The loans would be paid back, plus a modest interest rate, from any excess energy sold back to power companies (not the already distressed homeowners). The immediate benefit for the homeowner would be a reduced power bill, thereby either increasing their disposable income or stretching any benefits from local, state and federal programs. The immediate benefit for the power company is that it can sell any excess back on the open market. And then it gets better.

Once the solar panels are paid off, the distressed homeowner could collect excess income from the power the solar panels generate. If they are on a federal program, half of the energy sold could be deducted from what they normally receive in government aid (giving them a modest boost and freeing up government program money) and move them closer to independence, not further away from it.

It would also reduce the environmental impact of solar farm schemes that aim to turn large parcels of land into solar wastelands (and displacing whatever ecosystem that exists there). Instead, it moves solar panels where they belong — on real estate already wasted (e.g., roofs). At the same time, the guaranteed increase in demand would eventually lead to cheaper solar panels, opening the market to people who can purchase them outright without having to wait 25-35 years to see a return on investment or seek government assistance.

This kind of program wouldn't necessarily work everywhere, but it would in Nevada and many other states with a similar climate. It would have been especially worthwhile to Nevada because the state doesn't currently export any significant energy (fossil or otherwise). Indirectly, however, it would benefit every state because this idea would lead to energy independence and possibly rein in volatile energy prices.

Diatribe is dangerous because it depresses new ideas. 

What does this have to do with communication? Everything. As long as people are polarized between moving toward alternative energy (without a clear understanding of it or its economics) and tapping traditional energy solutions, everybody is too busy trying to sell their plan without looking for new ideas. How can they? They are too busy selling whatever is on the table.

While I am certain that my little idea isn't perfect and would probably need some fine tuning (thousands of pages if it is a government job), it's an illustration of what might be possible if people invested their time in solutions rather than whose idea and ideology it might be or what they can get out it.

Instead of politics, it produces a win for every stakeholder, while stimulating the economy, protecting the environment, and nurturing energy independence. It helps people in need, opens a new market, lifts the economy, and brings in private enterprise (without looking like a payoff to past campaign donors). It is absolutely ridiculous these things need to be at odds. At least, I think so. What do you think?

Friday, May 25

Humanizing Business: Brand Research, Part 3 of 3

The Relational Capital Group (RCG) published some compelling brand research across seven different white papers in the April 2012 edition of the Journal of Consumer Psychology. As a continuation of our RCG research review, which began with Four Brand Dynamics Every Marketer Ought To Know and Three Critical Questions To Ask About Brand Relationships, the third abstract to focus on is the paper by Nicolas Keryn, Susan Fiske, and Chris Malone.

The abstract builds upon the Stereotype Content Model and tests several brands against the Intentional Agents Framework, which suggests consumers have relationships with brands much like they have with people. The study has the potential to change the way marketers think about brands and interactions with customers, consumers, and the general public.

People And How They Relate To Brands.

The concept that people relate to brands much in the same way they relate to people (and objects) has been around for more than a decade. The paper cites several studies, some dating back to 1998.

Although early research frequently refers to models of social perception developed in social psychology, we noticed that there is considerable crossover (not referenced in the paper) in the field of cognitive psychology. Simply put, cognitive psychology recognizes that people categorized people, places, things, qualities, etc. in groupings. This is an asset because it aids recall and association. It can also be a detriment because it provides the framework for stereotypes, incorrect or otherwise.

We can see this phenomenon in one of the examples provided by researchers. By asking people to assign warmth and competence to a variety of groups, they identify different groups as warmer or colder, more or less competent. For example, wealthy people might be seen as more competent but colder. The disabled as less competent and warmer. (Neither is necessarily true, I might add.)

Brands were categorized in much the same way. In the study, for example, Campbell's, Johnson & Johnson, and Coca-Cola all scored high in terms of warmth (intention) and competence (ability). Mercedes, Porsche and Rolex scored lower on warmth but high on ability. Veterans's Hospital, Public Transport and USPS scored high on warmth and low on ability. And AIG, BP and Goldman Sachs all scored low on competence and low on ability. (The paper includes 16 brands.)

It was mostly these brand clusters that suggested the combination of warmth (intentions) and competence (ability) was formed. These were also paired against another framework model, which showed how brands elicited feelings of pity, admiration, envy, and contempt.

Expectedly, the study found that well-intentioned brands received much higher warmth ratings. Unexpectedly, high ability brands also received slightly higher ratings, suggesting that brands with high  ability (those that do what they say they will do) have an advantage. However, that doesn't necessarily mean that marketers ought to strive for warmth and competence.

Although the researchers did not identity the correlation, the difference between brands scoring higher or lower on warmth is frequently tied to accessibility and frequency of contact as much as good intentions. Even brands that have earned public contempt are further hampered by their distance from the consumer, with many of their products being passed through to the consumer by another party.

What Does This Mean For Marketers And Brands?

While it only scrapes the surface, tempering the findings of this paper with the article presented by Jennifer Aaker, Emily Harbinsky, and Kathleen Vohs could be critical in any decision making. They argue that while warmth and competence is an ideal pursuit for many brands, they also found that competency is more important than warmth in spurring consumers to purchase.

One may also surmise that brands that do not naturally fit into a persona of warmth could undermine their own competence if they try too hard to exhibit that quality. In fact, the Aaker, Harbinsky, Vohs paper notes that brands that are overtly warm (like nonprofits) can unintentionally reduce the perception that they are competent. They also note that other brands, those that earn too much admiration, begin to express another emotion that wasn't necessity tested for in the original studies. That emotion is awe.

What this means for marketers and advertisers from our perspective is how important it is to tie the four brand dynamics and marketing messages to the observed mission, vision, and value statements. By observed, I mean mission, vision, and values that are actually being applied in every facet of operation (not those that collect dust in old annual reports).

It also suggests how companies ought to prioritize their overall operational objectives to how they want to position the company in the marketplace (as well as the appropriateness of that position), with an emphasis on competence (high quality products and services). And, although the researchers did not include for it, unless the company is trying to be disruptive in a space, degrees of warmth and competence can also be tied to the overall feelings people have toward an industry, the accessibility of the brand, and the frequency in which people come into contact with it.

To learn more about the papers and abstracts released to the study by RCG, visit their page dedicated to the research. The company specializes in the principles, process and science of lasting, mutually-beneficial business relationships. This study is groundbreaking in its ability to tie scientific data to long-standing theories within the fields of advertising, communication, and marketing.

Wednesday, May 23

Humanizing Business: Brand Research, Part 2 of 3

The Relational Capital Group (RCG) published some compelling brand research across seven different white papers in the April 2012 edition of the Journal of Consumer Psychology. As a continuation of our RCG research review, which began with Four Brand Dynamics Every Marketer Ought To Know, we look to the extension published by Deborah MacInnis.

While the original research concludes that consumers judge and interact with brands in much the same way they do with other people and social groups, it also suggests that brands which exhibit warmth and competence have an easier time establishing trust and long-term loyalty. MacInnis questions that conclusion, recognizing that relationships to people and objects are much more complex than that.

In fact, she suggests that warmth and competence are not necessarily traits for brands to exhibit as much as they might be outcomes related to the people involved in the relationship. In other words, when consumers trust a brand, they may judge the brand to be competent (trusted to do the job) and warm (trusted to have my best interest at heart) whether the brand exhibits those traits or not.

Three Critical Questions To Ask About Brand Relationships.

How Impacting Are Relationship Types? MacInnis suggests that if consumers do develop relationships with brands like they do with people, then the varied degrees of relationships might apply. For example, some brands might secure a committed partnership (best friends) while others might be emotionally intense but short lived, like a fling.

If this is true, marketers might consider the true psychological weight of social media, which tends to create more intense but superficial relationships en masse than committed relationships. In fact, many online connections are causal in that people who are already committed to brands seek out online relationships with those brands. They also require significant affirmation that the brand can live up to the relationship that they have come to expect offline.

Are There Consequences In Relationships? In practical terms, communication professionals generally believe that brands which are more trusted, competent, and warm are more likely to survive a crisis than brands that are perceived as cold or less competent. But MacInnis suggests that this might not be the case. She surmises that  the more committed a consumer is to a brand, the greater the impact any infraction might cause.

This idea correlates well with our Fragile Brand Theory, which suggests that the further brand perception drifts from brand reality, the greater the eventual crash. Where warmth and competence might help facilitate forgiveness are likely confined to one-time innocent mistakes. BP provides an excellent case study in this area, given the company had established a trusted position as leading the way in green energy, which one careless accident quickly undermined and angered people.

Does Everyone Become Attached The Same Way? There has been other research conducted on how people interact with and attach to objects that might be relevant here. From those studies, researchers have noted that there are additional relationship influencers, such as the degree of relationship anxiety people have or the degree of relationship avoidance they may have.

In such cases, some might require reassurance of the relationship status while others might avoid such attachment all together. The reason this is significant is that it demonstrates how warmth and competence might appeal more heavily toward one personality type than another. "Specifically, whereas brand warmth may be critical to individuals whose attachment styles are characterized by high anxiety, it may actually be a relationship deterrent to those whose attachment styles are characterized by high avoidance," MacInnis wrote.

The takeaway here for marketers is that even if evidence suggests that brand relationships occur much like individual or group relationships, it doesn't mean that marketing will be even easier. If anything, the conscientious marketer will recognize that brand relationships are as challenging to maintain as any relationship.

From our perspective, the relationship does not always occur by a brand's ability to exhibit certain admirable traits, but rather its ability to do what it says it is going to do. Ergo, one would assume that if warmth and competence are always the advantage, then an airline like Spirit Airlines could not exist. Instead, what we learn is that Spirit Airlines sets an exceptionally cold expectation (in potentially charging people for bathroom usage) but consumers accept it because the company is up front about it.

To learn more about the papers and abstracts released to the study by RCG, visit their page dedicated to the research. The company specializes in the principles, process and science of lasting, mutually-beneficial business relationships. This study is groundbreaking in its ability to tie scientific data to long-standing theories within the fields of advertising, communication, and marketing.

Monday, May 21

Humanizing Business: Brand Research, Part 1 of 3

The Relational Capital Group (RCG) published some compelling brand research across seven different white papers in the April 2012 edition of the Journal of Consumer Psychology. It was conducted in collaboration with social psychologists at Princeton University and University of Louvain.

The overall conclusion suggests evidence that consumers judge and interact with brands in much the same way they do with other people and social groups. As a result, brands that exhibit warmth and competence have a greater ability to establish trustworthiness and long-term loyalty.

"It turns out that recent efforts by brands and companies to digitize, automate and outsource their interactions with consumers are fundamentally at odds with the way humans perceive, judge and build loyalty to brands," said Chris Malone, co-author of the lead research paper and chief advisory officer of the Relational Capital Group. "As a result, consumers are more cynical, distrustful and disloyal toward large brands and companies than ever before." 

After studying the seven interrelated abstracts, I thought it might be useful to explore and highlight several of them this week in three parts, with the first abstract highlighted [Journal of Consumer Psychology 22 (2012), 186-190] written by Kevin Lane Keller, professor of marketing, Tuck School of Business, Dartmouth College. From the Keller abstract, marketers can extract four brand dynamics.

Four Brand Dynamics Every Marketer Ought To Know.

Brand Knowledge. It is broadly defined as all the attributes, benefits, images, thoughts, feelings, attitudes, and experiences that become associated with a brand or, in other words, represents the collective exposure someone might have to a brand. As my firm has said before, it can be generally defined as the net sum of all positive and negative experiences as they are tied to brand equity.

Brand Functionality. One of the standout observations in Keller's paper notes that while some brands attempt to appeal to consumers by focusing on image, the most successful brands tend to first ensure that their products and services are made, sold, advertised, and discussed in a way that profoundly affects consumers in the head and the heart. It underpins what I call the Fragile Brand Theory in that everything begins with the product or service and not the "image."

Brand Credibility. Most brand credibility is established not by what brand says, but what it does (and what it says about what it has done). It is best established by their ability to provide products and services that fully satisfy customer needs (which is sometimes offset by the expectations they make); their ability to be honest, dependable, and sensitive to those needs; and their ability to be likable (fun, interesting, dynamic, or any other personality descriptor). For most brands, establishing credibility seems to be much easier than maintaining it.

Brand Resonance. Keller introduces the concept as it refers to the nature of the consumer–brand relationship and, more specifically, the extent to which a person feels that he or she resonates or connects with a brand and feels “in sync” with it. It conjures the words of Phil Dusenberry, former chair of BBDO Worldwide, who seemed to know this instinctively.

The Impact Of Duplicity Between Functionality And Resonance.

One of the most pressing challenges for marketers is operating within the confines of communication that makes sense for the individual brand. Ideally, as outlined above, the most successful brands develop specific products or services that meet customer expectations, and then communicate that functionality in such a way that it connects with select customers.

Instead, where some brands struggle is in their attempt to alter communication with the hope of reflecting a personality or image that appeals to the public (or segmented market) even if those qualities they communicate do not exist. Within social media, others adopt "popular personas" that appear to be successful on specific social networks, even if that image does not reflect their functionality of the brand.

As an illustration, imagine a mediocre technology company attempting to talk its way into being on the cutting edge of its field. While the "talk" might attract attention, it could also set expectations too high for a company more suited to push affordability. Another example might be how many companies attempt to create likability by being fun on a social network like Twitter, but then staffing their brick and motor locations with drones who would rather be somewhere else.

Unfortunately, such tactics tend to create the perception of duplicity between the brand functionality and its resonance, much like Malone pointed out. As a result, the brand continually loses credibility until it eventually collapses. Conversely, marketers that are able to address both their strengths and shortcomings in an authentic way that makes sense for their products, services, and culture stand to have an easier time connecting with consumers and establishing brand loyalty.

To learn more about the papers and abstracts released to the study by RCG, visit their page dedicated to the research. The company specializes in the principles, process and science of lasting, mutually-beneficial business relationships. This study is groundbreaking in its ability to tie scientific data to long-standing theories within the fields of advertising, communication, and marketing.
 

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