Thursday, June 17

Renting White Guys: The Art Of Deception


“Bring a computer," said Ken, a young Canadian of Taiwanese extraction, told Mitch Moxley. "You can watch movies all day.”

At least, that is how Ken described the quality control expert job to Moxley. In reality, the job was to serve as a "stand in" executive to create the illusion of a bigger international American company. The only skill set required was to look good in a suit and shake a few hands.

As good as the "Rent a White Guy" story is, the comments are amusing too. Some attribute it to the predisposed notion that all Chinese businesses are shady. Others, bemused, ask where they can apply. Most never consider that the phenomenon isn't exclusive to China.

"We didn't get the account," one agency principal recently told me. "We won the pitch, but a small majority of the decision makers wanted a bigger agency."

Never mind that the agency awarded the account had inflated the numbers, counting entire vendor companies as part of its staff. And never mind that once the agency was awarded what it considered a very small account, it fully intended to assign it to a team consisting of one junior executive and possibly an intern to do the bulk of the work. All that seemed to matter to a simple majority of decision makers was that the company they chose had a staff of 80 people.

It happens all the time in this market and others too. It's not uncommon for agencies and public relations firms vying to look bigger than everyone else on a ranking list to start counting second cousins as part of the team. Others submit their firms to both ad agency and public relations firm lists, even when the they might only staff two people on the public relations side of their full-service agency. They still come up on top.

Go ahead. Count the cleaning staff. They work for the firm too. Numbers are important. Location is too.

When we subleased offices on the 14th floor of the Bank of America building in downtown Las Vegas (which was extremely prestigious at the time), I was always surprised by the number of companies that "rented" the address but not the space. Most would show up just now and again. And the front desk would put on a good show, as if these hourly tenants came in daily.

After awhile, however, nothing much surprised me. I've met with financial advisors who named their company after the building they subleased to create the illusion they owned it. I know several "board members" that do nothing more than lend their picture for the lobby wall. And several years ago, I used to have six different sets of business cards for a few clients who were uncomfortable with introducing me as a subconsultant. (I wasn't rented in name only, mind you. I did the work.)

Our rules were always simple enough. Agency clients could call me and my team members who directly worked on an account anything they wanted. They could even add us to proposals, assuming it was an account we'd work on. They could print business cards. And, in one case, a publication I worked for set up an in-house voice mail.

There were limits, however. They couldn't count us as staff. We certainly wouldn't lie. And if a client ever asked, we'd make it clear what our relationship was with the firm. We worked with them, but not for them.

There are several others who don't have limits. We know a few of them. There are even some politicians who play the game. They may as well place "in name only" on their business cards. The extent of their relationships with some companies is merely meant to lend an illusion of credibility and connections to a firm, bank, or hospital. In exchange, they receive a retainer. (Please keep in mind, we also know many who are very active in the businesses they work for.)

Of course, all of this works the other way too. I've pitched entire organizational boards despite the decision resting solely on the discretion of the executive director. I've been introduced to "business advisors" who only appear at the first meeting. And I have learned, on more than one occasion, that some "managing partners" are only partners with themselves.

None of it really matters, but some people like to pretend.

Since mid 1990s, I became too visible for agencies to introduce me as anything but a consultant or an extension of their teams. (Google will do that.) So it doesn't come up anymore. It hasn't for a long time. I only have one business card (but am sometimes asked not to hand it out).

Instead, I have found a different role for the friends we work with. When they lose an account because of another firm's fictitious numbers, I casually remind them that the account wasn't worth winning. The potential client obviously has deficient decision making skills.

I learned this years ago too. It stuck with me after spending a few hours with a sitting judge who was considering a run for a more perceptually prestigious elected position. I learned it when he walked me out to my car.

At first, I thought he walked me out because we had really hit it off. He told me that wasn't the case. He walked me out because the entire basis of which firm he would hire was based on transportation.

"If you drove a Porsche, I'd know you overcharge," he explained, looking over the red Volkswagen that I drove at the time. "And if you drove a Yugo, you must not be very good. This is a nice, well-kept practical car. I like it."

"Oh," I said. "I could have saved you the trouble of walking out. I decline consideration."

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Wednesday, June 16

Seizing Leadership: Jamie Hinton Is A Patriot


Although President Obama addressed the nation about the oil spill last night, he neglected to mention one local hero who deserves more attention as a role model for other Gulf Coast community leaders. Jamie Hinton, chief of the Magnolia Springs Volunteer Fire Department, took matters into his own hands to protect his idyllic community off Mobile Bay.

He deployed a combination of barges and oil-blocking booms to keep crude out of the Magnolia River. The Associated Press reported that his solution, which came from the collective ideas of locals hoping to safeguard the Magnolia River and the nearby Fish River, to do something despite being told not to.

"It's illegal to block this waterway. But if the oil comes, we're going to bring a barge in and use it as a gate to block it," said Gib Hixon, friend of Hinton and chief of Fish River/Marlow Fire and Rescue. "They can arrest me and Jamie if they want to."

Unlike many communities on the Gulf Coast, Hinton decided it was his responsibility to do something despite being blocked by red tape and what the Associated Press described as bumbling government and corporate executives. According to the story, Hinton was initially told by county officials that the oil spill was being blown out of proportion. Much of the delay to finally approve the community's plan once it became clear the oil spill was not blown out of proportion, is attributed to a breakdown of who could approve measures to safeguard Magnolia Springs.

"First, the cleanup," said President Obama last night. "From the very beginning of this crisis, the federal government has been in charge of the largest environmental cleanup effort in our nation’s history..."

This single quote from Obama's speech explains the reality and gravity of the situation. It explains why the government attempted to prevent people like Hinton from taking action. It explains why the Norway's offer of eight skimming systems was disapproved. It explains why the Dutch offer of three sets of COSEQ sweeping arms was denied. And Canada's offer of 3,000 meters of containment boom was passed upon too.

In sum, other governments were prepared to respond to this crisis faster than BP and the Obama administration. Why didn't they? Unlike previous administrations, which granted waivers for the Jones Act in the wake of a national crisis, this administration has held fast to the act, which requires vessels working in U.S. waters be built in the U.S. and be crewed by U.S. workers. Meanwhile, other early efforts to clean up the spill were discouraged by environmental policies.

If the oil spill is a "siege," it seems it is a siege of the administration's own making. Fortunately, there are a few communities like Magnolia Springs that have stepped up against the siege to protect themselves while the White House attempts to manage a spill of a different kind. Spin is not enough. We need more Americans like Jamie Hinton. They tend to talk less and then step up.

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Tuesday, June 15

Rebranding: Inside Out Or Outside In?


“Brand is the relationship between a product and its customer.” — Phil Dusenberry, former chairman and chief creative of BBDO Worldwide

I cannot seem to share this quote enough. Advertisers, marketers, public relations pros, and social media gurus are continually trying to change the way we define branding. In the process, sometimes they abandon one of the most basic branding principles.

Inside Out As The Key To Rebranding?

Jay Ehret, chief marketer at The Marketing Spot, seems to understand this. A few days ago, he likened most rebranding efforts to an attempt to put a new dress on the same tired body. He's right. When most people rebrand, all they change is their spots.

Instead, Ehret suggests that rebranding can only take place through actions. He cites a post by Jason Miletsky, at Mango! as inspiration. Miletsky makes it pretty clear that the change hinges on product offerings and customer relationships, which are conveyed by the new identity and message.

Their ability to deliver on those core values, translated into actions, will dictate the success or failure of the new brand. Actions, more than anything else, are the fundamental determinant in establishing the relationship between a product and its customer. Everything else is merely the symbol of that relationship.

As an analogy, you might say that a caterpillar has emerged as a butterfly and now its actions — fluttering about — will be instrumental in how people relate to it. The wings, colors, etc. only serve to remind us of what it is.

Outside In As The Key To Rebranding?

Interestingly enough, Brian Solis, principal of FutureWorks, shared his take on rebranding a few days later. He shares an edited passage from his book, Engage, which presents a brand reflection cycle.

When Solis talks about the brand, online, he suggests it can be shaped by developing persona through introspection. In other words, you pick important attributes you want and they, in turn, shape your company. The model even conveys the point by nestling the brand within core values, which Solis says are dictated by the audience, environment, and circumstances.

This is a remarkably dangerous approach. It has caused the failure of more rebranding efforts than I can count. Not all of the thinking is wrong, per se, but the application imagines that a company can be whatever it wants to be by the force of will alone.

Unfortunately, persona through introspection teaches a caterpillar to act like a butterfly, even though it is just a caterpillar. Even if you attach fake wings to fool some people, it will not fly.

Rebranding Starts With The Core.

There is no other way to explain it. Core values that exist within a company set the foundation for branding. While you can better communicate what those values are or establish what those values will be, they are what they are.

A caterpillar is a caterpillar. A butterfly is a butterfly. Neither can pretend to be the other because it's not in their nature.

You can see it in the Gulf Coast playing out daily. A few years ago, BP reinvented its identity to be green, following a process not unlike the one Soils prescribes. For the most part, people believed it until its true nature — dictated by recent actions — uncovered the ruse that the green logo represented. The company might have wanted to be the alternative energy butterfly (and maybe one day it will be), but all it really is may be just a petroleum addicted caterpillar munching its way through natural resources.

Actions, not image, dictates brand relationships. If you are not willing to change those (or are unable to do so), you are certainly better off being whatever it is you are. Your core values — which do not change because of the audience, environment, and circumstances — are who you are or what your company is. How you communicate that makes all the difference.

If you want to understand why the core message belongs dead center, review my presentation Simplifying Messages: Why SWOT Is Not Enough. The takeaway couldn't be simpler.

If you are a caterpillar, it's best to put your energy into being the best caterpillar you can be. And with the right message, people might even prefer you over a butterfly.

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Monday, June 14

Advertising Mistake: Why Visibility And Engagement Still Fail


Most advertising professionals know that targeting audiences works. And most know that highly visible ads attract attention.

However, new findings from a joint study conducted by the professors at the University of Toronto and MIT's Sloan School of Business suggest that pairing highly visible advertisements and content-linked ads can reduce purchase intentions. The study will be published in a future issue of Marketing Science.

"If targeting works and visible ads work, you'd think visible, targeted ads would work even better," said Avi Goldfarb, an associate professor of marketing at the Rotman School of Management at the University of Toronto. "But they don't."

Goldfarb, together with Catherine Tucker, drew their conclusions after analyzing data from 3,000 Web advertising campaigns.

Why Does Ad Effectiveness Diminish?

Goldfarb and Tucker attribute it to mistrust. The more aware consumers are that the advertisement is attempting to "sell" them something, the more likely they are to mistrust the content and the ad. Their conclusions may even indicate why Google Adsense tends to outperform affiliate programs and "paid posts" supplemented by advertisements.

According to the study, the highest drop off in consumer interest occurs when companies ask consumers to fill in information prior to making a purchase or subscribing to an online newsletter. Ironically, such lead generation tactics are commonplace in the industry, with most businesses unaware they could be turning customers away. There are other important findings:

• Most banner ads only increase purchase intent by less than one percent.
• Increased ad exposure only increases recall by approximately 5 percent.
• More campaigns aim at increasing recall than attempting to increase purchase intent.

Other findings are are available from the study. One that is particularly interesting for social media professionals is that two-way communication is sometimes seen as obtrusiveness.

Making Tactical Decisions Strategic.

Assuming this analysis proves valid, advertisers would be best served to rethink how they approach online advertising, especially as it relates to how consumers behave. Generally, contextually-targeted advertisements capture an immediate response (clicks) whereas highly visible ads (including the solicitation of two-way communication) capture higher recall (awareness but not necessarily equal clicks).

Since pairing the two tactical considerations diminishes effectiveness, advertisers may be better off establishing presence around contextual ads and increasingly the visibility of ads when there is no match. Contrary to most social media tactics, there might be enough evidence to suggest while customers prefer two-way communication and customers may be willing to fill out an online survey, prospects may not want two-way communication and are less willing to purchase products when the marketer also wants to capture demographic information prior to the purchase.

All of this suggests a greater need for strategic planning associated with online advertising campaigns. Marketers have to do a better job prioritizing the the intent of the communication.

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Sunday, June 13

Making Business Choices: Fresh Content


While most fresh content picks listed today could fit under the banner of social media, they also provide a common sense approach to something beyond the online trappings of the Internet. They're all related to the choices companies make and how they impact customer relationships.

Do you want a quick transaction or lifelong customer? Is social media as simple as talking to people or does it only look easy? Are you willing to sacrifice short-term expectations in order to deliver long-term value? Did you ever consider too many eyeballs at the wrong time might hurt your company? Here are four posts with answers.

Best Fresh Content In Review, Week of May 31

Build A Customer Community, Gain Loyalty.
Valeria Maltoni shares her insights on flipping the funnel and building a sense of customer community. Just a few points include: rewarding customers with exclusive benefits, providing access and knowledge before anyone else, supporting issues that will help them improve their business, opportunities to share and discuss ideas without you, multiple touch points beyond short-term transactions, etc.

7 Common Social Media Marketing Problems and Their Solutions.
Lee Odden not only nails seven social media problems, but also offers some solutions to help fix them. He's right. Many companies struggle with social media because they tend to "try" to follow in the footsteps of everyone else while missing the finer details that help make it work. He provides some worthwhile solutions, while sharing some additional sources to back up his solutions. Best of all, Odden frames up one very simple truth about social media. If it looks effortless, it's only because it isn't.

Why I'm Writing This On An iPad.
Dave Fleet does something only a few bloggers do now and again. He wrote a post why he was wrong, and did it on the product he was wrong about. It seems certain the iPad lacks a few technologies at a glance. But when weighed against the strengths, some those deficiencies evaporate. However, that isn't why it ended up as a fresh pick. While not billed as such, this post is a great case study in the process of how skeptics become fans.

Exposure and Visibility.
Do you think eyeballs are the end all answer to social media? Think again. Pitching to as many people as possible might help a company earn a small percentage of sales, but what is lost in the process isn't measurable. When ten thousand prospects push the button on a pitch only to find no real value exists, then you might have lost them forever. Valeria Maltoni helps put this thinking into perspective while inspiring a post we'll be working on this week.

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Friday, June 11

Considering Intentions: You Can't See Into Another Person's Heart


"Is it because I'm black?"

"Pardon me?"

"You're looking at me funny. Is it because I'm black?"

That was part of an exchange I had at a retail outlet the other day. It really took me by surprise. It's been some time since someone accused me of being racist, given that some of my best friends are black and how I long I'd been an NAACP member.

So, I had to tell the clerk the truth. I was looking at him funny because his breath stunk so bad it burned my eyes. He was pretty embarrassed. I told him to never mind being embarrassed, while wondering why his coworkers were waiting for some random customer to help the guy out.

It's one of the lessons I include in my classes to underscore how it's better to be up front with coworkers. But there is another lesson I wish more people would learn too. How we process information often has much more to do about our own insecurities (if we have them) then anything someone doesn't mean to communicate.

Communication isn't always about you.

It was one of the first lessons I learned about public speaking. While all speakers love the idea of students and audience members leaning forward and hanging on our every word, it's mostly a fantasy. And it has nothing to do with the speaker.

You can't guess intentions. At a conference, some attendees are going to stay out too late the night before. Some might have personal or work-related issues distracting them. Some might be covering your talk on Twitter. And maybe a couple of folks really will be bored.

Who knows? It doesn't matter. Unless, of course, the entire class checks out. It won't be narcissism in that case.

A caution about over-sensitizing issues.

I recall reading a news story a few years ago where the reporter was offended because his coworker invited him over for a barbecue and enthusiastically mentioned there would be fried chicken. The reporter was offended, asking the coworker what made him think he liked fried chicken. The remainder of the story was about subconscious racism.

I couldn't find the article, but I did find an interesting forum discussion about something similar. The discussion may have followed the KFC advertisement that was banned. Some Australians were confused by the banning of the commercial. They were unfamiliar with the stereotype.

The communication challenge that I find interesting, assuming the reporter's coworker had no ill intent, is that the coworker might have enthusiastically mentioned fried chicken to white colleagues too. Suppose he did. Still racist? Or, what if he mentioned it to everyone except the black reporter for fear of offending him. Still racist?

It gets very convoluted. So much so that it seems to me that over-sensitizing issues may inadvertently reinforce them.

It seems to be turning out that way in Arizona. Even officers who would never employ racial profiling have reported that Hispanics have changed their behavior. They say many Hispanics are more elusive around officers because they (the officers) are predisposed to racial profiling. And yet, one has to wonder. Isn't assuming a black or caucasian officer will employ racial profiling racist as well? Given racism stems from fear, maybe so.

One thing is certain. Even if I don't think most of America is racist, it certainly is obsessed by racism. The media knows all too well. Racism headlines attract eyeballs. It's sad, especially for CNN.

The "anger" thing has nothing to do with being black. In 2006, Ken Mehlman, then Republican National Committee chair, said that "I don't think the American people, if you look historically, elect angry candidates." He was referring to Hillary Clinton. Remember Howard Dean? Joe Wilson?? Hmmm ... there may be some truth to that.

To date, I've only found one easy self-test to tell if you're prone toward discrimination. If someone close to you (son, daughter, brother, sister) started dating someone with a different racial origin or religious background, would it bother you? If the answer is yes, you have some work to do.

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