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Category Archives: Marketing
September 7, 2011Posted by on
A coworker and friend of mine, @drewhawkins, tweeted out a link to an article on why freakonomics trumps logic when it comes to marketing. For those of you unfamiliar with that term, freakonomics is essentially the law of unintended consequences. A broad definition, sure, but when applied to business it makes a lot of sense. A hypothetical example would be something like a high national crime rate being the result of McDonald’s releasing a new McFlurry flavor. Two seemingly unrelated things now have a relationship.
In short, the article linked above talks about how businesses that take the logical approach, like adding additional menu items (Burger King), to grow business actually end up diluting the market and result in a decrease in business. An illogical result, unless you use experiential logic to understand it.
What do I mean by experiential logic? It is a term that may very well exist and have a meaning but I’ve made up my own meaning for it right now. What I mean by experiential logic is: apply your own experiences to expectations instead of what typical practices call for. For a personal example…
When I have had a lot of work to do, and I mean A LOT, I get overwhelmed and try to finish everything at the same time. When I do this only two things can occur: 1) I will pull everything together very quickly, but not do as well as I could have on any single thing, or 2) I will jump around and finish nothing on time. So what’s the solution? Pick one thing. ONE. Get that done, and make it good. Then go on to the next thing and do that with the same quality. And so on.
Now let’s back up and apply this to real businesses. The Burger King example from the AdAge article continued on and compared BK to Five Guys. BK tries to experiment with a ton of new menu items and their business decreases. Five Guys sticks to the nuts and bolts: burgers and fries, with some extras like grilled cheese and hot dogs. They don’t try to serve smoothies and salads. Five Guys’ business increases in the same time frame.
The second of two points I brought up in this post is something I’ve observed for a while now, and the AdAge article gives yet another point of view in support of it. If you try to make everyone happy, it’s going to hurt you in the long run. Let’s change that a bit for this example: Less is more. Yes, in this case that cliche works perfectly. Five Guys is a burger joint. And it embraces that. They aren’t adding menu items to feed people who want smoothies and salads. They are going to serve a small number of items, but makes sure those items are of a very high quality. And it helps them succeed.
Focus is what it comes down to. There is a limit to what you can focus on without it decreasing the quality of your work (or product, or business). Stick within your limits and you will succeed. The chances of failure doing what you do well (Burger King making burgers, for example) are slim. The chances of failure doing what you’ve never done to appease others (Burger King making…smoothies) are much higher. Become #1 in one thing before trying to be #1 in everything. Otherwise, you’ll never get there.
August 23, 2011Posted by on
Just a month ago a campaign was introduced for the California Milk Processor Board that focused on milk reducing out with the symptoms of PMS. Nothing wrong with that right? WRONG. In order to provide the necessary humor that’s needed (or at least helpful) in getting something to go viral, the agency Goodby, Silverstein & Partners decided to make men the “target” of the campaign. One thing that I’ve learned in life is that you never, EVER joke about PMS and what causes it, etc….when there are women around. However, this campaign is funny. I find it a stretch in terms of how it will help boost milk sales since there is no man in the history of ever that would go to his wife, girlfriend, mistress, or friend-that-is-a-girl with a carton of milk saying “Hey babe, I know you’re PMS-ing so drink this…it will help you, and everyone around you, get through the next few days alive. Naturally, women flipped and the reaction was strong enough that the campaign had to be pulled.
While I understand the reasons for pulling the campaign, this blog post by my father illustrates a great point that got me thinking: “You have to be evocative to be viral.” This is true in many cases. But what it got me thinking about is that it is next to impossible to be evocative in today’s world without having to pull down whatever it is you’re being evocative with. And herein lies my biggest issue. Well, two biggest issues.
1) Social media is great for creating conversation, but is easily exploited by people wanting to make an issue bigger than it is. Case in point: Nivea recently was forced to pull their “Re-civilized” advertisement because people viewed them as racist and offensive. This became a big deal. I can obviously see where people might get offended by this advertisement, but only because it’s easy to know how those people think. They will see a black man, then the word ‘re-civilize’, and see the unshaven head with the afro and immediately start an uproar. What they have to understand is that when they are crying racism because it’s a black man (they wouldn’t have made a sound if the exact same ad feature a white man) they are the ones distinguishing race here and making it a racial situation. I will go out on a limb here and say that there are African Americans working at Nivea, and that, if they had a problem with this they would have mentioned something. These advertisements go through an approval process that is pretty intense and the legal issues are examined…racism is definitely considered. I try to understand people who think that it’s racist, but I personally don’t think it is at all. When I look at it I see a man throwing out the unclean version of himself and choosing to be well groomed. That may be offensive to the un-groomed types, but I don’t see this as a black man throwing that version of himself out. That is my opinion. I see no racial issues here until people bring them up themselves.
This shouldn’t be a big deal. Nivea responded very well to the issue and pulled the ad and placed a prompt response thanking their customers for being concerned and giving them feedback. Great move on their part. But it was a move they wouldn’t have to make if it wasn’t for people making a huge deal out of something that should never have been a big deal to begin with. Social media allows people who otherwise wouldn’t have a voice to voice their opinions, and it leads to a lot of wasted effort and extra money/time/stress that definitely isn’t needed.
2) If you try to make everyone happy, you will end up pissing them all off. There are too many beliefs, opinions, and idiots out there that it is impossible to make everyone happy at one time. The two campaigns I’ve described above are examples of things that may be slightly offensive to some, but won’t be for a lot of people. One great example of “trying to do too much” is Facebook in the early years (and some of the not-so-early years as well). Facebook tried their best to make all of their users happy, and still does, and how does that help them out? It doesn’t. They have a sub-70% user satisfaction rate…the lowest of all the social networks. They try to update too many features too quickly and it ends up making everyone mad because their are too many changes going on to keep track of. Google+ comes out with their group chat Hangouts and Facebook prematurely released their video chat feature and it’s relatively useless.
Google+ is in danger of hitting this point too. They release a super sexy social network after many failed attempts to join the social space, and they tried to make everyone happy. Grabbing aspects of Facebook (site design, news feed) and Twitter (great for real-time updates, lists (G+’s ‘circles)), Google released a social network that does everything, except entice users to use it. I’ve had issues with Google+’s ability to succeed since the beginning, and it looks like we’re out of the honeymoon phase and heading in that direction. Google needed to release something that made a difference in how people experienced social media, yet they released something that isn’t integrated into their other services (including search!), have actively told brands to not join yet, and have deleted accounts of users not using their real names/are underage (which blocks them from all other Google services as well, including Gmail for which you don’t need to specify age). They are making a mess of a situation in which they are trying to make everyone happy, and have only succeeded in making a majority of people either angry or indifferent.
One company that has done a great job of sticking to their guns? Apple. Apple consistently releases quality products to rave reviews, how do they do this? They start in a vertical, and perfect it. They started their success with iPods. For years they perfected the handheld mp3 player and that’s what they did. After owning that market, they brands slightly out by making a phone. It was one of their iPods with phone capabilities. After phones they’ve moved on to tablets. But what have they consistently done? They stick with one type of product and dedicate themselves to it and branch out once they have reached a high level of success. That’s a huge difference compared to other companies who try to do too much.
There will always be people unhappy with what happens, and there are people who are only happy when they can complain about being unhappy. If everyone in the country won the lottery today there would still be people complaining that they could have won MORE money if not everyone else had won, even though they are being given money for free. It is the nature of people to disagree, compete, debate, and argue. It is this that allows us to be creative and evolve and innovate. But along the way we have to understand that we can’t back out of what we do just to make people happy. Sometimes we have to take a risk and stick by it. Whether that’s altering an ad to make it less controversial rather than pulling it down, or simply defending your position, we have to grow. Otherwise, the ones holding us back will keep winning.
July 25, 2011Posted by on
Domino’s Pizza has been on a roll recently. After taking a huge hit in April 2009 after a video [it’s since been taken down by Youtube] showed Domino’s employees doing disgusting things to the pizza, the company has taken a very transparent approach to its marketing and advertising efforts. For starters, all advertisements for Domino’s now feature completely untouched imagery of their pizzas; no touch-ups, no Photoshop, nada. The company has gone as far as running a television campaign showing focus groups bashing the the pizza they had been selling for years.
Now fast forward to 2011, where social media has brought about an incredible change in the marketing/advertising and customer service industries. People are able to publicly rant and rave via Facebook and Twitter about miserable experiences (and exceptional ones too!) all they want, and if a company is smart…they won’t try to hide, ignore, or delete those posts. An era of transparency from the company side has emerged, and the lack of trust consumers have in businesses has never been more apparent. Companies have been forced to up the honesty and transparency, and it’s better for everyone.
And here goes Domino’s, upping the ante yet again with their new campaign:
Yeah. That’s right. From now until August 23rd Domino’s will be broadcasting reviews they receive from their Pizza Tracker onto a huge electronic billboard in Times Square. Of course, they will be filtering profanity and other inappropriate content, but in terms of sentiment they will be completely uncensored. That’s one helluva gesture to us consumers.
As a fan of Domino’s I’ve always been fairly faithful in ordering strictly from them when I have a chance, and these types of campaigns are why I am faithful to them. Companies who are willing to put their necks out there and accept praise while also taking the heat for when they make mistakes, and doing what they can to correct those mistakes, is the ultimate show of customer appreciation and trust.
Way to go Domino’s. Keep ’em coming.
May 23, 2011Posted by on
Lady Gaga is known for her outrageous and eccentric attire on stage and in the public image (and just a tad bit of musical talent as well). Amazon is known for being one of the largest online stores, quality customer service, and great deals. When you put them together what do you get? A stroke of genius that proves just how much more they understand the way consumers work these days.
Mashable posted this morning that Lady Gaga is selling her new album for only 99 cents via Amazon. Amazon is also sweetening the deal by forking over 20 gigs of Cloud Drive storage per purchase. This is a major move by both the artist and vendor; rarely has an album been priced for so little, let alone the release of a brand new album from arguably the hottest artist right now (her single “Born This Way” was the fastest selling single in iTunes history). So why are Gage and Amazon charging less than a dollar for an album that millions would purchase for $10-15 dollars without hesitation? Well…
1) Simply because she can. Money isn’t an issue for Lady Gaga OR Amazon…not one album’s worth at least.
2) She understands that consumers in the present day need incentive to buy into something…but if they love, and are loyal to the person/product, they will promote it effortlessly and persuade their peers to buy into it as well. Selling an album for a dollar seems a lot less serious when you consider that Gaga has ~45 million combined fans and followers on Facebook and Twitter that are sure to pay up a dollar for her new album…and then post tweets, statuses, personal messages, and many other types of free Gaga advertising all on their own. Not a bad way to get the word out huh?
3) Amazon’s Cloud Drive is a direct competitor of Google’s and harnessing the power of 45 million Gaga fans, plus Amazon’s fans and massive email list, allows it to immediately compete and perhaps succeed against a giant like Google.
4) Gaga’s reputation as a unique, barrier-pushing artist (check out her recent SNL performance where she sported a pregnancy “bump” whilst performing “Born This Way”) is only bolstered by a bold move like this. It continues her trend as the artist doing things unlike any before her, and also sends a nice message to her fans showing that she cares about them beyond their money.
The end result of this campaign, assuming it reaches the same level of success as Gaga’s music career or Amazon’s online success, will more than make up for any losses taken from selling the album for such a low price.
This is a great strategy. It will get tons of press (I have already seen people I know sending emails and posting on Facebook about it) and allows both parties involved to gain new fans and customers. Possibly (however unlikely) it could also pave the way for a new business strategy that could help save the music industry from its ongoing troubles with pirating, torrents, and such. Now how cool would that be?
What do you think? Is Lady Gaga doing something smart, or is it another attention grabbing headline that will pass without a big deal being made of it?
The Amazon servers got hit so hard from the Gaga faithful that the album downloads are now delayed. As a result people are ripping the digital music service by giving the album one star ratings. I am personally having trouble figuring out if this is a measure of extreme success, or extreme failure. Obviously Lady Gaga has nothing to do with this, except making her fans way too insane so that they cause an event like this to occur. Amazon definitely has to except the blame for this…seeing as how Gaga’s following has helped her become the world’s most powerful celebrity according to Forbes.
While something like this occurring would negatively impact a campaign or business move under normal circumstances…I believe that this will be the exception. Nobody is going to not buy the album for a dollar because it will take them a little while longer to get it, and the fanbase is so gaga for Gaga that this will just create more press and draw attention to it. Lady Gaga will escape from this unharmed, if not even more formidable. Amazon may have some explaining to do, and will most likely take a PR hit, however.
Props to Gaga though for helping to crash the Amazon servers that are able to handle things like Black Friday rushes and other massive deals. It just shows you how amazing the artist really is.
March 10, 2011Posted by on
One of my favorite drinks, by far, is Honest Tea’s green tea with honey. It’s delicious, and I also have found out that it is one of the best green tea drinks too. That’s just icing on the cake.
Now, Honest Tea has gone and performed a great publicity stunt that I wish I would have seen…and not just because I could have scored a free bottle or two of such a delicious beverage, but because it reportedly earned them $3.5 million in advertising value using an extremely low cost campaign. A quick summary of the campaign:
- Honest Tea set up an Honest Tea “store” on the streets of the seven largest US cities that were filled to the brim with bottles of their product.
- Each store was run on the honor system. People passing by were asked to pay one dollar for a bottle, and to put the dollar in a clear, glass case before taking their bottle.
- The percentage of “honest” people was measured in each city by seeing how many dollars were in the cases compared to the number of bottles taken.
- Surprisingly no city had a lower score than 75% (Chicago), and Boston had an unbelievable honesty score of 93%.
Why do I like this campaign? Because it 1) plays perfectly into their product image, 2) It’s a highly successful buzz creator for little cost, 3) It’s a promotion for something healthy, which is so rare these days it just makes my eyes feel better reading about it, 4) It makes people think about more than just the product they are buying/stealing, and 5) having the entire experience video taped seemed to contradict the “honor system” theme, but certainly provides some good footage of a split-second moral decision.
Here’s a video detailing the campaign further:
So how would you have approached the situation? Paid one dollar for a bottle, or just taken one and run? Do you think campaigns like this are good ideas?