Marketing 101: The Microenvironment - Competitors

I want to start this week's post with a bit of caution: even though there may not be a lot to write, this part of the Micro-environment is by no means small or light.  In fact, it is complex, requires a lot of thought and study, and must be properly evaluated.  It's your Competitors.

The marketing concept states that in order for your marketing to be successful, your business must provide greater customer value and satisfaction that your competitors.  In other words, you must do more than simply adapt to the needs of your target customers.  Let me state this again:  You must do more than just give your customers what you think they need, or they say they need.  You must gain a strategic advantage by positioning your products and services against your competitors in the minds of your customers.

This is all about positioning.  You have to differentiate yourself from your competitors.

You can't do this unless you study your competition.  You have to study them, their products, their marketing messages, and figure out how to stand out above them.

This takes time and a lot of studying.

Remember, no single competitive marketing strategy is best for all companies and situations.  You need to take into account your size and position compared to your competitors.  Large firms with dominant positions in an industry can use certain strategies that smaller firms don't have the ability to from a resource standpoint (money and manpower).  But being large is not enough.  There are winning and losing strategies for all sized businesses.  Small businesses must find the strategies that give them larger rates of return. 

When is the last time you took a hard look at your competition?

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Marketing 101: Microenvironment - Marketing Intermediaries

It's time for Marketing 101.  We're still discussing the Marketing Microenvironment.  This week let's discuss Marketing Intermediaries.

Marketing Intermediaries are businesses that help your company to promote, sell, and distribute your products and services to your customers. They can include resellers, physical distribution firms, marketing service agencies, and financial intermediaries.

Resellers
Resellers, such as Target or Best Buy, are distribution channel businesses that help your company find customers or make sales to them.  There are now numerous large reseller organizations (think big box such as Target and Amazon) that have enough power to dictate terms, or even shut out other manufacturers (or even you) from larger markets and groups of customers.  It is absolutely important to have great relationships with resellers.  It is a give and take situation.  Often times, especially with larger organizations such as Walmart, you must be willing to follow their pricing or selling guidelines in order to gain access to their customers.  It may cost you money to get your product on their shelves, or be featured in their advertisements.  Unless you have a long, successful relationship with these resellers, you will typically have to supply them product and services on their terms.  In these situations, successful sales of your product in their stores will be what builds leverage for you in the relationship.

Physical Distribution Firms
Physical Distribution Firms help your business stock and move goods to their points of origin and to their destinations, ie: from the factory to a warehouse and then to the stores.  It is often much more economical to rely on these companies, because logistics is their specialty.  To build a logistics team and infrastructure is often very expensive to do from scratch, and is only really necessary when you are moving massive amounts of goods in highly specialized and time critical ways.  If you are manufacturing internationally, make sure you develop a good relationship with a firm that knows the in's and out's and politics of getting product in and out of ports and dealing with customs. 

Marketing Services Agencies
Marketing Services Agencies usually consist of marketing research firms, ad agencies, consultants, and media firms.  These companies exist to help you find and target your customers.  These businesses typically help to fill in the holes in your marketing staff.  Research firms provide you with qualitative and quantitative data on markets and customers.  Ad agencies help provide fresh, outside creative ideas for your campaigns and strategic marketing efforts.  Agencies can bring multiple types of marketing experts to your business without you having to staff people for each discipline.  Consultants can service the role of internal marketing staff on a temporary, campaign or project basis.

The key to using Marketing Services Agencies is to partner with them to help you with your weaknesses.  Whomever you use, make sure they are filling a hole that you haven't filled yourself on staff.  Make sure that they are invested in bringing you results.  You must keep constant tabs on them: are they doing the right work?  Are they investing your dollars properly?  Are they performing at a level that meets your expectations?  Are they truly concerned with achieving success for you?  Do you have a good working relationship with your account executives?

Financial Intermediaries
Financial Intermediaries help you use money.  They typically include banks, credit companies, insurance companies, other businesses that help you conduct financial transactions or insure against the risks associated with the buying and selling of goods and services.

Marketing Intermediaries are a crucial part of the marketing microenvironment.  You must have effective partnerships with these key elements of the microenvironment if you are going to successfully give value to your customers and get value from them.  Now is as good a time as any to evaluate the relationships you have with your marketing intermediaries.

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Reality Check: Marketing Defined

Every so often you have to evaluate how you are doing.  If you are a marketing professional, it's your responsibility.  So when is the last time you stepped back, and took a look at what you were doing?  Sometimes the best way to do that is to start with the basic definition of marketing.

The simplest definition of marketing I can think of is: Managing profitable customer relationships.  The goals are to attract new customers through superior value, and to keep growing customers by delivering customer satisfaction.  If you are doing these things, then you will be able to capture value from customers to create profits and customer equity.

So if we break this down, then we get some basic questions that are extremely useful for evaluating your current strategic marketing plans:

1) Are your customer relationships profitable?
If you're not making money, then it's time to start figuring out why.  Start collecting data and begin looking for trends.  It's going to take time to get things back to profitability, so it's best to get started now.

2) Are you attracting new customers?
As much as we hate to admit it, we're always going to lose a customer.  Even the most loyal customers may eventually buy another brand.  If you're not attracting new customers, eventually your sales will fall flat, and you will not be profitable.  So what are you doing to attract new customers?  What value proposition are you presenting to them?  Are you properly differentiated from your competition in your target market?  If your value proposition isn't clear, if you're not clearly different from your competitors, then confusion may be keeping customers from being convinced you are the solution to their want or need.

3) Are you creating satisfied customers?
Are product's perceived performance exceeding expectations?  Meeting expectations? Are customers buying your goods and services again?  Are you gaining new customers?  Or are you dealing with dissatisfied customers and poor sales?  Remember that customer value and satisfaction are the building blocks for developing and managing your customer relationships.

4) Do you have key measurements of your customer equity?  
Customer equity measurements can be better indicators of your performance than sales and market share numbers.  If sales are high, and market share is high, but your customer equity is low, you're going to be losing sales and profits will be tanking soon.  Get some data so you can make some real decisions.

Sit down by yourself, and with your team, and take a day to honestly answer the above questions.  You may be surprised at some of the responses.  Now may be a great time to make adjustments to your strategic marketing plans.

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Media Consumption In A Digital Age: It's One Big Experiment

In the past, there was a silver screen, a few broadcasters, and a lot of paper.  If you wanted to watch something, you sat in front of someone's television or a theater screen.  If you wanted to listen to music, it was on a stereo - home or portable.  If you wanted to read something, or take something with you, it was most likely printed on paper.  You were in your home, in a movie theater, picked up the mail, or you went to a store to purchase your entertainment.

A few large companies controlled the publishing and availability of the media you chose to consume.  Prices were pretty much the same everywhere you went.  Competition was non-existent.  That's the way it was.  Then this "thing" called the personal computer appeared.  Then the internet appeared.  Everything changed, and it still is.

Last year Time, Inc. hoped to take advantage of it's multiple consumption and distribution publishing model. Time Inc. was attempting to bundle "digital" media with a traditional print subscription under an "All Access" strategy - which would have eliminated print-only subscriptions in the process - and would have allowed Sports Illustrated to raise its price to $48 from $39. Sports Illustrated reversed course in January.  Said Steve Sachs, Executive VP of Consumer Marketing and Sales, "That price, we found, was higher than the market commanded.  Monica Ray, the Executive Vice President of Conde Nast, commented, "The whole industry has the opportunity to redefine what a subscription is."

What kind of subscriptions do consumers want?  Is a "subscription" model appropriate anymore?  How do I find out?  The only way you can find out is by collecting data.  Without data, you're making decisions in the dark, you are walking around blind.  Since the way consumers consume media is changing, we need to be collecting data and study how our customers are using our media products.  If we don't adapt, if we aren't willing to constantly evolve our model of media delivery, we will forever be stuck in our traditions, and more media institutions will perish.

There are no longer a few ways to consume media.  Now there are many publishers, many screens, and the vast majority of them are portable.  Oh ... there still is some paper too.  Because traditional publishing methods have changed drastically from decades of old, traditional media publishers are walking around blindfolded, feeling their way around a media consumption environment that they no longer control.  Today publishing in a digitally dominated ecosystem has become one big experiment, and understanding what will work for you is all about knowing your customer ... and that requires data.

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Using Online Communities to Create Brand Awareness - Part 2

This is Part 2 of my thoughts on Using Online Communities to Build Brand Awareness.  Last time I discussed how online communities help you build credibility and general awareness about your products and brand.  This time I want to discuss how online communities help you create SEO-aware content, and how they can help you build customer satisfaction.

Many marketing directors don't realize that as you are building awareness through your community posts, you are also creating SEO-aware content.  All posts and comments are index-able.  Search engines such as Google are able to look through and "store" your posts from an online community.  Because these posts are on a website other than your own, Google gives this content more weight, since it considers content about you on other websites more relevant.  As a result, your brand name and product information move up in ranking within relevant search results. 

Google also looks for links back to your website.  Make sure to put the address of your website in your signature.  This insures that your website's address is always displayed with every post, and that it is indexed as many times as possible when a search engine crawls the online community's site.

As you post more searchable content, it becomes easier for existing customers to find information that may help them solve problems.  Online communities are a great way to get involved in the first steps of basic customer service issues.  You can use the posts of others as an opportunity to acknowledge issues with your product.  You can also show your willingness via the public domain to serve the customer and create a positive brand experience.  However, remember that people tend to be more vocal on the internet, because it's a more anonymous experience.  You must always write posts that are calm, clear, and emotion free.  Use positive language, but never "beat around the bush" when a clear acknowledgement of a problem is best.

Remember that today being a part of online communities is necessary when marketing digitally, because it gives you a direct opportunity to build credibility, build awareness, create SEO-aware content, and address customer service issues.

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Using Online Communities To Create Brand Awareness - Part 1

We should always endeavor to connect with our customers.  Isn't that one of the great goals and mysteries of marketing and branding?  What is the best way to connect with our customers?  How should we convince them to purchase our products?  How can we spend AS LITTLE MONEY as possible doing this and still make a profit?

It seems that many small businesses, and even large ones, still have not discovered the online community "gold mine".  Being a part of online communities is necessary, because it gives you a direct opportunity to build credibility, build awareness, create SEO-aware content, and address customer service issues.

Online communities give you a direct way to connect with consumers and build credibility.  Online communities allow you to present yourself as a subject manner expert.  By answering consumer's questions and helping them solve their problems in a friendly, non-pressured manner, you present yourself as a credible and knowledgeable, even though you are somewhat biased towards your product as a solution.  With a good attitude, and a friendly, clear writing style, you can present your product and brand as the wise solution to their needs.

As you are helping community members meet their needs, you are constantly building awareness.  Your participation helps to show others their potential need for your product.  Also, your participation helps to inform others of the existence of your product who may not have known about you.  Online communities also provide you with a great opportunity to receive feedback about your product.  If you are an advertiser in that community, you can also build awareness by posting news releases about new models and product updates.

Next time we will discuss using online communities to create more SEO-aware content and help create positive brand experiences via customer service.

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What Are You Doing To Create Awareness Today?

Did you do anything to market yourself today other than think about it?

Marketing doesn't happen by itself.  You have to do it.

People don't find out about you on their own.  They won't bring up Google and search for you unless they have a reason to do so.

So what are you doing today to create awareness?

If you need a jump start, here are some ideas that might be relevant to your customers:

1. Offer A Discount
Sometimes the easiest way to drive traffic to your website, or to retailer locations, is to offer a discount or a coupon.  However, remember that spending money can be an incredibly emotional thing.  The right price, or discount, can drive a person to spend money "easily" without any thought.  5%-10% off might not be the ticket.  Don't be afraid to explore 20%, even 30-40% off.  If you're concerned about your margins, make it a limited or exclusive offer to a select group of customers.  Once they are in the door, they tend to buy more.

2. Hold A Product Demo Event
People love to research products, and price-shop online.  But at the end of the day, a consumer that touches the product, tries it, and likes it, usually ends up buying it.  Consider putting on a demo event in a location that contains your primary customer demographic.

3. Ask For Product Testimonials Via Social Media
Social media makes it very easy to connect with your customers.  It can be a customer service haven and nightmare.  One of my favorite uses of social media is testimonials.  It's as easy as this:  Ask users of your product to submit positive experiences of your product: video is preferred, text and pictures are great as well.  Incentives are a must.  Offer discounts off of new product, or free accessories to those consumers whose testimonial you choose to post.  Post one a week for 13 weeks - the length of a typical television or radio ad buy.

4. Participate In Online Communities
This fourth option can take the most work, but it can reap some of the largest gains for building your brand's credibility.  It's as simple as joining relevant forums and blogs.  Put your name and company in your signature.  Make it clear who you are.  Offer advice and sensible solutions.  However, you cannot blatantly advertise your product in your posts.  It's best to offer sound advice that may or may not include any of your specific products.  Over time you will see a few benefits:
- Community members will see you as an expert
- Community members will begin to explore your website and your product
- All of your posts will be indexed by search engines (like Google) and it will increase the amount of searchable, relevant content about you online.

It's a good idea to put one of your best PR reps or customer service representatives in charge of online community participation.  Your Social Media Director is a great fit as well.  You can take this a step further by becoming an advertiser in that online community.  This allows you to blatantly post about your product and any specials you may be offering.

These four things are simple, yet highly effective ways to increase Brand Awareness for little cost other than labor and time.  If appropriate, and if used in a focused manner, they are a great way to connect with current and future customers, and can provide a great ROI for a little marketing budget expenditure.

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The Department Store Finally Evolves

Well maybe it already did, through Kohls.  But I digress...back on topic.

Yesterday JC Penney CEO Ron Johnson announced sweeping changes in an effort to refresh the brand, and the department store "way" of selling product. 

It's about time. 

During Mr. Johnson's tenure at Apple, his team, "always parked at the department stores...because there 'weren't any cars.'.  You know you have a problem when people are using your parking lots to visit other retail locations other than your own.  Mr. Johnson, while noting that JC Penney was in it's 110th year, said, "I believe the department store is the No. 1 opportunity in American retail. And this isn't something I decided last June when I took the job. This is something I decided 10, 15 years ago."

So what does this new opportunity look like? 

First, it starts with a dramatically more realistic product pricing structure.  Consumers rarely purchase products at full price.  In any economy, up or down, consumers are more willing to part with their dollars when products cost less, ie: when they are on sale.  Mr. Johnson, acknowledging this, is leading JC Penney to adopt a "fair and square" pricing model.  It's this simple: If a T-shirt that usually is priced at $14 but typically sold for closer to $6, will be priced at $7. This puts it right in line with what a consumer was actually paying for that shirt.  If it's a featured product, it will be priced at $6. Clearance time: $4. This change alone should help to drive sales.  Why?  It allows JC Penney to sell product at prices consumers are willing to pay, instead of constantly holding onto inventory, and hoping to clear it out every quarter. 

The second thing Mr. Johnson is doing is completely revamping JC Penney's promotional calendar and spending.  Currently, JC Penney's sales year has 590 promotional events.  Mr. Johnson wants to reduce that to 12.  The reason: noise.  When you are constantly promoting promotion after promotion, it creates "noise" for the consumer, and eventually it all blends together and the consumer doesn't know what to focus on.  As a retailer, you become less relevant and harder to keep track of. 

To illustrate his point, Mr. Johnson had presentation attendees walk down a hall covered with old ads and circulars, calling it the "Hall of Hell." Promotional spending will also change; instead of $2 million per promotion, JC Penney will now devote $80 million a month towards entire product line promotion.

This is so refreshing.  To finally see a department store (or any big-box retailer other than Walmart) understand that their pricing structure and promotional model is so out of touch with consumer buying habits is amazing.  For that brand to make realistic ... frankly common sense changes ... is fantastic.  I sincerely believe that, if successful, JC Penney will force their competitors to re-brand and re-price.

Consumers will be the beneficiaries of these changes.  Products will sell for lower, more realistic prices.  Sales will increase, and retailers may begin to see the growth that they have been hoping for. 

I hope JC Penney succeeds.

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Be Purposeful Or Else You Will Be Ignored

On Tuesday, Facebook announced that it would begin adding "Sponsored Story" ads to users' news feeds in January.  This will not happen in mobile apps yet.  This announcement is another step in Facebook's plan to monetize it's business and make it a viable advertising platform. 

If you're an advertiser, this gives you an easier way to get in front of the eyeballs of millions of Facebook users.  If you're Facebook, you just earned yourself some more ad dollars and paid a few more bills.  If you're a Facebook user, you may have another reason to ignore Facebook today.  And that's the caution to throw into the wind:  "Sponsored Stories", if overused, will quickly be ignored, and will have little to no value for any advertiser.  In fact, if Facebook isn't careful, and if you aren't as a media buyer, "Sponsored Stories" could be a huge flop.

Remember that "reach" basically is the number of individuals you want to expose your message to through any type of media scheduled over a given period of time.  For focused groups of audiences, Social Media and other online advertising provide great reach.  However, frequency is where things can go wrong.  When you're visiting a website, such as a news outlet, you expect to see ads.  You're voluntarily allowing yourself to be exposed to them.  Even if advertisements appear, we tolerate them, because we're simply using the website to consume information in an impersonal matter.

Social Media isn't impersonal, it's personal.  Frequency can quickly die off with Social Media, because when ads invade our personal "space" online, we change our usage patterns; quickly visiting a services like Facebook less, or even stopping altogether.  Once that happens, you've lost that consumer, potentially alienating them from your brand (as an advertiser), and possibly losing another revenue generating user. 

That's the slippery slope.  As an advertiser, you need to make sure not to abuse Social Media advertising.  It's users may be more receptive to your messages, but if you over "communicate" to them, too frequently, and without specific value or purpose in your message, they will quickly ignore you.  Once they ignore you, your Brand Awareness measures and credibility may start to decline as well.

Facebook needs to quickly decide how much advertising they really want to force their users to view.  If they continue to add more "ads" to people's feeds, Facebook may quickly lose users, and one of the "pot of golds" of internet advertising may cease to be.

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Saying Apple Won The Mobile Flash War Is Misleading

Remember the headlines in November?  Ones like those in this CNET article saying Apple won the mobile Flash war.  Sources at Adobe were quoted as saying that "We will no longer adapt Flash Player for mobile devices to new browser, OS version or device configurations." (source CNET UK).  So Steve Jobs won.  Flash really is unnecessary on mobile devices.  Actually, it is very necessary.

Adobe made the right move, enabling a successful development platform (Actionscript) to exist in an "app" consumer model within the mobile space via Adobe AIR.  Let's remember what Flash is: a development environment for delivering rich, interactive content to users.  This has traditionally been done via the Flash plugin, allowing web browsers to decode and display this content. However desktop and laptop PC's have more CPU horsepower and screen real estate available for processing Flash content and Actionscript code.  Mobile devices, with their smaller screens, and slower processors, are not ideal vehicles for delivering Flash-based content.

Adobe, FINALLY, recognized this.

So Adobe took a step back, surveyed the situation, and realized what they have: a viable, established development platform.  This development platform not only delivers games and entertainment, but it enables advertisers to create dynamic ads and apps, allowing them to connect with consumers in new ways that traditional advertising does not allow.

That's why the mobile play is so important.  Traditional advertising methods don't work in a mobile environment.  In February of this year, Comscore reported smartphone usage was up 60% year over year (Business Insider).  If you want to get your costumer's attention, it's no longer via a television or a regular PC screen.  In order to win mind share, you have to get consumers in their pockets, so that they will open up their pocketbooks.

Flash/Actionsctipt development via Adobe AIR packaging makes sense. It allows Adobe to continue to sell software.  It allows Adobe to stay relevant with developers. It allows Adobe to be a key player in the mobile advertising realm.  It just makes sense.

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It's about the content, not the algorithm

SEO. Search Engine Optimization.  For the past few years, no other term (other than Social Media) has owned the mindshare of marketers and business owners when it comes to the web.  It's almost a foregone assumption: if I build a website, I must perform SEO.  If I own a website, I must perform SEO.

The next big assumption is that performing SEO means either hiring an expensive "SEO Company", or getting a "SEO For Dummies" book and doing it yourself.  What exactly are you doing when you are "SEO'ing"?  Altering "alt" tags, meta data, headers, tagging images, keyword selection, link-backs...it's almost as mind-boggling as trying to guess how many letters there are in a can of alphabet soup.  Why are we putting ourselves through this insanity?  It's because we desparately want to be at the top of Google's listings.  We want to meet, beat, and even fool Google's algorithm at it's own game. 

It's time to stop the insanity.  Sure, having as much of your content indexable as possible is worthwhile.  Sure, you want to have good keyword selection and contextual page titles.  But lets get one thing clear.  No matter the algorithm, if you don't have relevant content, and others don't think you're content is relevant, Google isn't going to care either.

Google cares the most about relevant content.  If your content is actually about what you claim your website or webpage is addressing, then your content is relevant, or contextual.  If you title your page "Dogs", but you present information about cats, then it is not relevant.  Google and it's genius engineers have figured out how to "crawl" your website, examine your content, and rate it's relevancy.  It grades everything on your page that it can search, or "index.

Not only must your content be relevant, but it must be updated frequently.  Google will index your site on a set schedule once it "finds" you for the first time.  How often you update your content, or create new content, will determine how often Google "decides" to visit your site.  If you create a site, and never update it, then Google will eventually "decide" to visit your site more infrequently, and as a result, it will lower you in relevant search results.  But if you continually update your site, and continue to create relevant content, Google will raise you in it's search results.  Old and stale = forgotten and unimportant.  Fresh and exciting = relevant and important.

Even if you write relevant content, and keep it fresh, unless others also think it is relevant, then Google will not raise you up the search ranking results.  How do others make you relevant?  Link backs.  The more people, in contextual situations, link back to you, then your content is relevant.  What is a contextual situation?  Link farms are NOT contextual situations.  In fact, Google has clamped down on this practice; recently altering its algorithms to remove link farms from the equation.  So many people were "playing" the system with link farms and dummy websites that Google re-worked it's code to severely discount the influence of link farms and dummy websites.

What Google did was increase the relevancy of a website, with content relevant to yours, linking back to you.  For example, a blog post talking about dog sweaters, mentioning your comments about them, and linking back to your site, is relevant.  A series of forum posts on a public community forum site about dog sweaters, with links back to you in those posts, are relevant.  A series of social media posts on Facebook or Twitter, mentioning content about dog sweaters and linking back to your site, are relevant.

Google cares about content that others care about, and if they care about you, then Google cares about you.  So go ahead and optimize those page headers.  Make your site's content match your keywords.  Make as much of your website able to be indexed as possible.  But if your content isn't relevant, and if others don't care about your content, then Google won't either.

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Another Ad Network = More Fragmentation

On Wednesday Yahoo released it's "Living Ad", interactive video ad format for advertisers.  This new ad format works within an ad network, that is centered around Yahoo's Livestand publication app.  Livestand, along with it's ad network, enters an already saturated ad "market" occupied by the likes of Flipboard, Zite, AOL's Editions, and Pulse.  Yahoo is pushing advertisting packages to buyers, some of which are said to run upwards of $500,000.

According to Yahoo, Livestand features a magazine-style layout.  It will launch with some content from third-party publications.  Those publishers will share their ad revenue with Yahoo.  The details of these revenue sharing arrangements are not yet known. These publishers can also re-sell ad packages on the plarform.  I can only deduce that Yahoo get's a cut of that revenue as well. Diane McGarvey at Scientific American, which is offering some content on the Livestand, states Yahoo will keep about 70 percent of revenue on ads sold to appear inline with Scientific American content.
Living Ad, along with Livestand, is one of many initiatives to attempting to make Yahoo a relevant player in mobile advertising.  Mobile advertising is projected to net around $1 billion this year in the U.S. and up to $1.2 billion in 2012, according to eMarketer. Yahoo is positioning itself to receive as large a portion of this pie of revenue as possible.

The mobile ad space is already over-saturated.  Frankly, none of the ad formats and networks bring anything new to the table.  Nothing currently compells a consumer to do anything after viewing these ads compared with any other form of advertising medium.  We don't need another ad network.  We don't need another "method" to get an ad to a consumer.  What we need is a new type of ad, a new way to interact with a product, that might actually compel a consumer to buy.

Advertisers, and content networks, need to bring new ideas to the table.  The internet and mobile phone networks bring whole new possibilities to advertising via interactive ads.  An interactive ad would allow a consumer to configure products, explore them, walk around them, try a focused "demo" of it.  After they have played with it, or configured it to their hearts content, they could be connected with a vendor to purchase that product within a few clicks.  This gives the consumer a quick way to satisfy their emotional desire to buy the product.

However, most online ads don't do anything other than present a picture, an animation, a call to action phrase, and link to a normal website.  There's no point to showing a traditional ad online or on a smart phone if there's nothing new about it's experience.  None.

Yahoo's Living Ad is trying to do this.  However, most advertisers don't seem to know how to create an ad "experience" that really compels consumer interest.  We need to stop telling

If advertisting is going to survive, and make money, the "ad" as we know it needs to evolve along with the technology available to deliver it.  With the growing popularity of mobile devices that are connected to mobile data networks, there is a new opportunity to truly try something new.  Who is going to lead the way?

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Is the 30 second spot relevant?

No one watches commercials anymore, right?  In the age of the DVR, we zip right past them.  Commercials are old school, they are relics of ages past.  It's all about the web, social media and gorilla marketing via YouTube, right?

Is there any point to a 30 second commercial on broadcast television?  Absolutely!  Not only are they relevant, but they are the best way to build brand equity through brand awareness.

In order to build Brand Awareness, you need to get the attention of your audience.  No other human sense gets our attention better than visual stimuli.  The phrase "a picture is worth a thousand words" is still very true.  Commercial advertising used to be all about the "sell".  Get a spokesperson, list off your product's features, and tell everyone to buy it.  There was no better way to sell a car or a frozen dinner in the 1960's and 70's than to list off your features and tell a viewer to go and buy it.  It doesn't work the same today.

Today you have to get someone's attention.  You have to pique their interest.  You have to create buzz.  You have to make the emotional sell.  Saying your car is "Imported from Detroit", or "You're In Good Hands With Allstate" speaks louder than telling everyone your insurance has lower monthly premiums.  Connecting with an older audience, while featuring someone from a new generation in a simple t-shirt does wonders when you want to get everyone to ask, "Where's the Beef?".  One commercial, one visual, can spark a flood of conversation that spreads from the office water cooler to the status updates of Facebook. 

Today television presents a great ROI, not just because you can reach millions of eyes at one time, but also because you can use it to drive people to more direct brand interaction and messaging.  The venerable commercial used to be a one-way experience.  The viewer watched it, and you hoped that the message would soak in.  You hoped they would go to a store and interact with your product.  Today a viewer can have instant interaction with your brand via the internet and mobile devices.

Today a commercial that doesn't just create interest, but moves someone to interact with you is essential to a successful campaign.  Want to find out more?  Go to our website.  Want to get great deals?  Visit Facebook or GROUPON to get 20% off your first purchase.  Visit YouTube for more clues and win your very own car.  You couldn't do this 20 or even 10 years ago.  Now you can.

No other medium allows you to reach as large an audience at once as television.  However, Jerry Shereshewsky, a New York City ad agency veteran and CEO of Grandparents.com, asserts that if you want to get narrower than a general demographic, you're out of luck.  With today's audience diversification and deep pool of niche channels, this isn't the case. TV is now a target rich environment, and it allows you the opportunity to tailor your message for any specific demographic.  Even better, that demographic is a willing listener.  You don't want to watch Food Network or G4 because you have to, you watch it because you want to, because you're interested in that hobby or vocation.  Viewers of these niche channels are already willing to buy items to suit their interests, and if your product fits these interests, they are willing to listen to you.

Getting attention, creating interest, and encouraging brand interaction are all possible today through the focused use of the 30 second spot. What used to be a multi-million dollar shot in the dark is now a viable, successful option for building brand equity through brand awareness and brand engagement.  Consumers are willing to watch commercials...are you giving them a reason to watch yours?

Wendy's Brings Back "Where's the Beef" - Chicago Tribune
Which Ad Strategy Works For You? - Entrepreneur Online

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Facebook helps advertisers engage their customers

I'm taking a break from my review of basic marketing fundamentals to discuss something key from the recent Facebook F8 event.

On September 23rd, Michael Lazerow published an article on Adage commenting on Facebook's Ad product evolution.  In his post, Michael comments on three key items:

• Facebook now helps you build better connections
• Facebook can be used to let your customers tell your product's story
• Facebook can help you unlock the value of people

I want to comment more on these ideas.

First, the whole "point" for a business using Facebook is to connect with their customer.  Seems like a no-brainer, right?  Maybe ... but what many businesses assume is that once someone "Likes" their business, they are instantly connected, and their "Likes" will pay attention to whatever they post, even if they post nothing.  "Like" DOES NOT equate to "connecting".  Mr. Lazerow is correct when he says, "It's about what you offer them and it's clear that the company's (Facebook) focus has shifted from growth to engagement" (reference to Facebook added).

Facebook isn't about announcing another product.  It isn't about beating your chest.  It's about posting CONTENT that is relevant to your customer.  It's about GIVING them something that matters. If you sell cameras, post tutorials about photography techniques.  Give them tutorials focused on teaching them to use your product.  Post a 50% off coupon for Facebook members for camera accessories.  GIVE them something that is VALUABLE to them.  Remember when we were talking about Brand Equity in my last post?  Facebook is a great place to build brand awareness and brand equity.

Use your customers to build your brand equity.  Have them tell your product's story.  Have them show and tell others about how they have used your product.  Their voice (positive and negative) carries more clout and emotional credibility than yours ever will.  Continuing on the camera example, inviting users to post their photos from vacations with your camera allows them to share their emotional connection with your product.  Awarding prizes for the best photo taken with your camera helps to strengthen the customer's "bond" with your product and brand.  The "community" built, and the quality of photos submitted (hopefully) will build better brand equity than you could do yourself through traditional advertising via any medium.

Advertising doesn't always "reveal" the fact that your customers have value.  They don't just give you money.  They are a very real voice in the marketplace.  Make them a voice for you.  Facebook (and potentially Google+ in the future) allows you to connect and unlock their value in a way that we never had before social networking existed.  It's time for you to take advantage of it and truly engage with your customer to build your brand equity.

Credit: Adage

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Is Anyone Aware?

One of the items I mentioned last week was Brand Awareness.  What is Brand Awareness?  It is the measure of a consumer's knowledge of your very existence.  The "aggregate" level is the proportion of consumers that "know" your brand.  Why is this "level" even important?  It's important, because the creation of brand awareness is the PRIMARY goal of advertising, and it influences the behavior of the buyers of your product.  However, remember that all of your measurements of brand awareness are, at best, approximations.  They are not exact. The more measures used, the more complete your understanding of brand awareness will be.

Brand awareness is measured "simply" by showing a consumer the "brand and asking whether or not they knew of it beforehand.  Many textbooks have conceptualized brand awareness simply as the knowledge that the brand is a member of a particular product category, such as fast-food.  However, common practice says there is more than one recognition and recall measure, all of which test the brand name's association to a product category cue.

However, "knowledge" doesn't give us much data to do anything with.  So, we use three common metrics that can be measured:

• Brand Recall - Either the brand name or both the brand name and category name are presented to survey participants.
• Brand Recognition - The product category name is given to participants, and are then asked to recall as many brands as possible that are members of the category.
• Top of Mind Awareness - Brand Recognition, but more specifically only the first brand recalled is recorded (called "spontaneous brand recall" by some).

These measurements can be used for creating an understanding of Brand Equity.  Brand Equity is the positive effect of the brand on the difference between the prices that the consumer is willing to pay compared to the perceived value of the benefit received by your product.  The more value, the more a consumer will pay for your product.  Brand Equity is built by brand awareness activities such as advertising, PR, and promotion.  Simply put, the more Brand Equity, the more you might be able to charge for your product.  Higher prices can lead to higher profits.  You're in the business to make money right?

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Brand Assessment

Last week I discussed the details of Brand Architecture.  Before I talk about further evaluating a Brand Architecture, I wanted to explore the Brand Assessment.  The data gained from researching and evaluating your brand in an assessment is a key requirement before considering any future change in your Brand Architecture.  If you don't know anything about your brand in the marketplace, you cannot make any intelligent decisions about it's direction in the future.

There are two key parts to a Brand Assessment: the Brand Essence and the Brand Communication.  

When reviewing your Brand Essence it is important to determine:

• Awareness: Are you known in the marketplace?
• Favorability: How do people feel about you?
• Function: What benefits do you provide your customers?
• Key Driver: What prompts consumers to engage with you?
• Support: What "backs up" your key function in the marketplace?
• Differentiation: What distinguishes you in the marketplace from everyone else?
• Personality: What compelling attributes define you?
• Quality: What is the quality of your brand in the marketplace?

When reviewing your Brand Communication, you should review:

• Messaging: What messages are the most compelling to your current and potential customers?
• Name: How effective is your current name in the marketplace?
• Logo: How effective is your current logo in the marketplace?

The amount of detailed, reliable data you can collect on each of these areas will help you determine the direction your brand should go in the future.

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