Much of marketing troubles come because we assume it is science which it is not. A doctor gives antibiotics and is sure that the infection will be cured, but ad man or brand consultant cannot give guarantee that the suggested strategy will solve the problem for sure. The reason different agencies would come up with different campaigns for the same brief is because it is not science. The agencies and clients both take partially informed (experience and market research) and partly gut feel based decision.
The phrase ‘half of advertising money is waste’ has almost become cliché. I think the primary responsibility is to determine which half is waste because we are talking about 50% wastage to begin with; which is also a guess mark. Who knows if 80% or 20% of the advertising money is waste? The puzzle of marketing ROI cannot be solved unless this wastage is identified and fixed. Thankfully digital marketing is measurable to some extent and we can know the click-through-rate and conversion rate. Yet we do not know the conversion was because of compelling campaign or unique product.
Marketing is common sense. You give something and you get something. All the rest is philosophy. I am yet to find a convincing approach that can differentiate the impact of ad campaign from the brand reputation and consumer trust. A consumer action has combined influence of many factors that include previous experience, quality, availability, value, image, advertising and retail. In order to differentiate the impact of each element we might be required to do some Simulated Test Marketing researches which are done only in rare cases. Even ad recalls researches are not fully reliable because consumers don’t see advertising and brand reputation separately. They love the brand and feel they have seen an ad for it just yesterday. They don’t like a brand and will ignore its most dramatic advertising right away.
Experts now claim to measure returns even on social media which is so vast spread to begin with. How do you measure returns on social media when a lot of consumers are talking about you for free? They become fans on facebook for free. A company may not spend a dollar in the social media, yet consumers could be talking about the brand because they find it fascinating and they are thrilled by the service. Some enthusiasts even create videos and post them without expecting any rewards from the company. Some videos happen by chance, a customer sees his favourite SUV pulling a competitor in desert, and he shoots it by his mobile and posts it. This gives unique satisfaction to the consumer because he can boast that he has the same vehicle. And when the company makes a mistake in product or service, the consumers lose no time in bitching about it in the social media. In fact they will certainly report a problem in the social media if the company is not responsive.
The best marketing investment is a good product and proactive service. Everything else follows - such as engagement, reputation, loyalty, and worth of mouth buzz. When people know about a restaurant that has really good food, they do not mind travelling long distance and even struggling for parking to get the food they want. Consumers care for the value they get, and they tend to forget preaching soon.
Tuesday, 9 February 2010
Saturday, 6 February 2010
Information overload in the age of technology
George Packer wrote an article in The New Yorker on Twitter. The PR of Twitter fascinates me. If there is an agency behind the entire PR that Twitter gets, I must salute it. There are far more users for Google and facebook but no one writes articles on them as much as people do for Twitter. Facebook claims to have 400 million users word wide, but Twitter users are not known and guesses say that they are somewhere between 5 to 10 million. However, Google News search for both give almost similar results i.e. 120,000 approximately.
There isn’t a single business magazine that can avoid talking about Twitter. Iran had troubles after elections and Twitter was referred as frequently as the wrangling parties. Shashi Tharoor, and Indian Minister, was criticised because of his tweet. Now media doesn’t talk about his decisions on the as a minister as much as they talk about this tweets. If he has to oppose a government decision, he doesn’t talk to his colleagues and posts it on Twitter.
George Packer argues that this information overload has taken up time from serious thinking and book reading habits. I support that view. We need to know what kind of information should come in and selecting only worthwhile magazines or websites for information input is much better than going through thousands of micro-blogging or blog posts. I am more contended to have Wikipedia as my home page because I know that everything that it contains is worth talking about.
I believe micro-blogging on Twitter or facebook updates steals the opportunity to develop an idea. A small idea can develop in a blog post or article, but when it is posted in micro-blogging we pay the opportunity cost. It also takes our thinking in a ‘reactionary’ mode and we may stop evaluating what is worth reacting and what is not, because each reaction takes time and energy. And, it reduces our attention span. When we tune our minds to get into the habit of reading information in one or two lines, we struggle to focus on something much detailed and rich.
Some experts claim that digital versions of newspapers will be extinct in future. I think online version of magazines cannot provide the joy of reading that comes from holding a magazine. We tend to develop sense of belonging with a book which cannot come from its soft copy.
We need to reclaim our focus and appetite for rich information otherwise we will not realise when information overload has crushed our capabilities for reflection and analysis. We cannot form an opinion without analysis, fast pace of information influx doesn’t leave us with enough time to go through analysis. Information needs to be channelized after it has been absorbed, and right channelization is having an opinion on it. Sometimes having an opinion is better than having information.
There isn’t a single business magazine that can avoid talking about Twitter. Iran had troubles after elections and Twitter was referred as frequently as the wrangling parties. Shashi Tharoor, and Indian Minister, was criticised because of his tweet. Now media doesn’t talk about his decisions on the as a minister as much as they talk about this tweets. If he has to oppose a government decision, he doesn’t talk to his colleagues and posts it on Twitter.
George Packer argues that this information overload has taken up time from serious thinking and book reading habits. I support that view. We need to know what kind of information should come in and selecting only worthwhile magazines or websites for information input is much better than going through thousands of micro-blogging or blog posts. I am more contended to have Wikipedia as my home page because I know that everything that it contains is worth talking about.
I believe micro-blogging on Twitter or facebook updates steals the opportunity to develop an idea. A small idea can develop in a blog post or article, but when it is posted in micro-blogging we pay the opportunity cost. It also takes our thinking in a ‘reactionary’ mode and we may stop evaluating what is worth reacting and what is not, because each reaction takes time and energy. And, it reduces our attention span. When we tune our minds to get into the habit of reading information in one or two lines, we struggle to focus on something much detailed and rich.
Some experts claim that digital versions of newspapers will be extinct in future. I think online version of magazines cannot provide the joy of reading that comes from holding a magazine. We tend to develop sense of belonging with a book which cannot come from its soft copy.
We need to reclaim our focus and appetite for rich information otherwise we will not realise when information overload has crushed our capabilities for reflection and analysis. We cannot form an opinion without analysis, fast pace of information influx doesn’t leave us with enough time to go through analysis. Information needs to be channelized after it has been absorbed, and right channelization is having an opinion on it. Sometimes having an opinion is better than having information.
Thursday, 28 January 2010
Memory in motion
Life is motion and our memory is able to hold a motion much easier than facts. In simpler words we can say that we are more likely to remember a story than facts. If you watch a documentary and read informative article most likely the facts will fade out from the memory but if that article or documentary covered a story then it is more likely to last in the memory.
I think the memory ladder goes in the following manner.
Words or facts: They are most difficult to hold in memory. We tend to forget most of the words learnt in the schoolbooks.
Images: They are relatively easy to remember as compared to words. Volcanoes can never fade from the memory because they have unique pictures association with them.
Event or story: They are most easy to remember. A story presents a fact in a motion and makes it memorable. Most of the people can easily remember events in their lives and pass on them as stories.
If I read an article and try to remember all the facts, it will be a difficult process for the brain. Especially when it is not crucial to remember all those facts. We need to summarise any new learning in two sentences to remember it. If I read a detailed article on Uyghur problem in China, I cannot remember all the details but if I summarise it to myself as a story in two or three sentences with key words such as Uyghur, Xinjiang and Han, I will have less difficulty in remembering it.
A story that is unique and emotionally appealing is likely to be remembered more. Thus, if any new information is seen with interest and curiosity it tends to be memorable.
I think the memory ladder goes in the following manner.
Words or facts: They are most difficult to hold in memory. We tend to forget most of the words learnt in the schoolbooks.
Images: They are relatively easy to remember as compared to words. Volcanoes can never fade from the memory because they have unique pictures association with them.
Event or story: They are most easy to remember. A story presents a fact in a motion and makes it memorable. Most of the people can easily remember events in their lives and pass on them as stories.
If I read an article and try to remember all the facts, it will be a difficult process for the brain. Especially when it is not crucial to remember all those facts. We need to summarise any new learning in two sentences to remember it. If I read a detailed article on Uyghur problem in China, I cannot remember all the details but if I summarise it to myself as a story in two or three sentences with key words such as Uyghur, Xinjiang and Han, I will have less difficulty in remembering it.
A story that is unique and emotionally appealing is likely to be remembered more. Thus, if any new information is seen with interest and curiosity it tends to be memorable.
Tuesday, 26 January 2010
Insights beyond cultures
There are some things people do across cultures even though they the cultures might be completed detached. I read about children throwing stones and it happens in different cultures although the object of stones might differ. I read in David Copperfield how as a young child when he is left alone at a house along with two other female members, he wishes if there would be attack from any animal or man and he could beat the attacker and gain glory. This is one of the childhood fancies to seek glory and it isn’t specific to any culture. I once noticed a young boy from distance and he was leading a fight of his own. He had imagined some offender whom he was kicking and punching like a movie star. Most boys do this when nobody notices them. I have done it a few times as well. I think if any advertising campaign taps into such global insights, it has potential to be liked by all. MasterCard campaign of ‘priceless’ has one such global insight that travels across cultures.
Wednesday, 13 January 2010
Rose, tears and marketing
"What's in a name? That which we call a roseBy any other name would smell as sweet."
- Shakespeare
Shakespeare did not know that in future brand naming consultants will take an offence on his wisdom and the sweetness of rose will differ depending on the brand name and stories attached to it. I met a gentleman who is fan of Guerlain perfumes and he likes India also because Guerlain has named many of their products from Indian tradition. He spoke about Shalimar and how Jacques Guerlain was inspired by the tragedy of Mumtaj Mahal whom her emperor husband Shah Jahan missed so much after her death that he built Taj Mahal. Three hundred years later her story inspired Jacques Guerlain who imagined her sitting in desert and shedding tears (though she did not live in desert but perhaps people go there after death in order to meditate). Her tears would mix with the desert sand and inspire a curious soul to develop Shalimar that will give solace to generations of perfume lovers. It’s a bit ironical although that tears would inspire an indulgence product but even the tears of celebrities have power to sell products.
Ad campaigns to shape image of a brand die but the stories live on. Almost every marketer knows the story of Coca-Cola when consumers rejected the New Coke because its taste was different. Researchers present it as a case of badly designed research (branded testing vs unbranded testing) and brand managers speak about how brands become cultural icons. The New Coke failed but Coca-Cola won as a result of this story. There is also story about Coca-Cola secret-formula being guarded passionately over years. This story adds to the mystery and aura to the world’s number-one brand. Parley, an Indian company, made equally good cola under brand name Thums up in 1977 and this brand has so loyal consumers that even though Coca-Cola tried to kill it after buying it the consumers continue to ask for it. There is hardly any secret in business these days but fiction never dies.
Brands need heavier reliance on stories when their benefits are abstract. A unique product speaks on its own. iPhone and HP tablet don’t need stories because their benefits are obvious. Their advertising can also live without creativity and story. But when a marketer has to sell fashion, perfumes, chocolates etc they need to find fascinating stories.
If you stand before a crowd and take out a stone and ask: ‘How much you are going to pay me for this?’ The audience might laugh at you. But if you say, ‘This stone is from moon, how much are you going to pay for this?’ they start looking around to salute the man who will have guts and pockets to buy this. The sand has no value in the absence of the story, like desert sand had no value before embracing the tears of the queen.
Previous posts on story:
Truth Well Told
Brand Positioning As a Story
Nothing Succeeds Like Story Telling
Brand Positioning As a Story
One minute of story telling and no selling:
- Shakespeare
Shakespeare did not know that in future brand naming consultants will take an offence on his wisdom and the sweetness of rose will differ depending on the brand name and stories attached to it. I met a gentleman who is fan of Guerlain perfumes and he likes India also because Guerlain has named many of their products from Indian tradition. He spoke about Shalimar and how Jacques Guerlain was inspired by the tragedy of Mumtaj Mahal whom her emperor husband Shah Jahan missed so much after her death that he built Taj Mahal. Three hundred years later her story inspired Jacques Guerlain who imagined her sitting in desert and shedding tears (though she did not live in desert but perhaps people go there after death in order to meditate). Her tears would mix with the desert sand and inspire a curious soul to develop Shalimar that will give solace to generations of perfume lovers. It’s a bit ironical although that tears would inspire an indulgence product but even the tears of celebrities have power to sell products.
Ad campaigns to shape image of a brand die but the stories live on. Almost every marketer knows the story of Coca-Cola when consumers rejected the New Coke because its taste was different. Researchers present it as a case of badly designed research (branded testing vs unbranded testing) and brand managers speak about how brands become cultural icons. The New Coke failed but Coca-Cola won as a result of this story. There is also story about Coca-Cola secret-formula being guarded passionately over years. This story adds to the mystery and aura to the world’s number-one brand. Parley, an Indian company, made equally good cola under brand name Thums up in 1977 and this brand has so loyal consumers that even though Coca-Cola tried to kill it after buying it the consumers continue to ask for it. There is hardly any secret in business these days but fiction never dies.
Brands need heavier reliance on stories when their benefits are abstract. A unique product speaks on its own. iPhone and HP tablet don’t need stories because their benefits are obvious. Their advertising can also live without creativity and story. But when a marketer has to sell fashion, perfumes, chocolates etc they need to find fascinating stories.
If you stand before a crowd and take out a stone and ask: ‘How much you are going to pay me for this?’ The audience might laugh at you. But if you say, ‘This stone is from moon, how much are you going to pay for this?’ they start looking around to salute the man who will have guts and pockets to buy this. The sand has no value in the absence of the story, like desert sand had no value before embracing the tears of the queen.
Previous posts on story:
Truth Well Told
Brand Positioning As a Story
Nothing Succeeds Like Story Telling
Brand Positioning As a Story
One minute of story telling and no selling:
Tuesday, 12 January 2010
3-D people
The simplest way to look at people is only in one dimension, a person is hard worker, tough, liar, cheater, manipulative, sensitive, or aggressive. But most people are not just one type, they have multiple facets which show in different situations. A person can be sensitive and tough at the same time. A person can be boring and interesting at the same time, for example a scientist is boring for someone who doesn’t care about science but may be fascinating for another curious person.
Some advertising briefs define the consumer as Mr. Joe Somebody in order to have more focus, and they may also use DILO approach i.e A Day in the Life of Consumer. Here a planner becomes a story teller and paints a story as ‘Mr. Lonemourn wakes up at 7:00 AM, and yawns at 7:05 AM...’ The creative director is hoping to find a story in this schedule. When research presents schedule in the form of percentages it becomes even more confusing. A researcher will say ‘70% wake up late on weekends but 90% reach late to offices on weekdays.’
People are not that simple to define in the form of DILO or percentages. What may be a meaningful approach is to look at their values to choose a brand message so advertising can say how the brand adds in the lives of consumers. The story doesn’t end at value because it is just the beginning and further study of lifestyle can bring up consumer insights to connect brands better with the consumers. Recently I admired a Fairy dish wash liquid ad that shows how an old lady is preparing warm water to clean dishes better and when she realises Fairy can do this without difficulty, she changes her mind to use that water for soup. This ad has a story that consumers can related with as they would have seen their grandmothers pouring traditional wisdom in household chores but if the ad was to show a Eskimo using Fairy dish was liquid, it will amuse the award committee but confuse the consumers.
Some advertising briefs define the consumer as Mr. Joe Somebody in order to have more focus, and they may also use DILO approach i.e A Day in the Life of Consumer. Here a planner becomes a story teller and paints a story as ‘Mr. Lonemourn wakes up at 7:00 AM, and yawns at 7:05 AM...’ The creative director is hoping to find a story in this schedule. When research presents schedule in the form of percentages it becomes even more confusing. A researcher will say ‘70% wake up late on weekends but 90% reach late to offices on weekdays.’
People are not that simple to define in the form of DILO or percentages. What may be a meaningful approach is to look at their values to choose a brand message so advertising can say how the brand adds in the lives of consumers. The story doesn’t end at value because it is just the beginning and further study of lifestyle can bring up consumer insights to connect brands better with the consumers. Recently I admired a Fairy dish wash liquid ad that shows how an old lady is preparing warm water to clean dishes better and when she realises Fairy can do this without difficulty, she changes her mind to use that water for soup. This ad has a story that consumers can related with as they would have seen their grandmothers pouring traditional wisdom in household chores but if the ad was to show a Eskimo using Fairy dish was liquid, it will amuse the award committee but confuse the consumers.
Sunday, 10 January 2010
Advertising and customer experience
If someone is not aware of the Google ad-words pay-per-click advertising may not be how Google earns revenue through the search engine. They not only kept intrusive advertising out not only from search engine but also from Gmail and YouTube. Although industry experts say that YouTube is taking losses since years. They do not want to compromise on the customer experience for short term revenue gains. When advertising intrudes it takes away consumer happiness of a moment. David Ogilvy said, "I have a passion for landscape, and I have never seen one improved by a billboard. Where every prospect pleases, man is at his vilest when he erects a billboard. When I retire from Madison Avenue, I am going to start a secret society of masked vigilantes who will travel around the world on silent motor bikes, chopping down posters at the dark of the moon. How many juries will convict us when we are caught in these acts of beneficent citizenship?"
Today’s advertising is becoming increasingly intrusive and the idea of an ad on public bathrooms is considered smart. We are instinctively design to ignore noise and irrelevant stimuli, thus most of advertising intrusion is waste of money. Technology such as TiVo has already empowered consumers to bar ad intrusion. Internet gives abound knowledge on products through company, experts and consumer evaluation. One thing that consumers never regret is good experience. Google doesn’t compromise customer experience for advertising revenue. Advertising agencies will have to adopt such innovative thinking so that they can partner marketers in delivering better customer experience.
Today’s advertising is becoming increasingly intrusive and the idea of an ad on public bathrooms is considered smart. We are instinctively design to ignore noise and irrelevant stimuli, thus most of advertising intrusion is waste of money. Technology such as TiVo has already empowered consumers to bar ad intrusion. Internet gives abound knowledge on products through company, experts and consumer evaluation. One thing that consumers never regret is good experience. Google doesn’t compromise customer experience for advertising revenue. Advertising agencies will have to adopt such innovative thinking so that they can partner marketers in delivering better customer experience.
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