Apocalypse Now and Marketing Myopia

Bob Garfield wrote a lead piece in Advertising Age documenting the collapse of the traditional media model. He noted the demise of major media powerhouses like The New York Times, WSJ, San Francisco Chronicle, the Tribute Co., Clear Channel and many others. He addressed the difficulty with reaching consumers with the rise of DVRs, satellite radio and the iPod. He pined over the lack of control we all have over brands as consumers have taken the reins. The piece officially signaled the dawn of a new era in advertising.

Unfortunately, industry guru Bob was only four years late!! Cult Marketing wrote that story four years ago when it issued the Cult Manifesto and distributed it to every major news outlet in the country. Not one published it. Our only pleasure is in being right. Want a copy, send us an email.

Trout & Ries coined the term “Marketing Myopia” in their landmark book Marketing Warfare. They pointed out how the railroad industry thought of itself as being in the railroad business rather than the transportation business. Seems like advertising agencies think of themselves as being in the advertising business not the customer development business.

The Steinbeck Factor™

“The best laid plans of mice and men often go awry” – from the Robert Burns poem, used for a novella title by John Steinbeck.

In marketing parlance, it means: sophisticated marketing plans undermined by an ill-advised comment from an associate. The perfect retail design butchered in the field. Product failures. Lousy service. Et cetera.

There is a corporate vision and then there is street reality. This gap is what we call the Steinbeck Factor. It has frustrated the corporate world for years. So, how do you fix it?

Cult Marketing has a process we call Cultification, defined as: The process by which a brand is optimized at all touchpoints in order to create customer fanatics.
The first phase of the cultification process solves a major piece of The Steinbeck Factor – understanding what really goes on at the consumer level. Cult has created a propriety method of assessing, measuring and evaluating the critical factors that undermine and weaken your brand. You can’t fix something if you don’t know it’s broken. These insights are then converted into actionable strategies, tactics and ideas for all the touchpoints that impact the consumer.

Give us a buzz and we’ll give you details on how we do it. 614-318-8012.

Demise of Apple?

I suggested that Ford was toast in a blog from 2006. Now add Apple to the list. One of the great cult brands in history is turning it’s back on its core (excuse the pun) customers and pulling out of Macworld next year. Steve Jobs is not giving the keynote address. Philip Schiller, Apple’s senior vice president of Worldwide Product Marketing is. Wow, can you feel the excitement?

Imagine if Harley pulls out of Sturgis because it is not cost efficient.

Brands are all about connecting emotionally. No one connected more emotionally than Apple fanatics that stayed with the company when no one cared. These are the people that go to Macworld. I believe this marks a sad day in Apple’s history.

Where is the Creative Line?

The debate between edgy and inappropriate creative has been hotly disputed over the years. Is any PR good PR? Does awareness of any kind justify the means?

It’s well known that most of the corporate world has suppressed the edgy type of creative that agencies love. It’s pretty rare that a client says “more cowbell.” A ton of bold and brilliant concepts that have landed on the cutting room floor.

We suggest that the time has come to change the way companies (or weak agencies) think about creative for a number of compelling reasons.

Reason #1: Without awareness, you just wasted your media dollars.
While this is pretty obvious, it is not often embraced. Companies are often content with bigger media budgets and lousy or lukewarm creative. It’s like the old joke “The food is terrible here. Yes, and the portions are so small.” For some reason more bad stuff has been acceptable.

Reason #2: The fragmentation of the media mix
We all know that consumers are zapping TV spots, self-editing with DVR/TiVo technology, listening to commercial free Sirius/XM radio and spending more time in the digital space. Creative needs to be targeted and emotionally engaging enough for people to want to watch it.

Reason #3: Big budgets do not equal good work
We would argue that the reverse is true. Too much of a grandiose TV or print budget gets agencies thinking in a different way. Big locations, special effects, etc. All sizzle, no steak. In today’s economy, it’s actually irresponsible. Ask the Big 3 in Detroit.

Reason #4: The Einstein Theory
Albert said, “Problems cannot be solved with the same level of thinking that created them.” We call this creeping incrementalism. Try something or someone new.

Reason #5: Loosen up and have fun
What is the worst that could happen? Let’s take a page out of Branson’s book and re-think everything. Create something someone will love, not something no one will hate.

Shake the Curse Campaign

Is it possible to create a viral campaign and measure its impact? We’re about to find out with an experiment in action called Shake the Curse.

Background: When the Columbus Blue Jackets came to town, the excitement levels were off the charts. There was buzz everywhere, the team had years worth of sellouts, and ESPN voted Nationwide Arena the best experience in all of major sports. Now, in 2008, the team is at the bottom of the barrel in attendance, and the in-arena experience is very quiet and almost somber. So what happened and how do you fix it?

For one, the team has been terrible since the beginning, having the worst record in the NHL over the past 7 years since its inaugural season in 2000. Two, the quirky, self-deprecating, funny marketing that was produced in the beginning (by my former agency) has turned into a fairly well produced but completely non-engaging effort called “Carry the Flag.” It absolutely does not connect with the fans on an emotional level.

Cult Marketing decided to take matters into its own hands. We initiated a viral campaign called Shake the Curse. The idea is to give fans something to latch on to, something to believe in.

Here’s how it works: We presented the notion that the CBJ is cursed and therefore cannot make the playoffs. We blame various insidious things such as the fact the arena was built on a state penitentiary site. So, how do you break the curse?
STCurse.jpg

We hired a spiritual releasement specialist to exorcise the evil spirits from the arena. We engaged in several cleansing rituals, created a web site (ShakeTheCurse.com) and created a method for shaking the curse which includes blue wigs and shakers. Instructions, viral videos, results and a community site are all online. So far, the team is 4-2-1 since the campaign started on November 5.

Can the effort go mainstream? Check back and see.

How do you inspire Brand Evangelism?

Every company wants more buzz through viral marketing. How do you approach it? Who can handle it for you? How do you measure success?

There are several key issues that must be addressed in the process.

#1. How do you define brand evangelism? What are the criteria that must be met to be considered a cult customer?

#2. How do you measure your level of Brand Evangelism?

#3. What techniques and ideas can you deploy to inspire and encourage your cult customers?

#4. How can evangelism translate into more sales?

#5. Who will manage and oversee the process of developing cult customers?
Interested in more information? Call Doug at Cult Marketing at 614-318-8012.

Do you have a fat strategy?

Most everyone has heard that the U.S. has a weight problem. But, it’s more than just a health care problem, it’s also a big issue for retailers. Cult Marketing just wrapped up a customer study for Tweens Brands (Justice and Limited too stores, girls 7-14) and this issue popped up to the forefront of the strategic discussions.

Let’s recap the latest statistics on the U.S. weight trends. According to a new Johns Hopkins Bloomberg study released in July, 2007, in just 8 years (2015), 75% of adults and 24% of kids will be overweight – with a significant number of those being obese. Women 20-34 are the fastest growing members of the overweight club.

How does this impact retailers? As we know, many retailers, clothing designers and the fashion industry in general has eschewed the beefy customer. The fact is clothes look a hell of a lot better on skinny celebrities or models than they do on the average overweight customer. Many retailers like Abercrombie & Fitch and Victoria’s Secret limit their sizing because they do not want to ruin their brand image. They only want good-looking thin people wearing their stuff. But, where is the “Tipping-the-scale-point?”

Maybe these “thin” retailers have it right. Maybe we need to hold the ideal figure up there as a target to shoot for. Why give up the fight? A&F shows teens and twenty-somethings who are healthy and active. What’s wrong with that? It is aspirational. It certainly is part of a brand strategy.

Or maybe it’s not smart retailing, and they are missing out on a ton of sales while not being socially responsible and sensitive. Brands like Oprah and Chicos have made a bunch of money being inclusive and supportive. Kellogg’s, McDonald’s and others are changing their entire strategies due to the obesity pressures.

So, what are your brand values as it relates to the weight issues? Interesting topic to debate within your retail world.

Upfronts

Let the schmoozing begin!

The drop in TV upfront spending is another sure sign that the traditional mass model is in trouble.

A Dangerous Analysis

Return on Investment: the ratio of money gained or lost on an investment relative to the amount of money invested. Pretty easy to measure in a controlled financial environment. Impossible – and potentially dangerous – to measure in a marketing environment.
The long-standing quote from Wanamaker – “I know that half of my marketing is wasted, I just don’t know which half” – is really a brilliant insight.

Issue #1: The core of the problem is that numerous variables that impact the marketing success of an organization cannot be directly measured. Therefore, if you develop a marketing plan based on the concept of ROI, it forces you to focus on measurable tactics like direct response, couponing, and sales promotions. In the meantime, key factors that most strongly influence the brand are ignored. For instance, how do you measure word-of-mouth and buzz, associate behaviors, consumer-generated marketing initiatives, PR, store or product design, product quality, location, cultural differences, innovation, and customer service? In the new age of consumerism, the ROI approach is the wrong approach.

Issue #2: Advertising agencies and most marketing departments don’t really get involved with all this stuff anyway. Agencies can’t make any money on most of this stuff. Marketing departments are too “siloed” to look at the big picture. They get involved with how to spend (waste) money on expensive initiatives like TV advertising. A recent visit to a prestigious European car maker was typical. The head of customer and loyalty marketing has no influence over the service department. Yet, after purchase, the service department is the main point of contact for the car customer. Is this crazy or what??

Solution: Call Cult Marketing and we’ll explain how our approach breaks down the corporate silos and helps you understand and create a holistic brand experience that enhances the entire customer brand experience.

Cult Marketing and Strategy

The word “Strategy” has been causing problems in the world of marketing for years. Strategy is about planning or carrying out something to achieve a goal, originally from the military term for conducting a battle or war. So, marketing strategy is really about a plan or implementation. The problem with strategy is it is used too often in the creative context. In many cases, so-called strategy people within companies or agencies are the first people to work on what is called “Brand Strategy.” Unfortunately, this is putting the cart before the horse.

Before you have a strategy, you need an idea, hopefully a creative one. And, unfortunately for most strategy people, creativity is not rational, and not cognitive. Strategists are almost always cognitive/rational types. You see the problem.

Here is how it really works in ad agencies, and in most creative service organizations. The strategy group is assigned the task of coming up with a “strategy.” This so-called strategy usually involves things like brand positioning, USPs, points of differentiation, and other lame things designed to kill or limit good ideas. Then they meet with the “creatives” who comes up with an idea based on the strategy, or at least they are supposed to. In many cases, what they come up with is a cool idea that is just a cool idea. Then some strategist has to go back and re-write the strategy to reflect the cool idea. Happens every day, and don’t tell me it doesn’t.

I’d like to know the brand strategy for some campaigns that have been running like the Bud Light “Real Men of Genius” commercials or “The Burger King.” Is “Be funny” or “Create a weird, freaky dude” a strategy?