Communicate with Power

January 3, 2010

Customers and prospects are deluged with information – Tweets, email, ads, Facebook, direct mail, news, etc. etc.  Today, your communications needs to be consistent and create an impression. 

It’s more important than ever for businesses to build a brand that reflects their values.  It may be something simple like quality or technological expertise.  But companies are working to convey values that connect with their customers.  “Sustainability” is one example. It has increasingly become an important value for consumers — and something they look for in the companies they do business with. 

My first schooling in ‘sustainablity’ was provided by the Chief Sustainability Officer at UNH. (See cool video we did with him here:

 

Sustainability is important to the operation of that university.  It reaches far beyond recycling and smart energy use.  It includes a close look at local resources, their measured use, and their advantages over resources from far away.  It includes art and culture, believe it or not.

UNH is committed to sustainability and they ensure that they communicate that.  It’s part of who they are.  It makes a difference to many of their customers (i.e. students).  It may not be what you’re about. But it is important to consider what sets you apart.  What is the impression that your communications provide.  It’s important to make an impression today.  It’s easy for customers and prospects to overlook you entirely.

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What do you stand for?

December 6, 2009

While no obvious one-stop solution exists for the current recession, marketers do have an opportunity to successfully tap into consumers’ zeitgeist.

Gone are the days of flash, glitz and punching monkeys. Consumers today value sustainability, social responsibility and fiscal prudence. If marketers can align with consumers, they can come out of the recession with a more loyal audience than they went in with.

 

Responsibility
What message can build brand equity during this economic downturn? Economic, social, and particularly environmental responsibility. There is a call-to-action for brands to lead the charge in finding solutions for climate change. Consumers need to know their brands are working towards a common goal.

It’s not an easy time for a brand; consumers are more educated and more demanding than ever. They stand behind brands that make them feel conscious and informed. A recent Havas Media study by IPSOS found that 79% of consumers said they would rather buy from companies doing their best to reduce their impact on the environment.

And 89% are likely to buy more “green” goods in the next 12 months, with a third willing to pay a premium for those goods. While it’s not an easy time, the returns are high. A bond driving a customer to pay a premium for a similar good during an economic crisis is a bond worth establishing.

Resorting to sustainable claims isn’t enough for a brand on its own. The Millennium Generation is particularly vigilant about weak or unfounded responsibility and sustainability claims. A Hartman study found that “consumers are thinking much more broadly than marketers about what words like ‘organic’, ‘green’ and ‘sustainable’ mean. They use more positive words to describe these products, like hope, connection, simple living, authenticity, and control.”

The first step in establishing this “connection” and “hope” is to create an authentic story. And if you don’t have a sustainable message to tell today, start establishing trust through other channels while working towards sustainability.

 Something to consider as you build up that ‘authentic’ impression of exactly what your firm stands for.

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Visualizing Fun

December 6, 2009
Here’s an interesting look at one of the new advertising strategies being employed out there. In this case, a gaggle of account folks take several days on a cruiseship.  Their task is recording the fun things people are doing on board — its immediate, visceral and, I’m willing to bet, effective.  We can tune into Good Morning America or the Royal Carribbean site and see what we think.
The thing is, this is the sort of thing we’re doing at Ipswich River Media.  Video can give people a special insight into what it is that sets your organization apart.  A good quality video doesnt have to be expensive or a massive undertaking.  Sometimes it’s just a view that helps people get a better sense of what you’re all about.
The good news: you dont need to buy TV ad time.  That video will attract your web viewers.  You can show it in your lobby or give it to your sales guys.  Be smart, leverage it in your social networking efforts.  A good video can get a lot of mileage and helps you stand out from the crowd.  And if it’s fun too, well so much the better.
July 22, 2009
Advertising
The New York Times

Selling Cruises to Couch Potatoes in Real Time

 By DOUGLAS QUENQUA

 WITH apologies to Andy Samberg of “Saturday Night Live,” JWT never thought it would be on a boat.

But a client, Royal Caribbean, looking to add a sense of urgency to its advertising, decided to take a team of six JWT employees on three weeklong cruises this summer. The employees, who call themselves JWT@Sea, are creating a series of quick-turnaround TV commercials that show couch potatoes the fun they are missing as it happens. “Our challenge is to make people feel and understand that it is O.K. to take that weekend vacation,” said Michael Stoopak, business director of JWT N.Y. (or, as he prefers, president of JWT@Sea).

Seeing film of a cruise in progress “makes it feel more than O.K. It makes it feel immediate and urgent and, most importantly, attainable,” he added.

For the ads that began showing last week, a camera crew roamed the ship by day shooting candid film of actual Royal Caribbean guests and bits of scripted material, then edited the film after dark in a makeshift studio on board. They then e-mailed the files to JWT’s New York office after midnight, where another team worked through the night to complete the spots, which were delivered to the TV networks at 4 a.m. to appear that day on “Good Morning America” and “Today,” among other shows.

The real-time approach to advertising, which required doubling the bandwidth of the ship’s Internet connection, is a response to changes in consumer behavior in a time of financial uncertainty. People now are less likely to plan a two-week vacation several months in advance, and are instead waiting until the last minute to take shorter trips, Betsy O’Rourke, senior vice president of marketing for Royal Caribbean, said.

“Booking windows are getting shorter and shorter in this economy,” she said. “What we have found is that people are nervous to make the commitment.”

The first batch of ads, which Royal Caribbean refers to as “postcards,” were shown last week and can be viewed on the company’s Web site. They were shot in the format of a newsreel, with an actual Royal Caribbean guest acting as news anchor, narrating film of other guests boxing, singing karaoke and floating down a river in an inner tube.

“Debbie from Rhode Island laced up the gloves in the fitness center, and late-night explorers climbed mountains under the stars,” said Erica in the ad shot on July 15 that was shown on the 16th. “That’s the news, and I’m Erica cruising with Royal Caribbean. Why aren’t you?”

JWT, which is part of the WPP Group of companies, is planning to repeat the process on at least two more cruises in the next few months. But because the postcard ads have a shelf life of only 24 hours, the agency is also using the cruise film to produce longer, story-driven commercials that will be shown regularly. One such commercial features an 80-year-old woman who rode a zip line, at one of the ship’s private destinations. “This was something on her bucket list,” Ms. O’Rourke said.

The postcard ads are running on national network television — with a heavy concentration in New York and Miami, where much of the cruise industry’s business originates, and on travel-oriented cable networks like the Discovery Channel, the Travel Channel and TLC, the Learning Channel. For an industry with high fixed costs, companies like Royal Caribbean have “done a good job of filling their ships” since the economic downturn began, but need to maintain a sense of urgency if they want to keep them full, said Robin Diedrich, a consumer analyst with Edward Jones.

“Pricing has been the big lever that these companies have been pulling,” she said. But “companies have to be more dynamic with all their offerings, including advertising” to “persuade people to spend money on something they don’t really need.”

(Not surprisingly, the industry has seen no lift from the viral popularity of Mr. Samberg’s “I’m on a Boat” video, which satirizes the clichéd use of yachts in hip-hop culture. The video, which was first broadcast as an “SNL Digital Short” on “Saturday Night Live” in May, has 30 million views and counting on YouTube.)

Ms. O’Rourke said that Royal Caribbean had slashed prices by as much as 50 percent and had even begun offering deals on transportation to and from ports of departure. “As I like to say, it’s now cheaper to go on a cruise than it is to stay home,” she said.

The postcard ads are intended to be about more than good timing. The hope is that by showing guests partaking in more modern, youthful activities — strumming guitars on deck, for example, or working out in a state-of-the-art gym — Royal Caribbean can update the public’s image of what it means to go on a cruise.

“People’s perception of cruising had been a bit sleepy,” Mr. Stoopak said. “But when you go on vacation with Royal Caribbean, you encounter things like the rock wall, or the Flowrider, which is a surf-simulating machine, or ice skating.”

Not that everything about the cruise industry has changed. Shuffleboard is still available on Royal Caribbean cruises, Mr. Stoopak said, though it is not likely to appear in the current crop of commercials.

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The Secrets of Marketing in a Web 2.0 World

November 6, 2009

There was a terrific piece in the WSJ on “The Secrets of Marketing in a Web 2.0 World.”  Many of the lessons are being applied by the big guys out there.  But, the beauty of this Web 2.0 world is how these ideas can be applied to small and mid-size guys too. 

Web 2.0 can mean a lot of things.  First and foremost though, its about creating a website that’s easy to use, attractive, compelling.  There should be no frustration on your visitors’ part.  That creates a negative connection to you right off the bat. 

Secondly, Web 2.0 is about not just talking at your consumers, but working with them throughout the marketing process.  Engage them.  Maybe its a blog, but that can be old hat.  What about a short video about your loading dock, one of your engineers, a cool customer.  Figure out what the attributes are of your customers and how you might help them in some way…in some way that reflects your expertise and their needs. 

It’s really all about encouraging your customers and prospects, even your employees, to get involved in talking about your company, in suggesting ideas (you might hear some good ones), and feeling good about what you do.    The thing is, your competitors will start doing this.

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Smart Marketing in Times Like These

November 6, 2009

Hyundai has made huge gains in market share this year, thanks to a hefty advertising budget and a guarantee to take back cars from owners who have lost their jobs. Those gains may turn out to be temporary, but in fact the benefits from recession investment are often surprisingly long-lived, with companies maintaining their gains in market share and sales well into economic recovery.

An article appeared in the New Yorker that reflects on history’s lesson in market spending in rough times. 

In the late nineteen-twenties, two companies—Kellogg and Post—dominated the market for packaged cereal. It was still a relatively new market: ready-to-eat cereal had been around for decades, but Americans didn’t see it as a real alternative to oatmeal or cream of wheat until the twenties. So, when the Depression hit, no one knew what would happen to consumer demand. Post did the predictable thing: it reined in expenses and cut back on advertising. But Kellogg doubled its ad budget, moved aggressively into radio advertising, and heavily pushed its new cereal, Rice Krispies. (Snap, Crackle, and Pop first appeared in the thirties.) By 1933, even as the economy cratered, Kellogg’s profits had risen almost thirty per cent and it had become what it remains today: the industry’s dominant player.

You’d think that everyone would want to emulate Kellogg’s success, but, when hard times hit, most companies end up behaving more like Post. They hunker down, cut spending, and wait for good times to return. They do all this to preserve what they have. But there’s a trade-off: numerous studies have shown that companies that keep spending, intelligently, do significantly better than those which make big cuts.

In 1927, the economist Roland Vaile found that firms that kept ad spending stable or increased it during the recession of 1921-22 saw their sales hold up significantly better than those which didn’t. A study of advertising during the 1981-82 recession found that sales at firms that increased advertising or held steady grew precipitously in the next three years, compared with only slight increases at firms that had slashed their budgets. And a McKinsey study of the 1990-91 recession found that companies that remained market leaders or became serious challengers during the downturn had increased their acquisition, R. & D., and ad budgets, while companies at the bottom of the pile had reduced them.

 

 

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