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January 26, 2010

Tantillo’s Weekly Winner and Loser: O'Brien & the Republican Party

Folks, without further ado.

The Winner:

Conan O’Brien is our winner of the week for sticking to his ground, recognizing the changing television environment and getting paid an enormous amount of money simply to walk away from The Tonight Show.

Along the way, he also won new supporters and fans by showing that he cared about those he worked for by insisting that even his non-contractual co-workers were taken care off under NBC’s multi-million dollar settlement.

As I’ve observed before, NBC’s mistake wasn’t that it is wrong about the traditional television model changing. Absolutely not. Broadcast television only makes sense if you have big, captive audiences and the Internet, hand held devices, cable and TIVO are doing away with these.

No, NBC’s mistake was that it was either insufficiently bold or prematurely radical in repositioning its brand.

Once NBC decided to shake up prime time, they should have remained committed to the shakeup, keeping Leno in prime time and, if necessary, sending the affiliates, who were complaining about declining lead-in ratings, some of the cash they were saving by reducing their prime time programming costs with Leno. I’m not sure that they could do this, but surely NBC could have stuck to their guns a little longer and seen whether this prime time shakeup would bear fruit in the long-term.

Barring this resolve, it would have been better for them to have simply paid O’Brien the penalty amount for not taking over the Tonight Show and kept Leno at the helm.

But why pick O’Brien as a winner? After all, he’s banned from doing TV for months. Because all along Conan knew his brand when others were doubted it and when the going got tough, he did nothing to his brand which would hurt his current Target Market and might have even gained new followers. He knows he is not a comedian or entertainer for everyone and so he builds on what he is. This is exactly what you want to do in marketing: add customers without alienating your current customers.

Moments of crisis can show a) what a brand is made of and b) the depth of commitment people have to a brand.

O’Brien won on both counts. He came across as an entertainment brand that has legs and, moreover, one who many people (judging from the outpouring of support and ratings spike) like very much.

The world really is his oyster now. He might be wooed by another network or he might finish the job that NBC started: go where no talk show host has gone before onto the Internet with a serious venture. A tech commentator in The New York Times made the point that many in O’Brien’s audience already connect exclusively with him via the web and don’t even know what time his show airs. With his NBC payout perhaps he can control his own brand outside of any network involvement, building segments financed with corporate sponsorship or some other new business model that will become the future once the broadcast model has breathed its last.
Who knows what the future holds, but O’Brien’s brand exits this past week stronger than ever and sure to claim a big piece of it.

Stay tuned.

The Loser:

In the wake of Scott Brown’s victory many people might wonder how I can single out the Republican’s as this week’s brand loser.

Easy.

The Republicans
are on the verge of making the same mistake that the Democrats did when Barack Obama was elected: thinking that the victory is an endorsement of the party when it was really an endorsement for a man and a new way of tackling the same old problems. In both cases, we saw an election of individual personal brands --not company brands (i.e., Democrats or Republicans). That was why these two candidates were winners.

Folks, once again, people buy brands, not companies!

For his part, the new senator is playing it smart. He’s distancing himself from the Republican status quo and calling himself a Scott Brown Republican.

But as for Brand Republican there is the danger that they will pat themselves on the back and continue to be the party of “no.”

In the wake of Obama’s election, the Republicans have lacked a clear cut vision of the future. Being the party of NO is simply not enough. This is like marketing a product because of what it is not instead of what it is. This strategy has been tried before. How about 7-Up…the “un-cola”? 7-Up might have gained some market share at first, but it never managed to gain too much momentum against Coke and Pepsi.

Successful brands have clear cut visions of the future that are positive not negative. End of story.

Reagan was not so much against big government as for small government and the wherewithal of the American people to make good choices if they were just left alone to do it. With a positive brand vision, consumers/voters know where the brand plans to go and grow and because they know this they become a part of the brand’s growth through their support.

What does this vision involve? Well, it needs to be based on what the GOP has always stood for: equality of opportunity but not guarantee of wealth and happiness (i.e., we’re talking about our nation’s foundational values, “the pursuit of happiness” not the automatic right to happiness).

In other words, Republicans need to make clear that they are not for government handouts, a nanny state, but they are for a society that supports opportunity, a free market and individuals willing take roll up their sleeves and take risks. They need this kind of affirmative, concrete platform to build the future of the party brand.

Scott Brown might be that transformational leader that can supply Brand Republican with this kind of foundational road map and the energy to get there. We will see. But until Brand Republican stops being a party in disarray without a marketing vision, no amount of tea party enthusiasm and special election victories will translate into long-term electoral success.

And, remember, business of entertainment and politics is always easier when you keep marketing and branding in mind.

John Tantillo is a marketing and branding expert and president of the Marketing Department of America who markets his own services as The Marketing Doctor. His book, People Buy Brands Not Companies, is being published in the first week of February.

January 25, 2010

Online Branded Communities: Misguided and Missing the Point

By Kathy Baughman & Steve Hershberger, guest bloggers

If you ask brand managers the purpose of online communities, the reply you’ll most often hear is “customer engagement.” Among marketers, this term is more prevalent than Frisbees at a dog beach.

But the real question is this: Are brands providing meaningful and engaging experiences to their customers through their online communities? Our research on 135 online communities representing 45 major brands indicates that, with few exceptions, the answer is no.

Nearly half of the brands in the study were still in the social marketing experimentation stage, showing fairly robust levels of activity but lacking an integrated strategy across multiple communities and social media. Almost one quarter of the communities were “ghost towns,” mere facades with little or no member participation.

The primary focus of the research was on evaluating how well communities took advantage of best practices to strengthen customer engagement. We were somewhat surprised to find that only 36% were utilizing a majority of community best practices. Another finding was even more startling—60% of the communities showed no signs of active community management by the brand sponsor.

Following are examples of customer engagement best practices, missed opportunities and lessons to be learned from representative online communities in each category.

Social Experimentation

Brands in this classification were well-intentioned, but usually misguided, as to how to meet customer expectations and take advantage of their participation. They often have community tabs, tools, gadgets and even Facebook and YouTube links—but there’s no “there” there. Visitors to these communities have few opportunities to share, learn and interact with each other or even with community managers.

Social experimentation was more prevalent in packaged goods and in retail than in other industries. Many seemed to confuse communities with product-centric coupon campaigns, perhaps not surprising given how the deeply ingrained this marketing approach is in these industries. A good example is Procter & Gamble’s “Pampers Village,” http://www.pampers.com/en_US/home/, which has all the trappings of a community but mostly promotes the product and the company’s “Gifts to Grow” rewards program. For example, a recent post in the Village Forum describes how to get a $10 discount on the first purchase of diapers. Although the content is well-organized and informative, member interaction is minimal and the brand does not have an active presence. When a number of posts included negative comments about the rewards program relative to the Huggies program, the community manager did not respond.

Ghost Town

As expected, these communities scored the lowest in their use of best practices. They also represented the most glaring examples of missed opportunities, because many of these brands were in industries with a large, built-in bases of passionate, even fanatical, customers (e.g., automotive and entertainment). Instead of leveraging these affinities for their products or services, the brands treat these communities as just another campaign or add-ons to product Web pages.

This was evident in the development of “Fiesta Movement” http://fiestamovement.com/, a campaign for the Ford Fiesta during which 100 young adults spend six months test driving the car, completing missions and “lifestreaming” their experiences. While flashy and hip, it has no opportunities for customer interaction. Ford has a similar promotion for its “2010 Mustang” http://www.fordvehicles.com/the2010mustang/. Although this faux community has some user generated content (“Mustang Stories”), Ford directs visitors to non-sponsored communities, and consequently misses out on these conversations. While Mustang also has a large following on Facebook (nearly 350,000 fans), it is challenging to get there from the community.


Community Overload

Only 9% of the brands studied fell into this category, which refers to brands sponsoring multiple communities for the same audience, offering too many choices and resulting in confusion. This occurred primarily among technology and consumer product companies that had several related products, which resulted in multiple doorways and entry points for their customers. Navigation was cumbersome, especially for newcomers, making it difficult to pinpoint the most relevant information.

A case in point is the “Connect with Others” tab, http://www.hp.com/#Connect, on Hewlett-Packard’s homepage, which links to 11 different “communities.” Say you want to visit the “Voodoo PC Gaming Forum.” It takes three clicks of the mouse to get there. From this forum, you’ll find a link to “The Next Bench,” which links to even more communities, “HP Envy” and “HP TouchSmart,” which aren’t mentioned on initial “Connect with Others” tab. For businesses, Hewlett-Packard has a “Business Support Forum,” a “Small Business Printing Wiki,” an “IT Resource Center Forum” and a link to an independent “HP Software Users Community,” whose members are primarily interested in business applications. With so many options and unintuitive navigation, it’s easy for visitors to get lost.

Cohesive Strategy

While the communities for most brands seemed to exist separate from each other and the social Web, about one in five brands took a more cohesive, integrated approach to their community and social media programs. These high performers typically had robust engagement tools, active community management, consistent user interfaces and cross-pollination among communities with similar audiences. As a result, their member participation levels were significantly higher than other categories.

One of these standout communities was “MySears” http://www.mysears.com/. Its tag line, “Get advice before you buy,” reinforces that this community is about helping consumers, not selling specific products. It features numerous community best practices, including prominently featured user generated content such as reviews and discussions; return/recognition motivators to encourage participation; engagement tools such as polls; and integration with Sears’ social media efforts on Facebook, Twitter, YouTube and LinkedIn.

The community is not some faceless corporation—a number of Sears employees, including those from upper management, write blogs, answer questions and personally acknowledge members’ contributions. Sears recently added the “ideas,” forum that gives customers an opportunity to submit and vote on ideas; some of the best ideas have already been implemented.


Lessons Learned

Our research indicates that many brands do not fully understand what people want or expect from an online community or the role the brand plays in fulfilling those needs.

Engagement is a process, not a destination. Although the brands in this study were in various stages of this journey, few seemed to treat their online community as a core business asset that needs nurturing in order to achieve full potential. All could benefit from a more systematic and strategic approach to community building.


Kathy Baughman and Steve Hershberger are principals at ComBlu, a Chicago-based firm specializing in advocate-based, social marketing initiatives. ComBlu helps organizations develop and execute both on-and off-domain community strategies. For more information, visit www.comblu.com.

To read more about digital communities, watch for Marketing News' special digital marketing issue in March.

January 21, 2010

Weigh in on this week's "My Marketing Solution" topic

Over in this blog's new sister e-publication, the AMA's Marketing News Exclusives e-newsletter, we're running a regular feature called My Marketing Solution in which we ask members of the marketing community to weigh in on timely marketing topics.

Here's the question from the latest e-newsletter, along with two AMA members' responses. Care to add your perspective? Just add your comment to this post. And let us know if you have any ideas for future My Marketing Solution topics.

Q: Taco Bell has launched a campaign to market its “Drive-Thru Diet Menu” offering seven menu items with no more than nine grams of fat. The company also teamed up with the NBA to run an online health and fitness program called “Driving Better Choices,” featuring NBA players and trainers sharing fitness insights. Are these good marketing moves? Can a fast food company known for its Beefy 5-Layer Burritos, Gorditas and Mexican Pizzas successfully market itself as a diet-friendly dining option, despite consumer perceptions to the contrary?

A: “I think the move towards a more health-conscious society cannot be ignored, regardless of the restaurant’s past menu choices and marketing strategies. But if KFC can do it with grilled chicken, Taco Bell can do it with a ‘Drive-Thru Diet Menu.’ The reality is people who are on diets will end up at a fast food restaurant now and again, and knowing that one caters to them over another will likely drive traffic to their doors versus those that have yet to embrace any diet-friendly food. That and with the impending legislation regarding restaurants being required to post ALL nutrition information, I think it’s a wise move. Even those not on a diet-conscious track may choose items from the diet menu if they are ever faced with the calorie count reality of their other choices.”

Katherine Brockman, PCM
President, AMA’s Lincoln, Neb., Chapter
Marketing Specialist, Firespring


“Fast doesn't have to mean fat. Smart fast-food operators have figured out that their customers' concerns about good nutrition and health are opportunities to re-position their brands in a way that's aligned with the market's needs and values. McDonald’s and Subway, for example, have shown that fast food can also be good for you, lean food. The 2009 Zagat Fast-Food Survey has rated the Subway brand as the #1 overall provider of ‘Healthy Options,’ ‘Best Service’ as well as ‘Most Popular.’ McDonald's has led the way with nutritional information disclosure, and has been a leader in the removal of trans fats from menu items. … The real key to creating a sustainable competitive advantage will be realized by those companies that can best understand the link between their various served stakeholders' values, and opportunities each company has to deliver programs that intersect with those values in a way that creates resonance and engagement.”

Ron Strauss
Chair, AMA’s Brand SIG Online Forum
Founder and CEO, Brandzone

What do you think?

Thoughts on Royal Caribbean, N.Y. Times, Boost Mobile, Ford, Sen. Brown

Our guest blogger, John Tantillo, is busily finishing a new book, so I’m stepping in to give you my two-cents on what’s been happening around the marketing landscape this past week.

What’s caught my attention (in no particular order as they say on "Dancing with the Stars"):

Royal Caribbean docking in Haiti. Have you read about this, the cruise line continues to dock on the far side of the island despite the earthquake damage on the other side, saying it’s helping the economy? This strikes me as a PR blunder, if Royal Caribbean (which I’ve sailed on and enjoyed, for the sake of full disclosure here) wants to help the Haitian economy it can donate supplies, money etc. -- which it is doing. The idea of taking people to its private resort there just doesn’t work, image-wise, I think. To the cruise line’s credit, it has been addressing the issue head-on, with a senior official blogging about its reasoning. Your thoughts?

The New York Times. Once again the old grey lady is trying to get people to pay for content, this time with a metered system akin to what the Financial Times does. Does it seem desperate, anti-consumer? Perhaps. But news outlets have to do something to get people to pay for content now that advertisers basically don’t want to anymore (in print at least). If the major print media don’t find some way to replace lost ad revenue soon, there won’t be any jobs for journalists like myself except at trade associations where we have to explain why journalists think they have a higher calling than most other professionals.


Boost Mobile. The wireless carrier hopes to make a splash with a Super Bowl ad reuniting members of the 1985 Chicago Bears in an updated version of its Super Bowl Shuffle music video. As a Chicagoan, I particularly love this one, but will this connect with the rest of the country? That Bears team had more characters than any Super Bowl champ since (the NFL has clamped down on personality among players apparently), but will the new video mean anything to today’s fans, especially younger ones who don’t remember that team? One thing’s for sure, the video already has gotten tons of media attention in Chicago, so if nothing else, Boost should get a boost in its Windy City marketing from it.

Ford. It seems every time I open a marketing newsletter or publication, I see something else about a Ford digital or social media marketing effort. Ford really seems to be getting the digital world and that’s great to see. I covered Ford, and other automakers, extensively for PRWeek in the early 2000s and knew then there were some forward-thinking folks in Ford’s communications ranks. It’s nice to see that corporate management is letting them use new tools and get away from the old auto marketing model that got all the U.S. manufacturers so disconnected from consumers.

Newly elected Sen. Scott Brown. Media mavens should be thanking him, regardless of their political affiliation. Advertising Age notes that his win will embolden other candidates in this year’s mid-term Congressional elections, and that will mean more political advertising, a needed income boost for still-struggling print and local TV outlets. Talk about the law of unintended consequences. Conservative Republicans helping the media outlets they so often lambast by stepping up advertising thanks to the upset in Massachusetts.

January 14, 2010

MN Columnist Michael Krauss in WSJ Today!

A quick shout-out to Marketing News columnist Michael Krauss for his work being cited (and himself quoted) on page B1 of The Wall Street Journal today. The article, "After Ditching Tiger, Accenture Tries New Game" looks at Accenture's efforts to rebuild after dropping Tiger Woods as the face of its brand. Michael Krauss' Chicago-based firm, Market Strategy Group, tested the ads for the company. Michael's been an MN columnist since 1998. You can read a selection of his previous MN columns here. Also, if you'd like to get more marketing perspective on the Tiger Woods issue, Marketing News Staff Writer Piet Levy wrote a great piece on it in the first edition of our new, biweekly newsletter, Marketing News Exclusives. You can register to receive the newsletter on MarketingPower.com.

January 13, 2010

John Tantillo’s Winner and Loser of The Week: Winner:Avatar (and Hollywood); Loser:NBC

Folks, without further ado.

The Winner

Avatar is the hands-down winner for reminding us of the transformative power of a great product, whether it is in consumer goods or entertainment. The movie has dominated the box office for a fourth straight week and there is no sign of it slowing down.

But more than mere box office dollars, Avatar has ushered in yet another Hollywood-saving breakthrough.

Bottom line, traditional 2-D movies have been under assault, and the movie industry —while having its best year ever in 2009— was facing the technology squeeze. Everything about the industry, from distribution to talent, is up in the air.

Paranormal Activity used a miniscule budget and two unknown actors to gross more than $100 million at the box office. What does that say about high-priced productions and $20 million stars? Moreover, Hulu and Netflix —not to mention video piracy and hand-held platforms for viewing— are chipping away at the movie industry’s business model. It might not be showing up in revenues this year, but these seismic changes will show up on their balance sheets soon.

But Hollywood is nothing if not smart, adaptive and great at making money. That is what Cameron and his game-changing Avatar has shown us once again. Fact is, every time Hollywood has detected a threat, it has improved its game and delivered a product that people want even more than the last one.

Avatar —like Thomas Edison’s Vitaphone (the predecessor to movies)— is not merely entertainment; it's an experience. Most importantly, it's an experience that you will probably not be able to duplicate in your own home anytime soon. There is something about a big screen and this kind of three-dimensional technology that brings you into another world. Forget about the lightweight plot and the clichés (basically, it’s Dances With Wolves on another planet). Avatar has become a must-see experience because it reminds us what was originally meant by the magic of movies. Avatar transports, and people are willing to pay higher ticket prices for it.

The result? Look for more theaters to equip themselves with 3-D technology and more movies to exploit it.

Hats off to Hollywood!

The Loser

The loser this week is NBC —not for its original decision to move Leno to prime time, but for second-guessing itself and moving Leno back to late night. Moving Leno to prime time was great experimentation, and in the twilight of the broadcast television business model, a smart thing to do.

Rather than rehash why NBC did the right thing in the first place, here’s a link to my reasoning from a prior post.

Basically, unlike James Cameron and Hollywood, the folks at broadcast television have been slow to see that their lucrative world is crumbling. As a result, they have been clinging to the old prime-time model rather than transitioning to the content model (i.e., the value lies in the content rather than the time slot, since it can be carried across multiple platforms and viewed whenever the viewer wishes).

Reports say that Leno didn’t do “well” at 10 p.m. By whose standards? The local affiliates are the ones who are complaining because they aren’t getting the lead-in to their evening news programs. (In looking at the numbers, I wonder if they are controlling for all the people who might be leaving broadcast television and getting their news online?) According to NBC, however, the network has made money with the move.

So what’s going on? I think what we’re seeing are the traditional broadcasters temporarily taking back ground from the visionaries at the network who see where it is all going.

Rather than yank Leno from prime time after only a handful of weeks, the network should have stuck to its original plan, which was to stand by the revolutionary move for at least a year. Apparently, the show has its problems, but rather than yank it, they should have spent time fixing it. Moreover, now they are faced with the problem of re-inventing Leno for late night since, officially at least, he is no longer at the helm of The Tonight Show.

This is a mess and reminds us of a fundamental truth about marketing: 90% of marketing is building the structure before executing your plan. NBC had the right vision in moving Leno to prime time, but they needed to do it with a) a great (and ground-breaking) show from the start, and b) the resolve to ride out the initial flack they were going to get during the transition.

Stay tuned.

And, remember, business and the business of entertainment are always easier when you keep marketing and branding in mind.

TODAY'S TANTILLO TAKEAWAY -

Ninety percent of marketing is what you do before taking your product, service or personal brand to market.

John Tantillo is a marketing and branding expert and president of the Marketing Department of America who markets his own services as The Marketing Doctor

January 7, 2010

Extra! Extra! We launched an e-newsletter!

Starting today, the Marketing News team is bringing you even more useful information with the launch of Marketing News Exclusives, our new semimonthly e-newsletter. Sign up to receive exclusive marketing industry news, Q&As with top marketers and other timely content that you can't find anywhere else. Check out all of the AMA's e-newsletter offerings here.

And join us here on the Marketing News blog to comment on the latest goings-on in the marketing industry. We want to hear from you, and we'll be publishing AMA members' perspectives in Marketing News Exclusives on a regular basis.

Please feel free to contact my colleagues and me with suggestions or questions.

Happy New Year, everyone!

Best,
Elisabeth A. Sullivan
Marketing News Exclusives editor
esullivan@ama.org


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