« August 2006 | Main | October 2006 »

September 29, 2006

Next Generation Advertising Strategists...Read Here

Guy Kawasaki's excellent blog, Signum sine tinnitu, has a September 28 posting titled "Is Advertising Dead?" that is must-read material for marketers of all stripes. It contains an incredibly interesting video of a panel discussion at the Churchill Club themed "Next Generation Insights." It featured six Silicon Valley young adults aged fifteen to twenty four. Their comments and input are fascinating. If your business is marketing -- corporate, channel, whatever -- it is worth checking out Guy's blog for his comments.

Yes, these are well-educated students in one of the world's most technically-sophisticated markets. But, for me there are three really interesting things that leap off the screen.
- The participants connection with traditional magazines despite their techno-geography.
- Their dislike of banner ads.
- Their resentment of traditional marketing techniques.

In the July issue of my company's newsletter, Axiom, I wrote about the shifting balance of power from advertiser to consumer, and the tilting toward ad practices that provide customization, compensation, permission, more information, non-interruption and control. As Randall Rothenburg and others have explored, people aren't clamoring for "online marketing" versus "broadcast media" or other forms of marketing. What they want are marketing practices that deliver relevant messages via media that are under their control. For any skeptics, Guy's panel provides very clear visual/verbal evidence of this migration along with the coming shifts in media preferences.

Finally, he points out the value of a cool technology called Veotag that let's you create clickable hyperlinks for navigating your videos. Extremely interesting technology. The video on his blog show you the power of the technology.

Posted by jcioban at 9:50 AM | Comments (1) | TrackBack

September 26, 2006

Beer For Bags

Here's a promotion that proves that small business ingenuity knows no bounds. Originally reported on CNNMoney.com on June 6, 2006, Australian marketer Crumpler, a maker of quirkily-named messenger bags, allowed customers to trade selected beers for actual bags. For example, a case of Leffe and a bottle of Chimay got participants a $95 Complete Seed bag, while a case of Coopers and two cans of Foster's could be paid for a Barney Rustle bag, which retailed for $85. No joke.

The limited time promotion was designed to increase brand awareness and get their name out to their target audience and the company reportedly traded around 600 bags for beer. The owners believe the promotion will develop measurable new business in the future. The promotion was completely in line with the brand identity for the company, and generated significant foot traffic at retail.

Just one more example of how smaller companies often innovate their way to success in the face of more established, well-heeled competitors.

Posted by jcioban at 8:43 PM | Comments (0) | TrackBack

September 18, 2006

Zune Announced. Zune Already Obsolete.

Microsoft just announced its launch plans for Zune, its iPod competitor. Read about it at enGadget. And now the fun begins because market changes are already threatening the product's future. Welcome to the world of the "next big idea." If you are a B2B marketer stuck doing things as you have always done them, think about the pace of change in industries like music distribution.

What's eating Zune? The Wired Blog Listening Post noted that Rhapsody DNA was announced on the SanDisk Sansa e200. If the Rhapsody DNA reference doesn't mean anything to you, let me explain.

I have a Sonos music system at home. This past weekend, I updated the software to get the new tight integration with the Rhapsody music service. I can now control access to millions of songs and a vast library of artists from a wireless handheld device that let's me play jazz in the dining room, adult alternative in the living room, and rap on the deck...or whatever combination my mood dictates. I pay under $9 per month for access to the full library and only pay for individual songs if I want to copy then onto a portable music device outside the Rhapsody framework.

This tight Rhapsody integration with my Sonos system is in-part courtesy of Rhapsody DNA - a slick example of Web services that extends the firmware of a personal music device by introducing Rhapsody functionality onboard. All told, it's like having commercial-free satellite radio on my system, only I control the programming.

Over the past 2-3 years, music distribution has been irrevocably altered to account for entirely new processes that are permanently altering how we procure and manage music in our homes. We subscribe, rip, and mashup our music to suit our individual tastes and moods. Along the way, terrestrial radio, satellite radio and other structured media have been forced to continually evolve their business models to adapt.

Compare that with the processes you use to support your distribution netowrk or field sales teams. Are you continually assessing how changing customer expectations are modifying sales and support needs in the field? If not, think about the Zune team...celebrating with champagne in one hand and a case of Red Bull in the other for the all-nighter they'll be pulling to define next generation strategy.

Posted by jcioban at 7:07 PM | Comments (0) | TrackBack

Dell 2.0: What Does It Tell Us?

In his online editorial "Is Dell Ready for the Channel?" in eWeek's Channel Insider, Pedro Pereira stated "As Dell may have finally realized, a direct model only gets you so far." Well, on both sides of this argument, there is a lot of wailing and gnashing of teeth. However, the reality remains that instead of black-and-white answers, lots of industries are going through the grey zone of direct/indirect battles.

Hubris and past success set Dell up for an ignominious fall, but their situation is not about bloggers beating them down or batteries igniting. (BTW...check out this cool new flame retardant computer wrap...another sign of market ingenuity?!?!?!) Dell today is a product of a corporate culture where success was measured by bottom line growth created through process efficiency. Dell spent more energy cutting costs than building broad value in its customers' eyes. As competitors began to match its process efficiency, the company looked devoid of the innovation and support that rivals like HP could suddenly deliver at competitive prices.

This issue has long been a point of contention with manufacturers, financial institutions and other solutions providers desperately seeking more direct customer access, but needing local presence for both sales coverage and service support. Maybe even more critical in markets like IT, OEMs need the application specific expertise of diverse channel partners to cover the expanding array of business needs that customers express.

Despite this obvious symbiosis, we continually hear companies express "Oh, that's just not a priority now" when discussing channel support programs. It is painful to see channel partners continually dismissed as "not skilled enough" or "not strategic" when they could become a vital component in delivering true customer relationship management. It is tough line to walk, since failure to build the core brand and overcommitting to independently branded channel partners can lead to irrelevance in the marketplace. Nevertheless, the Dell freefall is a sobering lesson in customer service for many companies that believed that the direct model was the only sure way to get control of their market presence.

Posted by jcioban at 8:22 AM | Comments (0) | TrackBack

September 12, 2006

Can You Digg It?

I have become fascinated with the growing shift toward user-created content. After reading about Digg.com's Silicon Valley brat-pack founder Kevin Rose, I looked into the site in more detail. If you are not familiar with a user-driven, social-content Website, don't feel left out. Then, I found Reddit.com, yet another user-powered content community. All this while Katie Couric continues to be skewered for bastardizing "real" news by mainstream media (Note to MSNBC...send the check to my personal account for referring to you as mainstream) and the less august media.

Add-in YouTube.com's powering of the user-created video content (who wouldn't want their 15 seconds of fame) and the dramatic shifts in the way people judge "information/news" value becomes more apparent. At least, that is, for the Gen Y and younger audiences. It will take some time to ripple into the mainstream, but Katie's request for audience participation in creating a sign-off message is not misguided...in fact, it probably doesn't move quite far enough to make mainstream America wake-up to the changes coming.

Before you go crazy on me...I am one to believe in the value of a trusted editor of information. There is too much "data" and "information" for individuals to filter through, so we need to find trusted editors. Wikipedia is an interesting experiment, but I still value having some trusted person or organization accountable for veracity. Of course, as a blogger that is part of what this community is about -- proof that even this 49-year old traditional news consumer has found value and interest in adding new "filters" into my media stream.

For me, the marketing lesson is in the opportunities to leverage the empowerment and interactive desires of this evolving audience -- to engage them -- with marketing, as opposed to making it a passive activity. This Wired magazine article is worth reading to see how people are exploring the space. So, if you digg it, then get with it, man. (Ouch, that flashback actually made my fingertips burn.)

Posted by jcioban at 7:21 PM | Comments (0) | TrackBack

September 11, 2006

Wikipedia Rules (Marketers Take note!)

I saw an interesting article on Wikipedia in the September 11 issue of Advertising Age that was particularly resonant because I had noticed the same phenomenon last week. Wikipedia, the open-source encyclopedia on everything, has been showing up remarkably high in many Google, Yahoo and other searches. Like it or not, for marketers Wikipedia is now more than a novelty. The Wikipedia entry for Wal-Mart, replete with a section titled "Criticism," gives you a quick sense of what I mean. The Ad Age article provides some perspective on dealing with the good and bad of Wikipedia.

BTW...don't know what Wikipedia is?? Try their own definition on for size!

Posted by jcioban at 10:39 AM | Comments (0) | TrackBack

September 7, 2006

I Want My BudTV.

Thanks to AdRants for queuing me on this one. As reported by the AP on September 6th, Budweiser's latest foray into the online world will be... BudTV. Due to launch the day after Super Bowl XLI, this online entertainment network will feature everything a red-blooded American male aged 21 to 34 needs to know about all things Budweiser.

The debate over the encroachment of advertisers into the domain of media will no doubt take up many column inches and pixels of space in the months ahead. Debates aside, the growth of branded entertainment is a proxy on the failures of mainstream media to deliver consistently compelling content to audiences becoming increasingly comfortable demanding their own unique, interactive entertainment experiences. Into the void enters advertisers.

Look at A-B's prime audience: young males. ESPN excluded, there is a dearth of original, non-formulaic content being distributed for these viewers. The business aspects aside, perhaps most disconcerting to me is that advertisers are rapidly becoming the arbiters of broader and broader aspects of culture. We learn what is good new music from Starbucks, whose Salon concept further expands the company's foray into music promotion. Women learn how to be "empowered" and "feminine" all at once from Nike. Now, we'll turn to Bud for comedy, reality programming, sports and more.

A-B officials indicate that Bud TV is marketing, not a true entrance into for-profit entertainment. I defer judgment until their audience stats are calculated. In the meantime, I would debate the effort's value for the brand over time. This will not be cheap -- $30MM for starters. But, today's Gen Y / Millenials love doing traditional things in new ways. So, Bud TV may catch on. But then what? Gen Yers may not have developed brand loyalties yet, but they are notoriously fickle. Once you've fragmented the ad market even more, how do you continue to feed the beast? Of course, in fairness to advertisers struggling with reaching core audiences across wildly fragmenting media, what's better than creating your own destination medium? Welcome to the intense dynamic of the Web 2.0 era.

Good luck, A-B. We'll tune in later to see how it all works out. In the meantime, pass me a tall, cold one. I'm thirsty after writing this.

Posted by jcioban at 5:23 PM | Comments (0) | TrackBack

September 2, 2006

The Big Car Company That Couldn't

Memo To: Bob Lutz, Vice Chairman, General Motors

You buy your first car of a brand because of image, design or brand association. You buy additional cards of that brand because of your total ownership experience.

I read your posting on General Motor's FastLane Blog this morning. For years, I purchased cars from GM and Chrysler despite underwhelming design and moderate quality -- I really wanted to support the domestic auto industry. This past year, however, I purchased a Pre-Owned Mercedes (the smallest, cheapest model they make), and getting me back as a customer seems unlikely. I appreciate your commitment to style/design and quality, but until you and your dealers get the customer service part right as well, you are still at risk.

GM lost me as a customer 6 years ago when I went to the local Buick dealer and was treated with disdain by people who felt I was a tire-kicker. I spoke to a sales rep who had his feet up on his desk and was leaning back in his chair with a look of annoyance that I was wasting his time. (I ended up buying a Dodge.) Compare that to my Mercedes experience. A friendly greeting by a receptionist, a couple of questions, then connecting me with a sales associate. From the outset, the sales associate emphasized what it meant to be a Mercedes owner. At the time, I thought it was all shtick. Then, I purchased.

First came a Thank You/Welcome package from Mercedes. Next came multiple letters describing owner programs. Then, a large package arrived with a personal Thank You letter from the dealer owner along with a framed 8" x 10" photograph from a local artist. On my birthday, I receive birthday cards. On the purchase date, I get an anniversary card. I have had two surveys sent to me. I have had loaner cars, pick and drop off service, and I get follow-up inquiries after a service appointment to check that I am satisfied. In short, the owner experience has been stunning, helping me overlook the car's shortcomings and quality defects.

Over and over, I see companies like yours make the same mistake. You design and build an acceptable (or even better) product, then blow the customer experience because of ineffective coordination with the distribution channel. I know your dealers are independent businesses, but instead of treating them as inventory stops, you need to work together to help them understand their critical role in customer relationship management. They are the people closest to the customer, and your company cannot succeed without them doing a better job. In service intensive businesses like the automotive industry, your customer service experience lives on long after the car's design becomes outdated.

Sincerely,
James R. Cioban, President, Cierant Corporation (and former GM customer)

P.S. In meetings, how do you guys actually rationalize the Hummer??? ;-)

Posted by jcioban at 10:47 AM | Comments (1) | TrackBack