Saturday, February 02, 2008

Breaking News: The Hindu Vs Times of India

Being an avid reader of The Hindu all these years, for the first time I am going to guess its headlines! Or rather what they should or would be doing in response to TOI’s entry.

TOI is indeed wooing consumers with a reduced subscription fee and some freebies thrown in as well. They might end up picking a few trials.

But what matters is who would be the first buyers of TOI – the innovators, so to speak. I believe the initial TOI triallists would be largely from The Indian Express or Deccan Chronicle. These guys are flirts. They flirt with papers. They just flirted with DC in response to their reduced price offer, didn’t they? And here is another newspaper, a supposedly reputed one, offering a paper at around the very price they are paying for currently!

Oh yes, a few Hindu readers too would give TOI a try succumbing to the novelty factor, reduced price and freebies. But the question is, ‘will they stop buying The Hindu’? My take on that would be – NO. I think TOI would end up being the second paper in their households. Many of us picked up Deccan Chronicle induced by the ‘Rs.99 offer’. But that didn’t stop us from buying The Hindu. We read DC as the second paper and when we realized The Hindu was unquestionably better, we stopped renewing the DC subscription.

Which is why I don’t suppose The Hindu should panic and reduce its price; not right away at least. After all, it not only enjoys leadership. It also entertains loyalty.

So what does this mean to The Hindu?

For starters, it gives them time. Time to understand how the few initial triallists perceive TOI; its contents; its gossips and whatnot. If TOI brings in a few new things that consumers perceive The Hindu lacks, they can always add it without affecting the brand’s basic positioning and thrust. For instance, if TOI brings in breeziness and gossip that appeals to the young, The Hindu can always add it as a separate supplement. That way, ‘The Hindu’ could bridge the need gaps without breaching its basic positioning.

The Hindu should also counter TOI with an Integrated Marketing campaign of its own. Not just through advertising. But also through a concerted effort in schools with its Young World and Quest supplements; a well-orchestrated programme in A&S colleges, B-Schools, Engineering Institutions with its Education Plus; a direct marketing effort in the very neighbourhoods TOI is targeting; convening special events, activities around The Hindu’s core positioning. All this and more to counter TOI’s launch efforts and also extend its lead – both in market and in mind terms.

Does all this sound too simple? Would The Hindu be made vulnerable if doesn’t match TOI’s price, at least initially? Am I underestimating the power of TOI?

TOI is a leader all right. But that’s in a distant market. Far away from my mine and hence my mind. Here, The Hindu is the big shark. TOI is a new entrant – a small fry. You could say, “But look at what TOI did to Hindustan Times in New Delhi.” Remember, The Hindu is no Hindustan Times. Hindustan Times is a newspaper. But The Hindu is a habit! Didn’t they say old habits die hard!

And finally, from a broader strategic standpoint, The Hindu should jettison its conservative style and start becoming aggressive. To begin with, they need to now go and hit TOI where it hurts them most – Mumbai. The best way to counter competition is to hit them in their biggest market. That slows them down. I am not, for a minute, saying The Hindu, if launched, would eliminate TOI in Mumbai. But it would certainly stop TOI’s aggression in other markets if their own home turf were invaded.

Well, these are not what I expect The Hindu to do. Just a few things I would want them to do!

Will they do it? What would happen if they did? And what if they don't?

Time will tell. It’s interesting times ahead!

Tuesday, January 22, 2008

The Hindu Vs Times of India

Times of India is apparently readying itself to launch its Chennai edition. At Rs.2. These are unconfirmed reports though.

The average Madrasi has heard this many times before but this time it seems to be more real. TOI has been handing over advertising materials and soliciting subscriptions in select neighbourhoods in the city.

A few newsagents I spoke to confirmed TOI’s entry. One of them said something that is the subject matter of this blog: “Sir, The Hindu is planning to reduce its price and sell at Rs.2, to counter TOI”.

Assuming TOI would price itself at Rs.2, will the venerable Hindu reduce its price?

Why should it, some may ask. After all, it countered Deccan Chronicle’s Re.1 assault without reducing its price. And successfully too.

But this is TOI - with a respected pedigree and roaring circulation that has made it the leader among English newspapers in India.

Will ‘The Hindu’ be cheapening its image if it panicked and reduced its price?

Or, if it didn’t, and stay put at its current price, will its die-hard users ditch The Hindu. After all, The Hindu has been the reason why most Madrasis woke up! Will they wake up to TOI instead, to save a few bucks.

Will TOI pull the rug under ‘The Hindu’? Or would the grand old man of Mount Road send TOI packing back.

What do you think The Hindu should do?

Thursday, December 20, 2007

The 2007 Marketing Maayaajaalam Awards

The 2007 Marketing Maayaajaalam awards for various categories in marketing and advertising have been announced. By me, of course!

…and the winners are…

Marketer of the Year

Maruthi Suzuki (For ramping up its image, literally, and growing into competing with the big boys viz., GM, Ford and Honda. First, from the small Alto to a redefined Zen growing into the superb Swift and now culminating into the sexy SX 4. The Maruthi men are back!)

Best Brand Launch of the Year

Sivaji (For spectacular hype, superlative build-up, smart distribution, slick presentation and superb packaging…. a tired and hackneyed story notwithstanding)

Best TV ad of the Year

The HDFC Prudential Campaign (If not for anything, at least for consistently building on a singular creative idea – Hold your head high up with pride)

Worst TV ad of the Year

Bingo (The guys at O&M who made those ads claim they attempted humour. In that case the Bingo ads win hands down in the ‘Sick Jokes’ category)

Best Baseline of the Year

Sivaji – The Boss (For capturing the essence of the film and its hero in two words. That the baseline proved yet again who the evergreen boss of commercial success in the Indian film industry is, is another matter)

Expected Success in 2008

Krd Rys (With increasing nuclear families, working wives and growing preference for healthy food, a smart idea from Hatsun Agro Foods)

Expected Failure in 2008

Dettol Herbal (Can Dettol and its inimitable hospital smell ever be herbal? Who are the geniuses in Reckitt Benckiser kidding?

I don’t expect you to agree with this list. Feel free to feedback. That’s the point of this blog!

And oh yes, here is wishing you a SUCCESSFUL 2008!

Wednesday, December 12, 2007

Neuromarketing: What lies ahead?

The early experiments in this field have already started to worry anti-marketing activists, some of whom are already mobilizing against the nascent field of neuromarketing. Gary Ruskin of Commercial Alert, a non-profit organization that argues for strict regulations on advertising, says "a year ago almost nobody had heard of neuromarketing except for Forbes readers." Now, he says, it's everywhere.

Over the past year he has waged a campaign against the practice, lobbying Congress and the American Psychological Association (APA) and threatening lawsuits against BrightHouse and other practitioners. He says it could eventually lead to complete corporate manipulation of consumers -- or citizens, with governments using brain scans to create more effective propaganda.

Could brain imaging show marketers how to effectively control our minds?

BrightHouse’s Reiman says no. “There is no possibility that in my lifetime we’ll be able to peer into brains and make them buy more. But businesses that do not use neuroscience are experimenting with failure. These studies will help to position companies as more consumer friendly.”

Chris Frith, Professor of Neuropsychology at the Institute of Neurology in London, prefers to look beyond the hype. “People have the idea that because you are using big, expensive equipment it is more real than asking what people think. They think they have got an easy way to get the information the want – a short cut. But it is very important to consider the subjective measures. If we see from scans that someone is happy, but they say that they aren’t, who do we believe?”

Montague agrees that ultimately behaviour is what matters. “Brain imaging isn’t more accurate than other techniques. You will never get rid of psychology and behavioural studies – that’s your ultimate end. But you do want more insight and imaging can provide it.”

Montague predicts that fMRI will become a tool for testing packaging, advertising and other promotional material. “If I am an auto manufacturer and want to change the curvature of the wheel well of my car model, how will my target 35 year old male respond? I will supplement my research with fMRI. And if I was buying something, I am ok with them using brain imaging to make me happier.”

Reiman prefers to dwell on the fundamental nature of neuromarketing research to date. “We can’t understand thoughts, but we can interview the brain and we expect what we will find will change the way companies work.”

Hopefully, for the better!

Tuesday, December 04, 2007

Nuromarketing - Experimental first steps

Some companies are commissioning their own fMRI studies à la Montague's test.

In a study of men's reactions to cars, Daimler-Chrysler has found that sportier models activate the brain's reward centres -- the same areas that light up in response to alcohol and drugs -- as well as activating the area in the brain that recognizes faces, which may explain people's tendency to anthropomorphize - attribute form or personality to inanimate products like cars or other such lifestyle products.

Steven Quartz, a scientist at Stanford University, is currently conducting similar research on movie trailers.

Political advertising is also getting in on the game. Researchers at the University of California, Los Angeles have found that Republicans and Democrats react differently to campaign ads showing images of the September 11th terrorist attacks. Those ads cause the part of the brain associated with fear to light up more vividly in Democrats than in Republicans.

While neuroscientist Montague's Pepsi Challenge suggests that branding appears to make a difference in consumer preference, BrightHouse's research promises to show exactly how much emotional impact that branding can have.

Marketers have long known that some brands have a seemingly magic appeal; they can elicit strong devotion, with buyers saying they identify with the brand as an extension of their personalities. The BrightHouse research is expected to show exactly which products those are.

"This is really just the first step," says Meaux, who points out that no one has discovered a ‘buy button’ in the brain.

But with more and more marketers peeping into the minds of their consumers, could that be far off?

(To be concluded)

Saturday, November 24, 2007

Neuromarketing - Continued

Neuromarketing is the study of the brain's responses to ads, brands, and the rest of the messages littering the cultural landscape. Montague had his subjects take the Pepsi Challenge while he watched their neural activity with a functional MRI machine, which tracks blood flow to different regions of the brain. Without knowing what they were drinking, about half of them said they preferred Pepsi.

But once Montague told them which samples were Coke, three-fourths said that drink tasted better, and their brain activity changed too. Coke lit up the medial prefrontal cortex - a part of the brain that controls higher thinking. Montague's surmise was that the brain was recalling images and ideas from commercials, and the brand was overriding the actual quality of the product.

The work of Montague and other studies prove that branding goes far beyond images and memory recall. The medical prefrontal cortex is a part of the brain known to be involved in our sense of self. It fires in response to something – an image, name or concept – that resonates with who we are. Something clicks, and we are more likely to buy.

For years, in the face of failed brands and laughably bad ad campaigns, marketers had argued that they could influence consumers' choices. Now, there appeared to be solid neurological proof. Montague published his findings in the October 2004 issue of Neuron.

And an entire new field, Neuromarketing, was born!

But the secret of Coke’s marketing success has yet to be solved. “We have shown that the Coke brand has a powerful influence,” says Montague. “But we haven’t asked what that is yet. Is it something simple and stupid like the red can, the curvy script or the hard consonants, or something much more complex.”

Still, the idea that neuroscience has applications for business is causing a wave of excitement in the marketing sector. It prompted the BrightHouse Institute for Thought Sciences to establish a Neurostrategies division and conduct fMRI research.

(To be continued)

P.S: Notes and quotes in this series on Neuromarketing have been borrowed heavily from various research writings on the subject. My contribution is close to nil!

Sunday, November 04, 2007

The Pepsi Challenge

Strange things happen in America. Stranger things happen in marketing there. For instance, while Coke is the leader in the American market, most people prefer the taste of Pepsi in blind tests!

The Pepsi Challenge has been an ongoing marketing promotion run by PepsiCo since 1975. The challenge is designed to be a direct response to critics who allege that Coca-Cola and Pepsi-Cola are identical drinks, with no meaningful differences.

The challenge took the form of a taste test. At public contact points, a Pepsi guy set up a table with two blank cups: one containing Pepsi and one containing Coke. People were encouraged to taste both colas, and tell which one they prefer. Then the Pepsi guy revealed the two bottles so the taster can see whether they preferred Coke or Pepsi. Not surprisingly, or maybe surprisingly, the preferred brand was Pepsi.

Ever since the famous findings of the Pepsi Challenge, marketers have argued that the difference between this perception and reality was the handiwork of ‘Marketing’. In other words, their work was making a difference! How else could Coke come on top?

The Pepsi Challenge, subsequently, moved into TV during the 70s and 80s where a series of ads showed how Americans preferred Pepsi to Coke.

But 30 years after the commercials debuted, neuroscientist Read Montague was still thinking about them. Something didn't make sense. If people preferred the taste of Pepsi, the drink should have dominated the market. It didn't.

So in the summer of 2003, Montague gave himself a 'Pepsi Challenge' of a different sort: to figure out why people would buy a product they didn't particularly like.

What he found was the first data from an entirely new field: Neuromarketing.

(To be continued in my next post)

Tuesday, October 09, 2007

Classifieds. This time from the Church!

These are actual classified ads released by a few churches from around the world. Note, there is no offence intended on any religion or characters. I am no Tamil Nadu C.M to be barbaric enough to cast aspersions on any religious sentiments.

Just laugh at the gaffes. Over to the church classifieds!

"Open seven days a week and weekends."

"This afternoon there will be a meeting in the South and North ends of the church. Children will be baptized at both ends”.

"For those of you who have children and don't know it, we have a nursery downstairs”.

"Tuesday at 4:00 PM there will be an ice cream social. All ladies giving milk will please come early”.

"Wednesday the ladies liturgy will meet. Mrs. Johnson will sing "Put me in my little bed" accompanied by the pastor”.

"This being Easter Sunday, we will ask Mrs. Lewis to come forward and lay an egg on the alter”.

Sunday, September 30, 2007

Funny Classified Ads

Supposedly, these are actual classified advertisements that have appeared in papers, unfortunately not in India. Enjoy!

"A superb and inexpensive restaurant. Fine food expertly served by waitresses in appetizing forms”.

"For sale: an antique desk suitable for lady with thick legs and large drawers”.

"Four-poster bed, 101 years old. Perfect for antique lover”.

"Now is your chance to have your ears pierced and get an extra pair to take home, too”.

"Wanted: 50 girls for stripping machine operators in factory”.

"Wanted: Unmarried girls to pick fresh fruit and produce at night”.

"We do not tear your clothing with machinery. We do it carefully by hand”.

"Used cars: Why go elsewhere to be cheated? Come here first”!

"Auto Repair Service. Free pick-up and delivery. Try us once; you'll never go anywhere again”.

"Illiterate? Write today for free help”.

Saturday, September 15, 2007

Meet Procter & Gamble

In the vast world of marketing and advertising, James Stengel just may be the king. He is P&G's global marketing officer, a post he has held for six years when the average tenure of a chief marketing officer is less than two. Stengel sat down recently with Fortune 's Geoff Colvin to talk about consumer power, the value of brands, the decline of mass media etc. Edited excerpts follow.

What's the best marketing you've seen lately?

Outside P&G, I think Harry Potter. You had to be dead to miss it. The whole way that Harry Potter has engaged people has been a phenomenon that any brand or business would aspire to.

You are in a great position to evaluate consumer trends. What is the most important thing you are seeing?

The biggest thing going on with consumers is that they want to trust something. They want to be understood, they want to be respected and they want to be listened to. They don't want to be talked to. People really do care what's behind the brand, what's behind the business. They care about the values of a brand and the values of a company. We can never forget that. Businesses and brands that are breaking records are those that inspire trust and affection and loyalty by being authentic, by not being arrogant, and by being empathetic to those they serve.

'Immersion research' means you spend time with consumers in their homes or other settings, rather than in focus groups. Can you explain?

At P&G, we all do that kind of thing. We all go out and really spend time with consumers, especially those who are not like us. I had a wonderful field visit in Latin America on a recent trip - I went into the home of a woman who had very little money. She was tremendously proud of her children and her home. Our brands play an important role in her household, because though she didn't have much disposable income, she spent some of it on the kind of brands that we sell. It was important to understand what role our brands played in her life.

Two years ago P&G was spending 85% of its marketing budget on 30-second TV spots. What is the proportion now, and what will it be in five years?

The trend of the past five years will continue, which is that TV advertising will go down as a percentage of our spending, and we will continue to move money to where the consumers are. The interesting news in all of this is that consumers are spending more time with media than ever. If the content is good, consumers will spend an awful lot of time with media. That is what Harry Potter proved.

It is very difficult to maintain a tangible product advantage for any length of time. Is that a problem for P&G?

No, it's not a problem. I hate it when someone says they're in a commodity category. We don't accept that there are any commodity categories. We are growing Charmin and Bounty very well, and if there is any category that people could say is a commodity, it's paper towels and tissues. We have developed tremendous equities, tremendous loyalties from our consumers. So, no, I think that is a cop-out. That is bad marketing and an excuse.

What gives a brand power?

If you go back at P&G, and in a lot of the industry, we often thought of our brands in terms of functional benefits. But the equity of great brands has to be something that a consumer finds inspirational and an organization finds inspirational. You know, our baby-care business didn't start growing aggressively until we changed Pampers from being about dryness to being about helping mom with her baby's development. That was a sea change. Or look at all the different areas we are in at Olay. That's because Olay is not just about being a pink fluid that moisturizes. It is about helping women look better and feel better as they age.

What's been the biggest change in yourself as you have adapted to this changing world of media and marketing?

There is so much to learn and there are so many interesting things happening, inside and outside the company. It is important to be inquisitive, to be searching. When I travel, I always think, is there a thought leader who is doing something interesting who I can drop in on? I always ask people their reaction to our company and what they are doing.

Monday, September 10, 2007

Classified ads....from a small-town daily!

Monday
FOR SALE - R. D. Jones has one sewing machine for sale. Phone 555-0707 after 7 p.m. and ask for Mrs. Kelly who lives with him cheap.

Tuesday
NOTICE - We regret having erred in R. D. Jones’ ad yesterday. It should have read: One sewing machine for sale. Cheap: 555-0707 and ask for Mrs. Kelly who lives with him after 7 p.m.

Wednesday
NOTICE - R. D. Jones has informed us that he has received several annoying telephone calls because of the error we made in his classified ad yesterday. His ad stands corrected as follows:
FOR SALE - R. D. Jones has one sewing machine for sale. Cheap. Phone 555-0707 and ask Mrs. Kelly who loves with him.

Thursday
NOTICE - I, R. D. Jones, have NO sewing machine for sale. I SMASHED IT. Don't call 555-0707, as the telephone has been disconnected. I have not been carrying on with Mrs. Kelly. Until yesterday she was my housekeeper, but she quit."

Monday, September 03, 2007

Job Sense

A taxi passenger tapped the driver on the shoulder to ask him a question. The driver screamed, lost control of the car, nearly hit a bus, went up on the footpath, and stopped few centimeters from a shop window.

For a second everything went quiet in the cab, and then the driver said: "Look mate, don't ever do that again. You scared the daylights out of me!”

The passenger apologized and said, "I didn't realize that a little tap would scare you so much."

The driver replied, "Sorry, actually it's not really your fault. Today is my first day as a cab driver. I have been driving a van carrying dead bodies for the last 25 years.”

Thursday, August 23, 2007

A story for workaholics

Last Saturday morning as I turned the dial up into the phone portion of the band on my ham radio, I came across an older sounding chap, with a tremendous signal and a golden voice.

"Well, Tom, it sure sounds like you're busy with your job. Hard to believe a young fellow should have to work sixty or seventy hours a week to make ends meet. It's too bad you missed your daughter's dance recital he continued. "Let me tell you something that has helped me keep my own priorities." And he began to explain his theory of a ‘thousand marbles’.

"You see, I sat down one day and did a little arithmetic. The average person lives about 75 years. I know, some live more and some live less, but on average, folks live about 75 years. Now then, I multiplied 75 times 52 and I came up with 3900, which is the number of Saturdays that the average person has in his lifetime.

It took me until I was 55 years old to think about all this in any detail", he went on, "and by that time I had lived through over 2,800 Saturdays." "I got to thinking that if I lived to be 75, I only had about a 1,000 of them left to enjoy. So I went to a toy store and bought 1000 marbles. I took them home and put them inside a large, clear plastic container."

"Every Saturday since then, I have taken one marble out and thrown it away. I found that by watching the marbles diminish, I focused more on the really important things in life. There is nothing like watching your time here on this earth run out to help get your priorities straight."

"Now let me tell you one last thing before I sign-off with you and take my lovely wife out for breakfast. This morning, I took the very last marble out of the container. I figure that if I make it until next Saturday then I have been given a little extra time. And the one thing we can all use is a little more time."

"It was nice to meet you Tom, I hope you spend more time with your family, and I hope to meet you again here on the band."

You could have heard a pin drop on the band when this fellow signed off. I guess he gave us all a lot to think about. I had planned to work on the antenna that morning. Instead, I went upstairs and woke my wife up with a kiss. "C'mon honey, I'm taking you and the kids to breakfast."

"What brought this on?" she asked with a smile.

"It's just been a long time since we spent a Saturday together with the kids. And hey, can we stop at a toy store while we're out? I need to buy some marbles."

Thursday, August 16, 2007

Customer Care Sense

A crowded United Airlines flight was canceled. A single United Airlines employee was rebooking a long line of inconvenienced travelers.

Suddenly an angry passenger pushed his way to the desk. He slapped his ticket down on the counter and said, "I have to be on this flight and it has to be first class."

The agent replied, "I'm sorry sir. I'll be happy to try to help you, but I've got to help these folks first, and I'm sure we'll be able to work something out."

The passenger was unimpressed. He asked loudly, so that the passengers behind him could hear, "Do you have any idea who I am?"

Without hesitating, the agent smiled and grabbed her public address microphone. "May I have your attention please," she began her voice heard clearly throughout the terminal. "We have a passenger here at Gate 14 who does not know who he is. If anyone can help him find his identity, please come to Gate 14."

With the folks behind him in line laughing hysterically, the man glared at the United Airlines employee, gritted his teeth and swore. "F*** you!"

Without flinching, she smiled and said, "I'm sorry, sir, but you'll have to get in line for that, too."

Wednesday, August 08, 2007

Economic Sense

A little boy goes to his dad and asks, "What is politics?" Dad says, "Well son, let me try to explain it this way: I'm the head of the family, so call me the Prime Minister. Your mother is the administrator of the money, so call her the Government. We're here to take care of your needs, so we'll call you the people. The maid, we'll consider the working class, and your baby brother, we'll call him the future. Now think about that and see if it makes any sense."

So the little boy goes off to bed thinking about what dad had said.

Later that night, he hears his baby brother crying, so he gets up to check on him. He finds that the baby has severely soiled his diaper. So the little boy goes to his parent's room and finds his mother sound asleep. Not wanting to wake her, he goes to the maid's room. Finding the door locked, he peeks in the keyhole and sees his father in bed with the maid. He gives up and goes back to bed.

The next morning the little boy says to his father, "Dad, I think I understand the concept of politics now."

The father says, "Good, son, tell me in your own words what you think politics is all about."

The little boy replies, "The Prime Minister is screwing the working class while the government is sound asleep. The people are being ignored and the future is in deep shit.”

Friday, July 27, 2007

Shit Marketing

Some things certain marketers do just amaze me – that they were done at all! I can understand a strategy that’s poorly conceived or a tactic that goes horribly wrong. But self-inflicted stupidity is something that never ceases to amaze me.

For instance, if you travel north on TTK Road from Adyar Park, in Madras, you will find a hotel on the right just before Alwarpet junction. The hotel is named ‘One Way’!

What are they trying to say? That you can go in; but you won’t be able to come out???

But the winners in this game, without a shade of doubt, are the marketing wizards of the brand, Kaya Clinic. What did they do? Nothing. Just that they happen to be lead sponsors of a fantastic programme on Discovery Channel titled ‘Seconds to Disaster’.

Ladies and Gentlemen, here is exactly how the sponsorship sounds on the channel:

‘SECONDS TO DISASTER’ IS BROUGHT TO YOU BY KAYA CLINIC.

Now, what are the respected Indian Ivy League MBA’s running the brand trying to tell us? Entering Kaya Clinic is just seconds to disaster???

Shit Marketing!

Saturday, July 21, 2007

Ah Marketing!

Boeing recently launched a new brand of airplane – 787 Dreamliner – in its headquarters, Seattle. In an unprecedented move – for marketing in general and Boeing in particular – the launch event was broadcast live via webcast in nine languages across 45 countries.

In all, the 787 premiere potentially reached 100 million or more viewers, making it one of the largest corporate TV and Internet broadcasts in history.

To date, 47 customers worldwide have ordered 677 airplanes worth a staggering $110 billion making the Dreamliner the most successful commercial airplane launch in history.

What’s the big deal, you wonder.

The launch was meticulously designed to be on 8th July 2007.

So? You ask.

The 787 was launched on 7-8-07.

Ah marketing!


P.S: Americans use month first and then the date. Remember 9-11.

Monday, July 16, 2007

Advertising Sense

An ad team is working very late at night on a project due the next morning. Suddenly, a Genie appears before them and offers to grant them all one wish.

The Copywriter says: "I've always dreamed of writing the great American novel and having my work studied in schools across the land. I'd like to go to a tropical island where I can concentrate and write my masterpiece." The Genie says "No problem!" And poof! The Copywriter is gone.

The Art Director says: "I want to create a painting so beautiful that it would hang in the Lourve Museum in Paris for all the world to admire. I want to go to the French countryside to work on my painting." The Genie says, "Your wish is granted! And poof! The Art Director is gone.

The Genie then turns to the Account Executive and says "And what is your wish?" The poor hapless Account Executive who is fighting a client deadline says with a stern face, "I want those two assholes back here right now."

Monday, July 09, 2007

Retail Sense

A retailer was dismayed when a competitor selling the same type of product opened next-door to him, displaying a large sign proclaiming ‘Best Deals’.

Not long after he was horrified to find yet another competitor move in next-door, on the other side if his store. Its large sign was even more disturbing- ‘Lowest Prices’.

After his initial panic, and concern that he would be driven out of business, he looked for a way to turn the situation to his marketing advantage. Finally, an idea came to him. Next day, he proudly unveiled a new and huge sign over his front door.

It read, ‘Main Entrance’!

Tuesday, July 03, 2007

Sales Sense

A keen Texas lad applied for a salesman's job at a city department store. The store was the biggest in the world and sold everything under the sun.

"Have you ever been a salesman before?" the boss asked during his interview.

"Yes, I was a salesman in Texas," the lad answered. The boss took an immediate liking to him and told him he could start the next day. "I'll come and see how you made out after we close up," the boss said.

The day was long and hard for the young man, but finally it was 5 o'clock. The boss closed up the store and found the lad sitting slumped and exhausted, in a chair. "How many sales did you make today?" the boss asked.

"One," said the lad.

"One?" said the boss, obviously displeased. "Most of the sales people on my staff make 20 or 30 sales a day. How much was the sale worth?"

"Exactly $101,334,533," said the young man.

"How did you manage that?" asked the boss, flabbergasted.

"Well," said the lad, "this man came in and I sold him a small fish hook, then a medium fish hook, and finally a really large hook. Then I sold him a small fishing line, a medium one, and huge one. I asked him where he was going fishing, and he said he was going down the coast. I said he'd probably need a boat, so I took him down to the boat department and sold him that fancy 22-foot Chris Craft with twin engines. Then he said his Honda Civic probably wouldn't be able to handle the load, so I took him to the vehicle department and sold him new GMC 1-ton pickup truck."

"You sold all that to guy who came in for a fish hook?" the boss asked in astonishment.

"He came in to buy a box of sanitary napkins for his wife, and I said to him, "your weekend's shot. You might as well go fishing."

Wednesday, June 27, 2007

Business Sense

A factory’s marketing manager takes a visiting customer on a tour of a latex products factory.

At the first stop, he's shown the machine that manufactures baby-bottle nipples. The machine makes a loud hiss-pop noise.

"The hiss is the rubber being injected into the mold," explains the marketer. "The popping sound is a needle poking a hole in the end of the nipple."

Later, the tour reaches the part of the factory where condoms are manufactured. The machine makes a noise: "Hiss. Hiss. Hiss. Hiss-pop!"

"Wait a minute!" says the customer. "I understand what the 'hiss, hiss,' is, but what's that 'pop!' every so often?"

"Oh, it's just the same as in the baby-bottle nipple machine," says the guide. "It pokes a hole in every fourth condom."

"Well, that can't be good for the condoms!"

"Yeah, but it's great for the baby-bottle nipple business!"

Thursday, June 14, 2007

The Power of PR

I just finished reading ‘The Fall of Advertising & the Rise of PR’. The title actually is a misnomer. The authors, Al Ries and Laura Ries, are not proposing that advertising is dead and buried. Instead they claim advertising isn’t as powerful as it used to be and should be used more as a support to a well-orchestrated PR plan.

Their theory is simple: Build brands with PR and once it is established maintain it with advertising. They give enough and more case studies of brands that have taken this route: Microsoft, Starbucks, Body Shop, Linux, PlayStation, Viagra etc.,

I would strongly recommend this book to you irrespective of where you are - advertising, marketing or PR. Nicely written, neatly presented with powerful examples…the book could be described with the clichéd word ‘unputdownable’!

And as irony would have it, the next book I just picked up to read (which is still work under progress) is an old classic (all classics are old, right!) - All I Really Need to Know I Learned in Kindergarten by Robert Fulghum. A book that became popular not by advertising but by brilliant PR and word of mouth. The story of its popularity is presented in the front flap cover of the book itself. I quote it verbatim:

All I Really Need to Know I Learned in Kindergarten began as Robert Fulghum’s attempt to write a simple credo. In his capacity as a Unitarian minister, he shared his statement of belief with his congregation and then read it at a primary school celebration. As fate would have it, Washington’s Senator Dan Evans was in the audience. Impressed and touched by what he had heard, he requested a copy of Robert Fulghum’s speech and took it back with him to Washington, D.C., where it was eventually read into the Congressional Record.

All I Really Need to Know I Learned in Kindergarten made its way from Washington to the Kansas City Times, which ran Robert Fulghum’s observations in its Sunday edition. The response was overwhelming.

The snowball of enthusiasm keeps building. Portions of the piece were printed in ‘Dear Abby’ and Reader’s Digest. Paul Harvey and Larry King read it to millions on their radio shows and Southwestern Bell sold hundreds of thousands of copies as a poster to its customers. Robert Fulghum’s simple credo was photocopied, sent to loved ones and posted on bulletin boards at schools throughout the country.

The book went on to sell more than millions around the world. All this and more accomplished without a single shred of advertising!

Sunday, June 03, 2007

Marketers Vs Accountants

Three marketers and three accountants are traveling by train to a conference. At the station, the three accountants each buy tickets and watch as the three marketers buy only a single ticket. "How are three people going to travel on only one ticket?" asks an accountant.

"Watch and you'll see," answers a marketer.

They all board the train. The accountants take their respective seats but all three marketers cram into a restroom and close the door behind them. Shortly after the train has departed, the conductor comes around collecting tickets. He knocks on the restroom door and says, "Ticket, please." The door opens just a crack and a single arm emerges with a ticket in hand. The conductor takes it and moves on.

The accountants saw this and agreed it was quite a clever idea. So after the conference, the accountants decide to copy the marketers on the return trip and save some money (being clever with money, and all that). When they get to the station, they buy a single ticket for the return trip. To their astonishment, the marketers don't buy a ticket at all.

"How are you going to travel without a ticket?" says one perplexed accountant.

"Watch and you'll see," answers a marketer.

When they board the train, the three accountants cram into a restroom and the three marketers cram into another one nearby. The train departs. Shortly afterward, one of the marketers leaves his restroom and walks over to the restroom where the accountants are hiding.

He knocks on the door and says, "Ticket, please."

Monday, May 21, 2007

Is economics boring?

I find it surprising when most students I meet say economics is a boring subject. I find it even more appalling when MBA’s and marketing majors say it. Well, they would do well to know that economics is the mother of marketing. Most marketing theories be it consumer behaviour, market dynamics, competition, pricing and more have all been derived from economic theory.

If you subscribe to the view that economics is boring, or even worse, that economics is not for me, I intend correcting your opinion about economics. Not by telling how economics is useful but by telling you how it is not boring…by listing a few hilarious quotes from economics. Enjoy!

An economist is somebody who sees something happen in practice and wonders if it will work in theory.

A man explained inflation to his wife thus: 'When we married, you measured 36-24-36. Now you're 42-42-42. There's more of you, but you are not worth as much.'

All the great economic ills the world has faced can be directly traced back to the London School of Economics.

Making a speech on economics is a lot like pissing down your leg. It seems hot to you, but it never does to anyone else.

The first law of economists: For every economist, there exists an equal and opposite economist. The second law of economists: They're both wrong.

The economy depends about as much on economists as the weather does on weather forecasters.

Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair.

The trouble with unemployment is that the minute you wake up in the morning you're on the job.

An economist is a man who knows a hundred ways of making love but doesn’t know any women.

Government's view of the economy could be summed up thus: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidise it.

Friday, May 11, 2007

Prosecute the protectionists

One of the many things that dominate the marketing scene these days has got nothing to do with marketing. It’s got to do with stupid politics (well, when was politics anything else). It’s the increasing clamour by politicians and spineless businessmen and some stupid sections of public who get swayed by the formers’ arguments – a clamour for protection – ‘save the small retailer from the threat of multinational monsters, ‘protect small industry from the tyranny of foreign competition’ etc.

All the arguments bandied about in support of protection could be rebutted with impeccable economic logic but allow me to quote a funny anecdote from the annals of economic history. It’s called ‘the Candlemakers’ Petition’.

The Candlemakers' Petition is a well-known satire of protectionism written and published in 1845 by the French economist Frédéric Bastiat as part of his Economic Fallacies. In the Candlemakers' petition, the candle makers and industrialists from other parts of the lighting industry petition the Chamber of Deputies of the French July Monarchy (1830–1848) to protect their trade from the unfair competition of a foreign power.

Guess who the foreign power is? Therein lies the satire! I have abridged the actual petition here. Enjoy.


“We are suffering from the ruinous competition of a rival who apparently works under conditions so far superior to our own for the production of light that he is flooding the domestic market with it at an incredibly low price; for the moment he appears, our sales cease, all the consumers turn to him, and a branch of French industry whose ramifications are innumerable is all at once reduced to complete stagnation.

This rival is none other than the sun!

We ask you to be so good as to pass a law requiring the closing of all windows, dormers, skylights, inside and outside shutters, curtains, casements, bull's-eyes, deadlights, and blinds -- in short, all openings, holes, chinks, and fissures through which the light of the sun is wont to enter houses, to the detriment of the candle industry.

Be good enough, honourable deputies, to take our request seriously, and do not reject it without at least hearing the reason. If you shut off as much as possible all access to natural light, and thereby create a need for artificial light, the candle industry in France will ultimately be encouraged.

Will you tell us that, though we may gain by this protection, France will not gain at all, because the consumer will bear the expense?

We have our answer ready: You no longer have the right to invoke the interests of the consumer. You have sacrificed him whenever you have found his interests opposed to those of the producer. You have done so in order to encourage industry and to increase employment. For the same reason you ought to do so this time too.”


If you wish to read the entire petition here is the place to find it:
http://www.ccsindia.org/ccsindia/lacs/25candlemakers_petition.pdf

Read this, especially the next time you feel there should be some industry that needs to be protected from competition.

Wednesday, May 02, 2007

Is more the merrier?

…. maybe in life, but definitely not while your are positioning your brand or offering a promise. Brevity is the soul of wit and brand positioning.

Lux is glamour.
Dettol is protection.
Axe is sexual attraction.
Close Up is fresh breath.

What is Colgate? Yup, protection.

And what is Pepsodent? Protection, again?

How can two brands in the same category have the same positioning and still survive to tell the tale? They both did, didn’t they? Colgate has around 40% market share and Pepsodent has around 20% or so.

Pepsodent was younger; has far more modern imageries and is probably more kiddish than Colgate, which is older, serious and motherly. And Pepsodent has a strong ‘reason to believe’ – Germi-check formula (whatever that meant!).

And then something happened. The marketing whiz kids at Levers relaunched Pepsodent aka giving the brand a face-lift.

‘Dus nahi toh bas nahi’ – Pepsodent now fights 10!

The more the merrier!

Why just fight germs. Now let your toothpaste fight ……wait a minute. What are the 10 things that Pepsodent fights with?

Do you remember…..at least one of them? That’s the point. And that’s Pepsodent’s problem today.

Give the human mind one thing to remember and chances are high it would. Give it more than one, and it remembers none. Give it ten, and recalling them is anything but fun!

Germi-check was easy to remember. ‘Dus nahi toh bas nahi’ is easy to remember too but what’s difficult to remember is what those 10 things are. Consumers can’t recall. And when consumers can’t recall they don’t realize why they should buy the brand. And when they don’t realize that, they don’t actually buy the brand. Period.

It is already being evident. A recent press report quotes industry figures and states Pepsodent grew only 2% last year. The industry, though, grew by 14%.

A new growing brand like Pepsodent has stopped growing and is almost stagnating.

Surprised? I am. Not that it is stagnating but that it actually managed to grow in spite of the confused revamp.

By the way, Colgate grew, thank you. They have just one thing to establish – protection. And they are doing it well and doing fine in the market too.

More, in the context of brand positioning or promise, is no merry. Just a cause for worry!

Wednesday, April 25, 2007

Generic Brands

A few weeks back I had asked if there are any other brands other than FedEx that have become generic and moved into the English dictionary.


Ram has come out with a whole bunch of brands (or should we call words) that have become generic and part of the lexicon.

Here is the list of brands that he has sent. Thanx Ram!

Roller blade
Walkman
Chap Stick
Dumpster
Velcro
Biro
Gramophone
Laser
Kerosene
Frisbee
Windsurfer
Escalator
Formica
Thermos
Linoleum


P.S: Ram, you addressed me as ‘Sir’ in your comments. Are you one of my unfortunate students or are you one of this blog's readers who is just being nice?

Saturday, April 07, 2007

Sssshhhhhhhhhh Classified Ads!


I have always wondered why they were called 'Classified Ads'. Maybe, this is why.
P.S: Click on the image to enlarge it if you have eyes that are older than you are!


Friday, March 30, 2007

Ad Quotes......again!

Let advertisers spend the same amount of money improving their product that they do on advertising and they wouldn't have to advertise it.

It is difficult to produce a television documentary that is both incisive and probing when every twelve minutes one is interrupted by twelve dancing rabbits singing about toilet paper.

It’s advertiser’s job to make women unhappy with what they have.

Don’t tell my mother I work in an advertising agency; she thinks I play piano in a whorehouse.

Never write an advertisement, which you wouldn't want your family to read. You wouldn't tell lies to your own wife. Don't tell them to mine.

In good times business people want to advertise. In bad times they have to.

Advertising has really changed our thinking. This morning my wife put on eye shadow, eyeliner and eyelashes. I said, "What are you doing to your eyes?" She said, "I'm making them look natural.”

Monday, March 19, 2007

Life of a Marketer

One thing that strikes me when I lecture in B-Schools, apart from million other things that hit me with increasing regularity, is the aura surrounding the life of a marketing job in the minds of the students. Most, if not all, seem to think a marketing job is the next best thing to being a freelance gynecologist!

I don’t intend spoiling their party but I thought I could use this space to introspect a little bit about the life of an average marketer - those hard-working alcoholic workaholics who work 9 to 5 – working from 9 A.M to next day morning 5 A.M! Here is the piece – self-reflection lessons for marketers.

You lecture the paper-delivery boy on ways to improve his marketing skills.

You get all excited when it’s Sunday, so you can wear casual clothes to work.

You find you really need PowerPoint to explain what you do for a living.

You know deep inside yourself when you say ‘the work is happening’ means only one thing – the work hasn’t even started.

You normally eat out of vending machines and at the most expensive restaurant in town within the same week.

You know the people at the airport and hotel better than your next-door neighbours.

You think a ‘half-a-day’ means leaving office at 5 o’clock.

You know but you don't realize it when you promise somebody you would meet him/her ‘first-thing-in-the-morning’ means meeting that person just minutes before lunchtime.

You remember the names of all your high-school classmates but not the guy whom you met just half an hour ago.

You are planning to take the weekend off – only that you planned it three years back!


And all those marketers who are reading this......if you wish to add more to this list based on your experiences, feel free to add them.

That's the whole point about this blog!

Saturday, March 10, 2007

Just screw it !

If the world cup is a fever, the talk about the new Nike ad is an epidemic. Most people I meet, and I hasten to add all of them are in marketing and advertising, can’t stop raving about the idea, ranting about its executional excellence, and ravishing unbridled praise on the 40 second wonder.

But I don’t see what’s in that ad that would make Nike sell more shoes in this country. Before I go on, let me clarify one thing. I am not commenting on the execution excellence or whatever of the ad. I am commenting on the strategy behind the commercial, or more precisely the lack of it. Execution is meaningless when a clear strategy is non-existent. And I don’t see any strategy behind the new Nike ad.

What is Nike? You would say ‘it’s an attitude’. Where does that attitude emanate from? Superior performance of Nike. And that is why ‘performance’ has been defined as the core of brand Nike. Not by me but by the custodians of the brand.

Now, tell me where is the performance highlighted in the ad. Does it say how Nike is the best? Does it describe why it is the best in its class? Or why you and me should be paying obscene amounts to buy a pair?

Aren’t ads about telling you and me why we should be buying it? Aren’t ads supposed to give a reason to believe?

Will you and me buy something just because it has an attitude? We might, when the brand is an affordable luxury. We might go to Barista to pick a cup of coffee at Rs.50 if we feel that helps us make a statement about ourselves. Selling coffee with ‘an attitude’ might do the trick then. But when we are supposed to cough up Rs. 2,000 or Rs. 3,000 (the hell, I don’t even know how much a Nike costs; talks enough about how much their ads make me want to enter a Nike showroom and buy one) don’t we want a solid reason for buying?

You might say, but don’t we know Nike is about performance. Who are the ‘we’? You, me and a couple of hundreds of those who make a living by marketing and advertising brands. Not the millions of others for whom Nike is another shoe. Even that is assuming if they are even aware of what the brand is all about. Don’t even try telling me Nike’s awareness and knowledge levels are high. After years of effort and millions of advertising, most leading Indian brands would be happy to have 60-70% awareness levels. And would love to have TOM scores even one-fourth of it.

Where does Nike stand? Zilch or pretty much close to it, when it comes to millions of potential customers across the country (the unfortunate ones who don’t belong to the glorified fields of marketing and advertising!)

The Nike ad doesn’t give me one good reason why I should be buying it. If it’s about selling an attitude, I am not sure how many of us would cough up thousands just for it. Performance is where the attitude comes from and that is missing in the ad.

But Nike ads in the U.S do the same thing you say. Yes, that is U.S, a country where Nike has been advertising for donkeys years; where they have established without a shade of doubt the superior quality of the shoes, the brilliance of its manufacturing and impeccability of its design and what not. They can afford to highlight attitude alone; the hell, they don’t even want to write the words NIKE in the ad. Sheer logo would do.

And this is India. We don’t know Nike. Or the reason it is supposed to be the best pair of shoes our hard-earned money can buy. We know Nike is a shoe, has the swoosh logo, and ‘just do it’ as its tagline. Nothing more, nothing less. Not enough reason for many to spend thousands on it.

Want more proof? Remember a brand called ‘Pleasure’. Yeah, the scooter from Hero Honda that said girls in India should buy it and asked the question ‘why should boys have all the fun’. Wonder why the scooter never started or sold. The answer is simple. What the brand said – ‘why should boys have all the fun’ – just defined who the target for the brand was. But it never gave a promise or a solid reason why that target should go and buy it. ‘Pleasure’ failed because it expected people to spend Rs.40,000 for asking the boys ‘why should you alone have so much fun’. Expensive statement for the consumer to make. The consumer chose to ask it by buying a Scooty, that gave them enough reason to believe; more than enough promise to buy!

Moreover, the Nike ad could be an ad for any other brand, for crying out loud. I will not be surprised if people mistook it for a Pepsi ad. Remember the ad has a few cricketers in their blues as well. So much for it!

Finally, those who rave about the Nike ad say the ad is trying to celebrate the spirit of cricket. At last count I found 4,578 ads doing the same thing during commercial breaks. Nike was No. 4,579!

Friday, February 23, 2007

You’ll never be fed up with FedEx

Just found this one recently when someone pointed it to me. This is about FedEx – more precisely about its logo. Take a look at the logo first.



Have you ever spotted the 'arrow' between the letters ‘E’ and ‘x’ in this logo? The arrow was apparently introduced to underscore speed and precision, which are part of the positioning of the company. However, they chose to keep it subtle, or in other words, a subliminal symbol.

The creator of the logo, Lindon Leader, explains why this was done: “The power of the hidden arrow is simply that it is a hidden bonus. It is a positive-reverse optical kind of thing: either you see it or you don't. Importantly, not getting the punch line by not seeing the arrow does not reduce the impact of the logo's essential communication. The power of the logo and the FedEx marketing supporting the logo is strong enough to convey clearly FedEx brand positioning.”

On the other hand, if you do see the arrow, or someone points it out to you, you won't forget it. I can't tell you how many people have told me how much fun they have asking others "if they can spot 'something' in the logo.”

Besides, FedEx is also an interesting case where the brand consultants convinced the company to shorten their corporate name and logo from Federal Express to the popular abbreviation FedEx. Besides creating a shorter brand name, they reduced the amount of colour used on vehicles (planes, trucks, boxes, POP materials) and saved hundreds of thousands of dollars in costs.

Now that is some true 'value for money' consulting!

Also, FedEx is one of the very few brands in the world whose name is now used as a verb, officially endorsed by the top dictionaries of the world. I can only think of Xerox being the other one. Any other brand name that you can think of?

If this is not the pinnacle of branding, I would like to know what else is!

Monday, February 12, 2007

McElroy’s P&G Brand Management Memo

This memo, written by a guy named Neil McElroy, a P&G manager, is part to defend the hiring of two new people, describes a brand management team consisting of a ‘brand man’, an ‘assistant brand man’, and several ‘field check-up’ men. The following excerpt describes the duties and responsibilities of the ‘brand man’.

What’s the big deal you ask? Nothing much except that it was the first instance of an organized attempt at designing a Brand Management Team in an organization. So what, you scoff.

This happened in the year 1931. Yes, much before even your dad was born. That’s P&G - the Cincinnati colossus that has monopolized innovation and best practices over many many years!

Here is the story.

Neil McElroy, working on P&G’s Camay was frustrated by being in the shadow of Ivory, put forth the idea of developing a brand management team. He argued that there were not enough people caring about Camay. The marketing effort was diffused and uncoordinated and lacked a budget commitment. The solution, creating a brand management team responsible for the marketing programme and its coordination with sales and manufacturing, is considered a key event in the history of branding!

And here is the memo he wrote.

Brand Man

1. Study carefully shipments of his brands by units.

2. Where brand development is heavy and where it is progressive, examine carefully the combination of effort that seems to be clicking and try to appeal this same treatment to other territories that are comparable.

3. Where brand development is light:
a. Study past advertising and promotional history of the brand: study the territory personality at first hand–both dealers and consumers–in order to find out the trouble.
b. After uncovering our weakness, develop a plan that can be applied to this local sore spot. It is necessary, of course not simply to work out the plan but also to be sure that the amount of money proposed can be expected to produce results at a reasonable cost per case.
c. Outline this plan in detail to the Division Manager under whose jurisdiction the weak territory is, obtain his authority and support for the corrective action.
d. Prepare sales helps and all other necessary material for carrying out the plan. Pass is on the districts. Work with salesmen while they are getting started. Follow through to the very finish to be sure that there is no letdown in sales operation of the plan.
e. Keep whatever records are necessary, and make whatever field studies are necessary to determine whether the plan has produced the expected results.

4. Take full responsibility, not simply for criticizing individual pieces of printed word copy, but also for the general printed word plans for his brands.

5. Take full responsibility for all other advertising expenditures on his brands (author’s note – in-store displays and promotions).

6. Experiment with and recommend wrapper (author’s note – packaging) revisions.

7. See each District Manager a number of times a year to discuss with him any possible faults in our promotion plans for that territory.

Wednesday, February 07, 2007

How to ask your boss for a salary increase?

Here is for all those blokes who don't know how to ask their boss for a salary increase. And also what to expect from smart alec bosses! Courtesy: One of my enterprising students!

One day an employee sends a letter to his boss asking for an increase in his salary.

Dear Bo$$,

In thi$ life, we all need $ome thing mo$t de$perately. I think you $hould be under$tanding of the need$ of U.$ worker$ who have given $o much $upport including $weat and $ervice to your company. I am $ure you will gue$$ what I mean and re$pond $oon.

Your’$ $incerely,
Norman $handy


The next day, the employee received this letter of reply.

Dear NOrman,

I kNOw you have been working very hard. NOwadays, NOthing much has changed. You must have NOticed that our company is NOt doing NOticeably well as yet.

NOw the newspapers are saying the world's leading ecoNOmists are NOt sure if U.S may go into aNOther recession. After the NOvember presidential elections things may turn bad.

I have NOthing more to add NOw. You kNOw what I mean.

Yours,
Boss

Sunday, January 21, 2007

How to Write a Good Advertising Positioning Statement

Start by looking not at the product but at the position in the market that you want to occupy, in relation to competition.

Think about how the brand will answer the main consumer questions:
- What will it do for me that others will not?
- Why should I believe you?

Make sure the best people in your company work on the APS. After all, it’s the most important document you will produce on the way to getting advertising.

Let individuals have a go at their own version. Discuss and modify the alternatives to clarify everyone’s thoughts and then pick the best one.

Try to keep it short - make every word count and be as specific as possible – vagueness opens the way to confused executions.

Search for ways of making it competitive – if possible find some way of bringing in the word ‘only’ as long as it is relevant to the benefit.

Indicate clearly the weight of each element.

If emotional values, e.g., social confidence, mother care etc., are important to a brand they should influence the way the statement is written.

Encourage the contribution of your R&D or technical personnel whenever possible.

Get wholehearted commitment at all levels in your company and where relevant, procure coordination, before issuing an agreed APS.

Do not give it to the advertising agency until you are pretty sure you have it right and are prepared to defend it. Then let the agency make their own contribution, before you decide on a final version.

Begin every advertising review meeting with the APS, no matter how apparently well known it is.

Keep the APS up-do-date and give as careful consideration to change as you did to the original statement.

Saturday, January 13, 2007

Ad Quotes

Writing well, rule No. 1: Write well!
- Luke Sullivan, copywriter and author.

Imagination is one of the last remaining legal means to gain an unfair advantage over your competition.
- Tom McElligott, cofounder of a highly creative Minneapolis advertising agency.

I don’t think people read body copy. If the first five words of body copy aren’t “May we send you $700?” word six isn’t read!
- Luke Sullivan.

Great print ads can make you famous. Great TV ads can make you rich.
- Anonymous.

Your radio spot just interrupted your listener’s music. It’s like interrupting people having sex. If you’re going to lean in the bedroom to say something, make it good: “Hey your car’s on fire.”- Luke Sullivan.

Friday, December 29, 2006

Marketing Myopia

How can a company ensure its continued growth? In 1960, a seminal Harvard Business Review journal article, ‘Marketing Myopia’ answered that question in a new and challenging way by urging organizations to define their industries broadly to take advantage of growth opportunities. Mr. Theodore Levitt, the article’s author, showed how they declined inevitably as technology advanced because they defined themselves too narrowly.

He posited that to continue growing, companies must ascertain and act on their customers’ needs and desires, not bank on the presumptive longevity of their products. The success of the article testifies to the validity of its message. Written in 1960, it has been widely quoted and anthologized, and HBR has sold more than 265,000 reprints of it. The author of 14 subsequent articles in HBR, Mr. Levitt passed away a few months back.

As a student of marketing I have always been amazed at the almost visionary zeal with which he proposed theories and concepts and the longevity of many of them. As a mark of respect to the departed soul, here is an extract from Marketing Myopia. If you are impressed, and I can’t see why you shouldn’t, I urge you to go find and run through the entire article and, if possible, Mr. Levitt’s entire collection as well. To get you started, here is the extract.

Every major industry was once a growth industry. But some that are now riding a wave of growth enthusiasm are very much in the shadow of decline. Others, which are thought of as seasoned growth industries, have actually stopped growing. In every case the reason growth is threatened, slowed, or stopped is not because the market is saturated. It is because there has been a failure of management.

The failure is at the top. The executives responsible for it, in the last analysis, are those who deal with broad aims and policies. Thus:

The railroads did not stop growing because the need for passenger and freight transportation declined. That grew. The railroads are in trouble today not because the need was filled by others (cars, trucks, airplanes, even telephones) but because it was not filled by the railroads themselves. They let others take customers away from them because they assumed themselves to be in the railroad business rather than in the transportation business. The reason they defined their industry incorrectly was that they were railway-oriented instead of transportation-oriented; they were product-oriented instead of customer-oriented.

Hollywood barely escaped being totally ravished by television. Actually, all the established film companies went through drastic reorganizations. Some simply disappeared. All of them got into trouble not because of TV’s inroads but because of their own myopia. As with the railroads, Hollywood defined its business incorrectly. It thought it was in the movie business when it was actually in the entertainment business. Movies implied a specific, limited product. This produced a fatuous contentment, which from the beginning led producers to view TV as a threat. Hollywood scorned and rejected TV when it should have welcomed it as an opportunity - an opportunity to expand the entertainment business.

The view that an industry is a customer-satisfying process, not a goods-producing process, is vital for all businesspeople to understand. An industry begins with the customer and his or her needs, not with a patent, a raw material, or a selling skill. Given the customer’s needs, the industry develops backwards, first concerning itself with the physical delivery of customer satisfactions. Then it moves back further to creating the things by which these satisfactions are in part achieved.

How these materials are created is a matter of indifference to the customer, hence the particular form of manufacturing, processing, or what-have-you cannot be considered as a vital aspect of the industry. Finally, the industry moves back still further to finding the raw materials necessary for making its products.

In short, the organization must learn to think of itself not as producing goods or services but as buying customers, as doing the things that will make people want to do business with it.

Sunday, December 10, 2006

Creative Briefing Format

Exceptionally good creative is a result of extremely well-thought out strategy. And the sun rises in the east. Nothing new, I admit, but good creative development process begins with a well-written creative brief. How to write a good creative brief is the subject of this edition.

Advertising professionals, excuse me please. You guys probably know how to write good briefs. But for those who wish to access a good template here is the format from one of world's most respected ad agencies - BBDO. Here goes it.

Assignment: The job on hand

- Campaign / Single ad
- TV commercial – Length
- Print ad – Size, Colour
- Newspaper or magazine
- Outdoor, Promotion, Radio, Integrated Campaign
- What do we have to do, what’s the budget, and when do we have to do it by

Include relevant data

Target: For whom our brand will be a viable alternative

- Not just demographics – psychographics
- What are they like as human beings?
- What are their hopes, fears, and ambitions?
- What do they expect from the category?
- How do they use it?
- What needs do they have that aren’t being met?

Be as informative and as insightful as possible

Competitive Frame: Who is our competition?

-What are they saying?
- What is the source of business?
- What will the consumer do or buy if they don’t buy us?

Not just a list of brands – could include habits and attitudes

Consumer Belief: The deeply held perceptions and feelings
- What is the single most important thing our prospects believe or feel about our brand or the category?
What is it that the advertising must change or reinforce?
Marketing Objective: The things that we are aiming for

Be as specific and clear-cut as possible.

Advertising Objective: What we want to make happen due to advertising

- Raise awareness
- Put on list
- Encourage trial
- Repeat purchase
- Change perceptions
- Reconsider our brand
- Use it more often
- Use in a new way
- Remain satisfied

Be specific, again.

Key Selling Message: The one thing we want to tell them

- In the light of the Consumer Belief in the defined Competitive Frame, what is the single-minded promise we will make to the defined Target that will persuade them to act in the way that will achieve the Advertising Objective?
- What do we want them to think, feel or believe as a result of the Advertising?

What do we have to have an idea about?

Support: Relevant reasons why we can make the promise

- Competitive physical or perceptual advantages
- Not just a list of features, or of all the brand’s good points

The reason to believe our claims.

Brand Personality: Aspect of personality that the ad must reflect

- A brief, vivid description
- Not just a list of adjectives

Preferably, describable by one word or phrase.

Budget / Timing: The budget for the whole exercise

What are the time frames?

Mandatory Inclusions: The musts or must nots be included in the ad

- Legal restrictions, logo usage, campaign themes
- The fewer the better

None, if possible!

Criteria for Evaluation: Measurable action points

The parameters by which the creative would be evaluated.

Tuesday, November 28, 2006

Literature Review - 2

Communications Imperatives for New Products
Journal of Advertising Research, Kirby Andrews

This article throws some light on the standing issue of what is the best advertising for new products. The author describes a research study done in conjunction with clients of his research / consulting firm.

19 firms had cooperated in the study, and offered a total of 50 new products that had been marketed in some 10 major product categories. For each product there was a commercial that had been deemed sales-successful or not (27 were, 23 were not). Most products were parity products, and only 14 were genuinely different.

Each commercial was analyzed for content: the analysts sought 2,121 criteria, using computer programming, for each segment of each commercial that had separate meaning. This long list was worked down to 84 criteria that seemed to be important. They differentiated the ads. All 50 commercials were then analyzed against these 84 factors, and scored. Lastly, the advertisers then supplied the success label for each commercial, and further analysis yielded the final data.

It was found that there's a direct relationship between the structure and content of an introductory commercial for a new product and its ability to stimulate trial (the prime measure of success for new product advertising). 9 communication imperatives were found, and 85% of the successful commercials incorporated all 9 of them. Only 13% of unsuccessful commercials did so.

Of the 9 imperatives, 5 are basic advertising communications objectives and involve:

1. Capturing attention
2. Building interest
3. Communicating clearly
4. Creating awareness
5. Meeting advertiser strategy
The other 4, called introductory factors hold more interest. A new product advertisement should:

1. Communicate that something is different about the product
2. Position the brand difference in relation to the product category. What type of product is this?
3. Communicate that the product difference is beneficial to consumers.
4. Support the above two claims: difference and beneficial. The support may be product demonstration, testimonial, guarantee etc.,

The study also points out the surprising number of commercials from the large firms involved that did not meet the 5 basic objectives and did not offer the 4 introductory factors.

The study, though, did not go on to speculate whether these findings would apply to non-television goods and services.
Why don't you replicate this study in the Indian context using Indian products and advertising? Would be useful to the marketing and advertising fraternity, to say the least.

Tuesday, November 21, 2006

Literature Review - 1

The Characteristics of high-trial new product advertising.
Journal of Advertising Research, David Olson
This journal article deals with determining what constitutes good new product advertising. It describes a study done at Leo Burnett Co., a large advertising agency.

First, researchers went back through agency files and found 65 commercials that they could say achieved high trial, average trial, or low trial. Second, they had consumers view each commercial and rate whether 52 statements applied to it. Further analysis sorted these 52 statements to 7 basic dimensions of advertising:

1. News: how informative was the ad?
2. Relevance: how personally meaningful?
3. Purchase Interest
4. Stimulation: how entertaining or interesting was the ad?
5. Empathy: how involving was the ad?
6. Confusion
7. Familiarity: how much just like other ads?

The high trial commercials scored better than the medium and low-trial commercials across all seven factors. Still further analysis of the data determined that using just two of those seven factors permitted 66% success in predicting trial for the new product. Adding the other five only pushed this up to 75%.

The first of the two very strong factors was Relevance. Relevance is measured by five of the original 52 statements.

1. The commercial showed me the product has certain advantages
2. The product is important to me
3. The commercial reminded me that I am dissatisfied
4. During the commercial I thought about how the product can be useful to me
5. The commercial made me feel the product is right for me

Naturally, if the product is poor those five statements will be hard to get yes answers on. Good advertising is not usually thought capable of selling poor products. But, given good product concepts, the advertising should say so. If it does, the five statements are agreed to, and the relevance score goes up.

The second major factor was Stimulation. Its presence is measured by answers to the following six of the original 52 statements:

1. The persons in the commercial captured my attention
2. The enthusiasm of the commercial was catching
3. The commercial was amusing
4. The commercial was playful
5. The commercial was fun to watch and listen to
6. I thought it was clever and quite entertaining

The chances of obtaining high trial are only about 10% if the commercial is below average on both relevance and stimulation. It is 25 – 30% if the commercial is above average on one or the other factor. It is 50% if above average o both factors.

In a second qualitative phase of the agency’s study, analysis was undertaken to study how creative people view these two factors, and how they may interrelate in a given ad. A search of the agency’s archives yielded ten products where there were two different commercials with different relevance scores. The commercials were shown to creative staffers in the agency and each person was asked to identify the commercial that had the higher relevance. In most cases they were able to do so (without using consumers or the five of the fifty two original statements to guide them).

The author cautions that the above analysis should not be taken to mean that advertising could be written by formula. How one creates relevance is still an art, but it appears an ad should have lots of relevance (and stimulation too), and their presence can be measured.

Saturday, November 11, 2006

Indian Readership Survey: An Introduction

All of your have heard about it; most of you have read about it; a few know about it. And for the remaining who wishes to know more about it, here is a brief introduction to the Indian Readership Survey (IRS).

IRS is essentially a readership measurement study. The prime objective of the study is to collect readership information from a cross-section of individuals, in great detail, so as to present a true and unbiased picture of their readership habits. On the media front, it also captures information on television and cinema viewership, radio listnership and internet usage. In addition to this, IRS also captures information on various FMCG (Fast Moving Consumer Goods) products’ usage and consumption and durable ownership amongst households and individuals. Since media and product ownership / consumption information is captured from the same household, it enables linkages between the media and product data.

Fieldwork

IRS fieldwork, which lasts for a year, is continuous in nature. It is broken up into two rounds with a balanced sample. In a typical year, the first round’s field work starts from July to December followed by the second round in January to June. Data is reported on a moving annual total i.e., the average of two consecutive rounds.

Scope – All India

IRS 2005 (Round 1 + 2) has a sample size of 235,428 covering 1,318 towns and 3,084 villages.

The entire sample is spread equally between the two rounds. Individual reporting is done for 70+ cities that includes all one million population towns (35) and a few other cities of strategic importance to our users.

Key Findings

North has the highest concentration of SEC A households (13.3%). South is the lowest(7.7%).

Not surprisingly, North has the highest number of illiterate housewives (59.6%), and South has the least (40%).

West has the highest concentration of working housewives (48.5%) and North the least (21.6%). Maybe this explains why most North Indian housewives are obese!

For those who are still ignorant about the way India lives here are some penetration figures. No, not the number of times Indians have sex damn it! These are penetration figures among households, rather!
TV: 40 +%
Pressure cooker: 31 - 40%
Refrigerator: 11 – 20%
Motorbike and CD player: 6 – 10%
Automobile and Personal computers: 1 – 2%
A/C, Vacuum cleaner, Microwave, Digital Camera: < 1%

The top 10 channels both in terms of reach as well as viewers base are South-based. In fact only 25% of the top 20 vernacular channels are non-South.

The MNC’s are trying hard to lure the Indian consumer, but it is still the age-old Indian brand of refrigerator – Godrej that has acquired its space in maximum number of households in the country, be it urban or rural across the zones.

Source: Hansa Research and MRUC booklet. www.hansaresearch.com / www.mruc.net

Friday, October 27, 2006

Bridged Positioning: A game of bridge...again!

Regulars can recall my post on bridged positioning some time ago. If you can't recall it or haven't read it, check Archives 2006-05-07. I had listed a few bridged concepts then – integrated concepts that are both functional and psychological. I found a few more last week, courtesy the class of 2006 Amrita School of Business, Coimbatore.

Here is it...

Macho
Taste
Style
Enjoyment
Trust
Energy
Durability
Sexy
Sophistication
Adventure

Friday, October 20, 2006

The Advertising Essentials - Part 3

Here is the final part. The final word on the subject as well!

7. Be Executionally Excellent

Particular care must be taken with product, preparation and consumption sequences, and pack shots. We must never forget that we are selling products, which people are going to eat or drink. The product must always be presented in the most appropriate and appetite-appealing way.

Consumption shots should realistically communicate this in a totally credible way. Of course, there are exceptions, if you were to advertise for a brand of condoms to name one such!

The development of proprietary product sequences that are properly integrated into the communication (with appropriate voice-overs to underline a product-based consumer benefit) can help to enhance perceptions of our products’ superior quality. Unique and proprietary product shots and mouth-watering consumption sequences that appeal to our senses help to create appetite appeal, to differentiate our products and to motivate purchase.

Pack shots should usually also include the product as it is meant to be consumed, and should be given sufficient emphasis to be impactful, and remind consumers of what to look for on the shelf.

There is a skill in achieving high production standards in print and on film, and there are experts who can help. In order to achieve the peak of perfection, we must be prepared to invest in production budgets, and not be tempted to cut corners. This does not mean that we can substitute strong simple ideas with spectacular shows that hide the lack of a creative idea.

In summary, the questions to ask and answer are:

1. Have we done everything possible to ensure the best product shots?
2. Are the consumption shots realistic?
3. Does the product come across as truly enjoyable?
4. Are the product shots / consumption sequences proprietary to the brand, and consistent with building brand equity?
5. Have we clearly communicated a consumer benefit via the portrayal of the product and its consumption?
6. Is our brand highly visible in order to secure 100% correct brand identification?


8. Bring About a Sale

The unequivocal raison d’etre of all communication is to bring a profitable sale. There is no other reason for investing in brand communication. Although different forms of communication have shorter or longer-term effects on sales, all should be evaluated over time on their ability to build brand equity with our consumers, and in so doing bring about a sale.

In general, we should seek to create communications which have the consumers’ interests at heart, that are involving in content and execution, that are original and provocative, that get talked about, and have the “must see again” factor. In everything we do, we should always strive to build a place for our brands in people’s lives…in the long term.

In summary, the key question to ask and answer is:
Have the right tracking study mechanisms been put in place to measure the contribution of communications (advertising and other forms of communication) to bringing about a sale?

Sunday, October 08, 2006

The Advertising Essentials - Part 2

Hope you savoured the first part of this series. As promised here is the second. The best is yet to come aka the third part. That will appear next week.

4. Be Highly Visible

It costs the same to run a TV commercial whether it is dull and boring or whether it is relevant and involving. A good ad is the best media discount possible. An original creative idea is worth more than a big budget. In fact it’s arguable that the better the creative content, the less you need to spend on media. Repetition of a poor ad won’t do any good, whereas few exposures of a truly creative and effective ad will bring a high return on investment.

The first rule of all our communications is that it must have impact. However, that impact must be relevant to our brand. People aren’t waiting to read our ad or see our commercial. We are intruders into the living room. Sufficient impact to get the attention of our target consumer has to be the ‘price of entry’ for every piece of communication.

Being highly visible has a lot to do with keeping our message and its execution simple. Too often we make our message hard to understand. This happens particularly when we over-compensate for the lack of a single-minded ‘Strong Ideas’ by bombarding the viewer with a mass of quick cuts of complicated images. While we understand what we’re doing, often the consumer doesn’t.

Other ways to break through are to develop additional communications channels and to be more innovative in the use of media.

In summary, the questions to ask and answer are:

1. I know this is interesting for me (I work on the brand) but would it grab the attention of someone reading the paper, driving their car, walking in the street or watching TV?
2. What can be done to make it even more impactful? (In a way that’s good for the brand)


5. Be Locally Relevant to the Core Target

The communication must be built on, and relate to the framework laid down in the Brand Positioning Statements. However these should be interpreted so that they are absolutely relevant to the local needs. Only by fully understanding the consumer, their habits and daily behaviour, as well as their psychological and emotional feelings, can we hope to find compelling messages that tap into their minds in a convincing and believable way.

While it’s vital to make our communication strategies 100% relevant, it’s equally important to make the communication content and executions 100% relevant. Impact alone achieves little in developing brand salience, propensity to buy, and overall brand equity. What’s needed is impact with relevance. We need to bring the strategy to life in an impactful way. We need to catch the eye by planting a relevant idea in the consumer’s mind that produces the sort of reaction: “this is just right for me and the way I live my life.”

In summary, the questions to ask and answer are:

1. Do we know enough about the consumer?
2. Who specifically are we addressing for? For example, existing users? New users? Lapsed users? Light users? Heavy users?
3. What message will motivate them most of all to buy our brand?
4. What is holding them back?
5. Have we included a clear, relevant consumer benefit?
6. Are the necessary research tracking mechanisms in place to evaluate progress?


6. Be Likeable

Every piece of communication for any of our brands is also a communication for the company as whole as well. Our communication must acknowledge this. All brand communication should, by tone of voice and by involving the consumer, help to enhance the appeal of the company too. If people like the way you talk to them, they are predisposed to like you.

Just as we want to be liked as a company, it is equally important that people like our brands, as well as our advertising and the full range of our brand communications. We should aim to achieve the best scores in tracking research for ‘likeability’ of our brands / our communications vs. our competitors.

While we need to be responsible, it doesn't mean that our communication should be boring. On the contrary, we should aim for communications that are innovative, surprising, exciting, human and emotional.

In summary, the questions to ask and answer are:

1. Does the communication reflect well on our company?
2. Does it position our brands as relevant to today?
3. Does it build Brand Equity?
4. Will it be admired, talked about and liked?
5. Are the tracking research mechanisms in place to evaluate?

Friday, September 29, 2006

The Advertising Essentials – Part 1

What I have here are ‘The Eight Essentials’ - management tools and criteria to evaluate creative work prior to production. They are also criteria to measure the effectiveness of our brand communications. I know everyone, and his uncle, in the advertising industry knows all these. But I wonder why we still produce advertising that ends up selling only the creative people who worked on it and not the brand it is supposed to sell in the first place! Which means…. we need to revisit these basics once again. The authorship is not mine; they only have my endorsement!

This might be too long for one blog and hence I wish to spread it over three parts. Read the first now and savour it for now. The sequels will be releasing in a PC monitor near you…shortly!

1. Address the Key Business Issue

Before starting to develop a communications strategy, we need to understand the business issues that the brand faces. Our communications can then be developed in the context of our business goals and brand strategy.

In the context of the brand’s long-term performance, we need to isolate the single most important issue. For example, is to build share against competitive brands? Or, in cases where our brand dominates a category, is it to build the total market? Is it to attract new young users? In many markets too much of our communication is directed at reassuring existing users, and too little is directed at recruiting new users.

The definition of the role of the communication will also have a significant influence on the choice of communication vehicle and medium, as well as the level of investment.

In summary, the questions to ask and answer are:

1. What is the purpose of the communication? Why are we doing it?
2. Does the content of the communication relate to the key business issue?
3. Is the communication medium the right one to address the business issue?
4. Is the investment at the correct level to tackle the business issue?
5. Is this the right brand to tackle the issue?


2. Build Consistent Long-term Brand Equity

For brands to succeed in today’s more competitive environment, it is more necessary than ever before to build consistently powerful brand equity. To do this requires careful management of the way the brand behaves and the way the brand communicates. This is a disciplined, continuous and consistent process of building greater brand salience and greater brand relevance.

The publication of Brand Positioning Statements and Communication Guidelines for each of the major strategic brands provides a focus for all brand communication in all markets. This will ensure consistency and will also ensure that all our brand communication delivers a clear, relevant and competitive consumer benefit.

Our communication should be bringing the consumer closer to our brands and enhancing the quality status of our brands. We want people to feel that our brands are playing a real role in their lives, and are relevant to them. We want them to acknowledge that our brands are of superior quality. By achieving this, our brand equity will be nurtured and strengthened.

In summary, the questions to ask and answer are:

1. Is every piece of communication derived from and reflective of the Brand Positioning Statement?
2. Is the brand communication strategy locally relevant?
3. Does the communication clearly offer a relevant consumer benefit and enhance perceptions of product quality?
4. Have we the right tracking research in place to monitor our progress in building brand equity?


3. Be Focused on a Single-minded ‘Strong Idea’

A ‘Strong Idea’ helps to make the most of our competitive advantage of having the best marketing communications that are measurably superior to our competitors. A ‘Strong Idea’ binds our communications together so that they are cohesive and consistent. Above all, a ‘Strong Idea’ is proprietary. Strong ideas make brands look strong. Strong Ideas build Strong Brands.

What constitutes a ‘Strong Idea’? First, it must be related to the brand. It must involve the brand, in order to get branded memorability. Second, it must be related to, or evolved from Brand Positioning Statement to get relevant communication that is in line with the brand strategy. Third, it must be involving for the consumer and hold their attention, so that it anchors the brand and brand message in consumers’ minds. Fourth, it should be unique. We need proprietary ideas that we can own. Fifth, our ‘Strong Idea’ should work across all forms of communication; not just all forms of advertising media, but all communication vehicles including sponsorship, events, promotions, sampling and relationship marketing. Sixth, it should be enduring over time.

Having developed a ‘Strong Idea’, the task is to keep it refreshed and relevant. The challenge is to strengthen it with every new piece of communication.

In summary, the questions to ask and answer are:

1. Is the idea well branded, relevant to the brand and the consumer, involving and proprietary?
2. Does every piece of new communication build on the Idea?
3. Is all the brand communication properly orchestrated around the Idea?
4. Are the research mechanisms in place to evaluate the growing strength of the Idea?

Sunday, September 17, 2006

Advertising Poetry

Who ever said Advertising is poetry probably meant only this! I scavenged this piece from the net. Author unknown.

When the client moans and sighs,
Make his logo twice the size.

When the client's hopping mad,
Put his picture in the ad.

If he still should prove refractory,
Add a picture of his factory!