Tag Archives: Forbes

January 30, 2012 · 10:58 AM

The Trouble With Kids Today

Does when you were born affect the way you feel about brands?

And do recent economic and demographic trends have an impact on communications crises?

I don’t know the answers to these questions, but a recent article got me to thinking about how expectations, recessions, social media and spare time can impact business today.

Rebecca Lindland has a thoughtful piece in Forbes this week about the youth of America, and how generational differences are cropping up in the form of American Idol contestants. Lindland cites research from DYG Research and IHS Consumer Markets on Gen Y (born between 1978 and 1987) and those born in 1988 and after, as two distinct groups:

“Generation Y isn’t what conventional wisdom and demographers alike first thought: it isn’t one big giant mass of 80 million kids. Instead, it is two very different, very unique cohorts—Generation Y and what I call Generation Green—both about the same size but growing up in very different environs.

Currently 24-35 years old, [Generation Y contestants] were brash and self-possessed in their youth, and American Idol provided the ultimate stage, inviting these kids to display their talent in the public eye. Social media was still relatively young, and YouTube wasn’t around yet. It appealed to the sharpest expressions of this young cohort – self-absorbed, obsessed with fun, and chock full of self-confidence (DYG). This was their own personal platform – and they could bring their equally fascinating, blindly (deafly?) supportive helicopter parents along for the ride to riches.

Generation Green, born after 1988 and currently 24 or younger, is the first generation to grow up with hybrid AND electric cars from mainstream brands (Toyota Prius, Chevy Volt, and Nissan Leaf) as part of their buying options, and they recycle religiously…Long before the Occupy movement, DYG research predicted these kids would take ‘part in a demonstration, rally or protest to promote a social or political cause’.”

Combined, the two generations comprise 80 million Americans, roughly a quarter of the population, are the biggest users of social media, and are hardest hit by the recession.

On the one hand, there are 40 million Americans who were raised in a boom economy, whose self-esteem was valued to the point of absurdity (“everybody gets a ribbon!”), who experienced impressive personal and financial success in their early 20s, and whose expectations are perhaps a bit unrealistic.

On the other, 40 million Americans who’ve seen the darker realities of our economy yet retain a Utopian vision for the world.

Add to this mix a boatload of social media savvy and the popularly held belief that their plight is due to the greed and misbehavior of the fortunate few, and you have a recipe for trouble.

Last week’s #McFail may be an example. For those who missed it, as part of its strategy to promote relationships with family farmers and other “good guy” suppliers, McDonald’s launched a Twitter campaign using the hashtag #McDStories. Perhaps predictably, the hashtag elicited all manner of deliciously evil anecdotes, and the Golden Arches quickly killed the campaign.

Domino’s Pizza employees posting YouTube videos of themselves doing yucky things with people’s food could be another. (The two employees charged with crimes were aged 31 and 32, respectively, making them members of Gen Y.)

One could even make a case for the Occupy movement (although these groups count members from all walks of life and age groups) being a natural consequence of these forces. (One could make the same case for the Tea Party movement by viewing the opposite side of this same coin.)

Even if your company’s social justice policies are otherwise beyond reproach, if your corporate commissary dispenses coffee that was picked by child laborers and sold at below-fair-market prices, be prepared to hear about it. The first attack will come via social media, then the MSM, and then social media again as the “news” gets picked up and amplified.

For the record, I’m a member of Generation X, the group that brought you manky flannel, grunge music and Monica Lewinsky…so my peers and I are not without blame. And who knows what we would have done during the 1990-93 recession had we had access to social media.

Crises come from all angles, are perpetrated by all manner of people and recent events could simply be a reflection of the times.

Or, this could be the new normal.

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April 5, 2011 · 2:13 PM

Coupons Dazzle But Brands Still Matter

Great post on Forbes.com today from Robert Passikoff, speaking to the proliferation of Web sites, apps and social networks that enable consumers to buy stuff at a deep discount.

Passikoff admonishes marketers not to allow the lure of a quick bump in sales to distract from the perceived value only a good brand can offer:

“Yes, everybody is delighted with a deal—or they were. But given the current state of consumer knowledge of the marketplace and access to information not controlled by the brand, what used to be ‘delight’ has turned to ‘expectation’.”

My former client, hotel magnate John Q. Hammons, used to say, “the only person who ever got rich selling on price was Sam Walton.” And he was right.

When the only feature you have to sell is the fact that you’re cheaper than the other guy, you’re always susceptible to someone else undercutting you by a dollar and taking your customers away.

What are you doing today to win the hearts and minds of consumers, whose choices, access to information and access to discounts is greater than ever?

What tangible and intangible benefits are unique to your product or service?

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February 22, 2011 · 10:17 AM

Wisconsin, Unions and the Reservoir of Goodwill

My friend and former colleague Jay Ferrari @trianglechoke suggested I file a post inspired by a piece by Rick Ungar on the Forbes.com blog from yesterday.

In “Public Employee Unions Failing Badly at Public Relations,” Ungar writes:

“The minimum wage, the forty-hour work week, safety standards in the work place, maternity rights, employee pensions and health care benefits– all of these are just some of things that never would have existed in the United States had the union movement not become a part of the work environment in this country. When people will take a side against their own self-interest, it is a sure sign that one side has done a masterful public relations job while the other has failed miserably.”

I must disclose, much to Jay’s dismay, that I personally am on the side of Gov. Walker and hope the runaway legislators now hiding out in Illinois at some point return to Mad Town to carry out the business of the Badger State—and that public employees there will eventually pay half of their pension costs and 12.6 percent of their health care premiums.

That aside, Ungar makes a great point that shouldn’t be lost in the larger debate: all of us today benefit from the union struggles of the last century.

What’s too bad for the unions (and good for the people of Wisconsin) is that the unions have done such a poor job of promoting that greater good, or the many good works of union members across the country. Unions and union members are active in community-building, charitable causes and other worthy endeavors.

Ungar observes that one is hard-pressed to find news of these good works on union Websites or through a simple Google search. The unions have not established the ongoing positive awareness that we in the PR field call “the reservoir of goodwill.”

Gov. Walker, facing a $3.6 billion shortfall in the state budget over the next two years, has leveraged the state’s financial woes and the fact that public sector employees in Wisconsin earn roughly $15,000 more in salary and benefits each year than the average private sector worker to build his case.

In these tough economic times, the unions do not have the advantage of widespread positive public awareness to offset the governor’s argument and sway the public.

To make matters worse, teacher “sick days” and other strategies designed to weaken the Governor have only steeled the public’s resolve against the unions. It’s tough to make “it’s all about the kids” stick when you’re shutting down schools.

Conflict is a way of life and you’re not going to win the debate every time. But if you don’t have a positive perception to begin with, your chances of success in the court of public opinion are slim and none. For the unions, I think Slim just left on the bus.

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December 2, 2010 · 9:24 AM

The Five Types of Media All Marketers Should Measure

Nice piece today in Forbes.com from David Edelman and Brian Salsberg on the changing world of media and how marketers should adapt their thinking when forming communication strategies.

While traditionally marketers have categorized media as “paid” (advertising), “owned” (your company Web site, e-mail blasts, etc.) and “earned” (PR story placements).

Edelman and Salsberg suggest adding two categories to the mix: “sold” (such as when other marketers purchase advertising on your Web site or blog) and “hijacked” (when social media agitators take it upon themselves to besmirch your brand’s name).

Additionally, the “earned” media category is taking on meaning beyond the traditional “advertising equivalency” measure traditionally used to evaluate public relations’ ROI.

I would suggest that “earned” and “owned” are merging, as Edelman and Salsberg observe with Starbucks‘ achieving 10 million fans on Facebook and leveraging this fan base to energize its “My Starbucks Idea” site, drive customer loyalty and sales revenues.

Donna L. Hoffman and Marek Fedor offer ideas on how to measure the value of these strategies in this essay.

It’s a new world out there. Consider all avenues and evaluate how each works with the others to deliver sales, revenues and customer value over time.

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December 23, 2009 · 10:02 AM

Beware the Billionaires Defending the Status Quo

I am doing my best not to throw stones at Susan Credle from Leo Burnett, who’s interviewed in Forbes.com today, but I really can’t help it.

I’ve never met Ms. Credle, but I respect the heck out of Burnett, so I figure she’s gotta have a lot on the ball.

But I find it curious that she’s defending the status quo at a time when all the big brand shops are making their way to the LaBrea Tar Pits.

Credle says that using Web analysis to target ads based on a given consumer’s behavior casts too small a net, and that the traditional advertising model, which “exposes people to choices” is a better way to build a brand.

She’s right that marketers should not panic during tough economic times, and that the knee-jerk reaction of cutting marketing and advertising always erodes a brand’s cache to the point where some never recover.

But not using all means available to efficiently direct the message toward consumers who are likely to try your product or service (and then leverage their joy to motivate other consumers to do the same) is wasteful and represents the old way of thinking.

There’s a helplessness and an ignorance here that troubles me. If I understand what she’s saying, then the big agencies are clinging to strategies that combine the old “shove it down your throat” branding campaigns with meaningless statistical data to sell stuff as though it’s 1965.

News flash: “Mad Men” is a TV SHOW. Welcome to 2010, people.

Ries & Ries got it right about eight years ago. Advertising is an art form, but it’s lost its usefulness as an effective sales tool. Yes, your TV spot is pretty to look at. Yes, we admire your billion-dollar-buying power and your fancy offices. Yes, I’d much prefer to wear a grey flannel suit than jeans and a T-shirt.

But all that stuff costs money. And to expect the client to pay your agency’s freight for the two account service reps, the art director, copywriter, creative director, media planner, media buyer, producer, director, union talent, etc. that it takes to get your message to the marketplace is living a three-martini dream that doesn’t exist anymore.

I miss those days of excess as much as the next exec. Trust me. I am just old enough to remember the ’80s when we were all living large, and that was a lot more fun than sweating it out in a basement gym and playing “Eye of the Tiger.”

Times change, and Leo’s gotta change, too. Or they could all wind up selling apples.

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November 17, 2009 · 10:54 AM

Everybody Loves a Good Story

Mike Linton has a great post today in Forbes.com.

In his commentary, he laments the lack of creativity we’re seeing in advertising these days and reminds us all that, no matter how much we want to apply analytics and measurement to ensure we’re maximizing our return on marketing investment, having a compelling story to tell is what really sets your brand and your company apart from your competitors in the long run.

For me, it was a breath of fresh air on a day when I:

a) spilled coffee on my laptop and fried the monitor;

b) ventured out in the rain to the police station to pick up a copy of a police report for a client (who had her car window smashed and items stolen while meeting at the palatial offices of Nation Ranch a few weeks back), only to be told that they wouldn’t give me a copy of the report unless I had a notarized letter of authorization; and

c) spent a lot of time trying to remember the impossible password to our wireless internet server so that I could use my clunky old back-up laptop to maybe get some work done.

Linton’s words remind me why I started Nation Ranch in the first place, and why I enjoy helping clients tell compelling stories that set them apart and sell.

So while you’re slicing and dicing your Google Analytics report and fine-tuning your SEO strategies tonight, don’t forget that it’s your own unique story that really makes the difference.

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