Archive for July, 2009

My handbag has a low cost per wear

Thursday, July 23rd, 2009

Christine Watson the marketing manager for the Outlet in a recent tongue in cheek conversation justifies the price of her expensive handbags citing the theory that the “cost per wear is very low”. The statement is a mathematical calculation correlating the value of the garment  to the frequency of its appearance in Belfast hippest bars.

Sausage Bag

Expensive Sausage Bag

I mentioned to  Andrea Cleland a member of Ion staff for the past seven years “I’m nipping out to get sausages for tea”. Andrea retorted “Coffey’s butchers have a great rib eye”  My purchase went from £1.50 for sausages to £9  for rib eye when I bought the accompanying pepper sauce.

In the internet era we are now fluent in Cost Per Click,  or Cost Per Thousand (CPM), but the real value is the Cost Per Referral. In a recent presentation I gave I asked the attendees how many welcomed the referral client over those that came from an ad.  The answer was unanimously skewed toward referral.  But what do we do to assist our advocates to help promote our business?  What stories do we give those that are likely to help sell our handbag or rib eye to spread our story?  Stories and referrals are the best way to get business.  The skill in marketing both online and offline is in the creation of the story.

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Juicy Fruit, Gourmet Jelly Beans and Point of Sale

Friday, July 17th, 2009
Juicy Fruit Point of Sale

Juicy Fruit Point of Sale

Recently on a road trip I spotted some Point of Sale marketing for Wrigley’s Juicy Fruit.  On picking up the packet I examined to see if the confectionery had either juice or fruit.  The answer was not surprising that neither was listed as prime ingredients.  It got me thinking about how important Point of Sale must be for commodity retail products.

With a quick Google search, I found that Juicy Fruit was launched in 1893 and is still in production today.  It was a favourite of mine in my teens and the Point of Sale must have lured me into becoming a fan.

Gormet Vending

Gourmet Vending

Fast-forward to this week when I was in the gents toilets in a bar called Ten Square in Belfast.  One metre away from the urinals and only one button away from Trojan Condoms I could buy both Jelly Beans and Wrigley’s Gum.  No matter how much I longed for the taste of gum or the Gourmet Jelly Beans, I wasn’t in any way tempted.

Point of Sale is not my specialty but it is considered to be below-the-line marketing.  The most successful techniques of web marketing are also below-the-line activities. The story for both Web Marketing and this example of Point of Sale are the same.  When trying to connect with a customer, quite often we think about the products or services we want to sell and not about how to present them. Given the choice would you buy Juicy Fruit from the toilet vending machine?

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Advertising is the price for an unremarkable product

Wednesday, July 15th, 2009

“Advertising is the price for an unremarkable product” Jeff Bezos, Amazon founder said this during his annual shareholders meeting in May 2009.

Advocates and fans talk about best of breed products and services enthusiastically. This is why Google need not advertise their search engine while Microsoft spends $100M on another attempt to challenge Google.  It is why Belfast’s Mourne Seafood Bar fills every evening without advertising while the mediocre competition try to lure a crowd with ads in local fashion magazines or price incentives.

The story of the tomato sells better than the taste

The story of the tomato sells better than the taste

Creating a conversation or story is the best way to spread a message.  A restaurant that interviews the local tomato supplier and pushes the story out in their email campaign and social networks will create a conversation.  The truck sales man that explains how his customer Frank saved money by using less fuel in a long haul run from London will create a conversation.  The bank that thanks their student account holders for their business while in education instead of just sending them data (such as bank statements and flyers), will cause a conversation.  All of these conversations are great adverts that spread.

I think Jeff’s point is that the less conversation-worthy the product or service is, the higher the advertising budget needed to compensate.

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Why Thin Lizzy is Better than Gucci

Tuesday, July 7th, 2009
Phil Lynott - A good pose in it's day I'm sure

Phil Lynott - A good pose in it's day I'm sure

When Thin Lizzy released their magical album Jailbreak in 1976, the title track of the same name contained amusing lyrics;  “Tonight there’s going to be a jailbreak somewhere in this town”.  The precise location of the jailbreak is obvious – the Prison.  We forgive the band because of their creative license and ability to move us in other ways.

Gucci for years have shouted at us installing the virtues of their brand with a relentless onslaught of glossy ads containing gorgeous people.  They have created design masterpieces but have had their share of catwalk boo-boos. We have let them away with their errors due to creative license and their ability to move us in other ways.

Gucci’s recent attempts at using online social marketing site Twitter however are criminal. The error goes beyond creative license and the marketing team should be jailed for their efforts, or lack of.  They have adopted their above-the-line marketing strategy and used it on the web, giving us a spectacularly good example of how not to engage with customers using social media.

In Gucci’s twitter feed they have tweeted 16 times.  11 have been ads for their site and four times requesting that advocates help them move from having 3800 followers on Twitter to 100,000 followers! – Why on earth would I help? Are we supposed to feel sympathy? You haven’t earned my trust or respect yet.  You haven’t given me a reason to help you!

A clear case of “Searchlight on my trail, Tonight’s the night all systems fail” – Thin Lizzy, Jailbreak.

(twitter @GuccibyGucci)

Gucci twitter feed

Gucci twitter feed

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Guest Blog: Absence of Leadership a Sad Indictment on the Communications Industry

Wednesday, July 1st, 2009
Guest Blogger: Gareth Dunlop, MD of Tibus

Guest Blogger: Gareth Dunlop, MD of Tibus

Imagine you are a small business owner with 10 to 50 employees.  Your business has been growing well for nearly ten years now and is really starting to perform for you.  You were just planning a new phase of growth in the early part of 2008 when deep recession hit.  Your margins are squeezed, your people are stressed, and not only are there no bonuses this year, there are no pay-rises for any of your staff.  You are concerned that you will need to lay people off.

You check the local business press for inspiration and guidance.

What do you read?

“Keep your foot on the advertising pedal”
“Marketing through a recession”
“Investing in building your brand”

The titles have been altered to ensure that this doesn’t become personal, but the message in each is the same – that businesses should maintain or increase their marketing spend in a recession.

Really?

So given the choice of laying someone off, or reducing marketing, you should lay someone off?
Or given the choice of a direct foreign territories sales visit to close a hot lead, or continuing to market, you should market?
Or given the choice of finalising a product innovation, or continuing marketing investment, you should continue marketing?

The communications industry needs to wise up and grow up.  I have yet to read a single article by an author making these recommendations who has put a penny of their own money into implementing these recommendations for their own business.

Clearly there are many businesses who should definitely reduce communications spend.  And more importantly, there are yet more businesses who radically need to alter how their communications budget is spent, by realising that the day of the interruption marketer is gone forever, and has been replaced by the age of the permission based marketer.

And that permission based marketing happens online, in a measurable and accountable manner.

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