Insights are the New Hops.

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hopsIn craft brewing hops are the “it” thing. We’ve been hearing about them for years in beer ads, they are not new. But they have favored status these days in craft brewing. (Did you know Upstate NY was once the hops capital of the U.S.?) Some craft brewers are too heavy-handed with hops and the industry has gone a little hops crazy but we will get over it.

In brand planning, insights are the it thing. Insights never get old to the brand planner…they are just so tasty. A personal example: For a web start-up in the art gallery space, I presented an insight deck called the “thirteen conundrums.” Number 2 was:

#2 Art is personal and subjective, yet having people around with opinions (and credentials) adds value and a level of comfort.

We presented 8 conundrum/insights to the client but in the end we had lots of insights, no idea. To get to the idea we had boil down the insights. Insights are ingredients. Just like hops. You have to do something smart with them. You need to seek out a brand strategy both product-based and consumer desired. Something poetic, memorable and that which predisposes a consumer to buy.

I recently read a deck on SlideShare containing 30 or so planner definitions of the word insight. All were correct. Here’s mine: And insight is not a behavior, it is the observation of the cause of a behavior. Senior or director-level planners are the ones who look at 13 insights and see the operative one. The one to be spun into a brand strategy. Finishing off the metaphor, where the beer gets the credit not the ingredient. Peace.

Cloudy Branding.

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In January IBM decided to sell its server business to Lenovo, China. Today about 15% of IBM’s revenue comes from hardware. Cloud computing and services are the ways to a smarter planet it seems. IBM has a well-established consulting business and a wonderful brand so this new approach will be an easy evolution for customers to understand.

The leader in cloud computing is, and will probably continue to be, AWS (Amazon Web Services.) They were the first big player in on-demand cloud services. Microsoft is doing cloud, as are Verizon, Google and lots of others.

One player doing a great job for a while but who lacks some brand strength is Rackspace. They’re not your average by-the-pound cloud provider. Sadly, their name suggests so. You’ve heard the term value-added-reseller? Well, the name Rackspace is about as far from value-added as possible. They may as well have called the company Cloud Vacancy. Hee hee.

Rackspace doesn’t need to change its name (though it wouldn’t hurt). What it needs is a plan to embed some serious meaning into the brand.  It could use an organizing principle that embodies all the smart people, processes and hardware/software advantages this company bestows upon users.

Brands are not empty vessels into which one pours meaning. They are full vessels — overflowing often — mostly in need of organization, an idea, and discipline. Peace.

 

 

Biggest critic.

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I’m always on the lookout for new ways to extract important information from executives about their companies. My 24 Questions, designed to follow the money, are not great at generating stories… and stories (aka proof/examples) are what create context and power for brand planners.  A flesh vs. bones thing. So the latest question I’ve been dabbling with is “Who is the industry’s biggest critic?” Or, “Of all the opinion leaders in your business, whose approval do you hold dearest and why?” I’ll probably test it out both questions. The first is the more open of the two and presumes a critical but, honestly, I am more eager to hear about praise. It is an open question and can be easily toggled.

Most people, be they executives or consumers, can articulate the opinion leader they most admire. That person is a good source of brand planning study. That person may not want to share all his/her secrets, but often provides shortcuts to pearls of wisdom and grist for the narrative mill.  Successful home brewers’ opinions are worth more to the average beer drinking Joe than are sports stars. An IT professional’s opinion is more valuable than a Best Buy salesperson.  Think “expert witnesses” in a jury trial, to the max.

Find these people, learn why they are great critics, and get their stories. Probe the “doing” part of their role rather than the “critique or praise” itself. Probe for story. Peace.

 

Something to think about.

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If there is one word that symbolized the U.S.A. it is freedom. It’s our brand, if you will. Do focus groups, quantitative…interview Nigerians or Oklahomans. You will get the same one word answer. It’s a little bit of a complicated answer, so you may not hear it if interviewing young children, but they will probably offer stories about schools, pizza, skinny jeans, music and other embodiments of freedom.

The internet has introduced the world to freedom – freedom of information. And it has had wonderful yet drastic changes. Many people and cultures are uncomfortable with the influx of ideas, ideology and real-time communication the web and its apps offer. And why? Because governments are being pressured and replaced, thanks to freedom of information. A story today in the NYT outlines many of the countries curtailing web access — now including Russia. Yes Russia.

As the planet gains increased freedom of information and therefore freedom, there will be growing tumult and restrictions. And America, with all its freedoms, will grow in stature as the bellwether of freedom. The rest of the world will bleed, but then come kicking and screaming closer.  All will be well, but there will be blood and seismic bumps. Peace.

 

Viva le diff…

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There are a couple of places great brand ideas come from according to Robin Hafitz, CEO of Open Mind Strategies. The product or service is an obvious one. Predominant features or functions. Differences. Form factor, taste, speed, etc.  Brand ideas may also reside in consumer need. The using consumer or influencing consumer. S/he wants to be liked, pretty, rich, fit, loved. And lastly, brand ideas may emanate from the category…and by category, for non-marketers, that means the business class of product or service, e.g. healthcare, soda, hospitality. An understanding of consumer’s expectations of a category (all competing products) sometimes can create the context for a good brand idea or position. For instance, banks only care about lending.

But a brand idea is best when it is singular. (“Tastes great, less filling” being an exception in the new lite beer category back in the ‘80s.)  And when the idea is singular it should come from one of the three places mentioned above. That said, I dig hard to make sure the idea comes out of the product. Coke’s idea of refreshment is an interesting example. It is product based but also user experienced. Bonus. Coke’s current brand idea “happiness” is only the latter. And for me, one of the reasons Coke consumption has lessened. Though the advertising is often wonderful (Wieden and Kennedy.)

The word commodity is the enemy of good product and branding. So dig hard. Dig deep. And find an important difference. It will be worth it. Peace.

 

A crafty view forward.

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Gentrification is often seen as a bad word. It’s happening in Brooklyn, Oakland, Brixton and well beyond. Frankly, gentrification is a sign of economic progress. It’s also a demographic phenomenon; a changing of the boomer guard. The Brooklyn surrounding the Barclay Center is very different than it was 10 years ago. The Norwegian enclave in Bay Ridge is no longer what it was decades ago. We are an economically driven, upwardly mobile society when the economy allows. And with so many stories of gentrification, it seems the economies are on the mend.

I talk a lot about the craft economy – an economy where “junk” products and services shipped here in containers from China are less welcome. Where it is better to buy something for more money that won’t go into a landfill in 18 months. Where tradesman and craftswomen are more interesting to talk to than investment bankers. Where lettuce grown on your own property tastes better than something wrapped by Dole in plastic bag.

The craft economy is about taking pride in your planetary contribution. Dialing down pesticides and PVCs. Living a healthier life so you needn’t pump the body up with pharmaceuticals. It’s about fixing up neighborhoods. And reaching out to all kinds of people, to learn the crafts of yesteryear and create the crafts of tomorrow. Marketers are learning from the craft economy. Go forth and prosper.

Peace.

4 Uses for Social Media

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Social media programs typically fall into four categories: brand building, customer care, promotion  and smiley noise.

Brand Building requires that a one actually has a brand plan (brand idea and three proof planks). So long as you’re creating and sharing content that is on-idea and embodies one of the planks, you are making brand deposits — caring about what your customers’ care about and at what you are great.

Customer Care is all about listening.  But this listening has created a cottage industry of kvetchers who have been rewarded for using social to air grievances, as I did this week when tweeting that my Nokia 928 has had to be returned 7 times due to a faulty ear piece.  The fact is, customer care is an important part of social when properly handled.  It also provides metric for the c-suite. And if a company uses it as part of a CRM program all the better.

Promotion is the top reason customers unfollow brands in social media. Data suggests 70-80 percent cite “too much marketing” as why they ban brands on Twitter or Facebook.  Again, many companies are conditioning the market to look to social for deals, just as they sometime reward kvetchers. Promotion is an important part of marketing,. It builds trial, helps hit slowed sales goals and creates rewards. But using social to fire hose freebies and to-fers is not a good lone use of the medium.

Smiley Noise is just what it sounds like.  People think it’s okay on social, because, well, it’s social. But smiley noise would never make it as an ad. It’s noise built pass along. Or to create likes. Or to fill the social air. Here’s some smile noise from Penn Medicine. 

 penn medicine tweet

Social media isn’t a static thing. It needs to live and breathe. It needs to be current and friendly but also important. Social doesn’t get the strategic oversight it should or the respect it should. But it will, oh it will.  Companies with real brand plans are the companies doing it best.  Those are the companies doing all the other stuff best, as well. It pays to have a plan. Peace!

The B word.

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Bravery is big these days. A lot of agencies and marketers have tied their brand promises to the word, including David and Goliath and Mondelez – a couple of forerunners. And why not? Who doesn’t want to be brave? It’s as American as apple pie. I, too, rely on the word in my practice. A boast I proudly share with clients (after signing them) is that there will likely be one word in the brand strategy they may find objectionable. They’ll love the sentiment. Feel the strategy. Know in their bones I get them. They’ll proudly nod at the defensible claim. Yet often, they will sheepishly ask “Do we have to use that one word?”

A $5B health care system asked “Do we have to use the word systematized?”

The world’s largest tech portal asked “Do we have to call consumers browsers?”

The country’s 10th largest daily newspaper asked “Do we have to say ‘We know where you live?’”

The list goes on.

The point is, brand strategy needs to be brave.  If it’s not, is it really strategic? If your brand strategy is not bold, it will be a long, expensive build toward effectiveness. And may weaken your brand planks. (Three planks support your claim.) This brave approach takes brand strategy out of insight land and into claim land. Out of observation mode, into prideful attack mode.

Oh, and the answer to my clients one-word objection? “No, you don’t have to use the word. The creative people will create the words. But you must use the strategy.” And everybody, myself included, bobble-head in relief. Peace.

Facebook Nail No. 1.

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Apple sales growth has slowed while Facebook has risen. He has risen!. And according to Mark Zuckerberg, Facebook has only just scratched the surface. Facebook has finally found out how to make money and I’m sad to report it is nail one in the coffin. Maybe. When the money starts to pour in, and that money is from advertising please take note, it becomes intoxicating. Even a hoody wearing start-up savant can lose his way. According to today’s NYT earning report, most all of the innovation coming out of Facebook today is tied to advertising. New mobile ad formats, new in-stream video ads, image ads in Instagram and some new targeting platform gobbledygook. The good news is Mr. Zuckerberg is not going ad crazy on Instagram, What’s App and Oculus at this time – deciding to understand and allow those ideas to grow first.

But this advertising revenue intoxicant is turning Facebook’s head and focusing too much intellectual capital on the wrong type of innovation. This leaves product and application innovation to the start-ups, who Facebook will buy for scads of money — thereby turning up the heat on the advertising engine. Nail 2.

Apple is not an advertising company. It’s a product company. It will have ebbs and flows which are natural. Good leadership will ease that pain. So long as they stay out of the ad business. Peace.

A $1,000 Pill?

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I read today about a hepatitis C drug that costs $1,000 per pill. It’s called Sovaldi. Don’t get me started on the paucity of pharma names – it seems they are all used up. Marketing consists of 4Ps: Product, Price, Place and Promotion — so I have a question for the marketing director of Sovaldi. Is this a niche product for the very rich? The rich who, by the way, don’t index high for Hep C?

There are three parties involved in this little health care rubric: the drug company, the patient and the insurance company. The drug company (Gilead) is giddy with its 1st quarter earnings. Record earnings. The patients are happy, I suppose, with a drug that presumably is better than what currently exists. And the insurance companies? They must be clearly wondering how this drug got through the FDA.

The pharma marketing director who set the price of Sovaldi must have used a formula to cover R&D, physician detailing, marketing etc., but s/he knew that insurance companies would foot the bill. Very few people can pay $1,000 for a pill.

So who is to blame for approving this non-viable, specialty product? Not to seem cold but someone along the chain must have known this drug price would be a little out of hand. They must also have known insurance companies would pay for it. In what marketing scenario does one price a product so high that nobody but a very few can afford it?  Entire families are going without healthcare in the ACA Age because of the price of one of these pills. Something is broken. And someone from the insurance industry needs to step up and fix it. Peace.