Ethos, Themes and Values

Understanding our target audiences and targeting content to them is a fundamental aspect of web design. Scott (2007, p 33) advises us to identify and articulate each target audience and develop content specific to each. He recommends creating a persona for each target audience.

What information do we need for content to appeal to each persona? In his book, Culture and Persoanlity, Wallace (1963, p 101) recommends knowing the themes, values and ethos of a group to prepare appealing content. A theme is how the group sees the world. Wallace suggests a good way of discerning this is a review of the literature or theatre the group patronizes. What books or movies are their favorites?

He catalogs several themes in literature:

• The “western” – hard to find good people must fight tirelessly to bring order to a chaotic world


• The “detective” – idealists disillusioned with the existing order do the right thing for the wrong reason


• The “mystery” – clever and logical heroes politely work to maintain what they believe is a righteous order


• The “action” – well intentioned brutality


• The “drama” – heroes not concerned with social welfare, seek gratification of private desire.
  

Ethos is a style or form of emotional experience. Ruth Benedict, the grand dame of the cultural and social study of groups and a professor to Margaret Mead (see Wallace, 1963, p 103), distinguishes two type of ethos for groups: Dionysian and Apollonian. The desire for the Dionysian is personal experience, while that of the Apollonian is moderation.

Finally values (p 101) are concepts or mental images that motivate a group to action. They are either positive or negative, moving a group towards or repelling them away from some idea. Health, membership in a prestigious group, leisure, and affluence are examples of such motivational food pellets.

This type of information should be stored in our customer database in addition to the raw data on demographics, and so on to help formulate a meaningful appeal after we have segmented target audiences.

References
Scott, D (2007). The New Rules of Marketing and PR. Wiley.

Spiller, L. and M. Baier (2005). Contemporary Direct Marketing. Pearson/Prentice-Hall.

Wallace, AFC (1963). Culture and Personality. Random House.

Bove and Mitzifiris on Openness

In their article, Personality traits and the process of store loyalty in a transactional prone context, Bove and Mitzifiris (2007, p 507) give a quick and informative review of customer loyalty and the value it has to the marketing efforts of an organization. Customer loyalty results in better financial performance, forgiveness of service failures, and less price fighting. They assert that retailers must understand their customer’s loyalty orientation in the challenging business environment of today. The main topic of their article is an empirical study of how customer personality traits affect loyalty.

A well established personality profiling framework, the Five Factor Model (FFM) is used in deriving an answer to the key question, (p 508) “How can a retailer determine which customers have a relational orientation?” Their evaluation is how the FFM personality traits impact trust, commitment and satisfaction and in turn how these three factors affect loyalty with a fast food retailer.

This paper gave a good overview of the Five Factor Model, an important model for any discipline dealing with personality, including marketing. It also gave a quick summary of the literature related to customer loyalty – its benefits and the factors that affect it (p 509), trust, commitment and satisfaction. They also describe the NEO-PI measurement instrument (survey) that can be used for personality classification (p 510).

Bove and Mitzifiris posited fourteen hypotheses (p 509) about the relationship between personality traits and the three antecedents of trust, commitment and satisfaction, as well as between these antecedents and loyalty. The first method used was a literature review to establish the link between trust, commitment and satisfaction with loyalty. Previous empirical work had established these relationships so they built on that foundation.

They next designed a survey to use for measuring customer personality, the NEO-PI measures, and tailored it to their intended investigation. They used a Likert scale for each question’s response 1 to 5, strongly disagree to strongly agree. Rather than use a random sample of fast food retailers, they selected two with intent. They omitted one of the Five Factor Model dimensions, openness from the survey design.

They found (p 512, 514) that the relationship between the antecedents and the behavior aspect of loyalty is not explanatory or predictive. Additionally, of the four Five Factor Model personality traits they tested, only emotional stability had a material relationship to the antecedents, in this case trust (p 512). On the other hand, their model fared better with the attitude aspects of loyalty (p 515). Trust, commitment and satisfaction do have a positive correlation with attitudinal loyalty in fast food retailing.

I do think Bove and Mitzifiris (p 509) were hasty in the exclusion of the openness factor in the personality profile. They assert that there is no research evidence “to support an association between openness to experience and relation orientation.” However, Barbanelli, et al (1997) establish the link between openness and individuation and there is literature showing the link between individuation and commitment or even loyalty directly. For example, see Gnaulati and Heine (2001) or Chan and Misra(1990).

It also seems intuitively obvious that the personality factor of openness, which incorporates need for variety, would have an affect on commitment, especially in food retailing. Because of this, I would change the hypotheses model (p 510) constructed by Bove and Mitzifiris as noted by red coloration in the following diagram:

Despite this misgiving about openness, their investigation was able to make two significant conclusions. First, the pathway to loyalty proposed by Garbarino and Johnson for a theatre company may not be readily generalizable. Second, regarding the attitude towards the store (as opposed to buying behavior), trust, commitment and satisfaction do seem to be generalizable.

References
Barbaranelli, C, and G Caprara and C Maslach (1997). Individuation and the Five Factor Model of Personality Traits. Retrieved on August 27, 2008 from EBSCOHOST.

Bove, Liliana and Betty Mitzifiris (2007). Personality traits and the process of store loyalty in a transactional prone context. Journal of Services Marekting. Retrieved on August 26, 2008 from EBSCOHOST.

Chan, K and S Misra (1990). Characteristics of the Opinion Leader: A New Dimension. Journal of Advertising. Retrieved on August 27, 2008 from EBSCOHOST.

Gnaulati, E and B Heine (January 2001) Separation-Individuation in Late Adolescence: An Investigation of Gender and Ethnic Differences. Journal of Psychology. Retrieved on August 27, 2008 from EBSCOHOST.

Podsakoff, P, and S. MacKenzie, J. Lee, and N. Podsakoff (2003). Common Method Biases in Behavioral Research: A Critical Review of the Literature and Recommended Remedies. Journal of Applied Psychology. Retrieved on August 27, 2008 from http://www.usq.edu.au/users/patrick/PAPERS/Common%20Method%20Variance.pdf

Microsoft and Open Source: A Gambler's Ruin Competition

Open Source software strikes at the heart of Microsoft – its value add to the economy. Open Source offers for free the software that Microsoft sells and that is the basis for its enormous revenue stream.

I think the relationship between Microsoft and Open Source is a Gambler's Ruin Competition. This is a rivalry between two parties, one with a large, well established position and the other with a small position but able to compete effectively on individual transactions. The classic example is a casino versus a professional gambler who has a system (also known as a martingale) that enables them to win more than 50% of the time.

Microsoft might see a rapid reversal of fortune if a few strategic buyers go Linux. These would be big enough Open Source wins that they reverse the over-dominating share, the house advantage Microsoft holds in the market.

ISVs would then become interested in Linux; additionally, Linux vendors could extend the purchase price advantage into a clear TCO advantage by improving usability and administrative services; end-users and help desks begin training on Linux.

The key strategy for Microsoft is to keep that from happening. Keep the “strategic buyers” in Windows. Government and large corporate buyers - they are far and away the most important publics.

For a more comprehensive analysis, see Redmond Review Gamblers

Culture and Personality

A Canadian anthropologist, Anthony F.C. Wallace published a great book in 1963, Culture and Personality. He was largely forgotten and is now obscure, but he developed a theory of culture change that anticipated the very problems encountered by organization theory and marketing. He used historical studies of large social groups to warrant his conclusions but one of his application areas was in advertising. The process is the same in advertising as it is with a culture, a donor group introduce a change or innovation to a recipient group. Culture change.

He proposed a solution that is the heart of modern integrated marketing communications, to establish connections to publics for building long-term relationships. He suggested a variety of segmentation strategies based on modal personalities in these publics (we might say personas). A communication will have different levels of influence and effect on different modal personality types. He developed an influence scale as a guideline to improve the likelihood of group acceptance of the new ideas.

His criticism of advertising then (50’s and 60’s) was that it was too severe in its attempts to influence independent consumers, pegging it at the threat level on his scale. He notes (p 135)

“[Threat] is the device frequently used by commercial advertisers attempting to induce a target group to accept its product, non-buyers are threatened with loss of friends, job, health and sexual satisfaction if they fail to buy …”

His recommendation: move several steps down the ladder to peaceful negotiation. Here a mutually beneficial relationship is developed where the interests and motives of both parties “are well satisfied on a long-term basis.”

Law of Requisite Variety

With Cool Hand Luke (see imdb ), “Rabbit gonna run” results in a “Fay-yah to communicate” lecture and thumping from the warden. With web sites, just the opposite: a failure to communicate results in a rabbit gonna run.

In his book "The Social Psychology of Organizing", Karl Weick offers an intriguing insight about communications generally that I think applies with force in Websites where we can’t see the rabbits come and go, except by their abstruse reflections in our web logs. He defines the Law of Requisite Variety:

“the variety in a system [such as a Website] must be at least as great as the environmental variety against which it is attempting to influence.“

For Web site designers, our site must have appeal to our different publics. Weick gives as an example a photographer, and I give a Website Design corollary:

• A photographer has 5 subjects each at a different distance from the camera.
• A IMC Website designer has 5 different psychographic segments to reach with the site
  --
• The photographers camera must have 5 distinct setting to capture all subjects with uniform density and clarity
• The Website designer must have content for 5 distinct personas and apt navigation for each (as an example see WVU Home Page)
  --
• If the camera has fewer than 5 settings it lacks requisite variety and will not register with sufficient detail to depict with accuracy
• If the Website does not have content of relevant interest to the 5 personas some of the visitors will leave in frustration.
  

Paul Gillin (see Paul's blog) in his excellent book The New Influencers describes an approach for addressing a diverse audience such as a University Website.

My conclusion, the home page is an important traffic cop to direct personas to their appropriate content.

We also need to be a Web boss like at right, because the customer, well he's got rabbit in his blood, and he'll run.

Requiem for a Rolodex

Denise Schoenbachler, Geoff Gordon, Dawn Foley and Linda Spellman published attractive and informative guidance (see http://web.cba.neu.edu/~fsultan/Database%20Marketing.pdf ) for creating a customer database useful in Database Marketing. As a first step, they recommend that a vision document be prepared to explain the corporate need, to record user profiles, and to designate a project sponsor.

If the primary corporate use is list management, they suggest that a service bureau, such as All Media (see http://www.allmediainc.com/index.html) would be the most cost effective approach. On the other hand, if the corporate need is for segmenting customers, correlating customer traits with purchasing behavior, or which customer personas are the most profitable then a database development effort is necessary.

Sources of Feed Data
To build such a repository both internal and external sources of data must be filtered and merged. What types of information are typically stored and where can we get them? Spiller and Baier (2005, p73) list the usual suspects:

• Demographics
• Psychographics
• Financial history
• Prospect interactions
• Prospect Interaction Dates
• Address and phone number
• Profitability or net financial value

Psychographics is synonymous with life-style and personality. Such a profile can add supersonic energy to a direct marketing campaign by segmenting prospects for more effective communications (see Spiller and Baier, 2005, p 39). It may be derived from the appearance of a customer on various lists from different publications of note. A fine and handy source, however, remains The Lifestyle Selector by Equifax. It is fed by responses to surveys and completed product registration cards.

Spiller and Baier (pp 37-39 ) further disclose other sources of powerful information. These include the CensusCD Neighborhood Change Database. Census data (p 38) is a good source of demographic data about our prospects. This is the usual necessary demographics: age, gender, education level, income level, occupation, and type of housing. They (p 13) suggest that customer lists from prominent publications may have relevance not only as data to overlay the customer database but as channels for direct response print advertising.

There is also (p 13) the implication that web site audit logs are useful sources for data mining to see where visitors to the web site sourced from, as well as what landing pages they reviewed and for how long at they stayed at the web site. Their CGI headers will contain their IP address, and the Internet Service Provider (ISP) can be traced from that. It may be possible to purchase a list to get the demographic data and other monitoring data held by the ISP.

Additionally, there are compiled lists from third parties such as the Department of Motor Vehicles, Birth records, and other state and county court house data. Regarding information from governmental sources, Phelps and Bunker (2001, p 34) caution that

“Although the individual-level nature of public records information increases its utility for marketers, the use of such individual-specific information has contributed to consumer privacy concerns.”

Is all lost? Direct Marketers may be able to use access statutes to retrieve the desideratum. The Freedom of Information Act (FOIA) is a popular choice and there is no specific exclusion for commercial use of the information (p 35).

However, they summarize legal arguments (p 44) on the topic with the assertion that while FOIA may not restrict use based on motivation for obtaining the information, it does not guarantee access for commercial purposes. They conclude (p 46) that

“the creation of provisions that discriminate based upon the motivation of the requester seems a slippery slope that legislatures should avoid starting down. Marketers must realize, however, that public opinion, like gravity, can work to push legislation down this slope.”

How to Grow the Database
Spiller and Baier (2005, p 52) suggest starting with a simple name and address database and then incorporate geographic, demographic and psychographic data about each prospect. They explain (pp 75-79) how to calculate the Life Time Value (LTV aka PAR) of a customer and to decide if the cost of obtaining and maintaining the customer’s data in our database is a worthy exercise. The PAR Ratio is cost/PAR. If this ratio is less than one, then the customer’s record pays its freight.

According to them (p 7) the process should start with defining personas for the prospects themselves:

• Who they are
• What they need and want
• How the college fit into that
• Where they are located
• When they are ready to interact with the college
• Why they interact
• Their level of commitment
• What channels for distribution are most efficient.
  

Crucial facts from the databases would be the recency, frequency and monetary value of interactions with prospects (p 10). This will help profile an expected relationship with the prospect and the your company. It is vitally important the data obtained externally be guaranteed fresh (p 44). Stale data results not only in wastage but in antagonism to non-prospects getting spammed.

Lost Your Keys?
Keys are a critical part of joining data from different sources so you can be sure that you are adding the correct information from one source record to its corresponding record in another source (see Olson, 2003, p 176). Keys are fields or attributes that uniquely identify a record such as SSN but not like name. However, having such keys across all lists is a luxury, although Spiller and Baier have a remedy to take the place of unavailable keys (p 65) – a match code.

Match codes are formulated from Name and Address information and can be used to match records from different source so they can be properly merged (p 66) . They can also be used to purge duplicates. A counter of the duplicates discovered should be incremented on the retained record before the duplicate is deleted (p 68) because showing up on two or more lists is an indicator of the strength of interest for that prospect.

The database should also be updated with results from our own integrated communication campaigns to appealingly increase efficiencies. Schoenbackler, et al say that the different promotions or specific motivational actions and the responses to such, are

“perhaps, the most valuable benefit of the database. Marketers no longer have to
accept John Wanamaker’s lament that ‘half of what I spend on advertising is
wasted – the problem is which half?’”

They also recommend that a marketing analysis be conducted on the customer database to sub-serve two important functions: 1.) profitability; and 2.) Trends. Trends analysis is a dramatic synthesis of our most productive through least productive customer profiles – i.e. who are the whales.

What problems can confront us? Our old friend data quality is a usual suspect. See http://gmrwvu.blogspot.com/2008/07/impact-of-data-quality-on-new-media.html . Traditional project management failings can torpedo this type of effort but they can work their powerful wreckage on any type of information technology effort.

Schoenbachler, et al sum up that database marketing is a necessity not an option.

References

Olson, Jack (2003). Data Quality; Morgan Kaufmann Publishers.

Phelps J., and M. Bunker (Winter 2001). DIRECT MARKETERS’ USE OF PUBLIC
RECORDS: CURRENT LEGAL ENVIRONMENT AND OUTLOOK FOR THE FUTURE. Journal of Interactive Marketing.

Spiller, L. and M. Baier (2005). Contemporary Direct Marketing. Pearson/Prentice-Hall.

Impact of New Media on Database Marketing: Supersonic Energy

According to Spiller and Baier (2005, p 15) direct marketing contributes $2T to the U.S. economy and the industry employs 16.1 M people. They note that direct marketing is interactive, measurable, as well as response and database driven. MarketingCharts (see MarketingCharts ) reports that the Direct Marketing industry has experienced growth in the 18 quarters prior to first quarter 2008.

Direct marketing is the largest share of marketing services (see Share)


and Marketing Services is the largest segment of the media industry:


Business is changing its relationship with marketing. Spiller and Baier (2005, p 13) note that traditional advertising is largely unaccountable. Weber (2007, pp 115-116) notes there is a convergence between what management wants and what marketing can deliver with new media.

Additionally, direct marketing with the new media is addressable, interactive, dynamically customizable and contextual. Contextual means that corporate buyers will know how a customer came to them and have a basis for predicting where the customer is in the buying/subscribing/joining process. Database analytical services present context so marketers can “predict future behavior and use promotional strategies that will not only drive prospects to their web sites but also engage them in meaningful and ongoing transactions once there.” John Naisbit (see Spiller and Baier, 2005, p 13) says we are drowning in information but have little knowledge. Direct marketers are getting knowledge from database analytical services to customize messages to the buyer.

Larson (see FreeLibrary) says that more analytics are available with new database technology, and this enables marketers to refine their prospect list for customized messages more suitable to the specific publics being reached. Two other technology changes that have favored direct marketing according to Spiller and Baier (2005, p 16, 13) are in printing and the Internet. The powerful, low cost printing on PCs today as well as computerized type on large scale presses has initiated a “demassification” of print so that direct marketers can print sophisticated newsletters, brochures, and sales materials quickly and at low cost. The Internet is a ubiquitous medium for interactive, one-to-one communications from direct marketing to customers, ranging from email, to Web sites, to cell phones through SMS gateways, and a myriad of other creative approaches.

In summary, the growth of direct marketing is enhanced by high-tech such as New Media, and data mining. Goldstein (2006, p 16) concludes that high-tech is changing the nature of marketing, by enabling more targeted and values driven approaches that favor direct marketing.

“Brand and messaging strategies will become more targeted and values-driven. And to compete, companies will create their own direct channels to reach stakeholders with internet broadcasting, e-mail and other direct marketing techniques. Companies will establish their own databases of shareholders and customers willing to defend the firm.”



References
Goldstein, Stuart (2006). Fast forward: Future trends in corporate communication.
Strategic Communication Management. Retrieved from EBSCOHOST on August 18, 2008.

Larson, Boo (2008 ). How Direct is It? Osborn & Barr Communications, Kansas City, MO. COPYRIGHT 2008 Doane Information Service.

Spiller, Lisa and Martin Baier (2005). Contemporary Direct Marketing. Pearson/Prentice-Hall.

Weber, Larry (2007). Marketing to the Social Web. John Wiley.

BMW's Guitar Score

If you have been watching Mad Men season two, you have heard the quiet clarity of the guitar picking in BMW’s We Built commercial (Bimmer: We Built). It was composed by Singing Serpent (their blog) a San Diego music house that does elegant and attractive work. According to creative director Rafter Roberts, SingingSerpent provides "as wide an array of Musical/thematic concepts as anyone could ever want out of a spot.”

The We Built score is reminiscent of Christa Päffgen’s work in the mid-60s (see Nico) especially her These Days track on the Chelsea Girl album, if you can get through the violins . These Days is emblematic of the pop music of that time (Amazon_30_sec) and it has “lasted for decades as a classic of [blue] introspection made even more remarkable by [Jackson] Browne having been only 16 years old when he wrote it.”

Arrangements similar to We Built would seem effective appeals to baby boomers of higher income and education levels (see Music Audience). The demographics of this style pop music has a bias for higher income and education levels. Likewise for BMW’s demographics (for example see BNet).

Dr. David Allan (2006, p 435, in Effects of Popular Music) says the value of syncing music into advertising campaigns is increased involvement through a heightened arousal. However, his research also shows that

“The individuals in this experiment processed songs and artists they considered high in personal significance differently from those that were low in significance”

BMW has a song cycle of commercials to reach its various publics, including these:

• BWM Reflections
  
• BMW Thank Goodness
  
• BMW Its Only A Car
  
• BMW dhogue

Advertisers seem to pull out the stops for Mad Men and showcase their talent. SleepingSerpent is a persuasive best for BMW.

Is There a Smoking Hole in the Future of TV and Print?

I think yes, powerful vicious circles are converging around the traditional TV and Print media formats. They must face a new revenue reality. They must face accountability. Their God Complex days are over.

The interdependent nature of the variables in vicious circles means that different circles can become coincident and reinforcing, creating a perfect storm. TV and Print will be pulled through a vortex much more powerful than radio, and after which their look and capacity will be very much different than today.

An unspeakable degree of financial revenue destruction has been initiated. Advertising, especially classified advertising is shifting to the Internet, to the new media. Classified advertising had been the financial spine of newspapers, cross-subsidizing reporting, political commentary and editorial activities (See Free Press Article). It represented 30% (See Newspapers Suffer) to 37% of newspaper revenues (See Media Manager).

Accountability. That dread word. On the corporate side of this table, marketing has acted like a junkie in the boardrooms, tin-cupping for money without demonstrable value. On the other hand, the new media can provide the metrics that management wants.

It is plainly clear from current events that revenue base destruction, and accountability will change the business model in the traditional media of TV and Print. Their days of royal power are numbered, and they will become more of a first among equals in the world shaped by the new media.

For a more complete analysis see Redmond Review Smoking Hole.

Speedpass, a Loyalty Gadget

Exxon-Mobile’s Speedpass Card (See Speedpass.Com) is a high tech loyalty program that Hoffman (2005, pp 312-314) calls Loyalty Gadgets. These loyalty devices are similar to the loyalty cards of traditional rewards programs but customers can load initial cash balances and reload cash as needed onto the card, or they involve a more convenient high-tech gadget than the traditional credit card.

In the case of Exxon, the Speedpass Card is a convenience for their customers, extending interactive social media to the gas pump. As an incentive for joining customers usually get a rebate on gasoline for the first 90 days of use. For business users, it also provides handy accounting of fuel purchases. Hoffman also notes (p 312) that these loyalty gadget cards create “a sense of belonging” to compliment the convenience and rewards. There is also a novelty to the experience that is “cool” adding to a sense of modernity.

According to Hoffman (p 313), the benefits to Exxon are that customers appear to “spend more when they don’t see the money.” ExxonMobile reports that Speedpass customers spend 15% more than non-Speedpass customers. Exxon now has in excess of five million members according to Hoffman (p 313). Covvenience is reflected in the bottom line.

In addition to use at Exxon Mobile affiliated locations, Speedpass is expanding into the fast food retailers with McDonalds. The customer database can be used by McDonalds to offer the same convenience provided at the pump. In addition to key fobs, Timex is now partnering with Exxon Mobile to have Speedpass enabled watches.

The downside is cost. Hoffman notes the following costs: 1.) Advertising; 2.) Card reload costs; 3.) Synchronizing provider’s inventory management system; and 4.) Scanning technology.

Reference
Hoffman, K.D. (2005). Loyalty Gadgets: The Marriage Between Technology and Loyalty Marketing. Marketing Principles & Best Practices 3e. Thomson/Southwestern.

Sa Ne Faire Rien? Public Relations and the New Media.

The old image of public relations as bar flies with delusions of being puppet masters came a cropper. The public became cynical of public relations as in CYNICAL. The nature of public relations is coming full circle, according to David Scott (New Rules of Marketing and PR), Paul Gillan (The New Influencers), and Lauri Wilson and Joe Ogden (Strategic Communication Planning).

Wilson and Ogden trace the creation of public relations as strategic advisor to the CEO in the early 20th century and its quick fall to a staff function considered a luxury. Inger Stole tells us the dark purpose of public relations, after the tragic fall and before its current resurrection, was to “resist and co-opt the consumer movement” and buttress slick advertising (see University of Illinois Books).

Innovative forces have been unleashed by the new social media and they are working utter destruction on the old PR. The value of the new public relations is honest and open content that is readily available to searchers when they need it. “Content drives action.”


The Public Relations Society of America defines public relations in its Official Statement on Public Relations(see PRSA Mission), and it is consistent with the new PR described by Scott. The essence is that it fosters mutually beneficial relationships.

Redmond Review has a complete analysis at Redmond Review Sanna Fairy Anne

References
Wilson, Laurie and Ogden, Joseph (2004). Strategic Communications Planning, 4th Ed. Kendall/Hunt Publishing Company.

Cherchez la Femme at the Ritz

Short films and streaming media are increasingly being incorporated into an integrated communications strategy. The promise of the Internet as an effective tool for many uses including business communications, marketing and branding, sales, training, and customer support is now being rapidly fulfilled. Larry Bouthillier and Tim Napoleon have a great article on the technology behind it, streaming media. (see VitalStream)

I looked at how Ritz-Carlton Hotels has integrated short films into its Experience More marketing messages. The Heads or Tails movie can be viewed at Heads_or_Tails. This movie quickly got to the point, two men struggling for the attention of a women, and stayed with it without deviation to the end. I was caught off guard by the tempo. The two men are quickly drawn into Pushkin's doomed duel, and one even says to the other with bravado, "Let's do this thing", the modern venacular for "Let's begin, if you are willing" of Pushkin's Russia.



The plot was simple. A man and a woman meet another man and the competition between the men starts. The Herculean labors of mental one-upsmanship in the middle of the film end with a physical contest and a surprise finish. It is a short film noir. It even uses the lighting and music of classic film noir greats such as the Maltese Falcon, ChinaTown and The Great Gatsby.

I believe the film effectively and subtlety communicates the message of elegant experiences at the Ritz. The Experience More Campaign by Ritz is based on a marketing analysis of their customer public, according to a Hotel Motel Management article. Heather Gunther (see Hotel_Motel_Mgmt ) quotes Jerry Landeck who has developed seven Ritz properties, “Our clients are demanding more experiential elements in the resort.”

They have designed signature restaurants and bars with the able assistance of artisans such as Wolfgang Puck, Gordon Ramsey and Laurent Tourondel. The main action of Heads or Tails takes place in a restaurant bar. The bus boy wears a Baume & Mercier watch. The barkeep is a sommelier. The marketing short film integrates smoothly with the Experience More grand strategy that also guides construction.

Regarding the ethics of short films in marketing communications, Packard (see Hidden_Persuaders) asked the essential question that is still relevant today

"What is the morality of playing upon hidden weaknesses and frailties -- such as our anxieties, aggressive feelings, dread of nonconformity, and infantile hang-overs -- to sell products? Specifically, what are the ethics of businesses that shape campaigns designed to thrive on these weaknesses they have diagnosed?"

Packard quotes a Madison Avenue Industrial Complex insider, Nicholas Samstag with the industry reply:

"It may be said that to take advantage of a man's credulity, to exploit his misapprehensions, to capitalize on his ignorance is morally reprehensible -- and this may well be the case. . . . I do not quite know."

It would be blind denial of plain fact to say that Heads or Tails was not engineered to exploit the apeing frailty of those with airs above their station. Yet the customers are asking for the fantasy, and to some extent that is what a vacation is all about anyway. Unlike, Samstag I am going to say it is not unethical, at least in the case of Ritz Carlton. It is an unspoken intent of the resort vacationers Ritz serves to assume the stale pretense of "acquired taste" and "rich appointments."

New Media Disintermediation of Traditional Business Structures

The Boston Consulting Group, in their Harvard Business School publication examines the impact new information technology will have on business strategy. The authors of the work, Evans and Wurster (2000, p 72) describe the disintermediation wrought by the new media as a “technology [that] allows for the richness/reach curve to be displaced, allowing new players to offer greater reach and greater richness simultaneously.” This results not in a re-segmentation of the old business but in an industry transformation to a new model.

This is happening with newspapers, a dismantling and reformulation is underway driven by the relentless economics of the new media. In their consulting work with Newspapers, The Boston Consulting Group (p 42) has observed that “Newspapers exist and can survive and profit as intermediaries between journalists and readers, because of the economies of scale in the printing press.” Journalists had no direct access to readers.

Newspapers are vulnerable to new media at critical points in their value chain. The most critical being classified advertising, which is a natural for on-line publication. As Evans and Wurster note (p 42) “classifieds account for about 40% of a newspapers revenues and only 10% of its costs…. If classifieds are lost, most newspapers would become financially unsustainable.”

This is the impact of new media on the existing business world. When its existing value chain is unraveled, companies in general, but newspapers specifically for this post can no longer subsidize poor performance of editorial or political commentary by combining them with other links in the chain. The profitable links of old that at one time were capable of carrying dead weight are now under relentless profit pressure.

Reference
Evans, Phillip and Thomas Wurster (2000). Blown to Bits. The Boston Consulting Group. Harvard Business School Press.

Prisoner’s Dilemma in Web Data Mining and Direct Marketing

Morse and Morse have recommended a virtue theory framework to govern the impact Internet data mining and direct marketing have on privacy. They argue that corporate financial interests must be moderated by obligations to the society that gives the corporations their existence.

Their solution is for business to be temperate, a key virtue factor in their proposed framework. Temperate behavior for Internet data mining and direct marketing involves a balance between the two roles inherent in the new business empowering technologies. These technologies act as both social agents and as economic agents (Morse and Morse, 2002, p 93).

In a standard MBA text on ethics, Business Ethics, DeGeorge (2005, pp 498-500) reinforces the Morse and Morse argument for temporance with the observation that the assumption of anonymity is not valid with the Internet yet it is the intuitive expectation of consumers based on their brick and mortar experience.

Additionally, like them DeGeorge advocates informed consent as a primary prerequisite for Internet marketing activity in general, and this of course includes data tracking and data mining in particular. Both DeGeorge, and Morse and Morse conclude that privacy risks on the Internet are serious enough to have precedence over economic benefits.

I believe that the Prisoner’s Dilemma Model can provide a complimentary perspective to clarify aspects of this argument. Data mining and its resultant direct marketing have created a Prisoner’s Dilemma between corporate marketing and individual’s who surf the Web.

Game Theory has been integrated into economics and allows for the expression of social goods in equilibrium analysis. Velasquez (1992, p 321), gives a good definition of one model in Game Theory, the Prisoner’s Dilemma, which is a relationship between at least two parties where each party is faced with two choices.

They can cooperate with the interests of the other party(s) or they can compete with the interests of the other party(s). The payoff is no gain if everyone competes with each other, a stalemate. If all parties cooperate with each other there is a moderate but steady gain. If one party chooses to cooperate but the other party chooses to compete instead, the competitor makes a substantial gain.

This seems to be the state of Internet tracking and data mining today. Consumers are implicitly cooperating with Internet data mining companies. These companies on the other hand are choosing to compete and risking the cooperator’s privacy for the sake of greater, one-sided financial reward.

According to Cooter (see Berkley), repetitive transactions with informed consent are less likely to result in competitive behavior. Instead, they will have the more efficient long-term solution of both parties cooperating. I believe that here is where informed consent will change the nature of the tracking and data mining activities on the Internet.

As this relationship matures, consumers will become more aware of the risks data mining is taking at their expense. Tracking and data mining are repetitive transactions, with a potential benefit and risk. The benefit is an economic good while the risk is a social good. When both sides are aware of what is taking place, the cooperative option of modest but mutual gain is favored in the Prisoner’s Dilemma model. The temperance suggested by Morse and Morse is the favored outcome that grows out of full disclosure.

References

De George, Richard (2005). Business Ethics. Pearson/Prentice-Hall.

Morse, John and Suzanne Morse (2002). Teaching Temperance to the “Cookie Monster”: Ethical Challenges to Data Mining and Direct Marketing. Business and Society Review, Vol. 107, No. 1, pp. 76-97, Spring 2002

Velasquez, Manuel (January 1992). International Business Morality and the Common Good. Business Ethics Quarterly. Retrieved from Taking Sides, 9th Edition. Newton, Lisa and Maureen Ford Editors. McGraw-Hill

A Pirelli Short Film

Pirelli has always had attractively pioneering marketing. It is characterized by facility and skill among tire companies, front running many with flamboyant calendars (see Pirelli Calendar ). Adopting short films is not such a leap for them and The Call is certainly more interesting than watching the Michelin Marshmallow Man try to get his Marshmallow Dog.

Pfanner (2006, pp1-2) gives some insight into this campaign. It was the first time Pirelli worked with Leo Burnett and behind it was concerns with the declining effectiveness of traditional media advertising. Traditional advertising seems to be dissolving before our eyes. It is no longer the altruistic industry that gives us free TV, but now has an appearance more like a monolithic parasite draining money from its corporate host.

Pirelli backed its bet on short film marketing with 60% of its marketing budget according to Pfanner (2006, p1). Why?

"Many advertisers are worried that traditional ways of reaching consumers, including the 30-second television spot, are losing their power to persuade."

Their tag-line “Power is nothing without control” is catchy. However, to build long-term relationships, the slogans should be consistent with the customer’s experience with the company. Duncan (2005, p 15) says that “ interactions with customers send some of the most impactful messages that customers receive about a brand.”

Curiously, Pirelli has had some scandal related to its level of concern for safety. Lawsuits allege that it had foreknowledge of safety problems but did not take action. Many complain, see AllAutoWorld .

All in all, though, the campaign was a hit. They even have a short film out now with Uma Thurman (see Pirelli on YouTube ). Same theme.



References
Duncan, Tom (2005). Principles of Advertising & IMC. McGraw-Hill
Pfanner, Eric (January 29, 2006). On Advertising: Film or Ad? Ask Pirelli. International Herald Tribune. Retrived on August 23, 2008 from http://www.iht.com/articles/2006/01/29/business/ad30.php

The Cluetrain Manifesto: Should Anarchy Replace Structured Communications

First published online and then as a book, The Cluetrain Manifesto (see their website) was an apocalyptic warning. Things were unraveling. Systems were broken. The Internet unleashed long-term trends that would assert themselves.

“Networked markets are beginning to self-organize faster than the companies that have traditionally served them. Thanks to the web, markets are becoming better informed, smarter, and more demanding of qualities missing from most business organizations.”


Many acted. Microsoft and IBM both have employees talking directly to customers. In fact, Joe Cox reports (see Microsoft Watch) that Microsoft has over 5,000 employee blogs and quite often Microsoft makes major product announcements only on these blogs, not incorporating one or another of its marketing agencies.

How effective are the differnet implementations of the Cluetrain Manifesto?

John Cass is a marketer and a researcher at Forrester and has made a startling finding (see his blog ). Dell and Macromedia use a dedicated approach, and control communications that uses Social Media rather than take the wide-open approach of IBM or Microsoft. Dell and Macromedia are doing quite well with such an approach. Cass notes that

“Macromedia and Dell empowered employees with resources, while IBM and Microsoft give only verbal encouragement without the backing of cash and resources. There may not be a difference in strategy between the dedicated approach and the cluetrain manifesto, just in tactics.”

He highlights two of the manifesto theses, 48 and 51:

48. When corporate intranets are not constrained by fear and legalistic rules, the type of conversation they encourage sounds remarkably like the conversation of the networked marketplace.

51. Command-and-control management styles both derive from and reinforce bureaucracy, power tripping and an overall culture of paranoia.

But he concludes that anarchy does not work. While the Cluetrain Manifesto helped focus attention on change that is needed for marketing communications because of the Internet and Social Media tools, "[it] did not provide a really effective road map for how to open up a company.”

Marketing communications is a discipline. By focusing their Social Media efforts on smaller groups capable of effective marketing communications, and providing them with support, Dell and Macromedia have been effective. Microsoft succeeded when it provided the logistics to trained communications professionals like Robert Scoble. Cass says:

“Maybe in the process of encouraging open conversation, companies like Microsoft and IBM have failed to give the training, tools and tactics necessary for success. While, Macromedia and Dell’s focus on a smaller group of dedicated people has produced more results.”

John's book is:

The New Media Collaboration Project

The Collaboration Project is a vibrant community of public administrators working to improve government services through the use of social media. The Project works in conjunction with the National Academy of Public Administrators commissioned by Congress to provide an independent perspective for resolving the most complex problems facing large organizations. While primarily focused on government, the Collaboration Project can provide insights to commercial uses of social media as well. It is located at CollaborationProject.

The Pillar Post for the Project’s blog expresses the Project Mission, to foster a “conversation about Web 2.0 and how it can be used to solve some of the critical problems facing America.” It also gives an overview of the database of case studies on the use of new media, as well as the content section of the site with detailed research, some by the Project and some by the New Paradigm organization.

Some highlights in the Case Studies database include:

American Solutions For Winning the Future
"A wiki site to draft proposals, create teams, post comments and rewrite proposed solutions to the problems America faces."

Federal Enterprise Architecture Data Reference Model Working Group
"Uses social media for information exchange processes to enable national information sharing."

Flu Wiki
"The purpose of Flu Wiki is to help local communities prepare for and cope with a possible pandemic influenza."

NASA World Wind
"Social Media as a way to continuously expand the data and imagery available in World Wind."

National Institutes of Health on Second Life
"Second Life, the virtual world filled with avatars, creates opportunities for members of the NIH community to become more accessible."

NOAA Virtual World
"Thanks to Second Life, people can now be educated about the Earths' environment in a myriad of ways."

Office of the Director for National Intelligence Intellipedia
"Intellipedia is a peer-to-peer online collaboration network built on the same open-source software used by Wikipedia which allows intelligence analysts to share information."

Peer-to-Patent Project, US Patent and Trademark Office
"Social media organizes public participation to improve the quality of issued patents."

Washington D.C.'s Citywide Data Warehouse
"The District of Columbia was searching for a way to improve service delivery, drive efficiencies, enhance public safety, and reduce costs."


In addition to the case studies, research papers are published. These are located at ContentLibrary. A Blog has been deployed and its latest post is titled Most Companies use Games; Shouldn’t You?

This site has promise and is well worth tracking.

WordPress Blog: Closed Nature of an Open Source New Media Tool

There are a variety of new media software applications that provide blog, wiki and forum functionality on intranets. Open Source new media tools offer a platform independence advantage when compared with the comprehensive Microsoft SharePoint Portal Suite. SharePoint is tightly integrated with Windows and Internet Information Server (IIS). Platform independence has proved true of CanvasWiki, Galleon, and Mango Open Source.

WordPress surprised us.

It requires MySQL to operate (see WordPress Support Post) Database independence through ODBC has been available for 17 years so it is surprising that an open source design would not have considered it.

That aside, the installation process was a breeze, the famous five minute install. The software is located at WordPress Download.

Our platform is Windows 2003 Server with IIS. Our database is SQL Server so we needed to install and configure MySQL, available from Sun at MySQL Download. Again, the MySQL installation was very straightforward. We use a graphical user interface to administer MySQL available at Kovocs. Our installation steps were:

1. Install PHP. An MSI file for the Windows version of PHP can be downloaded from http://us3.php.net/get/php-5.2.6-win32-installer.msi/from/a/mirror


2. Once PHP is installed, we added index.php as index page in IIS.


3. Create a folder in Inetpub\wwwroot to hold the blog


4. Create a database in MySQL


5. Change wp-config_sample.php to wp-config.php


6. Edit wp-config.php and add db info


7. Start Firefox and open Inetpub\wwwroot\thefolderyou justcreated/wp-admin/install.php
   

WordPress has proved to be full-featured, and very flexible. It lends itself very well to a professional appearance.

What happened to MSN?

The nature of the competition between Google, Yahoo and MSN is search market share. Site Seeker notes “Market share. Google, Yahoo! and MSN are all competing for our attention. More users equate to more revenue via pay per click ads and other advertising opportunities.“

There is a rolling might to Google, which has been completely unaffected by either Microsoft or Yahoo. The explanation is ethics.

McLaughlin (2002, p 117) notes that 60% of adult Internet users are unaware of search engine marketing and that only 1 in 6 Internet users can tell the difference between unbiased search results and paid advertisements. Furthermore, 80% of these users when informed, ask that search sites disclose the practices of paid placement and paid inclusion.

The FTC (see Wouster, 2005, p 3) mandates that “clear and conspicuous disclosure” is necessary for both paid placement and paid inclusion. Truthfulness and disclosure is also part of the commercial world's view of social media ethics prescribed by David Scott (2007, p 205):

• Transparency - Never pretend to be someone you are not.
• Privacy.
• Disclosure - Tell people about any conflict of interest.
• Truthfulness.
• Credit.

From the perspective of the government, and from practioners like Scott there is an admonition for truthfulness, and therefore disclosure.

Is there an impact of ethical advertising on the bottom line that would discourage businesses from applying moral principles? McLaughlin (p 119) notes that “MSN seems to serve the companies [who advertise] corporate needs as much as searcher’s interests.” On the other hand, Google is “the best of the bunch at identifying ads.” What has been the impact on market share? Stepforth has charted MSN market share for the year 2005-6.

What’s it look like over a longer haul? Worse!

Search Market Share

Year/Source ............................Google ......MSN

2004 (see Yahoo) .....................36.5 ........15.5

2005 (see Highbeam) ...............41.4 ........13.7

2006 (see Seroundtable) ..........53.7 .........9

2007 (see ReadWrite Web) .......67 ...........5.25

Conrad (1904, p 212) said, “Anything merely rational fails.” Ethics attempts to deal with the complexity of the real world. Our rational models, in order for us to think with them, are abstracted and focus on only some aspects. What we leave out can drive us to the desperation of trying to buy Yahoo.

References

Conrad, Joseph (1904). Nostromo. Wordsworth Editions Ltd (January 1, 1998)

McLaughlin, Laurianne (2002). The Straight Story on Search Engines. PC World.

Scott, David (2007). The New Rules of Marketing and PR. John Wiley.

Wouster, Jorgen (June 9, 2005).STILL IN SEARCH OF DISCLOSURE. Consumer Reports Web Watch.

Service Level Agreement for Social Media Services

Social Media tools can enhance the collaboration and relationship building an organization has with its various integrated communications publics. Marketing aside, functions such as employee relations, investor relations, government relations and vendor communications can all be enhanced through these tools. Both commercial packages such as Microsoft Sharepoint Server and Open Source software such as Mango, CanvasWiki, Galleon, WordPress, TypePad and many others are also available. Software as a Service blogs such as Blogger.com can be used as well.

Groups using commercial or Open Source social media need to enlist the services of information technology professionals to support the system. To eliminate misunderstanding and wrong expectations, a service level agreement should be executed between the IT support professionals and the group using the social media.

The service should be described and the functions provided should be listed. These should include the maintenance functions that will be needed and the time windows when maintenance will be performed. Also those functions that are specifically excluded should be listed. Another important point is to identify who is responsible for customizing the site.

The high level information technology architecture should be described and this should include the security model. Performance goals to get a blog site back in operation should be established , and a set of response performance measures should be agreed to.

An example agreement is located at Social_Media_SLA

New Media Will Challenge Intellectual Property Claims

New media allows each of us to publish our own works, with the illusion that we have copyrighted the material published. However, only the legally proficient will be able to truely establish an enforceable copyright. They know how to properly register the idea and define its scope, and also to discover and contest unauthorized use. Although, there is talk of a poor man’s copyright, “the United States Copyright Office makes clear that the technique is no substitute for actual registration.” (see Wikipedia Copyright)

Powerful companies are preparing defenses against accusations of copyright violations of other’s intellectual property. They are buying and building huge copyright and patent portfolios, and using them in marketing communications. Because of their skillful legal council, they have been able to gain ownership of very fundamental processes. This is especially true in the computer field. For example, Microsoft has patented the understanding of music (The Day the Music Died)

Subtle marketing communications will scare corporate procurement away from weak patent defenders to the strong. For example, in its public relations Microsoft contends that Linux has stolen and violated 235 of its patents and copyrights (see Fortune ). Corporate procurement now faces future charges of knowing violation of intellectual property protections and the ISO 19770 standards on Intellectual Property if they switch from Windows to Linux.

The Open Source community is intransigent in its position. Richard Stallman says software should be free. The community deftly argues that ideas in the computer industry are communal mathematics and should be treated as such (like Folk Art).

Microsoft parries Stallman and says that open source has been reckless with intellectual property. Microsoft has additionally formed a relationship with SuSe Linux and as part of that relationship, SuSe Linux now pays Microsoft royalties on the 235 violations (see Money Mag ), establishing a precedent, and undermining the other Linux vendors and the Open Source Community in general.

The Open Source community has been outflanked by a combination of marketing communications and partnering relationships, which one could argue are also part of marketing communications.

In the end, Microsoft is now accused of stifling Open Source with “patent warfare” see (Patent Colonialism ) Folk culture is indefensible because it cannot hire the marketing communications expertise to lay out effective strategy and legal talent to execute winning tactics. Powerful multinationals will own all human ideas and moralize that we, the great unwashed are ethically violating their intellectual property rights when we try any innovation by our lonesome.

The New Media will accelerate this confrontation by enabling the masses to publish. Many will wonder how you can patent the concept of music. The Open Source community understands the legal intricacies the powerful companies are employing and work within that framework. Not the masses. I suspect they will want common sense.

Phaeton: New Media IMC

Although VW had a highly successful marketing campaign for their New Beetle, there is another VW brand that did not fair so well, the Phaeton. Still sold in the rest of the world, it was withdrawn from the U.S. in 2007 after three years. Although VW seemed to hit, mechanically at least, all the IMC tactics and tools that made the New Beetle a success, there was not much buzz for the Phaeton.

This should not have surprised VW. The iconic Beetle still had traction a generation later, a part of our retro-chic culture today. The New Beetle IMC job was to reacquaint old friends for $16,000, the Phaeton IMC job was orders of magnitude harder, to turn strangers into friends, and charge them $74,000.

The VW corporate theme is advanced and innovative transportation solutions. They used the new media in the Phaeton rollout to the U.S., including short film. Here is their introduction to the Phaeton.

VW worked with new media such as RoadandTrack.com during the introduction of the car through traditional press releases given to interested magazines. What's new Volkswagen.

Why didn't the new media rally behind this introduction like they did the New beetle? A critical news value is impact - what is the magnitude of the news event. Also is there a human interest angle? Not much with these - no nostalgia, no fond memories, no traction from clever old ad campaigns that revolutionized IMC as did the Beetle.

One wonders why, since VW already owns Audi, Bugatti and Bentley, they would want to also make the VW brand name synonymous with high end luxury cars. Nevertheless, their chief engineer thought it a good idea, and here they are sponsoring golf tournaments with the new VW Phaeton brand name, trying to make it a high-end marque. Miami sponsorship.

They did a good job with these. They had Indy 500 champ drivers taking the golfers for test drives. This would seem to be opportunities for local media to cover the story but not many takers. Early on there was incredulity about the price tag for the "people's car."

They do have video news releases (VNRs). There are also short film documentaries about the Phaeton on youTube that make it look exciting. Here is an example: Utube.

Steve Parker at Automotive news pretty well sums up the attitude from the press about the Phaeton: "It's a fantastic, fun car --- But VW has a division named Audi to sell cars in this price class" (seeBrand issue - AUDI not VW division).

The car is a wonderful machine. It is the only car to win the International Forum for Design. It has input from the Bugatti, Bently and Audi divisions of VW. It is the only car to win the gold award at the Iternational Forum for Design (see DesignWinner).

I think this was a failure because they should not have spent so much on a good car to put it in an odd market niche. How consistent is the Phaeton with target segment for VW?

Mobile Marketing for the National Gallery of Art

A proposed mobile campaign for the National Gallery of Art will use QR Codes to integrate National Gallery print materials with its online assets. QR Codes are a special type of barcode that is optimized for use by mobile devices. Smith (QR Codes) echoes the view of many. He observes that QR Codes and mobile form factors link print media with the Internet. By strategically locating QR Codes, mobile readers of Gallery print media can link to the Gallery Web site, getting more in-depth coverage, and the other useful online services.

By using a QR Reader, such as a mobile phone with camera and QR software, one can jump from the print world to the online world. This is unprecedented value for the customers of the Gallery store. As an example of QR Codes, consider Leonardo’s Ginevra de’ Benci. The URL for the web page with the detailed explanation of the painting is Ginervra, while the QR Code for that URL is below.

Gallery print materials for the book store will have QR Code to link to always up-to-date reference materials on the works of art or the artists. By also forwarding users from the Gallery Web site to associated blogs, and community sites further information becomes available and communities of interest can be accessed from print materials.

For a comprehensive look at the potential of mobile marketing at the Gallery, see Redmond Review Gallery

Fractal Art in Mobile Marketing

Fractals provide useful video art for mobile marketing. Large and amorphous patterns crystallize into smaller, distinct shapes. Or the logistic equation can be graphed in reverse from chaos to tipping point to order. The advantage of these as dynamic logos is that a small code module can be downloaded to create them rather than the download of a large video. The downside would be security concerns.

An example is the Focusing Triangles Fractal with code included in this post.

'******************************************************************************************
' This program creates a diffuse pattern and focuses it to a crisp, smaller triangle.
' Author: George Ray
'******************************************************************************************
Option Explicit
Dim iGMR, RandNum As Integer
Dim gmrDenom As Double
Dim gmrAx, gmrAy, gmrBx, gmrBy, gmrCx, gmrCy, gmrPx, gmrPy As Double
Sub Main()
gmrDisplay.BackColor = QBColor(0)
gmrDisplay.Show
Call gmrLogo
End Sub

Sub gmrLogo()
gmrAx = 5000 / 4
gmrAy = 3000 / 4
gmrBx = 4000 / 4
gmrBy = 5000 / 4
gmrCx = 6000 / 4
gmrCy = 5000 / 4
gmrPx = 5000 / 4
gmrPy = 4000 / 4

gmrDisplay.PSet (gmrAx, gmrAy), RGB(255, 0, 0)
gmrDisplay.PSet (gmrBx, gmrBy), RGB(255, 0, 0)
gmrDisplay.PSet (gmrCx, gmrCy), RGB(255, 0, 0)

gmrDenom = 1.5
Randomize
For gmrDenom = 1.2 To 2.2 Step 0.4
For iGMR = 1 To 10000
RandNum = Int(3 * Rnd + 1)
If RandNum = 1 Then
gmrPx = (gmrAx + gmrPx) / gmrDenom
gmrPy = (gmrAy + gmrPy) / gmrDenom
gmrDisplay.PSet (gmrPx, gmrPy), RGB(255, 0, 0)
ElseIf RandNum = 2 Then
gmrPx = (gmrBx + gmrPx) / gmrDenom
gmrPy = (gmrBy + gmrPy) / gmrDenom
gmrDisplay.PSet (gmrPx, gmrPy), RGB(0, 255, 0)
ElseIf RandNum = 3 Then
gmrPx = (gmrCx + gmrPx) / gmrDenom
gmrPy = (gmrCy + gmrPy) / gmrDenom
gmrDisplay.PSet (gmrPx, gmrPy), RGB(0, 0, 255)
End If
Next iGMR
Next gmrDenom
End Sub

If you have difficulty with the code, please post a comment and I will try to help.

The Backend Mechanics of SMS Mobile Marketing

The Short Message Service (SMS) is a network protocol for sending short, usually text messages to wireless devices . Sarah Perez (see Perez on Mobile Mktg),says that SMS is a growing trend in m-commerce. SMS has many features that support m-commerce, which include (see Adobe on SMS)

1. Built-in Authentication
2. Secure Communications
3. Interactive Communications
4. Mobile devices already include the client

Cell phone carriers, such as Sprint or Nextel, provide SMS gateways for the transfer of text messages from computer to mobile phone. These gateways are the foundation of the mechanics for an organization, be it an aggregator mobile marketing service or a commercial business entity, to implement a mobile marketing campaign. As mBlox notes (2006, p 6, see mBlox on SMS), there are over “a dozen US-based carriers to serve all their customers. As such, SMS connectivity provided by any single carrier would be incomplete.”

The solution is to determine the carriers that service the customer publics targeted by the campaign. Their SMS gateways are published and provide the hook for a database driven campaign to reach the customer. For example, Wikipedia has a list of mobile phone SMS gateways by carrier (see SMS Gateways in Wikipedia).

Duncan (2005, p 392), says an important aspect of mobile marketing is that “messages can be targeted not only by individual cellular phone number but also by time and location of targeted customers.” Having a relevant customer database is critical, so that demographic and psychographic characteristics can be used to customize message content and to insure that only customers interested in the message are included in the distribution.

An example data retrieval from a customer database using the ColdFusion language common for Web projects is:

(cfquery name="gmrMobile" datasource="heat")
SELECT
LastName, FirstName, CarrierGateway, Phone, Demographic1, DemographicN, Psychographic1, PsychographicN

FROM dbo.Customer

WHERE
dbo.Customer.SelectCharacterisitic = #CampaignCharacterisitic# and dbo.CustomerOptIn = ‘YES’
(/cfquery)

To send the message from our computer based application to the customer cell phone, we need to combine the cell phone number and carrier to form the correct gateway address. The process using our results above is:

(cfset gmrgateway=" #gmrMobile.Phone#" + “@” + #gmrMobile.CarrierGateway#)

For example,

Assuming my phone number is 800-555-1212 and my carrier is Sprint, the Sprint SMS gateway is messaging.sprintpcs.com according to Wikipedia. So my email from the computer would be sent to the gateway

8005551212@messaging.sprintpcs.com

which in turn forwards it to the SMS client on my cell phone.

A function would be called for each customer record returned from our database call in a loop. The function call looks like:

(cfinvoke component="Your.Component.Name" returnvariable="SendMailSimpleRet" method="SendMailSimple")
(cfinvokeargument name="strTo" value=" #gmrGateway# ")
(cfinvokeargument name="strFrom" value="Your_Name@Your.Company ")
(cfinvokeargument name="strSubject" value="Your Mobile Topic")
(cfinvokeargument name="strBody" value="Your Mobile Message")
(/cfinvoke)

The “your mobile message” in red would be formulated based on the customer demo and psychographics.

The code for the SendMailSimple function above that sends the mail to the SMS gateway is
(cffunction name="SendMailSimple" hint="Send Mail Simple" displayname="SendMailSimple" returntype="string" output="true" access="remote")
(cfargument name="strTo" default="" required="true")
(cfargument name="strFrom" default="" required="true")
(cfargument name="strSubject" default="" required="true")
(cfargument name="strBody" default="" required="true")

(cfmail from="#ARGUMENTS.strFrom#" to="#ARGUMENTS.strTo#" subject="#ARGUMENTS.strSubject#")
#ARGUMENTS.strBody#
(/cfmail)

(cfreturn)
(/cffunction)

References
Duncan, Tom (2005). Principles of Advertising and IMC. New York: McGraw-Hill Irwin.

Microsoft and New Media. Port25.

There is a growing belief that the Internet is a more interesting place than the PC and that the next generation of software will be developed on the Internet. Such work is furthered by the Open Source Initiative, which encourages the sharing and contributions of the wide audience on the Internet. Open Source software strikes at the essence of Microsoft, the value add it gives to the environment is offered for free by open source.

Microsoft must address the emergent open source software. The most important publics are not only the open source community, but equally government and large corporate customers. Social media can give Microsoft both feedback information as well as voice for its open source related messages. Port25 is a Microsoft blog for interactive communications about open source.

Naturally, Microsoft puts a positive spin on the Port25 mission. “Port 25 is about having a healthy conversation with customers and the industry wherein people can talk openly and honestly about their biggest interoperability challenges, whether it is on UNIX, Linux, Windows, or among other open source packages.” The pillar posts for the blog were published in March 2006 and stressed the interoperability theme. A prime example is at http://port25.technet.com/archive/2006/03/31/Faces-from-the-Collective_3A00_-Shared-memory-anyone_3F00_.aspx and is a video interview with a noted Open Source guru who had been hired by Microsoft.


The site seems to be in decline. Over the past two months, only seventeen posts have been made. Here is an IceRocket trend graph:



My conclusion in reading the Port25 postings and responses is that Microsoft is trying to send an interoperability message to the three publics I mentioned above. Only the Open Source technical public is commenting. This is no interactive communication with strategic buyers. Top Microsoft management should engage in this blog to expand the scope of interactive communications to also capture strategic buyer interest.


To read a more complete analysis, see Redmond Review Port25.

Social Media at the U.S. Mint

The U.S. Mint is a revenue-generating agency that has a profit making relationship with its numismatist public. The U.S. Mint for Kids site (Link to Mint for Kids) is good case study for analyzing how the ethics of marketing to children would apply in the new media.

A Detailed Site Description
The U.S. Mint handily describes the site as a “fun, educational tool to generate interest in coins the U.S. Mint and U.S. History.” The site displays animated cartoons appropriate for children. It also has coloring pages related to the topic of the U.S. Mint and coins. For older students, there is an on-line library, and downloadable articles on topics related to coins.



It also has 21 games ranging in difficulty from simple to complex. All of the games involve a trivial pursuit theme, naturally related to coins. All in all, this site has comprehensive information about the products it sells in an age appropriate, attention getting format.



Does the Site Work in Promoting Coins?
According to Director Michelle Bartrum, (See Wiley) the Mint’s revenue generating activities were ideal for the Web. After her introduction of Web marketing, sales at the Mint jumped from $2000 per week to $1.4M per week. She also introduced a series of communities of interest accessible from their Web Site.

David Scott’s ground-breaking book The New Rules of Marketing and PR could have used Bartrum’s strategy with kids as a case study to reinforce his points about “thoughtful and informative” content driving marketing (p 31). David continues to emphacize content on his blog, see Optimizing a Site.

Bartrum’s stated purpose in creating communities of interest was “to develop an ‘online community’ of coin enthusiasts that return to the site over and over.” This not only included kids but a special effort was made to reach out to kids.

Is it Ethical?
In his book, Business Ethics, DeGeorge (2005, pp 343-344) discusses the morality of marketing to children. Marketing intended to be manipulative is generally held to be unethical. Because of their unique vulnerabilities, children are more easily manipulated and so precautions are necessary.

Young children are very impressionable and believe most of what they hear and are unable to clearly separate truth from fantasy. Adolescent children can critically attack fantasies but are still vulnerable because of their social insecurity. The morality test is "does the marketing coerce or manipulate?"

According to this standard, the U.S. Mint for Kids site is right on the line. It is reaching to an interested segment of young children, with a potentially high frequency. It is driving home the allure of coins. It has effectively increased sales. In reviewing the site, though, the intent seems to be information rather than manipulation.

The Word of Mouth Marketing Association, WOMMA prohibits marketing to children under the age of 13 as unethical (See Media Post or WOMMA). According to this standard, the U.S. Mint is unethical since it has clearly defined marketing goals and tactics it is employing to reach pre-teens. I do not consider the U.S. Mint Kids site to be unethical. Integrated Marketing Communication per se is not unethical and the U.S. Mint Kids site does not attempt to exploit the mentioned vulnerabilities of young children or adolescents. The WOMMA Code does not seem realistic in this regard.

The law pertaining to child web marketing is the The Children's Online Privacy Protection Act (COPPA) (see EPIC) and it prescribes limits to the “collection of personal information when a child participates in online games and contests.” Naturally, the U.S. Mint did not violate the statutory restrictions.