Perceptual Map of MSN, Yahoo and Google

A Perceptual Map is a marketing tool to graphically compare consumer attitudes towards competitor companies. Most commonly, two salient characteristics of the market niche occupied by the companies are used to form a two dimensional map that shows how each company fares with the customers of that market segment.

Online services is becoming an important market segment for Microsoft. Marketing Vox (2007, p1) reports that Steve Ballmer, Microsoft CEO, sees advertising revenue earned by Online Services as contributing 25% of Microsoft’s business in future. Such advertising revenues will help support the Microsoft Cloud Computing initiative code-named Azure (see Mackey, 2008, p 1) and Software as a Service (SaaS) offerings.

Already its competitors are starting cloud computing and SaaS services that Gartner believes will soon be “good enough” (see Smith and Austin, 2007, p 1). The top two competitors to Microsoft MSN in Online Services are Yahoo and Google. There are two dimensions I propose to use in assessing corporate customer perceptions of these three largest Internet sites. The first is the market perception of the corporate services that are offered by each vendor.

The other dimension is social capital. As I have argued in the Open Source Gamblers Ruin posting (see Gambler's Ruin), “strategic buyers” are an important customer segment for Microsoft generally and the most profitable customer in terms of sales revenues. These customers are corporate and governmental organizations that would have a major impact on Microsoft if they shift away from Microsoft to its Open Source or Web Portal competitors because they are big buyers. A move like that would reduce Microsoft revenue while significantly enhancing that of its competitors. In addition, by being big buyers, they also attract advertisers so that they have significant meaning for MSN operations. Therefore, the second dimension in this perceptual map is the social capital each competitor has with corporate customers.

Buchanan (2002, 201-204) gives a laymen’s explanation of social capital as the “ability of people to work together easily and efficiently based on trust, familiarity and understanding.” In lieu of a formal survey, I will use the sales, marketing and consulting employee counts of each organization as a proxy for social capital thay have with large corporate customers. This seems reasonable; the greater the investment in marketing communications between one of the vendors and the corporate world it serves, the greater the social capital.

To calculate the correlation strength of each vendor in the social capital dimension, I normalize employee counts to a percentage by summing all employee counts and dividing the total count into each company count. The employee counts are derived from the SEC 10-K filings for each company. Here is the raw data:



Here is the relative percentage of employees dedicated to marketing communications and services in the three organizations, reflecting social capital strenths:



For the other dimension in this map, the portal corporate functionality, I will use Tancer’s market ranking comparison of the three sites that is published at HitWise. However, not all attributes Experian tracks are related to corporate interests. For example, sports, dating, games, personalities and music would not be. The following are the Search Portal characteristics I will use in the perceptual map: Portal Pages, Email Service, Search Engine, News/Media, Business Information, and Maps.

For the corporate portal functionality dimension, I use a balanced scorecard approach based on those rankings in Tancer’s survey. The notion is that the current market share ranking of each Web site reflects the market’s perception of the company’s ability in each of these categories: Portal Pages, Email Service, Search Engine, News/Media, Business Information, and Maps.

Here is the score card calculation based on rankings in those categories:



Here is the relative strength of each ranking factor:



Combining the Portal Functionality numbers with the social capital, we then get the following sets of coordinates for our perceptual map:



Here is a perceptual map based on those coordinates:





I included a desired point in the map that would reflect the combined strengths of Yahoo and MSN, which is what I believe Microsoft was after in its merger attempts with Yahoo.

References

Buchanan, Mark (2002). Nexus: Small Worlds and the Groundbreaking Theory of Networks. Norton.

Keller, K (2008). Strategic Brand Management. Pearson/Prentice-Hall.

Mackey, Kurt (October 27, 2008). Microsoft has head in the clouds with new Windows Azure OS. Retrieved on November 19, 2008 from http://arstechnica.com/news.ars/post/20081027-microsoft-has-head-in-the-clouds-with-new-windows-azure-os.html

Marketing Vox, (October 4, 2007). Ballmer Sees Ad Revenue as Microsoft's Future. Retrieved on November 19, 2008 from http://www.marketingvox.com/ballmer-sees-ad-revenue-as-microsofts-future-033446/

Rosoff, M (October 23, 2006). The Future of MSN. Directions on Microsoft. Retrieved on November 22, 2008 from http://www.directionsonmicrosoft.com/sample/DOMIS/update/2006/11nov/1106tfom.htm#top

SEC (12/31/2007). Yahoo Form 10-k. Retrieved on November 26, 2008 from http://apps.shareholder.com/sec/viewerContent.aspx?companyid=YHOO&docid=5760286

SEC (2/15/2008). Google Form 10-K. Retrieved on November 26, 2008 from http://www.secinfo.com/d14D5a.tvTt.htm

SEC (June 30, 2008). Microsoft Corporation Form 10-K. Retrieved on November 19, 2008 from http://www.sec.gov/Archives/edgar/data/789019/000119312508162768/d10k.htm

Smith, D and Austin T (June 5, 2007). Microsoft and Google: Who's Going After Whom? Gartner Research, ID G00148622.

Taft, Darryl (October 10, 2007). Ballmer Talks Cloud, Advertising, SAAS. eWeek. Retrieved on November 19, 2008 from http://www.eweek.com/c/a/Enterprise-Apps/Ballmer-Talks-Cloud-Advertising-SAAS/

Tancer, Bill (August 3, 2006). Google, Yahoo! and MSN: Brand Association. Hitwise Intelligence. Retrieved on November 22, 2008 from http://weblogs.hitwise.com/bill-tancer/2006/08/google_yahoo_and_msn_brand_ass.html

Construal Theory and Cleaning Vinegar

The Heinz All-Natural Cleaning Vinegar may have been a product somewhat ahead of its time. Today’s mainstream world is more “green” aware than in the late 80s and early 90s. Haig (2003, p 34) says that the cleaning vinegar moved Heinz away from its core identity. Until then it had manufactured only food products.

He goes on, though, to propose that it was not marketed properly. Heinz pushed it to the mass market and Haig contends at that time it was a niche product. Heinz might have been successful if they had distributed it only through health store chains initially. Haig's rule for this is “Adopt a niche strategy for a niche product.”

In their study published by the Journal of Consumer Psychology, Kim and John (2003, p 1) found that the importance of perceived fit in a brand extension is moderated by “construal level.” Construal theory proposes that we interpret activities in the environment either as “abstract and generalized features (high-level construals) or in terms of concrete and contextualized features (low-level construals).”

Their studies indicate that perceived fit for a brand extension was important to people with a higher-level construal of a subject while to folks who think concretely about the subject it was not so important. This might explain what happened to Heinz. Most people abstracted them to the food product category. The greens back then may have been better audience to introduce the product. They were used to thinking outside the box and looking concretely at a product’s ingredients.

References
Haig, Matt (May 2003) Big Brand Ball-ups. Brand Strategy. Retrieved on November 27, 2008 from EBSCOHOST.

Kim, Hakkyun and John, Deborah Roedder (April 2008). Consumer response to brand extensions: Construal level as a moderator of the importance of perceived fit. Journal of Consumer Psychology. Retrieved on November 27, 2008 from EBSCOHOST.

Are Possessions an Extension of Self?

In his 1988 article, Belk addresses this question as a topic of interest to marketing research. He starts (1988, p 139) with a summary of the three states of self: 1.) Being; 2.) Doing; and 3.) Having. He goes on to do a detailed review of Sartre’s Being and Nothingness (p 145), a work that fully explored the relationships between these three states. In Sartre’s existential view, doing is a transitional state leading to the two more stable states to have or to be. Sartre argues that the only reason we want to have something is to enlarge our sense of self and so having is an extension of being.

This existential viewpoint is consistent with John Locke (see http://en.wikipedia.org/wiki/Existentialism ) the philosophical father of the old United States (see http://www.johnlocke.org/about/legacy.html ). In both philosophical systems, private property is recognized as a fundamental state of mankind and in the western world purchases are given legal status as an extension of self. In this culture, there is the opportunity for purchases to be an extension of self.

This is not the case in all cultures. Belk goes on (p 146) to discuss the Marxist viewpoint, which stresses doing as the stable state and the having state as creating ‘corrupt fetishes’ in the self. Furthermore, the collective state of being rather than the individual is emphasized. In such a culture it is very unlikely that purchases could be a reflection of self.

Another possible permutation is that of Erich Fromm, who wrote The Sane Society, a popular analysis of American social decay. Unlike Marx, Fromm (see Belk, 1988, p 146) holds that being rather than doing is the “preeminent form of existence.” However, like Marxists he holds that having is a fountain of social ills. Again, in a culture like that Fromm recommends, possessions would probably not be an extension of self.

Even in John Locke’s world, which to some extent still exists today, private property may only have a utilitarian role. Not in the Dionysian ethos that pervades the modern west but in its Apollonian past according to the Canadian anthropologist Anthony Wallace (1963, pp 101-11). In such times, Neumeier (2006, p 38) tells us that product features were the focus of the advertising. I don't think this is because people were simple and dull but because that was the cultural milieu.

The dichotomy of Dionysian and Apollonian ethos was contrived by the Greeks and an inherent part of their drama and written arts. A dim view is given the motivations that drive a culture during periods of intemperance. William Blake captured the sense of overindulgence, especially in his third proverb (see http://www.los.org/art/Blake.html ).

In the growing prosperity of Victorian times, the economist Veblen postulated that property can be a decorative extension of self (see Belk, 1988, p 157). Belk also reviews analyses of grave goods as further support for this contention that property is an extension of self. The existence of grave goods may however wax and wane according to the presiding ethos or other cultural factors. Our modern American society is certainly a good prospect for viewing property as an extension of self, but we don’t bury goods with the dead.

As noted, I think that Belk’s argument is most persuasive in the context of the modern west. He suggests (p 140) that the more control one has over an object the more it becomes part of self. I disagree with this because we would not have spent the time and energy to master an object if it was not already in our concept of self. In either case, though, the object becomes a reflection of self because it has salience with us, imagery, feelings and resonance - the ladder of brand equity.

Keller (2008, p 72) observes that a strong personal attachment can be established between a brand and a person. Brand’s convey a sense of community, a self larger than the individual, similar to nationalism. The brand imagery like patriotism defines a larger self for those who own the brand. They have become part of such a community. Neumeier (2006, p 40) proposes that brands are advancing into the vacuum left by subsiding national boundaries to avoid homogenized globalism.

In sum, I think Belk’s contention has application today as our Dionysian ethos has gone global. On the other hand, the Marxist interpretation of self has not completely disappeared, with China, Russia, Korea, Cuba, Venezuela and Vietnam still having such inclinations. What is more interesting is that yet another movement in the west may be growing, the caring conserver social movement identified by Lessinger (1991, pp 148-160). It reflects Fromm’s interpretation of self in society. Lessinger argued skillfully about the inevitability of this movement’s success and the economic demolition of the existing order it will ignite.

Depending on your choice of first cause, goods may not reflect an extension of self.


References
Belk, R (1988). Possesions and the Extended Self. Journal of Consumer Research. Retrieved on November 13, 2008 from WVU IMC Week 5 readings.

Keller, K (2008). Strategic Brand management. Pearson/Prentice-Hall.

Lessignger, Jack (1991). Penturbia. SocioEconomics Press.

Neumeier, M (2006). The Brand gap. New Riders.

Wallace, Anthony FC (1963). Culture and Personality. Random House.

Red Bull's Brand Equity

According to Keller (2008, p 53), brand equity is the strong, favorable and unique brand associations in the memory of customers. He goes on to identify (p 54) two sources of brand equity: 1.) Brand Awareness; and 2.) Brand Image. Red Bull has well defined tactics for both sources.

The Brand Awareness Source for Red Bull Brand Equity
Keller (p 54) notes the key elements of Brand Awareness: 1.) Recognition; and 2.) Recall. He postulates that if buy decisions are made at the point of purchase, then brand name, logo, packaging and the other elements of brand recognition are important factors. If the buy decision is made before arriving at the point of purchase, then brand recall is centrally important. Duncan (2005, p 140) concludes that low-involvement purchase is usually done for products that are relatively cheap, bought frequently, and are low risk. In such cases, in addition to traditional advertising with its reach and frequency drills, it would be productive to spend time getting the name, logo and packaging correct.

Red Bull did just this. The Pearson Case Study 4 (2006, p 70) describes how Red Bull selected a distinctive, slim can. They also created a prominent and eye-catching logo of two bulls and a yellow sun. Package wording effectively communicates the products benefits: Energy Drink. The packaging is an important part of the branding, as we might expect for a low-involvement product. Pearson Case Study 4 goes on (p 70) to note that changing the carefully selected package elements, in Germany substituting a glass bottle for the slim can, resulted in a dramatic drop off in sales.

To increase brand recall, Keller (p 55) advises that a slogan or a jingle can establish the memory linkages that improve recall. Pearson Case Study 4 (p 69) relates that Red Bull developed an effective slogan, “Red Bull gives you wiiings.” They use little advertising but when they do it consistes of unusual animated shorts that end with the slogan, “Red Bull gives you wiiings.”

The Brand Image Source for Red Bull Brand Equity
Keller (p 56) gives the necessary strategy for building a brand image: “link strong, favorable and unique associations to the brand in memory.” There are two factors to strengthen brand association: 1.) Personal relevance; and 2.) Consistence in its presentation over time.

Keller (p 57) goes on to say that direct experiences create the strongest brand benefit associations. This fits into Red Bulls strategy according to Pearson Case Study 4 (p 73). Their entry strategy is to seed happening places such as shops, clubs, bars and stores. They thus focus initially on opinion leaders who obtain positive direct experience with the brand. Once word of mouth has created a buzz about the product, they then widen distribution to areas surrounding the “in” spots. Keller (p 57) postulates that word of mouth advertising is particularly effective at building positive brand image in the product categories of restaurants and entertainment. It is not a stretch to see that this happened with Red Bull as well.

Keller (p 58) discusses how desirability and deliverability are critical factors in creating a favorable brand image. For Red Bull, Pearson Case Study 4 (P 70) gives the energy boosting and detoxifying benefits for the product. Red Bull improves endurance, increases mental alertness, improves reaction time, and eliminates waste substances. These are favorable for athletes, business people, and clubbers. In addition to favorability, Keller (p 58) says another factor to stimulate desirability is believability. Direct experience and word of mouth from opinion leaders is very believable.

Deliverability – does the product deliver what it promised? Pearson Case Study 4 (p 69) gives the pharmacology of Red Bull. It consists of caffeine as a stimulant, and two amino acids: taurine and glucuronolactone. These are both energy enhancing and detoxifying. This is confirmed by pharmaceutical studies. The formula for the drink has been patented by a Thai Pharmaceutical company.

Uniqueness is the third major factor for building brand image. According to Pearson Case Study 4 (pp 71-2), Red Bull created a new food category, Functional Food that enabled it to have the unique ability to make any performance claims about a food. The study notes (p 81) that this act enabled Red Bull to “establish the brand’s prominence on its own terms.” This gave it a unique message to communicate to its users, and a significant barrier to entry for competitors. It now enables Red Bull to establish in consumers the belief that its characteristics are prototypical for all members of this category, because today there are competitors. Keller (p 59) notes that this is positive for brand image.

For a more complete analysis of Red Bull integrated marketing communications, see Redmond Review

References
Duncan, T (2005). Principles of Advertising & IMC. McGraw-Hill/Irwin.

Keller, K (2008). Strategic Brand Management. Pearson/Prentice-Hall.

Neumeier, M (2006). The Brand Gap. New Riders.

Pearson Case Study 4 (2006). Red Bull: Building Brand Equity in New Ways!. Pearson/ Prentice-Hall.

Greta Garbo, an Enduring Image

Greta Garbo still sells, some 80 years on. By my calculations, her movies earn approximately $200,000 annually on Amazon, Borders and Barnes&Noble. What is more, her items have a high response rate showing resonance with the audience (see Signature Series ) In EBSCOHOST, there are 12,152 articles about her or that reference her, with 4,816 written in the past five years. The mystique is as much about her lifestyle as her films.

Greta Garbo had the resolute spirit that Ayn Rand, who admired Garbo, tried to capture in the fictional character John Galt. Unlike Galt, however, who ran away to work apart from the system, Garbo turned the system inside out and made it work for her. This is all the more remarkable when you consider that the other major stars of the era were overwhelmed by the system.

Three of the biggest were Clara Bow (the It girl), Rudolf Valentino and John Gilbert. Rhodes (1999, p 197) notes that both Valentino and Bow, stars of first rank, had no control whatsoever over their movies or the public presentation of their image. Garbo, on the other hand, ended up with complete control over all production – choice of director, writers, script, co-stars, schedule, all aspects of production, including release of image building communications (see for example, Vieira, 2005, pp 164,167, 173).

Hollywood was having difficulty establishing a continuing female role type that was attractive to women of that day. The virgins like Mary Pickford and Lillian Gish, the vamps like Gloria Swanson and the flappers like Clara Bow were losing traction at the box office (Paris,1994, p 112). Garbo did not play into stale role types but instead became the embodiment, as she is now characterized by feminists, of the “new woman” (See Fischer, 2001, p 90).

I have seen most of her movies and there is a triangle, a brand formula or theme in them all – she is married to an older, overbearing man and having an affair with a younger man (see for example Vieira,2005, p 8). When discovered in the act, she is neither embarrassed nor repentant but instead is contemptuous, weary or angry with her older husband. Conveniently for her character and to the relief of the audience, he is killed or dies off, leaving her to her virile suitor.

After her first films proved extremely popular and profitable, she challenged the MGM power structure. She ignored studio dictates, refused to participate in staged publicity and premiers, did not wear traditional foundational garments beneath her clothes, and was in general insubordinate, all of which created a growing tension. It reached the tipping point when she demanded seven times her salary to become the highest paid actress in the business and refused to do the film Women Love Diamonds because she thought it foolish (see Paris, 1994, pp127-8).

MGM finally detonated, finding her in breach of contract, and issued her a cease and desist letter. She went over their heads to Loews Inc., the parent company, and focused on the factual errors in the letter (see Vieira, 2005, pp 45-8). It was also observed that had MGM listened to her they would not have lost $30,000 with Women Love Diamonds (MGM went on with it using a different actress). Loews agreed, and MGM was forced to capitulate to the 21 year old girl. The humiliation of the best brains in a place like MGM rocked Hollywood (see Paris, 1994, pp 129-30). She was given the salary and creative license and for the next decade produced a series of extremely profitable films.

Eleanor Boardman who suffered the one-sided nature of Garbo's friendship, summed up the enduring interest: "You gave, Garbo took, she never said thanks, but she was fascinating."

References

Corbis (2008). Mysterious Woman Photo displayed under arrangement with http://www.corbis.com/ the copyright holder.

Fischer, Lucy (2001) . Greta Garbo and Silent Cinema: The Actress As Art Deco Icon. Camera Obscura 48, Volume 16, Number 3.

Fischer, Lucy, et al (2002). The Feminist Reader in Early Cinema. Duke University Press.

Gaines, Jane (1989). The Queen Christina Tie-Ups: Convergence of Show Window and Screen. Quar. Rev. of Film & Video. Retrieved on October 22, 2008 from EBSCOHOST.

Noir Dame (2008). Down to the Sea in Ships (1922) - Clara Bow, Marguerite Courtot. Retrieved on October 27, 2008 from http://www.noirdame.com/index.php?crn=206&rn=609&action=show_detail

Paris, Barry (1994). Garbo. University of Minnesota Press.

Rhodes, Chip (1999). The Star System and Modernist Identity Formation in the Silent Film Era. Strategies, Vol 12, Number 2. Retrieved from EBSCOHOST on October 27, 2008.

Vieira, Mark (2005). Greta Garbo: A Cinematic Legacy. Henry A. Abrams, Inc.

Greta Garbo Image Elements

This is the second of three postings on Greta Garbo Image Elements.
Name
Keller gives naming guidelines (p 147) that include being easy to spell and pronounce, being familiar, different and distinctive. Greta Garbo as a name is all of these as well as an alliteration, has consonance, is a slant rhyme and is composed of the plosives b,g,t, which according to Keller (p 152) makes names more easily recognized. Finally, I contend that her name taps into “existing knowledge systems.” Keller believes (p 149) this makes them easier to recognize and remember.

The word Garbo is what I call a compositional homonym. Greta Gustafson (her birth name) and Mimi Pollak (her college friend) derived the name Garbo based on first and last name elements they researched. I have no reference that they intentionally based it on Clara Bow, but the word Garbo would tap into knowledge already existing for Clara Bow. In Sweden, Clara would be pronounced KLAR-a. Garbo would be distinct from Clara Bow but is close enough phonetically to have a familiar ring to a world that already knew Clara Bow. Clara Bow was a talented and rising star in the film world in the early to mid-20s.

Style
Keller (p 143) lists four aspects of style. For Garbo, the complexity aspect of her style is minimal rather than ornamental. Her representation is realistic not abstract. Her acting is subtle, and understated when everyone else of that era used exaggeration in movement and gesture. She acted from inside out (see Paris, 1994, p 33), realistic but not the stark social realism that is as equally contrived as the vaudeville drama of the American studios and more pretentious. Her perceived movement was still, while her potency, to juxtapose Keller, was soft and strong.

Theme
Her theme was an application of her style to a formula and look. Her formula was the new woman in an love triangle. This woman was ahead of the other two in the triangle and ultimately drove its resolution. Greta Garbo refused helpless or dizzy female roles. Anymore, the interest in her today is the independence and acumen of her female characters. The theme has proved adaptable over time.

An additional thematic element is her look: languorous eyes, outdoorsy physique, graceful and athletic movement, and the Rembrandt lighting. Her wardrobe on set was done by top designers of her choice and created expressly for the film and the times, elegant in the 20s and plainer in the depression of the 30s. The Rembrandt lighting technique (see Guardian) was distinctive from the North-Lite approach used for her competition (see Cinematographers )

Slogans
A set of slogans, such as The Swedish Sphinx underscored her need for privacy, her avoidance of Hollywood parties, premiers and other events, and her mysterious power of attraction. According to Keller (pp 159-60), slogans reinforce brand positioning through descriptive or persuasive information about the star, and the desired points of difference. Unlike most of Hollywood, she was not a party animal who burned brightly then burned out.

References
Keller, K (2008). Strategic Brand Management. Pearson/Prentice-Hall.
Paris, Barry (1994). Garbo. University of Minnesota Press.

Analyzing Greta Garbo by Six Image Criteria

Keller uses six evaluation factors to study and define a brand image.

Memorability
The name Greta Garbo is easy to remember being easy to spell, pronounce, and having the linguistic characteristics of alliteration, consonance, slant rhyme and plosives to help with recognition and recall. Her style and theme is unforgettable, anyone who has seen her look in photographs or film finds out who she is and remembers. Louie B. Mayer did, writers did, leading actors did, critics and so did the general public (see Vieira or Paris throughout).

The slogan The Swedish Sphinx balances the plosives in her Name with sibilants. Sibilants start with s or soft c and are associated with the romantic, which is also the nature of her films. Again the slogan uses linguistic devices such as alliteration to aid recall. The fashion is classic so always contemporary, familiar and easy to remember.

Meaningfulness
The name Greta Garbo gave her initial meaning because it was familiar and discreetly associated with the existing knowledge system on Hollywood films. Clara Bow up through the mid-20s was a rising and charismatic star (see Noir Dame, 2008, p1 or Rhodes, 1994, p 191). Furthermore, Garbo’s theme advanced that meaningful start with a formula that is a primal, fundamental human relationship that can be applied to many situations. In her style, she was not the stereotypical female of the time, but rather now considered to be the first new woman. She expressed the spirit of freedom that pervaded the 20s. In retrospect, she was in the genesis of recognizing that freedom for women in the United States.

Likability
Keller (p 142) explains this as consumers finding the image aesthetically appealing, “Is it likable visually, verbally and in other ways.” Persuasive brand image elements reduce the burden on other marketing communications. In the film industry, the benefits of watching a particular film are less concrete than most other business transactions. Keller tells us (p 142) that in such cases “[all] the more important is the creative potential of the brand name and other brand elements to capture the intangible characteristics of the brand.”

Her look was attractively appealing so that movie goers would see her films three times instead of once (see Paris, 1994, p 119). Her Name and Slogan had drawing power from an association with pleasing films, and with a sense of mystery and romance. Her theme was a captivating expression of the balancing act between the traditional and the modern in those times.

Transferability
Transferability is the ability of the image elements to support line and category extensions (see Keller, 2008, p 142). For Garbo, line extensions would be new films, her brand image elements applied to different roles. Rhodes (1999, p 191) notes that by the 1920's many had realized that the stars rather than the stories were selling the movies. He says that "This change often took the form of storylines that thematized the relationship between the new stars to the publics upon whom they depended for their success." Garbo, more than anyone before or since, established a lasting brand.

The drawing power of her brand elements in terms of Keller’s progressive criteria (2008, p 140) have been detailed in the sections on Memorability, Meaningfulness, and Likability. They apply as well to one film or role as to another because they are related to the actress, and as Keller notes (p 142) the less specific the element to a line item or a category item the more transferable it is.

Adaptation
Keller defines adaptability (p 143) as the ability of brand elements to change over time as consumer opinions and beliefs change or just to remain contemporary. This happened to Garbo as silent film gave way to talkies and the roaring twenties gave way to the great depression. The brand name Greta Garbo did not change but with the introduction of Anna Christie, her first talkie, a slogan for the movie was able to play off the old slogan. “Garbo Talks” was a humorous extension to the “Swedish Sphinx” and its alluring silence.

Her unassuming and minimalist style was changed slightly as well as its application to a theme, adapted for the changing communication medium and economic milieu. In Ninotchka and Grand Hotel, her performance became more ornamental in complexity, less minimal. One of them was a comedy. Additionally, more of her films reflected the gritty existence of the times and made less use of elegant fashion and more of plain clothing. There was also adaptation to historical dramas such as Queen Christina. The formula was also adapted so that governments in several instances replaced the older man in her iron triangle. The Swedish crown in Queen Christina and the Soviet government in Ninotchka are examples.

The 30s Greta Garbo was substantially the 20s Greta Garbo but with some adaptation of the brand elements, which proved to be very successful at that.

Protectability
Keller categorizes two types of protection for brand elements: 1.) Legal; and 2.) Competitive. A personal name such as Greta Garbo can be trademarked especially when its unauthorized use is a bad faith attempt to mislead the public and misdirect trade and economic livelihood from a corporate body that has invested in that name for commercial purpose (see Trademarked and MirrorOfJustice).

Furthermore, all the brand elements have always, even today, proved competitively protectable. Her style and art have proven impossible to define precisely enough for anyone else to repeat her effect on screen. The iron triangle formula can be copied but her theme based on it cannot because that theme is the application of her style into the formula. The slogans applied to her would be empty today if applied to someone else, a cheap rip-off.

References
Gaines, Jane (1989). The Queen Christina Tie-Ups: Convergence of Show Window and Screen. Quar. Rev. of Film & Video. Retrieved on October 22, 2008 from EBSCOHOST.

Keller, K (2008). Strategic Brand Management. Pearson/Prentice-Hall.

Noir Dame (2008). Down to the Sea in Ships (1922) - Clara Bow, Marguerite Courtot. Retrieved on October 27, 2008 from http://www.noirdame.com/index.php?crn=206&rn=609&action=show_detail

Rhodes, Chip (1999). The Star System and Modernist Identity Formation in the Silent Film Era. Strategies, Vol 12, Number 2. Retrieved from EBSCOHOST on October 27, 2008.

Baby Michelangelo Direct Marketing Plan

The Baby Einstein series of DVDs are award winning baby development media produced originally by a company with the same name, started by Julie Clarke in 1997. According to Hughes (2005, p 35, see also Words ). the awards were from the Parenting magazine and also from the American Baby magazine. He also relates that (p 37), originally the only available medium was videocassette. After the Disney purchase in 2001, the media offerings were substantially extended to include not only videos but also CDs, DVDs, flash cards, software, books and educational toys. Jennifer Garner is a spokeswoman for the line.

These products are termed “infant development material” by Disney. Disney Baby Einstein products are appropriate for youth aged 0 to 3 years. Little Einstein, a separate product line, targets 3 years to Kindergarten. The Baby Einstein product line has an aim, as discussed on their Web site to “expose little ones to the world around them in playful and enriching ways. An opportunity for discovery” (see BabyEinstein).

According to Disney (see Staggs, 2007, p 9, and Disney Corporate), the parents who purchase Baby Einstein products come from wide ranging demographics. Hughes notes (p 35) that babies are the end user of the product. Wartella and Robb (2007, p 36) find that very young children, those under 3 are subjected to “massive amount of screen media.” This includes TV, videos, DVDs, computers, or videogames. The average exposure per day for children aged one and younger is 49 minutes while it is 1 hour 51minutes for children aged 1 to 3.

As an instructional exercise, a Direct Marketing Strategic Plan has been prepared for an ersatz new extension in the series, Baby Michelangelo. Spiller and Baier describe direct marketing strategic plans. The essential elements (2005, p 87) are:

1. Product
2. Offer
3. Medium
4. Distribution Method
5. Creative

I propose three offers in my direct marketing section of the Baby Michelangelo campaign. The first is a direct mail offer I call the Exclusive Offer. The second is the Web offer, a search engine marketing approach. The third is a direct response advertisement. The complete plan is at Baby Michelangelo Direct Marketing

References
Hughes, P (March 2005). Baby, It's You: International capital discovers the under threes. Comtemporary issues in early childhood. Retrieved on September 8, 2008 from EBSCOHOST.

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

Staggs, T (February 8, 2007). Disney Consumer Products Presentation. Retrieved on September 8, 2008 at http://corporate.disney.go.com/media/investors/2007_irc_dcp.pdf

Wartella, E and M Robb (2007). Young Children, New Media. Journal of Children and Media. Retrieved on September 8, 2008 from EBSCOHOST.

The Microsoft Brand Paradox

Its reputation apparently in retreat, Microsoft still has banner year after banner year, and is among the world’s most valuable brands. I believe this is a case that Keller (2008, p 72) describes in which a company gets behavior loyalty even though they don't have an engaging resonance with its consumers. Haigh and Knowles (2004, p 24) additionally note that other intangibles are included in various definitions of a brand. These other intangibles include: 1.) Patents, and software; 2.) Business process and supply chain configurations; and 3.) Contracts, distribution rights, and licenses.

Microsoft has fundamental patents on computer technology that is uses as a barrier to entry. Parloff (2007, p 1) reports that Microsoft is using this intellectual property to outmaneuver Open Source competitors. Microsoft also has an effective business process. A common gag in the high-tech industry is that there are two types of sales reps, those who make their quota and new ones. This may be true for IBM, Oracle and Sun but not Microsoft, who keeps on sales reps even if struggling and works with them. The sales teams eventually gain in-depth knowledge of their customer accounts. Neumeier (2006, p 18) talks about bridging the brand gap, and this requires “crystal clear and potent communications,” the kind Microsoft gets from reps with long experience on an account.

Microsoft has a long-standing relationship with the computer market in general. Keller goes on (p 84) to discuss customer relationship equity that creates a “tendency to stick with a product, above and beyond objective and subjective assessments of the brand.”He postulates (p 86) that increasing customer equity (like relationship equity) results in increased brand value.

My own experience is that this is particularly true in high-tech. There is great risk and high cost in migrating from one technology platform to another. The natural tendency is to retain the existing relationship, unless the brand in question poses more risk than a change. Keller (p 9) notes that brand loyalty provides a “predictability and security of demand” and is a barrier of entry to competitors.

A strong brand can also become a virtuous circle: a strong brand results in better market performance, better market performance increases brand awareness and image, which in turn increase brand strength. Keller says (p 12) that a strong brand is valuable reassurance to business customers. These are large buyers and I know Microsoft has sales teams dedicated to these large accounts, and top execs are also.

One very important value delivery strategy in high-tech is Total Cost of Ownership (TCO). Keller (p 14) observes that a value delivery strategy is an essential element for selling to business customers. Microsoft is aware of this science of branding 1-1, and has imbued in corporate customers the belief that its brand has the lowest TCO. For example, Window’s ease of use gives it a lower total cost of ownership (TCO) in four of five usage patterns tested (see Gaudin, 2002, p1; Microsoft TCO, 2008, p1; Microsoft Speedy Hire, 2007, p1; and Microsoft Key Stone, 2007, p1).

Keller also asserts (p 16) that high-tech customers are “committing to a long-term relationship.” Microsoft has structured a brand that has lasted over time. It provides presales technical support, product support services after sales, consulting services, and a strong commitment to research and development so an investment in Microsoft will retain its value over time.

Microsoft continuously improves its software through investments to improve fundamentals such as reliability, security, manageability, and performance. This investment in tomorrow by Microsoft helps safeguard learning Microsoft technology. Woodie (2006, p1) cites an IDC study that in commitment to long term viability, Microsoft just edged out IBM for top spot.

These are seasons Microsoft has a strong brand but not an equally strong reputation.

References
Gaudin, Sharon (December 6, 2002). Microsoft-Backed Study Slams Linux TCO. Datamation.

Haigh, D. and J. Knowles (June 2004). What’s in a brand? Marketing Management.

Keller, K (2008). Strategic Brand Management. Pearson/Prentice-Hall.

Microsoft Key Stone (2007). Retrieved on October 24, 2008 from http://www.microsoft.com/windowsserver/compare/ReportsDetails.mspx?recid=2

Microsoft Speedy Hire (2007). Speedy Hire Case Study. Retrieved on October 24, 2008 from http://www.microsoft.com/windowsserver/compare/CaseStudyDetails.mspx?recid=155

Microsoft TCO (2008). Retrieved on October 24, 2008 from http://www.microsoft.com/windowsserver/compare/linux/windows-server-tco.mspx

Neumeier, M (2006). The Brand Gap. New Riders.

Parloff, Roger (May 14 2007). Microsoft takes on the free world. Fortune Magazine. Retrieved on October 24, 2008 from http://money.cnn.com/magazines/fortune/fortune_archive/2007/05/28/100033867/

Woodie, Alex (January 10, 2006). Microsoft's Partner Channel the Strongest for Software, IDC Says.Retrieved on October 24, 2008 from http://www.itjungle.com/two/two011106-story01.html

Brand Palimpsests

I am loyal to Coca Cola in the soft drink product category. Coke communicates vitality and always has an appeal to modernity. As Neumeier and Keller postulate, successful products are experiential and Coke is that but further, it’s a part of my life. With its campaigns throughout history, The Pause that Refreshes, The Real Thing, and Max Headroom, Coke positions itself as something that fits into my lifestyle. It’s a cultural touchstone.

To me Coke communicates style and energy while Pepsi, in contrast, seems base and impoverished. This is not a result of what Pepsi is doing today, because I find them to be adequately following Coke’s initiatives. For example, Coke is leading the beverage industry in environmentally friendly containers (see Business Wire). Everyone else, including Pepsi is now following suit. No, my perception of Pepsi has to do with its history. Past communications were low cost in comparison to Coke, no art and clumsy.

The Pepsi Generation. Yipes! They improved over time but my consciousness of them is a palimpsest and the earlier writing they did on my psyche won’t ever go away completely.
They have never had anything like the Hilltop commercial: Hilltop Ad. This is how I still view Coca Cola.

On the other hand, in the computer hardware category, I am completely agnostic. I do not differentiate between Dell, HP, Compaq, eMachines, Sony, or any of them. Microsoft Windows has commoditized computer hardware. Price is the overriding determinant in my purchase decision. I am not loyal because I am really buying Windows, which sits between the computer and myself. Microsoft is the middleman controlling my access to what I want.

I have a growing interest in Apple, and now have two Macs. Apple is a completely different product and does not try to compete on hardware features but has given me a different middleman, a Linux based operating system - OS X, to the Microsoft applications I like, especially Office. Perhaps the others could try the same thing, although if they do they may commoditize operating systems, and drag Apple and even Microsoft into the same bad place they now occupy as undifferentiated products in a losing race to the lowest price.


References

Keller, Kevin (2008). Strategic Brand Management 3rd Ed. Pearson/Prentice-Hall.

Neumeier, Marty (2006). The Brand Gap. New Riders.

Causal Maps

As discussed in the previous posting, we determine the stability of a causal loop by offsetting plus and minus segments in the loop. A Causal Map is a hierarchy of interacting, interlocking causal loops. A map represents the overall model. An important question for such a model is will it reach equilibrium based on the nature of casual loops within it.

There are several strategies for determining the stability of a map that can be generalized into two categories: 1). Loops within a map are of unequal importance; 2.) Loops are of equal importance.

If loops are of unequal importance, one strategy for predicting equilibrium is to assume the fate of system is determined by most important loop. An issue arises that the judgment of loop importance may be arbitrary. We can address this with knowledge of the process being modeled to argue about the most important inner dynamic.

On the other hand, we can also neutrally look at which loop has the most variables of interest and asssume such a loop is most important. The greater the number of inputs to and outputs from a variable, the greater its importance. The loop with the greatest number of important variables is the most important loop. This is also known as the degree of the system.

In the example of urbanization that was modeled in the previous posting, variables P, M, S all have more than one output, as do variables P, D, B. So P,M,S,D,B are most important variables. We look for the loop that contains greatest number of these: P-M-S-B-D-P is that loop.

Causal Loop P-M-S-B-D-P has an even number of negative signs so it is deviation amplifying. We would conclude the system represented by the entire Causal Map is unstable, using this strategy. It will eventually destroy itself if something is not dramatically changed.

Now let’s assume a different strategy category for P-M-S-B-D-P –that the loops are of equal importance. To predict system stability, count the number of negative loops. If this is an even number, then the system is deviation amplifying, if odd then stable. In the urbanization case, we have one of the four loops negative, P-G-B-D-P. If the relationships are of equal importance, in our example the result is a stable system. The system will ultimately reach an equilibrium.

Another tactic for a strategy that assumes the causal loops in a map are of equal importance is to count the number of negative relationships between variables, making sure to count a relationship more than once if is in multiple loops. Relational algebras can be developed for such calculations for maps of any size.

It’s possible both strategy categories are applicable to a map, albeit at different times. Urbanization, in our example, may be stable for some period of time when all causal relationships are more or less equal in effect on overall system. Imbalances can, however, accumulate over time to change the egalitarian inter-relationships.

A differential speed that cycles are completed, or a growth in the number of times a particular loop is activated across periods of time can result in an aristocratic set of relationships – some holding more power and control over the system. Then we would change from a strategy assuming equal importance of all loops to analyzing the most important loop.

In sum, Causal Maps are a means to portray a complex interdependence so one can better question the situation. They help to impose some order to the domain being analyzed.

Causal Loops

A causal map is a specific type of model focusing on causal factors. It is an abstract model that uses cause and effect logic to describe the behavior of a system. Causal Models have found empirical realizations in many different fields and have been integral to theories of cognitive balance proposed by Heider in 1946 and Kelly in 1955, and since then have been applied in psychology, international relations, management sciences, game theory, group decision, and electric circuits’ analysis. They have a natural application to integrated management communications.

To construct a causal map, start by naming the variables of the relationship. Next, if one variable affects another draw a line from the “cause” to the “effect.” Place a plus or minus sign next to each line drawn according to the following: + means the two connected events move together, when a cause increases so does effect; - means the two connected events move in opposite directions, when a cause increases the effect decreases.

Consider Maruyama’s model of urban growth (see Weick for a fuller explanation of this model.) Maruyama defined the variables as:

• Number of people in city
• Modernization
• Migration into a city
• Sanitation facilities
• Number of diseases
• Bacteria per area
• Amount of garbage per area

His analysis resulted in the following relationships:

Any variable in the map that only has lines coming into it is a dependent variable. Any variable in the map that only has lines going away from it is an independent variable. A variable that has both lines in and lines out is an interdependent variable. In Maruyama’s solution above, all variables are interdependent.

To analyze with a causal map, find causal loops. To do this, start with an interdependent variable. See if there is a pathway leading out on the from-lines eventually returning on the to-lines, i.e. start with interdependent variable and see if it has paths back to itself. Here are the causal loops in the Maruyama map:

If there is an even number of minus signs (0 is even) in a loop it is a deviation amplifying loop, aka vicious circle or virtuous circle depending on your viewpoint. Trace what happens when a variable in one of the loops increases. Take loop P-M-C-P, image (1) above. An action to increase P (number of people in a city), goes through the loop, and at the end, yet a further increase in P is produced.

If there is an even number of minus signs (0 is even) in a loop it is a deviation amplifying loop. This means there is NO REGULATION OR CONTROL. Once a variable starts in a direction, it will continue that way until system is destroyed or a dramatic change occurs.

If there are an odd number of minus signs in a loop it is a deviation counteracting loop. These impose stability on the system, self regulation. Once again, trace what happens when a variable in one of the loops in our example increases. Take loop P-G-B-D-P, image (4) above. An action to increase P (number of people in a city), goes through the loop, and at the end, a decrease in P is produced. This effect, opposite from the cause results in a stability for the loop. A change eventually dampens into an equilibrium.

When we examine relationships with complex interactions, such as integrated marketing communications, we can use a causal map. After defining the varibales and their realtionships, we would

• Look for interdependent variables
• Causal loops
• Presence or absence of control
• Deviation counteracting loops mean system is basically stable

Is stable always good? Change may be an objective, in which case working a deviation amplifying loop would be advantageous.


References

Weick, Karl (1979). The Social Psychology of Organizing, 2nd Edition. McGraw-Hill.

Bounded Rationality

Karl Weick (1979, p 20) discusses the concept of bounded rationality, a concept that is applicable to communications and to information systems. Bounded rationality means that all of us have perceptual and information processing limits. We may always intend to act fully rational but usually we act on easy to get to knowledge, use undemanding rules to search for a conclusion, and take shortcuts whenever possible.

This implies that we need to assume that the decision makers in our communications or information systems may use limited rationality. They form attitudes and opinions, or make decisions in terms of familiar facts and abbreviated analyses.

Weick’s discussion of Bounded Rationality extends earlier work done by Simon (1960). Simon (pp 80-84) analyzes the limits of rationality. He finds that behavior is not objectively rational for three reasons:

1. Rationality requires complete knowledge including the anticipated consequences
2. Consequences are future events so impacts can only be imperfectly anticipated
3. Even if all possible alternatives are known, it is unlikely the decision maker would be able to recall all of them in the decision making process

The needed abilities for objective rationality are at odds with the usual reality of fragmented knowledge. Objective rationality also runs counter to the devious consequences of indirect influences in a casual map. Finally, it is not reasonable to assume that all possible alternatives could be considered in a reasonable timeframe, even if they are known.

Simon concludes (p 108) that

“Human rationality operates, then, within the limits of a psychological environment. This environment imposes on the individual as ‘givens’ a selection of factors upon which he must make a decision.”

The implication of this, according to Simon, is that a deliberate control of the psychological environment can manipulate even “rational” choice or decision.

References
Simon, H.A. (1960). Administrative Behavior: A Study of Decision-Making Processes in Administrative Organization. Macmillan.

Weick, Karl (1979). The Social Psychology of Organizing, 2nd Edition. McGraw-Hill.

Three Media Acceptance Models

There are several models for analyzing the diffusion of new ideas in a culture. Fishbein and Azjen proposed the Theory of Reasoned Action (TRA) to explain the phenomenon. This model has been widely adapted and discussed but its essence is that someone performs a behavior because of his or her own attitude toward performing the behavior and his or her subjective norm regarding the behavior. The attitude for performing a behavior is an expected value assessment done by the individual (Fishbein, 1976, p 492) based on the returns they see in the behavior. On the other hand, the subjective norm is the influence that significant others have on an individual. Fishbein (p 493) notes

"most people who are important to me think I should (or should not) engage in the behavior would influence intentions…”

Their endorsements of a behavior, or criticism, would affect an individual’s intent to perform. The fusion of both factors, individual attitude and subjective norm determines if the behavior is enacted.

Another widely used model is the Technology Acceptance Model (TAM) proposed by Davis. This is an instantiation of the TRA model. The behavior is specifically technology adoption and the beliefs and norms are perceived usefulness and perceived ease of use. If both these beliefs are positive then the likelihood of accepting new technology is positive.

Peters, Amato and Hollenbeck (p 130) review these two models in a study to understand acceptance of wireless advertising messages. However, they opted to apply a third model, the venerable Media Uses and Gratifications Theory developed by Katz in the 1950s. Katz hypothesized that people use media to satisfy certain needs or gratifications. The audience actively exposes itself to new media contents based on these needs or gratifications.

Peters, Amato and Hollenbeck (pp 143-5) include a useful questionnaire they prepared to understand the acceptability of wireless advertising messages by consumers with mobile form factors. These questions were used in a participatory inquiry with a selected group of “informants” who represent their audience at large. The questions are categorized along functional use or technology feature. They are general and open-ended so that interviewers can conduct “conversational probing to elicit greater elaboration from the informants.”

Their approach (p 131) is based on Clark Moustakas’ protocol for phenomenology. Hiles (2008, p1) notes the “pivotal role” Michael Polanyi’s Personal Knowledge had in Moustakas form of participatory inquiry. Polanyi (1974, p 18) criticized the naïve objectivism of most scientific inquiry as “a delusion and in fact a false ideal.” To Polanyi, the test of knowledge is not complete objectivity, which cannot be obtained, but the presence of a commitment to share the knowledge for review by peers. This commitment tempers the subjectivity opposed by objectivism. It’s refreshing to see Peters, Amato and Hollenbeck use a post-critical approach that incorporates personal knowledge into the process.

References

Fishbein, Martin (1976). Extending the Extended Model: Some Comments. Advances in Consumer Research.

Hiles, David (May 16, 2008). Putting Heidegger Polanyi Popper in the same frame. Missouri Western University. Retrieved on September 21, 2008 from http://www.missouriwestern.edu/orgs/polanyi/Loyola08/Loy08Abst/Hiles-abs.pdf

Peters, Cara and Christie Amato and Candice Hollenbeck (Winter 2007). An Exploratory Investigation of Consumers’ Perceptions of Wireless Advertising. Journal of Advertising.

Polanyi, M. (1974). Personal knowledge: towards a post-critical philosophy. University Of Chicago Press.

Camouflage the ordinary with glamour, or at least history

My favorite magazine is the Smithsonian, published by the distinguished Smithsonian Institution. History, geography and anthropology are all article topics, all written with attractive eloquence. Interestingly, most of the advertisements are direct response, and from companies with superlative quality.

The magazine has seven million monthly readers (see Smithsonian Magazine ) so has quite a reach and began production in 1970 with Edward K Thompson, who left his post as editor at Life magazine. The creative strategy for the magazine is to “stir curiosity in already receptive minds.” The clientele are already interested in history, travel, geography, anthropology, archeology and the other fun sciences and subjects. The advertisements, not surprisingly are about these themes also.

The Stauer company places direct response advertisements in the Smithsonian magazine. They have been doing so for at least three years. My wife throws away old magazines so I only have issues back to 2006. But there is the Stauer ad, 2006, 2007, and 2008. The ad must be working to keep it for nearly three years.

Stauer is a watchmaker (see their Web site) that specializes in historic designs from the golden age of watchmaking. They are also jewelers and sell coins and other collectibles but the ad in question is for a watch. Not just any watch though, they are remaking long forgotten designs using modern materials.

Spiller and Baier say (2005, p 125) that the headline is “possibly the most important element of a direct response print advertisement.” The headline for Stauer’s ad is “World’s most valuable timepiece disappears.” There are other headlines in different issues but they capture this theme: We are losing part of our history when a culture’s plastic arts disappear, including metal work, leather work and watch design. Stauer includes lengthy copy in the full-page ad describing the history of the watch they are now remaking.

According to the Elaboration Likelihood Model this is central route processing. The greater our communication engagement with the other party the more likely that party will use what the model calls central route processing, which is to say a great deal of message related thinking. Media appropriate for in-depth thinking and evaluation of the message is used in such a case. Cacioppo and Petty (1986, p 673) state that when:

“the elaboration likelihood is said to be high. This means that people are likely to: (a) attend to the appeal; (b) attempt to access relevant associations, images, and experiences from memory; (c) scrutinize and elaborate upon the externally provided message arguments in light of the associations available from memory: (d) draw inferences about the merits of the arguments for a recommendation based upon their analyses of the data extracted from the appeal and accessed from memory; and (e) consequently derive an overall evaluation of, or attitude toward, the recommendation.”

This bodes well for the selling of these watches. The body copy can tell the story completely and Spiller and Baier (p 124) note that is an essential aspect of successful print advertising for direct response. Stauer has complete text copy describing the Graves watch, which recently auctioned for $11,000,000, including its interesting history. Finally, Spiller and Baier (p 126) note that the time eventually comes to “ask for action.” Stauer does this after the interesting body copy. Here are the offer details:

• 2 year warranty
• 30 day free trial period
• Not available in stores
• Three payments of $33
• 
• 800-859-1736
• Promotional code GRV378-04
• Address of company if you wish to order by postal mail

There is a rational deftness to the offer, the product and the medium. A receptive audience is given detail of a glamorous history about the original watch. So Stauer engages them in central route processing. “Free trial” is used as recommended by Spiller and Baier (2005, p 126). The offer should showcase the benefit. Here the headline and copy emphasize the historical interest and exacting craftsmanship to what is really an ordinary replication of the original work of art. This whole direct response ad is characterized by facility and skill.

References

Cacioppo, John and Richard Petty (1986.) THE ELABORATION LIKELIHOOD MODEL OF PERSUASION. Retrieved on September 19, 2008 from the EBSCOHost database.

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

Txt2Win and Short Codes

In their Darwinian struggle for attention, marketing agencies are creatively employing advanced technology, including mobile form factors such as cell phones, iPhones and Blackberries with text messaging (SMS) or multimedia messaging (MMS) communication tactics. MobileMarketing (2007, p 1) considers TXT2WIN one of the most effective ways to collect mobile phone numbers. Prospects or customers participate in a contest, which has a meaningful reward or accolade, by using the text function on their mobile phones. Say and Southwell (2006, p 265) relate how successful they were in their use of Txt2Win for not only capturing mobile phone numbers but also for increasing “new Internet banking registrations” by 576%.

Often used in conjunction with Txt2Win are short codes, and Say and Southwell used those in their campaigns as well (p 265). The Common Short Code Administration (2007, p1) manages short codes in the United States. They are 3, 5 or 6 digit, easy to remember numbers that are associated with the longer 10 digit numbers. The 3 digit numbers are only usable within your own wireless provider, while the 5 or 6 digit numbers are inter-carrier. Short codes can only work with mobile communications technology because with mobile, the phone number is collected on the client and then sent all at once to the carrier. With the Plain Old Telephone System (POTS), it could not work because telephone numbers are sent one digit at a time to the carrier.

Becker and Hanley (2006, p 3) say their case studies show that mobile is the preferred channel for certain segments including youth and ethnic groups. MMAGlobal (September 22, 2006, p 1) cites research that indicates Hispanics are more comfortable using their cell phones in more advanced applications. They also report that mobile was pivotal in a creative marketing campaign conducted by Tylenol and it “provided a unique communication mechanism connecting Tylenol with Hispanic football fans anytime, anywhere.”

A winning concept used by ELLE magazine here in the United States was based on mobile phones and MMS. MMAGlobal (2006a, pp1-3) explain the case study and its great success. This offer for was based on a sweepstakes. It used cross channel media, advertising in the magazine, and a direct response using mobile messaging. The sweepstakes had readers spotting advertisements in the magazines, and replying to a short code with a picture they snapped using their camera phone.


References
Becker, Michael and Michael Hanley (August 18, 2006). Engaging the “Connected Customer.” Retrieved on September 2, 2008 at http://mmaglobal.com/modules/article/view.article.php/535


Common Short Code Administration (2007). The Market for Common Short Codes. Retrieved on September 1, 2008 from http://www.usshortcodes.com/csc_about.html

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

MMAGlobal (September 22, 2006). Tylenol tackles Hispanic football fans (The Hyperfactory). Retrieved on September 2, 2008 at http://mmaglobal.com/modules/article/view.article.php/549

MMAGlobal (May 21, 2006a). ELLEgirl Magazine (Mobot). Retrieved on September 6, 2008 at http://mmaglobal.com/modules/wfsection/article.php?articleid=406

MobileMarketing.Net (2007). Mobivity TXT2WIN. Retrieved on September 1, 2008 from http://www.mobilemarketing.net/txt2win.aspx

Say, P. and J. Southwell (Jan-Mar 2006). Beep, beep, beep, beep, that’ll be the bank then – Driving sales through mobile marketing. Journal of Direct, Data and Digital Marketing Practice.
Spiller, L. and M. Baier (2005). Contemporary Direct Marketing. Pearson/Prentice

Getting too Personal

White and Zahay (2008, p 41) caution about getting too personal in our communications with publics, "extending beyond friendly recognition to suggest an inappropriate level of familiarity." If we over-tailor our messages, those messages may be perceived as manipulative (p 42). Can we personalize our message and how? The research by White and Zahay (p 48) suggests that explicit justification should accompany personalized messages.

"In contrast, when highly distinctive messages are unavoidable or otherwise compelling from the firm’s perspective in initial exchanges, our results caution against sending these messages in the absence of an explicit justification."

Another problem with personalization deals with customer knowledge of their own preferences. Simonson (2005, p33) relates that including personalized options in the offer can result in up-selling, but this depends on the stability of customer preferences and their insight into those preferences.

What Simonson labels Category 3 customers, those having stable preferences but lacking insight into those preferences, can be problematic regarding personalization. Such a customer profile, according to Simonson (p 34) is prone to misunderstand customized offerings leading to dissatisfaction.

Even with substantial and correct demographic and psychographic data, customized offers can backfire with Category 3, as Simonson notes:

“Consequently, these customers may mistakenly accept customized offers or choice
criteria that do not really fit their preferences, which leads to dissatisfaction.”

References

White, TB and D. Zahay (2008). Getting too personal: Reactance to highly personalized email solicitations. Springer.

Simonson, I (January 2005). Determinants of Customers’ Responses to Customized Offers:Conceptual Framework and Research Propositions. Journal of Marketing

Personal Software Process

Statistical analysis is an integral part of marketing communications. Statistics is also used in bid proposals for software engineering projects, and more generally in software development process management. The Software Engineering Institute has a rigorous course called the Personal Software Process. It is based on the book “A Discipline for Software Engineering” by Watts S. Humphrey and is part of the SEI Series in Software Engineering. The purpose is for students in the course to understand the process of software development while developing statistical tools for documenting and analyzing this process.

During the course, ten programs are developed at a rigorous pace. Estimates are made on the time it will take to go through the various phases to develop the program. Actual times for each step in the process are compared and statistical analysis done on the differences and the trends. The program assignments themselves are to develop the statistical tools used to do this analysis.

Additionally, bugs that were encountered are recorded and explained along with strategies for avoiding them in future. A report is prepared for each program, PSP1 through PSP10. I used C++ for the programming language and used Visual Studio 6 as the IDE.

Here are the solution reports, with C++ source code, and statistical analysis that I developed in the course.

PSP1
PSP2
PSP3
PSP4
PSP5
PSP6
PSP7
PSP8
PSP9
PSP10

Benefit Description Strategy in Use

The Linens 'N Things brand name is a benefit description strategy, having the desired result in the name itself. There may also be association going on as well. To me the apostrophe means something missing. Curiously, a new trademark, Linens-n-Things, has been added to the original. This was done in 2001 according to TESS (2008, p1). The original trademark was granted in 1970.

The Internet may have impact on brand names, especially because of naming guidelines by mega websites and also for search engine selectivity. An example is Wikipedia (2008, 1). It discourages the use of apostrophes. Also, when I do a search on Yahoo for Linens ‘N Things I get over five million hits whereas when I search for Linens-n-Things I get 500 thousand.

On a more personal level, just my opinion, the use of an apostrophe as in Linens ‘n Things leaves me with a sense in the back of my mind that the wording is hastily thrown together. Linens-n-Things conveys completeness like A-Z, this through that.

There is also a benefit description strategy in play with Land Rover. It says this is a product to roam over the land – road or no. It is an association for travelers. The Land Rover models have also all been Royal Navy warships: HMS Defender, HMS Freelander, HMS Discovery, and HMS Rover/HMS Ranger (Range Rover.) The names may also conjure associations with the successful history of the British Navy. They are all also “indubitably” British. To me these venerable names reinforce the original brand motif , ruggedness. This is an integral theme in the advertising of the vehicles as well. On Yahoo I typed in “Land Rover” rugged, and 636,000 return pages had that combination. (see Land Rover UK)

However, the U.S. models have a different naming convention – LR2, LR3, LRX using the initials of Land Rover. The warship names do not convey upscale to me, rugged yes, upscale no. Perhaps there is a move at Land Rover USA away from the rugged off-roader that proved itself in Africa to a more upscale and profitable SUV that would sell well where people know little of British history. (see Land Rover USA)

There is a multi-tier brand here, the corporate brand name is Land Rover, and a product brand name is Defender or LR2. Duncan (2005, p 82) says that as companies grow and add product lines, they extend their brands to these new products. Here the Land Rover corporate and product brand names convey the overall theme – traveling where you want to go. The British model brand names add to the theme with ruggedness and the success of the British navy. The models are named after ships that roam the seven seas, consistency with the corporate and product brand - rover, traveling where you want to go. The U.S. brand names may be adding to ruggedness the association of upscale.


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

Tess (2008). Trademark Electronic Search System. U.S. Patent and Trademark Office. Retrieved on May 23, 2008 from
http://tess2.uspto.gov/bin/gate.exe?f=searchss&state=7lm57p.1.1

Wikipedia Name (2008). Wikipedia Naming Conventions. Wikipedia The Free Encyclopedia. Retrieved on May 23, 2008 from http://en.wikipedia.org/wiki/Wikipedia:NAME

Yahoo. Search Retrieved on January 23, 2008 from http://search.yahoo.com/search;_ylt=A0geu94is5dH0mkAQk9XNyoA?p=%22Land+Rover%22+rugged&y=Search&fr=yfp-t-501&ei=UTF-8

Applying the Elaboration Likelihood Model to Clif Bar

Duncan also discusses the Elaboration Likelihood Model (2005, p 144-5), and notes there are two possible routes to elaboration: central and peripheral. Clif Bar is a low involvement product choice, and so the peripheral elaboration route would be the mechanism explaining communication processing. He also cautions that most decision making involves both paths, but in the case of Clif Bar I would think it is primarily peripheral.

The peripheral route is more often passive messages that are responses to lifestyles. I think organic and environmental fits into a person’s lifestyle and so appeals to them for a low involvement product would be better as image messages with association cues, associating Clif Bar with health, social causes, and the environment.

References
Baskin, Merry (April 2001). What is Account Planning? Retrieved on September 10, 2008 from http://freespace.virgin.net/andrew.steventon/Content/Downloads/WhatIsAcPlanning2001.htm.

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

Data Warehouse Support in Crisis Management

Duncan (2005, pp 562-3) recommends a crisis management plan be in place before a critical event strikes so the company is not improvising while the media and public are expecting a well-reasoned response. He says the plan should address the following elements:

• Internal notification list
• Roles and responsibilities
• Who is assigned to address communications with each separate public
• Who is authorized to talk to the press
• General guidelines on what to say
• Examples of discussion that has legal implications
• General actions for different scenarios

Adelman (2003, p 16) describes the very beneficial use of data warehouses and business intelligence during crisis or issue management. Data warehouses can help upper management answer questions related to the crisis or issue. Too many times they are put on the spot, and end up doing a song-and-dance in front of the press instead of dealing with facts. Without a data warehouse it is more difficult to find information on the background and/or to justify a course of action.

It’s important to investors, to employees, to customers, and the other relevant publics that management acts in an informed manner. Too often they appear unaware of the situation. Here IT can help.

A prime example of successfully handling a crisis is the well-known Diet Pepsi case (see crisispublicrelations blog for background). Diet Pepsi ran into trouble when consumers began “finding” foreign objects in cans of Diet Pepsi. A variety of different objects were found including a syringe, a bullet, and even a crack cocaine vial. The corporation knew that there was no possible way for these objects to be inserted during the bottling process. As a result, Diet Pepsi used a defensive strategy claiming its innocence. They communicated openly with the public, attacked the accusers, and allowed their bottling process to be shown on the news. Temporary damage had been done to Diet Pepsi, but they quickly rebounded from the situation.

The high-speed nature of modern bottling plants makes such strange events almost impossible. Mansky (2003, pp1-3) explains Pepsi’s public relations strategy. Pepsi used a defensive strategy, touting its innocence. They attacked the questionable accusers, communicated openly and truthfully with the public, worked with the FDA (who later became an intervening public for them) and published a video news release of their bottling plants.

Many believe the “victims” tried hoodwinking their way to prosperity.

According to Mansky,

“Because Pepsi took immediate action to create a crisis communications plan that involved several departments and focused on four key principles, it was able to resolve the crisis while defending its position and upholding its reputation. Pepsi’s plan included specific goals and objectives, targeted four precise publics and was the result of valuable research, all which helped it to be successful. The support of the FDA as an intervening public was also crucial for Pepsi’s success in this case.”

References

Adelman, Sid (2003). Measuring Data Warehouse Return on Investment. Retrieved on April 16, 2008 from http://www.teradata.com/t/pdf.aspx?a=83673&b=86833

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

Mansky, Amy (2003). There’s a Syringe in my Pepsi Can. Retrieved on April 17, 2008 from http://www.unc.edu/~mansky/J131casebrief2.pdf

Taxonomic Particularizing

What's in a name? Twitchell ( 1996, pp 205-207 ), Professor Emeritus of English and author of Adcult USA, reviewed the rising use (from no use before the 1930s to significant use today) of brand names in cultural art such as plays, novels, songs, and concluded "[the brand name is not] the illusion of reality; it is reality. The names, not the objects are what we know." The practice of replacing generic phrases such as "high powered motor car" with brand names like "Aston Martin" is known as taxonomic particularizing. Not only do marketeers use cultural art to create a brand image around a brand name, but cultural artists take advantage of the brand communication surrounding the brand name in the art they create.

Taxonomic particularizing is an interest area for linguistic analysis. Hubbard (1995, paragraph 8 ) makes the argument that the practice "challenges traditional aesthetic theories by turning the everyday and banal into art." Martyn Tipping (see Hein, 2007) said marketeers chose everyday words so the brand name explains itself. However, brand names and of course brand images backing them up have become postmodern art. Hubbard (see Postmodern)goes on to say: "Particularizing gives postmodernism a pronounced interest in linguistics insofar as it studies acts of communication and the play of language--the linguistic turn."

The brand names in Hein's ( 2007, p. 1 ) article such as Spykes, Belle Air, Tailwind, all exude the play of language. In my mind these "linguistic turns" that creative strategists conjure are the centerpiece for what Schultz (2001, p 1-2) believes is the purpose of marketing:"[to] create value for customers and prospects; for companies, channels and distributors; for shareholders; and for economies, societies and, yes, even governments and trading partners."

I believe this creation of value comes from the management of meaning in the communication process surrounding all IMC activities. Mission, corporate credibility, product, packaging, merchandizing, audience, theme, message, media, choice of promotional function, and the collection from and use of data in direct marketing must all have consistency and referential integrity. Further, these communications are placed in a social context so stakeholder feedback must be sought out to verify how the messages are decoded, to use the communication model in Duncan (2005, pp 106-7 ).


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

Hein. Kenneth (June 25, 2007). What's In a Name? Study Toasts Top New Brands. BrandWeek. Retrieved on September 5, 2008 from http://www.brandweek.com/bw/news/packaged/article_display.jsp?vnu_content_id=1003602879

Hubbard, Taylor E. (9/22/1995). Bibliographic instruction and postmodern pedagogy. The Free Library. Retrieved on September 5, 2008 from http://www.thefreelibrary.com/Bibliographic+instruction+and+postmodern+pedagogy-a017726356

Schultz, Don (October 22, 2001). It's now time to change marketing's name: Integrated Marketing. Marketing News.

Twithcell, James B. (1996). Adcult USA. New York: Columbia University Press.

The Unlearning Organization

Creativity is a way of thinking that can be learned. Sherwood (2000, p 31-40) describes an organizational climate that will encourage and reward the necessary risk-taking behavior required for creativity. He calls it an Unlearning Organization and relates the key characteristics:

1. They make time for thinking, exploration, and innovation.
2. They are always searching for better ways of doing things.
3. Rules are made to be broken.
4. "Negligence" (the deliberate departure from an agreed policy) is considered failure but "learning (what happens when an outcome differs from expectations) is not and is not penalized.
5. They listen, internally and externally. Everyone uses their ears more than their mouths.
6. They share – information, resources and Risk. Nothing is mine, everything is ours.
7. They say "yes" more than they say "no"
8. They only evaluate ideas when there is a full and well-balanced view.
9. They do not shoot from the hip, or jerk from the knee.
10. They recognize that innovation is all about managing risk.
11. They don't expect every innovation to succeed, nor do they place any foolhardy bets.
12. Their performance measures support innovation, rather than discourage it, such ass measuring inputs (like hours spent on idea generation) rather than outputs (number of ideas put into the suggestion box).
13. Managing the line and managing projects exist easily side-by-side; being assigned to an innovation project is symbol of regard; and risk-taking is rewarded.
14. They don't force closure on innovative, open-ended and exploratory tasks.

Unpleasant surprises are the penalty and cost of creative ideas that do not work as expected or intended. Salerno (2003, p 1) says that “When possible, getting buy-in from employees on the front line is a great approach. When [gurus] keep their creative under lock and key they risk leaving employees feeling resentful, confused or disassociated from their [work].”

References

Salerno, Robert (Septemer 8, 2003). 'We Try Harder:' An Ad Creates a Brand. BrandWeek. Retrieved on September 3, 2008 from EBSCOHOST.

Sherwood, Dennis (2000). The Unlearning Organization. Business Strategy Review, 2000, Volume 11 Issue 3.

Say and Southwell

In their article Driving Sales through Mobile Marketing, authors, Say and Southwell (2006, p262) imply that mobile direct marketing, especially text messaging can be ruinous because “the mobile phone is almost certainly the most personal electronic consumer device.” In support of this warning, another researcher Alan Chappell (2006, p1) cites a study that found 80% of cell phone users would consider ‘mobile spam’ a reason for switching carriers. Direct Marketers who fall short with mobile etiquette risk bad public relations, hardship in the mobile media, and Say and Southwell believe that ultimately it can degrade a brand (p 262).

On the other hand, de Lussanet (2003, p1) in a Forrester Study, reports solid growth in SMS marketing in Europe. Even in the U.S., Unwired Appeal in the SMS marketing section of their Web site reports on numerous, wide-ranging and successful SMS campaigns. The Say and Southwell article is a study and report about their experiences as pioneers in text message direct marketing for financial services in the United Kingdom. There is real potential in direct marketing text messaging and the article dispels the myth that customers always resent text-based marketing to their mobile form factors. Three case studies of work by their organization demonstrate the application of key success factors in the real business world.

Ultimately, with their approach they avoided the pitfalls inherent with text-messaging marketing and they proved quite successful using the new medium. For a complete review, see Driving Sales at Redmond Review

Reference
Chappell, A (March 19, 2006). Mobile Marketing & Opt-In (Chapell & Associates). Retrieved on August 28, 2008 at http://mmaglobal.com/modules/article/view.article.php/352

Say, P. and J. Southwell (Jan-Mar 2006). Beep, beep, beep, beep, that’ll be the bank then – Driving sales through mobile marketing. Journal of Direct, Data and Digital Marketing Practice.