Branding (and Marketing) Strategies for 2009

For most marketers and branders, 2008 was the year that sucked. No matter how creative you tried to be, no matter how innovative you thought your campaigns were, your sales plummeted.

Blame it on malaise, blame it on the fastest falling economy in a century. That was before your grandfather was born. Get over it. 2009 isn't gong to be any easier, and you'll need to be sharper and more focused, and more flexible than you would have ever thought possible.

And in all due respect to those that say "Oh Gee, You Must have an MBA to run our marketing and advertising!!"... I say, Good luck. What's going on in today's economy isn't something that professors at graduate school have any experience in....whether marketing, branding, advertising, finance, or human talent management.

OK..here's my thought on branding, advertising (and marketing) strategies for '09:

Disregard what I might have said earlier about negative advertising, and otherwise dissing or exploiting your competition. We're heading into a take-the-gloves off battle for the purse strings.. There's only one survivor. And, as mentioned in the week before last in the WSJ, the following strategies are fair game:

Brand Extensions;
i. Compatible Products. Come up with something that complements and existing branded product. Think iPod.

ii. Ornamental Use of Trademarks. Go on to Google to find out what you can do without infringing, but otherwise exploiting a recognized logo.

iii. Comparative Advertising. My favorite (when you can actually come up with strong arguments i.e. why your product is better (because its less expensive, it works better, it tastes better, it lasts longer, or smarter people prefer it...pick one, or pick 'em all)

Hint-be careful. I did a comparative ad pitting Soapopular's alcohol-free hand sanitizer against the incumbent, sticky, smelly and irritating Purell brand. The ad headline said "Purell=Alcohol Poisoning".. and the follow up text simply said : Soapopular. So Popular because its Alcohol-Free."

[My justification was a 2007 report issued by the US Association of Poison Control Centers that found close to 12,000 cases of alcohol poisoning in kids 6 and under directly attributed to alcohol based hand sanitizers. Pretty straight forward.

Johnson & Johnson had their lawyer send my client a harsh 'cease and desist" letter. Instead of defending the ad, and telling J&J to take a walk, my client thought it better not to pinch a sleeping elephant, although we all knew that the publicity alone of a legal battle would have been worth millions in free advertising. ]

While there is no 'fact' i.e. who is right and who is wrong on this particular topic, and 'fair-use doctrines can be argued until hell freezes over, but the fact is, that wimps aren't going to be winning in '09.

Parody Advertising: Using another brand to promote a non-competing product. Case in point: Coors beer commercial spoofing the Energizer Bunny. Coors didn't pay a dime to use the Bunny. As long as you don't tarnish or denegrate the brand that you are parodying, and stay creative, you can get lots of frequent flier mileage .

Outlandish: The photo image above right was inserted into an online ad strategy this year and in less than 6 hours, it scored 10,000 unique hits--that means 10,000 people clicked it on and went to the company's website. I 'm not at liberty to disclose how much was generated in sales for the product.

Today's WSJ included a story about a Russian Ph.d who, in 1976, predicted the fall of communism, and he's apparently now getting more than a little traction predicting the end of capitalism in the US. (click on the aforementioned link).. Actually, he's predicting the end of the US as we know it. (I could have told you that we'd have a few rough years ahead, but this guy has something much more profound in mind..)

This very learned fellow is suggesting that before the end of 2010, the US will have endured a civil war, resulting in three separate unions within our border. If that ends up proving true, than following my push-the-envelope marketing, branding and advertising advice in 2009 will have proven to be that much smarter of an idea. And, if this Russian Dr. Strangelove is wrong about his dire predictions, you'll have merely set yourself apart and established the foundation for flexible thinking.

Forget about the 'thinking out of the box". Tell yourself there is no box.

More to follow as the new year rolls in.

Sex Sells (but a Commitment Can Help)

Haven't we all wondered whether sexy ads (whether Brooke Shields in those tight jeans, the Victoria Secret's TV ads, or even the six-pack Joe with a six pack biceps ) actually enhance top line sales?

Sure, there are little quants running around the advertising industry that will show reams of stats that either support or refute the impact of certain types of ads. For purposes of of my own opinion on the topic, I'll stay in Switzerland...but for lack of anything more newsworthy on the topic of advertising, I'll defer to today's G-rated NYT article courtesy of Alex Mindlin

"..Sex in advertising is generally thought to be more useful in selling to men than to women. But a study soon to be published in The Journal of Consumer Research finds that this effect is reversed when emotional intimacy justifies the sex.

In one experiment, the researchers found that women preferred a sexually explicit watch advertisement when the watch had a bow around it and was described as “a gift from a man to the special woman in his life.” But such positioning hurt the ad’s appeal to men. Drawing on previous research in sexual psychology, the authors note that women are more likely to “need the justification of relationship commitment for sexual behavior” and that men “typically felt quite uneasy about having to part with substantial pecuniary resources in a dating context.”

In another experiment, researchers had women proofread blocks of text (supposedly as part of a separate study), then rate a sexually explicit ad. Women who read about a loving, committed couple rated the ad more highly than did women who read about a couple in which the man was disloyal and philandering..."

My Last Word on Hedge Fund Marketing: Case Study Fairfield Greenwich Group

Some of you know that I spent more than 15 minutes on Wall Street--actually more than 15 years.

Starting as a trader, I burnt out (truth be told, more like 'flammed out') and re-purposed myself as an operating executive, than as a risk manager, and for the past few years, I've leveraged all of those experiences and now I'm a sought after marketing guru that's been enlisted to position companies and help them craft their value proposition statements.

Having worn the hat of 'marketing exec' for several different regulated, financial firms, including the world's largest bank, I'm particularly sensitive (as were all of my partners/employers) insofar as what you say you do, and what you put in writing that you do.

And when you put it on the internet, you might as well cast it in stone for all eternity. Just like emails, just like press releases, and most other digital foot and finger prints that can come back to haunt.

Case study: a little known firm in Greenwich CT called Fairfield Greenwich Group, their website suggests there about 10-12 partners, but they seem to have lots of money under management; 15 billion according to their marketing poop. Their entities are comprised of a registered broker/dealer-which means they're regulated by amongst others something called the "SEC".

As in "Yes, I See. ..that you've violated all kinds of regs, but don't worry, we'll let it pass...do you think you have a job opening for me?")

What's my point?? Fairfield Greenwich's website actually has extremely comprehensive text displaying the very detailed, almost microscopic auditing they purportedly do on a weekly basis of the fund managers they invest in. Including auditing brokerage statements and analyzing the transactions displayed in those statements.

Here's the link to that page. Click it now before they remove it from their website

(There's another link below that you'll want to go to as well; authored by friend and well-known author and film maker Michael Covel. )

But-
Rule 1. Never.. and I mean absolutely NEVER put that kind of stuff on a website. Many website experts even suggest "DO NOT PUT EXECUTIVE PROFILES ON WEBSITE". I'm not sure that I agree with the latter, but in this case, the excruciatingly detailed 'due diligence representations made by this regulated company are almost certain to get them tarred, feathered and embroiled in litigation for the next ten years.

Fairfield Greenwich probably won't survive the litigation, at least their corporate shells won't. The principals in this case will, regrettably for many, likely enjoy the fruits of the fees they've been paid ($500 million!) for years to come while the lawyers dicker about, and while the victims watch any remaining assets be dickered over by the "many experts" that will be retained to sift through the ashes.


Oh--for those that think its unwise or unprofessional for a marketing consultant that has clients from within the financial industry to lambast a firm from within the industry on a blog...I call 'em the way I see 'em.

Here's the link to Michael Covel's comments. Similar observations have been made, but Michael's presentation is perfectly black and white. CLICK HERE TO READ

My last word on Madoff. Actually, it appears to be Madoff's last words, or that of a creative blogger that has a unique perspective on the Madoff fraud. Click here.

Financial Firm Marketing Strategies: Madoff

As of this posting, there have been more than 5000 news stories and blog comments, but since I'm connected to one of the several hundred individual investors that were victimized, the tell-tale signs of something awry were as plain as the nose on anyone's face.

Since 2001, the marketing strategies used by Madoff were lampooned by at least two different forensic accounting firms enlisted by the very very few that were responsible enough to hire a third-party expert before proceeding with investing. Based on those reports, those particular prospective investors walked away. Two of them ran away. And those reports were ultimately circulated throughout the hedge fund industry.

1. the only 5 people with access to the firm's financial records were immediate family members, all with the name Madoff
2. the auditing firm that published the firm's statements was a 2-man office in the suburbs of NY.
3. If one asked too many questions, they were not allowed to invest.
4. Professional hedge funds, that employ mathematicians with knowledge of the purported strategies used, repeatedly stated the those strategies simply couldn't produce the types of returns promoted by Madoff.

For a successful fraud or Ponzi scheme to work, you only need one element: Greedy Investors. Those that put their entire net worth with a firm that claimed to engage in stock and option trading during a period of historic market volatility, but somehow managed to produce consistent 10 percent returns and pay out the same amounts on a monthly basis, despite a 40% decline in the stock market were delusional and greedy.
Of course, shame on the SEC for violating their own mandates and failing to examine the firms records for the past two years.

Yes, shame on the "advisors" that put their clients money into this firm and had failed to hire a third party auditing firm in advance; and shame on the third party auditors that failed to come to the same conclusion as the two auditors that distributed their "red flag" findings to the industry at large several years ago. Those that breached their fiduciary responsbilities should be held accountable. Too bad that their E&O coverage was written by AIG.

The hedge fund industry at large has prided itself on marketing strategies that otherwise incorporate phrases such as secrecy, special, select, proprietary, cannot be disclosed.

Amazingly, those marketing strategies will continue to work, as long as greed remains a primary motivator.

Layoffs and the Impact on Marketing and Branding--New Study Says It All

For those marketing, sales, investor relations, or brand management executives, if this study doesn't resonate with you, nothing will.

Leadership IQ Study: Don’t Expect Layoff Survivors To Be Grateful
WASHINGTON, D.C. – December 10, 2008 – If your company is undertaking a layoff, be forewarned: Your surviving employees are not going to work harder out of gratitude. According to a new study by Leadership IQ, 74% of employees who kept their job amidst a corporate layoff say their own productivity has declined since the layoff. And 69% say the quality of their company’s product or service has declined since the layoffs.

Leadership IQ, a leadership research and training company, compiled these results after surveying 4,172 workers who remain employed following a corporate layoff. These subjects were drawn from 318 companies that have undertaken layoffs in the past 6 months. Employees were asked questions about productivity, product quality, workforce issues and management effectiveness.
Other key study findings about the state of the workplace following the layoffs include:
• 87% of surviving workers say they are less likely to recommend their organization as a good place to work
• 64% of surviving workers say the productivity of their colleagues has also declined.
• 81% of surviving workers say the service that customers receive has declined.
• 77% of surviving workers say they see more errors and mistakes being made.
• 61% of surviving workers say they believe their company’s future prospects are worse.

According to the group that did the survey, there are actually ways to address these issues so that your brand doesn't implode altogether while you slice away your most important assets. Don't ask us, call them; they're the experts.

Or tune in to Fox Business "Money For Breakfast" at 8 am Thursday Dec 11 and you can watch and listen live.

Innovative Thinking : Premiums That Sell.- Introducing the Laptop Cabana

We may be tipping their hands, but its already patent pending--so hats off to MGS Brands of Fairfield, CT for creating a very compelling way for corporate brands to extend their message.

We all know that premium merchandise is a low cost vehicle for marketing, branding and advertising...and what better time than to introduce a particularly inexpensive, and uniquely utilitarian device?

They call it the Laptop Cabana. Blocks the piercing sun and the peering eyes. (The fabric on the inside is actually a completely sun-blocking vinyl)

Can you see your corporate logo on the outside, a family of design styles?
Less than three steps required to attach and dis-assemble, washable, portable and compatible. Totes and umbrellas and ball caps are so yesterday. This cute little laptop awning will be attracting eyeballs everywhere that you see someone using a laptop computer: campus libraries, airports, airplanes, trains, every Starbucks in the world. Need I count the ways and the places?

Those corporate brand experts that are interested should contact the people at MGS directly (Click on the headline link to get to their website).

Run on the Bank's Brand: What Not To Do.

Ouch. At the obvious risk of turning away potential clients that are put off by vulgarism, we can’t hold punches. The marketing and communication strategies that one particular bank is implementing will go down in history as a text book example of a continuous, across-the board failure to be PROACTIVE and anticipatory about the impact of critical decisions.

1. Like every other bank, this one's rocket scientists, and MBA wearing, algorothimic geniuses somehow failed to anticipate the potential change in market environments, explaining their overweighted holdings in funky fixed income assets. And, before I continue, let me apologize to the rocket scientists at that bank who had presciently raised the unheeded warning flags directed to the former and current executive management. And, pardon me for saying so to the Chairman of this behemoth bank, but being in the same camp as Alan Greenspan insofar as pointing to the fuzzy nature of predictive science, isn’t a posture that anybody wants to embrace.

Here’s the point. Two weeks ago, the bank's marketing communications staff initiated a punch out program laying the ground work for across the board interest rates hikes in consumer and business credit cards. The ‘message’ was that the bank would be increasing borrowing on credit cards by 2%-3%.

Lo and and behold, I got my notification today. And what an eye-opener!

My interest rate was upped from 7% to 14.99% on two different cards, a whopping 100% increase in my interest rate, with an aggregate balance of $30,000, and a credit limit of $50,000..which was actually increased only two weeks ago, according to a special thank you email from the bank telling me what a great customer I am.

I’ve been a card holder for 20 years, and I have an 800+ credit score. I’ve never once missed a payment. Yet, I’m being asked to shore up the company's balance sheet, notwithstanding the fact that they’ve got access to hundreds of $billions of Fed money at a rate of 2%.

Raising my credit limit and two weeks later, doubling my interest rate smacks of predatory lending, but at least I'm smart enough to know that the borrowing ball is the wrong dance to be attending. And, we all know that as the litigation against banks and brokerages pick up, the line will be longer than the unemployment lines at GM.

OK. Shit happens. More important: anyone and everyone that takes on debt should understand there’s no free lunch. And so what if the country's top bank is getting a couple of hundred billion of bailout funding..(did the news report say $350 Billion??)from Uncle Sam and Uncle Hank (Paulson), and apparently, without any strings attached..i.e. without making sure that the bank actually makes money available to consumers and business borrowers to keep the wheels of capitalism turning.

Here’s the point i.e brand and marketing messages when a company is in crisis mode; so its a point that should be appreciated by a large majority of businesses, of all sizes.

1. Just like the gurus at the bank either failed to understand, or purposefully chose to ignore risk projections, the same morons are failing to understand that by increasing the cost of loan terms to their best customers, without having any programs in place to appease or address the tens of thousands of exceptions; those that have always paid on time and in full, they are destroying their brand faster than a speeding bullet.

I’m going to be one of those that says “not too big to fail”, and I’m going to tell my credit card issuing bank to take their credit balance and eat it. After all, my tax dollars, and most likely, my future social security entitlements are however indirectly, being used to bail this bank out today.

My guess is that no less than 50,000 of their several million customers will be doing the same over the next six months. That’s $1.25 billion in charge offs, another several billion in write downs i.e. projected interest income, and billions more lost in fees from those that stopped using the bank's brand credit card.

Now lets talk about a topic I raised several days ago; the impact on the brand when a company executes a layoff program as if they were an Appalachian abortionist. Again, I apologize if the phraseology is offensive.

The bank has announced unprecedented, across the board layoffs. Last week, as a professional courtesy, I emailed the six top HR managers at the bank and informed them of a great, and free webinar hosted by LeadershipIQ Guru Mark Murphy on the topic of how to manage layoffs with compassion, and without crushing the enterprise.

Those six individuals rec'd the email, but they were too busy firing people to pay attention to learn how to do it properly, and how to preserve whatever might be left, or so it seems.

How do I know this? In my communication with the 'customer service' staff and trying to understand how my rates could have literally doubled, the nice young girl on the phone broke down in tears and said she was "overwhelmed with hundreds of calls from people all asking why, when interest rates are going down, and the bank has been infused with how many tens of billions, could they be putting their best borrowers out in the rain?."

The young lady said "well the prime rate is going from six percent to nine percent this week, so we have to increase our rates.." The prime rate is actually at around 4%, so I could tell she wasn't particularly well-equipped to address my issue. So I switched the topic of conversation and told her that she might want to find another job before the house crumbles completely. She said she has "absolutely no idea whether she too will be losing her job at any moment." She told me that each of her coworkers had the same fear.

Not a great message to be sending to a customer, especially one with a blog that connects to tens of dozens of investment managers. It speaks volumes as to how poorly the bank's management is managing their staff and (not) communicating important messages. The brand means nothing without having the talent to support the value proposition. Mismanage the talent, and you mismanage the brand.

The remaining shareholders of this particular bank, and the remaining employees that have a managerial role should only hope that management realizes that they have no idea on how to manage a large infrastructure in a time of crisis, and that they need to bring in human talent experts; those that specialize in corporate crisis. If they don't understand these fundamental concepts, the entire management team should be fired, if not taken out and tarred and feathered.

The bank is apparently ignoring two of the most fundamental observations i.e. talent management, recently highlighted by LeadershipIQ's Mark Murphy in a very lively and live webinar that was attended by 1000 HR execs..I don't know if this partiuclar company's staff were too busy to attend, but they were invited, they just didn't show up. Perhaps they don't think they need any insight from an outside expert on this topic, or any other topic.

1. Don't Fire Talented Workers Just to Replace Them with Lower-Paid people. In fact, Citi IS firing high paid, top perfomers, and replacing them with untrained, low paid workers..except for those in the executive office of course. Those guys and gals are staying around to soak up their bonus allotments, which are 'contractually due to them', and now being subsidized courtesy of the billions they are receiving from me and you. Massive mistake.

2. Communicate the company's employment position and strategy crisply and clearly to all. Provide specific training to the managers delivering this message BEFORE the message is delivered. Have a clear message for those that remain.

If only based on the conversation I had on the phone with the customer service rep, is displaying a Total Failure to communicate to the remaining work force and give them a clear understanding of what their job security is.

Sure, nobody can really know for sure what tomorrow might bring, as the bank could simply close its doors tomorrow if the check from Uncle Sam bounces. But, the point is, when a customer service employee tells a customer that she has no idea about whether she will have a job tomorrow, that's not a good thing. The fact that she could not address my particular issue is completely beside the point.

3. Don't do stage-based layoff announcements. Do a full cleansing in one fell swoop. Stage-based layoffs, i.e. announcing a layoff in November, and holding back the January announcement about further layoffs is a recipe for disaster. So far this particular bank has announced three series of layoffs in the past eight months. The company's CEO says "our strategy hasn't changed."

OK, the business climate is changing on a day to day basis, so a company's ability to project out six months out, and consider the changes that might need to be made to workforce might be tough. Somehow, the bank's legion of rocket scientists, the ones that forecast five and ten years out on a variety of investment strategies, are unable to forecast how their own business will fare over the next six months. Will there be a 20%, 30%, 40% or 50% drop in earnings over the next 6 months to a year?. Apparently nobody has a clue.

So far, every single step that the executive leadership has taken suggests they are as out of touch with their own business as George W. was with the realities of foreign policy, and, as was his administration with respect to financial industry regulatory policy. And, so that we cross the aisle, shame on Barney Frank, and every other ill-educated Democrat that championed a mortgage for every voter, regardless of whether they could afford it.

As it turns out, this bank is far from learning its lesson on how to preserve brand integrity in times of crisis. Personally, I don’t care. I’m not a share holder, and I don’t necessarily embrace the same politics or culture as one of its largest shareholders, a Middle Eastern sheikh (actually a prince), even if he is widely acknowledged to be a smart guy, and even a very personable guy.

What’s a brand like this to do?? Here are few simple ideas, although they might be too simple for the complex minds at a global bank.

1. As quickly and easily as you’ve made rash decisions over the past months, leverage your internal resources and introduce a plan that helps your customers manage their outstanding debt. Don’t hit them over the head with a brick, especially after Bush and Co just approved a $25 billion+ infusion. You are almost drowning i new cash. How with a straight face (i.e. brand integrity) can you turn back your best customers?

2.Take a deep breadth. Yes, protect your outstanding receivables, but provide customers with a proactive step-by-step program that can help them FOR FREE, lower their outstanding debts. Ween them off debt, just like you weened them on to it. Its all about perception management.

Sounds stupid? Actually its brilliant. And this exact strategy has been used successfully in prior recessions by local banks in different parts of the country.

Just last week, I heard from a banker in Chicago soliciting our firm to help ‘message’ the same type of consumer credit counseling program that he successfully implemented back in the 1980’s, during an economic tailspin that turned the Midwest upside down. When he first created the program for his bank, the management was a bit leery about providing free debt counseling, and keeping the bank open at night and on weekends so that customers could come in for private counseling sessions. The program was a massive success. The number of loan delinquencies dropped by double digits, savings deposits increased, and new customers came into the bank.

This tailspin is a tsunami, and the sooner that the banks ‘get it’, and take PROACTIVE steps that not only protect their balance sheet, but their BRAND, and their good will, the greater the chances are that those financial institutions will survive

Online Advertising: Black Box Behavioral Ad Designs Lead to Green-filled Cash Registers?

Advertising is all about capturing eyeballs, and according to an interesting piece in the business section of today's NY Times, at least two advertising agencies (Adisn and Tumri) are working to solve the complexities of behavioral marketing and the impact on ad design--computer generated ad elements that target specific websites based on the user demographics..

Different colors, different fonts, different key words within the ad text, all based on how specific types of consumers have responded to different types of ad elements.

Smart stuff!