Veteran Marketer Promotes a New Kind of Selling†

Outgoing P&G Adman Sets Up New Shop, Hoping to Persuade Clients They Need to Show How They Can Improve People's Lives

Wall Street Journal, October 31, 2008 — Jim Stengel, the outgoing global marketing chief at Procter & Gamble, is moving from a big advertiser to a small start-up, hoping to remedy some of what he thinks is wrong with the industry.

Starting Monday, the 25-year P&G veteran is opening Jim Stengel LLC, which will try to persuade companies to buy into a newfangled way of selling. It's called "purpose-based marketing," which Mr. Stengel says is about defining what a company does — beyond making money — and how it can make its customers' lives better.

Dell Bets Splashy Design Will Sell Its New Laptops

Dell Design Chief Ed Boyd is transforming those once-stodgy PCs with art and color. Can made-to-order laptops revitalize the computer maker?

BusinessWeek, October 30, 2008 — Ed Boyd, one of Dell's most unusual hires in recent years, is an industrial designer who used to dream up new sunglasses and shoes for Nike (NKE). Now the 43-year-old is trying to make design an integral part of Dell, the personal computer maker long known for cranking out boring gray boxes. "

Flush with Cash, Drugmakers Go on the Prowl

It's a time of huge opportunity and risk for drugmakers. Some with big cash hoards will start snatching smaller players, while others will try to bulk up fast to avoid becoming prey

BusinessWeek, October 30, 2008 — Andrew Witty, the new chief executive of giant GlaxoSmithKline (GSK), surveys the wreckage of the global financial meltdown and sees an upside. With pharmaceutical stocks at record lows, it's a good time to acquire biotech companies and other assets that could drive Glaxo's growth for years. Its midsize rival Wyeth (WYE) is also on the prowl—but there's a difference. Faced with a shrinking market valuation, new CEO Bernard Poussot may have to bulk up to ward off larger predators.

Witty and Poussot are two of seven new faces who have taken over at major pharmaceutical companies since 2006. It's a massive changing of the guard, and it comes at a time of both huge risks and irresistible opportunities.

Hanging Out at a Mall for the Holidays

New York Times, October 30, 2008 — THOUGH many retailers are closing and cutting back, Teen Vogue is taking its franchise to the mall.

The magazine is opening a store, called the Teen Vogue Haute Spot, in the Mall at Short Hills in New Jersey. But the magazine does not intend to sell merchandise.

Instead, the store will be a place for girls to relax, try on clothes and drink smoothies — all while marketers woo them.

Original Team Tries to Revive Starbucks

New York Times, October 30, 2008 — Since Howard D. Schultz returned to the helm of Starbucks in January, he has desperately tried to recapture the company’s original magic. Mr. Schultz has hired back one of the authors of Starbucks’s original success: Arthur Rubinfeld, its president of global development. Back at Starbucks since February, Mr. Rubinfeld is now guiding a renovation of its stores and refocusing on the urban markets that gave the company its illustrious start.

'Whassup' Comes Out for Obama†

Creator of Popular Budweiser Campaign Unleashes a Parody on Web to Court Voters

Wall Street Journal, October 29, 2008 — The well-known catchphrase "Whassup" helped sell countless cases of Budweiser. Can it help sell a presidential candidate?

The characters that starred in the hit Budweiser ad campaign, which debuted in 1999, are back on video again, but this time they aren't peddling beer. Instead, the characters are hawking Barack Obama.

'Whassup' Comes Out for Obama†

Creator of Popular Budweiser Campaign Unleashes a Parody on Web to Court Voters

Wall Street Journal, October 29, 2008 — The well-known catchphrase "Whassup" helped sell countless cases of Budweiser. Can it help sell a presidential candidate?

The characters that starred in the hit Budweiser ad campaign, which debuted in 1999, are back on video again, but this time they aren't peddling beer. Instead, the characters are hawking Barack Obama.

The parody is raising eyebrows in ad circles, partly because Budweiser's maker, Anheuser-Busch, can't do much to stop it.

ANA: Most Senior Marketers Don't Grasp Brand Value

Marketing Daily, October 29, 2008 — Now that The Brand Bubble (about which we wrote Oct. 13) has spelled out that most brands--and therefore their companies--are greatly overvalued by the financial markets, we find out that those on the inside do not have a clear idea of what their brands are worth, either.

Can the Chevy Volt Save GM?

Take a closer look at the plug-in electric vehicle GM hopes will kick-start a much-needed turnaround

BusinessWeek, October 29, 2008 — Far away from the complex merger negotiations and dicey political maneuvering (BusinessWeek.com, 10/28/08) that promise to reshape America's largest automaker, General Motors (GM), design director Bob Boniface is coolly contemplating the company's future.

The Volt is probably GM's last, best hope for the future and certainly its most significant upcoming vehicle. A plug-in electric car with an onboard gas-burning engine that can recharge the vehicle's batteries, the Volt has to affirm the company's ability to innovate and, eventually, create a financial foothold from which the battered automaker can begin to turn itself around.

Food Brands Losing Relevance; Consumers Demand Healthier, Lower-Priced Choices

Marketing Charts, October 29, 2008 — Today’s consumers want to have a greater say about food ingredients, safety and quality, and believe food companies should be responsible for keeping people healthy and addressing societal nutrition issues, according to a recent study of consumers in five countries by Ketchum.

The “Food 2020: The Consumer as CEO” study examined the perceptions, expectations and considerations about food among consumers in the the US, UK, Germany, Argentina and China, and sought to provide an outlook on the food industry by the year 2020.

“Food companies often ask consumers about food preparation and convenience, but the areas where consumers want more control are the ones where food companies are least likely to seek consumer input,” said Linda Eatherton,... continue reading

Imax's Digital Pitch: It's Not All About Size†

Wall Street Journal, October 29, 2008 — Uneasy about the size of Imax Corp.'s new digital-theater screens, some of its longtime museum clients wish the company would stick to its "think big" corporate mantra.

Imax's co-chief executive, Richard Gelfond, raised eyebrows at a recent meeting of the Giant Screen Cinema Association when he declared that Imax wasn't just about giant screens, but all the parts that combine to make it "the best immersive experience."

Critics say that Imax, whose giant screens are a leading attraction at many museums and science centers that show vivid nature documentaries, should consider a slightly different branding strategy for its digital-projection system, which the company recently started to roll out.

McDonald's New Packaging Focuses On Contents

Marketing Daily, October 29, 2008 — McDonald's is putting a focus on its food and a more whimsical personality through new packaging that global chief marketing officer Mary Dillon calls "the biggest new packaging initiative in the history of our brand." The new packaging, which features photographs of the food and kitchen utensils as well as big print typography, will begin rolling out in November in the United States, United Kingdom and Ireland.

Microsoft Introduces Windows 7, Ending Vista Brand

New York Times, October 29, 2008 — Microsoft introduced what it said would be a slimmer and more responsive version of its Windows operating system on Tuesday, while unceremoniously dropping the brand name Vista for the new product.

PC makers move closer to a post-Windows world

CNNMoney.com, October 29, 2008 — In January, Hewlett-Packard will introduce a glossy black mini-laptop at retail for a mere $379. When it does, it will become the first major computer maker this decade (besides Apple, of course) to push a non-Windows PC in stores.

Kevin Frost, general manager of consumer notebooks at HP, was quick to point out that HP’s embrace of Linux shouldn’t be interpreted as a slap at Microsoft; he said he expects the “vast majority” of HP’s mini laptop sales to be the Windows version. “But we frankly view the mini category as one where we have the opportunity to put the focus on the HP brand, not the processor and not the operating system.”

Radio Show Author Series: David Aaker

By David Aaker

Prophet, October 29, 2008 — This Marketing News Radio interview with David Aaker focuses on the key themes from David's newest book, "Spanning Silos: The New CMO Imperative." (Marketing News Radio, October 29, 2008)

The Future of Major Ad Spending

KenRadio, October 29, 2008 — World ad spending is expected to grow 4.3% in 2008 and 4.0% in 2009, these numbers are significantly lower than June forecasts, which were 6.6% and 6.0%, respectively, and are the result of the recent and widespread shocks in world financial markets, according to Zenith Optimedia.

Web Site’s Formula for Success: TV Content With Fewer Ads

New York Times, October 29, 2008 — “THUMBS up” and “thumbs down” ratings for commercials. Choose-your-own-advertisement options before shows begin. Interactive games during advertising breaks.

In the last year these online advertising innovations have been popularized by Hulu, the online video Web site that will celebrate its first anniversary on Wednesday. For all that has been written about Hulu’s easy-to-use, aesthetically pleasing interface, the advertising experience is equally important.

In the place of the long commercial pods that TV viewers have become accustomed to, only one ad is shown during each segment break on Hulu. Fewer ads make the ones on the site more memorable, Hulu executives say, allowing the site to charge higher prices for the ad units.

Study: Blogs Influence Purchases More Than Social Sites

ClickZ, October 28, 2008 — Blogs can have more impact on purchase decisions than social networks, a new study finds. Blogs create a conversation and trusted resource that influences purchase decision.

The study, "Harnessing the Power of Blogs," sponsored research by BuzzLogic and conducted by JupiterResearch, a Forrester Research company, looks at the evolving influence from the reader's perspective. "What we wanted to do was look at the reader's side of the coin, look at reader patterns and how people are reading blogs...and drill down into the content impacting other media platforms," said Valerie Combs, VP of corporate communications at BuzzLogic.

Want to Know Where to Launch a New Product?†

Researchers Find U.S. Doesn't Top the List of Countries, and Suggest Marketers Take a 'Waterfall' Approach to Rollouts

Advertising Age, October 28, 2008 — The best place to introduce a new product: Japan. The worst place: China.

Those are among the findings of a new study published in the September/October issue of Marketing Science called "Global Takeoff of New Products: Culture, Wealth or Vanishing Differences," which claims to be the first global analysis of its kind.

Why Westin Changed Its Name Tags

If I worked for the hotel chain, my tag might read: "Carmine Gallo: My passion is golf."

BusinessWeek, October 28, 2008 — Inspiration that keeps employees energized on a daily basis often has more to do with communication than compensation. The question is, how do you do communicate with your staff in a genuine way and encourage them to impress your customers? Westin Hotels & Resorts seems to have a found an effective strategy that you might be able to use in your own business.

As the Lines Blur, Digital Agencies Are Taking Lead†

Today Agency-of-Record Status Can Go to Anyone; Just Ask Tribal or Tequila

Advertising Age, October 27, 2008 — Digital agencies are not only being invited to pitch brands as agencies of record — increasingly, they're winning.

Just last month, Tribal DDB was selected to lead global brand advertising for web security firm McAfee. Said the company's CMO, David Milam, at the time: "McAfee evaluated a number of agencies, and the team at Tribal DDB demonstrated strength in every aspect of their business. Not only did Tribal DDB have a number of great creative directions but, more importantly, they backed them up with strong strategic insights."

Chrysler's Woes Are Partly The Result of Poor Quality†

Auto Makers Showing in Consumer Reports Survey Is Evidence of Miscues

Wall Street Journal, October 27, 2008 — Detroit's Big Three look like they will soon be a Smaller Two. Industry leaders and investors are still absorbing the idea that Chrysler LLC could disappear. A lot of consumers have already moved on.

Chrysler's woes arise from many mistakes, compounded by bad turns of luck. But the company's failure to keep up with rivals on quality is a significant, and underrated, factor in its current crisis.

Harrah's Changes Its Game†

Tough Times for Gambling, Large Debt Force Shifts

Wall Street Journal, October 27, 2008 — Gambling giant Harrah's Entertainment recently cut the hours at some of its casino VIP lounges, and even replaced plates full of hearty sandwiches with bruschetta and hummus. The moves riled Harrah's middle-market customers, who are accustomed to getting the high-roller treatment in exchange for their loyalty.

The changes were a small sign of larger problems at the nation's biggest casino company.

How to Market During a Downturn†

CMO Roundtable: Execs on Maintaining Budgets, Changing Marketing Mixes and the Challenges of 2009

Advertising Age, October 27, 2008 — Just days before the Dow suffered its largest single-day point drop ever Sept. 29, Ad Age Editor Jonah Bloom sat down with three top CMOs to talk about marketing in a recession. On hand were Ranjana Clark, senior exec VP-CMO of Wachovia Corp.; Tom O'Toole, CMO and chief information officer of Global Hyatt Corp.; and Mark Chmiel, exec VP-chief marketing and innovation officer at Denny's Corp.

Innovate Out of the Economic Downturn

crisis is precisely the time for governments to boost spending on innovation, not cut it. Otherwise, nations will find themselves playing catch-up

BusinessWeek, October 27, 2008 — The Austrian economist Josef Schumpeter once declared that economic downturns are "a good cold shower for the economic system." Economic downturns can have positive effects; they force companies to increase their efficiency, cut waste, and strive to do things in smarter ways.

All companies have to cut costs, and deciding what should stay and what should go is the first challenge that faces them. One of the early victims of downsizing is often spending on innovation activities such as R&D, training, or education budgets. Long-term projects are shelved, hiring is frozen, and workers are made redundant. Worse, risk capital evaporates. Unfortunately, this is akin to patients deciding to reduce expenditure by not spending money on medication (as, indeed, has... continue reading

McDonald's Coffee Strategy Is Tough Sell†

Introduction of Premium Drinks Comes at a Weak Economic Time, but Executives Say Rollout Is on Track

Wall Street Journal, October 27, 2008 — After unveiling plans earlier this year to sell espresso drinks at all of its U.S. locations, McDonald's Corp. now faces a fresh set of challenges.

The weak economy has prompted some consumers to brew coffee at home instead of buying it at coffee shops. A sharp pullback by Starbucks Corp., which is shutting hundreds of stores as its sales slow, has analysts questioning whether now is the right time for McDonald's to roll out its premium line of lattes, cappuccinos, smoothies and sweet, ice-blended frappes.

The Broadcast Ad Model Is Broken. Now What?†

Networks Race to Create Their Own Methods for Measuring Audiences

Advertising Age, October 27, 2008 — If today's TV buying is the model for the future, advertisers are in trouble.

Virtually all parties involved — marketers, media buyers and the media themselves — agree that in a video-on-demand world in which consumers control what they watch and when, the current broadcast advertising model is broken, or at the very least inadequate. What they don't yet agree on is the solution, leading to mass confusion as networks scramble to create their own measurements in a race to develop a standard for counting those precious eyeballs. The trouble is, they should be working together, not apart.

Twitter Goes Mainstream†

A lot more people -- and businesses -- are finding new ways to tweet

Wall Street Journal, October 27, 2008 — One of the hottest technologies in Silicon Valley is also one of the simplest.

The online service from Web start-up Twitter Inc. prompts users to do one thing: answer the question, "What are you doing?" in 140 characters or less. People type these brief updates, known as "tweets," into Twitter's site or send them to Twitter as text messages. Friends and colleagues can then check the site to monitor each other's updates.

When the service first appeared a couple of years ago, its appeal seemed largely limited to narcissists who wanted to let everybody know what they were doing in real time. But, like blogs and social-networking sites, Twitter is starting to cross into the mainstream, as a wide range of people find interesting uses for the brief notes.

Viral Video Marketing

KenRadio, October 27, 2008 — The term viral video refers to video clip content that gains widespread popularity through the process of Internet sharing, typically through blogs and other media-sharing websites. Viral video marketing is no longer the new kid on the block. In light of the success of viral videos sponsored by big brand names like Levi's' "Backflip Into Jeans," Gatorade's "Ball Girl,” and Nike's “Kobe Jumps Over Car,” advertisers and agencies are evaluating the value of adding viral video to their online marketing mix. Faced with a tough economic climate, marketers are hurriedly seeking new methods to reach web audiences in the most cost-effective manner. Viral video - which is generally less expensive to produce and market than traditional advertising - is now... continue reading

An Old Buzzword Is Back: Bargains

New York Times, October 24, 2008 — As the year began, consumers started to see a trickle of advertisements that played up brand value rather than attributes like status or prestige. As the economy worsened in the spring and summer, the trickle became a torrent.

Now, as the crisis in finance continues, a veritable tidal wave of ads devoted to saving money is washing over the country.

Marketing textbooks suggest, however, that a focus in the short term on pinching pennies could in the long run have a deleterious effect on the images of brands or products by cheapening them.

Forrester: Social Web Now Mainstream†

Brandweek, October 24, 2008 — U.S. consumers are flocking to use social networks and other participatory venues to the extent that the activity is now mainstream, according to Forrester Research.

The company's polling indicates 2008 has marked significant growth for social media, with a decided majority of users now taking part.

"The novelty of today's social technologies will eventually wear off, and consumer adoption will plateau as all new media eventually do," Forrester analyst Josh Bernoff writes. "But consumers will expect marketers to continue the relationship they've formed over time and still listen to what they have to say."

Marketers Rethink Promotions to Accent Value†

Holiday Inn Offers Flight Vouchers, and TiVo Tees Up Freebies, but Figuring Out What Will Resonate With Consumers Isn't Easy

Wall Street Journal, October 24, 2008 — Marketers are working overtime to overhaul their promotions, trying to snag customers who are increasingly in penny-pinching mode.

Holiday Inn recently considered the idea of offering guests a $50 credit they could use to play videogames. Instead, the hotel chain decided to attract travelers with print and online ads that offer a $99 flight voucher.

The ads, part of the "Stay Here, Fly There" campaign, began running last month.

Nestlé Sales Buoyed by Price Increases†

Wall Street Journal, October 24, 2008 — The world's largest food company, Nestlé SA, raised its revenue outlook for the year as its strategy of increasing product prices continues to pay off.

By adding features and promoting its brands, Nestlé has been able to persuade consumers to pay more for its products. Following that strategy, it is introducing a new line of baby food, NaturNes, that boasts that it cooks the ingredients separately, an appeal to parents worried about sterilization.

"People go for value. It is not always a question of price," Chief Executive Paul Bulcke said in an interview.

Google, MediaVest Tap Biometrics for InVideo Ads Play

NeuroFocus specializes in measuring individuals’ brain response—by literally placing sensors on their heads—as well as other factors like pupil dilation and skin response

Mediaweek, October 23, 2008 — Google is so confident that its InVideo Ads product—those semi-transparent/animated overlay ads it launched on YouTube last year—are game changers that the company is turning to brain wave researchers to prove their effectiveness.

The search giant--in conjunction with MediaVest--has partnered with NeuroFocus, a researcher that specializes in biometrics, to gauge both how users respond to InVideo ads and how well those ads complement traditional banner ads. NeuroFocus specializes in measuring individuals’ brain response—by literally placing sensors on their heads—as well as other factors like pupil dilation and skin response.

LinkedIn Debuts B2B Network

Mediaweek, October 23, 2008 — Seeking new revenue streams, professional-focused social network LinkedIn today is expected to debut a network catering to business-to-business market researchers.

To date, the LinkedIn Research Network has already partnered with six market research firms--including Phoenix Marketing International and OTX--to conduct targeted B2B primary research among its network of some 30 million professionals worldwide.

MasterCard's keys to survival

The credit card underdog is taking on rival Visa with smart technology, memorable marketing, and global ambition. But what happens when consumers put their cards away?

FORTUNE, October 23, 2008 — On the desktop screens at MasterCard Worldwide, you can see the economic pulse of the globe in real time. In the suburban St. Louis control center of MasterCard's global-payments network, rows of analysts keep watch over the flow of nearly 20 billion transactions a year in 210 countries, more than the United Nations has members. When the matrix of green lights flashes a red spot, the money traffic controllers immediately reroute the transactions to keep commerce flowing.

Meanwhile, in suburban New York City, the staff at MasterCard Advisors monitors the payment network, plus surveys and other outside data, to produce bulletins on America's retail health. In early October, days before retailers released their monthly results, Advisors noted sharply... continue reading

Personalized Store Ads Take Off†

Big Marketers Start to Embrace Pitches Tailored to Reflect Shoppers' Buying Habits

Wall Street Journal, October 23, 2008 — For years, supermarket cashiers have handed shoppers coupons as they left the checkout aisle. These days, shoppers often get narrow paper strips printed with something else: ads related to the shopper's own buying habits.

Recently, Stouffer's has used such ads to encourage buyers of its single-serve frozen entrées to join its Dinner Club. Joining the club allows consumers to earn points for buying the Nestlé unit's products. The points can be used to bid for rewards like TV sets and magazine subscriptions.

Rebranding the U.S. With Obama

New York Times, October 23, 2008 — We’re beginning to get a sense of how Barack Obama’s political success could change global perceptions of the United States, redefining the American “brand” to be less about Guantánamo and more about equality. This change in perceptions would help rebuild American political capital in the way that the Marshall Plan did in the 1950s or that John Kennedy’s presidency did in the early 1960s.

Study: Coke Is Most Talked About Brand in America†

Brandweek, October 23, 2008 — According to a new study released by the Keller Fay Group, Coca-Cola is currently the most talked about brand in America. The ranking was drawn from 25,142 consumer conversations conducted between January and August 2008.

Its chief cola rival, Pepsi, came in fourth place, right behind AT&T (2) and Verizon (3). The findings come from Keller Fay Group's TalkTrack analysis, which examines word-of-mouth conversations held both on and offline. This is the first time the data has been broken down as such.

While technology, telecommunications and automotive dominated the top 20, packaged goods and retail companies accounted for 32% of all word-of-mouth conversations.

Affluent Women Dramatically ‘Multiply’ Major Purchases with Word-of-Mouth

Marketing Charts, October 22, 2008 — A new subset of affluent women dubbed “Marketing Multipliers” spends twice as much as other affluent women on consumer electronics and fashion, and uses dramatically more online and offline word-of-mouth to drive increased purchases, according to a study from the New York Times Company.

Based on qualitative interviews and a survey of more than 3,000 women with household incomes of at least $100K, the research identifies a combination of extensive social networks, past recommending behavior and personality traits that differentiate influential Marketing Multipliers from other affluent women.

“In a time of tight marketing budgets and an increased focus on return, this study provides advertisers a much better understanding of consumers who are... continue reading

Buying from a 'dying' car brand

When car brands go away, the service continues but your value can dry up

CNNMoney.com, October 22, 2008 — With all the problems in the auto industry, you may wonder if the car brand you're thinking about buying today will be around tomorrow.

The bottom line is this: "You should stick with the strongest brand," advises Robyn Eckard, a spokeswoman for Kelley Blue Book, which tracks automotive values.

It's not what could go wrong with your car while you own it, she said. It's what happens when you want to unload it.

Behavioral Targeting: A Tricky Issue for Marketers†

Brandweek, October 21, 2008 — These days, countless users are wishing their social networking sites would simply pay attention to their online travels so they could serve up an ad for something they would—gasp—actually want to buy. After all, that's the whole idea behind behavioral targeting, isn't it? The footprints left behind a user's daily wanderings through the Web (or, in the case of social networks, personal and lifestyle details) are analyzed to later match her up with ads for products or services she's likely to want. It sounds so promising—in theory at least—that behavioral targeting is what many consider the wave of the future.

CMOs Annoyed by Agencies, Ad Networks†

HP, Charles Schwab Mull Going Direct to Media Companies; Verizon Takes Online Partners to Task

Advertising Age, October 20, 2008 — Agencies and ad networks came in for some rough treatment at a CMO roundtable during the Association of National Advertisers' annual conference on Saturday as executives vented their dissatisfaction with agency models and ad-network performance.

The chief marketing officers of Hewlett-Packard and Charles Schwab openly mulled the attractiveness of bypassing agencies to work directly with media companies and other experiments as they look to fix an agency model they see as broken.

How to Build Brands in Digital Age†

Book Excerpt: As Marketers Deal With Fragmentation, the Idea Should Drive the Media, Not the Other Way Around

Advertising Age, October 20, 2008 — We are absolutely awash in news and information.... This wash of messages is due, in good part, to the increase in channels of communication, mostly in digital communication. The internet and all manner of things digital have made it almost impossible to escape what's going on in the world, for better or for worse. This has created a host of challenges and opportunities for CMOs and everyone else responsible for the care and feeding of brands. How do you cut through the clutter? How do you take advantage of digital tools and tactics to learn more about consumers and deliver better, more-relevant brand experiences?

This article, an excerpt from a book called "BrandDigital," is about the way marketers built brands in the pre-digital world compared with the... continue reading

HSBC Sponsors Entire Issue of New York Magazine

New York Times, October 20, 2008 — There is more than one way to look at HSBC Bank’s decision to buy 24 ad pages in this week’s New York magazine, making it the largest single-issue advertiser in the magazine’s history.

Given the recent turmoil in the banking industry, one could see it as a case of bad timing. Or one could consider it kismet: Now more than ever, Americans need to be reassured of their financial security and the stability of their financial institutions.

Life Takes Visa in New Marketing Direction†

CMO Antonio Lucio on How It Plans to Keep Consumer Confidence Up and Use Media to Get Results

Advertising Age, October 20, 2008 — Visa's first global chief marketing officer, Antonio Lucio, joined the company last November after 12 years at PepsiCo. In less than a year, he's overseen both a global-media-agency search and a global-creative-agency search and consolidation of the marketer's $600 million account. Now he is preparing for next year's review of interactive and direct agencies and is helping Visa navigate the transition from private to publicly traded company after an $18 billion public offering in March. He's also consolidating messaging and marketing processes around the world.

Resolved to Keep on Marketing, Even in Tight-Fisted Times

New York Times, October 20, 2008 — Attendees of a big annual conference for marketers, held here last week, could have been forgiven for believing they had stumbled into a symposium for scholars of American history in the 1930s.

These are some of the words and phrases heard during the conference, the 98th annual meeting of the Association of National Advertisers: “financial crisis,” “scary,” “foreclosure,” “economic crisis,” “difficult times,” “the chaotic financial markets,” “devastating,” “under siege” and “unprecedented.”

Whether the members of the association — 400 companies that together spend an estimated $100 billion a year on advertising and other forms of marketing — are willing to stick to the spending plans they made “before the globe... continue reading

TiVo CEO Says End Is Nigh for TV Ads†

But Many in ANA Crowd Think He's Skipping Ahead

Advertising Age, October 20, 2008 — TiVo CEO Tom Rogers did everything but hang an "end is near" sign around his neck as he tried to rouse a Saturday morning breakfast crowd at the Association of National Advertisers annual conference with warnings of fast-approaching doom for conventional TV ads.

At issue is whether DVR penetration is about to reach the tipping point at which advertiser-supported TV goes the way of the music industry and newspapers — a scenario Mr. Rogers warned repeatedly is coming soon unless advertisers begin investing in TiVo-proof vehicles sold by TiVo.

What Today's Troubled Businesses Can Learn From E-Trade†

CMO Nick Utton and Spark's Ken Zasky Share Tips on How to Survive a Credit Crisis

Advertising Age, October 20, 2008 — E-Trade Financial may have had a startling fall from grace a year ago, but the fact that it's still around offers hope for today's battered financial companies, the marketer and its media agency told an audience during the Oct. 19 general session of the Association of National Advertisers' annual conference.

Nick Utton, chief marketing officer at E-Trade, and Ken Zasky, president of Spark Communications, shared their playbook for how to survive a credit crisis.

Why Pharma Fears Social Networking†

Brandweek, October 19, 2008 — Although a majority of marketers have embraced online social media and user-generated content efforts, one industry is conspicuously not taking advantage of the gold rush: pharmaceuticals.

The reason: Marketers fear that user-generated content will include complaints about injuries caused by their drugs’ side effects. The law requires these “adverse events” to be reported to the FDA. The FDA’s adverse-event databases are regularly combed by lawyers looking for potential class-action suits.

Thus, drug marketers have stuck with a decidedly Web 1.0 model, in which customer interaction is kept to an absolute minimum.

This head-in-the-sand approach may be about to change. A debate is raging in the drug business as to whether companies should adopt... continue reading

Barack Obama†

Adaptable Team Stays on Message While Using Social Networking to Build Voter Roles

Advertising Age, October 17, 2008 — Detractors may mock Barack Obama these days as a celebrity, a candidate who promises little more than vague abstractions such as "hope" and "change." But no one should forget that he usurped the inevitable Clinton machine and has been considered the man to beat in this election.

How did he do it? The first step was taking the lessons learned from the Howard Dean campaign four years ago and turning them into internet-based fundraising that stunned Democrats and Republicans alike.... His campaign team has had a firm grasp of branding, messaging and old-fashioned political ground organization. It's also been able to balance mass marketing with social media and niche marketing.

General Mills CMO Talks Growth, Sustainability†

Brandweek, October 17, 2008 — In today's tough economy, when food companies are battling escalating ingredient costs, heavily scrutinized marketing practices and fluctuating stocks, General Mills is driving growth with a business model that includes marketing at its core.

Mark Addicks, CMO and svp of General Mills, revealed what those strategies were during a speech this morning at the Association of National Advertisers' conference in Orlando, Fla. Addicks credited "leadership, scale and leverage" as the three factors fueling General Mill's brand portfolio in an unstable food business.

Marketers Cut Back on Digital Media†

Budgets for Videogames, Cellphones, Other New Formats Fall Victim to Downturn

Wall Street Journal, October 15, 2008 — Financial woes likely will derail the growth of a slew of advertising technologies that until recently were being hailed as the next big thing.

In recent years, marketers have set aside a portion of their ad budgets to experiment with digital technologies such as Web video, mobile phones, gaming and virtual worlds. But with broader economic turmoil reaching Madison Avenue, these "experimental" budgets are among the first to hit the cutting-room floor.

Spanning Silos, A CMO’s Job Guide

By David Aaker

Prophet, October 15, 2008 — Michael Krauss, a writer for Marketing News, calls David Aaker's book a "must-read for every chief marketing officer and any marketer that aspires to that lofty C-level role." *Please note, this article is not available online. Please contact Prophet for a copy. (Marketing News)

Marketing to Millennials

Not all execs use methods they deem best

eMarketer, October 14, 2008 — Executives surveyed worldwide thought the best way to target millennials was with viral marketing, peer-to-peer recommendations and sponsorship of millennials' favorite programs, according to a survey conducted in May and June 2008 by the Economist Intelligence Unit and sponsored by Genesys.

But more than one-half of respondents said they had yet to come up with a strategy for targeting, attracting or retaining millennials; just under one-third said they had done so.

Thriftiness on Special in Aisle 5

New York Times, October 14, 2008 — While it might seem counterintuitive for stores to teach shoppers to cut their spending, several chains have concluded that providing such knowledge can spur loyalty and keep customers from trading down to cheaper competitors.

So the Stop & Shop grocery chain is offering “affordable food summits” where consumers are taught how to lower their grocery bills. Home Depot offers classes on how to cut energy bills. And Wal-Mart Stores hired a “family financial expert” who has used online chats to teach several thousand shoppers how to save money for college, whittle away debt and sell a house.

The retailers say their advice is neutral, not specific to any store — but they are always careful to point out money-saving items that their stores carry. The... continue reading

Coca-Cola: Building a Better Design Machine?

Its Web-based design tool lets the beverage giant customize marketing for hundreds of brands globally while slashing the time it takes to reach consumers

BusinessWeek, October 13, 2008 — Coca-Cola: Building a Better Design Machine?

Its Web-based design tool lets the beverage giant customize marketing for hundreds of brands globally while slashing the time it takes to reach consumers

By Jessie Scanlon

Walk into any grocery or convenience store and you're likely to see big sales signs tied to events—say, an Olympic-themed sign promoting a series of limited edition Coca-Cola (KO) cans that were available during the Beijing Summer Games. In the past 12 months, Coca-Cola Enterprises, the biggest bottler and distributor of Coke products in the U.S., has created 700,000 of these customized point-of-sale materials alone and expects to pump out 50% more in the next year.

Just five years ago a team of people might have spent weeks or... continue reading

MTV Plants Its Flag in the Digital World

Fast Company, October 13, 2008 — MTV famously missed its chance to buy MySpace. Now the network's president, Van Toffler, is investing in dozens of digital media projects — and one might soon be a billion-dollar business.

Remembering Paul Newman, Marketing and Brand Guy†

Actor's Legacy Includes a Philanthropic Model That Holds Lessons for All Businesses

Advertising Age, October 13, 2008 — Paul Newman will be remembered as many things: actor, philanthropist, race-car driver, husband, father, grandfather.

I will always think of him as an incredibly astute marketing guy.

Viral Video Marketing Survey: The Agency Perspective

Feed Company, October 13, 2008 — The tactic of creating and distributing viral video sponsored by advertisers to users on web video sites and blogs is increasing in popularity following a year that saw YouTube-charting videos from major brands such as Levi’s’ “Guys Backflip Into Jeans,” Gatorade’s “Ball Girl,” and Nike “Kobe Jumps Over Car.” A new report released from online video seeding firm Feed Company shows 70% of ad agency and media buying executives plan to increase budgets for viral video marketing in 2009. The ”Viral Video Marketing Survey: The Agency Perspective” culled insights on viral video marketing trends from 40 executives at major advertising agencies and media buying firms including Goodby, Silverstein & Partners, Wieden & Kennedy, Digitas, and... continue reading

What B-to-C Marketers Can Learn From the B-to-B World†

Five Strategies Behind Smart, Complex Brand Models

Advertising Age, October 13, 2008 — In today's consumer economy, price is becoming a bigger driver of purchase decisions, elbowing its way past all the lifestyle attributes we've worked so hard to associate with our brands.

Maybe it's time to look at those who've lived — and learned to thrive — in such dire circumstances. B-to-C, meet B-to-B.

B-to-B marketers are instead building smart, complex brand models that are based on the very business behaviors that are changing their companies.

Why Some Brands Cheer a Sour Economy†

Brandweek, October 12, 2008 — It is a good time to be McCormick spices. While not the sexiest of brands, "The taste you trust" is positioned extremely well for an economy that looks to be in a recession.

While many companies are suffering at the hands of one of the worst economic downfalls in the history of the country, others are quietly prospering.

"If you're a brand you eat, drink, smoke or wash yourself with, you're going to be OK," said Marc Babej, partner at the strategy firm Reason, New York.

"During tough times we typically point to certain categories/sectors," said William Madway, marketing professor at the Villanova School of Business. . . . [Still], every brand has the potential to be successful if they adapt to the economic realities."

Consumers Await on Social Networks

Befriended and poked by companies

eMarketer, October 10, 2008 — Nearly six out of 10 Americans who use social media interact with companies on social media Websites, according to a September 2008 study by conducted by Opinion Research Corporation for Cone.

The researchers found 85% of social media users thought companies should interact with their consumers through social media, at least when needed.

“Americans are eager to deepen their brand relationships through social media,” said Mike Hollywood, director of new media at Cone, in a statement. “It isn’t an intrusion into their lives, but rather a welcome channel for discussion.”

Study: How Profitable Is Word-of-Mouth?†

Brandweek, October 10, 2008 — If a conversation costs 50 cents to generate, how much profit do marketers reap from the typical eight minutes a consumer spends talking about their favorite brands?

According to BzzAgent, a word-of-mouth marketing agency in Boston, that profit is 38 cents. The firm has pegged this amount as the "communication dividend" in a report titled Calculating Your Communication Dividend, which examines the value of word-of-mouth conversations.

In its latest report, BzzAgent also found 87 cents to be the value per communication. The firm arrived at both numbers by mapping standard word-of-mouth calculations onto consumer recommendation and purchase behavior.

A Way to Save and Still Have Crisp Clothes

New York Times, October 9, 2008 — A new partnership between the retailer Ann Taylor Loft and Procter & Gamble is turning stores into launching pads for two new products, Tide Total Care and Downy Total Care. Both products claim to cut down on dry cleaning bills by helping clothes look new for a longer time.

The store chain is handing out free samples and coupons to customers who buy machine washable clothes, while posters and decals throughout the stores alert customers to the products’ benefits. The retailer has also produced an eight-page magazine, available free in its stores, that provides tips on how to keep clothes looking fresh (hint: they require Tide or Downy Total Care).

“The partnership between Loft and P.& G. is not typical, and we admit that at first we had concerns,”... continue reading

Twitter for Enterprises

Springwise Newsletter, October 9, 2008 — Breaking down barriers and fostering cross-company communication has long been one of enterprises' most persistent challenges. A tool that was launched last month at TechCrunch50—and then went on to win the conference's Best in Show award—offers a new solution, however, in the form of a sort of Twitter for the enterprise.

Yammer aims to make organizations more productive through the exchange of short, frequent answers to the question, “What are you working on?” Employees' responses to that question get aggregated into a private, central feed, enabling coworkers to discuss ideas, post news, ask questions and share information.

Mainstream Blogging: Integral to Media Ecosystem

MarketingVox, October 8, 2008 — Bloggers collectively create nearly one million blog posts each day, and half of bloggers believe blogs will be a primary source of news and entertainment in the next five years, according to Technorati's 2008 State of the Blogosphere Report, MarketingCharts writes.

The report, which was published on Technorati's website over the course of a work week, covered five broad topic areas relating to the state of blogging: Who bloggers are, how they blog, blogging for profit and brands in the blogosphere.

Best Buy Launches Store For and By Women

Springwise Newsletter, October 7, 2008 — Reflecting the fact that women make the majority of consumer purchase decisions these days, a number of companies have begun exhibiting signs of female fever, as our sister site trendwatching.com would put it. We've already covered instances in the automotive, construction and transportation industries, to name a few, and now consumer electronics giant Best Buy appears to have succumbed as well.

This past weekend Best Buy opened a new store in Aurora, Colo., that was designed with women in mind. Specifically, the company asked 40 local female customers and its own Women’s Leadership Forum—or WoLF pack—to participate in the design of the new store.

Home Depot Learns to Go Local†

Uniform Approach Didn't Cut It; Unsold Mowers in Arizona, Too Few Power Tools Out West

Wall Street Journal, October 7, 2008 — Shortly after taking command of Home Depot Inc. in early 2007, Frank Blake found a pyramid of riding lawn mowers outside a store in Arizona, where lush lawns are uncommon. It turned out the store had sold only one such mower in two years. Then, he learned that the retailer was chronically short of Makita power tools on the West Coast, where they sell particularly well.

Mr. Blake ordered changes in Home Depot's purchasing system, which had favored national uniformity at the expense of local customer preferences... The shift in Home Depot's buying patterns highlights a tricky problem for national retailers: balancing local demand with national efficiency. In Home Depot's case, the new, more targeted buying has helped lower merchandise costs by reducing... continue reading

Hotel Helps Guests Connect Online

Springwise Newsletter, October 7, 2008 — Most hotels today give guests a way to connect with them online before their stay, whether for making simple room requests or to shop ahead for items from the hotel's retail offerings. New York City's Pod Hotel, however, is now using an online forum to let guests make advance connections with each other as well.

The hotel's PodCulture forum is designed to let visitors swap stories, trade itineraries and ideas, and get to know their fellow guests before they arrive. Once they've booked their reservations, guests are sent an email that includes a link to the PodCulture blog and a unique user ID code. That code allows them to create a profile for the blog and begin communicating with other guests.

Owned and operated by BD Hotels, the Pod Hotel provides... continue reading

HP's Dhore Discusses CRM for 60 Million Customers†

Brandweek, October 7, 2008 — When it comes to Customer Relationship Management, Hewlett-Packard has its hands full. The company gets 600 million calls a year from its customers and ships about 500 million products. The task is complicated by new forms of customer interactions, such as blogs and social networking applications. At the helm of all this data management is Prasanna Dhore, HP's vp of customer intelligence. Dhore joined HP last year from Dreyfus, where he focused on reducing churn. At HP, Dhore has more tools at his disposal, but also a lot more data. Last week he discussed HP's CRM program with Brandweek's editor Todd Wasserman. This article highlights excerpts from that conversation.

Tampa Bay Rays Get a P&G-Style Makeover†

Arsenal of Marketing Concepts Includes 'Brand Pillars' and Consumer Touchpoints

Advertising Age, October 6, 2008 — Under the guidance of a former Procter & Gamble brand manager, the Tampa Bay Rays have gone through the sort of transformation typical of deodorant sticks and shaving razors.

First off, the team got a new name — Devil is gone — and a fresh logo and color scheme, swapping green for blue. A list of "consumer touchpoints" was found via focus-group research and monitored to make sure the ballpark experience is fun for fans

Wal-Mart Grinning Big Through the Tough Times†

Sales, Margins and Stock Price All Up -- but What's the Reason Behind the Marketing and Merchandising Miracle?

Advertising Age, October 6, 2008 — Looking for a silver lining in the economy? It's shining brightly from Bentonville, Ark.

Same-store-sales growth for Wal-Mart Stores is well ahead of dismal levels a year ago. Amazingly, Wal-Mart's margins are up too. And the stock has soared more than 30% in the past year, trading at levels not seen since the turn of the millennium, providing hope that CEO Lee Scott can avoid a net loss during his reign. Wal-Mart has become a popular defensive buy for investors and consumers alike.

The big question: Is Wal-Mart's recent run of improved results more about the marketing or the economy? Most signs point to the economy, though economic distress has dovetailed nicely with the marketing.

At JetBlue, Growing Up Is Hard to Do

New York Times, October 5, 2008 — JETBLUE AIRWAYS was the darling of the airline industry until Valentine’s Day, 2007. And life for the carrier hasn’t been the same since.

On what is now known within the company as “2/14,” a winter storm paralyzed flights at New York City’s airports. Hit hardest was John F. Kennedy International, where JetBlue, which got its start in 2000, has its busiest hub. Its planes were snowbound at gates or stuck on runways, trapping some passengers.

The 2/14 fiasco set off a crisis — emotional, cultural and financial — that few start-ups might have survived.

Design Is More Than Packaging

New York Times, October 5, 2008 — THE word “design” tends to conjure up images of crisp graphics, nicely arranged interiors or pleasing packaging. But a growing cadre of advocates say the world of design has much more to offer corporate America.

They are proponents of “design thinking,” which focuses on people’s actual needs rather than trying to persuade them to buy into what businesses are selling. It revolves around field research followed by freewheeling idea generation that often leads to unexpected results.

Design Is More Than Packaging

New York Times, October 5, 2008 — THE word “design” tends to conjure up images of crisp graphics, nicely arranged interiors or pleasing packaging. But a growing cadre of advocates say the world of design has much more to offer corporate America.

They are proponents of “design thinking,” which focuses on people’s actual needs rather than trying to persuade them to buy into what businesses are selling.

Properly used, design thinking can weave together elements of demographics, research, environmental factors, psychology, anthropology and sociology to generate novel solutions to some of the most puzzling problems in business.

General Mills, Kraft Launch Word of Mouth Networks†

Brandweek, October 5, 2008 — Recognizing that a consumer's two cents are well worth their dollars, General Mills and Kraft have both launched new word-of-mouth networks.

For General Mills, it is "Pssst . . . ," an online network that gives members the scoop on the latest product news and offerings. The site, pssst.generalmills.com, currently has 100,000 members after a quiet launch last month.

Pssst uses an initial survey to help gauge product preferences. Once registered, users can voice their opinions via blog posts, share online coupon offers and recipes, and test new sample kits via the mail.

Kraft, meanwhile, kicked off Kraftfirsttaste.com last week, which lets consumers share the newest coupon and sampling offers, but also includes features such as a member spotlight, product... continue reading

Social Media and Shopping Behavior

Retailers join consumers in the online conversation.

eMarketer, October 2, 2008 — Consumers' use of social media is altering the way they make purchase decisions. To stay relevant, retailers must determine how to incorporate social media, such as social networks and blogs, into their marketing strategies.

Abandoning Old Marketing Paradigms

By Prophet

Prophet, October 1, 2008 — This article summarizes the speeches that given at the 2008 CMO Conference in Switzerland. It reflects the latest marketing thinking of branding gurus such as Jean-Claude Larréchés from INSEAD, and David Aaker, Vice Chairman of Prophet. *Please note, this article is in German.(persönlich)

Americans Expect Companies to Have Social-Media Presence

Marketing Charts, October 1, 2008 — An overwhelming majority (93%) of online Americans say companies should have a social-media presence, and 85% believe these companies also should be interacting with consumers through social media, according to research from Cone.

CBS Gets a Rude Lesson in Citizen Journalism†

Network's iPhone App Turns Up Some User-Generated NSFW Pics to Mobile Site

Advertising Age, October 1, 2008 — Like a lot of news networks, CBS jumped on the citizen journalism bandwagon with a free iPhone app, Eyemobile for iPhone, to make it easy for users to upload news to its user-generated news site, CBSeyemobile.com

Interesting, though, the citizens' definition of "news."

Ducking the Price War, Target Highlights Fashion

Instead of fighting on Wal-Mart's terms, discount retailer Target is accentuating its core strength: Affordable chic

BusinessWeek, October 1, 2008 — Just a couple of years ago, Target (TGT) was the darling of discount shoppers. The retailer profited from exclusive, stylish goods created by such big-name designers as Isaac Mizrahi and Michael Graves. But in today's rocky economy, Target seems out of fashion. Same-store sales are down, and net income is sinking. Even Target executives pin the troubles in part on the widespread perception that the chain is more expensive than Wal-Mart (WMT) because of its focus on trendy clothes and home accessories.

So how is Target revising its sales strategy as it heads into the holidays? It is actually ramping up its designer collection, with more labels than ever. But the $63.4 billion company is also recalibrating its marketing pitch to highlight low prices. In... continue reading

From Silos to Synergy†

The new CMO imperative to growth

The Advertiser, October 1, 2008 — The existence of functional silos is the most serious challenge in planning and executing integrated marketing campaigns to drive growth, according to ANA research conducted earlier this year. Fifty-nine percent of respondents listed it as a major challenge. With that in mind, we’re pleased to present this excerpt of a new book aimed at CMOs looking to solve the silo problem.

How Financial Services Marketers Should Deal with the Crisis of Confidence

Prophet, October 1, 2008 — As the global financial meltdown spreads, it’s clear that financial brands have been profoundly damaged by a crisis of confidence among their stakeholders. Brands that until

a few weeks ago were pillars of the community are today widely distrusted. Marketing leaders didn’t get financial institutions into this mess. But they will be instrumental in repairing the damage.

How to Cope with Aging Brands

The story of brands getting old is a story of relevance.

Prophet, October 1, 2008 — Individual brands, or even whole categories, that were once important for a particular consumer segment, become irrelevant as society evolves and tastes change.

Offsetting the Risks of Innovation

Prophet, October 1, 2008 — Classic financial theory has it that all else being equal, the

greater the risk, the greater the return. And when it comes

to innovation, those businesses that are the most successful

embrace that notion.

Powerbrands in Crisis

By David Aaker

Prophet, October 1, 2008 — In this interview with David Aaker, he discusses the consequences of the financial crisis on brands in the financial services industry, the silo thinking of globally operating companies, and the short duration of CMO’s in their jobs. *Please note, this article is in German. (persönlich)

The Contribution Revolution: Letting Volunteers Build Your Business†

Intuit’s cofounder challenges traditional companies to follow the lead of internet superstars—and of innovative peers such as Honda, Procter & Gamble, and Hyatt—in tapping the contributions of countle

Harvard Business Review, October 1, 2008 — Earlier this year, I spent an intense half-day closeted in a room with the top 70 executives at Intuit. Our aim was to come up with ways that people outside the company could volunteer their time, energy, and expertise to make life better for our customers. Sound odd? Well, if you’re not conducting an exercise like that at your organization, you risk missing the boat on a sea change that’s transforming business.

Every day, millions of people make all kinds of voluntary contributions to companies—from informed opinions to computing resources—that create tremendous value for those firms’ customers and, consequently, for their shareholders. When I first encountered this idea, several years ago, it struck me as unfathomable: Volunteerism was for... continue reading

The Future of Wall Street Brands

Prophet, October 1, 2008 — The global financial services crisis raises issues for CMOs who now find themselves with new brands in their portfolios...

Why Our Automakers are Eating the Competitors Dust

Prophet, October 1, 2008 — The U.S. aut omotive industry presents yet another cautionary tale of how myopic thinking can decimate, if not destroy, brand equity and financial performance, leaving an iconic sector of American business choking in competitors’ dust.