GM Pondering Brand Cuts

BusinessWeek, November 28, 2008 — The Detroit Free Press reported today that General Motors, in its attempt to put forth a workable restructuring plan to keep it from going bankrupt, is looking at killing off three brands—Pontiac, Saab and Hummer.

Everyone knows that GM is over-branded. The problem has long been that the company does not want to have to pay dealers to fold the brands it does not need as it did with Oldsmobile in 2001. State franchise laws prevent a car company from simply ending a brand. Closing down Oldsmobile cost the company around $2 billion.

It’s unclear how GM could avoid paying big money to shutter the three brands.

Digital Sales Surpass CDs at Atlantic

New York Times, November 26, 2008 — Since MP3s first became popular a decade ago, music industry executives have obsessed over this question: when would digital music revenue finally surpass compact disc sales?

For Atlantic Records, the label that in years past has delivered artists like Ray Charles, John Coltrane and Led Zeppelin, that time, apparently, is now.

Marketers Reach Out to Loyal Customers†

As Holidays Near, Retailers Tap Statistical Models, Relying More on Targeted Ads Than on Shotgun Approach

Wall Street Journal, November 26, 2008 — With the critical holiday-sales season at hand, there's a new character joining Santa and his elves on the advertising circuit: the analytics geek.

It's number-crunching time. Marketers, their ad budgets under increased scrutiny amid the economic downturn, are mining their customer databases and reaching out to loyal consumers with targeted ads, instead of relying on the traditional yuletide blitz.

Baileys Orders Up JWT Campaign for the Holidays†

The Old 'Serve Chilled' Slogan Didn't Translate, Leading Diageo to Shop Around -- and Pass on 'Hot Shop' Boutiques

Wall Street Journal, November 25, 2008 — Wine-and-spirits giant Diageo passed on two of the world's hottest ad agencies last spring to hire a Madison Avenue stalwart, JWT, to advertise its Baileys liqueur. Starting with Thanksgiving, JWT will try to prove it was the right decision.

GM ends 9-year endorsement relationship with Tiger Woods

USA Today, November 25, 2008 — As cash-strapped General Motors (GM) looks for ways to slice expenses, it's parting ways with long-time pitchman Tiger Woods.

The ailing auto giant said Monday that it will end its nine-year relationship with the world's No. 1 golfer Dec. 31. Woods' contract with GM was set to expire Dec. 31, 2009.

For Luxury Brands, Less Money to Spend on Ads

The drop-off in advertising spending by luxury brands means more bad news for magazines and newspapers in the United States.

New York Times, November 24, 2008 — Gold was raining from above for luxury brands in the good old days of 2007.

Last December, the designer Marc Jacobs held his annual holiday party for 800 guests, including revelers from Vogue, W, and Harper’s Bazaar, in the Rainbow Room at Rockefeller Center. With the theme of Arabian Nights, Mr. Jacobs had arranged for tableaux vivants, contortionists, five open bars, bare-chested women bedecked in gold necklaces, bare-chested men balancing candelabras on their heads and, at one point, a shower of gold glitter poured over the guests.

Mr. Jacobs has held the party for each of the last 18 years, but on Nov. 4, a short e-mail message was sent out by his business partner, Robert Duffy: “Due to the financial climate, I had to make the decision to... continue reading

How Subway Nabbed Michael Phelps†

Olympian Is McDonald's Biggest Fan, so Why Is Swimmer Shilling for the Competition?

Advertising Age, November 24, 2008 — If there was one thing Americans learned about Michael Phelps during his history-making eight-gold-medal run at the Beijing Olympics — other than that he can swim really, really fast — it was that he really, really likes McDonald's

P&G Charms N.Y. Visitors, Residents With Restrooms

Marketing Daily, November 24, 2008 — The Charmin Restrooms are back. For the third year, Procter & Gamble is promoting the toilet-tissue brand with a grassroots effort that offers what New York desperately needs, if only in Times Square and only for a brief period: clean public restrooms. The loos, in Times Square between 45th and 46th streets, were launched with an official first flush Monday by former N'Sync singer Joey Fatone, who serves as Charmin's "King of the Throne."

Stimulating Demand for the ‘64 Days of Crayola’

New York Times, November 24, 2008 — Remember the boy band Color Me Badd? A campaign for the best-known brand in coloring could be called Color Me Daily.

The brand is of course Crayola, which is commemorating the 50th anniversary of its ubiquitous 64-count box of crayons with advertising that celebrates “The 64 days of Crayola.” The campaign has its own logo of 64 colored dots, arrayed in 4 rows of 16, designed to look like a view from above of the crayons inside the box.

AARP Orders Investigation Concerning Its Marketing

New York Times, November 19, 2008 — After a Senate inquiry found evidence of deceptive marketing, AARP, the lobby for older Americans, has hired an outside investigator to look into sales of some of its popular health insurance products.

AARP and UnitedHealth Group, one of the nation’s largest insurers, have voluntarily suspended sales of the policies, which pay fixed cash benefits — often much less than consumers had expected — for selected services.

Dr Pepper Puts Gamer Star's Face On Bottles

Marketing Daily, November 19, 2008 — In a consumer promotion that is being billed as one of the largest not only in video gaming but professional sports, Dr Pepper will kick off its second year as a sponsor of the Major League Gamer (MLG) Web sites by featuring an MLG gaming star player on more than 175 million 20-ounce bottles of the regular and Diet Dr Pepper.

Exclusive Interview with Marketing Pioneer David Aaker

By David Aaker

Prophet, November 19, 2008 — This blog post, written by Dan Schawbel, features an interview with David Aaker discussing his new book, "Spanning Silos: The New CMO Imperative." (Personal Branding Blog)

A New Odd Couple: Google, P&G Swap Workers to Spur Innovation†

Wall Street Journal, November 18, 2008 — At Procter & Gamble Co., the corporate culture is so rigid, employees jokingly call themselves "Proctoids." In contrast, Google Inc. staffers are urged to wander the halls on company-provided scooters and brainstorm on public whiteboards.

Now, this odd couple thinks they have something to gain from one another — so they've started swapping employees. So far, about two-dozen staffers from the two companies have spent weeks dipping into each other's staff training programs and sitting in on meetings where business plans get hammered out. The initiative has drawn little notice. Previously, neither company had granted this kind of access to outsiders.

ComScore's Golden Measure

As online publishers face a daunting new year, a report sets out to prove that Internet display ads work.

Forbes, November 18, 2008 — Ever click on an Internet banner ad? No? You're not alone--and that's a problem.

Publishers have "got to come up with evidence or proof for the advertisers or the agencies that this stuff works in some way," says Gian Fulgoni, chairman of comScore (nasdaq: SCOR - news - people ), which tracks the size and demographic makeup of Internet audiences, and sells that data. Now, he says, his company has done just that.

Hotel Puts an iMac in Every Room

Springwise Newsletter, November 18, 2008 — Located in the Saint Blaise neighbourhood of Paris's 20th arrondissement, Mama Shelter has equipped each of its 172 rooms with a 24-inch Apple iMac multimedia center. Created by the Trigano family—founders of Club Med—along with Parisian philosopher Cyril Aouizerate and designer Philippe Starck, Mama Shelter combines modern, technology-enabled accommodation with a friendly, communal vibe. By replacing the ubiquitous in-room TV with the multimedia iMac, Mama Shelter not only mimics the same type of shift going on in many homes, it also ups the ante for hotels in urban centers around the world.

Southern Comfort Backs First 'Colbert Christmas'

Marketing Daily, November 18, 2008 — Move over, comics icon Charlie Brown. Comic genius Stephen Colbert is readying his first-ever holiday special, "A Colbert Christmas: The Greatest Gift of All!," with an exclusive online sponsor you wouldn't find under Snoopy's tree — Southern Comfort.

Under the aegis of Louisville, Ky.-based Brown-Forman, the brand has inked a multi-platform marketing deal with Comedy Central, which airs "The Colbert Report." In addition to being the only online sponsor, it will run TV spots during the Nov. 23 special and have presence during the promotional lead-up of the program.

Addressable Ads Could Reinvigorate TV†

Better Targeting Would Improve Efficiency, but Scale Remains a Major Hurdle

Advertising Age, November 17, 2008 — Satellite-TV firm Dish Network and ad-tech firm Invidi struck an agreement last week that involves "advanced receivers," "targeted advertising delivery" and "dynamic commercial insertion." Behind the tech talk is something media executives such as Group M's Rino Scanzoni believe is nothing short of "the renaissance of the TV business."

The Dish-Invidi pact calls for developing of the ability to sell ads that can be sent to specific households based on geographic and demographic information.

For One Production Company, It’s All About the Power of Storytelling

New York Times, November 17, 2008 — “TELL to sell,” once a mantra on Madison Avenue, is making a comeback as marketers seek to engage consumers with compelling stories rather than peddle products in hit-and-run fashion with interruptive advertising like 30-second commercials. A newcomer to the ranks of what are called brand storytellers, which include agencies like 42 Entertainment and Story Worldwide, is being formed by Epoch Films, a company that produces commercials for advertisers like Apple, Nike and Procter & Gamble as well as films like the quirky 2005 comedy “Junebug.”

How Reckitt Routed Rivals†

Thanks to Contrarian Strategy, It Outperforms L'Oreal, Unilever, P&G

Advertising Age, November 17, 2008 — The most successful major package-goods company of the past five years in sales and profit growth probably isn't the one you'd think — even if you thought very hard. Unheralded Reckitt Benckiser has been beating the likes of its more glamorous European neighbor L'Oreal, its seemingly more creative Anglo-Dutch big brother Unilever and industry powerhouse Procter & Gamble Co. on the top and bottom lines of late.

How Twittering Critics Brought Down Motrin Mom Campaign†

Bloggers Ignite Brush Fire Over Weekend, Forcing J&J to Pull Ads, Issue Apology

Adweek, November 17, 2008 — Johnson & Johnson did manage to offend some mothers with an online and print campaign for Motrin that implied moms carry their babies as fashion accessories. But was it a genuine groundswell that felled the effort — or an alliance of the few, empowered by microblogging service Twitter?

Verizon Wireless and Photobucket Partner for Mobile Photo Uploads

AppScout, November 17, 2008 — If you're a Verizon Wireless user, you may be familiar with Verizon's PixPlace, which allows you to upload your photos, add borders and captions, and send them to friends. If you're not familiar with the service, that's not a surprise; most Verizon Wireless users who take photos with their camera phones either send picture messages directly to their friends or upload to services like Radar, Moblog, or directly to their personal Web site.

Why 'Idol' Works for Coke -- but Not for Ford†

Neuromarketing Study Suggests Carmaker Made a $26M Mistake by Failing to Establish a Purpose for Its Presence

Advertising Age, November 17, 2008 — Season after season, three brands — Coca-Cola, Ford and AT&T (formerly Cingular) — have been the proud sponsors of "American Idol," the biggest TV success in history. The reported $26 million-a-pop sponsorships are arguably some of the most valuable in North America, which explains why the sponsors have been just as loyal as the audience. But when Simon Cowell sips out of his Coca-Cola cup, Randy Jackson comments on the latest Ford and Paula Abdul encourages everyone to cast a vote using AT&T, does it work? Quantitative and qualitative statistics say it does, but does a couch shaped like a Coke bottle really make people consume more cola? We were able to find the answer in only one way: by understanding what really goes on in our subconscious.

As the Economy Worsens, Is There Money for Play?

New York Times, November 16, 2008 — From the “Buick” emblazoned on Tiger Woods’s golf bag to the Chevrolet Camaro that Cole Hamels drove home last month for being named the most valuable player of the World Series, it is hard to be a sports fan without stumbling across some type of advertisement for General Motors. The company consistently ranks first among advertisers of televised sporting events, outspending other automakers by more than two to one.

But as G.M. faces a financial crisis that has executives pleading with Congress for a federal bailout, many are wondering how far the company’s troubles will extend into the sports industry, which is already struggling to attract advertisers and sponsors in a weakened economy.

At Exxon, Making the Case for Oil

New York Times, November 16, 2008 — SIX years of relentlessly rising prices have showered the oil industry with record profits even as whipsawing energy costs have left many Americans alternately furious and baffled.

Now that the roller coaster ride appears to be screeching to a halt, one corporate giant remains confident it can weather the slowdown and uncertainty better than its rivals.

Online Age Verification for Children Brings Privacy Worries

New York Times, November 16, 2008 — WHEN it comes to protecting children on the Internet and keeping them safe from predators, law enforcement officials have vocally advocated one approach in particular. They want popular sites, like the social network MySpace, to confirm the identities and ages of minors and then allow the young Web surfers to talk only with other children, or with adults approved by parents.

The Brand-ness of Strangers

New York Times, November 16, 2008 — Some major brands may be pondering a cutback on advertising in this shaky economy, but there is one form of marketing that will soldier on: people walking around wearing logos. Most of us probably don’t consider that a form of advertising, but there is some evidence suggesting that such exposure has more influence than we think.

Assessing innovation metrics: McKinsey Global Survey Results

McKinsey Quarterly, November 15, 2008 — A recent McKinsey Global Survey shows that companies are satisfied, overall, with their use of metrics to assess innovation portfolios—though many findings suggest that they shouldn’t be. The companies that get the highest returns from innovation do use metrics well; these organizations tend to assess innovation more comprehensively than the others.

How Industries Survive Change. If They Do.

New York Times, November 15, 2008 — By some logic, there is no earthly reason why bicycles should still exist.

They are a quaint, 19th-century invention, originally designed to get someone from point A to point B. Today there are much faster, far less labor-intensive modes of transportation. And yet hopeful children still beg for them for Christmas, healthful adults still ride them to work, and daring teenagers still vault them down courthouse steps. The bicycle industry has faced its share of disruptive technologies, and it has repeatedly risen from the ashes.

Lessons from innovation's front lines: An interview with IDEO's CEO

Tim Brown, whose company specializes in innovation, distills the lessons of his career.

McKinsey Quarterly, November 15, 2008 — Many companies claim to be innovative, but few can claim innovation as their raison d’être. One such innovation machine is IDEO—a designer of products, services, and experiences ranging from Apple’s first mass-market computer mouse to aspects of Prada’s store in New York City to the patient-care delivery model at SSM DePaul Health Center, in St. Louis, Missouri.

IDEO’s single-minded focus makes it an intriguing port of call for executives seeking insights on innovation.

Spam Turns Serious and Hormel Turns Out More

New York Times, November 15, 2008 — The economy is in tatters and, for millions of people, the future is uncertain. But for some employees at the Hormel Foods Corporation plant here, times have never been better. They are working at a furious pace and piling up all the overtime they want.

The workers make Spam, perhaps the emblematic hard-times food in the American pantry.

Hyundai Genesis offers luxury for less, may help image, sales

USA Today, November 14, 2008 — LOS ANGELES — Ron Olsen could have bought a Mercedes-Benz, BMW, Lexus or another Cadillac. Instead, the Boeing retiree decided to part with $40,000 for the new kid in the luxury sedan market — a Hyundai Genesis.

Messaging Behaviors, Preferences, and Personas

KenRadio, November 14, 2008 — 8% of those who are over the age of 65 use SMS, and 4% subscribe to social networks. Another surprising data point is that 42% of teens prefer to communicate via SMS, yet 62% prefer to receive promotions via email vs. only 1% via SMS. The new study by ExactTarget confirms that there are marked differences between age groups not only in the usage of media, but also their acceptance of and attitudes towards each type and using multiple forms of media concurrently.

Snapple Introduces Snappier Look, New Formula†

Beverage Brand to Emphasize Tea's Health Benefits Amid Weaker U.S. Sales; Sugar Will Be Added to Improve Drinks' Flavor

Wall Street Journal, November 14, 2008 — Snapple, one of the original "new age" alternatives to soda, is getting a makeover as its owner grapples with sliding U.S. sales.

Dr Pepper Snapple Group Inc., the beverage business spun off from Cadbury PLC in May, is revamping Snapple's look and tweaking the formulation of its tea to try to revive consumer interest, saying tightened wallets and discounting by competitors have cut into sales. Far from the corny ads, ad hoc plugs from Howard Stern and Rush Limbaugh, and other ploys that catapulted the drink to cultlike status in the late 1980s and early 1990s, Snapple's current owner plans a more homespun campaign for its teas, emphasizing the drink's health benefits.

Alpo's Boston Restaurant Goes To The Dogs

Marketing Daily, November 13, 2008 — Boston-area residents today have a second and final chance to bring their dogs to Nestle Purina PetCare's just-opened pop-up pooch restaurant, the Alpo Chop House Originals Grill at 167 Newbury St. Dinner hours are 3 - 8 p.m., reservations not accepted, pricing non-existent, and dress not required for dining.

As Water Sales Dry Up, Nestlé Pans Soda†

Wall Street Journal, November 13, 2008 — Concerns that bottled water is a bad choice for the environment have cooled sales of the hot-selling product. But Nestlé, the world's biggest bottled-water producer, is trying to persuade consumers they should worry more about another drink: soda.

Kellogg Bolsters Digital ROI as Online Push Continues†

Hires Online Firm Pure Visibility to Track Marketer's Web Efforts

Advertising Age, November 13, 2008 — Kellogg Co. has hired Pure Visibility, an internet marketing firm out of Ann Arbor, Mich., to apply Google Analytics to its websites. The package-food company has emphasized that digital will be a bigger piece of its advertising strategy in 2009.

Qualcomm Pushes Beyond Cellphones†

Wall Street Journal, November 13, 2008 — Qualcomm Inc. is joining a race to deliver Internet access to people in emerging countries, with a plan that takes the chip maker beyond cellphones into desktop hardware.

The San Diego company, which is holding a meeting with analysts Thursday in New York, has developed a design for a home computing device that uses its cellphone chips rather than the components found in most personal computers. The goal is to bring Web access to places that have cellular data networks, but wired connections are unavailable or unaffordable.

WPP Execs Offer Tips on Weathering the Recession†

Brand Advocacy, 'Significant' Digital Spending

Advertising Age, November 13, 2008 — "Most people in this business don't yet understand how hard this recession is going to hit by the first and second quarters of next year," warned John Quelch, Harvard Business School professor and WPP Group board member, at the Marketing in a Downturn Emergency Session, hosted by WPP-owned Hill and Knowlton in New York. "It's going to be very severe and they don't understand how deep and long this thing is going to be," he added.

Crowdsourcing the Sales Force

New York Times, November 12, 2008 — If crowdsourcing can be used to improve product design, music promotion and sports team management—to name just a few of the examples we've written about—why not the process of finding sales leads? That question is about to be tested through a new site that aims to put the crowds to work as a sort of community sales force.

Cruzan Channels St. Croix For New Rum Bottle Design†

Brandweek, November 12, 2008 — With its sales already cruising, Cruzan Rum wanted to make its packaging look more upscale, real and self-assured. At the same time it did not want to come across as superficial or pretentious. The new look needed to tell the story of 250 years of rum craftsmanship, eight generations of family dedication and the warm and vibrant spirit of the Caribbean island of St. Croix. The rallying cry for the redesign was "real from within."

Disney, Verizon to turn the cellphone into a theme-park visitor's tool

Wireless software promises to help mobile phone users navigate the parks and make the most of their visits. But there are privacy implications.

Los Angeles Times, November 12, 2008 — The Happiest Place on Earth will soon know where in the world you are.

Walt Disney Co. has struck a deal with Verizon Wireless that will allow it to remain in wireless contact with its theme park visitors — even when they step outside the turnstiles in Anaheim and Orlando, Fla.

Disney and Verizon bill it as a way to enhance the "theme park experience," enabling parkgoers to use their mobile phones for tasks such as saving a spot in line at a popular ride and zeroing in on where Cinderella can be found signing autographs.

Fliers go for cheap fares, with a la carte fees for bags, food

USA Today, November 12, 2008 — More than half of US air travelers now prefer buying the cheapest available ticket, then paying fees for "extras" such as food and drink, preferred seating and checking bags.

Is The Mall Dead

With lighter wallets and heavier burdens, Americans are rethinking their conspicuous consumption. That's bad news for retailers.

Newsweek, November 12, 2008 — There's something growing in the New Jersey Meadowlands, the marsh just nine miles west of Manhattan—and it isn't the gentle ferns that the bucolic name suggests. Instead, what's emerging is a man-made behemoth, the largest and most expensive mall ever built in the United States. Originally slated to open this month, Xanadu is now scheduled for completion next summer. Lawsuits, political grandstanding and construction delays have nearly doubled the mall's cost to $2.3 billion. When it's finished, the half-mile "retailtainment" center will be a Vegas-meets-Disneyland pleasure dome with the country's tallest Ferris wheel and first indoor artificial ski slope. There will also be a two free-fall skydiving jumps, indoor surfing, a mini-city for kids, a digital... continue reading

U.S. Interest In Scooters Prompts Vespa Site Upgrade

Marketing Daily, November 12, 2008 — Piaggio Group's Vespa scooter brand will launch a new U.S. Web site on Friday that takes what had been a static site with little sound and motion to an animated one with several themes, and a richer look and feel.

The new VespaUSA.com is via N.Y.-based digital firm Last Exit. The site will have areas for Vespa merchandise, for the scooters, for the Vespa rider community--and one on "Why, Where and How" and for downloads. It also continues the "Vespanomics" theme of the past two years, positing scooters as a transportation alternative for cutting energy and gridlock.

Welch's Taps Alton Brown To Tout Health Bennies

Marketing Daily, November 12, 2008 — Food scientist, commentator, author, celebrity chef and TV personality Alton Brown has now added "Polyphenol Pro" to his long list of titles.

Brown, well-known from his Food Network roles on "Good Eats" and "Iron Chef," has become the new face of Welch's 100% Grape Juice--as the brand steps up its year-old health-oriented marketing push to zero in on the specific benefits of the polyphenol antioxidant found in its product.

Applebee's Hopes New Marketer Can Re-energize Chain†

Rebeca Johnson Brings Know-how From Brinker, PepsiCo, but Troubled Casual Dining Sector Won't Be a Piece of Cake

Advertising Age, November 11, 2008 — Applebee's, the biggest player in the casual-dining sector, said Rebeca M. Johnson is taking the marketing reins as senior VP-marketing. According to the company, Ms. Johnson will lead consumer insights, advertising, innovation and brand marketing, among other duties. She is charged with re-energizing the Applebee's brand, and rebuilding same-store sales momentum through a "focus on new, craveable grill and bar food that differentiates the brand from competitors."

Facebook Tries to Woo Marketers†

Firm's 'Engagement Ads' Amplify Its Push to Curry Favor With Madison Avenue

Wall Street Journal, November 11, 2008 — Despite its surging Internet audience, Facebook Inc. has yet to prove it can wring steady revenue out of advertisers. Now it's trying a new tactic to woo Madison Avenue.

The Palo Alto, Calif., company is rolling out a new ad format called "engagement ads" that further blurs the line between marketing and social networking.

Hotels Offer Guests the Latest Technology Tools

New York Times, November 11, 2008 — Hotels are under such pressure to keep up with their gadget-obsessed guests that they are working with technology companies to regain their edge.

Mindshare Wants A Lotame, And A Lot Of You: Cuts Deal Based On How We Spend Time Online

MediaPost Publications, November 11, 2008 — n a Madison Avenue first, WPP's Mindshare unit has cut a deal to begin serving ads to social media users based on the time they actually spend engaged on social media sites, and the advertising content surrounding them. The deal, details of which will be announced today with Lotame, the developer of an advanced audience behavior targeting system, is another step by a major agency away from the classic advertising model of placing ads based on the context of media content and instead moving to one based on the context of the audiences consuming it.

Lotame, which is a truncation of "local, target and message," is a scrappy start-up, has won favor with publishers of mid-tier social networks

Nike's Penney Deal Is Budget-Retail Bid†

Wall Street Journal, November 11, 2008 — Nike Inc. said it has entered a deal with retailer J.C. Penney Co. to sell a new line of shoes from its Converse brand, a move that will puts the maker of high-end sportswear more deeply into the budget retail market.

Tough Times Complicate the Case for Buying Super Bowl Ads†

Wall Street Journal, November 11, 2008 — With advertising rates for the Super Bowl running as high as $3 million for a 30-second spot, some marketers are wondering whether during these tough economic times they can afford the big gameFedEx, a loyal Super Bowl advertiser, still hasn't decided if it will buy in. FedEx is concerned that shelling out big bucks — at a time when it's "asking employees to do more with less" — will look "wrong," says a person close to the company.

"Companies have to be mindful that jumping into the game can open them up to criticism," this person says.

Wake Up Call†

Brandweek, November 11, 2008 — Given its recent financial struggles—at the core of which are weak sales that have forced the closing of about 600 of its U.S. stores through the first half of fiscal year 2009—the question many people are asking right now is: Can Starbucks get its mojo back?

A Plan for Spanning Silos†

No Need to Blow Them Up, but CMOs Must Foster Communication and Cooperation

Advertising Age, November 10, 2008 — Autonomous silos defined by products, countries or functions, often operating in isolation if not in competition with each other, are no longer a viable option. They can be monumentally inefficient, limit the creation of silo-spanning offerings, lead to wasteful and non-optimal resource allocation, be barriers to marketing that has scale, and create brands that are inconsistent and confused both internally and externally. In tough economic times, such inefficiencies and barriers can mean the difference between business success and disappointing marketing performance, or even failure.

However, that does not mean the answer is to blow them up, or even that the goal of the organization should be to centralize or standardize. Rather, silo-driven problems... continue reading

Businesses Take a Page From Design Firms†

Sloan-Kettering Taps Industry for Innovative Ideas on Management, Dealing With Unexpected Rivals

Wall Street Journal, November 10, 2008 — When New York's Memorial Sloan-Kettering Cancer Center wanted to make the chemotherapy process easier on patients three years ago, it sought help from an unusual place: the design firm IDEO Inc.

The IDEO consultants approached the problem the way they design eggbeaters or CD players: by closely watching patients and testing little changes.

The process delivered surprises. Clinic staffers thought patients disliked long waits for treatments. But patients said other worries were more stressful, so the clinic changed how patients are tested, how they learn about chemotherapy and how they get to the clinics.

Dell Lags in New Products†

Dell isn't launching a digital music player for the holidays, adding to concerns that it is lagging behind rivals in fresh offerings.

Wall Street Journal, November 10, 2008 — Michael Dell last year promised innovative new consumer products to generate "product lust" and spark his company's turnaround effort. But in the runup to the holiday sales season, Dell Inc. has been slow to deliver on that promise.

Goodbye Seduction, Hello Coupons

New York Times, November 10, 2008 — As the economy rapidly deteriorates from flourishing to floundering, marketers are scrambling to remake their advertising so products seem affordable and sensible rather than indulgent and fabulous. For many big marketers, including automakers, retailers, consumer product companies and even financial services, a major shift in consumer psychology spells an end to the aspirational advertising that has dominated their campaigns for the last decade.

Google, Campbell Soup, J&J Tops in CSR

Marketing Charts, November 10, 2008 — Google, Campbell Soup, and Johnson & Johnson top the list of American companies that the US public sees as most socially responsible, according to the 2008 Corporate Social Responsibility Index (CSRI), from the Boston College Center for Corporate Citizenship and Reputation Institute.

Kraft Tests Recipe for Selling in a Recession†

Key Is Finding Value, Solutions That Appeal to Strapped Customers

Advertising Age, November 10, 2008 — Kraft's chief marketer, Mary Beth West, maintains that you don't have to market differently during in a recession. You just have to understand your consumers better.

It's become particularly critical for Kraft Foods — which is in the midst of a complicated turnaround — to remind its customers why they should pay more for name-brand products when most of them are slashing their household budgets.

MGM to Post Full Films on YouTube

New York Times, November 10, 2008 — YouTube is by far the world’s biggest stage for online video. But in some ways Hulu is stealing the show. With critical plaudits and advertising dollars flowing to Hulu, the popular online hub for television shows and feature films, YouTube finds itself in the unanticipated position of playing catch-up.

Promotional Swag More Effective Than Ads†

Brandweek, November 10, 2008 — As marketers continue their debate over the next great advertising medium, a new study released today by the Advertising Specialty Institute found it's not TV, print or radio that gets consumers' attention, but good old promotional swag.

The Big Picture

Many of the biggest battles of the 2008 campaign played out on YouTube. A look at how the channel became the most important political venue of the year.

Newsweek, November 10, 2008 — In the hours before President George W. Bush was set to give his final State of the Union message last January, Sen. Barack Obama was already preparing his response. His campaign wasn't planning a press conference or appearances on network news. Instead, they shot and uploaded video of the democratic presidential candidate's comments onto the only site that could rival primetime power—Youtube.

Web 2.0 Gets Big — and Corporate

New York Times, November 10, 2008 — As the economy totters, it’s easy to make fun of the concept of “Web 2.0” — the rallying cry of a generation of chipper start-ups spawned over the last few years with an unusual aversion to vowels. Certainly, most of the venture capitalists I’ve talked to at the Web 2.0 Summit have said they are shying away from companies that are based on the idea of growing an audience now and figuring out how to make money later.

You Call That Innovation?†

New Survey Shows Consumers Value Unique Products -- Not Just Line Extensions

Advertising Age, November 10, 2008 — As everyone struggles just to stay above water, now is exactly the time to redistribute your resources to develop unique products that deliver a new consumer experience and create a franchise capable of long-term, significant growth. Try offering new benefits or delivery systems through real innovation.

Building a Better Twitter

BusinessWeek, November 7, 2008 — A host of rival sites allow users to share short messages like Twitter, but offer unique features such as picture-sharing or private groups

Havas Digital Chief Unveils 'Virtual Brand Network,' New Online Trading System Akin To Wall Street's

MediaPost Publications, November 7, 2008 — Don Epperson, the chief executive of one of Madison Avenue's biggest digital marketing services organizations, Thursday detailed a plan that is transforming the way Havas plans, buys and manages online advertising inventory, making it far more dynamic and much more akin to the way Wall Street's financial markets trade equities, commodities and options. During a keynote at the OMMA Ad Nets conference in New York, Epperson, the global CEO of Havas Digital, outlined a new "virtual brand network" that allows the agency to plan, buy, manage and even reallocate online inventory based on how the value fluctuates for specific advertisers and their brands over time. In effect, he said, Havas was becoming an advertising network.

At the Supermarket Checkout, Frugality Trumps Brand Loyalty†

Wall Street Journal, November 6, 2008 — When Summer Mills visited her local CVS drugstore recently, to save a few dollars she bought the store-brand facial scrub rather than the Olay version she normally uses.

"I thought I'd be able to tell the difference, but I couldn't — I looked at the ingredients and they seemed almost the same," says 30-year-old Ms. Mills, a stay-at-home mother of two in Ardmore, Okla. On her next shopping trip, "I'm going to buy the store-brand moisturizer and cleanser — it's less money."

Many Americans are changing their everyday purchases and abandoning brand loyalty, prompted by the persistent financial pressure of rising food, gasoline and electricity prices. Over the past 24 months, consumer prices have risen 7.8% according to the U.S. Bureau of Labor... continue reading

Coke, Mercedes Avoid Gritty Film Cameos†

'Slumdog Millionaire' Director Danny Boyle Says Brands Opt Out of Mumbai Slum Scenes

Advertising Age, November 6, 2008 — LOS ANGELES (AdAge.com) — Filmmakers often try to incorporate brands into their projects to lend plotlines a sense of authenticity. But in the case of director Danny Boyle's upcoming release, "Slumdog Millionaire," the footage might be too real: In an interview with Advertising Age, Mr. Boyle said Coca-Cola and Mercedes-Benz demanded that they be excised from key scenes.

Disney, by Design

From couture to jewelry to designer furniture, building a ‘lifestyle brand’ that isn’t cartoonish

New York Times, November 6, 2008 — THE most expensive piece of clothing sold by the Walt Disney Company six years ago was a $75 sweatshirt embossed with a mug shot of Mickey Mouse. By Magic Kingdom decree, home furnishings were required to exhibit at least one Disney character, leading to children’s play rugs ($65, in Pluto) and nightlights ($9.95, in Winnie the Pooh).

Disney still peddles all those things. But now the company also sells $3,900 designer wedding gowns — no characters in sight — and women’s cashmere sweaters “inspired by Tinker Bell.” Interior design offerings include $2,800 leather club chairs and $6,000 chandeliers patterned after the Art Deco décor in Mr. Disney’s former office. One of the company’s new products: couture soap.

Welcome to Disney, the... continue reading

How Nike's Social Network Sells to Runners

The Nike+ site is drawing hordes of runners, and its success may hold lessons for brand building on the Web

BusinessWeek, November 6, 2008 — Next Issue

After joining nikeplus.com, Seattle's Winters was inspired to run 50-mile races John Keatley

Nike's Olander at first didn't foresee the marketing power of Nike+ Lee Emmert

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Nike (NKE) is winning a new game that other corporations, from Coca-Cola (KO) to Verizon (VZ) to General Motors (GM), have tried unsuccessfully to play: building brand loyalty via online social networking.

In the two years since it launched Nike+, a technology that tracks data of every run and connects runners around the world at a Web site, nikeplus.com, Nike has built a legion of fans. In August,... continue reading

The Coming Creativity Boom

The real source of all growth is human ingenuity and entrepreneurship, which often thrive in the worst of times--and are always surprising.

Forbes, November 6, 2008 — Knowledge is about the past; entrepreneurship is about the future. In a crisis the world of expertise pulls the global economy ever deeper into the past, where accountant-economists ruminate on the labyrinthine statistics of leviathan trade gaps, tides of debt and deficits, political bailouts and rebates, regulatory clamps and controls, all propping up the past in the name of progress.

Delta Adds First-Bag Fee but Ends Fuel Surcharge

New York Times, November 5, 2008 — Delta Air Lines, the nation’s biggest carrier, said Wednesday that it would charge some passengers to check their first bag, but that it was eliminating the fuel surcharges to book tickets using frequent-flier miles. It said it was adopting the fee as it matches its policies with Northwest, with whom it merged last week.

Failure to Communicate

New York Times, November 5, 2008 — Traditionally, brands have spoken in a "monologue" form to consumers. Print ads. TV commercials. Billboards. They talk at, or to, consumers. They say, "Here I am. This is what I am/do." This began to evolve when brands started asking people what they thought of products. While consumers suddenly had a voice, they used it the only way they could--to deliver monologues right back at the brand. Now, those simple monologues are evolving into a genuine dialogue.

Like a Billboard, but, Oh, So Sleek

New York Times, November 5, 2008 — One of the biggest and fanciest shopping malls in Europe opened here last week in a test of British consumers’ ability to keep spending during a steep downturn. The shopping center, Westfield London, is also shaping up as a vast experiment in making over the humble billboard.

CBS Outdoor, a division of the CBS media conglomerate, has installed more than 100 digital advertising screens at Westfield, including one covering 646 square feet.

The idea is to try to attract new kinds of clients to so-called outdoor or out-of-home advertising, including luxury brands.

Marketers Take a Softer Tack to Reach Uneasy Consumers†

Wall Street Journal, November 5, 2008 — The roller-coaster stock market and plunging housing prices have left many consumers afraid. In response, marketers are adopting a softer approach to peddling their wares, playing up comforting images in their ads and focusing on family and the warmth and safety of home.

New Domain Names Put Name Brands in a Bind†

To Protect Their Reputations, Some Companies May Have to Buy Up Millions of Dollars of Web Sites With Suffixes Like '.bank'

Wall Street Journal, November 5, 2008 — Worried about having to shell out millions of dollars to protect their brands, several major companies are protesting the launch of a slew of new top-level domains — the suffixes like ".com" that appear at the end of Web-site names.

Verizon Communications, Marriott International and New York Life Insurance are among the companies arguing that the new domains could open the flood gates to Internet fraud and drastically increase their costs of doing business online. The companies also say there couldn't be a worse time than a down economy to saddle them with the added expense.

What Marketers Can Learn From Obama's Campaign†

Change -- and Positioning -- You Can Believe in

Advertising Age, November 5, 2008 — Nov. 4, 2008, will go down in history as the biggest day ever in the history of marketing.

Take a relatively unknown man. Younger than all of his opponents. Black. With a bad-sounding name. Consider his first opponent: the best-known woman in America, connected to one of the most successful politicians in history. Then consider his second opponent: a well-known war hero with a long, distinguished record as a U.S. senator.It didn't matter. Barack Obama had a better marketing strategy than either of them. "Change."

Ads for Respected Brands Hit Racy Sites†

Brandweek, November 4, 2008 — As celebrity slip-ups continue to serve as fodder for a slew of gossip sites and blogs, more mainstream brands are finding their way onto these sites, despite their often-racy content. The big question is whether content of this variety is simply becoming more acceptable for marketers given its popularity, or whether negligent ad networks are placing messages on sites many brands would rather avoid. Both could be the case, said several media executives.

Blogs Influence Consumer Purchases

KenRadio, November 4, 2008 — The number of those who read blogs at least once a month has grown 300% in the past four years, and what they read strongly influences their purchase decisions, playing a key role in ushering them to the point of actual purchase.

Frustration-Free Packaging

Springwise Newsletter, November 4, 2008 — Thanks to a new, multi-year global initiative announced yesterday, Amazon is working with manufacturers to eliminate the causes of "Wrap Rage" while also minimizing the impact of packaging on the environment. As a result, 19 best-selling products are now available through Amazon in the US packaged in smaller, easy-to-open and recyclable cardboard boxes that protect the products within just as well, the company says.

Lush Sells Discontinued Products on Demand

Springwise Newsletter, November 4, 2008 — Since 1994, Lush has grown from a small bath products store into a multinational enterprise turning over GBP 150 million a year. However, the limited size of its stores means that some niche favourites are discontinued in favour of new and better-selling additions. Responding to customer demand, the store has just launched Retro Lush: an online and mail order-only service that gives ardent fans their fix of long lost products. Lush isn’t the first company to bring back old products with a helping hand from the internet: Cadbury reintroduced its Wispa bar to the UK last year after encouragement from a Facebook group.

New Domain Names Put Name Brands in a Bind†

To Protect Their Reputations, Some Companies May Have to Buy Up Millions of Dollars of Web Sites With Suffixes Like '.bank'

Wall Street Journal, November 4, 2008 — Worried about having to shell out millions of dollars to protect their brands, several major companies are protesting the launch of a slew of new top-level domains — the suffixes like ".com" that appear at the end of Web-site names.

Survey: Wal-Mart Among Best 'Value' Brands†

YouGovPolimetrix places AIG at bottom of insurance heap

Adweek, November 4, 2008 — A recent survey by YouGovPolimetrix revealed that the slumping economy is having a significant impact on how consumers perceive brand value. Budget brands like Wal-Mart and Old Navy were ranked highest by consumers, while more upscale brands and financial services firms ranked lowest, reflecting a loss of consumer confidence.

Three Marketing Initiatives Key to Breakout B2C Brand Growth

Marketing Charts, November 4, 2008 — Placing disciplined focus on three key business-to-consumer marketing initiatives and executing them properly helps top brands achieve “category killing” performance and can make a difference in market-share growth of up to 30%, according to research from the Marketing Leadership Council, a division of the Corporate Executive Board.

“Breakout Growth: Practical Lessons from Brands that Consistently Outperform Competitors,” sheds new light on how certain brands -despite fluctuations in economic and environmental conditions - are able to to exhibit breakout performance, growing at two to three times their category average.

Campaigns in a Web 2.0 World

New York Times, November 3, 2008 — Shortly after 9 a.m. on Oct. 19, Colin Powell endorsed Barack Obama for president during the taping of “Meet the Press” on NBC. Within minutes, the video was on the Web.But the clip was not rushed onto YouTube; it was MSNBC.com, the network’s sister entity online, that showed the video hours before television viewers on the West Coast could watch the interview for themselves.

Old media, apparently, can learn new media tricks.

FAO is A-OK!

David Niggli of FAO Schwarz retails the greatest toy story ever told.

Hub, November 3, 2008 — When last we left FAO Schwarz, we left it for dead. Every single one of its stores was closed, and it was in Chapter 11 bankruptcy. That was five years ago. Today, as David Niggli, FAO’s president and chief merchandising officer will tell you, it’s a whole new story. His explanation for its remarkable comeback story is remarkably simple. He says that all FAO Schwarz has done is what every great brand does when it loses its way: It re-ignited what made the brand great to begin with.

Reaching Consumers at Work Could Be Next Great Frontier†

New Study Says 93% of Americans Consult Colleagues Before Buying

Advertising Age, November 3, 2008 — Before they make a purchase, 93% of Americans consult their co-workers for advice, according to a new study from Big Research on socializing in the workplace.

The study from the independent consumer-research firm was conducted via WorkPlace Media's "proprietary permission-based network" of over 920,000 U.S. companies across a variety of industries. WorkPlace is a media company that helps brands reach consumers at work.

Stay-at-Home Trend Feathers Samsung Nest†

Fewer Families Going Out Means More Sales of HDTV, Sound Systems

Advertising Age, November 3, 2008 — Steven Cook came to Samsung Electronics America a little over a year ago, after 13 years at Coca-Cola and another 13 years before that at Procter & Gamble. Mr. Cook said Samsung now sits at No. l or No. 2 in most of its product categories, similar to successful classic consumer-package-goods makers. With the commoditization of electronics — much like package goods — his job is to continue to differentiate Samsung as a premium brand.

The Newest Ad Agencies: Major Media Companies†

Marketers Increasingly Bypass Traditional Business Model

Advertising Age, November 3, 2008 — When Procter & Gamble Co. brought hundreds of suppliers to Cincinnati earlier this month for its first "supplier summit," among them were 40 media companies. The message from Chairman-CEO A.G. Lafley, according to one attendee: "We want your ideas, and if we use them, we'll give you a piece of the action."

It should be no surprise that media companies are among the partners P&G is looking to tap for ideas that range from new products to new ways of marketing them. Though it may be the largest, it's far from the only marketer soliciting marketing advice from media companies these days.

Virgin Atlantic Poked by 'Facebook 13' Kerfuffle†

Posts on Social Network Shows Dangers of Public Oversharing

Advertising Age, November 3, 2008 — Having sacked a baker's dozen of its cabin crew for making disparaging remarks about everything from customers — "chavs" — to company jets, Virgin Atlantic is now dealing with a bit of user-generated criticism.

The saga of the "Facebook 13" began Friday, when the company said it had fired a bunch of employees who used one of the massively popular social network's groups for the purposes of deriding passengers, for questioning the jets' cleanliness and, most disturbing, for making the claim that its planes needed several engine replacements a year.

Where Is Generation X?

They may have grown up listening to Nirvana’s “Smells Like Teen Spirit,” but a lot of things have changed since then. The Internet came along, for one.

eMarketer, November 3, 2008 — Generation X has come of age. No longer the grungy, ripped-jeans kids Time magazine first described in 1990, Gen Xers are in their peak years of product and service consumption. And they are embracing electronic media more fervently than they were even 18 years ago.

Thinking by Design†

Brandweek, November 2, 2008 — While marketers have appreciated the value of distinctive design for some time now—at least since Apple and Target started making it a key differentiator about a decade ago—design thinking is something else. The premise is that if you tap a designer, or a designer's problem-solving approach, to tackle standard business problems, you will get game-changing results.

Correcting the Brand Backlash

By Kevin O'Donnell

Prophet, November 1, 2008 — The anti-brand backlash can be contained, Kevin argues, by teaching those who think a brand is just a name slapped on a package that the true concept of Brand is the 360-degree experience a consumer has with it. (Marketing News)

Get (and keep) great people

Developing the employee value proposition

Prophet, November 1, 2008 — Roland Bernhard examines the Employee Value Proposition as a potential recipe for attracting and keeping the best possible people to deliver the customer strategies your organisation needs in tough times

Marketing and the Need to Span Silos

By David Aaker

Prophet, November 1, 2008 — David Aaker is interviewed on the The Engaging Brand blog, discussing key themes for "Spanning Silos: The New CMO Imperative." (The Engaging Brand Blog)

Tools for Profit

By Michael Dunn and Roland Bernhard

Prophet, November 1, 2008 — This article outlines how CMOs can make better marketing spend decisions and evaluate the success or failure of their decisions. They argue that marketing effectiveness can be improved by following six key levers. *Please note, this article is in German. (Absatzwirtschaft)