Foes No More, Ad Agencies Unite With Internet Firms

Analysts say Internet companies and ad agencies have no choice but to work together to develop ways to make money from digital media.

New York Times, June 30, 2009 — Advertising agencies and Internet companies once viewed each other as foes, but are now coming together to harness the potential for online advertising. Like many other segments, online ad spending has slowed from its previous breakneck pace during the deep recession, forcing companies to devise new ways to chase fewer dollars.

Office Depot's Sunday Circular Goes Digital†

Adweek, June 30, 2009 — Office Depot is using part of the $100 million it spends annually on Sunday circulars to launch an online show touting weekly deals.

Dubbed Smart Specials with Matt and Matt, the show will supplement Office Depot's print product. Consumers can watch the show on TheSurvivaloftheSmartest.com and Hulu. The retailer will also send out e-mail links to its rewards members. WPP's Young & Rubicam in New York produced the Matt and Matt show.

The consumer decision journey

Consumers are moving outside the purchasing funnel—changing the way they research and buy your products. If your marketing hasn’t changed in response, it should.

McKinsey Quarterly, June 30, 2009 — If marketing has one goal, it’s to reach consumers at the moments that most influence their decisions. That’s why consumer electronics companies make sure not only that customers see their televisions in stores but also that those televisions display vivid high-definition pictures. It’s why Amazon.com, a decade ago, began offering targeted product recommendations to consumers already logged in and ready to buy. And it explains P&G’s decision, long ago, to produce radio and then TV programs to reach the audiences most likely to buy its products—hence, the term “soap opera.”

Six Rules for Brand Revitalization†

McDonald's Did It, and You Can Too

Advertising Age, June 29, 2009 — Brands do not die natural deaths. However, brands can be murdered through mismanagement. Some brands are beyond hope — but others can be revitalized.

Of course, it's not easy. But it is well worth the effort.

Unilever, Walmart, P&G Buck the Short-Term Trend†

As Recession Forces Cuts, Leaders Build for Future With Marketing, R&D

Advertising Age, June 29, 2009 — It's been said over and over: There's no time like recession, when competitors are retreating, to ramp up innovation and marketing to grab share.

So far, the competitors have done their part. U.S. trademark applications through mid-June were down 17% from a year ago; patent application growth stalled last year after more than a decade of high single-digit annual growth; and ad spending plunged 14% last quarter, according to TNS Media Research.

The intrepid share-grabbers have been harder to find. Now, however, as the dust settles from the fourth-quarter financial collapse, a growing number of them appear to be sticking their heads out of the bunkers to lay the groundwork for long-term growth in a short-term-obsessed world.

Using Design to Drive Innovation

Designers must deliver the orchestration of the total experience with a brand, product, or service or face irrelevancy

BusinessWeek, June 29, 2009 — In a previous era, all the talk was of strategy, strategy, strategy. More recently, it's been innovation, innovation, innovation. As design thinking seems poised to sweep away some of today's celebrated innovation practices, we must be wondering what new provocation is on the horizon. Relax, I'm not planning to conjure one up.

Bada-Bing: WPP Teams With Microsoft To Research How Search Builds Brands

MediaPost Publications, June 24, 2009 — WPP Group this morning unveiled plans for a research initiative with Microsoft to benchmark the "dynamics between search engine marketing and brand building." The effort, which is being spearheaded by WPP's Wunderman unit, will utilize proprietary research from Y&R's Brand Asset Valuator studies, as well as Wunderman's ZAAZ analytics and planning system.

"Marketers are spending billions on search engine marketing, primarily as a direct response mechanism," David Sable, vice chairman-COO of Wunderman, stated, adding, "We think it's time to better understand how search builds brands differently than traditional media.

How to Kick Off an Innovation Project

To build consumer loyalty, Office Max launched a study of what women look for when they buy office supplies

BusinessWeek, June 24, 2009 — "Life is beautiful. Work can be, too." So ends a fantastical commercial for the office supplies company, OfficeMax (OMX), which aired in cinemas earlier this year.

More than just a new marketing campaign, the ad reflects a new direction for a company that had previously based its competitive strategy on price and location

McCEO

McCEO Named 2009 CEO of the Year, McDonald’s Jim Skinner transformed an icon with a simple and powerful recipe for leadership.

Chief Executive, June 24, 2009 — The recession has been the graveyard of many CEO reputations. So it may come as a welcome surprise that some leaders have not only survived but boosted their company’s performance the old-fashioned way-they earned it-through sticking to steady if unglamorous organic growth. Last February, a committee of his peers met at the NYSE and chose Jim Skinner, 64, CEO of McDonald’s, to be the 2009 Chief Executive of the Year for transforming an iconic brand by rebuilding its purpose, strengthening its internal talent and realigning that talent with a return to the company’s fundamental principles. In doing this, Skinner and his senior team had to rethink much of what had been proven successful since the days when founder Ray Kroc and his ideas suffused the... continue reading

Ford's Mulally Sees a Taurus in His Future†

CEO Hopes to Revive Sedan That Once Was Best-Seller; High Price, Large Size Are Obstacles

Wall Street Journal, June 23, 2009 — Ford Motor Co. is launching a revamped Taurus this summer, a big bet by Chief Executive Alan Mulally that he can revive an ailing model that once defined the American family sedan.

In late 2006, Mr. Mulally took Ford's helm in part because of his respect for the onetime success of the Taurus. But Mr. Mulally was shocked, he said, that the company had decided to pull the plug on the brand by the time he arrived, and he quickly reversed the move.

Interpublic, Microsoft Team To 'Re-Invent' Media Planning, Buying: MOMS Is Not Your Father's Process

MediaPost Publications, June 23, 2009 — One of the hottest areas of the online advertising business - "ad ops," a short-hand for advertising operations, or the technology that is driving machine-based advertising and media-buying processing - could soon begin impacting the planning and buying process for all media. Interpublic, in partnership with Microsoft, this morning unveiled a new, tech-driven platform for managing the way media is planned, bought, measured and posted not just for online media, but for all forms of traditional and emerging media. The system, dubbed MOMS (Media Operations Management System), was unveiled this morning at the Cannes advertising festival in France, the companies boasted it would "re-invent" the way Interpublic agencies and clients plan and buy their media.

Netflix Boss Plots Life After the DVD†

Wall Street Journal, June 23, 2009 — Netflix Inc. is a standout in the recession. The DVD-rental company added more subscribers than ever during the first three months of the year. Its stock has more than doubled since October.

But Netflix's chief executive officer, Reed Hastings, thinks his core business is doomed. As soon as four years from now, he predicts, the business that generates most of Netflix's revenue today will begin to decline, as DVDs delivered by mail steadily lose ground to movies sent straight over the Internet. So Mr. Hastings, who co-founded the company, is quickly trying to shift Netflix's business — seeking to make more videos available online and cutting deals with electronics makers so consumers can play those movies on television sets.

Insight -Out Design

Hub, June 22, 2009 — The Tropicana “orange and straw” debacle is well on its way to becoming a classic example of redesign gone wrong. The lesson is simple but profound: Good designers always remember that they are designing for real people, not for their firms, themselves, or even their clients. This means that design and consumer research are inextricably linked.

Package-Goods Brands Lose Loyalists in Recession†

Study: More Than a Third of Formerly Faithful Consumers Abandoned Crest, Hunt's, PineSol, Tylenol

Advertising Age, June 22, 2009 — Brand loyalty appears to have taken a beating in the recession, at least in package goods. A study from Catalina Marketing and the CMO Council finds that for the average brand, more than half of consumers — 52% — who were highly loyal to certain package-goods brands in 2007 became markedly less so last year.

Brands left to ponder price of loyalty†

Financial Times, June 21, 2009 — Big brands’ best customers have been defecting in droves since the beginning of the US recession, according to a study. By this year, more than half of a typical US brand’s most loyal shoppers in 2007 had switched to rival products.

Can Governments Till the Fields of Innovation?

New York Times, June 21, 2009 — INNOVATION — the tricky, many-step process by which ideas become products and services — has typically been seen, studied and celebrated at the micro level, as a pursuit for entrepreneurs and clever companies.

But governments are increasingly wading into the innovation game, declaring innovation agendas and appointing senior innovation officials. The impetus comes from two fronts: daunting challenges in fields like energy, the environment and health care that require collaboration between the public and private sectors; and shortcomings of traditional economic development and industrial policies.

Hyatt’s Random Acts of Generosity

New York Times, June 21, 2009 — In the days ahead, managers and employees of the Hyatt hotel chain will be doing favors for some of their customers. Maybe they always did them, but these favors will be different: they will be what Hyatt Hotels’ C.E.O., Mark Hoplamazian, has called “random acts of generosity,” like unexpectedly picking up the tab for your hotel-bar drinks or hotel-spa massage. “Random” seems slightly off as a description, in that Hoplamazian announced this pending outburst of hospitality, and the months of consumer research that preceded it, in a guest post on a USA Today business-travel blog. But the idea is that the unexpected nature of the gifts will leave the customer not just pleased but also grateful. Gratitude is a powerful, and potentially quite... continue reading

Your customers may not know what your product is - and they may not care

Google discovers that less than 8% of those polled have an understanding of the term "browser"

Three Minds -- Organic, June 21, 2009 — This video by Google illustrates several issues that have been plaguing product and brand managers, UxDs (user-experience designers) and IAs (information architects) and most obviously, the general public. Google asks "What is a browser," only to find that less than 8% of those polled have an understanding of the term. (It is, by the way, "a software application for retrieving, presenting, and traversing information resources on the World Wide Web" - Wikipedia; e.g. Mozilla Firefox or Microsoft's Internet Explorer (The big blue 'E'))

Google Searches for Ways to Keep Big Ideas at Home†

Wall Street Journal, June 18, 2009 — Google Inc. is revamping how it develops and prioritizes new products, giving employees a pipeline to the company's top brass amid worries about losing its best people and promising ideas to start-ups.

The Mountain View, Calif., company famously lets its engineers spend one day a week on projects that aren't part of their jobs. But Google has lacked a formal process for senior executives to review those efforts, and some ideas have languished. Others have slipped away when employees left the company.

Why CMO Role Is Not as Important as You Think†

Study of Fortune 1,000 Finds Post's Authority Is Limited at Most Companies

Advertising Age, June 18, 2009 — As if average 28-month tenures weren't enough of a disincentive for marketers to seek the chief marketing officer hot-seat, a recent assessment of SEC filings of Fortune 1,000 companies suggests that the post remains low on the priority list at many organizations, and CMOs' authority remains limited.

At Starbucks, It's Back to the Grind†

Wall Street Journal, June 17, 2009 — Starbucks Corp. is making changes to the way it grinds and brews coffee as it tries to win back customers amid economic weakness and increased competition. Instead of grinding coffee only in the morning, baristas will grind beans each time a new pot is brewed. Timers will buzz to signal when it's time to make a new batch, according to internal Starbucks documents reviewed by The Wall Street Journal.

P&G Using Online Soap Opera To Market Beauty Products In China

CNNMoney.com, June 17, 2009 — Procter & Gamble Co. (PG) has once again turned to the soap opera genre to market its products, only this time the soap is online and the characters are in China.

Max Factor, a beauty brand that P&G is discontinuing in the U.S., is playing a central role in the firm's new marketing efforts in China. An online soap opera made by P&G's beauty and grooming group and Beijing Hachette Advertising Co. tells the story of two young, energetic professional women, Max Factor's target consumers in the country. And, of course, the show's characters use only P&G beauty products.

Time to Write Twitter’s Tombstone?

Too hot to be cool.

eMarketer, June 17, 2009 — Twitter made the June 15, 2009, cover of TIME magazine.

In a lead article, the publication predicted the microblogging site, consisting of tiny 140-character messages, would have a huge impact on businesses:

Recession Lesson: Throw Out Your Old Algorithms†

Q&A With John Wallis, Global Head of Marketing and Brand Strategy, Hyatt

Advertising Age, June 15, 2009 — After 28 years at Hyatt, John Wallis was named head of marketing at the hotel chain in November of last year. Resigned not to let the recession limit Hyatt's marketing activity, he launched a massive marketing effort. The campaign, which is intended to introduce its redesigned loyalty program, awards three winners — one from North America, Europe and Asia — of an essay contest 365 free nights at any Hyatt hotel worldwide; another 30,000 people will win one free night. More than 87,000 people, 79% of which were customers, entered an essay.

A Cheap Date, With Child Care by Ikea

New York Times, June 11, 2009 — IKEA’S inexpensive, contemporary furniture has attracted frugal shoppers for years, but a different kind of bargain is luring deal hunters to the Swedish retailer as the economy struggles to recover. And this offer doesn’t even require you to use an Allen wrench.

Over-stretched, money-conscious parents are using the store’s supervised play area as their personal baby-sitting service.

M&M’s, Hershey’s Find Brand-Equity Sweetness

Marketing Charts, June 11, 2009 — Plain M&M’s and Hershey’s Kisses scored highest in a ranking of 1,000 US consumer brands with the most brand equity, while a number of financial brands plummeted to the bottom of the list because of the economic crisis, according to (pdf) results from Harris Interactive’s 2009 EquiTrend study.

The annual study, which rated 1,000 high-profile brands based on seven base measures, found that trusted, non-volatile brands are holding steady in the face of economic turmoil. Food brands - particularly comfort foods such as candy, continue to dominate the top-10 list. Candy brands accounted for four of the top five and five of the top 10, while another feel-good food, Campbell’s soup, made the list at #7.... continue reading

Restaurants Take Trip to Store†

Chains Tout Branded Products in Supermarket Aisles

Wall Street Journal, June 10, 2009 — Restaurant chains are reaching out to consumers in an unexpected place: supermarket aisles.

As the economy has soured, many consumers have ditched going out to eat for a trip to the grocery store, and restaurant chains are following.

Starbucks Corp., which has seen traffic to its stores decline, in April launched a line of coffee-flavored ice cream in supermarkets. Last month, the company began handing out coupon books to its coffee-shop patrons containing such grocery-store deals as $1 off ice cream and $1 off 10-ounce packages of Starbucks brand coffee.

Ten Commandments from Entrepreneurial 'Evangelist' Guy Kawasaki

Knowledge@Wharton, June 10, 2009 — When Guy Kawasaki talks about business innovation, as he did recently at a University of Pennsylvania technology conference, he brings more than 25 years of major-league experience to the conversation — a background that the good-humored investor and entrepreneur calls "my checkered past." After getting a psychology degree at Stanford and an MBA at UCLA, the Hawaii-born Kawasaki became the second software "evangelist" at Apple Computer, where his job from 1983 to 1987 was to convince people to create software for the Macintosh. Kawasaki fondly recalls his colleagues at Apple as visionary, driven and "arguably the greatest collection of egomaniacs in the history of California — though the record has subsequently been broken by Google."

Smart Balance Keeps Tight Focus on Creativity†

Heart-Healthy Food Developer Outsources Manufacturing, Distribution to Target In-House Strength on New Products

Wall Street Journal, June 9, 2009 — The product-development laboratory at Smart Balance Inc., a food marketer keen to grow through innovation, contains chemical analyzers, lab benches and refrigerated cases. But there are rarely people.

"We don't have legions of white coats," explains Robert S. Gluck, Smart Balance's chief operating officer. Six of its staffers are charged with developing products, but they often work in suppliers' facilities nowhere near its headquarters here.

Smart Balance helps people stay lean with "heart healthy" merchandise, including low-cholesterol spreads, peanut butter, popcorn, cooking oil and milk. The company itself is lean as well, with just 67 employees and scant fixed assets. Its "virtual" business model outsources almost everything else, including... continue reading

What Danica Patrick Could Do for Nascar, Sponsors†

Observers Say Marketers Could Pump $50 Million to Be Close to Popular Driver

Advertising Age, June 9, 2009 — Nascar might just have an answer to the soft economy that's hurting TV ratings, live attendance, and sponsor recruitment: Danica Patrick.Arguably one of the best-known drivers in the world — despite having won just one race — Ms. Patrick is allowed to begin negotiations this week on a new contract with IndyCar team owners, and the racing rumor mill is churning that she is seriously contemplating a switch from open-wheel to stock-car racing in Nascar.

Why Walmart Is Getting Serious About Marketing†

Giant Attributes Success to Segmentation, Market Research and Advertising

Advertising Age, June 8, 2009 — It's marketing's time at Walmart.

It's easy to become complacent when you are a $401 billion company whose shareholder meeting gets teen idol Miley Cyrus out of bed before 8 a.m. to perform for more than 15,000 employees as a warm-up act for American Idol Kris Allen. But Walmart executives know that if the recession abates, they will face a challenge holding onto shoppers who've been introduced, or reintroduced, to the retailer as they've traded down to save money.

For CMOs to Be Visionary Leaders, They Must Have a P&L Mind-set

Prophet, June 3, 2009 — Walmart’s Stephen Quinn has it. Steve Meyer of Dell services and Cammie Dunaway of Nintendo have it, too. “It” is a P&L mind-set. It’s a mind-set critical for senior marketers to develop or sharpen if they expect to advance from being order takers or sales supporters to enterprise-wide, visionary leaders

P&G Buys Art of Shaving Retail Stores†

Giant Looks to Boost Profile in Men's Prestige Personal Care, Increase Direct Contact With Consumers

Advertising Age, June 3, 2009 — Undeterred by recession or getting into a retail business with which it has little experience, Procter & Gamble Co. is buying the Art of Shaving, seller of pricey men's shaving products at upscale shopping malls.

A Memo to the CEO: Marketing Matters

Prophet, June 2, 2009 — Michael Dunn recently spoke to Consulting about The Marketing Accountability Imperative. This interview reviews the book's tools, metrics, and anecdotes designed to help marketers navigate through this new landscape by proving ROI and communicating their mission and results more effectively with the executives in the corner offices.

Target Offers Taste of DailyCandy†

Retailer's Site Will Feature Product Picks, Articles From Newsletter's Editors

Wall Street Journal, June 2, 2009 — Target has its bull's-eye on a new venture: online media.

On Tuesday, the retailer plans to formally announce a partnership with DailyCandy.com, the email newsletter and Web site owned by cable operator Comcast that covers fashion and culture for a mostly female audience.

The venture, called Red Hot Shop, will be a special section of Target.com that will feature products from up-and-coming designers selected by DailyCandy editors, along with articles and artwork by the DailyCandy team. It is part of a broader ad deal in which Target is paying to advertise with DailyCandy; neither side would disclose the value of the deal.

New Ad Introduces Consumers to 'New GM'†

Spot Part of Multimedia Campaign That Aims For Transparency Amid Bankruptcy

Advertising Age, June 1, 2009 — General Motors plans to break a new ad Wednesday to explain the "new GM" to the American public, executives familiar with the matter said.

The automaker already posted the 60-second spot online, including on YouTube and Facebook, shortly after it filed for bankruptcy protection this morning.

http://link.brightcove.com/services/player/bcpid1543292789?bctid=24931063001

News Flash From the Future: What Will Journalism Look Like?

Fast Company, June 1, 2009 — We asked the top media minds at global design and innovation firm IDEO (designer of the Apple mouse, consultant to Fortune 500 companies) to imagine: How will we get our news after the traditional model falls apart? Here's their answer.

The Prophet Customer Experience Report: Supermarkets

Prophet, June 1, 2009 — Our second report in the series examines the customer experience in the UK’s supermarkets. The phenomenal change in the food retailing landscape over the last ten years clearly shows that consumers are more than happy to change brands. That change is not just based on price, but price combined with customer experience.