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."

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.

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

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.

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

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.