"Marketing is not a cost" - John Gerzema

I follow John Gerzema's Brand Bubble so I clicked on this video posted by my friend Saurav on Facebook. Soon I found myself listening intently to John who was talking about "Avoiding the Looming Crisis in Brand Value" in this year's The Economist Marketing Forum. He cites examples of brands who have done the right thing, he warns us of the changing consumer psyche and of the changing marketing principles. He talks about "trust", "value", "values" and "durability" among other things. Yes, we gotta get down to the basics, offer warranties, cherish loyalties etc. Those I have heard before. What I hadn't was what he said at the end - "Marketing is not a cost, but a fiduciary responsibility to share holders." I second that.

During the conference, John also says that this time around more and more brands are getting innovative with their approach. For eg, McDonalds has this website called http://www.unsnobbycoffee.com/ where you can send a letter to your friend and stop him/her from paying for over-priced coffee. On the other hand, Starbucks has their Gold Card Program for people who really love Starbucks. These are just one of many promotional or branding ideas, one of which I had mentioned in a previous post of mine where I had maintained that "Quality Matters". Cause' it does. McDonald's can never ever get my coffee right whereas Starbucks does it everytime! But again, that's just my opinion.

Innovation. Competition. Both spell heaven for the consumer. Also, the economic meltdown has given us a chance to look at ourselves and re-think our choices. Our regulatory bodies have a lot to learn. So do we and the brands we promote or purchase.

John also said that "Trust in brands has declined by 50%" while according to Brand Asset Valuator (BAV), "Trust is the second-most desirable attribute for a brand, right after high quality". It is interesting to note here that "sensuous" is the least desirable attribute.

It makes sense, doesn't it? Consumers want to be able to trust their brands, they don't need them to be sexy! Marketing is definitely a fiduciary responsibility, but we have to make sure we market the right goods or services. Quality matters. As always.

Quality Matters

Image Credit: Starbucks Blog

Click on image to enlarge

In my earlier posts I had mentioned the importance of copy in ads and the increasing influence of social media. Imagine my surprise when I read that my favorite coffee brand is making ample use of both in their latest marketing efforts to combat the launch of McCafe.

Take the above ads for example. According to New York Times, "Starbucks is putting up new advertising posters in six major cities. To further spread its message, it is trying to harness the power of online social networking sites by challenging people to hunt for the posters on Tuesday and be the first to post a photo of one using Twitter." I am told that there are many more social media initiatives lead by copy-filled ads in the pipeline.

McDonald’s advertising campaign is reportedly worth more than $100 million in television, print, radio, billboard and web ads with a launch strategy of "all coffee's the same, so you might as well buy the cheap stuff." This is where Starbucks is stepping in with facts about their quality, which I should add is way superior. The new Starbucks campaign is telling a story with a generous helping of words and they are recruiting you and me to spread it online. Old-time copy heavy advertising coupled with today's viral marketing can be a formidable marketing mix.

We should be happy because:

1. Both Starbucks and McDonald's are doling out the big bucks for their marketing endeavor. That's gotta be good for the economy, right?

2. Their respective ad agencies can now breathe easy.

3. Competition will eventually lead to better products at a better price.

Happy Java-ing!

'Trust Me' me on TNT - branded entertainment at its best

Creative executives, Hunt Baldwin and John Coveny are part of the team responsible for creating "Trust Me", a series premiering tomorrow on TNT. The authenticity is provided by the fact that both have worked at agencies like Leo Burnett, JWT and Y&R.

Now, what does this mean for all the brands competing with each other in every possible media in every possible way? Can we hold the television viewer's attention in today's fast paced touch-screen dominated world? Let's hope so, for Unilever's sake. Apart from being one of the sponsors of the show, Dove hair care products are actually being woven into the story-line. Which of course is no big deal since the show deals with brands and products anyway.

And that is why big brands like Apple, Chris-Craft boats, Effen vodka, Green Giant, Hallmark, Frosted Flakes from Kellogg’s, Nike, Pillsbury, Potbelly Sandwich Works and Starbucks have jumped on the proverbial bandwagon. Not all of them have the luxury of being the focus of an episode, some are merely being mentioned or featured...in-show or in-film brand placement as we know it.

To balance out the heavy dose of real brands, the show also has a few imaginary products like Arc Mobile Cellphone Service. But is that enough to ensure that the series maintains its distinct flavor and doesn't become lost in a sea of brand promotions? In order to preserve its individuality, the script of the show may sometimes deviate from what the sponsors prefer.

According to the Jan 21, 2009 New York Times - David Rubin, United States marketing director for Unilever hair brands in Chicago is fine with it. “What is so central on any branded integration,” Mr. Rubin said, “and I’ve worked on a bunch, is that with the ones that do it right, the brand’s involvement adds to the story being told without usurping the storyteller’s job.The show has to be great entertainment for me to succeed in doing what I’m trying to do.”

True, and given the premise of the show, it will be fairly impossible for it to be anything other than entertaining. Having worked in an advertising agency including two of the three mentioned above, I can safely say that no advertising firm can dare to be boring. Ego clashes, weird fashion choices, creative temperament, hard-to-please bosses and unreasonable client demands...all add in making an ad agency unlike any other.