"Chicken Little" Marketing - The Necessary Role of a Whistle Blower

In my first job in client side advertising, I was fortunate to report to a really great boss. Experienced, smart, open to ideas and very supportive to her team. However, she had a nasty habit of always going negative when evaluating creative or promotional ideas. The impact on the creative team was palpable, and her ‘Debbie Downer’ act was a bit tiresome to all; yet no one ever called her on it. I finally screwed up my courage to raise the issue with her. Her response was immediate, direct and frankly surprisingly honest. With absolutely no offense taken, she replied “Oh, that’s my AT&T PR training kicking in. We learned to look for the worst thing that could happen, and then work backwards! That helped us prepare to deal with a reporters call in a crisis. ” .... Like if a on-duty repairmen got drunk and hit a school bus with his phone company truck. Or a customer was electrocuted because the line was not grounded improperly…and so on.

Fortunately, most folks are able to operate in a bit more optimistic and positive mode. However, there are times when marketers should and must be the devil’s advocate. 2010 provided us some good examples where marketers as the brand protector and customer advocate should have been more vocal and aggressive. I certainly have no inside knowledge of the meetings at Apple, BP or Toyota, but someone senior in marketing must have been consulted or engaged in a way that should have improved the manner in which things played out.

No, marketers could not fix the design issues or outsourcing plan that Toyota utilized for its accelerator assembly. and, Marketing has a limited role in the safety plans of energy exploration. But they certainly DO have responsibility for the communication (marketing and media) elements of a crisis management situation. These plans for the “what ifs” in their industries should have been well developed and clearly defined with the who, what where, when and how laid out. Neither BP nor Toyota showed any glimpse of being effectively prepared. Being non US multi-national corporations made matters even worse when the local management was thrust into the spotlight as the point person, armed with less than urgent and transparent communication. We can also assume that the corporate teams in Japan and UK handling marketing and communication issues misread the US reaction, both media and public.

The Apple situation is more more troubling, because they have proven to be such savvy and on target with their marketing instincts. It is clear that the iPhone antenna issue was known well before product launch. Their initial public protests and bluster after the issue surfaced were ineffective and weakly worded, reflecting how poorly prepared they were. The decision to provide free ‘bumpers’ was a good plan B, but at great cost in added expense, but more importantly in brand esteem damage. It revealed Apple to be just like the 'other' tech companies - rushing a product to market, for no apparent good reason. In hindsight, had they initially given away the ‘bumper’, with a mildly worded warning about antenna performance without it, they would have suffered no ill effects.

So how did all these situations go so badly? I surmise it is deeply rooted in the secondary role that marketing continues to play in most companies today. Product and financial types are generally heading most corporations, with a primary emphasis on numbers. Despite the rise of the CMO function (Read my post of 9 May 2009 on CMOs), marketing is still not give a proper place at the senior strategic planning table. Who is at blame for that? Sadly marketers largely are.

Newly minted CMOs tend to focus too heavily on low hanging fruit and making wildly unrealistic projections, without building a solid base of strategic understanding and supporters. This pattern of reckless management has led to short CMO tenure, reinforced views of the practice of marketing and some broken glass that the brand and department have to live with - new CMO = new agencies + unfinished initiatives = demoralized people.

Because marketing is not valued as a business planning function, other departments associate the ‘fun’ stuff with us – ads, posters, tchotchkes. Shame on us for allowing this perception to linger. There’s an old saying about ‘marketing the marketing’, well it is true and very necessary. Just don’t stop at the creative stuff. Speak from a strategic perspective, with objectives, goals and strategies, backed up by measurement plans. Be prepared to demonstrate the contribution marketing programs make to the business in generating demand, protecting revenue and building the brand.

Marketing staff often feel uncomfortable in playing the necessary role to prevent such disasters as Apple, BP & Toyota endured. Sure, the whistle blower role is not an easy one to adopt and fulfill, sorta like being the skunk at a picnic. You have to be very sure of your facts and have strong and well founded convictions to be the naysayer. Merely mentioning "brand protection" is not sufficient, in fact that generalized statement may be more damaging, given very few understand or embrace it.

But, speaking up and avoiding damage to the brand, while painful in the short run, is a whole lot easier than cleaning up the mess afterward.

Emotional connections lose out to functional messaging

A recent survey from the Association of National Advertisers (ANA) revealed that most marketers focus their customer connection on functional or rational messaging, despite their desired preference to build emotional links. The study of 80 marketers showed that functional/rational benefits are featured 62% of the time over emotional benefits, 38%.

The channels utilized to build emotional connection are websites (82%), channel partners/sales force (66%), customer relationship management [CRM] (64%) and call centers (52%). As for identifying the success of conveying emotional benefits, they cited ad tracking (75%), brand equity scores (75%) and copy testing (54%).

These seemingly innocuous results are very telling and somewhat scary for the future of marketing and advertising. The ANA is composed of most of the leading brand marketers in the US, and as an organization that stands firmly rooted in promoting and protecting brand marketing. So they are an important barometer of the state of marketing. Despite their best intentions and deeply held beliefs, most are acting directly opposite.
I should put out there that I am also a strong advocate of the power of brands and branding. Truly branded relationships, where the customer has an emotional investment and psychographic connection to a product or brand are so not common. They are precious, fragile and valuable, giving the brand great equity, power and opportunity. With that comes great responsibility to sustain the promise and trust that is inherent in a branded relationship. When customers begin to “own” the brand – Classic Coke, Motrin, Apple, etc. – marketers and the business enter a phase of mutually symbiotic, yet sometimes opposed relationships with customers.

So why this deep dichotomy between intent and action? Is it mere laziness or simplicity? Let’s face it, feature barking is a lot easier than truly creative and breakthrough marketing. Brand communications that reinforce the essence, AND convey superiority or innovation happen less often than we’d like. You know it when you see it. Sadly, we don’t see it enough.
I don’t believe it is merely a result of people following the easy path. So, let’s explore a few of the primary drivers:

- Technology/Web – The market has become pretty ‘pure’ in terms of the ability of buyers to comparison shop and research products. This reduces brand power and impact mightily.
- Economics – Many brands simply don’t have the budgets to invest in brand building as it historically has been defined. The pressure to create ROI and meet business case projections won’t sustain a lengthy investment period.
- Short Term / Dashboard Mentality – Leadership of US companies tends to have a strong finance or CFO orientation. Despite best efforts, it is hard to put ‘brand equity’ on the balance sheet. Success is measured in quarters, not years.
- Media explosion and fracture – The multitude of media choices and emphasis on ‘accountability’ have complicated the planning landscape. How do you balance buys that create emotional connection against drive to retail, promotion or click streams?
- Channel power – With a few key channel partners controlling huge volumes, they now exert great influence over the brands. Continued pressure to cut prices forces brand marketers to make difficult choices – retail volume vs. brand values

Where does this leave us? Honestly, I don’t foresee a dramatic change for some time. ANA and CMO’s will have to continue the fight to preserve the role and value of emotionally based, relationship marketing. When the economy recovers to a more normal level of demand and marketing activity, they will have to advocate for the resumption of brand communications.

To be successful, they will need to tell a truly compelling story – a marketing business case – in the language that the business understands. CMOs will have to be able to link themselves to P&L, otherwise risk being an unequal partner at the planning table.

Leadership and Vision – Inspiring the Future

How often do you hear ads or marketing campaigns refer to “in these economics times” or other such down type messaging? We all know that Wall Street and consumer confidence are emotionally driven, momentum based indices. Despite an overall bullish economy, we are acting bearishly. Anything that goes wrong – Toyota, BP, Greece/PIIGS etc. – sets us back weeks on the optimism scale. It is hard for folks to have faith when all we hear about, incessantly on cable, are the headlines touting gloom and doom.

It seems that we as a people have lost the ability to dream and believe, so it takes something really special, unique and original to move us as a society. Obama ‘08 clearly tapped into an emotional vein of optimism and potential – “Yes We Can” and the results are proof. Even those who did not vote for him admired him and were motivated, at least until the first 100 days of his presidency ended.

Leadership and vision are themes and topics I return to often, as I have always believed that one of the primary and most important roles of senior management is the responsibility to create an environment that inspires and lifts the staff to do great things. They also have to create an organization and structure that prepares, enables and allows staff the resources and opportunity to believe in their dreams and act on them. Of course there are other tasks and roles, but my emphasis here is on the inspiration aspect.

Below are some customs that can be enacted in any organization to help foster forward thinking…and actions to make it real.

See the Future – Businesses are too often more effective at responding or capitalizing upon unexpected challenges or problems. So, build in processes to plan changes by asking “what if” questions regularly and then act on the ideas. They key is asking BIG, complex and scary “what ifs” that push you into awkward and uncomfortable places.

Trail Blazers, NOT Trekkers - Look to attract and promote folks who lead by example, not managers of process. Reward those with courage, motivation and vision, who don’t seek the easy answers.

Reward Innovation – Expect new ideas, thinking and approaches from EVERY employee. Ensure that your talent acquisition, training and rewards systems adequately address it. Reinforce the need for innovation in communications and action. Of course this means that you must be expect and tolerate failures and mistakes, employees must have a safety net that allows them reasonable risk taking.

Take Time To... – read, think, meet customers, get out of your walls, look at other companies and industries. Do this regularly and intentionally. Technology and the pace of global business have diminished time to dream, evaluate and ponder. We are prone read, react and move on, as business is done in BlackBerry dimensions – instantaneously on a 3” X 3” screen. You know this is not a sustainable way of leading the business.

Bring Your Ecosystem With You – We all know it’s less scary to go out in the dark with a group. So bring your employees, channel partners, suppliers and customers with you. You are all mutually invested, so you should leap into the future together.

No doubt these are indeed challenging times, but they are getting better and momentum is gathering. Achieving the incredible business opportunities that await will not be done in the usual measured way.

Those willing to take bold, aggressive leaps will benefit most. But this will require some risk, faith and imagination that unleash the power of inspired human spirit.

As the old axiom goes...."What am I willing to let go of, to get what I want?"

Before Your Business Jumps into Social Media ...Prepare for the Worst

The upside of using social networking tools for businesses far outweigh the risks, but they do pose potential damage to brand image and corporate data. An informed and considered process is needed before you move into this space.

The growth and momentum of Facebook, LinkedIn, MySpace, Twitter etc. is well known. The crossover from personal use, on personal time to business use and business time occurred some time ago. Many companies entered this period with little or no policy, plan or protection. That should scare the bejeezus out of any senior management or business owner!

Yes, these sites are valuable and effective tools to build and maintain relationships with friends, brand advocates, colleagues, customers and potential employees. But evil doers with bad intent are also out there, seeking to achieve gain or do damage to others. Are you prepared?

The crux of the issue is around user identity and user created content. Despite the frequent reports of identity theft and web hacking, most users feel fairly safe and protected while on-line. Most of the social networking sites provide a treasure trove of personal information, which creates a tempting and lucrative target for hackers. Developing malicious applications which are populated on Facebook and then push malware onto user’s computers is not a hard effort

In addition, there are few impediments to restrict or prevent a disgruntled customer or former employee from slamming a brand on Twitter. Or someone decides to post the photos from the office picnic (where things got out of control) onto their Facebook page. How about Tweets from someone in R&D about a new breakthrough that will shake up your industry, sending the stock price up $3 in an hour! Yikes, you have issues in all cases.

Many organizations often first look to the IT department for guidance, which results in an iron clad block of all sites. This cannot be the answer for a progressive organization that understands the valuable marketing and sales window they offer. But the answer is not a technology based one. An effective and appropriate approach involves a blending of the following areas:

POLICY – An intentional, clear and concise policy regarding the use of social networking must be established within the overall use of company assets, Internet or Information Technology policy. It should incorporate guidelines for customer engagement and any and all ethical, legal and professional restrictions. (e.g. HIPPA for any medical related business). It should designate who is permitted to use social networking to represent the company on-line, and should specifically exclude all others.

Personal use of social networks should fall in line with the overall Internet policy, where excessive use and significant upload/downloads are prohibited. The policy should restrict any installation of unauthorized applications, tools or widgets. ALL employees should be required to review and sign the policy annually.

TRAINING – All staff should be required to complete a training module that covers the benefits, policy, threats and uses of social networks. Special emphasis should be devoted to acceptable and risky uses of the sites and those persons or groups authorized for “official” company use.

IT SOLUTIONS – There are a variety of new tools on the market that are very specific to the threats of social networks, skilled IT professionals are required to guide you through this process. At the very least, every business must have an effective set of defenses that should include multiple layers of firewall, spam, and virus and malware protection.

Any organization can leverage the power of social networks. Before jumping in, however a bit of thoughtful preparation is necessary to minimize the risks and assisting employees by providing structure and guidelines.
Good luck.

That Vision Thing

The need for a clearly defined vision

It is all too easy to dismiss corporate mission and vision statements as buzzwords or fluffy proclamations unconnected to running the business. The fact is the internal view of corporate vision, especially among senior leadership has never been more critical, and more telling on the ability to compete.

Vision statements became popular in the ‘90s as corporations had to directly address a changing marketplace, technologies and business model. But successful companies have been applying the principles all along, whatever they have called it.

A basic definition of corporate vision is an articulation of where you intend to lead an organization and the communication to the staff. Workers expect that leaders have a sense of direction that you believe in and are committed to. Consistent and frequent reinforcement helps maintain alignment and buy-in to a shared goal.

Without a corporate vision, companies often wobble from one event or activity to another, creating a reactive and short term perspective. Lack of a clear vision also enable external forces to impact their ability to achieve goals and ultimately succeed. Ultimately, visionless companies put their destiny in the hands of others, as they relinquish control and direction.

As we emerge from the economic downturn, vision and focus will be key attributes to help organizations emerge and reestablish forward momentum. Organizations are reeling from the shock of the past 2 years, as hard choices were made in tightening the belt, product line and staff. Employee morale and collegiality is at an all time low and trust is short.

Companies that fail to be clear and precise with their vision for the future run several risks. First, this will not be a time that treats the timid well. Businesses slow to adjust to the new normal and seize the opportunity may never recover. Second staff, uncertain for the future and beaten down by necessary sacrifices may seek a more assured future elsewhere. Customers, channel partners and investors will be keenly interested in where you are headed and will not stay on board if it is not clear that the future is bright and there is a plan to get there.

The power of corporate vision can be seen through NASA in the ‘60s. President John F. Kennedy’s goal of putting a man on the moon before the decade ended helped galvanize the organization and captured the public imagination; providing much needed support and encouragement. Think about NASA over the past 3 decades, no clear vision and as a result lukewarm public interest and Congressional support.

Corporate vision is an essential ingredient for businesses intending to succeed over the long term. Substance counts over style, aim for brevity and focus. Try to hit the following points:

• It must clearly define an important future goal, or at least a major direction for the company
• It must be exciting or inspiring enough to provide the motivation for people to follow
• It must be articulated with clarity and commitment to provide guidance and coordination for disparate groups
• It must outline a general strategy for achieving the goal

Once a corporate vision is established, the critical and hardest part starts – evangelizing and reinforcing. All senior staff must communicate their understanding and organizational connection to the vision. Every member of the team must absolutely understand how they and their work are directly connected to the vision.

Too many organizations spend too much time on creating the vision and far too little on the communication. Get it roughly right and then share with the team. Let the feedback help you refine and hone it. But make every effort to communicate it, to the point of over–communication.

The benefits of a focused and aligned team are profound. A corporate vision, well crafted and better understood are invaluable tools for leaders.

Good luck.

Why So Much Buzz...........About Buzz Marketing?

Lately the marketing world is obsessed with “buzz” marketing. Ironically, buzz has become a ‘buzzword’! Obviously, there is some substance to this and brands would be foolish to ignore the potential and value.

Wholly new brands have been created and launched on the back of buzz marketing (think: Susan Boyle). Traditional brands have been chastised for missing the opportunity, or worse punished for blunders in the space. (think: J&J’s blog response to the ‘Motrin Motherhood’ web ads).

But is “buzz” really new? The modern marketing era has included one constant; the power of personal experience as a motivating force for others. Now, the approach and its application have evolved and changed as technology has done likewise. These changes have increased the access, velocity, reach and ease of launching buzz. At the same time, brands have less control over the message than ever. So you have to be sure it is right before you unleash it.

As the technology has shaped this evolution, each generation of marketer embraces it as it if it were a new creation. But while, the language and terminology may be different, we are looking at a continuum. One that has grown and stretched as media has allowed. Is the publicity stunt of years ago that vastly different from a web based video or guerrilla marketing campaign?

Yes, the internet and electronic press releases has changed PR from relationship management just to get a press mention. With the web came email and with it another tool – viral marketing. “Going viral” was another major buzzword early this decade, which tapped into the notion of having customers pass on your message, somehow – usually through engaging and amusing content.

The over use of the term "Buzz" has obscured the practical and valuable role it fills. The underlying approach taps into the great power of ‘word of mouth’ endorsement. Positive WOM is the Holy Grail for marketers, customers who are so committed and engaged with your brand that they actually advocate for you. We know this is a two step process, where thought leaders or other influentials form opinions and then lead the actions of others. Athletes, celebrities or experts have typically filled this role in media advertising. Lately, we this has expanded broadly as the definition of ‘celebrity’ has changed to include celebrity chefs, reality TV personalities, bloggers, etc. The growth of blogs, social media (FaceBook,Twitter, YouTube et. al.) the increased role of smartphones and mobile media has made it so easy for buzz to occur.

Buzz may not be new, but it is a reality. In the 1990s traditional brands may have turned to buzz marketing as way to make them ‘cool’, but it has grown beyond that limited role to become a core vehicle. Do not mistake the hype as noise. Buzz – or whatever we call it – is a real and powerful element of the mix.

As always, integration of message and content is key, but is essential that brand communications plans and media approach be broad and clear.

Way Beyond Green Marketing

‘Going Green’…a day doesn’t go by without a brand or corporation announcing that it is implementing some form of the cause. Sadly, many (most?) are only implementing green as a new or seasonal marketing and promotional tactic.

Why is this unfortunate? Becoming a green business is a far more intensive, committed and important strategic issue to be used merely as PR fodder. To me, adopting sustainable business practices is a core strategic move, and should be seen as part of the brand values, personality and image. Every expression of brand essence -- internally and externally -- should support, reinforce and communicate the commitment made.

Green is not merely a marketing or PR issue limited to customer communications. Consumers are too smart to not see through it eventually. Plus, sustainable operations make sense because they are the right thing to do. More importantly, there is a growing understanding that these practices can create strategic advantage and source of powerful differentiation across a globe of interconnected markets with fleeting brand loyalty and changing regulatory methods.

Companies are finding a clear link between profits and sustainability. Gone are the days when a business leader’s feeble off handed defense was a charge of ‘higher costs’ or cries of ‘Western European’ utopian idealism.

“There is 100% overlap between our business drivers and social and environmental interests,” says Dow CEO Andrew N. Liveris


We have witnessed the pattern of publication of corporate policies (generally voluminous and generic) on websites and increased green marketing exploitation. Recently wholly new sustainable brands and products have emerged, from the ground up – e.g. Green Works by Clorox, that have succeeded and spawned other activity.
However, corporations have yet to reorient themselves – philosophically and operationally – to internalize sustainability. No doubt this is a challenging task, as there are no business functions that would not benefit from this approach: R&D; Procurement/Supply Chain; Manufacturing; Packaging; Distribution & Logistics; Marketing & Sales; and more.

Besides the high initial investment costs, there is a lack of consistent metrics and investor expectations of returns all hinder wider and faster adoption. The risks are clear, as the brand impact for Nike and Wal-Mart from their global sourcing scandals has shown, and as environmental disasters had on BP, Exxon and Union Carbide.
The good news is that the heightened awareness among the public has raised expectations and created pressure on corporations to move in meaningful ways. If consumers are truly willing to vote with their dollars and pay higher costs in the short term for ‘sustainable’ products, brands will have little choice but to act.

Thankfully, sustainability is “right at the top of the agendas” of more US CEOs, especially young ones, according to the McKinsey Global Institute.

How prepared is your brand? Are you vulnerable to competitors faster, first moves? If not, it just may be a shot you don’t recover from.