The Rogue Marketer

November 17, 2009

Neuromarketing - The Next Marketing Frontier

Neuromarketing promises to change the very nature of marketing and advertising. Neuromarketing is based on an understanding of the thoughts in your brain that you are not necessarily part of your consciousness. It is not only based on observing human behavior, but on the study of how the brain is actually working using tests such as MRIs.

Instead of guessing the impact of different emotions, we can now determine with some level of certainty the areas of the brain that light up from being exposed to a piece of communication, and the relative impact on a purchase decision. We can also determine when information should be communicated by studying the interplay of the rational brain and the subconscious brain.

Science is making exponential strides in understanding the limitations of the brain in assimilating information. What great Creative Directors in Ad Agencies used to do intuitively, can now be informed by an understanding of the way brains are actually wired.

An example provided by Martin Lindstrom, author of Buyology: Truth and Lies About Why We Buy , is a study of why consumers are smoking more when health warnings are more prevelant. In fact, when health warnings are removed form the cigarette pack, people actually smoke less. Lindstrom states that the health warning makes you feel worse, and then lighting up the cigarette makes you feel better. The Pavlov effect requires that the pattern be repeated. Feeling bad from a warming sign becomes linked to feeling good.

Lindstrom states that health warnings do not work for the reason that we have tuned them out. People also have an opposite reaction to what they are told what not to do. Importantly, health warnings do not appeal to the correct dimension of the brain. For example, instead of saying "don't smoke", say "don't smoke because your child will not see you."

Here's an excerpt from the Dr. Oz Show featuring Dr. Lindstrom.

Other books on the topic include How We Decide by Jonah Lehrer and and Predictably Irrational, Revised and Expanded Edition: The Hidden Forces That Shape Our Decisions by Dan Ariely.

Ad agencies and marketers should quickly embrace these new approaches and integrate them into their thinking. Improving our understanding of how communications work can only improve the ROI of a client's communications investment. The impact on the Advertising Community promises to be as pervasive as the beginning of the account planning movement.

It's an exciting time to be a communicator.

Posted at 04:44 PM in Advertising, Marketing | Permalink | Comments (0) | TrackBack (0)

Technorati Tags: neuromarketing

November 09, 2009

Chevy Cars Deserve Better Marketing

Image via Wikipedia

New advertising for Chevy cars once again demonstrate that the General Motors marketing and advertising team have failed to learn the lessons of the past. The feature rich campaign fails to position the cars as anything more than having better features than the competition.

In an advertising feature fest, the cars talk miles per gallon, cargo room and many other factors that the left brain thinkers at GM think are important. They back up these superior features with a money back guarantee. Even worse, they may be emulating the comparative Ford advertising campaign assuming that they are solving a similar problem, which they are not.

While feature superiority is helpful, there is an opportunity here for the advertising to work harder by also positioning the cars. The issue with GM is not that some of the features are superior, or that the quality is better, I'll give them that. The problem is that I have no idea why I should buy one.

As stated by Al Ries, advertising is for positioning, not for a feature fest. The issue isn't that Chevy is superior, it's that people don't want to buy them.

Since I can't resist, here's what I would do:

1. Position Chevy as the best entry level family car in America. If not this position, pick another, any position. Measure the size of the audience for the positioning to ensure that sales targets can be met.

2. Identify those benefits that are important to young families - focus on those that are a price of entry into the category (safety, room, features), and those that differentiate the car. Make the positioning primary supported by a select feature.

3. Model every program after being family friendly, from the showroom experience to service. Features such as a purchase experience which offers babysitting on Saturday's so that parents can focus. Or a 15 minute showroom gaurantee so that impatient kids don't get bored. You get the idea. Take these ideas as illustrations of what needs to be done, not as a specific prescription.

4. Offer loaner cars, so that the family is never without the car.

5. Guarantee that no future repair will be over a certain amount per year, to protect the family budget.

6. Feature real families that have customized their Chevy's to the needs of the family.

These are just a few. I'm sure with a bit of research the rest is easy. Even better, I bet there is no leader in this space as the competition is marketed to everyone instead of anyone. One strength of American manufacturing has always been our advanced understanding of marketing. It's time for GM and Chevy to relearn that lesson and let the marketing and advertising team show what they can do.

Posted at 11:21 AM in Advertising | Permalink | Comments (0) | TrackBack (0)

Technorati Tags: chevy advertising, chevy marketing, GM advertising, GM marketing, what's wrong with GM advertising

November 05, 2009

Driod Phone Marketing Ads to the Confusion - Verizon and Google Could Do Better

You have to wonder why the advertising campaign for Verizon and Google's new Droid phone seems more ordinary than extraordinary. For the record, I like the fact that Verizon is coming out with a credible competitor to the iPhone. I'm a Verizon customer, and would rather have Verizon's superior network over AT&T Wireless and Apple's superior phone. Actually, I'd rather have an iPhone on the Verizon network.

The next best thing is a Droid phone. The only thing I need to do is ignore this over produced unclear advertising campaign that is introducing the phone. Other than "it's coming" and "it's different", this campaign appears to obscure the obvious benefits of this new offering.

For a #3 phone to compete, it has to not just equal the iPhone, but be demonstrably better. The advertising obscures this fact with video game like graphics and intensity, but no real message. If the iPhone is a great piece of hardware with some cool software apps, then the Droid has no choice but to be a great software platform powered by Google on an acceptable piece of hardware. To imply that the phone is better than the iPhone, on the iPhone's terms is a fools errand and ensures that the Droid will live a long life as a distant #3 behind the iPhone and Blackberry.

Now the left brainers at Verizon will talk about features such as the superior 3G network and Google Maps integration. All fine and good, but this isn't about feature superiority, but category supremacy.

Note how in this interview John Stratton from Verizon states that the "this product can stand head to head with the iPhone device." An obvious positioning mistake. The phone is either something new and different, or it is a weak iPhone imitator. With most consumer's locked into a contract by Verizon, imitation must be good enough.

Posted at 12:08 PM | Permalink | Comments (0) | TrackBack (0)

Technorati Tags: droid advertising, Droid Marketing, verizon google droid marketing

October 23, 2009

Marketers Spark a War in the Boardroom

All marketers should read the latest book by Al & Laura Ries, which describes the battle taking place between right brain marketers and left brain managers. The book, titled "War in the Boardroom: Why Left-Brain Management and Right-Brain Marketing Don't See Eye-to-Eye--and What to Do About It " is an apt title for the battles that are taking place. I've been a big fan of Al Ries ever since his classic "Positioning: The Battle for Your Mind, 20th Anniversary Edition" was published. Next to Aaker, Kotler, Hopkins and Ogilvy, this is one of the must reads for any marketer.

Left brain managers are taking over to the detriment of marketing. Those that can quantify results and make numbers dance tend to win over those that can see the ship sinking, even though the numbers add up. The trend is being exacerbated even further by the easy to quantify on line marketing results being a driving metric of marketing vs. the harder to quantify brand. On the internet mediocrity measured well often wins over brilliant marketing.

The difference in outcomes is stark when you look at Apple's Steve Job's as a right brain guy vs. General Motors management that is still playing the better features = better car game.

According to Ries, The fundamental problem is that CEO's tend to be left brain thinkers and CEO's tend to approve marketing direction. Since marketers speak and think in a different language, the two do not communicate well. It's why CMOs last for 26 weeks on average vs. the much longer lifespan of CEOs.

The other problem described by Ries is that left brain managers believe that they can overcome current consumer perception and what I call the "physics of marketing." Case in point are recent efforts by T-Mobile and Version to battle Applie's iPhone. New operating systems such as Android are being promoted as being superior to the iPhone. The consumer on the other hands looks at both providers as offering weak substitutes for what they really want, an iPhone. Who cares that other phones have better features.

Quantitative analysis is great when trying to optimize a campaign that is working. The only issue is, figuring out how what makes for a great campaign is a right brain activity that is more gut than numbers.

War in the Boardroom. Marketers and great ideas are the casualty.

Posted at 04:46 PM | Permalink | Comments (0) | TrackBack (0)

Technorati Tags: Al Ries, Battle for the Boardroom, Laura Ries, State of Marketing

October 15, 2009

Visa Debit Card Gets Funky

Is it just me, or is the advertising industry getting lazy. The new Visa Debit Card commercial featuring "Super Freak" is a great example. Excellent music, strong production values and a message that is as thin as the Visa Debit Card itself.

I'm not sure what this commercial is trying to say. That the card is cool, or was it an account planner at the agency that said that young innovative eccentric musically inclined people are early adopters for debit cards. Even if all that is true, the commercial is more lifestyle than persuasive. I'm not sure that a Visa card can ever be perceived as "funky" or cool in this lifetime. It is a tool for certain kinds of individuals that like direct and immediate control of their finances. Instead of a "super freak" maybe it is a "control freak" that is needed.

I'd suggest that Visa go back and find the USP for these products, and then maybe, consumers will start using them instead of credit cards, which have the obvious benefit of delaying financial pain for those of us who are out of control.

Posted at 12:53 PM | Permalink | Comments (1) | TrackBack (0)

Technorati Tags: visa, visa advertising, visa debit card, visa marketing

October 08, 2009

The Use of Negative vs. Postive Words

Interesting study out of the Institute of Cognitive Neuroscience published in the Journal Emotion. The study shows that people process emotional information unconsciously, that people can perceive the emotional value of subliminal messages and that people are more attuned to negative works. You can read more about the study with an abstract featured at the UCL Institute of Cognitive Neuroscience.

Posted at 12:13 PM | Permalink | Comments (0) | TrackBack (0)

Technorati Tags: emotional advertising negative advertising positive advertising

September 21, 2009

The New York Times is all a Twitter

Image via CrunchBase

It was reported at the OMMAGobal conference this morning that Twitter is a Top 10 referring domain for the New York Times.

I've been tweeting all day on behalf of Mimeo.com and wondering what type of impact we were having. Referrals all the way to revenue are the way to go.

I have my Tweetdeck open all day monitoring competitors, and participating in hashtag discussions that are taking place around trade shows and other industry events that are pertinent to our industry.

Posted at 02:42 PM | Permalink | Comments (0) | TrackBack (0)

Technorati Tags: btob twitter, marketing and twitter, twitter ROI

September 15, 2009

Is Unemployment Higher Than We Think

Everywhere I turn I hear about friends out of work. This chart from The Business Insider reports on a Calculated Risk story that job losses as a percentage of peak employment since WWW2. Not only is the unemployment rate the highest that it has been in 26 years, but the rate of the decline is historic.

Hard to be a marketer when no one can buy your goods. Can't wait for the sharp upward bounce.

Source: The Business Insider/Henry Bodgett

Posted at 11:30 AM | Permalink | Comments (0) | TrackBack (0)

Technorati Tags: historical unemployment united states, job loss history, job losses united states

September 14, 2009

Print and Video Merge Together in Entertainment Weekly Magazine

The September 18 issue of Entertainment Weekly magazine features a printed insert that includes an embedded video player. The section features video from the CBS Fall lineup and is sponsored by Pepsi Max.

The player offers sharp video resolution and clear sound. Viewers can select via push button the video they would like to watch.

As this technology evolves it could be a significant leap forward for printed materials as it easily blends the best of video with the take it anywhere in depth editorial of print. While the first use is not particularly creative, just the fact that they were able to do it at all is admirable.

The applications for this new technology are easy to imagine. Product demonstrations next to product reviews, news stories next to news commentary, and Playboy editorial next to..... you get the idea.

In B to B, the applications are also interesting. B to B marketers can insert live video into what previously were static PowerPoint presentations. Printed sales presentations can include video which highlights the value proposition being represented.

Video in print is here to stay.

Posted at 12:08 PM in Marketing | Permalink | Comments (0) | TrackBack (0)

Technorati Tags: Entertainment Weekly video player, print and vidoe

September 12, 2009

Health Care Debate Explained - Keeping it Simple

The government, Republicans and Democrats seem to have a tough time explaining the health care plan. It gets caught up in conjecture, terms that are hard to understand, and distortion.

It's a great marketing lesson in keeping it simple. As Congressman Rep. Anthony Weiner simply states, health care is easy to understand. The goal is to take money from people and give it to Doctors. All the insurance companies do is take money from people and take a 30% fee to give money to Doctors and pharmacists. The goal of insurance companies is to protect and hopefully grow the 30%. This 30% is $300 billion dollars.

On the other end of the spectrum is a single payer system such as Medicare. Here people pay the government, who in turn takes 3.5% (vs. 30% for the insurance companies) for administration, and then gives money to Doctors. 47% of money spent on health care today is into a single payer government plan. This includes Medicare, government employees, veterans administration etc.

So to me, with this probably over simplified explanation, it seems kind of simple. As Rep. Weiner said, no one particularly likes their insurance company. Eliminating insurance companies eliminates paper work, which represents 20% of a hospitals costs. Insurance companies have a fair incentive to continually minimize the amount of money they pay out. The sicker you get, the more restrictive they are going to be.

As Rep Weiner and Bill Maher point out; President Obama needs to start standing up for those that voted for him. He needs to stand up for the 70% of Americans that don't want the threat of bankruptcy if a medical catastrophe happens, they want him to take care of the now 46 million Americans that don't have health insurance, but really do when they rely on over priced emergency rooms, and they want him to stand up to the establishment that is driving Americans into bankruptcy.

Rep. Weiner indicated that the President is appearing to be half pregnant. In my mind, being half pregnant is the equivalent of not being pregnant at all.