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« February 2006 | Main | April 2006 »

Using Advertising to Push Though Seasonal Lulls

It's 70 degrees and sunny in Boston today - just beautiful. Soon the magnolias along Beacon Street will bloom. It's my favorite time of year in the city.

I know that many businesses in the city dread summer because of the inevitable slow down. First, the city loses over a hundred thousand people when all the students leave on summer break. Second, there's a mass exodus of people to Cape Cod, Maine and the like.

Combined with the fact that Boston is actually losing population, and that can make for tricky business. This is especially true for those in retail businesses,

Many businesses, sensing the slowdown, reduce their marketing budget during this time. Many cease their advertising, or at least advertise less. The logic is that when business is slow more advertising isn't going to help. I believe this is a mistake.

Research shows that businesses that advertise consistently through economic slowdowns outpace their competitors during that time. Not only that, but when economic conditions improve, they do even better than their competition who were inconsistent.

Why is this so? Several reasons:

  • People need multiple exposures to advertising to respond to it. If they see your ad for a while, and then it disappears, your business leaves their consciousness.
  • When your competition stops advertising, but you keep it up, you stand to win customers that won't be aware that your competition even exists.
  • By advertising consistently your brand will seem stronger. People will be more attracted to your business.
  • Sometimes people just aren't ready to buy the first time they see your ad. By having it in front of them all the time, when they are ready - they are more likely to choose you.

Consistent action is the key to any marketing effort, and advertising is no exception.

J D Moore - Marketing Comet

Culture And Marketing

"Cultural" marketing or cross-cultural marketing are hot topics in today's globalized marketplace. Even in the US where several states are about to gain a Spanish speaking majority, cultural marketing is big talk.

With all the gab it's really important to step back and ask the question, "what is culture?" I can tell you that most of my college and grad-school professors even got this one very wrong. The problem with defining culture is almost anything you point to and say "that's culture" just isn't.

Here's my working definition of culture (it has served me well): Culture is a shared set of underlying values and beliefs both conscious and unconscious that affect behavior.

That's it. Culture is not a country, or a language, or a race, or a set of artifacts. These things are the footprints of culture. Let's take a look at a few things:

Country / Nationality: Can you say there is a US culture? Sure, but there are so many sub-cultures that it is hard to point to what people in the US hold as common beliefs. Some ethnocentric Europeans like to claim that the US has never developed a culture (probably while they listen to rock and roll, wear jeans, eat a Big Mac, and vote for elected officials).

But the US is a Hodge-Podge of cultures so maybe it would be more helpful to look at a more homogeneous nation. Well if I could find one on the globe we could look at it. Even China whose culture is ministered by the state has very different regions, ethnicities, languages, forms of dress and definitely sub-cultures.

Language: Language is closely tied to culture, because it is intimately tied to the way we think and make sense of the world. Native Japanese speakers will have a very different sense of some things than native speakers of Romanian. Learning language actually affects the way our brain is constructed.

Language may also reflect cultural norms and rules. For example, in french there are polite and familiar forms of the word "you" as well as verbs. Using familiar speech with a stranger is rude and extremely insulting. we don't have a concept like that in English. Likewise Japanese has a complicated set of levels of formality and politeness. These linguistic rules express cultural ideas about societal behavior that probably do not exist anywhere else.

With the influx of Spanish speakers to the United States, many marketers talk about "Latino" marketing. I think this can be tricky because the Spanish speakers come from many different cultures. Surely Cuban, Colombian, Puerto rican, and Mexican cultures are different despite linguistic commonality. A friend of mine from Puerto Rico told me about the difficulty he had with Spanish speakers from some other countries because the dialects were so different.

OK, if I haven't established how difficult pinpointing a culture can be, hold on:

Each individual is more or less a collection of overlapping cultures. However, the cultures don't perfectly overlap because each individual may reject certain components from one culture and accept others. Every person is really unique.

I live in Boston, but I'm not a native. I accept some things I identify as Bostonian and not others. I am a citizen of the United States. I am primarily Caucasian but have Passamaquoddy and Pawnee American Indian roots on both sides of my family. I have studied a traditional Japanese martial art for 10 years. I identify my religion primarily as Buddhist, but draw teachings from many beliefs. I grew up in a small town in Maine, but like living near the city. I married a woman who is Filipina, whose parents are from different regions of the Philippines that have different languages. And this is just beginning to scratch the surface of where I draw cultural influences.

The thing is, I am not in any way uniquely complex. Most people are at least as complex as I if not more.

So is culture an entirely useless concept for marketing?

Is culture so complex, individual, and unfathomable as to be useless from a marketing perspective? It can be if done wrong.

It's about levels of abstraction. It may be useless to say something like, "Latinos prefer the flavor of pineapple to the flavor of cola." However, you might say something like, "in Cuba there are no cola drinks, and in other Latin American countries fruit flavored drinks outsell cola drinks, pineapple outperforms most other fruit drinks in many of these markets." That is a much more useful piece of information if you are trying to penetrate these markets in the US with a soft drink.

In China Victoria's Secret failed because the idea of spending a lot of money on undergarments was very foreign, and in general the Chinese spend less money on luxuries that are not seen by the general public. US companies that are marketing food products in China have to modify many flavors because the diets their are so different.

In the US when most people get "Chinese food" takeout they are not eating anything that resembles a native Chinese diet. Most Chinese food in the US (save for a few places in various Chinatown's) has been modified to be palatable for those used to the average American diet. I do have friends that love pickled jellyfish and chicken feet and go to Chinatown regularly to get these delicacies.

Marketers that are expanding into new foreign markets are smart to hire local experts to work on campaigns. Everything from packaging colors, product choices, slogans, etc... should be reviewed by local staff. 

I remember an unintentionally humorous propaganda campaign run by the Iraqi army during the first Gulf War. There was an Iraqi propaganda radio broadcast by an operative that was meant to emotionally deter US troops. The broadcast declared that while the troops were in Saudi Arabia, their wives were being seduced by movie stars like Bart Simpson.

Research is good.

J D Moore - Marketing Comet

Negative Benefits in Your Small Business Marketing

If you've been reading this blog, or if you've done any sales training, you know that benefits are the answer to the customer's question - "what's in it for me?" A pencil has an eraser - that's a feature. Not having to worry about making mistakes when you write - that's a benefit.

But what the heck are negative benefits? I'll get to that...

If you've read this, you understand that people only do thing for one reason - it makes them feel better. By extension we also know that people do things to avoid what they perceive as future displeasure. In fact, for many people, anticipated regret is a prime motivator for buying anything.

Negative benefits are those things that people are going to avoid buy buying your product or using your service. For example, if there was no risk that we'd ever go to jail or have to pay a fine, how many of us would actually do our taxes? We do our taxes, not because it's fun, but usually to avoid the negative repercussions.

One way to motivate people to buy is to make them aware of the consequences of not buying. You have to be really careful here, and here are some tips:

  • The negative repercussions must be realistic to the customer.
  • They should be as near in the future as possible
  • They should be things that people care a great deal about.
  • If they are too over-the-top you can scare customers away.

Part of the reason the original youth anti-smoking campaigns didn't work well is because they focused on long-term health repercussions. What 16 year old kid thinks he's going to die from lung cancer?

Many commercials for senior citizen life insurance policies focus on the burden of burial expenses left behind to family. Seniors realistically know they are close to the end of their lifespan and being a burden is generally something they want to avoid. Their families are important to them.

Some people are more motivated to move towards a reward while others are more motivated to move away from loss. The best way to determine what's going to work for you is to test as best you can. Certain products and services lend themselves to positive or negative benefits.

Insurance - particularly life insurance, usually doesn't have a strong positive "towards" motivator. However, there is a strong positive feeling associated with taking care of ones family, being responsible, and ensuring your children thrive.

Look at the benefits of your own products or services. What motivators influence people's buying decisions. Look at both the rewards and the avoidance of loss. See which motivators are strongest, perhaps you can use a combination in your marketing.

J D Moore - Marketing Comet

Big Firm or Small Firm - The Office Test

Today's post is not about marketing, but I want to drop a bit of business wisdom on you. Hopefully I may save a few of you some serious capital.

I meet a lot of small businesses and start-ups in an average month and I'm always curious to hear what they're doing. Recently I have spoken to a couple of principals at start-ups who had gotten some funding - both were tech firms. The first one went out and hired a "marketing firm" with a retainer north of $10,000 a month. The second hired one of the biggest law firms in the city of Boston, and I don't even want to think about their retainer.

The perception here is that these big firms are going to give you the best service and make your business a ton of money. In my experience, that's rarely true.

Personally I have had the same attorney for probably 7 years. He's a one-man show and really knows his stuff. He specializes in what I need, and has actual litigation experience. He's a trusted friend and I can always get him on the phone. His billing rate is about 1/2 of the large firms, and he doesn't always bill me for every second I'm in contact with him. He is extremely responsive to my needs.

If you hire a gigantic law firm, as a small business, their goal is to bill you as much as humanly possible. They are going to kick most of your work to people fresh out of law school, who you can expect to pay $350 an hour and up. Those freshman lawyers are going to run everything they do for you past a senior associate who is going to bill you a minimum of $500 per hour. If you need anything complex, or have to go to court, a partner is going to bill you maybe $750-1000 per hour. Oh yeah, you'll have multiple people working on your case at the same time, and they'll even charge you for photocopies.

Don't get me wrong, there's a place for the gigantic firms, but small businesses that blow this much capital unnecessarily are crazy. My lawyer gave me the "office test" to check out potential firms. If you walk in and they have an opulent office with a great view - remember that you are paying for that.

I know that many start-ups get some money and go hunting for "brand-name" firms. The perception may be that you get what you pay for, and it's cool to say your lawyer is xyz LLP. Mostly, this is a mistake and simply contributes to the burn-rate of many firms.

Big marketing firms are the same way. First, most of them do not do marketing, most are PR firms that say they do everything so they can get most of your money. For your retainer, you're most likely to get handed off to some junior affiliates who don't understand marketing. This is unfortunate because there are many good small marketing firms that are great at what they do.

Before you make the leap to hire any big firm, and spend big-firm money, think twice. It doesn't matter who the firm's clients are, understand what you're getting for your money.

J D Moore - Marketing Comet