January 20, 2009

How Great Marketing Led Barack Obama to the White House

By: Irina Skaya

Today, Barack Obama will be sworn in as the 44th president of the
United States. Successful Internet marketing is the cornerstone of the 2009 historic inauguration. How did Obama connect with today’s diverse general market? How do we as marketers engage, inspire and motivate today’s consumers?

History was made when Barack Obama was elected President, but his win is beyond historic – his superb use of online marketing to promote awareness and create a loyal following has earned him AdAge’s Marketer of the Year award at the ANA Annual Masters of Marketing Conference. It also became be the template which all future presidential campaigns will draw inspiration from.  

Thomas Jefferson was the first President to use newspapers to promote his presidential campaign, Franklin D. Roosevelt was the first to use radio, John F. Kenny used television. Barack Obama is the first president to have the power to leverage Social Media in such a way as never seen before by our Presidency or Government as a whole.  

The secret behind any successful marketing campaign is to put yourselves in the shoes of the consumers. Sure, his multiracial and multicultural background represents today’s generation, but Obama has also appointed the best marketing staff that represents and knows its target market inside and out. That’s why his campaign has embraced social media. Youth vote had a major role to play in the landslide victory, and the role of the internet - the living space of the youth. His inspirational message of “change has come to America" has remained consistent throughout the presidential campaign. This message became even more important in the economic downturn.

On February 12th, Jim Margolis, Senior Advisor to the Barack Obama presidential campaign will discuss the power of social media and share lessons from Obama's campaign at the TV & Everything Video Forum.

October 19, 2008

Sailing Through the Economic Tsunami

By: Irina Skaya

‘The Great Depression’
‘Economic tsunami, hurricane, and storm all in one’
‘Financial crisis’

All of the above were heard over and over again at this year’s Annual Masters of Marketing Conference  to describe today’s U.S. economy. Surprisingly, most marketers still remained optimistic when asked about the economic slowdown and what they’re doing to stay ahead.  Many described this conference as a “bonding experience.” Almost every speaker, including E-trade provided marketers with growth strategies and advised them how to sail through this economic hurricane. But during the collapse of major commercial banks and investment brokers, how can companies reassure consumers that their money is safe?  After E-trade almost went bankrupt in 2007, Nick Utton and Ken Zasky said that the company released ads, email messages and made phone calls informing their customers that their money is secure. Their message to marketers was to be honest with their customers, create engaging ads and keep spending.

Banks have a lot going on right now, but the last thing they want is customers closing up accounts or not opening new ones. Customer communication is critical right now to help companies rebuild trust with their customers, and show that relationships are important to these banks.

Most importantly, during a credit crunch like this, a company must have a strong foundation and message to their customers, and great customer service. E-trade provided marketers with the following five guiding principles for a stormy climate:

1. Speed is not negotiable.  With customers receiving instant media alerts, a company must move quickly and decisively to reassure customers that their money is safe.
2. Reassure Everywhere Possible. conversation must be continuous. In response to the media’s message that E-trade may go bankrupt, the company came up with ads that E*Trade is not going anywhere. Their confidence encouraged current customers to maintain their accounts, and new customers to sign up.
3. Be Engaging.
4. Be Seen. Out of sight means out of mind: marketers must spend money. The company’s message needs to be out there in order to create a difference between them and their competitors.   
5. Focus. Focus. Focus. Account quality became as important as volume of accounts.

Here is an ad E-trade that both encourages people to invest and reassures that their money is safe.

One last thing: "Take care of your customers or someone else will." (Nick Utton)

Marketing in 2010 and beyond

Barbara Bacci Mirque

ANA

Despite a sunny day and a beckoning pool, approximately 300 marketers attended the CMO roundtable on Saturday afternoon.   The roundtable features the results of all three phases of Marketing Media Ecosystem 2010 year long research study.  Perhaps these uncertain times caused marketers to want  to learn how to market smarter and more efficiently  in the future.  Now more than ever we are going to have to be smart and effective marketers.   And that was the first question that moderator Richard Costello asked of the panel.  After an overview of the joint study of the ANA, AAAA, IAB and Booz & Co, the panel began.  But first, Richard addressed the elephant in the room.   Were they going to modify their marketing plans for 2009 given the turmoil in the financial markets, and if so how?  The panelists reiterated what the conference speakers have been saying, namely that you can learn a lot marketing in times like this so  don’t hunker down, experiment,  be out  there, persevere and be optimistic.  But also have the facts and figures to document the return of your marketing investments and the impact of marketing on the business so that your budget does not get cut. Steve Sullivan reminded us that part of what we are experiencing is psychological and companies such as Boeing and Caterpillar have order backlogs.

Continue reading "Marketing in 2010 and beyond" »

October 18, 2008

Inspiring Consumers with Coke

By Gregory Comolli, Charles Schwab & Company, Inc.

The second morning of the ANA conference kicked off with Joe Tripodi, CMO of the Coca-Cola Corporation.   Like other speakers this year, Joe began his presentation with a snap shot of the current economic crisis and what impact it will likely have on consumers.  So far, Coke seems to be weathering the storm quite well as Joe reported that Q3 earnings were strong and profits were up 14%.

What can brands do to survive rough patches in the economy?  Joe discussed how the key is to compete for the long-term.  At Coca-Cola, they do this in 3 ways:  advertising, building brands and inspiring consumers.  Rather than focus on one TV spot or one single print ad, at Coke, Joe and his team challenge their agency partners to focus on the ‘core creative idea’ which can be adapted across various media platforms (i.e. TV, radio, online etc.).   When thinking about building brands don’t think so much as ‘one size fits all’ rather think how your brand can become flexible and its ability to customize itself.  Lastly, inspiring consumers is the key to keeping your brand healthy and able to adapt to future events.

Growth is the theme of this year’s ANA conference and Joe presented Coke’s 4 keys to growth: Lead, Innovate, Engage and Collaborate.

·         Lead: Rather than letting others speak for them in the marketplace, Coca-Cola has formulated a singular, unified platform – Live Positively – which they use when telling their corporate story.  Whether that is telling consumers of their sustainability capabilities or inspiring people to lead active lifestyles, Coca-Cola has taken the lead and maintained a unified front when presenting their story to the market.

·         Innovate: Stop chasing the Holy Grail, Joe told the crowd.  Rather, look at your core business and tap into consumer insights to truly innovate your brand.  Coca-Cola has had recent success with their Coke Zero brand.  The sparkling beverage industry had grown somewhat tired of offerings in the marketplace and people were looking for something new.  Coca-Cola responded with Coke Zero which not only helped them increase the bottom line but has also helped them make inroads among the male target which they had seen decline in recent years.

Continue reading "Inspiring Consumers with Coke" »

Following the Puck, with Claire Bennett of American Express

By Melissa Connerton

Claire Bennett, SVP of American Express, began by sharing some lessons that she has learned: it’s more fun to be at a growing company; you can learn more in tougher times; and no one has a crystal ball. Referring to the second point, she stressed that marketers have a unique opportunity to influence consumers and help them get over their fears. According to Bennett, “marketing when done well defines the future of the company.”

As a company with a 158 year history, American Express has weathered several world events (including six “Rocky” movies, as Bennett noted). Since its beginning, the company has kept world-class customer service as its focus; knowing what the brand stands for and staying true to this has helped American Express expand and grow. According to Chairman and CEO Kenneth Chenault, “when you know your brand well, your customers feel it.”

Bennett’s recommendations for growing a brand revolve around three themes:

  1. Clarity (“define the brand and stay true to it”)

American Express is a “lifestyle services” company, not just a credit card company. The broader focus brings greater opportunity.  By focusing on giving customers security and assistance when they travel or when they make a purchase, the brand has deepened the trust factor - and this concept translates globally.

2. “Adjust your lens” so that you are constantly looking for opportunities

Along with keeping a clear focus on what the brand stands for comes an opportunity to cater to customers’ passions and to inspire them through these avenues. The “Members Project” lets card members suggest and vote for a charity they want the company to support. Also, rather than just putting a logo on sponsorship opportunities, American Express give members something more, such as special access to fashion shows or perks at the U.S. Open.  Understanding that their customers like to try new things and then tell others, and because the company can literally see what kinds of things its customers spend money on, American Express can jump on these moments.

3. Persevere, even if an idea is unpopular at first (“rarely are you greeted with open arms when you have a gutsy idea”)

Continue reading "Following the Puck, with Claire Bennett of American Express" »

October 17, 2008

Andrew Robertson of BBDO Worldwide on Consumer Rituals

By Nancy Abraham

Allstate Insurance Company

Andrew Robertson, President and CEO of BBDO Worldwide, presented the results of a proprietary study on consumer rituals, how they are different from habits and routines and how they can be used to drive incremental volume and build business for brands.

Mr. Robertson opened his remarks by sharing in meticulous detail, and in his delightful British accent (who doesn’t love a British accent?), how he started his day, including his practice of checking his e-mail right after getting out of bed (apparently many of us do this) and his twirling exercises in the shower.  While it may have been too much information for some, it clearly illustrated what he means by a ritual.

A ritual is defined as a “series of actions that transform from one emotional state to another.”  A ritual is different from both a habit and a routine.  A habit is an action that is repeated often and a routine is a series of actions that are repeated often.  However, they differ from a ritual in that they do not transform from one emotional state to another.

The research methodology was based on watching people live their lives.  It was conducted in 28 countries and included both qualitative and qualitative research and interviews with sociologists and psychologists.  The results indicate that there are four global rituals:

·         Preparing for Battle – which is all about preparing to take on the world in the morning.  Things like cleansing, fueling (many people use the same mug for their coffee), dressing, war painting and gathering intelligence.  In this ritual, you move from a neutral, cocooned state to a “preparing for battle” or “taking on the world” state.  In fact, 79% of respondents have a sequence they follow every day (96% in China, 64% in Canada) and 82% rely on the same brands every morning (great for brands that are already in that set). 

·         Sexing Up – which is different than preparing for battle, and more like preparing for a date.  It includes actions like cleansing, grooming (often done outside the home at salons, etc.), connecting with friends (sharing what you are wearing), indulging (often taking longer to get ready and using more expensive products) and preening in front of the mirror (remember that scene in Saturday Night Fever when John Travolta was getting ready to go dancing??).   This ritual transforms you from your normal self to your most confident self.   And yes, in case you were wondering, women do take longer to “sex up” than men…90 minutes for women and 32 minutes for men.

Continue reading "Andrew Robertson of BBDO Worldwide on Consumer Rituals" »

Bank of America's Anne Finucane

By Gregory Comolli, Charles Schwab & Company, Inc.

“Nothing short of an economic crisis could keep me from the ANA conference.”  Unfortunately, Bank of America CMO Anne Finucane’s commitment to be in

Orlando

was in fact uprooted by what has been occurring on Wall Street.  Instead of delivering her message in person, Anne spoke to the conference via video and left the Q&A portion to two of her senior leaders.

Anne began her presentation with a brief, yet very sobering, compilation of news clips that summarized the current economic crisis.  “The topic of growth may be counterintuitive in a time like this,” Anne mentioned, “but it is what Bank of America is committed to now and moving forward.”  To highlight this commitment to growth, Anne mentioned their recent acquisition of Countrywide Bank and Merrill Lynch.  While she could not mention the Merrill acquisition in more detail due to regulatory concerns, their purchase of Countrywide demonstrated that Bank of America is committed to helping people achieve the quintessential American dream – home ownership.

Anne next touched on Bank of

America

’s brand positioning, Bank of Opportunity, which launched two years ago and works effectively not only for

U.S.

based consumers but also for those on a global level.  People have always associated

America

with opportunity and Anne gave everyone in the crowd a brief history lesson of this American ideal.  Opportunity is an effective brand platform not only for those

U.S.

consumers but also those who live abroad and may be seeking a new start in

America

.  Positioning themselves as the Bank of Opportunity has led to numerous industry leading stats:  #1 consumer bank in the country, #1 brand recognition among competitive set, 59 million

U.S.

households.

Continue reading "Bank of America's Anne Finucane" »

General Mills’ Mark Addicks on Knowing Your Brand Champion

By Melissa Connerton

Within the competitive, challenging food category, the products that make up General Mills’ portfolio are truly household names – Cheerios, YoPlait, Haagen-Daas, Betty Crocker and many more.  CMO Mark Addicks began by sharing his formula for growing brands, noting that “the magic isn’t the formula but how you practice it.”  A successful formula requires understanding three key areas: developing strong leadership; utilizing marketing scale; and creating and leveraging a community. 

At the center of these, according to Addicks, is a thoughtful, thorough understanding of the “brand champion” – who are you trying to reach? What are the wants and needs of the brand champion? What drives the brand champion to act? Once these questions are asked, insights can be developed, and that’s where real ideas come from.

Addicks believes that “your brand champion will tell you where the brand can go and can help you make it aspirational.  Don’t just look at their behavior – use this behavior to look forward.”

He shared several examples of some of General Mills’ brand champions, from the ten-year-old boy who loves Lucky Charms to the YoPlait-eating woman balancing her roles of business person, wife and mother.  Addicks cautioned that only after the brand champion is determined should the design and method for reaching the consumer be planned, whether it’s through sampling and coupons or YouTube.

According to Addicks, it’s no longer just about reach and efficiency but how many people the company needs to convert. Start by asking how many households you need to buy into your product to make it successful. Once that’s determined, scale efforts to that objective to meet your goal.  As an example, he talked about the aspirational “Where is your Nature Valley?” campaign for their Nature Valley trail mix bars, which encouraged consumers to think about their own special place – their “nature valley.” The campaign was brought to life through several channels, including print, online and finally TV spots.

Continue reading "General Mills’ Mark Addicks on Knowing Your Brand Champion" »

ANA 2008 Annual Conference: Jim Stengel's Lessons

by Lesley Neadel

Jim Stengel kicked off the 2008 ANA Annual Conference with his keynote address, “Five Lessons in Marketing, in Branding, in Life.”

Jim is the former Global Marketing Officer for Procter & Gamble, and imparted the wisdom of his career lessons upon the crowd.  He said, “This is a good time to reflect on the first 25 years of my career, and share my plans for what comes next.”  What comes next is Jim Stengel, LLC, where Jim will seek to be a catylyst and change agent globally, to push marketing to a much higher level of purpose and performance. 

  • Lesson 1: Put people at the center of everything you do.

He shared a quote from former P&G colleague RR Dupree: “If you took away all of our brands, facilities, offices, and just left us our people, we’d build it all back up within ten years.”  The essence was that brands are people – and that it is the collective intent of all of the people behind it that makes a brand what it is. 

Jim also pointed out that at the end of your career, what you’ll remember are the people and the relationships and what you did together, so that’s what matters the most.

  • Lesson 2: Engage your heart and your mind in everything you do.

Jim emphasized the need for balance between heart and mind too, and asked for the qualities that make a good relationship.  The audience helped out with words like honesty, trust, generosity, love… and Jim pointed out that if we thought about these qualities as a part of everything that we do – packaging, branding, media, etc., we’d do and measure things very differently.  Examples that he gave of brands that do this well are Apple, Amazon, and Southwest Airlines.

  • Lesson 3: Focus on results, not activity

Continue reading "ANA 2008 Annual Conference: Jim Stengel's Lessons" »

October 17, 2007

A Consumer Generated...Climate?

Gore2_2 By Kaitlin Villanova

The "post-Gore-buzz" at the Annual Conference seemed to omit a feeling of dissatisfaction from the audience. I overheard one attendee exclaim "he said nothing about the Nobel Peace Prize!" and his cohort proclaim they were hoping he would discuss environmental issues. At this point I wanted to kindly tap these people on the shoulder and remind them THIS IS A MARKETING CONFERENCE!

I think Mr. Gore (we're not on a first name basis just yet) did an excellent job of presenting Current TV and the role of consumer generated content to advertisers. Current TV is solely dependent on participation by consumers so there is no one better to share insights on this subject than the owner and creator Al Gore himself. If anything, I think the consumer created ads for Verizon, Toyota, and Sony might have shook up a few of the agency folks in the audience. Current TV reminds advertisers that all you need to create a 30-second spot is a creative mind, a hand-held camera, and Final Cut Pro!

Mr. Gore eloquently communicated to the audience using pithy anecdotes that shed a light on his sense of humor and some of the incredible life-experiences he has had. From these experiences he was guided to make an impact on society starting with the environment and then onto the most empowered audience: the youth!

I think the "recovering politician" did an exceptional job of reiterating the importance of consumer content to an audience of people who fit the category of "advertising ostriches" (a term dubbed by Lauren Rich Fine at a ANA Senior Marketer's Think Tank), those who stick their heads in the sand hoping when they come back up these new media platforms will disappear!

Thank you again to Al Gore for allowing the ANA Annual Conference be his first public appearance after being awarded the prestigious Nobel Peace Prize . The award was given "for [his] efforts to build up and disseminate greater knowledge about man-made climate change, and to lay the foundations for the measures that are needed to counteract such change." 

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