The HubMagazine #32

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The HubMagazine #32

  1. 1. E x c h a n g e o f I d e a s | September/October 2009 | $10.95 HUB �e M A G A Z I N E A publication of Reveries.com and Cool News of the Day
  2. 2. HUB �e p I Vot p oINt M A G A Z I N E Call & september/october 2009 Response S ome people say that there’s no such thing as new 20 media or old media, that it’s all just media. We now know that this just isn’t so. Old media were just channels through which messages were communicated in hopes of influencing COVER STORY attitudes or, even better, changing behavior. they are starting to look rather primitive compared to Those media can still pack a punch sometimes. But HP Meteorology new media, which are more than just vehicles for our Hewlett-Packard CMO Michael Mendenhall says the future of media calls for blue skies with advertisements and promotions. lots of clouds. An exclusive Q&A interview by Tim Manners. These new media — which are usually (but not necessarily) digital media — are different because they’re all about call and response. 5 Sometimes it’s the brand calling May the old and the shopper responding, while media rest other times it’s just the opposite. in peace. These new media are also ROUNDTABLE different because, while they’re still about the delivery of messages, they are not the neat Being Social and tidy messages of marketing’s ever-present past. The dawn of marketing communications as These new media messages can be upbeat, positive and conversations is here. A discussion featuring Bonin Bough of PepsiCo, Aaron Magness of cheerful, but they can also be angry, negative and mean. Zappos, Richard Binhammer of Dell, Bert In other words, these new-media messages are about DuMars of Newell Rubbermaid and John real people living their lives in the real world, and that’s Andrews of Collective Bias. the real beauty of new-media. Marketing has a problem, and it is precisely this 32 disconnect between what happens in marketing and what happens in real life. It is a gap that new media bridge with astonishing efficiency and effectiveness. Can we measure that? Maybe, maybe not — certainly SUMMIT REPORT not in the traditional sense. But we can count on it to connect with our shoppers in ways we have only begun to Screen Gems imagine. This issue of the Hub is about those possibilities. The convergence of digital media at retail is re-defining the shopping experience. Featuring: Mike Linton, Jim Hood and Andy Austin. By Vince Weiner. Tim Manners tim@hubmagazine.com
  3. 3. editor-in-chief Tim Manners senior editors ALSO Peter F. Eder Jane Harris managing publisher Joseph McMahon 4 COOL NEWS The Storefront Project, Amish Internet and Printcasting. Art Director Julie Manners Design concept 10 R ESEARCH R EPORT The Media Feast | What’s up with media? What’s down? What’s holding steady? An executive summary of a Reveries.com survey. Alexander Isley Inc. Illustrator John S. Dykes circulation Director 12 CASE STUDY Burt’s Buzz | At Burt’s Bees, a culture of caring is both the medium and the message. By Dori Molitor. Bertha Rosenberg brain trust Active International Arc Worldwide 14 EURO RSCG Discovery W H I T E PA P E R Henry Rak Consulting Group Open Up! | Are you up for the challenge of open branding? Hoyt & Company By Alex Do. Insight Out of Chaos Landor Associates McGuinn.com 18 W H I T E PA P E R Marketing Drive Mars Advertising Shopper Marketing Online | Walmart sets the standard for engaging Miller Zell Inc. consumers online. By Greg Murtagh. TracyLocke Triad Digital Media WomanWise 25 W H I T E PA P E R Activating Creativity | Bringing brands to life across channels and disciplines moves people to action. By William Rosen. Hub club Prophet RPM Connect Friends 28 W H I T E PA P E R Digital Bridges | New research uncovers keys to successful digital-media integration. By Jim Garrity and Kerry O’Connor. The Bellwether Group The Hub David X. Manners Co. 107 Post Road East 30 W H I T E PA P E R Codeword: Partnership | Television is alive and well for advertisers who innovate and collaborate. By Cindy Jolicoeur. Westport, CT 06880 203-227-7060 ext. 227 hub@hubmagazine.com n brought to you by the editors of Reveries. 36 com and Cool News of the Day, The Hub W H I T E PA P E R magazine is dedicated to exploring insights, Feeling the Media | Making shoppers feel the love means making the media ideas and innovation as the ultimate drivers feel their pain. By Al Wittemen. of success in marketing. n published bi-monthly since July 2004, The Hub’s circulation is exclusive 38 COOL BOOKS Ripped, The Beckham Experiment and Losing the News. to reveries’ proprietary database of approximately 3,500 senior-level, client- side executives in Fortune 1000 marketing departments and major ad agencies. n Advertising: For more information on The Hub’s sponsorship and advertising opportunities, please contact Joseph mcmahon (joseph@hubmagazine.com) or 845-238-3516.
  4. 4. cooL Ne W s The Storefront Project Amish Internet What started as an “artistic social experiment” has turned into a While other newspapers retreat to the internet, The Budget hip, trendy and successful restaurant. At the Waffle Shop, customers is succeeding by avoiding electronic media. The Budget is no enjoy fluffy waffles and coffee and are videotaped as they discuss ordinary newspaper, though. It is written by, and for, the Amish whatever is on their minds — “politics, society, culture.” community. And it does have a bare-bones website, but it carries “only local news briefs.” Located in a lively Pittsburgh neighborhood, the Waffle Shop is “part of an advanced undergraduate course at Carnegie Mellon That’s because of the newspaper’s writers, “known as scribes, called the Storefront Project.” feared their plainspoken dispatches would become fodder for entertainment in the ... non-Amish world.” The idea is to “develop a concept and take it out into the community to see how people react and interact.” And so students created Staying offline turned out to be a good move, as the newspaper The Waffle Shop, as part restaurant and part reality show, in what “solidified its steadfast fan base,” continuing a tradition dating back was supposed to be a two-semester project. to 1890. The Budget began “as a series of letters swapped among Amish families who had dispersed across the Midwest,” and in some ways hasn’t changed all that much. While the paper’s local edition, published in Sugarcreek, Ohio, is written by a paid staff of twelve writers, its national edition is filled with contributed letters, faxed or mailed in by unpaid scribes. These letters sound uncannily like Twitter feeds: “Supper and singing were held at our house last night, so have been busy this morning getting dishes away and house in order,” for instance. And: “We’ve had some nice rain the last few days and the grass is greening up nicely.” “People call The Budget the Amish internet,” says Keith Rathbun, its publisher. “It’s non-electric, it’s on paper, but it’s the same thing.” Business is good enough that The Budget plans to hire a couple of more reporters. [S o u r c e : Meghan Barr, Associated Press, 8/17/09] Printcasting “All my assumptions about print were wrong,” says Dan Pacheco. “Advertisers wanted to be in print, and young people are interested in magazines.” Dan first realized this after creating a website about But it has proved so popular that it is now in an extended run, with the local music scene for the Bakersfield Californian newspaper: extended hours. Originally, the Waffle Shop was purely “a night- “Advertisers kept asking him when the magazine was coming, he owl hangout drawing a generally young, hip and vocal crowd.” said, because they preferred to appear in print.” But now it’s open for brunch, too, and is also “attracting many families, people from the neighborhood and curious passers-by.” So, now, Dan is pioneering a new kind of magazine that “lets readers pick which articles they want in their magazine and then In a new twist, the Waffle Shop’s manager, Dawn Weleski, listens print it themselves.” to internet news feeds via headphones and then repeats the news so customers can hear, with videos of the novel newscast carried The enterprise is called Printcasting, and since its introduction live online at waffleshop.org. The site also now allows “users to last March, it has spawned some 250 magazines. sign into Facebook and Twitter feeds and talk back to the talk shows.” The concept takes “advantage of advertisers’ willingness to pay as Jon Rubin, the professor who runs the Storefront Project, is now much as 40 times more for print ads than for online ones — while it looking at various business models to make the Waffle Shop removes the costs of paper, ink, printing presses and a pavement- permanent, either as a for-profit or not-for-profit venture. pounding sales force.” [S o u r c e : Adrain McCoy, the Pittsburgh Post-Gazette, 6/29/09] Printcasting keeps 10 percent of revenues, gives 30 percent to writers and 60 percent to publishers. The venture “is backed by an $837,000 grant from the Knight Foundation’s program to find Cool News of the Day, a daily e-mail newsletter of marketing insights, digital models for local news.” ideas and inspiration, is edited by TIM MANNERS. For a free subscription, visit www.reveries.com [S o u r c e : Claire Cain Miller, The New York Times, 7/20/09]
  5. 5. roUNDtAbL e The dawn of marketing communications as conversations is here. Being Social What are the greatest Now, it’s like you’re buying from that’s still most untapped — is a friend, and you know they’re on the customer service side. opportunities in your friend because they have a Customer service is the Holy Grail social media? personality and they tell you what of social media because building they’re doing. customer relationships is all Bonin Bough: The opportunity about service. is to move from impressions to They show you what it’s like to connections, and from campaigns work inside their company and If a consumer is having a problem to conversations. We have an that’s where the real value comes and you can help them proactively, in. It’s really about breaking down that’s a huge word-of-mouth opportunity to be closer to the that barrier of customer versus builder as well as a big benefit A customer than ever before and to co-create and react to the customer corporation, and allowing people to both the consumer and the R oundtAble like never before. to interact with other people. brand. For example, one of our F eAtuRing The double-edged sword is that Bonin Bough pepsico if we treat digital like any other communications channel, then we The opportunity is to move from miss the value of it as an enabler impressions to connections, and from Aaron Magness Zappos.com across the business. Then we want to plan against it and carve campaigns to conversations. Richard out specific opportunities to use BON i N BOugh Binhammer it. You can do that, but that’s not Dell the largest opportunity. It can provide real-time customer insights Bert DuMars Richard Binhammer: The best garage organization products had a and trends that are valuable for Newell rubbermaid opportunity is to listen, learn manufacturing flaw and we found research and development. and engage directly with your out about it through a negative John Andrews Aaron Magness: The greatest customers, but also to share product review on our website. collective bias opportunity is to form more of a information. We have had product We had a product manager contact personal relationship with employees, ideas come forward that we’ve the consumer and quickly had the partners, customers and everything implemented, such as becoming product replaced. We took someone that goes along with that. You’re part of Product (Red). We’ve who had a bad experience, turned really able to get out the true voice engaged with customers online, him around and he was thrilled. of what your company is and that solving problems, learning about So, we see social media as a way allows people to form a stronger their experiences and improving to solve problems through the relationship with you. business processes as a result. customer service organization to a It’s not like the old days of buying Bert DuMars: The greatest point where it’s just the way we do from a faceless corporation. opportunity — and it’s the one business here. september/october 2009 tHe HUb 5
  6. 6. John Andrews: The biggest You can either be part of it or you DuMars: One big issue is changing opportunity in social media is to can be against it. If you’re against the metrics, which also ties in with build a collective conversation it, it’s going to have a pretty incentives. You need to discern between brands, retailers and adverse effect. So, it’s really about how much time should be spent on consumers. Done correctly, social embracing it and embracing the the channel and how to measure it media is now activating consumers transparency that goes with it. to show that it’s delivering results. as part of the brand management Another big key is integration You shouldn’t have a lot of process in a real and authentic way. of social media with traditional reasons not to be as transparent marketing campaigns. That’s been done at some point in as possible or embrace these tools the past where consumers did focus that allow people to communicate. So if you’re doing TV commercials, groups or surveys, but this is a You should want to communicate radio or print or any other mass longer-term activity where you’re with your customers and external media, integrate that with your actually building a community partners. That’s where I hope social media efforts, and vice that has an affinity for your brand. You are building a longer-term relationship with that community and including that as a standard part If you look too hard for a return-on- of your brand management process. investment on social media you’re going to lose the authenticity of it. How must organizations A A RON M AgN E S S change to realize social media’s potential? more businesses understand the versa. It amplifies the social media Bough: You need to take an potential impact of social media. effort and also ties into your mass integrated approach. First, it means media effort, so they start working rethinking internal process, which Binhammer: Dell’s interest in together to benefit each other. is everything from policies and being directly connected to our guidelines to encouraging outward customers has always been part of The one other thing — and this conversations across your entire our corporate culture. So, social is really difficult — is showing employee base. media is just a new tool to deploy that your brand cares. A lot of in doing that, and in a lot of ways traditional marketing is about The next piece is integration. How it’s a more effective tool. getting the message out. When do you integrate divisionally? you add the social media side to it, Where do customer relations in For example, a conversation could it’s about people; it’s about people this world live? Where does public be going on at Starbucks right now caring. So, how do you show that? relations live? Where does marketing in Minneapolis between two Dell That’s another key success factor. live? How do they build more of an customers and I haven’t a clue ecosystem than just a channel? what they’re saying. On the other Andrews: You have to immerse hand, a conversation can be going yourself in it. The biggest mistake The third piece is changing the on between two Dell customers on is just taking the standard way that we measure the success of Facebook or Twitter and I know approach you’ve taken with marketing programs. exactly what they’re saying. traditional media and adding it to Magness: Organizations need to the space. Social media is not just But those aren’t necessarily realize that people are going to a new communications vehicle to changes in the organization; be using these tools anyway. Your layer traditional tactics on top of. they are changes in our ability to ability to dictate your brand to It’s not just a PR vehicle either. listen, learn, engage and connect the consumer is long gone and in What’s different about social media with our customers. I see it as an actuality the consumer is telling is the participation. organization deploying tools to you what your brand is. Not only increase those opportunities to be The first thing that I had to do was are they telling you, they are also able to connect and take advantage to learn how people communicate telling all their friends. of the information that’s out there. and influence one another in 6 tHe HUb september/october 2009
  7. 7. Customer service is the Holy Grail of building that’s really the focus of most brands at this point. The social media because building customer next step is to get them excited relationships is all about service. about our brand and then go to Walmart or Target or any one of BE RT Du M A R S our retailers and purchase them. We have to have metrics all the communitites. I involved myself trying to have today’s Facebook way through the process of in communities that had nothing update or today’s “tweet” from interest, excitement and brand to do with me, or my message, 450 of our employees turn into an love. Once we have them excited, but just as an active participating immediate sale. we need to be sure we then get member. That helped me learn not them to a place where they can What we are really trying to do is buy our products. only the pathways but also about form that lasting relationship. If the relationships that are involved Andrews: We’ll start with very you look too hard for a return-on- in that. simple metrics, such as: What kind investment on social media you’re going to lose the authenticity of it. of 30-day conversation is there on How can results of We focus more on forming good Twitter? Then we set up some kind social media efforts relationships as opposed to trying of messaging baseline: Where does our core messaging response with be measured? to get the most out of today’s sale. consumers exist today? Binhammer: There’s always this Bough: We do something called great question about the return-on- We look at a grid of the “brand health measuring,” where investment. My point is this: What’s competitive set and where we we have a set of metrics that includes the business objective? Business want to end up, agree on which everything from impression data to objectives vary across the business, metrics we want to track as share-of-voice. We also look at the so there is no single ROI. Once you forms of success. We need to frequency with which customers understand your business objectives, move away from the traditional want to have relationships with us then you can go and measure. metrics of traffic, because traffic and how they want to have those isn’t very valuable. I would rather relationships. You’ve probably seen the stories have a thousand high-quality online that Dell has done two engagements than a million hits. Anecdotally, we know there is million dollars on “DellOutlet” on value that’s moving the needle. Twitter. Is Dell’s objective in social Ultimately, we want to connect What we all struggle with is how to media being reached? Absolutely. with shoppers and drive that measure that movement. We start We moved a few million dollars connection to the shelf. We’re by trying to align with traditional of product and did so faster and working with a couple of retailers metrics that we do understand — better and more efficiently than we on experiments on a social version impressions, share-of-voice, and would have otherwise. of the circular that activates those kinds of basic things. communities around offers. Since we became involved in social Then we look at a series of media in early 2006, we’ve also comparatives versus our seen significant change in sentiment What is the most competitors as well as “gold towards Dell. When we first started surprising thing standard” programs from outside out, 50 percent of what we saw you’ve learned about our competitive set that may help online was negative, whereas today us improve our effectiveness. social media? it’s below the 20 percent mark. But Magness: A million and one that’s a very different business Bough: The most surprising thing companies and consultants are out objective and a very different is how empowering social media there who will tell you that if you business result to measure. is as a movement. It has the ability pay them enough they’ll be able DuMars: Today, it’s all about to be bigger than just, “hey what a to measure results. What we look tonality; it’s the positive brand great thing it is for marketers and at is more directional — we’re not awareness and the positive brand customers to be able to talk.” september/october 2009 tHe HUb 7
  8. 8. t HoUGHt L e ADer s For example, we are a huge in interacting with you on all supporter and sponsor of the kinds of levels. BlogHer conference. I walked into Out of the blue, I’ve had customers this conference and there were tell me that they’ve been - 2,000 of the world’s most influential customers for years, that they are online women sitting in a room. looking at their next Dell purchase BONIN BOUGH is the global director of digital and social You could feel the amazing power and ask for my recommendations. media at PepsiCo, where he that they have in terms of what That’s reassuring, nice to know oversees digital strategy and the they are doing to change society. and fun to interact with. implementation of social media It’s pretty exhilarating when you tools and techniques. He formerly DuMars: I’ve been surprised think about how digital media is was with Weber shandwick and by how integrated social media redefining society. ruder Finn Interactive. becomes into what I do. I’ve had Magness: The most surprising conversations on Facebook, Twitter AARON MAGNESS heads thing about social media is and LinkedIn that have continued marketing, public relations, how quickly businesses try for the last year or two. I learn a social media and business to bastardize it and make it lot from them and I’m assuming development for Zappos.com. more about how many fans or they learn a lot from me. It’s not He is a graduate of the University of Wisconsin and survived followers they have as opposed to just a broadcast tool. the running of the bulls in really forming relationships. I’m I’ve also been surprised to learn pomplona, spain. surprised at how quickly people through social media how artists lose sight of that. use our Sharpie pens, doing things RICHARD BINHAMMER leads I think they are losing sight of you would never have thought. digital media outreach and blog where the real value is, which is in Some are actually taking white response, with special emphasis on communities and corporate forming these lasting relationships. Ferraris and doing Sharpie artwork reptutation for Dell. He has also held corporate communications positions with Golin Harris and The most surprising thing is how Fleishman Hillard. generous communities can be and how BERT DUMARS is vice president, welcoming they are to brands. e-business and interactive marketing for Newell Rubbermaid. R iC h A R D Bi N h A M M E R previously, he was director of the electronic tax Administration for the Irs, and held marketing positions with Dell, Intel and Our CEO, Tony Hseih, said, “So all over them. They’re beautiful, Learning tree. many people are trying to be but I never thought anyone would interesting as opposed to being modify a $300,000 vehicle with a JOHN ANDREWS is managing interested.” That is just so spot on. Sharpie pen. director of collective bias at Binhammer: The most surprising But those are the things that you Mars Advertising. He previously thing is how generous communities find out about when you engage in was responsible for social media, community, mobile and in-store can be and how welcoming they social media. You find out about media for Walmart. He can are to brands. I would have the really cool and the unusual be reached at johnandrews@ thought people would want to be things that people do with your collectivebias.com. left alone or not want Dell to be products. We are finding out that part of their communities. there are whole new markets out there for us. But, in fact, as long as you’re genuinely interested in engaging, Andrews: As soon as you launch listening, learning and participating, a digital campaign it begins to people seem to be a) interested in change, so you better have a having you around and b) interested flexible plan. You build guardrails 8 tHe HUb september/october 2009
  9. 9. and stay within a certain place interact with customers and answer I thought that was great. It showed but no matter how much you questions are doing the best job. that they really valued their fans, plan, it will change the moment who had built up this great base of Transparency, collaboration, you launch it. People are going to consumer love for the brand and communication is really what it is approach it in their own way. they were willing to take the risk of all about. Twitter is one way to do letting their consumers control it. That’s why building long-term that, but the one thing that gets communities helps you be a little overlooked the most is the phone. Giving that control up is a big more predictive about what those step for a brand, especially like I think Zappos does an incredible changes might be. When we Coca-Cola. job in social media over the launch programs, we’ve already telephone. You’re talking to real Andrews: I admire Zappos, where spent three months talking to people, employees of Zappos.com, everybody in the company is someone in the community about and they’re there to help you. encouraged to interact with what those things are. We’re just trying to get that same customers in the social space. This goes back to allowing your community to share in the branding process. You get better ideas that As soon as you launch a digital campaign way. By the time you launch, you’ve got some people who take it begins to change, so you better serious ownership because they have a flexible plan. feel like they helped build it. So, they want to talk about it. JOh N A N DR E WS Who is doing the cultural commitment that we have Zappos really lives this idea that best job with social on the phone and apply it to these we’re all the brand. In a short media and why? various tools. amount of time they’ve built a company in a pretty competitive Bough: I love some of the work Binhammer: It’s really our space. I don’t think we have a that we’re seeing done by the Ford customers who are doing the best shortage of shoe retailers, but folks. I think the Ford Fiesta job with social media. In many they’re evidently worth close to a movement is genius. Dell is selling ways it is like having a customer billion dollars. millions of dollars’ worth of product in the halls of Dell everyday. If I’ve over Twitter. Wow! I also love been on Twitter for 20 minutes and From a retail standpoint, Walmart what John Andrews did at Walmart, then go into a meeting, I know is doing a very good job. They where he created a real value what our customers are saying. had a big presence at the recent exchange with mom bloggers by BlogHer conference. It’s less about Other people, smarter than me, providing them with exposure. marketing right now and more have certainly equated social media about learning. It’s impressive that If digital lives just in marketing to the concept of a village because an organization as big as Walmart as a marketing channel, then it it closes that communication gap. is sending people to events like fails to capture the power of the Using technology is now like being BlogHer. organization, which is everything back in the village of 1800’s where from strategic planning to R&D to We have a great opportunity in everybody knows everything, just innovation. this space. I’m a big Mad Men by walking down the street. fan and feel like it’s 1950 and All the folks who are thinking DuMars: Coca-Cola looked at what television has just been invented. about how we game-change our a couple of Coke fans had done on Who’s going to be like P&G and business should be thinking Facebook — they built this fan page immerse themselves in this around digital alongside us. That’s up to three million fans of Coca-Cola. medium, blow up old models the integration that we’re driving. Coke had the legal right to take back and capture everything that Magness: Businesses that are really the page, but instead chose to let digital could be? That’s a pretty utilizing social media as a way to these two guys to keep running it. cool opportunity. n september/october 2009 tHe HUb 9
  10. 10. re se ArcH rep ort What’s up with media? What’s down? What’s holding steady? Google, Bing, Twitter, Facebook, CNN, The New York Times ... for this Cool News survey, we asked readers whether the ability of various media brands to build national brands appears The Google Media favorable, unfavorable or neutral these days. Google scored highest (82% favorable) Favorable 82.4% and MySpace the lowest (50% unfavorable) Unfavorable 4.7% in our survey. That’s not terribly surprising. Google also scored the lowest unfavorable (5%), Neutral 12.9% followed by YouTube, one of its acquisitions, at 6%. “If building traffic to a brand or its marketing Don’t Know 0% initiatives can help build a brand, there are No opinion 0% few more powerful tools than Google,” said one survey respondent. “More utility than a medium, but indispensible the way that a water main is to Bing an urban center,” said another. Our survey was taken shortly before the Favorable 17.2% Microsoft-Yahoo deal was announced, but neither of the new partners finished particularly Unfavorable 8.9% well. For Microsoft’s Bing engine, the result was no doubt affected by its newness, with 66% Neutral 32.0% rating Bing either “neutral” or “don’t know.” Don’t Know 34.3% The big issue for Bing is weaning people off of Google: “I have used Bing and like it, however No opinion 7.7% I still return to Google for most of my search work,” a reader wrote. Like Bing, Yahoo scored highest on “neutral,” at 44%, with “favorable” at Yahoo! 33% and “unfavorable” at 18%. Perhaps more surprising is how well The Favorable 32.5% New York Times fared (66% favorable). The Times Unfavorable 17.8% certainly has its business-model challenges like every other newspaper, but there seems to be a Neutral 43.8% certain reservoir of good will toward the publication. Don’t Know 3.0% On the other hand, a number of respondents No opinion 3.0% said the paper is hurt by a “liberal bias.” As one reader put it: “Agenda-driven news outlets do not make a good news brand.” Twitter The political flavor of some of the responses was striking, and it came from both sides of the Favorable 47.9% aisle. “Steve Forbes is the closest thing America has to a fascist 19th century robber baron, and Unfavorable 24.9% it’s reflected in the book’s editorial,” a respondent Neutral 21.3% wrote, referring of course to Forbes magazine. Even the mighty Google was not immune Don’t Know 4.7% from such attacks: “China, censorship, big brothering ... not cool,” a reader commented. No opinion 1.2% 10 tHe HUb september/october 2009 tHe HUb september/october 2009
  11. 11. Feast The New York Times CNN also took its political lumps, although it fared reasonably well, garnering a 51% “favorable” and 20% “unfavorable” response. A few took issue with the quality of its reporting. “Can’t stand the repetition of the same old stories,” a reader complained. Our readers continue to take Walmart to task — in this case, Walmart.com, with “favorable” Favorable 66.1% at just 35% and “unfavorable” at 24%. This contrasted dramatically with Target.com, whose Unfavorable 14.3% “favorable” score, 62%, was one of the survey’s highest, and its unfavorable, 8%, one of the lowest. Neutral 17.3% It’s a curious result, given Walmart’s Don’t Know 1.8% extraordinary marketplace reach versus Target’s cheap-chic challenges in a depressed economy. No opinion 0.6% Many questions remain about Facebook (58% favorable) and Twitter (48% favorable) and their potential abilities to help build national Walmart.com brands. LinkedIn did better than either, with 60% “favorable,” perhaps a function of its appeal Favorable 34.5% to our business-oriented readership. Unfavorable 24.4% Despite its relatively high “favorable” rating, Facebook faces questions. Some expressed concerns Neutral 29.2% about privacy issues while others were conflicted about its value as a medium for marketing. Don’t Know 6.0% However, others credited Facebook for its No opinion 6.0% ability to build fan clubs. Twitter’s strong suit seems to be its potential as a customer service tool. But there are still Target.com plenty of folks who think both Twitter and Facebook are a waste of time. Twitter, especially. Favorable 61.9% Some of the Twitter-length comments were particularly amusing, such as: “The capability Unfavorable 7.7% to assist in the building of a national brand Neutral 19.0% encumbered by a 140 character limit is an interesting one. Few have the discip …” And, Don’t Know 8.3% ironically: “How can anything with only 140 characters communicate in a logical, meaningful No opinion 3.0% manner? It cannot.” Respondent pRofile Clear Channel Radio A total of 170 survey respondents included Favorable 12.9% agencies (24%), brand marketers (24%) and consulting firms (18%). Twenty-five percent Unfavorable 26.5% worked in packaged goods firms, 12% in media/ entertainment and nine percent in retail. A majority Neutral 28.2% were senior-level executives with 78% reporting Don’t Know 21.2% more than ten years of experience in marketing. No opinion 11.2% Survey Results: http://hubmagazine.com/survey/eating_media september/october 2009 tHe HUb 11 september/october 2009 tHe HUb
  12. 12. c A se s t UDY Burt’s Buzz W e marketers spend a lot of time talking It’s a culture that says, “we care.” We care about about this medium or that medium, our family, friends and business associates. We care especially these days. In fact, it’s hard about public policy issues. We care about the brands to go anywhere — either in business or we use. We care enough to show up every day — in in personal life — without being asked some cases every five minutes — and speak our minds. if you’re on Twitter and Facebook. The question is, do we, as marketers, care as This is all great and certainly very exciting. But it much as our consumers? Certainly many of us do, tends to skip over what matters most, and that is but just as certainly some care more than others. creating a culture of shared values with our consumers. My point is that those companies that care the As I look across the many Facebook fan pages and most — that have a culture of caring — are most likely Twitter posts, I see huge potential to create the kind of to see the most success with social media. communities promised by these new social media. It’s What is a culture of caring? I immediately think of Burt’s Bees, the personal products company. At Burt’s, a culture of caring permeates everything they do — in At Burt’s Bees, fact, “we care” is their company’s mantra. Its culture of caring encompasses its products, packaging and a culture of caring is both facilities. It extends to its suppliers and, most important, embraces its employees and ultimately its consumers. the medium and the message. So extreme is the culture of caring at Burt’s Bees that some might look at it and conclude that it is an anomaly, a product of some crazy ‘60s hippie sensibility that doesn’t pertain to many other companies. There’s amazing to see the passion and excitement from so no denying the obvious countercultural roots at Burt’s many consumers about the brands they love. Bees, but to dismiss it as radical to the point of However, I also see a lot of old-school attempts irrelevant would be a mistake. at fitting into this new kind of communication. I see True, Burt’s Bees may be different than your Facebook fan pages that are really nothing more than company because it has a single product line, which advertisements and Twitter posts that amount to might make it easier to build the kind of culture it nothing more than 140-character promotions. has. But the fact is that every enterprise has a culture This is obviously a huge missed opportunity of one kind or another — and a choice as to what kind because as most of us well know, these new media are of culture that is. about conversations, not commercials. This is nothing Like every other company, Burt’s Bees has values, new — it’s part of internet culture, which has always a vision and a mission statement. It has goals and been resistant to commercial interruptions. objectives, both long-term and short-term. It measures It also suggests that many brands have more work its progress against those goals and objectives and to do than they think when it comes to getting the offers employees incentives to achieve those goals. most out of social media. Twitter and Facebook may It communicates with its shareholders, its fade over time, or even go away, but the culture that employees and its consumers. It has an image and a makes them so wildly popular is here to stay. marketing strategy to build its brand equity. In short, 12 tHe HUb september/october 2009
  13. 13. Merging Strategy and Culture Mission Vision Goals/Objectives Strategic Thrusts Reinforcing Systems Behaviors Values the framework of the company Cultural Social media is, in fact, a part of is no different than that of any other the mix for Burt’s Bees, but they aren’t company. In most ways, it’s a very Way just jumping on it because it’s the latest conventional company. cool thing. In many ways, it’s old hat for them. Source: The only difference is that it chooses The culture of social media — the Burt’s Bees to care about certain things — like using openness, dialogue, creativity, the sense of natural ingredients, minimizing its carbon caring — is an exact fit with the culture at Burt’s footprint and not testing on animals, for instance. Bees, and at least generally the way it’s been from Above all, it chooses to care about the wellbeing of its their beginning. Jim stresses that it’s a journey, people, both those who work for the company as well though, and that getting things right is still very much as those who purchase its products. a work in progress. Burt’s Bees is also very clear and strong about But it’s paying off for Burt’s Bees, at least for now. its choices, which has big implications for how it is For the most recent year reported, ending June, 2008, perceived in the marketplace. I recently spoke with the company grew by 18 percent, while reducing its Jim Geikie, General Manager, International, at Burt’s waste to landfill by 50% and energy consumption by Bees, who said that it is the company’s clarity of seven percent. purpose that defines the brand. Burt’s Bees lives and breathes a culture of caring, “When you’re very clear about what you are and which naturally results in growth, even during this aren’t, it ends up being a magnet for consumers and recession. also employees who share those points of view,” he Now that’s something to Tweet about! By the way, said. While Jim does not lead marketing, he observed you can follow me on Twittter, @WomanWise. n that this changes the way Burt’s Bees communicates from a marketing standpoint. “It comes down to push marketing versus pull DORI MOLITOR is founder and ceo of marketing,” he said. “We don’t push our marketing on WomanWise LLC (womanwise.com) a Watersmolitor company, a hybrid people. It’s all pull — public relations, point-of-sale in consultancy-agency specializing in the retail environment, product education and training marketing brands to women. Dori can be on the web. We’ve started to do some print advertising reached at dmolitor@womanwise.com in the past year, but for the previous 25 years we hadn’t or (952) 797-5000. done any. And no television.” september/october 2009 tHe HUb 13
  14. 14. WHI t e pAper Open Up! By Alex Do l A n D o r A S S o c i At e S O pen source, open access, open standards, open architecture — all are part of why so many have fallen in love with Facebook, Firefox, WordPress, and — I’ll say it because everyone else is saying it — Twitter. They’re all flexible platforms, invite user opinions, and enable co-development and co-creation to varying degrees. The “open web” and its underlying set of Can brands be fluid, free-flowing, flexible, and technologies have indeed made a big impact on how yet still consistently stand for something compelling, we interact and engage with online properties, sites, differentiated, and relevant — the key tenets of a social networks, and the like. strong brand as we know it? Okay, “open” may be one of the most overused — Brands can and, in my opinion, should. And I if not abused — buzzwords in the digital space right think consumers want to see brands open up and alongside Web 2.0. But few would disagree that it want to participate more actively in user communities. is a catalyst for changing the way businesses think Consumers today are more skeptical and less trusting about soliciting feedback, understanding consumers, of corporate businesses and are hungry for personalized interacting with users and prospects, collaborating on experiences. innovation, and more. Inviting them into a community of like-minded Let’s start with how “open” is defined for the individuals is a great way to regain their trust. In other computer software field. From Wikipedia in June words, to resonate with today’s consumers, marketers 2009: “The source code and certain other rights can’t rely on the same old tricks. normally reserved for copyright holders are provided This wouldn’t be an opinion-piece without a to the public, which is permitted to use, change, public challenge, so I’m challenging the world’s and improve the software, and to redistribute it leading brands to explore various degrees of in modified or unmodified forms.” For a business, openness, and how it can offer a more valuable and perhaps the proper angle from which to appreciate certainly more provocative platform for interactions, “open” is either from a technology point of view — communications, and true relationship building. what is feasible? Or from an economic point of Here is a series of what-if statements for you to view — what is made easier, or more affordable? consider. (Note: “user” is defined in the broadest But what about brands? How about an open sense — anyone who has any interaction with a brand, brand? It’s hard to imagine how “open” could be but is not necessarily involved in a transaction.) applied to the branding world, which is more about WHAT IF brands enabled users to modify a centralized control, strict guidelines, and carefully brand, product or service, take it apart, put it back crafted brand communications — far from open. together in unexpected ways, and offer it back up for The challenge for marketers is negotiating public consumption? the battle between two important and competing WHAT IF brands provided for those possibilities advantages: control (traditional methods) and above and balanced them with some guardrails — a customer participation (open methods). baseline of parameters, controls, limitations to 14 tHe HUb september/october 2009
  15. 15. Are you up for the challenge of open branding? account for taste levels, cultural nuances, biases? web brands are doing this well: Web 2.0 brands like WHAT IF brands enabled users to create their Facebook, Twitter, and Amazon.com, and open-source own future, describe what cannot be seen, and brands like Linux and Mozilla. And both seem to encouraged them to be active innovators? be more successful and faster growing than their WHAT IF brands truly (and I mean, truly) traditional web competitors. welcomed what users had to say beyond feedback Going forward, marketers need to focus less on and suggestions, openly inviting user opinions and who’s in control and more on (1) ways to invite users committing to implementing viable user ideas? into a meaningful experience and (2) ways to engage WHAT IF brands respected people and their community interactions. But how to do this is the identities outside of their domain? Said differently, challenge. what if you “owned” your profile on Facebook, what While open-source brands and Web 2.0 properties if you “owned” the rights to your user credentials on are inclined to facilitate user communities by the very Gmail, and what if you controlled your profile as a nature of their business models, other companies, Safeway Club cardholder? such as consumer packaged goods, e-commerce, media/entertainment, and manufacturing, find it th e ne w Rol e foR MaRketeRs more of a challenge to figure out how to build a Digital has changed marketing and branding, community of users. period. The role of the brand manager has changed, and the role of the brand has changed even more a new BRand Model dramatically. Gone are the days when marketers tried There is no single model for an open brand. A to obsess over and micromanage outbound messages company’s approach to open branding should be in attempts to control perceptions. based on its business model, market strategy, and its Today, to keep pace with consumers, many customers’ appetite for community engagement. Here successful brand managers have shifted the way they are a few common approaches that can be found in the engage with consumers — from acting as manager marketplace today, though certainly many others exist. to becoming a facilitator. They see that consumers Open to ideas: Soliciting feedback about existing welcome a world, more specifically a “community,” products and services or improvements (future of participation, co-creation, and constant scenarios). For example, Starbucks launched its dialogue — and this is the way of the future. Mystarbucksidea.com site as a virtual suggestion box For brands to facilitate a community of users of sorts. effectively, it is imperative that companies open Users can submit ideas to the Starbucks team but themselves up. By that I mean companies need to also make their submissions viewable by the community encourage users to be more actively involved in their of users. Community members get to rate submissions business activities — whether helping ideate future so the best ideas rise to the top; it’s then Starbucks’ offerings, evolve existing ones, or provide feedback job to ensure top suggestions get implemented. across the board. In many ways, this is a democratic way of The key to success is understanding your core innovation and business improvement and has a users and then arming them with the tools they need direct impact on brand perceptions. Most important, to be active. One of the biggest benefits of building it’s a way for companies to listen to the voice of a community is that you’ll gain a considerable the consumer. amount of customer intelligence — from feedback and ➜ Good for companies that are set up to implement observed patterns in user behavior to a stockpile of changes and improvements quickly and cost-effectively. user-generated content and insights. In fact, some brands have successfully managed Open for me: Providing tools for personalization to integrate their consumers into their business and customization (remixability, open architecture). strategies and activities. No surprise, two types of For example, the NikeiD program has given online september/october 2009 tHe HUb 15
  16. 16. An Open Exchange I recently wrote an entry on Landor’s blog titled gain and increased brand equity. I don’t feel like they “open branding” (www.landor.com/?do=thinking. reALLY care about their consumers’ opinions, except blog). In it, I discussed how open a brand could where they can boost the bottom line. be and how effectively a company could integrate In the service of full disclosure, I must admit this customers into its key business activities. is a skepticism born of being a designer and design my blog post, similar to this article, encouraged com- strategist and thus part of the industry that creates panies of all sizes across various industries, to explore these open, faux-public-embracing brands. what it would be like to be an open brand. truthfully, business is business, and capitalists want to make the picture that I painted was utopian and could be money—but I keep getting this sneaking feeling that somewhat difficult for most brands and businesses to put if they “get their hands on” the lovely idealism of in place. readers of my blog echoed similar sentiments. open source ideology, they’ll pollute and ruin it. Comments (3) We’re in an exciting and perhaps time-limited period n Aaron Templer. this is contextual, no? Great where the people have the power. open source ideas thoughts for some business models and under some are vibrant and pushing technology and thought in all strategic contexts, but certainly not all. the first sorts of great directions—and for the most part, it’s example of this that comes to my mind is a law going so far because it’s a labor of love for the people firm. opening a brand like that could open doors of involved. I really worry about mixing this with the misconstrued as solicitation or legal advice proffered ulterior motives inherent in old-school, traditional from the firm, which could put them out of business. business and branding. Just makes me nervous. but great thoughts for a thursday morning! n @ryanmilani. Great overview of the open culture n Annie Smidt. When it’s a brand, I suspect use of we’re moving into. I’d also throw open Government “open” paradigms as attempts to sell more rather than into the mix as well. It’s interesting to see how people playing fair in a give and take exchange. When a sneaker talk about brands and how brands are each uniquely company lets you “design your own” shoe or a company adjusting to the open culture. /brand twitters or facebooks to solicit ideas and We’ve built a twitter app called openbrands.org that feedback from customers and potential customers, I funnels conversations around brands into channels. If don’t get the same warm fuzzy feeling that accompanies you’re reading this, then you might find it interesting. interacting with individuals (not brands or companies) who blog or tweet or release open source software . . . . because they are passionate and authentic. my simple response to these comments is that I I feel like, for the most part, companies that open up, agree. It’s a big challenge for all brands out there. and even allow some consumer-driven morphing of but, I’d argue that for most companies, the benefits their brand, are just doing it for, ultimately, financial are too compelling to ignore. shoppers a way to personalize their athletic sneakers. IBM ThinkPlace is a site where customers At the end of the day, it’s still a pair of Nikes, but (external to the organization) can generate new ideas, customers can take pride in some customizations that whereas IBM Innovation Jam is a destination for they’ve made with their purchases. employees to participate in the innovation process, ➜ Good for companies that are willing to modify irrespective of their roles in the organization. existing products and services in a modular way. ➜ Good for companies that have a structure in place for taking new ideas from a wide range of sources Open to collaboration: Inviting users in to help and seeding them for further consideration. reveal new product or service opportunities (co- creation). For example, IBM has two programs in Building on open: Enabling a platform for users place that invite users into the innovation and ideation to drive content creation (prosumer/crowdsourcing). process early on in product development — where ideas For example, Lego Mindstorms is a community built are still half-baked, even before a plan is put into place. around creation — that is, the creation of robots. 16 tHe HUb september/october 2009
  17. 17. It encourages its users, either individually or in monetization, increased efficiencies, higher groups, to create the smartest, strongest, and most engagement, etc.? advanced Lego robot ever. And, it’s less involvement 5. Put into operation your strategy and approach than you might think; the innovation can occur in (e.g., get management buy-in, define key program less than 30 minutes. and support teams, document processes). ➜ Good for companies with high market-share and few competitors that compete directly with existing 6. Manage internal adoption, processes, and risks. product lines or service offerings. 7. Create tools for communities to use as they Open book: Being transparent, as much as participate in the brand-building process (e.g., appropriate, with business plans, processes, and enable feedback to be easily submitted, enable operations. For example, American Apparel has well customized experiences, provide content and documented details of its operations and business widgets). matters on its site — the good, bad, and not-so-American. 8. Use the technology, channels, social media American Apparel provides a glimpse into its outlets, and custom-built online environments manufacturing plants, highlights highly debated that are right for your approach. topics such as immigration hiring practices, expresses its point of view on gay rights, and more. It even 9. Facilitate your community and its ongoing includes links to bad press and offers its own dialogue, which takes significant investment perspective. For the most part, it’s an unfiltered and and commitment (e.g., start conversations and unapologetic look inside the company. facilitate the participation and content, both user- ➜ Good for companies that are highly visible in generated and brand-driven). the marketplace and constantly under the microscope. 10. Track, manage, refine, and continue to keep it A good way to beat the press, potential critics, and fresh and lively (listen and learn). speculators to the punch. Also, a great way to connect with supporters. th e Ch a l l e nge te n st e p s to an open BRand Businesses need to focus on ways to facilitate the right dialogue and interactions with users to If you’ve got an experienced team, a solid budget, drive business value. If brand managers can focus on and an appetite for innovation, you can create an developing tools to involve consumers in key business open branding program that engages your customers activities instead of focusing on more traditional in an entirely new way. marketing methods, they will be rewarded with an Be aware that implementing an open branding active community of fans and evangelists. initiative as a standalone project — without mandate, Open branding programs can be the platform for without clear corporate vision, and without a this community building — and enable brands to truly well-defined strategy — will often lead to wasted engage with their best customers. investments and resources. Most important, if a brand is able to establish a Here are ten basic and cost-effective steps to get community that draws in users time and time again, it started — building on existing tools and established has succeeded in creating the ultimate platform for best practices. driving loyalty. And what brand can do without loyalty? 1. Crystallize your brand positioning and promise Of course, I’m “open” to thoughts and comments! n (at Landor, we call this the Brand Driver). 2. Get to know the community you want to interact with — who are your supporters and contributors, ALEx DO is digital branding director in the san Francisco office of Landor your influencers, employees, engaged consumers? Associates, responsible for building 3. Agree on an approach to open branding that brand-led digital strategies for companies makes sense for your business. including Accenture, Yahoo!, microsoft, and expedia. He can be reached at 4. Align strategies and objectives back to your alexander.do@landor.com. business model — is your program about september/october 2009 tHe HUb 17
  18. 18. WHI t e pAper Shopper Marketing Online W ithout a doubt, the two hottest subjects because it placed a quality, online brand message, along in marketing today are digital media with related content, in front of consumers at exactly and shopper marketing. The question the right time. In many ways, these were the first is, how can we best combine the two online shopper-marketing executions — circa 2001. to drive awareness, trial and shopper engagement in It was powerful stuff, because it gave the advance of the retail store visit? packaged-goods brands a leg up in the online shopper It’s really not a new question. In fact, I’ve been marketing space when nobody else was sharing digital working on answering it for both retailers and packaged- content with channel partners. For example, perhaps goods brands for more than ten years. My passion for a consumer might not click a link to a box of cereal, online began in 1998, when consumer packaged-goods but they certainly would click a link for useful recipes companies were building their first brand websites and content about how to be a great parent and give and still deciding whether they should put brand your kids a fast, nutritious breakfast — sponsored by website URLs on their packaging. General Mills’ Box Tops for Education. When it comes to online media, even the world’s most powerful brands must wrap themselves around Walmart sets the relevant insights and contextual content. Maybe consumers aren’t interested in having a “relationship” standard for engaging with dry cereal, but when Mills added the Box Tops for Education wrapper, it shifted that perspective. consumers online. wa l M a R t : “ i n s t o R e s n o w ” Since those early days, I’ve worked with retailers The problem was, even though we built great all across the country to develop this concept to its websites full of interesting and relevant consumer maximum potential for them and their packaged- content, the sites received little traffic. Brands simply goods partners. My first big client, starting about five did not know how to get shoppers to their sites. years ago, was Walmart. This was about the time that chief marketing Walmart.com’s goal was to reach their customers officers started questioning the return-on-investment before they got to the store. This made sense for of their early forays into online marketing, and began two reasons: 1) Shoppers were visiting the Walmart folding standalone “internet groups” back into core website to do research before their shopping trip — brand-manager responsibilities. yes, even for CPG brands; and 2) Walmart saw their For me, the turning point came in 2001. That’s site as a shopper marketing and communication when I began working with leading-edge retailers vehicle as well as an e-commerce site. They are like HEB.com and Walmart.com to syndicate branded smart multi-channel marketers and turned content (recipes, health tips/tools, seasonal articles, consumer insight into action. and so forth), sponsored by packaged-goods companies, Today, Walmart.com has evolved into a leading onto their sites. e-commerce site that offers all the necessary features Retailers liked this because it made their websites for media agencies to consider it as a true media “stickier” and added functionality. Brands liked it property. 18 tHe HUb september/october 2009
  19. 19. They have set the gold standard by acting like a publisher, and making it worthwhile for a brand or Retailers as Publishers media agency to invest real marketing dollars in retail media (see sidebar). To deliver a quality media experience, The Walmart site offers brands an opportunity retailers need to act like publishers. to reach consumers with video, interactivity, n Use IAb standard ad placements. downloads, links back to their websites, free samples and sponsored content. This content is featured on n Allow use of national campaign creative. the homepage, via a link called “In Stores Now,” and n Use rich media options (Flash and video). promoted in every email. Brand banners are targeted by department and by category. n Feature brand ads above the fold. Pages are also optimized for search-engine visibility: n execute ads via a mainstream ad-serving tool Try Googling “free samples” — the Walmart.com (e.g., 24/7). online sampling program comes up number two or three in the organic listings. n provide as much ability to target as possible. As a result, click-through rates are five- to n provide the advertiser data on site consumer 20-times the national display advertising average. demographics and behavior. Brand message engagement time as measured by time spent on the brand experience pages measures more n Deliver a full metrics report after each than 1.3 minutes. That kind of brand engagement campaign. would be hard to match in the store. n price options competitively. With some creative thinking, new possibilities emerge. Why not feature laundry tips next to major n provide sponsorship opportunities where appliances, sponsored by a laundry detergent brand? brands can “wrap” themselves around an activity (e.g., home decorating), a recurring That’s actually already happening: See the Tide event (e.g., back to school), a health issue partnership in the washer and dryer department on (e.g., diabetes) or a seasonal hub (e.g., BestBuy.com. Halloween). You can also find “how to video” libraries on CVS.com’s “CVS Today” hub — engaging consumers on topics from beauty to health to holiday decorating. It all comes down to a clear definition of your shopper Shopper marketing, brand marketing and media and what is likely to be most helpful or engaging. teams need to create multi-channel, online media The future for retail online media certainly is experiences that can extend their national brand bright. A recent study by comScore, in partnership campaigns onto their channel partners’ sites with with dunnhumbyUSA, on the effectiveness of online impact, efficiency and metrics reporting. advertising in building retail sales of consumer Retailers are just beginning to understand packaged-goods brands, highlights the opportunity. what they need to do to offer a high quality shopper According to this study, which was conducted marketing experience online. They are making the over a 12-week period, “online ad campaigns with an commitment and getting great results. Said another average reach of 40 percent of their target segment way, it’s the promise of shopper marketing — a better grew retail sales of advertised brands by an average shopping experience — online. n of nine percent. This compares to an average lift of eight percent for TV advertising as measured by Information Resources, Inc.” GREG MURTAGH is ceo of Triad Digital Media, an Inc. 500 company that Bill Pearce, senior vice-president and chief manages and operates online media marketing officer of Del Monte Foods, is optimistic programs for retailers including Walmart, about these findings: “These are precisely the types cVs, sam’s club, Dell and bestbuy. Greg of persuasive studies we are looking for at Del Monte can be reached at (813) 286-6586 or as digital plays an increasing role in our marketing gmurtagh@triaddigital.com. strategy,” he says. september/october 2009 tHe HUb 19

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