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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
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
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.
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]
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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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The HubMagazine #32

  • 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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