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Posts from April 2008

April 30, 2008

E-mail is Like Crack for Marketers: Forrester

Magilla Marketing

Though all the talk in e-mail marketing circles is about creating relationships with customers and delivering relevant messages, most bulk e-mailers treat their lists like crack addicts, according to a new report from Forrester Research’s Julie Katz.

They keep going back for more no matter how self-destructive their behavior can be.

Of course, the first step to a cure is admitting there’s a problem.

Click here for more. directmag.com/magill/0429-email-addiction-marketers/

Castles, Towns, and Missionaries

Web Strategy by Jeremiah


I’m meeting more and more corporate marketers who understand the value of social media, but don’t know how to use it. I’m seeing a trend of at least 3 different adoption strategies, listed out below.

Often they want to repurpose their corporate marketing brochures, videos, and pass them on to social channels –without understand that content, often has to change. Corporate “top-down” content doesn’t do well on YouTube, brochures and press releases don’t do well on blogs, and a marcom’s product announcement on a podcast is going to have limited traction.

Corporations are adopting at least one of the three styles of Social Media Marketing:

Locked in the Castle
Keeping the good stuff close to your domain.

Example: Creating videos, audio, and blog posts, but keeping them behind registration, or for clients only.

I’m seeing a handful of corporations in the past year, require registration for videos and podcasts that limit people from accessing them. The risks include: limiting the organic spread of your hard earned content, and not benefiting by the natural word of mouth network. Of course, the flip side is that those that do register are truly hungry for the content, and self-selecting themselves further down the funnel.

Building roads to Towns
Reach adjacent towns by enticing them with content, and provide them with links (roads) back to your land.

Example: Creating brand related images, publishing in flickr, and providing a link in the image notes back to the corporate domain

Some marketers are realizing that they can put a great deal of product and company content on social media tools for free, but by providing links back to the corproate site in comments, in the post-roll of a video, or mentioning a call to action at the end of a podcast extends their reach. By providing these ‘hooks’ to content, you can hope to entice people, who will embed, share, or consume your content, and then eventually click on the links to move closer to your corporate website.

Traveling Missionaries
Missionaries spread to new communities.

Example: Creating campaigns in social networks (like Facebook) where communities already exist, but with no links back to the corporate domain, and no blatant advertising.

The truly savvy marketers are learning to find communities where they exist, becoming that community, and not worry about ‘driving traffic’ back to the corporate website as a measure of success. I’ve a few clients that have figured out how to experiment with ‘off domain’ success. There are risks too, this strategy could give up complete control to the members, and could result in a brand backlash or few people caring about a brand’s products.

When it comes to social media marketing, which style is your corporation going to adopt? each has a strength –and weakness –so it’s best you understand the elements and benefits of each.

April 28, 2008

How to Be More Positive

ProBlogger.com

http://www.problogger.net/archives/2008/04/25/this-weekend-is-a-speed-posting-weekend/?preview=true@SmallFishMedia asks about ‘”How To Be More Positive On A Daily Basis”

What a great question and one I never expected to write about here at ProBlogger - it’s a little off topic but as I was asked it - here goes.

Firstly, I’m no expert on being positive. I’m a bit of an optimist (my wife complains that I can turn any situation into a positive one) though and like to be around other positive people.

For me it comes down to a few things. The first is being intentional about finding the positive things in your life. My parents taught me to be thankful and when I don’t feel thankful to find things to be thankful for anyway and to ‘practice being thankful’. Just like you don’t become good at anything without practice, sometimes being positive is something you need to learn to do and practice. Start with the small things - tell others about the, pray about them (if that’s your thing) but look for them and celebrate them in some way.

The second thing I’d say is to learn to turn problems into opportunities. My Marketing lecturer used to challenge us when we did projects to identify our weaknesses in business and turn them into strengths and to turn our threats into opportunities. This is somewhat counter intuitive but it’s a powerful thing when you do it right.

What do you think? Positivity can be an great thing to have as a blogger - how do you keep yourself thinking positively?

Starbucks remembers they make coffee, step back from being music label

http://www.prefixmag.com/news/starbucks-remembers-they-make-coffee-step-back-fro/18340/

In a press release on their website, Starbucks has announced that they're handing over control of their Hear Me music label to Concord Music Group. Quoth the CEO, Howard Schultz: “As part of our ongoing transformation, we are committed to examining all aspects of our business that are not directly related to our core.” For those keeping score, Starbucks' "transformation" involves the company transforming back into a coffee shop, although this time without the burnt coffee. Following this move, Ken Lombard--the now former head of Starbucks Entertainment--has "has left the company to pursue other business interests." As Brooklyn Vegan points out, this announcement comes admist news that Starbucks stock is starting to stagnate with the rest of the economy, so he probably wasn't given much choice. 

April 27, 2008

Strong demand for mobile phones

http://news.bbc.co.uk/2/hi/business/7366650.stm

A woman speaks on her mobile phone in Beijing
Demand for mobile phones was strong in Africa and Asia

Global demand for mobile phones remains strong, despite economic uncertainty in rich nations and rising food prices in poorer countries.

Consultancy firm Strategy Analytics says 282 million handsets were shipped worldwide in the first three months of 2008, up 14% from a year ago.

The growth was driven by rising demand in markets such as Africa and Asia.

Nokia maintained its dominant position with a 40.9% market share but shipments of LG and Samsung phones grew fastest.

Motorola, Sony Ericsson and Apple lost market share in the quarter.

"Motorola's 10% global market share is at the lowest level since our records began," Strategy Analytics said.

"It is in real danger of being overtaken by LG."

It said Motorola's handsets were "unexciting", while LG's "good looking" and "feature rich" handsets were popular amongst consumers.

Handset market share
Nokia 40.9%
Samsung 16.4%
Motorola 9.7%
LG Electronics 8.6%
Sony Ericsson 7.9%
Others 16.4%
Source: Strategy Analytics

Demand for mobile phones was most brisk in emerging markets, particularly in Africa and Asia.

It said that rocketing food prices in developing countries and the financial crisis affecting richer countries had so far had limited impact on demand for mobile handsets.

Strategy Analytics forecasts demand will continue to rise, but at a slightly slower rate.

It predicts 290 million handsets will be sold in the second quarter of this year, up 12% from the same period a year earlier.

US Teens Compose Constantly Online

emarketer.com
Nearly all teens are online. When do parents think teens should start using e-mail—and when should marketers approach them? Full Article

http://enews.emarketer.com/c.asp?FE7VN7g7Ype7kLgpUfPfrQBPSuUqThkGRGuXyjci2xyA Advertisement
Seven Ways to Beat the Bear
Silverpop's latest white paper reveals
why a recession is the perfect time to kick your marketing program into high gear, and shares seven secrets for strengthening your Market position and increasing ROI
during a slowdown.
Download "Seven Secrets to Recession-Proof Marketing" today.

Electronics Fine, Content Struggles
The devices on which US consumers play their media are selling better than ever. Too bad content sales are flat. Could marketing save the day? Full Article

how do you establish trust online?

Written by ProBlogger.com

I’ve touched on this with a few of my other answers this weekend but let me share three thoughts:

  1. It’s not something that happens quickly - I wrote a post a while back titled ‘Do you kiss on the first date? The Art of Courting as a Blogger‘ that explores how you need to work up to taking your relationships with readers to the next level. Trust takes time to build and you should see every post you make as a way to grow the relationship.
  2. It is something that is earned - you’ve got to put the runs on the board somehow with your readers to show that you’re worthy of trust. This includes blogging for the long haul, showing that you know what you’re talking about, demonstrating your transparency, going the extra mile for readers etc.
  3. The recommendations of others are really important - while I can tell you why you should trust me you’re far more likely to actually trust me if someone else tells you that they trust me and recommend that you do too.

Read more on this topic with a series that I wrote on Blogger Credibility.

Mobile Social Networks To See Sky High Ad Revenues By 2012?

mashable.com

facebookmobile

If you were to believe mobile social networks about their advertising predictions, they will by 2012 be raking in between $28 to $52 billion dollars in ad revenue. Given that normal online ad revenue only broke $27 billion for the first time in 2007, and with predicted drops in ad budgets due to the economic recession, the mobile predictions seem a bit hard to swallow.

Colin Gibbs of RCRWirelessNews brings us these predictions from Informa Telecoms & Media, and they may seem outrageous. They do to me, anyhow. Traditional online topped $27 billion globally with devices (PCs) people are more accustomed. But mobile is something that is still in a state of relative infancy in a large portion of the world. Yes, mobile handsets are everywhere, but how many places use them beyond their phone features on a regular basis? Japan is well known for their tendency to do everything from their handsets, but in countries such as the United States, you might see us doing simple checks for sports scores or the weather; intensive, fully- interactive browsing is not quite the norm. Yet.

The iPhone has changed this somewhat, and with the 3G model expected to launch soon, people may spend a bit more time doing things from their mobiles. But I have to posit a question: Will it be checking their pre-existing accounts on sites like Facebook? Or will it be going to mobile-only sites such as Buzzd? While Informa says the whole lot will boom, I think the picture is a little more complex.

Mobile networks are going to have some successes, but my feeling is that there will be fewer in operation than the current litany of traditional social networks housed in full-sized browsers. That isn’t to say some crossover will not occur. A social network that is on both the computer and the phone will of course be significantly more successful due to their ability to connect people to their one source of social information. If I’m sitting at the computer already, why should I pick up my phone to converse with friends or track their activities? Naturally, the computer, whether it be a desktop or laptop, is where I will offer my focus. However, if I’m on the go, it certainly is nice convenience to be able to check in with a site I routinely use when at my main Internet terminal.

So, for the next few years, networks with primarily desktop-based sites will logically receive a good amount of additional revenue as they release and regularly enhance feature-rich mobile applications to complement main operations. Mobile-only services may have a harder go at success. Yes, Twitter and a number of other services have grown largely due to mobile usage. But they’re still very much rooted in the traditional full-fledged browser environment. Only if they bridge that gap will the torrent of users (and, subsequently, billions of dollars) pour in.

(Image source: Mobilevenue.co.uk)

April 26, 2008

The Physics of Marketing - Newton’s Law of Gravitation

davidebowman.com

Sir Isaac Newton makes his second appearance in this series with his Law of Gravitation. Perhaps one of the most widely known principles of science is gravity. I say this knowing that while most people could probably not explain gravity very well, just about everyone understands the idea. This was Newton’s blockbuster idea. It explained ocean tides, comets, and even led to the discovery of Neptune.
So what is Newton’s Law of Gravitation about? Well, here goes…

Newton basically asserted that “every object in the universe attracts every other object along a line of the centres of the objects, proportional to each object’s mass and inversely proportional to the square of the distances between the objects.” This theory served to explain much of the earlier work of Kepler in one concise theory. While Newton’s Law of Gravitation was later proven not to apply to all objects (black holes and situations with extremely high gravity) by Einstein, his work is a foundational part of modern scientific thought.

So in my feeble mind it seems that Mass and Distance are the keys here. Now how to take these ideas and put them in the context of Marketing?

Because people are not always rational, I am not sure you can apply an equation to human behavior with much precision, but I definitely think that there are parallels to be drawn. Here is my first take. Think about customers. Big brands get big attention. People know Coke. People buy Coke. Coke is massive. Coke has pull.

So how do little brands stand a chance of getting some “pull” with customers. The answer lies in proximity - the other part of Newton’s Theory. Small companies must get close to the customer in order to stand any chance of survival. They can actually use this to thrive and exert considerable influence if properly executed. Would a proper analogy be the impact of the relatively tiny moon on the Earth’s tides as opposed to the sun’s impact on them? (I ask because I am not a scientist) The moon has huge pull on the Earth’s oceans, and impacts the tides because of proximity. Certainly it has far less Mass than the giant sun. Still it is close. So, continuing my example in the world of soda pop, (using both terms to be user friendly) Jones Soda has done a great job of being “the moon.” They decided to get close to consumers - actually putting photographs of them on their packaging. This has allowed them to build a loyal following of consumers who are engaged with their products. They conduct events that are designed to be built around the consumer as well. They have done a masterful job of utilizing this principle to create growth.

Here is the rub for most companies. How to maintain that proximity. Starbucks is feeling this pain, Jones is probably going through it as well. As you gain more mass, it is actually more difficult to remain close to the consumer. The proximity or closeness to individual consumers tends to suffer as companies experience growth. The distance increases, and they exert less pull. In summary the moon becomes more like the sun, just not nearly as big. Thus the advantage it enjoyed thanks to proximity is destroyed. Jones becomes more like Coke, but without the Mass to sustain the gravity.

Wonder why your favorite brand “sold out?” Well because they were faced with this dilemma. How to stay close and simultaneously get big. How to maintain or increase pull? “Selling out” is just a natural part of that. People inevitable pick Coke, because it carries a lot of weight. It has mass - and thus gravity. It pulls people back. To sustain that mass Coke invests in Mass media, mass distribution, mass exposure. It must sell a lot of soda pop to sustain that mass and gravity. This is why small companies don’t need superbowl ads to thrive. They need super customer service.

Marketing in my mind is all about the customer. You can have gravity through mass or proximity. You might be able to get both, but often you have to choose. There is no “right choice” but recognize that with that choice comes the implications of gravity. Growth for growth sake - more mass - might not always be the answer.

Alright, so that is my take on Marketing and Newton’s Law of Gravitation. What do you think? How does Newton apply to the modern world of Marketing? Please enlighten the world with your thoughts.

April 24, 2008

'Permission Email' Appreciated, but a Good Chunk Ends up Junked

58 percent of consumers say email is a great way for companies to stay in touch (up from 45 percent a year ago), but only...