JD Anderson Strategic Relations Blog

7 Lessons the Super Bowl Can Teach Your Business

Administrator — Thu, 02 Feb 2012 17:06:45 +0000

Running a small business is a lot of pressure. But, what if 110 million people were watching you everyday like at the Super Bowl? This is the type of stress that businesses face when they advertise by spending $3M for a 30-second Super Bowl commercial.

For some consumers, the commercials are a very popular part of the event. Super Bowl ads have produced many breakthrough moments in television and many more bombs. There are memorable commercials from the 2010 Super Bowl like Betty White for Snickers and the Old Spice Man, and 2011 Super Bowl’s Doritos. But there have been many more horrible ads like Pets.com sock puppet.

So without spending millions of dollars, what can your business learn by watching Super Bowl commercials?

1. Bring a cliché to life (Snickers). The advantage of cliché’s is that everyone immediately “gets” them. The danger is in having your marketing become part of the cliché itself. Snickers brought the cliché of your friends comparing your effort on the football field to that of an old woman by showing Betty White on the football field. The tagline – “you are not you when you’re hungry.” It was a moment most guys can relate to and used humor to bring home their overall strategic message for the candy bar … which is that it conquers hunger.

2. Make your competition the bad guy (Comcast & Teleflora) – Comcast had an ad featuring an overeager Verizon rep ready to bring out the heavy machinery to rip up your front lawn in an effort to install their new Fios lines. Teleflora poked fun for the second year in a row at their competitors who send flowers in a box. What both ads managed to do is give the viewer a very clear portrayal of the bad guy (ie – their competition) and therefore positioned themselves as the far better choice as a result. A relatively straightforward marketing tactic that is applicable no matter what your marketing budget happens to be.

3. Tap the cultural zeitgeist (Audi) – For Audi’s ad touting their new A3 (a “green” environmentally friendly car), they showed a vision of a world where the “green police” were a real group. For anyone who has had a passionately believer in all things green as a friend or colleague, this concept of the green police is very recognizable. With the increasing attention from all angles (the media, your friends, your kids, etc.) on being green, all you need to do is make one simple choice to get the A3 and you’ll be travelling in the faster green lane on the road and give yourself a “get out of jail free card” in relation to the environment. A powerful message.

4. Be the statement your customer makes. (Dodge & Flo TV) – I wrote on my own blog this week about the recurring theme in this year’s Super Bowl of the “emasculated man” who is portrayed as having little of his own will left after giving up much of it to his wife/girlfriend. This is, of course, a caricature of men, however the more interesting marketing strategy is that both Dodge and Flo TV positioned their products as the “last stand” that a man can make to keep his manhood. In other words, buy a subscription to our service or get our car and you will be a man again. See how the power of making a big statement works?

5. Appeal to your customer’s ego (Dove & Cars.com) – In stark contrast to the concept of the ads in #4, both Dove and Cars.com presented a much more positive portrayal of today’s man. Dove pitched their product to men who are “comfortable in their own skin” and Cars.com used a child prodigy/man-of-the-world character to show how even renaissance men need help with buying a new car. The lesson from both was that sometimes you can also use the ideal vision of themselves that your customers have to position your product as the enlightened choice.

6. Don’t risk everything at once. In small business marketing, it is far safer and more effective to spread your bets by testing many different marketing methods. Homeaway.com took a big risk for a small company running their second Super Bowl ad this year. For your small business, it is far more effective to take patient interim steps. After your company has learned what works and doesn’t work in your marketing campaign, plot the next step. With limited capital, small businesses can’t afford the risk of a “one and done” strategy.

7. Track how the marketing tactic performed. Most companies have a variety of things they do to promote their business. Spending money on marketing is worthless unless your business knows what worked and what did not work. It is essential to get feedback on all aspects of your campaign. It is simple with today’s technology to ask the consumer in the targeted segment to go to your website or use a social media tool to judge results. The Ford Focus commercial encouraged the audience to cheer on their team online and “Watch, Compete, and Win.”

Advertising Is A Poison -And We’re Hooked On It

Administrator — Wed, 26 Oct 2011 14:16:44 +0000

This article is by George Monbiot and appeared on The Guardian

We think we know who the enemies are: banks, big business, lobbyists, the politicians who exist to appease them. But somehow the sector which stitches this system of hypercapitalism together gets overlooked. That seems strange when you consider how pervasive it is. In fact you can probably see it right now. It is everywhere, yet we see without seeing, without understanding the role that it plays in our lives.

I am talking about the industry whose output frames this column and pays for it: advertising. For obvious reasons, it is seldom confronted by either the newspapers or the broadcasters.

The problem was laid out by Rory Sutherland when president of the Institute of Practitioners in Advertising. Marketing, he argued, is either ineffectual or it “raises enormous ethical questions every day”. With admirable if disturbing candour he concluded that “I would rather be thought of as evil than useless.” A new report by the Public Interest Research Centre and WWF opens up the discussion he appears to invite. Think of Me as Evil? asks the ethical questions that most of the media ignore.

Advertising claims to enhance our choice, but it offers us little choice about whether we see and hear it, and ever less choice about whether we respond to it. Since Edward Bernays began to apply the findings of his uncle Sigmund Freud, advertisers have been developing sophisticated means of overcoming our defences. In public they insist that if we become informed consumers and school our children in media literacy we have nothing to fear from their attempts at persuasion. In private they employ neurobiologists to find ingenious methods of bypassing the conscious mind.

Pervasiveness and repetition act like a battering ram against our minds. The first time we see an advertisement, we are likely to be aware of what it’s telling us and what it is encouraging us to buy. From then on, we process it passively, absorbing its imagery and messages without contesting them, as we are no longer fully switched on. Brands and memes then become linked in ways our conscious minds fail to detect. As a report by the progressive thinktank Compass explains, the messages used by advertisers are designed to trigger emotional rather than rational responses. The low-attention processing model developed by Robert Heath at the University of Bath shows how, in a crowded advertising market, passive and implicit learning become the key drivers of emotional attachment. They are particularly powerful among children, as the prefrontal cortex – which helps us to interpret and analyse what we see – is not yet fully developed.

Advertising agencies build on this knowledge to minimise opportunities for the rational mind to intervene in choice. The research company TwoMinds, which has worked for Betfair, the drinks company Diageo, Mars, Nationwide and Waitrose, works to “uncover a layer of behavioural drivers that have previously remained elusive”. New developments in neurobiology have allowed it to home in on “intuitive judgments” that “are made instantaneously and with little or no apparent conscious effort on the part of consumers – at point of purchase”.

The power and pervasiveness of advertising helps to explain, I believe, the remarkable figure I stumbled across last week while reading the latest government spreadsheet on household spending. Households in the UK put an average of just £5.70 a week, or £296 a year, into savings and investments. Academic research suggests a link between advertising and both consumer debt and the number of hours we work. People who watch a lot of advertisements appear to save less, spend more and use more of their time working to meet their rising material aspirations. All three outcomes can have terrible impacts on family life. They also change the character of the nation. Burdened by debt, without savings, we are less free, less resilient, less able to stand up to those who bully us.

Invention is the mother of necessity. To keep their markets growing, companies must keep persuading us that we have unmet needs. In other words, they must encourage us to become dissatisfied with what we have. To be sexy, beautiful, happy, relaxed, we must buy their products. They shove us on to the hedonic treadmill, on which we must run ever faster to escape a growing sense of inadequacy.

The problem this causes was identified almost 300 years ago. In Robinson Crusoe, published in 1719, the hero remarks: “It put me to reflecting, how little repining there would be among mankind, at any condition of life, if people would rather compare their condition with those that are worse, in order to be thankful, than be always comparing them with those which are better, to assist their murmurings and complainings.” Advertising encourages us to compare ourselves with those we perceive to be better off. It persuades us to trash our happiness and trash the biosphere to answer a craving it exists to perpetuate.

But perhaps the most important impact explored by Think of Me As Evil? is the one we discuss the least: the effect it has on our values. Our social identity is shaped by values which psychologists label as either extrinsic or intrinsic. People with a strong set of intrinsic values place most weight on their relationships with family, friends and community. They have a sense of self-acceptance and a concern for other people and the environment. People with largely extrinsic values are driven by a desire for status, wealth and power over others. They tend to be image-conscious, to have a strong desire to conform to social norms and to possess less concern for other people or the planet. They are also more likely to suffer from anxiety and depression and to report low levels of satisfaction with their lives.

We are not born with our values: they are embedded and normalised by the messages we receive from our social environment. Most advertising appeals to and reinforces extrinsic values. It doesn’t matter what the product is: by celebrating image, beauty, wealth, power and status, it helps create an environment that shifts our value system. Some adverts appear to promote intrinsic values, associating their products with family life and strong communities. But they also create the impression that these values can be purchased, which demeans and undermines them. Even love is commingled with material aspiration, and those worthy of this love mostly conform to a narrow conception of beauty, lending greater weight to the importance of image.

I detest this poison, but I also recognise that I am becoming more dependent on it. As sales of print editions decline, newspapers lean even more heavily on advertising. Nor is the problem confined to the commercial media. Even those who write only for their own websites rely on search engines, platforms and programs ultimately funded by advertising. We’re hooked on a drug that is destroying society. As with all addictions, the first step is to admit to it.

7 Things to Do When the Media Gets it Wrong

Administrator — Mon, 24 Oct 2011 15:03:47 +0000

It’s one of the most asked questions in media training sessions: “Should I ever freeze a reporter out?”

When I hear that, says Brad Phillips president of Phillips Media Relations, I immediately think of a scene out of The Godfather or Fatal Attraction, complete with horse’s heads and boiled bunnies. I imagine my clients suddenly appearing as caped crusaders, known by names like, “The Wronged Spokespersons,” who exact their revenge on unfair journalists by “rubbing them out.” But freezing out a reporter is a dramatic step, and it often backfires. After all, don’t you think a company is guilty when a newscaster says, “We contacted representatives from the Huge Corporation, and they refused to return our calls?”

So, before making a decision to blacklist a reporter, here are some remedies that may solve your problem:

1. Show it to a neutral party. It’s an age-old truth: The closer you are to a news story, the more likely it is you will think it’s a negative story. Ask neutral parties to read, listen to, or watch the story and give you their views. Often, you will be surprised to find that the message you hoped would get through to the audience got through.

2. Talk to the reporter. Remember, reporters need access to sources to do their jobs, and good reporters are willing to hear their sources’ objections to a story (they may not agree with you, but they usually listen). Call the reporter, and ask if he or she is on deadline—if so, ask to schedule a time to call back. When you speak, remain polite regardless of his or her response. You will get a better reaction to a discussion about objective factual errors than subjective differences of opinions.

3. Write a response. In print journalism, you almost always have forums available to you for a response, such as a letter-to-the-editor or op-ed. If it’s an option, use it. Don’t repeat the original errors in reporting, since it just gives those errors more airtime—just articulate your point of view.

4. Speak to the editor. If you’ve gotten nowhere with the reporter, it may be a good idea to raise your objection with the reporter’s boss to insure he or she is aware of your complaints. Who knows? Perhaps you’re the fourth person to complain about the same reporter in a week. There is a downside here: no one likes to be complained about, and the reporter may take it out on you through future news coverage.

5. Respond with statements only. If it has become abundantly clear to most independent observers that the news organization in question is irrevocably biased against you or your organization, you have two choices: cut off all access, or respond with precision. It is almost always recommend the latter option, which means sending a short written statement in response to a reporter’s query.

6. Cut off all access. The only time you would consider cutting off all access is when you can honestly say that there is nothing to be gained by speaking to the reporter. Those cases may exist, but they are rare. Most of the time, good media management means finding solutions to working with the press—not avoiding them altogether.

7. Use social media. Cutting off access doesn’t mean you stop communicating. Instead, use social media to continue communicating with your key audiences—through all available channels, including your company website and blog, and your corporate YouTube, Facebook, and Twitter accounts.

Should a Brand Use Social Media?

Administrator — Wed, 19 Oct 2011 14:27:18 +0000

Should a brand be on YouTube, Facebook or Twitter? The answer depends on context. The phenomenon that is social media has meant that many brands or businesses want to leverage it – in many cases before they understand it. There’s a brilliant quote by Avinash Kaushik, Analytics Evangelist at Google that sums this eagerness up:

Social media is like teen sex. Everyone wants to do it. Nobody knows how. When it’s done, they’re surprised it’s not better.

As with any other medium, we don’t recommend you dive in head first without knowing your audience or what you want to achieve.

Take Twitter for example. It was founded in 2006 as a fun and casual way to share your thoughts with others around the world. But as one of the co-founders, Biz Stone, admitted in a recent interview with The Age (25/02/10), Twitter is no longer considered fun and casual, but has changed to being a real-time “information network for discovering and sharing information”.

People seek instant information and Twitter gives it to them. It broadcasts information succinctly and quickly to those interested in your brand.

Two brands that have been hugely successful using Twitter are Starbucks coffee and Dell computers. Why? Because they follow the basic principles of engaging with their fans:

1. Understand the environment
Twitter is about contributing. It’s about being part of a whole. It’s an extension of one’s own brand. So don’t expect the majority of followers to interact with you. A 2009 study by Heil & Piskorski showed that 90% of the content is generated by 10% of users, but that does not mean that the majority aren’t listening or letting others know.

2. Add a return for investment
Dell computers have used Twitter to offer their followers exclusive offers and have reportedly generated US$6.5 million in sales as a result. Both Starbucks and Dell also listen to their followers about how they can improve their products and customer experience.

3. Dedicate resources
Twitter is a real-time broadcaster of information, so if you are receiving customer feedback, positive or negative, you must be able to respond promptly to be seen as credible. Again, the two examples here do a brilliant job.

Which brings us back to the question – should a brand use social media?
Yes, if it fits a strategy to expand the brand online, to get people talking about the brand, generate awareness, seek out ideas and look for opportunities to improve customer support.
No, if there aren’t enough resources to dedicate or if the commitment to the network isn’t genuine.

How To Get Consumers To Buy Your Product After Glancing At The Print Ad

Administrator — Mon, 17 Oct 2011 06:05:49 +0000

: It may be tempting to use attention-grabbing visuals in your print ads, but research shows that if you go too far, as Budweiser did in this ad, readers will remember the visual and not the product.

On average, readers only spend about 2 seconds looking at a print ad. Given the short amount of time you have to grab their attention says Francesca Pefianco, a marketing analyst, it’s important that any ad you create 1) grabs the reader’s attention, and 2) encourages them to buy your product or service.

Most print ads are composed of a strong visual, a headline, body copy and a logo or signature. But producing a great print ad isn’t as simple tossing these elements together. There are several do’s and don’ts that are essential to creating effective print ads:

DO:
Agree on your SMART goals. Your objective should be more than to simply “increase sales.” Get more specific with your goals, such as to “increase lunchtime store visits by 30% in 3 months” or “drive 15% more customers into our retail locations over the course of 60 days.” Specific goals are called SMART goals, which stands for Specific, Measurable, Action-oriented, Realistic and Timebound. Design your ad around SMART goals and be sure to hold yourself accountable to them.

Hook the reader within 2 seconds. On average, readers only spend 2 seconds looking at a print ad. It’s important to use visuals and headlines that cause the reader to stop and look at your ad. Headlines that evoke an emotion from the reader are more likely to catch the reader’s attention. Using white space and bullet points in an ad have both proven to stop readers in their tracks and produce a higher response rate as well.
Use high-impact visuals. In the 2 seconds a reader takes to look at your ad, 1.5 seconds are dedicated to visuals while only 0.5 seconds are spent looking at your copy. Use bright, clear images to promote your product. Research shows that people recall photographs 26% more than artwork and are more likely to look at an ad where the subject’s eyes are looking directly at you. That said, your visuals should always support the concept of the product or service you’re selling. Using attention-grabbing visuals just so you can stand out can have a negative impact on your brand.
Put strategy before creativity. Many advertisers sacrifice targeted content for witty or appealing messages. Even if it would be interesting to use a cartoon to advertise your product, would that really be appropriate in an ad about fine jewelry? Think about where your ad will be printed as well. The message you might want to use to sell your orange juice will be different in a local newspaper than it would be in a specialty magazine.

DON’T :
Don’t stuff your ad with too much information. Less really is more. Too much copy or too many images can actually cause the reader to skip the ad because they feel overwhelmed. In most cases, brand-oriented ads should only use one or two images, have a one-sentence headline and keep the copy to four sentences or less. (There are exceptions to this rule such as when you’re running a promotional/retail ad. But if you’re running a branding ad, it’s a good idea to keep your ad clean and uncluttered.)
Don’t force unrelated connections. It may be tempting to use a funny visual of a baby with food all over its face in your ad, but if your ad is for a new desktop computer, the audience might not make the connection. Worse yet, research indicates that when an association in an ad isn’t clear, the audience will forget about the product and simply remember the funny visual — in this case, the baby with food all over its face.
Don’t create negative associations. You might think its clever to compare your energy drink to a cheetah, but the second you mention that a cheetah hunts and kills its prey, the audience automatically applies that association to your product. It’s difficult to avoid some negative associations when using analogies in your messaging, but think through all of the possibilities before printing your ad. In the same vein, try to forgo offensive or stereotypical associations in your message. What may be funny to one person might enrage another and forever damage your brand image.
Don’t let your brand disappear. It’s not unusual for a brand to disappear in a print ad. When the integration is stretched or when your logo and signature are not prominently displayed, people can forget what product an ad was about entirely. Be sure to place your brand’s logo at a readable size in one of the corners of your advertisement.
When crafting a print ad, compose your elements in a way that’s eye-catching, creative, thought-provoking and positive. Be sure to avoid clutter, negative association and bad integration. Print ads are still a prominent form of advertising and can be an incredible tool for your marketing when done correctly and effectively, so use these tips as guidelines the next time you create an ad for your product or service.

5 Tips on Crowdsourcing Content for Marketing

Administrator — Wed, 12 Oct 2011 14:06:56 +0000

Content is an essential vehicle for corporate storytelling, attracting and engaging customers to buy, Lee Odden blogs. Organizations are beginning to get that, but struggle with content sourcing and how to scale. Besides hiring an editorial staff complete with corporate journalists, one of the most valuable sources of content for online marketing comes from your brand’s community.

Tapping in to what customers care about related to your products /services and what your brand stands for can be a gold mine of meaningful content. Here are 5 of those tips with some additional commentary based on discussions with audience members at a recent SES San Francisco conference:

Interviews. Raising questions is one of the most basic ways to crowdsource content. The method to employ depends on the desired outcome. Asking the community for suggestions of whom to interview and what questions to ask is a great way to get people involved. Interviewing industry thought leaders provides the brand’s audience with unique content and creates a positive association between the “brandividual” and the company.
Example: Tapping multiple industry thought leaders for their definition of “content curation” for a blog post that received substantial distribution and return visits.

Social Q&A. Yahoo Answers, LinkedIn, and sites like Quora can provide very useful platforms to present questions and attract answers from a variety of people. Of course, your intent needs to be clear and permission for reuse should be obtained before republishing. Those familiar with the Q&A communities can word questions to attract replies from specific influentials who might not otherwise respond to a content participation pitch via email.
Example: Posting a question to LinkedIn related to the “shift in direct marketing budgets to digital“, that received great quality responses and over 30 comments on the post.

Contests Resulting in Content. Examples of contests in which consumers produce their own videos and share images abound on the social web. Search engines love any kind of content, especially text.
Example: In the past, Marketing Pilgrim ran a great contest for a search marketing scholarship. The articles written by contestants drive traffic to Andy’s website and also become content on it. To top it off, the articles were compiled into an e-book.

Comment Feedback Loop. One of the most meaningful ways for a community to engage with a brand is through comments on a company blog. Asking readers to participate in a dialogue by commenting can result in content that is better than the original blog post. Brands can then recognize blog commenters by drawing attention to the “best of” comments through a separate blog post or in a newsletter.
Example: See TopRank’s Online Marketing Newsletter for an example of this in action, where comments are curated into a section called, “What the Online Marketing Blog Community Has to Say”.

Book Authoring by Community. Reaching out to industry experts to share their insights as part of a larger project, such as a book in print or an eBook can be very effective.
Example: Author Michael Miller did this with Online Marketing Heroes, of which I was a part. He interviewed 25 successful marketers; the results of those interviews became the book published by Wiley. Numerous companies have connected with industry thought leaders for content and compiled the responses into an eBook. A good example is Jay Baer’s – Staggering Social Media Insights: The Best of the Twitter 20 eBook.

This is really just the tip of the iceberg for creative content crowdsourcing ideas. Each industry and community is different and with quality analysis and creative ideas, organizations can accomplish content creation objectives as well as better engaging and growing their social networks.

Have you overcome content creation and scaling issues by crowdsourcing? What creative content sourcing ideas have you implemented? Let us know by leaving a comment.

Social Customer Relationship Management (CRM)

Administrator — Mon, 10 Oct 2011 05:54:48 +0000

Does your business engage in social media? Then you must have a social CRM strategy: How can you integrate social collaboration functionality with your existing systems? How do you staff your SCRM efforts? How do you transition from listening to engaging in conversations, and which ones should you engage in? How do you get the results of those conversations into your CRM system? Start with understanding the following.

1- Google Is Your Friend
One of the great CRM questions is, “how do I find out where my customers are talking about me?” The big social media standard bearers — Facebook, Twitter and LinkedIn — are obvious first thoughts, but often customers congregate on smaller sites that are more narrowly focused on their vertical markets or their unique interests.

Discovering these rich niches of often-intense conversation could prove far more lucrative than relentlessly panning in the waters of Facebook or Twitter for a nugget of discussion about your business. So how do you find these smaller, specialized channels? Do you need to throw significant cash at it? Is there a tool you can buy that will magically reveal these social media mother lodes?

You can surely blow a lot of dough on technology to find them, but before you do, make your task easy: plug in the name of your company, the names of your competitors, or keywords that pertain to your business into Google Search. It’ll return results for those terms and, with a little digging, it should reveal many of the significant smaller social media channels where people are talking about you.

2- Make Sure To Show Up At Your Own Party
These days, online marketing pieces and company websites have lots of little Facebook, Twitter, LinkedIn and other social media icons strewn about their landscapes inviting customers to click on them to friend, connect or subscribe to them. It’s remarkably easy for designers to add them to their pages, and it’s also remarkably easy for marketing managers and other executives to tell designers to add them to their pages.

Unfortunately, it’s not quite so easy to recognize that when you plaster an icon on company content, you’re making a commitment to be part of the conversation — not just when the content is published, but for as long as that standing invitation is open to the public. If you’re going to tell people to follow you on Twitter or Facebook, then you’d better be there for them.

Don’t start inviting people to your Facebook or LinkedIn page or to follow you on Twitter unless you plan on having a real, ongoing presence there. And, for heaven’s sake, don’t invite them to a customer community of your creation if you don’t have a genuine commitment to maintaining and participating in that community.

Engaging haphazardly is worse than not engaging in the first place, because it asks the customer to do something and then fails to honor that action. Customers get the same level of non-communication, even though they have actively done something extra to get it.

3- Once You Go Social There Ain’t No Coming Back
One of the terrifying things about social media is that it takes control of the company message away from designated spokespeople and distributes it around the company. Especially when people love their jobs, their blogs, tweets and status updates may be chock-full of information that the company may not want in the public sphere yet.

This isn’t happening because employees all over the world have decided to maliciously divulge important material or to sabotage marketing efforts, said Greg Gunn, vice president of business development at HootSuite. It’s happening because most companies don’t bother to educate their employees about how they should talk about the business on social media.

So tell them. Unless you include them in the company’s understanding of how social media should be used in discussing the business, don’t be surprised if they say things you don’t want them to say.

For example, for competitive reasons, it’s not OK for the engineers at a software company to blog about new, revolutionary features before they are announced. Do they know that? And do they know the date when the project they’re working on will be announced? If they do, then you could effectively multiply your marketing efforts, with your traditional marketing being supplemented by the blogs and tweets of your developers.

Here’s a non-technology example: Marketing creates a new, official name for an incentive program, but the sales department fails to get the word, and the socially active people in sales continue to use the old name, creating confusion among the customers and, ultimately, the impression that internal chaos reigns inside your business. Did sales get the memo — not just about the name change, but about how the program needed to be referred to in all circumstances, including on social media?

Companies need to realize that everyone in the business is potentially a source of company information in the social era. You must help them deliver a controlled and coherent message about your business, and that entails keeping everyone inside the company informed about marketing and messaging plans. It also means making them aware of the importance of bringing things they learn through their conversations back to the business when appropriate.

So make sure you have a sound strategy in place before jumping into social media. Make sure all your employees are aware of the dos and don’ts you have put in place. Most importantly, make sure your internal communications are clear and followed. If you have any questions let us know.

What You Can Learn From Apple To Market Your Store

Administrator — Wed, 05 Oct 2011 05:33:20 +0000

The Apple store turned 10 this past May celebrating a spectacular and surprising success. Back in 2001 when the first two stores opened in Tysons Corner, Virginia and Glendale, California, it seemed like a crazy and desperate idea, writes Peter Gorenstein, financial blogger.

Critics asked, “why would a technology company like Apple open a brick and mortar store when the future of commerce is moving online?”

“Literally half the store is devoted to solutions because people don’t just want to buy personal computers any more. They want to know what they can do with them,” was Steve Jobs’ answer, in a video presented at MacWorld just days before the first grand opening. Like so many of his decisions over the last decade, Jobs was right.

Today, with its 300 stores across the country, and more than $9 billion in retail sales last year, Apple is arguably the most successful retailer on the planet based on sales per square foot, says Peter Gorenstein, finance writer.

According to a recent MacWorld article Jeweler Tiffany & Company’s $2,700 per square foot used to be considered the gold standard, but Apple has surpassed Tiffany, generating more than $4,000 in sales per square foot. By comparison, Best Buy’s sales per square foot is about $1,000, and Walmart’s is about $400.

Apple has been able dominate at a time so many other retailers are struggling or have gone out of business, due in part to Apple’s iPod, iPhone, iPad, Mac and iTunes offerings.
Remember Virgin, Tower, and all those independently owned music stores? You might, but your kids may not. They’ve been buying music on iTunes and using their iPods for as long as they can remember.

Many suspected electronics giant Best Buy would benefit when its top rival Circuit City went under. That hasn’t happened. Best Buy has reported three straight quarters of declining same-store sales, including a 5.5% drop in U.S. stores in the last quarter.

Borders filed Chapter 11 bankruptcy protection last winter but Barnes & Noble isn’t likely to see an increase in business, what with Amazon and the iPad and all the tablet copycats popping up. Meanwhile, direct competitors like Microsoft and Dell have had little success with their retail stores. It’s unlikely fans of either will be lining up outside their doors when the next version of Windows is released.

The lesson Apple offers is to give customers a chance to interact with your product, test it out and ask questions. Going to your store should be an experience for your customers regardless of the product you sell. The more time customers spend in your store, the more comfortable they will be with your product and the more likely they will be to buy.

Green PR

Administrator — Mon, 03 Oct 2011 15:53:28 +0000

Ever wonder how much energy you use every time you google something? Of course you have, says Greg Menken, VP of Sustainability at Beckerman PR. Google reports that the energy used by the company (not your computer) per average search is about 1kJ (0.0003 kWh). To put this in perspective, Google says the CO2 emissions of a newspaper is the equivalent of 850 searches, that of a glass of orange juice, 1,050 searches, and so on. But multiply that 1kJ by hundreds of billions, and you need a lot of energy.

In response to growing scrutiny of such high energy use by the tech sector, many companies are looking to economize their data center operations, hoping to save cash, ease criticism, and win customers. While it is true that an online search is greener than a trip to the library, it is also true that many technology companies, and their data centers, have developed reputations as energy hogs. Reports indicate that data center electricity use more than doubled between 2000 and 2006, and is expected to double again by 2011, climbing to as much as 10% of all energy use in the U.S. by 2020.

According to Greenpeace, if considered as a country, global telecommunications and data centers would have ranked fifth in the world for energy use in 2007, behind the United States, China, Russia and Japan. Kent Garber of U.S. News and World Report says that with increasing concern about greenhouse gases, server farms are attracting the same kind of “furrowed-eyebrow” examination as other major energy users. Environmental groups are applying pressure on data center-heavy technology companies to make their data centers as green as possible. Even Congress ordered the Environmental Protection Agency to study private and federal data center energy usage.

As reported in Distributed Energy, the industry is trying to improve its energy consumption reputation. Eaton, a power management company to data centers, has recognized that its customers are increasingly demanding that their centers be designed with maximum energy efficiency. Fairly or not, “Data centers have gained such a reputation as energy hogs. That’s not a good thing to have, PR-wise,” says Ed Spears of Eaton.

Greenpeace v. Facebook is a good example. Whatever your opinion of Greenpeace, this year it launched a “Facebook loves coal” type of campaign to pressure the company to use renewables to power its new data centers. The group claims that 500,000 of its own Facebook friends engaged in the campaign. True, Mark Zuckerberg is no poorer, but the company has been forced to address the issue.

Partly in response to consumer interest in green, many companies are beginning to green-up their data center operations, often as part as an overall sustainability strategy. Yahoo’s new data center near Buffalo, N.Y., for example, is designed to maximize air circulation (important for cooling) and will get energy from hydroelectric facilities. Microsoft is using retrofitted shipping containers to house servers at its new Chicago data center. The container architecture requires much less energy to cool the systems. HP, ranked among the most sustainable companies in the U.S., recently built a data center in the U.K. in a cold climate that uses outside air to reduce cooling costs.

More than good PR, these innovations are being driven by economics. According to Eaton, energy costs for cooling and operating a data center have gone from about 10% to as much as 60% of some companies’ entire operating budgets. Microsoft saves 30% in operating costs at its Chicago center and HP’s U.K. center saves the company $8 million a year — critical cash flow in a down economy.

Whether it’s PR or economics that drive green, both will continue to play an important role in the energy and environmental decisions that technology companies make. Says Bill Kosik of HP, “The business case for green could just as easily include increasing market share by taking an aggressive stance on minimizing the impact on the environment as it could include tactical upgrades to optimize energy use.” Sustainability will always be driven first and foremost by economics but, as Kosik says, tech companies would be mistaken not to realize the PR and marketing value of sustainability as well.

Marketing to Multigenerational Audiences

Administrator — Wed, 28 Sep 2011 15:21:34 +0000

A key to successful engagement in public relations is to provide meaningful content that also takes into account the evolving habits, preferences and values of today’s multiple audiences. One useful way to define those audiences is to understand how members of each group have been influenced by the era in which they were born and raised, and how their experiences growing up have shaped their view of the world, says BurrellesLuce PR agency.

Identifying Generational Markers
While there is some debate as to the start and end dates of each generation, these are the generally accepted demarcations usually associated with each American age cohort:
* The Silent Generation or Traditionalists (born late-1920s through 1945)
* Baby Boomers (born 1946 through 1964)
* Gen-X (born 1965 through 1980)
* Gen-Y, or Millennials (born 1981 through 1993)
* Gen-Z, or Generation Next (born 1994 through 2004)

Winning Tactics for Communicating With Multigenerational Audiences Today
1. Understand your audience by demographic. Determining the gender, age, and other key characteristics of your core audience is the first step in building an effective campaign. By working with other departments within your organization, you should be able to construct a clear picture of your target market and be confident that you’re proceeding in the right direction. Even a little research can go a long way when getting to know your audience.

2. Consider audience traits in shaping messages. Take, for instance, Gen-X and the ramification of communications via geo-location sites such as Foursquare—understanding the distinctive preferences and values of each group can help you form messages that are precisely aligned with each constituency.

3. Avoid unexamined assumptions about an audience’s preferred media channels. It’s risky to assume that all members of a generation would rather receive, say, an email instead of a phone call, even if their generation is perceived as preferring one over the other. Instead, begin to build your own library of research (including customer surveys and testimonials), which can be a more reliable guide to the preferences of your target audiences.

4. Identify the generations most responsive to calls to action. It may be that you are aiming a product promotion toward Gen-X, but it is really the Baby Boomers who are the most responsive. Rather than continue to push the brand on someone who isn’t interested, recalibrate the campaign to focus on those who are listening and engaging.

5. Look beyond generalizations. While some Millenials, for example, seem to need more attention and praise than, say, members of the Silent Generation, there are always exceptions to the generalizations. Gen-Yer Kristin Piombino, editorial assistant for Ragan.com, challenges people to move beyond “millennial myths and stereotypes” in this article. “We don’t want you to treat us differently than anyone else in the office or look at us like we’re another species,” she states. “We just want your respect, and a chance to prove ourselves.”

Indeed, respect and being heard are really what any audience or person wants, regardless of generation or industry. You must truly listen to your audience and view your constituents as individuals with specific needs—and not just another set of data—to enhance the conversation and foster engagement with important communities across multi-generations.