Let me preface this article by saying, “Yes, I do have children and yes I would not be happy if they started smoking.” However, I’d like to give them the opportunity to make up their own minds regarding smoking without the government inching ever closer to taking away that right. This ruling by Congress is one step from banning tobacco altogether.
The recent ruling by Congress is blatant bullying. True, the tobacco industry in the past has targeted kids, withheld smoking’s long-term dangers and done it all rather unapologetically. So, at one time I couldn’t defend their actions. However, today there is plenty of information regarding the dangers of smoking. Every cigarette pack, point-of-sale item and advertisement bares the blindingly large Surgeon Generals warning label.
Branding: Differentiating one brand from another requires copy, color, illustration and/or photography. That holds true for all brands. Take it away and every brand in the category is left with a black and white canvas to market their message. Imagine if professional athletes all wore the same color uniforms!
This is a slippery slope for not only for tobacco but alcohol and any other industries Congress sees as dangerous and in need of regulation. The facts are already widely publicized regarding the dangers of smoking, perhaps there should now be a warning label for Congress on the dangers of government intervention.
Prevailing opinion seems to indicate that the worst of the recession is behind us and that economic growth might once again be around the corner. This view has been bolstered by the recent spike in the Conference Board’s index consumer confidence, which rose to 54.9 in May from 40.8 in April. Contrary to this view, Nouriel Roubini, the glum NYU economist who predicted the current mess, recently said that the current recession may end this year but another dip is possible in 2010, producing a “W” shaped recession. Investor Marc Faber, quoted on Bloomberg, opined that within the next year or two inflation in the US may approach Zimbabwe’s level of 200% or more. Yikes!
With all of these contrary opinions presented in the media by a variety of “experts” the question is, does it really matter?
The business cycle has been with us since the dawn of commerce, with it’s continuing chain of booms and busts. “Irrational Exuberance” led to the tulip mania of 1637, the crash of 1929 and the housing bubble of this decade – eventually each burst, followed by great economic pain. But the world didn’t end, commerce continued and in the past better days eventually returned.
Whether the recession has already ended, will end shortly, or will continue longer it’s important to realize that the general economy will eventually improve again. It’s important to lay the groundwork now for the eventual recovery by staying out in front of the crowd. Continue to promote your brand (and yourself), pursue new markets, push for growth and stay positive.
None of us have any control over the national or world economy so don’t sweat it…focus on the things that you can impact, your brand, your business and your life. Do this and you won’t have to worry about getting out of the woods because you never be in them.
Sometimes it’s good to get back to the basics so this week I’d like to change the theme of our post.
In today’s challenging economic environment it’s easy to get overwhelmed by the seemingly endless bad news hitting us from all sides. Times like these are trying but they also provide us with a great challenge. That is, to rise above the noise, take stock, refocus on our goals and remain positive about the future!
A positive attitude is an important part of achievement but to be truly effective it must be coupled with realistic, attainable goals. Just as a powerless boat adrift in the storm is battered to and fro by the waves, we can be also be beaten and battered about if we are not pressing forward towards the harbor. The very act of moving forward helps still the seas and restore the calm by shifting our focus from matters that are out of our control to ones that we can genuinely impact.
The goal setting process is quite simple but don’t let that fool you. When properly planned and executed it’s a powerful tool for shaping the outcomes that you desire. The process includes the following elements (I’ve applied i3’s methodology but feel free to adapt as you see fit):
- Insight: To get to where we’re going we must define clear, realistic goals in order to achieve them. It’s unlikely that most of us will become astronauts but it’s certainly possible to get an education, become a better person or excel in business.
- Inspiration: Once the goal is established you must map the steps required to accomplish it. A major goal is easier to accomplish when it’s completed in several small steps rather than attempted in one giant leap.
- Implementation: Once the plan is made then you must execute it…great plans are useless unless you take action! Then progress towards the goal should be measured periodically and plans possibly adjusted as circumstances warrant.
I’m a big advocate for living with a positive outlook on life but understand that attitude alone, without focus, will go nowhere. A realistic goal, coupled with execution of a well thought out plan and a positive attitude will get you through these difficult times and to where you want to be. Stay focused and stay positive!
In a down economy many companies are quick to reduce marketing expenditures, including advertising and promotion. The reason is simple, these costs are among the easiest budget lines to cut and immediately bolster short-term bottom-line results. But is this a wise and prudent course of action over the long term?
Advertising and promotion are the engines that drive sales of name brand products and services. Reduced spending on marketing is much like taking one’s foot off the gas pedal, the vehicle will continue moving but will gradually slow down over time.
The rate at which sales diminish depends on the unique characteristics of the brand’s market segment. Sales of a well entrenched brand with little competition will hold up for a while; conversely, sales of an unsupported brand in a competitive segment will encounter more resistance and slow at a higher rate. In today’s highly competitive economy, I suspect that most consumer brands are facing the significant challenges of the latter circumstance.
Before making deep cuts in your marketing budget, consider the following…
- In a price-driven market, customers will tend to “trade down” to less expensive alternatives. Continued advertising/promotion will help maintain perceived value of the name brand and consumer mind-share.
- Marketers who continue to advertise and promote in a down market will pick up market share from those who have cut these expenditures.
- Once the business cycle picks up, marketers who have picked up share in the down market will benefit more because competition has been weakened. Assuming continued advertising/promotion, gains in market share will likely be retained as overall sales increase.
No one is sure when the economy will turn around, but it’s a safe bet that times will eventually improve. A down economy presents a great opportunity to maintain/gain share today and to lay a foundation for future growth. Weaker competitors will fall aside and the smart brand, properly supported, will reap the benefits today and well into the future.
The Internet is revolutionizing the way people interact with one another. It has the ability to convey information faster than any other medium. But, since web marketing is still very new, coming to terms with what it actually is can be confusing. So, I’ve thought of a simple analogy for understanding websites a little better.
A good website is like a good suit, well styled, functional and tailored to fit the user. The appearance of a website, like a suit, reflects a lot of information about the wearer. An “Off the Rack” or standard website template is a cheap simple option for creating a website, but may have little or no lasting impact on a prospective contact, client or consumer. Chances are the fit will not be perfect, causing your site content to look too slim in some places and excessive in others.
Here’s three simple tips for attaining a well tailored website.
1. Select a Size – Websites have a tendency to grow quickly out of control and over budget. What content and features would you like to include? What content and features do you need to include? How often do you plan to update the site?
2. Choose a Focus – Pinpointing exactly what the website should convey to your target audience is very important. Are you trying to promote awareness of a specific service your company offers? Are you trying to promote a brand or product? Are you trying to leverage the site for networking?
3. Develop Content – Often having all the content at the start is impossible, but having as much as possible will help streamline the design, functionality and budget tremendously. Have the sample materials been organized? Has the content been edited? Has the copy been proof read?
You’re now on the way to a stylish, functional and well fitted website.
Brand Survival Tactics: The heightened importance of thoughtful design in a ‘Less’ economy.
Quality design in packaging, advertising and promotional messaging has always been important. Good creative builds and reinforces your brand’s image, but when times are tight and budgets down, reduced promotional expenditures mean that creative has to do even more.
Thoughtful design becomes critical in a down economy because other factors driving sales are working less. Here are the three “less” obstacles you have to overcome:
Less Media: Less spending on marketing and media equates to fewer brand impressions. Fewer impressions equals reduced brand awareness.
Less Shopping: Fewer shoppers and lower sales result in more products sitting idle, not moving as quickly through distribution channels. Reduced sales increase pricing pressure.
Less Differentiation: Pricing pressure, coupled with availability of multiple name-brand and off-price store brands, commoditize the marketplace and increase competition to maintain share.
In these times, “less” means that your creative must do more – the good news is that thoughtful design is a powerful selling tool and differentiator in its own right. It helps your packaging, offer or program stand out and be noticed, not only touching the end consumer but also internal associates, sales and retailers as well. These individuals are all potential ambassadors for your product or service so positive, consistent and lasting impressions help build and maintain awareness. When other promotional expenditures are down, great creative will keep them thinking and speaking well of your brand.
On the other hand, poor creative may amplify bad impressions in a down economy due to heightened competition and generate significant negative buzz. Recently, Tropicana learned this lesson the hard way after launching its new packaging to national derision. They are currently reverting to their former creative, a costly misstep in terms of both money and brand image.
So, whether your product is toothpaste, automobiles, or travel destinations, thoughtful design can be your greatest ally or weakest link.
Let it be the former, not the latter
I’d like to preface this article by stating that I am not an economist nor would I ever want to be. What I do know is consumer behavior and the effects the media and a recession can have on one’s psyche. It is as bad now as I have ever seen it and I have been involved in Marketing for over 20 years. Well, I have just blown the horn and am hoping to rally all marketers and those that help promote name brands and the products or services they offer. Start buying them.
I know that financial institutions, car manufacturers, mortgage holding companies – all deemed too big to fail by our government get the spotlight and the billions of tax payer dollars. I am not going to complain because what company wouldn’t like a bailout but I think we all need to start thinking about the implications of our everyday purchasing decisions.
But first the basics that often get overshadowed when the bottom line is king.
Name brands:
- Name brands do cost more and for good reason. They are far more valuable to our economy than any store brand could ever be. Name brands are responsible for creating new products that identify needs in the market and/or create new markets. In order to successfully market these products or services they need distinct identities to give them a personality, visually and verbally. It takes internal marketing professionals, R&D, research firms, PR groups, advertising, web and promotional agencies to help bring these products to market and into our lives. All of this activity creates jobs both internally and externally.
Store brands:
- Store brands often ride the coat-tails of large brands without spending the money to promote. In turn, they offer products for less and in a down economy their sales pick up steam. Often the products they create borrow name brand packaging attributes so they can create false consumer recall. In essence, they trick the consumer into purchasing a product they believe to be name brand.
So, before you make the next store brand purchase and save 60 cents, think of the real cost to our economy and lives. As a brand marketer it is like committing professional suicide.
We need to take the lead and practice brand loyalty – something we actively preach. By injecting personal capital you could be saving your job and the jobs of those around you.
