Monthly Archives: July 2007

The time finally came-for me to transfer into the corporate world. After an undisclosed amount of time and an undisclosed number of resumes submitted, I am finally moving into a position more in line with my MBA and interests in business at an undisclosed place. In a nutshell, I will remain in Tulsa (as my wife and I had hoped), and will be focusing on corporate online content. This blog will remain, as the true and complete transfer will not take place overnight. Not to mention, my new position has a strong social media aspect, so this blog will remain very appropriate.

Well, it seems Zecco has received my latest paperwork (that was not supposed to have been required in hard copy), so now they tell me it’s just another 5 days before I can actually trade. Wow. Not too impressive, Zecco. Assuming Zecco does process my paperwork in 5 days (just in time for the weekend, and no trading), it will have taken a full 5 weeks for me to go from application to trading. My father always told me that if a deal looked too good to be true, it usually was. Next week, I hope to be able to comment on the actual trading process. I hope Zecco’s transaction process goes a little more smoothly than their application/paperwork/funding process.

Monday

When is change a good thing?- Interesting post from Ed Roach at Brand Corral. If you’re like me, you get restless and you like to tinker with things that you’re very familiar with-a practice that drives my wife and our homeowner’s insurance agent crazy. When it comes to a company’s brand, this “tinkering” must be done with great caution in light of the fact that, as Ed mentions, “…you live with your brand day-in and day-out. Your prospects aren’t as aware of your brand as you are.” Things may actually be completely fine with your brand. See the post for what the problems and solutions may actually be.

Just about to shut down and I saw this post by Steve Woodruff at Small Business Branding which I felt was a great partner piece to the one by Ed Roach. [Or perhaps it should be partnered with this post penned last week on the Freakonomics blog-a post which definitely got some people stirred up about the reality (or lack thereof) of newly made/discovered disorders!]

The Customer Isn’t Always Right- Elizabeth Glagowski of 1 to 1 Media (have I already mentioned how I would love to work for this firm?) addresses the touchy subject of firing one’s customers. The post points to an article by Peppers and Rogers which addressed recent developments with Sprint (not to be rehashed here). As I mentioned previously, I’m all for firing one’s customers in certain situations. And also, as I have mentioned previously, I really wish I were one of those customers Sprint would fire!

Tuesday

Blogging: Everyone’s Doing It … But Should They Be?- I have often wondered what motivates people to blog when (let’s be honest here) so many blogs will receive only a handful of hits in a year’s time. (Yes I am aware that my blog falls into this category.) Kevin Zimmerman at 1-to-1 Media (did I already mention how much I would love to work at this place?) rightfully asks the question, should you even be blogging in the first place? Of course, Kevin’s focus is on corporate as opposed to personal blogs (which require no defense or justification) in a post that encourages us to closely examine our reasons for creating a company blog and our commitment to writing said blog in a consistent and compelling manner. Great point about Apple, Kevin.

Why You Probably Won’t Survive as an Independent Consultant- I immediately saved this post by Will Schroter at the Go Big Network in my personal Bloglines clippings and later decided that it was just too good not to post in my weekly favorites. Maybe it’s just because I teach English, but I love the allegory. Point well made.

Wednesday

Dealing with negative word of mouth- Andy Sernovitz from Damn! I Wish I’d Thought of That! gives very practical advice on dealing with negative press within the confines of social media. A great PR post to be clipped into your “Classics” folder.

Five Ways that Websites Suck- Eric Eggerston from Common Sense PR outlines five easily implemented but often neglected principles of website creation and organization. As I read the post, several websites popped into my mind. I’ll bet we can all list our fair share of sites that transgress these essential rules.

Al Ries and his Crazy, Crazy Pills- I’m leaving my personal opinion out on this one. I think this is a really interesting post by Paul McEnany at hee-hawmarketing. I’m going to keep an eye on the Comments section of this particular post-I’m interested to hear both sides. This is blog is new to my blogroll, and so far, I have really been enjoying it. (OK, so my personal opinion snuck in there at the end.)

Thursday

The Art of Writing with Brevity- Maybe it’s just because I’m a (now, former) English teacher that I appreciate today’s post by Kevin Levi at Small Business Branding so much. I know, it’s ironic for me, one who is very longwinded in his blog posts, to be in such agreement with this post, but I do think it’s great advice, and I know of many blogs that I wish would comply.

Friday

Will Rapid-Fire Finance Self-Destruct the Economy?- To quote Steve Martin, “All I can say is wow!” This post by Rob May at Businesspundit.com was very challenging. It inspired a recent post of mine. May not be the slant Rob intended, but this post really got me thinking about finance and branding.

Is Your Brand Showing?- Just as I was about to upload my latest list of favorites, I stumbled upon this post by Mike Wagoner at Own Your Brand and I had to include it in the list. An awesome post pertaining to the branding of front-line service employees (no, I still haven’t coined a cool acronym for these people). Looking back, I don’t know that Mike has written a post that I didn’t like.

I opened my Zecco trading account on July 2. I understand, it takes a few days for ACH funding to be established. No big deal. Once it was established and I wanted to initiate a trade, I was thwarted. The problem: my paperwork had not been received by Zecco. This was not supposed to be necessary since I opened my account after May 10th. According to Zecco’s website, I was supposed to be ”all set.” A call to Zecco’s customer service (the agent I spoke to was genuinely was friendly and helpful) proved different. For no explainable reason, my electronic signature “didn’t work.” So on Monday, I went to the post office to mail off my packet of paperwork to Zecco. It was to arrive within 4 days. I also faxed the information (after 3 tries) to Zecco, as I was told that doing so would expedite the process. Five days later, I am still waiting for my paperwork to go through. And today would be a perfect day for trading. Lots of beat up stocks out there just waiting to be revitalized after yesterday’s beating. I’m starting to wonder if I should have recommended Zecco to two of my friends. I will not renege on my recommendation until I have the opportunity to make some trades. But I will warn future Zecco prospects: don’t plan on trading anytime soon.

I believe that in life, there are two types of people: those who bowl, and those who don’t.

I don’t, but I have a fascination with those who do.

I just finished reading Will Rapid Fire Finance Self-Destruct the Economy, a blog post by Rob May at Businesspundit.com, and then I read the Businessweek post to which Rob refers: The Tyranny Of The Market, by Lawrence Mitchell (George Washington University Law School). I’m sure you will hate to be redirected anywhere else but here {sarcasm}, but right now, read these two posts.

To be brief, I see a few implications for corporate marketing:

1. Brands are being ignored in light of earnings “initiatives.”

2. Brands are being lost through trendy mergers and acquisitions.

3. CEO’s don’t care.

Believe me, I am surely not anti-finance. And I’m not anti-M&A. But all of this has me wondering what it is that CEO’s of companies that focus on inorganic growth are telling their CMO’s? “I realize that our enemy must now become our friend. Just find some place in the middle where the two can meet.” Or, “I like your idea about investing more in our services marketing/social media/existing product line, but if we instead take that money and focus on investments, we’ll provide a better return for our stockholders.” I know this all sounds a little pie-in-the-sky, and I’m really trying to avoid that, but I can’t help but think that this diversion of marketing funding, this willingness to compromise an otherwise strong brand, solely for the purpose of inflating EPS (admittedly a tad melodramatic) is going to bite companies in the butt.

Consider phone companies. Of course, AT&T’s initial split was pretty much out of their hands, but look what has happened with recent reacquisitions. Are you able to articulate what AT&T as a brand stands for? For that matter, what about their competitors who have been doing the same thing? What is Verizon Wireless, and how have they differentiated themselves? What about Sprint? Do you really think that the mission statements of any of these companies differ from any of the others’ (or from the companies whom they acquired)? Think about car rental. Avis and Budget are both under the umbrella of Cendant. Vanguard has National and Alamo. Dollar and Thrifty joined forces a while back. Of Avis, Budget, National, Alamo, Hertz, Dollar, Thrifty, and Enterprise, I can think of only one that differentiates itself, and it is (privately owned)Enterprise. Do any of the previously listed companies (besides Enterprise) mean any more to anyone other than generic car rental at pretty much the best prices a company can offer-or at least at prices that are in the same ballpark as the other guys? Is there anything special or unique about any of these brands (besides Enterprise)? I emphasize, despite how this post sounds, I really have no problem with the idea of publicly traded companies. The problem I have is publicly traded companies’ usually focus on stockholders over their own brand. They are killing the goose that laid the golden egg. I can’t help but wonder how these companies are going to remain unique, differentiated, and true to their brand when so many of them seem to have lost focus of what made them successful in the first place-of who they really are. I think of John Proctor in The Crucible who refuses to sign his name to a list of people who have “confessed” to witchcraft as a result of extreme coersion by the court. His wishes his “confession” to be acceptable as a verbal confession. When the judge asks why, Proctor replies, “Because it is my name! Because I cannot have another in my life…How can I live without my name?” Inorganic growth often compromises a company’s precious name, and can result in a complete dilution of its brand.

I admit, I am simplifying quite a bit here, but don’t lose sight of my original points: a company’s investment in investment for the sake of investment at the expense (no pun intended) of the company’s brand, name, and distinctive reputation absolutely kills loyalty. It automatically, instantly commoditizes a company. And I think that in the end, yes, even the stockholders will lose out-and clearly the former devoted will.

I think there’s a lot more to say about this.

Update: I just read a blog post indicating that this brand-blurring is even affecting my beloved car audio industry. You’ll find the news here.

More on brand dilution though inorganic growth by laura Reis here.

As you know, I am a teacher, not a marketer. And even though surely there can never be a teacher who would have skills in marketing, I, an admitted teacher (and not a professional marketer), am a little surprised at the hype over two recent developments in social media:

1. The incorporation of audio into Slideshare presentations.

Ummm, it’s based on a technology that’s over a decade old, right? Don’t get me wrong, it is a pretty big move…for PowerPoint.

2. A rumored Facebook IPO within 2 years (heard it for the first time today on CNBC).

You know how Facebook is really popular right now? Right. That could be a sure sign that it’s on its way out. And I do know one thing for sure: teenagers, the bread and butter of Facebook, are realizing that their mommies and daddies (and teachers) are also on Facebook. Yuck! It reminds me of when George Costanza’s mother, Estelle, says that she’s “out there” (that is, on the open market following a near divorce from Frank), and George responds, “You’re not out there! You can’t be, because I’m out there. And if I see you out there, there’s not enough voltage in this world to electroshock me back into coherence!” Sure, Facebook may separate itself from the pack and become a permanent force the way Google did. I just remember when Classmates.com was big, and Xanga, and more recently, MySpace. If I were a VC, there is no way I would touch this one.

Excuse the cynicism.

Obviously, I was pretty impressed at my inaugural trip to IKEA last weekend. But at as a marketer (wannabe), I couldn’t help but be a tad critical. Granted, there was not much to complain about, but here are a few things that I felt IKEA could beef up on.

1. Failsafes- This is such an essential part of marketing and operations, and while the store did have many failsafes in place (directional signage, maps, etc.), I did notice two areas that could have been better. The first was the elevator/restaurant area. The store allows a customer to exit the elevator on the second floor and proceed directly to the restaurant (as my wife and I did). However, it would seem that, according to IKEA’s plan, the restaurant should be the last spot a customer reaches. I say this based on the fact that the blue arrows on the floor ultimately lead to the restaurant. None lead away from the restaurant. The implication is that once a person reaches the restaurant, he is finished. If this is the way IKEA wants it, they should not allow customers to access the restaurant first, or they should have clear signage that indicates that beginning one’s IKEA trek at the restaurant is indeed, backwards.

I also felt that their products could easily institute “construction” failsafes. In light of the fact that a person must combine items from several different, individual boxes to construct a single desk, bookshelf, table, etc., IKEA’s suppliers could lessen confusion by drilling dowel holes, cam holes, etc. slightly non-symmetrically. By doing so, a customer has no question as to where a particular screw, dowel, cam, etc. belongs-it simply wouldn’t work any other way. (Sorry to be vague-trying to save words.) And while I understand and respect the fact that the instructions are free of any textual instruction in order to accommodate a customer base of varied native languages (and those who do not read at all), such vague instruction should be accompanied by fewer ways to screw up.

2. Full Product-Line Online Avalilability

If the Piano Superstore can ship me a 5 ft. 2 in. baby grand piano, you should be able to ship me a set of bookshelves in a box.

3. In-Store Inventory

One of the most disappointing things my wife and I noticed at IKEA was the amount of “oversold” stock that was still on display. Tempting your customers, only to dash their hopes of purchasing that low-profile circular bed that just can’t be found anywhere else really hurts loyalty. (Not that we were wanting to buy one of these-but someone out there was, I’m sure!) This could be IKEA’s weakest link. You know you’re popular, you know it’s summertime and sales will be higher than usual. You need to prepare. This is a basic management problem that can be easily remedied. (But please don’t recruit new managers from the Tulsa SuperTarget-they seem to have the same problem.)

4. Let Me Take Coffee into the Showroom

Come on IKEA, you guys are resourceful and creative. Get those product engineers working on a thermal “sippee cup” for adults so that I can enjoy some “Swedish” coffee as I explore your store.

It is with hesitation that I post these criticisms, as my overall experience at IKEA was unparalleled. Even from a marketing viewpoint, the store easily trumped the smalltown, family-owned shops I’m more accustomed to, and the products are far superior to the disposable furniture lines one can buy from Wal-Mart or Target. If you haven’t already, please be sure to read my previous post about IKEA’s Jekyll. We’ll be going back for sure. (I think I’ll get another two days next summer.)

While it’s sad enough that I don’t live in the vicinity of a store like IKEA, the thing that’s even sadder is that I planned my one and only two-day ”vacation” around visiting the home furnishings superstore with the Swedish heritage. Of course, the trip could hardly be called a vacation: an overnight stay less than four hours away from our front door. But in light of the fact that I am a teacher and I really do not get a vacation, since I (like most other teachers out there) also work during the summer months in order to compensate for the ridiculous salary teachers receive (don’t be fooled-summers are not “off” for most of us), this is about as big as it gets.

My 1½-year old daughter enabled us to go to IKEA two times in the two days we were visiting the Dallas area. Let’s just say, she got hungry and tired our first evening there, so we made a quick exit without having fully experienced the store. The obligatory second-day was fine because I enjoyed the store, and I was able to take a lot away from it in the way of branding ideas-and in the way of furniture. Obviously, IKEA is a very unique place. Below are just a few of my personal observations of things done right at IKEA:

1. Consideration of Shoppers’ Children

“Let’s go furniture shopping:” four words that would instill terror in any Webkins-savvy boy or girl. But not if the destination is IKEA. While there was not much IKEA could have done to soothe the savage beast who was my daughter our first evening there, it was surely not for a lack of trying. (Honestly, in her state at that point in time, an incarnation of Baby Einstein himself infused with the soul of every duck in the universe could have done little to curb her fit.) One of the first things I noticed when I walked through the sliding front doors is that IKEA had a place where children could go and stay while their parents shop. Smart idea. (Why don’t more malls have something like this? How about Lowe’s?) Through the front entry-way and up the elevator, much of what we perused was “experiential.” This is important in garnering (both young and old) kids’ interest. The kid’s-room area of the store was fun and engaging. IKEA knew that they had to sell both parents and children on their products, and they did a great job of putting the kid’s rooms together from a kid’s point of view. The elevator was spacious enough to accommodate 4-5 strollers. I wish I could remember all of the other kid- and family-friendly features I saw there-I just remember being impressed.

2. A Good Balance of Sales People and Space

My wife and I never felt “pushed” to buy furniture (the way we normally feel when we visit local furniture stores), yet when we had questions, an employee was almost always right there to help us. This was refreshing.

3. “All-Inclusive” Ideas

Were I to have seen many of the items in their store simply sitting on a shelf surrounded by other similar products, I would probably have been less interested in them. But when I saw their products “in action” in IKEA’s many faux home settings, not only did I recognize their utility, but I wanted to make the viewed item, nay the entire room, my very own!

4. Form and Function

IKEA’s unique furnishings are known for this; the store itself effectively followed suit. From the directional signs that herded people through the store, room-by-room, forcing customers to view products in a very well-thought-out order, to the self-shopping bins which purportedly enable IKEA to spend less on staff and more on keeping prices low, the store experience was clearly scrutinized by company marketers and honed down to a science. Their 5¢ bags at the check-out counter were a great tool for leaving a final impression. (The accompanying sign readily confessed that the charge was intended to deter people from using the environmentally unfriendly plastic bags. Proceeds were donated to a green charity.)

5. Good Products

For particle-board, the furniture we bought (some office and entertainment items) was very well made—far from the disposable, saw-dust cutouts which inevitably find themselves in pieces in nearby dumpsters after each big move. And one thing that I really liked was the solid hardware that came with each product. One big problem I have with DIY assembly products these days is that the hardware that comes in each package is so shoddy. But not at IKEA. The screws were solid. And I like the locking cams which hold stronger than a flimsy nail or screw, and actually allow for future disassembly should the need arise.

6. Pride in a Clearly Defined and Distinguished Brand

Any IKEA devotee would quickly acknowledge that this place is obviously more than just a place to pick up some cheap furniture-it is a branded experience. That which was most attractive was not simply the low prices; it was the environment which had been contrived and created very intentionally and quite completely. Someone actually sat in his/her office and thought, “Let’s put big blue arrows on the floor to point customers to the places we want for them to be and hang directional signs in case they missed anything. Let’s consistently maintain foreign product names that differentiate our products from the mindlessly, carelessly designated mass produced “necessity furniture” seen everywhere else. Let’s provide pencils and “order foms” throughout the store so that people don’t forget how they want to spend their money once they reach the self-shopping area.”—just a few of the easy initiatives that make IKEA products, service, and experience inseparable, and that translate directly into sales (sorry to tarnish the dream with this reality).

Time (and space) is up for today. Tomorrow: What IKEA could use.

Pandora.com-I alluded to this site a little earlier in the week but I feel I didn’t give it the credit it deserved. I’ve created 2 stations so far, one very Tool-esque, and the other based on the sounds of Skillet. Very cool site.

Zecco.com-You can’t beat free trading, but if you apply for an account today, don’t think you’re going to be trading tomorrow. The processing is a little slow (I have been put off for yet another 3-5 business days), but I have high hopes for next week!

Tuesday

BtoB vs. BtoC Word of Mouth- Andy Sernovitz, from Damn! I Wish I’d Thought of That!, addresses the issue simply and succinctly. Clip it in your “Classics” folder.

Just a Couple of Random Kooks- Cord Silverstein at Marketing Hipster shares a touchy experience with what seems to be a pretty closed-minded client. Check the comments too. And if you have time, read his post, Sprint - Please Help Me Understand…..

Why We’re Like a Million Monkeys on Treadmills- Steve Rubel at Micro Persuasion addresses what I feel is a very fascinating (and sobering) concern about social media: the fact that it is dynamic by nature. The implications? Corporate bloggers, you had better be contemplating what’s next and how it ties into your job description. (See related blog post here. Yep, more shameless self-promotion.)

Wednesday

I generally focus on marketing issues, but I couldn’t pass up this post by Sheldon Liber over at Bloggingstocks.com. I love it when “genuine Wall Street gibberish” (to use Jim Cramer’s term) is interpreted as succinctly as this article does with “quality of earnings.”

Thursday

Another great from Bloggingstocks.com, also by Sheldon Liber. Chasing Value: Cruising past the GAP - the stores & the stock scrutinized Gap stores from both a marketing and investment perspective. Interesting how very closely these two are connected, how everything that can be said of Gap’s marketing can also be said of the investment opportunity. It’s kind of sad-I remember back when Gap stores were more remarkable. But I do love Piperlime.

Community Jumpers- An interesting post by Eric Brown (WeirdGuy) about how “fickle” members of the Social Media Community are. Considering the age group of the majority of FaceBookers and MySpacers, I think that the implications for teenage marketing are clear.

Convenience at a Cost- Jeremy Nedelka at Think Customers: The 1 to 1 Blog addresses a very real concern that particularly affects marketers who focus on service industries. Unless the brand identity your company is hoping for is “Impersonal,” self-service may be a move that should be scrutinized closely.

Friday

Target Ads Drew Me In and Then Fell Short- This post by Kelly Mooney of mooneythinks.com made me realize the importance of yet another aspect of Services Marketing and the Branded Service Employee: cross-channel communications. Most of my past focus has been on specific employees at individual sites, but efficiency and branded service across channels is what makes companies like Tulsa-based Quik Trip so successful. Interesting post.