Well not really 'a day'. In fact it doesn't specify which day. Just "A DAY". You will get a 'thought' when there is one worth getting. Maybe I should rename the site "Try to have a thought a day" YOU CAN HAVE 'MARKETING THOUGHT A DAY' RSS FEEDBLITZ EMAILED TO YOU BY VISITING WWW.MICHAELKIELYMARKETING.COM.AU AND SIGNING ON FOR THE SERVICE. (Not every day, thought. You won't ready them all.)

Friday, June 30, 2006

It's not a crime

Hi,

I met a man in Brisbane years ago. His father was mentioned in a Royal Commission as an organised criminal. (Not an efficient lawbreaker, but a member of an organised crime syndicate.) His name was Tony. Same as his father. Tony Jr was in the night club business legit. He was too smart for the crime business.

He told me a story. He opened a new night club in Brisbane, in the Valley. Didn't spend a cent on advertising, but the queues to get in on the first night of business stretched right around the block.

How did he do it? Well, Smart Tony (Big Tony's son) threw the best private party Brisbane had ever seen, two nights in a row before the opening night. And guess who was invited? Hairdressers. All the hip and happening hairdressers in Brisbane. They had a ball. And guess what they were talking about for days afterwards to those hip and happening girls trapped under their hairdryers? That's right: Smart Tony's new club.

And where do boys go? Where the girls gogo.

(This stuff is priceless. Tell your friends or they'll hate you.)

Cheers!

Michael Kiely

Finding "Influentials"

Good morning,

Now we know that a small group of people within any community are word of mouth "nodes". Some call them 'influentials'.

Next challenge is to find them. There are three types of 'nodes' or 'network hubs': 1. 'Mavens' 2. 'Connectors' 3. 'Salespeople'

Mavens are information junkies. Connectors are highly connected socially and in business. Salespeople can't help selling their friends on the latest piece of 'the new' they have acquired.

A 'network hub' is usually a combination of all three.

How do you find them? They visit expos and trade shows. They volunteer for information, eg. sign up for updates. They subscribe to specialist magazines and websites. They join test panels and pilot schemes. They put up their hands for beta versions of product. They sign up for webinars. They go to networking functions. They are journalists and editors and event organisers and association executives and politicians and community organisations leaders and volunteers and church leaders...

Cheers!

Michael Kiely

The networked consumer

Hi,

One-to-one marketing is an old paradigm because it fails to account for social context. The average funeral has around 200 mourners. This means the average person knows around that many people well enough for them to bother turning up to say goodbye.

Humans are hardwired with 'social channel capacity', says British anthropologist. Our brains have a capacity to maintain 10-15 'intimate' relationships, 150 or so 'social' relationships, and between 500 and 1500 'acquaintances'.

So each individual you engage is actually the centre of a network. How does this change your perspective?

Cheers!

Michael Kiely

Not all mouths are valuable

Hi,

Remember Pareto's Principle - the 80:20 Rule?

It applies to word of mouth. Not everyone feels confident enough of their opinions to want to share them with others.

In fact, it is less than 20%, according to experts in the area who put it closer to 10%-15%.

Now that makes word of mouth marketing manageable.

So now we have Kiely's WOM Rule No. 1 - target talkers. (Rule No.2 - give them something to talk about. Rule No. 3 - encourage them to talk about it. Rule No. 4 - keep your ear to the ground.)

Cheers!

Michael Kiely

Low trust drives word of mouth

Hi,

The reason Word Of Mouth is gaining traction in the marketing community is because marketers need more credible channels of communication, having polluted the others with spin and bulldust. People are less likely to trust companies now than ever before. US figures reveal the percentage of consumers who consider information from companies is believable hovers at 18% for automotive companies, 16% for insurance companies.

Who do people trust more than companies? Each other.

Cheers!

Michael Kiely

Infectious ideas

Hi,

Malcolm Gladwell in The Tipping Point talks of ideas spreading through society like an infectious disease. New ideas are like germs. Some of them reach critical mass and become epidemic. Some of them fizzle out and die.

Some products are more 'word of mouth worthy' than others. They include exciting entertainment products like books and movies, naturally innovative products such as new web tools, 'personal experience' products like hotels and airlines, complex products such as software and medical innovations, expensive products such as IT and electronics, and observable products such as fashion, cars, and cell phones (wearable technology).

If you need to be convinced, here is a selection of the evidence for word of mouth (WOM) that I have collected over the years:

65% of Palm Pilot buyers heard about it via WOM.
Friends and relatives are the No. 1 source for information about destinations, flights, hotel, etc., according to the American Travel Industry Association.
57% of one Californian car dealer’s customers heard about it by WOM.
70% of Americans rely on WOM when choosing doctors.
53% of US moviegoers rely on WOM recommendations.

In fact, movies live or die via early reports from friends and rels. It used to be that a dog of a movie could survive a week or so and make some money before the word of mouth tide came in. But now the 'dogs' die overnight in the US as viewers send text messages to their friends to give a bad movie the thumbs down while they watch it.


Cheers!

Michael Kiely

Will word of mouth work for you?

Hi,

Some categories are naturals for word of mouth. In fact, some have word of mouth built into them. Movies. Sports. Fashion. Pop music. These fields fuelled by and live or "the new". News is central to their essence. They are disposable. They have a use by date. Their uptake is nearly 100% driven by word of mouth. IT products come to life because geeks can't stop talking to each other about them. Some famous brands have been pure WOM, including Palm Pilot (very visible public usage), Walkman (ditto), HotMail (pass-it-on built in), Viagra (news for some), and Starbucks (a place to talk).

In fact a brand that relies on something as old-fashioned as advertising to launch it is as old-fashioned as advertising.

Marc Andreessen, co-founder of Netscape, said: “The myth is that brands get built by advertising. The evidence is exactly the opposite. Brands get reinforced by advertising, but they get built by grassroots adoption and word of mouth. That was true of Amazon, AOL and Yahoo.”

The new medium is social networks and you must learn how to use them if you are to remain relevant.



Cheers!

Michael Kiely

Running off at the mouth

Hi,

In 1984, when I was looking for a first computer to buy, my friend Andrew showed me his 128k Apple Macintosh. I was captivated. It was so easy. I bought a 512k "Fat Mac". I took it to work in an multinational ad agency and, when the boss saw I could turn out presentable documents, they got all the copywriters Macs and "restructured" the typing pool who took the copywriters' typewritten copy and retyped it into a Wang word processor. When the President of the company from New York visited and saw our system, the company adopted it worldwide. Apple made millions and my friend Andrew never saw a cent for it. But he made the sale.

Word of mouth is the best advertising. People have been saying that ever since I can remember. But it's only recently that word of mouth has become a discipline and a channel of communication.

I collect data on word of mouth. In every case when it is measured fairly, it outperforms any other communications channel, including television. Word of mouth is powerful because it spreads rapidly, gets into places other media can't, carries with it the credibility of a personal endorsement.

But here's the rub. While every organisation doesn't have advertising, everyone has word of mouth. Because people talk. Word gets around. You can manage word of mouth, or you can let it manage you.

Cheers!

Michael Kiely

A short, personal note

Hi,


One of the most effective mail pieces I have ever seen was created by my ex-partner Barry Groom. A postcard from Cannes, with handwriting in blue, including crossed-out mistakes, from Steve Visard, was sent to members of the Screen Producers' Association to goose numbers attending the annual conference. It had humour and personality, and the impact of 'faux' personalisation which wasn't hard to see through. But a personal post card is the first thing you look at when collecting your mail. Short. Personal. Usually from someone close.

The conference had its attendance records broken.

Do you see the theatre and dramatic potential of direct mail?

Cheers!

Michael Kiely

Direct mail doesn't work

Hi,

Direct mail doesn't work if... IF...

1. You send it to the wrong people.
2. You don't have a compelling proposition to deliver.
3. You don't spend enough on compelling creative.
4. You don't compare the cost per sale arising from mail with that achieved by other channels.

Targeting will account for around 60% of the outcome of your mailing campaign. The Offer you deliver will account for around 30% of your outcome. And the creative around 10%.

(By the way, all these principles apply online as well as offline.)

Cheers!

Michael Kiely

Why such a small list?

I promised to tell you why we chose to only mail 550 company directors to launch the Park Hyatt Sydney. They were mainly Sydney based as well.

We did our homework and at the time the cross-board membership in Australia's top echelon companies was so strong - everyone sitting on everyone else's board - that we calculated we could hit 2000 boards by targetting 550 directors. As the senior corporate traveller (inbound) was our core target, we felt the local senior corporates would WOM (word of mouth) them for us. And they did. The Hyatt opened at 75% occupancy during the "Recession We Had To Have" - ahead of the Regent's suite levels in both occupancy and rack rate. Unheard of.

The night we were assembling the mail pieces - at a total cost of $120 per impact - I took the client (Willi Martin) aside and confessed to him that I didn't think it was going to work. (What ad agency would do that?) I'd spent his budget on 550 people. And I was afraid it wouldn't work.

"Oh, it will work, Michael," he said in his melodic Swiss-German accent.
"I know it will work.".... And willi was right. Three mail bags full... And an award from the US direct marketing association (who cares?)

(For those who have joined us in the last few days - and new members are coming in at a dozen a day - I reproduce the episode below.

Cheers!

Michael Kiely

"Send 'em one white sock"

Hi,

Direct mail pioneer Stan Rapp wrote a book called "Send 'em one white sock", the title referring to a mail campaign conducted in Australia. Single socks were sent out to prospects with the promise of a matching sock if they responded. This is yet another talent of old fashioned mail: you can send objects.

And objects can carry so much meaning. I achieved a 55% response to a mailing which launched The Park Hyatt, Sydney, aimed at 550 company directors of Australia's 200 largest companies. That mailpack - which cost $60/unit - included a slide viewer and 10 slides, a walkman-style audiocassette player with a 10 minute audio tour of the hotel, and a blank cassette on which they could dictate their answers to a survey. The survey results appeared in Australian Business magazine (a competitor of BRW) was launching a body we invented called The Australian Business Leaders' Forum. The surveys and reports were arranged through a partnership with the magazine which became a co-sponsor of the Forum. The surveys became quarterly. Members were rewarded with 2 free nights at this spectacular new hotel on Sydney Harbour, just beneath the Harbour Bridge.

This is why were went to such lengths. We had a 6 star hotel beneath a suspended railway bridge. How could we demonstrate the silence behind the double-glazed doors leading out onto the balconies looking over the bustling waterway? They had to hear it to believe it. Hence the cassette, etc.

The intrigue and interest of the various objects appealed to the child in our prospect.

Why such a small number of recipients? Tell you tomorrow...

Cheers!

Michael Kiely

Happy Birthday Yr Maj

Hi,

Today is the Queen's Birthday. Well, it's not really Her Majesty's real birthday. It's the official day set aside in Australia - once called "The Land of the Long Weekend" - to celebrate. Largely nothing of a 'birthday' nature occurs in Australia on this day. In fact the Queen hands out the gifts in the form of 'gongs' - Orders of Australia, remnants of the knighthoods and damehoods the British Monarch used to bestow on her grateful subjects her in the colonies. They are handed out to a few high profile achievers to boost the publicity value of the gongs, but mainly they are bestowed on elderly members of the community who have done good works.

Every community has decaying remnants of the past that pass unnoticed. They can be very useful in a marketing calendar. Throw a Queens' Birthday Sale. Give away photos of the Queen and copies of the words of the National Anthem and little Australian flags with every purchase. SO what if it appeals only to monarchists. It creates energy around your outlets. No one else is likely to do it, and you can bet at least half the population would lie to celebrate the holiday by going shopping.

Another event-related strategy could involve our organisation announcing its own community service awards. No one could complain about that, and the publicity a local level would be positive.

Every social institution can be used to develop marketing ideas.

Cheers!

Michael Kiely

You got mail

Hi,

I can remember when direct mail was sexy and new. (I'm that old.) Now email and the Internet and all that jazz is centre stage... Now mail might be as old as Adam and Eve, but so is sex and that still has its uses.

Snail mail has one unique capability that no other medium can equal - it can deliver tactile experiences, objects, into the hands of your prospect. Unfortunately this talent is rarely used.

Rich media email cannot have the same impact on the sense of touch and smell that snail mail can deliver. Email can deliver sight and sound. Snail mail can deliver sight and sound and smell and touch.

As such, snail mail can deliver far more emotional impact. Think of an invitation delivered by both channels. The tactile dimension of the snail mail piece - simple by the choice of paper stock and inks - can say more about the event than all the words.

More on this next week.

Cheers!
Michael Kiely

"I am dying"

"I am dying"

This was the headline of the best ad I have ever seen in a newspaper. It appeared up the back in an evening tabloid called The Mirror. No more than 10 centimetres by 2 columns. It had the headline in large capitals and wavy line around the borders. But it wasn't the border or the typesetting that made it stand out like dogs. It was the words.

"I am dying" Who's not going to look at that. Someone is telling us their tragic story. We love tragedy. That's what we buy the newspaper for, to see what terrible thing has happened to some poor victim today...

But wait. When we read the copy underneath the headline, we find it's talking about us.

"So are you. So is everyone reading this advertisement. If you have any money left after a lifetime of paying taxes and bills, don't let it end up in the pocket of an expensive undertaker. Tear this ad out and hand it to the most sensible member of your family.

"Labor Funerals
(Phone number)"

The perfect ad. It starts with 'news'. Then it includes you in the story. As an individual. Then as part of a larger group so you don't feel alone. Then it hits a nerve - a lifetime paying taxes and bills. Everyone is chained to that wheel*

Finally the call to action. Always tell the reader what to do. Make the decision on appropriate action for them.

This is an elegant solution. Not one word more than is needed. No puns or creativity. Just body punches, one after another.

Amen.

Michael Kiely

*Except Kerry Packer. You can bet he didn't have to use Labor Funerals, because The Prime Minister decided that, after a lifetime of watching the Big Fella avoiding taxes, the taxpayer could foot the bill for his funeral - $80,000. That's a good reason to go into mourning.)

Use news

Hi,

Last thoughts about newspapers:

When you advertise in a news environment, it helps if what you've got to say is "news". Newspapers were first used for announcements. Make your ad an announcement. It's what people are looking for.

David Ogilvy tells the story of a time way back when he looked in the 'paper and saw the most excruciatingly bad ad. It simply read "H. Smith & Co. has time available of its screw-making machine".

DO rang the guy and told him: "That's not how you advertise. You should focus on the benefits of the product for the user."

"Mate," came the reply. "There's so much demand for those damn screw-making machines I only have to say we've got some time available and they come running!"

The power of announcement.

(Tomorrow I will tell you about the best advertisement I ever saw in a newspaper. Pure gold, and no bigger than 4 postage stamps.

Cheers!

Michael Kiely

Powerful print points

Hi,

They might not be hip and happening (more like hip-replacement). But newspapers are cool if you think successful communications is cool. Newspapers represent the end point of the survival of the fittest in all things to do with how humans in the western world like to have pages designed for reading. Newspapers which have defied the "Rules of Reading Gravity" (as codified by Colin Wheildon in "Communicating or just making Pretty Shapes") have failed to survive. Editors know what people want on the page to gain access to the information within. Advertising designers often don't or don't care, thinking that by breaking the rules they will attract more readers and therefore help their clients achieve their communications goals. WRONG.
For instance, why are the headlines in the articles (the things the readers by the papers for) always above the copy when headlines in ads often appear below the copy? Why is body text in articles set in 10+ point serif fonts when advertising designers prefer tiny san serif fonts? (Serifs are the little lumps at the ends of some letters like with Times Roman. Univers is sans serif.) Why do all photos in the newspapers always have a caption to explain what is going on in the picture? Advertisers don't bother with them. But then the punters don't vote with their coins everyday for the advertisers. They vote for the articles. And they've trained the editors and designers of the newspapers how they went to receive information.
There are a lot more secrets to communications success hidden in newspapers. Just look at what their designers do everyday, with boring repetition, and ask yourself, "Why?"

Cheers!

Michael Kiely

Read all about it

Hi,

News. The best advertising is news. News captures attention because it's new. Consumers live for "the new", the latest thing. The original news media was a tomtom drum. Then came the town crier. But shortly after him came the newspaper. And it's till with us today.

Why would such old technology survive in today's hyped-up, hooked-up world? One word: convenience. You can take it anywhere. You can change the screen size in a second merely by folding it. It's always easy to tell where you are and go from section to section without getting lost. There's no download time. (It's still faster to find a phone number in the phone book than online.) It allows the reader to view short summaries and drill down to longer items. It delivers a balanced diet of entertainment, news and important information. It is edited for you by the best in the business. It is written by skilled writers (unlike the crap that appears online sometimes).

It can't beat radio for immediacy or television for movement or the Internet for diversity. But newspapers have a special place in our society that defies explanation. Perhaps it's the only medium you can wrap things up in and throw them away.

Whatever it is, don't underestimate the power of the press.

Cheers!

Michael Kiely

In your face outdoors

Hi,

Outdoor can be shotgun. But it can also be very contextual. Jon Maxim provides the following examples of outdoor used with sniper-like accuracy.

"Outdoor is an interesting one from a DM position.
My example of outdoor as a 'directional', response driven medium is
McDonalds.
How often have you been on a long trip, driving to (say) Canberra. A poster
says '145km to Maccas', and you think "Yeah, I can wait...!"
I also remember going to the Volkswagen headquarters in Sydney. Arriving
early, I parked my bum in a bus shelter to have a cigarette. I looked up,
and there was a poster saying 'Welcome to Volkswagen's Australian
headquarters'.
Singleton's also use the bus shelters outside their offices to showcase
their latest campaigns.
Finally, I remember a story about a client who wanted 10 new customers. They
had $100k to spend.
So they bought billboards opposite the offices of the ten clients they
wanted. Imagine the power of 'Michael Kiely: we want your business' in your
face for a month!"

Cheers!

Michael Kiely

Snipers outdoors

Hi,

You'd imagine that putting a few billboards and posters up around the place would be a pretty haphazard way to target particular consumer groups. But it is actually finely tuned. Outdoor advertising companies learned to do their homework in the bad old days when it was considered the leftover medium - outdoor and direct mail got what was leftover from the budget after tv, print and radio (a little leftover itself) took their slices. Outdoor companies researched who travelled where and when until they can now deliver targets with as much accuracy as television (that's not saying much), pritn or radio. You can buy shopping centre catchments. You can buy commuter routes. This is why you see so much FMCG advertising outdoors. It's almost the only way to get your message in front of shoppers, that category having been exploded by the discovery that men can emerge from a supermarket with a trolley of groceries as easily as women can, (though it takes a little longer and they forget important things and buy rubbish at times).

Cheers!

Michael Kiely

The great outdoors

Hi,

Before television arrived in 1956, radio was king. But there was only one mass medium: the newspaper. Especially the evening newspaper. There were usually 2 tabloids. Every bloke going home from work would have the paper under his arm, read the headlines and the sports on the tram, then hand it to the wife who'd read the woman's page and look at the specials in the retailers' ads. The eyeballs were all in the same place.

TV destroyed the evening paper. From 2 papers to 3 channels (commercial) wasn't too much fragmentation and mass advertising made mass marketing possible. Eyeballs in the same place.

Then came cable TV and the internet, DVDs and the resurgence of cinema. Television got the wobbles as the mass audience fragmented. Eyeballs going everywhere. Advertisers saw the writing on the wall.

The only place all the eyeballs can be trapped now is outdoors. Everyone has to go outdoors at sometime. Outdoor advertising is the last mass medium. That's why every static and moving surface - even the moon - will eventually have an ad on it.
-

Cheers!

Michael Kiely

RAdio is hands on

Hi,

Radio is a hands on medium. IE> the listener has usually got their hands full of something (steering wheel, vacuum cleaner, computer keyboard, etc.) while listening. This means it's not the best direct response medium. Listeners have to put down what they are using and find a pen to write down a number. Inconvenience blocks response.

But there are situations where it can work:

Callers in cars (using hands-free, of course) can respond easily.
New digital radios will allow telephone numbers to be displayed and recalled.
Some stations in the UK run an "If you missed that number..." service on the hour, repeating advertisers' numbers from the preceding hour.

Apart from straight retail, radio is a great way to boost response via other media. EG. by directing listeners to the Yellow Pages or a website (web site names can be more memorable than telephone numbers) or to an ad in the day's newspaper. Or even to a television commercial later that night. (The channels promote their programs on drivetime radio. Why not flag your new commercial to boost viewing? You spent millions making it, a few hundred promoting it is peanuts.)


Cheers!

Michael Kiely

Radioactivity ideas

And another thing about radio is that it can create community.

Hugh Mackay described talkback radio as the 'electronic neighbourhood'. Listen to late late night talkback and you'll hear callers referring to to other listeners and regular callers - a community of insomniacs.
Here's an idea that I gave to Toyota some timeå ago which they didn't action but which you might adapt::

Select the lowest rating talk station in your catchment. Select its lowest rating time (within reason) and offer to buy an hour or two for twice what they would make as ad revenue for that time (Peanuts).

Run your own talkback session for your customers and users of your product. Advertise it in the media and have some product boffins availabel to answer qquestions.

Pretty soon you'll have a lot of customers (and prospective customers tuning in.... A community forming around your product.
--


Cheers!

Michael Kiely

My buddy on the radio

Hi,

Radio has another strength: it is a personal medium. People have very close relationships with their radio stations. Your choice of station is very personal - and says a lot about you. People consider the radio a companion.

This is why people like Allan Jones and others become tribal leaders. Hitler used radio heavily while establishing his Nazi regime because he recognised that it reached down into the soul of the listener.

Few advertisers exploit this personal dimension.
--
Cheers!

Michael Kiely

Radio sux

Hi,

(Said with feeling) Radio is a creative wasteland, a garbage dump of commercial messages that bark at the listener like rabid dogs. (SFX: 2 Doberman dogs barking) It's tin pan alley tonality derives from its peculiar power to promote retail events. (Carnival sounds) It's immediate, in the car and the kitchen, 'do it now' messaging make it ideal for retailers.

It is also cheap to produce which accounts for the cheapness of the product. Most of it is made by the stations themselves. (SFX: Slops being poured into a bucket) So the industry is responsible for the aural stench coming out of your radio. (Voice: "Phew!")

Radio has great potential as a creative medium. In the 1930s, Orson Welles caused mass panic across America when he put to air a dramatisation of HG Well's "War of the Worlds" which convinced the nation that Martians were invading. (SFX: Dramatic music, sounds of screaming crowds fleeing) He was able to be so realistic because of a mechanism called "Theatre of the Mind". This is a peculiarity of the imagination that enables it to paint vivid pictures based on sounds alone. The Goons Show is an example. With cheap sound effects, one can take the listener - via their imagination - into fantasmagorical worlds, painting any scene or action you want, each one tailored by the individual's imagination to that individual. (SFX: Sound of massive car accident in surround sound. Followed by sounds of harps and choirs. Male V/O: "Welcome to Heaven")

Television leaves nothing to the imagination. It's harder to write for radio than it is for TV.

The British are best in the world at this stuff. Contact Commercial Radio Australia and ask to hear the latest British radio awards reel.

(SFX: Carnival sounds, brass band. Male V/O: "That's right folks, don't touch that dial....") One advantage of entering the radio arena with a half decent commercial - yours will stick out like dogs amid the putrid dross going to air at present. (SFX: Sound of couple making love.) OK, That's enough of that... (SFX: Blind being drawn down)

--
Cheers!

Michael Kiely

SHOW ME SHOW ME SHOW ME

Hi,

I've seen it so many times. A limited budget. Choosing a media mix. Use most of the money for television "because that will give us the biggest bang for your buck"/"nothing is more powerful than television" (are they still saying that?) But media should be selected for what it is good for?

Awareness? TV is (or was) good for this, but it's reach is declining (free to air). While moving pictures with sound has proven best for evoking emotion, TV is also very good for demonstrating the product in use.

I've often wondered why car companies don't run infomercials in fringe time, to demonstrate all the technowizardry they are so proud of (and which is impressive and generates word of mouth). TV is perfect for a visual tour.
--

Cheers!

Michael Kiely

Bettermousetrapitis

Happy Monday! (Or Sunday, depending on your timezone.)

On the last three occasions that I took briefs from clients, they all presented with with symptoms of Bettermousetrapitis. They had all these technical reasons why their product was superior, but they were bewildered why the market chose to favour someone else.

It's hard when you work so hard on a product, and you're with it all day, hard not to get blinded by the data.

Most decisions to purchase are based on emotion. The buyer may speak rationally about the process - listing technical details as reasons for their decision. But they are simply covering up the fact that self image or insecurity or any one of a thousands variants of these two basics are driving their decision.


Cheers!

Michael Kiely

Video vampires

Hi,

You've got a new brand to launch. You need cut through. Someone suggests you use a celebrity to get some 'borrowed interest' behind your quest for attention.

WRONG!

Only well established brands should flirt with celebrity spokespersons. Why? Because the audience will remember the star, not the brand. The star 'vampires' the attention.

You pay them big bucks to promote themselves.

Using a star is a sign of laziness in any agency that recommends it. It says "Dear Client, your product is so boring we can't get excited about it, so we want you to pay a small fortune to add interest, cos we don't have any."

RULE #1: Make the brand the star!
--
Cheers!

Michael Kiely

They're on your side

Hi,

When you are sitting in a room watching a speaker about to start giving a presentation, do you think, "I hate this person. I am going to hate their presentation." Or do you look forward hopefully to the presentation, hoping the speaker will be good?

Unless you're a particularly bloody-minded individual, you'll be hoping the speaker is good.

So when you get up to speak remember that. The audience is on your side. They want you to be good. They'll laugh at anything slightly amusing. They want to be entertained. The last thing they want is to be BORED...

They're on your side.

Cheers!

Michael Kiely

The room is yours

Hi,

When you are presenting remember you are the boss. You are the ringmaster. You are Jerry Springer and it's your show. Don't hide behind the lectern. Do even stay trapped on the dias.

Get down among the people. Look them in the eye. (Check the microphone won't cause feedback before the show begins.)

Walk back and forward in front of your slides. Point. Gesticulate. Wave.

Walk to the back of the room. Escort latecomers in and help them find a chair.

Own the room. It's yours.

Cheers!

Michael Kiely

Wednesday, June 14, 2006

Promise the world and deliver Tasmania

I realised at 2.52am on Tuesday morning that I had forgotten to send you my thought of the day for Monday. I apologise for that.

But my failure has spawned my thought for the day for Tuesday:

An advertisement is a promise made to the consumer about their experience with the product or service.

Does your organisation promise the world, then deliver Tasmania? (No disrespect to Tasmania, but it is not the world.)

You don't have to use ads to make promises - we make promises in all sorts of ways everyday. In marketing literature. In sales presentations.

Customers remember them, even if you don't.

Always try to deliver a baker's dozen. Deliver more than you promise. It delights customers and they remember it.

Saturday, June 10, 2006

Manipulated in the supermarket

Ever wondered why the milk, bread and meat sections of the supermarket are always down the back of the store?

That's right - to get you to walk past all the other stuff to get to the essentials.

The point of sale people used to claim (I don't know that they still do) that 80% of purchase decisions are made in store and on impulse. If they are only half right, those shelves are seductive.

Make a habit of thinking about the sales environment when you are in one, like a well-organised retail outlet. You will learn a lot about creating the sales infrastructure. (More things to look for in our next 'thought'.

Where ends mean big beginnings

They're called 'Goldola Ends'. They used to be rounded like the prow of a boat but they can be any shape. They're the stacks of product ("pile 'em high") at the end of supermarket aisles.

And they are hot!

Anything in a goldola end instantly becomes desirable. It seems that consumers believe they're getting a good deal - like some sort of 'discount barrel' effect. Yet see how neglected the real discount barrel is.

Could it be a case of body language? I remember some research into sales promotion graphics from the 80s which found that people react to the appearance of a sale, whether the discounts are genuine or not. Big gaudy 'sale' signs evince the same reactions from consumers, no matter the substance of the savings.

Go figure.

Hot spots

Continuing my meandering on merchandising:

Merchandising planners decide carefully where products appear of the shelves because some spots sell more than others.

There's an old saying in the retail trade: "Eye height is buying height."

It means that on a 7 level shelf arrangement, shelves 4 and 5 will move more product because the shopper can see the product without peering down or stretching their necks upwards. The amount of product moved by these two shelves is extraordinary. These are called the primary hotspots in the store.

Supermarkets don't use their top shelves for different product brands or variants. They use them to store more of the same product that appears on the primary hotspots.

Naturally there is competition for this space. Supermarkets actually charge brand owners for he privilege of being there. They charge 'slotting fees'. It's valuable real estate, so they charge like a wounded bull.

What is the marketing principle behind hotspots, do you think?

I think it is convenience, that universal consumer standard. Life is hard enough without having to peer down or strain upwards (really)...

Pile 'em high, watch 'em fly

In the supermarket on the weekend I found myself in the lemming-crush that forms when consumers are deprived of a shopping day - 24 hours hanging out for a visit to the mall.

It got me thinking about the way our surroundings are designed to sell stuff. The people who run them know exactly where to place the product to entice you to pick it up. They have learned a bunch of things which I will share with you over the next few days.

First thing they learned was "Pile em high, watch em fly." Pile product up - it doesn't matter what it is - near the front of the store and it literally flies out the door. Why, we can only speculate. I learned this while doing a consultancy for the NSW liquour traders several years ago. They were wanting to move into the world of modern "merchandising", so I took them there.
Why do they fly when you pile em high?

Body language.

It looks like there's a good deal going. It may not be a good deal, but people don't have their analytical mind fully functional while out shopping.

The best fruit shops, fish shops, car retailers, etc. all know - a lot of product draws the buyers.

Do you have a lot of product piled up near your 'front door'?
Cheers!

Silence is golden 2

Hi,

Yesterday I told you to SHUT UP when you delivered the punchline in a sales presentation (ie. Asked for the order).

Today I'm telling you to SHUT UP when the prospect says "Yes". Stop selling when you've made the sale.


A lot of sales people fall in love with the sound of their own voice - especially when the prospect has given them a round of applause with a big "Yes". They continue in the same vein, enjoying themselves.

But prospects who say "Yes" will very soon be subject to "post purchase remorse", afraid they might have made a mistake. It's time to reassure them they have made the right choice. Stop making promises and start delivering on them.

The more you rave on, the more likely the prospect will find an escape hatch.

So once you've made the sale, Shut up!

Silence is golden

Hello,

Sometimes it's what you don't say that secures the sale.

When you've delivered your pitch, said all you set out to say, and asked for the order... SHUT UP AND WAIT FOR A RESPONSE.

If you talk some more, you lose. You break the moment of drama that your presentation has been leading twoards. You let the pressure down; give the prospect a break in the traffic to scurry away, with a 'we'll think about it.."

You simply must resist keeping on selling when it's their turn to speak.

Remember: SHUT UP.


(Tomorrow: How to talk yourself out of a sale.)

MAke it easy

There is one constant in the onward march of consumerism: convenience.

People will inconvenience themselves to get greater convenience. Spend hours in the car, battling traffic and looking for a park, to get to a store to buy a device that will save time and effort.

Labour saving devices. We'll buy any amount of stuff to save making an effort. Then we buy a gym membership so we can pay to make an effort.

How does your product make life easier for buyers?

How could you change it to offer more convenience?

The secret radio station

Everyone you meet has an invisible set of headphones on and they're tuned into the same radio station - WIIFM*.

*What's In It For Me?

Even if they are charity donors.

I was once dining with a famous psychologist (so phamous I can't remember his name) and asked him if there was any evidence in the scientific literature that altruism exists. He said "No".

All behaviour that appears to be altruistic is rewarding the ego rather than denying it.

No one cares about your brand or your product unless they do something for them.

"Make me feel important"

Mary Kay Black, who has the dubious honour of founding the Mary Kay Cosmetics direct sales/network marketing empire, once gave the following advice to her 'girls':

Treat everyone you meet as though they all wore a placard around their necks which read: "Make Me Feel Important"...

A lesson from Lenin

"Ceaselessly explain" said VI Lenin, the Father of the Russian Revolution.
Whatever you thought of the Soviets, the achievement of turning one of the world's largest and most conservative countries on its head was amazing.

While there was a fair bit of rifle butt and gulag involved in convincing the Russian people to follow Marx, there is a lesson for marketers in Lenin's words.

You should bore yourself with your message because you are ceaslessly explaining. Your technical superiority, your advantages over the competition - only by ceaselessly explaining will you get your point across.

This is because people aren't likely to be as enthusiastic about your marketing communications as you are. They have their minds on something else. Unless you are monotonously explaining your story, you won't be there when they eventually decide to pay some attention.

Is it a boy or a girl?

Hi,

We have a guest columnist today: DM tyro Douglas Nichol sent me the following observation after yesterday's thought "Don't forget my heart":

.....

Michael,

Re "Don't forget my heart":

Men tend to be left brain thinkers and want the facts and little else. Australian society is becoming more feminized and the danger is we forget how to sell to men.

This has been tested in the UK charity Help the Aged, who traditionally had taken the classical right brain emotional approach to donor acquisition regardless of gender. They rewrote this direct mail piece to be an extreme left brain fact driven communication. When this was mailed to men it generated an 85% improvement in response rate-which as you know in Charity DM is a windfall! Interestingly when this pack was mailed to women there was only a 15% decrease in the response rate.

Cheers

DN


Douglas Nicol

Don't forget my heart

On the last three occasions that I took briefs from clients, they all presented with with symptoms of Bettermousetrapitis. They had all these technical reasons why their product was superior, but they were bewildered why the market chose to favour someone else.

It's hard when you work so hard on a product, and you're with it all day, hard not to get blinded by the data. (Thank God clients can't see the emotional reality of the market dynamics surrounding their offering - or there'd be no need for marketing consultants.)

Most decisions to purchase are based on emotion. The buyer may speak rationally about the process - listing technical details as reasons for their decision. But they are simply covering up the fact that self image or insecurity or any one of a thousands variants of these two basics are driving their decision.

So, Client, what are the emotional dimensions that drive decisions in your category? And how do you measure up on them? A little less time talking technical data and a little more time 'romancing the brand' will see you back in the hunt.

Lust and fear

There are only two fundamental drivers of human behaviour:

1. Lust for gain
2. Fear of loss

Direct marketers know - because every direct response campaign is an experiment with measurable outcomes - that people will do more to prevent a perceived lost than they will to gain something.

Express your proposition in terms of the potential losses it avoids - 'hidden costs" is a good thing to calculate - and you'll sell more than if you simply recite the benefits buyers will enjoy.

Focus for results

My friend Dan Byrnes gets 40,000 hits per month to his website.

Here's how he does it: "All I can tell you quickly is that the way to get
good strong sets of hits is to do a website so good on a topic, that
finally with the assistance of Google, via keywords etc, the website
begins to own the topic."

Laser-like focus is his secret.

Check it out at www.danbyrnes.com.au

Late, not great

The only thing I want to be late for is my funeral, but Laggards would be late for anything.

The Laggards:

(1) not opinion leaders,
(2) isolated,
(3) look to the past,
(4) suspicious of innovations,
(5) long decision process, and
(6) limited resources.

If you're fishing in this pond, good luck. Just know they are there, wearing their cardis and drinking chardi...