I’ve been holding onto this one since last month.  I came across an article on Bnet.com, titled “Should we advertise on Glenn Beck?” by the CEO of Blinds.com an online store that sells all types of window blinds.  You can read the story for yourself but in short, he thought a good place to find a demographic for his company’s products would be consumers who listen to Glenn Beck’s radio show.

Within a week, he received a boatload of hate mail.  In his words, “It took all of about 6 days before the vitriolic verbal attacks against me and my company rolled in via Twitter. And they’ve been nasty — I’ve been called everything from a Nazi and a homophobe to a slew of other names that if published here my editor would surely censor….One day last week, within 24 hours alone, I received hundreds, if not thousands, of tweets along these lines.”  He went on to say that he never had any intention of endorsing Gleen Beck’s views.  In fact, he said he never listened to the guy.  All he was doing was looking for a demographic.

His article piqued my interest because we do so much consulting to clients about aligning corporate values with those of customers.  We know value is important but today’s consumer still wants more.  So I looked him up and sent him this email:

Dear Jay,

I consult on these types of issues with a lot of clients that are foreign countries and their industries.  As a large part of our business is foreign, I think it gives us some 30,000 foot level perspective on the U.S..

One thing I tell them, that you’ve discovered, is that Americans don’t just want value, they want values.  It’s both a negative symptom of our political and media polarization and a positive manifestation of our increasing awareness of globalism and multi-culturalism.

It’s not enough to buy an audience or demographic any more.  You have to consider how your values and those you espouse through your company relate to or resonate with a marketing vehicle’s audience.  Due to our extreme polarization, we have as many rabid against-anythings as we do pro-anythings and they will readily take action in opposition to the other.  This is a tough needle to thread for any marketer.

Personally, I probably wouldn’t buy from a company that advertised on Glenn Beck, although the only way I’d find out is from someone writing about it and the fact that they would and do tells you something about the environment we’re in right there.  Professionally, I’d be unlikely to recommend it because I know and you now know what would ensue.

There are so many ways to reach your target customers that are likely to be more effective, non-controversial and much more economical.  While I want to impart some good advice to you, I’d also like to sell some of those ways too.  You may get a hint of that from our website, but I can be more specific if you contact me through our website.

Good luck and best regards,

Well, I got a form email response back.  It was polite enough but no further dialogue ensued.  That’s okay though because I thought it was the perfect example of what a treacherous marketing world we’re all in.  It also tells us who’s really in control.  We have to decide where we stand, not just in business but personally, define our values and then adhere to them in the way we conduct ourselves personally and through work.  Otherwise, many of the people we’d like as customers, friends or associates will drop us like…well, as quickly as they can drop the blinds on their windows.

Tags: Americans, Assumptions, Blinds.com, Customers, Demographics, Fox News, Glenn Beck, Individualists, Marketing, Media Buying, Mistakes, Outcomes, Polarization, Situation Analysis, Social Media, Strategy, Tweets, Twitter, U.S. Marketplace, Value, Values

Yes, it’s been a two month hiatus, wiped out by the holidays and start of the new year, but we’re back in force.

Every so often, an article comes along that everyone should read.  Whether you’re in business, a blogger, twitterer or just find yourself hanging out on the Internet, some authors writing for The McKinsey Quarterly have come up with one you shouldn’t pass up.  I hesitate to tell you the title because I’m afraid it might it scare some of you off.  But let’s plunge in and I’ll explain why it’s important.  The article, “Clouds, big data, and smart assets:  Ten tech-enabled business trends to watch” sounds both techie and ominous but it’s really neither.

You can download it here and to make things simpler, I’ve highlighted the important parts, at least as I see them.  It’s written in McKinsey business speak but don’t let that intimidate you.  Of course, if your idea of fun is to skip the latest episode of 30 Rock or pass up The Daily Show and settle down with the Harvard Business Review, you’ll feel right at home (I speak with experience in this.)

The article is particularly important if you’re in the information technology business, but the trends that the authors cite are effecting all of us in both the way we go to work and the way we live.  It’s time to rethink your priorities, how you’re marketing, selling, or using technology to walk, run or keyboard your way through life.

It speaks to the importance of web-based communities and their pervasiveness in our work and home lives.  Yes, web-based communities can be about marketing to corporations and the latest episode of your favorite TV show to consumers, or the latest revolution abroad, but it also highlights the growth in co-creation and collaborative work and ideation that’s taking place.  Organizations, corporations and countries are expanding in their depth and breadth through cross-boundary networked organizations.

Small countries and corporations can rapidly become bigger than large ones by managing global knowledge and using communities to create, test and provide feedback.  Scaling up is no longer limited by your own resources.  Simply use those that belong to others but are waiting for you to stop by.  Innovation and creativity now and increasingly in the future are coming from the bottom of the pyramid, not the top.

This is a very thought provoking article that will get you asking whether you’re taking advantage of these trends or spending too much time watching “Jersey Shore.”

Tags: Change, Communities, Creativity, Customers, Governments, Information Technology, Innovation, Leadership, Marketing, McKinsey, Outcomes, Positioning, Social Media, Strategy, Trends, U.S. Marketplace

This is the fifth installment in a series on Mistakes Countries Make and How They Can Get It Right.

With all the research resources available around the world, foreign companies and business sectors still can make two mistakes about the U.S. regarding its size.  The first mistake is misunderstanding or under appreciating the distances from market to market.  The best way to say it is that it takes about the same time to fly from New York to Los Angeles as it does to go from New York to London.  That’s been said many times but until you have to set up meetings on opposite coasts on a frequent basis, the wear and tear on personnel and resources doesn’t really sink in.  Enough said about that.  It’s a big country.  We all know that but market planning from abroad needs to look at the practical daily impact of the America’s size.

The second mistake is to think that one needs to cover the entire country or most major metropolitan areas at once.  Of course, it depends on what industry companies are in but the size of individual state and region economies is larger than that of many countries.  A number of people have illustrated this with maps showing the GDP of states as equivalent to countries.

For example, the map below shows the economy of California as equivalent to that of France, Canada to Texas, Brazil to New York.

Tags: Americans, Assumptions, Countries, Customers, Due Diligence, futureshift, GDP, Governments, Situation Analysis, States, Strategy, Trade Associations, U.S. Marketplace

This is the fourth installment in a series on Mistakes Countries Make and How They Can Get It Right.

There are consultants out there who advise foreign governments to make everything they do perfect for their target markets.  They go internal to focus on changing policy, strategy, innovation and investment over a very long period of time.  The result is that governments invest their time on getting their house in order and the problem with that is that the people walking by the house have no idea what’s going on inside.  It’s simply not a case of building the perfect country so that all the investors come running.

There’s no question that real change only takes place when countries change what they do, not just what they say.  But in our marketing driven world, it’s not enough to simply make those changes and expect the world to notice.  In the 90’s we ran national image development campaigns in the U.S. for both Norway and Chile and saw ample evidence that perceptions were changed through use of marketing tools that often are used for common everyday products.

Marketing tools play a key role as long as they represent changes that are real.  Years ago, Michael Porter wrote that strategy is only valid if it represents real operations.  In other words, you can’t sell the store without knowing the goods are on the shelves.

Countries can change policy, strategy, innovation and investment over a very long period but if no one knows about it, export development and FDI will come at a much slower pace than if there is a coordinated marketing campaign that represents the real situation.

Over the years, we’ve done a considerable amount of country positioning work (our preferred term) and continue to do so today. We’ve found governments often make three major mistakes when considering their image or brand abroad:

1. Too many internal assumptions about what foreign markets think and want. For example, New Yorkers will often talk about garbage in the streets while foreigners exalt the skyline, energy of the city and multiple entertainment options. When Americans return from Chile, they can’t stop talking about the beauty of the Andes and the perfect manners of the people who live there.  Chileans on the other hand will talk about smoggy days and can be quite self-critical.  It’s human nature.  We see things in the mirror everyday that others around us see differently.  Countries have to adjust their marketing by what others think.  Effective strategy is found at the intersection of internal capabilities and external needs.
2. Failure to conduct sufficient open-ended research to determine what’s really on people’s minds in other countries. It’s not difficult to give thousands of people closed-ended questions with multiple choice responses or agreement scales and then make our own interpretations based on internal assumptions. The problem is that closed-ended questions create bias because they predefine the range of answers.  As to agreement scales, what’s the difference between one person’s 3 and another’s 4 and why?  Nobody knows but everybody has an opinion.  Real perceptions come by asking open-ended questions that begin with “What”, “Why” and “How”.  Effective positioning campaigns cannot be conducted without knowing what people really think on an unaided basis.
3. Perfect the model before showing it to the public. There is a lot in this blog about this for good reason.  Too many countries invest too much money into defining what they are before going out to the market.  What they often find is that the market has changed and their perfected “image” model is no longer relevant.  It’s better to move earlier into the market and get feed back on what you’re doing and saying so that you can adjust as you go. Today’s online marketing tools enable incredible capabilities to gather communities of interest and shared needs that will provide feedback and become brand advocates.  Nation marketing is now about building relationships through communities, both those that are publicly available and private ones too.

Change has to be real and long-term but I don’t know of any entity, that after instituting real change, didn’t benefit from a well-conceived marketing plan.

Tags: Assumptions, Change, Chile, foreign investment, Governments, Marketing, Michael Porter, Mistakes, Norway, open-ended research, Positioning, Strategy, U.S. Marketplace

This is the third of a series on Mistakes Countries Make and How They Can Get It Right.

Those immortal words were heard in millions of American homes every Sunday night, during the 1950’s and 60’s, as they were spoken by television impresario, Ed Sullivan on his weekly variety show.  His show was so popular that it was common for children and adults to mimic Sullivan’s nasal accent saying, “Tonight we have a really big show.” A “really big show” for Sullivan fans meant an extravaganza of music and theatrical variety.  It wasn’t Elvis Presley’s first television appearance but certainly was his most famous.  It’s where the Beatles were first seen by most Americans and where viewers were introduced to opera and ballet.  If it was big in entertainment, it was on Ed Sullivan.

The idea of the big show continued into business where today, the really big shows are the Consumer Electronics Show, National Housewares Show, MacWorld Expo and many more.  Large trade shows have become prolific in the U.S. and around the world to the point where they are almost a commodity.  Their cost for exhibitors has increased rapidly placing a premium on those shows where one can see a clear rate of return.

Yet, despite the high costs of trade shows, the idea of the “really big show” has morphed into private, branded trade shows and has become a part of many marketing programs from foreign industries.   It has become common for foreign governments to come to the U.S. and hold large private events for their industries such as food, wine, textiles, technology and more.  An event company and PR firms are hired, hotel and exhibit space secured, visitors and prospective buyers are recruited, foreign companies provided with exhibit space and dignitaries flown in to cut the ribbon or give a keynote speech.

The expectation is that the U.S. media will show up (they rarely do), give the event, its organizers and the foreign industry the right amount of fawning coverage in newspapers and magazines and that buyers will attend with their wallets at the ready.  To ensure the event’s success, the media from the home country is brought in, photos are taken, ribbons cut, speeches made and the event is widely proclaimed to be a grand success…except that it’s often not.

What can’t be seen from abroad is that Americans have become jaded by the extraordinary amount of marketing clutter in their lives.  Surveys have suggested that Americans are exposed to more than 1,500 marketing messages a day.  From the time they wake up until they turn their lights out at night, Americans are bombarded with radio, TV, print, Internet, outdoor, mail, email, phone and tradeshow messaging.  Of course, this takes place in other countries but it has been going on for more years in the U.S.  What foreign visitors most comment on when they visit the U.S. is the number of choices that one has during the day, whether shopping, viewing, listening or traveling.  It all adds up and the bottom line is that the only thing that makes a difference in our lives is the value of our relationships.

When there are so many modes of marketing, word-of-mouth from people we trust has so much more influence than anything else on what we buy and the decisions we make.  Just as we trust our personal friends, business relationships are what influence us in the end.  With all the decisions we have to make, and features and benefits to evaluate, it’s the value we place on relationships and the people who make recommendations to us that makes a difference.

The problem with the “really big show” is that relationships are begun there but not developed or solidified.  We use shows for looking, evaluating, asking and considering but rarely for buying.  When considering any product that has a high cost or a long-term evaluation or testing phase, shows, at best, serve as introductions.  It’s the work that takes place afterward that makes a difference.  Small events or conferences are often better than big ones because they allow prospective buyers to ask more questions and conduct a give-and-take with the seller.  Prospective buyers considering a foreign supplier want to know that both the individual they’re dealing with and their company isn’t going to be in the U.S. for only a week here and there.  They want a commitment to a relationship, to being involved for the long-term, to possible risk sharing or even partnership.

Trade associations and their government partners who have the mandate to promote industries, should consider:

• More small events are better than a few large ones.
• Teach your people to engage with Americans.  Too often foreign business visitors to the U.S. stay back and don’t approach Americans.  We like you to reach out to us.  In fact, events that are built around networking are likely to be more effective than those built around display.
• Events, big or small, will be more successful with both pre and post event follow-up programs.  Prospective sales are most often lost because of poor or slow follow-up.
• You should have an active online social media program that reaches out to prospective buyers.  You’ll know the difference when your social media site has far more Americans or customers on it than your domestic friends and associates.  It’s incredible how many companies and industries tout their facebook and linkedin pages that are filled with people from their own country.  Where are the buyers?  Who’s building relationships with who?  To what end?
• Remember that social media sites like facebook and linkedin are closed systems and have their limitations.  There are no lists to download nor will you have access to anybody’s email address.  At futureshift, we build private communities that support events but more importantly build and support relationships because members self-subscribe and willingly give you their private contact information.
• Rather than think about events, think about building communities.  Community members gain trust for each other and that’s what builds brand loyalty and sales.

So given all this, what made Ed Sullivan such a successful icon?  Sullivan spoke to American audiences in the 1950’s and 60’s when modern marketing was in its nascent stages.  He spoke to us every week, his way of building a relationship with us, and he always showed us things we had rarely seen before.  If you’re a modern day business version of Ed Sullivan, which probably means your name is Steve Jobs, go ahead have the “really big show”.  Otherwise, do something that makes sense and works in today’s U.S. marketplace.

Tags: Americans, Assumptions, Communities, Customers, Ed Sullivan, Events, futureshift, Governments, Marketing, Media, Social Media, Steve Jobs, Trade Associations, Trade Shows, U.S. Marketplace