Wednesday, March 23, 2011

I've been hoodwinked!

When I first started “Influence: The Psychology of Persuasion” I felt a little sleazy, like I was being groomed for the fine “art” of conning. However, the further I read the more I realized what a great tool it was. Even though the cover includes a quote from Journal of Marketing Research that proclaims, “For marketers, it is among the most important books written in the last 10 years”, I feel the book is more tuned to a general consumer audience, the author serving as an ally. I clearly saw myself in many of the situations he used throughout the book and how true they are to real life.

It was however relevant to my current studies as well. All the “weapons of influence” Cialdini talks about are tactics used within the marketing industry. I just didn’t know the psychology behind them. I’m not sure if knowing this makes me like marketing more or less. The techniques Dr. C talks about are all ways of persuading people to act. I suppose if I use these proven tactics honestly in my work, I’ll still be able to sleep at night.

The main thing I took from the book was that consumers depend on shortcuts to make decisions. I’ll speak only on purchasing decisions here since it’s relevant to my field of study. Because of the rapid pace of modern life and barrage of products being marketed to consumers on a daily basis, I think two things will become increasingly important. First, branding will become more important than ever, and second, marketing will need to be even more precise and more thoughtfully targeted.

Consumers generally tend to buy brands they are familiar with. However, when it comes time for larger, high involvement purchases people spend more brainpower comparing similar products, pricing, shopping around, etc. Still, the brand(s) they are most familiar with are always in their consideration set. So for a brand they are not familiar with to “out-do” one of the brands they already have positive feelings about, the unfamiliar brand will have to offer up a far superior product at the exact moment the consumer is in the market. In order for the unfamiliar brand to increase its chances of serious consideration, it needs to do most of its image-building legwork far ahead of time. Not only do I think this will become more important as the pace of life continues to increase, but I think it will be in the best interest of companies to build even stronger brand images to accommodate for this escalation. By building stronger brand images, consumers can confidently resort to purchasing shortcuts for even higher priced items simply because they already know most everything about the product short of trying it on for size.

I propose a couple ways of doing this. First, I think companies need to focus extensively on what is unique about their product(s). I realize this is already common practice, but I'm suggesting upping the ante. The uniqueness needs to be so strong and so memorable that it will create a brand association quicker than ever before. For example, many car manufacturers have succeeded in creating single word associations with the cars they produce. For BMW the word is "performance". For Toyota, the word is "reliability". For Volvo, the word is "safety". These are very strong identifiers. If you want a performance car, you automatically think of BMW. If you are concerned with safety, the first car that comes to mind is Volvo, and so on. The more unique, strong, and memorable the brand association, the easier it is to recall.

Companies like Nike and Apple have already built the types of brand images I'm referring to. For someone looking for a pair of tennis shoes, Nike is most likely automatically in their consideration set. Highly resonant Apple users have only one decision to make, "Which model should I buy?" Other companies who don't have the brand strength to compete should rethink their branding efforts, or they could die trying.

The same applies in other industries as well. I think, for example, packaging will become more important in the future. For example, I recently realized I like What-a-Burger because of their cups. I like the texture of them. In a world that is becoming more slick and sterile as a result of the digital tools we use (constantly), I think touch will increase in importance. If we're no longer holding books in our hands as we read them, thumbing through CD inserts to figure out song lyrics, or reading the cardboard movie boxes at BlockBuster to decide which movies we want to take home and watch, the sense of touch will become more pleasurable when available. As I mentioned above, What-a-Burger is a great example. What better way to increase brand recall than by associating the cherished sense of touch with their textured styrofoam cups?

To point two above, marketing will need to be even more precise and more thoughtfully targeted. Marketing is obviously the way in which brands are created. Here however I will address the message strategy. Having a simple and precise message in your advertising and marketing will help create a precise brand image. The shorter and stronger the message, the easier it will be to understand and hopefully recall. Increased recall equals more confident shortcuts for consumers. However the visual uniqueness of the advertising or marketing piece plays an equally important role. For example, most car commercials look pretty much the same, to me anyway. In order for companies to do their due diligence in building a truly unique brand, they must pay attention to every detail both visually and textually. They must truly stand out in the minds of an increasingly busy audience. Companies must present themselves in such unique ways that the audience knows at a glance what company the ad is representing.

Zeroing in on a smaller target audience will also help gain the attention of today's on-the-go consumer. By narrowing your audience it is easier to develop creative strategies that quickly grab their attention. Like Cialdini discusses in his book, people respond better to things they are familiar with. They respond equally as well to people who seem to have similar interests, lifestyles, values, etc. The smaller the target audience, the more focused, relevant, and personal the creative strategy can be. Admittedly, target audience specialization works more cost effectively online. I'm always amazed when I'm shopping for something online and an ad appears promoting the exact type of product I'm looking for. This will only continue and I would imagine in an even more fine-tuned fashion. That is after all the beauty of the Internet for marketers.

Of course the above is all speculative. I haven't done any consumer focus groups or research to support the trends I have proposed. However, it is a fact that the pace of modern life continues to increase while the number of products entering the market each year is astounding. Factor that together and what you have is more products competing to grab the attention of an increasingly preoccupied consumer population. What this boils down to is a split-second of time to subconsciously stamp a brand impression on as many people as possible. Product placement has become popular in movies and TV shows. Jennifer Lopez sits on the judging panel of American Idol with a large cup shouting out Coca-Cola - Stamp. But not all companies have the brand recognition that Coca-Cola enjoys. However the "stamp" part is the important part, I believe. Marketers will have to become quicker and wiser in the ways they market their brands. A snapshot will have to tell the story, and using what Cialdini calls the "weapons of influence" will have to be relied upon more than ever to tell those stories...but the really short versions. The more brand stamps a consumer has on his/her subconscious mind, the more brand associations and the more likely they will rely on their preferred shortcuts toward purchase. It's all a matter of psychology.

Friday, March 18, 2011

Marketing in its Finest Moment...

Marketing 3.0 is a welcome change. Not only is it my favorite kind of advertising, but it may just do some much-needed good.

The concept of Marketing 3.0 has been around for a while, only on a smaller scale. Typically referred to as "cause marketing", it's objective is to touch the consumer on an emotional level that helps to build or improve the image of a company. If done properly, over time and in conjunction with the company's product advertising, it works wonders. It creates good faith and moves products - the end goal for any company. Philip Kotler takes the idea of "cause marketing" and applies it on a much larger scale, and for good reason. It's in very high demand.

The world has experienced much change over the last 10 years. Financial crisis, increased environmental awareness, a constantly changing digital environment have all fueled a growing state of instability. Consequently these issues have also caused shifts in consumer behavior, and when consumers change behavior, marketers must revisit their strategies. Kotler, "The concept of marketing can be seen as the balancing concept to that of macroeconomics. Whenever the macroeconomic environment changes, so will consumer behavior change, and this will lead marketing to change". In other words, major events occurring over the last 10 years have dominoed, causing a high demand for socio-economic and environmentally responsible companies - the guiding force behind Marketing 3.0.

This isn't as bad as it sounds. Granted, companies not inherently values-driven must do some major overhauls to their business models to include an altruistic initiative or two. Surely they can just pick a cause and say they support it.

Unfortunately, that's not quite the way it works. According to Kotler, the company must be knee-deep in the cause. It must be at the heart of the business. Employees must represent the cause, as must the company's channel partners and the company's spokespeople. It must be addressed on the company's website in its own special section, and any company-driven social media must present it as a key business concern. In order for Marketing 3.0 to be successful, a company's cause must be unifying and well documented as often and to as many people as possible.

A particular type of company that actively subscribes to the principles of Marketing 3.0, Kotler refers to as "The Innovator". In his book Marketing 3.0, Kotler uses DuPont as a prime example. He says, "DuPont, the science company that has existed for more than two centuries, has dramatically transformed itself from being the worst U.S. polluter to one of its greenest corporations...". Today, DuPont invents and manufacturers products that not only do not harm the environment, but have the potential of reversing the damage already done. This is a great example of a company redefining its entire mission to honor a universal human cause - not a small task. Redefining a company's business model, thereby redefining its core mission after it's been in business for awhile is quite costly. But as DuPont proved, it can be done, and successfully.

In today's socio-economic environment, companies must act responsibly. Consumers demand it and the Internet is too powerful to ignore it. Companies must leverage their online intelligence so they can discover the values that mean the most to their customers, and then honor those values as loudly and as often as they can. If they don't, they may find themselves in a state of decline. Companies have to remember that not only do their customers own their brand, their customers are also still king. Only now, their customers have friends - and lots of them.

I think the reasoning behind Marketing 3.0 is wonderful. Regardless whether a company's humanitarian efforts are sincere or not, at some point their contributions will do some good, some where. Whether they provide food and shelter to remote communities on the other side of the globe, or deliver higher education learning opportunities to inner city kids right here at home, these acts are still selfless, even if the bottom-line business objectives aren't.