Monday, January 13, 2014

The Folly of Turning Back the Tide


I vividly remember a story whose moral is about the danger of hubris.  It's the story of King Canute, a  
Danish King who ruled much of England and Gaul.  His courtiers told him he was so powerful that the tides would obey him.  Here's the story from the account of Henry of Huntingdon in his Chronicle.
[Canute] commanded that his chair should be set on the shore, when the tide began to rise. And then he spoke to the rising sea saying “You are part of my dominion, and the ground that I am seated upon is mine, nor has anyone disobeyed my orders with impunity. Therefore, I order you not to rise onto my land, nor to wet the clothes or body of your Lord”. But the sea carried on rising as usual without any reverence for his person, and soaked his feet and legs. Then he moving away said:  “All the inhabitants of the world should know that the power of kings is vain and trivial, and that none is worthy the name of king but He whose command the heaven, earth and sea obey by eternal laws”. 
So, who are the modern Canutes?  Those who believe that their orders can change the course of the universe.

I just read an article bewailing changes in the hotel industry.  More and more accommodations are being run as timeshares, condotels, or vacation rentals instead of full service hotels.  Even "full service" hotels are cutting back on service, changing linens every few days instead of daily and dropping traditional amenities like room service.  The net result of these changes is a reduction in the labor requirements to operate.  The point of this article was that "this has to stop."  We need to go back to an industry of full service hotels.  Unfortunately, the economics are driving investors to change the accommodations landscape.  With timeshares and condominiums, investors can get all of their money back, often even before construction is complete and they make money on the management of the units.  The customer, too, is driving change as people are more willing to co-produce service (or do without) in order to save costs.

Look at all of the changes we're seeing where service is automated or cut back.
  •  Reservations for hotels and airlines are mostly online now, with little or no human interation.
  • Airline check in has become automated, with kiosks replacing human beings
  • Hotel check-out is accomplished through your in-room telephone or television.
I even stayed in a hotel in Europe that had nobody at the front desk.  When you arrived, you approached a vending machine which displayed keys in little windows.  If there was a key in the window, the room was available.  You selected a room, inserted a credit card, pushed a button and the machine "dispensed" a key.  No human was involved.

For certain high end products, automation isn't going to work, but more and more we're seeing people being replaced by machines.  That's reality.  And wishing the world would go back to the way it was won't change things.

There are some poignant examples of people trying to turn back the tide.  As railroads switched from steam to diesel, the unions were able to require that engines still carry a "fireman" ... although a fireman was absolutely unnecessary.  This was a practice known as "featherbedding" and it nearly killed the railroads.

So, as much as some may wish that the world would move back to a time that is more conducive to their world view, it is better to acknowledge the inevitability of change - and move on. 

Saturday, December 21, 2013

From fixed to fluid ... static to dynamic. It's all changed.


Recently I received notification from one of my former clients proudly announcing publication of their new brochure.  On paper.  Now, in the second decade of the twenty-first century there still is a role for printed materials, though that role is diminishing quickly.  What worried me is that the website that they have is pretty lame.  So, they've proudly spent good money putting ink on paper which will reach a limited audience ... and are missing the boat on a technology that has virtually unlimited reach and interactivity with minimal cost.

In this brave new world, adapting to change isn't just about communication.  Many marketers who think they're "on it" congratulate themselves because they're on the web ... or dabble in social media.   But there's more - much more - that has changed and more - much more - when it comes to opportunities.  The bottom line is:  virtually nothing is static - virtually everything is dynamic.  Almost everything is fluid.  Change is pervasive. 

Consider ...

Dynamic packaging.  It's already happened in travel where prepackaged tours have given way to dynamically packaged tour products custom tailored to the individual.

Dynamic pricing.  The airlines and hotels have figured this out - but dynamic pricing is moving into traditional retail.  In the future there may be no "fixed price" for anything. 

Dynamic distribution.  In Korea and China custoemrs can shop by scanning a QR code projected onto any wall - creating a virtual store.  The future of this is mind-boggling. 

It's time for marketers to take the revolution in technology seriously and ride the wave of change.  And not wipe out. 

Tuesday, December 17, 2013

What will the world look like 25 years from now?


I was speaking with a colleague in the hospitality field the other day and we were reminiscing about the changes we've seen over the years.  One comment from my friend was a remembrance of a time when smoking was allowed on airline flights.  Another (much younger) colleague couldn't believe that smoking was ever allowed on flights.  I sure do.  Despite separating smoking and non-smoking sections, flying meant sitting in an enclosed space smelling of stale smoke. 

I also remember traveling on trains which had "smoking cars."  Walking to the dining car often meant walking through cars that were like gas chambers. 

I also worked in an advertising agency that did the advertising for the Philip Morris tobacco company.  One of the executives had a sign in his office that said "Of Course I Don't Mind If You Smoke."  That would be pretty unthinkable today.

Speaking of advertising, I remember the days when cigaret ads touted "smooth flavor."  And there were even claims that smoking had benefits of calming your nerves.  And, long ago, ads even featured health care professionals endorsing cigaret brands. 

I could go on (though I feel really old when I do).  I remember cars without seat belts.  Airports without security.  Wow.

I wonder what unforeseeable changes will be happening over the next 25 years or so.

Thursday, December 12, 2013

Charlatans in Marketing


I recently saw a television ad for a hearing aid center in Hawaii which announced research findings linking hearing loss to Alzheimer's disease ... and then went on to pitch their hearing aid products. 

The research is real (if not definitive):

Older adults who experience hearing loss may be at increased risk of developing dementia, including Alzheimer’s disease. And the risk of dementia likely increases as hearing loss worsens.  (from WebMD)
The problem, of course, is that getting a hearing aid doesn't do anything at all to diminish that risk.  The advertiser in this case stooped to very crude (and false) scare tactics to sell a product.

I don't often get directly involved in false or misleading advertising issues.  But, in this case, I think it's worth a call to the Better Business Bureau.  Marketers have an image problem with the public - and cases like this don't help at all.  

Sunday, December 8, 2013

Faster than the speed of ... well, good sense


The Internet and social media have driven marketers to do things quickly.  Very quickly.  Sometimes too quickly.  Often, it's great to catch a wave of interest in a current topic, and FaceBook and Twitter provide instant opportunities to get out into the ether.  If posting and tweeting is delegated to someone whose primary interest is getting out quickly, though, there may not be enough thought about the content of the message.

The latest case in point (maybe victim is a better word) is the Campbell Soup Company, makers of SpaghettiOs.  They posted this happy little mascot in a celebratory stance to "remember Pearl Harbor."  Well, whoever posted this may have forgotten that Pearl Harbor was a "Day of Infamy" and that the remembrance is anything but a celebration.

The company ended up making a public apology ... and their gaffe was covered by major media. 

There's a danger, sometimes, in moving too fast.  I wonder if any of the marketing execs actually reviewed this image before it was tweeted. 
 

Wednesday, December 4, 2013

Creating Appeal


Virgin America's New Safety Video
There's not much more boring than an inflight safety video.  Which is why so many passengers don't watch them.  I've posted non-traditional, creative examples before (Thompson Air using kids ... Air New Zealand using body-painted flight crews).   Click here for yet another example from Virgin America.   Yes, fellow marketers, creativity can change behavior.  It can even entice people to engage in something that's inherently boring. 

Tuesday, December 3, 2013

Innovation Can Be Anywhere


When marketers think about innovation and creativity, they generally think about products and promotion ... and ignore all the other elements of the marketing mix.  Some of the most innovative marketing ideas, though, have been in packaging, distribution and pricing.

Sometimes it doesn't even cost anything to be innovative.  When I worked for Hawaii Pizza Hut, I had a regular meeting with the Wyerhaeuser Corporation - the company that made our boxes.  Usually, we just talked about what promotional message should be printed on the box.  Once I asked them what ideas they might have for us.  After some thought, they suggested perforating the top of the cardboard box ... so that the cardboard could be pulled apart to create individual "serving plates" for the pizza. They even perforated little holes for a thumb and a finger to hold the plate.  The innovation cost virtually nothing because Wyerhaeuser had to make a die to cut the box anyway.  But this innovative little feature provided just a little extra value for the customer.  I personally love it when I see an innovation that makes me say "aha!" (like the first time I saw an automobile with cup holders).

For some more great (and creative) packaging ideas, click here.  You'll see that creativity knows no bounds.