Wednesday, July 10, 2013

Focus, focus, focus. The essence of targeting.


Targeting should be one of the easiest concepts to understand in marketing.  Here's the deal:  Not everyone cares about everything.  Males don't care about feminine products.  Seniors don't generally get excited about video games.  People with modest means don't consider buying a Mercedes.  It goes way beyond that but you get the idea.

Once you settle on your target market, everything you do should flow from that.  Product, store decor, pricing, packaging, etc. etc.  Companies like Disney are masters at that.  Everything that has the Disney brand is all about kids and families.

When I was doing the marketing for Hawaii Pizza Hut, we were very focused on the family market (adults 25-49 with children at home).  Domino's pizza went after a mostly male target.  Little Caesar's went for young adults who wanted cheap pizza.  As a family brand, we weren't the cheapest option but we were high quality ... and we had a brand that was family friendly.  Our promotions were family oriented (the Book It reading program, cross promotions with family entertainment partners).  Our restaurants didn't have distracting video games that parents find annoying.  We didn't cater to large sports teams.  We didn't emphasize alcohol on our menu.  People got to know us ... and know who we were and what we stood for.

When branding is successfully focused on a particular target audience, a prospect will feel right at home interfacing with the company.  I don't feel comfortable walking around Nieman Marcus because it isn't geared for me, but I'm right at home in Macy's.

Papa John's pizza just launched a marketing program offering 50% savings to anyone over 50 years old (with proof of age and a savings card from Papa John's).  Pizza isn't a food that is consumed in any great quantity by seniors.  So, if Papa John's thinks they're going to build new volume with this
promotion, I think they're mistaken.  Seniors (unlike teens and young adults) don't generally say "let's get a pizza tonight."  So to the extent that they are redirecting marketing money to a target that is not well suited to their product - they're wasting their money.

Targeting is so simple.  Find a group that has an affinity for your product ... build a compelling product and value offering for them ... and stick with it. 

Wednesday, July 3, 2013

Sincerity in Communications




Companies and organizations are training front line employees to be polite – and that’s a good thing.  But sometimes the training can lead to insincere, ridiculous or even robotic communications. 
Let’s start with an example that doesn’t even involve a human.  When you insert your identification card into a First Hawaiian Bank automated teller ("Otto") the first screen that comes up says "Welcome!  It is our pleasure to serve you."  Really?  The machine is getting a kick out of the transaction?  I don’t think so.  This is a case of a ridiculous attempt to be polite.  It would be perfectly appropriate to say “Thank you for using Otto” or something similar.  But I find it ridiculous when someone programs a machine to express human emotion.  


Similarly, there are hotels that have programmed their employees to universally respond to a guest request with the phrase, “my pleasure.”  Sometimes that may be ok.  If I ask a concierge for a reservation or ask a desk clerk for extra towels that could be an appropriate response for a customer-oriented organization.  But, it shouldn’t be universal.  “Please give me a wake up call at 4 a.m.”  “My pleasure.”  Really?  You take pleasure in waking me up at 4 a.m.?  “My toilet is overflowing, please get it cleaned up.”  “My pleasure.”  Right.  Employees should be polite – but sincere, otherwise the exchange just sounds artificial. 

Here’s another case of hospitality training gone awry.  A hotel trained all of its staff (including housekeepers and groundskeepers) to make eye contact and greet the guest when they are within ten feet.  The result?  Housekeepers and groundskeepers avoided guests like the plague.  
I’m all for civility and polite exchanges.  But they have to be sincere to be believed.   

Monday, June 24, 2013

Media Measurements in the New Age


I have to admit that I really enjoy playing Literati on yahoo.com.  Recently, Yahoo's site started downloading video ads that run for at least ten to ifteen seconds before the viewer can access the game room.  Everyone on the web seems to be working hard to "monetize" their online products.  I certainly understand that ... and Yahoo certainly has a checkered history (at best) of being profitable.

What I wonder about, though, is the value to the advertiser.

First of all, Yahoo's setup doesn't seem to target very well.  I am a male in the 50+ age demo.  I'm seeing lots of ads for Herbal Essence shampoo and other products targeted for women.

What's worse is that the advertiser may be paying for more exposures than they're actually getting.  In order to play Literati, the player has to go to the "game room" and connect with another player.  Clicking on a player initiates the ad.  But the ad can be "skipped" after about ten seconds.  Is that counted as exposure?  What's more, when you get to the player's profile, very often they are not active or choose not to play.  So, I end up going back to the game room and starting the process over (many times) with the same result:  seeing only a short segment of an ad that may not even be targeted for me.

I wonder if the advertiser is paying for all this worthless exposure.  The last time I attempted to connect with a player, I probably saw the first ten seconds of the Herbal Essence ad about ten times.  Yes, there was some exposure, but it was really worthless for the advertiser.

As advertising on the web matures, someone out there has the opportunity to get very rich by inventing a secure system for auditing the actual value of exposure.

Tuesday, June 11, 2013

"If I had eight hours to chop down a tree, I'd spend six hours sharpening my axe."


Since the advent of the internet, marketers have been struggling to figure out how to use this shiny new tool in the toolbox.  They've also struggled with what to do with their tried and true marketing tools. 

Pacific Business News (a Hawaii weekly newspaper) just announced that it has revamped its publication strategy and it seems that they have figured out how their traditional print publication can coexist with their online edition. 

Up until now, both the print edition and the online edition featured breaking news.  The trouble with a weekly print publication in the internet age is that breaking news isn't very exciting when it's a week old and readers are used to getting instant gratification on their iPhones, tablets and computers. 

What PBN has done now is to rethink their product and use each of their two different formats to its best advantage.  The e-bulletins and web updates will cover braking news ... and the weekly print publication will focus solely on features and analysis. 

It's not rocket science, but it's gratifying to see companies finally understand how to properly use all the tools in the toolbox. 

Tuesday, June 4, 2013

United's "Little Corner of the World" ... Costs Extra


Once upon a time, United Airlines promoted Hawaii as "our little corner of the world."  They offered mai tais on board ... flight attendants were outfitted in aloha wear ... and there was special advertising that featured the destination. 

Over the years, United seems to have lost its love for the islands.  At one time, bonus upgrades and certificates specified that they were not valid on Hawaii flights.  That caused a rebellion among United customers in Hawaii.  There were cards and letters sent to the corporate office and letters to the editor in the newspapers.  As a result of the customer backlash, and made these perks available to Hawaii residents. 

If Hawaii was excluded from these offers, it essentially meant that these perks were worthless.  And, as island residents, we use airlines more than the average American.  We have to in order to go anywhere.   

That was a few years ago.  Apparently, corporate memory is short.  This week United announced that they were launching a new "subscription" service whereby customers could buy a one year "subscription" to unlimited use of premium seats in economy for $499.  But, guess what.  It's an extra $100 if you live in Hawaii. 

We'll have to see if Hawaii customers will remind United once again that they are part of the US.  Even if we aren't United's "little corner of the world" it would be nice to be attached to the rest of the country. 

Sunday, June 2, 2013

Signs are sooo important

Ok.  Wait.  Let me figure this out.  Sunday-Tuesday 10-6.  Wednesday-Saturday 10-6.  Oh, I get it.  Open daily 10-6.

Whew. 

Friday, May 31, 2013