You Brand

Social ‘What’ or Social ‘Who’?

admin at Jan.20, 2010, Kategorie News

'Social' is a characteristic of living organisms, i.e. human beings and animals. It defines a behavior that takes the interests and/or needs of other living organisms into account.

I have written about the meaning and implications of 'social' before and I will continue to do so, because I believe it to be a fundamental issue that so far is not getting the attention it deserves. Just look at the never ending debates about Facebook's privacy policies.

Let's face it. Facebook and the other networks are nothing more (and nothing less) than very smart programs, systems of communication that allow their users to express themselves and exchange ideas as well as information. The networks are NOT social, because they are not human beings. The people that run the networks and their users can be social, but not the communication systems themselves.

Let's look at Facebook for a moment. It can not redefine social norms, as has been suggested recently. However I do believe that its owners are trying to do so and that is an important difference. From an economic perspective, the people that run Facebook are acting very rationally: The less privacy there is, the more they know about their users. The more they know about their users, the higher the price that they can fetch for those users, when renting them to the advertising industry. After all, how else are they going to make a profit? Sounds familiar, doesn't it? It should, because that's exactly what traditional media was and is doing.

Whether or not the owners of Facebook are going to be successful, depends on us, i.e. users. If we disapprove, we are free to leave Facebook. Facebook depends more on us than we do on them for the time being. I personally would prefer to see many more 'smaller' networks, catering to very specific needs. Diversity with Facebook as one of many networks is for the public good, a Facebook monopoly is not.

Rather than focusing on the tools we use, we should take the time to think a bit more about why we do what we do, as this will raise our awareness for the social implications of our behavior.

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The Power of Nomenclature

admin at Jan.18, 2010, Kategorie News

The 'right' name is important. Parents spend a lot of time finding the right name for their children. The children then have to live with the consequences of their parents decisions. I often do feel sorry for the kids of famous people after hearing the names that their parents 'created' for them.

Brands also spend a lot of time, money and sometimes creativity to find the right name. It is important as it influences awareness, aspirational as well as brand values. The results are sometimes tragic, especially in the age of globalization. One of many examples is the Irish liqueur 'Irish Mist'. In German 'Mist' means 'dung', 'garbage' :-(

But the power of nomenclature strikes elsewhere as well, in words that we see and use daily without thinking about the real meaning. One example that struck me today is the 'Value Added Tax'. The value added tax, expressed in a percentage of the price of a product, is a major source of state income. It makes products more expensive for the consumer, but most certainly doesn't add value to them. The nomenclature is manipulating the consumer in a very subtle way. It is also interesting to note that in Germany the value added tax is 7% for dog food and 19% for baby food, but that is a different story.

There must be many more examples of subtle manipulation like this. Thinking about and analyzing the words, especially the descriptive terms, we use can be quite enlightening.

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Marketing Budgets

admin at Jan.17, 2010, Kategorie News

We are all aware of the absurd way in which marketing budgets are often allocated. When business is booming, the requested budgets tend to be approved. When business is difficult, the budgets are cut. Controllers argue that cost reductions are essential in difficult times. As a consequence, marketing budgets are slashed, because many still consider marketing to be a cost factor rather than an investment. Marketeers argue that marketing is a necessity in difficult times in order to boost demand and get business going again.

Nothing new so far.

But the absurdity goes further and that is the point I want to make: Why do marketeers spend the approved budgets in times when business is booming anyhow? Why does budget approval automatically lead to instant spending, i.e. within the financial year? A popular excuse is that if you don't spend the budget approved this year, you will get less next year. Unfortunately that is often true.

Wouldn't it be great, if marketing would be granted more budgetary responsibility? Marketing would then have the flexibility to put aside unneeded budgets in a boom year for upcoming difficult times. This would lead to more responsible, value-adding behavior in good years and in bad years.

By the way: Isn't that what we all try to do privately = Save in good times to get along in bad times?

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Consumer Electronics

admin at Jan.16, 2010, Kategorie News

Consumer Electronics have certainly come a long way. It is fascinating to see what technology is capable of. We can receive hundreds of programs via satellite or cable on bigger and bigger screens. One of the latest examples is the 3D plasma TV presented at the CES. Often I ask myself, how much value this piece of technology really adds with the present state of TV programming. After all a 3D plasma TV doesn’t transform a lousy program into a fantastic program. However it is probably fantastic for aquarium, fish tank or fireplace DVD’s and some people would also consider it to be a beautiful modern design object. None of which are reasons to buy a TV, or are they?

Many broadcasting stations prefer to copy successful programs in order to maximize short term profits. I wish producers would invest more time and budget in quality content. Unfortunately technological overkill with a trivial storyline is becoming the norm, rather than being the exception. The regular excuse is that what is being aired is what people want to see (and what is being watched brings in the advertising revenues). I don’t buy that. There are those that stop watching TV. There are those that spend their time desperately zapping from one channel to the other. There are those that consume TV without enjoying what they are seeing. And there are some that actually like what they see.

Are public or private broadcasting stations still appropriate in today’s environment or isn’t it time to think about new business models in the age of the Internet? Look at what the iPod in combination with individualized quality content via iTunes did to the big record labels. Consider the success of the iPhone in combination with the individualized quality content via the App Store.

And yes, Casablanca with Humphrey Bogart and Ingrid Bergman in B&W still is fantastic :-)



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Hermès, marketing and the importance of a name

achim at Jan.04, 2010, Kategorie News

HermèsMail Names are important. We like to hear our name. “Hey + name” sounds friendlier than “Hey you”. For premium brands it is even more important. As a matter of fact it is vital. “I bought a car” is not really helpful for the brand you bought it from.

A premium brand like Hermès should know that. Hermès was founded by Thierry Hermès back in 1837 – the brand name is therefore not just a pseudoword, it is a ‘real’ name – and is about as premium as it gets.

They have a store in Munich and I’ve been a customer for several years. I happen to like their ties, even though they are insanely expensive. Every January they invite me to a sale (if you can call it that at Hermès), which is nice.

What annoys me however is that they seem to be unable to get my last name right (see photo: no ‘Umlaut’, no ’s’ at the end).

All the fancy brochures and expensive advertising campaigns will ultimately fail, if you don’t know your customers and that includes their names.

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Customer semantics

achim at Jan.04, 2010, Kategorie News

If you define your customer as a consumer and treat her like one, that’s exactly what she’ll be. At the most, she’ll consume your brand.

Opportunity missed!

Why don’t you define and treat your customer like an afficionado? Consider the potential endorsement “I enjoy this brand” as opposed to “I consume this brand”.

Words can make all the difference in the world and attitudes most certainly do. It’s worth the extra marketing effort.

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Achtung! Google Analytics is illegal, say German government officials

achim at Nov.25, 2009, Kategorie News

Achtung! Google Analytics is illegal, say German government officials

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Wir werden immer älter + weniger

admin at Nov.18, 2009, Kategorie News

Laut einer aktuellen Prognose des Statistischen Bundesamtes – Details gibt es hier: http://bit.ly/3h2CR6 – wird Deutschland in 50 Jahren 17 Millionen weniger Bürger haben als heute, zudem wird jeder dritte Deutsche älter als 65 Jahre sein. 100 Erwerbstätige werden 67 Rentnern gegenüber stehen. Das bedeutet auch, dass die Produktivität der Erwerbstätigen erheblich gesteigert werden muss und das geht nur durch Bildung. Im Vergleich zu anderen führenden Industriestaaten hinkt Deutschland in den staatlichen Ausgaben für Bildung hinterher – es ist an der Zeit, dass sich das ändert.

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The power of social gratification

admin at Nov.16, 2009, Kategorie News

In 'Consuming Life', the Polish sociologist Zygmunt Bauman describes how people are goods and practice marketing. They mutate into products capable of generating attention as well as demand, in order to obtain what he calls social gratification.

We see this happening every day in new media and in particular in social networks: Followers, friends, retweets, feedbacks etc. are just a few examples of social gratifications. The fact that these gratifications are often instant adds to their value.

Whether we want to admit it or not, the majority of us is and always has been very receptive to social gratification. In my opinion this is another major reason for the popularity of new media. After all, how could the average human being obtain social gratification in old media?

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Spiders, brands and the web

admin at Nov.11, 2009, Kategorie News

Spiders have existed for much longer than brands. For over 140 Million years many species have been around building webs. Not all use webs to catch their prey, but for those that do, the web has the great advantage that the spider can catch the prey without having to hunt it down. The spider just needs to be patient and wait. When the prey gets trapped, the spider senses the impact by vibrations transmitted through the web. This behavior reminds me of many brands in the 'other' web – they build websites and wait for the consumer. If the typical prey of a spider would behave like today's consumer, the spider would starve to death while waiting. And brands?

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