My interest in business or commercial activity first started when a work friend of my Mum visited our family. She brought a book on commerce which is what business studies would have been called decades earlier. I read the book and that piqued my interest.
At the end of your third year in secondary school you are allowed to pick optional classes that you will take exams in. this is supposed to be something that you’re free to chose.
I was interested in business studies (partly because my friend Joe was doing it). But the school decided that they wanted me to do physics and chemistry instead and they did the same for my advanced level exams because I had done well in the normal level ones. School had a lot to answer for, but fortunately I managed to get back on track with college.
Eventually I finally managed to do pass a foundational course at night school whilst working in industry. I used that to then help me go and study for a degree in marketing.
I work in advertising now. And had previously worked in petrochemicals, plastics and optical fibre manfacture. All of which revolve around business. That’s why you find a business section here on my blog.
Business tends to cover a wide range of sectors that catch my eye over time. Business usually covers sectors that I don’t write about that much, but that have an outside impact on wider economics. So real estate would have been on my radar during the 2008 recession.
I’ve been re-reading How Brands Grow Part 2 by Jenni Romaniuk and Byron Sharp. Part 1 is well known. It is the go-to bible for consumer marketers written by Sharp.
How Brands Grow Part 2 by Romaniuk and Sharp
In part 2 Sharp and Romaniuk looked at business-to-business marketing, luxury marketing and influencer marketing. The things that I found particularly interesting in part 2:
The heuristics around business-to-business marketing are remarkably similar to consumer marketing. This means that even in B2B marketing, the importance of brand building is paramount. This is very much at odds with the way in which business-to-business marketing is practiced
Part 2 provides a much needed dose of pragmatic realism on influencer marketing. Influencer marketing carries the most weight with people that would be interested in the brand anyway. It is less efficient than marketers seem to believe. If you look at Unilever at the end of the Keith Weed era; influencer marketing took an outsized proportion of marketing spend that could not be explained in a world of zero based budgeting (ZBB) that the company had brought in
Romaniuk and Sharp manage to explain why luxury brands need sustained advertising to sustain their standing despite the very nature of luxury being hard to find (and so discover) unless you’re part of the cognoscenti
Regardless of your marketing area both part 1 and part 2 will help you to be a better marketer. What immediately becomes apparent is that empirical research done by Sharp and company outlined in part 1 and part 2 are best viewed selectively.
Fads become orthodoxy in the face of empirical evidence to the contrary. A classic example would be the headlong dash into digital regardless of its role in the marketing mix.
It would be great if these books were paid attention to as well as read by marketers.
Facebook executives ‘knew for years’ about misleading ad metric | Financial Times – The lawsuit claims that Facebook represents the potential reach metric as a measure of how many people a given marketer could reach with an advertisement. However, it actually indicates the total number of accounts that the marketer could reach — a figure that could include fake and duplicated accounts, according to the allegations. – Facebook’s misleading ad metric isn’t news in its own right. What’s interesting is that the FT article goes on to claim that potential audience size in some states were bigger than publicly available data and seemed nonsensical in comparison to say census data
Xenophobia amid the coronavirus pandemic is hurting Chinese immigrant neighborhoods – Vox – anti-Asian xenophobia and racism have become a bigger issue around the world as a result of Covid-19. As Nylah Burton reported for Vox, in major cities like Los Angeles, Seattle, and Toronto, East Asians have been targeted — from racist comments made by TSA agents to verbal street harassment. Meanwhile, Chinese restaurants across the globe say they are struggling for business because of widespread misconceptions about the “cleanliness” of their food – exceptionally dark reading
Madison Avenue Insights | Creative agencies: winning the battle but losing the war – Creative agencies have mastered the requirements of integrated campaigns, from TV to online video, websites, Facebook, Instagram, ad banners and e-mail marketing. It’s a pity, then, that this victory is being undermined by agency price-cutting strategies that leave agencies understaffed and underpaid. Senior agency executives need to create winning business practices – they’re losing the business war. – great read by Michael Farmer. I suspect the piece that’s missing is the devastation wrought by procurement
Russian influence operations using netizens in Ghana to target African Americans – Grapfika – The operation used authentic activists and users, fronted by an ostensible human rights NGO, to covertly propagate an influence campaign. It is not the first time such an attempt has been made, but the tactic is of concern. The unwitting individuals co-opted into the operation bear the risk of reputational or legal jeopardy; indeed, CNN reported that the Ghanaian operation was raided by law enforcement as a result of their online activities. For the human rights community, the risk is that genuine NGOs may be misidentified as being involved in influence operations by accident or malice, and there is also the danger of tarnishing the reputation of important work and organizations across the field – its a fascinating read – a mix of information ops, subterfuge and offshoring. The west African link is interesting
Salience is the buzz word of the moment in advertising circles.
What is salience?
According to Siri salience is a noun. It’s definition:
the property of being particularly noticeable or important.
Historically, when you tested an ad through the likes of Kantar. One of the attributes that an ad would be measured on is salience. Relatively recently salience has become a more important attribute in advertising from a marketing science point-of-view. But this shouldn’t be to the extent of eclipsing other attributes such as distinctive brand building.
Salience becomes pre-eminent
But now you see campaigns where salience is pre-eminent. I had only seen this in Asia in the past, where random endorsement choices looked to drive impact.
At one stage in the early noughties you could see Jackie Chan side-by-side with over 20 products including:
Canon cameras
Mitsubishi cars
An anti-hair loss shampoo that allegedly contained carcinogens
Zhongshan Subor – games consoles with a basic home computing capability. Subor ‘Learning Machines’ had educational programmes, games and provided Chinese children with an opportunity to try computer programming. Think of it as an analogue the Sinclair range of home computers in the UK
Fenhuang cola drink
Jackie Chan branded Canon Rebel T2i / EOS 550D via M.I.C Gadget
A classic example of an ad that personifies salience is Burger King’s The Moldy Whopper.
The campaign is a one-off stunt designed to drive water-cooler talk. Some colleagues were at a breakfast event last week. The outtake that they took from the event was that the future of advertising is PR. Or to be more exact the publicity stunt.
I get it, creative directors are measured on memorable award-winning campaigns. They are less worried about effectiveness and brand lift. It’s sexy. And it moves things away from soul-crushing digital disruption-driven work. Big data, A-B testing that’s just aimed at sales conversion.
But publicity is just a short term effect, contrast this with effective advertising that can keep paying off for decades!
But when you’re doing stunt-after-stunt what does the brand stand for? I agree that a brand has to be distinctive, but to make a brand distinctive you need to reinforce it. Think about Coca-Cola; distinctive and instantly recognisable.
Don’t believe me, here’s what Mark Ritson said about it. Ritson uses ‘brand image’ as a way to discuss brand distinctiveness and visibility at a granular level in the ad:
The new global campaign from Burger King features a month old burger complete with the mould and decomposition that comes with it. Supposedly, this is a campaign aimed to promote the absence of preservatives. But is it good advertising? No. Showing a disgusting, mouldy version of your hero product to target consumers is – believe it or not – a really bad idea. So why are Burger King doing it? First, we see the ultimate exemplar of the focus on salience over image that is sweeping much of the advertising world. “It got me talking about it, so it is great marketing,” has been the response of many addled marketers to the new campaign. While it’s true that salience is a much bigger goal than we once thought, there is still a need to focus on brand image. All publicity is not good publicity. It’s also the latest in a long line of marketing stunts that Burger King has pulled. Hiding Bic Macs behind Whoppers in all their ads, asking consumers to order a Whopper online from a McDonalds, the list is long and stupid. It wins awards and gets marketers talking but it is eclipsed by KFC and McDonald’s less flashy, more enduring and more effective tactics. Same store sales growth over the last two years tells its own story. This is flashy, ineffective fare.
Mark Ritson on LinkedIn
Or Phil Barden who wrote Decoded:
From a behavioural science point of view this is a bizarre use of marketing money; Firstly, our attention and perception are implicit (‘system 1’) processes that are stimulus-bound. System 1 can’t imagine, it responds to stimuli. Kahneman uses the phrase ‘what you see is all there is’ and it is the stimulus (what you see) that will be decoded using our associative memories. The brain metaphorically asks the questions, ‘what is it, what does it represent, what’s in it for me’? The answers to these questions are ‘rotten food’ and ‘nothing’ because rotten food is a threat to survival. This triggers ‘avoid’ behaviour. Secondly, this image is highly likely to trigger ‘reactance’ which is emotional arousal with negative valence ie it’s unpleasant. Thirdly, memory structures are built on the basis on ‘what fires together wires together’. In this case, Burger King and rotten food. Fourthly, the category is hedonic; it’s all about enjoyment. Rotten food and enjoyment have no implicit intuitive association. The only saving grace for BK may be that their logo is such low contrast and the food is so salient that the brand may not be attributed to the image.
Many of Barden’s points are very specific to the mouldy burger creative. But points like attention and perception are implicit processes that are stimulus bound works against salience. It triggers related memories, which is distinctive brand building allows you to tap into. The importance of hedonic enjoyment plays against a lot of shock tactics used to get salience.
I am not saying that marketing campaigns shouldn’t have salience. Some of the best ads of all time use salience like Coca-Cola’s ‘Hilltop’ advert.
But that they shouldn’t be salient at the expense of other attributes of brand building. A side serving of salience adds cut through to consistent distinctive brand building. But balance in different attributes for an ad is needed.
For more on how to achieve a balance in attributes, I can recommend Building Distinctive Brand Assets by Jenni Romaniuk. The book is based on research by the Ehrensberg-Bass Institute for Marketing Science.
Tablet demand in China gaining momentum from epidemic | DigiTimes – compared to global demand drop of 20% predicted for tablet computers. This is a fascinating change. Any explanation of this tablet demand is just a hypothesis. My own guess is . More tablet computer related posts here.
Great mix by Andy Weatherall. It is interesting that for a considerable amount of time there was destination radio and a loyal taping culture. Some cassette decks featured timers similar to a video recorder. People would set them up before they left. Prior to digital formats becoming commonplace, I remember die-hard fans using VHS Hi-Fi audio recording to capture these shows in as high a quality as possible. More listening material here.
Targeting v context | Campaign Live – really interesting article by Dave Trott. I’d argue (like Dave has) targeting and context together is what matters, rather than targeting or context.
WSJ City | Victoria’s Secret goes private at $1.1 billion valuation – this is down from over $7 billion. This marks the end of an astonishing destruction of value. The company was also quick to get the power of online. Designers now think live-streaming their show is a matter of course. Back in 1999 I worked at an agency where we did their first live stream. They were also quick to get into e-commerce.
Regulating AI in health and care – NHS Digital – no privacy expert on this panel – which is a bit concerning given they are talking about the business opportunity and regulating AI. More machine learning related posts here.
Dutch army Maj. Christiaan Hoff, left, and Royal Australian Navy Lt. Cmdr. John McHugh, right, perform oral surgery to remove a tumor from a Filipino woman aboard Military Sealift Command hospital ship USNS Mercy (T-AH 19) June 27, 2012, in Samar, Philippines
Coronavirus response benefits Watsons: YouGov | Campaign Asia – Hong Kong tycoon Li Ka Shing, who’s majority-ownership of the Watsons franchise is well-known, pledged HKD$100 million (US$13 million) to combat the coronavirus. All of these responses appear to have been met with popular approval for the brand. Since the start of the year, Watsons’ Current Customer score has risen from 20.2 to 29.0, a rise of +8.8 points. Its Recommend score has risen from 9.9 to 16.9 , an increase of +7 points. Finally, its score on YouGov’s Buzz index has jumped from 8.6 to 25.4, a significant increase of +16.8 points. – Li Ka Shing always comes out of a crisis better than he went in
Coronavirus Test Kits Sent to States Are Flawed, C.D.C. Says – The New York Times – the failure of the kits means that states still have to depend on the C.D.C., which will mean several days’ delay in getting results. The C.D.C. announced last week that it had begun shipping about 200 kits to laboratories in the United States and roughly 200 more to labs in other countries. Each kit can test about 700 to 800 specimens from patients, the agency said. – this is frightening (paywall)
