Category: marketing | 營銷 | 마케팅 | マーケティング

According to the AMA – Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. This has contained a wide range of content as a section over the years including

  • Super Bowl advertising
  • Spanx
  • Content marketing
  • Fake product reviews on Amazon
  • Fear of finding out
  • Genesis the Korean luxury car brand
  • Guo chao – Chinese national pride
  • Harmony Korine’s creative work for 7-Eleven
  • Advertising legend Bill Bernbach
  • Japanese consumer insights
  • Chinese New Year adverts from China, Hong Kong, Malaysia and Singapore
  • Doughnutism
  • Consumer Electronics Show (CES)
  • Influencer promotions
  • A media diary
  • Luxe streetwear
  • Consumerology by marketing behaviour expert Phil Graves
  • Payola
  • Dettol’s back to work advertising campaign
  • Eat Your Greens edited by Wiemer Snijders
  • Dove #washtocare advertising campaign
  • The fallacy of generations such as gen-z
  • Cultural marketing with Stüssy
  • How Brands Grow Part 2 by Jenni Romaniuk and Byron Sharp
  • Facebook’s misleading ad metrics
  • The role of salience in advertising
  • SAS – What is truly Scandinavian? advertising campaign
  • Brand winter
  • Treasure hunt as defined by NPD is the process of consumers bargain hunting
  • Lovemarks
  • How Louis Vuitton has re-engineered its business to handle the modern luxury consumer’s needs and tastes
  • Korean TV shopping celebrity Choi Hyun woo
  • qCPM
  • Planning and communications
  • The Jeremy Renner store
  • Cashierless stores
  • BMW NEXTGen
  • Creativity in data event that I spoke at
  • Beauty marketing trends
  • Kraft Mothers Day marketing
  • RESIST – counter disinformation tool
  • Facebook pivots to WeChat’s business model
  • Smartphone launches
  • Galaxy Note 7 + more news

    Galaxy Note 7

    Samsung finally explained what caused the Galaxy Note 7 explosions | Quartz – it sounds like a deeper process issue in design and supply chain management. The impact of the Galaxy Note 7 explosions was huge for Samsung’s reputation.

    Consumer behaviour

    It’s Generation X, not millennials, who are obsessed with Facebook, Instagram, Snapchat, and Twitter — Quartz – interesting research

    Economics

    China’s Army of Global Homebuyers Is Suddenly Short on Cash – Bloomberg – pop goes the London housing bubble?

    Why the Trans-Pacific Partnership Failed | Slate – good pointers for Brexit and beyond too

    Can post-Brexit London survive as Europe’s cultural and financial capital? | The Guardian – it will take a right kicking basically, some sectors much worse than others

    Don’t Blame Davos Man for Globalization’s Limits – Bloomberg View – great read

    Brexit Effect Drives Tourist Spending in the UK | Business of Fashion – so its temporary

    The Geopolitics Of 2017 In 4 Maps | Zero Hedge

    Ethics

    Professional pay skewed by snobbery (in UK) | FT – government finds that even if you make it as a working class person in a middle class job, you’ll still be paid less

    Finance

    China warned of risk to banks from One Belt, One Road initiative | FT – no clear commercial imperative

    China’s fintech industry shows where the rest of the world is heading | Techinasia – interesting read, though China’s conditions are unique

    FMCG

    McDonald’s may have a Big Mac ATM, but America has been trying to automate cheeseburgers for more than 50 years — Quartz – robotics disrupting ‘McJobs’

    Formula safety still a prime concern of Chinese mums | Campaign Asia – also since grandparents spend a big part in raising the kids, adverts should acknowledge their contribution (paywall)

    Innovation

    Hitachi Maxell’s LED Lantern Powered by Water, Salt – Nikkei Technology Online – interesting design – Japan has a ‘prepper’ culture due to the earthquakes and tidal waves that happen

    Marketing

    China Marketers Reveal Digital Challenges For Country’s PR Firms: Study | Holmes Report – Interesting reading; that digital is more important is no surprise; agency relationships dropping from 2.9 years to 2.5 years is a surprise though – shorter than advertising etc. PR is more likely a tactical buy

    Three Theories Behind the Global Productivity Slowdown | Naked Capitalism – interesting read, though they are theories only

    Not Just A Crock: The Viral Word-Of-Mouth Success Of Instant Pot : The Salt : NPR – expecting to see this as a case study in PR decks moving forward

    Media

    The Chinese News App with 600 Million Users That You’ve Never Heard Of | MIT Technology Review – Toutiao uses AI to curate headline recommendations

    It’s About Free Speech, Says Tech CEO Cashing In On Breitbart Ads – Medium – when mainstream media aren’t making money from online ad dollars, I can understand why Taboola are hanging on in there

    The State of Journalism in China—Ed Wong’s Exit Interview | ChinaFile – worth a listen

    WeChat Official Account Platform | Grata – great write-up

    Mobile eSports | JWT Intelligence – interesting that it has finally moved to mobile platforms

    How a football publisher repurposed one event’s worth of video for 4 different platforms – Digiday– really nice laymans guide to video platforms

    Republican Lawmakers in Five States Propose Bills to Criminalize Peaceful Protest | The Intercept – Roger Corman’s Death Race 2000 seems eerily prescient

    This Team Runs Mark Zuckerberg’s Facebook Page – Bloomberg – interesting blend of personal and business brand

    Retailing

    Gen Z Likes Shopping In-Store; Seeing Items Encourages Purchases | MarketingCharts – so why are malls dying then?

    Security

    Americans and Cybersecurity | Pew Research Center – trust in institutions to keep their data safe has plummeted

    How WeChat bots are running amok | VentureBeat – black market AI powered bots used on WeChat to build friendship and bilk netizens out of cash

    Vincent Canfield’s Blog – It’s been a while – Chaos Communications Congress hacker meets US customs

    Software

    WeChat’s Hot New Feature Will Be Tricky for Marketers | Digital – AdAge – apps within the app are a new paradigm for marketers

    Technology

    China’s fintech industry shows where the rest of the world is heading | Techinasia – interesting read, though China’s conditions are unique

    Web of no web

    Will voice services like Amazon’s Alexa really rise as fast as predicted? | The Drum – interesting op-ed by Rob Blackie. Not as fast as predicted (paywall)

    Do You Want Smell-O-Vision for Your VR Porn? Neither Do We But Here It Is | Motherboard – interesting technology, ewwww product

    Wireless

    Xiaomi’s Plan to Rule the World: Build Every Gadget Imaginable | WIRED – more the vintage Sony or Panasonic model than the Nokia model

    Apple’s Full lawsuit against Qualcomm Comes to Light Revealing Secret Licensing Agreements and more – Patently Apple – interesting picking apart of Apple’s claims so it makes sense

    Apple Sues Qualcomm for $1 Billion | CNBC – What’s the back story, why now?

  • Instant pot + more news

    Instant pot

    Not Just A Crock: The Viral Word-Of-Mouth Success Of Instant Pot : The Salt : NPR – The instant pot of the title is what was called a slow cooker back when my parents bought one in the mid-1980s. It was a ceramic dish with a lid in a metal holder with a heating plate. They used to use the instant pot to make porridge for breakfast and lentil soup. I am expecting to see the instant pot as a case study in ‘value of earned media’ decks moving forward

    Business

    Getting to know: Perkbox – TalentRocket blog – great profile of my hombre from Yahoo!: Chieu’s joint

    Economics

    Theresa May’s speech: The view from Europe – University of Liverpool News – University of Liverpool – playing for the peanut gallery

    WSJ City – CPI Hits Two-Year High – UK price inflation due to currency devaluation is going to put a pre-Brexit squeeze on the economy prior to the post-Brexit tumble

    Finance

    Banks Welcome May’s Phased Brexit Bid Amid Plans to Relocate – Bloomberg – at the time of writing Morgan Stanley, UBS and HSBC indicated a definite move. Japanese government had already said its banks would start the move in 2017

    How to

    The Ultimate Guide to Baidu SEO in China | Dragon Metrics – great 101 guide in English to Baidu

    Luxury

    Korean duty free shops rely on online Chinese celebs | SCMP – when will the duty free trade be weaponised by China to deal with THAAD

    Marketing

    This Team Runs Mark Zuckerberg’s Facebook Page – Bloomberg – interesting blend of personal and business brand

    Media

    The Problem With AMP | 80×24 – behaviour worthy of antitrust player

    How a football publisher repurposed one event’s worth of video for 4 different platforms – Digiday – really nice laymans guide to video platforms

    We Are Social’s Monday Mashup #337  – interesting data on SnapChat and brand abandonment of the platform

    Rubicon Project Reportedly Exploring Potential Sale | Media Post – ad tech is taking a beating

    Online

    Instagram Live Stories officially lands in the UK | The Drum – now be able to officially go live within its ephemeral content service

    Retailing

    Greggs to trial delivery service in London | London Evening Standard – unfortunately only in the Square Mile at the moment

    Software

    Google RAISR Intelligently Makes Low-Res Images High Quality | PCMag.com – whats the difference between this and a near lossless compression algorithm?

    Security

    EU Space Agency’s Galileo satellites stricken by mystery clock failures • The Register – hacked?

    Technology

    Uber and Seamless ads reveal how Silicon Valley is screwing us – Sandpaper Suit – Medium – Silicon Valley’s gateway to serfdom

    Microsoft Veteran Will Help Run Chinese Search Giant Baidu – Bloomberg – Qi Liu from Yahoo! to Microsoft and of to Baidu. I always found him to be a temperamental person

    EU: Robot Workers Are ‘Electronic Persons’ – Robotics & Automation – Products

    Web of no web

    Do You Want Smell-O-Vision for Your VR Porn? Neither Do We But Here It Is | Motherboard – interesting technology, ewwww product

    Wireless

    Qualcomm: FTC Alleges Special Deal with Apple – Tech Trader Daily – Barrons.com – Extracted exclusivity from Apple in exchange for reduced patent royalties. Qualcomm precluded Apple from sourcing baseband processors from Qualcomm’s competitors from 2011 to 2016. Qualcomm recognized that any competitor that won Apple’s business would become stronger, and used exclusivity to prevent Apple from working with and improving the effectiveness of Qualcomm’s competitors.

  • Shareware: Throwback gadget

    Shareware -back before the internet became ubiquitous, software was distributed by bulletin boards. It was expensive to dial into a board, so magazines uses to have storage media pre-loaded with applications on the front of them.

    For much of the late 1990s and early 2000s my parents used to use MacFormat magazine CDs and floppy disks as coffee coasters. One disk may come with bloatware such as the installation software for AOL, Demon or Claranet. The other disk would be full of free or paid for software.

    The paid for software was often written by a single developer. It was a labour of love / cottage industry hybrid. Often the developers wrote the software to deal with a real need that they had, it was then passed on as they thought others would benefit as well.

    Open source software the way we understand it now was only in its infancy in terms of public awareness. Packaged software was big money. As recent as 2000, Microsoft Office for the Mac would have cost you £235. Quark Xpress – the Adobe Indesign of its day would have cost in the region of £700+ VAT.

    Into the gap sprung two types of software: freeware and shareware.

    Freeware was usually provided as is, there was little expectation of application support. It would become orphaned when the developer moved on to other things

    ChocoFlop Shareware Style

    Shareware usually had different mechanisms to allow you to try it, if you could see the benefit then you paid a fee. This unlocked new features, or got rid of nag screens (like the one from image editing app Chocoflop).

    In return you also got support if there was any problems with the app. Shareware hasn’t died out, but has become less visible in the world of app stores. One that I have been using on and off for over 20 years is GraphicConvertor by Lemke Software. It handles any kind of arcane graphic file you can throw at it and converts it into something useable.

    Kagi Software were one of the first people to provide programmers with a way of handling payments and software activation. Kagi provided an onscreen form to fill out, print, and mail along with their payment. it was pre-internet e-commerce.

    I can’t remember exactly what utility programme I first bought for my college PowerBook, but I do remember that I sent the printed form and cheque to a developer in Glasgow. I got a letter back with an activation code and a postcard (I’ve now lost) from the Kelvingrove Art Gallery and Museum.

    Later on, Kagi were one of the first online payment processors.

    From the late 1990s FTP sites and the likes of download.com began to replace the magazine disk mount covers. Last year Kagi died, making life a little more difficult for the worldwide cottage industry of small software developers. it was inconvenient, but now with PayPal developers have an easy way to process payments and there are various key management options.

  • Micro influencers

    Micro influencers – much of the social marketing today for consumer brand is done through what is called influencer marketing. For a number of these influencers who have a large social following, working with brand has become very lucrative. But one of the hottest tickets at the moment within communications agencies are ‘micro-influencers’; Edelman Digital lists it as a key area in Digital Trends Report . There is widely cited research by Marketly that claims there is an engagement ceiling (at least on Instagram). Once a follower count gets beyond that, engagement rates decline. This micro-influencer sweet spot is apparently 1,000 – 100,000 followers.

    What are micro influencers?

    Brown & Fiorella (2013) described micro influencers

    Adequately identifying prospective customers, and further segmenting them based on situations and situational factors enables us to identify the people and businesses – or technologies an channels that are closest to them in each scenario. We call these micro-influencers and see them as the business’s opportunity to exert true influence over the customer’s decision-making process as opposed to macro-influencers who simply broadcast to a wider, more general audience.

    Brown & Fiorella wanted to focus on formal prospect detail capture and conversion. It sounds like an adjunct to integrating marketing automation from the likes of Hubspot and Marketo into a public relations campaign.

    This approach is more likely to work in certain circumstances:

    • Low barrier to conversion (e-tailing)
    • Business-to-business marketing – for instance Quocirca did some interesting research back in 2006 that showed endorsements by a finance directors peers at other companies was likely to have a positive effect on a prospective supplier

    Brown & Fiorella’s thinking tends to fall down, when you deploy their approach to:

    • Consumer marketing
    • Mature product sectors
    • Mature brands

    Brand preference and purchase is much more dependent on reach and repetition to build familiarity and being ‘top-of-mind’ as a product.

    Most money in influence marketing is spent in the consumer space as B2B marketing tends to struggle with:

    • Reach
    • Volume of conversation interaction

    (At least outside of the US).

    Brown and Fiorella are 180 degrees away from the approach of consumer marketing maven Byron Sharp and his ‘smart’ mass marketing approach. This means that PR and social agencies are often out-of-step with the thinking of marketing clients, their media planners and other agency partners.

    Engagement matters less than reach or repetition of brand message for mature sectors or brands. For many consumer brands the drop off in engagement amongst macro-influencers is a non-issue, a red herring.

    The only part of the engagement measure that I would be concerned about in that case would be content propagation amongst my defined target audience – how widely had it been repeatedly shared as this would affect total reach.

    If the client and planner are using Sharp’s thinking then this audience would be wide, but a certain amount of the propagation would be wasted – for instance outside targeted geographies.

    From the perspective of communications agencies I can understand the obsession with engagement being part of their DNA. Micro influencers are an extension of this, as macro-influencers value is increasingly out of whack with their marketing benefits. These businesses are in the offline world are engagement agencies; whether its politicians, regulators, fashion stylists, movie set designers, editors, journalists, TV producers or DJs.

    Why are micro influencers a hot topic now?

    The most obvious reason is that more popular ‘macro-influencers’ are well informed about their commercial value which has been driven up to a point where they look expensive in terms of cost, even if you charitably look at it on a ‘per follower’ basis.

    On the supply side of the equation, influencer representation benefit from having more ‘inventory’ that can be sold at various price points to marketers. So in some respects micro influencers fulfil a market supply need.

    Challenges in influencer marketing

    From a marketing perspective there are a number of issues in influencer marketing – these factors are either unknown data points or represent an issue with the brand experience

    • Quality of brand placement
    • Cost per reach
    • Consistency of reach (how confident is the media planner that the influencer will achieve a certain level of reach)
    • Message repetition amongst the audience that I want to reach

    Which makes it harder to factor into an econometric model that would help justify the investment in influencer marketing as a contribution to sales.

    Let’s have a look at data around a campaign for smartphone manufacturer Huawei. This has been touted as successful by the agency involved, Social Chain. We don’t know the cost as its likely to be client confidential.

    • 2 million YouTube views (we don’t know how many of these were driven by advertising)

    • 75,000 likes

    • 13,587,159 impressions driven by 6 influencers

    • 10,689 clicks from 90 posts

    • 10 million impressions for the promotion of a colour variant of the smartphone model and 92,320 engaged

    • 4.6% engagement rate (which we’re assured is 41% higher than the industry average for branded content)

    What this doesn’t tell us:

    • Reach amongst target audience
    • Repetition amongst target audience

    Which could then be used to provide an estimate of its contributory factor to sales if you had an econometrics model. You can’t access how it works next to other tactics and there are limited outtakes for the learning marketing organisation.

    Quality of brand placement

    Many brands have struggled to get their brand in the influencers content in a way that:

    • Represents it in a meaningful way (for example beyond unboxing videos, one smartphone looks rather like another)
    • Doesn’t feel ad-hoc or awkward

    Some luxury brands have managed to get around this by keeping control of the content; a good example of this is De Grisogono – a family-run high jewellery and luxury watch brand. They work with fashion bloggers that meet their high standards and invite them to events. (It’s obviously an oversight on their part that I haven’t had an invite yet.)

    De Grisogono provides them with high-quality photography of its pieces and the event. They get the best of both worlds: influencer marketing but with a high standard of brand presentation which raises the quality of the achieved reach.

    There is a school of thought that micro influencers will be easier to manage in order to assure quality of brand placement. However, micro-influencers are likely to be aspiring macro-influencers and each will have a clear line of demarcation in their own head that they won’t cross. The reality is one of complexity dependent on:

    • Brand power
    • Relationships
    • Credibility of proposed idea
    • Impact on aspirations – could they get more followers by taking a stand and strategically burning a brand?
    Cost per reach

    Influencers tend to talk about themselves in terms of the number of followers that they have. However many followers seldom engage with the influencers content. This happens for a number of reasons:

    • The follow button is often used as a book mark or a like button
    • Algorithmic changes to social platforms and the volume of the social firehouse itself drown out brands (and these influencers are all about the brand of ‘me’). Whatley and Manson’s research at Ogilvy on the decline of organic reach in Facebook pages  is worthwhile having a look at

    Followers as a data point is not the straight analogue of reach that the industry and influencers would have you believe based on how they present their data.

    Reach numbers that are presented are often not that much more useful:

    follower

    (Data via Golin, TapInfluence and Marriott)

    Consistency of reach

    So influencers may give us follower numbers or ‘total reach’ calculations but how do we know what reach their brand placement content is likely to achieve? At the moment, I don’t know how consistent influencers are, I have a ‘personal time’ data project currently in progress on it. More on that hopefully in a later post. There isn’t off-the-peg data that I know of, so I am pulling together a data set.

    Message repetition

    Until we understand the ‘quality of brand placement’ we wouldn’t be able to understand whether a piece of influencer content was a point of content delivery. We’d also need to know do audiences of influencer A also look at media channels or other influencers that we have in our overall media plan. There often isn’t an overall media plan and there often isn’t sufficient quality of audience data for influencers.

    More on influence here.

    More information

    Edelman Digital Trends Report – (PDF) makes some interesting reading
    Instagram Marketing: Does Influencer Size Matter? | Markerly Blog
    Influence Marketing: How to Create, Manage and Measure Brand Influencers in Social Media Marketing by Danny Brown & Sam Fiorella ISBN-13: 978-0789751041 (2013)
    Facebook Zero: Considering Life After the Demise of Organic Reach

  • Brand communications

    Opportunities for brand communications – 2016 has been a watershed year in the western world. Political forces that were simmering, but previously untapped manifested themselves in populist victories. Political norms that were common currency for the past two decades have been brought into question and there will be societal impacts and changes in consumer tastes.

    Businesses are being buffeted by these changes and so will their business. In the case of the UK; supply chains will be re-engineered over the next two years to address the country’s departure from the European economic bloc. It will mean recalibrating the values of some brand communications. Most companies that I have spoken to are working on the assumption of the hardest Brexit:

    • No trade agreement with the EU
    • No customs union with the EU
    • No passporting for services such as banking
    • No agreement on storage of EU or US personal data in the UK
    • No free movement of EU talent
    • Problems with the WTO as countries look to settle scores like ownership of the Falkland Islands and Gibraltar

    This presents brand communications teams with opportunities and challenges:

    • There will be new regulatory and legal environments for companies to navigate
    • Corporate and social responsibility programmes will need to be recalibrated
    • There will be change management as jobs are moved abroad and facilities closed
    • Brands will have to work smarter with less
    • Consumer data based systems will need to be redesigned to meet the new legal and country boundaries imposed upon it
    • UK businesses will need to prepare for permanent handicap on their profits

    There is also a wave of change for consumer businesses. Whole categories of products – carbonated drinks, cereals and spreads are losing market share to substitute products. This is hitting the large FMCG (fast-moving consumer goods) brands including:

    • Unilever
    • Coca-Cola
    • General Mills
    • Nestle
    • Kelloggs

    Consumer brands have looked to counteract this in a number of ways:

    • Putting their spend where it will do the best work by using zero-based budgeting (ZBB)
    • Restructuring brand architectures – moving away from preventing brand damage through brand extension to brand consolidation to maximise the benefit of marketing spend. Coca-Cola is a prime example of this
    • Brand architecture will create a tension in the organisation. On the one hand the societal norm will be for local brands rather than global, on the other you have the corporate desire to cut and simplify to maintain margins. Whilst some companies may kill brands, others may sell them on to local companies, which will then try to squeeze as much value out of the brand equity as they can
    • Move away from micro-targeting to ‘smart’ mass-marketing – the key exponent of this is Byron Sharp at the Ehrenberg-Bass Institute at the University of South Australia

    Opportunities in terms of new products that communications agencies can offer

    • Internal communications programme – site shutdown or company shutdown as a product
    • CSR audit as product
    • CRM (customer relationship management) audit as product

    Brand communications vs. ZBB

    Focus on clients based on their strategic intent if they are implementing ZBB, here’s a quick guide I did earlier this year.

    Businesses have six paths to growth
    Zero-Based Budgeting

    Path versus agency discipline
    Zero-Based Budgeting

    If your client programme lies in parts of the spectrum where you won’t benefit, then as an agency you have a few choices:

    • Identify and grow your business within other brands of a clients business
    • Look at rivals for opportunities
    • Treat the current business as a cash cow

    Effect of agency consolidation on brand communications

    A second aspect of risk analysis is brand consolidation. There is not much that an agency can do with the change in brand architecture like Coca-Cola. The clients are likely to cut costs.

    A clearer source of risk will be ‘local gems’ this is a consumer brand that is only sold in one country (it may be known under a different name in other countries). These brands are likely to be closed down or sold on, particularly if they are in declining growth sectors such as margarine spreads, cereals or carbonated drinks.

    If you have only started planning about looking for replacement brands in your portfolio, it may already be too late. Best case scenario is that the brand is bought by a local FMCG company.

    Looking at previous brand sales like Radion washing powder as an example the acquirers will not support it with significant marketing spend. Instead, they will look to maximise their investment by mining existing brand loyalty and awareness.  Depending on the product category and the target audience will depend on how fast inevitable brand decline will be.

    Either way it is not a particularly attractive piece of business or large or medium-sized agencies. An incumbent agency will have to repitch for the work as it will fall outside the purview of existing contracts and business relationships.

    Advertising agencies have a head start in terms of their planners having a clear grip on what Sharp’s concept of smart mass marketing means for their discipline. PR agencies need to articulate this and reflect it in their account planning. They are still struggling to get to grips with social and are championing concepts like ‘micro-influencers’; that don’t fit into Sharp’s world view. They are effectively burning client respect.

    PR agencies need to think much more in terms of programme audience reach and repetition for audiences, rather than the current focus on influence. More marketing related content here.