Help!! Advertising Stole My Baby! Secret Truths From the King of Branding

Toronto – Ontario

Never did I think that someone deserved or could have the title: “King of Branding”. Yet yesterday I was summoned to a performance from the royal court of advertising at Koerner Hall, where Martin Lindstrom, Time Magazine’s 2009 Most Influential Person of the Year, was giving a speech regarding his new book Brandwashed. Martin came to Toronto to lay down the law on the advertising/marketing world, whats wrong with it, whats good about it, what works, what doesn’t, and most importantly provide insight into his own personal research about Brands and their affect on our lives. I will share with you some of these insights because they are honestly too good to enjoy on your own.

Do not do unto others as Jobs would do unto Microsoft

Firstly, a little background on Mr. Lindstrom would be in order. He is a self admitted Lego maniac who was one of few children actually employed by Lego to advertise their brand to other children. After Lego he spent 30 years in the advertising world building up some of the most prominent brands you see today. Nowadays Lindstrom has made the change from influencing consumers to being a consumer advocate. As admitted in his speech he did some bad in the marketing world (didn’t explain what) but now he is using his powers for good.

Lindstrom predicated his speech on the basis that although we believe ourselves to be rational, throughout our daily lives we make irrational decisions sometimes in response to advertising stimulus or preconceptions that we have as a result of advertising. Being a curious guy Lindstrom decided that talking to us regular folks would not give him the answers he needed, instead he turned to science to solve some of the “irrational” decisions that consumers make. In fact he turned to modern MRI technology to scan the brain patterns of consumers as they react to various ads.

His most interesting project was mapping the similarities between peoples interaction with brands vs that of religion. His research was backed up by two years of traveling around the world researching major religions and brands, along with quantitative data from MRI scans. The results helped him to create a matrix based on the four elements of: Ritual, Sense of Belonging, Story Telling, and Clear Vision, there are sub headings for each element to create a total of 10 tenets to follow. Essentially if a company can “tick” all 10 boxes they have earned themselves a license to print money.

Lindstrom then discussed some effective forms of advertising. Despite the latest craze over social media Lindstrom pointed out that word of mouth is still the most effective in influencing consumer behavior. He suggested that in the future it will not be uncommon for companies to use “seeders” or undercover brand ambassadors to promote products to friends and families. He said its already happening, remember the I-Phone that was forgotten at a bar before its launch? Or even how Lindstrom himself was employed by Lego? There is even a movie about it called The Joneses an idea that Lindstrom replicated in real life called The Morgansons.

If you blink -Lindstrom will sell you this book.

He also dropped some serious branding knowledge about an idea he coined, “the smashable”. “WTF is that you ask?”, a smashable is a part of your product, that when separated from the whole product is still recognizable as an intrinsic part of the main product. Think for example, Apple head phones, or McDonald’s Golden Arches. He said the smashables are some of the most important elements of brand building and recognition.

Lindstrom’s talk was engaging and very powerful, but it was also worrying. He touched on a Filipino chocolate company that targeted pregnant woman with coffee flavoured candy. These children showed a preference for chocolate by the age of 2, the youngest ever documented. This is a target market that cannot even breathe on its own yet.

The use of statistics was common throughout Lindstrom’s speech, the accuracy of his research was not discussed so one cannot help but take it at face value. It clearly shows a worrying trend where science has begun to track and influence consumer behavior to a degree not yet been seen. However, lets not forget that advertising has become a tough game, companies cannot reach the average consumer as before and the consumer is more empowered and informed. So while the companies are getting smarter the consumer is not making it easy.

Lindstrom based many of his conclusions on scientific research that he conducted, but I can’t help and remember that at the beginning of his speech he mentioned, “On average companies now spend about 7 billion a year on R&D, and despite this 9 of 10 products fail.” Now that he did all his research will it be worth the money?

Lets Get Digital – The Canadian Marketing Association’s Digital Conference

Toronto – Ontario

The Canadian Marketing Association (CMA) hosted an insightful conference at the Sheraton Hotel yesterday. The conference was focused on how digital technology can provide solutions and help businesses adapt to ever changing consumer behaviour. There were speakers from: Comedy Central , Rogers Sportsnet, Ipsos Reid, The Globe and Mail, Zoomer Media, Google, Microsoft, Ariad Communications and many many others. Needless to say, with so many speaks from such reputable companies the problem was not finding actionable insights but remembering them all!

If you are just seeing this you just missed Digital Day on November 7, hosted by the Canadian Marketing Association

The day started off with half open eye balls, staring sleepily into coffee cups, but the pace quickly picked up with the first panel discussion. The speakers were Marc Dinsdale, Senior VP of Rogers Digital Media Sports, Walter Levitt, Executive VP of marketing at Comedy Central and Chris Taylor, an Entertainment Lawyer at Taylor Mitsopulos Klein Oballa and owner of the record company Last Gang Entertainment.

Levitt and Dinsdale explained how they are connected to: twitter, facebook, television, radio, and print media to reach their target audience. Comedy Central and Rogers Sportsnet are unique in their approach to social media, because unlike other companies – they use it well. Their audience is well connected and passionate about the content that these two provide, at one point Levitt explained that Comedy Central has amassed a monstrous 32 million Facebook likes. Despite the effective use of social media Dinsdale and Levitt are clearly concerned about the threat that the internet poses to TV. This is where Chris Taylor chimed in, he explained that although record companies have become less profitable due to the internet, they still make money by diversifying the products they offer, dabbling in new media, and offering different price points for their products. So while he isn’t making the same money he would have made 15 years ago, he is still making money. This might be a valuable lesson for the TV execs but probably not one they want to go home with.

Next up was Steve Levy of Ipsos Reid – the market research firm. Levy was presenting the results of his market research into the use of digital technology by marketers and advertisers. His results revealed that marketers and agencies alike are moving away from traditional media outlets such as: print, radio and TV and shifting to mobile, internet and out of home digital. While the shift to newer digital media is important, he stated that the majority of spending is still allocated to traditional forms of media. Levy also pointed out that agencies are currently behind but very closely shadowing what in-house marketers are doing in terms of media focus. What seemed to resonate most with the audience and other speakers was his comment that many companies feel like they need to use social media, but in fact have no idea what they are doing. It seems as though companies are aware of these wonderful tools but not quite sure how to incorporate them into an effective long term strategy.

Steve Levy dropped some serious knowledge on the crowd at Digital Day.

A great panel followed Steve Levy’s talk and it consisted of Angela Scardillo, VP of marketing for Best Buy, Erin Green, Director of Marketing for Dealuxe.ca and Lisa Bradner of Geomomentum. The panel discussed how retail shopping and digital shopping is effected by the new “informed” and “connected”customer. Scardillo mentioned that the more educated the consumer, the less physical visits a store can expect. While this could lead one to the conclusion that staff should be cut, Scardillo mentioned that the quality of staff is an important element of differentiation and can add value to the in store experience. The panel reached a great conclusion regarding the use of social media, they stated that social media connects like minded people into a type of community, and if businesses want to connect with these people they must recognize the community aspect – rather than use those tools for selfish promotion. Having a presence is good, being pushy is bad.

These three talks were the highlight of the day for me, however there were many other great speakers, and informed conference participants. With the conference’s strong focus on how businesses are currently using and could be using digital technology I noticed that three themes were echoed throughout the day:

1. For social media – know your target audience, there might be some great technology out there but if your audience doesn’t want it – you don’t need it
2. Many companies are using technology as a short term tactic, but few have it fleshed out into a long term strategy
3. Those who do not accept technology will be left behind.

It seems like companies are getting more connected to reach you, do you know of any companies that you think are doing it right?

Greece to Europe – Should I Stay or Should I Go?

Toronto – Canada

At a time like this it is impossible not to write about the events unfolding in Athens. Prime Minister Papandreou has been orchestrating his country through a modern Greek tragedy that would make Oedipus scratch his head. This story has more angles then a Picasso painting but the most important element will be its implications on the viability of the European Union.

A look inside the meeting of G-20 members as they discuss the Greek situation, photo courtesy of Alyssaravenwood.com

As of now the specter of a referendum has faded due to Papendreou’s flip flop a la John Kerry. Had the Greeks voted against the bail out package it is quite certain that the EU’s strongest members (Germany, France) would have considered kicking Greece out of the EU. Although this has become less likely it may have started an important dialogue regarding countries that cannot stay within their budget deficit. As of now the EU has no punitive mechanism for countries who cannot reign in their finances, therefore there is no incentive for countries to stay within the EU budgetary parameters, a malaise seen in Italy, Portugal, Spain and Ireland. It may be too late to be having this conversation, almost like discussing a prenuptial before signing your divorce papers, just ask Paul McCartney.

Which leads me to my next question, “should we just stay together for the kids?” Is it worth it for the EU to spend billions, if not trillions on supporting Greece for the next couple of years, or should they just cut them loose? If Greece does not accept the bailout package, the money could be better spent bailing out French and German banks and making sure the stronger economies remain that way.

The argument for this would be that if all the bail out money goes to Greece then banks in other parts of Europe will take a serious loss on their Greek bond investments (which will not be paid out). If Banks take a loss they have less credit, less credit means businesses and consumers suffer which leads to less economic growth. So not only will Greece be suffering but so will the rest of the EU.

The interconnectedness of the EU economy has been touted as one of its strengths but presently it looks like a major weakness. The current situation stands as one of the most important tests of the EU experiment, if Greece goes will there be others? Or if Greece is bailed out will there be others? It is a mess. The worst part is that the EU has no previous mechanism to answer these questions, it is lost at sea and the crew is fighting over the steering wheel.

CN Rail and the Economy – And Who Said Logisitics was Boring?

Toronto – Canada

In this age of globalization where goods are shipped internationally to various markets it makes sense that trade will be a reliable indicator of domestic and international economic performance. Certain commodities such as steel if imported in large quantities to a certain country suggest a construction boom, but what about other indicators such as logistics? In a candid video interview Howard Green of BNN discusses with Claude Mongeau the CEO of CN Rail how CN Rail’s business reflects the performance of the Canadian and global economy. Find the link to that interview here.

CN Rail does not just ship goods, it is a shipper of the economy, and Claude Mongeau reveals that to run a railway you need to know whats going on and where it’s happening. In the interview Mongeau speaks in a calculated and deliberate manner about: how today’s economic worries are different from 2008, how the movement of goods is reflecting the source of economic activity and CN Rail’s growing market share.

Thankfully, Mongeau responds to Green’s question about how today’s economic woes compare to those of 2008 with some appeasing facts. Firstly, he mentions that CN is experiencing steady shipping in heavy industrial goods, which means that there have been no major fluctuations in the market so far. Mongeau also discusses how in 2008 inventory was piling up due to a lack of demand, but presently that is not the case as companies are keeping a consistent, “tight” level of inventory. This means that companies have either streamlined inventory warehousing or that there is indeed a consistent demand.

There is a remarkable part in this interview where Mongeau discusses the proportion of shipments that are Asia bound. He mentions that about 31% of CN’s business is exports to Asia and that it is the fastest growing segment of CN’s business. Mongeau goes on to qualify why he believes this export growth will be sustained, stating that demand in China for raw materials is based on domestic needs rather than for export based manufacturing. This means that demand for Canadian raw materials will not be affected if China exports less globally since the goods are for domestic consumption. The growth of Canadian exports is an important indicator as it shows the shift of Canadian trade to emerging markets and the growing viability of Canada as a trading partner with those countries. This trend has also been corroborated by Export Development Canada (EDC) which has been promoting Canadian companies to do business abroad.

Most importantly, the rise in exports has played well into CN’s hands, however there are other factors that have helped to boost the company into an enviable position such as fuel prices and network integration. Currently, rising fuel prices and congestion have made rail a more cost effective mode of transportation. Besides saving on fuel CN has managed to add more value to their network through intermodal transportation, meaning that shipments are no longer bottle-necked in ports and freight yards, thereby reducing shipping times.

All in all, this interview was very insightful as to how logistics can be a barometer for economic performance. Mongeau shows that he has a good grip on the interconnectedness of politics and economics and how his company can add value to its customers. So next time you are stuck watching a CN train go past you might think that a longer wait is not such a bad thing after all.

Going Up? The Elevator Speech, Tacky Sales or Effective Marketing?

Toronto – Canada

The day of the door to door salesmen has largely disappeared, and with it, so has the classic foot in the door shtick. However not all the classic sales tactics have disappeared. Thankfully for those who have not been hitting the gym, elevators are still around-giving enterprising individuals a chance to get their “foot in the door”. Of course I am speaking about the elevator speech. Classically the elevator speech is meant for the time when you happen to hop into the elevator with a VIP and you only have 30 seconds to convince them to meet you again.

You after closing the deal

There is a lot of chatter about whether it is worthwhile to practice this speech. There are mainly two schools of thought one of which insists that it is unlikely you will meet someone that is important enough to get you a job and willing to listen to you, while the second school perceives the elevator speech to be a form of shameless self promotion. But the elevator speech, if done properly, can be an effective tool to communicate your value and career goals. To achieve this the elevator speech should be short, concise, focused on value that you can offer- rather than self serving and long.

It is conceivable that one day you will run into someone that works for your dream company and you will want to show them you would be a great fit. How do you do this if you don’t know what your strengths are, or what you could add to that company? How would you answer the question: “Of all the qualified people, why should I hire you?” Even just jotting some ideas of how to answer these questions can go a long way. Even if you are not looking for a job having an elevator speech will help you answer the timeless question “So, what do you do?” without umm, ahhs, and stutters.

As for the shameless self promotion critique, it is only shameless self promotion if you are shamelessly promoting yourself. The goal is to try and get beyond your 30 second speech to set up another appointment by showing you have done your research on your abilities and strengths, the needs of the company and how you will be an integral part of the way they make money. Giving yourself a pat on the back in front of someone will not get you second appointment.

For me it was an effective exercise in narrowing down the strengths I wanted to emphasize to potential employers. It made me think about the jobs I was searching for and how I could communicate value through quantifiable attributes rather than just character traits such as, “highly motivated, team player etc.” A great deal of it is about delivery rather than straight up content, here is what I came up with:

I am currently studying International Marketing at Humber with the goal of working in account management at an advertising agency. I have experience in journalism and the legal field an edge in media and communications with a track record for working under pressure to meet deadlines. I would like to leverage my experience in these fields to help your company meet client needs through the use of new media and technology. Would it be possible to get your contact information so I could forward you my resume and some of more of the ideas I think would benefit your company and clients?