Word of Mouth.

"If you do build a great experience, customers tell each other about that. 

Word of mouth is very powerful."- Jeff Bezos

The power of word-of-mouth is exemplified in something that my father once told me. "Do something great for your customers, and they'll tell one person. Do something wrong for your customers, and they'll tell ten." I'm unsure of the accuracy of those statistics. Regardless, the point is communicated- Word of mouth can work positively, or negatively for your company. If you screw up, it's huge. If you do good, it potentially goes unheard. 


Here are some interesting stats:

• 16,000- The number of words spoken a day by an average person. (University of Arizona)
• 200 Million- the number of word of mouth recommendations made everyday in Canada. (Agent Wildfire)
• 93%- Percentage of consumer purchase decisions primarily influenced by word of mouth. (NOP World)
• The average consumer mentions specific brands over 90 times per week in conversations with friends, family, and co-workers. (Keller Fay, WOMMA, 2010)
• 90% of consumers online trust recommendations from people they know; 70% trust opinions of unknown users. (Econsultancy, July 2009)
• Recommendations from family and friends trump all other consumer touchpoints when it comes to influencing purchases, according to ZenithOptimedia. (AdAge, April, 2008)
• 4%- Estimated recall of TV advertisements from the last show we watched, down from 34% in 1965.(Newspaper Bureau Association)

Word of mouth is more powerful than ever, and it's imperative that companies use this to their advantage. Create something worth talking about- deliver exceptionally in one area, be it customer service, quality, product customization, and leverage that to your best ability. Get people talking.

Marketing to Females.

Mark Gungor captures the difference between males and females in a comedic way. He's right though, women can easily make an emotional connection between a product, and that connection will keep them coming back for more. 


Take Page Premium Denim for example. I recently purchased a pair of Paige jeans and I found an insert in the back pocket, and the insert told me this:

"I want you to love your body. 

Feel comfortable in your skin. 

Be comfortable in your genes!

Thanks for believing in our product.

                                        Paige"

Not only does this memo connect with me on a personal level, it makes me feel good. It makes me feel so good that I want to spread the word about Paige denim, so I did. I showed some of my friends. I received nothing but positive responses. Although it may not have compelled them to go purchase Paige premium denim, the next time they see it in-store they may be willing to try on a pair, who knows.

Another example? Sanctuary Clothing. Sanctuary Clothing is a company founded in 1997 out of Los Angeles (www.sanctuaryclothing.com) that includes a small bracelet and charm with every purchase of their apparel. The bracelet comes with a cardboard cutout that says "Look for the Sanctuary symbol- Your Quality Guarantee." The charm is their logo, a small bird with the words sanctuary engraved along the back. Although this is a small effort, it helps to communicate to customers that they truly care about them because they are going above and beyond what is required. They make high quality products- and they're going the extra mile to communicate this. Not only do they care, but they're doing something innovative that will help spread word of mouth. I won't be surprised if Sanctuary experiences high growth over the next few years as North America emerges from the recession.

Paige Premium Denim and Sanctuary Clothing are just two companies that successfully market to women. They're establishing an emotional connection with their consumers, therefore creating brand loyalty, and spreading the word at the same time. 

CD Baby is a Purple Cow.

I just finished reading Seth Godin's Book- Purple Cow. Seth Godin stresses that in order to be successful in a crowded marketplace, you need to create a Purple Cow. So what is a "Purple Cow"? Put simply, a Purple Cow is a remarkable product. The product is so remarkable that it sells itself to a specific target market, without a large marketing budget. For example, Starbucks was remarkable in offering superior customer service to coffee enthusiasts. The word spread amongst coffee enthusiasts and eventually spread to the general public. Now Starbucks has a huge marketing budget, since it takes a mass market approach. However, when Starbucks was first getting started they relied primarily on word of mouth. They relied on the hype of their purple cow to generate their sales. 


CD Baby is a Purple Cow. They are the largest online distributor of independent music. They have created a website where they hope you will find your new favourite artist. So what is so remarkable about CD Baby?


1. They provide advice to aspiring musicians through their blog The DIY Musician (http://diymusician.cdbaby.com/). Their blog illustrates that CD Baby doesn't exist solely to make a profit, but instead to offer assistance to those who share their passion. How refreshing is it to do business with someone who is so passionate about what they do? Don't you think lack of passion in one's career is too common of an occurrence? 


2. They truly care about the well-being of their artists. In a major record deal, artists typically make $1-2 for every album that they sell. At CD Baby, artists make $6-12 per album. 


3. They pride themselves as a website that is run by artists FOR artists. The employees at CD Baby can easily relate to aspiring musicians, and this makes doing business more enjoyable for both parties. 


CD Baby has taken something boring (buying music) and made it remarkable. I encourage you to visit their website if you haven't already (www.cdbaby.com), and maybe you'll find your new favourite artist. 

Change for the better #1

"The Relentless Pursuit of Perfection."


The slogan of Lexus- the relentless pursuit of perfection illustrates all the changes that Lexus has made in order to deliver great products. Through implementing kaizen- a philosophy of continuous improvement, they were able to engineer one of the quietest engines of all time. Their products exceed functional expectations. They are luxurious. They are reliable. They are safe. 

Two years ago I was involved in a car accident in a Lexus ES 300. I was driving on country roads around night time, when an animal ran in front of my car. My first reaction was to swerve. I swerved too much, lost control, and ending up driving off a 45 foot cliff into a forest. I thought I was going to die, right then and there, 19 years of age. To my surprise, the car landed perfectly on the forest floor, but I knew it was only a matter of time until I would crash into something. I crashed into a tree. 

So what was the outcome?

I walked out without a scratch. The ES 300 was an unbelievable car. Reliable? Check. My family and I had put 215,000 kilometres on this car, and nothing had needed to be repaired yet (except for routine replacements such as brake pads, and windshield wipers, but nothing of magnitude). Safe? Check. The police officer told me I was lucky to be alive given the situation. I asked him what the outcome would have been had the car had been of a smaller size. He shuddered at the thought. Luxurious? Check. Like any Lexus product, the exotic wooden steering wheel never made my fingers cold (unlike my all leather Benz steering wheel). 

The image pictured above wasn't my car (sorry to trick you) but my car looked very similar afterwards. I couldn't take a picture of my car because I was too traumatized afterwards to even think about taking a picture. In hindsight I wish I had. 

Lexus is always improving their products. To replace the car I crashed my family purchased the newer version of the ES 300- the ES 330. Because of my experience, I feel that we'll always purchase Lexus products. We also have a GX 470, and an LS 460. We haven't made any repairs on these cars because Lexus's quality is phenomenal. 

An experience like this completely changes your outlook on a company. If you are ever looking for a reliable, safe, luxurious car that you won't have to put a lot of money into for repairs and maintenance, Lexus is the brand for you. 

Change.

"There is nothing wrong with change, if it is in the right direction."- Winston Churchill

I think it's safe to say that most people hate change. But why?

Is it the risk that comes with trying something new? The uncomfortableness? 

Lets think about when consumers experience change. Suppose a product you use on a regular basis is altered in some way. Perhaps this product alteration is for the better, perhaps it's for the worse. Let's turn our attention to product alteration flops- change for the worse.

Change for the worse #1- Sun Chips compostable bag.

Sun Chips decided to make their bag compostable- a great idea in a world where the great majority of north america lives with an ecological footprint far surpassing any level of sustainability. The drawback of this compostable bag? The noise it creates when trying to enjoy a delicious sun chip. This bag was so loud- it measured in at 95 dB, about five decibels louder than the level when you have to start worrying about hearing loss. Not only did it make eating sun chips unenjoyable, but Sun Chips also received a lot of negative publicity over this matter. A facebook group formed, titled: "Sorry but I can't hear you over this Sun Chips bag" and achieved over 30,000 members.

I first heard about this compostable bag at a marketing conference- from an employee of Sun Chips. He talked about the sustainability of the bag and how they were helping to reduce landfill waste by the tons. It sounded like a great idea to me. I was in awe. There was no mention about how the bags were ridiculously loud and how they were not received well with consumers. 

The next day of the conference- VP of marketing from a different corporation mentions the Sun Chips compostable bags in casual conversation, and how big of a flop they were. I was confused. What? A flop? But the man who spoke at the conference yesterday said they were amazing?

Key learning point: there are two sides to every story. I know that your mother has probably been telling you this since you were five, but in a world of marketing it's easy to be persuaded by commercials, by the media, by advertisements. Before you're easily influenced by any form of marketing/advertising- look into it first. Do your research. You'll be more informed and make better purchasing decisions. 

Change for the worst #2- New Coke, 1985

The New Coke, introduced in 1985 is possibly the biggest change for the worst in marketing history. 

When Coca Cola changed their product, they didn't consider that so many of their consumers had grown up with coke, had coke embedded in their childhood. A consumer even said to the CEO at this point in time "thank you for taking away my childhood." Nostalgia is something that so many companies overlook. Although it's necessary to innovate and adapt as markets change, some companies take it too far. They destroy their legacy. 

Unfortunately for Coke, Pepsi used this as an opportunity to gain market share. Soon after the "New Coke" was launched and received poorly by consumers, they returned to their original formula for Coke. 

Key learning point: The power has shifted from corporations to consumers. Consumers have a voice that is easily heard (even more so now through social networking sites, blogs, etc.) Coke consumers spoke up for what they wanted, what they thought was right; and they were given what they wanted. If more people spoke up, the world would be a better place. So speak up and you'll achieve change for the better, not change for the worse. 

Am I Invisible?

How ironic is it that my blog is primarily about marketing and advertising and I can't even advertise myself? 

I'm invisible, with 0 followers, and approximately two readers (whom are my classmates). This needs to change. Am I that boring? 

Create something remarkable.

Create something remarkable. 


This is the main message of Seth Godin's book Purple Cow (which I highly recommend). In a world with millions of advertisements, it's difficult to make your product stand out. If you have a remarkable product, it's a lot easier to gain awareness and, well, be successful. 


I think Cake Boss perfectly exemplifies Seth Godin's philosophy. Carlos took something as simplistic as baking, and made it remarkable. He created a story around his bakery, with a focus on family and values. His values are humanizing; he has extreme talent and a successful bakery, but he has similar values to you, and he's a down to earth guy. Throw in an accent and a good sense of humour and now he's entertaining. I don't even bake, and I watch Cake Boss on TLC on a regular basis. Carlos has extended his target market from the avid baker that watches TLC to 20 year old university students that never bake, but find pleasure in seeing remarkable things created before them. Who doesn't want a piece of the remarkable?

Valentine's Day, A Marketer's Haven.

Valentine's Day... A holiday exploited by corporations. Valentines Day makes even those without significant others feel obligated to take part in the festivities. Valentine's Day was established 496 AD by Pope Gelasius. I really would love to blame corporations for this horrible day, but I guess we have Pope Gelasius to thank. 


The good thing about Valentine's is that some corporations develop advertisements that capitalize on this day. Take Thrifty for example, or Absolut Vodka. Enjoy.

 

Target launches an affordable Valentine's collection to appeal to price sensitive consumers, whom have either just met their Valentine's date, or want to maximize the dollars they spend. Genius.

iButterfly- Social Media Efforts in Japan

iButterfly iPhone application

Today I learned about this iphone application iButterfly. iButterfly is an augmented reality iPhone application. I'm not entirely sure how it works since I haven't had the opportunity to try it out. My understanding is that a butterfly will "fly" across your iPhone depending on your location, and you have to try and "catch" it. The butterfly actually represents a coupon for a store or restaurant for the area that you're in. There's even the option of sharing your butterflies with your friends, again through augmented reality. iButterfly is an application that saves you money, but is appreciated by users because there is an experience associated with getting deals. This application works great in Japan because they have a culture in which they like to share with others. Not that North America doesn't have this type of culture, but in Japan, people are open to sharing just about everything (even personal space). This is why it has been so successful in Japan, but I still think it has the potential to be successful here.

Check out the YouTube video:

http://www.youtube.com/watch?v=vEE6M0iW-Nw

Then and Now

Wrigley's Gum Then
1928

"There is real Peppermint in Wrigley's Double Mint- a new and better
peppermint flavour- lasting, healthful, and antiseptic"

Back in the 20s, 30s, and 40s, Wrigley's used to position itself as a gum with health benefits. "Good for the teeth, throat, stomach, and digestion." But antiseptic? To describe the product? Really?


Definition
Antiseptic: of, relating to, or denoting substances that prevent the growth of disease-causing microorganisms. 


Synonyms

• bactericidal
• uninfected
• germicidal
• sterile

Wrigley's Gum Now

Chris Brown endorsing Wrigley's Spearmint Gum

Wrigley's now uses celebrities to sell their products. Talk about contrast. It took 80 years to shift from a weird looking character on a sled that discussed the antiseptic properties of the product to an influential young artist making the product visible to many young teens. Do I think either of these ads were effective? Chances are the ad launched in the 1920s probably was effective. There was a lot less noise back then and consumers were more willingly to pay attention to advertisements. Is Chris Brown holding Wrigley's gum effective at increasing revenues and market share? Probably not. Is it effective in gaining awareness and building brand equity? Yes. 

Regardless, I couldn't find much on Wrigley's advertising in the present time. Come on Wrigley's... Step up your game. Do something innovative. I'm waiting. 

Julie and Julia Marketing Challenge

I recently visited Chapters this weekend. There's something that bothers me about visiting Chapters. Whenever I visit Chapters I come to the conclusion that I want to read every book in the business section but I can never find the time. Sometimes I buy books, but they sit on my shelf for months until I actually get around to it. I need to take action about this. Something needs to be done. I'm going to challenge myself. I'll call it the Julie and Julia Marketing Challenge.

If you haven't seen the movie, here's an overview:

Julie (main character) loves to cook, and she really looks up to Julia Child. Julia Child is a french cook that has written many books and is basically a cooking genius. She can cook anything. Julie challenged herself to cook one of Julia Child's recipes every day for a year. The movie captures Julie's frustrations, accomplishments, and personal growth throughout this period of time. I'm going to apply the same concept, but to marketing. I one day hope to be a marketing genius, and I realize I am nowhere close. This is why I am challenging myself to read a marketing book every week for a year. Regardless of how busy I am with exams, midterms, and extracurriculars, there will be no exceptions. I have decided to do this and I'm sticking to it.

Bring it on.