The Reason: part brand consulting + part social anthropology

In-store product placement

This is smart and a great way to fight through the clutter.   

The Reasoning: positioning yourself against substitutes instead of direct competitors communicates a differentiated value proposition. Seems pretty intuitive.  The truth is most brands aren't differentiated in the eyes of their customer and that's why customers shop on price. Actually, most agencies aren't differentiated to clients and that's also why they shop on price.

Who are your substitutes?  And, how will you position your brand against them to make a meaningful connection with your customer?

Seen on Drew's Marketing Minute

Powerpoint Stats: African Americans embrace Twitter

A recent Pew Internet study shows that African Americans are more likely that any other ethnic group to use Twitter or another online status update service.  In fact, 1 in 4 African Americans online use Twitter or a similar service. No reason for me to reiterate the entire study, check it out here.   

Competitive Strategy Insight from Mike Tyson

When on-boarding new clients, I apply two frameworks –  3C’s (Customer, Company, Competition) and The Reasoning.  The 3C’s helps me gain a better understanding of how clients see themselves, the competition, and their target audience.  The Reasoning, my framework,  ensures clients are delivering relevant messages at the right place and at the right time.  I pretty much have these frameworks down.  So, imagine my surprise last week when I was watching Oprah and Mike Tyson gave me a new way of looking at the 3rd C -- competition. Okay, let me stop there for a second.  For those that don’t know, I’m on paternity leave i.e. I find myself watching my fair share of daytime TV.  Back to business lessons from Iron Mike.

 

Tyson told Oprah he would watch videos of his opponents and ask his trainer– “How do I beat him?” Think about that for a second… “How do I beat him?”  If you’re a new entrant or a brand with limited market share, this is the single most important question you must answer.  The Reason -- It’s a liberating question because it helps you think outside the box.  This might be a leap, but I think this question forces you to look at the value chain for your industry i.e. how and why does your industry deliver value to your customer.   Once you look at all those pieces of the value chain separately, you begin seeing how your brand can beat its competition.  In other words, you can differentiate your brand from the competition.

 

Want to be competitive in your industry, answer the following questions:

1. Who is your competitor?  And, how will you beat him?
2. How will you apply The Reasoning to communicate your value proposition... btw, I can help you with this one

Promotional Marketing at Religious Institutions

Marketing inside of religious institutions is usually frowned upon.  Other than the marketing campaign for Passion of the Christ and when companies buy ads in the back of the Sunday program, I frown upon it myself.  However, the idea to build a promotional campaign targeting churchgoers came up after my most recent focus group discussions.

 

After debating whether this made sense for the client, I came to wonder why banks/credit card companies don’t reach out to faith-based institutions. The Reasoning – credit card companies could offer a relevant and meaningful twist on their myriad cash back options by giving cash back to the religious institution of the cardholder (read: tithes).  It’s a win-win for everyone involved.  The church promotes this offer to the congregation to raise funds.  The cardholder gets an added benefit without changing their behavior. The credit card company promotes a relevant and meaningful product enhancement that differentiates them from the competition.

UCLA Extension

I'm excited to announce that I'm a recently minted instructor at UCLA in their Business and Management Continuing Executive Education Program.  As I write this post, a Slick Rick verse comes to mind... "Teacher, teacher, tell me how you do it. It looks kinda easy like there was nothing to it." Ok, I'll stop writing this as a stream of conscience.   

I'll be teaching a class on multicultural/ethnic/diversity marketing beginning in January.  Executives who enroll will learn about resources to develop marketing strategies and how corporations, organizations and small business owners can tap into this $2 trillion market. 

Here's my class description...

"Diversity Marketing is the effort to communicate a believable story, celebrating commonalities and honoring differences across diverse consumer segments, to influence future consumption. How is this different than what is learned in Marketing 101? The fundamentals are the same, with the success of any marketing strategy relying on effective segmentation and sound understanding of your consumers. However, in Diversity Marketing, the key is to focus on the evolving implications associated with engaging diverse consumer segments – a focus to not be taken lightly or over-simplified."

General Market Advertising

A recent Ad Age white paper “2010 America” highlights some key points begging the question for me – What’s The Reason for general market advertising?

 

For instance, the author Peter Francese writes -- Minorities are the new majority.

• In the two largest states (California and Texas), as well as New Mexico and Hawaii, the nation's traditional majority group -- white non-Hispanics -- is in the minority
• In the nation's 10 largest cities, no racial or ethnic category describes a majority of the population

 

If you’re like me, you read those two bullets and said… “word.”  That’s right… the concept of a general market is dead.  It’s no wonder so many people think advertising sucks… most of its not targeted to anyone in particular. 

 

So, what do we do with this information?  The easy answer – focus on consumer lifestyles and integrate your brand within those lifestyle by figuring out ways to add value to those peoples lives.

American Airlines launches social network for blacks

Didn’t Blackplanet.com do this back in 1999?  j/k.  American Airlines actually takes a unique approach here with its site blackatlas.com.  It’s a combination travel site with social networking features for travelers to share experiences unique to the black community.  I’m always fascinated with new travel sites because I love to travel.  My personal mantra… “I have more passport stamps than you.”  I take an international trip every year with some of my closest friends.  Last year, we went snowboarding outside of Santiago, Chile. 

 

I digress, back to American Airlines.  I think AA has an opportunity to fulfill an unmet need in the black consumer marketplace.  Most Americans are risk averse when they travel. Doesn’t matter your background, that’s the M.O. on Americans. For African Americans, this site removes much of the risk associated with traveling by highlighting culturally relevant places at your destination. 

 

As I said in my Pepsi post yesterday, I commend this type of thinking. The Reason –brands need to start having real conversations with customers instead of relying on media companies to piecemeal access to their target audience.  I have a few ideas to make this site a Reason-able stop for African American travelers:

• Local Icon Picks.  Identify local icons and highlight places they want you to check out in their city.  For example, It’d be great to check out places Common thinks is cool in Chicago
• Calendar of Events.  Most travel sites get the planning equation wrong… they ask for your destination and the dates you want to fly.  This site should highlight events of interest in different cities so people can know when they should take time off from work.
• Mobile App.  I should be able to access all this information on my phone once I get to my destination.

Pepsi We Inspire

Pepsi recently launched a digital community for African American women – PepsiWeInspire.com.  My first impression - smart move Pepsi.  The Reason –brands need to start having real conversations with customers instead of relying on media companies to piecemeal access to their target audience. 

 

Ok, let’s move past my first impression.  This site is all about Pepsi serving as a platform to connect African American women with inspirational stories.  Like my wife and I say to our kids when they’re crying with no tears… “we don’t believe you.”  And, neither will your target audience.  The story is just not believable.  Let me explain… the story you're communicating to your audience goes something like this – we’re developing an online space with celebrity endorsements to inspire you. 

 

Let me offer a voice of reason.  The story should go something like this… Pepsi signs a joint venture deal with [blackmomsclub.com, mommytoomag, or any of the other websites started by and for African American women] to further their mission of providing uplifting stories to African American women.  See how that sounds.  It’s an inspirational story.  The investment shows just that… you’re invested in the comunity.  And, your resources in tandem with one of these entrepreneurs will allow you to achieve your objectives  -- RELEVANT access to and believable connections with a database of users for targeted communications.

Microsoft deletes the black guy

Microsoft is in hot water because of its retouching of a print ad for two different markets.  Microsoft used this ad with the black guy for its domestic marketing campaign and then decided to reuse the same ad sans black guy in Poland.  If you look closely at the second image, you’ll notice his hand is still the same.  I guess Microsoft didn’t think the image of the black guy would resonate with their target market. 

Is this a big deal?  No, not really.  Marketers develop creative to resonate with different audiences all the time.  Ah, maybe that’s The Reason people are upset… Microsoft used the exact same creative and just switched out faces.  That’s racial insensitivity.  There are two questions that need to be answered in this type of situation: (1) if a creative resonates across different audiences, is there really a need to change faces used in each market? (2) If there’s a substantive Reason to use different faces for different markets, doesn’t that imply there may be a need to develop substantively different creative?

[Update via twitter: Microsoft has re-inserted the black guy into the ad]

Foundation for Second Chances Gala

This organization is near and dear to my heart.  I've volunteered with FFSC for a number of years.

On Friday, September 25, 2009, Foundation for Second Chances, a nonprofit organization which utilizes hands-on education, mentoring, health awareness and community service to maximize the potential of youth will be holding its 1st Annual Leadership Awards Gala in Los Angeles.

 

The event will bring together a diverse group of 150-200 business and community leaders at The Proud Bird in Los Angeles for a relaxed evening of cocktails, hors díoeuvres, dinner and education about our important work.

 

Foundation for Second Chances (FFSC) has been changing lives and building futures for children, youth and families in Los Angeles since 2004. FFSC programs show how afterschool, mentoring, health awareness and community service programs can have an impact on youth.

 

Not only do FFSC's programs enhance young people's attitudes about themselves and their futures, but FFSC's programs increase academic achievement and decrease delinquent behavior. Foundation for Second Chances is committed to delivering programs that change lives and build futures.

Please check out the site and buy a ticket for the event.  http://ffscinc.org/gala.html

What Works?

What combination of your marketing activities increases the likelihood of a purchase? With more ways to reach customers and less money to do so, marketers must have insight into what impacts their customers.  Here’s one way to find out what works – create a Persona… a detailed description of your ideal customer.  Gather together your research and bring it to life by creating a narrative describing your ideal customer and how he interacts with your brand.

 

Here’s an excerpt from a persona The Reason built, sans narrative.

-Name: Paul

-Age: 21

-Occupation: Film student at NYU

-Operates a t-shirt line on the side

-Connected with every college DJ in town via myspace, facebook and sms

-Seen as the fun guy by his peers

 

The Reason I like Personas -- focuses you on what works for your customer while allowing you to throw the other stuff out i.e. you can be more precise when making budget cuts.  

What happens if you do nothing?

With budgets dwindling and innovation falling by the wayside, stop and think about what happens to your brand if you do nothing? 

I completely understand the need to reduce spending, but my fear is that doing nothing may leave customers feeling undervalued or neglected.  Not a risk you should be willing to take in this market – a market characterized by declining consumer confidence and rising consumer distrust and cynicism.   Brands need to give customers Reason to value your relationship.  Going back to The Reason’s dating analogy for marketing – if you’re not wooing your customer and earning their trust, you can bet someone else is.

I know what you're thinking... "I just don't have the budget."  I get it.  It’s obviously tough these days, but the key is to make sure every penny spent makes an Impact.  This, of course, relies on the credibility of your brand’s Insight into consumers’ lives.  Only when Insight is properly tapped and applied can you develop marketing strategies and initiatives (Ideas) that will yield the optimized ROI – stretching that dollar for the greatest Impact.  Furthermore, you should be committed to regularly measuring your Impact… and ready to tweak your initiatives based on evolving consumer Insight.

These are tough, tough times. As analogous as marketing may be to dating, you can't let emotions guide your decisions...  you gotta be Reason-able.

Powerpoint Stats: Digital Divide no longer exists

The Digital Divide is a relic of the past.  The Reason... mobile devices.  

That's according to a study conducted by the Pew Research Center's Internet & American Life Project.  The study concludes -- African Americans are the most active users of the mobile internet -- and their use of it is also growing the fastest. When mobile devices are factored into the mix, the digital divide between African Americans and white Americans diminishes.  

Highlights of the study...

• 48% of African Americans have at one time used their mobile device to access the internet for information, emailing, or instant-messaging. National average is 32%.  
• 29% of African Americans use the internet on their mobile device daily.  National average is 19%.

Throwback Thursday: Call of Duty 4

Insight, Ideas, Impact... those are the steps we take to achieve successful marketing campaigns.  As always, I have proof.  Check out what we did with Activision for the release of Call of Duty 4.  Again, most agencies talk a good game about experiential marketing.  Here's how The Reason makes it happen.  

Insight.

The Call of Duty franchise already had a loyal, captive following - the hard-core gamer. As always, the key for the Reason was to identify the most relevant rituals where we could add value.  We decided to target key rituals for these gamers -- frequent visits to onine gaming communities and local GameStop stores.  

Ideas.

The goal was simple -- elevate game to "must have" status.  Based on Insight, we produced and managed 10 simultaneous events at GameStop locations in top 10 U.S. markets. These high impact events provided customers an exclusive opportunity to play Call of Duty 4: Modern Warfare single-player before it was released to the public.

Here's a granular look at what we did:

• Campaign Theme. Created unifying tagline "The Evolution is Here" to anchor the entire campaign across all mediums. 
• Digital Promotions. Developed online messaging to virally promote events via message boards and blogs 
• Point of Sales. Created in-store promotional signage and event invitations which were distributed at retail
• Guerilla Marketing.  Wild postings and hand-to-hand distribution of event invites  

Impact.

Events received media coverage by G4-TV, Ain’t It Cool News, Weekend Distractions, Media Geeks, and GameStop TV.  Oh by the way, COD4 also went on to become the best first person shooter game of all time.  Doesn't get more "must have" than that.  Those guys created a great game and I'm glad we could create memorable experiences for gamers across the country.  

NAACP

The NAACP’s brand is simple and to the point - it is a civil rights organization. As the NAACP celebrated its 100-year anniversary last week, it seemed like mission accomplished as Pres. Obama, the first black president, served as keynote for the celebration.  As I listened to Pres. Obama, I wondered how tough it was for a civil rights organization to communicate its value proposition to a younger generation that doesn't see the same civil rights struggles.

Quick history… the NAACP was at its height in the 50s and 60s after the Montgomery Bus Boycott and the Brown v. Board of Education case desegregated schools.  That's when the NAACP’s value was apparent – the issues they sought to resolve were evident and their impact was tangible.  Recently, the NAACP has expanded its mission to include social inequities ranging from racial profiling to the genocide in Darfur.  So, back to the value prop discussion – I think the challenge for the NAACP moving forward is ensuring their brand still delivers value.  Quite honestly, nowadays most people don't know when the NAACP has done a good job or is doing its job… how do we measure the NAACP's impact? What metrics are relevant?

NAACP needs to give Reason to their relevance:

1. Partner with BET or TV One. Fulfill an unmet need in the black community by creating a quality news program from an African-American point of view. Brand it NAACP News and update us on issues of importance to the black community and show us how you're helping to solve those issues – proceed to Step 2. 
2. Angel Investors.  Become angel investors to both nonprofit and for profit ventures in local communities.  Leverage your political clout to secure funds and disperse those funds in the community.  Then show us how you’re helping to solve our community’s issues (see Step 1) – Use metrics to tell us how you've helped local nonprofits find x mentors in different cities; how you've looked after x amount of children by investing in after-school programs; and how you've generated x number of jobs in the community by investing in minority-owned businesses.

Lessons from Eddie Murphy

Flipping through channels this weekend, I caught the tail-end of Dr. Dolittle, which was followed by Dr. Dolittle 2.  My wife joked that she couldn't believe this was the same dude that did Raw and Delirious.  Most husbands would say, “I know,”  and laugh it off. Not me, instead I found myself applying a little Reasoning … thinking how Eddie was the perfect case study on brand management for generational marketers.

Here's why... generational marketers are always faced with a strategic decision -- Do you grow and/or evolve with your consumers or do you stay with the same segment and wait for the next crop of consumers to grow into your segment?  Teen marketers are faced with this question all the time.  Eddie chose to grow up with his customer... realizing the same person watching his raunchy stand-up comedy would inevitably have a family and therefore need more family-friendly entertainment.

The questions for brand managers focused on Gen Y, X, tweens, etc. is: What do we do when our customers’ preferences and rituals change?  The Eddie Murphy playbook says to think about creative ways to extend your brand into platforms and channels that make sense as they grow up.   Case in point, I thought Hasbro parted ways with me back in elementary.  Nope, they showed back up in my life in '07 by extending their Transformers property into entertainment.

How can your brand be extended as customer rituals change and evolve?  Let's talk and we can take a look at The Reason’s playbook.

Billing meet Customer Service

Recently overpaid a bill.  Believe me, that doesn't happen too often.  The company sends back my check with a note essentially saying please send the correct amount and do it quick or else your payment will be late.  Really! Was that really the correct response?

A little Reason for you…  First, your billing should be interacting with customer service.  When this happens, you tend to move the focus away from your archaic billing systems and place the focus on creating pleasant customer experiences.  You've already made the sale, there's no reason to mess up now.  Second, pick up the phone ask the following questions:

1. Do you want a check for the difference?, or
2. Do you want to apply the credit to your future balance? 

That would have made me happy.  This isn't about going above and beyond, it's just remembering that all touchpoints should accommodate the customer and not organizational functions. 

Throwback Thursday: Totally Wired

By now you know what The Reason’s all about – Insight, Ideas, Impact.  Check out how that thinking was applied when working with first-time author Anastasia Goodstein to promote the release of her book Totally Wired: What teens and tweens are doing online.  Most agencies talk a good game about experiential marketing; here’s how The Reason gets it done.

 

Insight:   Since the premise of the book was to educate parents about youth activities online, The Reason identified and targeted natural advocates who would effectively reach and influence parents: 1) Helicopter parents – because they are the parenting segment who want to be “in the know” and educate their peers on educational resources; 2) Influential teachers, librarians, and other educators of teens and tweens –because their credibility relies on their ability to proactively arm themselves with the most current, relevant information needed to better communicate with teens and tweens.

 

Ideas: The goal was simple – Get Totally Wired to the proverbial tipping point. To do so, rituals (activities of importance) for the targeted advocates were scrutinized to determine the best communications plan.  Ultimately, we designed and implemented a national tour anchored by regional PTA conferences and several high profile national education conferences.  Tour updates were managed via a branded microsite.  In addition, Procter & Gamble’s BeingGirl.com was sold as a national sponsor and blogher was brought in as media sponsor.

 

Impact:  There were two additional print runs and book sales increased by over 500%.  As Anastasia tells it… “The Reason has been instrumental in helping me take the message of my book to hundreds of parents and educators hungry for information about what kids are doing online and with other technology.  By helping me attract a blue-chip sponsor (Procter & Gamble) and coordinating speaking engagements across the country, The Reason has helped me exceed my goals for promoting Totally Wired.”

Going above and beyond

You ever go some places expecting poor customer service?  Like Walmart, the DMV, or any government office, for that matter. After this morning, I’d add tow truck companies to that list. I had given someone a ride to pick up his car at a tow truck company’s impound yard and the experience definitely had me applying a little Reasoning …

Think Price Discrimination – not as bad as it might sound, it simply means charging different prices to different buyers. More importantly, it means you need to make sure you understand your customers; what they value and what they are willing to pay for that value.  In the case of the tow truck company, since your customer expects you not to have good customer service and assumes they will pay a lot for very little (read: getting screwed); you have a perfect opportunity for incremental revenue. Why not charge a premium to offer convenience and a customer-focused experience? Offer delivery of vehicle to the customer.  For the DMV, offer after-hours service with premier pricing.  Key to success is to position this approach as premier-level service vs. fee gouging. Could be tricky, but well worth the additional income … again, just make sure you know your consumer and how to create what they perceive as premium value.

 

Need some insight and ideas … give me a shout.

Throwback Thursday: Rescue Dawn

This is my first installment of Throwback Thursday.  I’ll be using this space to highlight some past(throwback) work.

I had the pleasure of working with 20^th Century Fox to promote the DVD release of Rescue Dawn.  This is one of the many projects, which continues to increase our digital marketing capabilities. 

Challenge: Generate awareness for Rescue Dawn DVD release.

Ideas(Implemented): (1) Brokered relationships with military-themed and Christian Bale fan sites to increase awareness of Rescue Dawn DVD release. (2) Utilized Rescue Dawn DVDs as currency to secure relevant mentions and placements in discussion forums, blogs, and social networks.  

Impact: Over 1.4 million DVD units sold.  We don’t take all the credit, but we were a major Reason for this success.