Jan 17, 2012 | Branding, Communication, Marketing
Marketers have long understand that word of mouth advertising is the most powerful form of advertising, now enhanced by social media tools, evolving into the term “word of mouse” to describe the phenomenon.
This leads to a further distinction: media that is paid for, Vs media that is earned.
Consumers understand that paid media has a commercial purpose for the advertiser, they have a vested interest in being persuasive, and not necessarily being long on facts. By contrast, the notion of “earned media” content that is spread because it has value, approaches the value of word of mouth endorsement.
The fragmentation of media options has made life much more interesting for marketers, for those with a bit of creativity and curiosity, it is a smorgasbord, for most, just a pain in the arse and an opportunity to game the unwary.
Jan 15, 2012 | Change, Leadership, Personal Rant
The wall I refer to is the Australian processed food industry. It is being torn down by the high $A, the strategies of the two retail gorillas who are stocking shelves with housebrands, global sourcing of product, and lack of will by Australian governments and institutions of various types that inhabit the fringes of the industry.
On January 6, Heinz closed its tomato sauce plant in Victoria, transferring manufacturing to NZ. This comes on top of the Heinz closure of the beetroot plant in Brisbane, and further closures in Wagga, and a very long list of other closures by many local and multinational businesses that have occurred over the last 10 years.
Not only are we becoming just a quarry for the world, flog our minerals, and import the manufactured product, the same thing is happening to the food industry. Export the farm commodities while we still can, at commodity prices, and import the processed product.
According to the Australian Food & Grocery Council State of the Nation 2011 report, Australia is now a net importer of processed food. Can you believe that?
What happens to our rural communities, manufacturing capabilities, and innovation DNA? Without manufacturing to work with, innovation slows, and a vicious cycle of price driven commoditisation takes hold.
There is a bit of bleating going on like this post, but little useful is being done.
So, here is a short list:
- Assemble and make available a detailed database of the food industry. It is astonishing that one does not exist. Instead, there are many partial lists assembled by various industry bodies, service providers and government agencies that together would offer some real statistics to enable decisions to be based on facts, not assertions and vested interests. The first step in improvement is to clearly understand what you currently have.
- Encourage, indeed demand, a collaboration between all the various Government, industry, and research bodies that serve the industry, and reduce the wasted resources by focussing on a few priorities that are bigger than the local, and special interest issues that currently dominate. We can do far better, and spend far less with a bit of sensible strategic management of collective resources. The Federal Government is in a position to make this demand, as ultimately, they control the flow of funding. It should grow some “cohunes” and exercise some leadership for a change.
- Direct the Productivity Commission to produce a detailed industry profile to quantify the current situation, and provide a base for filling the gaps, and encouraging growth, capability development, and ultimately commercial sustainability.
- Be prepared to support sensible innovation, capability, and industry building initiatives, ones with a commercial justification, not just a political one. For example:
- Revive the Regional Food processing grant program, but have it run by commercial people with a detailed industry background, and flexible guidelines, not Canberra bound bureaucrats who measure activity not outcomes but by box-ticking.
- Reinstate trade training at regional TAFE institutions in critical capabilities, fitters, welders, electrical trades, boilermaking, and mechanical engineering.
- Rebuild sagging infrastructure, particularly rail and road/rail hubs. Road transport costs are strangling many regional manufacturing centres after the widespread and almost indiscriminate closure of regional rail lines.
- Crash through all the stupid State/Federal demarcation and duplication that stymies all of the above, and have a national approach, after all, it is a national challenge, not a state one.
Send me your policy suggestions, maybe, just maybe we can get somebody to listen.
Jan 13, 2012 | Personal Rant, Social Media
Surely in this day and age of total and transparent communication, putting out a contrarian view, and having no-one respond is the greatest insult we can make.
Putting out a view that is deliberately contrarian takes guts, as you will attract criticism, sometimes unreasonable and even personal, so you need a thick skin, and to be in an environment where there are genuinely no repercussions to the venting of the view.
However, putting out a view you know runs against the conventional wisdom, and being ignored…… what an insult!
Jan 11, 2012 | Change, Customers, Innovation, Marketing, Strategy
Kodak used to “own” photography, having a massive share of the film market, end to end.
No more, Kodak is virtually broke, subject to continuous take-over speculation.
The really interesting thing is that one of the assets that makes Kodak valuable to an aggressor is its bank of patents that relate to the technology that drives the product innovation in the digital space.
The failure for Kodak is therefore not in being unable to develop the science, for individuals in the labs to see a different path, and to imagine the next iteration but to do something about it in the marketplace, disrupt themselves before somebody else does it.
Coming in parallel, but I have not seen it really considered before is the fundamental change in the way people think about photography, a complete disruption in behavior that has gone unnoticed.
Photographs used to be used to preserve memories. No more, at least, not much.
They are now used as a foundation piece of the individual communication process.
What are we doing now, who we are seeing, where we are, an expression of ourselves are now the motivations to take a photo on whatever device happens to be in our hand at the time. Creating a record for our kids is a useful by-product of these activities, although I am not sure how the current 20 year old will react to their children in 20 years seeing photos of them pissed at a party 20 years before, so perhaps creating some records will be problematic in the long term.
The photographic market has been totally disrupted, not just by the development of digital technology, but in the way consumers behave. For a marketer, being able to build a corporate mind-set that enables the science, and at the same time embraces the ambiguity and uncertainty of consumer behavior changes is the challenge that keeps life interesting.
Jan 9, 2012 | Branding, Marketing, Strategy
As a marketer, I have always sought to differentiate my products from those of my competitors in a meaningful way, to add value to the experience of use.
In a hyper-connected, multi-branded world, where most people don’t care too much despite the billions spend by marketers trying to make them care, you have to take the concept one step further.
A brand that just looks, feels, and performs just a bit better than the others is really just another brand, but one that somehow makes a difference to peoples lives, that is one that encourages and justifies loyalty.
Apple is the obvious example, Steve Jobs’ obsessive perfectionism and determination to control everything about the experience, and be as he put it “at the intersection of technology and art” has delivered more than just differentiated, competitive products, they have redefined and created markets.
My mate Louis Marangon of Riverina Grove, a little food manufacturer in country NSW is a similar obsessive, to the extent that it is possible, taking all his ingredients from local producers, the fresh, local, and transparent supply chain both offering both assurances to users, and keeping the money in the country. He is now the only Australian owned manufacturer of a number of products left standing.
Umair Haque says it very well here, as he often does.
