In June, I blogged about Fuqua professors Rick Larrick and Jack Soll and their push to improve fuel efficiency and consumer behavior by simply changing the measurement from MPG to GPM. Today, Duke Research Advantage blogged that this work was featured in the New York Times Magazine’s “Year in Ideas” issue. They’ve also launched a new GPM calculator to find your current GPM, compare cars, or see the GPM for all 2009 cars. More information about this research, including an interactive fuel-efficiency quiz and a video of Larrick and Soll discussing their work is available at mpgillusion.com.
Posted in business, eco-smart, marketing, sustainability
Tagged blog, business, duke, duke research advantage, eco-smart, fuel efficiency, fuqua, fuqua school of business, gallons per mile, gpm, green, green business, innovation, jack soll, larrick, measurement, psychology, rick larrick, soll, sustainability
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Found this visualization of some of the metrics that you can use to understand your purchase funnel and where in that funnel your prospects lie. Particularly liked the focus on consideration and favorability, in addition to awareness and purchase. Full article here.
Michael Jordan seems to me to be one of the forerunners in terms of thinking of himself as a brand and then licensing that brand and actively managing it. He went beyond the traditional endorsement, and even seemed to take an active role in brand management across various endorsements and companies owned (e.g. when his gambling became a potential PR issue, he worked with Nike to market the “I am not a role model, I’m a professional athlete” message). I may be completely off base with the above, but the point is that personal branding is now rather common, and I found HBS professor John Deighton’s study of author James Patterson to be a fascinating case study:
While he doesn’t enjoy the same name recognition, Patterson regularly outsells other “brand-name authors” such as Stephen King and Tom Clancy by simply publishing more books, averaging three titles each year with the occasional assistance of a coauthor…Whatever the genre (he has also published romance novels, science fiction, and children’s books), readers expect a “good read” from the James Patterson brand.
Struggling for years with a decreasing market share and tumbling stock price, Nortel is going negative with a campaign against Cisco. This Wall Street Journal article details their PR blitz utilizing bloggers, YouTube, anti-Cisco websites, and trade show demonstrations. The message? Use Nortel to avoid “the Cisco energy tax.”
Nortel is countering with the argument that Cisco’s technology, as successful as it has been in the marketplace, is an energy hog. In its ads, Nortel claims that Cisco’s data networks “are costing you 100% too much.” At trade shows, Nortel staff attach wattage meters to comparable Nortel and Cisco gear in an effort to show that Nortel’s gear is much more energy-efficient. The company posted a film of the demo on YouTube.
Energy prices are finally rising to a point where being energy-efficient is not just something to make a consumer feel good, but something that affects purchasing decisions by price-sensitive customers. That Nortel is taking this message to large corporate customers is evidence that at least some people in corporate purchasing departments are concerned with cutting costs by conserving energy.
In a previous post, I talked about the strategy of going negative with marketing, and why it’s rarely done. This is one of those cases where a very small company with much to gain and little to lose takes on the market leader with a campaign aimed at gaining some awareness and hoping to steal just a bit of the leader’s market share. Or, as pointed out in the WSJ article, survive and keep their current customers as their competition makes persuasive presentations to switch. It’s not unusual for a smaller company to paint the larger one as evil, and it’s not that unusual to use an environmental rationale to make that argument. What might be unusual is that with the price of energy rising so quickly, customers might listen.
And frankly, Cisco’s response that “there are no industry standards to measure “green”; and Cisco’s gear meets the environmental requirements of the product-testing company Miercom” falls a bit flat with me. Not a counter-argument about green manufacturing or building initiatives, but a lack of industry standards? No pledge for improved performance or details of why the additional energy usage creates a superior product? This lack of rebuttal leaves me thinking Cisco either isn’t taking Nortel seriously or isn’t taking energy efficiency seriously - either case may not be a big mistake now, but could be a huge mistake in the future.
Posted in business, marketing
Tagged business, cisco, eco-smart, efficiency, energy, energy efficiency, environment, environmental, green, marketing, negative advertising, nortel, power, sustainability, sustainable, wall street journal, wsj
I generally tend to keep politics out of this blog, but I just read an interesting piece entitled “How Negative Advertising Works (and When It Doesn’t)” by John Quelch was included in this week’s issue of HBS Working Knowledge. Since my comment on the article will likely be edited shortened (brevity is not my forte), I’m including it here with a couple of links to materials mentioned in my comment (because I can’t pass up a chance to plug my favorite author):
I think that the key here is this :
“Unlike politicians, companies hardly ever run negative ads. Pepsi ads don’t tear down Coke; they build the brand image of Pepsi. Why? Because a tit-for-tat war of words would turn off consumers of both brands. And sales growth, not just market share, is what puts money in shareholders’ pockets.”
David Foster Wallace wrote an essay included in “Consider the Lobster” that is about to be reissued as a book called “McCain’s Promise” in which he talked at length about the impetus for political incumbents to go negative – going negative effectively turns off voters, shrinking the potential voter pool and favoring the candidate with a strong brand and deep coffers. Since new voters generally support the ‘outsider’ candidate, going negative usually starts with the incumbent, putting the challenger in a lose/lose (look weak by not fighting back, or fight back and open yourself up to charges of having gone negative yourself).
Thus generally creating the ‘better of two evils’ situation in which people choose not to vote as a form of protest. Which generally favors the incumbent, and allows even more money and effort to be spent on getting the party faithful out to the polls, because the undecided have been neutralized/disenfranchised/exhausted by the negative tedium of the campaign. Which explains why the far right and far left hold so much sway in the political process despite most Americans self-identifying as moderate – most Americans also don’t vote, and those that can be counted on to vote are at the poles (pun half-intended).
As Professor Quelch notes, Coke and Pepsi would prefer to grow the market, not shrink it in order to destroy competitors and gain market share. Even the Pepsi Challenge must have been somewhat welcomed by Coke, as its underlying message was “drink cola and find the one you like.”
One final sidenote – the Democratic primary this year is particularly interesting, as the ‘outsider’ candidate with less name/brand recognition has become the candidate with much deeper pockets.
Posted in marketing
Tagged coke, consider the lobster, david foster wallace, democratic, dfw, election, going negative, john mccain, mccain, mccain's promise, negative, negative advertising, pepsi challenge, politics, up simba