the marketing blend

A few years ago, I went to hear Sasha play at Fabric in London.

It was awe-inspiring.

I’d always admired his DJ sets – the way he managed to move so seamlessly from one track to the next.

But this performance was different.

Until that night, I’d been used to hearing him select a series of great tunes and play them one after the other, with no obvious disharmony or rhythmic mismatch.

But from the very start of that set, it was clear something was different.

I couldn’t tell where one tune began and where it ended.

The mood and power of the set still built and progressed, but the music all blurred together into a dreamy sequence of beats and melodies.

He was playing small bits of different tracks wherever and whenever he chose.

He looped small sections of a record – sometimes just single bars – for minutes at a time, tweaking effects and EQ to build the emotion until the crowd were in a trance.

He was chopping up tunes to create new versions and even new music, right there in the DJ booth.

And suddenly, in one night, my view of DJing changed.

Progressive obsessive

It was like Sasha had put his tunes into a blender, rather than merely putting slices of them next to each other on a plate.

I subsequently discovered that he’d achieved this in large part thanks to new technology – namely Ableton Live and a bespoke Maven controller – but that didn’t change the impact of that set (indeed, I became an instant convert to Ableton, and use it to create my own studio sets)

Sasha had totally changed the game.

DJing was no longer just about beatmatching, or harmonic mixing, or even playing tunes no-one else had.

It was about using everything at the DJ’s disposal to create the perfect musical journey for that club and that crowd.

The records, the turntables, the mixer, the effects… they all became mere means to the single, coherent end of delivering the ultimate club experience.

I think we’re about to witness the same kind of shift in marketing.

Marketers as DJs

Until recently, marketers have been been perfecting the existing paradigm.

We’ve incrementally improved our approach to the 4Ps.

And we’re pretty good at it now: our beatmatching is pretty tight, we know which melodic keys work with which others, and we can navigate the mixer with our eyes closed.

We’ve pretty much mastered the marketing mix, and differentiation now comes down to who has access to the latest or rarest tunes.

But what if we took Sasha’s approach and applied it to marketing?

What if we saw all those marketing Ps as fluid ingredients that we can blend together to create a truly seamless journey?

The Marketing Blend

We’ve recognised the potential of integrated communications for some years now, but few (big) brands succeed in integrating the full spectrum of their marketing activities.

Most still approach each element of the mix separately; aspects such as distribution, pricing, R&D, PR, and sales are often handled by different teams with different agendas, egos, and KPIs.

But maybe that’s missing the magic.

Rather than merely integrating communications across channels, brands could integrate everything they do – the full marketing mix – into a single, holistic approach.

Examples

We’ve seen a few examples of this already.

The Domino’s example from last year was an interesting communication and distribution.

Similarly, this initiative from Gap uses a sales channel to communicate a clearly defined message and inspire immediate action at the same time.

Brands like Ben & Jerry’s, Innocent Smoothies and Nike all seem like they’re blending multiple elements of the mix too.

However, I’m not sure any of them has achieved that totally seamless mix.

Yet.

But it’s only a matter of time…

the fifth dimension

Various forms of technology that once existed solely on the desktop are becoming increasingly interwoven into the broader spectrum of everyday activities.

They bring extra layers of detail, interaction, or entertainment to analogue experiences, allowing technology to come to us, instead of the other way round.

For example, Google Maps mashups and Layar add a richness of detail to physical locations.

Meanwhile, apps like foursquare and Gowalla are taking social network into real-world interactions.

But the possibilities of augmented reality (AR) are the ones I find most exciting.

If we look beyond the novelty that characterised much early AR, and explore instead the ways in which normal, everyday objects can become interfaces that trigger a ‘fifth dimension’ of reality, things get very interesting.

Suddenly, everything can become so much more than it already is.

This has massive potential for every brand in every category around the world – from the simplest to the most complex.

Ever the pioneer, Adidas has been exploring what that might mean for its shoes.

Not content to limit itself to producing hugely popular fashion items, the brand has recognised that its products can deliver even more value through this fifth dimension:

Watch out for an explosion of activity like this from other brands in the coming months.

Many thanks again to Alexander and the whole Cultural Fuel team for sharing yet another gem.

shared happiness

Tiago has been sharing so much great stuff recently, I’m in danger of duplicating his Cultural Fuel stream here, but this clip was too good to miss.

It’s such a simple concept: take the brand benefit, exaggerate it, and bring that exaggeration to life.

The reach of the activity itself probably wasn’t huge, but the video has achieved over 400,000 views on YouTube in its first week.

Perhaps it’s true: reality is more engaging.

I wonder if the same concept would have achieved as many views if it had been produced as a traditional TVC.

Lovely stuff from the guys at W+K.

smoke signals

Success isn’t about channels – it’s about connections.

So don’t limit yourself to ‘media’.

Success is much more about where, when, and how to engage.

Thanks to Tiago over at Cultural Fuel for sharing the clip

rethinking success

Happy New Year!

Did you start 2010 with a fresh set of objectives?

Grow profits; drive revenues; increase the margin.

Do you have any objectives that aren’t about making more money than you made in 2009?

Defining success

When it comes to measuring success, we often make comparisons to the past.

Companies look at how profits changed relative to previous periods.

Individuals might compare their earnings to previous roles.

Even charities look at the changes in donations received.

By most definitions, we haven’t succeeded unless we’ve grown, and in business, this invariably relates to financial growth.

Indeed, financial growth is often a business’s primary objective, to the extent that any gains are reinvested to generate yet more growth in the next period.

But why are we so obsessed with growth?

Growth vs. greed

In nature, the drive to grow is instinctive: we need to reach a certain size to survive and procreate.

However, unrestrained growth brings dangerous consequences: excess leads to obesity, slowing us down and compromising our health.

In the good times, this doesn’t matter too much, because there’s enough to go round.

But, eventually, excess becomes unsustainable: over-consumption results in scarcity of resources and intense competition.

When this happens, the obese are most at risk: their size makes it harder for them to secure food and escape predators.

They face a stark choice: redress the balance, or die.

Survival of the fittest

This pattern is obvious in nature, but we often miss the parallel in business.

However, just like animals, brands can’t continue to grow indefinitely: eventually, they either reach a healthy equilibrium, or they exhaust all the available resources and die.

Faced with that choice, the decision seems simple.

Sometimes, though, scarcity occurs quite suddenly.

Just a few years ago, newspapers were enjoying those ‘good times’.

Then, out of nowhere, a fitter species appeared and gobbled up all their resources.

Sadly, the newspapers were too obese – too complacent, too cumbersome, too bloated – to react in time.

Now they’re starving, on the brink of extinction.

Their demise holds a lesson for us all.

Fit for purpose

The trick to avoiding newspapers’ fate is stay fit and healthy.

One way to do this is to avoid excessive growth.

So, if your objectives for year ahead are based purely on growth, challenge them.

What’s all that growth for?

And what will you do when you achieve it?

All too often, the euphoria of achieving a growth goal quickly gives way to a desire to outdo yourself again.

It becomes a never-ending cycle; increasing the number becomes the only thing that matters.

But there’s got to be more to life than numbers.

We need to remember the real benefits that growth was supposed to bring.

What would success look like if you couldn’t grow anymore?

Better, not bigger

Most New Year’s resolutions relate to health and fitness.

Perhaps it’s time we set similar business resolutions too.

I’d like to start the year with a challenge:

Why not set one objective for 2010 that has nothing to do with financial growth?

How about play rises instead of pay rises? More time to do the things that feed your souls, not just your bank balances (think Google’s 20%).

Perhaps you could initiate pro bono work for issues you really care about? Rather than waiting for someone to ask you, just get on and do it.

Or, why not take on an intern and actually help them to learn useful skills? With a bit of guidance, enthusiastic graduates can do much more than just make coffee and photocopies, and you’ll feel rewarded too.

Whatever you decide, one thing will make achieving your goal easier:

Stop measuring your success by comparing yourself to others.

Innovate, don’t imitate.

It’s much easier to succeed when you write your own rules.

Good luck, and best wishes for a happy and fulfilling 2010!

creative learning

An entertaining look at why we need to put more emphasis on creativity in education:

Thanks to newhighscore for sharing the clip, and to phil for bringing it to my attention.

comparing apples with apples

A few weeks back, Seth shared this interesting anecdote on his blog:

“At the farmer’s market the other day, three perfect strangers
asked me what sort of apple to buy…
People are now afraid of apples: afraid of buying the wrong kind;
of making a purchasing mistake or some sort of pie mistake.”

From a certain perspective, I understand what he’s saying: it’s widely accepted that too much choice can actually lead to ‘decision-making paralysis’.

However, there’s an alternative interpretation of Seth’s apple episode that’s equally intriguing:

Maybe the questions weren’t asked in fear.

Perhaps those three strangers struck up conversation because they were excited about this abundance of choice.

In recent years, the apples available in Western supermarkets have become commoditised: the same few varieties, in the same standard sizes, with the same bland taste.

But people who visit farmers markets tend to care deeply about their food: they’re passionate about taste, colour, texture, perfume, and about the gastronomic experience in general.

So, when they’re presented with an exciting array of new apple varieties, it seems natural that they’d want to share their excitement.

Here are some alternative reasons why people might have asked Seth a question:

Questions quickly establish rapport by engaging people in active conversation. They give the respondent a chance to share their own excitement without feeling challenged or inferior, fostering a freer exchange of information and opinions.

Each farmers’ market offers different foods and different varieties, but a good proportion of visitors tend to be regulars. Faced with a wide variety of unknown apples at a new farmers’ market, I’d seek the opinion of those around me too, because foodies love to share their passion and recommend favourites to others. Indeed, this sharing and conversation is a central part of the market experience.

The broader appeal

There’s a more general truth here that offers marketers a fascinating opportunity.

When people are passionate about something, their passion often spills over: they like to share their excitement with other people, and their own enthusiasm often extends into adjacent areas of interest.

For example, a love of wine can easily extend into passion for Scotch and Cognac.

And while it’s unlikely that we’ll ever succeed in arousing everyone’s passion for our category, those who do get passionately involved are worth a lot more.

This is because people love to indulge their passions: wine enthusiasts tend to spend a lot more on wine than ‘average’ drinkers, and they often buy a range of expensive accessories too.

Putting it in context

The trick is to understand where your brand sits in people’s world, and how it relates to their passions.

Part of this involves understanding that people can get passionate about things that we’d never expect, and as a result, even seemingly mundane brands can become highly relevant to their lives.

For example, I know many people who are passionate about their homes, and who spend hours researching new ways to make their home cleaner and fresher.

Although these people are unlikely to get excited about bleach as a category, a household cleaning brand that extends its relevance beyond simple product attributes to offer advice and solutions for the houseproud is much more likely to engage them.

As we’ve seen before, the task isn’t necessarily to become their favourite brand ever; rather, it’s about demonstrating how good your brand is in relation to everything else it competes with.

This is more about two-way engagement rather than advertising: finding more immesrsive ways to share things with them, and more importantly, helping them to share things with us and their peers.

UPDATE: Just noticed this wonderful post by Spike over at Brains on Fire – some very wise words that add an important focus to the words above:

“…many [people] are still treating people’s passion as something a company can find and then own. Find? Yes. Own? Never. Passion is not a sales transaction.

Passion is sacred. Passion is a part of a person’s life. Their soul. To find it, you have to clear away everything else. You won’t find it in a focus group that is created to talk about you and your product. You won’t find it when you do all the talking. And you won’t find it wd a tree until it falls for it.

Passion is not a commodity. It is a gift. Treat it like one.”

Go read the rest here.

multisourcing

Crowdsourcing continues to be one of the hottest topics in marketing today, but it receives its fair share of skepticism too.

That skepticism may have merit: to some, crowdsourcing seems like a simple case of repackaged logic.

After all, the marketing concept asserts that the best way to build a successful business is to offer people what they really want; because crowd-sourcing helps us understand what people actually want, it seems like a key ingredient of any successful business.

However, there’s a key difference between crowdsourcing and our previous, research-based approach: collaborative engagement.

The more we involve people in every aspect of developing our products, the greater their subsequent level of engagement, and the deeper their relationship with our brand.

This physical contribution and emotional engagement means people have a vested interest in your brand’s success.

In their minds, it becomes their brand too.

The death of brands?

So if people could always join forces to solve their problems, would brands still exist?

In its ideal form, crowdsourcing would mean we would never need to choose between different brands again, because our co-developed solutions would always satisfy our specific needs.

That Utopian vision seems appealing on many fronts.

There’s just one problem.

Democratic stagnation

The main challenge with crowdsourcing is that it rarely delivers radical innovation.

Indeed, two things lead me to believe that crowdsourcing could actually slow our rate of progress.

Firstly, everyday people tend to imagine the future in relation to their present.

Henry Ford summed this up beautifully:

“If I had asked people what they wanted,
they would have said faster horses.”

Secondly, the democratic process tends to dilute innovations down to a lowest common denominator.

Most people are fearful of change, and reject things that are far removed from their current sphere of familiarity.

As a result, involving too many people in the process risks death by democracy.

Right tool, right job

So, rather than using crowdsourcing to solve all our business problems, we might be better to use it for a more specific purpose.

Here’s my theory.

When we know what people want, we’re better placed to offer it to them in the most effective and efficient ways.

However, if we’re to succeed in adding value, rather than merely delivering it, we need to go one step further.

We need to show people what they could have; not just a better version of what they already know.

As a consequence, I think crowdsourcing’s real potential lies in helping us to identify the core benefits that people seek.

In other words, we need to get people to explain their ideal end, rather than asking them to design a shinier version of the means they currently use to get there.

It’s then our job to create truly innovative solutions that deliver those benefits better than anyone else.

Thanks to Neil for the inspiration.

escaping the spiral

One of the most enduring themes of the past decade has been the decline of traditional industry models.

Record companies and newspapers have been the biggest losers, yet demand for the ‘products’ these companies deliver has risen dramatically during the same period.

The two trends seem to be in conflict: how can something experiencing increased demand simultaneously lose its value?

Has classical economic theory come totally undone?

Let’s take a closer look.

All-consuming

As recently as the 1990s, a music collection of  100 albums (about 1,500 songs) was something to be admired, taking pride of place across a whole wall of the living room.

Today, even cash-strapped teenagers carry that much music in their pocket everywhere they go.

But still we crave more.

Numerous new services attempt to satisfy our insatiable appetite for a fresh and varied playlist – Pandora and Spotify are obvious examples.

Yet almost none of these seem to be making much money.

It’s the same story for news.

As technology has advanced, instantaneous, ubiquitous news updates have become the norm, and we’ve become so used to these ‘info fixes’ that we even experience symptoms of withdrawal if they’re taken away.

Demand for news hasn’t just grown; it’s exploded.

So why are news agencies disappearing at an inversely proportionate rate?

What’s going on?

From the outside, the reason appears very simple: these industries have become too caught up in what they think people are buying; not what those people actually want.

The music industry is still obsessed with selling albums, because that’s been their core offering for decades.

Of course, at the time of their inception, albums were a highly efficient (and profitable) distribution medium.

The same goes for newspapers.

But, as Dave Trott points out, people don’t buy the media.

They buy the content that those media carry.

And if they can find that content more efficiently (and cheaper) elsewhere…

A false equilibrium?

Despite initial appearances to the contrary, the trend of rising demand and falling profit in these media-based industries is actually in keeping with classical economic theory.

The model suggests that people will tend towards the most efficient satisfaction of their needs: that they try to maximise the benefits they receive, while simultaneously minimising the associated cost (in terms of money, time, effort, etc.)

As Adam Smith posited in 1776,

“…what every thing really costs… is the toil and trouble of acquiring it.”

He went on to assert,

“What every thing is really worth to the man who has acquired it… is the toil and trouble which it can save to himself.”

Let’s look at those two statements in context:

1. From the consumer’s perspective, the cost of acquiring music and news content is not a pure price consideration: factors such as the effort needed to acquire and consume the product, as well as opportunity cost, are equally important;
2. The worth, or value, these products deliver is hard to measure, because the benefits they deliver are usually intangible (except where unique access to news provides a financial benefit to the consumer).

The key issue in these industries is that people suddenly have access to identical value at a much lower cost.

So what changed?

What are people buying?

People don’t buy media; they pay for access to content.

But if that content is available for free, why would they choose to pay for it?

Free access to music has been around for years via radio; the main issue has been a lack of listener control in the playlist.

The only legal alternative has been to pay for the privilege to listen to what you want, where you want, when you want, by buying albums and singles.

But given the costs involved in this alternative, another popular solution has been to acquire an illegal copy.

Piracy is nothing new; it has affected the music business since it began.

However, until recently, the quality of an ‘original’ was always noticeably better than that of a cost-effective copy.

The advent of digital formats like MP3 changed all that. Today, people can quickly and easily create a copy that is identical to that which they would get if they bought it from the original source.

The problem for the record companies is that there is literally no difference in the quality of pirated content.

Furthermore, the industry’s continued protectionist approach to ’selling’ music means that it’s often actually easier to find pirated copies than it is to find the original*.

Returning Adam Smith’s concept of ‘real cost’, this means that people have fewer and fewer reasons to pay the cost associated with original content; the only remaining motivator is conscientiousness.

Meanwhile, the situation with news is even starker: the industry itself has trained us to believe that news should be free, through ad-supported models such as CNN or freesheets.

When people have been so used to legal access to free news content, it’s easy to understand their current reluctance to move to services requiring payment – particularly when services like the BBC continue to offer free access.

Bene-fit for purpose

The only sustainable hope for these industries is to rethink what they’re actually offering.

The process is actually very simple:

What do people really want?

Where is it most relevant to them?

How can we deliver it to them and make a profit?

The critical step is to move away from thinking about how to improve the existing product, and to focus instead on identifying and understanding the benefits people seek.

New news

Why do people crave news?

It might be for a variety of reasons:

It provides information that helps us make decisions about our own lives (Will it rain tomorrow? Is there a crazed gunman on the run downtown?);

It offers a common topic we can talk about with others;

It shares opinion and that stimulates our minds and provokes further thought of our own;

It entertains and stirs emotion;

Perversely, it helps us put our lives in perspective, reminding us that “there is always someone worse off than yourself” (this is the only reason I can find for our continued obsession with ‘bad’ news).

However, none of these things belong to conventional news channels.

Indeed, most of those channels exist because they provide an audience for advertisers, and, arguably, they’ve never been truly focused on the audiences themselves.

Where would these benefits be most relevant?

What could we do to deliver it to them then… at a profit?

Change the tune

The task with music is a little more difficult, because it’s intangible and transient.

What exactly is music, and why do we love it so much?

What benefit does it provide?

It’s a question that has many different answers, because music means different things to different people in different contexts:

Sometimes it’s an all-consuming experience, like a concert;

Often, it’s something we use to define our personalities;

Sometimes it’s a means of escapism (like ‘cocooning’ on a crowded subway);

Sometimes it provides a reassuring background distraction;

Like fashion, it’s something that’s constantly evolving and fresh, providing us with something to talk about, and offering us things to look forward to.

I’m sure you can think of many more benefits (why not share them in the comments?).

Deliverance

It’s safe to assume that people’s desire for new music and fresh news will continue to grow.

As such, musicians and journalists are not – contrary to media scaremongering – on the verge of extinction.

The only thing that’s likely to disappear is the existing media model.

So how will we access these benefits in the future?

Much as I hate to inflate an already over-hyped solution, I believe the answer is ’something social’.

Services where people already go to seek similar benefits – to talk to people, to find out what’s new in their world, to seek emotional stimulation – are the most obvious places for them to seek music and news benefits too.

I believe we’ll see an increasing number of social services combine these offers in their bid to become our ‘one-stop shops’ for all such content.

I wouldn’t be surprised if they didn’t include TV and movies too.

Services such as Facebook have a great opportunity to became the de facto source for news and new music, although I suspect it will be a new, as-yet unheard of successor, who’ll bring about this next step in the web’s evolution.

So what’s new?

I suspect that, although you’ve nodded your head a few times during this post, you don’t feel there’s anything revolutionary in its content.

But that’s possibly because, in this simple format, it all seems obvious.

And I think that’s the problem: perhaps it’s so obvious, we’ve been missing the forest for the trees.

But, the good news is, the solution is very simple.

If we focus on the benefits that people seek – the real value that they perceive in the things they consume – then we have a chance of delivering it to them at a profit.

Sadly for some, it may be too late to save the mass media model, but the rest of us have a real opportunity to learn from their mistakes.

Thanks to Willsh for setting this thought process off with these lovely posts: one, two.

good vs evil

Most people believe that good will triumph over evil.

This optimism is a core tenet of humanity.

Indeed, it’s so ingrained that we often assume that ‘good’ and ‘evil’ will be easy to tell apart – like night and day.

Sometimes this is the case; some crimes can never be justified, while some acts are universally welcomed.

However, much of our world view dictates ‘good’ from ‘evil’ on a purely subjective basis.

For example, religion will likely always remain a matter of individual opinion.

The same is true of culture.

There’s little doubt that globalisation has led to a degree of homogenisation of attitudes and behaviour, and we’ve lost much cultural variety along the way.

But this is nothing new; the Greeks and the Romans are perfect evidence that even the strongest and most influential ‘civilisations’ rise and fall.

This is because culture and ideas are subject to the same principles of evolution as biological species: only the fittest survive.

And as with biology, the key to continued survival is genetic diversity.

This means we must draw from as many influences as possible, but at the same time, ensure that we do not distill everything into a single, homogeneous result.

I was reminded of this while watching a fantastic TED talk from Dan Dennett (below).

He approaches the topic of cultural propagation from a philosophical angle, but there’s a clear relevance to advertising and planning in there too.

For me, the abiding lesson is that our individual cutural and moral perspectives are never ‘good’ or ‘evil’.

They’re simply subjective perspectives.