One, Two, Many Coupons

They’re everywhere these days; those ridiculously low-priced coupon deals for everything from sumptuous 3-course meals to ‘spa treatments’ in dodgy parts of Kepong.

Value-for-money seems to be the favoured business model for many businesses nowadays. But how long before offering products and services on-the-cheap eventually becomes bad for business?

Discounts Galore
Coupon deals are great for consumers; but not so for businesses...

Yes, we all like bargains. But if the bargain does not live up to the intended expectations, most of us would rather pay slightly more the next time – be it for better quality or improved service.

Even if you are satisfied with a particular coupon deal; would you return to the same outlet and pay ‘regular’ price for the same thing? Which – if I may remind you – can be up to 70% more?

Highly unlikely.

If you’re a business, and thinking of jumping onto the coupon deals bandwagon to attract customers, consider these:

  1. Is it worth cheapening your brand or business by offering high discounts just to attract one-time-only customers?
  2. You might get a high influx of customers in a short period of time. Can you or your staff handle a flood of customers and serve them properly?
  3. You don’t usually make a profit, especially if you offer a high discount. Sometimes you won’t even break even. Seems like a pointless exercise.
  4. Don’t expect prolonged advertising mileage by offering coupon deals. The people who use coupons are bargain-hunters who forget you as soon as you go back to normal price.
  5. The non-bargain hunter customers (the ones that you really want as customers) will see you as desperate for business. Not the kind of image you want to portray.

So instead of ‘selling out’ your business to coupon deal sites, why not invest in promotions that are easy to create and implement. You get the kind of customers you want, and get to sell at the price you want.

You know who to talk to 😉

Love Thy Customers, Not Screw Them!

A lot of you liked my post on how I whacked Maxis for pretending to be customer service oriented. But what’s the real issue here?

I must admit it; I was rather cheesed of with Maxis to start with. And then they go and air that stupid ad claiming they put customer service first. Of course, I sharpened my pencil and gave them a piece of my mind lah.

Maybe I was slightly rash and less eloquent in that post. And since this is a blog about marketing communications; let’s see what really went wrong with Maxis in that perspective.

Screws
Screws come in many shapes and sizes. So who's screwing you?

Here’s what my favourite branding blog – Brand Strategy Insider – had to say about Brand Arrogance.

“Consumers don’t value brands; they value the idea the brand represents to them. This idea will always be worth more than the product, or the actual bricks and mortar of the business enterprise. When marketers behave arrogantly, the value of the idea people care about is instantly diminished. And once this happens, the road to redemption is long, difficult and expensive”

Simply put, you like a brand not because the logo is red or that the product is great. Consumers actually value the personality that the brand projects more than anything else.

It makes sense because telcos offer essentially similar products and services. But what made you choose Maxis or Digi or Celcom? Think about it.

It’s like making new friends. You only click with certain types of people; as you do with brands. But once a ‘friend’ crosses you, it becomes really hard to be good friends again. There is just something intrinsic about this process that science can’t explain.

Once you screw up with a customer (especially a loyal one), you usually have to work really hard to win him over again. And most times, the defected customer will never return.

There’s a classic Direct Marketing adage that goes like this:

It’s more profitable to retain a loyal customer,
than to attract new customers

For all the advertising and promotions brands conduct to conquest new customers, why not sincerely care for existing customers instead? Those who are already customers may even advocate the brand to their friends and family for free.

And we all know nothing beats the power of word-of-mouth communication.

Clearly Maxis does not see it that way. I guess we are nothing but Ringgit signs that make their cash registers go Ka-Ching!

Babies: the Next Big Thing in Advertising

Have we advertisers finally crossed the line? Are we so blinded by conquering new markets that we are willing to stick a knife into innocence? It seems so, if the latest report on Advertising to Infants from Adweek is anything to go by.

It seems the phrase “get them young” is being held to high regard here. In the United States, brands like Disney, Audi and McDonalds have run promotional activities aimed at the very young.

Innocent Baby
C'mon! How can we try to make money from such innocence?

For example, Disney was observed to have given out free one-piece baby suites (decorated with Disney characters of course) to new mothers in hospitals in exchange for e-mail addresses.

What the hell is going on here? Or should the question be why the hell this is going on?

1. Babies or toddlers don’t distinguish between fantasy and reality. So it is a game of getting them while they’re still susceptible.
2.  Babies are able to record mental images of corporate logos and mascots; and request specific brands as soon as they are able to speak.
3. Parents are also easily influenced by their children’s brand preference. If you had a screaming kid wanting to go to McDonalds, would you take him to Burger King instead?
4. An American child, upon turning 3, can recognize an average of 100 logos. Brands are fighting to be in this list early on
5. Technology is being used to pacify babies: think smartphones,  iPads and even the humble TV. Brands are ever-eager to develop branded, baby-friendly apps and TV programmes.

It’s sad that infants’ susceptible nature are being manipulated and taken advantage of just for the purpose of increasing market share.

It’s sadder that kids these days are growing in front of LCD screens rather than their mums and dads.

And the saddest of all is the fact that brands are taking advantage of such an unfortunate development.

I know that this is only happening in the US, but who’s to say that we are far behind, especially with the availability of channels like Baby TV.

How long do you think it will be before marketers in Malaysia realize they can program babies into liking their products?

I shudder at this thought.

Don’t Over!

I know bull crap when I see one, especially when it comes in the form of advertising. And even more so when it comes from a brand that treated me like crap for being their customer for 12 years.

Over-promising has become the bane of the ad industry. But it’s not something new, it has been going on for ages; possibly even when the first line of copy was written or when the first TVC was aired.

The worst part is that we consumers have come accustomed to over-the-top or exaggerated claims. A case in point…

McD Reality vs Truth
The truth ain't so tasty...

Another one, because this is fun…

Burget Not King
Burger clown?

So when I saw the new Maxis TV commercial that aired recently, I almost choked on my own saliva. For such a smug, pompous and arrogant brand, this ad is totally not reflective of their actual personality.

If Maxis had really “put customers first” they need not spend millions creating and airing this ad. Their customers will already know and appreciate their customer service efforts. It is because they actually take customers for granted is why such an ad with a ludicrous claim is needed.

Yes Maxis, I have not forgotten how you gave me the middle finger after being loyal to you for 12 years. And this is not the last you will hear from me either. Just keep doing stupid ads.

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Underdogs Rock!

It’s not always about being the biggest, strongest, longest, smartest, fastest or other chest-thumping claims. Some brands – especially start ups – can and should take the humble route in their communications.

Everyone loves an underdog:

  • Rocky Balboa: an unknown prize fighter who took on the champion
  • Frodo Baggins: the least expected carrier of the One, precious ring
  • Jake Sully: the wheelchair-bound savior of the Na’vi alien race in Avatar

Or in Malaysian brand terms:

  • Perodua: introduced the diminutive Kancil and is now the No.1 automaker
  • Ramly Burger: started from a mobile kiosk and now a household name
  • MarryBrown: took on the fast food giants and now has over 200 outlets regionally

The Perodua Kancil
The pint-size, often ridiculed Kancil; paved the way for Perodua to become the nation's top automaker.

An underdog’s tone and manner is always relevant and relatable because each and every one of us have been dismissed as not worth it (or underdogged) in the past. And we always like to hear stories where the protagonist goes against the odds or does something beyond his or her means to save the day.

One good example of this is the still-classic advertising campaign for Avis Car Rental. In 1963, Avis launched a campaign declaring “We’re Only No.2, We Try Harder”. In my books, a headline can’t get any better that this: it tells the truth, it immediately promises a benefit and it puts a smile on your face.

Needless to say, the campaign knocked the then No.1 Hertz Rent-a-Car from the top spot. And even to this very day, Hertz has to live with the stigma of being one-upped by Avis. In fact, I don’t think they really recovered from the “punch” in Avis’ tagline.

However, an underdog claim not only has to tell the truth, but must also be able to act the part. You can’t be an established, top player in your business category talk about the hardships you face. It’ll be like De Beers explaining the adversities of extracting diamonds from war torn Sierra Leone. Believable? Not in a million years.

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Know Thy-Brand

Isn’t it a no-brainer to know thyself before your tell others about yourself? In the context of a product, service or brand, it’s about learning everything you need to know – from attributes to USPs and strengths to weaknesses – before even considering a marketing effort.

It really pains me to see the lack of knowledge and understanding that permeates the corridors of marketing departments. It is disheartening to come to terms knowing that marketing or brand executives do not take the effort to live and breathe their assigned portfolios. It has become so rotten, that almost everything is done to please the bosses instead of pleasing the targeted consumers.

Are SWOT analysis’ even conducted by companies these days? Maybe the fears of discovering the threats and weaknesses mix trigger a phobic reaction. There’s a serious lack of responsibility and a high tendency to make assumptions. Briefs these days do not even come with requisite information. Wait a minute… hell, there are sometimes no briefs at all.

At the very least, the absolute bare minimum, a job order (instead of a ‘brief’ since they are pretty much non-existent) must outline these points:

–      Who are we talking to? (psycho & demo)

–      What is the objective? (what’s the purpose of this communication)

–      What is so interesting about what we have to say/sell/give? (USPs)

I bet many marketing “professionals”, handling key accounts, would not be able to furnish the above without referring to their superior or Google. No doubt, there are many talented marketing and brand people out there whom I’ve had the pleasure of working with. And I must say I’ve learned tons from them.

But there are this I-Know-It-All, I’m-Better-Than-You and Do-As-I-Say bottom dwelling creatures that make me want to puke. But then again, I would not even waste my energy on throwing up for them.

Please, take the effort. Learn, ask questions and take the initiative. And don’t act smart if you don’t know what you’re doing, we notice you know?

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The Unwritten Rule of Social Media

Should social media management fall under the care of an advertising agency? You may think that since it’s all about communicating to online consumers, then it should be the responsibility of an ad agency. Or more appropriate, your friendly interactive agency. I’m not so sure about that.

Social media management essentially consists of all efforts that either initiates contact with prospects online or responds to online activities that reference your product or service. I’ve defined it rather simply because it is actually as simple as that. Anything that you do or the consumers are doing online with regards to your business must be monitored regularly by a dedicated team. Be it an internal team in your organisation or an agency that specialises in social media management, which I think is non-existent here in Malaysia.

Think about it. Let’s say you ask your existing ad agency to take care of social media management. Stuff like creating and updating Facebook/MySpace pages, publishing an informative, relevant and interesting blog and responding to comments about your product in third party blogs. This requires a concerted, calculated effort because of it’s never ending nature. As more and more consumers discover the wonders of going online, the more comments, approvals and criticisms there will be about your product or company.

And who do you think most likely be managing your company’s online presence in this ad agency of yours? Wait for it. Yes! It’s your overworked, multiple-account-handling and possibly clueless copywriter… and maybe a planner or strategist if you’re lucky. Would you really let the future of your brand’s online direction rest in the hands of one or two persons?

You may think a copywriter is suited to handle social media, true but not entirely. I’ll give you 2 reasons:

  1. Copywriters are trained to write marketing copy. Anything that smells like regular copy, especially words like “Buy”, “Free” and “Exclusive” are ignored by users. Social media is all about the influencing power of peers and not an advertising wordsmith.
  2. To make interesting blog posts and respond to comments or criticisms, the copywriter has to have an extensive knowledge of the product/service, brand and company. No, a powerpoint outlining company history, brand guidelines and product catalogue will not do. How many companies will allow a writer to be embedded with them for at least a month? Not many.

Social media is a different ballgame altogether. Relying solely on a copywriter is like asking a property lawyer handle your criminal case. While it’s possible, the risks are far to great. Your brand might just end up in the slammer.

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About Branding

Okay. I know I’ve been envisioning a world where advertising will be transparent, seamless, targeted and minus all the mumbo jumbo that we’ve become accustomed to. But to reach this level of efficiency, a product or service has to first establish itself in the market. Herein comes the matter of branding.

A quick example. When Apple launched the iPhone, it did virtually no advertising. The mere mention from Steve Jobs that Apple is launching a phone was enough to create a ripple onto the sea of consumers. A buzz was created first among newsmen and techies then all the way to college nerds and the average consumers. People formed opinions about the iPhone months before it was even officially launched. And when it did hit the stores, the demand for an iPhone was overwhelming. Even that that time, advertising was minimal.

So what does this tell us? It’s not that Apple didn’t have to money to advertise to create the desired buzz, they just let consumers do it at almost no cost. But to be able to do this, there are 2 key criteria:

  1. The product has to be revolutionary and ground-breaking. Something that consumers have not seen, heard, felt or used before. It has to be a product that taps into a relatively untapped market. In the case of the iPhone, it’s Mobile Phone Entertainment.
  2. An established brand presence; especially as a leader in your market segment. In the case of Apple, it’s The Most Innovative Tech Gadget Maker. It also helped that Apple had already launched other successful products: the iMac and iPod come to mind.

Granted, the big boys with the dough have the advantage. They can leverage on their big brand presence and seamlessly transition into an advertising future that’s becoming more and more minimalist. Let’s say Google announces it plans to launch an application that scans the world’s online documents and creates an article on any subject in a click of a button, with contributing writers compensated. You pay a fee of USD3.99 for each article churned by this application which is fact-checked, referenced and annotated.

Now Google is a big, trusted online brand and people would be happy to part with their money for a product that they know would be of quality. Now if Microsoft announced it wanted to launch a similar product, well let’s just say there could be a couple of issues. Remember Windows ME anyone? Here’s while the product is revolutionary, the brand that is advocating it may have a problem convincing consumers due to past functionality problems. For the record, I would just like to say here that I have nothing against Microsoft.

So what can up and coming brands that do not have the presence do? For them, the product or service becomes critical. They must get it spot on. It has to be of real use to the consumers. It must create a new market or venture into an underserved segment. In short you have to be the first in your brand category, a pioneer. No one else must have what you intend to offer, even differing USPs won’t work; it has to be a brand new product or service.

Here are some success snippets as examples:

Apple, a now revered tech company, created the iPod, a portable, intuitive digital music player.

Nescafe, the world’s largest selling coffee, was the first instant coffee.

Old Town Coffee, now a successful franchise, was the first upmarket “Kopitiam”

Perodua, now the No.1 local car brand, was the first to introduce compact cars in Malaysia

Digi, a leader in the pre-paid business, was the first to introduce prepaid calling.

A word of warning though, just being first isn’t enough. You must also be the first in the minds of the consumers. And you must work to keep the brand presence at Top of Mind levels consistently. This is why Proton is not the No.1 local car manufacturer anymore. It was the first, but never really did anything after that.