Archive for the ‘The 3rd Button’ Category

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Now UP! on Design Matters…

Thursday, November 20th, 2014
Tune in as Debbie chats-up the founders of The Great Discontent! Now UP on Design Observer.
The Great Discontent is a magazine featuring interviews on beginnings, creativity, and risk. Co-founded by the Essmakers in 2011, editor-in-chief Tina and creative director Ryan have since expanded the magazine to include a print edition and a film series.
Click here to hear the podcast<<

essmakers

Tune-in as Debbie chats-up the founders of The Great Discontent.

Now UP! on Design Observer.

The Great Discontent is a magazine featuring interviews on beginnings, creativity, and risk. Co-founded by the Essmakers in 2011, editor-in-chief Tina and creative director Ryan have since expanded the magazine to include a print edition and a film series.

Click here to hear the podcast<<

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Drowning in Information

Monday, November 17th, 2014

In the words of Rutherford Rogers of Yale: “We’re drowning in information and starving for knowledge.”

Most marketers don’t need more research or more data. They need more insight.

That may seem a small point, or even an obvious one, but I remain astonished by the high ratio of money spent on research that doesn’t lead to action compared to money spent on research that does lead to action.

Information is useless in its own right, and far too many people and organizations are satisfied with spending millions of dollars on useless information. Yes, you need to know what’s going on out there- but only if you are actually going to do something with the knowledge. Only if that information somehow yields competitive advantage.

The missing ingredient can sound trite. Insight is a much-overused term in the world of marketing. But it’s insight that you’re looking for. It’s insight that’s worth paying for- not information.

So try this: review every “research” expenditure you have. Ask the same two questions of each program or project:

-Will it lead to an action?

-Will it lead to insights that will yield competitive advantage?

If the answer is no to both questions, don’t do it. Save the money and- perhaps more important- save the organizational time and focus that can be much better spent on insight generation.

Many companies seem to be so busy processing information that they lose track of its purpose. What if all that processing time and the minds that like to do that type of processing were replaced with insight-generation time and minds that like to create insight? It’s time to find out.

Austin McGhie is head of Sterling’s Strategy team

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Now UP! on Design Matters…

Friday, November 7th, 2014

fritz

Fritz Karch became an active collector at the age of eleven and has always been an ardent believer in the benefits and pleasures of hunting and gathering. He studied art at the Tyler School of Art in Philadelphia and for the last three decades has worked in New York City in the design, publishing, retail, and commercial photography communities as a stylist, editor, and creative director.
Fritz helped create and launch the Collecting Department at Martha Stewart Living magazine—hunting, gathering, and collecting as the Editorial Director of Collecting, a post he held for fifteen years. Simultaneously, he has run an antiques business for the last twenty-five years in Hopewell, New Jersey, where he studies and practices the art and craft of editing, gathering, styling, trading, and selling antiques and an endless assortment of elderly and recycled objects of with functional uses.

Fritz Karch became an active collector at the age of eleven and has always been an ardent believer in the benefits and pleasures of hunting and gathering. He studied art at the Tyler School of Art in Philadelphia and for the last three decades has worked in New York City in the design, publishing, retail, and commercial photography communities as a stylist, editor, and creative director.

Fritz helped create and launch the Collecting Department at Martha Stewart Living magazine—hunting, gathering, and collecting as the Editorial Director of Collecting, a post he held for fifteen years. Simultaneously, he has run an antiques business for the last twenty-five years in Hopewell, New Jersey, where he studies and practices the art and craft of editing, gathering, styling, trading, and selling antiques and an endless assortment of elderly and recycled objects of with functional uses.

>>Click here to listen to the podcast


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Research is Reality Television for Marketers

Wednesday, November 5th, 2014

tvAs I’ve said before, only idiots and crazed entrepreneurs make decisions without research. A few of those entrepreneurs are legendary, precisely because they defied business or marketing logic and did what research told them not to do. This is how truly differentiated businesses are built and how many truly differentiated brands have been devised. This is why those legendary entrepreneurs were so wildly successful. But this is also why they are so few in number.

Smart marketers play the odds. On the occasions when they bravely ignore the odds, they do so at least knowing what those odds are. Smart marketers do their homework. They’re not bound by it or held hostage by it, but they do it. You’re not an idiot when you defy logic; you’re only an idiot when you don’t know what that logic is.

You must give a high priority to getting as close as possible to the real world. Participate personally. Get hands-on as much as possible. Stay in touch with your customer.

In the US, marketers and their agencies tend to live in cities such as New York, Los Angeles, Chicago and San Francisco. They tend not to shop at Wal-Mart, not to ride the No. 2 bus to work and not to consider Denny’s a big night out. In other words, they tend to be out of touch with their average consumer.

At the 2004 Academy Awards, held in March 2005, host Chris Rock did a remarkable thing. He took the television audience away from the beautiful people in the theater audience and to a nearby Cineplex, where he interviewed real moviegoers. None of these people had seen any of the best movie nominees, and most of them cited Saw, Barbershop and White Chicks as the best films of 2004. You can fight reality if you’re on a mission to raise the entertainment bar, but you’d better embrace reality if you’re a marketer.

So what to do?

Hire a company to conduct ethnographic-style fieldwork for you, and insist on coming along. Spend time with people in their homes, at work, on shopping trips. Our strategists often like to talk to people in “friendship pairs,” so they’re more comfortable with the process and more likely to call BS on each other. (There’s at least as much BS in reality-based marketing research as there is in reality TV.)

And do not- do not- mistake focus groups for real life. Recruiting a bunch of people from a database and setting them in a room with strangers, a moderator and a two-way mirror is about as far from reality as any of us will ever get without pharmaceuticals. People who agree to do this for money cannot be considered representative.

For reality you need to get back out into the real world. The closer you get to reality- to real customers moving through real lives with real feelings, fears and desires- the closer you are to the kind of insights that can really make a difference.

Austin McGhie is head of Sterling Strategy – stay tuned next week for more on the difference between data and insight.

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Sterling Buzz…

Friday, October 24th, 2014

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We’re happy to share the findings of some fascinating research conducted by Google in partnership with Ipsos and Sterling Brands! Now we can say without a doubt, that digital research has become more important than ever in combination with in-store shopping and linking consumers to local stores.

“Eighty-seven percent of shoppers research before visiting a store, 79% search during their visit and 35% look after, according to research released today by Google, based on an online survey of 6,000 smartphone users conducted in partnership with Ipsos MediaCT and Sterling Brands.” -AdAge

Click here to read the full findings from the study

And in a related story published by AdAge, retailer Macy’s has used these Google digital search findings to bolster local inventory ads to highlight what’s in local stores for shoppers who use devices to plan and complete a purchase. Read more on that story here<<

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Now UP! On Design Matters…

Tuesday, October 21st, 2014
Petter Ringbom is a New York-based director of documentary and narrative films. His latest film, Shield and Spear, premiered at Hot Docs and has screened at Sheffield Doc/Fest, Durban International Film Festival, and as part of Film Society of Lincoln Center’s Sound + Vision. Petter was a Film Independent Fast Track Fellow for 2013, and is currently a creative advisor for the design and innovation firm, Openbox.
Check out his great conversation with Debbie by clicking here<<

Petter

Petter Ringbom is a New York-based director of documentary and narrative films. His latest film, Shield and Spear, premiered at Hot Docs and has screened at Sheffield Doc/Fest, Durban International Film Festival, and as part of Film Society of Lincoln Center’s Sound + Vision. Petter was a Film Independent Fast Track Fellow for 2013, and is currently a creative advisor for the design and innovation firm, Openbox.

Check out his great conversation with Debbie by clicking here<<

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Customers Not Marketing Advisors

Monday, October 20th, 2014

There is a critically important and logical order implied when it comes to strategy development, a priority that is often ignored by marketers, strategy consultants and (especially) communication agencies. It is a simple syllogism that goes like this:

-Know where your differentiated advantages lie

-Know what you need to do to win the game

-Then go to your customer and find out how to win

Rely on business strategy, competitive advantage and marketplace dynamics to tell you what to do, not the customer. Instead, the customer should tell you how to do it.

To find your strategy, there a number of things you must do, and an order in which customer feedback comes into play:

1.) Look Inside. Based on the vision and core capabilities of your organization, your competitive advantage and what you see as prevailing marketplace trends, determine  the strategic alternative or alternatives that are best for you from a long-term, bottom-line perspective. I’m making this sound easy, but finding the strategy that brings all of this together in one idea is a real art.

2.) Determine which strategy is best. It’s OK to talk to your customer to determine how to refine that strategy. Will they give you permission? Where does that permission start and where does it end? What sort of stimulus do you need to get the response that they’ve indicated they’re capable of?

3.) Find the easiest path to implement your strategy. Customer research is all about finding the easiest path, in that it allows you to find natural marketplace momentum and use it to your advantage.

To put it simply, don’t ask the customer – “Do you like this ad?” Ask them “Does this motivate you to do/buy X?” Customers are not marketing advisors, but they will tell you what they will or wont do.

Norwegian Cruise Lines once embarked on a beautiful, award-winning advertising campaign designed to entice young people to take cruises. The company essentially ignored the competitive realities of its own business. Surveys found that young people loved the ads- and so the campaign went full steam ahead.

But “Do you like the ads?” was the wrong question. “Will you go on a cruise?” was the right question. An even more critical question should have been posed to the older people who really do go on cruises, and that was: “Will this ad campaign scare you away?” Unfortunately, the answer was: yes. Older folks stayed away from Norwegian in droves while only a trickle of young people took the plunge. Bad for Norwegian. Good for its competitors, who had stuck to marketing to those older cruise takers.

Remember to develop yours strategy first, then go to marketing. And, if you are going to talk to your customer, ask the right questions.

Austin McGhie is Sterling’s head of Strategy

Next week we take a deeper look at research and its rightful role in support of brand strategy.

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Your Customer is a Cynic

Thursday, October 16th, 2014

As a marketer, you are positioning something to someone. As we speak, that someone is changing his attitude. Changing her outlook. Some of that change is just a result of his or her last conversation with a friend and some is more deeply felt and therefore permanent. One permanent change is that consumers have increasingly adopted the attitude and behavior of professional cynics.

Blame it on the Internet. Blame it on the press or the school system. Blame it on Wall Street. Blame it on marketers who chronically over-promise and under-deliver. You can blame it on the government, too. The undeniable fact is that the modern consumer is a cynic. And this is definitely not a temporary state of affairs, a fleeting reaction to our times. Access to information and a broad range of perspectives is the real breeding ground for this cynicism- as it damn well should be.

People ‘Occupy Wall Street’ because they are losing faith in our institutions. The more they know about big business, the less they seem to like. In the words of GE CEO Jeff Immelt: “Businesses today aren’t admired. Size is not respected. There’s a bigger gulf today between haves and have-nots than ever before. It’s up to us to use our platform to be a good citizen. Because not only is it a nice thing to do, it’s a business imperative.”

Two points:

-The first is that in today’s market, product quality is less in doubt. The range of available quality is tighter. Big is no longer better. Meanwhile, small can mean handcrafted and suggest pride.

-Second, social consciousness is becoming a growing element of any purchase decision. With information availability comes transparency- the ability to see beyond the product and customer service walls of an organization to the values behind them. Share a company’s values and you are more likely to buy its products. Don’t share them and you are less likely to buy. Really dislike those values and you may actively work to convince others not to buy the product.

These days you have to respect and work with the cynicism of the marketplace. Respect the knowledge of your audience, and respect the healthy skepticism with which it views marketing.

To corrupt a much-used quote from David Ogilvy: “The customer is not a moron. The customer is you.”

Austin McGhie is head of Sterling Strategy

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Design Matters is BACK!

Tuesday, October 14th, 2014

Design Matters with Debbie Millman’s new fall schedule has been announced!

tom

Tune in right now for the latest episode featuring a true pioneer in American graphic design– Tom Geismar.

>>Click here to listen now


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The Consumer is Dead

Monday, October 6th, 2014

For what it’s worth, the term ‘consumer’ really irritates me. I still use it to make myself understood, but it bugs me. With time, I’ve concluded that the word bugs me for strategic reasons- not just because I don’t like the word itself.

‘Consumer’ conjures up a mass of people ready to blindly ‘consume’ my product. By comparison, the word ‘customer’ seems more singular and implies a relationship of some kind. Consumers consume. Customers purchase- if they are treated right. Consumers are the way of the past. Customers are the wave of the future.

This makes a difference on a couple of fronts. Right now, retailers have customers and most of their suppliers have consumers. For structural reasons, but also because of this schizoid mindset, the retailer often has a much stronger relationship with that person than does the manufacturer. Over time, this almost always leads the retailer to become a more trusted ‘guarantor’ of product quality than the manufacturer. Ultimately, this means that the retailer can source products and build brands that the customer trusts more than those from the manufacturer- and they’ll be cheaper for many of the same structural reasons.

I believe everyone needs to build a real, working customer relationship management (CRM) strategy. Forget the software for now; just embrace the theory. In the old world, terms like 1:1 marketing, segmentation and mass marketing were too often viewed as distinct alternatives. The fact is, for many marketers, inside their customer database reside customers who deserve to be handled 1:1 and can be profitably marketed to this way, customers who can be approached on a segment basis, and customers who can only be profitable if they’re treated en masse.

Depending on your business, you may even be able to determine the unprofitable customer- and although all consumers may seem like they are worth having, some are definitely best sent over to your competition.

So, let’s stop thinking about the people buying our products and services as consumers and promote them to the exalted status of customer… and then we can all go back to fighting over them.

If you’re a manufacturer and this creates confusion with intermediates such as retailers, who you currently call customers, I have another suggestion. Call them partners and treat them accordingly.

Austin McGhie is head of Sterling Strategy. Stay tuned for a continued, in-depth take on the customer all month long.