Marketing Alert: Clever Is Out, Smart Is In

By Craig Bida

Monday June 30, 2014

Marketing today is changing by the minute, with many marketers genuinely struggling to keep up. Like it or not, we’re all operating in a hyper-connected marketplace in which the balance of power is shifting away from companies. To understand this new reality, witness the predictable disaster loop that happens when brands stray off course. Seduced by clever marketing ideas, marketers do stupid things. Offended stakeholders react, unleashing a tsunami of negative social media, traditional media piles on, amplifying the story, and brand managers have a very, very bad day. Brands quickly change course, trying to make it all go away before the brand suffers irreversible damage. 

Many marketers simply don’t understand the rules of this new game. There’s no better example of the tightrope brands are walking today than the recent stir-up triggered by yogurt giant Chobani about, of all things, science. In case you missed this tempest in a yogurt cup, here’s what happened. As part of a marketing campaign, Chobani recently put messages on some of its lids: “Nature got us to 100 calories, not scientists. #howmatters.” Scientists, yogurt fanatics, fact-checkers and Moms alike reacted strongly—shredding Chobani for not only being anti-science, but also for being misleading (turns out it takes quite a bit of science to manufacture yogurt). Chobani reacted swiftly, avowing, “We were too clever for our own good - didn’t intend to put down science or scientists with our recent lid. We discontinued it." 

Another recent, high-visibility marketing misfire? An unfortunate tweet by Delta Airlines after the US World Cup victory over Ghana. Delta’s tweet used a picture of a giraffe to represent that African country. One small problem: Giraffes aren’t found in Ghana. Some people got very angry, condemning Delta for attributes marketers generally don’t want associated with their brands: Insensitivity, disrespect, ignorance, racism, etc. One simple, well-intentioned tweet quickly became an embarrassment for an airline that tries hard to position itself as a savvy, global leader. 

There’s a critical lesson for marketers here. Chobani could not have been more right when they said, “We were too clever for our own good.” Clever alone just doesn’t cut it anymore. Operating a brand today requires more complex and nuanced thinking—from the loftiest heights of strategy right down to the most tactical of tweets. It’s simple, really: Clever is out, smart is in. Want to avoid being raked over the coals? Be a smart marketer who grasps the new marketing paradigm. Here’s how: 

• Know Your Stakeholders: 

Most marketers think about their consumer target. That’s great, but go beyond the obvious to define your broader ecosystem of invested stakeholders. Carefully identify whom you might offend, alienate or marginalize. Chobani’s dissing of scientists was an obvious miss. Another example: The flap that Starbucks triggered a few years ago when it used a common, natural dye made from insects in its products. Vegan customers reacted, triggering a social media groundswell that forced Starbucks to reverse course. 

• Embrace Substance:

Make sure you are not just focusing on the fizzy, fun stuff. Dig deep to understand issues of material importance to your business and how these are relevant to your stakeholders. Understand how this intersects with your marketing strategies. A little bit of smart thinking by Chobani about its highly controlled, science-based supply chain would have quickly raised doubts about their ill-advised, anti-science messaging. Today, it’s all about both brilliantly clever—and substance-based—marketing ideas.

• Let Your Values be Your Guide: 

Brands are under a bigger microscope than ever. Consumers today expect companies to do way more than just make money. They’re critically evaluating not just how you manufacture and market your products, but also the positive impact you’re having on society. Make sure you’re operating from a clearly defined brand purpose and core beliefs. If you stand for something meaningful and live by this as a brand, you’re less likely to fall for shallow marketing cleverness. 

In the adrenaline-fueled pursuit of glory and market share, it can be easy for marketers to forget that most consumers aren’t as enamored of marketing as they are. People remain fundamentally skeptical of companies (Research shows only about 15% of consumers globally say they trust companies deeply). Adopting a new mindset can drive better decision-making and help avoid unnecessary drama. Sound like work? Perhaps. But it’s nothing compared to trying to recover from a self-inflicted, trust eroding, spiraling-out-of-control PR disaster. Just ask Chobani.

Selling and Negotiation Are Not Separate Skills

Holding your ground when price is an issue - and it's always an issue

ARTICLE | MON, 05/19/2014

Steve Reilly

When I ask sales managers the most common mistake their people make when negotiating with customers the answer is always the same regardless of the industry: salespeople give ground too quickly and get little to nothing in return. While I understand the challenges of closing a deal, some salespeople want to “sweeten the deal” by providing a little extra incentive for the customer to buy. Many times it isn’t necessary and can cost companies much needed profit margin.

Here are some very easy tips for holding your ground against customer requests for a lower price.

Start with the right price – I’ve never received a satisfactory answer to this question from any negotiating guru. Mostly their answers go something like this, “Steve, it’s not really about price, you have to get the customer to focus on the bigger picture” or “focus on interests, not positions.” I’m sorry, but it is about price and customers focus on price because they can. Frustrated with their answers I came up with my own. Simply put, the price you put on the table is the price you can defend. The two questions every salesperson needs to be able to answer once his or her number is on the table are, “How did you arrive at that price?” and “Why should I pay more for your product or service than your competitor’s?” If you cannot answer these questions you begin the negotiation in a defensive position.

Defend your price – The most common response I hear when customers ask salespeople for a better price is, “that’s the best price I’m allowed to offer” or “I will check with my manager and get back to you.” While I understand this dilemma can be uncomfortable for salespeople, both of these responses weaken your negotiation position and communicate that you are not the ultimate decision maker. For any salesperson, in any industry, in any negotiation situation, the best response to the customer’s request for a lower price is, “our price is fair and reasonable and let me tell you why…” Having a solid value proposition that ties into the customer’s needs is the first step in defending your price.

Nothing is ever free! Too often I hear salespeople tell customers that after-sales service or training or some other value-added program is offered “for free” or “no charge" to the customer. Bad negotiating language. If you are going to provide a service with “no charge” to the customer the way to position it is to tell them that your company absorbs the costs of these services or programs. This might seem a small point but at the close of a sale when the customer asks for an additional price reduction your response can then be, “remember, we are already absorbing the cost of the XYZ service program so I don’t think we can meet that price too.”

Why BATNA doesn’t apply to salespeople – The term BATNA is an acronym for BestAlternative To A Negotiated Agreement created by William Ury and Roger Fisher in their book, “Getting To Yes.” It is simply another term for walk-away option. And although it is important to understand both sides’ walk-away options, no self-respecting salesperson I’ve ever worked with willingly walks away from a potential deal. For many the term Best Alternative is a misnomer. TheirBest Alternative may in fact be terrible; losing a sale can sometimes mean losing a job. Most salespeople would rather lose a deal to a competitor than withdraw from the running. As a salesperson, I never walked away from a deal, although I’ve lost many to lower priced options by my competitors. That’s what makes us salespeople successful: our unreasonable optimism in the face of certain defeat.

Using these techniques takes some practice but try them out and get used to applying them in negotiation situations. These techniques will make you a better salesperson by making you a better negotiator.

Steve Reilly is a principal of SPJ Consulting and author of “You’re Killing Me Here: When Win Win Negotiation Doesn’t Work.” He works globally in the areas of sales, negotiation and leadership.

'It's Not My Fault!' A Better Response to Criticism at Work

Wall Street Journal

Work & Family

Sue Shellenbarger

June 18, 2014

No one likes getting criticism. But it can be a chance to show off a rare skill: taking negative feedback well.

It is a skill that requires practice, humility and a sizable dose of self-awareness. But the ability to learn from criticism fuels creativity at work, studies show, and helps the free flow of valuable communication.

Tempering an emotional response can be hard, especially "if you're genuinely surprised and you're getting that flood of adrenaline and panic," says Douglas Stone, a lecturer at Harvard Law School and co-author of "Thanks for the Feedback."

Gillian Florentine was stunned when a supervisor at a previous employer accused her of working "under the cover of darkness." She was gathering internal data for a proposal she planned to present to him on scheduling flexibility for information-technology employees, says Ms. Florentine, a Pittsburgh human-resources consultant. She knew she should respond calmly, acknowledge that she sometimes made decisions on her own and ask specifically what had upset him. Her emotional response overrode her judgment, however.

"I was like, 'Are you kidding me?' " she says. "I felt offended and personally hurt," and responded in an angry tone. Ms. Florentine later smoothed over the rift and promised to keep the boss better informed. But she told him that his wording had "felt like a personal attack on my integrity."

Many employees don't get much practice fielding negative feedback, managers say. It is out of vogue, for one thing: Some 94% of human-resources managers favor positive feedback, saying it has a bigger impact on employees' performance than criticism, according to a 2013 survey of 803 employers by the Society for Human Resource Management and Globoforce. Performance reviews are infrequent, with 77% of employers conducting them only once a year. 

When people are criticized, the strong feelings that ensue can be tough to control. "If you end up in a puddle of tears, that's going to be the memorable moment," says Dana Brownlee, founder of Professionalism Matters, Atlanta, a corporate-training company.

If tears well up or you feel yourself becoming defensive, ask to wait 24 hours before responding, says Brad Karsh, president of JB Training Solutions, Chicago, a consulting and training company. "Say, 'thank you very much for the feedback. What I'd like to do is think about it.' "

People react badly to feedback for one of three reasons, says Mr. Stone: The criticism may seem wrong or unfair. The listener may dislike or disrespect the person giving it. Or the feedback may rock the listener's sense of identity or security.

Some people distort feedback into a devastating personal critique. Mr. Stone suggests writing down: "What is this feedback about, and what is it not about?" Then, change your thinking by eliminating distorted thoughts. "The goal is to get the feedback back into the right-sized box" as a critique of specific aspects of your current performance, he says.

Mr. Stone recalls a meeting years ago where a client tossed down on the table a report he and his colleague and co-author Sheila Heen had written and yelled, "This is a piece of s---!" Mr. Stone says his heart sank: "I'm thinking, 'This meeting is not going well.' "

But Ms. Heen had a comeback: "When you say s---, could you be more specific? What do you mean?" The questions touched off a useful two-hour discussion, Mr. Stone says. Ms. Heen confirms the account.

"What" questions, such as "What evidence did you see?" tend to draw out more helpful information, says productivity-training consultant Garrett Miller. Questions that begin with "why," such as, "Why are you saying that?" breed resentment and bog down the conversation, says Mr. Miller, chief executive of CoTria, Tranquility, N.J.

It is tempting to dismiss criticism from a boss you dislike. Lori Kleiman, a speaker and author on human-resource issues in Chicago, finished a sales call several years ago by signing up a new client. A manager who had been listening in called afterward, congratulated her, then delivered a critique: Ms. Kleiman said "like" too often while talking to the client. Ms. Kleiman bristled at the call, because she felt this manager frequently "one-upped" her, and at first dismissed the feedback, she says. But after some thought, she saw that the manager was right. As a result, she says, she began to choose her words more carefully and broke the habit.

Extra restraint is needed if a boss or colleague issues a critique in a meeting in front of others. "Don't create a scene. Just nod and keep a smile," says Mr. Karsh. Later, acknowledge the feedback, but explain that it wasn't appropriate or helpful to receive it in front of others. Ask that in the future, "we have those discussions one-on-one," he says.

Employees tend to become less defensive if they receive frequent feedback, says Catalina Andrade, training and benefits manager at Tris3ct, a Chicago marketing agency. Tris3ct trains managers to give frequent, direct feedback and to show empathy while doing so.

Some feedback may actually be out of line with your performance or character. It is fair to ask a supervisor about the basis for the critique, Mr. Karsh says. If the boss hasn't bothered to gather appraisals from co-workers, clients or customers who know and depend on your work, it may be all right to ask that their evaluations be included.

After reflecting on feedback for a while, however, most people realize, "I can totally see why someone would say that," Mr. Karsh adds.

Mr. Miller, the productivity consultant, says he was angry when a boss on a previous job scolded him for hosting an informal team strategy meeting the night before an all-employee conference. The meeting was productive. But the boss criticized Mr. Miller, reminding him of the boss's directive that no conference gatherings were to begin until the next day.

"I was screaming in my mind," Mr. Miller says, but he kept quiet. After some thought, he realized that "it wasn't about whether I made a good business decision. It was about his authority." He called the boss and left a voice-mail apology, saying he should have cleared his plans in advance. "All feedback has some truth in it," even if only to reveal how others think, Mr. Miller says. Before dismissing it, ask yourself, "What is the nugget that I can pull out of this?" 

Social Media Fail to Live Up to Early Marketing Hype

The article below expresses that social media is still not the primary target media as principal as traditional broadcast such as TV and radio for local businesses. Philip Jay LeNoble, Ph.D. Publisher

Wall Street Journal

By Jeff Elder

Companies Refine Strategies to Stress Quality Over Quantity of Fans

June 23, 2014

Companies have invested money into social media sites, but brands are learning that racking up fans and "likes" is not the same as minting sales. 

In May 2013, Ritz-Carlton Hotel Co. bought ads to promote its brand page on Facebook. After a few days, unhappy executives halted the campaign—but not because they weren't gaining enough fans. Rather, they were gaining too many, too fast

"We were fearful our engagement and connection with our community was dropping" as the fan base grew, says Allison Sitch, Ritz-Carlton's vice president of global public relations.

Today, the hotel operator has about 498,000 Facebook fans; some rivals have several times as many. Rather than try to keep pace, Ritz-Carlton spends time analyzing its social-media conversations, to see what guests like and don't like. It also reaches out to people who have never stayed at its hotels and express concern about the cost.

Ritz-Carlton illustrates a shift in corporate social-media strategies. After years of chasing Facebook fans and Twitter followers, many companies now stress quality over quantity. They are tracking mentions of their brand, then using the information to help the business.

"Fans and follower counts are over. Now it's about what is social doing for you and real business objectives," says Jan Rezab, chief executive of Socialbakers AS, a social-media metrics company based in Prague.

When many companies joined Facebook in the late 2000s, they used it as another brand website where they provided links, contact information and monitored consumer gripes. Then, they got caught up in the numbers game, trying to rack up raw masses of fans and followers, believing they were building a solid marketing channel. But that often wasn't the case.

"Social media are not the powerful and persuasive marketing force many companies hoped they would be," concludes Gallup Inc.

Gallup says 62% of the more than 18,000 U.S. consumers it polled said social media had no influence on their buying decisions. Another 30% said it had some influence. U.S. companies spent $5.1 billion on social-media advertising in 2013, but Gallup says "consumers are highly adept at tuning out brand-related Facebook and Twitter content." (Gallup's survey was conducted via the Web and mail from December 2012 to January 2013. The survey has a margin of error of plus or minus 1 percentage point.)

In a study last year, Nielsen Holdings NV found that global consumers trusted ads on television, print, radio, billboards and movie trailers more than social-media ads.

Gallup says brands assumed incorrectly that consumers would welcome them into their social lives. Then they delivered a hard sell that turned off many people.

More recently, changes in how Facebook manages users' news feeds have hindered brands' ability to reach their fans. Rather than a largely chronological stream, Facebook now manages the news feed to feature items it thinks users will want to see.

The result: Brands reached 6.5% of their fans with Facebook posts in March, down from 16% in February 2012, according to EdgeRank Checker, a social-media analytics firm recently acquired by Socialbakers.

Indian Road Cafe in New York City estimates it spent about $5,000 on Facebook ads, and its page now has about 13,000 fans. "But the return is really disappointing," says co-owner Jason Minter. "Unless you spend to boost a post, you only reach 300 to 400 people. I've certainly noticed the loss of organic reach. You spend all this time, and unfortunately, the return is not there." Mr. Minter says the restaurant still uses Facebook, but in a more targeted way, and is looking to a new website and other digital marketing approaches rather than building up the Facebook audience.

A spokesman for Facebook Inc. FB 0.00% Facebook Inc.  FB in Your Value Your Change Short position says companies need to adjust their priorities. "The way brands should think about this is changing," he says. "Fans should be a means to positive business outcomes—not the end themselves." The spokesman says Facebook has been honest with companies about the diminishing reach of their posts.

Is Hiring an Art or Science?

 

 

ARTICLE | THU, 06/12/2014 - 00:00

Navin Nagiah

Do you hire based more on information or on gut feel?

The easy answer should be “both.”

Hiring is both an art and a science. Irrespective of how many hires you’ve made, and how much you’ve honed your expertise, hiring is tough. It’s one of those management functions where you can do certain things to improve the odds, but you can never be perfect.

5 Tips for Success 
Hire for hunger. The person must be insatiably hungry for something – that something could be commissions or career progression, learning or growth or something else. Ultimately, it’s essential that they’re hungry for something that will benefit the business.

Hire for intellect and an intense desire to learn0. This is a requirement in most companies today, and especially for start-ups. People talk about “drinking from the fire hose.” In most start-ups, given the amount of continuous change, an ability to drink from the fire hose is table-stakes. It is required, but may not be sufficient.

Hire for competence. The key question here is, all things being equal, can they do the job? What accomplishments do they have that make you believe that they can do the job? What specifically was their role in it, and what impact did they have? Determining this could be considered more science than art.

If they don’t have demonstrable past accomplishments relevant to this job, ask yourself if they have the knowledge, skills and temperament to do this job, even though they haven’t done it before. Understanding this – and extrapolating it to your current job opening is much more art than science. While understanding the information is science, extrapolating it and making an assessment becomes more of a gut-feel because of the unknowns involved.

Hire for fit. The vast majority of people are suited for some job in some company. The challenge is to get the match right. This is definitely an art. The key question here is whether you like working with the person. The other question is – who is this person going to be working with the most? What are their personalities? What is the philosophy and culture of the team and company? Will this person fit into that mix? Dr. Philip LeNoble of Executive Decision Systems says, "Don't let the candidate sell you on the job just to get a paycheck...challenge them with open-ended questions."

Interviewing is a two-way street. Provide a meeting ambience that encourages the candidate to interview you, as much as you interview the candidate. This helps you present your company and yourself and helps them assess whether they want to work there. In addition, how a candidate asks questions and what questions they ask reveals a lot.

How Do You Interview?
It’s best if the interview is structured as an informal or semi-formal conversation rather than an interrogation session. It is essential to have a two-way, honest discussion so that both parties ultimately benefit.

Be sure to ask open-ended questions that spark thought and discussion:

Why are you a insurance  rep? 

What do you like about media sales and why?

As a teacher, how are you different today than three years ago?

In hiring, more than most other things, perfection is not the goal – the pursuit of perfection is. Continue to refine your approach; it must be fluid or you’ll end up no closer to perfection...  or the right hire.

Navin Nagiah is the President and CEO of DNN, producers of a commercial suite of content management and community engagement applications.

SenatorsSeekToHaveJSAsGrandfathered

ToHaveJSAsGrandfathered

Citing possible danger to local broadcasters and their viewers, five Democrats ask FCC’s Wheeler “to adopt a waiver policy that does not penalize JSAs that were structured and executed prior to the issuance of the new rules.” New waivers should be given, they urge, to JSAs "that promote more or better local news, public affairs and emergency information, diverse programming such as foreign language and expanded ownership opportunities for minorities and women in broadcasting.”

TVNewsCheck, June 12, 2014 2:32 PM EDT

Five U.S. Senators today sent a letter to FCC Chairman Tom Wheeler voicing their concern over the commission’s recent crackdown on joint sales agreements between local TV broadcasters and urging the FCC to “to adopt a waiver policy that does not penalize JSAs that were structured and executed prior to the issuance of the new rules."
In addition, they say, "the commission' s waiver policy going forward should favorably regard, for example, JSAs that promote more or better local news, public affairs and emergency information, diverse programming such as foreign language and expanded ownership opportunities for minorities and women in broadcasting.”

The letter, from Charles Schumer (D-N.Y.), Barbara Mikulski (D-Md.), Benjamin Cardin (D-Md.), Robert Casey Jr. (D-Pa.) and Kristen Gillibrand (D-N.Y.), said: “Market pressures in the broadcasting industry are making it harder for smaller stations to survive. If regional stations go dark, our constituents will be the ultimate losers.

“We are concerned , therefore, that the Federal Communications Commission's recently promulgated rules with respect to Joint Sales Agreements will further undermine the ability of local broadcasters to serve their communities. While we appreciate your desire to promote competition in the marketplace, the new rules are interrupting established business practice and creating substantial uncertainty in the broadcasting market. Ultimately, we fear the result will be less competition since certain broadcasters may be forced to cease operations, which would harm not only the broadcasters themselves but also the viewers they serve.
“Specifically, as a result of the FCC's decision to count JSAs between television stations as ownership interests, many existing agreements wi ll have to be unwound unless specific waivers are granted. These existing agreements were consistent with the law and rules at the time they were executed, and business plans have been built around them. Forcing the broadcasters to rely on the speculative possibility of a waiver creates substantial business challenges.
“In addition to the business uncertainty the new rules create with respect to existing agreements, we are concerned that the new JSA rules going forward will unnecessarily foreclose many agreements that have resulted in improved local service and a more robust broadcast industry. This is especially true in smaller markets where stations may, absent a JSA, struggle to generate sufficient advertisi ng revenue to support the production of locally oriented programming.

“Finally, we are disturbed by reports that new processing guidelines looking at JSAs and other sharing arrangements have caused applications for broadcast station transfers to be stalled at the FCC. These delays create further market uncertainty and challenges.

The senators concluded by adding that they “hope the commission will take swift action on pending television station transactions in the very near future.”

15 Great No-Cost Ways to Supercharge Your Employees

 

BY PETER ECONOMY  @BIZZWRITER

You don't need to spend a bunch of cash to motivate employees to do great things. Just apply some simple but effective leadership practices.

The Following is an excerpt from Inc. Magazine

Many bosses think that the best and perhaps the only way to get their employees motivated to do a better job is to pay them more, in the form of higher salaries, bonuses, or other cash rewards. This is a mistake. In reality, there are a lot of things you can do to supercharge employee performance that won't cost you a single dime.

Consider the example of Factory 360, an experiential marketing firm based in New York City. Company founder Michael Fernandez decided to convert an unused office into a yoga studio for employees. Together they practice their yoga moves in the repurposed space. Not only has team morale improved but Fernandez reports that the amenity has helped employees build stronger bonds with one another--and with him.

Try the following no-cost ways for supercharging your employees' morale and performance. You (and your customers) may be surprised at what a difference they make.

1. Don't just tell your employees what to do, explain why they should do it. (And while you're at it, make sure the reasons are good ones!)

2. Provide employees with prompt and candid feedback on their performance.(If improvements are needed, help them understand what they need to do to do better.)

3. Catch your employees doing something right. (And praise them when you do.)

4. Ask your employees what you can do to improve your business. (And implement their suggestions whenever it makes sense to do so.)

 

5. Really listen to what your employees have to say. (Show your sincere interest by focusing your full attention on your people when they are talking to you.)

6. Ask your employees, "What's one thing I can do better for you this month?"(And then tell them one thing they can do better for you that month.)

7. Assign small projects to your employees that require them to learn new tasks and grow in their jobs. (Serving on a task force to deal with a pressing business problem or presenting a proposal to top management are just two possible options.)

8. Rotate team leadership positions among all members of the team. (Provide all employees with leadership training so they are prepared to lead.)

9. Don't punish employees when they try something and fail. (Instead, help them learn lessons that will help them succeed the next time.)

10. Open your books to employees. (When employees know how what they do at work contributes to the bottom line, they will do more of it.)

11. Communicate a long-range vision for your company. (Make sure it's inspiring and clearly stated.)

12. Share customer letters and email messages of complaint and praise with all employees. (And do it promptly and regularly.)

13.  Expect perfection. (But accept excellence.)

14. Always treat your employees with dignity and respect. (Just as you yourself want and expect to be treated.)

15. Allow your people to be great. (You have the power to let your employees be great, or to shut them down.)