Marketing 2.0

Follow the 10-minute rule

The late, great Steve Jobs had a rule. If he couldn't solve a problem or come with an answer in 10 minutes, he went for a walk. He found that walking stimulated his brain and often allowed him to come up with a solution. Now,neuroscientists are touting the 10-minute rule by saying " Walking nudges you to think about many new things. But it also blocks you from thinking obsessively about any single idea." You can read more about their findings in the article from Inc. in the link below.

 

Steve Jobs Swore the 10-Minute Rule Made Him Smarter. Modern Neuroscience Is Discovering He Was Right | Inc.com.

Make pretty products

Stefan Sagmeister, who is one of my favorite designers, promotes the benefits of appealing design. For example, his research shows that people prefer round shapes to rectangles and blue over brown colors. So, do pretty products sell better? You can certainly look to companies like Apple and Nike to argue that they do. On the other hand, a utilitarian and rather ugly web interface has not hurt Amazon's success. I will always come down on the side of good design. I think it's especially important for new products entering crowded markets. Let's face it, all markets are crowded with competitors these days. How will your product stand out? Read more in the Fast Company article.                    

Apple introduces a hearing aid

It's a brilliant marketing move. Apple's next software update will allow AirPodsPro 2 earbuds to be used as hearing aids. The FDA legalized over-the-counter devices two years ago opening the door to more affordable devices. The AirPods are already popular and sell for $249. It's estimated that 30 million Americans have mild or moderate hearing loss but do not currently use a hearing aid. Apple just made it possible for them to acquire an affordable and stylish solution.

Apple Has a Hot New Product. It’s a Hearing Aid. - WSJ.

FTC fights fake reviews

The FTC has finalized a new rule designed to reduce the number of fake customer reviews. The new rule will prohibit practices such as:

• Company insiders posting reviews without disclosing their affiliation
• Paying for positive reviews
• Fake reviews from bots or people who haven't used the product
• Removing negative reviews from company websites

Creating positive buzz about a product has become an essential marketing strategy. Reviews and ratings from users are largely seen as more authentic and credible than traditional advertising. It didn't take long for some marketers to try and game the system. The FTC is now trying to restore confidence in authentic reviews that really help consumers make educated purchase decisions.

$5 for a Good Online Review? No Way, Says New FTC Rule - WSJ.

Do you need a creator or an influencer?

Influencer marketing has seen a lot growth in recent years as brands try to leverage the audiences and credibility that social media influencers have built up. The rems content creators and influencers tend to bet used interchangeably, The article from Deloitte (link below) advises marketers to understand the differences between the two and expresses them this way:

"At a high level, creators tend to lead the development and production of content, while influencers are like celebrities serving as the face of their own personal brand. Often, creators reach specific communities—for example, home cooks looking for vegetarian recipes—while influencers tend to reach much wider audiences and may have their own websites or merchandise."

So, are you looking for a specialized content creator with a limited but very focused audience that's relevant to your brand, or do you need a star influencer with a huge audience? This decision is based on the type of product or service you are marketing, the target audience you wish to reach, and the campaign objectives. Read the article to gain more insights and fine tune your strategy.

What’s the Difference Between Creators and Influencers? - WSJ.

Starbucks is struggling and appoints new CEO

Starbucks recently reported a 6% drop in U.S. orders and is dealing with a host of problems. These include:

• Consumer resistance to higher prices
• Longer wait times to deliver drinks
• Higher labor and supply costs
• Investments to convert stores to drive-throughs
• Increased competition in China

In response, Starbucks recently hired Brian Niccol as its CEO, recruiting him away from Chipotle where he led a successful turnaround. He definitely has a big challenge ahead but has a great background in the quick-serve restaurant business which should help him succeed.

What’s Wrong With Starbucks? - WSJ.

Reality check for AI

This is a great article from CNET on the current status of generative AI, its successful applications along with its limitations. Here's a quote that jumped out and reflects my trepidation.

 

"As technologist Gabe Krieshok wrote back in 2020: "We are surrounded more and more by algorithms that recommend what we listen to, what we watch, and determine which news and friend feeds we are exposed to. The algorithms that manage and guide our lives are only going to grow and grow. I hope that for our sakes, we are skeptical enough to demand answers from the black boxes [and] brave enough to expose the Wizards of Oz who would have us believe they are magical." 

Head over to CNET to learn more.

AI Magical Thinking, Asking Chatbots About Sex and Homework, Meta Wants Awkwafina's Voice - CNET.

Conversion is now the starting point

Image source: Semrush

Great article here from the Marketing Insider. Marketers have always focused on the top of the sales funnel, trying to build awareness with consumers. That has become more challenging with the decline of mass media and the proliferation of new social channels. The argument here is that consumers no longer behave in a linear fashion moving through each stage of the funnel. Research done by Edelman indicates that half of consumers now do their research after purchase and look for confirmation they have made a good decision. So, this is the point when they are most open to engaging with a brand. 

This means that marketers need to shift their focus to content creation designed to build customer satisfaction, loyalty, and repeat purchases after the initial sale has been made. That can boost customer lifetime value and build a stronger base of business. So, the new funnel now really begins with purchase and includes loyalty as shown in the diagram from Semrush.

Brand Marketing Funnel Flipped On Its Head 08/06/2024.

Will Google cut out cookies from Chrome?

The digital ad industry is currently scrambling to adapt to Google's new policies on cookies. First, the company announced it would eliminate tracking cookies from its future version of Chrome, the most popular Internet browser. Now, it's backtracking and talking about giving users the option to opt out of cookies rather than making it the default. I read the WSJ article linked below and a couple of stats jumped out at me. 

"When California in 2020 required websites to let consumers opt out of having their data sold, many publishers simply placed a link saying “Do Not Sell or Share My Personal Information” at the bottom of their home page. Fewer than 1% of site visitors clicked it, according to large publishers."

"Chrome users already can opt out of cookies—but only about 8% do so, according to estimates from ad-tech company Index Exchange."

So, although some people complain about being tracked online and regulators respond to protect their privacy, it seems that most people have come to accept personalized ads. 

The $600 Billion Digital Ad Business Is Hanging on a Few Words From Google - WSJ.

Harley-Davidson needs a new strategy

Image source: Harley-Davidson

What do you do when your customers are aging, no longer buying your product, and you aren't attracting younger customers? The answer for Harley-Davidson has been to raise prices, focus on touring models than can cost over $50,000, and trying to maximize profits on every bike sold. The problem is total sales are declining as baby boomers give up riding or move on to mobility scooters.

My son used to be a retail sales manager for Harley and eventually got out of the business. With lower demand and supply problems, dealerships closed or consolidated.  The company tried to attract new riders with more entry-level and electric models but they didn't sell well. Then, the rapid rise in interest rates really impacted the business and cooled sales. So, what's next?

The company clearly needs new products that appeal to younger consumers. This should include more affordable motorcycles to attract first-time buyers. Maybe it means something radical like producing a line of e-bikes for urban markets.  Most of all, Harley needs fresh branding and marketing strategies.

Harley-Davidson Will Ride or Die With the Graybeards - WSJ.