Posts filed under “Money Business”

Eric Karjaluoto has a great post talking about companies slashing marketing budgets during this recession. (Which many are.)

What baffles me about all of this is how people are choosing to cut their spending. I can appreciate reducing office space or negotiating a lower lease rate. I similarly understand reducing staff members or entertaining job sharing options. What I can’t quite grasp, however, is this tendency to narrow the pipe for incoming sales. When you aren’t getting dates, you don’t go home and watch re-runs of Matlock; you get out of the house and meet people.

It seems that most companies are in fact doing the opposite of this though. I talk to numerous people in key roles who look a little like they’re a moment from crapping themselves. When I ask what they are doing in terms of marketing they typically respond in the same fashion, telling me something to the effect of, “We know it’s something we should be doing, but we have to cut right now.”

A nice office space doesn’t directly drive sales. Office perks may heighten morale but they don’t necessarily bring in new clients. In times like these, all of us have to look at what keeps the machine running. As such, there’s one simple truth that I want you to embrace: your company has to accelerate its marketing and sales efforts...

...So, let’s just say you’ve taken a few moments to skim this article, and you think that I’m perhaps making a small amount of sense here. Well this then is the spot where I need to sell you on the notion that this whole “marketing” thing could actually work for you. Let me take the next few moments to push you off that cliff.  ;-)

When you’re half-way through a grueling run, feeling like you want to “puke your lungs out”, you tend to forget that you’re not the only one. Everyone else around you is likely feeling just about the same way, and it’s the one who can suck it up and push harder who wins the race. Although there are a few lucky ones who have managed to escape the pinch, I feel I can safely say that your competitors are hurting badly. So while they are retreating and licking their wounds, I want you to press the gas pedal and haul some ass. They’re vulnerable; isn’t this the perfect time to strike?

In fact, they’re running so scared that there’s less “noise” out there. When times are good, everyone’s clamoring to have their voice heard. Today, however, your marketing dollar has more bang, largely because fewer people are advertising, selling, and getting the word out. It’s ripe for you to get out there, bang your drum, and perhaps even grab a couple of your competitors’ clients in the meanwhile.

Read the rest of it: Stop Acting Like a Sissy and Market Your Company.

I am a huge fan of Designer Michael Beirut and a faithful reader of his blog posts on Design Observer. This archived excerpt, in particular, made me smile.

For over twenty years, I've been writing proposals for projects. And almost every one of them has a passage somewhere that begins something like this: "This project will be divided in four phases: Orientation and Analysis, Conceptual Design, Design Development, and Implementation." All clients want this. Sometimes there are five phases, sometimes six. Sometimes they have different names. But it's always an attempt to answer a potential client's unavoidable question: can you describe the process you use to create a design solution that's right for us?

The other day I was looking at a proposal for a project I finished a few months ago. The result, by my measure and by the client's, was successful. But guess what? The process I so reassuringly put forward at the outset had almost nothing to do with the way the project actually went. What would happen, I wonder, if I actually told the truth about what happens in a design process?

It might go something like this:

When I do a design project, I begin by listening carefully to you as you talk about your problem and read whatever background material I can find that relates to the issues you face. If you're lucky, I have also accidentally acquired some firsthand experience with your situation. Somewhere along the way an idea for the design pops into my head from out of the blue. I can't really explain that part; it's like magic. Sometimes it even happens before you have a chance to tell me that much about your problem! Now, if it's a good idea, I try to figure out some strategic justification for the solution so I can explain it to you without relying on good taste you may or may not have. Along the way, I may add some other ideas, either because you made me agree to do so at the outset, or because I'm not sure of the first idea. At any rate, in the earlier phases hopefully I will have gained your trust so that by this point you're inclined to take my advice. I don't have any clue how you'd go about proving that my advice is any good except that other people — at least the ones I've told you about — have taken my advice in the past and prospered. In other words, could you just sort of, you know...trust me?

Most processes leave out the stuff no one wants to talk about: magic, intuition and leaps of faith. Like a lot of designers, I've considered my real process my little secret.

Steve Jobs Collage by Charis Tevis for Fortune Magazine

Apple's stock goes in the tank every time someone publishes a rumor that they saw Steve Jobs sneeze at the local Pinkberry. And with Job's unprecedented bow-out of the 2009 Macworld Keynote tomorrow it was bound to happen again; Apple stock dipped 2% on Dec. 30th after Gizmodo published a sensational story quoting an unnnamed source about how "Steve's health is rapidly declining."

So the man himself has stepped in with these words:

Letter from Apple CEO Steve Jobs
Dear Apple Community,

For the first time in a decade, I’m getting to spend the holiday season with my family, rather than intensely preparing for a Macworld keynote.

Unfortunately, my decision to have Phil deliver the Macworld keynote set off another flurry of rumors about my health, with some even publishing stories of me on my deathbed.

I’ve decided to share something very personal with the Apple community so that we can all relax and enjoy the show tomorrow.

As many of you know, I have been losing weight throughout 2008. The reason has been a mystery to me and my doctors. A few weeks ago, I decided that getting to the root cause of this and reversing it needed to become my #1 priority.

Fortunately, after further testing, my doctors think they have found the cause—a hormone imbalance that has been “robbing” me of the proteins my body needs to be healthy. Sophisticated blood tests have confirmed this diagnosis.

The remedy for this nutritional problem is relatively simple and straightforward, and I’ve already begun treatment. But, just like I didn’t lose this much weight and body mass in a week or a month, my doctors expect it will take me until late this Spring to regain it. I will continue as Apple’s CEO during my recovery.

I have given more than my all to Apple for the past 11 years now. I will be the first one to step up and tell our Board of Directors if I can no longer continue to fulfill my duties as Apple’s CEO. I hope the Apple community will support me in my recovery and know that I will always put what is best for Apple first.

So now I’ve said more than I wanted to say, and all that I am going to say, about this.

Steve

The oft-celebrated (and just as oft-cursed) British automotive journalist Jeremy Clarkson names the Corvette ZR1 as his automobile of the year. Talk about damning with praise...

And then out of nowhere came the ZR1, which has a supercharged V8 that manages to be both docile and extraordinarily savage all at the same time. I’ve been trying to think of a dog that pulls off a similar trick, but there isn’t one. And anyway, this car is not a dog.
Oh, it’s not built very well. After just three days in my care, the boot lock disintegrated and the keyless go system refused to acknowledge the keys were in the car, but I didn’t mind because there is simply no other car that looks this good, goes this fast – in a straight line and around corners – and that most of the time bumbles about like a forgetful uncle. And when you throw in the price tag of just £106,690 – lots for a Corvette but modest next to a similarly powerful Ferrari – the case for the defence can sit down and put up its feet knowing that the prosecutor simply has nowhere to go.

It is an epic car and I’m only sad that unless the healthcare and pensions company that makes it can be turned around, it will be the last of the breed.

That last comment's going to leave a mark.

Times Online - Chevrolet Corvette ZR1 Car of The Year

There's been a lot of loud belly-aching over the marketplace implications of the $0.99 price point's popularity in Apple's iPhone App Store. Well, Mobile Orchard blew all that out of the water yesterday. Check out the sales distribution of iPhone Apps sorted by price:

iPhone App Store Sales by price

H is for HYPE.

Everyone is waiting for Facebook or MySpace to start turning out ad revenue like Google. It is not going happen.

Around this time last year, Microsoft (in)famously valued Facebook at $15 Billion, or $323 per user. This was at a time when their annual revenue was $0.73 cents per user, placing Facebook's presumed retention rate at 100% and their average user life span right around 400 years. (Oops)

Expectations have cooled a bit since then, but not by much. And that's bad news for social media hopefuls. Search-engine-like ad revenues are not on the horizon for the social networks for one reason: Search engine marketing ROI cannot be beat by a social network.

Yes, these web 2.0 giants have had exponential growth. Yes they have millions of eyeballs and lots of mindshare online. But you can't assess the value of mindshare without thinking about what state all those minds are actually in.

People visiting Facebook or MySpace are there to connect with other people. A social networking website is itself an end. It's not a means. People on these sites have reached their destination. They've no momentum going that will push them to leave by clicking on an ad. This leaves the momentum problem up to the advertiser to solve. No matter how you slice it, generating momentum is HARD. (It's fundamental physics, and in this case the metaphor keeps on delivering.)

That's what makes search engine marketing so powerful. People visiting a search engine have come there specifically to leave and find something else. They have momentum. They just need a shove and they're off. Add in the fact that their search terms or keywords provide marketers a context for exactly what kind of shove is needed, and you end up with a marketing environment that may be impossible to beat when it comes to value for advertisers. The money will go to search engine marketing, because in the long run it's a matter of ROI for advertisers.

Ford and Mustang Emblems

Preface: Maybe this post should be title "PR Disaster Averted... by Brand-Management Jedi Scott Monty." This story changed a lot in the few hours after it was published due to Ford rep Scott Monty. If you read through the updates you'll see that he single-handedly put down an internet uprising by acting fast, talking to the lawyers to get the real story and then fully explaining Ford's actual position on the subject...

Ford is suing multiple Ford enthusiast web sites. You may want to read that again. Ford is suing multiple Ford-enthusiast web sites. Ford Motor Company, who loses an average of $1,925 every time it sells a vehicle and who wants billions from the government to keep operating under a failed business model* is now suing people who run Ford vehicle fan sites.

Websites such as The Ranger Station, Michigan Mustang and Mustang Evolution** have received legal notices from Fords lawyers. Jalopnik reports:

In a recent letter to enthusiast web sites, Ford's reportedly requiring the relinquishment of all Ford trademarks including domain names, banners, signs and merchandise as well as a restitution payment of $5,000 by December 19th.

This company doesn't understanding anything about... well, anything.

People who run Ford-enthusiast websites should be Ford's closest allies at this moment. The company is on the ropes. They've gone to the government hat-in-hand and been denied. This may be their final hour and they're lashing out at the people they need the most: people who still believe in the company's products. (Yes, they're out there.) They should be cultivating these brand ambassadors, but no, they'd rather send the lawyers after their best, and maybe only, source of positive word-of-mouth.

This is so short-sighted it defies belief. That is, unless you know that in 2006 after posting a record $12.7 billion net loss Ford gave its new CEO Alan Mulally $28 million for four months on the job. (This is according to the company's proxy statement filed with the Securities and Exchange Commission.) This man went to Washington in November with GM and Chrysler, collectively asking Congress to loan him $25 Billion of taxpayer money. When he was asked to take a symbolic salary cut to $1, not including stock options or bonuses where corporate-America CEOs make the majority of their money, he replied "I think I'm OK where I am."(!?)

Well, pretty much no one else does, Alan. And now your company is suing the only people who do "think you're OK where you are."

What should Ford be doing with it's fan sites? How about cultivating them? How about tapping into this community of folks passionate about your product...

• Sponsor a barbecue and talk to these people about why they're passionate about past Ford vehicles and apply that to future products. (The Ranger Station? Who loves Ford Rangers? Why?)
• Host a track day at their proving grounds to strengthen the bond between the company and their most evangelistic customer base.
• Reaching out to them with special promotional products you can only get through membership so they can increase their numbers.

Or jeez, maybe they could just not sue them into oblivion. That's free.

The hubris runs high at Ford and it goes all the way to the top. President Bush said that giving this company a loan would be throwing good money after bad. I finally agree with him.

*Ford has stated that they're not facing short-term liquidity issues like GM and Chrysler and they will not be seeking any sort of government funding - Link

**Mustang Evolution and Michigan Mustang have since been removed from the original Jalopnik Article as defendants; they are just reporting on the issue.

SAME-DAY UPDATE:

Good news! At least someone at Ford is paying attention to their base: about 30 minutes after this was posted, Scott Monty, Global Digital Communications Ford Motor Company, left a comment below. I'm pasting it into the body of the story, because I think it's important to note that there are people at Ford who are "not pleased" as well.

I'm looking into this personally with our Chief Trademark Counsel. I'm not pleased that such action would be taken, but I'm trying to understand the full ramifications of the story.

I'll update when I know more.

Scott Monty
Global Digital Communications
Ford Motor Company

He also has a good post on his blog about how Ford can pay more attention to their customers (instead of, say, suing them.) Thanks for chiming in, Scott, I'm looking forward to your update.

SAME-DAY UPDATE #2:

Scott has more info on The Ranger Station: They were selling counterfeit merchandise branded as Ford. Pulled from the comments:

Thanks for bringing this issue to our attention. Without question, Ford enthusiasts are extremely important to us. Their enthusiasm and loyalty are part of our heritage and part of what's going to keep us moving forward.

Recently, there was an item posted stating that Ford was requesting TheRangerStation.com to turn over its URL to Ford and pay $5,000. We'd like the opportunity to share some additional facts that might make a difference in how you think about this situation.

In its communications, TheRangerStation.com stated that Ford was making them change the name of their site and pay $5,000. What was not mentioned was that TheRangerStation.com was selling counterfeit Ford-brand merchandise on the site. As a company, Ford has a responsibility to protect our brand and a responsibility to our licensees. We cannot let something like that pass. (The counterfeit goods have been removed from the website since TheRangerStation.com got the letter from Ford's attorney.)

Please know that Ford takes no joy in pursuing enthusiast sites. Since there are a number of sites out there with Ford vehicles as part of their names or URLs, some people have asked if they should be concerned. Ford has been and continues to be willing to license its trademarks for use by enthusiast groups and enthusiast websites. Requesting a license is done easily by contacting tmgroup@ford.com. To request a license to produce or sell branded merchandise bearing Ford's trademarks, contact branduse@ford.com.

In short, we are not asking for $5,000 and we would like TheRangerStation.com to keep the domain name. We simply encourage TheRangerStation.com to contact Ford to request a license to continue using the domain name.

We hope you will share this information with anyone who is concerned. We deeply appreciate our fans’ dedication and enthusiasm and want to be able to work together with all of our supporters to tell the Ford story.

Scott Monty
Global Digital Communications
Ford Motor Company

That seems about 100% more reasonable, Scott. Thanks for keeping us in the loop. if anyone wants to get more on this story and read a play-by-play from Scott as he got to the bottom of things, check it out over at Mustang Evolution.

This (sensationally titled) presentation is really interesting. The 34-Slide deck on Google was prepared by French consulting firm FaberNovel. It's worth a quick flip-through if you have any interest in the most powerful force online.

There's not much I like more than a good info graphic. I'm of the school that thinks design should primarily be used to convey information in a way that's fast and pleases the eye.  With words like "billions" & "trillions" crowding the headlines lately, I thought it was time to whip one up.

Pie charts are to scale. Click for full-size image.

Numbers pulled from this BoingBoing article.

In 2008 Apple's sales jumped 39% in Japan.

Why Apple’s sales jumped in Japan - Fortune Apple 2.0 Blog