The Making of a Social Networking Hero

The dramatic landing of a US Airways jet in the Hudson River last Thursday captivated people worldwide. The skill displayed by pilot C.B. “Sully” Sullenberger saved lives and rightfully earned him the label “hero.” His heroism took on an added dimension when a Facebook page recognizing his efforts appeared within hours of the incident. Fans of Captain C.B. Sully Sullenberger now number nearly 370,000. The page has an unintended effect of creating positive word-of-mouth communication for US Airways.

The event and ensuing communications online demonstrate the power of social networking. People are eager to share opinions and emotions. Thousands of people who were not impacted first-hand by the US Airways incident were moved by it. There is a marketing lesson to be learned here. Companies must explore ways to get their stakeholders involved in discussions about their needs, problems, dreams, or any other relevant topic. Customers are empowered to talk more than they have ever been; marketers would be wise to listen and join the conversation. While there is a great deal of interest in trying to figure out how to utilize social networking web sites as an advertising medium, there is perhaps greater value in shutting up and listening, for a change!

Link: Online Media Daily – “US Airways Social Media Index Soars”

Choosing a Hamburger over Friendship


It has been said you can’t put a price on friendship. Well, perhaps that adage no longer applies in our Web 2.0 world. Burger King launched a clever app on Facebook recently that encouraged users to cull their friend lists, offering a coupon for a free Whopper for every 10 friends a user removes. The campaign, created by BK’s ad agency Crispin, Porter + Bogusky, included a signature edgy element for which CP+B has become known. The removed friend would receive notification that their friendship “has been sacrificed for a Whopper.” The app was an immediate hit as more than 80,000 users added the app and sacrificed more than 230,000 friends.

Now, the BK campaign is no longer doing the friend notification because there are questions about whether the practice violates Facebook users’ privacy rights (removed friends do not normally receive notifications they have been removed). The campaign is easy to criticize for not considering this aspect of Facebook users’ privacy expectations, and some may see the campaign as cheapening or diminishing the value of friendships.

The folks at CP+B are sharp, and they certainly factored in these possible responses when formulating the campaign. The campaign generated buzz when it launched and again now as it has created some controversy. For a brand like BK, being talked about is an important strategy to keep it on consumers’ minds. You can question the tastefulness of the Facebook friend sacrifice campaign’s brand building impact long term, but it has created buzz for BK in the short term.

Link: Online Media Daily – “Hiccup for Whopper Sacrifice Campaign”

New Kid on C-Suite Block: Chief Customer Officer

Is the newest member of the C-suite for corporations destined to be CCO, Chief Customer Officer? Adding a CCO to the executive suite follows the advent of CMOs (Chief Marketing Officers) about 10 years ago. CMOs give marketers a louder voice in organizations, but they are often under immense pressure to deliver results. The average tenure of a CMO is just under two years. Much like the high paid coach whose team struggles to win, CMOs are an easy target for replacement if market performance is not up to expectations.

So, will a similar fate befall CCOs? Or, will their role as chief advocate and voice for customers make them too valuable to replace? Skeptics might wonder why CCOs are needed at all; businesses have survived to this point without the position. The answer to why CCOs are needed could be that customers have a more powerful voice than ever before. They communicate on blogs, social networks, and post videos for all to see. This power can be destructive if consumers are using their empowered voices to criticize a company or promote one of its competitors. Engaging customers and proactively monitoring their needs, opinions, and attitudes is a must in today’s environment.

C-level positions tend to focus on functional areas in an organization. Why not have a C-level person who focuses on one of a company’s most important assets: its relationships with customers.

Link: 1 to 1 Weekly – “The Chief Customer Officer: A Potential Powerhouse?”

iTunes Tiered Pricing is Right Move

Apple made two noteworthy announcements in conjunction with the annual Macworld event this week. First, Apple is dropping Digital Rights Management from the library of songs on iTunes. This move will enable easier song sharing, which you can view either as piracy or creating more exposure. Second, tracks sold on iTunes will now be priced using a three price points: .69, .99. and 1.29. This change is a significant departure from the flat rate price of .99 that iTunes has had since its inception.

The time is right for both moves, especially the tiered pricing system. Setting prices for all tracks at .99 in the beginning was instrumental in gaining consumer acceptance of paying for music by the song. The three-tiered system acknowledges different values for different songs. If you are looking to add an obscure disco song from the late 1970s, it should cost less than a top hit from today. Now that Apple dominates the music download market, it has the leeway to institute tiered pricing. The change in strategy returns some pricing power back to the music companies, who have fought hard for having a voice in how their products are priced.

Link: Fast Company Technomix Blog – “Apple iTunes Dropes DRM, Adds Tiered Pricing, 3G Downloads”

Response to Hyundai Offer: Walk Away… Fast!

As automakers struggle to sell cars in a weak economy, one company has introduced a unique program to help wary consumers. Hyundai now offers its Hyundai Assurance program, which allows a purchaser of a new Hyundai vehicle to walk away from a loan obligation if he or she is unable to make payments. The gesture is an attempt to instill confidence in buyers who may be uncertain about their financial picture in the coming months. The program is unique in the industry, and it remains to be seen if other automakers will follow suit.

Hyundai Assurance is getting a lot of media buzz, but that may be the extent of the program’s value. A closer look at the program’s details reveals:

1. Cars must be financed through the Hyundai dealer.
2. The program only covers the first 12 months of the loan period. If someone falls on hard times after 28 months, for example, Hyundai Assurance does not cover non-payment.

It is unfortunate Hyundai feels the best way to differentiate itself is by offering a walk away option to new buyers. While consumers have a variety of criteria they consider when buying a car, the ability to walk away from a loan is probably not going to be weighted with great importance. This promotion is weak and walks the line between being sensitive to the financial dilemmas of consumers and playing on their fears.

Brands Should Stay Course through Recession

During weak economic periods, emphasis is often placed on reducing costs (and rightfully so). If customers are spending less, marketing managers would be irresponsible if they did not adjust their spending, too. A focus on building and maintaining a strong brand should continue, even during the leanest of times.

A recent trends study report released by Landor Associates acknowledges less consumer spending, but suggests opportunities will continue to exist in the marketplace. Brands with price-oriented value propositions like Wal-Mart as well as what the report calls “home and hearth” brands like Disney and Johnson & Johnson will be less vulnerable during the recession. There is always a space for innovative products, too. The Landor report points out that the Apple iPod was introduced to market during a time when the economy was recovering from the dot-com bubble burst and 9/11.

Most importantly, the Landor trends study report reminds marketers about brand basics. The importance of managing brands is summarized effectively by Landor CMO Hayes Roth: “What we are saying is that brands can’t get thrown off the track. If you have done your homework on your brand, are clear about who your customers are, are determined to deliver on that brand promise and don’t cut corners on brand fundamentals, you will stay the course. You may have to reduce margins and some services but the core brand promise you cannot walk away from.”

Here’s to your brand’s health in 2009!

Link: MediaPost News Marketing Daily – “Analysts to Brands: Stick to Your Knitting”

Oatmeal: The Next Battleground in Food Marketing

Successful product launches are wonderful. Since 80-90% of new products fail, a successful product is not only a welcome change from the norm, it is essential for a business’ survival and growth. The only problem is that successful products tend to draw attention… and imitators. Such is the case for Starbucks. It rolled out instant oatmeal in its stores, quickly becoming the company’s most successful food product launch ever.

Now, Jamba Juice is looking to get in on the oatmeal action. The company has been testing oatmeal in its Chicago stores and plans a full rollout in January. The product is not an imitation in that it is slow cooked and touted as “steel cut” oatmeal (steel cut as opposed to “plastic cut” or “paper cut”?). Jamba Juice is counting on consumers perceiving a quality difference between its preparation method and that of Starbucks.

The need to differentiate is key in any product launch, especially when you are a follower rather than a leader. Without a distinct point of difference, Jamba Juice will come off as a “me too” player with its oatmeal offering. A potential payoff for Jamba Juice is that oatmeal might attract customers to its stores during a daypart that has less traffic. It is a shrewd move to grow business by attracting customers at a time of day when there is excess capacity.

Link: Ad Age – “Jamba Juice Launches Volley in New Oatmeal War”

Xbox 360’s 50-Cent Flaw

A lawsuit brought against Microsoft by an Illinois man claims his Xbox 360 console scratched three different games when the console was switched from a vertical to horizontal position during game play. While I am wondering why someone would want to change the position of his or her game console while playing a game, I am also wondering why Microsoft did not take steps to prevent the problem. According to testimony from a Microsoft program manager, this problem with Xbox 360 was detected before the product launched in 2005. Apparently, the problem could have been corrected with minor modifications to product design that would have cost as little as 50 cents per unit.

Maybe Microsoft was thinking like me, questioning who would move around their consoles while playing games. It is an issue because a product feature touted for Xbox 360 is the ability of the console to operate with either a vertical or horizontal orientation. While changing the orientation during game play may not be ideal, engineering the product to hold up to such a change is essential. While some people might think this matter is trivial in the grand scheme of things because we are not talking about a life or death consequence, it is a matter of maintaining brand integrity. If a company knows about potential problems with a product before it hits the market, it should proactively take steps to deal with the problems. If not, be prepared to suffer hits to brand reputation as Microsoft may experience yet again with Xbox 360.

Link: Yahoo! – “Microsoft Faces New Xbox 360 Reliability Accusations”

Clock Runs Out on Arena Football League

The Arena Football League is the latest casualty of the weak economy. The league announced it has canceled the 2009 season. Its goal is to return with a more viable economic model in 2010. Among the changes AFL team owners claim need to occur are linking players’ salaries to revenues, generating more revenues at the league level, and streamlining costs across franchises. Even if those changes and others are implemented, there are no guarantees the AFL will survive.

The problems with the AFL are not operational, they are relational. That is, fan relationships with the AFL and its team brands are insufficient to sustain the league. Arena football has been positioned as sport entertainment, which is both a good and bad proposition. Positioning as entertainment is good because it expands the potential market beyond those people who are interested in the core product: indoor football. Positioning AFL as entertainment is bad because it expands the number of competitors the AFL battles for consumers’ entertainment dollars. The idea of complementing the NFL season by having the AFL be a spring league has not worked. Also, in too many AFL markets there is simply too much sports competition for the AFL team to gain widespread acceptance.

The decision to suspend the 2009 AFL season surely disappointed many fans. Unfortunately, the absence of the AFL next spring may go unnoticed by even more people. I hope the AFL can solve its problems, but I am not too optimistic.

Link: ESPN.com – “AFL Cancels 2009 Season”

Teens and College Students to Marketers: "Text Me"

E-mails are so old school, at least to many of today’s teens and college students. A recent survey conducted by eROI found that more than 6 out of 10 people in these groups say they hardly ever read e-mail messages sent by marketers. Perhaps the main reason for dismissing e-mail is that many of those surveyed said marketers do not effectively talk with them on a personal level. Text messaging has overtaken e-mail as the preferred communication mode of high school and college students in the U.S., with 37% of students surveyed indicating texting as their preferred communication mode. E-mail is not exactly dead yet as 26% of students surveyed preferring e-mail communications.

This trend poses significant challenges to marketers trying to reach this important but elusive demographic. Mobile marketing is an emerging area, much like e-mail was 10 years ago. Creating permission-based mobile marketing programs that maintain relevance with young people should be the focus. If marketers think only in terms of using mobile marketing to stimulate sales, it is likely that their audience will see through those efforts and grow tired of them quickly. Wireless devices hold great potential as a marketing tool because they provide a 24/7 connection to sustain brand relationships with customers.

Link: eMarketer – “Have Students Graduated from E-Mail?”