Marketing now recognized as the business skill of the future
"In a society looking more for a set of values on wheels to bond with, G.M. seems to be falling back on offering commodity brands" sold on deals and rebates, said Robert Passikoff, president of Brand Keys, a consulting company in New York specializing in brand and customer loyalty.
"Other brands give you a sense of what they are: Mercedes-Benz stands for living well; BMW stands for living fast; Volvo stands for safety," he added. "When we ask people about G.M. brands, we get very neutral assessments; they don't stand for anything."
Jonah Disend, president of Redscout, a brand strategy consultant in New York, agreed. "G.M. has gone from the great branding company to the great 'blanding' company," he said, in large part because "it can't possibly focus on all the brands it has."
Bob Wyatt, partner and executive creative director at Union, an advertising agency in New York, said that General Motors should heed its own "heritage of branding" and recreate the model that worked so well in its early decades, of making each divisional brand stand for a different step on a hierarchy of desire.
"They should have consumers move up the ladder in the different stages of their lives as they used to, from Chevrolet all the way to Cadillac," Mr. Wyatt said. That could be accomplished by "simplifying the lineups of each division so each brand stands for something specific," he added, rather than the overly broad current approach of having, for instance, Chevrolets that run from cheap (Aveo) to expensive (Corvette).
Mr. Hurd isn't a stranger to effecting turnarounds. Mr. Hurd, who joined NCR in 1980, has pulled that once-troubled company out of the red, partly by slashing costs. In January, NCR, which makes automated teller machines and other retail and financial-electronic products, reported that its fourth quarter net income had surged 55% and raised its 2005 earnings forecast for the second time in nine days.
Mr. Thaler and Cass Sunstein of the University of Chicago Law School suggested that it is proper for the government, or an employer, to set boundaries to choice to achieve desired social objectives, an approach they call "libertarian paternalism."
Sweden's default fund for social security accounts - a mixed low-fee portfolio - is an example of such paternalism. Another would be to place the dessert display at the far end of the company cafeteria. Employees could still have dessert, but the hurdle to make that choice would be a little higher. Obesity might decline.
Eric J. Johnson and Daniel Goldstein, co-director and associate director, respectively, of the Center for Decision Sciences at Columbia University, found that big majorities of Americans approve of organ donations, yet only about a quarter consent to donate their own. Meanwhile, nearly all Austrians, French and Portuguese consent to donate theirs. The difference? In the United States people must opt to become an organ donor. In much of Europe, people must actively choose not to donate. So if organ donation is considered a social good, American defaults could just be flipped around.
Less choice creates more value in the tyranny of too much.
A typical American household today has a choice of more than a hundred TV channels, and the broadcast networks—there are now six of them—attract only about thirty per cent of viewers. Today, it would take a hundred and twenty-five CBS, NBC, or ABC ads to reach the percentage of viewers that three network ads once reached. Rothenberg, who is now a director of Booz Allen Hamilton, the consulting firm, also says, “It’s easier for Toyota to figure out a new way of producing cars than it is for McCann-Erickson to figure out a new way of persuasion.”
They offer classes to all of their employees, no matter what department they’re in, on all aspects of filmmaking. The theory is that they want everyone in the building to understand exactly what it is that the company does, so they can all appreciate the main goals of Pixar.
"In God we trust.... Everyone else bring data"
Others fear companies are suffering from a diet that verges on anorexia or worse. Cecily Franklin, now a piano teacher in Pittsburgh and formerly a manager at Consolidated Natural Gas and a vice president at Mellon Bank, wrote, "It is only possible, or safe, to lose weight slowly. ... There comes a point when the goal is to STOP losing weight and work on maintaining it."
She noted that "it would be possible, though dangerous, to turn weight loss into a pure numbers game. By amputating an arm, one would clearly see numerical results, but one would also suddenly find it more difficult to do almost everything. And if a new 'stretch' goal arises, then another and another body part may need to be removed in order to replicate -- notice I didn't say sustain -- those results. In the end, one would lose the capacity to function altogether."
A major force driving the new form is marketers' desire to know who and how many people it is reaching with a particular spot. Consumers responding to an ordinary TV ad -- going to the store, buying the product -- can't necessarily be tracked. But visitors who make the phone call to request a DVD or visit the Web site can be traced to the ad that invited them to do so.
Advertisers' desire to get concrete results from advertising is paramount these days, says John Freeland, a managing partner at Accenture, who advises clients on marketing issues. "Do they focus on marketing as a management science, or do they treat it as an art form?" he asks. "That stuff is measurable."
At Colgate, executives have been tracking the number of visits to the Web site, the duration of the visits and the redemption rate of offers, says a spokeswoman. Papa John's is able "to track our Internet orders on an hourly basis, really down to the minute, and we are able to track those back to our national TV schedule," says Jim Ensign, the company's senior director of media services.
Despite stringent secrecy prohibitions at Apple and an insistence that only a handful of the company's executives speak to the press or public, Mr. Jobs seems to have done a reasonable good job of maintaining employee morale. Several Apple employees, who spoke on condition of anonymity, said that Mr. Jobs was good at convincing his workers of the need for the computer maker to speak with one voice.
Retail giants like Wal-Mart Inc. stock up to 100,000 items at their warehouse stores. But the average family buys only about 300, Womack notes. ''To get to those 300," he said, ''you have to walk by 99,700."
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''People want to get what they need where they need it," Womack said. ''Many people really want a smaller number of choices."
"My product may be better today in a blind test but consumers love S-O-N-Y branded on their TV's"
The software worked smoothly enough but Microsoft execs were clearly unfamiliar with dealing with the delay introduced by satellite circuits and ended up talking over each other, rather like a Robert Altman movie but without the witty banter. Echo-cancellation software might have helped. The demo was running late and ended abruptly when the satellite connection timed out and was lost but not before Troy, 'star' of US reality TV show The Apprentice, had managed to pepper the dialogue with a series on bizarre interjections. MS execs didn't know what to make of the talented celebrity's comments that he was "happy as a frog on a hot plate" or that something else was "sweating like a stuffed pig", and nor do we.
Media buyers' fundamental concern is this: Even as audiences continue to erode, networks keep raising ad prices, sometimes to above what buyers think the market should bear. With a bevy of new-technology options starting to beckon, speculation has begun that TV has reached a turning point, media buyers say.
Signs already are afoot. Marketers aren't clamoring for "scatter," or ad time purchased as needed during the season, says Mr. Grubbs. If demand is down, then prices are, too -- not good for the broadcast networks, which typically use marketers' immediate need for scatter ad time to charge them a premium. If it continues, the trend would make for a shabby backdrop when broadcast networks tout their coming schedules to advertisers in May.