It is accepted now that consumers are paying less attention to traditional media.
Although the TV or the radio may be on, it doesn’t mean they are viewed or heard. And with the proliferation of ads and trailers, more consumers are reaching for other screens during a break in programming.
But marketers still insist on using traditional media to reach as many consumers as possible in the hope that their message will stick. Even those companies that are spending on digital are using the same methods as they used in the old mass economy.
This despite the fact that last year Harvard Business Review said, “Traditional marketing is dead… in today’s increasingly social media-infused environment, traditional marketing and sales not only doesn’t work so well, it doesn’t make sense.”
However, all is not doom and gloom for traditional media channels. Or at least the TV.
This infographic from Uberflip shows that although consumers are reaching for other devices whilst watching TV, many of them (66%) are using those devices to source information on a product and often purchase after seeing that product on TV.
Cross platform marketing requires a new mindset
So there may be a future for the TV as a communications tool after all.
However, what marketers must do is rely less on corporate driven messages and instead, identify how to introduce their products on one screen and then integrate that product and messaging across other screens taking into account changed behaviours, attitudes and cultures.
It’s well documented how numerous companies waste huge amounts of money on ineffective advertising. Generally the advertising is ineffective because it is poorly written, isn’t tested or has been developed to appeal to as many vastly different segments as possible.
This is especially true of country brands. If I had £1 for every ‘me too’ destination advertisement that I’ve seen on TV, heard on radio or seen on a website, I’d be a rich man. Time and time again I see beautifully executed ads for destinations such as Thailand, Egypt, Malta, Malaysia, Bali and others that are all selling the same things – beautiful white sandy beaches, crystal clear waters and cloudless blue skies.
These ads are pushed out across traditional media in the hope that enough people will see them, buy into them and eventually visit the country. If the campaign doesn’t work (and no one knows whether they work or not), the agency is generally sacked, a new one appointed and the whole process starts again.
Basically this model uses Hope as a strategy – hope the timing is right, hope it will be seen, hope it will be liked, hope it will be remembered, hope it will influence viewers enough to reject previous choices, hope the destination will be researched, hope the inevitable competitors that are seen at the same time will not influence viewers, hope this and hope that.
But it doesn’t need to be like that anymore. In the social media era, when consumers not countries define brands and the Internet provides copius amounts of information from other like minded consumers to help influence the decision making process, destinations need to be reaching out across this channel and leveraging consumer produced media to market themselves.
This approach requires a massive mindset change and will revolutionise the traditional organisational hierarchy but it has to start soon or destinations will lose the increasingly brutal competition for heads in beds.
To illustrate this point, I came across one video that is an outstanding advertisement for Kuala Lumpur, the capital of Malaysia. It didn’t cost the Malaysian Tourism Board a penny and is a far better advertisement than any advertising agency produced Television Commercial.
Tourism Malaysia needs to have a community team scouring the web for such content and must then distribute such content across multiple channels to generate buzz and interest. This content will allow destinations to engage directly with influencers and other consumers in a way that traditional media does not allow them to.
This really is an impressive video. I suspect that after you watch it, Malaysia will go to the top of your list of must visit destinations.
As the XLVIII Superbowl kicks off in New Orleans, attention turns to the numerous (some would say infuriatingly repetitive) commercials that can cost up to US$4 million (RM12 million) for a thirty second slot – that’s just for the airtime, not the production and other costs.
I’ve had a look at this year’s ads and (no surprises here) amongst other things, there will be beer, cars, singing fish, beer, coke (a bit of controversy around that one, well not really if you are a sensible, well rounded human being but a little bit of controversy, contrived or not does generate more column inches as well as a bit of consumer participation getting into that site during the game will be a challenge) pepsi, sports illustrated models, cowboys, cars and a liberal dash of humour to hold your attention (But no Visa this year).
Of course most people outside the US don’t get to see the ads as they get local content which if, like me you live in Malaysia that means the same Astro trailer repeated a gazillion times.
But anyway, if you would like to see what the best creative talent in the world is doing to get the attention of consumers in the US, watch all the superbowl ads by visiting here
However, if you don’t have more than US$4 million to spend on a TV slot during the superbowl or think you could spend the money more effectively elsewhere or you just like more accountability when it comes to your marketing budget, then have a look at this article at Digiday that gives you an idea of what US$4 million gets you if you take your campaign online.
One of the less mainstream online newspapers carried a scathing attack on Sabah Tourism Board today. You can read the article here
The paper carried extensive comments from a local activist who slammed the State government for recording what he called a ‘paltry’ 1.1% growth in arrivals for 2012 and blames this growth on a lack of planning.
I’ve worked to develop the tourism brand in Malaysia at both the federal level and with some of the State tourism boards and I have to say that although I have not worked with Sabah, from a distance, I think Sabah tourism is one of the most accomplished State tourism boards in Malaysia.
I do know that the State has invested in Tourism infrasture and although it has made some mistakes (name me a country, State or region that hasn’t), the Sabah Tourism Board appears to have worked hard to develop the industry and attract visitors to the State.
However, I do agree that a well thought out short, medium and long term plan that is flexible enough to react to the dynamic world today that focusses on delivering economic, experiential and emotional value (and not ‘me too’ advertising campaigns that do nothing more than waste valuable funds) is key to delivering a destination that not only survives but thrives. And as far as I know, not one State in Malaysia has a clearly defined brand strategy going forward.
One other issue that Sabah and Malaysia in general face is the lack of new products in the state and indeed in the country. Many of the visitors to competitor destinations return year after year because there are new products, opportunities and more.
In the face of growing regional and international competition and the changing tourism demographics that will see tourists from India and China looking for more than a beach resort with a well stocked bar, States such as Sabah and countries like Malaysia will have to invest in new products otherwise any growth, however low will soon turn into a decline.
You need to spend time creating a position that is driven by the corporation.
Once created, the position must be communicate across traditional media (with a nod toward social media, but a nod only) to as many people as possible and hope that some of it sticks.
If it doesn’t, create a new position and repeat ad nauseum. Hopefully you will get it right. If you don’t, well you can always discount. This model was developed by Jack Trout in the 1970s. I wrote a blog post about it here
Sadly, despite US$1.5 trillion spent annually on marketing, 70% of today’s manufactured goods will be obsolete in six years (Industry Week magazine). There are estimated to be more than 30,000 new product introductions in the US alone every year, and that’s just in the packaged goods market. According to AC Nielsen, up to 90% of products fail to become brands. This means that as many as 27,000 of those new products will fail.
Today’s consumer has changed the way he lives his life and moreover, markets are so fluid, spending time developing a position and watching your competitors is the fastest route to business oblivion.
The key to success is the sales force and their ability to build your business through collaborations and by matching products/services to individual customer requirements for value and then maintaining those relationships and your brand communities team who develop brand evangelists and influence influencers.
And with social media and modern technology, that is not difficult. A lot less difficult than creating a position and pinning all your hopes on, well hope.
This is a great ad for Windows 8 from Microsoft Portugal (stick around for the ending) but it’s a corporate driven message and in the social economy, consumers no longer believe or trust corporate driven messages.
On seeing this ad, the first thing most consumers will do is search the net for more information. I did and I came across an interview in the Verge with Gabe Newell, Chief Executive of gaming company Valve who called Windows 8 ‘A great sadness’. He said Windows 8 is ‘inoperable’ and ‘it just hurts everybody in the PC business’.
He went on to add, ‘Rather than everybody being all excited to go buy a new PC and buying new software to run on it, we’ve had a 20% plus decline in PC sales.’
Consumers have been equally disappointed. One commented on extreme tech, “I’ve had win 8 on a desktop since last February and everything you do takes as many as 3 extra steps compared to win7, everything from shutting down to closing a program or web page is unduly complicated. This is by far the worst windows ever and I have been using windows since 1981.”
In December, MIT professor Philip Greenspun said the new operating system was a “Christmas gift for someone you hate.” Although Greenspun liked some of the apps, he hammered just about every aspect of Microsoft’s new software, noting that ‘Microsoft had since October 2008 to study Android and since June 2007 to study the iPhone and its OS, but still couldn’t build a usable tablet experience.’
Late last year Microsoft announced that it had sold 40 million Windows 8 licenses in the first month of sales which began at the end of October 2012. It’s unclear whether those licenses were sold to customers or retailers or how many were upgrades and new purchases.
Microsoft spent $1.6 billion in fiscal 2012 (its year ends in June) on advertising, $1.9 billion in 2011, and $1.6 billion in 2010. Prior to that the firm spent $1.2 billion in fiscal year 2006, $1.3 billion in fiscal 2007 and $1.2 billion in fiscal year 2008.
Despite spending these phenomenal amounts on advertising, according to IDC, Goldman Sachs Research Microsoft’s share of the consumer market has nosedived from 95% to 20% in the last 8 years.
My bet is that Microsoft will find it hard to sustain those early Windows 8 sales if trade and consumer reviews continue to lambast Windows 8.
And no matter how much the firm spends on advertising and no matter how creative or well executed is the advertising, if the product doesn’t work properly, Microsoft’s share of the PC operating market will continue to plummet.
As the world attempts to shake loose the shackles of the economic meltdown, competition for tourists from both established and new markets is gathering pace.
But the new environment is an even more competitive one. There are almost 200 countries worldwide and over 100,000 places in Asia alone, actively seeking to attract and retain tourists.
As a result, it is increasingly important that destinations seeking domestic and international visitors have a well researched, structured, long-term strategy for increasing visibility & engaging the right segments to generate arrivals.
One relative newcomer to this tourism marketing battleground is the city of Jakarta, the capital of Indonesia, located on the island of Java and the capital of Indonesia. If you haven’t been to Jakarta I recommend you go as soon as possible because it is a fascinatiing destination.
I spotted this ad in a Malaysian daily recently.
Does this ad make you want to get more information on Jakarta?
It would appear that the people at the Jakarta tourism and culture department are looking to attract visitors to Jakarta with the promise of great shopping. However, as a consumer, without knowing anything about the rest of this campaign I can tell you that this ad needs work.
Firstly, what is the headline trying to tell us? Is it telling us that time is irrelevant? This is an existential argument and possibly true but in this situation not relevant. Perhaps it is saying, “don’t worry about time when you go shopping in Jakarta”? Or to be more specific, when you go shopping for shoes because after looking at this ad, am I wrong to assume Jakarta is a great place to buy shoes?
There is no call to action, the image of the shoe boxes looks photo shopped onto the main image and there isn’t a website address to gather more information.
So I took it on myself to google (other search engines are available) “Enjoy Jakarta” and arrived at the official Jakarta travel website where I couldn’t find any information on enjoying Jakarta, shopping or even shoe shopping.
Not the best introduction to what Jakarta has to offer
I spent some time on the site and for what it’s worth, I found the site very slow, difficult to navigate with limited information and English that needs proof reading before pubication. When I clicked on the “Why Jakarta” tab on the drop down menu, the information provided was hardly compelling and unlikely to attract investors. And talking of investors, is this a tourism site or a business site?
Not the most compelling of arguments
Moreover, I found the information above the fold didn’t match the information below the fold and when I clicked on Wine and Dine in the footer, all I got was a list of restaurants which to a first time visitor would mean nothing.
This won’t mean much to anyone
Today, audiences rely less on traditional media to source information, making them increasingly hard to reach. Furthermore, consumers are less inclined to see or be interested in a corporate driven message delivered across traditional media.
But as the reliance on traditional media diminishes, opportunities arise in new and social media. Where before, companies were dependent on content from the media owners, today they can create their own content that resonates with specific consumers and their interests.
Consumers too are developing their own content and it’s important that destination brands such as Jakarta understand this and provide channels for consumers to create and share content.
It is good to see Jakarta looking to encourage visitors to this exciting city but it will take more than the print campaign and website reviewed in this article to be successful.
Luxury brands are working hard to keep up with a more dynamic environment with more discerning, knowledgeable customers who have different requirements for value. To retain these customers requires a greater understanding of the those requirements and less emphasis on the mass economy tools such as positioning, reach, awareness.
Loyalty is also less of a factor as consumers see their exclusivity watered down as luxury brands go mainstream and sell their product to anyone. Those brands that don’t understand customer requirements for value may lead to brand deflation, according to Michael Bleby in this article for BRW in Australia
More and more companies are moving toward a direct to consumer sales model. There are a number of reasons for this and it can be a tricky process to implement without upsetting the existing distribution ecosystem but let’s not go there for now.
But this move will see an increase in Direct Marketing. Direct Marketing should be included in any Malaysian business’s brand strategy, whether business to business or business to consumer. And it is a tactic that has plenty of room for growth as it is currently under appreciated and under utilized.
Because the quality of Direct Marketing in Malaysia and the mining and management of data must improve before consumers will pay attention.
What is direct marketing?
In a nutshell, direct marketing is the way in which a supplier of goods or services contacts an end user, normally a consumer or business. Direct marketing includes any mail sent via traditional post or email, brochures, magazine inserts, leaflets and catalogs.
With the direct to consumer sales model, it is also common to include telemarketing and face to face sales as elements of direct marketing
The existing model
If you want to at best create a bad first impression of your brand and at worst ensure an instant negative impact on the reputation of your brand, prepare a badly written product or services document on your desktop, use fonts that are hard to read or have a thick bold type face and whatever you do, don’t spell check the document.
Next, print 10,000 copies and shove them in letterboxes at office and/or apartment complexes in the Klang Valley. Don’t bother to record how many are delivered to each destination and ignore whether or not your product or service has any relevance to the occupants.
Then go back to your office and wait for the phone to ring (assuming you included your number on the document – and believe me, some don’t).
With this approach, the best you can hope for is that the leaflet will be used as a place mat for lunch or simply allowed to fall on the floor by the letterboxes. Hardly an inspiring ‘moment of truth’ first time experience for your brand and potential customers.
If there isn’t a response to the exercise, does this mean the ‘Direct Marketing campaign’ is unsuccessful? Absolutely not, what it means is that a very good tool has been used wrongly.
Another way to damage your brand is to send the wrong material to the wrong people. Credit card companies are renowned for sending credit card application forms to children.
Why am I receiving this sort of mail? – Note to self, do not use this company for training.
Little wonder consumers lose faith in financial institutions when they make such glaring mistakes. Think of the money wasted on buying the list of names, designing and writing content for brochures, envelopes, postage, administration and so on.
Email is still one of the most effective forms of communication with open rates of 22%, click through rates of 8% and conversion rates of 1.5%. But it must be done properly. The common approach is to buy a list of names (normally the cheapest) and carpet bomb that list with every offering you have.
Conference and training providers do this. They don’t bother who the recipient is and what he does, they simply fire off an email offering agile this, scrum that to their mailing list each time they have a new event or training seminar. Research suggests most executives have a spam filter that directs this mail straight to the trash.
The UK has some of the toughest privacy laws in the world yet Direct Marketing is still one of the most effective forms of brand development.
In 2011, UK firms spent RM14.5 billion on direct marketing which was responsible for 23% of all sales and generated RM196 billion of business. Direct marketing is effective in the UK because it is used properly.
How to do it properly
The key for all direct marketing is get the customer information right in the first place and keep it updated accurately thereafter. Well targeted communications can improve response rates by 300%.
If you don’t have the resources to compile data, outsource. There are many firms offering data collection, cleansing and data suppression services and it is money well spent.
Next, take some time to think about what you are doing and why. Are you looking to make a sale or build a customer base? Free tip, it should be the latter. Once you know what you are doing and why, think about the channel.
Determine which is the right channel. Should you use email, magazine or newspaper inserts or other. If you have a lot to say or want to show off images, an email is probably not the right channel to use unless you have a very niche product and a very well researched database. Many firms simply programme their servers to reject any email with an attachment.
Measurement
Measurement is critical in any campaign but especially so in Direct Marketing. Understand what the exercise is going to cost so that you know what your break even point is. Also measure response rates from specific segments and determine why prospects don’t buy.
Personalise each communication
If you want to stand out from the competition and have a chance of connecting, every communication should be personalised to ensure a chance of engagement. Personalisation is dificult and time consuming because it requires attention to detail but worth the investment because it instantly makes the recipient feel recognised and important.
Content is king
Content is critical, especially if you are selling a luxury product. Yes I am aware that Malaysia is a price driven and discount defined market but I disagree that that is all it is. It has got to that stage because consumers have been let down by advertisers so often and for so long that they now focus on price and price alone.
But as many luxury retailers, developers and service providers will tell you, provide a high quality service and product and consumers suddenly seem less focused on price and more focused on the experience and the prestige.
So make your content interesting. The example below is from a property developer trying to get wealthy buyers to part with millions of dollars. I doubt they will be successful with this copy.
Make content interesting, it’s not rocket science!
There is an edict within Direct Marketing industry that says, “Right offer, right person, right time.” It isn’t complicated, it just means that to be successful, start up, SMEs and GLCs need to up their game.
Put an end to poorly thought out, badly designed, written and untargeted material and use quality direct marketing to build quality brands.
brandconsultantasia.com 