Brand Autopsy

THIS MATTERS NOW (and tomorrow)

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WhatMattersNow_slide

Seth Godin asked 70 people to choose a provocative word and riff. Seth compiled the short essays into an ebook titled, WHAT MATTERS NOW. You’ll recognize many of the contributors. Hopefully, you’ll be inspired by their contributions to make your best contribution in 2010.


*** DOWNLOAD THE PDF here ***

Digitally riffle through the pages using Scribd.

Enjoy and share with others.


My contribution is titled, SACRIFCICE. It's on page 62. It's also below...

Sacrifice

Bryant Simon on Starbucks | part 3

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We conclude our short series highlighting Bryant Simon’s book, in EVERYTHING BUT THE COFFEE: Learning about America from Starbucks (University of California Press, 2009).

Bryant writes how early on in his research he was supportive of Starbucks against its detractors complaining of Starbucks bigness and sameness. However, his attitude changed. He calls it his “Rwandan moment.”

In an email exchange, I asked Bryant what happened during his “Rwandan moment” causing him to go from being sympathetic to Starbucks to somewhat critical of Starbucks. He replied...

BRYANT SIMON: Before I started my research, I found Starbucks to be an interesting place, most notably a potentially important public gathering spot in suburbanizing America. But the deeper I dug into the company’s history and charted its actions and located it within the context of the changes in American society, the more skeptical I became about the promises it made. My patience with the company snapped when I learned about its behavior (both the promises it made and its deeper indifference to what was actually going on) in Rwanda.

Rwanda, as most people know, has had a mean and bloody past. Ethnic violence in the mid-1990s cost the nation, a former colony with a woefully underdeveloped economy and infrastructure, hundreds of thousands of lives. By 2000, the country was trying to get back on its feet and the coffee industry had the potential to help it and some of its farmers recover. Starbucks, it turned out, played on this history and this guilt – a western guilt over doing nothing to stop the killing – to sell some pricey coffee and make itself look better.

In 2005, Starbucks introduced Rwanda Blue Bourbon with its “subtle acidity” and “herbal, spice, and cocoa notes” as one of its “Black Apron Exclusives” – the designation it uses for its highest-end, most expensive specialty coffees. “Taste a special coffee,” an in-store sign maintained, “that’s helping transform farmers lives.” “A Promising Future in Every Pound,” a company press release announced to mark the introduction of Rwanda Blue Bourbon. “Following the devastating events of 1994“ – a store sign proclaimed and this was all it said about the country’s troubling past – “this new cash crop (coffee) has given Rwandan farmers hope for a better future and helped them afford better education, medicine, and housing.”

These signs – again promises – got me interested in what Starbucks was actually doing in Rwanda. I asked around a bit and found out that while Starbucks charged $22/per pound for its coffee, it wasn’t paying any more at origin than other roasters buying Rwandan beans from small growers and charging consumers far less. Starbucks, moreover, wasn’t buying its bean from co-ops or small farmers, at least not directly. “These are plantation beans,” one source who knew something about the Rwandan coffee industry commented when I asked him about Starbucks purchases. When I asked him what he meant by this, he curtly answered, “I meant what I said.” Starbucks was buying beans from large shareholders, not small farmers, from powerful landowners with, in many cases, ties to old colonial authorities, not from the victims of the ethnic cleaning campaigns that ripped the country apart.

But the Starbucks’ promises, again, made it seem like it was helping the least fortunate (not lining the pockets of people who never stopped getting decent educations, adequate health care, and spacious accommodations.)

So this was my Rwandan moment. To me, this was just too much. Manipulating the Rwandan tragedy to make money seemed totally out of bounds and nearly unethical. But even more, it demonstrated to me the utter ordinariness of Starbucks. It wasn’t that the company was exceptionally nefarious or greedy; it was that the company just like any other company, was willing to do just about anything and say just about anything to move product.


Bryant Simon on Starbucks | part 2

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We continue our short series highlighting Bryant Simon’s book, EVERYTHING BUT THE COFFEE: Learning about America from Starbucks (University of California Press, 2009).

In the book, Bryant takes a look at Starbucks from all angles including its impact on the environment, cultural society, consumerism, and globalization matters. At one point he writes, “... it became clear that Starbucks fulfilled its many promises only in the thinnest, most transitory of ways and that people’s desires went largely unfulfilled.”

I asked Bryant Simon, in an email exchange, to give specific examples how Starbucks thinly fulfills its promises to customers. Here's his reply:

BRYANT SIMON: Many branders, following the lead of Joseph Pine and James Gilmore, argue that higher-end consumers are looking for experiences and wiling to pay extra to get them. I think about this idea in a slightly different way. I think we pay a premium to get the things that are missing in our lives – experience being just one of them (and I write about this in the chapter in my book on music and the feeling of discovery, both real and vicarious that Starbucks sells.) Back to my point, so I think that people increasingly buy to fulfill their desires or get a hold of the things that are missing in their lives.

But there is another dynamic at work here.

As other social forces – neighborhoods, community, unions, and politics – seem to recede, brands have stepped into our lives to offer more of the things that matter most to us – everything from authenticity to work spaces to belonging to social justice. Really, then brands sell promises – promises to fulfill our needs and desires. Yet, often they deliver only an illusion of what we need and want, some vapory facsimile that looks like the real thing, but usually isn’t even close.

Few companies, in what we might call the “promise economy,” sell more -- e.g. promise more – than Starbucks. But again, the company doesn’t always deliver on its promises.

Take the promise of Third Place. Starbucks has borrowed – expropriated -- this phrase from the sociologist Ray Oldenburg. Oldenburg calls these locations real – not virtual -- sites between work and home where people can gather. Starbucks serves this role, but back to the question, in only the thinnest, most ephemeral of ways.

To Oldenburg, third places are social setting where strangers meet and forge the bonds of community. Once they trust each other, they go on to discuss matters of crucial import to the community. Talk is essential for these places to genuinely work. But that isn’t really what happens at Starbucks. People come to Starbucks to get a moment of respite or to meet with colleagues, but rarely do they engage in the kinds of community discussions needed to bolster civic life. So what they get at Starbucks, is a busy, chatty looking place that looks like a third place, but isn’t really a third place. Kind of like those cup quotes.

Remember when Starbucks tattooed its cups with quotes? They were there the company said to encourage conversation and community, but they didn’t say much that could get anyone to actually talk or engage with others. Who isn’t in favor of finding love, the rainbow of colors, and the innocence of kids playing baseball? When the cups did incite a little controversy, Starbucks pulled the offending cups. That’s not free speech, and free speech is key to Third Places and to community. Just ask Ray Oldenburg.

Same with the environment. Starbucks knows that a growing core of its customer base cares deeply about green issues, so it promises to do its part (and allow them to think they have done their part). On every Starbucks cup, it reads right under the quotes, “Help us, help the planet.”

Sure, Starbucks has done some great stuff to limit its carbon footprint and utilize solar energy sources, but it doesn’t really help the environment, it actually leaves it in worse shape after each latte purchase. By not pushing in-store ceramic cups or reusable tumblers, Starbucks encourages takeaway, throwaway consumption. Every time we walk out the door with a paper cup, java jacket, and plastic lid (and perhaps a green plastic splash stick), we are – and so is Starbucks – creating trash (and all of the energy and oil needed top produce these additional cups and lids and then cart them off to the landfill where the take up place and slowly rot, but not be they get covered up by another bag of coffee house rubbish.)

These are two examples of promises that Starbucks makes – because the ideas they promise have value to their customers and add value to their products – but doesn’t entirely fulfill. And this is one of the avenues of inquiry I explore in my book. I look hard at what Starbucks sells and what it actually delivers.

More to come on Friday.

Bryant Simon on Starbucks | part 1

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I first met Bryant Simon in 2006. At that time, he was in the early stages of researching Starbucks impact on culture and consumerism. We traded emails about nuanced Starbucks happenings from store-level operations to broader marketing matters. He was curious to learn the rationale behind a lot of the decisions he was experiencing in Starbucks stores. As a former Starbucks marketer known for sharing tribal knowledge about the company, I enjoyed my email threads with him and my face time with him when he visited Austin in 2007.

Since he’s a history professor at Temple University, Bryant comes at the Starbucks story from a unique angle. He uses this unique perspective to make interesting observations about Starbucks.

After a few years of research and thousands of hours spent observing Starbucks from hundreds of its stores, Bryant Simon has released his observations on Starbucks in EVERYTHING BUT THE COFFEE: Learning about America from Starbucks (University of California Press, 2009).

It’s a worthwhile read. We’ll be sharing Bryant’s take on Starbucks impact on culture and consumption over the next three days.

We begin with a highly condensed verbatim abstract of chapter two in his book. This chapter is titled, “Predictability the Individual Way.”

Bryant Simon writes ...

“Built for the postneed, status-seeking, civically challenged world, Starbucks offered an important variation on McDonald’s-style, branded predictability, sameness and comfort are certainly important for highly mobile yuppies, bobos, and creative class types.” (pg. 60)

“Predictability doesn’t just happen. Starbucks works hard to stage this easily consumed familiarity, starting with the coffee itself. Reluctant to franchise, Starbucks owns most of its outlets.” (pg. 65)

“Starbucks baristas also tend to look alike—usually smiling and usually young. This, too, is no accident. As thick as a chemistry textbook, the Starbucks employee manual leaves little to chance. It provides workers with a script outlining exactly what they should say and the tone they should strike. It spells out what they can and can’t wear and what they can’t show of themselves.” (pg. 66)

“Making every Starbucks look familiar and feel safe requires heavy doses of policing, employee disciplining, and systemization. In other words, as McDonald’s expert George Ritzer suggests, it requires that Starbucks stores operate like McDonald’s franchisees. Indeed, as Starbucks grew, it became more like McDonald’s every day, turning consumption, work, and management into a series of predictable centrally controlled routines.” (pg. 71)

“There is a tipping point here, however. Too much sameness alarms rather than reassures, many bobos and creative class types; it cuts into their sense of individuality.” (pg. 76)

“In one last twist on the themes of sameness and placelessness, authenticity and consumer desire, Starbucks, in some ways, has begun to consume itself.” (pg. 81)

More to come on Thursday and Friday.

CONFESSIONS OF A PUBLIC SPEAKER | a dramatic reading

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CONFESSIONS OF A PUBLIC SPEAKER by Scott Berkun gets the Marketing Masterpiece Theatre treatment.

If you regularly give presentations, you'll find yourself nodding in agreement with many of the stories Scott tells about presentations gone right and those that went terribly wrong. You'll also pick-up a few pointers on improving the design and delivery of your next presentation.

(Check-out Scott's presentation style by watching his recent gig at the Web 2.0 Expo 2009.)

Don't expect a drab how-to-present book. This ain't it. Scott mixes in his advice alongside well written stories about his life as a "freelance thinker."

Time to cue Sir Wilton Norman Chamberlain III for his dramatic reading ...



RSS Readers ... click here to view the video.

[NOTE: I often receive free copies of biz books from publishers and publicists. However, I spent my money for my copy of CONFESSIONS OF A PUBLIC SPEAKER.]

WOMMA Conference: Recap Presentation

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*** Note, my WOM Enthusiast hat is on with this post. ***

When you return from a conference chock-full of insights, it’s difficult to share everything you learned. Sure, you can transcribe your notes but your notes are bound to have some holes. You can also pull insights from summaries other attendees have posted on their blogs.

Or ... you whittle through the thousands of tweets from attendees to carve out a more complete list of insights. That’s the path I’ve chosen to take after returning from WOMMA’s Creating Talkable Brands conference.

Over 470 attendees shared 3,600+ tweets (.pdf download) with the #WOMMA hashtag during the three-day conference. I’ve whittled down the 3,600+ tweets to a more digestible collection of 165 tweets and compiled them into this SlideShare presentation. Enjoy.

File Under: MISSED OPPORTUNITY

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Something doesn’t make sense with this poster ad on the DFW Airport skylink tram. Do you see what I saw?
Pretzel
If I’m advertising a “treat yourself” occasion at the airport during the hullabaloo of holiday travel, I’m choosing something more treat worthy than a low-fat soft pretzel. There are lots of "treat yourself" opportunities at DFW Airport that out indulge a basic pretzel.

Beloved Companies Make The Right Decisions

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As a customer loyalty-focused marketer, Jeanne Bliss has been in the marketing game with some notable brands: Lands’ End, Coldwell Banker, Allstate, Microsoft, and Mazda. She has seen how making the wrong decisions can lead to forging customer disloyalty and how making the right decisions lead to fostering customer loyalty.

I’ve known Jeanne for a couple years. Smart gal. And her latest book, I LOVE YOU MORE THAN MY DOG, is a smart read for businesses wanting to earn loyalty from customers. (Since Jeanne is a friend, she gave me a copy to read. Friends are nice that way. Thanks Jeanne.)

Jeanne is onto something worth reading by framing her book around exploring five decisions company’s make (or don’t make) to become a beloved brand.

To summarize key points from the book, let’s give it the Brand Autopsy "WHAT? – SO WHAT? – WHAT NOW?" treatment...

JeanneBliss

WHAT?
“When you make a decision, it results in action. And the accumulation of those decisions and actions become how people describe you and think of you. It becomes your ‘story.’”

SO WHAT
“As customers and employees, we crave what beloved companies deliver. They enable people to decide and act from a corner of their brain that is congruent with doing the right thing. In doing so, they build an organization with energy and spirit that draws customers to them.”

WHAT NOW?
“[There] are five decisions that set beloved companies apart. These five decisions reveal who they are and what they value.”

Decision #1:
Decide to Trust Customers and Employees

“By deciding to trust customers, [companies] are freed from extra rules, policies, and layers of bureaucracy that create a barrier between them and their customers. And by deciding to believe that employees can and will do the right thing, second-guessing ... is replaced with shared energy, ideas, and a desire to stick around.”

Decision #2:
Decide to be Guided by a Clarity of Purpose

“Beloved companies take their time to be clear about what their unique promise is for their customers’ lives. Clarity of purpose guides choices and united the organization. It elevates people’s work from executing tasks to delivering experiences customers will want to repeat and tell others about.”

Decision #3:
Decide to be Real, Genuine, and Personal

“... beloved companies shed their fancy packaging. Beloved companies strike a chord with customers. They decide to create a safe place where the personality and creativity of their people shine through.”

Decision #4:
Decide to Deliver Thoughtful Customer Experiences

“Beloved companies think and rethink how to conduct themselves, so they earn the right to their customers’ continued business. Their ‘experience’ is far more than the execution of an operating plan. [Beloved companies] leave customers thinking, ‘Who else would have done this?’ ‘Where else could I get this?’ ‘I want to do this again.’”

Decision #5:
Decide to Apologize

“When a beloved company apologizes for something that goes wrong, the intent and motivation is to make customers whole—to earn the right to continue the relationship. Many companies consider the apology as admitting defeat. In actuality, the reverse is true. A well-executed apology: one that is timely and delivered with humility and remorse ... often build a much stronger relationship. Both the customer and company win.”

Decision #6:
Decide to Read I LOVE YOU MORE THAN MY DOG

(This is a bonus decision you should make.)

Business Lessons from a Soda Jerk

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John Nese is a modern day soda jerk. He’s passionate about “flavored water with a lot bubbles.” Soda makes him smile, makes him happy. He’s the proprietor of Galco’s Soda Pop Stop in Los Angeles. His store sells about 500 different sodas from small, independent-run soda makers. His business is a prototypical purple cow, worthy of word-of-mouth.

Watching the video below will not only make us smile and happy, it will make us smarter about business strategy and jealous we don’t have the same passion for what we do that John Nese does.

We’ll become smarter because we’ll see first-hand how passion propels performance, how being more selective makes a business more effective, and how sharing inspired expert knowledge will never go out of style.

We’ll become jealous because we’ll see someone who has made the necessary sacrifices in life to pursue their calling.

Enjoy. (Thanks Seth and Neal for bringing this video to my attention.)


RSS Readers ... click here to watch the video.

No More Starbucks Gold

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Lots of chatter online about the revamped Starbucks “rewards” program. Starbucks will discontinue its Gold Card program it began a year ago. The Starbucks Gold Card program was designed like many membership rewards program where customers pay a yearly $25 fee and in return they receive free refills on brewed coffee, free wi-fi access, and 10% off on all purchases.

Beginning December 26, Starbucks will replace its Gold Card program with a "My Starbucks Rewards" program offering customers a free beverage after 15 purchases. (There are a few other small perks in this program but it's essentially a Buy 15 Drinks, Get 1 Free program.)

Starbucks is touting its new rewards program as an improvement because of its simpler design and the no annual fee.

However, the consensus from the online chatter is this new program benefits less frequent Starbucks customers (2-to-3 visits a month) than the very frequent Starbucks customer (8+ visits a month).

Obviously the redesign of this program will benefit Starbucks more financially. Perhaps offering a 10% discount to Gold Card members on all purchases was profiting heavy-spending customers more than it was profiting revenue-needing Starbucks.

Whenever I read about new Starbucks business happenings, I refer back to the book I wrote about Starbucks foundational business practices. In TRIBAL KNOWLEDGE, there’s a short section on fostering customer devotion where I give the old school Starbucks perspective on “Preferred Shopper” loyalty schemes, such as a Starbucks Gold Card program or the new My Starbucks Rewards program...

“These ‘Preferred Shopper’ promotions also reverse the logic of great customer service: they ask customers to sign up for a card or buy a certain amount of product before they can enjoy the benefits of being part of the club. Do you really want to create two classes of customers? One that gets the ‘good stuff’ at a good price, the other that gets a raw deal? If you want to foster true customer devotion, don’t make your customers jump through hoops just to feel welcome, or 'preferred.'

Businesses operating like this treat their customers like cattle, doing whatever they can to attract attention. When companies are more focused on their own bottom line than their customers, both will eventually fall away. These programs lack soul and meaning to stand the test of time.”

The last paragraph in this chapter shares a thought more businesses, especially Starbucks today, need to pay attention to:

“Customer loyalty works both ways, and Starbucks knows that. Of course Starbucks wants to maintain its profitability, but it does this by helping the folks who come into its stores, not by working against them. If you want customers to stay loyal to you, stay loyal to your customers—treat them as people, help them as individuals, offer them something extra, and they’ll come back for more.”

You can read the full chapter, TRIBAL TRUTH #28: Foster Customer Devotion, in the box below:

Foster Customer Devotion

WOMMA's Creating Talkable Brands Conference

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*** My WOM Enthusiast hat is on with this post.


talkablebrands1

It’s a few weeks until WOMMA’s Creating Talkable Brands Conference (Nov. 18 – 20, Las Vegas). Sign-ups have been strong. And for good reason — the agenda is strong.

There are over 40 sessions with 4 learning tracks and 4 keynotes addresses (.pdf agenda). For each of the breakout sessions, WOMMA is pairing up a Brand with an Agency. So you’ll hear both perspectives, the brand-side and the agency-side, in each breakout.

To help make sense out of the packed agenda, I’ve been sharing highlights from Day 1 and Day 2 on the ALL THINGS WOM blog. Here’s a sample of how I’m breaking down the agenda...


DAY ONE Highlights

The Annual State of Word of Mouth Address
[Wed. Nov. 18 | 2:00 - 2:45]
Dr. Walter Carl has been a fixture in past WOMMA Conferences. Of course he’ll share new information on measuring WOM, that’s what he’s known for. He’ll also give us marketers more ammunition to better sell-in our WOM programs up the corporate food chain.

KEYNOTE: The Anatomy of Buzz
[Wed. Nov. 18 | 3:00 - 3:45]
Emanuel Rosen, an author and marketer who helped to spark interest in word of mouth marketing nearly ten years ago with the publication of THE ANATOMY OF BUZZ, returns to keynote a WOMMA Conference. Earlier this year Emanuel updated his influential book on WOM to include new learnings, new methods, and new case studies. His presentation will share the latest insight on all things WOM.

Choosing the Right Agency for your Social Media Marketing Projects
[Wed. Nov. 18 | 5:15 - 6:00]
David Witt (public relations manager, General Mills), Christine Morrison (social media manager, Intuit), and Steve Knox (ceo, Procter & Gamble Tremor) will advise brand marketers on what to look for in a social media agency partner. The beauty of this session is you’ll get both sides of the story (brand and agency) to help you better prepare your RFP and to whittle down the seemingly endless agency options. A must-attend session for brand marketers.


DAY TWO Highlights
Answers from Academics to WOM’s Toughest Questions
[Thurs. Nov. 19 | 9:35 – 10:30am]
There is an art and a science to word of mouth marketing. This session will focus more on the science of WOM. Brad Fay from the KellerFay Group will ask Professors (Walter Carl & Jonah Berger) and PhDs (Lezan Aksoy & Barak Libai) important questions about the motivations for why people talk. The differences between how online and offline WOM spreads will no doubt be covered. And, I’m expecting a heated debate about targeting “influentials” versus “influenceables.” Answers from these academics will be steeped in research and deep analysis. Every marketer is sure to learn something new from this session.

True Believers: Turning Skeptical Co-Workers into Progressive WOM Marketers
[Thurs. Nov. 19 | 11:00 – 11:45am]
I read the proposal Sean McDonald (Ant’s Eye View) and Sam Decker (Bazzarvoice) sent in for this session and thought this will be the most creative session at the conference. Sean and Sam have outlined all the corporate characters who can derail the success of a WOM marketing plan. We’ll meet the finance guy ("Eddie Excel") who always cries out for the ROI. “Fanny Facebook” is the marketer manager who thinks all she needs is a Facebook fan page, without any strategy, and WOM will happen. “Freddy Filabuster” shows up to grandstand against a marketer’s plan, but he’s only interested in advancing his career and not advancing the business.

Fun and creative stuff, for sure. But the session will also be helpful in giving us advice on overcoming the objections and misguided approaches from co-workers, thus, paving the way for our WOM marketing plans to succeed.

Power Lunch with Kristian Bush of Sugarland
[Thurs. Nov. 19 | 12:45 – 1:45]
Sugarland is one of the more popular country music acts, winning Grammy awards and winning fans. Much of Sugarland’s success stems from the band’s LOVE THE FANS philosophy. The band does creative things to keep their fans involved from scavenger hunts for hidden tickets to a continuous stream of interesting tweets on Twitter.

A band is indeed a brand. We marketers can learn lots from how Sugarland broke through the clutter of country music bands to become a success. Ted Wright from Fizz will set the stage for Kristian Bush, singer and guitarist from Sugarland, to share how Sugarland uses word of mouth marketing strategies to make his band a success.

##

That's only a smidgen of all the happenings on Day 1 & Day 2 at the upcoming Creating Talkable Brands Conference. I haven't begun to highlight the afternoon sessions on Day 2 nor the morning sessions on Day 3. (BTW, you can save $200 on the registration fee. Learn more here.)

BAKED IN | a dramatic reading

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BAKED IN: Creating Products and Businesses That Market Themselves by Alex Bogusky and John Winsor gets the Marketing Masterpiece Theatre treatment.

(Yep ... it's another dramatic reading of an influential business book by Sir Wilton Norman Chamberlain III.)

RSS Readers ... click here to view the video.

[NOTE: I often receive free copies of biz books from publishers and publicists. However, I spent my money for my copy of BAKED IN.]

Social Business Design (Flaw)

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The Dachis Group is ringing up successes. They’ve hired a talented team. Been backed by big dollars from Austin Ventures. Gone global with the acquisition of London-based Headshift. And, introduced a new business term: Social Business Design.

Kudos to everyone involved.

However, I need help with the term, Social Business Design. The current design of its definition seems flawed to me.

I tried explaining/defining the term to a friend the other day but did it poorly. (I think I know what it means, but I don’t.) It’s about using online applications (like ‘social media’ tools) to help businesses improve communication across all departments inside the company and communication across all vendor partners and customers outside the company to create a more efficient and more coordinated way of doing business.

At least that’s what I thought. After reading Dachis Group Managing Partner Peter Kim’s short explanation of what Social Business Design is, I’m totally lost.

Read through Peter’s explanation and see if you can make sense of it. If you can make sense of it, do us all a favor and leave your easier to understand definition for "Social Business Design" in the comments section. (Thanks.)

Peter Kim writes: Social Business Design is the intentional creation of dynamic and socially calibrated systems, process, and culture.

Its goal: helping organizations improve value exchange among constituents.

Social Business Design uses a framework of four mutually exclusive, collectively exhaustive archetypes: ecosystem, hivemind, dynamic signal, and metafilter. This model can be applied to improve customer participation, workforce collaboration, and business partner optimization. Doing so provides insight to help measure and manage business to produce improved and emergent outcomes.”

Understanding the New FTC Guidelines

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Clearly my WOM Enthusiast hat is on with this post. (I work with WOMMA.)

Last week was a big week for marketing, the Federal Trade Commission (FTC) released new guidelines (.pdf document) for how businesses can use endorsements and testimonials in marketing. It’s a complicated and nuanced matter. Hopefully the presentations below will help you better understand what has happened and what marketers must be doing now.

For backstory purposes ... the FTC is in the business of protecting consumers from unscrupulous business practices, the commission believes consumers must be protected from being influenced by bloggers who fail to be transparent and disclose they have been compensated by an advertiser. The worry, of course, is compensated bloggers may not give their honest opinion about the products or services they’ve been compensated to write about.

Word of mouth marketing works best when it is credible. Each time word of mouth is faked and manufactured, the credibility of the most trusted marketing medium is damaged.

All that said, the end game for us marketers is that any marketing program we develop to spark conversations, especially online, we need to ask for disclosure from anyone involved. Bloggers we send products to for test drive purposes, need to mention somewhere in their writing if they received the product from someone other paying for it themselves.

To help sift through the nuances of the new regulations, the Word of Mouth Marketing Association (WOMMA) hosted a webinar last week. In this webinar, Paul Rand, WOMMA’s president elect and CEO of the Zocalo Group discussed how these new regulations will impact marketers with WOMMA’s legal counsel Anthony DiResta from the Manatt Phelps & Phillips law firm.

You can view an archived, unedited 60-minute version of the webinar on SlideShare. An edited version (10:30 minutes) can be viewed below:


During the second part of the webinar, Paul Rand asked Anthony DiResta to give a legal perspective to important questions concerning how businesses and bloggers should practically address these new FTC guidelines.

I’ve edited this Q&A discussion from the webinar into a short presentation, which I encourage you to watch below. Questions asked and answered in this presentation include:

  • How will the FTC track and monitor compliance to the new regulations?
  • Will existing online marketing programs be exempt from these new regulations?
  • Should marketers attempt to fix old blogger outreach programs?
  • Does the FTC see a difference in sending an ‘influencer’ free product versus paying someone to blog about a product?

My Starbucks Story videos

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Starbucks is asking its partners (employees) to make short videos about their day-to-day life at Starbucks. Love it. The company will share these videos online at www.MyStarbucksStory.com. Again, love it.
MyStarbucksStory

Early in 2008 Starbucks did a two-minute documentary on Young Han, a Starbucks barista, talking about his “Got Milk” photo shoot and his appreciation for the Starbucks Coffee Company. The video was posted on YouTube for everyone to see. (However, the video is no longer available.)

In a post from Feb. 2008 I mentioned how this video "works great as a recruitment video. Not slick. Not scripted. Just genuine moments and reflections..."  I also mentioned how Starbucks should STRONGLY CONSIDER encouraging its young and talented workforce to post videos of why they feel a connection to Starbucks similar to the brilliant Deloitte & Touche Film Fest idea.

More ideas from Starbucks empowering its talented workforce to showcase personality will go a long way in not just helping recruiting new employees but also in recruiting some lost customers to believe in the company again.

Exploiting Chaos

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On the Post2Post Book Tour we’re talking about Jeremy Gutsche’s EXPLOITING CHAOS book.

Jeremy advises companies on trends and innovation. He also is the driving force behind TrendHunter.com. His book is chock-full of case study examples on how to use “perspective,” “experimental failure,” “intentional destruction,” and “customer obsession” to thrive during times of change

I’ve compiled a short list of “money quotes” from the book.  Riffle through the SlideShare deck below for tasty knowledge nuggets.

View more presentations from John Moore.

For more thorough insights into Jeremy and his book ... read posts from the Marketing Fresh Peel, the Essential Orange, 800-CEO-READ, and Innoblog.

Your Call Is (not that) Important to Us | a dramatic reading

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Emily Yellin's YOUR CALL IS (not that) IMPORTANT TO US gets the Marketing Masterpiece Theatre treatment.

RSS Readers ... click here to view the video.

SUMMARY | WOMMA’s Disclosure Webinar

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*** Clearly my WOM Enthusiast hat is on with this post.


BACKSTORY
This fall, the Federal Trade Commission (FTC) will release updated guidelines on endorsements used in advertising and marketing. Current guidelines were last updated long before the Internet became an irreplaceable communication/networking channel and before marketers understood the irrefutable power of word-of-mouth marketing.

The FTC works to protect consumers from being influenced by unethical, untruthful, and unscrupulous business practices. Updated guidelines will address the need for endorsers, reviewers, and businesses to be 100% transparent and disclose when material compensation (in-kind gifts, special access privileges) and outright compensation (cash) changes hands.

On September 14, 2009, WOMMA hosted a webinar on ETHICS & ENDORSEMENTS: What is Adequate Disclosure. The diverse panel included marketers, entrepreneurs, a professor, a marketing analyst, and a lawyer.


TAKEAWAYS
The resounding sentiment was marketers and bloggers need to design word-of-mouth marketing programs to state early (and often) when material compensation changes hands.

It is a non-negotiable … businesses must solve for being obvious and upfront when a brand offers in-kind gifts, special access privileges, and cash as part of a marketing program designed to spark word-of-mouth.

Solutions discussed by the panelists centered around being clear and conspicuous when disclosing material relationships between a brand and a consumer. Practical implications talked about on the webinar included: “disclosure badges” on websites, prominently placed “terms of engagement” practices, specially designated “product review” blogs, and uniquely tagging of tweets (such as [#ad]).


WATCH. LISTEN. LEARN.
You can watch, listen, and learn more by watching this highly edited version of the webinar. This 11-minute version shares key takeaways spoken by the panelists.


LEARN MORE. DO MORE.

Would you miss Denny's

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Continuing my “Would you Miss” series ...

Dennys

Does Denny’s provide such a unique product and customer experience that we would be saddened if it didn’t exist? Does Denny’s treat its employees so astonishingly well that those workers would not be able to find another employer to treat them as well? Does Denny’s forge such unfailing emotional connections with its customers that they would fail to find another similar restaurant that could forge just as strong an emotional bond?


What say you?

Post inspiration | Mavericks at Work

Social Media, Pigs, and Lipstick

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Tom Fishburne writes...

"Many businesses treat social media tools the same as dropping an FSI or placing a grocery cart ad. It becomes just more superficial window dressing. I think it would be far better to apply that investment toward actually making the brand and products more interesting and remarkable."


Now see Tom Fishburne's spot-on illustration.

Good stuff Tom, good stuff.

Smart Marketing from Jason Stoddard

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Jason Stoddard did something interesting — he started his own consultancy company, Stagira. That’s interesting. But not as interesting as what he did to let people know he started Stagira.

Essentially, his marketing dollars went into running a conference, the Ubiquity Marketing unSummit in Austin, TX. Jason cajoled Chris Brogan to be his keynote speaker. He invited notable local social media marketing types to participate on panels. The conference information/schedule page lived on the Stagira website. Every marketing piece promoting the conference (from emails to blog posts to tweets) directed people to visit the Stagira website. Smart.

Everything turned out smarter because his conference attracted like-minded well-connected social media types. As Simon Salt tweeted, “Good Grief you cant throw a stick in here without hitting a Social Media celeb.” (It can only help a new business to have like-minded well-connected social media types making an unknown business known within their social circles.)

But the smartest marketing move Jason did was recoup his marketing spend by running a conference where people paid to attend. Maybe you should have someone like Jason thinking just as smart about your business.

smart advice from socialnomics

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Over the weekend I bought and read Erik Qualman's SOCIALNOMICS book. It's a deep dive into how social media transforms the way we live and do business.

In chapter seven, Erik writes about "Winners and Losers in a 140-Character World." One line jumped out at me as a brilliant way to explain the best approach for businesses participating in the online conversation.

Socialnomics

Spoofed

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I had it to coming to me.

Someone spoofed my Marketing Masterpiece Theatre series of dramatic readings from influential business books. That someone is Jay Ehret from The Marketing Spot. Assuming the pompous persona of Sir Stamford Albert Winchester II, Jay reads from TRIBAL KNOWLEDGE.

I’m amused. Nice goin’ Jay. (Thanks.)

How The Mighty Fall | a dramatic reading

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Jim Collins' HOW THE MIGHTY FALL gets the Marketing Masterpiece Theatre treatment. (Expect an inane dramatic reading of very smart book.)

RSS Readers ... click here to view the video.

Ignore Everybody | a dramatic reading

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NOTE: A publicity firm sent me a copy of this book.


Hugh MacLeod's IGNORE EVERYBODY: and 39 Other Keys to Creativity gets the Marketing Masterpiece Theatre treatment.

RSS Readers ... click here to view the video.

TRUST AGENTS | a dramatic reading

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NOTE: A publicity firm sent me a copy of this book.


Getting the Marketing Masterpiece Theatre treatment today is ... TRUST AGENTS from Chris Brogan and Julien Smith.

RSS Readers ... click here to view the video.

A Talkable Brand is…

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Clearly my WOM Enthusiast hat is on with this post.


Picture 12

WOMMA recently announced its 2009 Summit in Las Vegas on Nov. 19 & 20. The conference theme is CREATING TALKABLE BRANDS using the original social media (word of mouth) and digital social media (online stuff).

The conference agenda is still being put together. If you have a case study that showcases how a brand uses WOM and Social Media to become talkable … submit a proposal to get on the agenda. Act now, the deadline is Aug. 31.

WOMMA wants to know what we think a talkable brand is.

WOMMA has their take (video). I have my take. No doubt you have a take. Share it, like this video shares my take…


RSS Readers ... click here to view the video

FREE: The Future of a Radical Price | a dramatic reading

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Chris Anderson's FREE: The Future of a Radical Price gets the gets the Marketing Masterpiece Theatre treatment. (Expect an inane dramatic reading of very smart book.)

RSS Readers ... click here to view the video.

Give your Speech, Change the World | a dramatic reading

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Has it really been three years since the last episode of Marketing Masterpiece Theatre? It has. In ’05 and ’06, I had some fun doing dramatic readings of business books such as … The Long Tail, Brand Hijack, and How to Become a Marketing Superstar.

Hopefully you’ll find the humor (and smart knowledge nuggets) in this go-round of Marketing Masterpiece Theatre. All new episodes all week long. Enjoy!

Today's episode is a short reading from GIVE YOUR SPEECH, CHANGE THE WORLD by Nick Morgan. A must-read book for anyone responsible for giving presentations.

RSS Readers ... click here to view the video.

Batter Blaster

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When I finally got around to using Batter Blaster, one word came to mind … PURPLE … as in PURPLE COW. This video ditty explains …

RSS Readers … click here to view the video ditty



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