Brand Central Station

This is from a great post directed to freelancers on the Freelancefolder blog.

Freelace writer Laura Spencer provides a list of 45 questions for every freelancer to ask a new client (the entire list is posted after the jump).  Looking over that list, though, it occurs to me that many (if not all) of these questions are relevant things for an account manager to ask an agency – or internally – for a marketing manager to ask a new “client” inside their own company.

Some of these questions might be considered a bit mundane.  In my experience, new client relationships are often filled with the excitement of the “win” for the agency and the high expectations of a client who has been wooed by great creative and charming personalities. 

Questions like “Which is more important, quality or speed?” seems to have the potential to take all the romance out of the relationship right away.  (Double entendre intended.)

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One of the greatest challenges (and most fun thing) about being an account manager is that clients often look to you when it comes to growing their business. They want answers to their questions or, at the very least, suggestions on what to do next.

And the one thing they don’t want to hear is that everything they’re planning to do looks great and you’d be glad to implement it for them.

(Aside: I used to work with a creative director that called AE’s who just nodded in agreement with the client and brought the work back to the agency, “parrots” and had a picture of a pirate with a big, nasty parrot on his shoulder. I knew when I was in trouble for being too complacent because my name would be pinned to the parrot.)

As a point of fact, you owe it to your client to think about all the markets that hold potential for them. If that requires a little extra research (whether it be reading or actually spending time in the community), that’s a small investment to make in a relationship. Exploring the possibilities presented by ethnic or minority markets is a great example.

Once you understand the media landscape for various ethnic groups, you should begin to see the potential for opportunity. Broaching the subject with your client, however, can be a tricky proposition. Here are some tips on how to do that:

1) Collect market information from the client that would help you identify the nature of the relationship they currently have with a specific minority group.2) Investigate the market potential online. There are plenty of online databases and resource groups that can provide insights into almost any aspect of the major ethnic groups in the USA.

3) Talk to/interview a handful of people that fit the ethnic profile of the group you’re interested in. Try to capture, in their words, why your client’s product or brand is important to them.

4) Prepare a presentation that explains the differences in perceptions and perceived advantages of your brand (and, ideally, the competitions’ brands) from the point of view of the ethnic market(s) in review.

5) Find allies (other agencies, freelancers, journalists, etc.) who accurately represent the point of view of the customer. Make sure they’re integrated into your team.

When you present your findings and recommendations, be prepared for a two-part reaction. At first, the client might seem interested and gracious – at least in the presence of guests. After your allies leave, though, be prepared for the hard questions to come out.

Clients who are comfortable with the white, mainstream media, are often uncomfortable with considering ethnic marketing opportunities. Ironically, the initial reaction (and it’s more common than not) is that marketing through ethnic media or with customized messages is “pandering” to one group or another. In fact, this couldn’t be further from the truth.

You need to point out the benefits of cross-cultural branding and the application of the same principles inside our own country.

Despite their own discomfort, clients will take your recommendation under consideration. Be prepared to play a waiting game on this kind of opportunity, but keep bringing it to the forefront – especially if a competitor takes advantage of the opportunity before your client.

The sooner you can get your client thinking about the entire market, the better your client will fare (and the more work for your agency and its partners).

Doing the right thing isn’t always the easy thing to do. In fact, it rarely is.

The majority of American businesses today only show a passing interest in understanding and pursuing ethnic marketing opportunities. In a recent survey conducted by Brand Central Station, 59% of the business executives we interviewed said they would rate their own company’s efforts in this area between “Poor” and “Okay.” Hardly a ringing endorsement.

“We simply do not target ethnic/minority clients,” explained one account manager for an advertising agency in the Midwest. “That is not typically a factor in seeking new business. However, if we would, we would be at a perceived disadvantage since we are a white, male-owned business, with no ethnic/minority employees …” (more…)

The medium you choose can be just as important as the message when making your brand’s appeal to minority markets. Spanish-language media in the United States is continuing to grow – reflective of the dynamic growth of the market domestically. Similar statistics for market and media growth can be found in the Asian-American community.

Can companies that specialize in selling to other businesses find legitimate opportunities related to cultural diversity and ethnic markets?

The question itself indicates a subtle ethnic bias that most white business people can’t see. But while white business owners may suffer from an ethnic blind spot, minority-owned businesses have more to do to bring attention the opportunities they represent.

First, for traditional B2B companies (usually owned and operated by whites), understanding the diversity of the American business culture as well as the consumer culture can yield a fresh perspective and new opportunities in a variety of areas:

Employment – Minority groups today account for 25% of the US population. That number will more than double over the next generation. The ethnic shift is likely to be even more pronounced among those people of employable age.Employers who recognize this trend and work to develop corporate cultures that are more open and accessible to people of various ethnicities will be positioned to review and select from a significantly larger talent pool of job applicants. An additional benefit to such an employer would be the positive “word of mouth” within various ethnic communities – resulting in a likely reduction in employee recruiting costs.

Client Relations – Just as it is likely most B2B companies’ own employment base will change over the next generation, it is fair to assume the employment profile of their clients’ will change over time as well. The ethnic/cultural background of your key client contacts may necessitate a change in your company’s approach to cultural diversity.

Growing and Start-Up Businesses – Today, ethnic businesses are growing faster and increasing spending more quickly than the national average for all businesses. Minority start-ups outnumber white start-ups by a ratio of nearly 2:1. Sales for minority businesses are growing at a dynamic rate of nearly 24% per year.

Healthcare and Related Markets – The health needs of some minority groups are more pronounced in some areas (e.g. Hispanics and the incidence of diabetes, African-Americans and the incidence of heart disease). While these tendencies have been identified by several drug and device manufacturers, there are several opportunities for companies who produce goods that support the lifestyle changes that go along with treatment. Food companies, financial service companies, technology companies, etc. can all benefit from getting to know and understand the needs of these markets in greater detail in order to stimulate more sales and product use.

Pull-Through Opportunities – Identifying cultural opportunities in the end-user market can create new business opportunities with existing customers.

For minority-owned businesses, there are a few significant challenges they need to overcome in order to break through the “checkmark” mentality so many white-owned businesses have when it comes to accommodating ethnic markets and minority-owned businesses.

Awareness – Opportunities in minority and ethnic markets need to be brought
forward and explained to companies that have traditionally operated in “the mainstream.” And with the mainstream, nothing succeeds like success. A coordinated push of positive examples and subsequent opportunities will get noticed by the more savvy entrepreneurs.Education – Many white business owners and managers are intimidated by cultures they don’t understand. The only way to overcome those fears is to spend the time required to educate and inform them.

Partnership – True partnership is a two-way street. Inter-racial business relationships need to start out slow, allowing the white partner to catch on and catch up. Both parties need to make their intentions clear and to put matters of difference on the table so they can be addressed. A clear understanding of the give and take of the business relationship will help make a stronger, working partnership when things finally hit their stride.

Finally, it’s up to all of us to recognize and celebrate the success stories. We all need to do what we can to commend businesses that find new ways to work together and benefit from the partnership. These stories will be of interest to the media and to the public because as the population continues to diversify (ethnically), the media will be searching for ways to entertain and inform that new public.

In the B2B segment, there is a distinct opportunity to lead consumer trends and benefit both strategically and economically as a result.

In the past, most of America was white and European. As people immigrated to this land (either on their own will or in chains as slaves), America grew to be “a great melting pot” of cultures. Ethnic groups were expected to assimilate into the “mainstream.”

Nobody was supposed to rock the boat.

I suppose that theory works great if other than their religion or maybe an accent, everyone looks pretty much the same. The problem is that by the mid-1800’s immigrants to this country were looking different than the white majority. Freed slaves were black. Laborers from the orient were from a variety of Asian cultures. Hispanics came from a tremendously diverse array of countries and cultures. And none of these groups wanted to melt into the American culture and lose their identity in the process.

By the time of the civil rights movement of the 1960’s, it was pretty clear that America was moving from “melting pot” to “multi-cultural society.” But by the time of the riots and protests about and for civil rights, much of the white population of America decided to ignore the situation, safe in the assumption that they would always be in the majority.

Well, that equation is about to change.

According to the US Census bureau, the US Hispanic population is growing at a rate that will make it the number two population group by 2010. By 2040, the US population will be so ethnically diverse there won’t be a majority race. Whites will be in the minority just like everyone else.

Economically speaking, minority households are catching up to white households as well. According to the US Small Business Association, African Americans, Hispanics and Asians currently represent about $600 billion in annual buying power. Minority-owned businesses are growing faster than the national average, as well. Sales dollars for minority businesses grew by 24% each year according to a study conducted by Conning & Company.

The market is growing. That much is clear. But why and how does a business engage in a campaign directly aimed at this market? Let’s start with “why”:

The growth of minority businesses and affluence in minority markets is appealing, yes, but businesses often raise concerns over the fragmented nature of the minority market and the many, many languages that pose a barrier to clear confusion and work towards understanding.

The fragmented nature of ethnic markets in the United States can actually work to a marketer’s advantage. In many cases, the specific market in question often has one or more media serving it. Although finding the media might be a bit of a challenge, working with the media to gain coverage (editorial) and to purchase space (advertising) should be relatively easy. Once you’re partnered with the media, you are in position to get the market’s attention. All you have to do is make sure your message is relevant.

Andrea Ogunkoya, a business writer and author of the book “Minority Marketing” adds emphasis to the idea of relevance:

“…marketing agencies have largely got no idea how to target this sector and have been getting it wrong for years. In order to understand this market, you have to be willing to invest in them. Not dusting off the crumbs from your marketing budget, but breaking bread with them.”

The good news is that media placements in media owned and targeting ethnic minorities has higher viewership/readership numbers inside their community. More than 70% of ethnic minorities polled recently, said they considered their community paper/media outlet to be their local news as opposed to the mainstream networks.

As you work towards establishing a clear idea of where the market sits and the unique obstacles it faces when it comes to forming a relationship with your brand, you’ll see opportunities to reach out and connect with this market. Here are some examples of what other companies have done to establish a connection into the ethnic market (courtesy of the SBA):

• Carnival Cruise Lines has dedicated an entire cruise ship called the Fiesta Marina to the Hispanic Market.
• J.C. Penney offers linens with bold African prints and cosmetics designed for women of color.
• General Mills became the first cereal company to introduce a product specifically for Hispanic consumers. It’s called Bunuelitos after a sweet Mexican pastry.
• Several insurance companies worked with their minority agents to develop products and services specifically for those markets.

And the list goes on. What are you going to do to get your brand on the list for next year?

Technorati Tags: Marketing, Advertising, B2B Marketing, Ethnic Advertising, Minority Marketing, Client Management, Leadership, Creative Thinking, Culture, Cultural Diversity

This information is (c) 2006, Brand Central Station, all rights reserved. If you are interested in receiving news and analysis directly from BCS, please log onto our website.

We love it when a brand extension hits it big-time or crashes and burns. It’s exciting. It’s dramatic. It’s also not about the product/extension itself.

As a business strategy, deciding to extend an existing brand is sound but wrought with potential disaster. With every brand extension, you are putting all of your chips on the table and betting against the house.

Anything short of a home-run could be construed as a defeat. Successes, like the Apple iPod or Kellogg’s newly revitalized Eggo’s are noteworthy. But the failures, like water-filled bras from Evian, can be devastating. (more…)

Very often, when it comes to presenting out-of-the-box, creative thinking to clients, the biggest sales job has to happen inside the agency.

It’s a shame, really. Clients love to see innovative thinking but many times the folks that work back at the agencies (both PR and advertising-focused) get into a project mindset that is great for getting work out the door but not so good when it comes to generating the next big idea. Clients often refer to creative burn-out as a reason for initiating new agency searches.

The benefits of unsolicited innovation for a client can be difficult to define on the P&L and even harder to find with the account team. Creating new advertising campaigns, conducting unsolicited research or pestering vendors for new ideas or special deals takes time and effort. An effort that is often minimized or overlooked entirely by the account manager.

It’s tough enough to do the work; to do it with very little information, no client input and limited resources is almost impossible. To then have the effort dismissed by an account executive is often the final straw. The only consolation for those team members who get diss’d is the realization that AE’s who commit this error against the account team are hurting themselves worse than they can imagine.

It’s time to turn this situation around and lead the team to victory.

Account managers first have to understand the value of having a client perceive the account team as interested, engaged, passionate and knowledgeable about his business. The easiest – and best – way to do this is to present new ideas, concepts, research and programs to the client for his review and comment. There shouldn’t be a separate charge for this service. If you manage your budgets right, there should be plenty of opportunities for the team to think about the client’s future and then use available knowledge assets to conceive possible executions.

The account team has to recognize the value of having a client who is convinced of their interest, passion and knowledge of his business. Clients who love their agencies don’t leave them. And with an average shelf-life of 3 years, any client who is happy with the nature of the partnership he has with his agency is likely to stay past that deadline. That spells job security and more for all the members of the account team, not just the AE.

Initially, unsolicited ideas should be presented to the client as a teaching opportunity. Present the ideas to the client with a request to learn why it is or is not a good idea for him. This soft-sounding procedure will help you identify where the client sits politically inside his organization as well as how much the client knows and understands about the state of his industry or profession. This is a border-staking expedition and everything you learn about the client (i.e. his likes and dislikes, his areas of interest and expertise, the budget and political challenges he faces) should be relayed to the account team for future reference.

As time goes by, the ideas and concepts generated by the account team will come closer and closer to the strategic goals of the client’s organization and (hopefully) will fall within the client’s expectations of budget and production timelines. That’s when, as the account manager, you’re able to start making the change from just presenting the work to selling the work. If you do your job well, new ideas will create referral opportunities for you within the client’s own organization. That business expansion strategy can be both profitable and tremendously satisfying.

Both to the client and to your account team back at the agency.

Why are solutions to problems called “Silver Bullets”?

I suspect it has something to do with the old, traditional legends that demons, giants and (after 1941’s The Wolf Man) werewolves could be killed by the shot of a single, silver bullet. In the 1930’s and 40’s, The Lone Ranger shot silver bullets at the bad guys and did good deeds for everyone else. (more…)

There is no question that innovation is important. The participants in our BCS polls agreed (as we suspected they might). More than 80% of the companies we surveyed said their businesses were more innovative than they were just one year ago.But why?

“It’s the key to being competitive,” explained Denise Dorman of Write Brain Media in Chicago. Dorman works with a variety of clients located around the country, helping them to spot the innovative and creative, then bringing it to people’s attention.

Her statement was echoed by several others survey participants. “Change can bring success on many fronts,” wrote one manager from a national retail chain. “Merchants, marketing and our stores have the responsibility (for innovation).”

But businesses must be careful to avoid innovation without reason. Product innovation without suitable backing of customer insights can lead to some unpleasant consequences.

Consultant, author and speaker, Reva Nelson puts it this way:

“… what happens with innovation gone wrong, innovation for its own sake?

It forgets its roots, it moves too far away from the main trunk, it tries to disconnect and communication gets shot to hell. There are some consultants, managers and CEO’s who forget about connection and communication, and think innovation is an end to itself. It’s not. All innovation, like all change, must be well-communicated. It needs to take its time, and stay connected to the source.”

Nelson uses the example of downsizing as a perfect example of innovation run amok. The backlash from losing some really good people and vital institutional memory can quickly erase the financial benefits of the business decision.

It’s also possible for technological innovation to outpace the ability of the users to learn and adapt. The result is frustration, a loss of productivity and the possible loss of talent due to frustration.

The key to making innovation work is to make sure there is plenty of communication both internally and externally. Expectations need to be set and managed and, most importantly, benchmarks need to be clearly set so those living with the innovation can recognize the progress they’re making.

Technorati Tags: Marketing, Advertising, Branding, Brand, Leadership, Client Management, Innovation, Creative Thinking

This information is (c) 2006, Brand Central Station, all rights reserved. If you are interested in receiving news and analysis directly from BCS, please log onto our website.

Staying focused on your own enterprises innovation efforts is important, sure, but how do you keep track of what your competitors are up to? Competitive intelligence is an important facet of any innovation program – and your contacts in the media can help.

Competitive intelligence programs are on-going efforts and are intended to give owners and management an on-going look at the marketplace so they can make decisions regarding new product developments, marketing, customer retention programs and the like. The media can play a big role in these programs – both in terms of what they report and what reporters actually know when contacted.

Here are some ways to do that:

1) Set up competitive clipping protocols. If you use print or online clipping services, set up searches for key competitors or their brands. Be careful when selecting keywords or search terms because you don’t want to have to search through the searches when you get them back at the office.

2) Create a historical view of your competitors’ media presence. Look at where they’ve been running ads and announcements in the trades and then compare those placements to the publications’ editorial calendars. It’s likely you’ll find some patterns. In the B2B space, especially, it’s common for advertisers to try and time their advertising creative with editorial coverage to increase the effectiveness of their ad. Knowing these patterns may help you predict where the competition is likely to strike next.

3) Use Google Alerts and other online search-oriented tools to scan the web. These tools are free and easy to use. There’s no excuse not to.

4) Engage in an active media relations program. The more time you spend with reporters covering your industry, the greater the likelihood you’ll hear about new market developments when they occur. Reporters have a job to do and sources to protect, of course – you’re not going to get them to violate those cardinal tenants. But being on good terms with a reporter can mean that you’re one of the first to be called when a new idea (a.k.a. a trial balloon) gets floated by the competition.

5) Work with the media to establish benchmark research (and follow-ups) on your sector or on key issues related to your sector. This kind of effort takes time and money but is generally very useful. In most cases, if the client pays for it, the results are kept confidential although the media generally gets the rights to publish an overview of the findings.

Remember, it’s the media’s job to uncover and report the news. It’s your job to find a way to stay on top of it (or, ideally, one step ahead). A good overview of competitive intelligence programs can be found here.

Not all innovation is technology-driven – sometimes re-thinking how things are done can bring real value. And the best inspiration for finding that new line of thought is the customer (whether they are external or inside your own company).

Charlotte Sibley, with Shire Pharmaceuticals, uses customer reaction as a barometer of innovation inside her own company. “… if I get a lot of pushback from internal customers, I know I’m pushing the innovation envelope,” she says.

Blogger Dave Pollard provides a list of non-technological ways of looking for innovation (from his How To Save The World blog:

• How you design your core offerings (e.g. the Mercedes Smart Car’s unique and imaginative attributes)
• Product system: How you link and/or provide a platform for multiple products (e.g. the Microsoft integrated productivity suite)
• Core processes: How you create and add value to your offerings (e.g. Wal-Mart’s reinvention of retailing as shelf-space leasing)
• Enabling process: How you support the company’s core processes and workers (e.g. Starbucks’ premium wage and benefits packages to attract superior staff)
• Service: How you provide value to customers and consumers beyond and around your products (e.g. Singapore Airlines’ thoughtful and pampering extras)
• Delivery Channel: How you get your offerings to market (e.g. Martha Stewart’s multi-media ways of getting her ‘home’ stuff to your home)
• Brand: How you communicate your offerings (e.g. Absolut vodka’s “theme and variations’ advertising concept)
• Customer experience: How your customers feel when they interact with your company and its offerings (e.g. the Harley Davidson owners’ community)
• Networks and alliances: How you join forces with other companies for mutual benefit (e.g. Sara Lee sticking strictly to branding and outsourcing all manufacturing)
• Business model: How you make money (e.g. Dell’s pay-in-advance for a custom-made PC model).

If you’re interested in investigating the concept of customer-driven innovation further, you may want to check out this white paper by Howard Moskowitz, Ph.D.