PJA Blog: The Complex Brand

In recessionary times (see under GE, Earnings Statement, 4.11.08), companies nearly always become more conservative about the value of marketing. That’s no surprise, though I’m still taken aback, working through my third economic downturn in this industry, at how quickly the winds shift. Just yesterday I heard about a client whose $10 million marketing budget had, in the course of five months, been whittled down to just north of $900,000 at the lower edge of the range.

So is marketing an investment or a line item expense, and what business problems can it solve? Local academic marketing programs often ask someone from PJA to come in and present the BtoB perspective on these eternal questions (see under John Wanamaker, advertising budget, which half is wasted), and though these are basic tenets of marketing, it never hurts to be reminded during an economic period when business common sense is often the first thing to suffer.

Here’s the list our head of interactive plans to present at an upcoming marketing class in a lecture hall near you: Read the rest of this entry »

Now that we are ‘officially’ in a recession, the realization of which typically means that we are in the middle of or on our way out of one, we’re seeing a curious trend here at the agency. Companies that we’ve never talked to, companies we haven’t heard from in years, and companies we’ve never heard of, period – are asking us to help them choose a position. It might be a new position or it might be an updated position to suit these less-forgiving times.

In some cases these companies have their business strategy set but no story with aspiration or vision that sits above the strategy and unites every business unit. As a result they can’t get the right valuation from analysts or they’re stuck in the wrong competitive set. In other cases the company has chosen a position and is interested in a gut-check, hiring us on a consultative basis first. (These ‘trial-size’ contracts are a classic sign of an economic downturn.)

In other situations the company’s markets are consolidating by the minute, driven by the entrance of a behemoth competitor (on Mondays and Wednesdays insert “Google,” on Tuesdays, Thursdays and Fridays insert “Microsoft”) and they need an irrefutable statement of why choosing best-of-breed still matters over giving in to the inevitable one-stop shop.

In still others, the company is growing too quickly to come up with a new position that works for the next stage of growth, realizing that if they don’t, they’ll put the brakes on that growth because they just don’t pass the smell test of the CXO customer versus the regional VP they’ve sold to successfully in the past. Read the rest of this entry »

As much as I admire and like a lot of industry analysts we talk to (we’re actually a Gartner customer: makes me feel wistful that some of these people get to think about one industry niche 24 x 7 x 365), there’s always a Cassandra-like note in their reports, not unlike a Tom Peters book. Something along the lines of, “If you don’t undertake these 11 priorities this quarter and reinvent your business process platform by end of year, you’ll be seriously behind your competitors or pushing up the daisies. Et cetera.”

Which would be a serious problem if a lot of companies didn’t have those ‘job’ things to do. One antidote to these pronouncements came recently when I was interviewing a CEO about recent job cuts and whether he was worried about retaining his big stars. His response: “Most of them don’t have the option to go, honestly. And of the few that do, half of those are subject to the same inertia that everybody is subject to, so they’re not going anywhere.”

As you probably know, Forrester now creates a lot of reports for “marketing leadership professionals.” Or as I thought to myself on first seeing one of these documents, “Oh, great. They’re not satisfied making my clients feel guilty about falling behind; now they’re doing the same thing with agencies.”

All this throat-clearing aside, I have read and can recommend a recent report called The Connected Agency by Mary Beth Kemp and Peter Kim that’s getting a lot of buzz (and yes, you can check the records: I did pay my $279 for it). Read the rest of this entry »

Our friends at Cymfony, now TNS Media Intelligence/Cymfony (proving a theory of mine that all CGM companies will ultimately be acquired) have just released a new survey of 60 marketers at companies in North America, France, and the U.K.. The report concludes that when it comes to social media, marketing agencies are “ill equipped,” to quote AdWeek and “don’t get it,” to quote the survey report.

The report brings back the words of an AT&T executive who is a “friend of the agency,” as the saying goes. In essence, she said that “agencies talk a good game about integrating print and online, but I’ve been hearing it for years and I just don’t see it.” Well, she used more PG-13 language than that, but you hear the same kind of frustration as we’re now hearing about social media.

Although BtoB has traditionally lagged consumer markets in marketing innovation, we find that social media provides a great opportunity to step out and “punch above your weight,” since larger companies tend to arrive at the party later. Of course, there are a few ground rules to be laid down after, to quote Jim Nail from Cymfony, we “put up a good presentation about what social media is.” In no particular order, these are: Read the rest of this entry »

A recent Network World survey supports what PJA’s second wave of original research with ITtoolbox showed late last year: IT professionals are increasingly taking up the tools of social networking – LinkedIn, MySpace, Digg, Stumbleupon, Facebook, etc. – and using them for business purposes. According to the new survey, nearly half of IT professionals use social networking for business. As the Forrester analyst put it, “We don’t really go to Toastmasters anymore.”

As available content becomes richer, especially on YouTube, I think we’ll see an even sharper rise in the number of business users making the site a go-to destination. MySpace activity may be dropping, as the recent BusinessWeek article “Generation MySpace is Getting Fed Up” pointed out, but that drop seems pretty closely linked to boredom with static profile pages and annoyance with ads. Which is precisely the point about why IT and life science audiences are using social media more these days: Content, not ads. Information, not self-promotion. YouTube remains a terrific way to get any technical content out to the world without the need for AAA production values. Anyone who has been sent the link for a live demo of root canal surgery knows the sky is the limit with sharing (maybe that should be over-sharing) and education using video online.

In our BtoB world, several of our clients are considering programs that are less focused on messaging themselves and more focused on a point of view about content – content that relates to their technology in action or to the larger lifestyle interests of their customers – so it’s no surprise that appreciation of these channels continues to grow as people discover their ease of use.