Tag Archives: marketing communications

The Real Price We All Pay for “Brand Journalism”

propaganda babyThe historical roots of journalism, now encompassing all mass media, were nurtured by its role as The Fourth Estate; the independent public watchdog that keeps in check the three major democratic “estates” of power (in Britain the houses of Parliament, in America the three branches of government). So in spite of the great amount of attention it pays to murder trials, royal weddings and the lives of celebrities, the media plays a critical role in a democratic society; and to function properly it must be objective, unbiased, transparent and independent.

One current challenge to journalism’s mandate is that the line between news and entertainment continues to erode. All media sources compete for the same eyeballs, so speed has become more important than accuracy in reporting, and there are no rules regarding how the news is gathered. The journalist’s role has shifted from fact-based reporting to opinion-based commentary. Journalism has morphed into “communitainment.” And Edward R. Murrow is not pleased.

Erosion of journalism’s mandate has accelerated with the growth of “brand journalism,” which is content specifically created to promote commercial interests, very often in a non-transparent manner. Promotional messaging that for decades had been identified and quarantined by the media as ADVERTORIAL content – now safely re-branded as “sponsored” or “native” content – has gained legitimacy as bona fide editorial information worthy of placement in the New York Times or the CBS Evening News.

We live in a world where our knowledge, perceptions and culture are shaped by Google searches, Facebook posts and YouTube videos, and where technology and economic forces have created the perfect Petri dish for commercial agendas to overwhelm the volume and attention given to objective editorial interests. So is there a price to be paid for the loss of a free and independent press?

A few years ago, veteran journalist Bill Moyers explained what’s happened to journalism this way: “Our dominant media are ultimately accountable only to corporate boards whose mission is not life, liberty and the pursuit of happiness for the whole body of our republic, but the aggrandizement of corporate executives and shareholders…These organizations’ self-styled mandate is not to hold public and private power accountable, but to aggregate their interlocking interests. Their reward is not to help fulfill the social compact embodied in the notion of “We, the people,” but to manufacture news and information as profitable consumer commodities.” [Read Bill Moyers “Is the Fourth Estate a Fifth Column?: Corporate media colludes with democracy’s demise” in its entirety.]

As we continue to feast on mind-numbing, easily digested communitainment, and as we readily accept well-disguised commercialized propaganda as objective news and information…let’s keep in mind what we’re really giving up.

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Re-Thinking the “Best B2B Advertisement of the 20th Century”

the-man-in-the-chair-mcgraw-hill-885x1024In 1958, Gilbert Morris – an account executive at the Fuller Smith & Ross ad agency – created the, “I don’t know who you are,” business-to-business advertisement for McGraw-Hill Publishing Co. that 41 years later, in 1999, was named the “Best Business-to-Business Ad of the 20th Century” by Advertising Age’s Business Marketing magazine. Quite an achievement.

The iconic print display ad featured an executive in a bow tie hunched forward in a swivel chair, scowling into the camera. (In fact, Gilbert Morris himself was depicted as the executive in the ad.) To promote the practical value of corporate advertising, the ad’s body copy read:

“I don’t know you.

I don’t know your company.

I don’t know your company’s product.

I don’t know what your company stands for.

I don’t know your company’s customers.

I don’t know your company’s record.

I don’t know your company’s reputation.

Now, what was it you wanted to sell me?”

The 56 year-old McGraw-Hill ad concluded with this:

“Moral: Sales start before your salesman calls – with business publication advertising.”

What may have been a revolutionary B2B marketing concept in 1958 is now well understood by B2B marketers. Market awareness, brand impressions and 3rd party endorsements all matter. Sales and marketing must be integrated. We’ve got all that.

But if Gilbert Morris were writing ad copy in 2014, his advertisement would likely reflect very different marketing obstacles for B2B companies. Perhaps something like this:

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Confucius Say: Your Case Studies are Worthless

confuciusThe most noteworthy article on B2B selling was published in a 1966 Harvard Business Review article (#66213). In “How to Buy /Sell Professional Services,” author Warren J. Wittreich explains the differences between extrinsic and intrinsic selling.

Extrinsic selling occurs, according to Wittreich, when a B2B seller relies on successful work that’s been performed for other customers, as a means to validate the seller’s capabilities and potential ability to perform for a prospective customer.

The weakness of extrinsic selling is that it requires a prospective customer to make a leap of faith: to believe the service provider will provide a level of success that matches or exceeds the work performed for the seller’s past or current clients. Extrinsic selling is a “trust me” approach, employed by a great number of B2B product and service providers.

Conversely, intrinsic selling does not require a prospective client to base its selection of a seller based on work done for others. No leap of faith required. Instead, it engages the prospect in a meaningful dialogue that (1) addresses their specific situation; (2) demonstrates — on an immediate, first-hand basis — the seller’s understanding of the situation; and (3) validates the seller’s ability to help the potential buyer. Intrinsic selling provides buyers with a significantly higher level of confidence in the seller’s capabilities, and leads to an engagement or sale far more frequently and rapidly than extrinsic selling.

The B2B marketer’s task is to equip the sales force with methodologies and tools that help initiate and facilitate intrinsic selling. This goal is rarely accomplished through anonymous or identified client / customer “case studies,” which are widely used, that prospective clients rarely read, and often carry the same level of credibility as references on a job applicant’s resume. (Would a company ever publish examples of its past work that were not portrayed as highly successful?)

Create Tools to Engage Prospects

One example of effective B2B intrinsic selling involved Phibro Energy’s introduction of energy derivatives…which enabled large companies to manage price risk related to gasoline, jet fuel and heating oil. To capture the attention of CFOs of those companies, and to convince them that energy derivatives were a viable risk management strategy, Phibro’s sales force needed more than brochureware. A prospective client needed to understand exactly how energy derivatives would benefit his company.

To establish an intrinsic sales dynamic, Phibro equipped its sales reps with a worksheet that calculated the range and depth of the prospect’s energy price exposure. Then, by applying a sophisticated algorithm, the sales rep was able to show exactly how energy risk management could improve the CFO’s company’s balance sheet.

Phibro’s energy exposure worksheet not only enabled their sales reps to establish an intrinsic sales dynamic, it cast the sales rep in a consultative role, and positioned Phibro Energy as a resource that could help reduce economic risk and lower operating costs.

Marketers at most B2B businesses, as well as many B2C firms, have similar opportunities to build interactive disciplines and tools — both online and offline — that can empower their sales reps to leverage the power of intrinsic selling. In taking this approach, they also benefit from the wisdom of the marketing master, Confucius, who purportedly wrote:

 I hear…and I forget.

I see…and I remember.

I do…and I understand.

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The Attention Web: What B2B Marketers Need to Know

For B2B marketers who are too busy to keep up-to-date on every marketing trend and buzzword, here are a few thoughts on all the current noise about the Attention Web:

  • Attention as a marketing asset is not a new concept: Top-of-mind awareness has always served as a cornerstone of effective B2B marketing.  In their 2001 book, The Attention Economy, social scholars Thomas Davenport and John Beck proposed that in today’s information-flooded world, the most scarce resource does not involve ideas, money or talent. They argued that unless companies learn to effectively capture, manage and maintain attention – both internally and in the marketplace – they will fail. Here’s one way to understand what’s happening:

Attention Web

  • Pageviews, Likes, Clicks, Shares and Downloads do not measure engagement: Now that the advertising industry is using actual data to evaluate online behavior, smart B2B marketers can validate what they’ve always suspected about the metrics that are used to measure the effectiveness of the content they produce. There is now hard evidence that shows the number of clicks, comments, and shares are not indicative of how much time people spend engaged with the actual content. One recent study, reflected below – produced by Chartbeat and based on a boatload of data – demonstrates that there is no relationship between how often a piece of content is shared and the amount of attention the average reader will give that content. The good news for B2B marketers is that there are now editorial analytic tools that can provide attention and engagement metrics and insights.

article sharing

  • Attention, engagement and business relationships are driven by quality content: Beyond whatever products or services they sell, all B2B companies must establish credibility and trust with clients, prospects and referral sources. Initial inquiries and longstanding relationships are not nurtured by bombarding target audiences with aggregated content from 3rd parties. The most successful B2B firms only associate their brand with highly relevant content, most often home-grown, that supports their value proposition, stakes out intellectual territory, avoids self-serving claims and truly differentiates their company from competitors. Less can be more, when it comes to B2B content.

 

  • Don’t rely on the internet exclusively to generate market attention. For B2B firms, direct communication (email, snail mail, face-to-face, etc.) with target audiences remains the most effective means of gaining and maintaining engagement. If you’ve created high quality content, ensure that it earns an adequate marketing ROI by consistently putting it in front of the right people; don’t expect them to find your content by themselves on your company website or blog, on LinkedIn or through Twitter. Those online channels should be considered a secondary, rather than the primary means, of generating attention and engagement through content.

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Peter Drucker on “The Four Roles of the CFO”

Dr. Peter F. Drucker, Management Thought Leader

In the early 1990s, Highlander Consulting was engaged by Phibro Energy to help introduce energy derivatives to Chief Financial Officers at corporations with substantial exposure to fluctuations in oil, gasoline and jet fuel prices.

As part of an integrated marketing strategy, management legend Dr. Peter F. Drucker, then serving as a professor at Claremont Graduate School, was engaged to serve as keynote speaker at the Phibro Energy Risk Management Forum, held at The Metropolitan Club in New York City.

Dr. Drucker, who passed away at age 95 in 2005, chose to speak on what he called, “The Four Roles of the CFO.” His remarks before more than 200 CFOs appear to be as relevant now as when he spoke to them nearly 25 years ago.

Here are some highlights from Peter Drucker’s presentation, which can not be found in any one of his 39 books:

The CFO as Information Officer:

“The original role of the CFO was to be the information officer of the business…Accounting, which is information, is changing today more than it has changed in the last hundred years…CFOs will have to make an important decision for their companies not very far down the line, on how to get rid of the pernicious rift between information that is concept-focused, which is accounting, and information that is transaction-focused, which is computerized information…

“The notion that you should split these two universes of information between the Chief Financial Officer, who is responsible for financial information, and the Chief Information Officer, who is responsible for non-financial information is not a good idea…

“The only reliable information we have available to us basically is “inside” information, mostly in our accounting systems. And yet, the events that really determine the success of business do not happen on the inside…So CFOs have a big job ahead: bringing together information channels, and learning an accounting system that’s going to be very different. It will require an ability to get “inside” information by manipulating figures quickly, and combining it with “outside” information, which is largely anecdotal today.”

The CFO as Financial Advisor:

“The Chief Financial Officer must think about the financial consequences of projected policies and actions, not only in terms of costs but in terms of the allocation of scarce resources…So the chief financial adviser’s job is to think about opportunity costs, and most CFOs don’t do this…As a CFO, you must think about what a policy or project is likely to return. Also think about the consequences if it doesn’t work…So the chief financial adviser basically is a conscience, a financial conscience.”

The CFO as Productivity Manager:

“There is a third CFO function, which is managing money for the business. I’m not talking of the treasury function; that is only a small part of it. The biggest part of this involves managing the productivity of capital…It’s my view that you can increase the productivity of capital in any organization three percent a year compounded, by just plain hard work, provided it’s allocated properly. And this is a function which is not, bluntly, on your professional agenda today…

“Top management doesn’t think financially. They think in terms of next quarter’s dividend, and that’s not thinking financially. They don’t think in terms of the financial impact of business decisions and the business impact of financial decisions. And that, I think, is your biggest educational job ahead.”

The CFO as Asset Protector:

“The fourth dimension of the CFO’s role is the preservation and protection of assets. This is a duty of a company that benefits not only the shareholders, but also society…The stupidest thing you can do is attempt to predict the future. Brilliant people have seen that those who predict eventually come to grief. Truly brilliant people understand that they must make external fluctuations irrelevant to their business…

“The protection of assets involves making sure that the risks over which you have no control are managed, and do not interfere with the conduct of the business. Losses based on fluctuations of commodities are no longer permissible, any more than it is permitted to have a factory burn down without insurance coverage. These are manageable risks.”

If you’d like to receive a copy of Peter Drucker’s complete remarks at the Phibro Energy Risk Management Forum in 1991, just shoot me a note.

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Client Newsletters: Empty Suit of the B2B Marketing Mix

Most Client Newsletters Deliver No Tangible Value

Most Client Newsletters Deliver No Tangible Business Value

Client newsletters are the most widely used, often abused and hotly debated B2B marketing tactic for professional services firms of any size. Here are three highly subjective myths and realities to help your firm determine whether it’s a worthwhile tool, or how to improve your current newsletter.

MYTH #1:        Your Firm Needs a Client Newsletter

Marketers want you to believe that your firm needs a client newsletter. But traditional newsletters – containing commentary ranging from tax legislation to new technology, or who’s joined the firm – are not a marketing necessity. In fact, at many firms their client newsletter is a marketing albatross. Each issue involves a frustrating hunt for timely information of genuine interest that has not already been provided to clients by another news source. Some firms avoid this pain by slapping their logo on boilerplate content purchased from a 3rd party, but those firms can pay a bigger price, in terms of brand damage. Canned content says to target audiences, “We value our relationship, but we don’t really care enough (or know enough) to produce our own newsletter.”

REALITY #1:     Your Firm Needs to Drive Top-of-Mind Awareness

The intrinsic purpose of tactics that communicate with clients, prospects and referral sources is to reinforce the perception that your firm is smart, trustworthy and prepared to help. Beyond keeping and growing existing clients, your primary marketing goal is to drive top-of-mind awareness with target audiences. That way, when a prospect is seeking assistance, there’s a greater likelihood your firm will be selected, or at least will be put on the “short list” of candidates. If that’s the goal, then consistency and quality of the contact are critical; neither of which necessarily require a newsletter format to accomplish.

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MYTH #2:        People Want to Learn About Your Firm’s Success

It’s nice to think that clients and prospects really care about your firm’s growth and accomplishments. The sad truth is that your success is more important to your competitors, and to current and prospective employees than it is to clients who generate revenue for the firm. Blowing your own horn can also backfire. When your firm touts that a senior partner has just published a book and was a guest on CNBC, your target audiences may wonder why that partner isn’t focused on client matters rather than self-promotion, or whether the cost of his book’s publicity tour will result in higher hourly rates.

REALITY #2:     Your Clients, Prospects and Referral Sources Care about Themselves

Understanding that all people are self-interested can make you a better marketer. Rather than creating newsletter content that’s based on what you know, on what you’ve done or on what you can do, focus instead on the ideas, talents and accomplishments of your target audiences, regardless of whether your firm played any role in their success. This is a very tough concept for many B2B firms to understand and embrace: that the most powerful form of thought leadership does not involve pushing out your own ideas. Instead, it involves deciding what ideas merit the attention of your target audiences, as well as what voices are worth listening to. True thought leaders seek to manage the conversation, not to control it.

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MYTH #3:        A Newsletter is a Cost-Effective Marketing Tactic

The old saw, “Cheap is dear” rings true when it comes to newsletters. If it’s created in-house, few firms actually track the hours required to write, edit, approve and publish their newsletter. If it consists of cut & paste content, few firms consider the cost of producing a newsletter that very few people will read or respect. Regardless of content, only a small number of professional service firms proactively work to expand their newsletter’s reach, to maintain an adequate CRM capability, or to properly leverage readership analytics from open and click-thru rates, if their newsletter is delivered online.

REALITY #3:     Your Marketing Requires More than a One-Way Conversation

Newsletters are one-way conversations. A fundamental marketing objective is to engage clients and prospects in a conversation regarding their specific needs and opportunities. Despite the buzz regarding social media, that channel can also fall short in terms of engagement. If your firm’s traditional and social media marketing tactics do not serve as catalysts to drive Face-to-Face discussions and Word-of-Mouth referrals, then their “cost-effectiveness” can never be measured on a meaningful basis.

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Stop the Insanity. Fire Your PR Firm in 2014.

The attribution is unsupported, but Albert Einstein is often credited with the quote: “Insanity is doing the same thing over and over again, and expecting different results.” Its source notwithstanding, the axiom applies perfectly to the great number of companies that retain PR firms, year after year, to generate publicity that will have little or no impact on tangible business outcomes.

Over the past 5 decades, to rationalize hefty monthly fees, the PR profession has successfully promoted three underlying assumptions:

  • Any publicity is good publicity.
  • The more publicity, the better.
  • Publicity generates revenue.

Here are just a few reasons why it’s insane for most businesses to base their marketing strategy on any of those assumptions:

  1. Lots of Media Exposure is Worthless. The “worthless media” category can include one-off quotes or mentions in round-up stories that also reference your competitors…if you’ve gained no unique mindshare.  It can include appearances on network and cable TV…if the topics have a short shelf-life, or are unlikely to be of interest to target audiences.  And it always includes exposure in advertorials (regardless of the sponsoring publication’s stature) and feature articles in pay-to-play vanity publications…because you gain no credible 3rd party validation.
  2. Counting Media Clips is a Zero Sum Game. PR firms often justify their value by the sheer volume of media exposure they generate…regardless of whether it stakes out intellectual territory, supports a client’s value proposition, or differentiates them in the marketplace. The goal should be to create an arsenal of effective credibility tools; not simply to generate clippings to hang like hunting trophies in the “Media” section of a website.  This zero sum game is also played in social media, where scorecards of “likes” and “followers” are used as hollow substitutes for meaningful business metrics.
  3. It’s All About Merchandising. Business leaders must address two key questions in advance of seeking any publicity: “1. What type of media exposure will benefit us most?” and “2. If we gain that exposure, what will we DO with it?” Responses to Question #2 must provide clear direction regarding how it will support the firm’s sales and marketing strategy; how it will be used to drive leads; how it will initiate meaningful conversations with clients and prospects; and how it can be leveraged to gain other opportunities for targeted exposure.

Most PR firms fail to deliver on the potential of their craft because performing it correctly requires really hard work, takes time, and demands accountability for business results. Your role as a responsible client requires that you hold your PR agency’s feet to the fire by expecting results that have a measurable impact on your company’s balance sheet. It also means that you must provide your agency with the time and guidance necessary for them to deliver something more than a pile of useless press clippings.

If you’re unwilling to make that commitment, or if they’re incapable of delivering on your expectations, then it’s time to stop the insanity. Fire your PR firm in 2014.

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