The new model of advertising and branding demands that companies improve public life and satisfy the needs of our higher sacred selves.
Inglewood Magazine is a free community magazine that will combine print, video, and digital while understanding the human element. It’s increasingly clear that printed marketing communications work best when used in conjunction with digital channels such as email, personalized web pages (PURLs), database marketing, and mobile elements.
If I ask you why you think what you think, can I trust your answer?
This process [standard market research] is fundamentally flawed. It is completely screwed. We totally overrate the significance of what we find out when we go through this kind of formal process and the consequence of that overreliance on this system is that we are cheating ourselves of all kinds of wonderful experiences that we would otherwise have [such as Kenna
Overwhelming clutter has made traditional advertising nearly worthless for most businesses. We live in a world that has become ad rich but idea poor. We are tired of being bombarded with ads—we want instead to be inspired by ideas that will change our lives. Ads may create transactions, but great ideas create transformations. Ads reflect our culture, ideas imagine our future.
Knowledgeable marketers understand that what worked in the past is not working (or not working well) now. A new approach is needed. As A. G. Lafley, the CEO of Procter & Gamble and author of The Game Changer, told his executives, “We need to reinvent the way we market to consumers. We need a new model.”
The Game Changer
Did Steve Jobs discover that new model?
A lot of people in our industry haven’t had very diverse experiences. So they don’t have enough dots to connect, and they end up with very linear solutions without a broad perspective on the problem. The broader one’s understanding of the human experience, the better design we will have.
~ Steve Jobs
In 1998, Bill Gates “couldn’t imagine a situation in which Apple would ever be bigger and more profitable than Microsoft.” Today, Apple’s market capitalization is $683 billion, more than double Microsoft’s current value of $338 billion.
Apple made $18.04 billion in profit and $74.6 billion in revenue
for the first quarter of 2015. Those are both records for Apple alone, but there’s more: The numbers mean Apple just had the most profitable quarter of any company ever, beating out
Russia’s Gazprom by a neat $1.8 billion. Apple now has five of the top ten most profitable quarters. ExxonMobil has three.
Steve Jobs unveils first iPhone
Steve Jobs took a near bankrupt company and turned it into the most valuable company in the world by understanding the importance of human psychology in designing products and services, and also by understanding the need to address our higher sacred selves.
Here’s to the crazy ones. The rebels. The troublemakers. The ones who see things differently. While some may see them as the crazy ones, we see genius. Because the people who are crazy enough to think they can change the world, are the ones who do.
So what does this all mean for Inglewood Magazine?
We are developing a model to utilize the benefits of both print and digital, while also addressing the human element. And even though Google brings in more advertising revenue than all of U.S. print media, there is still weakness in Google’s model. In a TechCrunch interview Tyler Cowen proclaimed:
Google is an old business…. Google has never really been about human psychology.
Truly effective advertising is based on human psychology.
There is very little human psychology embedded in Google’s technology and business model. Google approaches problems from an engineering perspective but what is needed to build an effective new marketing model is a human perspective.
Groupon and other daily deal providers give us more examples of a lack of the human perspective. In the year ending May 2014, Americans made 61 billion visits to restaurants
. That’s down from 62.7 billion in 2008
and flat compared to the last several year. Of the over 1 billion visits lost each year, the vast majority have been to independent establishments.
This lost of visitors was compounded by daily deal providers sucking value away from local merchants. In 2011, revenue for daily deal providers like Groupon grew 138%
but visits to independent restaurants were down 4%
Groupon grew out of a social activist website called “The Point” to became the fastest growing company ever
with an apparently great idea that seemed to serve the needs of small business owners. “The Point” got its name from The Tipping Point: How Little Things Can Make a Big Difference,
a book by Malcom Gladwell: “The success of any kind of social epidemic is heavily dependent on the involvement of people with a particular and rare set of social gifts.”
The Groupon model lost sight of the fact that all businesses have Gold customers – a small percentage that provides 80% of their revenue and profit. The deep discounts of daily deals devalue these customers.
Instead of devaluing customers by offering deep discounts, small businesses can use database marketing campaigns. The basic idea in database marketing is to build a close personal relationship with each customer that is based on quality, service, friendship, loyalty, and communications. And, not based on discounts. You would not give a neighbor $5 for helping you move furniture. It would be an insult. Instead, you offer a cup of coffee or a beer, and 15 minutes of chat around the kitchen table. That is the kind of relationship that database marketing creates. Discounts send the wrong message: we are cheap guys whose basic product is overpriced. We want to buy your loyalty. We don’t care about you. We care about your money.
Database marketing campaigns identify Gold customers and develop programs designed to retain them. Resources that small businesses can not afford to spend on all of their customers. Profits come from working to retain the best, and encouraging others to move up to higher status levels.
We will help small local businesses identify Gold customers and develop database marketing campaigns.
We are willing to take the time to understand the goals of local businesses and become strategic partners. What we do is strategic integration, which means starting right at the beginning of a project by determining the needs of a client and then planning how to meet those needs by whatever functions are necessary. Effective marketing starts with a better understanding of the media plan that ties to consumer touch points more than it does to the creative idea. Effective marketing that results in greater profits is problem solving, it isn’t movie making.
Groupon became the fastest growing company ever by apparently serving the marketing needs of small business owners. What would happen if a business came along that truly served the needs of local business owners and local communities?