Archive for March, 2010

American Girl Store Masters Experience Marketing

Tuesday, March 30th, 2010

american girl cafe

Last week my daughters were out of school for Spring Break, and because my wife was working hard on renovating a house we purchased and I’ve been away from home a lot, I decided to take my girls on a Daddy-Daughter road trip to Chicago for a few days. Of course many of you know by now that Girls + Chicago = American Girl Store. It’s a rite of passage for many parents and daughters to trek to this doll mecca. For me, it was a chance to not only get some quality time with my girls, but also an opportunity to check out a marketing destination that I originally read about years ago in the book The Experience Economy. I can say that all of our high expectations were met or exceeded.

We stepped into the store just after its 9 a.m. opening last Thursday, which gave us the chance to roam around with few other people. The store is set up a bit like a museum, with areas for each of the specific American Girls that are currently being sold. For those who are unaware, the dolls take on personalities of everyday people from specific dates and times in American history, ranging from New Mexico in the 1820s to Colorado in the 1970s. Each doll has a specific station with a look and feel of this time in history, and of course boxes of clothing and other accessories available for purchase.

In addition to these shopping zones, the store had several opportunities to create an experience. We first stopped at a photo booth where each of my daughters got pictures with their dolls that were turned into actual magazine covers. Unlike the annual school-photo rite of passage, it wasn’t hard to get them to smile for these pictures. We also strolled by a hairdressing station where you could get your doll’s hair de-tangled and braided (among many other style options). Another mini-store offered the chance to design a T-shirt for your doll. And there was also a clinic for doll repairs.

But the highlight of the trip was our lunch in the American Girl Cafe. As you can see from the photo above, it was a very cute (very pink) affair in which the dolls were given special chairs to join us at the table. The lunch consisted of several small courses of family-friendly food. Our waiter was extremely nice and made the meal even more fun. There were nice touches such as a box of questions to encourage conversation, such as, “What is the biggest dream you have?” And although I was just about the only solo-flying father in the building, I felt very comfortable—and left very full.

In The Next Evolution of Marketing I include a sub-chapter in which I describe the power of creating experiences such as this. One study I cite shows that happiness created by experiences lasts much longer than what comes from mere products. In the case of my daughters, our trip to the American Girl store got them more interested in their dolls before, during, and after our trip. I wouldn’t be surprised to see several AG-related items on their Christmas lists this year. So turning a store into an experience is clearly a marketing strategy that is working for the brand. But this marketing experience is a significant revenue driver as well. Between the meals, photos, and one additional item each, I think I dropped at least $300.

And for this dad, $300 was a small price to pay for an experience that I will remember and cherish for the rest of my life.

Sharing Social Insights from #SXSW

Thursday, March 25th, 2010

sharing kids

Lately I’ve been thinking a lot about how our society is becoming more “social” thanks to digital tools that are bringing us closer together. Blogs, online communities, Twitter, Facebook, and Foursquare are helping people help each other more than ever since we broke out of small clans thousands of years ago. For a while I have believed that these social-media tools are taking off because they match the way the human race has evolved to survive and advance by sharing. At the SXSW Interactive conference, I had the chance to see professor and author Clay Shirky connect more dots for me in his talk, titled “Monkeys with Internet Access: Sharing, Human Nature, and Digital Data.”

Shirky retold several stories from his excellent book, Here Comes Everybody, but focused on describing some fundamental insights around what and why people share. His first point was that people are programmed to share based on millions of years of evolution in which we lived in small groups and traded favors and resources to survive. Remembering favors and managing personal relationships takes up a large part of our advanced brains, and studies show that there is even a limit to how many relationships our powerful processors can manage at one time (Dunbar’s number, which is said to be 150 for humans). The act of sharing releases a pleasant-feeling dopamine reward and positive memories that last for some time.

But all sharing is not created equal. While all forms of sharing can bring positive feelings, different types come at different costs. Shirky painted the picture of an old woman walking toward you on the sidewalk. She is trying to get your attention and can ask for one of three kinds of favors:

  • Goods: She might ask for money. This causes us to tense up and feel most negative, because sharing a “good” like this comes at a one-for-one cost. If you give her your money, then you cannot benefit from it any more.
  • Services: She might ask you to help her cross the street. This comes at some cost, as you must stop what you are doing and spend your time backtracking with her. But this favor does not take much from you.
  • Information: She might ask for directions to a nearby store. This favor is essentially free because it takes very little time and nothing is lost. Interestingly, because information is given at no cost, our society generally looks down on people who fail to share this. We have evolved to punish people who fail to share alike.

Shirky used this model to describe how online music swapping arose so quickly with Napster despite claims that it was socially unacceptable—like stealing. In the days of records, people did not share music very often because you would literally have to give up your record album to a friend. It was a good people did not want to part with. With the rise of cassettes and CDs, people shared more often by making a mix tape or burning a copy. This was a service that took some time to do for each person, so it was still fairly difficult. But the ability to rip and share music online turned music into information that people easily shared among friends. In fact, we became compelled to share this information at risk of being perceived as a hoarder.

Technology that allows for greater sharing, say turning goods into information, or making information much easier to share broadly, has led to some of the largest societal changes in history. The adoption of the printing press in medieval Europe brought religion to the masses and sparked revolutions in faith and science. According to Shirky, “abundance brings more change than scarcity.” He described how already digital sharing is “turning small, private, expensive good acts into big, public, cheap ones.”

I believe marketing is one of those models that will change dramatically because of the power of sharing. Today, digital tools have turned us all into consummate sharers. With five seconds on Facebook or TripAdvisor, we can benefit from the positive feelings of sharing tips and reviews with friends and strangers. Such information is more trusted and useful than anything advertisers can say, and Google places much heavier weight on what society says when individuals search for answers online. Advertisers, grocery stores, maitre d’s, and travel and real estate agents no longer have the power of information scarcity in a society in which people are rewarded, encouraged, and compelled to share with each other.

In a presentation after Shirky’s, renowned speaker Tim Sanders shared his experiences and secrets on how to make a living from the speaking circuit as he does. That’s right, Sanders gave away extremely rare and powerful information to people who might end up competing against him for speaker fees in the future. But Sanders enjoys helping others, and he believes that he is better off sharing with others who will drive the personal connections and positive word of mouth that will him get more, higher-paying speaking gigs down the road.

Interesting, Sanders was asked by someone in the audience about whether “transparency” was the defining word of our new age of digital social sharing. He actually disagreed, saying:

“Anyone can be transparent. I believe the history books will say that social media was about ‘being helpful.’”

My many thanks to both Shirky and Sanders for sharing information that will help me be more successful in guiding marketing strategy and winning speaking opportunities. And through this blog post, I hope you benefit from their knowledge as well.

Tito’s Vodka Mends My Heart at #SXSW

Tuesday, March 23rd, 2010

titos sticker

My favorite new brand story from the SXSW Interactive conference last week actually came from a brand that I thought I knew fairly well. At a small workshop called “Booze Blogging,” we tasted various cocktails and got to hear from Beth Bellanti-Walker, who worked on the start-up Tito’s Vodka brand, which is based in Austin, Texas. She filled in some blanks on the brand and shared some insights into the challenge of taking a small, meaningful brand to the big time.

Several years ago I first heard the fascinating story of Tito’s Vodka: A man named Tito Beveridge was a geophysicist with a side hobby of making flavored vodka for his friends. After years of friends’ encouragement and talking with bartenders who said they would love a smooth vodka that people could drink straight, he decided to learn how to distill his own liquor. Thanks to his scientific skills, passion for perfection, and 19 maxed-out credit cards, Tito got the first distillery license in Texas created a brilliant vodka that is distilled six times for a pure taste. One day a fan of his new vodka suggested that he enter it into the World Spirits Competition. Beveridge couldn’t attend himself, so he sent up a few bottles. It was named a Double Gold Medal winner.

Over time word of mouth fueled the expansion of Tito’s Vodka. Sales went from 1,000 cases in 1997 to currently more than 200,000 cases each year. During our session at SXSW, I learned a few other stories of the world of Tito and its bootstrap marketing. Beth essentially worked for free and spent most of her time stoking fans’ passion by responding to emails, managing a blog, and sending vodka to parties. According to Beth, “Everything about Tito’s marketing success has come from people’s love for the brand.”

She told us how Tito designed the label and logo for the brand by himself on his basement computer. Tito seems unconcerned with selling out or taking the world by storm. He is a complex guy who has several other hobbies and has some clever ideas about clean energy and improving the world.

I personally tried Tito’s roughly five years ago after reading about it on a marketing blog (that I can’t remember now), and I became one of these rabid fans. I enjoyed ritually mixing my martinis at home with Tito’s and loved taking friends down to my basement bar to give them a taste of this mysterious Texas concoction. I even enjoyed the process of finding a place to order it online, and waiting for a package to arrive weeks later. My friends would see or hear about Tito’s Vodka and say, “Hey, that’s the brand Bob loves.” And I enjoyed being the first guy to turn my friends onto the brand. The closest thing I can compare this to is when you become a fan of an upstart band and enjoy introducing the music to friends.

But my Tito’s fandom hit a bump a few years ago. A buddy of mine shot me an email and told me to look in The New York Times; he had just seen a full-page ad for Tito’s Vodka. Unfortunately, I wish he hadn’t told me about the ad, because it broke my heart. Here was my great little vodka brand advertising in one of the largest newspapers in the world. Tito’s Vodka had sold out.

In the two years or so since I saw this ad, I have reached for Tito’s Vodka less often in my liquor cabinet after a long day. I no longer raved about it to friends, and when I need to resupply I was more likely to grab Absolut at the nearby package store rather than order a Tito’s shipment. So I was eager to ask Beth why she and Tito embraced mass advertising on a brand that had such a special place in my heart. Her response, in a nutshell:

“That was a difficult decision for us and a large expense—our first advertisement in 12 years of making vodka. But our main challenge is that while people are discovering Tito’s through friends and blogs, the liquor market is dominated by wholesalers and distributors in individual states across the country. We had to get their attention by using the traditional advertising that they still believe is the key to success.”

Upon hearing this my love for Tito’s was rekindled. The print ad campaign made perfect business sense to me and I no longer felt that the brand was selling out. I happily ordered a Tito’s martini at my hotel bar that night. By hearing this inside story of how the brand was forced to embrace some amount of traditional advertising to keep its momentum going, I personally reconnected with Tito’s.

While this level of openness at the SXSW conference with 50 people was great, it shows that Tito’s Vodka and other small brands trying to make it big should be more careful when they risk losing the core fans that drive their early success. I wonder if Tito’s could have dumped the newspaper ads and worked harder to get its fans to call distributors and liquor stores to ask for the brand. Or Tito’s might have done more to let its fans know that the newspaper ad was coming and why.

I know it might sound strange to ask a brand to apologize for putting full-page ads in a newspaper, but in this new world of meaningful marketing it becomes critically important to think of your core fans first.

Why Foursquare Ruled #SXSW

Thursday, March 18th, 2010

foursquare sxsw

Late Sunday night I got back from my first-ever trip to the much-discussed South by Southwest (SXSW) conference for Film, Music, and Interactive in Austin, Texas. After seeing many friends and other folks in the business rave and tweet about this event for a few years, I felt compelled to add yet another conference badge to my collection. Overall I found it to be one of the best conferences for digital marketing that I have attended in some time. That means something, because I think I’ve been to more than a dozen different digital shows in the past 24 months alone. Over the course of the next few blog posts I plan to share some of my biggest takeaways and examples of Marketing with Meaning.

First up is an example of a start-up digital service that used meaningful marketing to make the conference better for nearly everyone involved: Foursquare. For those who haven’t heard, Foursquare is a mobile tool that allows you to “check in” at locations where you physically appear—essentially a way of broadcasting to friends that you are, say, having a coffee at Starbucks, or waiting in line at the DMV. This is the leading brand in a new category of “geo-location” services. You might call it “Geo-Twitter”—in fact, you can update your Twitter and Facebook accounts with Foursquare when you check in around town.

SXSW is a very big event for the folks at Foursquare for many reasons. It is the place where partners and customers gather to see what’s new. Investors are lurking everywhere to spy the next hot winner. And some of the earliest early adopters and trendsetters (including a few celebrities) share their latest findings with their friends at SXSW.

So it is a clear business objective to own this event in every way possible. For most companies, this means paying sponsorship dollars to put your name everywhere, employing booth babes to walk around with branded snacks, and maybe hosting a giant beer-for-all for everyone at the event. But not Foursquare. Instead, Foursquare stuck with what makes its service special, and spent most of its time and money making it more so.

Foursquare is already a killer app for conferences. It is most effective when a large group of people who know each other and want to get together are located in a pretty close environment. This is exactly what conferences are all about. So instead of calling or texting to find out where your friends and contacts are, you simply see where they have recently checked in and walk over to the conference room, bar, or restaurant where they happen to be. This even makes it easy to “run into” people who you might unable to reach via email or telephone.

This is why Foursquare became so popular at SXSW in 2009. So the business decided to do more with this hyper-engaged, ultra-important audience in 2010. When we got off the plane in Austin and checked into the airport, we noticed that Foursquare had created special new features for SXSW participants. The main add was a set of special “badges” that you could unlock by performing various check-ins during the six-day event. Badges are a key element of the basic Foursquare service—providing you a fun way to show that you have, say, checked in at 50 different total places or from five airports or from a boat. They are fun for the user, and cleverly (and cheaply) train people to make Foursquare check-ins a habit. Some of the special SXSW badges include the “Austin Explorer” for hitting five locations in the city, and the “Hookup” for checking in at two different hotels. For me and our team, we found that these badges turned Foursquare into a living game that made some of the boring moments between sessions and meetings much more tolerable.

Foursquare did more than virtual badges, though. The firm partnered with specific locations such as the Pepsi Refresh Cafe and SXSW Web Awards to give people temporary tattoos to match their unlocked badges. And it partnered with PayPal to donate $.25 for every check-in to Haitian relief efforts. Foursquare even reported a running total of how much you had earned for Haiti. (I believe I hit more than $8.)

Only the folks at Foursquare know how much this modest expense in programming time delivered for its business at this big event. One key data point reported on its site shows that there were more than 15,000 badges awarded, including 6,025 versions of the Austin Explorer. That means that roughly 50% of the 12,000 people who went to the Interactive conference tried Foursquare.  According to this article, there were 300,000 check-ins in Austin during the event, and Foursquare added 100,000 users overall – “likely as a result of check-ins being broadcast to Twitter and Facebook.” This might have even helped the nascent company establish a business model; TechCrunch made the case that Foursquare could create a business around building similar special apps for other conferences.

So many thanks to Foursquare for helping me get a more out of my company’s significant time and money investment in sending me to SXSW. I will certainly repay the favor by giving this new service major attention in the months ahead.

Let’s Ask Ourselves a Burning Question at Cannes

Tuesday, March 16th, 2010

burning question

A question asked in the right way often points to its own answer.”  —Edward Hodnett

Some of the most important changes in history began when groups of people asked difficult questions of their elders, their rulers, and their textbooks. Questions have sparked democratic revolutions from Boston to Berlin, they have driven scientific paradigm shifts from Darwin to Einstein, and they have triggered social change from San Francisco to Soweto. These “burning questions” compel us to step back from the way we have always lived our lives, help us discover that change is needed, and point us to an answer that suddenly becomes completely obvious—and betters the world. It is time for us marketers and advertisers to ask ourselves a Burning Question that will unleash needed change in the work that we do for our customers, stakeholders, employees, and society as a whole.

It is an ambitious objective, but one that is clearly ready for the first bold action. The historic model of marketing and advertising stands on the brink of failure in many corners. Mass media is increasingly an oxymoron, as our customers shift their precious eyeballs to 500 cable channels and 50 billion YouTube videos. Product and service purchases are screened through the lens of social media, not pricey ad campaigns. And citizens of the world are calling on their governments to protect them from advertisements on their mobile screens and school buses. Simply put, our traditional marketing model is unsustainable.

On Friday, June 25 at the annual Cannes Lions International Advertising Festival in France, Jim Stengel and I will bring together the world’s largest brands and advertising agencies to reveal a Burning Question that will allow us to transform our work and our world. We plan to use this biggest, most-followed gathering of global marketers to spark a revolution—and we hope you will join us.

This revolution will be socialized. As we prepare to spark the revolution in June, we need your help to guide the discussion and plan to offer several ways for everyone to be involved. For starters, we are asking people to visit www.burningquestion.com and share what they believe is the Burning Question that will unlock change in our marketing paradigm. We will share the ideas openly, and Jim and I will draw on your input for our session. In a few weeks we will launch a contest in which we will identify a handful of fellow change agents to join us in Cannes (on our dime). And we will announce more ways to get involved before, during, and after this event. I can promise you that it is something that the Cannes Lions Festival has never seen before—and it will be meaningful and memorable whether you are in France with us or not.

This summer we’re going to set fire to the old assumptions about what marketing is and what it can be. Will you join us?

Inside the Making of an Entertaining Banner Ad

Thursday, March 11th, 2010

distraktion

I’ve frequently taken the keynote stage or space in this blog to claim that banner ads are not the savior of digital marketing and marketing in general. I believe that too many traditional marketers have embraced banners as the easy way to “go digital” and fail to understand how this new media can allow for much deeper brand connections. That said, sometimes business goals require us to drive Awareness, and banner advertising can be a solution if it is done well. And my team at Bridge Worldwide is always pushing the creative/technical boundaries to deliver banners with meaning—which brings me to today’s post on some entertaining banners we recently launched for the Healthy Choice brand at ConAgra Foods.

Providing real entertainment is often a great way to make the banner ad meaningful to people who encounter such advertising on any given website visit. One of our best examples was the banner we did for Pringles last summer that resulted in 300,000 people choosing to visit our staging server and play with the banner over the course of a weekend. Oh, yeah, and we won a Cannes Gold Cyber Lion for this ad, too.

In the case of Healthy Choice, our advertising in recent years has revolved around convincing consumers to re-evaluate a brand that had come to be mainly focused on 50-year-old and older people who were told by their doctors to eat better. The brand has made significant improvements on the quality and appeal of its food, and our marketing has used humor and entertainment to get a 30-something consumer to notice what’s new with the brand. This is what drove our Working Lunch online improv show last year, and the recent campaign with Julia Louis-Dreyfus. Both campaigns successfully launched new products for the brand.

We were recently brought in to work on a new campaign, alongside Nitro/Sapient, which handles the brand’s television and print creative. The agency developed a print-focused campaign in which characters from a fake print ad on one page of a magazine look longingly at a Healthy Choice ad on the opposite page. It is a clever campaign, and our team was eager to figure out how to make it work online. In fact, we were excited that the digital space would allow us to bring it to life in a very fun way.

Go ahead and click this link to see what our team came up with. It’s a live URL that we’ll keep up, so feel free to forward it to your friends, too.

Our Healthy Choice team recently shared some of its keys to success in developing this banner at an all-company meeting—lessons that others might benefit from as well. First, they first shared the concept with our media planning and buying partner agency months in advance so that we could secure this type of rich media placement. Second, they did prototype filming of the ad to figure out how to actually make it work. Stand-ins from our office helped our production team understand what would need to happen in the actual shoot, thus saving us and the client time and money. Finally, the team worked with Eyeblaster to ensure that we could get the two ads to appear on the exact right timing. This is actually a type of sync that the folks at Eyeblaster said no one had tried before.

Unfortunately I cannot share results of the program because it just started, however I hope you agree that it brings some levity and fun to a medium that has brought mainly annoyance and irrelevance since the first banner was displayed 15 years ago. If you must make a banner—make it meaningful (please!).

NASCAR Marketing Dept: Be Careful What You Wish For

Tuesday, March 9th, 2010

rpm_a_keselowski_600

A few months ago I was watching ESPN’s SportsCenter in the morning while getting ready for the day and stopped in my tracks when I heard NASCAR CEO and Chairman Brian France tell a group of reporters at a press conference that the circuit would be changing its rules to allow more “bump drafting” during its races in the year ahead. To quote France directly:

“NASCAR is a contact sport—our history is based on banging fenders.”

In fact, after France’s rule-change announcement another NASCAR executive, Robin Pemberton, NASCAR’s vice president of competition, said, “Boys, have at it….” My first reaction: Uh-oh.

It’s the same reaction I experienced yesterday when tuning into the highlights of Sunday’s race in Atlanta, where star driver Carl Edwards took revenge on fellow racer Brad Keselowski for something the latter did earlier in the race. The Edwards bump caused Keselowski’s car to flip over in midair at nearly 200 miles per hour and sent him to the hospital for observation. The car careened into the “catch fence” that prevents metal from flying into the crowd—but has been known to allow killer debris through in the past. Contact sport indeed—and potentially an example in which the marketing minds behind a violent sport should have kept their mouths shut.

I’m sure most people would at least agree that this was a poor choice of words by NASCAR’s most-senior management, but is a rule change to allow faster, more aggressive racing “Marketing with Meaning”?

Since its inception, NASCAR fans and outsiders alike have claimed that people watch the sport just to see the wrecks, and by encouraging its drivers to “bang fenders” an incident like this was only a matter of time in coming. It’s the easy knee-jerk reaction by the leaders of a sport who are experiencing their first business decline in several years. Television ratings are down, seats are increasingly empty, and many sponsors and teams have called it quits due to economic pressure.

But I believe that this knee-jerk reaction by NASCAR officials is a poor decision and one that might even worsen ratings and fan engagement if and when this “contact sport” next claims a driver’s life. I’ve seen my fair share of NASCAR races and I actually enjoy and follow the sport. I first got into it back when I worked on the Tide brand at P&G and we had a car. I had the chance to see our drivers race in Indianapolis, Phoenix, Charlotte, and Daytona. I sat in the stands, hung out in the pits, and even got to know our driver, Ricky Craven’s, family. I came to see NASCAR as a sport with fierce competition and passionate people. They fight hard for the checkered flag every Sunday, but they also live together on the road for much of the year, and drivers’ families say prayers at the start of each race that their loved ones make it back alive.

NASCAR rose to greater ratings because it found a spot as a family sport in many American homes. In fact, it was female fans who first started the ratings to rise about a decade ago. In 2004, 42% of NASCAR viewers were female—up from 35% in 1995—and there were more female viewers of these races than for the NFL. That was a big reason why brands such as Tide, Clorox, and M&Ms got into car-sponsorship deals. So any effort to make the sport more violent will likely risk alienating mothers and children from embracing the sport as before.

What can NASCAR do to add meaning to its marketing? Well, for starters, I would find ways to make the sport more interesting and exciting for fans to watch with a cell phone or laptop in the living room. One of the exciting differentiators of NASCAR is that the action is constantly intense and data about everything from speed to tire pressure is created continuously. Fans love the information, but NASCAR has frequently chosen to exact extra fees for access to additional information. I would start by making the in-car audio feeds and track data that it currently charges $30 to $80 a year for free to all. This is something that other sports cannot offer, and I doubt there are many takers of this pricey service.

NASCAR should do something immediately to show its drivers and fans that it is not hoping to encourage more danger in an already intense event—and look for ways to add value for the entire family.

Marketing Lesson from an Oil-Change Business

Thursday, March 4th, 2010

village quick lube

I’m a little bit ashamed to not have written about Village Quik Lube in this blog until now. After all, I’ve been writing here for nearly two years, and I pass this little dose of Marketing with Meaning every day when I come and go from work. I guess it was this small business’s new Facebook effort that gave me the final push to feature it hereas another example of how social media best works as a way to bring an entire marketing strategy to life.

Village Quik Lube is a small oil-change business located in Newtown, Ohio, a small suburban Cincinnati village just about 2 miles from my home. The shop is known by everyone around as “the place with the funny sayings”as the owner of the business updates the sign above a couple of times a week with a new joke. Some are funnier/cornier than others, but every time the sign changes we are compelled to look and laugh. Aside from this sign, the shop has several other remarkable features: There’s a fish pond outside, chairs made up of old-car seats and barber chairs inside, and the parking lot is often the host of grill parties and fund-raisers.

What I love about the Village Quik Lube is that it brings some personality to a business that most people grudgingly tolerate every three months or 3,000 miles. Most of us are used to going into the cookie-cutter Jiffy Lube and car-dealership services, which feel more like a trip to the dentist. Just like these competitors, Village Quik Lube has a convenient location and all of the periodic maintenance services we expect at a fair price. But this business spends the time between our visits making us smile on an otherwise boring commute. We appreciate the owner’s attempt to lighten our day, which leaves us almost looking forward to making the stop in for an oil change and tire rotation. All it takes is some time to think up the signs and change them a few times a week.

So it’s no wonder that Village Quik Lube has gone into social media with a fan page on Facebook. Interestingly, Facebook offers a direct transfer of the company’s “offline” marketing strategy for the online world. Facebook has become the virtual vehicle of our daily commute, so of course people who enjoy driving by and stopping at the shop would want to continue the relationship online.

But Facebook offers benefits that the signs and store itself cannot do alone. For example, the owner recently asked his 200-plus members if they would like to see some of the ideas for signs that were a little too racy for the road. I learned that he actually gets complaints on certain topics and has toned down the humor over the years. Of course the members said “yes”and we were treated to jewels like:

Did you hear about the new vitamin just for men sold only at golf pro shops? It’s called Tiger Wood.”

Of course this one is a little too daring for the G-rated public thoroughfare, but I laughed out loud at this and some of the others I found on Facebook.

Reading further, I got to see photos from this intersection in 1970 “when there were cows grazing in the field nearby.” I saw that the shop staff is thinking about raffling off the chance to drive a demolition-derby car. And I learned how the owner was told by a Quaker State executive that his store would be out of business within six months; that was 12 years ago.

If you really think about it, Village Quik Lube is not new to social media because of its Facebook presence. Rather, this is a business that has always been about social media. Its goal is to make people smile and give back to the community. In return, it earns loyalty and positive word of mouth. Digital social media is just an evolution of what it has been doing successfully for 12 years.

When I read about the brands that are doing the most in social media, it seems to mainly be small businesses such as Zappos and the Kogi Korean BBQ truck. They have succeeded by starting out in social media and created businesses around this core approach, rather than just bolting on a Twitter feed or having an agency monitor buzz.

I believe there has never been a better time to start a business than the present. Large companies’ advantages in mass scale are falling away as people become more interested in niche products and meaningful brandsand marketing is as simple as telling your story on a blog, tweet, or Facebook page. The future of business might look like millions of passionate owners connecting with a handful of customers by adding value through products, services, and marketing.

Olympics a Meaningful Marketing Windfall for NHL

Tuesday, March 2nd, 2010

Vancouver Olympics Ice Hockey

One of the interesting industries to cover from a marketing perspective is that of major sports leagues. The product (games) and brands (teams) receive tremendous attention and attract rabid, lifelong fans. But most of the marketing of these leagues gets little attention. We see constant SportsCenter coverage, hear that rules changes are made to the game, and might see 30-second ads to hype the leagues’ stars, but overall the marketing staff sits far down on the bench. As these leagues fight for fans in a fragmenting media market, good marketing is more important than ever. League commissioners and team owners had better wake up to this reality and invest in giving fans what they want. The National Hockey League’s (NHL) tenuous participation in the Winter Olympics is one example of where a new mentality is needed.

The NHL first took an official two-week break during the Olympics so that their stars could play for their home countries in 1998, which was 10 years after professionals were first allowed into the games. But every four years since then the NHL has warned that it might not continue this way in the future. This year, for example, NHL commissioner Gary Bettman was unenthusiastic about this year’s games in Vancouverand he casts doubt on whether he will allow players to attend the 2014 games in Sochi, Russia. He claims that the break slows down momentum of the sport, and interest in games at odd hours in Russia won’t get much interest anyway.

But what Bettman completely misses is the reality that the NHL is not as popular as it has been (or could be) and the Olympics are perhaps the league’s greatest marketing asset. The Olympics bring the attention of the world, and hockey is one of the marquee events that gets the highest buzz. This translates to ratings that are significantly higher than even the NHL Finals.

For example, the USA versus Canada matchup in the preliminary round brought 8.2 million views to MSNBC. That’s the most viewers for MSNBC since the presidential election night, and the most people in the U.S. to watch a hockey game since the 1973 Stanley Cup!  And for the Gold Medal rematch game, half of all Canadians tuned in along with 27 million Americans.  That’s more U.S. viewers than any World Series game since 2004 and more than any NCAA basketball Final Four since 1998.

Olympic hockey is a great example of Marketing with Meaning. It exposes the world to the sport, showcases the best players and personalities (who play in the NHL), and wraps it up in the flag of national pride and Olympic glory. It is the equivalent of the annual All-Star break, but means so much more for those looking on.

Ironically, the NHL has had some success in recent years by bending its rules and embracing change. In my book I share the example of how the NHL began a new traditional called The Winter Classic, in which a regular-season game is played between two teams in an outdoor stadium on New Year’s Day. The first game in 2008 drew more than 70,000 paying fans and outstanding TV ratings.

So why would Gary Bettman downplay the Olympics when they are renewing passion about the sport and likely boosting ratings for the second half of the season? At least one sports analyst claims that it comes down to money. Bettman and his owners don’t like their stadiums shut down and their players boosting the Olympics’ business for two weeks. But that’s incredibly shortsided. It reminds me of how the NFL penalizes cities that cannot afford to fill their stadiums by blacking out games from regular fans.

I believe that sports owners and league commissioners hurt themselves and their fans repeatedly because of a combination of hubris and a lack of marketing understanding. The hubris comes from owners’ typically large bank accounts and the fact that cities identify with their teams so closely. As evidence of the latter point, Forbes created a list of “America’s 20 Most Miserable Cities,” and frequently cited poor sports team performance as a key misery maker.

But it is ignorance of marketing fundamentals that truly hurts these franchises and the fans. Here’s hoping that the NHL and other sports leagues remember that they exist for the enjoyment of the fans, not short-term maximums in ticket sales and other fees. If you take care of fans over the long term, they will take care of you. It’s a lesson for those in the sports business, and in any business for that matter.