The changing idea of marketing as a concept!

If you are one of the marketers who embraces convention, no one will point a finger at you if you were to follow the norm that has been practiced for years. Build/produce/manufacture, brand, market, sell. Justified linear thinking.With strong empirical evidence( I mean brand and business success) to boot.

With so many years of conventional wisdom( that also is the wisdom of the crowds that drive collective bias) in the ring, it would have been a really uphill task for any brand to alter(let alone disrupt) the narrative. But there is something about audacity and moonshots that make them perfect partners in rhyme.

I devote this blog post predominantly to understand marketing from a new lens- the one that brand Tesla is scripting so brilliantly. Directed by Elon Musk(Iron Man). Allow me to go back a few years.

It’s the 4th of April, 2016. The Tesla Model 3 is being launched in the US. It sports a price tag of US$ 35,000 and bookings can be made with a U$1,000 down payment.  Then history unfolds. A whopping 276,000 cars were booked(read pre-sold) on the day, probably a first ever in automotive marketing . And Tesla gathered US$ 276 Million in upfront cash. And here’s where the story gets interesting. There was not even a model car ready. All the sales happened courtesy a few photographs of the Model 3. That’s it. There’s more. There was not even a single car that had gone into production. The first promised schedule for delivery of the Model 3 was late 2017, that was a good 18+ months away. Tesla had disrupted automotive marketing on it’s head and how.

Let’s try to understand more of the phenomena that is brand Tesla.

  • Tesla’s $0 marketing budget is incredibly awesome marketing
  • Tesla Motors has no advertising, no ad agency, no CMO, no dealer network. And that’s no problem. – AdvertisingAge
  • If you drop by the Tesla forums, you’ll see a community of passionate fans discussing how to market Tesla better. There are over 55,000 people subscribed to the /r/teslamotors subreddit. The brand has clearly struck a chord with its fans.
  • Tesla fans are crazy advocates. They attach deep emotional significance to the car. They’re not just paying for a mode of transportation, they’re paying for a slice of the future.
  • Prior to the Model 3 launch, Tesla had introduced the P100D Ludicrous– a luxury model priced over US$ 80,000(base level) with upgraded versions well over US$ 100,000. The marketing masterstroke was in the message conveyed. ” While the PD100 Ludicrous is an expensive vehicle, we want to emphasise that every sale helps pay for the smaller and more affordable Model 3 which is under development. Without customers willing to buy the expensive Model S and X, we would be unable to fund the smaller, more affordable Model 3 “. This is brand positioning at it’s masterful best, making a luxury purchase almost into a charitable act.
  • Every element of the Model S – from the recharging technology to the drag coefficient of the car – is presented as the pinnacle of research and engineering.
  • By eschewing marketing completely, Elon Musk is actually communicating that Tesla is focused on ground breaking technology.
  • Tesla the brand transcended from being just another automotive player in the business to encompass economics, politics, world power to have global energy NOT driven by oil. In the process, creating the marketplace, the eco system where they are the game. As also the game changer.

“ BMW has a marketing department called engineering.” – Seth Godin

These things obviously don’t bother Musk too much. If one were to give him an advertising budget, he is sure to divert that into production. And the final result: an even more incredible car. And inspite of NO Advertising, he gets the world talking about his brand, especially the people who matter.

How does Tesla manage to do all of this free of cost which other brands would spend millions to buy?

First, build something that matters to people. Then, tell a story that resonates with people. Just like iPhones/iPod and Steve Jobs, electric cars are a great story. The greatest stories are aspirational, representing the triumph of passion, conviction, persistence and diligence.

” I know a lot of very wealthy people.  Most of them made their money in technology.  I don’t think Bentley or Rolls-Royce is anywhere near the top of very many of these people’s idea of an impressive car.  A Tesla is more like it “. – Jimmy Wales, on Quora

This sort of advertising is earned, not bought.

You earn this sort of attention by making something truly newsworthy. Or saying something newsworthy.

” The public tends to be, as they should, interested in things that are precedent and superlatives.” – Elon Musk

Musk is all over YouTube. The media is chasing him nine to the dozen. Why? Because he is always working on cool, fascinating, path breaking projects.

Musk is a CEO who understands the power of showmanship(tonnes of interviews, cameo roles in films and media appearances.

Just GoogleElon Musk  says ‘and you will get the most quotable of quotes that media loves to lap up and carry forward.

The Hyperloop is something that Musk is NOT planning to make but delivers great PR for him as a tech visionary.

At most times,Tesla has more orders than they can build – that in itself is great marketing.

Tesla has demonstrated that brands and organisations can move on from a Build/produce/manufacture, brand, market, sell model to that of a brand, market, sell, build one. Welcome to the next normal.

As William Gibson would say, “The future is already here – it’s just not very evenly distributed.”-  which will be nothing like what we have experienced before, we’re all going to be completely re-evaluating so many aspects of our lives: education, medicine, work, social responsibility, inner calling, the list goes on. And under the aegis of the Covid 19, all of this is happening remotely right now. And the question for a lot of companies and brands is going to be: Now that this shift has happened, am I still relevant? Does what I do still make sense? Am I serving an essential function, especially in a time when everyone is being careful about their finances?

Answering in the affirmative will separate the men from the boys. Wanted. More Musketeers!

ENDS

https://www.groupisd.com/story

https://www.brandknewmag.com

https://www.weeklileaks.com

https://www.brandknew.groupisd.com

Is SAD the new HAPPY in Advertising?

Let’s begin with the obvious. It’s an always on world. While being perennially and technologically connected, geography being history and all of that, at no time have humans been so socially disconnected in the real sense.The need (and significantly unmet) desire for human bonding has never been greater. Nuclear existence has stoked the potential that is kinetic in humans. There is a clamour to reach out and brands are bending over backwards to suit the new found relish for the pathos.
It’s a given that sad news travels fast. But, advertising that stokes emotions( or SADvertising as it is being called these days) that strikes a strong emotional piano chord and opens up the tear ducts, travels fast, wide and deep. Empathy meets exponential sharing, opens up a floodgate of brand conversations,triggers otherwise hard to come by response, sustains brand dialogue and keeps all stakeholders be it brand owners, ad agencies or end users, happy (ironic as it may sound!).
Why the sadness?
It is said that sad emotional content has the capacity to make people feel more emotionally connected to one another, especially powerful in our detached digital world. This sad connectedness makes people more likely to take an action such as sharing content, donating money, or buying a product.
Communicating sadness can create behavioral change
Scientifically speaking, when we hear interesting stories, specifically stories that make us feel distress or empathy, our brain produces two chemicals: cortisol, which links with our sense of distress and helps us focus our attention on something, and oxytocin, which is associated with our sense of empathy. When these two chemicals are triggered, studies show that people are more likely to give money to a cause related to the story they’ve heard.
In short, the study reveals that it is possible for a story to change a person’s behaviour by changing their brain chemistry. What does this mean for brands? Sad stories have the potential to move people to make a purchase. This is why we’ll likely see more of these sad ads in the future.
We have moved on from an era of media scarcity to an era of attention
scarcity. Getting people’s attention is what we’re trying to do, and I
think that meaning, something that people can relate to on a very
visceral level, is what drives a lot of the decisions we make when we’re
talking about things. Hyper competition has forced brands to not only
assure customers a good product or service but make it very relatable
and more meaningful than any other good product.
Over time brands have realised that the consumer culture has evolved
and people are more reflective and mindful of their lives. There is a
constant search for deeper layers of meaning once you have all the
things you need and most of the things you don’t need but desire. The
ad industry of the last decade was mean, cynical and celebrated
bitterness. Those were the days when brands wanted to be Sexy,
Swaggering or Sweeping. That showed up in most of the work that was
put up. Don’t blame them as it seemed to work for all concerned. But,
then after a while, people got sick of it and when a voice and tone which
conveyed exactly the opposite stuck in, the positive reaction was
overwhelming.
Lets list a few of the work from yesteryears where brands have stirred up a flood of emotions all over the world and that includes P&G and its commercial released around the Olympics(https://www.youtube.com/watch?v=sUg6s-uIp1w), Honda’s Project Drive In(https://www.youtube.com/watch?v=_kRU9Au-fhk), Coca Cola Life in Argentina(https://www.youtube.com/watch?v=xPb1t3jU3sI), Nestle Good Life commercial in India(https://www.youtube.com/watch?v=syZju6ui394), Google’s Dear Sophie(https://www.youtube.com/watch?v=kcHV_Dv9tlo), Dove’s Beauty Patch(https://www.youtube.com/watch?v=XpaOjMXyJGk), John Lewis(https://www.youtube.com/watch?v=r9D-uvKih_k), Budweiser’s Puppy Love(https://www.youtube.com/watch?v=7p_3lITiK_Q), the charming tale of a canine equine romance or Expedia’s commercial(https://www.youtube.com/watch?v=-CzSeFHrSfM) about same sex marriage where the father fights his prejudice etc.
The flip side of this (which is worrying) is that it has become a trend. The
word ‘ emotional ‘ is now become the most over used word in client
agency briefs. If you are used to agencies creating a trend which should
ideally be the case(rather than following one), its time to take stock. We
just might be at a tipping point on this one. But, till such time, it sinks in,
it’s cry, cry, cry till you succeed for brands and agencies.
Go, grab your tissues!
ENDS
https://www.groupisd.com/story
https://www.brandknewmag.com
https://www.brandknew.groupisd.com
https://www.weeklileaks.com

The future of advertising: a sneak peek!

The Future of Advertising: A Sneak Peek!

What could/should “advertising” look like in 2020 and beyond? What should we do now for that future?

Some questions that crowd our every day artery. Restless consumers and fast changing technology are creating unheralded disruption. Advertising has always been a combination of art and science. Technology is now becoming a third variable. Advertisers “have to get all three of these things right”. They have to be three good.

There are Un Ignorable Forces of Change. Throwing Unabated Challenges to the status quo. But having said that, once recognised, respected and responded right, they offer Unprecedented Upside Potential for the Future. Lets examine them below:-

Exponential Advances in Science & Tech: With IOT, AI, Machine Learning etc, we now have a deeper real time understanding of things, people, situations. Bringing along with it an outsized and unprecedented responsibility for what we do with that knowledge.

Empowered & Skeptical “Consumers” : Wanting Customerization & Personalization (make it mine), seeking Choice(Give me tools to make better decisions), expecting Competitive Value (Give me more for my money), searching for Communities( Let me be a part of it), across multiple Channels (I want to call, click and visit). Individuals with lives, aspirations, challenges, family, communities. They want to be worthy of respect and you need to earn their trust.

Media Disruption & Redefinition : One way has become Two Way, Static is now Dynamic, Stationary is now Mobile, Passive is now Sensing, One-Dimension is now Immersive, Visual has turned Multi sensory. There exists Unprecedented Platform Design Capabilities for delivering Exceptional Contextualised Experiences.

Culture, Society & Our World : Straddling many a Divide across Health, Income, Digital, Education, Equality & Tolerance, Climate & Sustainability.

Inspiring, Measurable Business Models: A heady mix of The customer driven/ holistic model , The co creation model,  The open innovation model , Network orchestration model , The Competitive Value Model, Transformation to full service provider model, The emerging market innovation engine model, The shift to digital and network business models

So what are the takeaways that we can extract from the above listed landscape?

– Traditional mindsets, including those about advertising and marketing, must be challenged and potentially changed. I am referring to the Mental Models: The Primary Impediment to Transformation- For eg: “It has always worked this way.” “We tried it and it didn’t work.” “We’re profitable; why change?..and so forth! 

Before Roger Bannister broke the 4 Minute Mile on May 6, 1954, nobody thought that such a record could be set. We need to ask ‘ What is your 4 minute mile ‘ ?

Its the time to challenge our Mental Models of Advertising and Move from Marketers and Agencies, through Media, at Target Demographics toward being Cross-Silo Collaborators, from Ads toward Orchestrated Value-Creation Touch points, from Frequency toward When Needed, Wanted, Appreciated, from Reach toward Where Needed, Wanted, Appreciated, from Push and Persuade For Sales toward Multi Win Outcomes,pull & engage, from Ad Campaigns toward Initiatives in Holistic, Dynamic Ecosystem.

There is also a great upside in starting to use a new Vocabulary:

From Campaign To Initiative, From Content To Substance, From Persuading To Inspiring and Enabling, From Selling To Serving, From Seeking Loyalty To Earning Trust, From Disruption To Better/Alternate Solutions, From Features and Benefits to Brand Roles in People’s Lives, From Brand Differentiation To Brand Distinctiveness, From Employees To Brand Ambassadors, From Talent To Brand Stewards, From Consumers(myopic) To People with Lives, From Advertising Campaigns To Value Creation Initiatives, From Direct Response To Actionable Communications, From Big Data To Actionable Insights, From Success/Failure To Learning.

The time has come to challenge everything. Leave no sacred cows. Even challenge the objective of the firm from maximising long term shareholder value to aligning the objectives of the brand, the people (consumers…) and society.

– A strong call out to shift your focus from media mix to portfolios of all touchpoint orchestration. Go beyond the 4 Ps- bring in CeX, CSR, Packaging, Web & App etc all. The path to purchase is not linear any more. Operating in a sliver is not serving the purpose.

– Leverage the power of content( make RAVES– Relevant, Actionable, Valuable, Exceptional & Shareworthy) and the power of context( MADE: Multi Sensory, Audience driven, Delivery across platforms, Environment & location sensitive) that helps deliver your compelling brand purpose.

– Be always in beta– in adaptive experimentation mode to foster innovation, to learn faster & better, to attract and retain better talent, to hoodwink competition.

There’s no shortage of screens and there’s no shortage of impressions. But there’s a shortage of high value connection points between brands and consumers, which is the whole point of advertising. You have to create effective engagement with the consumer that gets them to buy.

Latin is very much Greek to me but as I come towards the end of this piece some Latin to keep an eye on. We have passed those days of ‘ Caveat Emptor ‘( meaning Buyer Beware). The new skid on the block these days is ‘ Caveat Venditor ‘ ( meaning Seller Beware ). 

As the brilliant Bob Hoffman puts it ” If you want to die an imbecile in advertising, don’t pay attention to art, literature, history, science, anthropology or nature. Pay attention to the Kardashians “.

Going back to Latin mode- friends- Semper Vigilans (meaning stay vigilant)!

ENDS

https://www.groupisd.com/story

https://www.brandknewmag.com

https://www.weeklileaks.com

https://www.brandknew.groupisd.com