• Connect

soundbite journalisim

Warren Buffett’s letter to shareholders nails the idea of "sound-bite journalism".

Last year we saw, in one instance, how sound-bite reporting can go wrong. Among the 12,830 words in the annual letter was this sentence: “We are certain, for example, that the economy will be in shambles throughout 2009 – and probably well beyond – but that conclusion does not tell us whether the market will rise or fall.” Many news organizations reported – indeed, blared – the first part of the sentence while making no mention whatsoever of its ending. I regard this as terrible journalism: Misinformed readers or viewers may well have thought that Charlie and I were forecasting bad things for the stock market, though we had not only in that sentence, but also elsewhere, made it clear we weren’t predicting the market at all. Any investors who were misled by the sensationalists paid a big price: The Dow closed the day of the letter at 7,063 and finished the year at 10,428.

Blogs, tweets, and the social world can fix this. By participating in the stream, the like of Buffet don’t need to wait for an annual letter to disable misrepresentation, they can do it in real-time. Their brand affords them a platform at least equal to that of any media outlet.

  • Connect

Aim Higher

Great article from the Financial Times…. They are right… marketing teams must aim higher…

… in a downturn the real difficulty lies simply in selling anything to world-weary customers who may be satisfied with good-enough but unexciting products.…Prof Kotler has chosen this moment of crisis to ask some big questions about what marketing actually does. “Is marketing the enemy of sustainability?” was one of them. For years the task for marketers was to persuade customers that the latest upgrade, the newer model, was a must-buy. But it is time to challenge that orthodoxy, he said.

In a resource-deprived world, businesses cannot hurl more and more product at customers, supported by extravagant marketing budgets. Prof Kotler recalled the message of a book published three years ago, Firms of Endearment, written by Rajendra Sisodia, David Wolfe and Jagdish Sheth.

The authors found that some of the most successful companies in fact spent much less on marketing than their weaker rivals. But they used the word-of-mouth effect of unpaid advocates – loyal customers – to boost their reputation.

… Another challenge for marketing is to assert itself at the heart of the company’s strategic thinking (an idea also suggested by London Business School’s Nirmalya Kumar in his book Marketing as Strategy). “If you have the right people in marketing it could become your engine for growth,” Prof Kotler told me. But while they might be quite creative on tactics, he added, not so many marketing professionals can do the strategic work.

So why not split the department in two? A larger, downstream marketing team working on current products, with a much smaller, strategic team looking at new markets and new ideas for the coming two to three years.

This could work – as long as the interests of customers do not fall between the cracks of organisational silos. As Harvard Business School’s Ranjay Gulati has shown, for all that businesses talk about being “customer-centric” (and marketing is supposed to represent “the voice of the customer”), many simply are not. “They look at customers only through the lens of existing products,” Prof Gulati says.

Right now marketing needs to aim high. That is what Prof Kotler is urging people to do. And he was happy to concede that, as so often, Peter Drucker was ahead of everyone on this topic, too. He even provided a handy mission statement. “The aim of marketing,” Drucker once said, “is to make selling unnecessary.”

  • Connect

Hanger 9. Brilliant!

Just visited Air New Zealand’s Hanger 9 to see how their new planes will look inside towards the end of this year.

First, the product is astounding and will change the way we think about airline travel. Their business class is already the best. But premium economy is brilliant – I love how they have though through how two people travelling together can have a great experience while those looking to be left along will enjoy it as well.

The breakthrough is the really cool “cuddle class” seating in economy. This is brilliant. I’ll be using it for our next family trip home.

image

Next, the whole experience in Hanger 9 is really cool. You get to walk through the entire design experience and their thinking – something they have every right to be proud of. Hanger 9 gives you real sense of how they focused on the entire customer experience. For instance, no matter what class you are in, you get to order the food you want, when you want it, and have it delivered. You’ll be able to plug your iPod or Dell Mini in and watch your movies on the big screen in front of you. And they are upgrading the best media system in the air to be even better, on even bigger screens.

All in all, a really inspiring experience and great example of a company focusing 100% on its customers.

  • Connect

Cuddle Class….

I love this idea from Air New Zealand… really clever… they are easily the best airline out there…

The national carrier yesterday unveiled the interiors for its new Boeing 777-300 aircraft, which includes the Skycouch, the first economy seating that allows the traveller to lie flat, or a couple to curl up… The arm rests between the three seats of the Skycouch fully retract and flaps come up to meet the seats in front to create a platform … The new economy seats come with small added comforts, such as a pillow that fits over the winged head rest, a port for your iPod, and a larger entertainment monitor.

  • Connect

Erick Is Right…

Erick’s points on communications are right on… if you are a communicator, ignore them at your peril. Having been one for many years, the hardest thing is knowing you rarely have all the information – and the easiest thing is acting like you never do.

PR is not supposed to be fiction and spin. At least not all the time. Occasionally the communications professionals at companies, particularly publicly traded companies, are supposed to actually tell the truth. And perhaps help journalists and bloggers with a story instead of sending them off on a fake trail.

The trick here is a “no comment” actually helps both the communicator and the journalist.