
by Rich
Harshaw
This
article is part 2 of a series; click here
for part 1
So here's a quick
recap of the last article: Big, national companies made a fortune
by advertising on the tube. C & R, or Creativity and
Repetition, became the calling card of the big advertisers, and
their methods trickled down into other media besides TV. Now,
here's a critical point: Advertising agencies and business schools
started to "benchmark" these companies. They said, "Hey look at
these big, rich companies getting bigger and richer! I wonder what
they're doing!?" They did a little bit of research and discovered,
"Oh, they're advertising on TV with all this creative,
slogan-oriented stuff, spending a bazillion dollars on
repetition...." which led them to this conclusion: "That must be
how you do it." That must be how to get rich in business in
this country. You spend more than your competitors on the tube, you
hog up all the airwaves, put your name and slogan out there so
everyone sees it 50 quad-billion times, do it all as creatively as
possible, and as a result, you make a fortune."
And you know
what, for a period of time, they were right. We call this the
era of the "brand builders." In the 1950's and 60's, and even into
the seventies to a certain extent, that was a no-brainer formula
for market dominance for behemoth companies with the financial
wherewithal to pull it off. So these ad agencies started running
this formula for their other clients, even ones who were smaller
and had shallower pockets. Business schools started teaching
marketing and advertising based on methods that were being
successfully implemented by the largest companies in the
world...and churning out graduates who only knew one way to do
"marketing." Brand builder marketing and advertising became the de
facto standard for "how you do it," and after a few years,
nobody even questioned the formula.
Which brings us
to the crux of the problem. Everybody reading this article--with no
exceptions...and let me be specific--YOU!--grew up in an era where
almost all of the advertising you ever saw--and certainly all of
the advertising that you consciously remember, like "Who squeezed
the Charmin"--was a product of the "era of the brand
builders." We became conditioned (or more to the point,
brainwashed!) as to what constituted a good advertisement. We
learned the pattern for what to put into a commercial. We learned
about slogans and jingles and being funny. I'm not saying you had
to sit in a classroom and get an MBA to learn this stuff; I'm
saying we learned by osmosis, just by being around it constantly
for years on end. We learned that in marketing and advertising, the
outside perception doesn't have to reflect the inside reality.
That's why I can have the audacity to say "everything you know
about marketing and advertising is wrong." And this is the numero
uno wrongo thingo!
So now, you're in
charge of marketing and advertising for your company, and you need
to create an advertisement, brochure, or website... so you draw on
all of your collective creative resources. If you're going to put
the marketing together yourself, you dredge your mental archives
for everything you've ever seen before--for 30 or 45 or 60 years as
you've grown up. Maybe you've been to business school--got the MBA
on the wall--and you're counting on what you learned there for
solutions. Business school certainly wouldn't steer you wrong,
would it? Maybe you pick up some books from Amazon.com on marketing
and advertising. Or if you're going to leave your advertising and
marketing up to so-called professionals, maybe you go to an ad
agency for advice, or hire some kind of a marketing person or
department.
Well, here's the
sad truth. All of the resources that you have either flat-out don't
work, just don't know how to do it, or they teach you outmoded
stuff based on the antiquated, brand-builder, "spend a billion
dollars on creativity and repetition" C & R model that doesn't
work any more. At best you'll get results that are severely
under-leveraged. Maybe it still works to an extent for Coca
Cola and General Motors because they literally spend over a billion
dollars a year on the repetition side of the equation. GM spends $3
to $4 billion a year on advertising. McDonalds spends over $1
billion. Coca-Cola spends over $1 billion. Proctor & Gamble,
over $2 and a half billion. You throw enough mud at the wall, some
of it's going to stick. But that's why I can unabashedly say that
everything you've ever learned, everything you've ever seen,
everything you've ever done, it's ALL WRONG. ALL OF IT. That stuff
just doesn't work anymore, and even if you do have a billion
dollars to spend, it still isn't the way to maximize your
return. There are new rules to this marketing
game.
The inevitable
resulting mess is known as "the current state of marketing and
advertising"... where the outside perception built by the
advertisements and marketing pieces do not reflect and
reveal the inside reality of the company. To this end, most ads can
be classified into one of two main categories...think about yours:
It's either a) institutional advertising, or b) what we call menu
board-style advertising.
Institutional ads
are ones that essentially say "here's our name, here's our best
attempt at being creative, and here's the biggest budget we could
muster to support this junk." It's C & R at it's finest. Almost
all big companies and ad agencies--along with many small business
and small agency copycats, specialize in institutional advertising.
This is what most television and magazine advertising you see is
comprised of. For an example of what I'm talking about, open any
national magazine to any page and look. Turn on any national
television program and open you're eyes and you'll see it. You've
been seeing this stuff for years now and may not even recognize the
inherent problems in following their lead.
Then there's menu
board style advertising, which basically says, "Here's our name and
here's a list of what we have for sale." Just like a menu at a
restaurant. We have hamburgers, we have chicken, we have salads,
and we have roast beef. Maybe there's even a little picture of it.
In advertising, it's "We're a moving company we load and unload. We
move local and long distance. We move houses, apartments, and
offices. We do commercial and residential moves. We have insurance.
Oh look, a picture of a truck. No duh!" Get the point? Just like a
menu at a restaurant, it's a simple listing of what's for sale.
Many large companies and almost all small businesses specialize in
menu-board style advertising. If you let the newspaper or radio
creative department put your ad together for you, you're almost
certain to get a menu-board style advertisement. It's
vastly under-leveraged because it doesn't do what advertising and
marketing is supposed to do. It may interrupt and get some
attention, but it most certainly doesn't facilitate the prospect's
decision making process, it doesn't build a case, it doesn't lower
the risk, and it doesn't lead prospects to say "I would have to be
an absolute fool to do business with anyone else but you regardless
of price." It just says, "Hey we have stuff for sale, come buy some
from us for no justifiable rational reason other than we want your
money.... if you even happen to see this ad in the first
place."
Next
article: Drearily commonplace
and predictable marketing (yes,
yours!)
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