Nils Randau's Blog

4 days left to finals, then Whistler for 10 days.  I guess Tamar’s marketing strategy of the place worked…

Ok, time for a comment on a marketing blog. The blog I chose was “Katya’s non-profit Marketing Blog – Getting to the point. The link can be found here:

http://www.nonprofitmarketingblog.com/comments/why_i_think_gloom_and_doom_backfire/

In this post, Katya comments on the following ad:

In the ad, the message says “ending slave labor is not this easy”. In Katya’s view, this is a terrible message to send out as it makes the receiver feel helpless. It would be better  to point out that the first step to ending slavery has been taken and that the receiver can go to the sender’s website to take another one.  In the same way, Katya argues that marketers trying to raise concern for global warming shouldn’t be apocalyptic but tell them to “buy LED-bulbs instead” and similar advice.

While I agree that the sender should make it easier for the receiver to find out how to take action against the injustice of slavery, I disagree with her second statement. In my opinion, messages like that let people off the hook too easily and let them go on with their lives without reflecting on what they are doing. Sure, they might buy a slightly more energy efficient light bulb. However, messages like that strenghten people’s beliefs that all we have to do to be “sustainable” is to consume as much as before as long as we every once in a while choose “the green option” (whatever that really means). In my opinion, that is not correct and is just a convenient way to clear our conscience for a while.

Although it is hard for everyone to just stop consuming, at least we should make people more aware of the problem and take it seriously. Sending out the message that we can do everything as before as long as we do some very small changes in our lives will only be counterproductive, as it will delay the time it takes for actual change. These changes would mean that we have to accept that we cannot live exactly the same way as we have done the last 20 years, and it must not necessarily be a bad thing. Changes like these would be things like less cars, higher energy prices (incentive to use it more efficiently) and more locally produced products, cutting down on transports and creating more meaningful jobs where input is more directly related to output (more people can see what direct effects their work has).

Although Katya is correct in asserting that more people will take action if small, tangible actions are proposed, those actions are not what is really needed. Therefore I think it is wrong to choose too simplistic messages. While it is true that too dystopic ads may make it hard for people to choose satisfactory actions, trivializing the subject is not the right way to go.

A couple of weeks ago I was at a very inspiring conference here at UBC, focusing on sustainable business practices. Two speakers really inspired me and made me realize how much can be done in different fields to contribute to a better community. They were in marketing and finance, fields that I personally, maybe wrongly, associate with a strong drive for profit. This seemed to be a belief they shared as well – however, they showed how this is something that can be changed. And as a benefit, this concern about environmental and social issues might in the long run turn out to be very profitable as well.

In this blog post I will focus on Marc Stoiber, founder of the marketing firm Change and now a part of Maddock Douglas. According to himself, he one day woke up and realized that he had spent his life helping products he didn’t believe in. What lead up to this was a cleaning detergent with “a scent for every season – plus orange”. Essentially, he found himself creating needs that neither benefited the consumer nor society as a whole. After a short crisis, he decided to keep doing what he does best, i.e marketing. However, this time he would do it for “the good guys”.

In his speech, he pointed out how green and socially responsible marketing can add value to your brand. A stronger concern for sustainable products among consumers has opened up new possibilities for brands when positioning themselves. However, he emphasized that this should not be seen as the only reason for taking up these practices. Rather, it was more a reminder to companies and consumers that environmental and social concern doesn’t mean that we have to “give up” on profits and production.

In sustainable marketing, you no longer just focus on the 4P:s. No, taking it one step further it’s now…5C:s! In brief, he summarized it as follows:

1. Consumer-facing. Start your focus on things that are directly noticeable to the consumer. This way, the consumer will instantly be aware of the changes being made and can get proof that the company is actually trying to change for the better. This will make it easier for the company to reach out with its less “obvious” changes, as the consumer already is involved in the company and trusts them more.

2. Competitive. Sustainability opens up a new way for companies to compete. It opens up possibilities to differentiate a brand from competitors.

3. Core – As always, it is important to tie the company’s spending on sustainability to its core competencies. A clothing brand should focus on organic fabrics, not research on solar panels. One might think this goes without saying but according to Marc it is a common problem for companies to just dive into “the green market” without thinking it through first.

4. Conversational – Try for an active communication with the consumer. Both point out what you are doing well but also what could be changed for the better. This will instil trust, which in turn leads to loyalty.

5. Credible – For sustainable marketing to work, the efforts must seem credible and honest. Providing objective, scientific evidence that your changes do make a difference goes a long way to ensure the consumers that it is not just a PR stunt.

As you can see, concern about companies’ social and environmental impacts should not be seen as standing in the way for growth. On the contrary, it offers companies new possibilities to differentiate themselves. At the same time, this should not be seen as the only reason for investment in sustainability. Rather, the social, environmental and economic benefits all make up a sum that is greater than its parts.

Hey, what happened to my last post? I know I haven’t posted very often but about a week ago I posted a message and I can’t find it. Must have hit preview or save draft instead of publish. Oh well. Gonna see if I found anything on the computer when I get home.

Just realized I need to find some links pretty soon…will do my best to look around.

Midterm was okay, even though a bit stressful like any UBC midterm. And rather testing a lot of basic knowledge than a few challenging and analytical ones. Gonna take some time to adjust to that I guess.

As I promised last time, this post is gonna be about people who act as friends and salesmen at the same time. Made famous by Tupperware, today many companies have realized the advantages of letting their customers do the promotion for them.  This way, the companies can reach out to customers who are not easily targeted by conventional marketing methods.

One company that has this marketing model as an integral part of their business plan is the Personal Beauty brand “Mary Kay”. Sales of their products are done exclusively by “mini consultants” who throw “parties” and personal demonstrations of the company’s products.

These demonstrations are usually as much about meeting other people and having a good time as acquiring the actual products. This way, the customers will  connect the products with a positive feeling of belonging and friendship, thus creating value and adding to the customers’ loyalty. Aside from the obvious advantages of  having customers prefer your brand over other’s,  the meetings increase sales by putting customers in more situations where they consider a purchase. A customer who just made a purchase wouldn’t  normally be interested in looking for more products of its kind. However, they might still consider going to a “party” for social reasons. Once there, they can easily end up buying products they wouldn’t consider otherwise.

I think this is a good example of  a company that focuses on relationships with its customers for long time sales. Although losing out on some transactional opportunities, its promotion and distribution strategies gives them loyal customers who will contribute considerably to sales over a long time.

That’s all for this week. Next time, I’ll try to find a company that is a bit more manly!

Two days ago I went to listen to Daniel Korten, a former Stanford Ph.D and Harvard professor. The theme was “Creating a Real Wealth Economy for a Just and Sustainable Future”. In essence, his message was that we should try to create an economy that focuses more on “non-monetary” success such as environmental and social improvement of the community. He argued, quite well, against the notion that today’s economic system is “pre-determined” and that a transformation would go against man’s natural will for (self)-improvement. His argument was that what we measure as “improvement” is determined  by the system, and this system can be changed.

As he believed structural change has to come from the bottom, his chosen marketing strategy was to employ grassroots marketing. By traveling around to universities, non-profit organizations and  local communities to promote his books and, more importantly, his message, he hoped to start a discussion. This strategy encourages people to think for themselves and to evolve their ideas by exchanging ideas with fellow-minded. Also, it makes people feel like they are an active part of the change, which motivates them to continue to spread the world and keeps them believing that change is possible.

Grassroots marketing is getting more and more popular and it’s easy to see why. In an increasingly noisy world people are getting tired of the “buy this”-message and grassroots marketing is generally perceived as a more “honest” way to market your products. People tend to trust persons who they regard as peers rather than salesmen and marketers. Off course, the industry has caught up on this and it can already be hard to determine who is a friend personally recommending a product and who is a company sponsored salesman in disguise. Or is there really a difference?

More on this in next weeks blog!

I am Nils Randau, an exchange student from Sweden currently studying commerce at UBC. For the rest of this semester I am gonna blog about marketing as a part of my course “Introduction to marketing”.

At home I am studying a discipline of engineering called Socio-Technical Systems Engineering, specializing in Energy Systems. What I’ve started to realize is that marketing has a lot more to do with my normal field of study than I first thought. Understanding “the big picture”, both technical, economical, political and social aspects of a problem, are of central importance when evaluating future strategies – be it about pushing a product or deciding what to do with nuclear waste.

Also, as today’s video shows, marketing can be used to spread ideas and values that aren’t necessarily based on profit:

This ad already assumes that you have heard countless of times how the planet is getting warmer, that you have seen the statistics and numerous politicans and activists trying to inform you about the consequences. By focusing on emotional aspects instead of rational arguments, the viewer is less likely to get “bored” and reacts intuitively.