How Capitalism Will Save Us

'Nations that liberalize their economies, that allow people greater economic self-determination, end up moving, sooner or later, toward democracy. Since the nations of the world began to liberalize their economies in the mid-1980s, the percentage of democratically elected governments has surged from 40 percent to more than 60 percent today. China, for example, is not yet a Western-style democracy. But the nation is freer today than it was during the era of Mao Tse Tung and the repressive Cultural Revolution.

Despite all the gloom and doom voiced by its critics, the free-enterprise system is--and has always been--the best way to unleash the creativity, inventiveness, and energy of people and mobilize them to meet the wants and needs of others. That's because free-market transactions, far from being driven by greed, are about achieving the greatest possible mutual benefit, not only for the parties directly involved but eventually for the rest of society.'

- Steve Forbes & Elizabeth Ames, 'How Capitalism Will Save Us'.

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Language or Prejudice?

Note Debarshi Dasgupta's two questions (to Genesis Global School);

'Why can’t Kantabai be my child’s guru?
And why should some opinionated and prejudiced faculty member at Genesis be instead my child’s guru?'

My answers; Of course, Kantabai can be your child's guru and, sure, some opinionated and prejudiced faculty doesn't have to be your child's guru. That's your democratic choice.

But also note, it doesn't have to be any other's. I mean, its a free country we live in and so we are free to choose. Now, I have no idea if the school intended the Advert in question to denigrate Kantabai's choice of language. But one thing's for sure. The Ad agency behind the communique has crafted smart, though in poor taste, copy that sears into the psyche of Indian parents. Again, let me state, I am all for languages of the varied kind flourishing, but I am not too sure if I appreciate moralising on choices made either by marketers or by consumers.

Debarshi shouldn't be taking the school to task. That's shooting the initiator. That's poor choice of target. The real target must be society. For having perpetrated the 'myth' that certain languages can get you better off for the future. But wait a moment, is society surely at fault? Or is that the way things really are? That your command over certain languages surely gives you an edge over others and so there's greater guarantee for a better future?

Think about it.

No society is perfect. Which means people that make up society in many ways are flawed too. Yet, one must appreciate the fact that choices people make in a society are intended at better futures for themselves. At least that's what they believe. And so they must be left to that, so long as no law's broken. Moralising is good for people who haven't sold a dime worth of goods any time in their lives. Theirs is the 'social task' (or is it?) of chasing a pipe dream that ain't gonna fructify anytime in the next million years.

In closing let me quote what junkcafe posted on , 'How Capitalism will save us';

'Free markets do not exist to promote perfection or even eliminate social ills, but to deal with a dynamic world in a rational manner.'

Also, Genesis Global School is in no way going to contribute to the popularising of Kantabai's language.

But Debarshi Dasgupta can. Its a 'free' choice.

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Shopping Emotions

'There are a couple of emotions that determine shopping behavior. The fundamental of them are greed, altruism, fear and envy. Greed drives a customer to purchase more than what he or she needs. A wide range of options, better products and lower prices generate that increased desire to purchase. Often, a customer would consider it a good opportunity to buy more than what she needs and to gift others as well. Higher purchase is also driven by the fear that the current offer may not be available for long and so the product has to be purchased right away. And envy sets in when one sees others buying and making the best out of a deal. 'Sabse Sasta Din' was successful because we were able to effectively capitalise on all of these emotions. The prices were great but they were on offer only for a day. Customers noticed everyone else - friends, colleagues, neighbours heading to Big Bazaar and they didn't want the opportunity to pass by. With all these emotions working in complete harmony, the stage was set for a huge response.'

Kishore Biyani, 'It happened in India'.

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Midnight Train To Georgia

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Is it the rolls, or is it me?

Breakfast today needed me to dig into Paneer rolls that Alphy had packed, to take to work. Unwrapping the silver foil and taking the roll out saw a minor disaster unfold. The stuffing spilt out. The li'l mess it created irked me. And I wondered why Alphy couldn't have sealed the roll on any one side which would have prevented the spill.

A moment later something else struck me. Maybe I could have held the damn thing other than in the bazooka style. Maybe that could have prevented the mess that had irked me. Maybe I could have been more careful rather than have expectations of Alphy.

Its instinctual for us the believe the other's the transgressor. Because that protects us from our own frailties. Its helps keep the illusion that we have about ourselves alive. Pity, because such foolish behaviour is what stops us from truly knowing ourselves. And our lives turn into a quest towards finding who's wronged us, rather than searching within.

Now, such attitude is no-no for marketers too. Because it limits the ability to assess a context from other than our point of view. Meaning we can't see the customer's point of view. The only 'view' that should matter. The point of view that helps find answers to consumer behaviour. In fact, if we fail to do so, that is, assume the customer's at fault for what's happened, we perpetuate our inability in finding solutions that could otherwise help find favour with the one who keeps our business alive.

Now, I am in no way suggesting that other's can never be at fault, Of course, they can. But I only hope that comes after some soul searching. In fact, the next time around, before the rolls hit the kitchen table, I will have a talk with Alphy about sealing any one side.

Maybe even participate in its making.

Should be fun.

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Passion can do what Onida can't

Brands supposedly take consumer experiences beyond what's functional. That is, functional performance is a taken. Its the psychological that's the add on, that blooms on purchase. I mean brands connect on the emotional front.

But what if the brand goes kaput on functional performance and what's almost a non-brand does well on that very parameter? Let me illustrate. A few years ago, we bought an Onida DVD player with assurances that it will play all formats, even scratched DVDs. Tell you what, it didn't. Recorded DVDs had a hard time playing. On our part, we didn't heap any blame on the brand thinking its a DVD problem.

A few weeks ago, visiting parents brought with them a DVD player that they had received as a gift for having subscribed to a Cable channel. The player was a brand called PASSION. Never heard of it. It didn't even have the sleek look Onida had. But guess what it did? It played all those 'recorded' DVDs that were gathering dust. More than being happy at this, we were surprised. How can Passion do what Onida couldn't?

The kiss of death for a brand is when it fails on what its supposed to. When I buy I a durable, I say, to hell with the emotion, the brand must do what's it bought for. If it can't, I give it the Medusa look. My warm embrace is taken elsewhere, now reserved for the likes of Passion.

After all the name though corny, backed up performance. In fact I can even feel the emotion creeping in.

Welcome, ladies and gentlemen, to the birth of a brand.

All rise.

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Bangalore Weather & Sales Promos

The Bangalore weather reminds me of Sales promos.

Neither does the weather leave me be fully well (been down with the sniffles for what seems like forever) nor does it strike me down. Promos too are similar. They don't give you anything substantial though they make it seem as if its the deal of a lifetime. Nor do they leave you empty handed. I mean it isn't just the product that you get for your money. There's always something that's close to worthless that comes along.

Its the 'neither here-nor there' syndrome. Better off because of the promo? No. Worse off? No again.

Sick? No. Well? NO!

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The mobile phone lesson

Its seems the four metros in India have crossed 100 percent mobile teledensity mark. Meaning, the number of mobile phone connections in these cities are higher than the number of residents. Now, despite the fact that in India statistics are always shaky, this one has important consumption behaviour implications.

Two, in fact.

That if technology creates products that enhance our lives, we will take it to it wholeheartedly. Mobile phones personalise conversations. Plus they help us communicate without the limitations of geography. And of course, they let us talk.

Also, if technology ensures that costs to consumers drop, they will up consumption. In India, falling rates see people talking more. Falling handset and connection costs see people taking to more than a single phone and connection.

The lessons? Its ain't 'new' products that are needed. Its products that understand our ways of life and help us enhance our experiences that will see mass adoption. Also, its products that fit within our means that again see an explosion in terms of adoption. And so if you keep those prices down, you will see greater levels of consumption.

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Questions with no Answers

At times, people ask me questions, and then before I can gather my wits and answer, they lapse into a monologue that tells me what the answer should be. If I take the cue and answer the way they expect me to, its a 'win-lose'.

Win for them, because they hear what they want to. Lose for me because I feel like the idiot. Though there are times, when I have this wide grin in my head. Guess then I should tag it a 'win-win'. They've got their answer and I am grinning.

Customer exchanges too can at times, turn out like the exchange above. The customer gets into a retail store to buy a product and then lapses into a monologue, telling the shop floor person what's the best buy. This calls for 'smart' judgement on the part of the sales person. If the choice of the customer is a good one, breathe a sigh of releif. If it isn't, decide whether to correct or not. I'd say, in most cases, don't. After all, there's no guarantee he will heed to you and even if he does, God forbid, there be a problem later, the customer will squarely place the blame on you.

So I say, let him talk. And let him buy. His choice. Just like I let the other person have the answer he's told me. The one he seeks.

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Who gets the lion's share of dessert?

At work, for a change check this out. When at an informal place like the cafeteria, notice who the servers respond to with a sense of urgency. I mean, who do they bend backwards to serve? There's gotta be some people at your company who command that kind of response. Tell you what, these important Uns may not necessarily command greater power via the organisational hierarchy, yet they manage to call the shots, especially in places like the cafeteria.

Why is that?

The answer lies in what's called perceptual interpretations. That is, the servers at the cafeteria may have no clue about what's on the hierarchical chart. Yet, they know some people are more important than others. They infer that because they see these people hobnobbing with powers that be and overall, their demeanour will seem to exude power. They move about purposefully, adopt commanding mannerisms and so on.

Never mind reality. In corporate life, despite what formal hierarchies dictate, some people tower over others. Its the order of the corporate world. What's interesting is, such orders extend everywhere, even into the world of brands.

Despite the fact that two brands are dead alike, in our minds, one will tower over the other. Or others. Thanks to perceptions. We see the 'higher-up' brands on TV presented in a manner where our minds register them as superior. And so if our consideration set features a few similar brands, our perceptual interpretation will 'up' one above the rest. The resultant effect may be a purchase in its favour.

Its similar such favours at cafeteria line-ups too. Watch carefully and you will see a generous helping of the dessert go to the powerful one. You sadly are left with a meagre spoonful.

Pity, huh?

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Whither Malayalam Cinema?

'In the eighties, a “Malayalam film” screened in the north would have carried two contrasting kinds of stigma. It could be high art (Aravindan, Adoor, John Abraham; always spoken of in awe, mostly from a safe distance). Or a dubious sort of porn, playing morning shows in halls where the seats would clatter and bite. Either philosophy or filth—that’s what everyone thought. Films that occupied the middle of the spectrum were the secret that never got out. Unbeknownst to the rest of the country, for two decades, Kerala made perhaps the best mainstream films in India. Commercial cinema had hit a strange barren patch up north, lifeless for no apparent reason, like a marathoner hitting the wall—Hindi turned infantile, Bangla went into intensive care (continues to be there). Tamil went hip—it got a spritz of MTV and technical savvy, and earned Japanese fans. But Malayalam witnessed a silent efflorescence, across popular genres. A range of stories and story-types, scripts full of nerve and sinew, naturalistic acting. Credible, rooted and real—and very entertaining. In the high tide of that phase, novelist-scriptwriter M.T. Vasudevan Nair, director T. Hariharan and superstar Mammootty had teamed up for the lush period epic Oru Vadakkan Veeragatha, a revisionist take on a balladic villain, just one of a fistful of Malayalam ‘hits’ that made it to the 1990 IFFI Panorama. Now, two decades later, the troika has put together the costliest Malayalam film yet— a full house Sunday matinee in the carpeted hush of PVR Ambience, Gurgaon, worlds away from those morning shows.'

- Sunil Menon, 'Pazhassi Raja.'

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Its isn't the food, stupid!

This should be interesting. Roadside Kebab king Bade Miyan is going premium. On cards, is a slew of fine dining restaurants that will try and tickle fickle up-market taste buds. Bade Miyan wants to take the premium road because his upmarket clientele who 'home-order' his wares, as they don't want to be rubbing shoulders with 'Aam junta' (masses) in the dust and heat, will get a chance to dig into his cuisine in surroundings that appeal.

'If all goes to plan, uniformed waiters will replace the existing crop of chokras, piped music should take the place of car horns and swear words, and freshly washed serviettes will outsmart the ‘mini tissues’ being handed out now. For the 70-year-old Mumbai street-food legend, the transformation from a 10x4 feet steel stall to a restaurant will be a quantum leap.'

The question is, will Bade Miyan make it with the rich and mighty?

Yes; that is if he understands that the change in consumer segment makes a change in mindset imperative. Let me explain. The high and mighty are as ignorant or knowledgeable as the aam junta when it comes to food. Though they may pretend otherwise, they don't know anymore about what's 'authentic' food. Of course, there may be exceptions. But they are few and far in between. To cater to this hoighty-toighty crowd requires Bade Miyan to take food beyond 'food' to an 'experience'.

It isn't the food, stupid!

Up-market dining is about appealing to all the senses, not just the palate. The surroundings and the ambiance must reek of 'manufactured class'. The music must be sublime. The food must come garnished. The waiter must be adept at 'silver service'. That means serving from a bowl, using a service set, only from the left hand side. Right is for plated food. The Cook turned Chef now has to wander the dining hall, make small talk. Promise recipes to fashionable women.

Tell you what, for Bade Miyan, this will be radical. I am not so sure how comfortable he will be with this sort of business model. For his sake I hope he is. Here's wishing him the best for the 'Bada' road ahead.

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The Spell Breaker

'One of our great failings is our gullibility and how prone we are to superstition. More than any other nation perhaps, we are taken in by a whole host of outlandish swamis, gurus, yogis, babas, acharyas, astrologers, palmists and the like. Sadly, even though they have repeatedly been exposed as fraudsters, they continue to flourish and determine much of our lives. We need more Abraham Kovoors and Basava Premanands to steer us on the rational and scientific track.'

Saluting Basava Premanand. The Spell Breaker.

R.I.P.

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Burnin' Up

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Who does Hollywood hate?

'Good people hurt innocent people every day. We lose our tempers, say things in anger and generally come to regret it later. That’s one of the rougher parts of dealing with the human condition. And when good people watch Larry David piss on Christ, his mocking and blatant disrespect makes them angry. Some might even think, ”I should produce a YouTube of me pissing on Hollywood’s god – Barack Obama!” Which wouldn’t be a difficult or expensive thing to do in this digital age.

But good people don’t follow through on such things. Eventually, their better nature takes over as they think about how such a cruel and disrespectful act might hurt those they know who admire Obama … or the president’s two young daughters.

Nothing, however, stopped Larry David — not the time, logistics, planning or funds needed to put this cruel episode together. David’s not a dumb man, and neither are the many people who made the production possible. Every one of them knew exactly what they were doing, what the outcome would be and what Christ means to His followers.

And they relished every moment of it; the planning, execution and most of all, the uproar and disappointment that followed.

Anger puts cruel thoughts in your head. Hate’s the fuel required to take you across the finish line.

There’s no shortage of fuel in Hollywood.'

- John Nolte, 'Pissing on Jesus: Hollywood Hates Us Exhibit 11,567.'

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Right to Live & Reason to Kill

I guess what happened today morning is what got me to finally write, what I am about to. While reading the paper early this morning, I heard the bedroom door creak. Scampering out of it was Jaden, who soon got his li'l legs to carry him past me, to the kitchen where Alphy was. He sprang into her arms and planted a broad morning kiss. Alphy's grin was huge.

Could there be a better start to a morning?

But at times there aren't. A few days ago I woke up to news of a brutal murder, of a family of three in Bangalore. The murdered included a girl of eight. Reading the story was heartbreaking. It seems the girl just before she was done to death was sketching something on paper. Because when her body was found, beside it was pencil and paper.

The police seem to be close to cracking the case. I hope they do. And then I hope the honorable courts find whoever responsible for death of the child, not worthy to live. I hope its a death penalty for the murderers.

Now there's a distinct possibility that my reasoning is driven by emotions, especially since I am a father to a three year old son. But I know it isn't. Because I believe society must find a minuscule minority who commit such crimes not fit to their lives. In letting them live, you disrespect the right to life of a murdered li'l girl. Of course, I am in no way suggesting that opportunity for reform be denied to criminals. In fact, every chance possible must be given for reform. Yet for people who commit crimes sans any semblance of humanity, no such favours should be given. And in denying it, and doing away with them, society rids itself of evil. Also, let this be known, in doing so, society in no way turns barbaric. If society didn't, call that heartless and barbaric.

As John McAdams at Marquette University's Department of Political Science said on deterrence (oft quoted as to why death Penalty should be abolished), "If we execute murderers and there is in fact no deterrent effect, we have killed a bunch of murderers. If we fail to execute murderers, and doing so would in fact have deterred other murders, we have allowed the killing of a bunch of innocent victims. I would much rather risk the former. This, to me, is not a tough call."

I know Human lives are no comparison to anything else, yet, I think I may draw some parallels. In business too, there come times when the plug must be pulled. Off brands that fail consumers. Letting them potter around is unfair to other brands in the firm, that do well. Or brands that can replace them. 'Turnaround' is a good idea. Business History has its set of turnaround brands that have bounced back. Yet, when one's sure the brand's beyond repair, its better to show no mercy. Its better to pull the plug.

Its the right and the most sensible thing to do. Period.

For readers interested in the contentious issue of Death Penalty, I'd recommend ProDeathPenalty. Its definitely worth the visit.

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The lesson Michael can teach Maoists

The Maoists seem to go from bad to worse. Their sister organisation held up a train a day ago in India, so they could scrawl graffiti calling for their comrade's release. And pray what's behind all such destructive acts? The desire to uplift the downtrodden.

If the Maoists do really want social upliftment, they should look to a place and a people who have had immense success at it. In fact, I'd recommend the Maoists look at a recent act that's radically different from their philosophy, yet, is what's true 'upliftment' philosophy. Of course, I can tell you the Maoists will never get around to understanding it. After all, aren't they named after a mass murderer? That should be an indication of how sensible they are.

Across the ocean from where the train was stopped, the post death jamboree rolls on. I am talking Michael Jackson. In death he's opened up opportunities like never before. Former non-released tunes are now being brought into the open for a price. In life, I wonder if these limp tunes would have had takers. In death, there are many. Michael's life's on screen. Viewing comes at a price. His funeral attendance rights too brought in the moolah. And I can tell you, the post death marketing juggernaut won't stop anytime now.

Now the intellectual moralists may not like what's happening to one who's dead and gone. Tell you what, these dimwits are the same ones who sympathise with goons who hold up trains. What a pity. I wish they knew that the only philosophy that matters is one that can be traded. Where the ones involved in the trade benefit. Their lives get 'uplifted'. If the Maoists wanted answers to Social upliftment they should look to the likes of people who cash in, even in death. Simply because there's money to be made. Make no mistake, nothing that breaks the law of the land must be allowed. But if something's within the law, and can be traded, so be it. In fact I'd say, encourage it. The Maoists with a laudable goal of social upliftment should teach the tribals the tricks of trade. Because that's the only philosophy that matters. One that engineers social upliftment. Instead of blocking trains, one must learn to sell to people on trains, learn to participate in the spoils of transportation.

Because in the end, our salvation lies not on a held up train. But on one that's running. Held up trains are only good for socialist graffiti. The ones running on tracks open up markets for capitalistic trade. Of course, Social upliftment too.

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Why women bitch

'So why do women bitch? Some Sociologists say the reason is Biology. Appearing stronger than other females in the group puts you at the top of the pecking order, meaning you are more likely to be chosen by the most desirable male. We may live in a more sophisticated society now but this biological determination still manifests itself in the urban jungle, with women vying for promotion and partners in an increasingly competitive world.

As society still expects women to be well behaved, our aggression must be veiled - meaning that the most lethal criticism is invariably couched in sycophancy. "It must be lovely having small breasts," a fellow author said to me recently at a book launch. "Clothes must hang so well."...

Why is bitching the female weapon of choice? Well, for starters, we women are more verbally dexterous than men. Women use, on average, 350 more words in their daily vocabulary, although my husband says that this is because we use 35000 more words in a day and, for men, there are only so many ways they can find to say "Yes, dear".

Shooting from the lip is our defence. While most men grope their way towards a single entendre, women can double and TRIPLE them. Women are the Navratilovas of the back-handed compliment.'

- Kathy Lette, 'Why the BITCHING never stops.' (Good Housekeeping)

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Will we save the Tiger?

I guess the Tiger's under threat in India. The magnificent animal faces extinction if something's not done to stop the poachers and depletion of the its habitat. Radio Indigo based in Bangalore has been running a campaign to help save the Tiger. Radio Jockeys and other celebrities who feature on the Radio channel have been for some time now, trying to get us people to participate and do something about the Tiger.

The question is, will we? Do we care for the Tiger? And if we did, why?

The answer to the above mentioned questions lies buried in our understanding of Human Motivation. We are moved to act only if two conditions are satisfied. One, the problem or the issue we face must be known to us and be of importance. Two, the issue/problem that we face must be bigger than others that we encounter in our lives. I mean, that the Tiger's in trouble should be of more importance than, say, our need to renew the car insurance that's running out, or the pressing need to pay the kid's fees at school, and so on. If it isn't, I am sorry, the Tiger's plight won't get us to bat an eyelid.

If as brands you can't move consumers to act in your favour, know this. One, you aren't known or aren't important enough as a need-solution for them to act. Or, maybe you are important, but someone else seems to be even more. It could be a competitor brand, or another product in another category.

For the Tiger's sake, I wish something's done. But if the masses don't join in, don't blame 'em. Because they are busy tending to what they think is more important.

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Dismantling America

'How far the President will go depends of course on how much resistance he meets. But the direction in which he is trying to go tells us more than all his rhetoric or media spin.

Barack Obama has not only said that he is out to "change the United States of America," the people he has been associated with for years have expressed in words and deeds their hostility to the values, the principles and the people of this country...

Nothing so epitomizes President Obama's own contempt for American values and traditions like trying to ram two bills through Congress in his first year-- each bill more than a thousand pages long-- too fast for either of them to be read, much less discussed. That he succeeded only the first time says that some people are starting to wake up. Whether enough people will wake up in time to keep America from being dismantled, piece by piece, is another question-- and the biggest question for this generation.

- Thomas Sowell, 'Dismantling America'.

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Paranormal Activity is Marketing Activity

How does a movie shot on a budget of $11,000 in a week in the writer-director's (Oren Peli) home become a top grosser in Hollywood history? Note, cash registers are still ringing. Also note, the movie had in the past (2007) played a few fright festivals.

So, what's different now? What happened?

The answer is one that should turn PA into Marketing legend. Paranormal Activity is the perfect example to brilliant marketing. It got the Marketing Ps, dead right.

As a product, though not pioneering, PA is old wine in a fantastic new bottle. Sure, Blair Witch Project was the pioneer, but PA perfected the art of scary by presenting it in an edgy new format. No jungle or getting lost for PA's characters, instead its the claustrophobic environment of a bedroom that plays out on screen. The cine viewer, by the sheer pull of spooky events in a bedroom, is forced into it, to participate. And viewers participate, because unlike the blood splattered gory movies, PA keeps them on tenterhooks with cutting edge suspense. After all, at some time of our life, our bedrooms scared us enough to look under the bed. So we better be frightened of spooky bedrooms.

PA also got its viewer segment dot on. Note; 'Two weeks ago, Paramount started playing Peli's film at midnight in 16 college towns. Many showings were sold out. Sorry, come back next week, if you dare. No tickets created a hot ticket — the movie grossed $1.2 million in its early, limited engagements — and Paramount stoked the fever by urging fans to go online and "demand" a wider release. More than a million such requests came in, allowing Paramount's website to brag that PA was "the first-ever major film release decided by You." '

A 'You' driven product gets the best communique ever. One that emanates from the consumer (read viewer) himself. Imagine consumers demanding a movie be shown! And what about all the requests that came in? PA soon spread its distribution net to cover as many 'relevant' viewers as possible. This weekend, PA has expanded to all-day runs on 159 screens in 44 cities, and according to early reports, it's headed for a box-office breakout — perhaps the highest three-day gross of any film showing in fewer than 200 venues.

PA is a case in Marketing success. The lessons it can teach are many. But above all, its a lesson that should enthrall small time entrepreneurs worldwide. That you don't have to be an established deep pocket firm to be successful with consumers.

That, all you need is Ingenuity & Marketing.

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If God's Conservative, is CNN doomed?

Connect these two.

One, In the United States, Conservatives continue to outnumber moderates and liberals in the American populace in 2009, confirming a finding that Gallup first noted in June. Forty percent of Americans describe their political views as conservative, 36% as moderate, and 20% as liberal. This marks a shift from 2005 through 2008, when moderates were tied with conservatives as the most prevalent group.

Two, CNN, which invented the cable news network more than two decades ago, will hit a new competitive low with its prime-time programs in October, finishing fourth – and last – among the cable news networks with the audience that all the networks rely on for their advertising.

Now, who are the leading news guys on TV? Bill O'Reilly tops at 881,000 viewers and Sean Hannity rakes in 659,000 viewers . Liberal news analysis is way behind.

Consider the first snippets' implication on the second. Conservatives outnumber Liberals, 2 to 1. On TV, Fox's viewers outnumber their liberal counterparts, almost 3 to 1. Which means in addition to conservatives glued to O'Reilly and Hannity, moderates too seem to be joining in.

Where does that leave liberal news media? Of course, as a viewer segment liberal numbers are big enough to be catered to. But the question is, how many channels can profitably operate, pandering to bleeding liberals? Not many. And that's why CNN's going down.

What choices does CNN have? Reinvent and go the Conservative way. Its a good idea, considering there aren't any other strong conservative networks jostling with Fox for conservative eyeballs. But, that isn't going to happen any time soon, considering the fact that liberals can't and won't see business sense anytime in the near future. Isn't that why they see Obama as the Socialist saviour? Which means the choice CNN has is to ratchet up its liberal propaganda to the level of Chris Mathews, Keith Olbermann and Rachel Maddow, that may give them a chance. To stay afloat. But then again, CNN already has its opinionated sister network in HLN.

I say, it will be tough going for CNN.

Brands that see their segments dying, have three stark choices. Either abandon the segment to move to a growing one (reinvention becomes a must), or fight hard to eat into competitor share (added investment becomes imperative), or to go on their knees and pray hard (humility is non-negotiable) that their segment numbers grow.

For CNN, I recommend prayer. But then I realise, isn't God conservative?

Data Graph: Gallup

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Is being smart, being right?

Though they often tell us that being ethical is about choosing right over wrong, it ain't as simple as that. Right over wrongs are easy. Its right over just' a li'l less right that's difficult.

In Management its said, you have to work 'smart'. Pray, what's smart all about? And do ethical issues arise when you take the 'smart' way? Take the case of a brand that doesn't tell you that the claim it bandies about is a result of research on a skewed sample. For example, a fairness soap that claims 98 percent of its users felt fairer in two weeks, makes a 'smart' claim. Not a 'right' one. If broached, the brand will point to some flawed research. Note, reality is otherwise. Again, take the case of media publications. They all claim to give us the 'truth'. What they really mean is, their version of the truth. That's again 'smart'.

So in tom-toming 'researched' claims or telling us they tell us the truth, or that they care for us consumers, etc., brands do what's smart. Just like at work, when people go with the boss' dumb idea, they do exactly the same. In pointing out the weakness of an idea, far from earning the boss' approval, they risk his wrath. Maybe even promotion up the hierarchical ladder. So they shut up, and play along. The boss is pleased, They get their ride up; its all round win-win. Though how far the organisation's benefited is any one's guess.

Doing the 'real' right things, and not the 'smart' right things, calls for courage. Because in doing so, there's bound to be a loss. And if some one's not up to that loss, I'd say the smart route's the best route. That goes for brands too. Stating that as a media magazine, you will always give us the truth is 'smartly' right. Not 'real' right. And as mentioned when I started, the choice here is not between right and wrong, its between 'smart' and 'right'.

Smart 's better.

Though I reserve my admiration for losers who don't go smart, but right. The ones who 'lose', who sacrifice, for the sake of what's 'right'. Without qualms. Without complaints.

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Grocery Store Musical

Improv Everywhere is a collection of artists who stage scenes in public places. For tonight’s Late Movies, here are a few favorites. Their latest effort is called Grocery Store Musical, featuring six undercover actors who sing a lovely song about fruits and vegetables mixing together.

Via: MentalFloss

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Venus

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The pipe dream of Social Justice

Of course, the call for 'inclusive growth' seems all too human. Yet the idea of an equitable society is flawed. Because that is isn't the way nature intended anything to be. Hierarchies are but natural. Flattened worlds, the kind seen by Thomas Friedman, can't and won't exist. Its a pipe dream.

Equitable societies driven by inclusive growth seem to be pet talking points for politicians. And that is but natural. After all if such Utopian dreams have to come to fruition, taxpayer burden has to grow. The funny thing is, large sections of society can't come to terms with the fact that 'social justice' is a canard. Because it makes them feel as if they aren't doing their bit. And so they are like lambs led to slaughter, by hair brained government schemes, that instead of wiping out poverty, make the people in charge more prosperous than before.

Herbert London addresses the issue of Social Justice and puts it the 'right perspective';

'For many, social justice is a form of egalitarianism. Why, it is sometimes asked, should a few have so much and the many so little? This is the fairness gambit. Overlooked by acolytes of this position is that individualism on which this nation has put a premium is often at odds with economic equality. If people are free to pursue their goals, some are likely to be more successful than others.

The government has attempted to legislate a form of egalitarianism through progressive taxation. But even with a progressive tax designed to reduce the wealth of the most successful Americans, income disparity cannot be eliminated. Unless you change human nature and incentives as the Soviet Union unsuccessfully attempted, economic equality (read: social justice) is unattainable.

It is instructive that so-called progressives want to gain control of the state in order to bring about social justice. However, whenever this effort has been successful the progressives or radicals end up rewarding themselves and impoverishing those they claim to represent. Poor people are invariably subject to this political protest chant, but most know that it is a fiction borne of demagoguery.

Life is not fair — an observation everyone understands intuitively. The rich want something they cannot buy and the poor covet what the rich already have. If there is psychic justice, it is found in religion where every believer is equal in God’s eyes. But in the City of Man, social justice is a chimera, often sought but impossible to attain.

Perhaps it is time to inter this notion, bury it deep into the past. Of course, that isn’t likely to occur when so many are committed to its retention. They will parade across our streets calling for social justice as if they had any idea what it is they are seeking.

This is the lamentation of our age, a chant of frustration and desire. As long as governments seek to address this apparent concern manifest as passion, there will be reinforcement for the employment of these empty words. Listen carefully and you will hear the words “social justice” at any protest rally. This is a case of reifying fake ideology.'

In the world of marketing too, brands may be tempted to work for the 'greater good' of society. Bad Idea. Brands have one responsibility, one alone. Create and deliver value to consumers. In doing so they create fertile ground for what is a fair exchange. Products and Services for the consumers' money. A part of which the brand then pays its employees for being architects to the fair exchange.

And that for you, is how social good is propagated. Governments, instead of preaching inclusive growth should concentrate on their one critical responsibility. To provide for an environment where such fair exchanges flourish, within the confines of the law of the land.

Social Justice will follow.

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7 Lies in Under 2 Minutes

Via: Atlas Shrugs

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Stars fall, Institutions musn't

I guess its bittersweet for ISB.

The FT MBA rankings has put ISB at No. 15. That's the sweet spot. The bitter one refers to the arrest of Anil Kumar, co-founder and member of the executive board of the Indian School of Business. This follows another, earlier this year. Mendu Rammohan Rao, former dean of ISB, resigned after questions were raised over his role as the board member of scandal-hit Satyam Computers.

As a business school, ISB is intact. In fact their response to the scandal has been measured and mature. The Dean has acknowledged Anil Kumar's contribution and has refused to pass judgement before the courts decide. But what's even more noteworthy is the image ISB has built over its few years in existence, sans personalities. ISB's focus on 'Global Learning' rather than personalities has paid off. Maybe this wasn't intentional. But their not hyping personalities associated with the school has stood them in good stead. Personalities fall, the Institution doesn't. Now this far cry from others who are personality driven. The risk they run is, if the personality's maligned, it rubs off on the institution.

Its smart for brands to focus on their core offering. Associations must be temporal. Because celebrities fall. And Brands that bank on celebrities go down with the star. But brands that have their core value proposition intact, and deliver on it consistently, won't be affected by a star's fall from grace.

Just like, Anil kumar can go down, ISB won't.

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Who's listening to Talk Radio?

'I’m sorry, but I don’t see a sign at the clubhouse, saying “no liberal hosts.” The only sign is from the public, who hates them. It’s called supply and demand. The demand is for a conservative viewpoint – and it’s currently being supplied.

What happens when you supply a product for which there is no demand?

You get Air America. Some might call that a noble experiment, but it was neither noble, or experimental. Instead it functioned like a jar of leftwing preserves– a time capsule of corrupt liberal thinking, circa 1977. And, of course, for NPR to succeed, it needs government assistance. For liberal ideas to survive, you need welfare.

So, in short, CNN is right: talk radio is about access. But they’ve got it backwards. The reason why talk radio is conservative isn’t because radio limits access for the left. It’s conservative, because the rest of the media limits access from the right. Other than Fox News, talk radio is the only place you can hear another point of view.

It’s a shame CNN can’t be happy with that. But like a whiny child who needs all the stuffed animals in the toy store, it won’t rest until there’s no opposition. It wants the Fairness Doctrine, when what it really needs is a spanking.

And if you disagree with me, then you’re probably a racist.'

- Greg Gutfeld, 'CNN Perplexed By Talk Radio'.

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Consumption contrasts in Tiger vs. Dragon

Its fascinating to study the contrasts in consumption behaviour in India, vis-a-vis China.

China's been a difficult market to crack for foreign firms. What's interesting to note is the Chinese consumers' reaction of foreign goods. Undercutting prices has not worked for MNC brands. In fact Chinese consumers perceive these brands to be costlier, despite the fact that they really aren't. A Nielsen survey suggests that 'one strategy that has brought success to several foreign firms has been to charge high prices—a surprise, given that earnings in China remain quite low. The report concludes that Chinese believe that foreign brands are more expensive, even when they are not. That suggests that they should aim to compete on quality rather than cost.'

Now this is a marked contrast to what happens in India. Indian consumers may aspire for foreign brands, but aren't enamored by high prices. The mass markets in India don't have a problem sticking to an Indian brand if they find it to be value for money. Foreign brands taking on mass markets in India have been forced to ride the 'low price-good quality' bandwagon. More so because competing Indian firms have been able to deliver on this 'value for money' requirement.

Balakrishna and Sidharth writing in the Hindu BusinessLine identify two key initiatives that are a must for MNCs to crack Indian Markets. One, make products affordable, and two, get your consumer segment right.

They state, 'Foreign companies that entered India lured by visions of a "250-million strong middle-class market" are beginning to realise two key characteristics of the Indian market: India is a low-income market and while it might have millions of consumers, each individually consumes little. Many foreign companies selling branded consumer products and services have been compelled to alter their strategies in line with these two characteristics.

To succeed in the Indian market for both products and services, foreign companies have come to realise that it is necessary to make the products affordable, address the right segment, widen their offerings and adapt their product to Indian needs, and to promote community rather than individual usage.'

India and China with their vast populace remain consumer markets of the future. Yet to successfully tread either markets, MNCs need approaches that are markedly different.

As they say, different strokes for different folks. That's the key.

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Curing non-existent ailments in Education

Though Education Minister Mr. Kapil Sibal has his intentions right in terms of Education 'reform', his prescription seems to be going awry. His latest suggestion of including XIIth standard marks as part of evaluation criteria for admission to the IITs seems fine, though, on a personal note I don't think it matters one bit. But when he points to the sprouting of IIT coaching institutes as one of the reasons to bring XIIth standard marks in, he's stumbles on economic logic.

In fact, as one of the coaching institute Director pointed out on TV, inclusion of XII standard marks is an added opportunity for coaching institutes to offer coaching classes for XII standard exams. So the new policy, instead of shutting them down, will only help them grow. What defies complete economic logic is the Minister's assumption that a change in the evaluation criteria will arrest the growth of coaching institutes. You don't need to be an economist to figure that the existence and continuance of a business firm solely hinges on one factor. Consumer demand. If there's demand for coaching, institutes will flourish. You want to shut the institute down, curb demand. If you want to curb demand, let kids get into the IITs sans the JEE. Of course, that isn't possible. So institutes will remain. There's nothing anybody can do about it. Not even a minister.

But beyond all of this, there's the all important implication. The supply side scarcity when it comes to education in India. And that scarcity exists because the supply side is still regulated by the government. So education reform shouldn't be about IIT admissions, it should be about letting the private sector participate, unfettered, in offering education services to student consumers.

But then you may ask, what about quality? Fly by night operators? Of course, the Private participatory scene wouldn't be perfect. But it surely will be better than one controlled by the government babu. I know it isn't easy for a populace that's grown up on government services to trust the private sector to do better. But economic logic proves why private sector's always better.

Note Milton Friedman in 'Free to Choose', talking about 'Who protects the Consumer?';

'Ask yourself what products are currently least satisfactory and have shown the least improvement over time. Postal service, elementary and secondary schooling, railroad passenger transport would surely be high on the list. Ask yourself what products are most satisfactory and have improved the most. Household appliances, television and radio sets, hi-fi equipment, computers, and, we would add, supermarkets and shopping centers would surely come high on that list.

The shoddy products are all produced by governments or government-related industries. The outstanding products are all produced by private enterprise with little or no government involvement. Yet the public - or a large part of it - has been persuaded that private enterprises produce shoddy products, that we need ever vigilant government employees to keep business from foisting off unsafe, meretricious products at outrageous prices on ignorant, unsuspecting, vulnerable customers.'

Also watch Milton Friedman discuss Education in the video above.

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A Man Apart

'At first I thought his initial popularity would carry him through to a second term. But as each day passes and the false, almost inappropriate gestures register with the people, Americans are beginning to recognize this president as a man apart. He is our stranger in a land he doesn’t understand.

Americans are not warlike; nor does imperial ambition fill their soul. They have done almost nothing for which daily apologies are necessary. Their blood soaks the beaches of Normandy; their graves litter European towns. And their fortune saved millions from the plight of destitution. Americans do not appreciate a man so removed from their history, so out of tune with the American experience, that he reflexively expresses regret for the very conditions that should engender pride.

Perhaps this president will learn. But I am not confident that can happen. His life experience without a father in his home and a mother seeking adventure abroad was unstable. His closest associates vilified the nation he now leads. Is it any wonder his wife said she could take no pride in America till now? The past is to be rejected. Milestones in history are erased from memory as storage, cast aside as unnecessary.

This is a unique moment in our history. It is certainly the only time in my life when our national instincts are being reconditioned. From a nation that was a model to the world, we are now told that superiority is unbecoming, a hindrance for the emergence of global egalitarianism.

President Obama, as a man apart, may attempt this recasting of America. But, as I see it, America is not yet ready for his experimentation and, most likely, never will be.'

- Herbert London, 'Barack Obama: A Man Apart'.

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Bonoising America

'Many have spoken about the need for a rebranding of America. Rebrand, restart, reboot. In my view these 36 words, alongside the administration’s approach to fighting nuclear proliferation and climate change, improving relations in the Middle East and, by the way, creating jobs and providing health care at home, are rebranding in action.'

Sure Bono, also, why not state the fact that Obama didn't meet the Dalai Lama, didn't support protesters in Iran and sided with Zelaya? Shouldn't this be added to Obama's brilliant foreign policy initiatives? Initiatives aimed at furthering the Obama brand of Democracy.

Rebranding in action or a hypocrite casting his lot with the devil?

Extreme Climate change? For once Bono, why don't you watch something with a difference? Something other than Gore's lies. I'd recommend 'Not Evil Just Wrong'. Now I could on and on with what a disaster Obama is, but hey, I guess everyone knows by now. Fox tells us that its only 43 percent of Americans who'll cast their lot with Obama, if elections happen now.

Bono's rebranding America advice is akin to asking the iconic Dove soap brand to reposition itself. Bad advice. Dove's doing fine with its 'mild-moisturising' message. Consumers love it for what it is. Ditto for America. 'Life, Liberty & the Pursuit of Happiness' is perfect. Minimal Government works like a charm. Also, that Obama stands firmly against liberty has been established. The urgent requirement for now is to vote the likes of Obama out and go back to what America stands for.

And I can tell you, it ain't Climate change, Big Government & Socialism. As for Bono, he can go back to belting his songs, pocketing his money, paying no taxes, and playing hypocrite.

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Why we say what we say

'But why do we feel the need to type? To Tweet? To talk endlessly about ourselves on blogs? It's because we have too much information coming in. And we need an outlet. An 1980's programmer would call it GIGO [Garbage In, Garbage Out].'

Sure Devita, there's too much of information coming in, and so we may need an outlet, plus we need to be careful what we put 'out there', but I'd venture a different guess as to why we need to babble endlessly in cyberspace.

In fact I'd say the real reason's twofold. One, there ain't any other way we can express what we've been forbidden to most of our lives (blame family or social norms), or can't because we're shy; and two, there ain't any other space where we can remain faceless or at least not face our receivers and yet propagate what we want to put 'out there'.

The Internet's the first media space that provides talkers or consumers with a free platform. The Internet is also the first accessible platform that allows for a 'one to many' mode of conversation. Show me a man not wanting to express himself and I'll show you one who's not babbling online. Also show me a man who can make confident face to face conversation, and I'll show you one who's restrained in his yakety-yak, online.

As Homo sapiens, our need to communicate is inherent. And as social beings our desire to express what we encounter, feel or ideate is natural. In addition to the need to communicate, our need to be communicated to is as much a necessity. Bereft of the ability to communicate, or to be communicated to, we lapse into an isolated, lonely world that is depressing. The Internet's manna to wannabe communicators who've otherwise lapsed into silence.

And as I've said before, our desire to communicate is good for brands too. Because that's what brands help consumers do. Communicate. Through goods and services conspicuously consumed. Devita has a point about why we need to be careful about what we say in cyberspace. But the degree of information overload in cyberspace will in no way regulate what we as Homo Sapiens have been genetically programmed to do.

Communicate.

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Casablanca

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The Narcissists in Us

Too many times I have encountered narcissists. I even get to see one in the mirror at times. Narcissism is impossible to get away from because as Scott Peck states, we tend to see things always, at first, from our own perspective. We may, later, see the other's, and that springs from our ability to empathise.

Empathy is critical to any marketer. In fact successful Marketing is steeped in the ability to empathise. With consumers. The ability to see things from their perspective. Take any service encounter. The best way to to manage this dynamic scenario is by being empathetic. The customer at your store comes in with a perspective that's his own. His queries arise from his personal 'store-view'. He sees and interprets your store based on a psyche that's uniquely his. Sure, he may turn out to be like an earlier customer, yet what he sees, is his own world. Managing him requires a marketer to walk that world.

Narcissists who can't practice empathy, that is disconnect from themselves to see another's point of view, are dangerous, both to society and to Marketing. They remain blind to others and their points of view, thus rendering themselves ineffective in spheres that require social or business contact. In classrooms too, empathy is the key. All those times when I've failed to grasp a student's reaction and respond accordingly, I've let the narcissist in me get the better of me. I lose on empathy. The scenario that I encounter, confounds me. Post mortem, at a later point in time when I ride my ability to empathise, I see clearly what the scenario meant. And then I decipher the student's reaction and learn what should have been an appropriate response. Should I not at a later point empathise, I may even ascribe 'wrong' to the other. Which then has the abilty to 'influence' my future encounters.

Scott Peck puts it brilliantly in his book, 'People of the Lie'; 'We all of us tend to be more or less self centered in our dealings with others. We usually view any given situation first and foremost from the standpoint of how its affects us personally, and only as an afterthought do we bother to consider how the same situation might affect someone else involved. Nonetheless, particularly if we care for the other person, we usually can and eventually do think about his or her viewpoint, which may well be different from ours.

Not so those who are evil. Theirs is a brand of narcissism so total that they seem to lack, in whole or in part, this capacity for empathy...

We can see, then, that their narcissism makes the evil dangerous not only because it motivates them to scapegoat others but also because it deprives them of the restraint that results from empathy and respect for others. In addition to the fact that the evil need victims to sacrifice to their narcissism, their narcissism permits them to ignore the humanity of their victims as well. As it gives them motive for murder, so it also renders them insensitive to the act of killing. The blindness of the narcissist to others can extend even beyond a lack of empathy; narcissists may not "see" others at all.'

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Why we Buy

Its Diwali season. And as Rama Bijapurkar stated, its the season that's a barometer to consumer sentiment. If consumers loosen their purse strings this season, it will be a cheer for future consumption. If they don't, gloom's just round the corner.

To prepare for this season marketers need to know why consumers splurge during festivals. Though the conventional reason stated is, its celebration time, the real reason's otherwise. Festival time's fertile ground for consumers sentiment. Here's why.

The two external entities that bear down on consumers as influences are, a firms marketing effort and the socio-cultural environment. During festival time, firms' marketing efforts reach a crescendo. Communiques abound with lures never seen in normal times. New products and campaigns are unveiled. Price offs abound. Add to this, socio-cultural influences. Whoever the consumers consider as reference group, messages that emanate from them's the same. They are buying and they prod you to. For example, your neighbour's bought a new LCD TV and brags about it to you. He tells you both about the product and the kill he made for the price he paid. Add to this the cultural context. The cultural circle within which you live has ingrained into you through fables and myths a practice that this is time to celebrate. You have seen this happen for ages past. And so you follow. Its natural.

So you see, the external influences on you as a consumer are at their peak. The resultant is, decision making is at its easiest. Information searches provides you with the goods. Evaluations are easily made on products available. And price offs convince you of that you are being wise when you buy. In fact, your psyche that's made up of what motivates you, prods you to perceive, learn and build attitudes towards brands is at its conducive best.

The consuming climate during festivals is at its best. Built by a combination of brilliant influences from the outside that craft a willing psyche within.

That's why we buy.

Marketers note.

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Who's the real Superstar?

At rare times, knowing a bit about some one's life turns into a bolt from the blue. More so, if the person in question has a Bollyowood past (as an actor). Mention Bollywood and I am thinking of parking my brains somewhere.

But then I read about this former actor and I have no qualms in admitting there are superstars in life. Real life. Kamal Sadanah is a superstar. A harrowing past and he comes out of it wiser. Wise enough to teach me lessons.

Two things he says connect at a personal level. One, about spirituality taking him nowhere (I knew that) and two about what family means to him. A Bruce Wayne like reclusive existence too hits home. I love anonymity. My guess is, Kamal will never be the mass consumer man (Note, that's not to say he can't make mass cinema). He's too sensible (he says, 'And then there are always acting offers for a genre I call 'monkey cinema', offers I graciously refuse!') and so can't appeal to mass sensibilities. But he can and will have his appeal. With seekers high on cognition.

Brands can be intellectual. Their appeal may be limited but their connect with like minded consumers will be deep and personal. In fact, its loyalty guaranteed. It could be cinema, it could be software. Brands that tickle grey cells have an audience in consumers who are cognitively driven. Such brands, to get to this audience will have to remain recluse, limited and appeal to their intellectual sensibilities. Do the mass act and you alienate them.

Kamal the person is thinking man's fodder. But even more, he's a superstar.

A real one at that.

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Happy B' day Jaden

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Judge not lest Ye be Judged

Flor isn't too happy at Bono being painted the hypocrite. It makes me wonder about our judgement calls. Are they warranted? Should we be pointing fingers at Bono, the generous?

Before I answer, consider the parable of the widow with two coins at the temple. (Luke 21:1-3) “As He looked up, Jesus saw the rich putting their gifts into the temple treasury. He also saw a poor widow put in two very small copper coins. ‘I tell you the truth,’ He said, ‘this poor widow has put in more than all the others. All these people gave their gifts out of their wealth; but she out of her poverty put in all she had to live on.”

The parable puts Bono's generosity in perspective.

Now I am also aware of what Jesus said about judging others, "And why do you look at the speck in your brother's eye, but do not perceive the plank in your own eye? "Or how can you say to your brother, 'Brother, let me remove the speck that is in your eye,' when you yourself do not see the plank that is in your own eye? Hypocrite! First remove the plank from your own eye, and then you will see clearly to remove the speck that is in your brother's eye." (Luke 6: 41-42)

The moral of all of this? Judge, but with care.

Consumers play judge all the time. On consumption and even before. They gain that right for the money they pay in acquiring a product or a service. Having worked in hospitality, a decade and a half ago, I've been at the receiving end of judgements. For hospitality services offered. At times I've felt the judgements were unfair. But I had no choice but to grin and bear it. It sure takes a toll on your esteem but then it also steels you up for the future.

Classrooms too are filled with judgements. Fair and unfair. I think that combination is perfect. Because for Marketers as for Professors, it is important to sift between the former and the latter. If an objective evaluation leads to the conclusion that the judgement's been unfair, dismiss the judger and his response as pomp. For he is a pompous fool. On the other hand if assessments point to the latter, see and grab it as an opportunity for improvement.

I wonder how Bono should react to Letts' judgement? Take it or dismiss it? Of course, I can't be a judge to Bono's judgement so I'll leave it to him. But then his 'dodging the Bush hug' brag to another hypocrite, Obama ( I agree with Imus), tells me he's one pompous ass.

For sure.

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Zero thought means a brand 's a habit

A light bulb changing incident at home leads to a change in switches for the new bulb to be put on. The problem is, my hand almost always reaches for the older switch. After putting the old switch on, I realise the change that's happened. Tell you what, the change happened a few months ago and yet my hands don't reach for the new switch. It invariably goes back to the old one.

Habit. That's why.

Habitual actions involve minimal thinking. The act 's almost automatic. Like I've said before, breaking such habits is a gargantuan task. Brands that try and do that, face what's akin to an uphill climb.

But what about brands that are part of habit? Such brands, I believe are secure. Their security comes from being part of consumer habit. Like for example, my picking the morning edition of Times of India (newspaper) at my doorstep. Or Nandhini milk packets left by the milkman in a tray outside, every morning. In fact, at home, if we open the door and don't see our morning ToI, or the milk, its bothersome. Its out of the normal and so not welcome.

Brands that can worm their way into consumer habits will be purchased or consumed without too much of thought. What's funny is, it isn't buying that calls for thinking. Instead, its the possibility of non-availability of the brand for purchase or consumption that calls for thought.

Bothersome thought.

Wow.

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Hypocrite

'Bono is a prime example of baby-boomer good vibes - of feel-good politics tarted up with celebrity endorsement. Born in 1960, he is a pin-up for late fortysomething, early fiftysomething urbanites of a vaguely Left-wing bent.

That is, they feel they should be Left-wing, though they may not live out their principles in their spending habits. It is a very Islington state of mind. Bono, for instance, is fantastically extravagant. He is an enthusiastic buyer of stocks and shares - he owns a hefty chunk of the New York money magazine, Forbes.

He travels the world in a bubble of executive-jet comfort, spending a fortune on his little treats and fancies and racking up tens of thousands of air miles. Here is a man worth hundreds of millions who has a villa in the South of France, an Italian palazzo looking over the briny near Dublin and a multi-million-pound penthouse in Manhattan. And yet Bono's message to the Tory conference, as ever, was a homily about the poor and neglected of Africa.

If he feels that strongly, why doesn't he cough up some more of his own fortune?'

- Quentin Letts, 'Why do politicians - including sadly, the Tories this week - fawn over Bono, a smug hypocritical, whining, tax dodging Irish mountebank?'

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Not Evil Just Wrong

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So much for Gore & Global Warming

What happened to Global Warming? Read about it here.

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Why believe in God?

I am currently reading 'Why choose this Book' by Read Montague. Pretty interesting stuff about how we make decisions and the nature of free will. In the first chapter, Read talks about the maverick mathematician Alan Turing and compares his genius to another, Charles Darwin, even calling him Darwin of the twentieth century. He equates Alan Turing to Darwin by stating how both transformed mysteries, one on the diverse adaptations that we see in life, the other on how minds arise from physical interactions.

Now Read, from what I've read talks fascinating stuff. And as per what's seems to be a norm among brilliant minds, Read takes to Darwinism. I wonder why? Why is it that accomplished thinkers never have an iota of doubt about a theory that's been proven weak beyond doubt? In fact, a reading of 'The Case for the Creator' by Lee Strobel should be a cause for some doubt, if not disbelief at Darwin's hypothesis. Yet there's none among the intelligentsia.

I believe the reason's got to do with the psyches of accomplished thinkers. Most, if not all, are a proud lot. Maybe even arrogant. Believing in creation requires you to accept the presence and the doing of a higher being. A being I call God. It means you have to accept the existence of something that's greater than you. And that in turn calls for humility. Most accomplished thinkers can't take humility. Not after their accomplishments. Their belief in their own minds has them putting themselves akin to God. God, who? They ask. And so its easier to believe what Darwin's hypothesised. Absolves them from a responsibility to accept the presence of a greater being. Absolves them from considering humility.

Successful marketers too are susceptible to arrogance. Big mistake. Because its distracting and takes their eyes of who's really in charge. The consumer. Doses of humility are a must for marketers who strive to enhance value to consumers through better products and services. It calls for a recognition that marketers haven't reached the nadir of consumer satisfaction. That something better 's always possible. Again, accepting that businesses exist solely due to consumers is a must. It helps illustrate the industrial act for what its really worth and for whom. Helps tide over arrogance.

The real world or the business one, its humbling to know we aren't in charge. That someone else is. Takes the weight of arrogance off our shoulders. Plus keeps things in the right perspective.

For us mortals.

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Nobel tops 'SNL' for Obama joke

'Fortunately, the Nobel Committee understands that President Obama's accomplishments are no laughing matter. So they gave him the Peace Prize for "his extraordinary efforts to strengthen international diplomacy and cooperation between peoples." I assumed this was a reference to his rip-roaring success in winning the Olympic Games for Rio, but as it turns out the deadline for Nobel nominations was way back on Feb. 1.

Obama took office on Jan. 20. Gosh, it's so long ago now. What "extraordinary efforts to strengthen international diplomacy" did he make in those first 12 days? Bowing to the Saudi king? Giving the British prime minister the Walmart discount box of "Twenty Classic Movies You've Seen A Thousand Times"? "Er, Barack, I've already seen these." "That's OK. They won't work in your DVD player anyway."

For these and other "extraordinary efforts" in "cooperation between peoples", President Obama is now the fastest winner of the Nobel Peace Prize in history.'

- Mark Steyn, 'Nobel tops 'SNL' for Obama joke'.

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Stand up, Speak up, Shut up!

Isn't it funny that the more someone talks, the more you know how much they know and, more importantly, how much they don't. Its a lesson I could learn too. To know when to stay mum.

Anyway, what I am referring to, is this discussion on CNN-IBN that featured Lord Meghnad Desai and Ad-man Suhel Seth on the Obama Nobel prize. Meghnad Desai wasn't too pleased with Obama's Nobel. This was in stark contrast to Suhel who waxed eloquent about the prize being 'symbolic' and how Obama's winning 'symbolised' a lot of things. He mentioned Obama's Germany visit and prophetic talk to prove his point. He also rambled about brands driving perceptions and how that was what Obama was about, and so on.

The more Suhel rambled, the more I knew he knew nothing about the real Obama. He knew just enough to ramble on TV. He knew nothing about Obama's disastrous policies on National Security (Guantanamo by the way is still open and rightly so), on funding partial birth abortion, nominating lobbyists and tax evaders to important positions, creating the posts of Czars who aren't accountable to anybody and having as czars, people like Van Jones and Kevin Jennings (supporter of a paedophile). I doubt if Suhel sees Obama as the socialist he is. Government Motors, and Nationalised Health care that he envisions, proves it beyond doubt. What about Obama's actions undermining the US constitution? Plus the fact that he has done nothing in the last nine months (Watch the video above).

Suhel, it seems knows zilch about Obama. Yet he waxes eloquent. Of course, I am not surprised. Part advertising is blowing the horn, loud. The only problem is, if you face people who are knowledgeable, they see right through your false cacophony. As experts, its important to focus. As much as its important to know almost everything about your area of expertise, its important not to know too. And to stay mum when its about the 'not known' stuff.

In business too, Brands can't be everything to everybody. They've got to focus on target consumer segments and be only what's relevant to them. If brands try and be everything, consumers will recognise them as nothing, sooner if not later. A company trying to solve multiple consumer needs or needs of multiple segments, can't have one brand doing all the work, instead must have a portfolio that caters to either multiple needs or multiple segments.

Just like, if CNN-IBN wanted to have expert comments on their shows, they must learn to invite a plethora of people from various disciplines. Not just one with a gift for the gab.

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Babe

Of course, this is for you, Alphy.

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Forget me, tell me about your product

The flu keeps me home. A post afternoon nap has me tuning into what Alphy's watching on TV. She tells me the series is titled '7th Heaven'.

I learn that this 1996 series is clean, wholesome family fun. I mean, the series is about the Camden family; how the minister father and stay-at-home mother deal with the drama of having seven children, ranging from toddlers to adults with families of their own. The friends, neighbors, and love interests of the various members of the family weigh heavily on the plot of the series which seeks to address real-life issues.

What's great about the show is the lack of any cursing, cussing or stuff that's perceived in today's world as 'cool'. The content too addresses issues families face in real life. This could partly be due to the fact that its a 1996 series. But then, what a refreshing change from what's nowadays on TV.

Brings me to a Marketing point. Most communique material from brands today seem to glorify the consumer self. I've already noted campaigns that talk about the consumer 'me', and the skepticism that follows. Just today, again, I get this print Ad that calls me to action. Apparel brand Provogue features a macho looking Hrithik Roshan on a full page with the copy, 'Be the Courage, Be the Change'. And I think, what's new?

What would be refreshing is to have a brand tell me its great quality at great prices and then deliver it to me. I mean, really do that. For apparel brands, would that be smart strategy? I believe so, especially if its the mass consumer it has on its radar. Sure, the copy can convey value for money in a creative manner to arrest attention. But in the end, its about a quality product, nice experience at the store and a good price.

Tell you what, that's all that matters.

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The Nobel Joke

The Norwegian Nobel joke continues. Its Obama for Peace.

The liberal winner cup overflows.

We have seen the likes of Jimmy Carter, a gutless appeaser, Yasser Arafat, a terrorist thug and Al Gore, a lying Green win the same prize in the past. Therefore should we be surprised at the Obama choice?

Obama's nothing but a shrewd player who cares only for himself. Every move of his has been calculated for political capital. At times its even been fraudulent. Note Thomas Sowell writing on Obama's healthcare plan; ' "Hubris-laden charlatans" was the way a recent e-mail from a reader characterized the Obama administration. That phrase seems especially appropriate for the Charlatan-in-Chief, Barack Obama, whose speech to a joint session of Congress was both a masterpiece of rhetoric and a shameless fraud.

To tell us, with a straight face, that he can insure millions more people without adding to the already skyrocketing deficit, is world-class chutzpa and an insult to anyone's intelligence. To do so after an analysis by the Congressional Budget Office has already showed this to be impossible reveals the depths of moral bankruptcy behind the glittering words.'

About Obama's efforts for peace. Not speaking out for the protesters in Iran and siding with the ousted Zelaya in Honduras shows him for who he really is. Obama doesn't care for Democracy. And Democracy is the only way to peace. The way I remember, President Bush did more for democracy than any other leader? And got bashed for it?

What a pity.

In honouring Obama with the Nobel Peace prize, the Norwegians do peace a disservice. As Michael Binyon notes, 'Rarely has an award had such an obvious political and partisan intent. It was clearly seen by the Norwegian Nobel committee as a way of expressing European gratitude for an end to the Bush Administration, approval for the election of America’s first black president and hope that Washington will honour its promise to re-engage with the world.

Instead, the prize risks looking preposterous in its claims, patronising in its intentions and demeaning in its attempt to build up a man who has barely begun his period in office, let alone achieved any tangible outcome for peace.'

I rest my case.

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Want Social Equity? Embrace Capitalism.

Jaden gets his birthday gift and card, in advance from Abby chechi and Amy baby in the US. The card's got this Ben 10 hologram that changes into each of the aliens, one after the other, depending on the way its held. There's background music too.

Jaden's thrilled and doesn't part with the card, the whole day. I marvel at the kind of gift cards on shelves in the United States.

The reason for such varied products on shelves in the US. can be attributed to a population that isn't inhibited in consumption. Their fierce desire to buy is what results in wealth creation for firms. That in turn is why firms can afford to innovate, to get even more varied and unique products on shelves. Many a times, I've heard the developing world bemoaning consumption in the US. Of course living beyond means isn't a good idea. But consumption is necessary for the innovation wheel to roll. For shelves to be stacked with better, varied and more products. At prices that get cheaper and cheaper.

People advocating 'simple living' do a disservice. Their flawed diktat is shielded by inequities they point to, in developing societies. The fact is, these inequities are a result of those very same calls for 'simple living'. Contrastingly, the fallout of consumption is wealth creation. Which prompts greater industrial activity. Which utilises more manpower at a price.

This is the ONLY tool to wealth distribution.

India has its share of socialism. Propped up by the likes of Communists, who advocate misery in the name of social justice to everyone, so there's equal misery all around. India's chance at spreading equity doesn't lie in socialist rhetoric. Instead, its the march of wealth creating Capitalism that's the only chance to an equitable society. Though Socialism sounds better, history proves otherwise. The greatest of levellers is industrial activity. Bangalore, where I live is an example. A city with middle class millionaires.

No thanks to government. All to business firms that sell, earn, and pay employees. Who then spend. Firms in turn earn, and pay employees. ...

Get the drift?

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At times, Bollywood scores

"Just because I won the National Award, does not mean I plan to become the next Shyam Benegal or Adoor. Realistic non-commercial films offer you a lot more liberty as a director than a usual film. On the other hand while making a commercial film you are constantly thinking, will the mass audience like this, will they accept this. It is a lot more difficult to make a typical Bollywood film than a realistic film."

That's director Priyadarshan talking about art and commercial cinema.

Catering to niches is relatively easier than catering to masses. The Harrods of the world are to be admired. After all, they sell to high end consumers with taste. But I admire the likes of Wal-Mart more. Because they sell to masses, merchandise that's of good quality, at extremely affordable prices. The business model's the pursuit of Cost Leadership. Harrods is a differentiator. But Cost leaders get my vote (never mind liberals who gun for them) because of their obsession with efficiency that then translates into affordable prices.

Bollywood fare's the dumbest you can get. The ones that make it big are those that get the mass to buy in. A heady mix of romance (read, dancing round trees), villainy and masala stuff as a mix that works with the masses is not easy to come by. When it clicks, despite the air-headed fare, I tag it admirable work. Take Salman Khan starrer 'Wanted' for example. Namrata Joshi reviewing the movie writes, 'I was quite befuddled by 'Wanted' at the start with its various mafia dons and their sidekicks, merrily shooting each other down. It took me a while to figure out who was gunning for whom and why. But then it isn’t important. The film is meant to be seen as an unashamed show of brawn with Salman Khan at his macho best. He continues to sport a largely blank face, careless swagger, unbending dance movements and an ability to pound anybody without getting pounded himself; like him or not, you have to admit the man is a hoot and the audience loves him.

Bolllywood and Wal-Mart have nothing in common than catering to masses. Wal-Mart 's been consistent at success with the masses. Bollywood, not so. Yet amidst the masala movie fare dished, some get the formula right. The mass formula.

That calls for admiration.

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The Diwali Barometer

'For marketers, Dussehra and Diwali are especially important. Unlike the other more regional festivals like Pongal or Ganesh Chaturthi, which are celebrated with varying degrees of importance and enthusiasm in different parts of the country, Dussehra and Diwali are more or less pan-Indian. While Dussehra and Diwali have different stories and rituals around the country, they have some standard features: ten days for Dussehra festivities, praying to Lakshmi for prosperity at Diwali. The entire social nature of these festivals is nearly standard right across India. The expansive spending mindset is already there. And if, at this time, consumers aren’t spending, it’s an indicator of how bad things actually are. And in good years this is when you make the upside on your sales.

Companies and retailers reinforce this scheme of things. It takes two to tango as far as shaping consumption behaviour is concerned. Brightly lit seductive displays, lots of festival offers and discounts, heavy advertising—all work together with the consumer’s desire and habitual plan to spend at this time and reinforce each other. It’s hard not to feel the electricity in the air, and it’s hard not to give in to a little bit of indulgence, whichever way you choose to define it. Even soap and shampoo companies will tell you that people upgrade to a higher priced set of brands during this season. Colour cosmetics sell more, even Rs 5 nail enamel.'

- Rama Bijapurkar, 'The Lamplit Sales Graph'.

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I am glad its 'ME', am I buying?

The problem with telling me too often its about 'me' is that I turn skeptical. The intelligent me parks my ego to the side and makes an assessment of what's really in it for me. And if I find better value, I may succumb.

Yahoo's new campaign says , 'Its You'; HCL's got this new poster telling me its got the 'ME' series. Wipro brands its laptops, 'E.go'. I say, smart. You're appealing to the 'me' in me. You got one move dot on. You recognise that products and services are about me. There are still too many corporations out there obsessed with themselves, forgetting the fact that, what they sell isn't about anybody but me.

The million dollar question is whether I'll bite the 'me' bait. I believe the Yahoo case is different form that of Wipro and HCL. The Wipro/HCL offer tries to engage the buyer by appealing to his sense of esteem. Good for a start. But purchase decisions will be dictated by functional assessment of the product in question. That is, the buyer will compare feature to feature vis-a-vis competing brands. Plus the the Wipro/HCL name isn't, I believe, strong enough a draw to get the brand to be part of a consumer's consideration set in the laptop category.

The Yahoo strategy poses a different equation. For current users of Portal services, habitual behaviour is an established one. That is, I am used to a certain Mail program, a certain Search Engine and so on. Switching to another will hinge on a break in habit. That's difficult despite the fact that there aren't any costs involved. Its rather a break in normal everyday sequence. Such breaks are hard to come by, unless there's a lure. That is, what's 'really' in it for me if I were to Yahoo? Customised homepages? Good enough for a switch? I think no. Note Bing's marketshare, off Google, has now diminished, and the recipient of the drop is Google. That is, some went back, to Google. For NEW users, the Yahoo 'You' strategy may be a good draw. Its about getting first time users to try the portal and its services and get hooked. So habits form. So they can't be broken. Now this requires that Yahoo operate in countries with low Internet usage. India's a good place to be. So are other developing countries.

Appealing to consumers' selves is sensical but not a guarantee to purchase. It sure makes the consumer consider the brand for purchase. But post that consideration, evaluations follow. For brands to score during those evaluation they must know what's important to consumers. If they pip their competitors on those considerations, a purchase may be imminent. If they don't, their 'You', 'ME' or 'E.go' calls will go unheeded. And adding insult to injury would be money sunk on Advertising and other communication initiatives.

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To sell, follow the rules

'Gee, what could possibly go wrong?

Anyone who has had to succeed in the real business world -- and that includes few if any on Team Obama -- instinctively knows that to get business done you have to believe in what you are doing and offer a product or service that is focused on the benefits to the customer. In the Obama World of Chicago pay-to-play power, business gets done by flexing muscle and clearing the field of your competitors. You don't have to sell anything. You don't have to believe in anything. It is fine to be self-focused. You simply have to apply the power of the applicable political machinery and you win.

Which could explain why the First Couple was so apparently lost in an attempt to actually have to make a sale to an audience not cowed by Chicago-style clout, inoculated by our own fawning Jurassic media, nor remotely interested in their life stories. Perhaps that is how and why they botched it so badly.'

- C Edmund Wright, 'The Obamas Violated First Three Rules of Selling'.

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No service is Good service

Imagine elation at not being served. Though rare, its a distinct possibility.

A week ago, I tried to courier some important financial documents home. My quest for a courier company close to where I live had me at the doorsteps of this travel office that acted as a pickup point for a certain courier agency. A firm that I hadn't heard of. Temporary insanity saw me handing over the package to them. They promised delivery in two days.

My nightmare lasted a week. For that much time neither the travel office nor the courier agency could trace where my package was. Of course, it hadn't reached home. At the end of the week, the travel office traces it to a sedentary position on a table at the courier despatch site. I ask them to get it back and reclaim possession a day later, at Bangalore. The only journey the package's made is from the travel office to the courier depatch site and back. Then to me.

Getting the package back made me more joyful than I can imagine. The miserable incompetent courier company in question? Trackon. What's worse? They even charge more for delivery. On digging online, I find I am not the only one with the nightmares. Though its no comfort.

At the moment my package 's on its way via DTDC.

I cling to hope.

The lesson learned is one of service quality. Stick to credible service brands. Thay may cost a bit more or they may not be situated close to where you are. But I'd exhort, pay that extra bit, go that extra mile. The nightmares can be avoided.

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Consumers cutting back is global

What's true to consumers in India is true to ones in the US. too. Or shall we say the rest of the world? Back in June, a study by Anita and me had found that Indian consumers had cut back on their purchase quantums, ie., 'if they ate out once a week, now its once in two weeks. If they travelled for leisure every six months, now they do so only once a year. The most interesting finding that should bring cheer to the likes of P&G and Home Depot or any other brand out there is that, consumers still haven't switched to a 'cheaper' brand to save money. That is, if one were used to wearing Levi Strauss denims, one still buys the brand, albeit in lesser quantities.'

Consumers in the US. too seem to doing exactly the same as their counterparts in India. Cut back on purchases. A recent Harris Poll found that 'two-thirds of Americans are likely to decrease spending on eating out and entertainment in the next six months'. Note, this is what what they did six months ago. Which means the trend of 'cutting back' is continuing.

Note the results of the survey;

Key findings:

1. Only 4% of respondents said they were likely to buy a boat or recreational vehicle such as a motor home or boat in the coming half-year, with 91% of respondents saying that it was "not at all likely" that they'd make such purchases.
2. Bad news for the car industry: Only one in 10 (10%) respondents said it was "very likely" or "somewhat likely" that they'd buy a new car, truck, or van in the next six months. More than three-quarters (76%) said making an automotive purchase was "not at all likely."
3. A mere 2% said it was "very likely" that they'd start a new business in the coming six months.
4. Exactly half of the respondents said they will be saving or investing more money in the next six months, slightly down from 53% who said so in May of this year.

Data Source: Harris Interactive/ (via) MarketingProfs.

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Cinderella; In memory of Maria Sue Chapman

Our prayers are with the Chapman family.

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Architect of our Freedom

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The hyprocrisy of government employees

There's something common to the striking IIT/IIM professors, Air India pilots and government hospital doctors in Karnataka.

Hypocrisy.

Their striking work is aimed at getting better remuneration for services offered. Sounds reasonable enough. But closer scrutiny reveals something different. Note, every act of commerce has a buyer and a seller. The seller sells in a manner where he receives best returns for whatever he is selling. The buyer buys knowing, that's the best deal he can get. An act of commerce is unfair only if; one, its forced on parties, i.e., parties have no choice, or, two, if either parties have misrepresented their offer so as to get the deal through. What's important to understand is that both parties may believe their respective deals could have been better. I mean, the seller may feel he should have got better returns, the buyer, a better product or service.

In the work contexts that apply to all three striking parties mentioned, the two unfair scenarios don't apply. That is, there's been no misrepresentation by the buying party, the government that buys their services. And neither the professors, nor the pilots, or the doctors have been forced to work for the government. Which means if the aggrieved parties feel that they have not been remunerated well for the services they offer, they are free to take it elsewhere and sell those very services. To a better buyer, who offers better returns. The aggrieved parties haven't done that, which means they believe the returns they currently receive are the best in the marketplace. Don't be fooled by the monetary value that they quote to hold up what they perceive as injustice done to them These parties enjoy non-monetary benefits that their counterparts in the world of private enterprises can't even dream of. For example, take the IIM professors. Their work schedules, the infrastructure within which they live and work, their teaching hours, support for research activities, job security etc., is far far greater than what's enjoyed by their counterparts in the private B Schools. Of course, these professors may say they deserve it because of their competencies. Of course, they do. But why the strike? Doesn't the strike mean they think they are not getting a deal that's commensurate their competencies? If so, why not sell their services elsewhere?

Tell you what, they won't. Its too long they've had their cake without too much of effort. Plus their shrewd calculations show that the world of the private enterprise is cut throat and isn't as conducive as their 'protected' government service. So they stay.

And strike!

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Why Journalists should learn Economics

The ignoramus in Rajinder Puri states,

'Consider how America got into its present mess. To keep the economy buoyant it was necessary to keep up demand. To do that, wages and purchasing power also had to keep pace. Higher wages meant lower profits. To maximize profits business corporations utilized globalisation to invest in cheap labour outside the US . The obvious giant sweat shop for cheap labour was China . Violating all labour norms, ignoring minimum wage norms, the US big business and China got into a mutually beneficial arrangement. The virtual slave labour in China manufactured goods for western business firms at a fraction of the cost which would have occurred through manufacture in the US itself.'

Violating all labour norms? Ignoring minimum wage norms?

The problem with journalists is they can't and don't comprehend Economic laws. They've no idea about supply and demand and how that drives prices. Instead of being thankful at the fact that these jobs have come to developing countries, Rajinder takes the high moral ground. The last I checked, having a job that pays something is better than not having one at all. Or will Rajinder then tell me its better to starve than to earn what he calls a pittance?

To understand why norms set for minimum wages hurt those very people it intends to protect, listen to Milton Friedman talk about Minimum wage, Maximum folly and Minimum jobs (video above) here.

Also watch John Stossel's take (video) on minimum wage here.

Rajinder Puri with his ignorant rhetoric joins the likes of Barack Obama. Read my take on Barack and his 'shipping jobs overseas' comment here.

Video Source: Via Carpe Diem

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Know what happened last Wednesday?

Did you know that in Spain, strict privacy laws prohibit you from taking the President's daughters' pictures and publishing them, in print or online? Did you also know that last Wednesday, the Obamas hosted a reception at the Metropolitan Museum of Art in New York, during which they stood for 130 photographs with visiting foreign dignitaries in town for the UN meeting, and it included a photo with the Spanish president's family, that had his daughters allegedly dressed as Goths (in baggy black dresses and chunky boots)?

If you didn't and want to know more about what happened, read the Telegraph's report on the incident and its aftermath here.

OK, so what's the point? Read on.

The typical consumer's reaction to claims (conveyed through an Ad) by a brand? 'Oh, so you're the best thing that could happen to me? Tell me something I don't know'.

That's where brands miserably fail. Because they can't articulate what the consumer doesn't know, and is dying to. I bet you read about what happened in the Obama photo session because you were curious to know what happened, how the girls looked, dressed as goths. You were curious, because you didn't know.

Most brands bandy about what's common knowledge. That they (brands) are consumer salvation material. The consumer's heard it so many times, the next repetition is seen as an interruption. For brands to get consumers to respond, they must tell them something they didn't know. Something that's out of the ordinary and different, that consumers are willing to want to know. If information's out there that consumers don't know, they may even seek after more, to satisfy their curiosity. Like, you may have even googled more info. on the Obama-Spanish PM family photo session. Beyond what the Telegraph article told you.

Brands must learn to tickle consumer curiosity and lead them on, in a search for information. Of course, this wouldn't be easy. But if brands can prompt searches, the knowledge consumers encounter may well go past their sensory store to the short term store. If brands then reinforce and bait further searches, tell you what, they will move from short term to long term memory of consumers. As a result, the brand will be recalled at the time of consideration of purchase.

How does that help? With a probable purchase that follows.

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Soon, Fake 's in, Real 's out

What's incredible about being with Jaden is the experience of everything that's real. Not a hint of the 'made up'. His laugh, the sparkle in his eyes, the way he beams in pleasure when complimented, is all too real. Even when he expresses anger, screams in frustration, or cries when hurt, is brilliantly real.

As he grows, I guess we and the world will get to him. He will know how to fake and when. Its almost a must for survival. What a pity. I hope, I'd have the guts to exhort him to live real.

The fake 's everywhere. When I walk up the gate of the airline to fly, I am greeted. I appreciate that. But most times, the fake enthusiasm shown at seeing me and the likes of me (read fliers) is apparent. At least to me. Oh, I've had genuine greets. Though rare, they warm you up.

Service brands that want to make it big with customers must get this 'warmth' right. And the only way they can do it, is by putting their people before their customers. It may sound risky, but it isn't. Its the smartest thing to do as a service business. You take care of your people, they take care of your customers. Genuinely.

Note Michael Gates Gill writing in his book, 'How Starbucks saved my Life';

'The ad you were working on was either great or a piece of shit. The game was win or lose. And it wasn't just the ad, that took the hit. You were either a great creative genius or a stupid piece of shit . If you won new clients, you were a hero; if you couldn't get any new clients, you were a bum. There was no in-between. And there certainly wasn't respect or dignity. Those words were literally never mentioned.

Here at Starbucks both Partners and the Guests seemed to agree tacitly that everyone should be treated with respect and dignity. I had never seen any work environment like it. The best fortune 500 companies I had encountered, despite spending months and lots of money writing and publishing high sounding mission statements, never practiced the corporate gobbledygook they preached'.

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Reasoning by Analogy, Obama-Tortoise story

NY Times Op-Ed columnist, Charles M. Blow thinks Obama's the tortoise who's gonna outsmart us all, with his socialist healthcare plan. Pray, why does he feel so?

Because it seems, 'According to Gallup poll results released on Wednesday, the president’s approval rating has stopped falling and has leveled out in the low-50 percents, about the same as Ronald Reagan’s and Bill Clinton’s at this point in their presidencies (both two-termers, lest we forget).'

What's really happening? Rasmussen reports today, 'Just 41% of voters nationwide now favor the health care reform proposed by President Obama and congressional Democrats. That’s down two points from a week ago and the lowest level of support yet measured.'

About Charles' 'Obama's Tortoise Tactics' piece, its what's termed 'Reasoning by Analogy', a cognitive bias

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Weak glues a must at discount sales

I was back at the Landmark book sale. Bought a lot of books, again. One thing that's a constant at these discount sales is the big square labels stuck on all book covers, screaming what the original price, new price and saving is. Making these labels big and bold 's a good idea. It screams the bargain the consumer's getting, big time.

But what's bothersome is the fact that these labels don't come off easily. In fact pull 'em off, and you take the book jacket along. I don't know how many customers like to have these labels on, when they sport the books on their home shelves.

Bet not many. How many times would one want to tell the world they got something on sale?

To the Landmark people, I recommend a weak glue. Good enough for the label to stay on the cover while at the shop table, and weak enough to peel off, when the buyer wants to ease it off the cover.

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Nostalgia is marketable

After quite some time we had one of the fluorescent lights at home, fuse. Getting to a store and looking at shelves with bulbs, I was prompted to try an incandescent light bulb, priced at Rs. 13 over the fluorescent one priced at over a hundred and fifty bucks. I know fluorescent bulbs consume less energy, emit white light, are less warmer, and remain lit for a far longer time than incandescent ones. Yet, I buy the incandescent bulb.

Screwing it into the socket and turning it on brings back memories. Of a childhood spent under these lights. I can almost live that cozy feeling, of time past. Something warms up inside. I guess that's what's called nostalgia. A feeling that's more relevant to ones advanced in years. I notice brands can evoke the past. This morning listening to Crystal Gayle sing at a show (drastically different from the kind we have now) evoked similar memories. Note, I grew up listening to her. Even the hosts of the show at which she sang, were so polite and measured in their announcements. A far cry from the mutants who host shows today. Russell Brand at the MTV music awards is a case in point.

Brands that can evoke niceties of the past, I believe have a fair chance with consumers advanced in their years. It can be a Cafe, a movie, or maybe even a library. Note, such brands would have to give the present generation a go by, but hey, don't we all get older some time? Sure, incandescent lights may not herald nostalgias for the present Uns. But something will. Tapping into it then, will carry as much meaning as what an incandescent light has, for me.

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Silence that idiot box!

'TV isn’t called the idiot box for nothing. Even at its best it replaces engaged and active thought with passive and sedentary spectating, while at its worst it destroys children’s innocence, inuring them to violence, mockery, and crude sexualization. Television is by definition a visual medium; it appeals not to the brain but to the eye. You don’t have to study hypnosis to understand how easily the eye can be exploited to undermine alertness, focus, and good judgment. Just look at the dazed and vacant expression on the face of a youngster watching TV. Most parents would be calling 911 if their child drank something that caused such a reaction. Why doesn’t the zoned-out oblivion induced by TV cause parents to panic? Is it because they’re hooked on it too?'

- Jeff Jacoby, Boston.com

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Someday soon

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When did that happen?

'It is difficult to exaggerate how much has changed in terms of consumers' relationship with brands in the last few years. Everything is different now: from how brands are viewed, to the mechanisms through which we find out about them. When did the change really start? Let us ponder.

Was it the day in 1993 when Marlboro dropped its prices by 40 percent to compete with the cut-price cigarettes that were eating away at its market share, thus sending investors into a panic that lopped nearly $50 billion off the value of twenty-five top brand makers?

Was it when a nascent World Wide Web became a tool for instant swapping of info, enabling each of us to instantly see the truth about all available choices of product?

...When the TV market fragmented into hundreds of smaller channels, each wanting a piece of the viewer's time?

...When technologies like TiVo made it possible for viewers to avoid watching commercials altogether?

...When Enron and others collapsed in a stinking mass of deceit and consumers lost faith in corporations and what they sold?'

...When incomprehensible events on September 11 made us reassess values and beliefs?

Choose all of the above.

- Richard Laermer & Mark Simmons, 'Punk Marketing'.

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The Roach emotion

'One of our first visits was to a sixtyish woman named Lillie, who lived in a mobile home park near Tampa, Florida. She welcomed us in and we perched ourselves on folding chairs while Lillie dropped into a La-Z-Boy recliner. I asked Lillie to tell us a little bit about herself and she launched into the story of her childhood in Mississippi, her first marriage, the birth of her two kids, her hardworking life, her divorce and remarriage.

Just as Lillie was telling us about the sudden death of her second husband, an enormous cockroach emerged from the kitchenette and ambled into the living room. My client and I noticed it exactly at the same moment. We looked at each other, wondering whether we should mention it or pretend we hadn't noticed.

But Lillie spotted the cockroach too. "Damn!" she growled. She leapt out of her La-Z-Boy, tore open a kitchen cabinet, and pulled out a can of my client's very own brand of bug spray. She closed in for the attack, bent over, aimed the nozzle at the roach, and nailed it. I counted- one-one-thousand, two-one-thousand, three-one-thousand, four-one-thousand, five-one-thousand- as the roach jerked into a deathly paroxysm and the spray formed a toxic puddle around him.

"Take that, you bastard", Lillie said.

My client and I looked at her with raised eyebrows.

Roaches!" she said with disgust. "Reminds me of my first husband". She placed the rim of the can on the carcass and bisected it with a definite crunch.

What did we learn from our visits? First, that customers can use far more spray than necessary. More important, Lillie demonstrated that even a utilitarian product like bug spray can have deeply emotional, even primal, meaning. Our visit with Lillie became a reference point for the bug spray organisation as it created news and improvements for its products.

- Michael J Silverstein, 'Treasure Hunt - Inside the mind of the new consumer'.

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What's rotten in the Kirana?

The last two emergency grocery purchases we made, saw us at what is called the Kirana store, in India. These purchases were made at two different Kirana stores. What was common about our purchases was the fact that, on returning home and inspecting the wares, we found a few not so fresh, close to rotten, vegetables that had been slipped in with the rest. This happened because we didn't pick the vegetables ourselves. And that's because these stores don't have enough of space for you to get in and pick your own stuff.

Now the romanticised Kirana stores around India have been heralded as the last bastion that's standing tall against the might of organised retail formats. And the reason given for their survival is the personal relationship that the store owners have with their customers, their extending credit and the delivery of stuff home.

Tell you what, that's a whole lot of hogwash. Kirana stores survive for one reason, and one reason only. Their convenience in terms of proximity. The larger share of the Kirana store customer comes from the lower and lower middle class in India. This class finds the Kirana store most convenient because its just next door. Going to an organised format store would require transportation. Plus the the organised store facade is such that it drives perceptions of higher prices. Both of these are good enough reasons for the lower middle class to stay put with the Kirana store. The upper classes in India prefer organised formats and resort to services of a Kirana store only if its an unplanned, emergency purchase.

Many a times, the result of that is part rotten. Are Kirana stores on their way out? Not yet. But they'll down their shutters if organised retailers can solve the proximity problem. Can the organised players be able to do that? Sure, but only if they tweak their format and their mode of operation. They have to down store sizes and maybe even take the franchise route.

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Ads vs. Reality

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Why I drive a Santro

'From what I have learnt in life, including the brief spell in college, true elite are not obnoxious and certainly don’t make a virtue of elitism. Good breeding also means not making others feel inferior.'

Saba's moralising misses out on a point that's fair extension to what she's stated. My point.

'Good breeding should also mean not feeling inferior, when it isn't intended, and even when it is. Because your self worth isn't dictated by tweets, but by your own unbiased assessment of you'.

Tell you what, Saba's petty moralising is fertile ground for marketers. Most people live with a depleted sense of self-worth. Its either because they push themselves into that state or some one else does it to them. Perceived social class differences provoke comparisons. Upward class comparisons result in an assessment of lower self worth. For the consumer, this is self assessment. Its also possible that your neighbour waves her latest brand of jewellery to your face, commenting on how your 'piece' looks outdated. Now that's an external assessment that's bound to diminish your self worth, if you're the Saba kind. Either way, your only ticket to enhanced self esteem is the marketer and his brand. That's what gives you, your shot at upward mobility. The chance to get even.

To prove my point I pulled out today's ET Brand Equity and scanned it for Ads. Sure enough the promise of a higher class was written all over, by brands. The front page had Omega tell me its 'Abhishek Bachchan's choice' (I could almost laugh out loud), the back featured Turtle proclaiming, 'Even a lifetime of profits can't measure up to the respect you earn' (I am clutching at my sides to stop me from doubling over with laughter, and, by the way who's the twit behind the copy?).

So you see, diminished self worth is good. But just so you know my opinion about Tharoor's tweet on economy class flying, I agree. Plus, it was funny too.

Does that say something about my assessment of my worth? And is that bad news for marketers? Guess why I am perfectly all right driving my ugly looking 2001 model Hyundai Santro?

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Reason & Wisdom

'That animal which we call human, endowed with foresight and quick intelligence, complex, keen, possessing memory, full of reason and prudence, has been given a certain distinguished status by the supreme god who created him; for he is the only one among so many different kinds and varieties of living beings who has a share in reason and thought, while all the rest are deprived of it. But what is more divine, I will not say in the human being only, but in all heaven and earth, than reason? And reason, when it is full grown and perfected, is rightly called wisdom. Therefore, since there is nothing better than reason, and since it exists both in human beings and gods, the first common possession of humans and gods is reason. But those who have reason in common must also have right reason in common. And since right reason is Law, we must believe that humans have Law also in common with the gods. Further, those who share Law must also share Justice; and those who share these are to be regarded as members of the same commonwealth. If indeed they obey the same authorities and powers, this is true in a far greater degree; but as a matter of fact they do obey this celestial system, the divine mind, and the god of superior power (praepotenti). Hence we must now conceive of this whole universe as one commonwealth of which both gods and humans are members.'

- Cicero, (The Laws, 52 B.C.E.)

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Liberty, In God We Trust!

The United States of America is the gutsiest nation in the world. No other nation's done more for freedom around the world, at the cost of sacrificing its own citizens. Both Afghanistan and Iraq have proved costly. Yet America strives on. Contrast this with Italian troops in Afghanistan. Loss of its soldiers has seen Italian sentiment turn hostile. Now, in no way am I saying that any loss of life is to be condoned. But freedom calls for sacrifices and America has given much to the cause of freedom around the world.

Why I mention America and its commitment to freedom is because its that very same character that transgresses into their world of consumption. The United States of America is one of the only countries that believes in liberty even in the world of business. Most Americans (read Libertarians and Conservatives) don't like government interference in business. In fact Americans don't look to the government for their own personal prosperity. They believe in themselves and in God. Life, Liberty and the pursuit of happiness is, they believe a God-given right. This is again such a contrast to the rest of the world, where people look to the government to make their lives better. They believe it is the government that should be the harbinger to their personal prosperity. Not so for most Americans. They believe its up to them. Them only. And that is why they hate the government telling them what to make or what to buy.

Obama and his coterie of liberals in contrast are the kind that want Government back in people's lives. Now you know why they do everything possible to scuttle any military moves that enable freedom, around the world. You shouldn't be surprised when you know that despite giving lip service to freedom, they do everything to curtail it (remember Internet control and war against conservative talk radio). Also, don't raise an eyebrow to the fact that they've turned General Motors into Government Motors.

Liberals in America who don't think it important to battle for freedom around the world are the very ones that want to usher in the rest of world (read Soclialist europe), in America. Usher in an era of the government that dictates what citizens do. Even what they do as producers and consumers. Should the liberals succeed, we will never know America for what it truly is, as a nation.

A nations that proclaims, 'Liberty, In God We Trust!'.

And that would be such a pity.

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The ugly truth about 'The Ugly Truth'

To take the movie story to conclusion, I have to report that the one we saw reinforces what I stated. That most movies are a monumental waste of time.

The ugly truth about 'The Ugly Truth' is that its one of the crassest movies I've seen. Yet I hear, its been a top grosser around the world. The response of most of the audience in the theater tells me why. They even applauded towards the end. I lost my appetite. It was lunch time when the movie got over.

The 'Ugly Truth' is perfect for younger audiences. Filled with profanities and anatomy descriptions, the movie teaches us a lesson about what connects with college going youth. I know I am guilty of generalisation. Despite the fact that most college going airheads voted Obama, I guess conservatism isn't dead in colleges. Anyway, the lesson of the movie is, if the youth is the audience, dumbing down the subject is a good idea. Throw in a slew of profanities and slap stick humour of the worst kind, and you have a winner.

Hey, It even gets you the applause.

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Books for me, Movies for the kid

I ain't a Movie buff. Most movies, I believe, are a monumental waste of time. Yet I line up to buy tickets for a show tomorrow. Alphy's the reason. Plus I don't mind.

Queuing up at the theatre to book for the show tomorrow has me stand behind a kid who buys four tickets for a show in the evening today. I hear the counter man ask him to pay nine hundred bucks for four tickets. I am aghast. That much for stuff that's worthless? I buy my tickets for tomorrow, They cost me a hundred and eighty bucks for two. I think that's all right. Right after my purchase I proceed to a bookstore that's having a sale and buy books for twice the amount the kids' paid for movies.

Tell you what, If I were to ask the kid about his judgement of my purchase, I guess, he'd be aghast. That much money for books? In fact, at home, there's so much books, Alphy's going crazy.

The lesson in all of this? Value perceptions vary depending on who's buying. Smart marketers build both movie halls and bookstores. The former lures the kid successfully, the latter, me.

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Every Little Kiss

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Brands that speak for us are brands we buy

Time Warner's got good reason to hate Glenn Beck. He's a Libertarian and his TV ratings are skyrocketing. The last I heard, CNN viewership was tumbling.

So how does Time Warner's Time magazine react to Beck's rising popularity. They 'carefully' trash him using their latest cover story. (Quote) 'Extreme talk, especially as practiced by a genuine talent like Beck, squeezes maximum profit from a relatively small, deeply invested audience, selling essentially the same product in multiple forms. The more the host is criticized, the more committed the original audience becomes. And the more committed the audience, the bigger target it presents to the rant industry on the other side of the spectrum. A liberal group called Color of Change has organized an advertiser boycott of Beck's TV show — great publicity for the group and a boon to Beck's ratings.'

Glenn Beck scores with conservative viewers because he articulates what they desperately want to say. At a time when Barack's walking the socialist road, its become all the more important for conservatives and libertarians to speak up and be heard. They are getting themselves heard in Townhalls and Tea parties. But on screen, who's going to speak up for them? Glenn Beck. And Glenn does it brilliantly. He doesn't just say it ( he characterised Obama as someone who's got a deep rooted hatred for whites). He does so with fervour and emotion (he shed tears). That's what makes him a darling to the conservative masses.

As people our desire for expression is inherent. We do so in many says; Speaking up, writing about it and sometimes even expressing through art. The other avenue that we've found in expressing ourselves is by connecting to those entities who speak what we otherwise would have wanted to articulate. Avenues like Glenn Beck. Avenues like Brands.

Brands speak for us. The brand that articulates what we want to say about ourselves is the one we buy. Note, I talking conspicuous consumption. For the kid on the high street, the Nike sneaker is an expression of his cool and sporty character. Its what speaks for him.

The challenge for the Marketer is to uncover the personality we seek. Then to craft an identity for a brand that resonates with our desire to express our personality. If the marketer efforts result in a brand that speaks for us, that's the brand we'll buy.

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Top 10 Brands of 2009

1. Coca-Cola - 68,734 ($m)
2. IBM - 60,211 ($m)
3. Microsoft - 56,647 ($m)
4. GE - 47,777 ($m)
5. Nokia - 34,864 ($m)
6. McDonald's - 32,275 ($m)
7. Google - 31,980 ($m)
8. Toyota - 31,330 ($m)
9. Intel - 30,636 ($m)
10. Disney - 28,447 ($m)

Read the complete Interbrand Report here.

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'Downscale Chic' works with younger customers

Pabst Blue Ribbon beer's success in a recession proves two important points. One, Consumers are willing to pay more. Two, they pay more because of enhanced value perceptions driven by factors that aren't functional.

PBR costs $1.50 more than MillerCoors' Keystone, $1 more than Anheuser-Busch's Busch and Natural brands, and 50 cents more than Miller High Life. Yet its had the highest growth recorded in its category. This despite lower media spends.

Pabst through its word of mouth campaign was able to position the brand as 'downscale chic'. That is, lower priced than premium, higher priced than budget, with a hip non-conformist image. Worked will the younger drinkers trying to wear the 'anti-establishment' badge. Never mind the higher prices.

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Free costs too much

'Most consumers get it. There's already a free operating system for computers: Linux. Yet netbooks running Windows outsell their Linux counterparts by a margin of nine to one. In other words, free is getting trounced.

Why? Because free costs too much, weighed down with hassles that you'll happily pay a little to do without. That's why people buy bottled water and cable TV. That's also the model that The Wall Street Journal uses to goad people into paying for news online. Anyone can read its stories for free through Google or a news-aggregation site like Digg, but people who want the full newspaper experience pay $103 a year for the privilege. More than a million subscribers consider that a good deal. This isn't an anomaly, either. According to a recent study by the private-equity firm Veronis Suhler Stevenson, consumers now spend more time reading or watching media they've paid for than free media.'

- Farhad Manjoo, 'Why Charging Just a Little Can Be Smarter Than Charging Nothing at All'.

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Video Consumption, Multitasking continue to rise

Other findings:

1. There are more TVs than inhabitants in an average American home: 2.86 TVs vs. 2.5 people per household in 2009. Moreover, 54% of people have 3+ TV sets in their home.
   Adults 18-24 watch five times more video online than adults 65+: 5+ hrs. vs. a little over 1 hr. per month.
2. The number of children (2-11) online has increased 18% year over year, compared with 10% growth for the number of those 2+.
3. More than 15 million Americans said they watched online content on a mobile device in Q209, an increase of 70% compared with the previous year—the largest annual growth to date.
4. Americans are more likely to watch short-form video on their computers and TV network content on their mobile phones.

Source: MarketingProfs; About the data: All cited data comes from Nielsen's latest A2/M2 Three Screen Report (vol. 5, 2Q09). Nielsen's A2/M2 Three Screens Reports provide the results from quarterly analyses from Nielsen's Anywhere Anytime Media Measurement Initiative (A2/M2).

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World Peace, YES; Info. to the world, NO!

The funny thing about 'news' is, that something doesn't make the 'news' is 'news'. And if its what liberals try not to report on that becomes 'news', I call it 'good news'.

Like Mark Levin's book, 'Liberty and Tyranny'. I've read the book thanks to my brother getting it for me from the US, and I say its a must read. At least for those who think government's the solution. Just so you may change your mind. Though I doubt your newspaper's told you about the book. That's if you read the NY Times or Washington Post, both of which, by the way haven't run any reviews on the book.

But note the facts. 'Liberty and Tyranny' has been riding high on non-fiction bestseller lists ever since it was released in late March. It debuted at No. 1 on the New York Times best seller list and has remained in the Top Ten on that list for 24 straight weeks. It is currently No. 7. (Levin's previous two books, Men in Black: How the Supreme Court is Destroying America and Rescuing Sprite: A Dog Lover's Story of Joy and Anguish, were also New York Times best sellers.)

Despite their objective of World Peace and spreading the wealth around, liberals don't care too much about spreading 'information' to world citizenry. Especially information that's unsavoury to them. Like the ACORN scandal, like Obama's nosediving ratings, like Van Jones' 'truther' past, and so on. Liberal lawmakers too play their part. By pushing the environmental bill and others through in haste so others can't read it.

The list, people, is endless.

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Marketing Queries

Soumya: How does a brand increase its price and yet manage to retain its customers in the market when it really would not be able to add more value for the price it charges? Like for example, what I am asking is since the prices of all commodities are on a rise, how does the company increase the product price and yet manage to maintain its consumer? Also I just wanted to also get it clarified, isn’t a price sensitive customers value perceptions driven primarily by price? Isn’t the definition of value also based on price? Like good quality at affordable prices?

Ray: If a brand is forced to raise prices due to increases in input (read, commodity) prices, surely the customer wouldn’t be too happy about the same. But remember, this price rise, one, may be seen as a justified act by the customer, and two, there would be an all round price rise amongst all brands that category.

But I have another recommendation based on the concept of ‘Just Noticeable Difference’. I would recommend brands alter those stimuli, whose changes aren't easily noticed by consumers. Because they fall within the JND. Like for example, weight. So I would say, if the biscuit company’s forced to raise prices as the price of flour has rocketed, I would recommend they keep the Retail price intact, but drop on the weight of the pack. Of course, again, remember no decision isolated. It has its fallouts. For example, a drop in weight may require package sizes to be altered. That costs money. So the relative benefits have to be kept in mind while taking the decision to drop weight. Plus, factor in consumer perceptions about the company’s move. If consumers were to notice the weight drop, would they take too kindly to that? Or would they even perceive it as unethical?

Oh Yes, price plays an important part in value perceptions. A low price may even get you the first buy. But post the first buy, remember, consumers have a hold on reality. And then the landscape alters. Value perceptions now will be driven by factors such as performance. For example, the low price may get me to buy the shirt. But if I see that its color runs, the next time around I wouldn’t touch it with a bargepole despite the low price.

Deepesh: In such a scenario, where Jet has no control over the happenings, what could Jet have done in these couple of days in order to ensure that their customers do not face any inconvenience? Could they have collaborated with other airlines and transfer their passengers to them at the same fare?

As mentioned earlier customers have short term memory, they would forget this incident and in an industry like aviation, customers are loyal only to the prices offered and not to any airline per say. What could have Jet done in such a situation?

Ray: Yes, Jet should have helped their flyers find suitable alternatives. If there would be a fare rise that their customers suffered, due to a competitor’s higher priced ticket, Jet should make up for it by discounting the affected passenger’s flight in the future.

Notice, now that the Jet strike is over, they have gone on a discounted offer on flights till Friday forcing others to follow suit. My recommendation would be to ensure all their affected passengers are compensated by discounts in the future.

Deeptaman: I have a question and that is a bit different from the context you wrote about; but it revolves around individualism and teamwork. This happens especially in the corporate world - Why is it that praises come for the entire team and failures are blamed on the individual?

Ray: Note the saying, ‘Success has many fathers but failure is an orphan’

([1942 G. Ciano Diary 9 Sept. (1946) II. 196] La vittoria trova cento padri, e nessuno vuole riconoscere l'insuccesso. Victory has a hundred fathers, and no one acknowledges a failure).

There are many claimants to success because inherently it’s part of a need hierarchy that’s deeply embedded within us. Winning brings with it acknowledgement and recognition from others. That’s fulfilling our need for esteem. Are most people starved for esteem from the outside world? You bet. Should it then be surprising to see many clamoring for ‘praises’? Or is it again surprising if management passes the praise around to a team knowing well that it’s a tool they can wield to motivate?

Failure is unacceptable to most, not because of failure per se, but for its fallouts. Failure brings it with judgments. Judgments of incompetence. Now, who’s a willing taker to such judgments? Almost none. In fact such judgments drop you like a stone on any social or organizational hierarchy. You’re seen as a loser. How nice is that?

For more on success and failure and its effects on us, watch what Alian De Botton has to say, here.

Fareed: I am very keen to research on any field of marketing but I am facing some difficulty in choosing a topic for the research. Can you please help me to choose a very confined and to the point research topic?

Ray: I can help you find one, though in the end it must be a topic YOU zero in on.

The world of Marketing is fascinating. The entities and acts that make up this world are all subjects of research. For example, are consumers an entity you can study? Yes. Can you study an act like Supply Chain which is a critical function within marketing? Again, you can.

So first and foremost, you must figure out your areas of interest. It could be Consumer Behaviour, it could Marketing Communication or CRM, and so on. It could even be Industry specific. One you know what you’re interested in, you should immerse yourself into that 'specific world' by reading about it from secondary sources and mulling over issues that pertain to it. For example take consumer Behaviour and Pricing. That latest Jet strike fiasco throws up ample opportunities for research. For example, you can research on whether consumer loyalty, in the first place, exists in price sensitive markets. If it does, you can research on what parameters drive this loyalty. What causes consumers to switch? You can map switching patterns among price sensitive consumers within specific time periods. You may even do this study within the Aviation Industry.

The scope for research in Marketing is enormous. All it requires is for you to zero in on your interest, immerse yourself into that world, and mull over what you come across. Voila, you will conjure up topics that are specific, that you can then research. And your research results would contribute to enhancing our understanding of the world of Marketing.

Maybe, I will even take it to my classrooms for further discussions. :)

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Is the successful way the right way?

The explosive growth of the church, 'Reborn in Christ' in Brazil begs a question, or maybe two. Is there one 'right' way to achieving a goal, or is the way that achieves the goal the 'right' way?

Proselytising is inherent to Christianity. Its what Jesus said, 'Go into all the world and preach the Gospel to all creation' (Mark 16:15). 'Reborn in Christ' preaches using tools the Roman Catholic church or even traditional Evangelical churches frown at. But the fact is, Reborn in Christ is among a growing number of evangelical churches in Brazil that are finding ways to connect with younger people to swell their ranks. From fight nights to reggae music to video games and on-site tattoo parlors, the churches have helped make evangelicalism the fastest-growing spiritual movement in Brazil.

So the goal seems to be in grasp, of moving the youth into accepting Christ as their saviour. Also contrast this with waning Catholicism and you know, at least from the results, who's getting to the goal. Coming back to the questions, does that make Reborn in Christ's way, the right way?

In marketing too, its the same scene. That is, what is the right way to the customer? And is the way that gets the customer to buy, the right way? My take 's simple. As long as a way that's used is legal and gets the customer, its the right one. Too long have we been preached to about what the right way is, by people who are never willing to let go of their perception about their way being the right way and the only way. Its time to shrug off such wisdom. Adapting to newer environmental variables and crafting innovative ways is a must in savouring success when it comes to consumers or even the faithful. But I repeat again, no laws are to be broken.

The 'accepted' of the past is the disaster to the future. The lesson to learn from Reborn in Christ is the lesson of Adaptation. The lesson of using newer innovative tools that work. You may agree or disagree with the methods, but tell you what, its the one that's working. And they break no laws.

That's good enough for me.

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Bill Maher proves Stimuli Interpretation, not Racism

The subject of subliminal persuasion in Advertising is a controversial one. Over years the Advertising Industry has to tried to tell everyone that the charges are unfounded.

The latest airhead who's conjured up the subject of subliminal messages is Bill Maher. According to him the Drudge Report headline, “POLL HELL: OBAMA NEGS RISE,” is somehow an example of the ways in which “some of the right-wingers always drop subliminally racist messages.”

Bill Maher's charge shouldn't be seen for its contribution to proving anything on subliminal messages and their power to influence consumers (read, readers). Instead it must be seen as proving another concept in Consumer Behaviour, namely, 'Interpretation of Stimuli'.

The factors contributing to how consumers interpret stimuli include 'expectations'. That is, prior expectations dictate the way we interpret stimuli. Take the case of spiritual gurus in India. A 'believer' who attends a session by his guru, is moved to the supernatural he may experience in the room where he sits cross legged, to listen to a discourse. On the other hand, a skeptic like me is bound to yawn.

Bill Maher sees a conspiracy where there's none. He sees it because that's what he expects to see. Its the like the movie 'Crash'. Paul Haggis has constructed an American world where there's racism lurking around every corner. Racism that hangs like a dark cloud everywhere. He did it because that's the way he's interpreted what he's experienced and so that's what he expects (read Evan Sayet's take on it here) it be. Even if there wouldn't be a whit of racism in an incident. The world that Oliver Stone's constructed has him seeing a South American near dictator as a do-gooder. A do-gooder who admires a mass murderer who's projected as a 'liberator'. So guess what kind of movie he would make about W? What do you expect NY Times man Thomas Friedman to say about the Chinese totalitarian murderous government?

Bill Maher proves a point about Stimulus Interpretation and not Subliminal persuasion. Considering liberals aren't too good at realism, I am not surprised.

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Why Loyalty matters

'To be considered loyal, it shouldn’t be enough for a customer to feel a bond to a company, or to simply stick with the relationship. It should also require certain actions, or shopping behaviors, on the part of the customer.

Most corporate measures of customer loyalty focus only on feelings. But our research shows that knowing how customers feel about a company is a poor predictor of how they will behave toward the company. If data about buying behaviors are added to the mix, it can help a company identify not just who its truly loyal customers are, but which ones are profitable.'

- Tim Keiningham et al., 'Why a Loyal Customer Isn’t Always a Profitable One'.

Note: Timothy Keiningham and Lerzan Aksoy have a book out on 'Why Loyalty Matters'. Know about it here and here.

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The Myths on Consumer Loyalty

Due to the flurry of comments that my 'Jet Pilot strike' post received, I thought I should post on it just one more time.

Let me address the issue of Customer loyalty. There are too many myths out there on this (Timothy L. Keiningham, Terry G. Vavra & Lerzan Aksoy's book, 'Loyalty myths: Hyped strategies that will put you out of business' is a must read). For example, its isn't exactly true that loyal customers aren't price sensitive. Turns out they are. It isn't again true that loyal customers are necessarily always profitable to the business firm. They aren't. Not always. Note, the key term is 'always'.

Coming to whether price sensitive customers can turn loyals, the answer again is, yes. But note the caveats. Loyalty doesn't mean that the customer isn't price sensitive. He still is. Which means that a competitor airline's helping hand may provoke loyalty. But that doesn't ensure the competitor can get away with higher prices, believing loyal customers will buy them at those fares. Next, the assessment of a product or a service, even for price sensitive customers, is not based on a single parameter called Price, but on a more umbrella parameter termed Value. That is, consumers assess brands on value perceptions. Price does contribute to that perception, but it isn't the only one. If price were the only one, the erstwhile Deccan Airways should have been the most prosperous airline by now. Sure prices matter, but so does delivering on whats promised as the takeoff and arrival time. So does getting a seat with a confirmed booking (Note Abdul Qabiz's post on why Air Deccan sucks).

Note, the theory of Instrumental Conditioning states that our initial move as consumer would be to try out multiple stimuli (read, retail stores, aviation services). We then settle for that stimuli that drives the best value. The next time around as a repeat consumer, we go back to the stimuli that delivered on maximum value. We continue this over time,. We only switch when the stimuli fails to deliver on what's perceived as value by us. In short, we switch when it messes up. If doesn't, we return to it time and again.

My final point is on one of the greatest myths about consumers. That the mass consumer is a ruthless rational who throws his lot with whoever sells lowest. The truth is we are as irrational as we are rational. Dan Ariely proves this is his book, Predictably Irrational.

Any one out there who believes himself to be a thinking rational who's in control of his own decisions, I'd recommend you listen to Dan's demonstration (note the Economist subscription scenario) to the contrary. You can watch him here.

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Surviving for now is dying to tomorrow

Let me address the valid points Krishnasagar's raised. He talks of 'survival' being important, of formation of cartels, of public memory being short, and about how airlines need to communicate.

Sure, survival's important, but I wonder how much money rival airlines may have raised because they overcharged customers. Sure, demand-supply scenarios justifiy price hikes. But what it doesn't take into consideration is future revenues that could accrue due to loyalties built. Loyalty as result of showing you care enough not to raise prices at a time when you can.

A generic question. When has someone cared? And if someone did, do you remember the act for life? My bet is you do. We live in a cynical, opportunism driven world. Acts of kindnes are rare and far in between. And so when it happens, it stands out starkly against the backdrop of an unkind world. Again, when have you felt genuine care on the part of a business concern? Rarely. So when it happens, are you pleasently surprised? Delighted? I bet, you are. Let me illustrate. I now have been shopping at Spar consistently for more than a year. This despite the fact that getting to the store at Bangalore on the Inner Ring Road requires me go up a road, wait at a signal, take a U turn to reach the store. Again, despite the fact that I pay parking charges (introduced later in its operations). Here's why. Also note, I did try out Star Bazaar at Bangalore. But I didn't return. That was almost a year and half ago. Here's why and why.

Bottomline? I remember.

About cartels, sure they may crop up, but tell you what, its a life lived on the edge, with the cartel arrangements susceptible to breaking down any time. And that's when the consumer turns ruthless playing one brand against the other, trying to get the best bargain deal. Note, switching costs are almost non existent.

About airlines communicating to consumers, here's the best scenario. Don't hike prices. Help flyers out of their limbos. Get the press to cover the act. Subtly. The resulting publicity would be something a million dollars on Advertising can't buy. The icing on the Cake? A probable outcome of Brand Loyalty. That's revenue inflows for a lifetime.

Any day, that should be a brand's first pick.

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