Fear the Coconut

You look at your Google search results .. disappointing .. competitors ranked ahead of you .. how did that happen? Your web guru assured you he had optimized your site utilizing the latest techiques to manipulate Google’s algorithms so your website would “score” a high search ranking. Sounded great. You paid the bill for his expert services. Just one problem .. where the heck is your Google listing? Not on the first page .. not on the second. You pick up the phone .. Mr. Web genius, what’s wrong. You get an answer that sounds something like, “the webbots this or that and I can get you updated for only half of your last invoice”.

This week a leaked internal Google document revealed exactly how the leading companies secure their high Google rankings – they pay for it!

Here is what the top advertisers spend in one month (June) on AD WORDS:
- 47 advertisers spent over $1 million.
- AT&T led the way at $8 million.
- 71 companies spent between $500,000 and a million.
- 357 companies spent between $100,000 and $500,000.
- of the top 1500 advertisers, 1356 spent between $10,000 and $100,000.
……. in one month

All of these companies have top web teams .. know everything there is to know about search engine optimization. They “Facebook”, they tweet, they have blogs, they have strategic links, etc.
So why do they spend so much cash on ad words?

Because it is a pay for click Internet world. Simple.

How does Google make it’s money? Advertising. Ad words.

If Fortune 500 companies and their expensive, talented web teams can’t “trick” Google’s algorithms, what makes you think your web genius down the street can?

Here’s my suggestion. Next time someone calls on the phone telling you he can turn a few SEO tricks to get you a top listing, offer to pay his price only if he can get and keep your site on the top of the heep for 45 days or more. If he can’t, you don’t pay.

I read an article in the local newspaper’s business section.

The title …
Social media are new way to cold call (actual title)

The article is syndicated and written by a “sales expert” from North Carolina. So I’m not calling out the newspaper or the editor … just the “expert”.

What the “sales expert” opines in this article is simply marketing poppycock. Virtually overnight a host of Social Media experts have popped up wanting to sell all of us the new magic formula for success – Social Media. They tell us about the 450 million people on Facebook. They remind us of 30 million people on Twitter and 65 million businesses on LinkedIN. And of course, the millions of videos posted everyday on YouTube.

We are missing out! The answers to all of our marketing needs is right in front of our eyes! And they are free, says the “sales expert”.

The “sales expert” says we should stop pounding the pavement and try pounding the keyboard for connections. He tells us to wake up and smell the re-tweets. The few companies that are heavily involved are silently reaping the benefits. Why silently? Because they don’t want their competitors to wake up and get on the bandwagon. So he says.

Oh my.

The “sales expert” needs to do a little homework of his own. Most of the people truly benefiting from the Social Media hoopla are those companies touting it and offering to provide expert assistance for a substantial sum.

Those touting Social Media consistently point to the number of followers on the various sites as the primary evidence of success. Call me old fashion. No one has ever before, but go ahead. I am of the school that says marketing is intended to create REVENUE. Followers are only great if they spend money with the companies they follow. Try to get your banker to take “followers” as collateral for your next loan. READ CLOSELY … there are very, very few companies to date that can monetize their social media marketing.

There are certainly some B2C (business to consumer) applications for social media. We’ve witnessed some examples of success. It is very easy and inexpensive to set up Facebook, Twitter and LinkedIN accounts. Your teenager can help! She can even get your business a YouTube Channel. No problem. However it is extremely expensive and time consuming to maintain these undertakings. We hear stories of companies devoting 80-240hrs per month to keep the various sites updated. Really.

Our heads are not in the sand.

Ocozzio has a Social Media strategy. We have a blog (you’re reading it). We have a YouTube Channel (all of the videos that are on our website are located there). We have a Twitter account (although I can’t find anything worth tweeting about). We’re on Facebook and LinkedIN. But Social Media is a small part of a much larger marketing effort. We have our finger on the Social Media pulse and are ready for a larger response when the time is right.

We also help clients implement a Social Media plan and incorporate it into their overall marketing strategy.

Perhaps these Social Media efforts will result in revenue. Someday. Perhaps the Social Media solution that really works isn’t here yet. Could it be ads that pop up on our smartphones when we pass a business? I hope not, but that’s the new buzz in Social Media advertising circles.

The “sales expert” should contact MySpace. Perhaps he can explain his Social Media strategy to them. They need some help rebranding themselves. They are advertising for a new agency to help re-launch their Social Media brand. Actually what they really need is some users … more importantly, what they really need is what they have always needed – advertisers who pay real money.

Anybody remember Friendster? Really there was a Friendster. MySpace replaced them.

The most useful thing I remember from my undergrad degree in Psychology is : actions precede feelings.

Let me say it another way. You don’t love Coco-Cola because of a commercial with kids standing on a hill singing. You certainly don’t become a convert because of a commercial. You can be convinced to try a soft drink brand because it looked good or the message and images were attractive to you. You might try it because you like the shape of the bottle or the graphics were appealing. But, if you don’t like the taste or don’t like it as much as another brand, you will not likely try it again.

There is a growing trend with professional marketeers that proclaims, “if we can get you to fall in love with the brand, you will love the product”. I will suggest that unless you love the product you will have little concern for the brand.

I watched a special on TV last night – believe it was titled, “The Real Story Behind Coco-Cola”. It was actually interesting. In part it told the story behind the famous Coke bottle shape – how that astute marketing strategy was employed to distinguish the “real Coke” from the many imitators in the early years. It was a brilliant move and the bottle shape became one of the most recognizable shapes for brand call-out. On the TV Special, Coke marketing execs were touting their decision to convert the 2-litter bottle to the “hoop skirt” design. Their reasoning – it would make the brand stand out on the shelf and associate past good times and warm feeling with the brand. What? Really? Really?

Call me a sceptic. Fond memories from my youth influence my soft drink choice? Some marketeers are taking themselves too seriously.

You may remember, if you grew up in the Fifties, going to the gas station (that was the convenience store of the day), lifting the top to a big red cooler, reaching into the icy water to retrieve an incredibly cold 10oz bottle of Coke and thinking how amazing good this tastes on a hot summer day. At a nickel per bottle it was expensive but worth every cent.

I remember that experience fondly. However, I’m a Dr.Pepper drinker – Diet Dr.Pepper drinker to be exact. All those fond Coco-Cola memories can’t compete with the taste of Diet Dr.Pepper. The secret is Diet Dr.Pepper taste like “real” Dr.Pepper. I like the taste much more than other soft drinks. I’m a fan. Diet Dr.Pepper has 0 calories. Winner. The day Diet Dr.Pepper doesn’t taste as good as it does today – I’m gone. Brand love or not – gone.

The Special also talked about New Coke. For those who have forgotten or it was before your time – the great Coco-Cola brand changed it’s formula. Why? Because of a commercial. A Pepsi commercial. A blind taste test. Pepsi’s taste repeatedly won over Coke. Pepsi sales spiked – actions precede feelings. Coke reformatted it’s formula to taste more sweet like Pepsi. Coke fans were outraged. They lobbied and won. Sales soared. The Coke execs claimed it was because of the brand love, people wanted back the Coke of their youth. I suggest it was for a different reason.

The “people” had won over the big company. They got their way. Coco-Cola recaptured market share.

None the less – actions precede feeling. When people “acted” and tasted Pepsi – Pepsi won over brand loyalty. Coke fans chose Pepsi. They tried it, like it and Pepsi’s market share grew substantially – even with Coco-Cola’s reversal.

Contrast the taste test with Pepsi’s Super Bowl ad featuring Cindy Crawford provocatively drinking a Pepsi while a young boy admired the Pepsi from a distance. Remember. Great ad. Won the best Super Bowl ad in USA Today. Didn’t create a single click of market share. Nothing. Memorable ad … no measurable results.

If you want people to love your brand, you must get them to try your brand.

The most clever product/company name – greatest logo ever created – the most feature rich website – the best marketing campaign will not convence people to love your brand. Great marketing is intended to get people to try your brand.

The minute a marketer starts talking about how she/he is going to help you grow brand loyalty by getting people to fall in love with your brand – take your money and run. Actions precede feeling. It’s like gravity – it is rarely defied.

Let”s begin with a confession. I’m an Apple guy. Bought my first Mac on February 24, 1984. It’s strange that I can remember this date but not sure what I had for lunch today … another story.

Now to the point of this blog: Apple stock is trading at $255.73 as I write. That quite a ways off the 52-week high of $272.46 … but then again, what isn’t off over the past two whirlwind weeks (can we say Euro debt, leaking ocean oil wells, etc). Still it is way up over the 52 week low of $130.91.

Yesterday the Wall Street Journal reported Apples Market Cap exceed Microsoft’s. (Microsoft still makes more money!) As I read this, my memory (remember my long-term memory is pretty-darn good) was that Apple and Microsoft were not were close to one another … not in the same league ten years ago. Schwab made the research very easy. Here’s what I found:

Apple
In 2000, their Market Cap was $16b … today it is $232b
Microsoft
In 2000, their Market Cap was $556b … today it is $228b

What happened? How could it happen?

We know what Apple did … iMac, iPod, iTunes, iPhone, now iPad. How could Microsoft let this happen? With all the money for capital investment in new products and services, how in the world could Microsoft not only fail to grow, but lose over half its Market Cap?

More importantly … as you and I look around our marketplace … what are our competitors doing?
What are WE doing to change tomorrow?

“Tomorrow” can look a lot different than today. Things change … quickly.

As difficult as it may be to believe, I did beat Lucas Glover. He was even par, I was one under. Same tees. Same group. Fair and square.

However, I did lose to Senior Tour PGA Champ, Jay Haas by one stroke. Once again, same tees and playing in the same group. Congratulations, Jay.

All of the above is true. I have witnesses.

It isn’t the whole truth. I played one hole with Lucas. On the 185 yard 12th at Sage Valley Golf Club, Lucas hit his 7 iron to 10 feet. I hit my 4 iron to 1 inch. He missed. I made mine. Winner.

Jay Haas played two holes with our group. He went birdie, par. I went par, par. He wins.

Perhaps you’re thinking, how is this guy going to transition from bragging about golf to something worthy of a business blog.

Well … Ocozzio believes if you are to build a long-lasting, trusted brand you must be truthful with your brand messaging – completely truthful – all of the time. As tempting as it sometimes can be, you must avoid half-truths. Sooner or later you will be discovered and all the value you have worked to build will be gone in a flash … or in a lie.

P.S. – Lucas, I’m pulling for you to defend your title at Pebble Beach this year. I will be watching on TV and rooting you on … but don’t call me for a rematch. It’s not happening. You had your chance.

P.S.S. – Lucas, thanks again for intentionally missing the putt.

A friend was telling me of a recently a business meeting with others in his firm. The debate was long and heated. The further past dinnertime – the more heated it became. Philosophy and personal beliefs were intertwined with opinion and emotion. Rarely do these types of discussions turn out friendly or beneficial.

It was principally a “the chicken or the egg” deliberation over the cause of the problem with very little discussion about solutions. Finally someone came to their senses, perhaps swallowed some pride and said, “Since we can’t decide what caused the problem, let’s assume you’re right. The problem is still the problem and we need to fix it.” Fifteen minutes later they all agreed on a course of action, a timeline along with individual assignments.

I don’t remember who in my past taught me this very valuable lesson, but thank you many times over … He said (had to be a “he” because it was a years back when all bosses were “he’s”), “Let’s not spend time deciding who shot John, let’s get John a doctor.”

One of the reasons larger organizations struggle is the need to pen the problem on someone or something before they began attempting to fix it.

As I write, there is a “situation” in the Gulf that requires some “fixing”. Crude oil is leaking and threatens to contaminate the Gulf Coast. All hands on deck focused and working on solutions to deal with the problems. There will be a time identify mistakes, to place blame, and charge the guilty.

I’ve been in Washington DC for the past few days. Every time I come I’m reminded how lovely the Capital is. I wish our government functioned as well as the city is beautiful …. but that is a story for another day.

One of my missions for this trip was to learn as much as possible about the new healthcare law … all 2800 pages. Ocozzio serves many Third Party Administrators and supporting services. It is important for us to “study up”. We’ve been reading everything we can put of hands on … talking to the “experts” and trying to understand the opportunities afforded to our clients.

The US Chamber of Commerce’s Katie Hays provided a comprehensive recap of the new law and discussed the various impacts it is likely to have for benefit providers. As Executive Director of the Congressional and Public Affairs Division of the Chamber, Katie and her team are among the very small group whom have read the entire bill. One very interesting, but not surprising tidbits is according to their research to date, there are 44 instances where the bill legislated opposing policies. This portion of the research is less than 50% complete … so there are likely many more contradictions to come.

We talked with four senators and six representatives about healthcare. No one is happy with THE new bill – some are happy this is A bill. All believe there will be many amendments over the next year. Some believe there will be MAJOR revisions. Both sides of the aisle were represented!

The good news is Ocozzio has come promising opportunities to share with our clients.

Last take away from the Washington trip – a representative democracy is an ugly form of government. We need a benevolent dictator – I’m officially volunteering for the job.

The British are coming and the message must be spread to the villages outside of Boston. We all know the story of how Paul Revere rode through the night toward Lexington warning all who would listen. Few of us know that same evening under the identical circumstances, one William Dawes also set out for Lexington with the same message. Revere headed northwest – Dawes went due west via a similar number of villages on his way to Lexington. Why was Paul Revere far more successful?

I recently re-read Malcolm Gladwell’s outstanding book, The Tipping Point. While Gladwell was not commenting on social media he did make some very interesting points about viral marketing. I suggest you read the book for the complete message, in the meantime, here is the Cliff Notes from the passage sited.

The effectiveness of Paul Revere had much to do with Mr. Revere himself. His excellent reputation, his integrity and his community involvement offered credibility to his midnight ride. Not much is known about William Dawes. He certainly did not have the visibility of Revere in the townships around Boston.  Perhaps it was personality; perhaps just poor execution but identical missions undertaken on the same night had dramatically different outcomes. Revere raised an army of farmers and townsfolk who dealt the British a remarkable defeat. Dawes didn’t raise a stir.

Not all word of mouth efforts create an epidemic. People pass along volumes of information to one another everyday. It is rare that information becomes viral and spreads rapidly. Why? Gladwell suggest it has much to do with the involvement of rare individuals with a very unique skill set. He calls them “connectors”. Once again, I suggest you read this important and fascinating book.

The take away is important for those of us seeking to “spread the word” on a minimal budget. It isn’t that we must get people talking – we must get the “right” people talking.

I’m a car guy. Actually I’m a BMW guy. For most of my adult life, I’ve driven BMWs.

I now drive a Mercedes.

What did BMW do wrong to lose a long-term, loyal customer? If you read many marketing blogs, it seems everyone is discussing the need for brands to engage their customers, to create dialog, to provide a forum for customers to communicate with one another about the brand. So what grade would I give BMW’s for “engaging me”: an A. BMW invited me to a three day driving clinic at their US headquarters in Spartanburg, SC. It was great. I met many great fellow BMW enthusiasts. We talked for hours about our love for all things BMW and the 6 Series in particular. Every other month BMW sends me a beautiful magazine with interesting stories and lustful photos of beautiful BMW cars. They provided a special owners only section of the website with all kinds of insider info and many helpful owners tools. They send great gifts from time to time – still appreciate BMW introducing me to TED (www.ted.com).

So it must have been the local dealer’s fault.

Nope. Taylor BMW in Augusta, GA is the benchmark of what a car dealer should be like. Great service. For example, my wife’s X5 had a fuel pump go bad. We were 25 miles down Interstate 20 on our way to Atlanta to shop – the engine goes dead – bad fuel pump. I buzzed BMW on the in-car emergency system. They sent a highway patrol car and a wrecker service. Taylor BMW sent our salesperson out to meet us. He brought us another X5 so we could continue our trip while he waited for the wrecker. So how’s that for service? How’s that for taking care of the customer?

Am I crazy for buying a Mercedes?

Say what you want about brands. Discuss until you run out of “blogging room” about the importance of brand building thorough various means – social media, traditional brand authority efforts, etc. At the end of the day all the brand building in the world doesn’t overcome PRODUCT deficits.

BMW didn’t have a car I wanted to drive.

It was really tough. It is still tough. Seriously. I’m a BMW guy. They didn’t have a car I wanted when I was ready to buy. Drove the 7 Series for nearly 20 years. Had a great black 650 coupe. Enjoyed a nice white X5. Needed. Wanted. Required something different. Nothing in the line up appealed to me.

Then I saw it.

An ad. For the ALL NEW Mercedes E series. New from the ground up. It looked great. It was priced right. I drove it – like it – bought it. Six months later I still like it.

But I’m a BMW guy. It difficult to admit to myself that I drive something other than a BMW. I will go back. I promise BMW.

Brand is important. But so is having the right product. BMW lost me because the product line became stale. It is essential for all of us to keep our products and services relevant to our customers. Even the most faithful, loyal and committed can be lured away when we don’t meet their needs with the right product. Brand or no brand. Engagement or no engagement

Still can’t believe I drive a damn Mercedes.

(hey, I realize I’m lucky to have a car like this … heck I grew up poor … just using this illustration to make a point)

John, Paul, Pete, George and Stu called their band, “The Quarry Men”. They were good enough to get extended gigs in bars around their hometown. Stu was a big fan of Buddy Holly’s band, “The Crickets”. It was he who suggested “The Quarry Men” change their name – he recommended “The Beetles”. John thought it was a good idea but chose to spell Beetles – Beatles, for “beat” music. The year was 1960. Today and perhaps forever, The Beatles and their music will emanate from whatever the music playing device of the day.

But not because of the name they choose.

The band made some hard choices. They fired Pete and hired Ringo. Stu went back to school. They also possessed incredible talent as writers and performers. Mix in some luck and the rest is rock and roll history – music history.

All this to say this.

The name of your enterprise is important. It just isn’t as important as you may think. Here’s what’s important: A value proposition that resonates with your customers. A well-defined strategy for execution and market penetration. Talent in key positions. Then – Execution. Execution. Execution.

The name of your business is important, just NOT as important as the fundamentals.