Expense or Investment

Same cost, same dollar amount, but how someone views a particular expenditure can make all the difference when you're selling it. Whether you're talking to a company about spending on a particular project, or talking to a spouse about buying a shirt, dress, or a particular item for the home, determining if it an expense or an investment will make the difference as to whether the check will be signed and approved.

Let's start from the beginning. An expense is a sacrifice. Once an expense is paid, the money is gone forever. There is nothing coming back. The purchase of a suit for a special event could be an example of an expense. It makes the wearer happy, but wouln't return any real value other than the happiness of the wearer. On the other hand, an investment is spent in the hopes of getting a return - i.e., a Return on the Investment [ROI]. The purchase of a business suit could pay for itself by improving the wearer's appearance, helping them look more professional, and helping him or her close more deals.

For the most part, people don't mind investing if they are fairly confident they will see a return. In today's market they are more cautious and less willing to take risks, but they are still willing to make an investment where they are not so willing to incur an expense.

So, how you describe a specific cost, and how it is presented to the person writing the check is as important, if not more so, than the actual cost itself. How you present yourself is a huge factor in that mix. Are you trustworthy? Are you someone who is responsible enough to manage the money and provide a return on the investment? Or are you someone who's just going to take the money and throw a huge party? Either way, it all comes back to what kind of a return the person writing the checks expect.

$700 billion in bailout? I originally thought of it as an investment in America's future. Something that would help the homeowners stablize their finances and the banks support them. Until I started hearing about $2 million going to an arrow company in the Pacific Northwest, or how the banks were really just hording the money and not using it to open up more loans. Now, it's just an expense. Why? Because the people managing the money are either uneducated in basic finance, idiots or dishonest. Or possible, a mix of all three.

So the next time you're asking for money, either from a partner, spouse or business associate, think ahead in terms of what can be delivered and what ROI you can carry through on. The results will brand you forever....

If that's not clear enough, just think of how the original investments given to B. Madoff quickly turned into a hugh expense. Also think about what kind of new investors he'll be able to attract on his next time around....

Recession and Global Financial Meltdown Isn't Necessarily A Bad Thing

Yes, the financial sky is falling. But don't go all chicken little on me just yet yelling "global financial meltdown." There is a silver lining to the blackened skies. Well, at least for those brands and companies that can think fast and move quickly.

For those of you not old enough to remember the 80s, you need to keep something in mind - even through the economy may have stalled, life hasn't. People still age, families still grow and consumers still buy. As a brand, your ability to grow in a down economy rests on your ability to refine your message to best respond the the market's newfound concerns. And no, it's not just about pricing. It's about delivering value - value on your brand, value on your product or service. That's true whether you have a consumer product, a business product, or a service.

Have you ever met anyone who's unwilling to spend a dollar in order to get $1.50 in value? Well, that's the way to think. No, value isn't just found in discounting. In fact, that's the worst thing anyone can do - because you're decreasing the perceived value when you do it. Instead, it's about finding added benefit within a product. Baking Soda - not just for cookies, it helps keep a refridgerator fresh. Chanel - it's not just iconic fashion, it has cache that will endure. It's there in every product. You just have to remain open minded and find it.

This remains true across the board, and opens up even more opportunities for new businesses, for new products, and for new services. Well, true for those who can come in under the radar and move quickly to reposition their products while the old IBMs and Unilevers sit frozen trying to build powerpoints about what steps to take.

So now is not the time to hesitate. Now is the time to start running. The more you push now, the better you will be positioned when the economy rebounds.

If you're wondering if I'm crazy, just look what two guys created in a garage during the last big recession - a company called Microsoft....

AIG, Sherson Lehmann, Merrill Lynch - PR Spin Can Only Go So Far...

If there has ever been proof that a good publicist can only spin the truth so far, and for so long, this is it. For the past several years, the C-level executives and the boards of financial insitutions like AIG, Merrill Lynch and Lehmann have spun their balance sheets to appear rock solid. Yet, little by little, the tides of time and finance have eroded their image, until finally the entire wall of deception has come crashing down. Yes, in the end performance does count, but did the truth come early enough? Or did the spin-meisters do such a good job that the damage is irreparable.

In actuality AIG, Sherson Lehmann, and Merrill Lynch all dropped the balls on their businesses while taking self-voted bonuses, pay increases and who knows what else. They took on too much risk and made the same assumptions that the rest of the financial world made. It's not just about balance sheets and numbers, it's about a mindset. Namely, that if they just kept their heads down long enough, and gained enough fact-dodging press, the financial storm that was building would blow over and everything would be fine as day.

Hello Katrina?

The sad part is not that for most executives at these institutions, the packages they created enabled them to walk away with a nice bundle and live out their lives in comfort. The sad part is that the issues these financial institutions are having is indicative of a much larger problems. They are run by people that have the same mindset as those running this country. It's a mindset that is short term at best, and at worst borderline criminal, with absolutely no interest for the public trust, just their own greed.

It's no wonder we have lobbyists running Washington, lobbyists who are in bed with the failing companies, and with our elected officials of both parties. Ever wonder why irate Congressmen and Congresswomen railed for years about "why weren't we helping more American's buy their homes?" Well, they got us to buy!

So kiddies, the lesson here is a simple one. Don't lie. Don't cheat. Work hard and do your work well, and good things will happen. Oh no, wait. That was the attitude that made this country great. Hmmmm, now I wonder where the attitude of "work hard, make a good buck at any cost and run like the wind when things go bad" will get us...

The storm, she is a comin....

Websites Who Get It - umbrellatoday.com

Okay, enough useless talk about candidates, governments, spin doctors, and brands. It's time to jump in and talk about real products and real branding from people who understand their audience and have the guts to cut out all the fluff to give them what they want.

http://umbrellatoday.com/

It just doesn't get simpler. It just doesn't get better. It just makes you kneel down and thank the powers that be that yes - there is hope for all of this.

Consumer brands, B2B brands, political pundits, news organizations - THIS IS WHAT WE WANT!!!!!!

Palin & Coca Cola

I got into a conversation last night over a few martinis, that is relevant to this. The conversation led us into talking about brands versus ingredients, academic positioning verson real product benefits, and which was more important. So with the political pundits chattering away, and with us PR folk talking about brands, we compared Sarah Palin with another well known American brand - Coca Cola. Watch, they do have some similarities...

In one night, Sarah defined a strong position for herself when she took the podium at the DNC. She did a great job doing os, and a great many people jumped on board. Trusting her ingredients matched her brand. Now, while many may think Sarah Palin's record is a risk, we all know records can be tweaked, shifted, and distorted by the politicos and spin doctors. So while her resume includes a long list of questionable acts that include attempts at ousting an in-law from the police force, book banning, even using lobbyists for fundraising [Time Magazine 9/2/8], her position and brand is extremely strong.

Now, here's the leap that's far easier to make over martinis than on a blog, but resumes are a lot like ingredients. They are the real benefits a politician brings to the table. And like any product, the formula that has made up her past is only half the equation of what makes her a true presence in the market. The image of her being a pit bull berating her opponents carries just as strong a message as what she actually did, or did not do.

So, here is the question. In today's politics, which is more important - brand or ingredients? And before you answer, just remember what happened when Coca Cola introduced New Coke in the 80s. It thought the public's love for its brand was so strong, they could change a tried and true formula however they wished, and the public would still love it.

So, can America overlook the ingredients that make up Sarah Palin's resume in favor of her image? Is her brand and that of the GOP strong enough to overcome the product's formula?
- cannon-brandcommunication.blogspot.com -

Sarah Palin/Barack Obama - Brand USA

Okay, so after seeing the Democratic National Convention [DNC] and the Republican National Convention [RNC], I guess it has all come to this. No matter who runs, we inevitably fall into the same thing - a popularity contest where the presidential candidates try their best to stay above the fray, while hiring Vice President's who, as Sarah Palin hinted at, act more like pitbulls than humans.

So much for the issues of the Iraq war, so much for drilling and oil consumption, so much for wiretapping becoming legal, abortion, alternative fuels, global warming, half truths and mis-truths. So much for presenting a sound foriegn policy and having the chops to back it up. So much for running a campaign about what each candidate can do or can't do.


How quickly has it dropped to the same politics I saw in highschool when elected the King and Queen of the prom. Only now it's about Sarah Palin in a bikini [yes, it's a photoshop job]. But hey, that's about as real as it's going to get for us from here on out. Or so it seems from the fallout I've been reading online. While all this goes on, so much for brand USA. Instead of being a beacon for how a free election is handled, we end up being no better off than the elections we laugh at from third world nations. Chads, election fraud, uncounted primaries - what must our founding fathers think.

So let's just cut to the chase and take a look at what really matters for voters of both candidates. To heck with politics and issues, let's talk about brand USA. Better yet, let's do what everyone else is doing and forget about trying to answer a higher calling and find a way to leverage the whole mess to our own benefit.

As my brother once said about politics "Now Jeff, why would you want to go wrestle with the pig? You're not going to win. You're only going to get dirty. And frankly, I think the pig kind of likes it."


So to heck with trying to respect our candidates. Instead, I'll post it to google, and see what it does for my ranking.

After all, this blog is about branding and marketing.

Online Video Growth - Recognition At Last

The news that has been popping up lately in advertising trade publications is that online videos are a very real entertainment outlet of future. Hello? Next I expect to hear a climate expert tell me some breaking news like a global warming is going to take place.

With such stellar news from In-Stat analysts Gerry Kaughold as "The future of television is slowly being defined online..."

What "experts" like this still don't understand is that the medium will eternally change. It's the message that's important. Print gave way to radio, radio to television, television to online. But throughout it all, consumers find a way to reach out and grab the messages the want to hear.

So stop thinking in terms of medium. Stop talking to media buyers who know it's easier to fit a client into a templated media buy [1 part television, two parts print, and a dash of online just to kick things up a bit]. Think instead about your audience and what they read, watch, and listen to. Get into their heads so that you understand what their habits are. Then figure out how to create a message that looks and sounds like the popular shows in that medium.

Above all, remember, it's the message - not the medium that's important.

The Importance Of Research

From a brand perspective, there is nothing, absolutely nothing more important than research. Research to understand your customer, research to understand your client, and research to understand the market you're going into, and of course research to truly understand the product itself as well as the experience it promises to provide. Most important though, is the need to jump in and try out the product with hands on research the way the legendary ad-men and women of the 60s and 70s did.

There are stories about how account teams would spend weeks in Betty Crocker's kitchens, baking cakes and pies and cookies to get a real understanding for what the customer's experience. From weeks to baking, they were able to understand the beauty and the foibles of a particular product. They learned the ins and outs that their customers would learn sooner or later. Because of this, not only could they get inside the customer's head and write the kind of copy that people responded to. They could speak to their clients knowledgeably about what was good and what was bad about a particular product. The result from that research? The ability to turn consumers into customers and customers into brand enthusiasts like never before. They were no longer ad-men and women, they were knowledgeable customers. That is something that goes beyond pocket books, but lies deeply in the hearts, minds and souls of any successful product or campaign.

Political parties not withstanding, for any brand, be it political, consumer, or B2B to think they can skip over the time it takes to undertake research in order to understand their own product I sheer folly. If anyone thinks about rushing their product to market without doing the proper research, well, let's just watch how the cards deal out from the news that hit on September 1st, when it should have really been about a convention...