I Pity The President - or Truth in Advertising

It's election night, and no matter who wins this election, I pity the fool. Why? Because each has made promises that they simply can't keep. I do promise this. Somewhere in the first months of their presidency will come the message "It's much worse that I had thought. That SOB George W. lied to us, and now I can't do everything I wanted to. Even worse, I'm going to need each of you to work even harder in order for us to get back on track."

Why do I say this? Well, let's just look at the larger picture - of what's going on with this country. And no, this isn't a bash on the country. I love it deeply and feel it is still the greatest country on this planet. However, our January 1st is coming up quickly and we are already waking up with one hell of a hangover.

The fact is simple, for the most part our lifestyle is based on a level of consumption we simply cannot continue to maintain. We have larger refridgerators that most of the world can even dream of. We drive larger vehicles than most of us can afford, and that far exceed our fuel resources. We are demanding greater benefits from employers, but we have fewer jobs available to us. The worst part is, none of this is a result of the credit meltdown. It is due to our maintaining a lifestyle that is far out of touch from the rest of the world - and none of us are changing our way of life to fit the resources at hand.

The sad part is, as a nation, we are rapidly finding our horizon point where we will be forced to fall closer in line with the rest of the world. The next President will be the first one that will not have much of a choice but to wake us up to a rather nasty hangover. And no, I don't think he will have a large enough aspirin to ease the sunrise...

What Happens When Mavericks Act, Well, Like Mavericks

The news is filled with breaks between Sarah Palin and John McCain. McCain's camp is calling Palin a "Diva." Palin's camp is blaming McCain for botching her coming out party. Both are probably right - although it probably is sexist to call her a diva - even though there were "diva" wars several years ago between celebs wanting to be known as the "only true diva," - but that's another blog entry all together.

Back to the question at heart - which is I'm not sure what the problem is. The RNC decided early on that they would brand McCain as a "Maverick." They then decided to bring in Sarah Palin as "Another Maverick." It's not a bad brand to assign. In fact, it ranks rather well in people's minds. Ms. Palin augmented Mr. McCain's maverick brand and as polls showed, gave a real shot to the campaign. The problem wasn't in the concept of the maverick brand, it was in how to keep the brand alive, without it turning into a flat, two dimensional moniker?

As it turns out, it's not an easy tightrope to walk. Just look at a brand like Sketchers. It was a great, counter-culture brand when it first launched. It was a maverick brand. However, once it became popular, the brand realized it had to give up some of its counter culture status in order to make more money. After all, how counter-culture can you be when you're sold in Kmart?

So it made a decision - stay true to its brand, or take a brand shift and make more money. Some brands stay true to themselves and never grow [just walk into any skateboarding store]. Others manage to stay true to the brand and grow to a certain extent [Clif Bars has done an amazing job at keeping a maverick brand alive, while growing well]. Still others, try to keep walking that line, only to realize to late that their market likes the idea of a maverick, but has trouble when that maverick keeps acting, well, like a maverick.

Bottom line, the concept of being a maverick is great on paper. But how do you keep a maverick in line so that they give a consistent message day in and day out? Even more important - how do you keep a maverick on message?

Once you do, they're no longer a maverick.

Again, great on paper - impossible to maintain over the long term...

When The U.S. Government Gives Kickbacks...

Well, I you were ever wondering how Washington really works, this $700 Billion bailout bill is an education in what really goes on to turn a bill into a law.

We start with an innocuous bill that taxpayers will fund to the tune of $700 Billion to pay to keep our economy shored up. It seems to me very simple. However, in order to get the money meant to bail out the Wall Street Wizards to the Wall Street Wizards, our elected officials had to be incentivized to vote for it. Some could call it a bribe, some could call it a kickback, but I think the official term is money being "earmarked" to a specific cause. Hence the reason for all the extras being added to what one would assume is a very simple, straightforward bill.

Imagine if you will a conversation like this:

Senator #1 – “Senator – will you vote for this bill meant to help keep America's financial system afloat and keep us out of another great depression?”
Senator #2 – “I don’t think so.”
Senator #1 – “What if we added on a little something for your home constituents?”
Senator #2 – “Well I’m liking it more and more now. What exactly are we talking about?”
Senator #1 – “Hmmmmmmm, well, would that wooden arrow manufacturer who helped pay for your campaign last year like some money?”
Senator #2 – “Where do I sign Senator?”

Lo and behold, the bill gets passed. How else do you explain what has been added to the bailout bill:

- $2 million tax benefit for makers of wooden arrows for children

- $100 million tax break to benefit auto racetrack owners

- $192 million in rebates on excise taxes for the Puerto Rican/Virgin Islands rum industry

- $148 million in tax relief for U.S. wool fabric producers

- $49 million tax benefit for plaintiffs who sued over the 1989 tanker Exxon Valdez spill.

All of which you are paying for.

It’s a little different than how School House Rock explained it when I was a kid, but welcome to Washington…

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!!!!!!