Consumer-opoly: What really motivates consumers?
January 11, 2010 by caroline b. · Comments

- Cover of King Corn (Green Packaging)
Blogging on behalf of an advertising and marketing firm, I realize that I should be prepared to answer that question, rather than simply pose it; however the truth is that the deeper I dig, the more vexing the question becomes. What actually motivates consumers? Moreover, what motivates consumers to make 180 degree changes in their behaviors, not just switch from one brand of paper towels to another? This weekend I watched two documentaries: King Corn, a film about two Boston boys who move to Iowa for a year to grow corn and subsequently follow the path of their corn through the American food system, and Bigger, Stronger, Faster, a documentary about three brothers, two of whom use steroids, leaving the third brother to wonder whether steroids are as bad as we seem to think they are. Both films challenged my established thoughts about their respective subject matter, but more than that, King Corn left me wondering what on earth it’s going to take to motivate American consumers to think—and buy—differently.
As marketers, we believe that we have the power to help companies do this very thing. Give us the time and creative license and we can show consumers the enlightened path. We can turn Coca-Cola loyalists into Pepsi drinkers via a blind taste test. We can convince people across the land that our toilet paper is softer and stronger using two pound weights and a spray bottle. There is a long-held idealism here: show people the “truth” and they will make the right choice.
But then I watch King Corn and I am reminded why Holland-Mark doesn’t put a lot of stock in consumer research. Fast Food Nation, Super Size Me, Food, Inc., King Corn—every one of those movies is telling us the same thing. With infallible proof and research to back their claims, those films tell us to stop eating the way we eat and demand a higher quality product, because the way that we are eating and the choices that we are making aren’t just gnarly, they are killing us. Seriously. (I even took the time to call my stepfather, a rancher, farmer, and crop duster in Texas, to discuss the information I was taking in. His response was almost exactly the same as the farmers in the documentary: “If people wanted quality food, we’d produce quality food. But people want cheap, tasty bullshit. So that’s what we give ‘em.”)
But consumers don’t care. Or perhaps they (we) do care, but not as much as we care about our ratio of cost-and-convenience to consciousness. I want to eat products that aren’t chock-full of corn and bullshit, but I’m also not willing to go out of my way to find them. Oh, and the cost needs to be the same. In other words, while we can convince someone that Pepsi tastes better, you better believe that if the Coca-Cola is on sale, or just in a more visible spot in the store, that Coca-Cola drinker is going to go right back to drinking the red can.
So what—if not impending death and doom—does motivate consumers?
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Domino’s Steps Toward the Truth
January 4, 2010 by Mike Troiano · Comments
When users are empowered to drown out your marketing messages, the nature of marketing changes. It needs to become “Marketing,” with a capital “M,” and bring more to the table than a tagline. As I said in my last post, where once you could focus on driving the product reality by shaping market perception, now you must also gather market perception to shape the product reality.
As if on cue, I came across a brand embracing this ethos in a very visible way.
If you want to understand why Holland-Mark is so committed to having a real impact on what our clients sell, and not just how they sell it, look no further than the changes underway at Domino’s Pizza…
Good for you, Domino’s.
So have you tried the new ‘za? What’s your take?
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Holland-Mark 2K10: Capital “M” Marketing in the Imperative Economy
December 30, 2009 by Mike Troiano · Comments
Turns out we had a pretty good 2009 here in the ‘Mark, and closed the year stronger than any of us expected. We’ve spent the last few weeks reflecting on this momentum, and on what seems to be working for clients and resonating with prospects. A strategy has come into focus around these ideas, and it’s going to have a big impact on our direction going forward.
So what can you expect from us in 2010?
Well, while we’re still going to call ourselves an “agency,” it’s just so folks have a box to put us in. The truth is we’re becoming something very different than that.
Now… I know you hear that from every advertising agency these days. Next time you do, ask whether they’ve actually turned down opportunities to create advertising for paying clients. We have, and I must say it’s been pretty liberating.
We’ve done this not because we think advertising is dead, although that makes better copy than the truth. We’ve done it because we think advertising is the wrong place to start.
The Imperative Economy
We start with an observation. It is that people — in both their business and personal lives — are only spending money on what they consider imperative. Think about how your own behavior has changed over the course of The Gateway Recession. When was the last time you plunked down the Platinum card on something that was just interesting, or even something with just the potential to influence your life? I bet it’s been a while. We buy what we need now, and it’s the same for the spending decisions we make on the job in the “B2B” marketplace.
Becoming imperative has become imperative. And doing so isn’t about “small-m” marketing, meaning, primarily, outbound marketing communications. Good advertising can make a product more interesting, no doubt. But it cannot make it imperative. “Consumers” — as we used to call them — decide what is imperative, and they communicate with each other at a volume and frequency that drowns out all but a very few deep-pocketed commercial entities.
Reality Is Perception
The implication of this is significant: Where once you could focus on driving the product reality by shaping market perception, now you must also gather market perception to shape the product reality.
What I’m saying is what we all know… that Marketing needs to step up, put the crayons down for a bit, and take a seat at the grown-up table. Getting the topline moving in the Imperative Economy will take more than advertising. It will take “big-M” Marketing, meaning a willingness to tackle the substantive issues related to:
- the relevance of your offering,
- the clarity of your message,
- the consistency of your communication, and
- your ability to drive engagement among a group of brand advocates large enough to support your business.
Holland-Mark’s Role
We think our job is to help clients establish that cycle… to “corrupt” their vision with the external reality. In a nutshell, Holland-Mark helps businesses connect with, respond to, and benefit from the truth about their customers, products, and brand relationships.
If you come across someone who needs that — and who recognizes the need to change more than just their tagline to achieve it — please drop us a line. In the meantime, we’d love to hear what you think about our conclusions, our approach, and our prospects.
Look for more details soon right here. Be sure and subscribe to our blog if you’re interested.
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“St. Lucia Redefines the Caribbean Vacation” – Travel + Leisure
Sometimes the brand defines the product. Here’s an interesting example of that, about big plans on the island of St. Lucia.
…But St. Lucia required more than just new hotels; it needed a whole new vision. For this, the prime minister turned to a 49-year-old Lucian native with two decades of travel industry experience. Allen Chastanet—no connection to the resort—had served as the island’s director of tourism in the early 1990’s. He then spent a decade in Miami working with Chris Blackwell’s Island Outpost, which runs five stylish hotels in Jamaica, and later with Air Jamaica. Upon returning to St. Lucia, Chastanet opened two small, well-regarded hotels, the Coco Palm and Coco Kreole, in the beach-and-marina resort of Rodney Bay on the island’s northwestern coast. And in 2006—upon relinquishing his stake in the Coco hotels—he was appointed St. Lucia’s minister of tourism.
Chastanet’s mandate was daunting: double the number of visitors to St. Lucia by 2012. He and his team immediately set to work on what they call a “road map” for development—an infinitesimally detailed 25-year plan that will cost half a billion dollars in the first five years alone.
The primary agenda, however, was to forge a brand for the island, with the help of New York–based firm FutureBrand, which had created destination campaigns for Singapore, Australia, and Mexico. “It was important that the brand for St. Lucia not be driven by tourism alone,” Chastanet explains in his modest office overlooking the port of Castries, the island’s scruffy capital. “The brand has to be ‘St. Lucia,’ the country. We’re only 160,000 people. If you have one overarching idea, then everyone in every sector can get behind it. And tourism can build off that.”
FutureBrand’s first trick was showing how St. Lucia’s apparent shortcomings could be recast as advantages. The relative difficulty of getting to the island, for example, keeps St. Lucia appealingly “off the beaten path.” Its low profile, meanwhile, makes it a “best-kept secret.” And its limited, mostly small-scale development qualifies it as a “boutique” island.
FutureBrand found similar themes when it identified the island’s core attributes with four key words: lush, mosaic (i.e., diverse and colorful), genuine, and, again, boutique. It’s this last characteristic that struck a particular chord with Chastanet. “To me the word is about attention to detail, great service, a unique personality, being intimate in scale,” Chastanet says. “St. Lucia has that in spades.”
Most of the island’s existing hotels and resorts are on the smaller side to begin with; this will now become a priority. All-inclusives and international-brand resorts will play a part as well—“You need a mix of properties to give you volume and flights,” Chastanet explains—but the emphasis has to be on the little guys.
This wasn’t just a cynical leap onto the small-is-trendy bandwagon. Chastanet and his staff worked up complex algorithms that proved “boutique” (read: smaller) hotels are the best investments in terms of both capital and the island’s most limited resource: land. “They hire more people per room than bigger resorts,” he explains. “They tend to have stronger links to your economy. Being small, they cause less stress on your infrastructure, and are generally less damaging to your environment.”
Some of these boutique properties will be budget-oriented: B&B’s, homestays, two- and three-star hotels. But near the top of the agenda are what the industry calls “premium pleasures.” St. Lucia was already a port of call on the yachting circuit; this spring the Rodney Bay Marina was upgraded and expanded to cater to “megayachts,” a whole realm beyond the 100-foot superyacht class. And on an island with only two golf courses, seven more are currently in the works.
But fairways and megayachts are not the endgame. St. Lucia could certainly fashion itself after other small islands such as Turks and Caicos, which has had great success with luxury boutique resorts such as Parrot Cay and Amanyara. Instead, Chastanet is thinking outside the typical Caribbean mold—by incorporating local culture into the plan. You heard that right, vacationers: culture.
As Chastanet sees it, today’s discerning travelers want more than a sea-and-sand escape; they want a singular experience on top of their R&R, preferably one that conveys a sense of place. “You need to create opportunities for the guests to interact with locals,” Chastanet says. For this reason, St. Lucia’s best bet is to embrace the idea of “village tourism.” “The concept is no different from what you see in France or Italy,” he says. “Only there, it’s done on a more sophisticated level, and it’s developed organically over hundreds of years.”
The Miles Paradox: Can a free benefit actually decrease customer satisfaction?
December 24, 2009 by Anita Tandon · Comments

- Image by Getty Images via Daylife
Ah, the holidays. With my parents in Austin and my in-laws in San Francisco, I’ve picked the most convenient location of Boston in which to reside. Accordingly, the holidays call for the dreaded task of finding a flight to one coast or the other. I pay it up and suck it up, comforting myself in dreams made of miles earned, upgrades enjoyed, and status galore.
And yet, every time I try to enjoy said benefits, I find a frustrating set of fees, blackouts, lack of seats, and general irritation. Customer Service Reps scoff at my 25,000 miles. When they call out those with my hard-earned Gold Status, everyone in the waiting room gets up. A moot point, because the Triple Platinum Executive Czars who boarded before me have already filled the overhead space with blazers and once, an oversized foam cowboy hat. My frustration turns quickly to anger. All in all, I can’t remember the last time I had even a barely satisfying experience with anything that comes with any sort of travel rewards program. I imagine many of you have felt similar pain. Slowly but surely, I launch into a tirade of how much I hate X Airline.
What’s interesting is that these are “free” benefits. They are given to me and shouldn’t impact my opinion of the airline. I should be thankful for what I get. Regardless, I can’t disassociate the two, and my opinion of their customer service and care decreases. This happens because there is an expectation of benefits that comes with granting someone “status.” But the people within the status system continue to increase — mostly because everyone clamors for entry-level status for basic benefits of boarding and baggage that we should get anyway. The airline answer to this conundrum is to continue to add higher levels of status — rather than raising the barriers to status. Unless you are at the highest levels, you are generally disappointed with the perceived benefit of the status you do have. The same follows with miles.
As only the airline industry is capable of, they have built a system that simultaneously increases their costs and decreases their satisfaction levels. I’d much rather a system that doesn’t give me a mirage of benefits. It’s ok that it takes 50,000 miles to buy a ticket. But don’t run around showing me a 25,000 option. I think only 10-15% of people should board the plane early, so if that means there’s no “gold” status, then so be it. Make rewards feel like rewards, not a hassle.
Posted via web from holland-mark posterous
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