Advertising by the state

In many countries, the state is one of the leading spenders on advertising. This was true in the UK up until the summer of 2010. Then, as part of a review of spending the decision was made to slash staff and budgets [1] for the department responsible for organising and commissioning government advertising campaigns. Such spending was described as a waste of tax money.

What purpose did these campaigns have? Often, their messages were about community or health issues. An example from just last year would be the campaign run to help prevent the spread of Swine Flu. Catch It, Bin It, Kill It.

At the turn of the year in 2010-11, medical statisticians tell us that the proportion of the population with ‘flu is significantly higher than for the same period last year[2]. There are probably a number of reasons for this, but one of them is that the advertising campaigns reminding people how to stay healthy didn’t turn up on posters and TV.

This has created a dilemma for the UK government. The more people that catch flu, the more contagion spreads. The more people get ill, the more people die. That is – there is a link between the money spent on advertising and how many people will die. Acknowledging this, the government has reversed their decision in respect of the Catch It, Bin It Kill it campaign, and this will now run again.

A related issue is that of how profit making companies latch onto government campaigns, hoping to draw on their credibility – sometimes by imitation of phrase or image - to sell their own products.

[1]  Government advertising budget slashed http://www.bbc.co.uk/news/technology-10851273

[2] Flu deaths continue to increase: http://www.bbc.co.uk/news/health-12094135

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Extreme Retail Bravery

Here is a picture of a small retailer that has recently opened near where I live. As you can probably guess from the picture, this is an independent newsagent/grocers. Based on your experience with similar retailers you can probably infer what categories of products it sells. There will be newspapers and magazines, a plethora of chocolate bars. Cigarettes and some alcoholic drinks will be on the back wall. A limited number of shelves will stock common food and household items – detergents, snacks, soft drinks in a branded refrigerator. It seems a reasonable guess that this is a family business.

I visited this shop a couple of weeks ago. Products were reasonably priced, the physical environment was basic but clean and the service was prompt and polite. I have no doubt that the people running the shop are dedicated, committed and will work hard. The area in which it is located is very near to the city centre and sees a lot of foot-traffic through the day, and of types of people that are quite likely to want something this shop offers.

So then – this is going to be a successful small business, one of the many hundreds of thousands of its type across Europe that trade, providing convenience to millions of customers and contributing greatly to employment, social mobility and economic development?

No. This shop is a Dead Man Walking. It was dead before it ever opened. I’m not sure how long it will last, but I will be surprised if it is still there in a year, and amazed if it is still there in two.

Why am I so sure? The answer lies mostly in what is happening on the other side of the street.

And there we have it, the cause of death.  Colonel Mustard, on the High St, with the metaphorical lead pipe. If you are in the UK, you have a Tesco near you. You probably have several. Notice those were statements, not questions.

Why is this Tesco going to kill our retail David? Let us consider a few of the reasons, and this list ends when I get bored of typing, not because I’ve run out. If you disagree with me – put yourself into the position of someone walking along the street in need of something trivial – your lunch, a newspaper, some cigarettes, a lightbulb.

Which of the two is going to have the best prices? Which the best range of products/number of choices? In respect of fresh food and vegetables, where will quality be higher? Which shop is likely to offer you everything you want in one stop? Which is most likely to be open early in the morning or late at night? Which will have full rather than empty shelves. If you are in a group of people, where will everyone automatically go without negotiation.  Which is most likely to accept your credit card.

In short – what can the small independent retailer do better than Tesco, when considered from the perspective of the customer?

What has just been described there is a very local issue. Nationally, this issue of larger companies beating up the little guy is of social, cultural and political importance. The BBC webbie has a news story on this topic today, in support of a programme this evening [1]. If you read the story, be sure to look at the attached graphics and perspectives from local residents, farmers, small business owners and unions[2].

This particular Tesco has form – the previous enterprise in the space now occupied by our poor little newsagent was previously occupied by an off-licence, selling alcohol. They went bust, and I think we can probably guess why.

I take no joy in my prediction. I have no reason to think the newsagent is owned and run by anything other than decent, hard-working people. I hope there are not bankruptcies, I hope there are not divorces.

Merry Christmas!

[1] Growth of the 'big four' supermarkets - http://www.bbc.co.uk/news/uk-england-12039041

[2] For and against - http://www.bbc.co.uk/news/uk-england-11936730

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Branding and the sexualisation of children

A strong brand - one that is appealing to consumers - can be an important asset for an organisation, whether it is a charity, or a commercial organisation.

Here is a brand spokesman describing the brand of the company she works for:

“A brand that is urban, trendy, stylish and sophisticated,” [1]

How fantastic. What is the brand exactly? Playboy.

And there we see the instantly recognisable logo of a company with a rich heritage dating back fifty years or more. Ahem.

Branding can be a contentious issue though. Here is an example. Should a brand with a sexual component be permitted to appear on products intended or often used by children? For example, should an obviously sex related brand like Playboy appear on something like a pencil case?

If you could change the law, would you prohibit this? The current UK government is thinking about it seriously. A minister has recently said:

“Parents often find themselves under a tidal wave of pressure, buffeted by immense pester power from their children for the latest product, craze or trend. I want this review to look at how we can equip parents to deal with the changing nature of marketing, advertising and other pressures that are aimed at their children.” [2]

The boss of a ‘family’ charity – The Mothers Union – Reg Bailey [3] has been tasked with reviewing the situation and reporting some recommendations. He has asked for the British public to send him examples of “products of concern”. As a devout Christian, I suspect he may find the contents of packages he receives to be eye-opening....

[1] From: http://news.bbc.co.uk/1/hi/business/7415538.stm

[2] From http://www.bbc.co.uk/news/uk-11923107

[3] Reg may not actually be a mother himself, I’m just playing the percentages here.

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Marketing data - visualisation and interpretation

When I find myself discussing what contemporary students are better or worse at than their forebears, one topic that crops up regularly is the ability to comprehend and manipulate numerical data – maths and stats related skills. It is a matter of deep regret to me that the curriculum across the UK Business School sector is becoming more and more a-numerate year on year as students [and staff!] become more innumerate. Foreign students  regularly express their surprise at the low level of ability of even the very best UK students.

One of the ways this impacts on the teaching and learning of marketing related topics is the way in which you present and discuss data. Enter stage-left a new hero of mine. David McCandless describes himself as a data journalist and information designer. What that means is that he takes often complex and large sets of numerical data, and thinks of clever ways to present them in graphical form – so that they can be understood, comprehended and interpreted at an at least surface level.

You may have seen David’s work on a printed newspaper page or more likely on the equivalent website. One he did a while back was about the amount of oil being spilled in the gulf by BP in comparison to other oil leaks – that one went viral. Many of these representations are relevant to marketing activities, but let us just pick a couple of examples.

1.       World Map of Touristyness: Map of Touristyness . This map takes file tags from a photo sharing site and compiles them with geographical co-ordinates to show where tourists go – or at least where they take their photos!

2.       The colours used in products, packaging and advertising is very heavily culture dependent. This wheel compares and contrasts social/cultural perceptions of colours around the world: Colours in Cultures

3.       There are a great many types/brand of carbonated beverage available. So how many companies actually manufacture and market them? It might be a fewer than you think: Soft Drinks - note the link at the bottom for zooming/exploring

4.       Finally for now – places and people are different. Every country is the best/most prominent for something. Here is a not completely serious visualisation of that: Every Country is the Best at Something

Seeing as David has so kindly presented us with these free toys, we should return the favour! He has a very interesting looking book, and I'm sure I'll pick up a copy sooner or later: Information is Beautiful

Why do overseas students study marketing in the UK?

OK I've been thinking again. Yes, I know I should probably give it up. Anyhow, this time it was about why a lot of students from other countries come to the UK to study marketing. Here is what I came up with. However, I would be very, very (I mean very) interested in the views of marketing students about this. In a sense, I am using this blog to do a little market research. So there you are, real marketing in action at the Marketing: An Introduction blog spot.

1. My feeling is that overseas students want and expect a traditional UK educational experience. They probably need frequent/daily contact with peers and tutors throughout the year in order to feel properly part of the institution and the British educational culture (which they value). They are NOT just here for the qualification, as some people seem to think. They want much more than JUST the qualification.

2. In general, more work-experience integrated into the programmes is a good thing (within reason). However, not all students will want it, so should internships be optional rather than compulsory?

3. The CIM is the premier professional body, and business schools need to stay close to them. Other professional bodies may be desirable, but are less valuable. The key professional bodies, other than CIM, are IDM, DMA and MRS. (Are they? Do students care about professional bodies at all?)

4. There is a limited range of programme titles that will attract substantial student numbers. We mustn't try to get cute by using innovative programme titles - the students will just not come. Students want programme titles that give a sense of authority, not programme titles that reflect the latest fad.

5. Presumably WOM [sorry, word-of-mouth] - by which these days I mean largely social media - is just going to become more important. If a student is having a bad time, then friends at school back home will hear about it. Not long ago, this was not the case. This has important ramifications.

6. Overseas students come here because it's Britain/a major city/English-speaking and a reputable educational institution. They like qualifications that combine marketing and management. They want to experience a proper UK education; they want to respect their tutors for their expertise, wisdom and kindness. They want to be treated well, and have problems resolved swiftly. Yes, they want some preparation for work, but they don't actually want a highly vocational training-like programme - that doesn't conform to their idea of a traditional UK university education. They want a nice combination of the intellectual and the practical. They want to feel educated, that their horizons were widened by their time at a British university. Obviously they want employment-relevant stuff as well - but NOT only that stuff.