I just posted,

Within 12 hours, I read two newsletters with deeply disturbing stories–one about the media, and the other in the retail world. Both of them made me want to jump out with a big protest sign that says “Ethics are Important…Ethics are Profitable!”–but in both cases, I’d have rather too many targets to picket effectively.

So what’s the other story? Roy H. Williams, in his Monday Morning Memo (another favorite of mine despite its weak title–consistently provocative and visionary) talks about “the cashier con,” where offers turn out not to be as they were presented.

His examples include a computer clerk who offered a cheap software upgrade–without disclosing that it involved filing for a manufacturer’s rebate…and an oil change franchise that flat-out lied when Roy started the interaction by asking if they do state inspections.

I agree wholeheartedly with Roy that these are short-sighted and stupid, as well as unethical. He says…

In the short run, these cashier cons are likely to elevate profits. But can you think of a faster way to grind away brand image and erode brand loyalty? I traded with these companies because I believed in them. And now I don’t anymore. I let them keep my money. But I did not let them keep my heart.

I share these stories with you only to alert you to the dangers of shallow, short-sighted marketing. Quicky-tricky profits often come at a terrible long-term price.

Personally, on the inspection sticker con, I would have demanded an immediate refund and filed a complaint with the state Attorney General. The outfit wasted half an hour of his time, did not deliver what was promised, and could have caused him to get an expensive ticket for an outdated sticker.

If your business delivers what it promises, gain the marketing advantage by signing the Business Ethics Pledge.

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First of Two Disturbing Trends: Paid News Placement

Within 12 hours, I read two newsletters with deeply disturbing stories–one about the media, and the other in the retail world. Both of them made me want to jump out with a big protest sign that says “Ethics are Important…Ethics are Profitable!”–but in both cases, I’d have rather too many targets to picket effectively.

Joan Stewart, in her excellent weekly e-zine, The Publicity Hound, writes that more and more media are taking the old concept of paid product placement (to which I’m not particularly opposed on the entertainment side) and extending it…to news stories. Unfortunately, I can’t find it on her site or on her blog.

Whoa, pardner! If people have to pay in order to get covered in the news, it’s not news anymore. And it means that what is news may be bounced in favor of the advertorial stuff. Not good! And yet it’s happening, and not just in small markets. her article cites examples of TV stations in San Francisco and Los Angeles.

KRON-TV Channel 4 in San Francisco, for example, once a well-respected
news operation, now offers “product integration fees” to people who want
to be included in news stories. In February, the station broadcast an
11-part “Spa Spectacular,” in which each featured spa paid a fee and
bought advertising. Anchors offered viewers a chance to buy half-price spa
certificates at the end of each segment.

Of course, this ties in with the related bad idea of airing Video News Releases (VNRs) and pretending they are the original work of the station. And the other important story about consolidation of print media, dismissal of long-time and highly competent reporters, etc., all around the country.

Time to get the bean counters out of media management, I say! Yes, a true news department is expensive–but it can be subsidized by the highly profitable mindless fluff that’s cheap to produce–or perhaps by small cuts in the outrageous compensation of media execs and on-air personalities. We don’t need personalities; we need news. News–do I really have to verbalize this?…

  • Keeps the politicians and corporations honest
  • Creates an informed citizenry that can bring public pressure for change
  • Generates a historical record that will show future historians a contemporaneous account of earth-shaking events as they unfold

    It’s bad enough that the news has been so dumbed down that for the most part, it’s doing a very poor job. Switching to a paid model will be the nail in the coffin, and we’ll have to get all our news from bloggers. Don’t get me wrong–bloggers are great. But there’s also an important, even crucial, role for the professional journalist. (See the post I just made on the Pulitzers.)

    Let’s reverse this trend!

    PS: If you believe as I do that ethics are not only important but contribute to profitabillity, I invite you to sign the Business Ethics Pledge.

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    1. My friend and colleague Denise O’Berry, down in Floria, was born to blog. She’s a natural-born connector and networker. I stopped counting the times I got mentioned in some relatively obscure publication and got a clip of the article postally mailed to me with a personal note and Denise’s business card–and this was loooong before I met her in person two years ago. So it shouldn’t surprise me that Denise has put together a wonderful directory of business blogs. Now I just need her to set up an ethics category so I don’t have to try to shoehorn my own blog into one of the existing categories, none of which are quite right for this hybrid beast I’ve created.

    2. More and more bloggers are functioning as journalists–but unlike professional journos, we are self-directed, in most cases have no direct supervision (e.g., a boss), and aren’t necessarily schooled in getting the story behind the story, knowing what’s true and what’s rumor, and how to behave responsibly. (Of course many bloggers do have journalism training and experience, including me–but many do not, and there have been consequences).

    Cyberjournalist.net has jumped into the breach with a Blogger’s Code of Ethics. I quote it in full here:

    Be Honest and Fair
    Bloggers should be honest and fair in gathering, reporting and interpreting information.
    Bloggers should:
    • Never plagiarize.
    • Identify and link to sources whenever feasible. The public is entitled to as much information as possible on sources’ reliability.
    • Make certain that Weblog entries, quotations, headlines, photos and all other content do not misrepresent. They should not oversimplify or highlight incidents out of context.
    • Never distort the content of photos without disclosing what has been changed. Image enhancement is only acceptable for for technical clarity. Label montages and photo illustrations.
    • Never publish information they know is inaccurate — and if publishing questionable information, make it clear it’s in doubt.
    • Distinguish between advocacy, commentary and factual information. Even advocacy writing and commentary should not misrepresent fact or context.
    • Distinguish factual information and commentary from advertising and shun hybrids that blur the lines between the two.

    Minimize Harm
    Ethical bloggers treat sources and subjects as human beings deserving of respect.
    Bloggers should:
    • Show compassion for those who may be affected adversely by Weblog content. Use special sensitivity when dealing with children and inexperienced sources or subjects.
    • Be sensitive when seeking or using interviews or photographs of those affected by tragedy or grief.
    • Recognize that gathering and reporting information may cause harm or discomfort. Pursuit of information is not a license for arrogance.
    • Recognize that private people have a greater right to control information about themselves than do public officials and others who seek power, influence or attention. Only an overriding public need can justify intrusion into anyone’s privacy.
    • Show good taste. Avoid pandering to lurid curiosity.
    Be cautious about identifying juvenile suspects, victims of sex crimes and criminal suspects before the formal filing of charges.

    Be Accountable
    Bloggers should:
    • Admit mistakes and correct them promptly.
    • Explain each Weblog’s mission and invite dialogue with the public over its content and the bloggers’ conduct.
    • Disclose conflicts of interest, affiliations, activities and personal agendas.
    • Deny favored treatment to advertisers and special interests and resist their pressure to influence content. When exceptions are made, disclose them fully to readers.
    • Be wary of sources offering information for favors. When accepting such information, disclose the favors.
    • Expose unethical practices of other bloggers.
    • Abide by the same high standards to which they hold others.

    As the moving force behind the Business Ethics Pledge, I welcome this, of course. Maybe some of the ethical bloggers will find their way to the Pledge.

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    Unlike the GoDaddy valentine I wrote about last week, this one was not cheap. But it’s promoting a movie so they probably had a lot of the footage.

    A set of three trailers for “The Secret.” After seeing the intro and the first trailer, I signed up for their mailing list–I’m ready to see this movie! The second and third trailers were significantly less impressive.

    One particular thing that shows these people really understand marketing: once you’ve viewed any of the trailers, the finish screen gives you several viral tools I hadn’t even come across before: Furl, Blogmark, and Delicious. I think we’ll be seeing not only more really classy high-end videos like this (it even looked good on Windows Media Player, at both high and low bandwidth–while most WMP files look pretty jerky and crude on my system–they also offer Quciktime and Flash). Oddly enough, there were a lot more captions on the low-bandwidth version.

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    ​​​​I have a lot of respect for media coach/PR queen Susan Harrow,
    author of one of my favorite PR books (Sell Yourself Without Selling
    Your Soul) and the go-to person if you want your author on Oprah. I’ve
    subscribed to her newsletter for years and it’s one I actually do read.

    Susan’s launched a new project: celebrity makeovers by nomination (e.g., these are not really her clients). She starts with advice to Malcolm Gladwell.
    I’ve read Blink and a chunk of The Tipping Point but have not heard him
    speak. I think I have heard him on radio but it didn’t leave much
    impression.

    Susan goes after him to improve his speaking
    delivery in a big way, and all the points she makes sound valid.
    Speaking is a vital communication tool for authors. But she also tells
    him to shave his hair. Looking at his picture on her blog, I think it’s
    kind of cute. I’d vote for a little trim maybe, but not a radical new
    look.

    But I sure do hope we haven’t reached the point on the
    glitz-scale where someone with as important a message as Gladwell is
    judged on his or her hairstyle!

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    3. New Business Ideas are Everywhere
    It
    seems there’s no shortage of unfilled needs that could become the core
    of wildly successful businesses. Here are a few I noticed:

    Ralph Stevens turns 100 (See #4, below).
    (Photo by Alana Horowitz Friedman)

    A. Mail-back kiosks and/or check-this-as-luggage containers at airport security checkpoints:
    My 13-year-old son brought his oboe on the trip, including a set of
    four tiny screwdrivers, like the sort for tightening eyeglass frames.
    TSA confiscated three of the screwdrivers. (I offered to let each of
    the four of us take one screwdriver, but this was not acceptable.)
    Apparently there was some rather inconvenient way we could have mailed
    it to ourselves for $10, but it would cost less to replace them. We
    could have also sent the whole bag through checked baggage, but the
    risk of damaging or losing the instrument far outweighed the
    convenience of keeping the screwdrivers.

    There must be thousands
    of items per day that are confiscated, causing great inconvenience to
    the owners of the objects, and also a substantial disposal problem for
    TSA. Someone should come along and contract with the postal service and
    TSA to set up a self-service mail kiosk at each security checkpoint,
    with a selection of small padded envelopes and the ability to type an
    address label and take credit cards. Charge actual postage plus maybe a
    $3.00 or $4.00 service charge, of which two-thirds would be profit.
    Someone would need to refill the envelopes and be available for
    maintenance problems, but the post office would collect the packages
    for free.

    Another possibility: rent small suitcases big enough
    to go through baggage without being lost or crushed, with drop-off at
    any airport in the U.S.

    B. Travel planning website for fixed dates, open destination:

    We’ve been trying to plan a trip for our next vacation, over Christmas
    week. But we have to try one destination at a time. The truth is, we’re
    not so fussy about where we go. I’d like to be able to select a date
    range of two or three days on each end and see destinations ranked by
    fare within broad categories of U.S., Europe, Asia, Africa, Pacific.
    Then we could quickly narrow it down and click for more
    information/booking. I checked with two prominent travel experts;
    neither knew of such a site.

    C. Urban compost centers:
    In my brother-in-law’s food-co-oping, Prius-driving, recycling
    Minneapolis neighborhood, a lot of food scraps end up in the municipal
    garbage system. If someone could figure out a way to create a business
    model around composting, while still keeping the disposal a free
    community service, it wouldn’t be hard to generate a significant
    quantity of waste. I live on farm and my neighbors sell composted cow
    manure for $5 a bag, but my guess is they sell only a few bags per
    week. Still, there surely must be people who would pay for high quality
    compost; it’s just a matter of figuring out who has the need, wants to
    pay, and can generate enough orders to be worthwhile. Garden centers,
    perhaps? They’re already selling fertilizer. Or maybe the garden
    centers should operate the compost operation.

    4. Aging Populations Have Different Needs
    My
    sister-in-law’s grandfather, Ralph Stevens, turned 100 while we were
    out there, and we went to the party along with about 40 of his
    relatives. I’d never been to a 100th birthday party before, although I
    did go to my neighbors’ 70th wedding anniversary.

    When I was a
    kid in the 1960s and 70s, many people born around the beginning of the
    20th century were dying off; if you lived past 70, you were considered
    old. Yet 76,000 Americans have reached that amazing 100-year milestone–and
    these are the same generation that appeared to be dying off thirty and
    forty years ago. What marketing opportunities are presented by people
    living to be 100? By having four or five generations of the same family
    alive at once? What does Ralph Stevens, a wheelchair-using blind
    centenarian who loves to sing and lives in close proximity to a large
    family, want and need in his life? How would you market to him in his
    nursing home or through his family?

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    Just back from several days in Minneapolis, and I had my trend-spotting radar up. Some observations:

    1. The airline industry continues to shift.

    We flew ATA and Southwest, and it was illuminating to contrast them. Southwest still very much encourages the nonconformists and humorists among its staff, and continues to do very well with on-time performance, full or nearly-full planes, and other metrics. And they continue to make things nicer for their customers. For instance, online check-in is a big improvement over the cattle-herd system of the old days, and printing your boarding group right on the boarding card is much better than the old plastic passes. Maybe it was my imagination, but it seemed to me there’s a bit more leg room than there used to be. And on today’s flight home, they even gave us each a square of chocolate!

    Lessons for other companies: give your people room to shine and they will. Fill a market niche, and you’ll be profitable. Be nice to your customers, and they will return. Do all three things right and you’re a rare success in a troubled industry.

    ATA, by comparison, was not a pleasant experience. The seats are jammed together to the point where, even at only 5’7″, I was extremely grateful to have an aisle seat so I had someplace to put my feet. (My wife flew Northwest recently, and said the legroom is even worse there.) On the way there, we discovered that the airline had never entered a change in our itinerary and had us flying the previous day. Luckily, we had a paper trail and there were still enough seats. Yet, even though I watched the ticket agent enter the correct information for our return trip, it seemed the check-in agent on the flight home had some difficulty getting the reservation to show up appropriately. And other little things–no sparkling mineral water or seltzer, only club soda (which has salt, on top of all the salt in the pretzels). And big things: ATA had over two hours to get our luggage to Southwest during our Chicago transfer; not one of our four bags made it on the plane, and neither did the bag of another passenger with the same itinerary. None of this was life-threatening, and most of it is a pretty small inconvenience–but it added up to somewhat negative experience that is likely to influence future purchase decisions. Oh yes, and the reason we were on Southwest in the first place is that ATA suddenly pulled out of our market long after we’d booked our flight. (Southwest doesn’t fly to Minneapolis.)

    Lesson: No matter how good your advertising, your brand is built on positive and negative customer experiences.

    (Disclosure: I was a fan of Southwest long before this happened, but I should point out that the company bought 1000 copies of Principled Profit: Marketing That Puts People First, prepublication. If that colors your view of my comments, so be it.)

    2. A Discounter Goes Upscale

    Southwest again. The airline’s Unique Selling Proposition has always been the combination of low prices, reliability, and superior service. Perhaps it’s the service aspect that’s helping Southwest Spirit, the inflight mag, to go after a very upscale advertiser profile. The pages are filled with ads for expensive high-rise housing, Las Vegas casinos, glitzy restaurants, expensive gizmos…and there are a lot of ads!

    This could mean several things:

    • High-end consumers are putting greater value on low prices
    • Southwest’s superior experience means non-price-conscious consumers are seeking them out because they want to get there on time and be entertained
    • The airline may be experimenting with moving away from that USP, and higher prices may be on the way (though I suspect they wouldn’t be quick to throw away 30 years of loyalty built in large measure by affordability)

    I’ll try to do Part II tomorrow

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    Tsunami Publishing’s Bob Bellin is a small publisher who thinks big. “We take abandoned brands, former bestsellers that we can bring back to bestsellers through aggressive and offbeat marketing and promotion.”

    New York Times bestseller Steve Alten feels Bellin is treating him “a lot better than my last two publishers.” Bellin sent out 1500 galleys of his first title, Alten’s The Loch; he spent $100,000 on PR, satellite TV and radio tours, bought ad time and a banner on a coast-to-coast radio show, and is testing a radio ad campaign involving a bookstore coop.

    “Our goal is to sell books. Ideally, a book that’s likely to be made into a movie; it will sell more books.” And apparently, it’s working, so far. “We popped in the first week at number 9 on Ingram’s bestseller list. We’ve already sold more than his last publisher. We printed five figures and we’re about to go to print again,” one month after the May 1 publication date. Bellin bought the rights to another abandoned Alten book, Meg, from Bantam. New Line Cinema is making the movie.

    The trend of smaller publishers picking up larger authors was evident elsewhere at the show. Two among several examples: Small publisher Quill Driver Press has picked up Dr. Ruth, and Chelsea Green, publisher of the mega-hit Don’t Think of an Elephant (see related story), is in negotiation with some successful authors (but declined to name names).

    On the other side of the fence, large publishers continue to pick up titles that have proven themselves in an independently published, self-published, or even subsidy-published run. John Wiley, for instance has picked up Internet marketing gurus Joe Vitale and Mark Joyner (in separate books, although the two have often collaborated).

    Several categories seem to be drying up. You’d expect some reduction in political books now that last year’s hotly contested election is in the past, but their near-total absence from the major houses and obscurity even among the smaller houses was surprising.

    Also, unless I simply missed the whole section somehow, there were amazingly few glitzy new cookbooks. The cookbooks I saw were mostly of the down-home variety, rather than the big coffee-table volumes that have dominated for several years. Combined with the greatly reduced presence of large four-color art titles, the shortage made me wonder if there’s been a huge increase in the cost of printing and/or shipping in Asia–though I wouldn’t expect the impact of the weak dollar and high fuel prices to show up until next year, given the publishing industry’s long lead times.

    I noted last year how bland the largest houses have become, and this year that was even more true. Cookie-cutter, formulaic books dominated the largest booths–but independent publishers continue to focus on titles that one can take pride in.

    One category where the largest houses do seem to still have some verve: history. Lots of solid-looking titles on wars, presidents, and fashions over the decades and centuries.

    And perhaps 2005 is the Year of the Ordinary Mortal. From both small and large publishers, I saw a number of books celebrating the achievements of average Joes and Janes. One of my favorites in the category was Damn! I Wish I’d Written That!: chronicling the publishing successes of ordinary folks who didn’t necessarily even have big credentials. (However, it was rather odd to see Spencer Johnson’s Who Moved My Cheese on the cover along with several more appropriate books. Johnson, after all, was already the best-selling co-author of The One-Minute Manager.)

    Faith and religion were much evident this year, and not just in the religion aisles. WJK Books, whose The Gospel According to the Simpsons I picked up a couple of years ago, has now expanded to a whole line of Gospel According to titles: Harry Potter, Tolkein, and even (forthcoming) Oprah, among others. Wonder if the Potter book will shift the discourse among those elements of the Christian Right that have attacked and tried to censor the series.

    And speaking of Hogwarts’s celebrated wizard, spin-off were everywhere: not just books trying to position themselves as the Next HP, but also literary criticism and scholarship on Potter and other fantasy series–looking, for instance at the mythology that influenced JK Rowling (this is a trend at least a few years old–my 2001 show report mentions The Magical Worlds of Harry Potter: A Treasury of Myths, Legends, and Fascinating Facts, but more titles are appearing, including Fact, Fiction, and Folklore in Harry Potter’s World from midsize publisher Hampton Roads.

    As I look over my notes, I do notice that a lot of what I’ve found worth mentioning is from midsize publishers who put out, say, 10 to 50 titles per year. As the big boys swallow each other up and increasingly concentrate on celebrity tell-alls and blockbuster novels from famous authors, perhaps it is these publishers who will become the Keepers of the Culture: the ones who can release books that actually advance our thinking as a society, who take a chance on a first-timer’s literary gem–and who have enough marketing muscle to actually move the books out of the warehouse, into the bookstore, and out to the consumer (unlike the vast majority of self-publishers, tiny independents with fewer than five titles a year, or authors publishing with subsidy presses).

    Maybe it’s time to start reading publisher labels as we select our bookstore purchases. While an imprint like Chelsea Green, Berrett-Koehler, or New Society Publishers–and there are a couple of dozen others–doesn’t guarantee a great book, in my experience, it definitely increases the odds.

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    An interesting week in the news, for sure.

    This from Jack O’Dwyer’s PR-industry newsletter, which I hadn’t seen before but picked up at a PRSA event in New York. (I’m actually writing this from New York, in fact–where Book Expo America starts tomorrow.) O’Dwyer reports that the White House press corps, tired of their role as “props,” boycotted a May 23 press conference with President Bush and Afghani President Hamid Karzai–because the events are so tightly controlled that they’re only allowed two questions. I imagine they mean two questions total, rather than two apiece.

    So as usual, the Bush administration appears to be afraid of an open and free press, and for once the 5th Estate is showing a little muscle. More power to them! The charade that has passed for Washington journalism the last few years is badly in need of a shakeup.

    This is a particularly nice nugget considering that after 33 years, we’ve learned the identity of Deep Throat–the most vivid case study for the idea that undisclosed sources have a place in legitimate mainstream journalism, and that journalism has a responsibility to investigate the powers-that-be. To my knowledge, no one has ever challenged the authenticity of Mark Felt’s reports back then, and for 33 years, his identity was unknown. He helped to bring down a crooked government, and it wouldn’t have happened if journalists Woodward and Bernstein had been forced to disclose their sources.

    Newsweek, are you listening? (See my two previous blog entries, May 18 and 25)

    The same newsletter also bore an item about the PR industry, trust, and the bill that was passed forcing media to identify government video news releases (VNRs, a/k/a/ propaganda) when they use them: A little spat between the president of PRSA and a former PRSA/NY board member, in which the latter said that the former’s contention that PR has a high level of trust (and didn’t need regulation of VNRs) was ridiculous.

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    I was off on a road trip last week, and one of my stops was the Rock & Roll Hall of Fame, in downtown Cleveland.

    I’m used to marketing products, services, and ideas. The Hall of Fame markets an entire culture. Can I learn a few things from them and apply it to marketing the books, widgets, services, and opportunities that make up my livelihood? You bet!

    A few for starters:

    * If you want to market a culture, define it broadly. Rock, as the Hall of Fame sees it, goes back to the 1940s and continues through the day after tomorrow. So anyone under about 80 will feel that the museum has something for them.

    * Honor the contributions of others. One of the things that really makes the museum stand out is its emphasis on the trailblazers of folk, jazz, blues, R&B, gospel, and world music. Without them, rock would never have come to be. By honoring these pioneers, the museum has made itself accessible to several older generations, and let casual fans trace the music through its roots, so they gain a greater understanding of what makes this a music to take seriously.

    * Employ all the senses. Sound, vision, and touch are all part of the experience. I imagine they’ll figure out ways of incorporating taste and smell at some point.

    * Make it fun! And make it unique. You’d expect to see Eric Clapton’s guitar, Jimi Hendrix’s wardrobe. But how about John Lennon’s grammar school report card? (His teachers saw him as creative, but undisciplined.) Or a video clip of Bruce Springsteen saying most rock stars wee misfits in school.

    I’ll stop there. It was not only a wonderful good time, but it was professionally useful, too.

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