Showing posts with label Washington Mutual. Show all posts
Showing posts with label Washington Mutual. Show all posts

Friday, September 18, 2009

The Use of Images in Market Research

Over at LinkedIn.com I've been tracking an interesting discussion on the use of images in market research among members (myself included) of the Next Generation Market Research Group started by Ricardo Lopez, President of Hispanic Research, Inc. We've confronted the use of images in research since 1953 finding that whenever you use images you tend to cement images and emotions in place rather than promote discussion beyond those bounds and any advertising agency would agree; and so we switched to "written" creative and stimulative materials finding that they better enabled the respondent's mind to wonder/wander, the way reading a good book forces you to use your imagination and imagine a scene based on individual perceptions and frames of reference to discuss rather than have it presented as a done deal long ago. And with better business building results.

But what is the risk of using images to present ideas? Both Washington Mutual Bank (once the biggest bank west of the Rockies) and Kahn's/Hillshire Farms presented images to respondents to get a bead on how to present their brands to consumers. Both WAMU and Kahn's/Hillshire Farms showed people pictures of farmers dressed in blue jeans and flannel shirts, and scientists dressed in stached shirts and lab coats. There were a range of other images. Obviously, being based in Seattle with lots of rain, forest and hippies, WAMU was perceived to be the "friendly" bank while arch rivals Bank of America and Wells Fargo were perceived to be "those evil starched shirt corporate guys not to be trusted." Similarly, Kahn's/Hillshire Farms products were percieved to be made by honest "farmers" while Swift-Eckrich products were percieved "made and processed" by corporate food scientists in stainless steel by men wearing starched white lab coats." So which image is more appealing? And is this really insight? I think not.

Using this data, though accurate, did not move either business ahead. For friendly WAMU and Kahn's/Hillshire Farms; neither grew their customer base, sustain growth nor were they any more effective at retaining customers. That usually happens when you show people what they want to see. The wisdom of crowds it is not. WAMU got bought out by evil Chase due to its inability to weather a financial crisis and Kahns/Hillshire Farm was sold to the evil white coat guys - erasing all the research time, money and advertising spent on work that went down the drain. What a waste of career time.

Anyway, why does the practice of using images in research persist? And why do academics promote such? Because pictures in research promote what people in the medical community (doctors) call "SEARCH SATISFACTION." A condition where the care or answer givers simply stop looking for better answers when they find one that "works." So should images really be a part of Next Generation Market Research? Well?

Monday, September 14, 2009

Tired of High Fructose Banking

Pre or post financial crisis meltdown have you gotten tired of high fructose retail banking? You know the type of banking I mean. The one where all the ads say we're the bank for you and all the fees say the bank giveth and the bank taketh away. Well, why do I bring this up? Because the best answers in marketing, branding, advertising and generating the social influence that changes consumer habits and practices and changes consumer behavior and attitudes on a large scale are always "abstract." These solutions "are so obvious they're not obvious."

In 1971 The Coca-Cola Company commissioned me to "identify future consumption drivers in soft drinks" because no one knew what people really wanted next. By removing high fructose corn syrup from soft drinks we created a new category of beverages called New Age Soft Drinks technically defined as soft drinks with no corn syrup consumers perceived more healthful and thirst quenching aka today's Vitamin Water.

So, "abstractly," what would you have if you removed all the corn syrup from banking? Would Wells Fargo really be able to "take you to the next stage" (terrible "branding" and proof that branding is something you do when you don't really have anything important to say).

Washington Mutual was advised by me to pursue a "Give a man a fish and he can feed himself for a day, but teach a man to fish and he can feed himself, and others, for a lifetime" strategy to 1) address opportunities presenting themselves via pre-crisis banking industry deregulation, and 2) to attact depositors with higher disposable incomes to fuel growth. Because their free checking for life strategy only appealed to bottom feeders who didn't have disposable income to fuel the banks growth Washington Mutual fell to America's financial crisis - finally swallowed by Moby Chase. Score: Straight-forward, linear-thinking, problem solvers 1 / Forward-thinking, outward looking executives 0.

One hopes the current and post crisis banking industry will not pursue the airline industry's nickle and dime approach to serving customers. It's so PC - and that does not stand for  "politically correct." It stands for those great Apple ads where Apple lets Microsoft skewer itself with its own PC. One hopes retail banks will eliminate the corn syrup. Of course, if the banks regard their business as does The Coca-Cola Company, they really won't give a rats ass about you and me because the bulk of their business, like Coke's is in the commercial business, or high fructose corn syrup segment. Maybe that's why Coke's got a guy whose only claim to fame is launching his own $ 7 million frozen novelty line before he took over running Coke's global innovation business. How's this JV entrepreneur supposed to impact consumer behavior in a business where one share point is worth over half a billion dollars? Well, he doesn't - which is why the carbonated business has been in decline for 4 years and Coke outsources all of its innovation to the JV start up businesses they acquire. It's like setting up an inexperienced Tom Cruise to take on high powered Jack Nicholson in the movie "A Few Good Men." We're not supposed to win. But we can still rant like pawns.

A fructose free retail banking system would find me among their depositors in a heartbeat. I wouldn't look at their brick and mortar tellers like car salespeople. Why? Because their product, though a commodity, would remain unchanged, their "message" would exert greater social-cultural pull over my decision making processes. Of what benefit is this? The strategy, in computer programmer terms, would negate the "kill bits" that depress my response to their advertising, marketing and branding.

Tuesday, May 06, 2008

Reality Vesus Actuality: A Construction of The Truth

Reality has swept America. Reality TV that is. Is it real? So quickly the lines blur in one night's viewing. I no more need watch The Apprentice to know that I can make better decisions. But I do not get a better job, or a raise. And gas still costs $4 a gallon. An expense to my quality of life that is needless. That's Actuality. Disney was the first painter of reality. He is the grandfather of reality. He did not paint actuality. No one would watch - no one would come. Disneyland is a study in an idealized America that never existed. But now we watch shows and immerse ourselves in a reality that is not actuality. I do not want to escape. I do not want a shot at love with Tia Tequila.

So those of us who are not so numbed by the barage of reality - wonder about actuality. Are you marketing to actuality? Because that's where the people with disposable incomes are in a crappy economy. They're dealing with Actuality. They're not frittering away their dreams on reality.

Washington Mutual is marketing to reality. They've borrowed billions to remain solvent, and to mask the actuality, tell us they are the bank that makes you say, "Whoo Hoo!" The Germans call that "dreck." Please don't deposit your marketing waste in my Actuality bin. WaMu is using "reality" strategy to mask the fact that it is really the bank that lacks actuality management, and could very well make depositors cry Boo Hoo - if they had a run on the bank and had to lock the doors. Yes actuality fans, disaster at WaMu is really that close.

But as long as we can immerse ouselves in reality, know one will take accountability. And as soon as the credit crunch is averted - because that's what reality helps us do - we'll have dodged actuality again and life will go on taking Visa.

What happened to gold standards.

So in what camp are you placing the future growth of your company, your strategic innovation? Reality or Actuality?

Friday, May 02, 2008

Advertising Campaigns with Zero Thought Profiles

So absurd. Why do companies take their names, shorten them, then use rhymes as advertising campaigns? Washington Mutual. WaMu. Whoo Hooo. Adult minds actually concieve and sign off on this crap. What is it's intent other than to misdirect depositors to think that everything's OK at the bank in spite of having to borrow $10 billion to keep its doors open these past few weeks. Sure they don't want a run on the bank - BUT - There isn't any problem at a company that can't be fixed by a good product, and standards. And I'm not talking about free checking from those friendly, flannel shirt clad bankers in Seattle. It just doesn't sell. Why redirect consumers fears? Why not do something that brings in sound money during a crappy economy? That works. That's marketing. But they told me it hurts their heads to think that hard. That's not smart.

Mitsubishi. Mitsu. Trying not to be Japanese. What's next, Mhoo Shoo?