What Rogers' $10-million fine teaches us about advertising

The competition bureau has ruled that Rogers Communications has misled consumers with advertising that claims their new Chatr service is more reliable than its competition's services. It was found that despite Rogers' claims in their advertising, there was no discernible difference in dropped calls between their service and the ones offered by new entrants. This was deemed to be misleading and unduly damaging to the competition, and could end up in a fine of $10-million or more (if the judge agrees to retribution for consumers).

Now, Rogers is certainly being held up as an example, and it's easier to pick on the big boys, but it does bring to light some important lessons that small businesses and marketers should remember as you advertise:

1. Don't make a claim you can't support. Simply saying that your product is "the best" without backing it up is lazy and, it would seem, potentially costly for you!
2. If your competition is making claims that you know they can't support, you have an avenue for challenging their claims.
3. If you do have data to support your claim, make sure it's good data. Rogers is fighting this ruling, but I wonder how valid their data is. Don't just go ask 3 of your friends if your pizza is the best pizza they've ever tasted then call it the "Best tasting pizza in _____" (makes you wonder how many dentists were actually surveyed to support the claim "4 out of 5 dentists recommend ____" - perhaps 5?).
4. Be specific with claims. Don't say you have the best pizza, say you have the best Hawaiian pizza East of Hawaii. Helps your product stick out in the consumers' minds.
5. If I read/see/hear one more company claim to have "the best quality, price and service", I'm going to... You can't be all 3!
   

How to steal customers from your competition (or in this case, how NOT to)

If a competitor of yours screwed up and that customer came to you looking for help in fixing the mistake, what would you do?

Today I was getting a haircut and I overheard (not that it was hard - they were NOT being discreet... that's a whole other issue) the staff talking about a person that had their hair dyed at a competitor, but it turned out green by mistake. I gather that the competitor couldn't fix the problem, so the customer - let's call him/her Kermit - called the barber shop I was in looking for help.

Each staff member was quite adamant that they did NOT want to try to fix Kermit's problem, citing the potential damage to their reputation if they were unable to fix the problem.

Come again?!?!?

Let me see if I got this straight: A potential customer has come to your door, asking to give you money and be the hero that your competition couldn't be... and you turn them away?

They were worried that their reputation would be tarnished if it didn't go well, and that it would be a waste of product.

HUH?!?

Tell the customer you will do your best, but there are no guarantees in a case like this, then give it a shot! If it doesn't work, it's not your reputation that's tarnished. It's still the competitor's problem (which they couldn't fix either). Sure, you used some product and some time, but Kermit PAID FOR THAT! You're no worse off then before you started. And in fact, TURNING THEM AWAY IS THE BEST WAY TO RUIN YOUR REPUTATION! That would be admitting to this potential customer that you are just as inept as the first shop.

Imagine if it works and you fix the problem! You can't buy that kind of press!

Now think of what Kermit is saying to his/her friends right now: 1) Barber shop A screwed up. 2) Barber shop B wouldn't help me. Do you think that's doing you any favours? Nope. Now think of what Kermit would say if you were the hero!

In an economy that's so tight, you have to fight for every last customer.

TAKEAWAY FOR YOU AND YOUR BUSINESS:

1. Do a better job than your competition.
2. When a potential customer comes to you asking to give you money, say 'yes'. Even if you don't want to. The downside of turning them away is FAR greater.
3. Empower your employees to think up reasons to take on more business, not shoo it away.

Your turn: You know where I stand on the issue. How about you? Do you think the risk is greater than I do?

Kevin Smith blasts SWA - a lesson in Twitter and PR damage control

As I'm sure you know from glancing at the tabloids in the supermarket checkout, Kevin Smith was refused a seat on the plane because they said he needed to buy two seats.

On May 17 he agreed to call in to 102.1 in Toronto, and had plenty to say about the incident. Here's the podcast.

He feels he was treated unfairly and used Twitter to host a serious rant. They (SouthWest Airlines) attempted PR damage control with social media as well, but were essentially sticking by their policies.

What do you think? Should companies be bullied by... or "accommodate" tweeters and bloggers or should they hold their ground in the face of serious PR damage via social media?

TAKEAWAY FOR YOU:

1. Track mentions of your business in the internet - it's easy! (start with Google Alerts)
   
2. Have a policy for responding to negative press, particularly when it comes via social networking
3. A little latitude in your policies, please!
4. Always take a step back and consider whether or not you're being reasonable! What would a normal person expect to hear from you / expect you to do?

Irresponsible advertising - Ford's turn

In recent posts I've called out BMW for irresponsible advertising (talk about one car, show a picture of another, and pass them off as the same car) and Ford for competing with itself.

Well, time to talk about Ford's irresponsible advertising.

In this ad, their headline is: "Ford sweeps North American Car and Truck of the Year Awards"

So, how would you interpret that? To use the word "sweeps" implies that several awards were won, across several categories, and from several reviewers.

But no.

They had one car that won one award in one category, and one truck that won one award in another category. That's HARDLY "sweeping" the awards, as the headline claims. Plus, you can't tell who awarded these titles.

They're clearly trying to create an impression that they win all kinds of awards for their cars by stretching the truth and using carefully selected words to deceive the audience.

Sadly, it's probably working (because the ad itself is so boring that it's unlikely that anyone, other than me, will read the copy).

Doesn't mean it's not irresponsible.


TAKEAWAY FOR YOU:

• Don't try to be something you're not. Let your product/service do the talking.
• Maintain your integrity.
• Maintain your ability to look yourself in the mirror.

Your brand reputation will thank you.

Everything you do either damages or enhances your brand

I speak about that often - that everything you do (from answering the phones to advertising on TV) will either damage or enhance the brand reputation you have established.

What does this guy's picture say about his brand reputation?

So, what do you think? What words pop to mind when you see this picture?

Your brand is exactly that: the words that pop into the consumers' mind when they make a connection with you.

Make sure you're actively managing those connections. Each and every one.

Auto industry ads continue to drive me crazy

The auto industry is notorious for stretching the boundaries of acceptable advertising practices.

From price wars among dealers from the same auto maker (see post) to price promises that aren't really promises (see post) to mice type that no one can possibly read (don't get me started!), this is a new low.

BMW (who otherwise does everything right if you ask me) is running a campaign to promote their 2010 323i. This ad CLEARLY promotes the 323i, and the 323i only. You can tell this by the headlines and copy, and they even go so far as to break down the lease rates for the 323i specifically.

But the image, which is predominant, is of the 335i. If you look closely (click image below to enlarge), there is a line of mice type (don't get me going!) that admits they are showing a picture of the 335i!! How can they be allowed to do that?! The 335i looks better, performs better, costs more, and has clearly different lease rates.

Now, the 323i is from the same family as the 335i, but that doesn't excuse this manipulative advertising practice.

They need to advertise more responsibly.

People that aren't car fanatics like me or that don't pay as much attention to advertising as I do would understandably go to the dealership looking for a car that looks like the 335i for the price of the 323i. Such a car does not exist. "Sorry consumer. But since you're here, why don't I put you into this more expensive car?" Oh, sorry, it's more like "What do I need to do to get you into this more expensive car?"

I know they're legally allowed to do this, but they shouldn't.

They're not the only perpetrators, but I just happen to be picking on them because they are advertising fairly heavily.

Clarity in advertising

Doesn't this ad just say it all?
















I know it's not that different from the other training ads, but most of them say "get the body you want...". This one comes right out and says it: "get THIS body".

It also appeals to a very specific audience. If you've seen 300, you'll get it right away. If not, well, you won't be tempted to click on the ad (and the advertiser won't pay a dime).

Clarity and simplicity are good. Especially in crowded advertising spaces like FaceBook.


Your turn: Any examples of "clarity" ads?

Take that big box part 2 - bike shop alive and kicking.

Small, local business success story #2.

Totally Spoke'd here in Stratford.


Bicycle shop - pure and simple. Quality, selection and all that, but above all, a crystal clear position the market. I took my daughter's birthday present in today (bought it from Direct Buy - more on them in a later post) to be tuned up before she started riding it. The guy I talked to summed up their story succinctly and effectively: "95% of the bikes we fix here are from big box and department stores."

That says so much, don't you think?

They are the Un-Canadian Tire. The Un-Sears. With those simple words they solidified their position as the place to go if you want a GOOD bike.

You can say a lot by saying what you're NOT.

So, let's take a snapshot of their success:
- Good retail location... check.
- Good product... check.
- Clearly defined offering... check.
- Clear positioning in the market... check.
- Unique/differentiated... check.
- Appropriate marketing tactics... check (good sponsorships in town).
- Pricing to support positioning... check (they aren't the cheapest).
- Uber-consistency in message...check.

Oh, and by the way, I took the bike in today (Monday). They told me I could pick it up on Wednesday. They called THIS AFTERNOON and said I could come pick it up. Imagine that, they over-deliver as well!

I think what this example shows, as does the other one, is that you have to be so thoughtful, relentless, clear and consistent to really be strong.

How is your company's "checklist"? Can you stand up against these guys?

Don't sell me a product, sell me a benefit!

You would think that goes without saying, but I see so many case of companies that use marketing programs to sell a product, without telling me why I should buy said product!

(SURPRISE QUIZ: Does your web site home page talk about how long the company has been in business, where it's located, and what it does? I don't care! Tell me why you matter to me!)

Case in point: I was at Shell getting gas and a car wash yesterday. I went in to pay and the cashier asked if I wanted to upgrade the basic wash to a deluxe wash. Somewhat impressed by the attempt at an up-sell, I played along...


Cashier: "Would you like the tri-colour deluxe wash for an extra $2?"

Me: "No thank you."

Cashier: "It's a small price to pay for a better wash." (getting there...)

Me: "Why is it better?"

Cashier: "It's a 'tri-colour' wash."

Me: "What does the 'tri-colour' do?"

Cashier: "I'm not sure. But it's three colours."


SO CLOSE!!

I passed on the upgrade.

With the signage on the counter and the (failed) attempt by the cashier, it was obviously a deliberate marketing campaign that the store and/or company was running. But the most important factor was missing - the reason for buying!

Sell the benefits! Sell the benefits! Sell the benefits!

SuperBowl ad winner...

What's a marketing blog without a post about the SuperBowl ads!?

My winner is Coca-Cola's "Avatar" spot.

I like the creativity and the production quality, but the real reason I like it is the effect it had on the Coca-Cola brand. Most of the ads were just funny, which is OK, but all they did was build awareness by trying to be the funniest (he with the funniest ad wins the awareness battle). But Coke built awareness (not only with creativity, but also by buying 60 seconds!) AND BRAND image.

They sent out a clear message that says: "the most meaningful peer-to-peer connections happen face-to-face." (I got that from their YouTube page - sums it up perfectly). A powerful message that strengthens their brand positioning as a beverage that is connected with all that is joyous and peaceful in this world (we all remember the "I'd like to buy the world a Coke" ad, right?).

Well done Coke.

Comments? Your favourites from 2009?

See? Market analysis pays off! Atta boy Hyundai!

An "atta boy" goes out to Hyundai today.

They have launched an "Assurance" program, which basically says that if you buy a Hyundai and then lose your job (within a year), you can give it back.

Imagine that!

So here's a company that truly took market analysis to heart. I can see it now - marketing people, agency people and executives sitting around a table begrudgingly reviewing the latest market trend analysis, and coming to the harsh realization that sales are down because people are worried about losing their jobs and being stuck with the car payment. But, instead of blaming company performance on market factors that seem beyond their control, they decided to negate the impact of that factor altogether!

Don't know if it will work, but a brilliant idea, I must say.

Great golf, lousy marketing

Today I noticed, as I was traveling along the 401, a huge flag at Puslinch Lake Golf Course that read "GREAT GOLF"... and that's it. Now, I knew it was Puslinch Lake because I happened to play there two days ago. But they have raised that flag to advertise their course to all passers by. Great idea because it's a huge audience (more than 500,000 cars per day) and because a good potion of them will be potential golfers.

But what if someone was actually interested in golfing there based on the flag? Only a small handful of the potential audience would know which course that was! No phone number on the flag. No web address. Not even the name of the course! They're saying 'come golf here, but you have to guess where here is'.

What a waste.

We work so hard in marketing to convince people to try our products. You CAN'T make it hard for them to figure out how to get it! In fact, you have the burden of making it EASY.

Have your say: In an earlier post, I gave an example of how easy VISA made it for online shoppers to apply for a card. What are some other examples of companies making it easy to try a product?

The Power of Packaging

For my birthday recently I received a golf practice kit, which included a net and a piece of artificial turf complete with a rubber tee. Well, the mat made of artificial turf came rolled up in a box which meant that when I took it out to start using it, it wouldn’t lie completely flat. It was harder to get the ball to stay on the tee, and I wasn’t getting the best practice because the ball was a couple of inches higher than it would have been on the course.

And believe me, I need the practice!

This mat is no more than 12” by 18”. How hard would it be to create a thin box in which this mat could lie flat? A box like that would also give them all kinds of space for messaging and logo placement. It may have even given them more prominence on the shelf. Or perhaps they could use a clear plastic package, which would help promote the product even more. Neither of these options would be considerably more expensive, so why not make the effort?

Instead, I’m a dissatisfied customer.

Think about how your product packaging affects the customer's impression of the product, both before and after it is purchased.


Have your say: what are some good examples of product packaging?