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A Better Way to Map Brand Strategy – HBR

https://hbr.org/2015/06/a-better-way-to-map-brand-strategy

Twitter removes 140 character limit for DMs: what does this means for brands? | Econsultancy

https://econsultancy.com/blog/66580-twitter-removes-140-character-limit-for-dms-what-does-this-means-for-brands/#comments

From McKinsey: Ten ways autonomous driving could redefine the automotive world

Ten ways autonomous driving could redefine the automotive world – http://www.mckinsey.com/insights/automotive_and_assembly/ten_ways_autonomous_driving_could_redefine_the_automotive_world

The development of self-driving, or autonomous, vehicles is accelerating. Here’s how they could affect consumers and companies.

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Philips turns LEDs into an indoor GPS for supermarkets

Philips believes that the days of endlessly roaming around a store looking for the right kind of balsamic vinegar may soon be at an end. The company’s lighting division has developed an indoor navigation system that enables your smartphone to direct you straight towards the Oils & Vinegars (Specialist) section. In addition, the technology helps to light everything up nice and bright, and save a bucketload of cash in the process.

Rather than using Bluetooth beacons, which others believe will being reliable indoor navigation for retail outlets, the company has swapped out the traditional lighting for banks of white LEDs above each aisle. Each bulb is equipped with visible light communication (VLC), enabling it to beam out a code that’s imperceptible to the human eye. When a user opens the corresponding smartphone app and holds it horizontally, the forward-facing camera reads the VLC. Once the software knows where you’re located, it’ll follow this overhead breadcrumb trail to get you where you need to go.


As you can see in the clip, the first supermarket to sign up to the project is France’s Carrefour, which is trialling the technology at its colossal hypermarket in Lille. In addition to providing hyperlocal indoor navigation, the company is also reporting that the tech has slashed its energy bills by 50 percent. Oh, and if you have any concerns that your movements are being tracked, the pair have already promised that the VLC system is entirely passive — so locals only have to worry about the national security forces.

The CMO Is Evolving Into New Species With Vastly Broader Range

The CMO Is Evolving Into New Species With Vastly Broader Range

Big Data and Digital Demand Expertise in Both New and Traditional Areas of Marketing

By , . Published on January 15, 2014. 4

Seeking insight into how marketing is changing, we had conversations with dozens of CMOs and other C-suite executives, mined our firm’s ongoing study of marketing leadership trends, and tapped the direct observations of consultants across our global CMO practice. We found that the demands on marketing are growing far more eclectic, stretching marketing organizations and their leaders between divergent poles. The stretch is occurring across five critical axes:

Sophisticated Strategist vs. Entrepreneurial Trailblazer. Stable, mature markets offer large, reliable revenue streams, but competition tends to be fierce and growth potential is limited. Marketers must rely on intricate consumer insights and sophisticated strategies to eke out marginal gains. Emerging markets, in contrast, offer far less data to guide marketers, but far greater growth potential. The Entrepreneurial Trailblazer works creatively with what is available. In Africa, for example, more people have mobile phones than have access to electricity, and so mobile devices must be basic in design, to provide long battery life. As millions of Africans access the internet on a 2-inch cellphone screen, in black and white and text-only, marketers are skipping traditional TV advertising to move into the uncharted territory of advertising according to those parameters.

Business Leader vs. Marketing Guru. Companies increasingly require a CMO to be much more than a marketing star. Today’s CMOs are expected to help the CEO shape overall business strategy and guide how resources are allocated across the business. Metrics are a key driver of this shift. Historically, measures of marketing effectiveness could demonstrate only that marketing investments had created potential for the business to succeed. Today’s metrics can quantify marketing’s contributions to the top and bottom line. This is accelerating the trend toward assigning chief marketers broad business responsibilities.

Joseph Tripodi, executive VP and chief marketing and commercial officer of Coca-Cola, is a prime example. Just look at his official company bio: “Mr. Tripodi leads the global Marketing, Customer Management and Commercial Leadership efforts of the Company to develop and leverage its capabilities, brands and properties to meet the needs of consumers and customers worldwide to drive profitable growth.”

When Avon announced the appointment of Patricia Perez-Ayala as senior VP, CMO and global brand and category president, it noted: “Ms. Perez-Ayala will be responsible for global management of Avon’s brand and marketing, including consumer insights, commercial marketing, digital marketing, and also have oversight of Avon research & development, new product development and packaging, and the Liz Earle business.” Avon chose a proven general manager, with marketing at her core, to be its CMO.

We foresee more companies seeking top marketing officers with general management experience, as well as impeccable marketing credentials. The bar is being set ever higher.

Sector Specialist vs. Versatile Partner. Companies have often presumed that a CMO must rise within their own industry or one closely related. But many CEOs now want CMOs to be a versatile partner who can help make sense of all that is unfolding in the wider world, not just within one sector. For example, Citi’s chief brand officer, Dermot Boden, had never marketed in the financial sector, having formerly served as global chief marketing officer at LG Electronics and in marketing roles with Pfizer and Johnson & Johnson. Greg Revelle, senior VP and CMO at AutoNation, is a similar story. Prior to joining America’s largest automotive retailer, Revelle was VP of global online marketing for the travel platform Expedia.com. Earlier in his career, he was an investment banking analyst at Credit Suisse. Boden and Revelle each bring functional knowledge and abilities that are valued as more strategically essential, in a rapidly transforming marketplace, than deep industry knowledge.

Innovation Champion vs. Shopper Expert. Some organizations divide the role of the CMO into two areas of responsibility: an innovation champion focused on developing the pipeline for the future, three to five years out, and a shopper expert focused on delivering a P&L today. The logic is sound, given that each role demands different strengths. The innovation champion makes the organization a wellspring of ideas and ensures that new ideas are protected. The shopper expert builds deep, nuanced understanding of shopper behavior to deliver trial and repeat purchasing. Most CMOs are far more skilled at one or the other. But current and aspiring CMOs will need to acquire enough knowledge and experience outside their expertise to effectively lead both dimensions.

Digital Expert vs. Marketing Traditionalist. The power of big data and digital marketing has created a rush to infuse traditional marketing teams with digital talent. The danger is that freshly recruited experts in social media, SEO, analytics and other digital disciplines will fail to mesh with the traditional operation, with its expertise in areas like branding, promotion and product management. In effect, this creates two marketing functions that work in proximity, but not fully together. CMOs will be increasingly challenged to ensure that marketing is integrated and cohesive as its resident expertise grows markedly more diverse.

ABOUT THE AUTHOR
Dick Patton co-leads the global chief marketing officers practice at Egon Zehnder and Rory Finlay leads the global consumer products practice.

12 ‘Supermarketing’ Secrets for Ecommerce from The Grocery Aisle

There is perhaps no other retail sector that takes better advantage of consumer behavior research and in-store optimization than grocery stores. From circular to layout, from shelf-space to checkout, supermarket marketers are masters of merchandizing.

How can you apply supermarketing psychotactics to your ecommerce experience?

Loss leaders

Loss-leaders (popular, non-clearance items offered below cost in order to bring in foot traffic) can be profitable for brick-and-mortar stores, but not so much online. Loss leaders work in physical shops because shoppers tend to buy whatever else they need while in-store during that visit. It’s not the same online, where picking up extra items requires searching and browsing the website.

Amazon can afford to sell below cost because it turns over inventory well before it must pay suppliers. This “negative operating cycle” allows Amazon to make a return on cash flow. Most online retailers don’t run this business model.

The goal of loss leaders is to increase checkout total. Realistically, most online sellers will not succeed with product loss-leaders, rather with free shipping offers above a certain dollar amount. With 90% of consumers believing free shipping offers would entice them to spend more online, it’s no wonder so many e-tailers offer free shipping above $X year-round as a perpetual loss-leader (occasionally lowering the threshold during promotional periods).

Endcaps

Grocery aisle endcaps are premium space, and typically feature high margin products or brands that pay for this primo real-estate.

grocery-endcap

What are the ecommerce equivalents to these merchandising zones?

Beyond the obvious home page carousel (which nobody looks at anyway, consider “e-endcaps” in category navigation and on search pages (searchandising).

For example, Sephora bakes featured brands and products into its flyout menus and category results:

sephora-merch-zone
sephora-category-merch

Get it right

Most stores move customers from right to left. Due to this flow and and the practice of driving on the right side of the road, the items you are most likely to buy tend to be on the right hand of the aisle.

We read and view Web pages the opposite, left to right. While moving calls to action to the left of a page has paid off for some e-tailers, merchandising “endcap” content (including cross-sells and upsells) to the right of home, category and search pages may work on the same principle as grocery store navigation (it’s worth a test!)

Apply the breaks

Brian Dyches, chief experience officer of retail branding firm Ikonic Tonic studies retail shopping patterns, and says shoppers skip over up to 20% of a store’s merchandise in long, uninterrupted aisles.

Could eyes glaze over in long, uninterrupted search and category results pages? You bet.

Take a page from Wal-Mart and other big-box retailers: Create stopping points in the middle of long aisles, such as signs or displays that create a visual break. Dyches likes how clothing chain Anthropologie often repeats a design behind wall displays and then changes or ends the pattern to try to get customers to stop at a special display.

Online this can be accomplished by creating “breaks” in the design. Burton’s 13 Things feature does this crazy well, dropping humorous and lifestyle images into the experience.

13-hings

A bit of text/content can also break up a page to renew attention.

13-things

Herd mentality

Shoppers tend to subconsciously buy more when a store’s crowded to be “part of the group.”

Merchandisers can create a group mentality with social proof. Feature what’s currently trending socially, for example.

During sales periods, show what’s selling out to create social urgency. Flash-sale sites like HauteLook and BeyondTheRack do this well.

reserved-btr

One way to promote this is through real-time email that continually updates what’s sold out.

Class it up

To compete with Walmarts and other discounters, groceries “class it up” by bringing in “butchers who are skilled with the knife” or in-store seminars and events, like Whole Foods’ gluten free tours and kids craft days.

To compete with the Amazons of the ‘Web and other discounters, online retailers are becoming more like publishers, peppering content and other value-adds throughout the Web and mobile experience. Live “ask an expert” tools, product knowledge/shopping tools, and visual search.

Ten for ten

We’ll take an 89-cent can of tuna and mark it ‘ten for $10,’ 
and instead of buying six cans for 89 cents, people will buy ten for $10.

While any non-grocery retailer can do the X for $X promotion (and many do), the idea here is to leverage pricing psychology. Round numbers can affect how consumers perceive cost and value.

For example, “when something costs $100, consumers tend to rely on their feelings, whereas when something has an irregular price—such as $98.67—consumers have to use reason to compute whether it’s a good price.

If ten-for-ten feels good, customers will like it. So experiment with 2 for $20, $3 for 50, etc. And remember, when customers are working towards reaching a free shipping or loyalty points threshold, there’s incentive to spend more than what’s rational!

Milk in the back

While it’s erroneously believed that grocery stores put the milk, cheese and eggs in the back so you have to walk through the store to get to them, that’s just a convenient side effect of the real reason. Dairy trucks load through the back of the store and milk needs to be refrigerated right away, thus the cases are in the back to be filled as quickly as possible.

Nevertheless, “best stuff in the back” became standard retail practice, even for stores like Staples. It wasn’t until Staples’ new (at the time) CMO Shira Goodman developed its “that was easy” positioning did the most popular items get moved to the front of the store.

While sales did drop a little due to less impulse buying, it strengthened the brand, and helped Staples successfully differentiate against competitors.

Moral of the story? Borrowing design conventions from other industries is not always the right move.

Online also has an advantage of tailoring the “front of the store” to the customer. Smart use of personalization means what’s “in the back” for one customer can be “in the front” for another. Take advantage.

Impulse aisle

The ecommerce equivalent to the impulse checkout aisle is cross-selling in the cart.

But online impulse shopping has a benefit – you can A/B test and personalize the heck out of it.

Loyalty cards

We all know why supermarkets have loyalty cards — data, data, data to optimize their merchandising and send you targeted offers.

For cross-channel retailers, loyalty cards are all the more valuable for personalization. Whether a physical card or simply tied to an email address, understanding online and offline behavior helps better target the online experience. And with emerging in-store digital like iBeacon, customers can do even more with their loyalty account, such as receive targeted offers by mobile, check account balances in-store, etc.

indigo-loyalty

Tight checkout

We complain about abandoned carts and half-finished checkouts, but supermarket shoppers commonly ditch stuff in the checkout line. That’s why checkout lines have been designed narrower and narrower with less space to dump items!

That’s the same idea behind enclosed checkouts and not providing cart summaries during the checkout process.

Carts are never cleaned

Literally. Call it the grossery store, but shopping carts are chock full of nasty germs and fecal matter and never get wiped out.

Online, carts get wiped clean regularly — as in wiping cart contents. We know many shoppers don’t check out in a single visit. Persistent shopping cart cookies help save sales. Use ‘em or lose ‘em.

SEO for 2015

The Soft Bigotry of Low Expectations (for the Web)

November 18, 2014 1:36 PM
The Soft Bigotry of Low Expectations (for the Web)
By CHRISTOPHER MIMS

Yesterday, my column on why the Web is dying and how we’ll miss it inspired some especially thoughtful responses. Or I should say rejoinders; just about everyone who linked to the piece disagreed with both its thesis and particulars.
They’re provocative, and in the spirit of thoughtful debate it’s worth rounding them up as a sort of snapshot of both how we’re spending time with our (increasingly mobile) devices, and what it is we think of when we say “Web.” It’s an increasingly difficult term to define.
But before I get to the roundup, here’s a point I want to emphasize, which I think no one addressed in their responses to the column: The dream of the Web becoming a place for “apps” is imperiled, and it’s what I think endangers the Web long term, as it leads to a lack of investment by developers of both Web apps and the Web browsers that run them. And that, in turn, endangers the parts of the Web that are still very functional — the parts delivering information, documents, news and certain retail experiences.

One example: Google Maps. It’s available in at least three formats: a desktop Web app, a mobile Web app and a native mobile app. The first is functional, and the second nearly unusable compared to the last. The better apps become, the more users will demand them on every device they use, mobile or not. As those who build the technology we enjoy focus on the app experience, the “Web app” experience diminishes, and with it the drive by the world’s most powerful tech companies to push the Web forward.
Eventually, this will have consequences even for sites that are mostly just delivering documents (i.e. pages), which is what the Web has always been best at.
Now to the roundup:
“The web is alive and well” — Zach Seward at Quartz
“The assumption is that… the time when people are inside native apps doesn’t count as using the web.
To see the mistake here, just look at the most popular mobile app supposedly leading this turn away from the web: Facebook. A substantial portion of Facebook content offers links to other websites. Tapping them opens a browser within the app, and there you are, on the web.
“The Web Is Dying! Wait, How Are You Reading This?” — Will Oremus at Slate
“A closer look at the numbers reveals that the Web is still growing. Comscore finds that time spent on the mobile Web grew 17 percent between June 2013 and June 2014. True, app usage grew faster—52 percent, by Comscore’s reckoning. But as Quartz’s Seward points out, “the overall pie is growing,” and mobile apps have been “largely additive to the online experience.”
“Native Apps Are Part of the Web” — John Gruber at Daring Fireball
“How has the rise of native mobile apps been anything but a renaissance of innovation? […] The pre-mobile web was largely about consumption for most people: reading articles, watching videos, buying stuff. In today’s world, everyone is creating and sharing their own content — everything from photos to videos to their thoughts and observations. Mims claims native mobile apps are “bad for innovation and the consumer” while consumers around the world are doing remarkably innovative things using native mobile apps.”
“The Web, Still Dying After All These Years” — MG Siegler at Medium
“So the problem most people seem to have is that they either can’t wrap their heads around this concept: you are using the web, you’re just using it in an app. Or they worry about the app model being destructive to the open nature of the web. Maybe. I just think it’s cyclical. AOL begets World Wide Web begets Facebook and so on.”
“Why the Web Still Matters for Writing” — Matt Mullenweg of WordPress, writing in April and quoted yesterday by Mathew Ingram of Gigaom
“There is no question that apps are here to stay, and are a superior interaction model for some uses. But the web is like water: it fills in all the gaps between things like gaming and social with exactly what any one particular user wants. […] Let the water flow to exactly where it’s needed! That’s the power of the web, and now that a computer is with us in so many more places, we need that flexibility more than ever.”
But one other issue is worth emphasizing: Many wrote that the Web is simply turning into apps, as if that were a values-neutral phenomenon. But apps don’t run in any browser, on any device, as Web services must. Handing control over what can appear on our phones is an enormous tax on developer time and companies’ resources, at best, thanks to the necessity of creating apps for every platform. At worst it’s a concession that the democratizing force that is the Web should now give way to walled gardens that threatened it in the past. That the Web won in the era of Firefox vs. Microsoft, or AOL vs. openness, is no guarantee it will win today.
Christopher Mims