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Wednesday, December 24, 2014
end of an ear
Thanks and festive greetings to everyone who has read, commented, shared in 2014.
See you after the break for more self-delusion, confabulation and vitriol.
Thursday, December 11, 2014
The Dunning-Kruger Peak of Advertising
You may be familiar with the case of one McArthur
Wheeler.
Wheeler was a man who, in 1995, proceeded
to rob two banks in Pittsburg, in broad daylight, using no other method to
avoid detection other than covering his face with lemon juice.
As lemon juice is usable as invisible ink, Wheeler was
certain that it would render his own face invisible, and therefore prevent his
face from being recorded by the surveillance cameras.
Wheeler was supremely confident as he had
tested his hypothesis by taking a proto-selfie with a polaroid camera and the
result had give him an image of only wall, with no face apparent.
Unfortunately he had simply aimed his shot
badly.
The story inspired a series of experiments
by David Dunning and Justin Kruger of the Department of Psychology, Cornell University.
The results were published in 1999 and
henceforth the phenomenon - If you’re incompetent, you can’t know you’re
incompetent because the skills you need to produce a right answer are exactly
the skills you lack in order to know what a right answer is - became known as
the Dunning-Kruger Effect.
In the early days of its existence the
Dunning-Kruger Effect was also sometimes described as the American Idol Effect.
This was because the hapless yet strangely
confident performances in TV talent show auditions were an extremely salient
example of the phenomenon - a cognitive bias wherein
incompetent individuals mistakenly rate their own competence much higher than
is accurate.
This bias is attributed to a meta-cognitive inability of
the unskilled to recognise their ineptitude.
Conversely, many people who actually are
skilled or talented tend to underestimate their own talent, and wrongly assume
that things that are easy for them to do are also easy for others.
As Dunning and Kruger famously note,
"the miscalibration of the incompetent stems from an error about the self,
whereas the miscalibration of the highly competent stems from an error about
others"
For the talent show hopefuls the sweet
Mariah Carey tones in their own head bears no resemblance to the hideous
cacophony coming out of their mouth.
Part of the problem is the fact that none
of the people around our untalented protagonists - family, friends, colleagues
– are prepared to tell them the truth.
Therefore the delusion becomes even more
entrenched.
(These people, while well intentioned, can
be reasonably described as mediocrity enablers. That's for another post.)
For more on this have a listen to Dr
David Dunning himself telling the story of McArthur Wheeler and the development
of his theory in this episode of the You Are Not So smart podcast.
Anyway, you now you will start to see how
this is leading us into the world of advertising.
There is a point, often labeled
‘Dunning-Kruger peak’ that represents the particular surge of self-confidence
one gets upon acquiring some small amount of skill in a field.
It represents the huge leap from novice to
semi-skilled amateur.
However the deluded amateur, at this stage both encouraged their new found knowledge yet unable to know the
vastness of what they have yet to learn in order to be an
expert, begin to imagine themselves to actually be expert.
This period of delusion is common in people
who are just starting out in advertising, though by no means exclusive to the young. Based on scant evidence they suddenly believe they are much more
knowledgeable about advertising than they actually are.
Moreover, this delusion seems to also happen
at a group level, and envelopes people with enough experience to know better,
which is why I suggest that a large part of our industry appears to have hit some
sort of Dunning-Kruger peak.
The commonly held ideas of those operating
in Dunning-Kruger peak mode are some sort of party-mix that contains ‘advertising
is dead, everything is now about content, participation and conversation’, ‘creative
departments are no longer required as ideas come from anywhere’ and ‘anyone
with a smartphone can be an ad agency’ amongst many others.
Dunning and Kruger discovered that people
who are unskilled at something — in this case advertising — are often unable to
see how bad they are.
Incompetent people will
1. Fail to recognise that they are
incompetent,
2. Fail to recognise how good competent
people actually are.
3. Fail to see the scale of their
incompetence.
To an extent this story is my own story.
Armed with Twitter and grab bag of Seth
Godin one-liners I spent a number of years parroting much of the same
‘advertising is dead’ drivel.
Until eventually reaching that moment of
true insight when I realised exactly how incompetent I actually was.
This is where one falls from the
Dunning-Kruger Peak into a trough* of enlightened ignorance where you begin to
realise that the things you don’t know massively outnumber the things you’ve
learned.
(* In photographers' lingo this is called
the Jon Snow trough, after a character in Game of Thrones apparently).
On the upside, despite being in the trough,
one is now actually skilled to some degree though conversely now saddled with
the tendency to underestimate one’s own skill when compared to the over
confident noises made by the mass of incompetents.
For the adperson to hasten his or her descent from the peak, one
important insight that is best absorbed sooner rather than later comes from realising that the consumers we have to communicate
with spend precious little time thinking about brands, do next
to no evaluation around most purchase decisions, and even brands that they use
and like are trivial in comparison to the rest of their daily lives.
Rather than engagement, conversations or
participation people’s actual buying behaviour is about reducing complexity,
reducing choice and making easier, good-enough decisions.
Our job is simply about getting brands
noticed, remembered at the appropriate time and then bought.
Just getting that teeny tiny bit of attention
needed is hard enough, never mind all the other bollocks.
Like the fella once said, ‘Never make
predictions, particularly about the future’.
Perhaps a wish, then.
A wish that 2015 is the year when all of us in the business of marketing communications – of all flavours – fall from our Dunning-Kruger peak, and recognise that while we have some skills and influence, what we don’t know about human behaviour is so much more than what we do know, and no amount of lemon juice flavour kool-aid can hide this.
A wish that 2015 is the year when all of us in the business of marketing communications – of all flavours – fall from our Dunning-Kruger peak, and recognise that while we have some skills and influence, what we don’t know about human behaviour is so much more than what we do know, and no amount of lemon juice flavour kool-aid can hide this.
Tuesday, November 25, 2014
presenter's toolkit
I don't normally do these 'lifehack' kind of posts, and there's no danger of this turning into any kind of self-help blog.
[On occasions when I've had to talk to students and suchlike I'm inclined to respond to career advice type questions with something along the lines of 'See what I did? Don't do that'.]
The items above are ones that I carry with me for any pitch, presentation or client meeting in which I may have to show stuff on a screen.
Exhibit A:
A mini dv mac to HDMI adaptor.
When turning up at your meeting you may have to plug in to a massive TV and these days the regular PC in slot is starting to become less common.
Exhibit B:
A mini dv mac to PC adaptor.
This will be pretty familiar, you usually have to plug in to some PC contraption.
[Note: I'm fond of the Guy Kawasaki 10-20-30 rule.
10 slides, and a minimum of 30pt font.
The 20 stands for 20 minutes (this is how long you should expect to talk for in a one hour pitch or meeting).
This allows you 40 minutes to answer questions etc (expect to use about 20mins).
Guy also recommends reserving the other 20mins to set your presentation up while having to navigate the Microsoft operating system.]
Exhibit C:
Your mac remote control.
Never trust the fangled space age looking PC remotes that may be provided.
A remote is essential to allow for maximum pacing up and down, pontificating and strolling menacingly round the back of your audience like Robert DeNiro in the Untouchables.
Exhibit D:
Portable bluetooth speaker.
I've been caught out by no audio equipment too many times.
In a small boardroom type meeting you can simply whip out your speaker and place it in the middle of the table and play your videos or audio.
While there is no substitute for knowing your material inside out (this will get you through any tech problems better than any gadget) being prepared makes you at least look like you know what you are doing - a lot of the time this is half the battle.
Monday, November 24, 2014
bring the noise (or...why quiet fixing is the enemy within)
In any given week there’s no shortage of
writing on ‘the new agency model’ or ‘why advertising is broken and how to fix
it’.
I’ve no wish to add to this number.
What this post aims to outline is a common
problem in agencies of all flavours – new model or otherwise.
And it’s nothing to do with the fragmentation
of media, consumers-in-control, the collaborative economy or how content
strategy will eat advertising.
Nor is it in anyway connected to marketing
3.0, purpose before profit or how branded communities of millenials are
demanding marketing from the ‘the spirit’ and psychic satisfaction (© Philip
Kotler - Marketing 3.0 and I am not joking)
No, the biggest problem in agencies is when
people quietly, and without fuss, fix things.
The reason this is the biggest problem is
because no-one notices it’s a problem.
In fact, it looks like it’s efficiency.
A problem arises, someone notices it,
applies some little ‘fix’ and moves on with minimal disruption to anything else
going on.
Why is this such a big deal?
Listen to ex-Toyota chairman Katsuaki Watanabe.
‘Hidden problems are the ones that become
serious threats eventually.
If problems are revealed for everyone to see, I will feel reassured.
If problems are revealed for everyone to see, I will feel reassured.
Because once problems have been visualized,
even if our people didn't notice them earlier, they will rack their brains to
find solutions to them.
In Toyota, if a problem is noticed,
production on the line stops, the entire team comes together to identify the root
cause of the problem, to ensure that it does not happen again.
This can be noisy and a little heated, but
it leads to better quality and productivity in the long term.’
Quiet Fixers cause two principle problems.
1.
If the quiet fixer solves a genuine issue then
we never get the chance to know that it was a problem - therefore the root
cause never gets addressed and in all likelihood that same problem will come up
again in the future.
2.
The quiet fixer ‘solves’ a problem that
wasn’t a problem and therefore creates a problem.
These type of quiet fixes
normally happen further down the line of production, and usually begin with the
words ‘can you just…’ followed by ‘move that button’ ‘make it red’ or ‘change
that word to…’. To the fixer these can seem like trivialities, minor
no-harm-done tweaks to perhaps appease a client.
To the fixer it may even feel like they are
doing the right thing.
But it’s the small things that make a big
difference and do serious damage to a piece of communication which only gets
discovered when it’s too late.
We are reminded of one of Rory Sutherland’s
early TED talks in which he famously noted this in regard to the growing
influence of decision science and behavioural economics on informing how choices are
presented in advertising and other brand communications:
‘Unfortunately, [the] science is probably
closer to being climatology in that in many cases, very, very small
changes can have disproportionately huge effects, and equally, vast
areas of activity, enormous mergers, can actually accomplish absolutely
bugger-all. But it's very, very uncomfortable for us to actually
acknowledge that we're living in such a world.’
In such a world, for agencies of any sort,
a culture of quiet fixing is the enemy within.
Bring the noise.
HT to the @psychwork blog – ‘Thinking atWork’.
correct planning
In 1968, Stanley Pollitt, along with Martin
Boase and Gabe Massimi, started the agency Boase Massimi Pollitt.
The three of them had worked at Interpublic
agency Pritchard Wood Partners.
(No relation, as far as I know, btw)
BMP emerged after the trio had
un-successfully attempted to buy Pritchard Wood and started up their own agency
instead.
It was while at BMP that Stanley Pollitt
was able to fully form his idea of Account Planning.
Coincidentally Stephen King at JWT was
having similar ideas at the same time, and the pair are recognized as the
godfathers of the discipline.
Here’s Pollitt’s description of the role of the account planner.
‘The
account planner is that member of the agency's team who is the expert, through
background, training, experience, and attitudes, at working with information
and getting it used - not just marketing research but all the information
available to help solve a client's advertising problems’.
For the ‘expert’ that Pollitt describes,
his or her single most important task was to get the advertising ‘right’ and
both Pollitt and King advocated an approach based less on gut feel and more on
scientific foundation.
I mention this as Pollitt and
King came to mind while reading
the following passage from evolutionary psychologist Stephen Pinker’s book ‘How The Mind Works’.
Pinker is making the argument for proper science vs 'pseudo' science.
He could just as easily be making the case
for correct planning vs pseudo planning, such is the proliferation of
‘experts’ in the now expanded realm of quackery that passes for ‘strategy’ of
some shape or form in agencies.
(The principal skill of many of these strategists being the ability to 'find the data' that promotes their particular case and specialism.)
(The principal skill of many of these strategists being the ability to 'find the data' that promotes their particular case and specialism.)
‘Experts
are invaluable and are usually rewarded in esteem and wealth. But our reliance
on experts puts temptation in their path. The experts can allude to a world of
wonders — occult forces, angry gods, magical potions — that is inscrutable to
mere mortals but reachable through their services.
Tribal
shamans are flimflam artists who” supplement their considerable practical
knowledge with stage magic, drug-induced trances, and other cheap tricks.
In a
complex society, a dependence on experts leaves us even more vulnerable to
quacks, from carnival snake-oil salesman to the mandarins who advise
governments to adopt programs implemented by mandarins.
Good
science is pedantic, expensive, and subversive. ‘
Dictionary.com
appears to have a different view of ‘pedantic’, describing it as:
'The
nitpickery of the english language that drives the less detail oriented
insane...often mistaken as a tool to impress others when in fact it is
annoying.'
For planning to get the advertising ‘right’
this is a necessary risk.
To round off I’ve mapped Pinker’s pedantic, expensive, and subversive trifecta
onto three attributes that Stanley Pollitt believed to be essential for
effective account planning.
Pedantic
This means total agency management
commitment to getting the advertising content right at all costs. This means
creating effective advertising instead of focusing on maximising profits or
keeping the clients happy.
Expensive
The agency commits the resources to allow
planners to be more than temporary role players. Account planners must be given
the leeway to work with the data and research that they see fit.
Subversive
It means changing some of the basic ground rules. Once
consumer response becomes the most important element in making final
advertising judgments, it makes many of the more conventional means of judgment
sound hollow. "Conventional means" representing the affection a
Creative has over an idea or the prejudice of a client that challenges research
evidence.
As an interesting footnote, while poking
around for some nuggets for this piece we were naturally delighted to find
that aside from Pollitt’s contribution to the advancement of the ad industry,
he also made a major contribution to the punk canon as his daughter –Tessa -
was bass player in The Slits.
Monday, November 17, 2014
authenticity is bullshit
‘Rather
than seeking primarily to arrive at accurate representations of a common world,
the individual turns toward trying to provide honest representations of
himself.
It is
as though he decides that since it makes no sense to try to be true to the facts,
he must therefore try instead to be true to himself.
[But]
there is nothing in theory, and certainly nothing in experience, to support the
extraordinary judgment that it is the truth about himself that is the easiest
for a person to know.
Our
natures are, indeed, elusively insubstantial—notoriously less stable and less
inherent than the natures of other things.
And
insofar as this is the case, sincerity itself is bullshit.’
The above is a shortened version of the
closing remarks from Harry G. Frankfurt’s famous philosophy essay ‘On Bullshit’, first published in 1986 and still widely regarded as the closest
thing we have to unified theory of bullshit.
‘Sincerity
itself is bullshit’
Those closing remarks of Frankfurt’s theory
sprang to mind as we noticed an article on Salon.com this week entitled ‘Let’s all be a lot less Honest’ in which author R. Jay Magill Jr. asked
if it's time to:
‘...drop our authenticity
fetish and get real about the neglected art of playing social roles’.
Magill’s article begins by addressing a
piece by Duke University law professor Jedediah Purdy, in The Daily Beast entitled ‘Why Your Waiter Hates You’, in which
Purdy argues that modern capitalism performs:
‘...a pervasive intrusion on a key aspect of autonomy: the right to be yourself.’
Purdy means that many workers - low paid service workers e.g. waiters and
waitresses - are being extorted because they have to be nice to customers (presenting a
public self) in order to receive tips for insatnce, even though the act makes them betray
their real feelings (their private self).
Magill, however, contests this and argues
that to keep the private self and public self separate does not demean the latter
just because it is not ‘real’ or ‘authentic’.
He goes on to state that ‘the public self is as real as the private
self; it is our overvaluation of the latter that has thrown the long-standing
importance of the former into doubt.’
It is this idea of the overvaluation of the
‘private’ or ‘authentic’ self that crosses over into some of the popular ideas
in what seems to represent a significant portion of modern branding and
advertising theory.
Scarcely a week goes by without the deluge
of articles from marketing experts and commentators (most commonly from the digerati, curiously) demanding authenticity from
brands.
That a
brand should ‘provide honest and authentic representation of itself.’
And if that’s not enough, it’s claimed in
some quarters that these authentic brands should not even be concerned with the
grubby business of making a sale!
I’m not sure what industry some of these
people think they are in.
It is widely claimed that rather than being simply social and transactional brands should instead be concerned with
seeking a deep connection, engaging on a personal level with the individual.
And that advertising which attempts to put
memorable campaigns in front of mass audiences with the intention of getting a
brand thought of momentarily the next time the consumer wants to buy from the
category, is somehow inauthentic.
The commentators who espouse this theory
seem very certain that this is the way forward for brands, yet there is scant
evidence that any consumers out there even want to engage with brands at all, and
even thinking about brands is something that most people spend very little
mental energy over.
It's worth noting - with some irony - that many of those commentators who demand this of 'brand authenticity' are among the worst bullshit offenders.
Returning to Frankfurt's text briefly...
It's worth noting - with some irony - that many of those commentators who demand this of 'brand authenticity' are among the worst bullshit offenders.
Returning to Frankfurt's text briefly...
'Bullshit is unavoidable whenever
circumstances require someone to talk without knowing what he is talking about.
Thus the production of bullshit is
stimulated whenever person’s obligations or opportunities to speak about some
topic exceed his knowledge of the facts that are relevant to that topic.
This discrepancy is common in [marketing journals],
where people are frequently impelled—whether by their own propensities or by
the demands of others—to speak extensively about matters of which they are to
some degree ignorant.'
This clamour for authenticity from brands
seems also to be connected to what Magill describes in his article as the ideology of intimacy.
‘The
ideology of intimacy promotes the idea that social relationships are only real,
authentic and meaningful the closer they approach the inner life and
vulnerabilities of a person.
[It] encourages
ever-increasing closeness - between people, nations and cultures - and decries
interpersonal or intercultural distance as cold, fake, distant or aloof.
This
assumption runs so deep in culture that we no longer see it, let alone question
its worth.’]
But do we really need this ideology of
intimacy to dominate the discourse around brands and consumer relationships?
Magill concludes ‘social culture is only “cold” or “distant” if you go in to social
interactions expecting warm and fuzzy feelings from people you do not know.’
It works in both directions too.
Modern marketers have a misguided obsession with knowing the details of consumers' private lives (principally driven by that other marketer fetish; big data) - believing this will make their efforts more effective.
In a social and market context however, impersonal behaviours are far more useful, simply because they create 'a boundary between one’s real feelings and the impersonal world of transactions'.
The principal difficulty with the brand authenticity lobby is that it crosses the streams.
If you're familiar with Ghostbusters then you will understand just how problematic this is...
As Dan Ariely pointed to in Predictably irrational, we live simultaneously in two different
worlds.
One where social norms prevail, and the other governed by market norms.
'Social norms are wrapped up in our social
nature and our need for community. They are usually warm and fuzzy. Instant
paybacks are not required: you may help move your neighbour’s couch, but this
doesn’t mean he has to come right over and move yours.
The second world, the one governed by
market norms, is very different. There’s nothing warm and fuzzy about it. The exchanges
are sharp- edged: wages, prices, rents, interest, and costs- and- benefits.
Such market relationships are not necessarily evil or mean-in fact, they also
include self- reliance, inventiveness, and individualism-but they do imply
comparable benefits and prompt payments'.
Emotional honesty may be a nice personal
quality to have, but it has nothing to do with solving anyone’s washing powder
problem, and by keeping things on a ‘social relation’ level – with all it’s
inherent fake-ness – is a more authentic relationship than any sincerity
bullshit.
Have a nice day.
Rather than pursuing the futile quest for brand authenticity we’d all (brands and consumers) be perfectly happy with brands that are ‘impersonal, but friendly’ (a phrase coined by social historian Peter Stearns about the American smile’) and allow us to transact without crossing the streams.
Have a nice day.
Tuesday, November 11, 2014
a no-brainer for you
The brain is a physical system.
It functions in ways not dis-similar to a computer.
The brain itself is like the hardware, the mind is like software or apps, perhaps.
Its circuits are designed to generate behavior that is appropriate the environmental circumstances in which it needs to function.
This means that all of our thoughts, hopes, dreams and feelings are simply the product of chemical reactions going on in our heads.
In this sense there is no 'self'.
(While evolutionary psychologists are generally the most vocal opponents of anything that smells of religion, it's curious how much of the theory corresponds with the same ideas in buddhism, for example.
Although buddhism is not strictly a religion, of course.)
Anyway.
The circuits of the brain, firing together, are designed to generate different kinds of motion.
This is what we would call behaviour, and it happens in response to information from the environment.
Now we've got that out of the way it's interesting to note how many behaviours we share with other species.
This particular example that I found in an uncredited EP primer reminded me of some people I've encountered in the advertising agency and marketing world.
It functions in ways not dis-similar to a computer.
The brain itself is like the hardware, the mind is like software or apps, perhaps.
Its circuits are designed to generate behavior that is appropriate the environmental circumstances in which it needs to function.
This means that all of our thoughts, hopes, dreams and feelings are simply the product of chemical reactions going on in our heads.
In this sense there is no 'self'.
(While evolutionary psychologists are generally the most vocal opponents of anything that smells of religion, it's curious how much of the theory corresponds with the same ideas in buddhism, for example.
Although buddhism is not strictly a religion, of course.)
Anyway.
The circuits of the brain, firing together, are designed to generate different kinds of motion.
This is what we would call behaviour, and it happens in response to information from the environment.
Now we've got that out of the way it's interesting to note how many behaviours we share with other species.
This particular example that I found in an uncredited EP primer reminded me of some people I've encountered in the advertising agency and marketing world.
'Organisms that don't move, don't have
brains.
Trees don't have brains, bushes don't have
brains, flowers don't have brains.
In fact, there are some animals that don't
move during certain stages of their lives.
And during those
stages, they don't have brains.
The sea squirt, for example, is an aquatic
animal that inhabits oceans.
During the early stage of its life cycle,
the sea squirt swims around looking for a good place to attach itself
permanently.
Once it finds the right rock, and attaches
itself to it, it doesn't need its brain anymore because it will never need to
move again.
So it eats (resorbs) most of its brain.'
So it eats (resorbs) most of its brain.'
Tuesday, November 04, 2014
beanz meanz recognition validity
While much of the debate around heuristics
and biases tends to focus on how mental shortcuts can lead to less than optimal
decision making, it's worth noting that this is not always the case - indeed
fast, simplified decision rules often result in better choices.
Where less knowledge is actually better
than more in order to make a particular inference.
According to Gigerenzer the recognition
heuristic is one such shortcut that we consumers routinely apply without
thinking and derive a kind of counterintuitive less-is-more effect.
Think of this as ‘brand fame’, in it’s
simplest sense.
A 'fame' in which recognised items or brands will be
chosen over unrecognised ones, regardless of any other available relevant
information.
This is important because it gives us a
better clue about how brands are selected in actual real buying situations
versus hypothetical ones.
For instance, when asked to name as many
brands in a specific category as possible, people can rarely name more than a
few.
However when read a list of brands in a
category, people are usually aware of much more than just a few. When prompted they can name loads more.
The problem is that in real-life buying situations the brands that come to mind automatically are the only ones that matter.
So, unaided salience is a slightly better
predictor of the brands that may come to mind in a real buying situation,
though still not perfect.
So, onto Gigerenzer's model of recognition
validity.
On the right-hand side of the diagram above
we see partially ignorant consumers (that's you and me); we have limited brand
name recognition, limited (if any) brand knowledge, but we are in a
goal-oriented situation, getting the weekly shopping in.
On the left is what we are trying to infer
(a quality), in order to determine which beans to buy.
On the top, there are the 'mediators' in
the environment, such as news media, advertising (Beanz Meanz Heinz) , word of
mouth, stuff we've 'heard about', what we did last time and what we've observed
other people do.
The 'quality' (some sort of cue or
whichever attribute we need in order to pick) of a brand can be inferred by how
many associations that we can make, and the quality of those associations.
Over time, we implicitly learn that heavily
advertised brands are of a high quality, and because advertising causes
salience of the brand name, and salience we can infer high quality from
recognition alone.
For the brand itself this is extremely
significant as consumers unconsciously screen out competing brands – they don’t
even get noticed.
But it gets even better when we can learn
by observing what other consumers do (popularity), in turn this also reinforces
recognition.
Then the more times we use a particular
brand the usage itself leads to further recognition.
We still have no more brand knowledge but
don't need it, less knowledge is actually better than more.
In turn, the more often a brand name is
mentioned by the mediator(s) , the more likely it is that a person will have
heard of the name, regardless of its actual quality.
The recognition heuristic is a probably a
very close cousin of what Byron Sharp would call ‘mental availability’.
‘Buyers
use different cues when retrieving brands as buying options.
They
may be totally unaware of the cues they are utilising.
No
consumer is wedded to one attribute all the time.
The
typical buyer might be thinking healthy one time, convenient next time and a
treat the time after. Buyers use different attributes at different points in
time. ‘
How the recognition heuristic works in
short:
- Impact of quality: high-quality objects are
mentioned more often than low-quality objects.
- Impact of publicity: those that are
mentioned more often are recognised more often
- Recognition validity: those that are
recognised more get bought more.
Monday, November 03, 2014
never trust a hippy (slight return)
The article that follows first appeared on the Australian media and marketing website Mumbrella on October 30th. This is the slightly longer version of the published piece.
I received a number of complaints about the title of the post.
For the benefit of younger readers it is a reference to a particular Jamie Reid poster (of the same title) from punk times circa 1976 or something. Some of my best friends are hippies.
Eaon
______________________________
It was Mark Earls who coined the term ‘purpose-idea’
back in 2002 or something in his book ‘…Creative Age’.
His premise being that
the word ‘brand’ had become – what he called – a ‘fat-metaphor’. A word that
could be used it to mean just about anything we want it to.
Purpose-Idea was a proposed replacement for
‘brand’ – as defined as the ‘what for?’ of a business.
The Google purpose idea, for example, was 'to organize the world’s information and
make it universally accessible and useful'.
A simple description of how the brand fits into people’s lives.
Not the ‘ethics and values’ place that it’s ended up (for many so-called cultural or conscious capitalism examples).
And, if anything, ‘purpose’ now feels even more esoteric than the b-word was in the first place.
However, there’s no shortage of reporting that
claims a cause-and-effect relationship between a brand’s ability to serve a
higher purpose and its financial performance.
But is this really proof
that the most successful brands are built on an ideal of improving lives?
Or is brand purpose simply a positional response
that resolves a particular cognitive dissonance and puts a do-gooder spin on
normal consumption habits for old (and new) hippies?
And another example of the delusion of the wrong end of the stick. Getting causes the wrong way round.
The standard rhetoric of the ‘brand with purpose’
goes something along these lines.
It’s much harder to run a mission-driven
company than it is to run one that is simply devoted to making a profit.
This is possibly why there was a sense of
disappointment from Benjamin Harrison in his article in Mumbrella (to which this article was a response) , in which he
lamented the inability of many companies who adopt a purpose-driven position to
actually deliver on that promise.
But should we really expect the purpose
driven brand to be authentic in this way? It’s pretty hard after all.
In their book ‘The Rebel Sell’ Joseph Heath
and Andrew Potter note that "…whenever you look at the list of consumer
goods that [according to critics of capitalism] people don't really need, what
you invariably see is a list of consumer goods that middle-aged intellectuals
don't need ... Hollywood movies bad, performance art good; Chryslers bad,
Volvos good; hamburgers bad, risotto good."
It could even be that the much-deified new
generation of ‘millennials’ – the bullshit proof authenticity-seeking
information generation defined both by their strongly held values and their
strong intention to live by them – is another invention of these same
middle-aged intellectuals, are now looking to temper the disappointment they
feel over their own generations counter-culture failure.
The list of usual suspect purpose driven
brands, as indicated by the Stengel 50, seems to play out to that point.
Starbucks, Apple, Google, Innocent, to name
but a few.
And, of course, Chipotle.
There is no small irony in how Chipotle
appear to expect farmers to produce food for the world using technologies from
the early 1900s, yet seem very comfortable using every trick and tech from the
2014 marketing book to promote that point of view.
Of course, every new pseudo anti-establishment
approach business that declares itself as some sort of alternative to the
mainstream - more artisanal, authentic or purpose-driven – is simply a response
to demand from the mass market looking for things to consume that signal their
alternative status to others.
My favourite description of anti-consumerism
is the one that calls it as ‘the criticism of what other people buy’.
But the truth is that the market is just as
good at meeting consumer demand for anti-consumer products as it is for
straight up consumer products.
Sometimes it’s hard to tell the difference,
to be honest.
Take the sharing economy poster child Uber,
for example.
A shining example of a new social era built
on transparency, connectedness and stakeholder empowerment.
Driven by both a social mission and social
values: advocacy, connection, and collaboration. Harnessing technology to
create social marketplaces that facilitate trust, dual accountability and
social capital between and amongst its stakeholders, employees, customers, and
partners.
A brand with a purpose beyond profit.
The Uber Drivers Networks of New York, San
Francisco, Los Angeles, and London who went on the latest of several strikes
and held protest demonstrations against the company’s somewhat unethical driver
squeezing practices outside Uber HQ’s last week might contest this.
Or let’s ask the drivers working for 3rd
Party fleet partners operating as mini-Uber bases, which, for all intents and
purposes are operating under the exact same economic and operational principles
of the yellow cab or black car bases that Uber was supposed to replace.
We should also give (dis)honourable mention
to Uber in la France with their recent promotion offering riders the option
‘hot chick’ model drivers.
To be fair, it was France, but to describe
the promo as “acceptable” misogyny feels like a bit of a stretch.
Uber is an easy target, admittedly.
In Jean Baudrillard’s 1970 book, The
Consumer Society he describes consumption itself as some sort of ‘magical
thinking’. This is why advertising works so well.
Goods conveying properties beyond their
intended use.
Anti-consumption is probably more so.
You see, the post social media analysts (now sharing economy experts) like to think that organisations like Uber are somehow subversive.
But they are not. The system is simply
incorporating a new market segment.
And it is the same old competitive consumption,
that drives this same consumer spending.
It’s positional and pure marketing.
But the label helps resolve that particular cognitive dissonance.
Now you can feel like a do-gooder and still consume.
We always seek to gain status for ourselves
with what we buy (or rent), and everybody does it too.
The seemingly purpose-driven brands of the sharing economy and suchlike might be
the new cool, but the status-oriented nature of the activity remains the same for the consumers.
Consumerism is something we do to each other, and if anything, straight up conspicuous consumption is more authentic than conscious consumption because at least the status-driven nature of it is not disguised.
[Note: Reid/McLarens 'never trust a hippy' was a thinly veiled jibe directed at Richard Branson, who's current space tourism product is just about the ultimate positional good, this week's 'setback' notwithstanding.]
Thursday, October 16, 2014
do they know it's christmas?
Regular readers will know that many years ago I worked in a record shop.
And on occasion I've recounted a tale or two about how I learned a bit about marketing and selling on the job.
I never knew the theory in those days, just the practice.
We were a small indie and our range was smaller than the big chains.
There was a lot of top 40 type material that we would have struggled to sell.
We were in a different partition, if you like.
At certain times of year however, we had a bit of an opportunity to sell some stuff that the chains would normally clean up on.
Christmas, for example.
There was a certain type of buyer, and there were lots of them, who were very light category buyers.
They only bought music once a year, sometimes even less.
The 'Christmas number one' was what they bought.
Whichever song was number one in the charts at Christmas.
So we made sure we had a shed load racked out at the till point, so the once a year category buyer could walk straight up, get their CD and get off.
I soon learned not to even try and upsell because they didn't know or want anything else.
The book business is similar, I would imagine.
There's still lots of volume to be had from light category buyers - especially in the bricks and mortar stores.
Even among those who we could call 'buyers of the category' many buy less than one book a year.
And that one book might be the year's blockbuster. The book equivalent of the Christmas number one. Fifty Shades was probably one of those.
Here's another.
Today the local Tasmanian newspapers ran four or five pages on the spectacular success of local author Richard Flanagan winner of the 2014 Man Booker for The Narrow Road to the Deep North a story about Australian soldiers on the Burma Railway.
Only the fourth Aussie author to win the prize, and the first from Tasmania.
I'm not a novel reader, to be fair, I like factual stuff and biographies.
My wife is though.
Because there's a local connection to where I am working, I nipped over to the main city centre bookshop at lunchtime today to pick up a copy for her, before I go to the airport to go home.
They were sold out.
I was also told that they had only a few in stock at the beginning of the week.
'It has been out for a year, after all'.
Ever curious, I hung around for 20 minutes as dozens of light category buyers - and some so light they could likely be classified as non-buyers - filed in for the one book of the year (or decade) they were ever going to buy.
It was was out of stock.
No doubt this has been going on all day.
All day hundreds of shoppers have walked in and out with $30 still in their pocket.
They buy books so infrequently they don't even know what they should expect to pay.
All those books could have been sold at full whack.
It will be back in on Tuesday, though.
By that time the one book a year buyers will get someone to order it online and they will have it delivered by Tuesday (this is Australia. It takes about a week to come from the US or Europe).
Or most likely forgotten about it.
They could have got a pallette load on consignment from the publishers, just in case.
Or a big poster in the window letting people know when it will be restocked and taking orders as a damage limitation tactic.
Have an empty table in the shop where the book would have been. Making it look scarce and popular.
It was on the shortlist.
They had one chance.
And the bookstore will complain about Amazon, killing their business.
They are doing a good job on their own.
And on occasion I've recounted a tale or two about how I learned a bit about marketing and selling on the job.
I never knew the theory in those days, just the practice.
We were a small indie and our range was smaller than the big chains.
There was a lot of top 40 type material that we would have struggled to sell.
We were in a different partition, if you like.
At certain times of year however, we had a bit of an opportunity to sell some stuff that the chains would normally clean up on.
Christmas, for example.
There was a certain type of buyer, and there were lots of them, who were very light category buyers.
They only bought music once a year, sometimes even less.
The 'Christmas number one' was what they bought.
Whichever song was number one in the charts at Christmas.
So we made sure we had a shed load racked out at the till point, so the once a year category buyer could walk straight up, get their CD and get off.
I soon learned not to even try and upsell because they didn't know or want anything else.
The book business is similar, I would imagine.
There's still lots of volume to be had from light category buyers - especially in the bricks and mortar stores.
Even among those who we could call 'buyers of the category' many buy less than one book a year.
And that one book might be the year's blockbuster. The book equivalent of the Christmas number one. Fifty Shades was probably one of those.
Here's another.
Today the local Tasmanian newspapers ran four or five pages on the spectacular success of local author Richard Flanagan winner of the 2014 Man Booker for The Narrow Road to the Deep North a story about Australian soldiers on the Burma Railway.
Only the fourth Aussie author to win the prize, and the first from Tasmania.
I'm not a novel reader, to be fair, I like factual stuff and biographies.
My wife is though.
Because there's a local connection to where I am working, I nipped over to the main city centre bookshop at lunchtime today to pick up a copy for her, before I go to the airport to go home.
They were sold out.
I was also told that they had only a few in stock at the beginning of the week.
'It has been out for a year, after all'.
Ever curious, I hung around for 20 minutes as dozens of light category buyers - and some so light they could likely be classified as non-buyers - filed in for the one book of the year (or decade) they were ever going to buy.
It was was out of stock.
No doubt this has been going on all day.
All day hundreds of shoppers have walked in and out with $30 still in their pocket.
They buy books so infrequently they don't even know what they should expect to pay.
All those books could have been sold at full whack.
It will be back in on Tuesday, though.
By that time the one book a year buyers will get someone to order it online and they will have it delivered by Tuesday (this is Australia. It takes about a week to come from the US or Europe).
Or most likely forgotten about it.
They could have got a pallette load on consignment from the publishers, just in case.
Or a big poster in the window letting people know when it will be restocked and taking orders as a damage limitation tactic.
Have an empty table in the shop where the book would have been. Making it look scarce and popular.
It was on the shortlist.
They had one chance.
And the bookstore will complain about Amazon, killing their business.
They are doing a good job on their own.
Monday, September 22, 2014
(another) inconvenient truth?
Kahneman and Gigerenzer have clashed many times over the years with regard to their individual points of view on intuitive heuristics.
Why they are at each others throats is slightly puzzling to this reader, as they are both saying the same thing, for the most part.
When confronted with a problem that requires some degree of thinking, and where there is at least partial ignorance (ie just about everything) - some examples often cited are; choosing a chess move or deciding whether to invest in stock — decisions are governed mostly by intuitive thought, and the intuitive mind does the best it can with whatever information it can use.
In Gigerenzer's writing he identifies a number of smart heuristics - 'take the best' and 'recognition validity' are two.
Similarly, Kahneman would say that if the individual has at least some relevant 'expertise', she will recognise a solution, and that this intuitive solution that comes to mind is quite often correct.
But what happens when the question is more difficult and a 'skilled' solution or smart heuristic is not available?
DK would say that we instead answer an easier and related question, automatically and usually without noticing the substitution.
Indeed, attribute substitution is thought to underpin a number of cognitive biases and perceptual illusions, something GG and DK can agree upon, and is part of a larger set of shortcuts that form the effort-reduction framework as proposed by Shah and Oppenheimer, which states that people use a variety of techniques in order to reduce the mental effort of making decisions.
So, an easier question to answer might be one that allows us to simply look at our previous behaviour. If that feels related to the problem at hand we then feel reasonably happy proceed in-line with what we have previously done.
Cognitive dissonance is an uncomfortable thing, of course.
We want our attitudes to be in line with our behaviours.
Whilst we might believe that we are not the sort of person who drinks and drives, once a couple of beers have gone down and we have to get home we soon change our minds.
The behaviour has been done so that's impossible to change, so of course we want our attitude to be consistent and tell ourselves a story to rationalise it. It's just easier to do this.
I've done some of my own research that seems to indicate that despite having more access to information than at any point in history in order to do proper evaluation of alternatives in choice situations, we simply cannot be arsed and will use all manner of effort reduction strategies to dramatically simplify and limit consideration sets.
Especially, as it would appear from our studies, in categories such as insurance; where making the wrong choice could have pretty serious consequences. Yet the vast majority of buyers are happy to buy from an existing FS provider, or if they do switch; then the brands with biggest share of market and share of voice tend to pick up most of the switchers and new to market buyers.
So, for example, if the difficult question (or computationally complex attribute) asked is “Should Scotland be an independent country?”.
The reality is that for many voters perhaps an easier to calculate heuristic attribute might be “Am I already deeply invested in a pseudo-religious and political sectarian Unionist or Republican 'philosophy', (imported from somewhere else) and based on my allegiance to a particular Glasgow based football club?”
Despite the fluffy rhetoric about a nation engaged in a new passion for political discourse, debate and democracy, we fear that this description does not account for all of the voting public.
But for a number of the reported 1.4million Scots who are R*ngers supporters this will almost certainly be the case. Numbers for C*ltic are unavailable, recognition validity indicates they will be similar, though...
Whether those numbers are enough to have made a significant impact on the final poll we will never know. Perhaps they cancelled each other out, in which case an engaged minority held the balance.
What was clearly visible were the ugly scenes of from George Square last week.
Far from any intellectual jousting of political and national ideologies the scene resembled more closely the famous 1980 Scottish Cup Final. A sorry affair in which a narrow one-nil victory for the green half of the great unwashed resulted in a pitch invasion from the blue side, a mass bricks and bottles battle between thousands, and TV commentator Archie MacPherson prompted to remark 'its like a scene from Apocalypse Now'.
The Unionists won the vote, of course. Goodness knows what might have happened had they lost.
Why they are at each others throats is slightly puzzling to this reader, as they are both saying the same thing, for the most part.
When confronted with a problem that requires some degree of thinking, and where there is at least partial ignorance (ie just about everything) - some examples often cited are; choosing a chess move or deciding whether to invest in stock — decisions are governed mostly by intuitive thought, and the intuitive mind does the best it can with whatever information it can use.
In Gigerenzer's writing he identifies a number of smart heuristics - 'take the best' and 'recognition validity' are two.
Similarly, Kahneman would say that if the individual has at least some relevant 'expertise', she will recognise a solution, and that this intuitive solution that comes to mind is quite often correct.
But what happens when the question is more difficult and a 'skilled' solution or smart heuristic is not available?
DK would say that we instead answer an easier and related question, automatically and usually without noticing the substitution.
Indeed, attribute substitution is thought to underpin a number of cognitive biases and perceptual illusions, something GG and DK can agree upon, and is part of a larger set of shortcuts that form the effort-reduction framework as proposed by Shah and Oppenheimer, which states that people use a variety of techniques in order to reduce the mental effort of making decisions.
So, an easier question to answer might be one that allows us to simply look at our previous behaviour. If that feels related to the problem at hand we then feel reasonably happy proceed in-line with what we have previously done.
Cognitive dissonance is an uncomfortable thing, of course.
We want our attitudes to be in line with our behaviours.
Whilst we might believe that we are not the sort of person who drinks and drives, once a couple of beers have gone down and we have to get home we soon change our minds.
The behaviour has been done so that's impossible to change, so of course we want our attitude to be consistent and tell ourselves a story to rationalise it. It's just easier to do this.
I've done some of my own research that seems to indicate that despite having more access to information than at any point in history in order to do proper evaluation of alternatives in choice situations, we simply cannot be arsed and will use all manner of effort reduction strategies to dramatically simplify and limit consideration sets.
Especially, as it would appear from our studies, in categories such as insurance; where making the wrong choice could have pretty serious consequences. Yet the vast majority of buyers are happy to buy from an existing FS provider, or if they do switch; then the brands with biggest share of market and share of voice tend to pick up most of the switchers and new to market buyers.
So, for example, if the difficult question (or computationally complex attribute) asked is “Should Scotland be an independent country?”.
The reality is that for many voters perhaps an easier to calculate heuristic attribute might be “Am I already deeply invested in a pseudo-religious and political sectarian Unionist or Republican 'philosophy', (imported from somewhere else) and based on my allegiance to a particular Glasgow based football club?”
Despite the fluffy rhetoric about a nation engaged in a new passion for political discourse, debate and democracy, we fear that this description does not account for all of the voting public.
But for a number of the reported 1.4million Scots who are R*ngers supporters this will almost certainly be the case. Numbers for C*ltic are unavailable, recognition validity indicates they will be similar, though...
Whether those numbers are enough to have made a significant impact on the final poll we will never know. Perhaps they cancelled each other out, in which case an engaged minority held the balance.
What was clearly visible were the ugly scenes of from George Square last week.
Far from any intellectual jousting of political and national ideologies the scene resembled more closely the famous 1980 Scottish Cup Final. A sorry affair in which a narrow one-nil victory for the green half of the great unwashed resulted in a pitch invasion from the blue side, a mass bricks and bottles battle between thousands, and TV commentator Archie MacPherson prompted to remark 'its like a scene from Apocalypse Now'.
The Unionists won the vote, of course. Goodness knows what might have happened had they lost.







