A GAME-CHANGER HAS ARRIVED FOR TV

Five million people watch TV shows online. Called Zero TV people, they now have a new friend, ABC. The network has announced it will be the first broadcast network to go live on the Internet on a full-time basis. “Watch ABC” will debut this fall and allow you to watch ABC from mobile devices and tablets. Initially, it will only be available to people who already have a pay-TV provider. Also, it won’t be available in every market. But it is a game-changing innovation, make no mistake about it.

Anne Sweeney, co-chair of Disney Media Networks and president of Disney/ABC Television Group, states, “This announcement represents a defining moment in technology and distribution, as well as for our advertising and affiliate partners, as we ensure that our high-quality content is available to viewers on a variety of devices.”

The “Watch ABC” effort represents a dramatic shift in the way networks view the Web. While the TV industry has been forced by the public to put more content online, it has mostly used online for video on demand, not live TV. The only thing that is holding back a total shift of TV to the internet is the lack of high-speed internet access in the majority of American homes and the creation of a business model that generates substantial online revenue. By the way, in my home base of Southern Oregon, there is only one local station that seems to grasp the power of the internet: KOBI (California Oregon Broadcasting). More later.

A PLACE WHERE SALESPERSONS DON’T HELP

What store do people refer to as, “that blue and gold store where the salesperson usually can’t help you”? It’s Best Buy according to Colin McGranahan, retail analyst at Sanford C. Bernstein. Roughly 20% of all consumer electronics are now bought online according to Best Buy. But many shoppers will always want a brick and mortar spot to try out products and have someone help them. The challenge is to make sure that a customer really feels like they are being helped!  For retailers not just to be “showrooms,” people need to love the store’s personal service so much, they buy.

Turning online customers that browser local stores into local buyers must be the training focus with your sales team. But it is not just about a sales closure rate, it really is about customer satisfaction. If you don’t improve that, start looking for a new business that doesn’t rely on customers (you won’t find one!). Unfortunately, many small businesses discover their real customer satisfaction score only when most of their customers have left.

DESPERATION PARTIES

Right now TV networks are holding their “upfront” meetings with major advertisers and agencies to generate interest and sales in the coming season’s programming. Back in the 80s and 90s, when I was a partner in a Southern Oregon ad agency, local stations also held lavish upfront parties too. Those days are gone. Yes, some agencies and advertisers get invited to smaller, one-on-one presentations, but don’t expect a party atmosphere.

Local stations and TV networks are desperate to find more viewers. The Wall St. Journal’s William Launder notes that a huge number of pilot episodes have been developed this year in an effort to find something that will stop the rating slide. New York Times also created a quick round-up of what shows worked and what shows didn’t over the past season. It’s a fun read if you are a TV fan.

To get a perspective on why TV ratings matters, Mail Tribune’s Digital Manager, Greg Thompson, offers an interesting blog on research of local media choices. It has a bit of a digital slant, but it is certainly worth reading if you buy local media.

HOW MANY CUP CAKES CAN YOU EAT?

Back in 2011 the craze for $4 gourmet cupcakes was peaking. The dessert had become a cultural phenomenon and selling expensive concoctions was all the rage. Today, the leading national chain, Crumbs Bake Shop Inc., and its 67 locations are crumbling.

Now, I love a good cupcake. But the truth is that most of us are not going to have one every day. Also, making cupcakes is pretty easy, so there is no barrier to entry and the field is now saturated with competitors, including individual bakeries, chains and grocery stores. Some experts in the cupcake world dispute the notion that gourmet cupcakes are losing their appeal. They believe the category isn’t going away.

But here’s a marketing fact. If you build a business on a hot trend, someday that trend won’t be hot. All business trends are time sensitive. Part of any marketing plan has to be a plan for adapting and creating new markets when your core product loses its appeal. What are your plans?

WHEN BEHIND, DON’T GIVE UP

Reflecting on my Samsung post (May 3rd, When You Are Leading, Lead More), Barnes & Noble’s Nook HD is facing just the opposite challenge. Nook revenue is down 26% for the quarter ended in late January. So, they are adding Google’s Android app store along with other Google services such as Gmail and Google Maps to Nook HD readers. They are desperate to be more competitive with rival tablets.

This move isn’t entirely risk free. The Android app store includes a Kindle Tablet app, which consumers could use to bypass the Nook store altogether. But when you are behind, taking risks is just what you have to do.

The most interesting news today, reported by Wall St. Journal’s William Launder, is that Microsoft is considering buying the digital assets of Nook Media (e-books, Nook e-readers and tablets) for around $1 billion. This could give a lifeline to Nook and give Microsoft a stronger tablet product line. As I said, when you are behind, don’t give up, keep looking for strategic partnerships.

CAN MARKETING DO-OVERS WORK?

J.C. Penny is the marketing story that just keeps giving.  Now new management is trying to do something that Netflix did it when they raised their prices and then rolled them back. Coke did it decades ago when New Coke failed. J.C. Penney wants a marketing do-over and is saying they are sorry and want you back.

That’s the social media pitch on YouTube and Facebook with the firm’s “It’s No Secret” campaign showing women working, playing with their children and doing everyday activities. “Recently J.C. Penney changed,” a voiceover states. “Some changes you liked, and some you didn’t. But what matters with mistakes is what we learn. We learned a very simple thing, to listen to you. Come back to J.C. Penney. We heard you; now we’d love to see you.”

Interestingly, Penney knew 17 months ago that their core customers didn’t like Ron Johnson’s changes. As reported in this blog numerous times, they had plenty of research and comments from customers that clearly indicated that “traditional” customers didn’t like the new JCP (they are also tossing that re-brand, going back to J.C. Penney). But they also had comments that a lot of new people were now shopping for the first time at JCP.

That’s the big question with a marketing do-over. How do you keep your new customers while appealing to customers that left you because you disrespected them – when both groups may want something different?

That’s why consumers and marketing insiders are mixed on whether the retailer’s latest efforts are savvy marketing or destined to cause more damage. An online AdAge poll showed that 70% of marketing folks think asking for “forgiveness” is a good idea and that Penney is on the right track. But what changes are they going to make? If you say you are listening, you’d better show proof that you are.

What do you think? I would love to hear your views on the new campaign.

WHEN YOU ARE LEADING, LEAD MORE

One of the core beliefs of my PowerShift Marketing approach is never take your foot off the gas of your marketing effort. A great example of this is Samsung. They recently announced the launch of a new eight-inch tablet and a new smartphone built to withstand harsh environments, which should appeal to business and government (a segment they have been targeting). These new products will supplement the Samsung seven-inch and 10.1-inch models currently in the market. The company also plans to launch a more rugged version of its flagship Galaxy smartphone and a compact version of the phone.

Samsung’s strategy is to develop a range of products to dominate the mobile market. It seems to be working. Strategy Analytics, a market research firm, said the company’s smartphone shipments grew to 69.4 million units in the 2013 1st Quarter, giving it a 33% market share, almost twice that of Apple.  Coasting may make sense in a soapbox derby, but it never makes sense in marketing.

What are you doing today to keep ahead of your competition?