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MONDAY MORNING QUARTERBACK DIGEST #34

November 12, 2018

Monday Morning Quarterback Marketing Digest. Here are some marketing and research thoughts for the week. Email me (Mark@dennettgroup.com) if you need more info on any subject.

THE YOU TUBE SOLUTION – I had to turn off the “Maintenance Required” light on my car. Did I look at the manual? No, I just went to You Tube. Apparently, I am not alone. A new Pew survey finds that roughly half of You Tube users say it is very important for helping them figure out how to do things. And around one-in-five You Tube users say it is very important for helping them understand events that are happening in the world. Bottom-line: You Tube is not just for entertainment, it is increasingly becoming a vital information source. Just another reasons YouTube must be part of your marketing effort. Contact us and we can work with you in harnessing the power of You Tube for your business.

THE DOWNSIDE OF OUTSOURCING – Many businesses save money by outsourcing. There is a trial going on right now that is testing the wisdom of 100% outsourcing. Pabst Brewing and MillerCoors are going to trial today because MillerCoors wants to end its agreement to brew Pabst’s beers. They basically brew, package and market all Pabst beers. They are willing to continue, but they want a 300% increase in fees. Why is this important to you? Because outsourcing production or marketing often leaves the success of your company in other hands, especially if the market is dramatically changing.

Because I live in Oregon, it is easy to believe that more and more people are enjoying beer. But U.S. beer sales are actually down from 213.1 million barrels in 2008 to 204.2 million in 2017, according to the Brewers Association. MillerCoors and Anheuser- Busch, the two biggest U.S. brewers, have been losing business to local craft brewers, imports, and wine and spirits in recent years, according to the Brewers Association.

“The beer market has shifted and beer lovers are increasingly demanding more variety, fuller-flavor, and local products from small and independent producers,” said Bart Watson, the Brewers Association’s chief economist. Is your market changing? Do you know how to recognize and react to these changes? This will require some research and we can help.

YOUR GUT VS. DATA – The Wall St. Journal recently reported that Netflix’s executives had a challenge in trusting their data or being kind to Jane Fonda. Their algorithm revealed that U.S. subscribers were more likely to click on the image promoting the comedy “Grace and Frankie” if it only included an image of co-star Lily Tomlin. Netflix eventually decided to keep the picture of Fonda. Why? They decided to trust their got, not data. Interesting marketing lesson here. Most small businesses rely 100% on their gut, and totally ignore data or research. The best decisions are made when you work with both – your gut and data.

SOCIAL MEDIA’S DARK SIDE – We are currently working with a variety of companies in improving their social media marketing. But increasingly, social media has a dark side – a turn off too many people. Case in point: Tim Kendall, early architect of Facebook’s business model and past president of Pinterest, has deleted the Facebook app from his phone for reasons that are becoming increasingly common: a sense of anxiety and dissatisfaction after viewing other people’s filtered lives, frustration at the divisive political discourse and harassment from trolls. Mr. Kendall report to the Wall Street Journal that social media was producing unwanted negativity in his life. “I felt bad about myself. I felt inadequate,” he says. “I felt like most people had better lives than I did on every dimension.” Recently Kendall invested $7 million to fund Moment, an app that helps reduce the time people spend on their phones. His position isn’t that social media is bad, but that users understandably struggle at times to find the right balance for it in their lives.

THANKSGIVING WARNING – As we gather with family and friends, remember, talking politics can add a lot of stress and frustration to the celebration, especially if you have more liberal friends. A national survey by Pew, conducted Sept. 24 to Oct. 7, finds that Americans have become more likely to say it is “stressful and frustrating” to have political conversations with those they disagree with. The change in opinions has come largely among Democrats: 57%, up from 45% two years ago. By contrast, Republicans’ feelings have changed very little. About half (49%) continue to find it stressful and frustrating. Overall, 53% of Americans say talking about politics with people they disagree with is stressful; only 45% say such conversations are usually “interesting and informative.”

Until next week, enjoy a beautiful Fall week.

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