Buyer Beware

It is quite interesting how different today’s consumer is from just a decade ago. Go back further and the difference is beyond compare.

I used to only buy (or want to buy) Sony products. It was not some fetish I had with the Sony brand it was because they were an innovative company producing high quality products. They actually invented new technologies (usually in partnership with another company). From the Walkman to the Discman to CD players and TVs Sony was king.

This allowed Sony to command a premium for their products...until a major force threw Sony’s world upside down -- low cost competition. Companies were popping up across Asia that had the means to manufacture for pennies on the dollar (or Yen).

To the consumer these products coming from Lucky Goldstar (now LG), Samsung and others appeared to be quite the same. In reality they were not but the consumer didn’t know better -- they just knew the price was much easier to swallow. (These companies make high-quality products today. The statement above references their status in the 80s ish time frame.)

“Hmm….not sure who they are but the technical specifications look about the same and it is 30% cheaper.”

The average consumer who didn’t realize why the product was cheaper changed his/her tune and started buying based on cost. This was true in Food and Beverage as the Private Label industry began to move beyond “the cereals in bags on the bottom shelf” to a full assortment of products. One can easily argue today the quality from the Private Label industry (Publix, Kroger, 365, Trader Joe’s) is just as good if not better than brand names.

* Little known fact - several brand name manufacturers in Food & Beverage also market the exact same product as Private Label as a way to diversify their reach. Next time you compare a store brand and a premium brand remember, they may be the exact same product in a different package.

The apparel industry has seen this with the rise of Walmart and Target pushing ever cheaper clothes onto the buying public. Department stores now have their own brands (really just contract manufacturing with the same company that makes their competitions’ clothes) pushing prices even lower. The apparel industry is actually quite fascinating when you look at the impact of price sensitivity. Pricing from the manufacturing facilities in Asia is so cut throat a brand could contract with a plant in China in January then move it all to Thailand and then to Ecuador all in the pursuit to save a penny here and there.

There is very little loyalty anymore unless a brand can demonstrate over and over a level of service or reliability that is unmatched in the industry. Even still, only a small percent of consumers (let's be real, they are called fanboys) will stick with that brand if there is something less expensive across the aisle.

Isn't it Ironic...

The irony in all this is the cause. When you hear retailers complain about the price sensitive consumer and the impact this shift has on their margins you should chuckle. The fact is retailers should look in the mirror and point a fair chunk of that blame right back at themselves.

As the consumer evolved into a price conscious entity the department stores reinforced this behavior. Today we expect to get great deals. We expect seasonal sales. Retailers and manufacturers have quite literally programmed the consumer to wait for sales.

• When do you buy a grill? You buy it in the Fall because it is cheaper.
• You shop for clothes during sales - you seek out the sale and in many cases will ignore the merchandise at regular price.
• You scour the web for the best possible price before pulling the trigger.

The average consumer does not care about the brand anymore. Sure they would like a Sony TV but they will happily get a Vizio if the price is right. Similar to private label in the food & beverage industry, tech companies are finding themselves competing on a more level playing field than ever. That Vizio is probably just as good as the Sony to average consumer's eye.

One industry that is bucking this trend is the airline industry. They are doing just the opposite - they are removing supply from the system and raising prices. And you know what...good for them. The price war was killing the airline industry and when airlines start making cuts planes are just a bit less safe.

Shop Wisely

What does all of this mean for the average consumer? Nothing really, you will still purchase the least expensive products that you deem to be a good value but, Buyer Beware…

• Prices for some goods are artificially inflated so when a product goes on sale the retailer / manufacturer can still make a profit. Tricky!
• BOGOs are not always a good deal. Be it for shoes, crackers or milk, these deals are not always what they appear. Look at the cost per unit to determine the real value.

There are several reasons one product is less expensive - you need to understand them to know when you should exercise caution. 

• Lower Manufacturing Costs - except for the rare product these days, manufacturing costs are fairly similar between companies. Everyone has the same access to cheap labor their competition does. Many are all buying components from the same companies as well. (Plug for Motorola for assembling the Moto X in the U.S.)
• The Class System - Ever noticed that many products, especially in technology, will have multiple versions of the same (read: similar) model? If not, they do. Some are easy to determine - model XYZ-123 vs. model XYZ-223 and model XYZ-323.
• Components Compromise - From apparel to technology to automotive, the cost of a component greatly impacts the final amount you pay. The genius companies have managed to use so-so components and charge a premium for them. That is marketing at its best...which leads me to the last factor:
• Marketing - Brand awareness costs an arm and a leg. This adds to the price of your product. Be mindful of where you are paying just for a brand’s name to be on your product and where you are paying for quality.

Social Media Manager Dead? - It Never Should Have Existed

In a recent article by Ryan Holmes, president of HootSuite, he states the Social Media Manager is dead. This got me thinking...should the position ever have existed?

The answer is no. 

The Social Media Manager position was a catch all by companies that just did not get it and thought they needed young, digitally connected employees to manage their online communications. 

The position is dying and not just because social is everyone's responsibility. The position is dying because the young, hip employees in charge of social do not understand how business is run; they do not understand the importance communications play in corporate success; they do not understand the ramifications of an errant tweet; they lack the ability to be strategic and align their actions with corporate goals. It's not their fault - they just haven't been prepared for those responsibilities. Instead it is the hiring company's fault for putting them in that position.

As companies and marketing departments have become wiser (I use that term loosely) they have realized, as the article points out, social media is just one channel in a broader mix of communications. Those that do social right also realize they need someone with a real understanding of the business and market available to make social engaging. You cannot hire someone in their mid-twenties and expect them to engage in a meaningful conversation about the business and market. 

Regardless if you are in a BtoC or BtoB environment you must engage - something the majority of companies still lack. The reason is two fold. First, the people in charge of social don't have the experience/understanding of the market to respond. Second, companies are not willing to staff / pay for the right employees to manage these communications. This is why social is becoming the responsibility of everyone. 

Here is the full article. 

What do you think? Is the position dying or maybe dead already? Should it have even existed to begin with?

Part 1. Getting to Know Google +

At 10 million and counting, the buzz (pun intended) created by Google + has been tremendous. The first wave (get it...) to embrace the new social service were technology focused early adopters which I believe has helped shape where the social service stands today. As more mainstream users received invites everyone started to hear questions such as "What is this?" and "How do I use this?" This was soon followed by "I don't want to keep up with 3 social sites." and "This isn't Facebook."

As people have asked questions, I've tried to answer them and eventually found that most of the questions had the common theme of how do I use this. So, thanks to many amazing people on Google + I have compiled some of the best tips and advice I could find. This will be a multi-part post that will continue to build as more is learned. If you have tips you would like to share, please leave a comment below and I will include them.

Comparisons


I keep hearing the service compared to Facebook and Twitter. Hell, I've done it myself but I think this is wrong.

Facebook
I liken Facebook to the TMZ of the social world. It's a lot of gossip with little substance. The Facebook social world is like a horse walking down a road with blinders on. All you see is what is in front of you with no ability to reach beyond and explore new vistas.  Facebook was great for reconnecting with high school and college friends (and not so friends. You know, the ones you are now pretending you were friends with). There is no real engagement in the News Feed. Then there is the privacy issues with Facebook. Thankfully I've never been one to use any apps/games, etc. Beyond that...every time Zuck and his team rolls out a new feature, they change the privacy settings on you. Facial scanning is one of the most recent incidents.

Twitter
I hate Twitter. There, I said it. I may be in public relations and expected to be all over the social scene but there is nothing more annoying to me than Twitter. For personal use, I just use it to track news. Most of the people I follow I don't really follow. I just did a courtesy follow. They don't really care what I have to say and I don't want to know what they have to say in 140 characters or less. Twitter, to me, is a news ticker. Quick bits of information that scroll by at lightning speed.

LinkedIn
I am going to throw LinkedIn into this post because I see a lot of potential for Google+ to take some of the wind out of the business network's sails. I've been on LinkedIn for quite some time and the most useful part of the site is the Groups. The company I work for has a closed, customer only group great for sharing ideas and best practices. There are thousands of open groups where people ask questions and share ideas. The status feed in LinkedIn is where it is very weak. I don't believe this is the fault of LinkedIn, in fact I don't think the service was designed with that in mind. It is more about making connections and asking questions. The online version of the evening networking event. The use of Circles and upcoming Business Pages in Google + has the ability to be a more dynamic place to network with business colleagues.

Now that we have some background out of the way, let's move forward.

Google +
What is Google +? In my eyes, it is whatever you want it to be. It can be a closed social experience a la Facebook and LinkedIn or it can be a completely open to the world conversation a la Twitter. Or, even better, it can be a combination of the two with a heavy dose of exploration and collaboration. One of the first things to do is exactly what Christina Trapolino says in her post, "Stop Treating Google + like Facebook."

Before you go any farther in Google +, here are my steps to make it a success. (Please let me know if you would add or remove any of these.)

1) Profile. Get your profile in order. Fill out as much as you like. Note that for every box, you have the option to say how public you want that information. No more searching for a privacy setting. You set it as you go. Under the Photos tab, update how photos are shared and who can tag you. Also, I would recommend against allowing the geo tag information in your photos to be shared. By default this is off. Good call Google!

2) Circles. Circles are how you interact, learn and experience things in Google +. Start off by creating a few circles. Again, Christina has some great advice for those stuck on the FB crack for how to create a Facebook Feed circle. Vincent Mo of Google + has 3 easy tips for Circles (read post here). Face Reality, Make Circles for Sharing and Make Circles for Reading. I have found this extremely helpful. I have circles of people that I am following (who I don't know but find their content interesting) in Circles grouped by subject matter that I just read. Then I have 4 circles (so far) just for people I want to share with. Each circle is a different level than the previous. For example I have a basic Friends Circle where I share most content. I then have a Circle for those following me and I follow but we don't know each other. We share similar interests so I figure they don't mind some of my posts. Then I have a Work Circle. This ensures people I work with don't see the majority of my posts unless I want them to. I do have a tendency to get a bit vocal about some topics...

3) People. Now it's time to add people to your Circles. This is actually very easy. Click on the Circles button at the top. Right away you will notice Google has integrated your contacts (if you are a Gmail user) and will let you know which of these are already on Google +. If someone you know isn't on Google + yet, you can invite them here or by clicking the Invite button on the right side of the homepage. You can also search by typing a person's name into the search field. Once you find a person you will be taken to their profile. Click the red box to the right and you will see all of your Circles appear. Simply click which Circle to include them in. This is the easiest way to add people you know. The beauty of Google + is the ability to add people you don't know to your Circles. The simplest way to do this is to start reading posts from other people you are connected with and see who they are connected to. Also, try searching for topics in the search box I mentioned before. Using this method you will find people with similar interests.

Navigation. The left side of your Google + page is your launching pad to start exploring. All of your circles are listed here allowing you easy access to the content you want to read. Start clicking through and you will see just how useful this setup is.

OK. That's it for Part 1. Next I will take a look at Sparks (aka Google News in Google +), +1, Huddle, as well as the mobile integration. In part 3 I will start to explore the integration with other Google services and what I would like to see. Along the way, I'll add in additional resources to people's posts I find very interesting and helpful.

Additional Resources
Google + handbook: A community driven guide up on Google Docs.
Google + Guide: 15 Tips for Newbies
Google +1 Button
Google + Steers Clear of Privacy Missteps

A Tablet for You, A Tablet for Me

The tablet war, as some has called it, is heating up as a slew of tablets are getting ready to hit the store shelves including the Blackberry’s Playbook, HP’s Slate, the iPad 2 and countless Android based tablets.With so many choices it can be quite confusing.

The latest from Apple is industry darling and will dominate sales for some time to come. Towards the end of this year that very well could change as price sensitive consumers see many less expensive tablets flood the market and early adopters feel buyer’s remorse (what, you mean I can’t take a decent picture with this thing?). The other day I took the plunge and went into a Verizon store. Clearly Verizon is smitten with its new relationship with Apple and the iPad was quite prominent (same with Best Buy) but I went straight to the Android section where the 7 inch Galaxy Tab and 10 inch Motorola Xoom were on display. Within 20 minutes I was walking out of the store with the Xoom. The following is (to me) an objective look at the Xoom and comparing it to its main rival for now, the iPad2.  Note, this is based on my, albeit limited, experience with the iPad as well as conversations with current iPad owners. Without making you wait until the end to read my verdict I’ll give it up here. They are both amazing pieces of technology and there really is no winner. Instead the solution that is best depends completely on how you plan to use it.

Hardware

The Xoom and iPad2 are fairly equally matched. However, the edge here does go to the Xoom (see chart below). This actually surprises me because I truly expected Apple to wow us with the iPad2 but instead the evolution was fairly mundane. Take for example the camera. The rear camera is .97 megapixels, about the quality of an early 90′s digital camera. The front camera is only .3 megapixels. Why did Apple hold back when the iPhone 4 has such an amazing camera? Tablets coming in the next month will make these specs look pathetic in reality and we can expect the iPad3 to improve quite a bit but that is 12 months from now. So, before you go stand in line, you may want to wait another month because there will be some pretty cool innovations coming (like 3D viewing and 3D HD recording along with more 4G compatible devices).

Spec	iPad2	Xoom
Screen	9.7 inch  1024 x 768	10.1 inch  1280 x 800
Camera	.3 MP front, .9 rear  Yes, those are decimels	2 MP front, 5 MP rear
Processor	dual core 1ghz	dual core 1ghz
Weight	1.35 lbs	1.5 lbs
Wireless	WiFi, 3g, Bluetooth	WiFi, 3g, 4g, Bluetooth
Connections	standard Apple connection to PC / Mac	USB, HDMI, Bluetooth transfer
Expansion	None	Up to 32 Gb SD card
Memory (storage)  Memory (RAM)	16, 32, 64 Gb  256 Mb	32 Gb   1 Gb
Sound	Mono	Stereo
Thickness	.34 inches	.5 inch

Winner: Android

The Environment

Apple’s iOS is considered the simplest of the OSes available. It is icon based and has been referred to as a simplistic, yet elegant launcher. You find the app you want and open it. The OS is really just a layer for the apps to reside. You don’t interact with it. The one area I have heard complained about is the notification system which, when compared to Android devices, is pretty bad.

Android is a different experience with widgets and customization based on how the user wants to interact with the device. Does that mean it is more complicated? I think that is a baseless argument. For example, my 5 year old son figured it out in the time it took me to turn around to see he had the device in hand. It was on, the lockscreen bypassed and he was reading Pulse, shortly followed by, “where is Angry Birds?” A little while later he was on YouTube watching volcano movies. To me, it has to be pretty easy for a 5 year old to pick it up and figure it out in less than a minute.

Multitasking is something Android has been able to play up since the beginning and the enhancements in Honeycomb (Android’s first tablet OS) are amazing. When you switch applications the previous remains on task. For example, I am writing this in Documents to Go and need to double check my facts so I switch to the browser. When I find the information I sometimes go back to Word to paste it and when I go back, the next website I clicked on before switching is loaded. That is a great timesaver. Also the browser’s multiple tabs can keep loading, etc. while I work in another tab. In iOS each tab has to refresh, slowing progress.

If you are at a PC / Mac the iTunes integration is fantastic but you have to be there. For as innovative as Apple is I would expect more cloud-based integration such as updates, etc. For media, apps like DoubleTwist have tried to replicate the iTunes experience on Android but significantly fall short.

Speaking of media, this is another place Apple wins. The media look and feel is close to flawless. Honeycomb improves the experience a lot but still has room for improvement. I think once Google launches its music and movie service this will change. One thing I do like about media on Android is Amazon. From within the app you can browse and purchase songs (50 cents cheaper than iTunes per song and up to $4 cheaper for albums) and they are right on your phone or tablet. No synching required. Same with books.

Winner: Tie – Beauty is in the eye of the beholder

Flash

This one I am going to give its own section, though it could be a part of the environment. Personally, I despise Flash and can’t wait for the world to move on to HTML 5. The problem…that move will be quite some time away. There are so many sites that require Flash it is incredible. Flash support in Android is huge because the entire web is available to you, not just the mobile versions of sites, for those that have them. Unfortunately, we are stuck with Flash for the foreseeable future so we might as well embrace it.

Winner: Android

Applications

Here the iOS wins hands down. There are 350k apps versus Android’s 150k but that is expected. This will change though as I believe there is a ceiling to how many apps any one ecosystem requires/can support. In addition, several surveys have shown app developers are more/equally interested in and investing in Android application development. On top of this, RIM just announced that the Blackberry Playbook will run Android apps. That only increases the available audience which will drive further developer interest. Still, iOS has a ton more apps available right now. I’m sure there are apps I would like to have on Android that are only on iOS but just don’t know what they might be…even though my friend James is always mentioning an app he has, each one of interest is available on Android.

Winner: iOS

As I started this post with, it depends on how you plan to use your device. Do you want to surf the web, play games and listen to music? Get the iPad2. If you, like me, want something that can almost replace a laptop without the annoyances of Windows or the premium price of a MacBook, the Xoom (and future tablets based on Android and likely WebOS and Blackberry) is the way to go. I have written this entirely on my tablet and for once, this past weekend, I didn’t have to turn on my laptop to work editing a whitepaper, emails and drafting press releases.

I would like to see more tablet specific apps but Honeycomb has only been available for 2 weeks. Luckily the phone apps scale really well. I’ve also found myself using the browser for apps like Facebook instead of the dedicated app. The full web interface is just better than what an app can provide, regardless of the platform.

The Verdict

I am sure some of you reading this fully expect me to say the Xoom/Android is the way to go but I am not. Yes I like to promote Android. Yes I can’t stand the Apple ecosystem in that you are forced to work through iTunes, there are no in app purchases, they price set vendors meaning a developer cannot offer a product or service at a discount elsewhere (many content owners such as Sony Music, Amazon and Real Networks are threatening to pull their content and anti-trust suits are in the works), and developers / content owners must fork over 30% of revenue to Apple (Google, by comparison, takes 10%). Even with all of that said, I want to be as objective as my mind will allow.

The Xoom has its issues. For one the software needs a little refinement. I stress a little. When I bought the T-Mobile G1, the first Android phone, it had issues and should not have been released when it was. After the first software update was pushed by Google and T-Mobile over the air, the phone greatly improved. Honeycomb is nothing like that. This is a beautiful piece of software and the responsiveness is amazing. When the first updates flow out for this, it will be truly amazing. Will a typical consumer notice the issues I’ve found? No, likely not. I’ve rooted my phone and run custom software on it so I am always looking out for bugs. That’s the techie in me…

The battle this year is also about the enterprise and based on what I’ve experienced so far, the Xoom is more capable. As I mentioned above, I have started to use the laptop my company provides much less. Kathy probably thinks I got this just as a new toy and she is partly right but I have used this a lot for work and as the application library grows, I know I will use it even more.

In the end, it is all about you and what you want technology to do for you and what you want to do with it. There are subtle differences there but they make a huge difference. The advancements we’ve seen in technology only means we get to enjoy the fruits of some damn smart engineer’s labor, so go out and enjoy it.

Social Commerce: Are We Too Focused on One Platform?

The other day I received a marketing email from a well respected analyst firm which I consider to be quite ahead in the area of social media. The firm was promoting its upcoming social commerce event. My area of focus now is the supply chain so the event doesn’t have direct relevance to me but nonetheless it is quite interesting–how will/should retailers and manufacturers respond to the shopper’s desire to have a personalized experience and what role will mobile technologies play. One item stood out to me and its not just this email that falls victim to focusing on one particular mobile platform.

The iPhone is without doubt an amazing device built on a solid, user-friendly platform (though you may need to stand on your head with only 2 fingers holding the phone to stay connected). It receives the most hype. As Dana Blankenhorn highlights in “Android Froyo and Why it Matters“, traditional media and bloggers jump hoops to cover any Apple announcement but seem to ignore the the developments of other platforms such as Android, Blackberry, WebOs, WinMo, and the number one OS on mobile phone, Symbian.

In no way do I discredit the importance of iOS4 and the opportunities it presents to retailers, manufactuers, service providers, etc. If you look at the combination of these operating systems, the total potential for mobile social commerce is amazing. In the U.S. alone, more than 41 million people use a smartphone (RIM still holds a commanding lead with 41.7 percent of the market). In the first quarter of 2010, more than 54 million smartphones were shipped worldwide, according to research firm IDC. From the chart below, it is clear there is more than one player.

Is the media creating an unnecessary hype that is detracting from the greater market potential or will developers overlook the hype and see the potential in the other platforms? My guess is the developer community looks beyond the hype to see the actual revenue potential available to them. In the end, this could be a three-legged race between RIM, Apple and Android. WinMo 7 definitely looks impressive but I don’t know if it really has the legs to compete, especially if what I have read about BlackBerry 6 and the shift to appease the consumer market is true.

How does this relate to PR you ask? Well, I have seen many fancy proposals and ideas surrounding campaigns and app development focused on one platform. Be aware fellow PR folks, a multi-platform/channel strategy is what you need to truly reach the mass market.

Full disclosure: I own an HTC Droid Incredible and love the device. Personally, I am all about Android but professionally I see there is a need to target multiple audiences to gain the maximum impact.

It’s Been A While…And SEO is for Real!?

It has been quite a while since my last post. Going on six months actually. If I recall correctly from my own preachings to clients…never go silent. Oops! Once you go silent the conversation stops and interest is lost. Hopefully I still have at least one reader left out there!

Since my last post I have started a new job. I have gone corporate, focused on one goal for one company. It is quite an interesting change of pace but mostly it is a change in perspective. My role has also evolved into more than PR and AR to include advertising and some traditional marketing functions such as whitepaper development and working with the web folks to improve our SEO.

SEO is an interesting term. I have heard many call it snake oil (there are quite a few posts dedicated to this) while others swear by it. (For a laugh, check out SEO is Bull$&@*, SEO is Snake Oil, SEO is a Waste of Money).  I am not sure if I am quite sold yet on SEO. I definitely see some benefit to it but as online noise increases does SEO lose its effectiveness? I mean, how many times can you put in a term to increase your rankings against 100,000 other sites before you get penalized.  To an extent, SEO is still a buzz word, one people like to drop to sound smart. You know the type, those that use words they have no understanding of to “fit in”. (Social media comes to mind).

Working directly with the web team I have seen first hand how legitimate SEO (not the black hat mail order bride stuff) helps drive sales leads. Here are some things I have found to be effective. While they are a bit basic, you would be surprised how many companies are not engaged in these.

• Understand your key words, what prospects are searching for and incorporate these terms into your site. Don’t go overboard as many small companies tend to do. Keep it real.
• Content, Content, Content. What is your industry talking about? What are your customers’ pain points? Create educational (not sales) material that addresses these. While the material will likely be in PDF format, make sure to create plain text abstracts for each asset. These are more easily indexed.
• Get rid of PDF news releases. For one, opening a PDF is a pain unless you have a new computer. Offer the asset as a new, stand alone page. You can offer the PDF version for download but it shouldn’t be the main link.
• Keep the conversation going. Don’t do like me and fall off the face of the earth for 5 months! Want to incorporate social media into that ongoing conversation? Check out this post from Steve McAbee over at Wunderkind, “Developing a Social Media Plan: Research, Strategy and Tactics.”

New Research on the Social Media Engagement of Georgia’s Top Companies

Wunderkind Public Relations announced today findings of a research project into the social media engagement of Georgia’s top companies. The 2009 Social Media Engagement scorecard takes a look at the top 25 public and top 25 private companies in the state and basis their engagement level on the use of five tools: LinkedIn, Facebook, Twitter, Blog, and YouTube. The research gave these 50 companies a D grade meaning, on average, each company used 2 of the services. Only 4 scored a perfect score.

Social media is still new to the corporate world, especially those in B2B circles. While the score was low, it does show companies are engaging and testing the waters to determine how this medium will provide the greatest return on investment. Some which scored low may never reach a perfect score because services like Facebook don’t reach the audience they need. Either way, there is a lot of room for growth and as more companies test the waters each will figure out how social media can impact them and the best way to create an online dialog with customers and prospects.

Here are some of the stats from the scorecard:

• LinkedIn is far and away the most popular social networking service; 96% of all companies have a LinkedIn page, followed by Facebook (42%) and Twitter (38%)
• Only 9 companies received a SME score of 4 or better
• CEOs lack engagement with an average SME score of .26
• 12 companies have a dedicated YouTube channel while only 7 have a blog
• Only 1 CEO contributes to the company blog
• Private B2C companies led the pack scoring a 3.2 on the SME scale while private B2B companies trailed with a mere 1.6
• 33 of the 50 companies on the list are B2B
• 1 company is completely disengaged

Disclosure: I am employed at Wunderkind Public Relations and participated in the research.