Real-World Advertising

This week, Alaric Fairbanks introduces us to some of the more unusual forms of advertising to be found on the streets of China’s capital city.

Advertising is known as and certainly likes to be considered as a creative industry. Here in Beijing, many advertising styles would be familiar to the average visitor from the UK and probably most other countries in the world. Beyond these common approaches, however, there is sometimes an amazing creativity at work that is often overlooked – that is in finding or constructing physical platforms for ads, whether they are posters, screens, multi-media or sound. Notable examples include moving advertisements on linear screen on the walls of the Beijing underground which follow the train, and the TV screens that seemingly festoon every lift in every Beijing office building and shopping centre.

Beijing is never a quiet city, and the pervasive advertising ranging from the expected to the unexpected, the weird and the intrusive to the illegal, is just part of the environment. The more common approaches include giant screens, moving adverts, flyers and megaphoned tape loops, and they are all competing for your attention, but with familiarity it all becomes just more background noise. I did say that there is creativity at work, and sometimes this can startle or bemuse. One of the more unusual ploys for new advertising space in Beijing has been ‘fake’ bus stops. These have been the subject of several campaigns to eliminate them, but some bus stops are, of course, supposed to be around.

The rationale behind these fake bus stops was to provide a vehicle (if you’ll excuse the pun) for selling advertising space. Consequently, entire bus stops, including signage and shelters, and complete with advertisements, were erected and, of course, provided advertising revenue for the owners. This unsurprisingly caused a few problems with confusion among passengers and drivers and the inevitable missed buses.

It does, though, illustrate a certain amount of ingenuity (among, of course, many less desirable properties). Imagine the thought process that went on to come up with this bus stop idea in the first place. I don’t think it was from the same people who produced tattooed lucky fish (see picture below to illustrate one of the latest crazes in China: pet fish tattooed with characters intended to bring their owners good fortune and happiness), but they may have similar characteristics.
 

Posted in Alaric Fairbanks, Thursday Night Insight |
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Impact of Recession Loosens its Grip on London Entrepreneurs

Following Monday’s blog entry we can report that recent market research by B2B International shows that London’s entrepreneurs are more optimistic for 2010

London’s small businesses report that the recession is now having less of an impact on their business and levels of optimism and resilience remain high after the final quarter of the year, according to Business Link in London’s latest Business Confidence Index carried out by B2B International.

Although 69% of entrepreneurs tell us they are still affected by the recession, the impact is less significant – only 13% reporting they are extremely affected. This is a significant drop from 21% in July 2009.

The quarterly business confidence Index measures business sentiment of over 3,300 small-to-medium sized enterprises (SMEs).

This unique survey takes into account variations such as industry sector, sub-regional location, business types and business ownership (gender, Black, Asian & Minority Ethnic (BAME), Deaf and disabled).

Commenting on the Index, Patrick Elliott, Chief Executive of Business Link in London said: “Small businesses have always been resilient during times of economic upheaval due to their ability to adapt quickly. This flexibility, combined with their survival strategies and optimism, are likely to have shielded some businesses from the full force of the recession.”

Mayor of London, Boris Johnson, added: “For the second week running another survey shows London’s small businesses can see light at the end of the tunnel. We have been working hard on their behalf and it is rewarding to see this sustained growth in confidence and to hear that, as we start turning the corner, our businesses are optimistic for the future.”

Mr Elliott continued: “However, entrepreneurs are not yet immune to the continuing tough economic climate. A note of caution is necessary to manage the months ahead.”

Reduced customer spending and sales generation are still key problems faced by established businesses. However, their impact on businesses has dropped significantly with only 20% concerned with customer spend in October, compared to 36% in July.

The food and drink sector is fairing better than it was in July due to increased customer spend. However, we are seeing a gloomier picture for the retail sector as customers cut back on purchases.

Declining profits and sales and cashflow constraints top the list of business activities hardest hit by the recession.

More home businesses are optimistic than ever before. They are telling us that they are marginally less affected by the recession than other business types (42% vs. 44%) and that they’re inclined to be slightly more optimistic about their overall future (17% vs. 14%).

Growth and optimism remain high on the agenda for the majority of those surveyed. The number of businesses looking to grow has increased from over half (59%) in February, to 63% in October. Levels of optimism remain unchanged since July (73% vs. 75%) with almost three quarters of those surveyed continuing to be optimistic about their overall business success.

“This cautious optimism is exactly what we advocate. The Index shows that entrepreneurs are refusing to get bogged down in the doom and gloom. Their strategies to tackle the worst impact of the recession are paying dividends,” continued Mr Elliott.

Online sales and trading have emerged as popular choices for growth over the next twelve months, making their way into the top 5 strategies considered. Despite this, increased marketing remains the top tactic favoured by businesses.

The manufacturing and property sectors are least likely to grow which suggests that they are simply concentrating on survival.

Two in five respondents are not planning on making further changes to their business to deal with the recession, an increase of 16% since July (40% vs. 24%). This is further evidence that businesses feel closer to recovery.

If you are a London based business and interested in taking part in the next quarterly Business Confidence Index then please e-mail: dbci@b2binternational.com

Posted in B2B News, Budgets, Business, Business Confidence Index, Credit Crunch, Growth, Recession, UK |
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Confidence Rising

A new survey carried out by the Chartered Institute of Marketing (CIM) has found UK marketers to be ‘quietly confident’ about the UK economy and their companies’ prospects over the next year.

The survey of 1,200 marketers discovered that 51% of respondents think business will improve over the next 12 months; just 16% expect conditions to deteriorate.

In terms of the marketing activities felt to offer the greatest return on investment, CRM topped the pile with 21% of marketers feeling it delivers the best return. 12% opted for online advertising, 11% chose email marketing, and a further 11% felt public relations offered the greatest ROI. Advertising (excluding online) was considered to offer the least return on marketing investment.

36% of the respondents said that the economic downturn had created new business opportunities for their company – a figure which rises from 28% in the previous study six months ago.

All in all, sales performances and marketing spend appear to be on the up, with redundancies going down, all of which is positive news. However, a word of caution – there’s still a good way to go before the figures return to the levels of before the economic crisis began.

Posted in Credit Crunch, Economic Crisis, Economic Recovery, Marketing |
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Tis The Season To Be Jolly!!!

In our last Thursday Night Insight of 2009, Nick Hague gives us all something to smile about.

Is it me or is it that this time of year brings out the misery in people?

As I tried to get on the tube on Monday, my joyful mood quickly turned for the worst after experiencing the cramped and squalid conditions of the London Underground with busy commuters pushing rudely past each other (I even caught an elbow in the rib cage from an elderly gentleman rushing for a train!).

That night I visited the dentist. Not the perfect end to a day but, as it turned out, it was the most enjoyable part of my day. Firstly, I was greeted by the receptionist who welcomed me in with a smile. Now dentists aren’t my favorite place in the world but as I sat in the waiting room surrounded by gleaming white smiles peering back from the glossy brochures, I realized how nice it was to be on the receiving end of a smile (especially since I had seen such a lack of them down in London). It then took me back to when I lived in the US during my student years and I remembered how the staple of American humor about the UK is the population’s bad teeth (just look at Austin Powers the movie).

I then thought back to the day I had just had and it got me thinking. I came to the conclusion that it isn’t the fact that the English have not learnt the art of smiling or are any ruder than our US cousins (have you ever visited New York?). It is just the fact that we are ashamed to smile because of our badly kept crowns and rotten teeth (I joke only slightly!).

A smile not only changes your mood but it also makes you look more attractive and it is contagious. We humans are wired to respond like for like; just think about it, if you smile at somebody in the street, you are more than likely to receive a smile in return. Although I acknowledge that we can’t all be happy all of the time, we do need to make more of an effort, especially because smiling is a social thing. I recently read about a fascinating experiment carried out in a bowling alley that showed that when people get a strike they do not smile as they watch the ball take down the pins at the end of the alley. It is only when they turn to face their competitors that their faces break into a smile. We smile to communicate a message.

In business, everything we do starts with the customer. Without customers, we would have no work, and with no sales, we would be bankrupt. What would a potential customer think if we solemnly entered a meeting and didn’t smile for the duration? I am pretty certain we wouldn’t win the job.

Earlier this year, the Japanese government took things to the extreme by testing railway workers’ curvaceousness of smiles at 15 railway stations in Tokyo. Workers had their smiles computer tested and those that didn’t meet the perfect smile criteria were directed on how to improve their smile.

Service with a smile is often used within the consumer industry but is that because the market is directly interacting, face to face with the customer and not down a protracted value chain as in business to business markets? Now I am not saying that we need to go as far as the Japanese government but what I am stressing is the importance of customer satisfaction tracking in b2b markets.

As we close the door on 2009 and open a fresh one to 2010, ask yourself one question – What are your customers feeling right now? Are they smiling? What if they aren’t? What can you or your company do to put the smile back on their faces?

For our final Thursday Night Insight of 2009 I want to leave our readers with something. We have all heard the adage ‘It takes a greater number of facial muscles to produce a frown than it does to generate a smile’. Now I am not sure if this is true but here are 10 things that we should all bear in mind as we move into 2010 (especially if you are travelling on the London Underground!):

1. Smiling Makes Us Attractive
   We are drawn to people who smile. There is an attraction factor. We want to know a smiling person and figure out what is so good. Frowns, scowls and grimaces all push people away — but a smile draws them in.
2. Smiling Changes Our Mood
   Next time you are feeling down, try putting on a smile. There’s a good chance you mood will change for the better. Smiling can trick the body into helping you change your mood.
3. Smiling Is Contagious
   When someone is smiling they lighten up the room, change the moods of others, and make things happier. A smiling person brings happiness with them. Smile lots and you will draw people to you.
4. Smiling Relieves Stress
   Stress can really show up in our faces. Smiling helps to prevent us from looking tired, worn down, and overwhelmed. When you are stressed, take time to put on a smile. The stress should be reduced and you’ll be better able to take action.
5. Smiling Boosts Your Immune System
   Smiling helps the immune system to work better. When you smile, immune function improves, possibly because you are more relaxed. Prevent the flu and colds by smiling.
6. Smiling Lowers Your Blood Pressure
   When you smile, there is a measurable reduction in your blood pressure. Give it a try if you have a blood pressure monitor at home. Sit for a few minutes, take a reading. Then smile for a minute and take another reading while still smiling. Do you notice a difference?
7. Smiling Releases Endorphins, Natural Pain Killers and Serotonin
   Studies have shown that smiling releases endorphins, natural pain killers, and serotonin. Together these three make us feel good. Smiling is a natural drug.
8. Smiling Lifts the Face and Makes You Look Younger
   The muscles we use to smile lift the face, making a person appear younger. Don’t go for a face lift, just try smiling your way through the day — you’ll look younger and feel better.
9. Smiling Makes You Seem Successful
   Smiling people appear more confident, are more likely to be promoted, and more likely to be approached. Put on a smile at meetings and appointments and people will react to you differently.
10. Smiling Helps You Stay Positive
    Try this test: Smile. Now try to think of something negative without losing the smile. It’s hard. When we smile our body is sending the rest of us a message that “Life is Good!” Stay away from depression, stress and worry by smiling.

Posted in Nick Hague, Thursday Night Insight |
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2009: The Year Of The Apple

Many friends and colleagues swear by their Apple laptop.  What is it about Apple that infects these otherwise sane folks?

The 21st Century started as much with a bang as a whimper, all the fears about the Y2K bug were quickly forgotten as people discovered that their electronic gadgets had survived the big leap into a new century, only then to be confronted with the bursting of the dot.com bubble, followed by the first recession in 2001 and 2002. No sooner had we recovered our euphoria through the growth years of 2003 – 2007 when the second, much bigger and much more cataclysmic bubble burst, as the bloated global financial sector went into meltdown, taking pretty much everything else along with it and causing all non-essential consumer demand to come to a grinding halt. We have effectively lost one year of consumer demand for discretionary spending.

So what is it that makes Apple so different from everyone else? A sick technology company at the beginning of the century, Apple has been revived by Steve Jobs, whilst all around them have boomed and busted. In that revival Apple has radically re-invented the music business, turned the movie world upside-down and transformed the telecommunications industry as well as winning more and more of my friends and colleagues over to their increasingly ubiquitous MacBooks.

Apple keeps changing the way we all behave! Apple influences GLOBAL culture. Their multitude of gadgets are much more than just gadgets, they are behaviour-changing technologies, which have challenged their competitors around the world and have changed the behaviour of people around the world in the way they access information, buy and listen to music and communicate with one another. Apples products are not only brilliant designs they are inventive and creative going beyond today’s way of doing things and they impact the designs of other products and services with which they interact, interface and compete.

That’s quite an achievement, which cannot be claimed by many other companies!

In the final analysis, it is not just about the company, it is also about the man – Steve Jobs. Without him Apple became a sick company, since his return Apple has been revived. Jobs is variously described as stubborn, arrogant, infuriating and also incredibly smart, inspired, inspiring, perfectionist; whatever you think about him and his products, you have to admire the track record, especially in the last decade, the achievements, the financial and operational strength of the company and most of all you have to admire the impact he and his company have had on culture and behaviour of people all over the world in their private and professional lives. This is second to none.

The third incarnation of Steve Jobs in his company, Apple, has probably been the most spectacular of all. In the past 10 years, Steve Jobs has had a lasting impact in transforming the markets for music, movies and mobile telecommunications in addition to maintaining a leading influence on personal computing.
This probably even surpasses the impact of previous transformers such as Thomas Edison or Henry Ford. They managed to transform one market; Steve Jobs has done four in one decade!

Steve Jobs is surely a visionary, nevertheless his direction is not so far away from what people need and value, because we buy what he produces and we pay significant premiums to get our hands on his great ideas.

Through both the 2001/2002 and the 2008/2009 recessions Apple has launched new products and succeeded in seeing continued growth in their established product-markets, against all the odds and against all the trends.

Apple trends to dominate high-end, high-value segments of their product markets, leading to higher prices and higher margins for their products with less competition. For example, in computers, Apple has a 9% market share in the US, and dominates the high-end segment, accounting for 90% of the dollars spent on computers with >$1,000 price tags. Apple’s cheapest notebook starts at $999.

By 2009, the just two-year old iPhone accounted for 18.5% of Apple’s revenue; 60% came from Macs and iPods. Apple has sold around 220million iPods globally since the launch in 2001.
Rapid Innovation and Marketing: First 5GB iPod 2001: $399; Today’s 160GB iPod: $249
There are now more than 100,000 apps for the iPhone on the AppStore.

So what is the basis for Apple’s and Steve Jobs’ success in the market?

Apple apply very sound marketing principles to their business: their differentiation is not just based on product innovation; it is based on amazing and attractive design, an intangible item that competitors cannot even define, never mind come close to matching. They do not stand in awe of their competitors; they make sure they are ahead of them and/or inside them (e.g. iTunes compatibility with the pc).

Steve Jobs personally manages and oversees external communications about Apple, its customer value propositions, products and ideas, ensuring always that the right message is delivered to the right target audiences in the right way.

Apple is a continuous and rapid innovator unabashed by the rigours of the external economic environment we have faced in 2009.

Let’s see what 2010 brings!

Original article from www.gems-europe.com

Posted in Branding, Business, Business Development, Information Technology, Social Networking |
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