Microsoft opened its fourth retail store recently - this one in San Diego, the same day Apple launched iPhone 4. According to blogger Joe Wilcox, the Apple Store (a stone's throw from the Microsoft store in the Fashion Valley mall) had about five times the crowd.

Microsoft was giving away lots of freebies, while people were waiting for hours to give Apple money. I wonder where Microsoft got the idea for their retail stores?? I'm waiting to see a TV ad (in the spirit of Windows 7 ads) with Steve Jobs in front of a Microsoft store saying... "My idea." 

I just called a colleague - a seasoned business executive - who answered his cell phone, only to apologetically tell me he was in a meeting and could I call back later. See, it's not just teenagers! Emergency situations excepted, wouldn't it make more sense to not answer and let voice mail take over when one is busy? I often tell my kids that somehow I (and a few zillion other people) survived most of my life without a phone in my pocket. They look at me like I'm nuts.

Marketers know that "everything talks" - your ads, the quality of your work, your signage, and yes, even how you deal with phone calls. All these communications convey a message. When someone answers only to say they're too busy to talk, the message is either: 1) you're not important enough for me to stop what I'm doing, or 2) I'm addicted to my phone and can't stop myself from answering no matter where I am or what I'm doing.

A marketing by-product of our collective love affair with the cell phone is to use that relationship to gauge the importance of other relationships. Like "Which of these would be hardest to give up - your mother, your job, your sex life, or your cell phone? But seriously, the zealousness of cell phone use is a powerful marker by which a host of products and services can be profitably compared. Think about it.

For India, GE Healthcare produced a hand-held electrocardiogram (ECG) device with cutting-edge technology that is much smaller, much simpler, and less than half the cost of traditional ECG machines. Here's one of their launch videos:

GE's inexpensive pocket-sized ultrasound device, designed for the Chinese market, turns out to have broad global appeal. Tata Motors in India has produced the Nano, a $2,200 car, which has stimulated "cheap car" development in the U.S. and many other markets.

There are numerous examples of high quality products and services produced and sold in India, China, and other countries at far lower cost than in the West. Emerging markets (formerly known as developing countries) invite us to make do with less. That leads to frugal/disruptive innovation.

I believe these five principles are key to creating a frugal innovation mindset and successfully innovating: 1) Start with a blank slate - zero-based thinking, not with the deductive approach of simply stripping away features from the existing expensive product. 2) Think of the end user customer as different, not deficient. Don't compare with the stereotypical Western lifestyle. 3) Don't overgeneralize and assume all people in an emerging market are the same. Segmentation principles apply as they do anywhere else. 4) Proactively consider and take advantage of the numerous brand enhancement and cause marketing opportunities. 5) Think simple, which means less is more. What's the minimum feature set your customer needs?

Don't be surprised when your simpler cheaper product has greater appeal than your traditional product in developed markets too. In fact, plan on it.

Old Spice figured out who holds the purchasing power in their target market's household. In previous campaigns, they targeted end users' (men's) awareness and liking. Look at their old ad with the shouting macho dude that would annoy maybe 200% of women. However, men may actually like the fact that women don't like the ad, with this logic: Because women don't like it, it is automatically manly. Who said we're not shallow.

Now to focus on a better outcome - selling their product - in the newer campaign, they are targeting and winning the buyers' preference by appealing to women, and through women, to their men.

This ad has multiple messages. What women doesn't want a man to bake them a cake in the dream kitchen he built with his own hands??  But the message doesn't negatively affect men's awareness or liking of Old Spice. Men appreciate that Old Spice understands their "situation" - another way to sell manliness.

As marketers, we know Old Spice probably conducted copious amounts of research to intimately get to know and understand their customers and the the purchase decision process. To Joe Bro, it feels like he just had a "manversation" consisting of mostly grunts, nods, and maybe a fist bump with Old Spice. Then the product he (and she) wants magically appears in his bathtub. Cha-ching.

Last week I blogged about how the National Pork Board (NPB) is planning to reposition pork, since "the other white meat" approach is not increasing sales. Today I came across Tim Berry's post about how NPB lawyers took quite seriously ThinkGeek's April Fool's joke that proclaimed:

Pâté is passé. Unicorn - the new white meat. Excellent source of sparkles!" 

Canned Unicorn Meat

They sent ThinkGeek a 12 page "Cease and Desist" letter. ThinkGeek went to town with it, now offering discounts on their very funny pork-inspired products and getting all kinds of viral coverage.

Yes, diligently protecting your brand and slogan and positioning is important - it's all about distinctiveness and competitive advantage. But unicorn meat... really? Maybe the Pork Board's lawyers and marketers oughtta talk...

Food marketers have known this for years. One powerful way to appeal to customers is to emphasize what is missing.  Misleading? Sure can be. Depends on how you look at it. I see it as more honest than not, when it comes to health.

I remember when "cholesterol-free" was all the rage, seeing orange juice touting its no cholesterol advantage. Which of course it always had, given that only animal products contain cholesterol.

When avoiding an ingredient or preparation method or chemical becomes a hot topic, be prepared to see all kinds of food products using it to grab your attention. Like Ocean Mist Romaine Hearts, which is...lettuce. Their bag calls out that their lettuce is gluten free, lactose free, and vegan. And that it supports a healthy heart. All good things. Hey, what about fat free?

The National Pork Board (NPB) is aiming to increase sales by repositioning its domestic pork promotion campaign. “Pork. The Other White Meat has 90 percent recognition, but recognition does not equate to high demand,” CEO Chris Novak says in the online trade newsletter Pork.  “The current campaign compares pork to others (chicken); it doesn’t let it stand on its own.” A new ad campaign and approach will be announced next year.

Hmm, I always thought comparing to a well known product or brand and clearly contrasting what makes you different was a good way to carve out mindshare and market share. Positioning, by definition, always involves a comparison to identify the class of product and a distinction to stand out from others within the class. So...how might NPB reposition pork? Some ideas from NPR's Wait Wait Don't Tell Me blog.

Pork: Secretly loved by Jews for 5,000 years.

Marketing sometimes struggles to establish measurable objectives and prove ROI. As a consulting firm, we believe strongly in accountability and help clients develop tools to foster marketing accountability. Like a "dashboard." Which is meant to be an at-a-glance summary of how you're doing on your metrics and what needs immediate attention. I think a good, simple dashboard is a very valuable way to know where you are, and where you're going. And it can help overcome internal politicking and posturing by serving as an accepted frame of reference.

Dogbert however begs to differ...

Actually, Dogbert and I agree on this point. A dashboard is only good if you use it. So use it!

(and thank you to our client for sharing this and being able to laugh about it!)

Recently, NPR told the story of a Texas hospital that is trying to use the "speed dating" concept to win new patients and bolster physician loyalty as well. Selected doctors and prospective patients pair off and chat for five minutes, then rotate into the next conversation. Check out the hospital's promotional video:

Clever idea. Attention-getting tactic. Yet there are numerous questions to consider... Will most physicians participate? Will referrals to the hospital increase? How scalable is it?  

And the bottom line question is: Can a good physician-patient match be made through a brief, patient-driven conversation? A Medscape poll shows that only 21% of physicians feel "speed dating" would be effective for their practice.

The key is asking the right questions, that is, questions that are predictive of a good doctor-patient match. And that is a work in progress.

How do we persuade people to do or buy things? In the health and medical field, we usually rely on educating them. This is the "direct" path to persuasion. Give lots of detailed information, the "customer" will scrutinize it, think hard about it, and come to a rational conclusion. Right? Wrong.

Years of research has shown that this approach usually doesn't work very well. For most people most of the time, the "indirect" path to persuasion is far more effective. On the indirect path, people are influenced by things like who the spokesperson is and what feelings are being conveyed, rather than the rational argument. They are not thinking deeply. Instead, they are relying on, say the credibility of the spokesperson, as a shortcut to making a quick decision. The upside is people are engaged. The downside is that the persuasion that does result may be shorter lived. 

I see the real win as what I would call involvement conversion. Use the indirect path to get people initially interested. Then once they are "in the door" so to speak, their positive experience should convert them to care more deeply and find the personal relevance in what you are selling. Just make it worth their while.

Note: I know, I know. There's a popular business book called the 5 Paths to Persuasion. The two paths I am touting are fundamentally based on whether people personally connect with your message or not. Think about what path you take when faced with a barrage of communications.