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A marketing resource for CEOs, CMOs, and VPs of Marketing with information on the impact of branding on revenue and profit.
What the Hell is...

What is 21st Century Social Currency?

June 29, 2009 10:15 AM

By Chris Barredo, Brand Planner, The Halo Group

A curious term has been popping up pretty often here lately at Halo: social currency. And the way we use it seems much larger and more important than ever. So it seems fitting that we examine what social currency means today.

Social structure has evolved dramatically due to many innovations in many different areas that allow people to connect and share with each other. It has resulted in the creation of a tribal society with multitudes of tribes (Seth Godin's "Tribes") – tribes of every size, shape and sort; tribes for every interest and taste – and it’s social currency that makes them go round. At one point, social currency stood for the power of the relationships you had, but social currency today should also include the “relationships” you have with experiences and interests. It’s no longer just about who you know, but what you know.

Take a look at any Facebook profile (or Linkedin, if you so prefer) and you’ll likely notice social currency at its best. First you’ll see the number of friends or contacts, but then it gets broken down even more into an infinite number of groups for everything from politicians to favorite soft drinks. Then there are interests, favorite books, movies, music and quotes. All are sources of social currency with different values in different tribes and they help provide deeper, more meaningful insights into who this person is and their stature in the tribe.

For example, in the chocolate lovers’ tribe, knowledge of how chocolate is made and what characteristics to look for in dark chocolate might be highly valued social currency. In this person’s respective Facebook profile you might see “Grenada 60% organic dark chocolate” as an interest along with other gourmet things such as wine or cheese. Perhaps you’ll see favorite books about the benefits of organic foods. From this profile, we might see that it’s valuable for them to know where the cocoa beans come from, how it is manufactured, its unique flavor profile and what other foods or drinks it could be paired with.

Unlike money, the quest to acquire social currency isn’t about power; rather, it’s about individualism. Think of consumers today more as curators of social currency, finding the right balance to represent who they are, what makes them unique, and the value they add to whatever tribes – online or off – they belong to.

The more you understand what are considered valuable interests, experiences and knowledge amongst your target audience and their respective tribes, and how they are used, the more you can understand how to fit your brand into their lives.

What the Hell is... Textroversion

February 20, 2009 12:00 AM

By Michael Aaron Frandy, Studio Manager, The Halo Group

There's a relatively new term to describe a person who might be quiet and noncommunicative in person—-but who is rather loquacious when utilizing text (or instant) messaging and email: textroverted.

If you’re a textrovert, you gain your courage to communicate through these modern technologies. Imagine the freedom afforded to a shy teenage boy who might not have the intestinal fortitude to call up a girl to ask her for a date. Now, he can easily pick up his iPhone or BlackBerry and send off a quick offer to go out.

Textroversion also has its place in today's world of business communication. Since it is now de rigueur to have a two-way electronic device holstered to your hip, shooting off a brief, succinct request — and receiving a reply in kind — can quickly cleave through the sometimes unnecessary, time-wasting layers of in-person/verbal-based social pleasantries.

In today's business climate, where we're all called upon to do more with less person-power and fewer resources, you've got a finite amount of time to solve a seemingly infinite amount of problems. These new communication technologies afford nearly instantaneous responses in time-sensitive —and potentially money-losing — situations.

Just don't forget to occasionally take a break to look out the window, to catch up in person with your friends and workmates, and, most importantly, to breathe.

What the Hell is...Crowdsourcing?

November 21, 2008 12:00 AM

The concept of crowdsourcing involves using large groups of people, often connected by the Internet, to achieve a task or answer a series of questions. The idea of outsourcing to crowds is that either access to a pool of expertise or the collective response will yield more efficient (dollar-wise and time-wise) and/or accurate results. Author Jeff Howe refers to it as the "application of Open Source principles to fields outside of software," which turns consumers into creators.

In 2005, Amazon introduced the Amazon Mechanical Turk, where users can reach out to a collection of researchers who answer "human intelligence tasks." The idea is that a group of people with predetermined qualifications can perform certain jobs more effectively than computers, whether it is scanning photos or providing shopping recommendations. 

The most controversial area of crowdsourcing is likely in the field of citizen journalism, wherein web publishing might be outstripping an editor's ability to monitor what is going out. As the news cycle gets faster, the danger is that journalistic standards could be relaxed because of an assumption that mistakes tend to be discovered and amended quickly. Consider the recent example where a post on CNN's iReport website claimed Steve Jobs was hospitalized for chest pains. Apple's stock plummeted and the company was forced to issue a statement denying the report.

Origin:
Writer Jeff Howe coined the phrase crowdsourcing in a June 2006 article in Wired magazine to discuss how cheap labor was being discovered via the Internet. Howe later wrote the book, Crowdsourcing: Why the Power of the Crowd is Driving the Future of Business, which theorized that we were undergoing a cultural shift that redefined corporate research and the marketing process.


What the Hell is...Meme?

October 24, 2008 12:00 AM

A meme is a concept or behavior that spreads via learning or imitation. That idea isn't rigid, but instead changes and is adapted to the new context in which it is being used.  A meme can be as diverse as a bit of technology or a piece of advice; it's essentially anything that can be adopted by other people. The easier it is to adapt, the sooner the meme becomes part of the cultural zeitgeist.

With the rapid spread of ideas on the Internet, memes have exploded online. An Internet meme starts with a song or catchphrase, for example, that is spread virally. Bloggers often add their own spin or humor to the original idea and that sparks even more discussion. One of the most popular Internet memes is LOLCats, where cat photos are paired with grammatically incorrect captions. If you want to track Internet memes, you can use a service like GoogleTrends to look at a concept's popularity through search engine results.

Marketers have tried to take advantage of memes, which are essentially viral campaigns. The challenge is to discover what makes one meme successful, while another languishes.

Origin : Researcher Richard Dawkins coined the term "meme" in his 1976 work, The Selfish Gene, as a "unit of cultural transmission." He used it to describe how evolution could account for the proliferation of religious ideas or building techniques.


What the Hell is...Mashups?

September 29, 2008 12:00 AM

A mashup is the melding of two sources of material or data that when combined create a new utility or something completely different.

The concept of a mashup dovetails with the rise of social networking as websites like Digg or Reddit, acting as aggregators, pull together news or feeds from multiple sources. That platform is then often designed to be interactive, allowing users to share opinions, reviews, or update information in a fashion similar to Wikipedia.

The idea of creating web-based applications is also a popular choice for mashups as developers have used mapping software, such as Google Maps, to create everything from restaurant guides to real estate comparison sites. Mashups have also been popular in music as artists sample parts of another song to remix an entirely new song.

The mashup is indicative of the way we now consume media as traditional sources are intermingled with online campaigns in an attempt to discover what appeals to consumers.

Origin: Mashups are considered a part of Web 2.0. The term was first used to describe a web application that pulls together content from a variety of sources to perform a specific function, whether it is comparing airfare rates or finding new restaurants.


What the Hell is...Fansumers?

September 19, 2008 12:00 AM

A fansumer is a consumer online, who is a promoting a brand through word-of-mouth marketing. It is a direct reference to Facebook's "fan" designation, wherein a user can be a fan of a given product or celebrity and establish a connection on the social network. A fansumer identifies with a brand's values and promotes it as a trusted voice to those within his or her online community.

Accordingly, the ways in which products are being marketed have shifted online. As brands accumulate information about consumers' preferences, they can place advertisements in front of customers who are more likely to champion their message. Companies are now becoming personalities on Facebook, with brands like Seventeen encouraging people to become fans online and promising insider access.

Corporations seek out fansumers to act as brand loyalists, translating the virtues of a product or service online into the new world of social media.

Origin:

Forrester Research introduced the concept of the fansumer in order to describe the evolution of the consumer online as they interact with targeted advertising on social networking sites.


What the Hell is...Uncanny Valley?

September 12, 2008 12:00 AM

The uncanny valley is a theory that suggests there is a tipping point where people will reject digital or technological representations that appear too similar to human beings. By making artificial movement or speech appear too natural, a robotics or model designer will inadvertently trigger feelings of revulsion. The concept of the uncanny valley initially only referred to robotics, but as computer graphics have evolved, the same phenomenon has been observed in the world of film and video animation.

The movie "Polar Express" was panned, with critics contending that the motion capture process created animated characters that were more disturbing than cuddly. And video gamers have remarked in recent years that digital characters are becoming unsettling.

The idea of the uncanny valley has even been extended to photo retouching, as consumers have difficulty reconciling digitally altered photos with their expectations of a subject's appearance. A recent advancement in photorealistic characters from design firm Image Metrics may have provided an answer by analyzing specific movements and timing gestures.

Origin: Japanese robotics inventor Masahiro Mori defined the concept in 1970. He was looking to explain why people suddenly rejected his creations as they became more evolved. Mori based his theories on the philosophies of Ernst Jentsch and Sigmund Freud, in which both men expounded on the idea that something can be familiar and unknown at the same time.


Correction: One of our eagle-eyed readers noted that the connection between Mori's theory and the work of Freud and Jentsch was made after his postulate was released. Mori's work was not based on their philosophies, it is just a correlation that has been drawn by subsequent researchers.


What the Hell is...Contextual Marketing?

August 29, 2008 12:00 AM

Contextual marketing is online advertising placed and appearing according to how relevant it is to the content the consumer is viewing in response to a search. It is targeted advertising that looks to align with the interests of a web surfer.

Google AdSense is the most popular form of contextual marketing. A search engine bot, known as Mediabot, indexes the material on a website and determines which advertisements submitted to Google are a match. Search engines, including Yahoo! and Microsoft, display advertisements on search results pages. Those advertisements are selected based on the key words that a person enters into the search engine.

The idea of contextual marketing has been controversial because critics claim it represents an invasion of privacy. In 1999, when the search marketing company DoubleClick (now owned by Google) attempted to use the information it had collected online about consumers to create targeted promotions offline, the corporation was taken to court over its privacy policies. Public reaction led online marketers to focus on delivering marketing messages that drive responses without being intrusive.

Origin: Contextual marketing is based on the idea of personal profiling, where information about web surfers is collected via cookies. In 1995, permanent cookie technology was invented, which allowed servers to send packets of information to web browsers, and vice versa, in order to track the websites visited by the person at the computer.


What the Hell is...Participatory Advertising?

August 8, 2008 12:00 AM

Participatory advertising is the idea of co-creation, where a marketer introduces a concept to the public and then asks consumers to use their creativity to expand upon that idea.

Corporations reach out to brand evangelists to ask them to create commercials or new brand messages for products they love. The user-generated content is then uploaded to brand-specific websites or video-sharing sites like YouTube. By yielding brand control, companies like MasterCard and Converse have managed to engage customers in promotion across social networks.

Participatory advertising also involves the changing manner in which people consume marketing. Instead, customers are now interacting with brand campaigns, as the Internet has moved marketers away from traditional, static methods of advertising. Under this methodology, consumers are no longer willing to passively digest product information, but instead want to form a connection with a brand. In a recent successful example, Dove leveraged this approach with the Campaign for Real Beauty, which asks consumers to help change stereotypical ideals of beauty. 

Origin:

The first examples of participatory advertising were seen in the early 1990's as Nike parlayed a series of advertisements with Michael Jordan and Bugs Bunny into the creation of a feature-length cartoon, "Space Jam." Advertising evolved into a participatory model with the introduction of the Internet and a corresponding change in consumer culture.  


What the Hell is...Murketing?

July 11, 2008 12:00 AM

Murketing is a combination of the terms murky and marketing. It is a deliberate choice by a corporation to create a brand image that is mysterious or not well-defined in order to inspire curiosity in the consumer. With technology changes and new approaches to viral and word-of-mouth advertising, it isn't immediately clear that a brand is behind a new video or message -- be it mobile phones that pop popcorn or a giant LEGO boulder chasing Indiana Jones.

A successful murketing campaign is intriguing enough that potential customers will seek to discover exactly what is being sold or who is the one selling to them. The consumer then ascribes values to the brand and is the one to proactively establish a relationship. Critics are split on whether the murketing of viral videos, like BMW's "Rampenfest" ads, will ultimately damage or save brand reputations.

Origin: New York Times columnist Rob Walker coined the term "murketing" in an article for Outside magazine when he was seeking to describe the deliberately obsequious marketing of Red Bull. He regularly explores the relationship between consumers and marketers on his blog, Murketing.com and in his new book, "Buying In."


What the Hell is...Piggybacking?

July 3, 2008 12:00 AM

Piggybacking is where smaller brands use well-known brand names, trademarked terms, or slogans in their online search advertisements to draw traffic to their websites. It is a growing issue for search engine marketers and Fortune 500 companies as advertising dollars shift online where brand abuse is rampant. Google's trademark policy is hands-off and encourages advertisers to resolve trademark disputes directly with a company that they believe is violating their trademark rights.

Marriott International and American Airlines contend that this practice is potentially driving up costs and confusing potential customers. American Airlines filed suit against Google last year, arguing that unchecked piggybacking was a case of trademark infringement.

Origin
Piggybacking was initially a business term that referred to reducing costs by adding a new project to an existing one. It was extended to the online arena with wireless networks to refer to computer users hopping on an unprotected wireless connection.


What the Hell is... Digital Immigrant?

June 9, 2008 12:00 AM

A digital immigrant is a generational term, used to refer to people who were born before a given piece of digital technology was invented. It is a generation of baby boomers and consumers of a certain age (even Rupert Murdoch), who are approaching technology as if it were a foreign language.

As such, digital immigrants experience the same difficulties when they come into contact with digital technology as adults. Their learning curve is steeper and they may be reluctant to adapt to new systems.

The process of assimilation is always easier for those that learned the language of our digital world while growing up. Digital immigrants are often juxtaposed with digital natives, the younger generation that is accustomed to using the wealth of digital technology. The Digital Natives project, a collaboration between Harvard University and the University of St. Gallen, is looking to understand how different generations understand and apply information.  

Origin: The term digital native is attributed to writer and consultant Marc Prensky. He coined the term in a 2005 piece for Educational Leadership, while explaining what teachers have to do to reach students based on how they currently receive and process information.


What the Hell is... Flog?

May 4, 2008 12:00 AM

A flog is a blog that, on its surface, appears to be written by an average consumer or person, but is actually the stylized creation of a public relations firm or marketing department. In many ways it is an online extension of the concept of astroturfing.

Wal-Mart came under fire in 2006 for failing to disclose that it was funding Wal-Marting Across America, a flog that featured a couple traveling cross country in an RV and sleeping in Wal-Mart parking lots. When it was discovered that the blog was the creation of the public relations firm Edelman, the backlash was swift and strong from the blogosphere where transparency is considered the first rule of the social media realm.

Blogs are a form of participatory journalism, and the risk a company runs in starting a flog is that the act will be seen as a violation of the reader's trust because the content is being misrepresented, a la James Frey's A Million Little Pieces.

Origin: The term flog was likely coined by designer Matthew Oliphant in February of 2005. Within a year it was being used regularly to refer to the Edelman-created blog, Wal-Marting Across America. The name flog is short for fake blog or "flack blog."

What the Hell is... Onsert?

May 2, 2008 12:00 AM

By Halo

An onsert is a standard marketing piece commonly used with newspapers and magazines, and recently applied to direct mail. It is a separate advertisement that is attached to a page of a publication or a customer mailing, and usually is in the form of a takeaway product, like a compact disc, magnet, or small booklet.

Onserts have recently been used to explore the field of scented advertising with newspaper companies like Gannett considering pages or stickers imprinted with smells. 

A derivative product of the onsert is the "onstatement," where advertisements are included on an invoice or account statement from a corporation with no distinction between the content.

Origin: Onserts were developed, and named in contrast to the insert (where a marketing piece is included within a publication). Early uses of onserts were the ubiquitous AOL membership CDs or the sticker covering the masthead of your USA Today.


What the Hell is... Matrix Organization?

April 21, 2008 12:00 AM

A matrix organization takes workers with matching skill sets and places them together, allowing a project manager to select the employees that are needed for a given task. In this decentralized system, everything flows through a project manager, who then reports to a corporate executive or department head.

Matrix organizations arose in response to "silos," divisions wherein a strict hierarchical structure left employees in isolated groups only responding and communicating to their direct supervisor. Since information was not effectively shared between the silos, project coordination fell to a C-Suite executive.

In a matrix organization, synergies can be realized by combining elements of project and functional management, as the sharing of resources and employees leads to cost reductions and a more efficient organization. The silos, which in a matrix organization consist of a group of programmers or engineers for example, are now required to communicate. 

Critics question the sustainability of matrix organizations over time as the fluid nature of the corporate structure means that employees can have several superiors and talented workers might feel overburdened.

Origin:

The concept of the matrix organization rose to prominence in the 1970's and 1980's. It was outlined in Professor Jay R. Galbraith's work, Matrix Organization Designs: How to combine functional and project forms.


What the Hell is... Blue Ocean Strategy

March 28, 2008 12:00 AM

Blue Ocean Strategy encourages a company to explore untapped markets where immediate and rapid profit growth is possible because of a lack of competition. So instead of battling for profits in the established marketplace, companies should look to generate new markets where they are the only player.

In contrast to a blue ocean (an undiscovered market), the red ocean is the current marketplace, where corporations are competing for market share. Intense competition leads some companies to go under, and the "cutthroat nature" of business turns the ocean bloody or red. It's the concept of diminishing returns, as companies have to devote more resources to besting the competition in order to build market share slightly.

Without the cost of competition, corporations are free to focus on developing their product. Moreover, innovative companies will have the opportunity to define the rules of the marketplace in their favor.

Starwood Hotel's targeting of non-customers is a recent example of Blue Ocean Strategy as they are trying to step outside the traditional market boundaries of the hospitality industry.

Origin:

Michigan State University Professor Charles W.L. Hill introduced the idea in 1988 that differentiation and cost management was the key to gaining a competitive advantage. The concept was encapsulated in the 2005 bestseller, Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant, written by W. Chan Kim and Renée Mauborgne.


What the Hell Is ... Greenwashing

March 7, 2008 12:00 AM

Greenwashing is a marketing effort where a product or service is presented as "green," when in actuality it may not be environmentally friendly. Under this strategy, a company may change its look or use a buzzword like "organic" or "natural" to try and convince consumers that it has lowered its negative impact on the environment. Greenwashing is an environmental reinterpretation of the concept of whitewashing, wherein a corporation uses a biased presentation in attempting to cover up wrongdoing.

As it stands currently, there is not a lot of restriction on green advertising. The Federal Trade Commission is considering an update on green marketing guidelines, but the "Green Guides," haven't been revised since 1998. In response, a proliferation of consumer advocacy watchdogs have come into existence featured on websites like EnviroMedia's Greenwashing Index. And the planet-conscious claims of marketing campaigns are being called into question.

Recent debates over greenwashing have covered the sustainability of Procter & Gamble's Swiffer and whether Kimberly-Clark, maker of Kleenex and the world's largest tissue manufacturer, was effectively protecting heritage forests in Canada.

Origin

The concept of greenwashing appeared in the early 1990s. It arose as a response to the upsurge in green marketing by corporations designed to coincide with the 20th anniversary of Earth Day in 1990.


What the Hell is... Astroturfing?

February 29, 2008 12:00 AM

Astroturfing refers to misrepresentation in the world of the web - a coordinated, but covert, public relations effort masquerading as an independent grassroots campaign in the hopes of influencing opinion.

The word "Astroturfing" is a play on the artificial, slick surface first used in the Houston Astrodome. It is used to suggest that an alleged grassroots campaign cited by a corporation is fake or pretending to be natural.

In today's world of savvy consumers and watchdog groups, companies that try to hide their true intentions are being uncovered via programs like WikiScanner, which looks to see if corporations have edited their own Wikipedia entries. And so, just as athletes succumb to the hardness of Astroturf, those organizations that employ the strategy of Astroturfing are bound to have their reputations damaged.

Examples of Astroturf accusations in recent months include a campaign for clean coal and alleged Microsoft participation in dialogue on the web.

Origin

Astroturf is a synthetic field surface invented by Monsanto in 1967, nicknamed for its original use in the Houston Astrodome. U.S. Sen. Lloyd Bentsen is credited with co-opting the term to refer to a public relations campaign.


What The Hell Is... The Long Tail?

February 19, 2008 12:00 AM

The Long Tail is a new business philosophy that suggests that many small markets can be worth as much, or more, than one huge market. But for that to hold true, consumers must have equal access to companies of all sizes via a marketplace like the Internet.

"It's an embarrassment of niches," says writer Kevin Kelleher.

The Long Tail means that as a company's distribution power increases, it can sell a higher volume of different items, rather than focusing on a select group of products. The Long Tail eliminates the need for bestsellers.

The Internet has played a critical role in the development of the Long Tail because it has made hard-to-find products readily available. As a result, corporations have been able to monetize demand as the opportunity cost of marketing to smaller demographic groups has decreased.

Origin

The phrase first entered the lexicon in October 2004 when Wired editor Chris Anderson wrote an article about the business models behind Amazon and Netflix - it's a concept that he would expand upon in his book The Long Tail: Why The Future of Business is Selling Less of More.

 







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