Does Marketing Matter?

Photo Courtesy ADWeek

Payless, the discount shoe retailer, just did a wonderful test of how packaging can convince people to spend way more money than they need to.  They opened a luxury store with all the trimmings and flash upscale shoppers consider appropriate in high end retail stores and gave it a flashy name: Palessi along with fancy shopping bags to show off your purchases.

See the results for yourself and watch the interviews.  They tell us a great deal about how marketing and sales dress makes a difference in customer’s perceptions of value. Read the ADWeek article here. 

It was clearly an experiment … a bit of a stunt, and Payless handled the situation with great tact and grace.  However, I am not sure the average person sees what this experiment really tells us.

Perhaps the flip side says more.  Joshua Bell played in a Washington DC metro station and almost no one paid attention.  He is one of the best violin musicians in the world. He played one of the most intricate pieces ever written with a violin worth 3.5 million dollars.  Two days before his playing in the subway, Joshua Bell sold out at a theater in Boston and the seats average $100.

This is a real story. Joshua Bell playing incognito in the metro station was organized by the Washington Post as part of a social experiment about perception, taste and priorities of people.

If you are facing competition … marketing matters … a lot.

Conservation vs. Sales

The latest emphasis on beneficial electrification reminds me of when I first entered the electric utility sector almost 35 years ago.  Cogeneration and gas cooling had the electric utilities flummoxed.  They simply did not know how to “compete” with low natural gas prices and a seemingly endless supply of manipulative wheelers and dealers who made it easy for customers to switch.

As some of you know, I became very popular because I seemed to be able to dissuade customers from these ideas.  Very few of my clients took my techniques to heart … they were just glad to be rid of what they thought was a distraction on the part of customers.  After all, customers should not be interesting in being in the utility business.  So they thought.

When I wrote the book, “Cogeneration Issues and Options,” for the Edison Electric Institute (EEI) I illustrated that customers were simply trying to solve operational and financial problems and that cogeneration was nothing more than one of the ways they could do that.  Project developers made it easy for them, that’s all.

The key attribute that was most difficult was the attitude of the electric utilities at the time.  They viewed the idea of self generation as competition … somehow wrong in the spirit of the customer-electric utility relationship.  They didn’t see it as an opportunity to partner with customers.  They saw it as a “win-lose” battle and that stance put them at odds with the customer.

I would show them the famous scene from Miracle on 34th Street where Santa when speaking to a small child and then that child’s parent told her she could get the toy that child wanted from Gimbles … the arch rival of Macy’s just across the street.  The toy manager wanted to fire the Santa … but the parent’s raving about the Santa’s helpfulness stopped him.

Why be “for or against” any customer idea.  Be “for” the customer and their success.  Let the chips fall where they may.  And, just like that scene in the movie, your customer will always want to shop first at Macy’s.

Environmental Lobbies – Another NRA?

Today’s USA Today website had an interesting editorial based upon the most recent climate change study.  They suggest that the results are so dire that something equivalent to the National Rifle Association should be formed to push environmental agendas.  Here … read it for yourself.

Does this really make sense?  Don’t we already have a host of environmental groups with huge impacts such as the NRDC and others?  Hasn’t the NRDC made huge impacts in the US on a host of energy efficiency and resource sustainability issues?  I think so?  Hasn’t the work of Amory Lovens with his books, lectures, and testimonies changed the way we plan energy supply systems?  Sure has!

In fact, we are the victim of our own successes … energy use in the US has stagnated and even fallen, and we are producing more energy than ever before!

Maybe the intent here is simply to create another organization that can spend money wastefully like all the political ads we have seen this last few months.  I don’t know about you, but I would have rather seen all that money spent doing things that add to the well being of the planet rather than fill the airwaves with polarizing rhetoric.  I have stopped watching … perhaps you have as well.

Oh … I forgot … the editorial board of the USA Today benefits from all this advertising … oh …