Saturday, 29 December 2012



Lets Face it. There is no answer to the Advertising and Marketing Crisis!

Both Clients and advertising agencies are deluding themselves. Marketing has

to accept there is no way out of its decline.For one blood-curdling moment it

seemed that the marketing world had woken up to the fact that their preposterous

industry had finally been caught in the act.

Pepsi ,the world's leader in advocating and implementing new-age marketing

nonsense, and now paying the price for its foolish belief in the three-headed

marketing monsters: "branding," "engagement," and "conversation." (Here's a tip

for anyone left alive in the Pespi marketing department. There is one thing, and

one thing only, that advertising is about -- persuasion. All the rest is word

games and chit chat. Got it?

Last week it was reported that after years of fighting Coke for first place

in the soft drink category, Pepsi-Cola had fallen to third place.The L.A. Times

called it "...a stunning fall from grace."

Pepsi saw their U.S. sales volumes in 2010 fall sharply, by 4.8% and 5.2%, respectively... The

U.S. soft drink market is about 74 billion dollars. Therefore a 5% drop in Pepsi

market share (which is about 10%0 cost them well over $350 million on the Pepsi

brand alone!

The goal of advertising is to create a clear awareness of your company and

its Unique Selling Proposition. Unfortunately, most advertisers evaluate their

ads by the comments they hear from the people around them. The slickest,

clearest, funniest, most creative and most different ads are the ones most

likely to generate these comments. See the problem? When we confuse "response"

with "results" we create "attention getting ads" which say absolutely


The business owner is uniquely unqualified to see his company or his product

objectively.He is on the inside, looking out, trying to describe himself to a

person on the outside looking in. It's hard to read the label when you're inside

the bottle. Too much product nowledge causes the business owner to answer

questions that no one is asking. This makes for extremely ineffective


Marketing has to accept there is no way out of its decline. The rot began

when we chose never to take heed of Professor Ehrenberg's statements on

advertising effectiveness! Because nothing has changed despite all the ballyhoo about Social Media,

Facebook et al. Wherever ads appear, especially on Social Media, Ehrenberg's resolute focus on the

facts what data actually tells us led him to challenge many a marketing bandwagon

such as loyalty'. You may wish to improve the brand's performance by improving

customer retention', he observed, but without a higher market penetration it

just won't happen. His work on advertising effectiveness was equally

challenging. He argued convincingly that there was no evidence that advertising

persuades anybody to do anything; advertising can only ever be a weak' force

that improves brand recognition and/or jogs consumers'


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