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
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'