Retail IS Marketing

We’ve been hearing about the eminent death of brick and mortar retail for a very long time. And while the industry continues to be squeezed as more people shift their buying habits online, retail is far from dead. It does, however, need to evolve and think about how it can remain culturally relevant. A lot’s been said about how consumers today don’t settle for just great products. They want their brands to reflect their lifestyle and values. Things like authenticity, ethical behavior, relevance to their identity matter more than ever before. Retail shopping is becoming more complex and is more than a place to make a purchase – the retail experience is a marketing platform. With the increased use of online shopping and the ease of access to a more and more locations, people are making choices based on underlying desires, not just functional needs. Thinking about the retail experience as a marketing tool will increase loyalty and sales. Treating your retail experience as a marketing tool involves six crucial elements:

  1. Tell a Great Story

The term “lifestyle” is thrown around fairly freely, but for us it’s about storytelling and engaging with people in a conversational way. A retail brand needs to be viewed in the same way a customer might view a friend who’s changing and evolving, but still has a strong sense of DNA. That means having a clear tone, but not being restricted by a rigid set of rules. It also requires that the brand communicate its story in everything it does, from traditional adverting, to how employees interact with guests, to its presence in social media. Every touch point needs to align with the other to create a clear, singular expression of why the brand exists, not just what it sells.

  • Unexpected Topics

Your brand shouldn’t be pigeonholed; it should be seen in a light where there is meaning and narratives are celebrated. A retailer can’t be afraid to venture outside its vertical and engage with people in unanticipated ways. This isn’t to say that the brand should jump into every conversation for the sheer sake of having a voice, but it should think creatively. For example, knowing banks need to attract younger customers, why not have a pop-up retail presence at a music festival? If your brand sells men’s clothing, why not host a happy hour? The point is, being an unexpected part of a conversation makes your brand more relevant in daily life.

  • Guides, Not Clerks

Going forward, in-store staff will have to be more educated and receive more training than retail staffers get today. That will of course lead to a larger training investment by the retailer, but the benefit is that there will be greater incentive to reduce staff turnover, which in turn will improve the shopping experience for consumers by making staff more knowledgeable and able to build lasting relationships with customers.

  • Technology

Technology will continue to change the store experience. Not just technology for the supply chain that gets products into the store faster and more reliably, but technology that consumers can use in the store. The technology that’s coming will recognize the consumer when they come into the store and make recommendations that are relevant and time-saving for them. It will also help retailers to organize and present products in ways that are more relevant to how consumers actually shop. With that in mind, staying ahead of the curve will ensure customers think of your brand first when deciding where to shop.

  • Create a Stage

Shopping is seen by most marketers first as a function and secondarily as something that serves emotional and social needs. Even as we talk about retail therapy, we revert in marketing to discussions about seemingly rational behavior. In fact, entertainment and a memorable in-store experience probably have more to do with a sale than the product or the ease with which people find it. Choice equates with enjoyment, turning shopping from labor to entertainment. The retail environment is an expansive, immersive media platform. People create memories within places if storylines develop and form personal connections. The stronger the connection, the more likely they are to frequent the space and to buy.

  • Foster Social Roles

When shopping is done with others, as a family or with a friend, it is as much about establishing social bonds and being an outing as it is about fulfilling specific needs.  It has replaced the park, the lake, etc. Brands that encourage people to interact both with each other and the space leads to a greater sense of brand affinity, reinforces the roles people have adopted for that shopping excursion, and creates a shared cultural connection.

Even as we talk about retail therapy, we often revert in marketing to discussions about seemingly rational behavior. But it isn’t so simple anymore. Shopping is about more than just getting more “stuff”.  Brick and mortar shopping as it is practiced today in particular jumps the line between a transactional and social experience. Shopping is as much about entertainment, establishing cultural roles and teaching cultural norms (or rebelling against them) as it is about anything else. No doubt we’ll see a range of creative ways in the future of dealing with the diversifying modes of shopping. For example, product companies may provide space to relevant service businesses. A luggage or travel store can have space for a Kayak or Expedia kiosk or service desk. The point is that it’s going to take creativity to get maximum leverage out of limited capital. But the payoff is a stronger connection to a brand, increased loyalty, and more dollars spent.

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Cultural Meanings and Breakfast

It is a frigid, snowy morning. I have a loaf of bread baking in the oven, a jar of blackberry preserves at the ready, and several slices of ham waiting to go into a pan. The dog is curled up at my feet while my wife and daughters are still in bed, though I’m certain the smell of baking bread will rouse them soon enough and this weekend ritual will begin anew. This is a radical departure from what happens most days. Most days it’s a matter of grabbing what you can.

Human beings have, of course, been eating something for a morning meal forever, but it hasn’t always been so defined by the foods we associate with breakfast. Indeed, it was often whatever was left over from the night before or could be prepared with a minimal degree of effort. Historian Ian Mortimer suggests the Tudors invented modern breakfasts in the 16th century. As people increasingly came to work for an employer, rather than working for themselves on their own land, they lost control of their time, and had to work long, uninterrupted days without sustenance. A hearty breakfast allowed them to work longer days. The Industrial Revolution and the move from farms to factories formalized the idea of breakfast further. But there is more to breakfast than its function. It is wrapped up in symbolism and cultural change.

There are foods that have probably always been connected to breakfast. Oatmeal and other porridges are present early in the prehistoric record, and their invention may have changed the course of human history. Analysis of stone age tools indicate pancakes have been in the mix for eons. In fact, Otzi, the world’s oldest naturally preserved human mummy, is thought to have eaten a wheat pancake as one of his last meals.

For many, if not most Americans, the combination of bacon and eggs forms the basis for the archetypal hot breakfast. Eggs have long been a popular breakfast food, perhaps because fresh eggs were often available early in the day, but their partnership with bacon is a 20th century invention. In the 1920s, Americans typically ate fairly light breakfasts, so public relations pioneer Edward Bernays persuaded doctors to promote bacon and eggs as a healthy breakfast in order to promote sales of bacon on behalf of Beech-Nut. And so it was that the iconic breakfast combination was born. The American breakfast landscape was again altered in the latter half of the 1800s. In 1863 Dr. James Caleb Jackson invented granola. In 1894, Dr. John Harvey Kellogg accidentally created a flaked cereal when a pot of cooked wheat went stale. Kellogg tried to save the wheat by putting it through a roller. It dried in flakes and corn flakes was born. That little mistake changed our breakfast traditions forever. Cereal was  convenient. It didn’t need to be cooked and it had a relatively long shelf life. Packaging made it simple to transport and to store. It saved time and effort. It fit in with a modernizing world. The larger breakfast of bacon and eggs didn’t disappear, but it was largely relegated to the weekend when time was less of a pressing factor.

And it is this shift to the weekend that is important because breakfast has become less of a way the family starts the day, and more an ideal, a representation of a life most people haven’t the luxury to take on.  Quite simply no one has time to sit down to the table and eat, let alone to cook breakfast. There are buses to catch, cars to get started, errands to run before work. There is the early-morning trip to the gym, the walking of the dog, the flight to catch. Breakfast  has become either a necessity we deal with or, and this is to my mind the interesting part, a celebration. It might be a celebration of “slow living” or bringing the family together on the weekend, but the deeper underlying element is that the meaning of breakfast changes. It is something to be savored at specific points in time.

Breakfast is now a liminal space between the chaotic pace of the weekday and the equally chaotic pace of the weekend. And that has a huge impact on the food we prepare and how we prepare them. The Saturday or Sunday breakfast is a clear space, a point of calm. The morning roles we perform throughout the week (parent, teenager, etc.) are dropped and replaced with something more egalitarian, in many cases. Rather than breakfast symbolizing the start to a busy day where actions and behaviors are strictly kept in order to get specific things done, everyone is involved in the “performance” of breakfast and the duties are less strict. Alternatively, the celebratory breakfast sees us take on roles specific to the moment – dad the baker, mom the storyteller, boyfriends become expressions of romantic fiction made real as they prepare the perfect avocado toast, etc. The point is that breakfast provides a time for us to explore alternative identities that are fleeting and therefore precious. The act of making becomes as important as the food itself.

The rethinking of what breakfast means in this particular context ultimately has an impact on the ingredients we choose to cook with. As we allow ourselves to slow down and drift into moment largely outside of time, our ingredients can become more indulgent, more refined, or more experimental. We buy organic bacon from the local farm and break out the Irish butter that sells for $8 a pound. We crack open a box of Fruity Pebbles (an unhealthy product we might refrain from during the week) and add them to our waffle mix simple because it’s fun. We make huevos con chorizo to go with the bread our Swedish friend taught us to make. There is a purity to this, a sense of personal transformation, even it’s only for an hour out of the week. From a marketing perspective, this opens up a world of creative opportunities.

But is there a level of relevance beyond breakfast? Of course there is. Culture isn’t static, it is subject to change. That means your product and your brand are reflections of that cultural and symbolic give and take. In marketing and advertising, reaching the deeper elements of meaning play a key role in determining the success or failure of any campaign, strategy, or innovation. Through proper, thoughtful deployment of verbal, visual, and performative elements, companies can strengthen their reach to their customers by expressing the deeper elements of what a product, an action, an activity mean. The catch is recognizing there’s another layer of meaning just below the surface. What people tell you they believe isn’t necessarily a reflection of the “truth”, but rather a series of “truths” that are shaped by context and time. Regardless of whether you’re brand makes organic oats or auto parts, ask yourself the following questions:

  • Is there synergy between what you’re trying to convey and the underlying system of signs,  symbols, and actions that govern interpretation by the consumer?
  • What elements of culture influence the way different combination of images and words are perceived?
  • Are there stories and archetypes that can be directly associated with your product of brand?
  • Are the different symbols and signs used in your communications coherent?
  • Have you considered how deep metaphors could influence the way your idea is perceived and acted upon?
  • Do you foresee any clashes in meaning between what you seek to project and what your audience may perceive?
  • Can customers associate your visual, auditory, olfactory, and tactile stimuli with your product or service?

Sending the wrong signals can be destructive to your brand. It negates whatever intent you may have. But getting those signals right gives you a leg up over your competition. It drives innovation, creativity, and more effective strategies.

And with all of that, it’s time to pull the bread out of the oven, rouse the family, and celebrate the day.

Culture and Marketing

Change in Media, Change in Targets

It’s time to update the idiom. There are three things certain in life: death, taxes, and…branding. People are exposed to thousands of commercials in various mediums every day, including radio, television, social media and print. This adds up and evolves, resulting in the average individual adult or child being exposed to countless varied ad instances every year. But quantity is not the only thing that is changing. In the past, advertising was largely a one-way communication. Now, customers are taking control of the products, services, and the way they interface with them. In other words, audiences can volley back and participate in the millions of advertising interactions they experience every day. “It is shared communication, not only between the firm and customers but between actors in the marketplace.”

This dynamic personalization has advanced the industry beyond just marketing to personas, segments, and averages. We can be more specific in our design – we have the technology – and that has upped the bar. Today’s marketer should be able to 1) recognize every customer as an individual, delivering 1-1 experiences that feel one-of-a-kind in the hearts and minds of consumers, 2) know the discrete intention of every engagement, and 3) own every moment. Thus, the future of marketing lies in the battle for these micro-moments, shared in the space between the brand itself and the consumer’s response. Creating trust in this space, between brand and audience, is then vital. And the internet is influencing this interaction.

It is easy to see, then, that the moving target that is impactful advertising is only moving more quickly as the nature of advertising continues to evolve. Mass marketing isn’t dying, but it is definitely going through some natural selection. This denotes a change in what has long defined the consumer marketplace as fragmentation and niche groups come to define cultural patterns and, as such, hyper-targeted audiences. Increasingly sophisticated technology has enabled consumers to skip over these mass-market models, allowing people to quickly and easily search out specific products that speak to them. And data shows that this new self-curated buyer journey leads to consumers committing their dollars to brands that, across digital channels, give them content they care about1. In other words, people are choosing brands that help them define their individual identities and build their tribes over brands lacking a certain cultural trust or significance.

In this cultural resonance we find a huge opportunity for brands: people don’t hate advertising as much as they may claim. Now more than ever, brands are part of culture and identity – i.e. things consumers want to cultivate. 83% of people agree with the statement “Not all ads are bad, but I want to filter out the really obnoxious ones.”3  Translation: consumers don’t hate ads so much as they hate irrelevant ads, meaning ads that don’t speak to them functionally or emotionally. To endure now, successful brands must adopt a process that gives consumers a more relevant experience wherever and however they shop4. The experience will need to continuously optimize based on cues from the market and the target audiences2. This strategy will improve conversion rates, foster communities, and drive advocacy. Ultimately, brands with staying power will create a steady reciprocal relationship with their consumers, turning them into powerful ambassadors and fanatics.

So what do I mean by culture here? Culture is the sum total of shared values, ideas, beliefs, behaviors, and ideology of a group of people. You might say it is the glue that holds groups of people together and shapes their identity. Drawing on our extensive experience working in cultural influence, we tend to agree. When developing a campaign or marketing plan, other people tend to focus on benefits, features, and superficial aspects of the target audience. But, when we talk about a focus on “culture” we are talking about the deeper emotions, motivations, and associations people have with an activity, product, or service, many of which are subconscious. Culture is not a trend, though trends may impact it. Rather, culture is comprised of cognitive, social, and conceptual “frames” that people build upon. Think “pants”. Stylistically they change over time and if you make them, you better stay on top of the trends. But at a deeper cultural level we have an understanding of what pants are regardless of time. Understanding the deeper concept – what signals pants versus what makes bell-bottoms – and how it’s constructed gives you an incredible amount of power.

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Perhaps the most important piece to remember is that culture is a process. Culture is shared interactions, which means it is fluid. The reification of culture (regarding culture as a thing) leads to a notion that “it” is a thing that can act almost independently of human agency. But culture does not. Culture is subject to change and change can be controlled, or at least influenced, in any number of ways, including how we insert a brand into a person’s life. There are undercurrents and motifs that remain focal points through time, but they are always subject to restructuring. We are able to harness this cultural restructuring into a step-by-step analysis to approach, influence, and react to audiences.

First, cultural change is a selective process. Whenever cultures are presented with new ideas, they do not accept everything indiscriminately2. A marketing message or innovation is most likely to be diffused into a recipient culture if: (1) it is seen to be superior to what already exists; (2) it is consistent with existing cultural patterns; (3) it is easily understood in the context of their symbolic and functional constructs; (4) it is able to be tested on an experimental basis; and (5) its benefits are clearly visible.

Second, new ideas, objects, or techniques are usually reinterpreted and reworked so that they can be integrated more effectively into the total configuration of the recipient culture. In other words, people don’t simply consume marketing, they interpret and reinvent it.

Third, some cultural traits are more easily accepted than others. By and large, technological innovations are more likely to be borrowed than are social patterns or belief systems, largely because the usefulness of a particular technological trait can be recognized quickly. But technological advancement can only get you so far. For instance, by any reasonable measure, the US should have adopted the metric system by now. The thing preventing it is a lack of cultural connection. The same process holds true for brands.

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This cultural function means that the brand someone selects, that she is loyal to, is driven more by the deep emotional and cultural needs than by features and benefits. The sustainable brand, the brand that draws people to it again and again, reflects cultural truths. When you identify those deeper truths, you build a much deeper, more authentic connection both to that individual and to their “tribe”. From a strategic perspective, it provides you with more nuanced and adaptive creative, the ability to identify the right channels and platforms in which to market, and a long-term roadmap to evolve your communication as the brand grows. At a practical level, it means sustainable ROI and target audience ownership.

We believe that to be relevant and long-lasting a brand – one that sees return on innovation and investment – must operate like a member of culture alongside its consumers. A company must share out its core values and articulate WHY it exists. A brand must stand for something and drive people to participate in it, become part of it. People want to belong to something bigger than themselves.

 So, we know we must tap into a brand’s cultural depth with its audience. We need to build and recognize trust and grab a piece of it. And that’s how you get a share of culture. If we were to define it for a textbook, we’d say Share of Culture is the positive feelings, attitudes and beliefs shared between a brand and its audience. We believe the key to creating marketing campaigns that resonate today is to leverage your audience’s culture, seeing the bigger picture and building a reciprocal space. And, in the end, placing your audience’s culture at the center of marketing strategies creates sustainable ROI because culture has the power to nurture stronger, longer lasting and more engaged relationships with your audiences.

To be relevant and long-lasting, a brand must operate like a member of a culture – an equal participant. At the same time, it must own a piece of it. To rephrase, a company must share out its core values and articulate WHY it exists. And because people want to belong to something bigger than themselves9., when they make a purchase – whether it be a home, a new gaming system, or vacation package – they are actually using that product or service to add meaning to their lives. The meaning that has been created in the goods and services is not intrinsic to those goods and services. The meaning is created as the brand interacts with culture. It’s actually our culture that says a diamond has more value than a ruby, and gold has more value than silver, an Apple mobile device has more value than a Nokia, etc. If you come to marketing from the vantage point of added meaning, it suggests that choices consumers make have great symbolic connotations, both within their life and without. From that perspective, the marketer has a responsibility to do the right thing by those consumers – the brand’s peers within their share of culture – who are choosing a certain product in order to craft their identity. The trust and respect between brand and buyer has been established. The result of building this sort of reciprocal bond is that you move customers from being loyalists to being advocates by establishing a very strong sense of brand affinity through meaning.

 

 

Brands, Ads, and Culture

The old advertising model advocated the creation of an external brand image to influence consumers. It talked about benefits, it talked about the company, it promised to give you sex appeal. Those times are long past. This is partly due to the sheer number of channels in which people interact, but we believe there is a deeper reason. And that deeper reason is that successful brands both reflect and transform culture. In other words, talking about what you do is no longer enough. To compete in today’s landscape, you have to convey why you exist and connect it to how people experience their world.

Today we’re seeing that certain issues which could be considered secondary to a brand are suddenly primary. People are not just choosing the best, the sexiest, or the cheapest. They’re choosing brands that have meaning. Their concept of nature, of self, of society takes center stage. And this is where brands taking on a new and intriguing role.

So, what role does brand play in this landscape? The simple answer is that brands become symbols for crafting identity. They introduce, reflect, and influence meaning. The most resonant brands are creating value not just by the products or services they represent, but by the symbolic power they impart.

We believe that to be relevant and long-lasting, a brand must operate like a member of a culture. A company must share out its core values and articulate WHY it exists. A brand must stand for something and drive people to participate in it, become part of it. People want to belong to something bigger than themselves. People need to be part of a tribe.

It’s Not Just Price: The Role of Cultural Capital in Marketing

It’s not always about the money.  Yes, the economy has driven people to be more thoughtful about how they spend their money, but it has equally driven people to think about how their purchases reflect on themselves, how they interact with the world and how positive experiences during the shopping act help them preference one location over another.  This isn’t always conscious – indeed, it rarely is.  People seek cultural and social capital when shopping and returning to our old friend Bourdieu can provides an interesting framework for our design decisions.

So what did Bourdieu have to say about these two concepts?  At the risk of being labeled a reductionist, the overarching themes are these: Cultural capital makes up the forms of knowledge, skills, jobs, education, and advantages that a person has, which give them a higher status in society. It can also be argued that the things we possess and the places we buy those things provide a form of material cultural capital.

Social capital are the non-tangible resources we possess based on group membership, relationships, networks of influence and support. Bourdieu described social capital as “the aggregate of the actual or potential resources which are linked to possession of a durable network of more or less institutionalized relationships of mutual acquaintance and recognition.”

In a nutshell, then, not all capital stems from economics and systems of direct exchange.  The car we drive, the stores we shop at, etc. provide a means by which we project and exchange social and cultural influence. In one context, Levis are a sign of middle class stability, in another they become a sign of blue collar chic for the wealthy.  So while economics, traditional economics, plays a part in the overall pattern of shopping, it is not as simple as unit price.

Cultural capital has three subtypes: embodied, objectified and institutionalized.

  • Embodied cultural capital consists of both the consciously acquired and the passively “inherited” properties of one’s self (with “inherit[ance]” here used not in the genetic sense but in the sense of receipt over time). Cultural capital is not transmissible instantaneously like a gift or bequest; rather, it is acquired over time as it impresses itself upon one’s character and way of thinking.
  • Objectified cultural capital consists of physical objects that are owned, such as our cars, works of art, or even our groceries. These cultural goods can be transmitted both for economic profit (as by buying and selling them with regard only to others’ willingness to pay) and for the purpose of “symbolically” conveying the cultural capital whose acquisition they facilitate. However, while one can possess objectified cultural capital by owning an object; one can “consume” the car, the painting and the groceries (understand its cultural meaning) only if one has the proper foundation of conceptually and/or historically prior cultural capital, whose transmission does not accompany the sale of the object.
  • Institutionalized cultural capital consists of institutional recognition, most often in the form of academic credentials or qualifications, of the cultural capital held by an individual. The institutional recognition process eases the conversion of cultural capital to economic capital by serving as a experience-based model that sellers can use to describe their capital and buyers can use to describe their needs.

It is typically the objectified cultural capital that is the focus of many retailers, and it is perhaps the easiest for them to identify. However, embodied and institutionalized cultural capital are equally important because they reach the intangible.  They reach those depths of the human experience that are the most enduring.

Using Cultural Capital

It’s not always about the money.  Yes, the economy has driven people to be more thoughtful about how they spend their money, but it has equally driven people to think about how their purchases reflect on themselves, how they interact with the world and how positive experiences during the shopping act help them preference one location over another.  This isn’t always conscious – indeed, it rarely is.  People seek cultural and social capital when shopping and returning to our old friend Bourdieu can provides an interesting framework for our design decisions.

So what did Bourdieu have to say about these two concepts?  At the risk of being labeled a reductionist, the overarching themes are these: Cultural capital makes up the forms of knowledge, skills, jobs, education, and advantages that a person has, which give them a higher status in society. It can also be argued that the things we possess and the places we buy those things provide a form of material cultural capital.

Social capital are the non-tangible resources we possess based on group membership, relationships, networks of influence and support. Bourdieu described social capital as “the aggregate of the actual or potential resources which are linked to possession of a durable network of more or less institutionalized relationships of mutual acquaintance and recognition.”

In a nutshell, then, not all capital stems from economics and systems of direct exchange.  The car we drive, the stores we shop at, etc. provide a means by which we project and exchange social and cultural influence. In one context, Levis are a sign of middle class stability, in another they become a sign of blue collar chic for the wealthy.  So while economics, traditional economics, plays a part in the overall pattern of shopping, it is not as simple as unit price.

Cultural capital has three subtypes: embodied, objectified and institutionalized.

  • Embodied cultural capital consists of both the consciously acquired and the passively “inherited” properties of one’s self (with “inherit[ance]” here used not in the genetic sense but in the sense of receipt over time). Cultural capital is not transmissible instantaneously like a gift or bequest; rather, it is acquired over time as it impresses itself upon one’s character and way of thinking.
  • Objectified cultural capital consists of physical objects that are owned, such as our cars, works of art, or even our groceries. These cultural goods can be transmitted both for economic profit (as by buying and selling them with regard only to others’ willingness to pay) and for the purpose of “symbolically” conveying the cultural capital whose acquisition they facilitate. However, while one can possess objectified cultural capital by owning an object; one can “consume” the car, the painting and the groceries (understand its cultural meaning) only if one has the proper foundation of conceptually and/or historically prior cultural capital, whose transmission does not accompany the sale of the object.
  • Institutionalized cultural capital consists of institutional recognition, most often in the form of academic credentials or qualifications, of the cultural capital held by an individual. The institutional recognition process eases the conversion of cultural capital to economic capital by serving as a experience-based model that sellers can use to describe their capital and buyers can use to describe their needs.

It is typically the objectified cultural capital that is the focus of many retailers, and it is perhaps the easiest for them to identify. However, embodied and institutionalized cultural capital are equally important because they reach the intangible.  They reach those depths of the human experience that are the most enduring.