Archive for May 21, 2007

Do you have your MBS degree? (Marketing Bull Shit)

Marketers love to draw conclusions from the vapors of the atmosphere and place them under your nose so that they may see if you will buy “the smell of crap” whilst they call the fragrance “rose”.

I heard two amazing lumps today:

  1. Ad age (who should be ashamed) posted as it’s top article – the anouncement of the purchase of Chrysler should result in a 4.4% boost in sales just because of the transaction…. Uggghhhh. This is based on some “stretched” survey that people cared enough about the transaction to either buy, or not buy a Chrysler. Here is a clip:

    The automaker’s sales are expected to rise 4.4% this year simply because it’s under new management, according to CNW Marketing Research President Art Spinella, providing yet more evidence that consumers factor the well-being of a corporation into their purchasing decisions.

    I bet if Jay Leno toured the streets of LA in one of his famous impromptu interviews that he would find no one that even knew about the purchase.

    Also I think that Chrysler is doomed. Cerberus Capital Management will definitely make cost cutting sweeps – that is what they do. Also their philosophy states, “We invest in undervalued companies and their people, and help them to realize their potential.” Chrysler has too much value tucked into benefits and not into product. It isn’t undervalued, it’s disproportionately valued. They will have to kill the benefits to survive. The newspapers make it sound like Daimler gets an enormously bad deal… originally purchasing Chryler for $36 Billion and Selling it for $7.4 Billion. But there is a line item to be aware of – the benefits:

    DaimlerChrysler, however, will transfer nearly $20 billion in pension and health care obligations for Chrysler’s workers to the new company. That will leave Daimler as a smaller, but financially stronger company. (yay Daimler – oops Cerebrus Capital Management).

    Let’s see what Cerberus Capital Management does with $20 billion in pension and health care obligations?

  2. Banner Ads – let’s stretch them for all that they are not. In an article on ARS Technica, research indicated that subliminal impressions of banner ads could lead to positive feelings about a company.

    How are you going to sell that to a client? “Hey if you buy a banner ad and we pay for 20 different impressions, you could leave your prospect with positive feelings.” Also, we will throw in a free toaster.

    People buy banner ads in hopes of sales and click throughs, just like other online ad purchases. These banner ads don’t perform as well as links in content or text ads. Also, people argue about their ability as a strong branding tool. I don’t believe they outbrand text ads.

    So, what I am saying is….Even if a banner advertisment leaves a good brand impression and subliminal positive feelings, a banner ad is a waste of money in comparison to text advertising. That is all. The research may be true. And the research may be interesting. But don’t make it bigger than it is…. Use your marketing genius to sell text ads.

May 21, 2007 at 10:03 pm Leave a comment

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May 2007



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