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A CLIMBER'S GUIDE

“Cheating the Public”
11/26/2007

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In this weekend's Wall Street Journal, the headline in Leading the News read, "Discounts Draw Crowds of Shoppers."

Kohl's, Macy's, JC Penny, etc. did a huge volume of business on "Black Friday" (named for it's alleged ability to move retailers into profitability for the year). But in the end, the 2007 forecast for these retailers is still bleak, regardless of how much volume they did the day after Thanksgiving. It's the largest example of an addiction to the quick high of sale based advertising rearing its ugly head again. The fiscal year is what matters - not one weekend.

One more time, among the many reasons, the number one reason that advertising fails to produce results: THE DESIRE FOR INSTANT GRATIFICATION!

This year, retailers created loss leaders with deep discounts on their low end, cheap merchandise while trying to recover with higher profits on high-margin merchandise. The problem is, not many people are buying the higher-end stuff right now. The net result is that most retailers are spending countless millions in Thanksgiving holiday ad-hype but they're ending up with nothing to show for it. This is a huge problem that the business world continues to turn a blind eye towards.

After the "Black Friday" dust settles, the fiscal year numbers will reflect the strength (or weakness) of their brand - not the volume of business they were able to generate this past Friday. The majority of retailers are trying to cover up their flawed brands with a hit of "Black Friday" cocaine and failing to move their brand forward with long-term, increased market share.


Meanwhile, let's look at one of the national retailers that is avoiding the short-term mentality of the 'quick hit' and achieving significant increases with long-term consistent advertising that's based on winning the heart of its customers with emotionally based advertising:

While Macy's, J.C. Penny's and Kohl's are screaming 50% off every other week, Target is standing up their brand consistently, creatively and unexpectedly every month of the year. Yes, they are a low price, discount retailer but they use their advertising to impress upon the public that they are a more attractive option than their short-sighted, hype driven, cocaine snorting competitors. Target then takes the most critical step in the marketing process by creating a shopping experience that supports that brand. They create a better atmosphere with more intelligent merchandising, brighter lighting, wider isles, better customer service and a more comfortable overall environment.

They also execute a disciplined media buy to make it work. Consequently, Target has quietly become the fifth largest retailer by sales revenue in the United States. The company is ranked 33rd on the 2007 Fortune 500. Essentially, Target is killing their competitors without a bit of 50% off, hype driven advertising - from what I can see.

J.C. Penny, Macy's and Kohl's should all take a lesson.

Let's look at a local example:

A furniture store is currently conducting a 'MILLION DOLLAR SELL-OFF' by offering: "UP TO 65% OFF EVERYTHING IN THE STORE." How blatantly manipulative is this offer? Consider the language: "Up to 65% off" means that one item in the entire store could be marked at 65% off - yet it's communicated in a manner that potentially makes the supposed unsuspecting public believe that it applies to "everything."

Next is the obligatory, "DON'T MISS THIS EVENT BECAUSE IT ONLY HAPPENS ONCE A YEAR." Yet, this same store just completed their first 'Million Dollar Sell-Off' just a few months ago.

The next line tells us that "Everything's on Sale for Dimes on the Dollar" which means nothing more than the copywriter found a clever way to communicate the manipulation.

Some people will respond but again be warned - less and less are taking the bait. We are becoming more aware of, and numb to, the tactics everyday.

The real problem is that the truth is not as exciting or as convincing as the deceitful tone of over-blown hype - and that is precisely why advertisers are so addicted. The truth itself is not enough because without unpredictable creative it looks and sounds like just another pitch.

The truth that we are told is a truth that we ignore - the truth that we come to realize on our own is the truth that we'll come to accept.

Engaging creative helps you to accomplish this with metaphors and symbolic truths that are unexpected or unpredictable. This is what emotional advertising is all about - telling people what they already know but helping them to accept it and feel differently about it.

Take a lesson from Target and tell the truth, but do it creatively, consistently and unpredictably. It will improve your brand and your bottom line without ever having to deceive anyone. Don't cheat the public and waste your ad dollars because the alternative works. You simply have to start using the truth to move your brand into the future with great success.

Keep climbing,

Jake


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