Tag: Costco

On being an influencer

Like it or not, we all are either on the receiving or giving end of Influence.

But few understand what constitute sphere of influence.

A study on the subject, by Cialdini , lists below elements:

– Like (ability). This is self-explanatory. When you like someone or are liked by someone, nothing can go wrong.

This explains the “a priori” principle: we read into a situation or person due to our early imprints (trust that face that resembles mother’s – Oil Olay commercial uses “First Time Ever I Saw Your Face ” to resonate and resurrect that trust). Charismatic personalities, cinematic and telegenic figures all got our vote of confidence (Kennedy-Reagan).

– Social proof. The majority get to decide and have the final say (free election, trial by jury). We took this at face value (in experiment, a decoy looked up to a highrise. After a while, a huge crowd gathered to look up to the sky as well.) Conformity principle is a sub-set of this: pagelink, youtube, McDonald (billions burgers served).

– Consistency. We need that congruence between past choices and new ones. That way, we can live with ourselves.

e.g. membership fees and bulk buying (Costco and other Reward cards). Ultimate antidote to “buyer’s  remorse” (Zappos free-shipping for returned merchandise – relies on people’s resigning to a faith accompli).

– Reciprocity.  “loss leaders“: they first scratched our backs, then, we scratch theirs. Customer life-time value is worth much more than an initial and temporal “loss”. This is where brand and habit buying takes over ( path of least resistance ). Casinos give out VIP free rooms and/or buffet.

– Scarcity. How many times have we seen an ad, then rushed to the store, just to find out the item was no longer available. Then, with a rain-check , we are more convinced (influenced) due to scarcity. Right now, investors are worried that I-phone 5 are in short supplies.

– Authority. The ultimate pair-association in advertising: Angelina Jolie , Sean Connery and the Gucci bags.

We want to identify with and project ourselves onto these icons. After all, 007 has ducked the bullets for 50 years.  What if we can be like them (immortal), in some ways? Well, they travel light and high on Gucci. That purse got cloud.

It got their endorsements. Their “Likes”. After all, 007 must know how to choose his “gadgets” .

Now you know. We influence and be influenced by others. A test: put your parents through this check list. See if each and every single item fits the bill. I bet you they did. Our parents: our ultimate influencers. They first gave us life (reciprocity), then they sustained us (sorry, I have to use the past tense in my case) – commitment and consistency, from cradle to the grave.

Then when they were gone, there are no replacement (scarcity). Of course, they were the authority (I still wanted to buy those sesame-seed cakes my Dad and I used to eat after our weekly noodle  breakfast or mom’s fermented rice for snacks).

And I like them. They liked me. Social proof: everyone likes and loves their parents. Period. Case closed.

Knowing these principles, you can improve your sphere of influence, or be innoculated against unsubstantiated claims of social proof, or build better resistance against those who initiated reciprocity cycle (Hari Khrishna free roses at the airport).

Be the best influencer you can be. It’s a world-wide web in need of good and selfless influencer like yourself. Keep feeding the network, pay forward. When good men just stood by and did nothing, we would end up with the wild wild web.

Moon Cake

You can’t possibly finish one all by yourself.

In fact, when I was a kid, I remembered it got cut up not into four but eight pieces, like we would with a Costco pizza.

Slices of sweet moon cake, in all varieties.

Big confectionary  revenue every year in China and Vietnam.

Although it’s a Children Festival,  adults are in for those cakes as well. Later, it evolves into an occasion for gifting, and acceptable bribing.

Sweeten the deal.

It’s almost as if  business and adults  have hi-jacked what few festivals  children got left for themselves.

Let’s face it. In the West, we got Halloween. Then college students hi-jacked it with frat’s costume parties. Even at work. So Halloween spreads to other unintended age groups.

In the Far East, we see similar phenomenon: the commercialization and co-opting of  traditional events by the Retai industry.

As long as you can “create” a “first” event. Next year, it will become the Second X event, then Third…

Some events no longer reflect their original raison d’etre. Hence, a need for self-created tradition  (South by Southwest, TED). Somehow, cultural legacies are associated with “uncoolness”.

Malcom Gladwell recalls his Jamaican aunt (light-skinned) disown her dark-skinned daughter when she met a light-skinned man. In Outliers, he makes a case for cultural legacy,  which, after extensive analysis, proves to be the bedrock of  immigrant success. Personally I also found American cultural tapestry as strength (German Beer Fest, Irish pipers, Little Italy etc …helps induct me to early American immigrants) and not weakness. Case in point. I often run into bi-racial couples who took their half-breed children to these festivals. The “foreign” spouse indeed finds those cultural events fascinating. Perhaps he/she hopes to find some clues into the make-up of his or her spouse, or to simply please him/her culturally.

And it’s only fair. Because to marry into a dominant culture, one has to sacrifice and let go things that are deemed “strange” e.g. instant noodles, chopsticks (in California, sushi and Pho restaurants are actually operated by Korean business people, rather than Japanese or Vietnamese).

So this Blue Moon, full moon and Moon Fest. Go out and join the “strange” people. They have their reason behind the season. Find out the fairy tale, their  pre-Neil-Armstrong perception of the Moon. It goes well with Slow Rock. Makes for a perfect slow dance, while the children are occupied with their own lanterns. The commercial world does go ahead of us . But then, maybe they know us more than we do ourselves. After this weekend, watch for the Halloween pumpkin stand. Coming around the corner, literally.

The flow

We woke to all sorts of noise, among them the flow of traffic.

Resting by the lake after my few-mile run in the heat, I noticed all sorts of creatures: squirrels, rabbits and ducks.

As peaceful as could be, yet we don’t often say “I’ve got peace like a lake”. We say, “I ‘ve got peace like a river”.

River flows. Water moves. Ocean and  tide. Moon and Mars. Can’t stay still. Thought flow, money flow from hand to hand.

New games got invented everyday. Skin rejuvenation, sex drive rejuvenation and self-reinvention. Press “reset”. Be kind and rewind.

Get to be old hats.

One birthday piles up on top of another.

Summer time.

Vacation time.

Sabbatical.

Just lay low. Under the radar. Poor man’s vacation. But vacation nonetheless.

Dollar Stores are still doing well. Costco is expanding. And any kind of drinks is still sold for a buck at McDonald’s.

Money is changing hands, but not a lot .

Us, playing and making a living by being in the middle, got less, by the percentage.

Nokia shut down its offices at home. Industries see a lot of volatility and fluctuation.

Brands however endure especially in uncertain times: Ford, Coke and Costco. Sweet and more sweet as we got sweated.

Got to reward ourselves. Got to have that Gatorade, under the scorching sun. Can only stand in opportunities’ way that long. Not without taking a break . Jackson Brown says, ” opportunity likes to dance with those who were already on the dancing floor”. So swing and sway, but stay the course. Go with the flow of music. The tempo will change. It always does, even in the worst of times. Even now, things don’t stay static. It flows even when we are asleep.

Empathize and Energize

You wish your co-workers are all into that. They know how you feel, and because of who they are, they take it up a notch.

The virtuous cycle. Feeding into it is like fueling the fire. Passion, dedication and yes, winning.

Don’t you miss working in teams with those qualities? Pettiness has no place there. Grumpiness? Out.

Just win.

Know how you feel. I felt the same way. But I found that…. FFF.

One cannot just go out to Costco or Target and get a software package that says “Empathy” or “Energy”.

BTW, the Cosco‘s of the world are expanding, pushing Mom and Pop stores to the outskirts.

Meanwhile, fresh produce and Supermarket chains just can’t justify open more location in inner cities where kids have no choice but fast foods. I know the First Lady got her pulse on this issue (as opposed to Jackie O and Nancy Reagan who just wanted to remodel the White House or consult an astrologer).

Back to Empathy and Energy.

Energy is contagious. At the Olympic, they still do the Wave. You get caught in the spirit of the time and the place.

Just a sea of humanity, cheering and jeering.

You want to be energized? Hang out with high-energy people. The paradox of energy is that it needs to be burned to reproduce (just like the Phoenix rises from the ashes).

Empathy, on the other hand, requires immersion. You step into the other’s person shoes and character. Feel the emotion: sadness, joy, triumph, and disappointment.

Who wouldn’t go through those ups and downs at times.

Companies don’t realize people are people i.e. there are days, they feel elated. Then, other days, they can barely show up. The leader’s job is to be cheerleader, counselor, coach and not police.

Let’s hope your team support each other as you lead them to victory. Nothing is sweeter than to win as a team. Bravo!

Fragmented and segmented

Marketers have had a field day over the last few decades: market fragmented and segmented.

The former is a reality in our pluralistic society. The later, careful study and strategy to go after niche markets.

Microtrend covers this very topic: knitting, teen markets etc…as long as the niche constitutes 1% of the total mass market.

It’s a paradox: while American travel more, buy more online, and outsource more to overseas; foreigners who came FOB ended up clustering in Chinatown, Chicano town etc.. to  insulate themselves culturally.

In my neighborhood, the “turf” and territory have invisible boundaries: one supermarket got turned over from Korean to Chinese owner, both cater to Vietnamese-American.

Next block, you will find a Vietnamese restaurant, struggling to have walk-ins in the middle of a predominantly Hispanic strip mall.

Meanwhile, the “white” folks in mobile-home parks either too old to move away, or couldn’t decide to cash out during the real estate boom (mobile home here was worth more than a house elsewhere), hence missed out the bubble.

Talking about fragmentation.

Being a marketer, mindful of ethnic variety and overseas flavors, I have never stopped being amazed.

Underneath it all, everyone seems to enjoy a loss-leader hot dog at Costco, or Tu-Th Pop Eyes specials.

America and its lowest common denominators.

At the public park, I also notice Asian women still wear hats to avoid skin cancer. No more cone hats (which BTW, were most efficient per material used, heat-preventive and light-weight), but straw and trendy hats Victoria Secret models would wear for summer catalogue.

In short, the process and idea of Americanization is still going strong. New blood are being added daily, if not hourly (at major ports of entry).

But they seem to follow a certain set pattern of acculturation: first outwardly, then internally (bi-lingual households, interracial marriages etc..).

Segmentation divides a map into red/blue states, Southern White, Non-Hispanic White (European American) …Not as easy as just buying a Super Bowl ad, since digital media start taking an increasing larger share of the Ad pie.

In this close election, this point hit home, for the White House or the green house (another micro trend: home-grown organic fresh).

Ads during downturn

You might think that business are spending less on advertising during the down turn. Think again. Financial, insurance and banking, all pumped more ad dollars into the system.

Meanwhile, more VC‘s are of “angel” nature (this explains why Facebook can afford taking its time before next year’s IPO), the 21st century version of Independent Film producers Model.

Just as we need to see growth, we all read about Google and ATT facing anti-trust hearings.

Maybe they should pump more dollars into PR’s and ads e.g. “we are the good guys!” But Yelp is yelling for help.

Talking about ads. Last week, we saw something so “black Friday’ish” at Target.

Its site crashed. Its stores ransacked.

Wow!

What recession?

It is to show that Costco and Target are reading the signs of the time right.

The former gives people peace of mind, in bulk.

The later, affordable clothing, in style (its demographic target: stay-at-home moms but want to get in with the action – fashion wise).

Ad has always been at the forefront (even during the time of war “Uncle Sam wants you”).

It nudges and leads the public opinion. It helps Netflix CEO draft  a written apology (e-mail blast).

It reinvents, renames companies and divisions (Netflix and Qwikster, streaming and snail-mailing) and erases (un-branding) names (remember Cingular?).

It could even handle personal “exit strategy” i.e. NYT obituary (of Mondale’s and Ted Kennedy‘s daughters).

We need copy writers. We need ad men and women.

They persuade, inform and entertain us, even during the down turn.

It’s so counter-intuitive for companies to spend more when they know consumers are spending less. When we come out of this Recession, advertising will be reaping a huge reward both on and offline. Advertising has proven to be resilient across multi-platforms : successful companies rely on ads by choice, suffering companies  rely on ads by default (can’t afford opportunities cost). Ads during the downturn.

Marketing genius

Charlie Chaplin would keep filming until he got it perfect (100:1 filming ratio to get the ladder to swing just right etc…).

In “the Kid“, the little girl would throw rocks at windows, while our handyman walks right behind to fix them.

Gillette would give away razors just to sell the blades (HP has done the same with its ink).

Levis would sell jeans during the Gold Rush, along with those who profited by selling picks and pickaxes.

Sony founder had his reps wear bigger shirt pockets to fit his “portable” radios (showmanship par excellence).

Hyundai founder tried his hands at the Pony, while Detroit was busy with its Pinto.

Pepsi had its “taste test” with blindfolded customers, while Wendy used little old lady for “where is the beef” campaign.

Barnes and Nobles followed Moses down the mountain, saying “let my people read” (beyond the tablets).

Woodstock organizers did the same when they decided to “let my people in”.

Costco built its shopping carts bigger than others (as a results, people bought more paper products) while Cisco bought up its competitors to solve innovator’s dilemma.

Apple launched its I-phone, with long lines wrapped around New York and San Francisco’s street corners. Chinese-Americans would buy them in bulk to stock up for their next suit-case entrepreneurial trip (where do they think the phones were first manufactured in?).

And the mother of them all is Facebook, where out of our own volition, we volunteer our intimate information, information we wouldn’t tell our mothers, so they can help advertisers target the right kind of demographics.

Marketing genius! They know about us more than we do ourselves.

Facebook went from on-campus to off-campus, from Tulane to Tunisia and flourished in an era of change, from Apartheid to ARPANET. The tiger is out of the cage, with its long tail. Nothing is for free. I learned that after my first 5 minutes of silent movie (wheeled around on the back seat of the peddler’s bicycle). Charlie Chaplin was timeless.

We all had our shares of being had by marketing genius, willingly especially during Super Bowl, the Davos of them all.

 

The road most traveled

Fireplace (fake or real), Christmas tree (fake or real) and toy boxes (stuffed or life-sized), all

put together to create a Hollywood home version of  White Christmas, the illusion that we are OK and what-and-how-much we charged at the registers won’t haunt us in late January.

In America, the road most traveled has been to the retail outlets. I live near a Costco.

And by sheer size of traffic leading to the store, I can read the health of the economy. When it comes to the economy, I am a bush man, unable to verify “supply side” from “trickle-down” economy.

There is a PBS documentary showing Americans in Paris during the 20’s.

Some say they came because of the Prohibition at home. Others say it was because the War exposed these young men to a wider (and wilder) world.

Whatever the case may be, more Americans have stayed home to watch others arriving at their shores  since WW II. Then, the latest census shows a decline in new arrivals.

Gas price increases not because of increased consumption in the US, but because of BRIC‘s nations.

For the first time, Americans feel the pinch not caused by domestic factors. Yes, we have been blamed for over consumption that brought up the level of carbon emission. But, lately, carbon emission have caused by high rises in Dubai and Eastern China.

Cars have been downsized in the US (Fiesta, forever), and refrigerators for dorm room from China are selling like hot cakes. I keep seeing people buying bikes at Wal-Mart.

Baby-boomer’s life-style trend. But the solution is still the same: shopping for items, large or small.

When we prepare for emergencies like Y2K, we went shopping. When we are celebrating Christmas, we go shopping.

When the economy is down, or right after 9/11, the President called on all Americans to go shopping. Robert Frost wouldn’t comment on the current state of affairs, since he must be the only one who took the road less traveled.

His other most quoted line “fence makes good neighbors”. Solitude and austerity don’t cut it . It’s a nation favors the road most traveled. When the road took an unfavorable turn, the youth went somewhere else. Twice in recent memories, they either went to Paris (Prohibition period) or Canada (during the Vietnam era) in protest.

Can you imagine everywhere you go, you run into the same people (let’s say, seeing all your friends in Ha Long Bay over Tet).  Or worst, at Costco while waiting in line paying for fake trees, fake boxes and fake firewood.

“Two roads diverged in a wood…I took the one less traveled by, and that has made all the difference.” The other, most traveled, has a huge billboard which urges you to “shop for things you don’t need, with the money you don’t have, to impress people you don’t like”.

 

Listening across the cultures

Listening is hard to begin with (just ask a psychiatrist).

Listening across the cultures is doubly hard. It requires an extensive grasp of the others’ frame of reference.

As technology enables the world to shrink, more groups join the globalized market.

(The PM of Malaysia was on GPS telling Fareed that in the 60’s, Malaysia poverty rate was more than 50% – it is now under 3.5%).

Shop till you drop.

Yet, we don’t listen to what our constituents are telling us. The algorithm from Amazon seems to do a better job.

At least, it mined data of my past purchases, and recommended similar products.

Listening is hard work.

In The Empathic Civilization, the author touches on our increased capacity to empathize, as more and more studies on how the brain works are released. To listen is to engage, to comprehend and to visualize being in their shoes. In short, to empathize.

Beginners in Sales were often taught to “push” their products and to sell features and rates, all the while praying for the law of average (numbers game) to work.

Until the pipe line runs dry, and these feature salesmen hit a drought.

Who are the customers? What do they really want? What are their felt needs? How can we uncover those needs and wants, then to show that gap between need and solution which brings values. A sale is just a beginning of a life-long relationship.

I was fortunate to have worked in multi-cultural teams, serving the needs of a multi-cultural market place.

In our team, you can find Russian, Middle Eastern, Eastern European, Indian, Filippino, Japanese, Korean, Chinese, Hispanic and Vietnamese. We  catered to Arminian, Cambodian, and everyone else in between.

It forced me to be culturally sensitive. What’s underneath the tip of that iceberg? What should be left unsaid? What should be uncovered?

There will always be misunderstandings across the cultures (comedians have a hard time cross-over this gap). And this makes negotiation much more challenging (we revert to the path of least resistance, and assume – with arrogance – that we know what they want).

People in general speak through their body language.

To listen across the cultures,  one needs to listen with both ears and eyes. Ask open-ended questions, and watch HOW the person across the table answer those questions.

I walked across the street in San Francisco once, with two really tall Eastern European resellers. One guy had his head shaved, the other long hair (makes me look like Chow in Wolfpack) . Then I visited another Pakistanis reseller who was always in suit and tie. And finally, I sat down sharing a meal with our Chinese agent. Food makes for good camaraderie. In each case, I morphed to “mirror” the others (be brief with Westerners, and be relational with Asians).

People want low price. Yes, but they also want a range of choices, great service and reliability (or brand).

During this recession, it seems that companies like Costco, McDonald, Nordstrom all did well because they have listened to their customers (besides consistency across all location – trust factor).

US News and World Report joined the fate of Christian Science Monitor to downsize and limit themselves to just newsstand and special issues on Hospital and University ranking.

Those are obvious examples of listening to the customers.

Yes, time is hard. It will weed out companies and consultants who did not research and respond to a diverse customer base. First seek understanding, then to be understood. The shotgun theory is out. Now is time for engagement, collaboration (across the cultures) and value creation.  If it’s too late to learn another language, at least you should try to “read” the non-verbal signals.  80% of communication is conveyed via body language (as of this edit, President of the US and China, both met “informally” near Santa Monica, without wearing a tie). Nail that, then you are ahead in this global market place. Watch YouTube where the world is trying to say something. Unless you preferred to stick with the old model T when consumers now have a choice anywhere between a Leaf and a Nano. Listening is hard because it requires you to change a hard habit in your formative years. To start, just pretend to be everyone’s psychiatrist, without the pay.

Then you might get your pay day on top of becoming a great listener who knows the what and why of the conversation across the cultures.