WAC: How to Advertise, Communicate & Market

Phone Companies

Let's face it. Phones are amazing. Thirty years ago a Princess phone was the height of home technology. Long distance cost a fortune, if it was even possible. It could take weeks and a credit check that makes Ken Starr look like a softie (versus the pudgie he is), even to get a phone. All that's changed.

So why do we, every single one of us, hate phone companies?

Is it the massive disconnect between their warm glowing promises and their incessant telemarketing? Gee, is it their advertising?

Billions of dollars in advertising later, and we hate them more than ever.

The spoof ad is courtesy of chickenhead. Check 'em out!

Get Pink

Paul Beck, publisher of construction portal Buildingteam.com, points out that Owens-Corning (OWC) has done a helluva job branding its insulation.... the pink stuff. He notes the difference between fiberglass insulation products is virtually nil. Hence, OWC fiberglas is a commodity, and a very-well-branded one at that.

Paul is right, to a large degree. Buyers see pink as an indicator of quality, and please eschew any rude comments derived from ribald jokes. Builders -- who know the value of insulation is all in its R-rating, not its color -- still occasionally spec 'pink' for its buyer appeal.

This should translate into a higher perceived value, a higher product price, and higher profits for OWC.

The WhizzO model, however, predicts this is a degrading (declining) sales cycle. OWC pits a perceived (inferred) value against a very quantifiable benefit: a higher R-rating means lower heating/cooling costs. This is not arcane science; it's easily understood -- and acted upon -- by anyone.

What would you rather have? Pink in the attic, or green in your wallet?

We expect OWC's share to erode. Ultimately its price point will equal its competitors, and the benefit of branding will be over.

This process has been accelerated by OWC's huge asbestos troubles. In less than two years OWC stock dropped from the 40s to under a buck. They've filled for bankruptcy protection. OWC hasn't manufactured asbestos products since the 1960s. We think this outcome is lamentable; we blame lawyers; we bought some stock in OWC, regardless.

Get Pink

et's examine the heavily advertised battery business.

The three major brands are virtually identical. They're sold in the same stores. Their performance, at every meaningful level, is at a par. The only difference is their advertising and, occasionally, their price.

When you need a pack of double-A's, which brand do you buy? Maybe the bunny convinced you to buy Energizers a few years back. But do you still buy them today? Hundreds of millions of dollars have been spent to convince you to buy a particular brand of battery, so think carefully!

Are you surprised by what won?

Did you even bother to view the list?The answer's pretty obvious if we just stop and think about this whole "brand" thing, isn't it?

WhizzO believes that brand advertising is wasted on commodity products -- and most products are a form of commodity.

Battery manufacturers would do better putting their brand advertising budgets into promotions, while striking deals to prepackage their batteries with electronic products. And for a really great idea about battery marketing, be sure to check out "Got Milk?"

Lots more examples and a cool list. Well, reasonably cool.