It's Difficult to Focus on Multiple Things at the Same Time

As the Germans learned in WWII, after bombing Pearl Harbor, it is very difficult to fight a competitive battle on multiple fronts. Valuable resources get spread too thin. The best people aren't all aligned to a common strategy. Communications becomes more difficult.

The recent Google Chrome OS announcement is going to create an interesting battle for a number of reasons:

• Technology innovation (Desktop OS vs. an Internet OS)
• Freemium vs. Premium Pricing Models
• How many battles can either company sustain and still be successful in their core businesses?
• How much is Google willing to put into their non-search businesses in order to keep Microsoft from gaining traction in search?
• How much is Microsoft willing to put into Core OS (Windows) or the Internet version (lower margins) to maintain those cash flows?

And of course the most important question for MBA students - do each of these projects create a positive NPV? (ok, being sarcastic)

It must be fun to sit in the war rooms of either Google or Microsoft and plot how to block or take the other guys market (on a huge scale). Of course we do need to continually ask ourselves, are any of these actions add real value to their customers, or are they potentially opening themselves up to new competition?

Crowdsourcing a New Project

I've written about the power of crowdsourcing before, but other than a children's book that I'm trying to get created via Facebook friends, I've never really put this into practice. We do quite a bit of pseudo-crowdsourcing at work for minor ideas and feedback, but nothing that truly goes outside the walls of the existing organization.

One of the projects we have this semester involves some research into an aspect of international business that we could apply back into our existing business, or possibly use for a future business. My project involves potentially two real businesses, neither or which I am directly involved with, but at least one has several elements that would be core to something that I am very interested in starting in the near future.

The challenge of this project is that there are elements where I believe I can bring quite a bit of value and expertise, but other elements where I am really not confident that my instincts are on the right track. My gut tells me that I'm letting some (subconscious) preconceived expectations restrict my ability to see a bigger picture. So instead of making a mistake from lack of exposure, I thought I'd open this up to the Internet and see what comes back. I have no idea what sort of response I'll get back, but maybe 300-500 followers on Twitter, LinkedIn and Facebook can share a few ideas that will point me in directions I had never imagined before. Let's hope so.

The one caveat I have is that I'm under NDA for this project, so I'm going to need to be somewhat vague about certain specifics. I don't think this should be a problem, as most of my questions are broad and could apply to several markets or products. I'm hoping that this doesn't become too restrictive to creative ideas.

All ideas are welcome....

ObamaNation - Lessons from the Front Lines of Social Media

As promised, here is the presentation that Team 5 gave in our Strategic Marketing course on advances in marketing.

As I mentioned before, there was so much that could be covered. We felt like these 5 powerful concepts played a

major role in the success of the Obama campaign. We also believed that those items could be translated to most

businesses, which was the other key goal we had for the project.

After the presentation, as good set of questions and discussions ensued around how to apply this to other

businesses, where we think the next social media trends will emerge (start-ups emerging

from all the layoffs), would this work if it extended beyond 2yrs (most marketing campaigns don't go

that long), and how to create a spreadable message (keep it simple, inclusive and positive).

NOTE: Several people asked this was done to push a specific political agenda. The answer is no. Our team

is made up of Republicans, Democrats and Independents. We chose the Obama campaign because of its

visibility. Since few of our classmates plan to run for political office, our ultimate goal was to help the class

learn concepts that they could apply to their businesses.

ObamaNation - Lessons from the Front Lines of Social Media

View more presentations from bgracely.

A Preview of our ObamaNation (Social Media) presentation

In the publishing industry, there is nothing worse than being "scooped" by your competition. In other words, they got the story to press before you did.

Portia Mount and I are presenting our Team 5 Market Trends report this weekend, something we've been looking forward to all semester.

So I was slightly disappointed to open the mailbox last week and see the cover story in Fast Company (see right) that highlights how Chris Hughes brought social media to the forefront of the Obama campaign and played a huge role in his eventual election. An excellent piece, it highlights many of the focus areas we planned to present.

One of the key points the article makes is that Hughes was the least technical of the three Facebook founders, instead being the one focused on how all this technology could highlight or enhance human behaviors and interactions. While our presentation intends to touch on the underlying technology, there is an entire section devoted to applying the techniques and lessons to almost any business. The approach taken by the Obama campaign will not only revolutionize how elections are structured in the future, but also how companies and individuals will market their brands and products going forward.

That last point is the focus of our presentation. We hope we do it justice in the 10-15 minutes alloted to the presentation. I'll be sure to post the presentation and highlights in subsequent posts following next weekend. If anyone from the Wake Forest community would like to attend , it will be on Saturday April 18th, between 1-3pm in Babcock Room 1101.

An alternatve opinion to my Facebook idea

A little while back I posted some basic ideas for Facebook to add revenue streams. One of them was around class reunions. I recently saw this article in the NYT talking about a lack of interest in 5 year reunions, because the author already felt like they knew what their classmates were doing and it ruined the element of surprise.

Who is right? I don't know. Who is wrong? I don't know. It simply highlights the need to not only go talk to prospective customers (especially non-customers) and listen to their input and feedback. It's also important to talk to people across various generations, and across various social levels. The 10 and 20 year reunion crowds seem to be very interested in physically reconnecting with people. Maybe the 5 year crowd has supplemented the need for personal interaction with Facebook, Twitter, etc. at a much higher level. I tend to believe this is very true.

It's still Market Research 101, but technology is broadening the generational gaps in every industry. We all need to make sure that we're taking this into consideration.

Would you trust your customers to define your brand?

Traditionally, companies have spent $M of dollars on Brand Management, Positioning and other Strategic Marketing functions. All these activities are geared towards getting customers to understand how they want their products or brand to be seen.

But as we saw during the Twitter discussion this weekend, some brands are becoming more open to allowing their customers or communities to provide feedback. Brands like Skittles are actively using user-generated-content to define what their brand means. Other brands like Coca-Cola have no idea why so many people are attracted to their brand and want to help define it.

It creates an interesting set of questions.

• How comfortable are you in allowing your customers to help define your brand?
• Is this a good way to get feedback from your customers to help alter the product, or are customers too near-sighted to be helpful in strategic planning?
• Should your strategy include a combination of company-defined branding, and the creation of customer-forums to allow them to re-define or augment your brand?
• Is this potentially the beginning of a new way to look at Brand Marketing, Positioning and Strategic Marketing?

How does Twitter make money?

Following up on my previous post about Twitter basics, I thought I'd address another question from class that raised a number of concerns. "How does Twitter make money, and should I trust my information to someone that may not be here in XX months/years?"

Excellent question, and definitely something to be concerned about as you consider new business decisions. I wrote about several ways that Facebook could make money (in addition to advertising) several months ago, because I enjoy using the service and would like to see it continue. Or maybe I'm subconsciously auditioning to be a Product Manager at Facebook...who knows? Either way, it's interesting to look at how these Freemium companies can generate revenue and stay in business.

As of now, Twitter does not have a revenue model. In fact, this has been the center of much speculation amongst the technorati lately. So let's look at the basic ways that Twitter could make money, as well as some additional opportunities for companies to leverage Twitter to drive revenues for themselves.

1. Advertising - This is the simplest to understand. Just like Yahoo! or Google, Twitter could begin to monetize their traffic by placing targeted advertising along side the tweets. And considering the real-time nature of their traffic, this could create new advertising models for companies trying to reach certain demographics.
2. Additional Tweet Space - Tweets are currently confined to 140 characters, a throwback to the days when Tweets were mainly sent via SMS (Text) messaging. But some people and companies struggle to get their message out in this short format. Supporting larger character lengths may be a service that Twitter can monetize.
3. Auctions for "Suggested" listings - This came up recently, as new members often struggle with who to follow.
4. Integrated Services - An example might be something like this: Starbucks sets up a Twitter "watching" service that looks for people complaining about traffic-jams or any other delay. When they see this, they determine where the users are located. Then they send those people a Tweet offering a coupon to the local Starbucks. This is a very basic example, but there are thousands of possibilities for companies that want to come up with creative ways to reach their target audience. Twitter could offer a service for those companies that can't do this themselves (SMB's with limited IT knowledge), or companies that aren't sure of the right way to engage with social communities.
5. Broaden the Scope of the Platform - One of the key elements to any Social Media company or service is a willingness to broaden the usage of the platform. This means that not only could others create monetization opportunities, but you can leverage new opportunities because of the increased breadth. This could mean creating new partnerships to leverage the information in Twitter feeds, or allowing partners to insert themselves into the conversations in new ways.

That's just the tip of the iceberg of ways that Twitter could make money. I'm sure there are dozens more.

There is also the possibility that Twitter will get purchased by one of the major social networks, or by Google.

5 Ideas for Facebook to make money - Part I

As an avid Facebook user, and following the recent trend to make lists, I thought it would be fun to come up with some ideas to help Facebook make money in 2009. Their user-base is seeing rapid growth again, but they are still struggling to monetize all that user data. For the sake of time, I thought I'd condense this list down to 5 things.

Many of these ideas are based on the growing number of 30-40 somethings that are joining. These folks use it as a distraction from their existing lives, or as a way to keep in touch with old friends, or to remember happier times.

Idea #1 - Charge for usage. $9.99/year. Millions of people pay that much for a month of NetFlix, or a day's worth of Starbucks. There's $1.6B in revenue (at 160M users).

Plenty of people will say that violates the spirit of what allowed Facebook to grow, which was the Freemium business model that gained popularity in 2005-2008, with the rise of many Web 2.0 companies. Fair enough, but how many of those companies are going to survive the latest economy crisis? And by survive, I'm really talking about being a long-term business entity, not selling out to Google, Yahoo, Microsoft or some other large internet company. Let's think in terms of truly building a business, not an exit strategy.

At some point, Facebook needs to be able to ask their users (directly or hypothetically), "if we were gone tomorrow, would you miss the service?" If the answer is "No", then charging a usage fee is dead. If the answer is "Yes", then you have a very viable starting point to explore a fee.

I have some ideas about how they would create the inflection point for making the change from Freemium / Ad-Supported to Fee-Supported, but I'll hold off on those for another post. I think 2009 is going to be an interesting year to see how some of these models survive and also how create they get with revenue models.

[NOTE - As I mentioned before, it's good to put large numbers in perspective.  Facebooks existing user base (160M) is equivalent to 52% of the US population; is equivalent to 73% of US broadband users; is equivalent to 10% of worldwide broadband users.  Needless to say, there is a lot of growth potential for Facebook worldwide.]

Strategic Marketing Presentations

One of the things I really like about our Strategic Marketing class is that it is primarily focused on analysis and application of marketing as it relates to our current role (or future role).  It's not heavily focused on quizzes and exams, which often tend to be exercises in memorization (imho).  One of our group projects for the class is an analysis and presentation of an area of marketing that we believe is new, interesting and potentially of use to our companies.  The topics are chosen by the teams, with the goals being both team analysis and teaching something new to the rest of the groups.  I wrote about the Team 5 topic in an earlier post, but the rest of the team projects were announced this weekend.  I haven't seen their abstracts yet, but I thought it might be fun to list some of the things I'd like to learn, and see if any of those aspects get presented.

February 7: Team 1 – “iphone apps”

• How does Apple market the AppStore to developers vs. how Facebook markets their platform (Facebook Connect, Facebook Applications) to developers ?
• Is Apple doing enough with the AppStore concept to leverage developers (or customers) to look for applications that could work between Macs, iPhones, AppleTV, etc..?
• Apple is claiming huge download numbers for AppStore.  What flaws do you see in their model or execution?

February 21: Team 3 – “Search Engine Optimization”

• Beyond paying the highest bid for keywords, what other techniques are companies using to get on the 1st page of Google searches? (Digg, etc.)
• Are the SEO techniques and strategies different for company websites vs. personal blogs?
• Do you expect SEO models will work the same with mobile computing as they do today with desktop computing?  Does the location aspect of mobile computing offer new SEO paradigms?

March 21: Team 4 – “Social Networking”

• If you were VP of Marketing, what would your mission statement look like for using Social Networking to enhance aspects of your company?
• Success with Social Networking requires a willingness to be open and give to the community, which is often counter-intuitive to companies used to controlling information, branding, etc..  What have successful companies done to find the right balance of control vs. openness?
• Talk about how Zappos is using Twitter to impact many aspects of their business, especially as it relates to customers and the community that looks to Zappos for footwear.

April 4: Team 2 – “Interactive Marketing”

• Is it a good idea to create forums where your customers can have interactive conversations which could turn into interactive marketing, without your company being in the middle?
• What are the keys to creating authenticity in interactive marketing, as opposed to coming off as phony?
• Are some groups within a marketing organization (or any part of the organization) better suited to drive Interactive Marketing initiatives that others?  Is there a minimum or maximum distance from the customer (or target) that is required from that organization?

April 18: Team 5 – “ObamaNation: Lessons from the Front Lines of Social Media”

The Intersection of Marketing and Technology

I wrote Monday about our Strategic Marketing project on the social media aspects of Obama's election.  Yesterday was the Inauguration, the significance of which could cover multiple pages (or books).  I'm not going to talk about the historical significance, because I don't have the words right now to do it justice.  So I thought I'd talk a little about how the intersection of Marketing and Technology and President Obama have directly affected me, and give some previews into aspects of our paper. 

P-E Obama took the train into Washington DC, a slower path that allowed more people to join in the momentum building towards the inauguration. Building community.  Allowing multiple media outlets to add their unique angle to the moment.  

I watched the Inauguration through multiple sources:

1. It was a snow day in NC, so I downloaded the UStream (like TV viewer) application for iPhone, and was able to watch on my handheld device while watching the kids make snow angels outside. 
2. When I had issues on the iPhone, I switched over to my laptop to get the live stream from CNN, which had partnered with Facebook to provide an integrated Media + Social Networking experience.  
3. I watched as CNN partnered with Microsoft Photosynth to create real-time 3D views of the Inauguration the pictures of thousands of people in attendance.

Over and over the themes were visible.  Building Communities.  Allowing people to modify the experience to their desires.  Integrating technology so it got to people in ways they wanted. Giving away information to the communities to allow them to build new concepts.

Strategic Marketing Project - Lessons from the Front Lines of Social Media

I'm pretty excited tonight because we got our mid-term Strategic Marketing project approved. (The abstract is listed below) Portia Mount and I had actually talked about a concept like this prior to the class starting, so we were glad that we'd be allowed the flexibility to choose the topic and scope.

Portia is VP of Marketing for her company, so I believe she's been thinking about aspects of this since last summer.  I got the original idea while reading this article from Umair Haque, as part of a continuing series he's doing on Edge Economy and the need for radical innovation to break us out of the challenges of the current economic crisis.  It also connected for me as I reflected back on stories from both Wikinomics and The Future of Work, as they looked at the value of sharing information externally, building communities, building partnerships, and truly building companies that can survive in the pace of the 21st century.  Listening to Seth Godin's podcast on Tribes and Leadership today completed the circle for me, showing how all of these pieces and ideas came together in the 2008 election.

The other element of the project that I'm excited about is that we're hoping to show how this 21st century approach can be applied to more traditional brick & mortar companies.  Portia and I felt like this would be an interesting challenge to research, as well as our way of giving something back to the rest of the class.

The paper and presentation aren't due until mid-April, but I'm already looking forward to starting on this project.  I'll be sure to post updates as we move along.

=======ABSTRACT========

ObamaNation: Lessons from the front lines of social media.

This presentation will look at how the Obama campaign used social media strategies to mobilize grassroots audiences to win the White House and what business might learn from this success. In this presentation we'll highlight noteworthy examples including:

1. The use of Social networking sites such as Facebook, YouTube, and Twitter that created new online communities.
2. The Campaign website and its use of targeted messages to create urgency to generate record breaking campaign donations
3. How mainstream newsmedia outlets took advantage of the unprecented online presence during the campaign season to connect to new and younger voters
4. How the rise of the citizen journalist and an expanded blogosphere allowed Obama, a virtual unknown at the start of the campaign, to gain global recognition in one campaign season