New Media Will Challenge Intellectual Property Claims

New media allows each of us to publish our own works, with the illusion that we have copyrighted the material published. However, only the legally proficient will be able to truely establish an enforceable copyright. They know how to properly register the idea and define its scope, and also to discover and contest unauthorized use. Although, there is talk of a poor man’s copyright, “the United States Copyright Office makes clear that the technique is no substitute for actual registration.” (see Wikipedia Copyright)

Powerful companies are preparing defenses against accusations of copyright violations of other’s intellectual property. They are buying and building huge copyright and patent portfolios, and using them in marketing communications. Because of their skillful legal council, they have been able to gain ownership of very fundamental processes. This is especially true in the computer field. For example, Microsoft has patented the understanding of music (The Day the Music Died)

Subtle marketing communications will scare corporate procurement away from weak patent defenders to the strong. For example, in its public relations Microsoft contends that Linux has stolen and violated 235 of its patents and copyrights (see Fortune ). Corporate procurement now faces future charges of knowing violation of intellectual property protections and the ISO 19770 standards on Intellectual Property if they switch from Windows to Linux.

The Open Source community is intransigent in its position. Richard Stallman says software should be free. The community deftly argues that ideas in the computer industry are communal mathematics and should be treated as such (like Folk Art).

Microsoft parries Stallman and says that open source has been reckless with intellectual property. Microsoft has additionally formed a relationship with SuSe Linux and as part of that relationship, SuSe Linux now pays Microsoft royalties on the 235 violations (see Money Mag ), establishing a precedent, and undermining the other Linux vendors and the Open Source Community in general.

The Open Source community has been outflanked by a combination of marketing communications and partnering relationships, which one could argue are also part of marketing communications.

In the end, Microsoft is now accused of stifling Open Source with “patent warfare” see (Patent Colonialism ) Folk culture is indefensible because it cannot hire the marketing communications expertise to lay out effective strategy and legal talent to execute winning tactics. Powerful multinationals will own all human ideas and moralize that we, the great unwashed are ethically violating their intellectual property rights when we try any innovation by our lonesome.

The New Media will accelerate this confrontation by enabling the masses to publish. Many will wonder how you can patent the concept of music. The Open Source community understands the legal intricacies the powerful companies are employing and work within that framework. Not the masses. I suspect they will want common sense.

Analysis of Rolex and Movado Watch Ads

Watches often do more than tell time. They can help a consumer define and project an image: sometimes for status and power, sometimes to convey style and cultivation.

High-end brands have such extraordinary demand these days; the wait list can be as long as two years to get a Jaeger-LeCoultre. Socha reports that Patek Philippe sold 28,000 watches and Jaeger-LeCoultre sold 50,000 in the Prestige category, while Rolex in the Luxury category sold 900,000 (Socha, 2007, 2008, p 1).

It is no longer rare for Prestige watches to sell in the high six figures. Business is booming and all Prestige manufacturers sell every watch they produce. Even the lower-tier Rolex line is benefiting from this trend. Murphy (2008, p 1) notes that sales were even better into 2008, and quotes that "A diamond watch doesn't sit in our shop more than a week."

The Prestige makers have established "heirloom quality."

Keller (2008, p 137) notes their mantra, "You never actually own a Patek Philippe. You merely take care of it for the next generation." So it is with Jaeger-LeCoultre. Here is their watch Queen Elizabeth received at her coronation. Not so with Rolex. Timex? A different kettle of fish altogether.

Rolex

Rolex watches have a divine heaviness. You would just not expect them to release a plastic Rolex. They reinforce this image of eminence with advertising and celebrity endorsements. Green (2004, p1) reports that Arnold Palmer was interviewed on playing his 50th Masters and, of course, endorsed Rolex. What’s more, Rolex is the 7th largest magazine advertiser in the world. Keller (p 137) notes that "Rolex watches retain their value better than almost any other type of good." However, they have not been able to establish the "heirloom quality" of the top brands.

Keller (pp 133-7) finds that Rolex is among the most "recognized luxury brands in the world." However, Rolex is positioned between the Prestige producers and the next-tier producers and so they have established the lower-priced Tudor line as a "fighter-brand" to keep Tag-Hauer, Movado and Citizen from encroaching into their niche.

I present for your consideration the following ad in the November 2008 issue of Vogue (see Illustration One). First attribute: it’s a two page ad for 30 words of text. This makes a statement; Rolex is an eminent player, worthy of your attention. The alluring model with classic features is the 77-year-old Carmen Dell'Orefice (see Rumbold, 2008 for a two page biography), according to Kathy (2008, p 1). Her ageless beauty underscores the timeless value of the Rolex she is wearing. The redundant headline reads, “Class is Forever”, but we have already gotten the message. Rolex wants to break into the heirloom niche so it can obtain high figures like the Prestige brands.

The body copy has important words – royal, diamond adorned, Stingray leather, and Black Sapphire. If there was reservation before, it is now dispelled: this is a watch like no other, made for royalty from only the rarest materials. It uniquely enhances your image. This professional ad will certainly appeal to the following VALS Segments: Innovators, Achievers and Strivers.

To Innovators, the beauty and class of Rolex is a valuable extension of their self. It reflects (see Hawkins, 2007, p 447), “a cultivated taste for the finer things in life.” To Achievers, the imminence of the Rolex brand appeals to their needs for (see Hawkins, p 448) “established, prestige products and services that demonstrate success to their peers.” Finally, Strivers can emulate the wealthy with a Rolex but they may end up with a Tudor model, the fighter-brand – cheap enough to compete with Citizens.

Illustration One (left page): Rolex, “Classic is Forever” Ad

Illustration One (right page): Rolex “Class is Forever” Ad
Movado and African Americans
Hawkins, et al (2007, p 167) say that “not all messages targeted at African Americans need to differ significantly from those targeted at other groups.” They qualify this rule with the caveat that incorporating black actors, models or spokespersons in the ad is important. A key segment in this audience is what Hawkins, et al call (p 164) “market leaders.” This group sees brands as communicating their unique self-image.
The Movado ad is also two pages, presenting prestige through this eminent use of space and disregard for cost. The two pages permit a flattering photograph of the attractive black actress Kerry Washington and the Movado watch as well. The body copy tells us about the acclaimed actress, and that the watch is available at fine jewelry stores. The impression is this watch is not a mass production pop-out that anyone can own. Noteworthy in the photo of the watch is the diamond studding, the gold accessorizing and the header “The Art of Design.”
The ad does not offer extensive body copy. Jérôme Lambert the CEO of Jaeger-LeCoultre sums up the advantage for this minimalism towards high-end audiences (see Lechevalier, 2009, p 1):

“The products are the real brand ambassadors; that’s our basic message. They have so much to say, and communication is a tool that loses so much of its efficiency when you overlay too many messages.”

The audience here, I think, is the VALS: Innovator segment. Image is important to them (see Hawkins, p 446-7). Brands act as an extension of self, and an expression of cultivated taste, and independence.
Many Innovators are emerging leaders. Kerry Washington is a good choice for the ad because she is an emerging film star (see Wikipedia, 2009, p1) with performances of note in Last King of Scotland and Ray Charles.
Zinkum and Hong (1991, p 352) conclude that advertising which fits with a person’s ideal self obtains a more favorable attitude toward the brand than if the had been more consistent with their actual self-concept. The Movado ad targets African-American women who are VALS Innovators and have affinity with Kerry Washington's attractive and successful image. One thing to help them establish their ideal is the Movado Esperanza watch, one that becomes an “extension of their personality” (see Hawkins, 2007, p 447).
Illustration Two (left page): Movado and African Americans

Illustration Two (right page): Movado and African Americans

References
Green, Barbara (6/16/2004). Rolex loyalist Arnold Palmer plays 50th Masters Tournament. National Jeweler;Vol. 98 Issue 12. Retrieved on March 30, 2009 from EBSCOHOST.

Hawkins, Del, David Mothersbaugh and Roger Best (2007). Consumer Behavior. McGraw-Hill/Irwin.

Kathy (November 11, 2008).Rolex "Class is Forever" attention-grabbing ad. Retrieved on March 30, 2009 from http://boomermarketingnews.blogspot.com/2008/11/rolex-class-is-forever-ad-mixed-reviews.html

Keller, K (2008), Strategic Brand Management. Pearson/Prentice-Hall.

Lechevalier, Brice (2009). GMT. Retrieved on April 1, 2009 from http://www.gmtmag.com/en/11_int_lambert_lecoultre.php

Murphy, Robert (4/14/2008) FAST TIMES IN WATCHES: FIRMS SEE BOOM FOR UBER-LUXURY STYLES. Women's Wear Daily. Retrieved on March 30, 2009 from EBSCOHOST.

Rumbold, Judy (3:54PM GMT 11 Jan 2008) Carmen Dell'Orefice: eternal grace. The Telegraph. Retrieved on April 1, 2009 from http://www.telegraph.co.uk/fashion/fashionpicturegalleries/3364006/Carmen-DellOrefice-eternal-grace.html

Socha, Miles, (7/30/2007). Demand Soars for Six-Figure Watches. Women's Wear Daily. Retrieved on March 30, 2009 from EBSCOHOST.

Univ. of S. Miss (Fall 2007). The VALS Segment Profiles. Retrieved on March 30, 2009 from http://ocean.otr.usm.edu/~w481504/kfj/mcj231vals.html

Wikipedia (2009). Kerry Washington. Retrieved on April 1, 2009 from http://en.wikipedia.org/wiki/Kerry_Washington

Zinkhan, George M. and Jae W. Hong (1991). Self Concept and Advertising Effectiveness: A Conceptual Mode! of Congruency,Conspicuousness, and Response Mode. Advances in Consumer Research. Retrieved on April 1, 2009 from WVU IMC 612 Week 3 readings

Visual Violations

I did not get this Fosters ad until someone explained it to me. I did not get the connection between the picture and the narrative. Alcohol advertising is directed to young men and the Addiction Letter (1994, p 3) says such advertising has an implicit and “dangerous promise”, that sex is an outcome to drinking.

The cantilevered breasts are an attempt at such an appeal, I guess. However, Sullivan says (2008, p. 55) that boobs are now a visual cliche in beer advertisements.
The idea here is that they provide shade to keep the beer cold. There is a risk, though, that young men seeing this ad could care less about Fosters, warm or cold, and take away the two attractive models from the ad.
At a brand level, IBM's Linux brand extension is a puzzle. Its Graffiti ads, for example, make no sense to me either. They are inconsistent with the entirety of IBM's umbrella brand that negotiates a meaning of stability, reliability and trustworthiness. Things you would want when entrusting them with corporate information systems. Instead, for the Linux brand extension, this is an ad campaign centered around a socially irresponsible act.
IBM actually defaced public properties in the campaign and they were prosecuted by Chicago and San Francisco (see Computer Weekly) . Shepard (2006, p. 3) advises that visual cues and brand dimensions should be consistent with the enterprise message architecture of a company. I view the IBM dimensions as trust, reliability, and stability. They are not a trendy clothing line where guerilla marketing might work.
For successful management of visual imagery and narrative, I present for your consideration Coca Cola. Coke communicates vitality and refreshment and always has an appeal to modernity. Coke is also part of my life. With its campaigns throughout history, The Pause that Refreshes, The Real Thing, and Max Headroom, Coke positions itself as something that fits into my lifestyle. It’s a cultural touchstone. To me Coke communicates style and energy.
Red is, after all, the color of vitality (McCarthy, 2005, p. 3)
ReferencesAddiction Letter (March 1994) `Dangerous promises' campaign successfully fights sexy alcohol ads. Retrieved on November 9, 2009 from EBSCOHOST.
McCarthy, Jared (2005). Logos: What Makes Them Work. MarketingProfs.com. Retrieved on November 9, 2009 from WVU IMC 625 Week 3 Readings.
Salter, C., (2001). Trendsetter. Fastcompany. ecampus.wvu.edu readings. Retrieved, November 6, 2009 from WVU IMC 625 Week 3 Readings.
Sullivan, L. (2008). Hey, Whipple, squeeze this: A guide to creating great advertising. (3rd Ed.). Hoboken, NJ: John Wiley & Sons.

The Cluetrain Manifesto: Should Anarchy Replace Structured Communications

First published online and then as a book, The Cluetrain Manifesto (see their website) was an apocalyptic warning. Things were unraveling. Systems were broken. The Internet unleashed long-term trends that would assert themselves.

“Networked markets are beginning to self-organize faster than the companies that have traditionally served them. Thanks to the web, markets are becoming better informed, smarter, and more demanding of qualities missing from most business organizations.”


Many acted. Microsoft and IBM both have employees talking directly to customers. In fact, Joe Cox reports (see Microsoft Watch) that Microsoft has over 5,000 employee blogs and quite often Microsoft makes major product announcements only on these blogs, not incorporating one or another of its marketing agencies.

How effective are the differnet implementations of the Cluetrain Manifesto?

John Cass is a marketer and a researcher at Forrester and has made a startling finding (see his blog ). Dell and Macromedia use a dedicated approach, and control communications that uses Social Media rather than take the wide-open approach of IBM or Microsoft. Dell and Macromedia are doing quite well with such an approach. Cass notes that

“Macromedia and Dell empowered employees with resources, while IBM and Microsoft give only verbal encouragement without the backing of cash and resources. There may not be a difference in strategy between the dedicated approach and the cluetrain manifesto, just in tactics.”

He highlights two of the manifesto theses, 48 and 51:

48. When corporate intranets are not constrained by fear and legalistic rules, the type of conversation they encourage sounds remarkably like the conversation of the networked marketplace.

51. Command-and-control management styles both derive from and reinforce bureaucracy, power tripping and an overall culture of paranoia.

But he concludes that anarchy does not work. While the Cluetrain Manifesto helped focus attention on change that is needed for marketing communications because of the Internet and Social Media tools, "[it] did not provide a really effective road map for how to open up a company.”

Marketing communications is a discipline. By focusing their Social Media efforts on smaller groups capable of effective marketing communications, and providing them with support, Dell and Macromedia have been effective. Microsoft succeeded when it provided the logistics to trained communications professionals like Robert Scoble. Cass says:

“Maybe in the process of encouraging open conversation, companies like Microsoft and IBM have failed to give the training, tools and tactics necessary for success. While, Macromedia and Dell’s focus on a smaller group of dedicated people has produced more results.”

John's book is:

A Pirelli Short Film

Pirelli has always had attractively pioneering marketing. It is characterized by facility and skill among tire companies, front running many with flamboyant calendars (see Pirelli Calendar ). Adopting short films is not such a leap for them and The Call is certainly more interesting than watching the Michelin Marshmallow Man try to get his Marshmallow Dog.

Pfanner (2006, pp1-2) gives some insight into this campaign. It was the first time Pirelli worked with Leo Burnett and behind it was concerns with the declining effectiveness of traditional media advertising. Traditional advertising seems to be dissolving before our eyes. It is no longer the altruistic industry that gives us free TV, but now has an appearance more like a monolithic parasite draining money from its corporate host.

Pirelli backed its bet on short film marketing with 60% of its marketing budget according to Pfanner (2006, p1). Why?

"Many advertisers are worried that traditional ways of reaching consumers, including the 30-second television spot, are losing their power to persuade."

Their tag-line “Power is nothing without control” is catchy. However, to build long-term relationships, the slogans should be consistent with the customer’s experience with the company. Duncan (2005, p 15) says that “ interactions with customers send some of the most impactful messages that customers receive about a brand.”

Curiously, Pirelli has had some scandal related to its level of concern for safety. Lawsuits allege that it had foreknowledge of safety problems but did not take action. Many complain, see AllAutoWorld .

All in all, though, the campaign was a hit. They even have a short film out now with Uma Thurman (see Pirelli on YouTube ). Same theme.



ReferencesDuncan, Tom (2005). Principles of Advertising & IMC. McGraw-Hill
Pfanner, Eric (January 29, 2006). On Advertising: Film or Ad? Ask Pirelli. International Herald Tribune. Retrived on August 23, 2008 from http://www.iht.com/articles/2006/01/29/business/ad30.php

Cherchez la Femme at the Ritz

Short films and streaming media are increasingly being incorporated into an integrated communications strategy. The promise of the Internet as an effective tool for many uses including business communications, marketing and branding, sales, training, and customer support is now being rapidly fulfilled.

I looked at how Ritz-Carlton Hotels has integrated short films into its Experience More marketing messages. The Heads or Tails movie can be viewed at Heads_or_Tails. This movie quickly got to the point, two men struggling for the attention of a women, and stayed with it without deviation to the end. I was caught off guard by the tempo. The two men are quickly drawn into Pushkin's doomed duel, and one even says to the other with bravado, "Let's do this thing", the modern venacular for "Let's begin, if you are willing" of Pushkin's Russia.



The plot was simple. A man and a woman meet another man and the competition between the men starts. The Herculean labors of mental one-upsmanship in the middle of the film end with a physical contest and a surprise finish. It is a short film noir. It even uses the lighting and music of classic film noir greats such as the Maltese Falcon, ChinaTown and The Great Gatsby.

I believe the film effectively and subtlety communicates the message of elegant experiences at the Ritz. The Experience More Campaign by Ritz is based on a marketing analysis of their customer public, according to a Hotel Motel Management article. Heather Gunther (see Hotel_Motel_Mgmt ) quotes Jerry Landeck who has developed seven Ritz properties, “Our clients are demanding more experiential elements in the resort.”

They have designed signature restaurants and bars with the able assistance of artisans such as Wolfgang Puck, Gordon Ramsey and Laurent Tourondel. The main action of Heads or Tails takes place in a restaurant bar. The bus boy wears a Baume & Mercier watch. The barkeep is a sommelier. The marketing short film integrates smoothly with the Experience More grand strategy that also guides construction.

Regarding the ethics of short films in marketing communications, Packard (see Hidden_Persuaders) asked the essential question that is still relevant today

"What is the morality of playing upon hidden weaknesses and frailties -- such as our anxieties, aggressive feelings, dread of nonconformity, and infantile hang-overs -- to sell products? Specifically, what are the ethics of businesses that shape campaigns designed to thrive on these weaknesses they have diagnosed?"

Packard quotes a Madison Avenue Industrial Complex insider, Nicholas Samstag with the industry reply:

"It may be said that to take advantage of a man's credulity, to exploit his misapprehensions, to capitalize on his ignorance is morally reprehensible -- and this may well be the case. . . . I do not quite know."

It would be blind denial of plain fact to say that Heads or Tails was not engineered to exploit the apeing frailty of those with airs above their station. Yet the customers are asking for the fantasy, and to some extent that is what a vacation is all about anyway. Unlike, Samstag I am going to say it is not unethical, at least in the case of Ritz Carlton. It is an unspoken intent of the resort vacationers Ritz serves to assume the stale pretense of "acquired taste" and "rich appointments."

Media Involvement

What makes print inherently more involving than radio or TV?
Drewniany and Jewler (2008, p 210) say that radio is less inherently involving than print media because it is transient, listeners cannot go back and reread something. An advertisier is relying on their memory to record and playback the marketing message. Likewise Duncan. He says (2005, p 360), “Broadcast messages are fleeting.” They have the staying power of dayflies and can be just as annoying. Duncan further notes that customers can be doing something else while listening to radio or watching TV, especially during commercials when they get restive or jerk themselves back to reality to get a soda or something. He notes these as weaknesses for TV and Radio (p 349).




When should a more involving medium be used?
The level of consumer involvement is an important consideration in media selection. Duncan (2005, p. 142) says that consumer involvement has two facets, relevance and perceived risk. He goes on to say (2005, p. 141), that relevance is key to determining the level of involvement, the extent to which a product or its message is pertinent and connects with a customer’s personal interests. Customers are more willing to invest pre-purchase energy in learning more about a relevant and more risky buy.

The Elaboration Likelihood Model by Cacioppo and Petty can provide a framework for analyzing the most effective balance in the media mix for marketing communications. Cacioppo and Petty define the primary relationships in persuasive communication as communication engagement and cognitive commitment.

According to the model, the greater our communication engagement with the other party the more likely that party is to use what the model calls central route processing, which is to say a great deal of message related thinking. Media appropriate for in-depth thinking and evaluation of the message should be used in such a case. On the other hand, if communication engagement is low, what the model calls peripheral cues are best. In this case, more attention getting media that do not necessarily lend themselves to protracted analysis would be a better choice.

Perceived Risk
Perceived risk may be difficult for advertisiers to identify. Perceived risk is related to unsatisfactory product performance and as noted above is related to consumer involvement. The level of risk may depend on context. Hawkins, et al (2007, p 550) give an example of buying wine. If you are buying for yourself, no big problem if it is unsatisfactory. The same decision, if you are buying for a dinner with a significant other, can be much riskier.

In some ways, a different context can make one product perform like a completely different product in response to IMC. Hawkins, et al (p 551) do give examples of products that generally have high perceived risk. They are classified by types of failure:

• Social costs (e.g. new suit not appreciated by peers)


• Financial cost (e.g. expensive vacation that had rain everyday)


• Time Cost (e.g. auto repairs are not just cash costs)


• Physical cost (e.g. interactions or side effects of prescription drugs)

It also seems intuitive that context may be ascertainable from the audience characteristics of the specific media companies employed. In these cases, advertisers should be able to make a good bet on risk level.
References
Cacioppo, John and Richard Petty (1986.) THE ELABORATION LIKELIHOOD MODEL OF PERSUASION. Retrieved on Feb 19, 2009 from the EBSCOHost database.

Drewniany, B and J Jewler (2008). Creative Strategy in Advertising. Wadsworth.

Hawkins, D., Mothersbaugh, D. and Best, R. (2007). Consumer behavior: building marketing strategy. New York: McGraw-Hill Irwin.