We’ve said it many times: Businesses would be better off not spending a dime on marketing for year and re-investing all these funds in their product/service/brand experience. And a new study by Nielsen CGM/Homescan Buzzfacts makes exactly that point:

“Advertising and promotions, whether in traditional media or online, play only relatively small roles in driving consumers to post content about products and services.

This is the somewhat humbling reality, according to survey data from Nielsen CGM/Homescan Buzzfacts. Asked what motivates them to post such content on a Web site, blog or message board, just 18% cited seeing a promotion for the product, 12% cited seeing an ad on TV or in print, and 7% cited seeing an ad or video clip on the Internet.

So what is driving product/service consumer-generated media/CGM? In two words, “product experience.”

Over half (55%) of consumers said they posted because they had used and liked a product; 28% because they’d used a product and didn’t like it, or wanted a refund; and 27% said they’d read a comment about a product on a site, blog or message board and responded to it.”

Pete Blackshaw, EVP of Nielsen Online’s Digital Strategic Services (DSS) group continues:

“It’s vital that agencies and marketers understand that when you put all the data in a blender, the root causes behind why consumers talk are product quality and process issues,” Blackshaw said in an interview with Marketing Daily. “Advertising and marketing generate a certain amount of word of mouth, but by and large, brand reputation rises and falls based on the quality of the product and the service wrapped around it.”

Marketers, he says, tend to “over-romanticize” the power of tactics like “sensational viral campaigns.”

At heart, marketing is about delivering values. Now, everybody defines values differently. It could be money, time, the little things in life, a racing heart - whatever you define as value is valuable to you. Marketing’s job is to deliver what’s missing in the value chain and fill that gap.

If your product is mediocre, has design flaws, offers people not a lot of value and doesn’t fill an immediate need - do you think a mass marketing campaign will convince people to buy it? You have so many gaps to fill, your marketing dollar is better spend exploring the real needs of people, how they define value, redesigning your product/service and offering something that kills the competition. Or starts a new market.

If your product is amazing, offers flawless design, has immediate value and fills a desperate need in people’s lives - Go ahead and mass market your product. The only gap to fill is to make the world aware of your awesome product. That’s the point where marketing/advertising delivers value. Because people will appreciate to find out about your product.

Marketing/Advertising is a gap filler. Just like R&D, Product Planning, etc. Use it wisely. Or, rather save your money.

The breakup that comes out of nowhere. The cancellation of cabel service. The surprising resignation: The obvious signs were there, even outsiders could see the problems from far away. But people closest to the situation had no idea. They were surprised. Shocked.

Why do people and businesses have such a big problem hearing tough messages, aka the truth?

In surveys, conducted by Personnel Decisions International, managers seem to have skewed perceptions about their openness to challenging news. The results showed that managers often signal to their employees that they don’t want to hear bad news. In addition, many employees censor themselves. This broken communication model is hazardous to both parties: Bad news are not being communicated and positive ideas might be considered criticism. And not expressed.

Same is true for businesses.

Many businesses claim to listen but, ultimately, they just want to reinforce their own opinion. It’s not enough to just listen, you need to listen with an open mind. How?

First, admit that your business is a bad listener. You might have the best intentions but some of your actions (wittingly or not) just indicate to everyone that you don’t really listen.

Second, admit that it’s hard for you to take criticism. Believe me, it’s hard for everyone but criticism is the lifeline to your future success.

Third, it might be better if somebody else does the listening for you. Hire somebody you find trustworthy to listen to the conversation that’s happening out there. Somebody that doesn’t have a stake in your business. Somebody that didn’t pour his heart and soul into nurturing your business. Criticism doesn’t mean anything to them: They are not the ones being criticized. There are numerous companies out there listening to conversations all day long. (This fine one is one of them.)

And then it’s time for you to listen: Sit back and just listen. Don’t respond. Don’t react. Just listen. It might be the best thing you could ever do for your business.

I went to Washington Mutual today, depositing a few checks. While I was filling out the paperwork, a voice boomed through the Intercom: “It’s noon. Everbody: 3,2,1…” All employees got up and exclaimed “Whoo Hoo”.

Now does that get you excited and don’t you just want to rush out and do more business with Washington Mutual? Actually, I almost closed my account on the spot.

Besides the association with Homer Simpson and a possible missspelling (Homer says: Woo Hoo!), the Whoo Hoo campaign is a good example (Or a really bad one!) for a brand that doesn’t listen. A brand is the most important asset of a business. It tells people what you are, who you are, what you stand for and what people can expect from you when they interact with you.

Washington Mutual explains in a press release that “through ongoing brand tracking, we know we always outperform our peers when it comes to being emotionally relevant to people. Whether it’s been in focus groups or surveys, we hear that WaMu is a bank that truly cares about the consumer.”

How does the new campaign show that they care about the consumer? How does a person feel when they are debating loans or opening business accounts and the employee jumps up in mid-sentence and screams “Whoo Hoo?” How does this brand experience retain or even generate customers? What does “Whoo Hoo” stand for? Does this mean we’re going to have a great time while banking at WaMu?

People have serious business to take care of when they go to banks. They want the best advice, the best rates, the lowest fees and quick service. They want to be taken seriously, want to be treated as important customers. “Whoo Hoo” just shows people how self-indulgent and removed from real people WaMu is. It shows that they don’t care about the needs and desires of people. Instead, they pushed communication out that might have played well in a boardroom but doesn’t connect with any of us.

WaMu should take a hard look at the ING brand. Their brand promise: “a commitment to providing the financial services solutions our customers value.” Their advertising promises the experience they’re providing: Simple, easy, customer-centric. And ING delivers on that promise throughout each and every touch point.

Now that’s worth a hearty Homer “Woo Hoo”.

Did you hear the song that started to become a hit last year and turned into a monster hit in 2008? That song is played at every conference, Web 2.0 summit and social media meeting of the minds. Nobody knows the exact title but it goes like “Businesses have to stop talking and start doing”. I’m sure you’ve heard that song many, many times.

Most businesses interested in Social Media and Conversational Marketing remind me of people ordering fitness equipment through infomercials: They know they need to do something about their fitness and health. And they order stuff to start talking about really doing it. Yes, they open up the package, are so confused by the instructions that they stop doing anything. Just to continue watching infomercial, still talking about doing something.

People are opening up to the public more and more each and every day. They describe in detail their desires, needs, fears,  anxieties, hopes, etc., etc. Opportunity is growing each and every day for businesses to help these people, build more useful products that tap into these feelings. Have you bothered listening? People tell businesses what they want. Sometimes very clearly. Sometimes not that overt. But they are always telling you what they are feeling.

Business that listen will survive and prosper in this new marketing reality. They won’t see themselves as the hero anymore. Instead, they see people as the heroes and will do everything to expand their superpowers by giving them what they want.

It’ s not enough to think about doing anymore. It’s time to listen and start doing.

Everybody is talking about listening: Listen to your customers, listen to employees, listen to your intuition. Listening has become the new buzzword in the marketing world. The whole idea of Conversational Marketing/Social Media is based on the concept of listening. And listening can make or break your business. But if you don’t know how to listen, you might do more harm to your business than you ever imagined.

Remember the Simpsons Episode, ‘Oh Brother, Where Art Thou’? Homer meets his half-brother, Herb Powell, head honcho of the Powell Motors car company, who decides that Homer is the perfect match to design a car for the average American. Homer comes up with a concept that he markets as ‘powerful like a gorilla, yet soft and yielding like a Nerf ball’, featuring three horns that play ‘La Cucaracha’ and a sound-proof bubble dome for his kids. Powell Motors goes out of business shortly after.

Yes, Herb Powell, listened. But he didn’t listen actively.

No matter in what business you’re in, customers expect from brands to solve their problems. Allergy medicine solves the annoying hay fever problem. Cottonelle for Kids solves a potty training problem. Mac’s solve the virus problem. (At least, reducing it.) Cottonelle for Kids solved a common parenting problem because they asked the right questions. Asking people ‘What do you want?’ will get you nowhere. Asking people ‘Tell me about yourself and the common issues you’re facing on a daily basis.’ will get your creative juices going.

Suggestions by people should not be treated as requirements for the next phase of your product development. Instead, suggestions need to be regarded as problem reflections that you’re tasked to resolve. Does a parent really want a soundproof bubble for their kids while driving long distances? Or do they want ways to entertain their kids safely while they can focus on the drive and listen to radio at the same time?

Businesses need to structure their listening initiatives to ensure they suspend their own frame of reference and judgement while leaning forward and attentively engaging in a conversation. The advent of UGC, Social Networks and consumer participation clearly show that people are growing out of the passive consumption phase. Brands need to catch up quickly. Or they end up with below monstrosity.

Consistency is the last refuge of the unimaginative. (Oscar Wilde)

The only completely consistent people are the dead.  (Aldous Huxley)

Generally, consistency gets a bad rap. Many people feel it’s uncreative, doesn’t allow for evolution of ideas. But consistency is extremely important for brands.

People get deluged by 3,000 + messages daily and only the concise as well as consistent messages will break through the clutter. But, as we know from our own experience with Chinese Whispers, being concise and consistent doesn’t always produce the best results. Businesses need to switch people from a hearing to a listening mode.

We all hear gazillion pieces of information each day. But we don’t listen to a lot of information. The more engaged people are with your message, the more likely it is that they really listen to you and spread the word the way it was intended. Businesses need to build platforms to make as easy as possible for people to spread the message. Sure, not every information you disseminate will be spread the way you planned ahead of time. But, as long as people are passionate and enthusiastic, they will be able to spread with the right intent.

Dear Mr. Oscar,

happy birthday. You’ve lived a long life and shared with us many beautiful moments. But it’s time to get the Ginseng root out and stop acting your age:

Watching the Academy Awards has become a borefest. We’re all waiting for moments (Jack Palance one-armed push-ups, streakers, whatever) but instead we get songs and dances and ‘I want to thank the Academy’ speeches.

Mr. Oscar, you’re suffering from a problem shared by many businesses: You don’t listen.

How many of us complained about the length of the show? 4 hours is even too long for a Super Bowl. 8 hours if you count the pre- and post-event coverage. Do we really need to see all the songs? Wouldn’t a medley do it? How about all the smaller awards? Animated Short, for example. Is there a way to give the nominees a decent platform without boring us to death? Acceptance speeches - Does everybody have to thank the Academy and forget the rest of their speech?

Don’t get me wrong, Mr. Oscar, all award shows are facing a tough future: It used to be good enough to have the likes of Amy Winehouse and Brittney Spears on the bill to glue the nation to the TV. YouTube changed the consumption habits: Why wait for Amy Winehouse until 11pm if I can watch it next day rested in the office? The YouTubification makes 4 hours of Academy Awards almost unbearable. While we sit through another ‘Enchanted’ song we feel life slipping way: I could have read the Sunday NY Times, a book, my toaster manual - anything would be better.

What to do? First and foremost - Listen.

Listen to the desires of people why they watch the show. Understand that most people don’t care about 90% of the show. They are looking for the big awards, the big stars colliding, the big moments.

It’s going to be tough, Mr. Oscar. 80 years it’s been all about you. You were the center of the universe, everything revolved around you. Not anymore. People are snacking entertainment, easily distracted, bored. You have to make the show about the people outside of the Kodak Theatre. In this new marketing reality, the less selfish brands become, the more successful they will be.

Mr. Oscar, you had a good run. And I hope the run continues. But you need to change. It’s tough when you’re 80, I know. But you have no choice. Remember silent movies? Just saying.

Good luck!