BANKS MARKETING AND PARTIES

Congratulations to Phil Mickelson on winning the 2009 Northern Trust Open this past weekend at the exclusive Riveria Country Club in Los Angeles. It was a great performance for him where he birdied the 16th and 17th holes to take home $1,134,000.00 in prize money. Unfortunately Northern Trust, the bank that sponsored the event, scored a quarduple bogey with the public. It is mind boggling that they have the audacity to spend like drunken sailors after receiving $1.6 billion in bailout money from the government. Here are a few highlights of their outrageous spending.

The Chicago based bank flew hundreds of employees and clients to LA and put them up in the Beverly Wilshire, Loews and the Ritz Carlton. Nice digs for people using bailout money.

On Wednesday night they held a dinner for clients and friend at the Ritz Carlton with the evening ending with a performance by the band Chicago. If that was not enough, all of the female guest received gifts from none other than Tiffany's

On Thursday their dinner was held in a private hangar at the Santa Monica Airport followed by a private concert by Earth Wind and Fire. But wait... it gets better!

On Saturday they rented out the entire House of Blues on Sunset for a wild night of debauchery with a menu fit for a king. Then the night was topped off with another private concert by Sheryl Crowe. Are you kidding me??

Other perks for their select group included rides to wherever they need to go in mercedes, a cocktail party at Loews, on course and off course hospitality and much more. Don't forget they also paid a huge sponsorship fee that goes towards the marketing and purse for the tournament itself.

Here is the kicker to all of it. In December, Northern Trust laid off 4% of their workforce, or 450 employees. You want to talk about a stimulus package? Kill the parties and extravagance and use the money to keep the 450 families employed and contributing to the economy.

Now you have to understand that I am a marketer and I am all for sponsorships as they do create jobs and drive the economy, but all of the extravagances around the event can go by the wayside. Imagine how much great press Northern Trust could have generated for themselves if they said they were cancelling all of the parties and events in light of the bad economy.

Instead they had the audacity to say they did not spend any of the bailout money on the events, as the money came from the operating expense of the bank. Give me a break... that they could attemt to try to make it better with semantics is just further proof that the banks could not care less about what is going on in the world even though they are largely responsibile for it all.

U2 TAPS SOCIAL MEDIA

If you want to hear U2's new album, " No Line On The Horizon'" before March 3rd, you better know something about Social Media. Actually, you better be a member of MySpace, becasue if you are not you can't hear get it until March 2nd. Click Here to hear the album. This is really a coup for MySpace, which last month fell to the number 2 spot in the social media space, behind Facebook. It would have been cooler to have the number one band in the world to be with the number one social media site in the world, but this just might propel MySpace back into the number one spot, for a month anyway. I guess they did it to help prevent piracy, but it is also a testament to how powerful social media is becoming. Granted MySpace was born out of music, but this is a big win for them. I am sure we will be seeing more and more bands doing things like this. To be honest, I beleive the era of the branded free album is actually not too far off.

As you know the real money for bands is made in touring and merchandise. The actual sale of CD's is not where bands make their money with the exception of albuns that go platinum. Imagine if a brand like Best Buy said "Hey band X... we will front you the money to make the album, give you some money towards touring and we will give the music away for free at our stores as a gift with purchase." They then let the band keep their touring money and merchandise money and there is no advance to pay back either. Hmmm...sounds like a tasty recipe for a band but why would they want to give it away for free? The answer is simple actually. Best Buy could give away millions of CD's as a gift with purchase which only increases the pool of fans who might want to go to see the band when they tour. It simply gives them a larger fan base and the opportunity to make more money when they tour and sell merchandise whcih is generally their bread and butter. It is a win-win. Further, the Brand could essentially retain a license to the music for a year and then have all rights revert back to the artist which again is a win-win. The brand can use the music in their advertising and branding activities for the cost of making the album and the artist gets to make the albumn with no payback of the advance. The only question would be who owns the publishing and I am certain we all know the answer to that... it is negotiable.

This is a recipe which the record companies will absolutely hate, but it sure does make a lot of sense to me. What are your thoughts?

PEANUTS ON THE MIND

You know in the midst of this huge peanut problem, combined with the bad economy, coupled with record unemployment, and a stock market hitting 14 year low points, I figured everyone could use a little humor. Check out what CNN Reporter, Zain Verjee had to say about peanuts and Northwest Airlines.

You know the normally austere Wolf Blitzer had to get hysterical off camera on this one.

APPLE 1 - MICROSOFT ZERO

You knew it had to happen. The giant is now chasing the little guy. Microsoft is chasing Apple. Don't get me wrong I know the whole market share thing, but Microsoft announced last week that they will be opening up stores to help consumers get a better PC buying experience. You have to be kidding me right? Yeah I can just imagine the creative and design geniuses over in Redmond coming up with "really cool" stuff to do in the stores. I can just see the sales staff with pocket protectors and tape on their glasses.

The real lesson here is that Microsoft was complacent and felt because they had so much market share that they did not have to worry about their brand image. One of my favorite things to tell Brand Marketers is that if you do not carefully position your brand, your competitors will do it for you. Apple has done a brilliant job of positioning Microsoft as a brand for dorks with their television campaign Apple and PC. I think they are some of the best commercials on television today. They tell such a great story in 30 seconds and they make Microsoft look stupid and petty while making Apple look cool.

It is clearly working, as on a recent visit to the Apple Store on 5th Avenue in NYC at 1:30AM the place was packed. Not busy...packed at 1:30 in the morning. Granted there were a lot of people just hanging out but plenty were buying too. I only ended up there at 1:30 because it was so busy at 3 in the afternoon that I did not want to wait around to buy a new external hard drive.

I for one can't wait to see how Microsoft tries to battle the image that Apple has created for them. I am sure they will try to make the stores hip but my gut tells me they will miss. What will they call their Genius Bar? How will they ever compete with the experience that Apple has created? Going to an Apple Store is truly retail entertainment at its finest. Remember when the "experts" were saying what a critical mistake opening retail stores was for Apple? I guess Apple proved them wrong. I wonder if Microsoft will be able to follow suit? You know what they say...if you are not the lead dog, the view never changes.

Stay tuned because this one is near and dear to my heart.

BILLION DOLLAR BONEHEADS PART II - REALLY!?!

You know... I guess there are 2 sides to every story and this is a decent other side to the Michael Phelps story. He is still an idiot for doing what he did... and I simply mean getting caught. You would think he would be smart enough to do stupid things at home but hey... you never know.

GET OVER IT YOU TRISKAIDEKAPHOBE!

So you are paralyzed at home hiding under the bed because today is Friday the 13th? I have to tell you that most people would call you a triskaidekaphobe. I can't even pronounce it. I have a fear of mispronunciation. I had to cut and paste that word for fear of spelling it wrong! I am so paralyzed that I might make a mistake today that I cut and pasted some information below from a National Geographic web article written by John Roach to give you some background.

So how did Friday the 13th become such an unlucky day?

Dossey, also a folklore historian and author of Holiday Folklore, Phobias and Fun, said fear of Friday the 13th is rooted in ancient, separate bad-luck associations with the number 13 and the day Friday. The two unlucky entities ultimately combined to make one super unlucky day.

Dossey traces the fear of 13 to a Norse myth about 12 gods having a dinner party at Valhalla, their heaven. In walked the uninvited 13th guest, the mischievous Loki. Once there, Loki arranged for Hoder, the blind god of darkness, to shoot Balder the Beautiful, the god of joy and gladness, with a mistletoe-tipped arrow.

"Balder died and the whole Earth got dark. The whole Earth mourned. It was a bad, unlucky day," said Dossey. From that moment on, the number 13 has been considered ominous and foreboding.

There is also a biblical reference to the unlucky number 13. Judas, the apostle who betrayed Jesus, was the 13th guest to the Last Supper.

Meanwhile, in ancient Rome, witches reportedly gathered in groups of 12. The 13th was believed to be the devil.

Thomas Fernsler, an associate policy scientist in the Mathematics and Science Education Resource Center at the University of Delaware in Newark, said the number 13 suffers because of its position after 12.

According to Fernsler, numerologists consider 12 a "complete" number. There are 12 months in a year, 12 signs of the zodiac, 12 gods of Olympus, 12 labors of Hercules, 12 tribes of Israel, and 12 apostles of Jesus.

In exceeding 12 by 1, Fernsler said 13's association with bad luck "has to do with just being a little beyond completeness. The number becomes restless or squirmy."

This fear of 13 is strong in today's world. According to Dossey, more than 80 percent of high-rises lack a 13th floor. Many airports skip the 13th gate. Hospitals and hotels regularly have no room number 13.

On streets in Florence, Italy, the house between number 12 and 14 is addressed as 12 and a half. In France socialites known as the quatorziens (fourteeners) once made themselves available as 14th guests to keep a dinner party from an unlucky fate.

Many triskaidekaphobes, as those who fear the unlucky integer are known, point to the ill-fated mission to the moon, Apollo 13.

As for Friday, it is well known among Christians as the day Jesus was crucified. Some biblical scholars believe Eve tempted Adam with the forbidden fruit on Friday. Perhaps most significant is a belief that Abel was slain by Cain on Friday the 13th.

So there you have it. Good luck today!

BILLION DOLLAR BONEHEADS

If you ever wondered does a celebrity endorsement make sense for your brand all you have to do is look at all of the celebrities that have blown it! Look no further than the billion dollar boy - Michael Phelps - who was the Nation's golden boy just a few short months ago. He had the marketing world lining up to do endorsement deals with him. Now it might be tough to find a company, other than Zig Zag, who wants to be within 100 yards of him! The truth is Celebrity Endorsements are dead if they were ever really relevant at all. Does anyone believe that Tiger Woods hops out of his private jet to a waiting Buick Lucerne? Come on...even my kids don't buy that nonsense!

It has been reported that they are building a case against Phelps and have arrested up to 8 other college kids who were at the party. Right now there are no charges pending against Phelps and he has issued a statement apologizing for his "regrettable behavior" and "bad judgement" but if you had his photo on your cereal box you would be mighty miffed.

The truth is AUTHENTICITY is far more powerful that any celebrity endorsement could ever be. Friends telling friends about a product is so much more impactful than any celebrity saying they use the brand. One study shows that less than 20% of people say celebrity endorsement has any impact on their brand decisions. In this world of social media and accessible means of distributing information, brands are wasting billions of dollars on celebrity endorsements that deliver absolutely no value to their brands. Further, these endorsement deals can damage the brand equity when someone does something stupid like Michael Phelps or Chris Brown. Oh...did I mention Chris Brown assaulting his mega star girlfriend Rihanna? How would you feel if you were the Brand Manager for Doublemint over at Wrigleys? You were a hero last week and a goat today. Michael Vick and Nike, Madonna and Pepsi, Robert Jarvic and Pfizer, Eric Clapton and Anheuser Busch, Mary Kate and Ashely and Got Milk, Ludacris and Pepsi... the list goes on and on but the money keeps flowing. When will brands realize that consumers just don't buy it? If they would simply use Social Media and let real people spread the word the results would be astounding! Look at Doritos and the 2 guys who did the Crystal Ball Superbowl ad. The Tonight Show, The Today Show, The New York Times, The Wall Street Journal, USA Today and those are just some of the mainstream media outlets that covered these guys. All because of a social media campaign that went well. Do I need to say more?

MY FRIEND MONKEY - NOT THE ONE ON MY BACK!

I got an email from a friend of mine yesterday which reminded me about how cool his product really is. His company is called Wrecords by Monkey and they basically make bracelets and rings out of old vinyl records. In their words...

WrecordsByMonkey is a Brooklyn-based design company that bridges the worlds of fashion, art and music. Using reclaimed vinyl records, they create handmade accessories with a low carbon footprint that can be incorporated into anyone’s individual style. Their niche product, the Wrecord bracelet, comes in designs from silly to sophisticated. WBM’s full line includes bracelets, necklaces, earrings, rings and t-shirts, all inspired by the idea of relating to music lovers of every generation.

I ran an artisan market with my 2 brothers in NYC, and the Wrecords By Monkey booth was ALWAYS busy. Their mainstay item is the bracelet which is amazing as it appeals to hip New York kids and people from Iowa all at the same time. There is just something about these bracelets and other stuff that has instant appeal. Don't take my word for it, check out their website here. Also check out these classic bracelets here.

WHAT IS YOUR 9-YEAR OLD DOING?

While my 8 and 10 year old sons are out playing sports and basically doing a whole lot of nothing, this kid is out there doing something really amazing. I can't fathom that he built this application for the iPhone and got it approved and up there in the App Store, but it is true. I guess I am a moron compared to this 9 year old kid! Forget about who is smarter than a 5th grader. In this case I am not even smarter than a 4th grader. Ouch!

All kidding aside, this is just another example of how the next generation of media and technology junkies are getting younger and younger. Just imagine where this kid will be and what he will be able to do by the time he gets to his first job. The lesson here is that you have to look at the kids to find out where we are going becasue they are clearly dirivng the bus.

Reuters recently reported on nine-year old Lim Ding Wen from Singapore, whose Doodle Kids [App Store] application has seen over 4,000 downloads since its release several weeks ago. The free application, designed for his sisters aged three and five, allows users to draw on the iPhone screen using random shapes and colors and then erase their creations by shaking the device.

TG Daily followed up on the story to reveal that the program, along with a number of others, was originally written for the Apple IIGS, as detailed on a personal website set up for him by his father, an Apple IIGS enthusiast. A second Apple IIGS game, Invader War, is also being ported to the iPhone and will be made available through the App Store.

Frustrated by Technology

I saw this video on The Onion and I got hysterical. This is so true of new technology. There is a lot of profanity in this video so be careful where you look at. If you are easily offended you might want to take a pass on this one as there is a ton of swearing, but it is funny. Then again if you are offended by this video you might not want to read my blog too often.