Archive for November 10th, 2009

It's in the bill … hard time for the voluntarily uninsured.

November 10, 2009

Failure to buy health insurance in the just-passed health care bill could get you five years in jail with a $250,000 fine.

Under sections 7201 and 7203 of  Pelosi’s bill, Americans who don’t maintain acceptable health insurance coverage and who choose not to pay a fine/tax of up to 2.5% of income are subject to fines of up to $250,000 and imprisonment of up to five years.

http://www.investors.com/NewsAndAnalysis/Article.aspx?id=511806

The good news: once incarcerated, these felons get full healthcare … for free.

Do twentysomethings who choose to self-insure understand that they’re going to be subsidizing us old folks ?  Might work …

It’s in the bill … hard time for the voluntarily uninsured.

November 10, 2009

Failure to buy health insurance in the just-passed health care bill could get you five years in jail with a $250,000 fine.

Under sections 7201 and 7203 of  Pelosi’s bill, Americans who don’t maintain acceptable health insurance coverage and who choose not to pay a fine/tax of up to 2.5% of income are subject to fines of up to $250,000 and imprisonment of up to five years.

http://www.investors.com/NewsAndAnalysis/Article.aspx?id=511806

The good news: once incarcerated, these felons get full healthcare … for free.

Do twentysomethings who choose to self-insure understand that they’re going to be subsidizing us old folks ?  Might work …

Cash 4 Clunkers … or, make that Cash for a new Hummer … geez.

November 10, 2009

TakeAway: Under Cash for Clunkers, some owners of large pickups cashed in old trucks for between $3,500 and $4,500 toward new Hummer H3 SUVs that got only 16 mpg.        

Source: Associated Press: Clunker pickups traded for new pickups, Nov 4, 2009

The most common deals under the government’s $3 billion Cash for Clunkers program, aimed at putting more fuel-efficient cars on the road, replaced old Ford or Chevrolet pickups with new ones that got only marginally better gas mileage.

The single most common swap — which occurred more than 8,200 times — involved Ford F150 pickup owners who took advantage of a government rebate to trade their old trucks for new Ford F150s. The fuel economy for the new trucks ranged from 15 mpg to 17 mpg based on engine size and other factors, an improvement of just 1 mpg to 3 mpg over the clunkers.

Owners of thousands more large old Chevrolet and Dodge pickups bought new Silverado and Ram trucks, also with only barely improved mileage in the middle teens,.

Those deals helped the Ford F150 and Chevy Silverado — along with Ford’s Escape midsize SUV — climb into the Top 10 most-popular vehicles purchased with the government rebates. The most common truck-for-truck and truck-for-SUV deals totaled at least $911 million.

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In scores of deals, the government reported spending a total of $562,500 in rebates for new cars and trucks that got worse or the same mileage as the trade-ins — in apparent violation of the program’s requirements.

More than 95,000 of the new vehicles purchased under the program — or about one in seven — got less than 20 mpg, according to the data.

Plenty of consumers bought relatively low-mileage trucks and SUVs with the help of government checks.

Full story:
http://news.yahoo.com/s/ap/20091104/ap_on_bi_ge/us_cash_for_clunkers

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On the plus side:

Popular high-mileage commuter cars including the Toyota Corolla, Honda Civic, Toyota Camry and Ford Focus also were among the Top 10 most popular new vehicles bought under the four-week program, with 105,280 of those models sold for a total of about $2 billion.

Time for a makeover: the future of brand managers

November 10, 2009

Takeaway: If you are pursuing a career as a brand manager, your role may be very different than you imagined.

A report that will soon be released by Forrester will provide a redefinition of what a brand manager should be. Their groundbreaking finding: marketers should get back to marketing. Beyond focusing solely on your product, you should really get into the mind of your consumers and appeal to their needs and desires.

And with the rise of digital media, targeting specific segments can be done with more precision than ever before.

The report also claims that decisions really need to be performance-oriented, with more reliance on research and analytics.

Hmmm, recommending a focus on people and performance? It looks like those extra P’s we learned about in Markstrat were well worth it.

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Excerpted from AdAge, “Why It’s Time to Do Away With the Brand Manager” by Jack Neff, October 12, 2009

Managing a brand has always been a slightly odd concept, given that consumers are the real arbiters of brand meaning, and it’s become increasingly outmoded in today’s two-way world. That’s why a new report is going to recommend changing the name “brand manager” to “brand advocate,” and fundamentally changing marketer organizations in response to the onset of the digital age.

The report, due out next week from Forrester, finally puts the onus on marketers to change their structures — a welcome conclusion for media owners and agencies who keep hearing how they should change, but often complain that their clients have done little to shift their organizations to cope with an increasingly complex world of media fragmentation and rising retailer and consumer power.

Among the specific recommendations in its report, “Adaptive Brand Marketing: Rethinking Your Approach to Branding in the Digital Age,” Forrester suggests “brand advocates” be responsible for rapid adaptations of global brand platforms and programs, charging centralized global brand strategists with ensuring what local managers do conforms with the brand equity and strategy.

It also advocates recognizing the brand isn’t the only organizational structure that’s important for multibrand companies, but that structures aimed at marketing to demographic or other segment cohorts are equally important. And it also maintains that marketing executives should think less about anchoring annual plans around one or two big hits and more about doing many smaller things quickly and adapting based on real-time consumer feedback and other data.

He believes marketers in the digital age need to be more “numerate,” with more training in research and analytics even if they still rely on staff for help. Marketers today need to balance art and science, he believes, not unlike architects, musicians or cinematographers.

Key to any change, the former Tide brand manager said, is a return to marketing as the focus of brand management, “rather than one of six things a brand manager does.”

“So much of [brand managers’] time is subsumed by internal management, and so much of the creative process and planning is outsourced to agencies and other parties,” Forrester’s Ms. Bradner said. Brand advocates, she said, “really need to be in charge of the heart and soul of what the brand stands for. It does move you off the generalist track to be more of a pure marketer.”

Edit by JMZ

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Full Article:
http://adage.com/cmostrategy/article?article_id=139593

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When you let folks down, spit out the words: "I’m sorry"

November 10, 2009

Ken’s Take: Here are two very different stories re: how companies respond when they let customers down.. AT&T tries to slick over the problem.  Cox Cable steps up, takes responsibility, and offer a couple of freebies to ease the pain.

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AT&T 

“AT&T customers have been complaining for months about dropped calls, spotty service, delayed text and voice messages and slow download speeds for the iPhone”.

In response, AT&T produced a three-minute YouTube video in which it appears that a spokesperson called “Seth the Blogger Guy” will address concerns from a large number of unhappy customers.

“Look, we see the discussions on the Web,” he says, “on blogs, on Twitter, on Facebook. So we thought it would be a good idea to take what’s being said head-on.”

So far, so good, but Seth quickly loses his focus by:

  • Describing the huge demands placed on networks by smartphone usage
  • Congratulating AT&T for its role in expanding the smartphone market
  • Detailing the extraordinary efforts to facilitate a smooth rollout for the iPhone’s MMS feature (which had yet to be released when the video was made, and about which no customers had complained.)

Nearly two minutes into the presentation, Seth finally gets to the point.

“So what are we doing about it?” he says. “Well, put simply, we’re working around the clock to enhance and expand out network to meet these challenges.”

He concludes by telling viewers what AT&T plans to do and how much it plans to spend, but fails to offer concrete timelines, or much else that would matter to a customer frustrated by terrible service.

More important to consider is what Seth left out: He never says what customers really want to hear … sorry.'”

Source Marketing Profs: Sorry Seems to Be the Hardest Word, Nov. 5,2009
http://www.marketingprofs.com/short-articles/1412/sorry-seems-to-be-the-hardest-word/?adref=NmiF1B9

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Cox Cable

Background: On Wed, Nov. 4 Cox had a massive system outage in Northern Virginia that lasted most of the nite.  As luck would have it, that turned out to be the nite that the Yankees beat the Phillies to win the World Series.  Lots of disappointed sportsfans.

Here’s how Cox responded.  I think they did a pretty good job …. considering.

An email from Cox NOVA’s General Manager:

We let you down. You expected to turn on your television and sit down to watch the game or your favorite Wednesday night show. That probably didn’t happen and I apologize for that.

Some of our most vital equipment took a significant power hit, and when rebooted, much like a home computer, it did not come back on line properly.

In spite of tremendous effort on the part of our best people, that reboot process took several hours and frankly, probably ruined your night. As your neighbor, I experienced the same in my home.

We are committed to you, our valued customer, and nothing is more important than rebuilding your trust in us by taking action to make things right.

First, we’re going to credit your residential account with a free month of digital gateway service.  The credit will be automatically applied to your account, no need for you to do anything. We also hope you will take advantage of a free video On DEMAND movie .

While such an outage has not occurred in the history of Cox NOVA, we take this very seriously and are already working to ensure higher reliability of our video network as we completely review processes and emergency procedures so that you can enjoy your your TV service uninterrupted.

We appreciate having you as a customer. It’s important to us. My thanks for allowing us to serve you,

Janet Barnard
SVP and General Manager
Cox Communications

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