In other words, techniques that make it practically impossible fo a buyer to ascertain the real economic cost of a product.
Here are some of the ways that sellers shroud their prices to flatten your wallet …
Well, not really … but it sure sounds like that..
Working with celebrities used to be a simple matter.
Marketers would write a big check for a star to perform a specific purpose — for Olympian Mary Lou Retton to grace boxes of Wheaties, or for model Cindy Crawford to don short-shorts and sip Pepsi.
Now, according to AdAge, brands aren’t just featuring celebs in marketing campaigns — they’re giving stars a place in the marketing suite.
Big brand names are going beyond celebrity endorsements and hiring celebs for actual marketing jobs, giving them titles like Brand Manager, Creative Director, and even CMO.
Here’s what’s happening … Read the rest of this entry »
No it’s not a coincidence.
It’s called “product placement”.
Back about 25 years ago, I was at Black & Decker and my marketing team was on the leading edge of product placements – paying to get our stuff into TV shows and movies.
Our big score was getting Marty to ogle over a Dustbuster in Back to the Future – Part 2.
Now, is iit just me, or is product placement out of control?
ABC, NBC and IFC are taking product placements up a notch in their prime time network shows.
Here are some examples …
Though it’s prominently displayed, I didn’t realize that I could see a list of people who had viewed my profile.
Not exactly sure what I can or will do with that info, but it’s nice to know that it’s there, right?
WAIT A MINUTE !
If I can see who’s been browsing my profile then other people can see if I’ve peeked in on their profiles.
That can’t be good.
Not to worry.
LinkedIn has ways to check out profiles covertly.
Want to know how?
OK, so you have to go to India … it’s technically a Maharaja Mac, not a Big Mac … and, the cheap price is driven by relative currency values.
Still, one of my favorite price indices is the Big Mac Index … it compares the currency adjusted price of the burger across the globe.
According to Ryan Avent, chief economist at The Economist …
The Big Mac index is based on an economic theory called purchasing-power parity (PPP), which indicates that over a long enough time exchange rates should adjust so similar goods cost the same across countries.
The index reveals that, at market exchange rates, the price of the same McDonald’s burger can vary vastly from country to country.
I’m lovin’ it ….
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According to LiveScience.com …
Since psychological studies first began, people have given themselves top marks for most positive traits.
While most people do well at assessing others, they are wildly positive about their own abilities.
The phenomenon is known as illusory superiority.
Illusory superiority is everywhere
Ironically, the most incompetent are also the most likely to overestimate their skills, while the ace performers are more likely to underrate themselves.
Psychologists say the illusory superiority happens for several reasons:
According to MyHealthNewsDaily.com …
Despite urban legends to the contrary, drinking doesn’t lead to a better night’s sleep.
Having a few drinks may help you fall asleep, but that deep slumber continues for only part of the night.
After that point, getting shut-eye becomes more difficult … and there’s a serious downside.
Researchers analyzed … more than 500 people who drank low, moderate or high amounts of alcohol before going to bed, and underwent testing while they snoozed in a sleep lab.
Here’s what they found ..
In a time of uncertainty and intense competition, there are ways to close the big (and little) deals that can make or break your business..
Fortune.com offered up 5 ways to overcome a climate of uncertainty and move from talk to contract.
How ironic.
In New Zealand there’s a movement to ban killer cats.
Same time, Monopoly game owner Hasbro opts to replace the classic iron token … with a cat.
WHAT ????
Is nothing sacred?
This move hits home since I peddled irons for GE and Black & Decker.
Gotta love your product, right?
And, as reported in prior posts, I don’t have particularly strong affection for cats.
Hasbro is hiding behind the old “America has voted” line.
Doesn’t soften the blow to know that cat lovers banded together to jam a feline down our throats.
I may never play Monopoly again ….
* * * * *
Quiz Time:
How many “active” Monopoly tokens are there? Can you name them?
Boys score as well as or better than girls on most standardized tests, yet they are far less likely to get good grades, take advanced classes or attend college.
That’s not fair.
Why does it happen?
Here’s a shocking research finding for you …
Punch line: Studies have shown that executives with military experience are less likely to be involved in fraud.
Students and executives are trying to learn from these leaders through courses taught on a USMC base in Quantico, VA where they face intense ethical challenges.
* * * * *
QUANTICO, Va. – Sunlight was filtering through the trees as the team trudged up yet another hill to the final objective of the morning.
The mission was simple. The team was to meet with a local village priest and establish a relationship.
The plan quickly fell apart when the group realized the solemn ceremony they had been invited to was a forced “wedding” in which a bride whose hands were bound by rope was carried screaming into a tent.
Now they were faced with a choice.
Awhile ago, we reported a study that consumers almost invariably pick 33% more stuff than a 33% price discount.
Ouch.
Consumers are notoriously bad at spotting real values. Why?
According to the Atlantic ….
More specifically, here are some more ways consumers end up paying too much …
Based on BLS reporting, Business and Finance jobs are among the least deadliest professions … except for paper cuts and missed deadline coronaries, there’s not much risk of work-related deaths.
At the other end of the spectrum, “The Deadliest Catch” is on target … fishermen really do have the greatest risk of dying on-the-job.
According to PlanetMoney …
In 2011, fishermen died on-the-job at a rate of 121 per 100,000 fishermen … mostly drowning after boats capsized.
Logging was 2nd … mostly falls from trees and chainsaw accidents.
The pilots who dies were mostly small plane pilots … e.g. crop-dusters and bush-pilots.
* * * * *
Bar bet: Note that firemen death rate for firemen is below the national average … you can win some money on that one.
* * * * *
If you’re curious, here’s the BLS’s complete list
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When the lights went out during the SuperBowl, I flashed back to the 1989 World Series pitting the Oakland As with the San Francisco Giants.
Remember game 3?
Just moments before the game was scheduled to start, a major earthquake shook Candlestick Park.
The stadium suffered only minor damage, but elsewhere the area suffered billions of dollars of damage, and dozens of people were killed.
Commissioner of Baseball Fay Vincent immediately postponed Game 3, and delayed announcing when, where, and even if the Series would be resumed.
Finally, after consulting with public officials, Vincent scheduled Game 3 at Candlestick Park on October 27, 10 days after the earthquake.
Source: MLB.com
Now, that was an untimely disaster.
The SuperDome’s power outage occurred after two electrifying performances: One by Beyonce; one by Jacoby Jones.
Jacoby electrified the place by opening the 2nd half with a 108 yard kick-off return for a TD.
Man, can that dude fly.
Nobody’s blaming Jacoby.
But, it seems that Beyonce has emerged as a person-of-interest.
Oreo’s quick thinking during the infamous Super Bowl blackout generated a spontaneous twitter ad that caught the attention of millions.
Anyone watching the Super Bowl this evening saw a great game — and one of the greatest embarrassments in pro sports history: a power outage that halted play for a full half-hour.
As both teams, tens of thousands inside New Orleans’ Superdome and millions watching on TV waited, Oreo came up with an idea so brilliant and bold that it out and out won the night.
In his book, Priceless: The Myth of Fair Value (and How to Take Advantage of It), author William Poundstone dissects the marketing tricks built into menus—for example, how something as simple as typography can drive you toward or away from that $39 steak.
Here are some on the profit-enhancing menu tricks to watch for …
Many folks are wondering: Why has the stock market continued to steam ahead despite a ho-hum (or humbug) economy?
Source: Council of Economic Advisers
Answer: It’s less a matter of optimism re: a recovery, and more a function of the Fed pouring money into the economy. You know, quantitative easing — QE-infinity.
Here’s why …
According to the National Law Journal:
And, that’s only part of the story …
Applications are down almost 40%, but admittances are only down about half that amount.
In other words, the acceptance rate has increased from about 50% to about 80%.
Hmm.
The drop in selectivity wouldn’t be that bad if the weaker applicants were the ones who stopped applying.
But, that doesn’t seem to be the case …
US US News & World Report says to keep these 10 catch phrases off your cover letter:
1. “I meet the requirements for the position.”Explain why you’re an excellent candidate, not just an adequate one.
2. “I’m hard-working and a great communicator.” These are cliches that cause hiring managers’ eyes to glaze over …and don’t convey anything of substance.
3. “I’m a visionary leader.” Proclaiming this about yourself comes across as, well, weird. Show accomplishments.
4. “You won’t find a candidate better qualified than me.” This comes off as needlessly cocky hyperbole — and it’s generally inaccurate..
5. “Dear sir or madam.” In most industries, this will come across as an antiquated, stuffy salutation. If you know the hiring manager’s name, use it … if not, simply writing “dear hiring manager” is fine.
Let me be sure that I have this right.
According to the WSJ …
The government reported that the U.S. economy shrank for the first time in more than three years in the fourth quarter of 2012.
Gross domestic product — the broadest measure of goods and services churned out by the economy — fell at a 0.1% annual rate in the fourth quarter of 2012.
The drop, a surprise, was driven by a sharp fall in government spending and by businesses putting fewer goods on warehouse shelves, as well as by a decline in exports.
A one quarter contraction of economic output doesn’t mean the economy is formally in recession, but it is unusual for such contractions to happen in the middle of economic expansions.
In fact, a similar drop has only happened one time in the past fifty years.
Of course, the media bellowed that the number wasn’t as bad as it looked since much of the hit came from a drop in government spending which, incidentally, had surged in the pre-election 3rd quarter.
Hmmm.
* * * * *
The story gets better …
Answer: deals.
Earlier this week we posted that JCP CEO Ron Johnson insisted at an investor conference that Penney’s “marketing is really starting to connect” with customers … and that in 2013, Penney will become “a happening place.”
That was 2 days ago. Then yesterday …
According to USA Today: CEO Ron Johnson announced a strategic evolution to its plan to offer everyday low prices that customers could count on rather than the nearly 600 fleeting discounts, coupons and sales events each year.
What sort of “strategic evolution”?
Here are some interesting nums …
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According to the Chicago Police Department …
Chicago had 513 murders in 2012 … about average for the past 5 years … but – on the bright side – only about half the number common 20 years ago.
* * * * *
Though murder rates were even higher 20 years ago, police “cleared” more two-thirds of Chicago’s homicides then, i.e. arrested & prosecuted somebody.
The clearance rate has dropped below 1 in 3 … largely due to “no snitch” rules of the street.
OK, let’s start with the garden variety doping allegation.
Several news sources reported that Alex Rodriguez of the Yankees was “ensnared in a doping investigation once again when an alternative weekly newspaper reported baseball’s highest-paid star was among a half-dozen players listed in records of a Florida clinic the paper said sold performance-enhancing drugs.”
Technical question: What the heck is an “alternative weekly newspaper”? What is it an alternative to?
The Miami New Times said the three-time AL MVP bought human growth hormone and other performance-enhancing substances during 2009-12 from Biogenesis of America LLC, a now-closed anti-aging clinic in Coral Cables near Rodriguez’s offseason home.
Another technical question: What the heck is an “anti-aging” clinic? Glad to see it closed.
The New York Yankees third baseman issued a statement denying the allegations.
Now let’s move to the jaw-dropper: Raven’s LB Ray Lewis Accused of Using Performance Enhancing Deer Spray.
First. my stake in the game: I consider myself an economist … at heart and by schooling … majored in econ … grad work in applied econ … worked for awhile doing econometrics.
Econ still permeates my marketing strategy work.
So, I was naturally drawn by an article in the UK Independent:
“Fraudster fools a whole nation: Portuguese economics pundit exposed as conman.”
Just looking at this dude has gotta set off some alarm bells …
Here’s the story and my take on the question ….
According to the HBR Daily Stat …
MBA applicants may be at a disadvantage if they interview on a day when several others have already received positive evaluations
Specifically, the 4th Great MBA applicant interviewed on a given day Is less likely to get a high interview score
Study results and what to do about them …
Strong language, eh?
This caught my eye because I’ve never been a cat fancier,
We had one for over 20 years.
When my sons asked for a cat, I said ok.
Nobody told me it would be hanging around for 2 decades.
The cat was so nasty that it used to pounce on and bite my mother-in-law … one of the most serene ladies the lord ever put on this planet.
That’s nasty.
I guess I’m not the only cat non=lover.
A New Zealand environmental advocate launched a campaign to ban cats as pets entirely!
Why?
Despite dramatic reform and an attempted ‘retail revolution’, JCPenney has yet to make inroads with shoppers.
Will new in-store boutiques and a greater ‘connection with customers’ be enough for a turnaround?
According to BrandChannel …
When Obama was elected in November 2008, GE CEO Jeff Imment told his troops: “We’re all Democrats now”.
It wasn’t a political statement as much as a practical business reality.
Now, Forbes is asking “Are Apple, Whole Foods and Google Democrats or Republicans?”
Forbes’ central thesis:
Welcome, in short, to a new, neutral … U.S. corporate environment — thanks in no small part to the increasingly polarized politics of this country.
“Companies know if they align too much with one party or political view they will alienate one half of the buying public.”
Companies might lean Red or Blue in politics but in the end the only color that really counts is green.
Here are Forbes’ poster children of the new neutral …
According to the YouGov Brand Index annual survey, the winner is …
YouGov BrandIndex’s Buzz score asks respondents: “Have you heard anything about the brand in the last two weeks, through advertising, news or word of mouth?”
That’s a pretty wide net – can be positive or negative – but, it is certainly a measure of “buzz”.
Here are the rest of the Top 25 … many surprises …
Answer: It depends on a person’s “major” (i.e. finance folks tend to make more), their background before MBA school, and the b-school they attend.
According to NerdWallet, the average MBA student will earn $113,730 straight out of graduation, which includes a signing bonus of $18,764.
Stanford University leads with an average total compensation of $146,677.
Check out Nerdwallet’s Top 20 List … and rejoice, MSB is on it !
Last week it was Phil Mickelson … the pro golfer said he was considering relocation options to mitigate high tax rates.
Phil – a white, conservative, male – got blasted by the liberal press for his apparent unwillingness to be patriotic and pay his fair share.
Yesterday, the story got more interesting.
Rock icon Tina Turner announced that she’s renouncing her U.S. citizenship to become a Swiss-miss.
* * * * *
As you may know – or can see above – Tina is not a white, conservative, male.
So the press coverage has been, shall we say, “gentle”.
To that point …
A CEO I worked for used to oft say “ I pay you to make the weather, not just report it.”
I thought it was a clever line … and use it in class … to raise the old expectation’s bar.
Well, apparently former Mexican President, Felipe Calderon and his buddies at Davos heard the same admonition.
According to sources, the Davos leaders are calling for an unprecedented investment of $14 trillion to green the global economy, to stop climate change and to preempt hurricanes.
Here’s more …
In California, Two-Buck Chuck has been upchucked … from $1.99 to $2.49.
Is nothing sacred?
* * * * *
Here’s what’s behind the end-of-an-era pricing move …
First, a couple of disclaimers: (1) I don’t own a gun, I’ve never fired a gun … and I don’t plan to do either in my lifetime (2) I’m pro-Constitution, so I hate it when Constitutional rights are stripped away … that’s a very slippery slope (3) So, despite my personal aversion to guns, I’m not big on infringing other people’s right to own them (4) I love kids and I lived in Trumbull, CT … just down Rt.25 from Newtown … so, I took the school killings hard.
OK, with that out of the way, let’s look at the numbers to see how silly the DC debate has gotten.
Practically all of the political effort is on banning law abiders from owning assault rifles and high capacity ammunition clips.
Below is some FBI data that may surprise you …
A study reported by EurekAlert! – a science society — concludes that obese drivers are much more likely to die in car crashes than normal weight drivers.
Here’s the skinny on the study …
According to George Parker of AdScam ….
At a conference a couple of years ago. GE and their agency, BBDO, made a presentation of their new “Imagination” campaign.
After showing some nice TV spots and explaining that they’d spent $300 million on media over the last year, they proudly declared that brand awareness had increased substantially.
This generated polite applause.
Next up was the Marketing Director of blender manufacturer Blendtec who proceeded to blend:
He then put up a single slide showing that every time they posted a self-produced, ten dollar video on YouTube in their long-running “Will It Blend” campaign (which to-date has had more than 220 million views,) sales went up by an accurately measurable percentage.
Understandably, the crowd went nuts.
The point being, GE spent hundreds of millions and couldn’t quantify with any certainty what they had achieved for all that money.
Blendtec spent pennies and achieved consistently significant and measurable results.
Below are links to a couple of the Blendtec videos … worth watching.
Of course, I wouldn’t be asking if the answer was Obama’s.
According to Gallup, 38% watched Obama get crowned on Monday (a national holiday) … back in 2005, 40% watched W. take the oath (on a regular workday Thursday).
Hmmm.
* * * * *
It gets better …
NPR says …
“Getting the results of a genetic test can be a bit like opening Pandora’s box … you might learn that you’re likely to develop an incurable disease later on in life.”
There’s a federal law that’s supposed to protect people from having their own genes used against them, the Genetic Information Nondiscrimination Act, or GINA.
Under GINA, it’s illegal for health insurers to raise rates or to deny coverage because of someone’s genetic code.
But the law has a loophole: It only applies to health insurance.
Some insurance can be denied or priced high because of a person’s DNA.
Here’s an example … and a prediction.
Punch line: We can all agree that every word of your resume should be relevant, well-stated and interesting.
Leaving a few key things off will allow recruiters to easily check off their list of qualifications and get a sense of who you are.
Here’s what to leave off …
Forget Nenghazi … here’s a scandal for you.
According to the UK Telegraph …
An Australian teenager measured his Subway “foot-long” sub and find it was an inch short.
The picture-is-worth-a-thousand words is buzzing the internet.
Subway’s corporate responses (two of them) are classics …
Answer: Married folks … but not by much and the curves are soon to cross,
At the end of 2012, singles accounted for a record 49.6% of the population aged 16 years or older.
That’s up from 37.6% at the end of 1976.
Here are some more nums and the ‘so whats’ …
According to the NY Times, a growing number of colleges and universities are facing declining enrollment … and less revenue from tuition.
Here are some facts …
Interesting article in Slate: The Early Education Racket … poses the question does preschool really matter
Research suggests that if you have the time and money to argue over the merits of different preschools and their philosophies, your kid isn’t going to suffer either way since upper-middle-class parents “tend to be choosing between all very good options
In fact, he/she probably doesn’t need to go to preschool at all.
Here’s what the research says …
Punch line: Taking a page from Red Bull’s book, Axe launches a ‘Space Academy’ campaign, with a contest that sends winners on a space ship to the moon.
* * * * *
Excerpted from brandchannel.com’s, “Super Bowl Ad Watch: Axe Challenges Red Bull With Space Mission”
Axe has made its reputation with edgy advertising that makes no bones about why it believes young men should use it — to attract women to them as if they’re sexually magnetized.
Now, the Unilever brand is pushing the envelope just a bit more in two ways: …
After raising taxes on the rich … and, oh yeah, the not rich
… and after 23 executive orders signed with kiddies as the backdrop
… and, just in time for the inauguration ,,,
Gallup reports that President Obama’s approval rating has dropped to 49%
… which is , as you know, less than his oft cited election “mandate”.
Hmmm. Wonder if the mainstream press will report it?
I’m betting the under.
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Punch line: Facebook takes a crack at monetizing the site for retailers, adding a ‘Gifts’ feature that allows users to purchase and send an actual gift to friends.
Facebook uses that friend’s profile to suggest gifts based on their interests and ‘likes.’
Excerpted from Adweek.com’ “Facebook Unwraps Gift Products”
Remember when giving someone a gift on Facebook was like sending them a really intricate emoticon?
Yeah, people stopped doing that, and so did Facebook.
Now the social network is hoping people will start sending each other actual gifts.
Here’s how FB plans to do it …
Of course not … that’s silly.
OK let’s try a variant of the question: Does education make you smarter?
I bet a lot of you would bet the over on that one.
Here’s what the researchers say …
Here’s an academic shocker: Researchers found that many Russian doctoral students purchase their dissertations
Here are the facts.
According to Reuters …
The FAA has grounded Boeing’s 787 Dreamliner passenger jets while battery-related problems are investigated.
The plane has been plagued by recent electrical problems – raising concerns over its use of lithium-ion batteries.
Engineers and regulators are making checks – primarily to the plane’s batteries and complex electronics systems.
Here’s my take on the situation ….
Punch line: Major retailers are customizing online prices for each user, using users’ information (such as location) to determine different prices for identical items. The goal”higher price realization and higher profits.
* * * * *
Excerpted from WSJ’s, “Websites Vary Prices, Deals Based On Users’ Information”
It was the same Swingline stapler, on the same Staples.com website.
But for Kim Wamble, the price was $15.79, while the price on Trude Frizzell’s screen, just a few miles away, was $14.29.
The Homa Files 
