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Word of Mouth is the Wal-Mart of Marketing Concepts

Posted in Biz Tips by Kelly Hobkirk on August 25th, 2007

Are you able to speak? Do you know how to have a conversation? Do you consider all of your daily speaking and your conversations with friends, associates, and loved ones as marketing? Maybe some of the time? Perhaps, not?

Why do you suppose, then, that word of mouth marketing has caught on like wildfire? Is it possible that it has become so popular because it’s something that everyone already knows how to do?

The marketing buzz today is all about testimonials, but then again, testimonials have always been among the most powerful of marketing tools. I’ve been using testimonials in advertisements for 20 years, and I’m certainly not the first. David Ogilvy was using testimonials with great effectiveness over 60 years ago. No one called it word of mouth then. So why is talking now called word of mouth?

Is it perhaps because talking is free? Talk is cheap, and people like cheap. Wal-Mart has proven it. Wal-Mart takes perfectly good, quality products that already exist, and they find a way to manufacture and sell them cheaper. Like them or not, they have made a killing doing this. People like buying cheap like they enjoy sex. Sex sells, and so does cheap. Talk is cheap, hence we have word of mouth. Business owners want a cheap marketing solution, so word of mouth is popular, but therein lies the rub. Word of mouth marketing costs exactly the same as other marketing because it is the same thing!

Talking is easy, but the act of talking itself is not marketable. How, then, does one make talking marketable? Call it something else. How about Buzz? Oh yeah, I like the sound of that. “Buzz” makes talking exciting. Read these two phrases aloud, and tell me which one excites the senses more:

1. Have you heard the talk on the street?
2. Have you heard the buzz on the street?

It’s hard to say ‘buzz’ without emphasizing it just that little extra bit.

Getting Over the Buzz
Oh yeah, the buzz. I’m all over that. No, really, I am over it. And you should be too. Talking about a product, a company, a service, or anything else that you like has always been an effective marketing tool. What is the tool called? Why, it’s called a testimonial. Cavemen used it. Later, after writing became all the rage, the tool was called a review.

You tell people about your favorite massage therapist, your new car, the fact that it runs on biodiesel, the movie you just saw. You tell people how your dentist is so gentle that you fell asleep during a root canal. You talk about a great Italian restaurant or some bagels that you love, the best espresso you’ve ever had or an organic face cream that makes your skin feel baby-soft. The pub with the best grub. Yelp has made a business out of collecting reviews.

Nothing New
Word of mouth marketing’s number one goal is to get people talking. Well, blow me over! There’s a concept! Talking. Can we really do that? I’m petrified with excitement, but not so frozen that my lips won’t move. Word of mouth is nothing more than a repackaging of time-proven marketing techniques. There is nothing new about it except the name.

It’s Easier to Say
Well, there’s our answer right there. Word of mouth has just three syllables, while testimonial has five. Could it be that word of mouth is simply easier to say? We do like easy.

How do you sell something that everyone already does? The better question may be, how do you market marketing?

Marketing Marketing
In our short attention span world, people are told that they crave new things. And we believe it. We need new kinds of food, new cosmetics, new cars, new ways, new damn near everything. We must need a new way of marketing then.

Word of mouth marketing proposes that people repackage a bunch of marketing concepts that for decades have been working just fine on their own. I’ve been practicing these procedures for my entire 22 year career. Create an identity, create a brand, define a target market, define their circle of influence, create a strategy, create a marketing plan, create an advertising media plan, create high-impact promotional materials, implement the plans, listen to your customers, and follow up with return-on-investment stats to see what is working and what is not. Rinse and repeat. All of this is focused on getting people talking to influence buying decisions. It has worked extremely well for a very long time, and it is not showing any signs of slowing down.

There are some newer tools such as websites, blogs, and email used to reach people, but the methods are still the same. And really, these tools can no longer be called new. We have been employing them for ten years.

Long Live Word of Mouth
Marketing is marketing is marketing. Call it what you like, the basic tenants that make marketing an effective business tool will always be the same. Our society needs marketing. If people think they need something new, there will always be people repackaging old concepts and slapping new names on them. Marketing will put those repackaged products in front of people in compelling ways.

What businesspeople need to keep in mind is that they must market their companies, products, and services if they want to succeed. ‘If you build it, they will come’ does not apply in the business world. How many products do you know by name that are completely unnecessary? Do ‘Hot Pockets‘ come to mind?

Businesspeople must also keep in mind that marketing is not free. Just because the goal is to get people talking — something that anyone can do for free — does not mean that you can forego budgeting for your marketing. You get what you pay for, and if you budget for Wal-Mart-like rates, you will likely be paying for it again in a much shorter time than you might expect. Seasoned creative services professionals can open peoples’ minds in ways that business owners often cannot. There is tremendous value in that.

The Simple Truth
Partake of the marketing tools, and you shall reap the benefits. Forsake the tools, and you shall face the reaper.

Applying the Word of Mouth Model
How about if I market something that mixes up food? Well, that’s called a blender, but what if we called it a “food mixer upper”? Food and upper in the same phrase. There could be a buzz about that. It might get people talking. Oh, but like word of mouth, it would be a repackaging of something that already exists and works quite well.

Kelly Hobkirk is a branding revolutionist and owner of Train of Thought, a Seattle strategic branding, web and advertising firm.

Using the “Bookmark” Tool

Posted in About Biznik by Lara Feltin on August 23rd, 2007

Have you discovered the “bookmark” tool yet? I love this one! Not only can you bookmark upcoming events - which reminds you to keep an eye on it and register for it down the line, but you can also bookmark past events, and take notes on who you met and what you spoke about.

In addition to events, you can also bookmark people. Think of it as an electronic version of jotting a note on the back of someone’s business card. You could jot a note on an email exchanged, a conversation you had an at event, or something you liked in their profile. Before an event, I not only scan the list of who’s RSVP’d, I also scan my list of bookmarked members to see anyone I’ve take a note on is also going to be there too - then I can refresh my memory if there was something I wanted to pick up with them on.

Caution: If you bookmark the same person twice, the new note you write, replaces any previous note taken.

Coming soon - a way to bookmark a Biz Talk topic, so you can follow an ongoing discussion or reference it later.

Server issues over past 24 hours

Posted in Announcements by Dan McComb on August 13th, 2007

If you’ve been getting proxy server errors and noticing that the server is running slow over the past 24 hours, I just want to let you know we’re aware of the problem and working to fix it. Our lead developer is on vacation at the moment but we’re doing the best we can with backup help to keep things running smoothly until he returns on Aug. 24th. So please bear with us - we’ll have things running smoothly again just as soon as we can.

The McLeod Residence needs investors

Posted in Announcements by Dan McComb on August 10th, 2007

One of the best-attended Biznik networking events ever happened in Seattle recently at a truly innovative space in Seattle’s Belltown neightborhood called The McLeod Residence. I’m sure that those of you who attended would agree: Buster and Lele McLeod are creating a space that’s truly “home for extraordinary living through art, technology, and collaboration.” But they’ve run into some financing problems, and are looking for investors to keep them going. Here’s a note from Buster that I’d like to pass along to the community:

This is a difficult email to write, but we owe it to our members to be transparent about our situation. Simply put, McLeod Residence is in big trouble, as in financial trouble. The short story is, we’re running out of money. Our initial personal and angel investments are dwindling, and due to circumstances that have not allowed us to fully implement our business plan, our revenue hasn’t yet caught up to costs. McLeod Residence will have to close its doors unless we are able to raise a hefty amount of cash on the order of $40-$50,000 and quick.

Lele, Maggie, Chris and I began working on McLeod Residence since last October with a vision to bring art, technology, and collaboration together in a new way that Seattle had never seen. The gallery would feature art with a technological bent (a genre that is gaining momentum in Europe but has not found its niche in the US yet) and the lounge would provide a comfortable, friendly space for conversation and interaction. Most importantly, liquor sales would help us support more experimental art and artists, and allow us to take some risks as a gallery. The entire project has been centered on the idea of creating a supportive, engaging community for everyone. On many levels we’ve succeeded: In eight months we’ve welcomed 289 McLeod members, hosted many exciting events, shown innovative and exciting art, and received positive reviews in almost every major Seattle publication.

The space we have chosen to house McLeod Residence is 100 years old, and bringing it up to code so we can get a liquor license requires far more work than we were aware of when we signed the lease. The end is finally in sight: our latest submitted plans to the city are expected to be approved this week. During this process, however, we’ve drained our resources and no longer have the funds to make our drywall, plumbing and electricity code-compliant. Our survival is dependent on being able to perform this work so we can earn revenue by opening to the public as a lounge seven nights a week.

We have exhausted our other options. We do not have enough credit history to secure a loan or a credit line without a co-signer yet. We are now asking for your help in finding us new investors (perhaps in your own selves), because we a) desperately need it and b) know that you members believe in the project, and that asking for help is required before help can be found.

We are searching for people who would like to share in the ownership of our business.
Are you someone who can invest in the future of McLeod Residence on the order of $10-$50,000?
Do you know someone who can invest in the future of McLeod Residence on the order of $10-$50,000?
These two questions are by far the most important questions to answer in the affirmative during the next couple weeks if we want McLeod to survive. To give you some numbers to consider, $10,000 buys you 4% of McLeod, $20,000 buys you 8%, etc. We currently have 711 outstanding shares (71.1% of McLeod currently split between Lele and I) and are looking to sell up to 500 of the remaining shares. We have papers all set up, and can walk any interested parties through the details.

We are confident that once we get around this permitting obstacle, McLeod Residence will be great in its success.

If you cannot help in terms of investment, please let us know if you can help in other ways. We know that you believe in us, and your help would be greatly appreciated. Can you upgrade your membership, bring in new members, purchase the art you’ve been wanting, or host events that help raise money? Please let us know your ideas. If you need any more information or have any questions, please do not hesitate to ask either Lele or myself.

Finally… rest assured!

Whatever happens, McLeod and our vision will continue. We know that each of you has invested a part of yourself in this project (monetarily, creatively, through yearly and lifetime memberships, etc) and whether we stay in this particular space, or become a transient project while we plot to resurrect in a new form, we will not simply close up shop and forget about the momentum that has been created here. All of us are in this for the long term.

Sincerely,
Buster McLeod & Lele McLeod & company

McLeod Residence
206-355-9718 * bustermcleod@gmail.com (Buster)
949-878-0051 * leleblixa@gmail.com (Lele)
206-441-3314 * mcleodresidence@gmail.com (McLeod Residence)

Ignite Seattle is Wednesday night at CHAC - and Biznik is a sponsor

Posted in About Biznik, Announcements by Dan McComb on August 6th, 2007

Ignite Seattle is a tech-community event hosted by Brady Forrest and Bre Pettis (both supporting members of Biznik) that, in their words, “combines on-site geekery, sharing, and innovation (and drinking).” My favorite part of these events is the 5-minute “Ask Later” presentations, hosted by Brady, in which participants get 5 minutes to talk about their pet projects or present on a topic that interests them (and, hopefully, the audience). The fourth Ignite will be held upstairs at the CHAC on Wednesday, August 8th, and I hope you can join us, because Biznik is now an official sponsor of Ignite Seattle.

This time around, quite a few Biznik members will be taking the stage for 5 minute each, to talk about their project, innovation or something just plain interesting. Here’s a list of the Biznik members who will be talking:

Sarah Schacht - Run the Government: A Primer for Online Citizens
Web 2.0 has been around for a few years. US democracy-over 200. On/offline best practices & tools for citizen’s activism.

Brian Dorsey - An embarrassment of riches - the story of Noonhat.
We live in amazing times. Individuals and small groups can build small things with big effects. Even working part time.

Jesse Robbins - WikiProgress & Gross National Happiness (GNH)

Leo Dirac - Venture Capital Term Sheets
An intro to how the money gets split up when a venture capital backed startup gets bought or goes public.

Scott Kennedy - Building Real Community Software
Local activist Scott Kennedy shows off his homemade electronic bulletin board, and discusses how and why he built it. he also asks what he should do with his new software.

The Ask Later talks will begin at 8:30. Videos and photos from the previous Ignite are available. Admission is free. See you there!