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PRESCRIBED 3 February 2023

Imogen Barnes • 3 February 2023

A roundup of this week's news from Brand Pharmacists

Photo of newspapers in rack

Hello and welcome to this first edition of "Prescribed" from Brand Pharmacists.

Come on a tour of the pharmacy, to find the news stories that have caught our attention this week:


Bestsellers:


We weren't sure whether to feature articles about ChatGPT in the first pharmacy newsletter, since we feel it's important to differentiate (sorry Byron, we mean "to be distinctive") from our competitors. But then again there do seem to be a lot of generative AI based articles out there at the moment, and the demand for AI related content seems insatiable, so what the heck! To quote Public Image Limited, "This is What You Want, This is What You Get"....


The core technology behind ChatGPT has been around for a while but, like Apple used to do, Open AI has made it easy to use and accessible, taking the tech - beyond the bedrooms of people with more monitors than personal hygiene products- into the mainstream. Which in turn has widened the ethical debate around how and where AI should, and shouldn't be used. For example:


The judge in Columbia who used ChatGPT in deciding on a court ruling and, what seems to be a recurring theme with AI tools, accusations that ChatGPT displays political bias . Meanwhile Buzzfeed announced that they would use ChatGPT to write articles, the announcement may have contributed to a 92% rise in their share price and at Wharton Business School, ChatGPT managed to get through an exam with a passable grade .


Whatever your views, the growth of ChatGPT has been phenomenal, hitting 100 million users faster than TikTok, though of course, once tech becomes popular, monetisation tends to get in the way of any utopian visions and sure enough Open AI has just launched a pilot subscription plan, called ChatGPT Plus for $20 a month. It also remains to be seen whether it survives the recent investment of Microsoft (remember Skype?) who have already integrated OpenAI’s GPT-3.5 AI language model into a premium version of their Teams software.


Then there's the whole issue of competitors. Google have had at least two similar products in their skunkworks for a while, now reports say the company is now in “code red” mode, to accelerate the launch of a consumer facing competitor. CEO Sundar Pichai has even been said to have called in Google’s founders, Sergey Brin and Larry Page (the guys who once said Google wouldn't be evil) to help. In fact CNBC reports that the company is doubling down on a version called "Apprentice Bard" (catchy) that could lead to the public announcement of a Google rival to ChatGPT as soon as February 8th- that's next week!


Bargain Bin:

Not so long ago, it wasn't ChatGPT, but AI powered voice assistants and smart products that were touted as the "Google Search Engine killer". (Why are 'Tech Bros' so obsessed with death?) Now, they're relegated to the bargain bin.


In another humorous take, Marketing Week has published The Marketoonist's observations on the evolution of Smart Products.


Brand Healthcare Advice:


At Brand Pharmacists we're all about helping good brands get better. So we can heartily recommend taking 5 minutes to listen to 10 pieces of practical advice that can help smaller brands to grow, with marketing guru Mark Ritson, and the lovely Joe from The Marketing Meetup.

The sweary purveyor of the "Mini MBA in Marketing & Brand Management" has also written a pretty good piece on the latest findings- from ad tracking, testing and effectiveness company System1- which, (TL:DR) reinforces the long held view, of ad effectiveness experts Les Binet and Peter Field, that long term (brand) advertising always has a short term effect, whilst short term tactical ads have a role to play, but don't necessarily have any long term effects.


By the way, if you are experiencing any advertising effectiveness ailments, we always recommend taking a look at the excellent research on the subject by Jenni Romaniuk, or at least take a look at her 3 reasons why your ads might not be working.


Company Health Results:

Big tech companies are complaining they've got the symptoms of slightly less wealthy syndrome. It's not necessarily terminal but can result in shareholder angst, loss of hardworking employees and, if not treated, can lead to serious complications and in rare cases death. But let's not get all nostalgic over Alta Vista.


An apple a day is supposed to keep the doctor away, but sadly for the fruit's technology namesake, people aren't buying as many Apples. The company has just announced its biggest quarterly revenue drop in nearly seven years, posting a (measly) $117.2bn in revenue, down 5.49% from last year, its first quarterly revenue drop in around three and a half years.

Amazon reported worse than anticipated results on Thursday, with post-pandemic e-commerce sales falling (I mean, how didn't they see that one coming?), meanwhile at Google's parent company Alphabet, a fall in revenue from the Google advertising business hit the search giant’s revenue, sales reached a paltry $63.1bn for the quarter, $0.1bn beneath expectations.


Meta (the company formerly known as Facebook) saw its shares rise after beating earnings expectations, though its results announcement revealed a mixed picture, but smaller rival Snap Inc saw its stock plummet after missing sales forecasts.


Whilst the wealthy big shareholders of big tech companies might be a few millions less well off this quarter, sadly it's many of their employees that have paid the real price in mass redundancies- particularly in the US with its somewhat less employee friendly labour laws. Despite still being wealthier than many small countries, it seems that some big tech companies just don't seem to be able to treat the people who helped them grow with much empathy. Which prompted Wired to proclaim: "Big Tech is really bad at firing people."


Incidentally, some of the Brand Pharmacists team have experienced this personally before, so anyone who has been laid off recently is welcome to get in touch, even if it's just for a chat, we're happy to offer support if we can.


In other news, UK headquartered Shell announced its highest profits in 115 years, double those of last year, mainly on the back of rising prices for fossil fuels such as oil and gas. The results for the global climate crisis look less rosy. We'll just leave that one there.


Mental Health Advice:

On a more positive note, men are getting more than just a trim at barber shops in Islington, thanks to a pioneering mental health initiative . This kind of community action can really make a difference. The mental health crisis in our society is real and growing, with new research suggesting it is also affecting the cardiovascular health of young adults. So we'd also like to give a big shout out to the independent charity, Future Care Capital, who have just launched a new public guide to digital mental health tools, helping members of the public understand what support is available for their specific needs, on their phone or via the web.


Community Health:

Of course, we mustn't just rely on technology when it comes to tackling mental health, building positive human connections within communities is vitally important.


Author of Fortitude, Bruce Daisley, has an excellent newsletter called "Make Work Better." He reminded us of  the Harvard Study of Adult Development, a research investigation into human wellbeing that has been running since 1938. The survey has delivered vast insights into the secrets of living a long, healthy life. It does so by taking a cohort of teenagers and following them until they die.


In a recent interview with The Atlantic, Robert Waldinger, who runs the study today recapped its main conclusion, that the engine of health and longevity is friendship: "The healthiest are the people who have more social connections and warmer social connections. Connections of all kinds—not just intimate partners, but friends and work colleagues and casual relationships." Or "Happiness is love. Full stop." in the words of the study's founder.


This sums us for us perfectly why, at Brand Pharmacists, whilst we want to help businesses making positive steps for the future of our planet, we also believe it's important to help organisations doing great things for the communities of people upon it.


Planetary Necessities:

Which brings us nicely onto things we've seen this week from organisations focussed on commercially viable sustainable solutions. Car manufacturing start-up Namx, has teamed up with the famous Italian automotive designers Pininfarina, to create the HUX, a hydrogen powered car, with a range of nearly 500 miles, which uses easily accessible swappable hydrogen bottles.


Meanwhile The Evening Standard has published an article featuring sustainable furniture brands to buy in 2023.


Customer Service:

Another area we focus on at Brand Pharmacists is customer experience. As the effort required to keep shareholders happy intensifies, in the face of economic headwinds, it seems that more companies than ever view customer service as a cost to be contained rather than an integral part of their brand promise to fulfil.


A “customer satisfaction index”, just published by the UK Institute of Customer Service (ICS), found satisfaction was falling year-on-year, with nearly 17% of consumers reporting issues with a trader. The Observer asks "Poor Customer Service Costs UK Firms Billions, So Why Can't They Get it Right?"

Which reminds us that TechCrunch proclaimed 2022 as "The Year Customer Experience Died."


Parenting Advice:

You might want to think twice about letting the kids play with your phone: Six year old Mason Stonehouse was distracting his dad from watching one of his favourite TV shows. So dad gave him his phone, on which Mason found the GrubHub app. The little boy was feeling hungry, so ordered $1000 of food for delivery on his dad's account. 🤭 Perhaps this is one reason why the UK boss of Samsung Mobile wouldn't recommend giving under 11s a smartphone!


Have a great weekend!


Image of supermarket trolley and aisles
by Andrew Warner 24 January 2023
The history of brands offers some fascinating stories for marketing geeks. But the networked age of the Internet and growing consumer concerns about societal and environmental issues have made the latest chapters more dramatic than anticipated. In this article we begin to explore why, for a successful outcome to their story, brands may be advised to learn from their past to create a better sequel for all of us.
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by Andrew Warner 3 January 2023
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View from office window
by Andrew Warner 1 December 2022
"Marketing is too important to be left to the marketing department." – David Packard, co-founder, Hewlett-Packard. I've seen the quote above attributed to a few people but Dave Packard seems to be most commonly associated with it. To be honest it's the sentiment which matters the most. A long time ago, a former boss patiently explained to me why, as marketers, everyone wanted to do our jobs and would happily take them from us, if we didn't ensure that marketing stayed within the marketing department. Of course, it was a myopic point of view and a counterproductive one too. In the subsequent years I soon learned that the greatest influence, any marketing leader can have, is the ability to involve, engage and secure commitment from teams across the organisation. But for a marketing leader to successfully orchestrate constructive collaboration, like the conductor of a symphony, they are likely to need support from their corporate patron- the CEO. In some companies, Marketing extending its influence beyond its job-titles can cause some resentment. Particularly if the task is approached with colonising zeal by an ego-driven marketing head. This is why I believe that it's important for Chief Executives to take a viewpoint that they are also "Chief Brand Officers": Encouraging their teams to engage around a common set of principles, which define the perception of the company to its customers and prospects and align with the brand's aspirations. This is essential to values being actively lived within an organisation, ensuring don't merely exist as noble words on a forgotten presentation slide. Thinking like a Chief Brand Officer might sound trite, for a serious minded CEO, but not taking brand responsibilities seriously risks millions of pounds worth of marketing investment being devalued overnight. In the digital age reputational damage from poor customer service or perceived corporate hypocrisy can spread fast, far and wide. For example, if your CMO positions your company as the "friendly bank", but the Head of Operations hires a demotivated, poorly trained, underpaid and outsourced army of customer service call-handlers, hidden behind an impenetrable digital call answering system...well it doesn't take a genius to see the issues that could arise. So being a CEO with a Chief Brand Officer mindset doesn't just mean picking the colours for a new logo. It means ensuring values, people and processes all align and enlisting your head of marketing to help make it happen. Who You Hire Matters CEOs should think carefully about the nature of the people that they hire into their senior marketing roles. In theory, marketing leaders are often best placed to choreograph senior leaders in a coordinated dance partnership between customer centricity and profitability. However, this requires a Chief Marketing Officer who doesn't just have fabulous marketing skills but the requisite humility, and deftness of touch, to influence a diverse set of functional leaders across the organisation. I've often summed this up as the "dual-faced' marketing leader: someone who applies the same rigour to their internal segmentation, targeting and positioning as they do for external communication. This isn't just idealistic puff either, a few years ago I participated in the Marketing 2020 initiative (a name which sounded forward thinking at the time but has dated quickly). This involved extensive international research with the objective of identifying the common factors characterising high performing marketing organisations. The key findings were published by the Harvard Business Review under the cover story "The Ultimate Marketing Machine" . The primary finding was that high-performing marketing leaders don’t just align their department’s activities with company strategy, they actively engage in creating it and co-ordinate its deployment across the company. Key Alliances Another thing for CEOs to consider, when choosing a corporate choreographer as Chief Marketing Officer, is how the key alliances should play out between marketing and other functions. Marketing & Finance are often thought of as diametrically opposed disciplines. The stereotype is that Finance tries to keep costs under control, whilst marketing wants to speculate in a vague hope it will accumulate...or at least accumulate some awards, articles in the trade press and nice lunches (paid for by the agency). Of course, the modern reality, at least in well run businesses, is quite different. Many finance teams anchor their goals to the principles of "financial planning and analysis" (FP&A), a natural conduit to the market and customer orientations of the best marketers. The key to making this relationship work is having leaders in the respective roles who are able to build mutual respect and take the time to understand each others language and motivations- motivations which should, of course, be shared; a desire to effectively manage resources to ensure the survival of the business today and sustainable growth into the future. Marketing & HR tends to be an easier relationship but again, it takes work to create a perfect marriage. At Brand Pharmacists we believe the strongest brands are always built from the inside out. If your internal reality clashes with your external positioning the dissonance can devastate companies. Our strongly held belief in building brand cultures is why we have experienced senior HR and talent specialists on the team. They aren't there just to manage our payroll, but to support our clients deliver meaningful change, rather than superficial value statements to paint on the office walls. When people, positioning, purpose and goals are aligned, they can light a brand spirit, a spirit which shines brightly from the heart of the business, beaming like a lighthouse, through the fog of the marketplace, a shining light for joyful new customers to bathe in as their cares evaporate....ok, I got a bit carried away there, but you get my point. Marketing and Sales are often confused as one and the same, which isn't the end of the world in since they should both be focused on sustainable, profitable business growth. In reality this relationship can get feisty, particularly if sales targets result in a prioritisation of short term sales revenue over longer term, sustainable profitability. Or indeed if marketers forget their primary job is to increase sales, rather than to associate themselves with whichever noble purpose is fashionable, at any given point in time. Recruiting a commercially savvy marketing leader and a progressively minded sales head can go some way to making this partnership be a little more harmonious and a great deal more productive. A little interdepartmental friction keeps both sides on their toes- all good relationships involve a few arguments- but ultimately companies need commercial leadership partners whose relationship will stand the test of time- or at least until the end of the sales period. And last, but by no means least, Marketing & Customer Service. It often comes as a surprise to outsiders that many customer service leaders are more focussed on logistics, process and cost-containment than they are on delivering exceptional service. At least one large business I know of, that uses customer service in its consumer communications, refers internally to the team responsible for delivering that very service as "Customer Operations". Customer Service teams will typically have some form of NPS (net promoter score) or CSAT (customer service satisfaction) targets to aim for, but generally 'customer operations" is in fact a more accurate description of what they do. Yet having a customer-centric brand proposition counts for little, if it’s not delivered by the people most likely to engage with customers at their time of need. That's particularly true in businesses with high-value products that are more likely to require support- such as consumer electronics, automotive and travel. As an example, a mobile phone manufacturer I studied a few years ago could directly trace its sales demise to a product which sold an incredible number of units, an exceptionally high proportion of which went wrong and for which customer support was almost non-existent. So creating an environment, where marketing and customer service can deliver customers a seamless impression of the company, can be absolutely vital to realise the long term sales potential delivery of a brand promise realised through customer experience and subsequent recommendation. In Summary My view, of course is that Dave was right. Marketing is far too important to be left to the marketing department. However, to realise the growth potential of successful, effective marketing, companies need to find a way to align their functions around common, customer-centric yet commercially viable values. This starts at the top, with the CEO actings as a Chief Brand Officer, because building successful brands requires more than just fancy logos. Companies which succeed hire diverse leaders, with the ability to complement each others' strengths and align for shared success. Leaders with a strong marketing background are well placed to be the maestros that CEOs appoint to conduct the corporate orchestra: delivering harmonic tunes to delight target audiences and bring them back for more. Achieving a common understanding, within an organisation, of its guiding values and principles is more important than the background of the people you choose to make it happen. The crucial thing is that it happens and the people you select have the collective mindset to ensure that it does. Of course, all this is easier to say than do, but the Brand Pharmacists are here to help good businesses rise to the opportunity that marketing beyond the marketing team presents.
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