The Wall St. Journal reports the auto maker made the decision "after the company's marketing executives determined their paid ads had little impact on consumers, people familiar with the matter said, a move that comes as more companies question the effectiveness of advertising on the social networking site.

The largest U.S. auto maker will continue to expand its use of marketing through Facebook's pages, in which markers can display content at no cost, these people said."

MY TAKE:

This cannot be good news for Facebook. My first venture into paid FB advertising has been underwhelming, so I feel better that I'm not alone in that view, for whatever that's worth!

Former Penn State Assistant football coach Jerry Sandusky under arrest for sexually abusing at least eight boys.

Watching the Penn State meltdown this week is a reminder that most organizations don't have a crisis management strategy-- until they have a crisis, and then it's too late to make it up on the fly. The walls come crashing down so fast and with such force the leaders of the organization wind up like the survivors of a Tsunami: stunned, dazed and confused, with no idea what just happened.

Speaking of tsunamis, the Japanese government and officials from the damaged Fukushima nuclear power plant were caught in a classic crisis management nightmare following the radiation leak. Japanese officials were publicly shamed for their lack of candor in this year's post-tsumani nuclear accidentThey hid information from the public, continually downplayed the severity of the leak and eventually, under unrelenting worldwide pressure, admitted their errors in judgment resulting in wholesale changes in the way Japan regulates and runs its nuclear power industry.

What did those officials do wrong? Many of the same things the leaders of Penn State have been doing: circling the wagons in self-defense while unkowningly forming a circular firing squad.

Take your pick of recent crises: from the BP oil spill to Tiger Wooods to Herman Cain's sexual harrassment allegations, the stories almost always play out the same way.

1. Underestimating the impact of the original incident. When a potential crisis is brought to the organization's leadership, their first reaction is often to downplay the severity of the incident and discount its potential consequences. A good crisis management plan always focuses on a worst case scenario. What happens if the media gets a hold of the story? What happens if the situation becomes a legal or criminal matter? Most organizations would rather not think of such negative things, but the purpose of crisis management is to anticipate and plan for such incidents and be ready to respond. Top organizations regularly rehearse their responses to various crisis scenarios. While most scenarios are quite unlikely to occur, no situation should ever be considered "impossible."
2. Hoping no one will find out what really happened. A negative or dangerous situation rarely stays secret for long. People inside the organization become effective whistleblowers, leaking information to the media or now even going direct to social media to get the story out. Keeping things quiet requires a conspiracy to control the situation, the first step down the slippery slope of crisis disaster. As Richard Nixon found out, the coverup often becomes bigger than the original offense.
3. Protecting friends and insiders.  As the details of a crisis situation unfold, often a long-time, trusted, well-liked figure becomes a central player in the drama. The organization's leaders have a difficult time reconciling the alleged act with the person they believe they know and almost involuntarily defend, explaining or rationalizing their behavior. Think about how long it took investors and regulators to finally be convinced Bernie Madoff had ripped them off? They ignored the evidence that was right in front of their eyes, rufusing to believe what actually happened. Of course, no one defended Madoff once he was discovered, but in the Penn State case it's clear many people within the organization continued to protect Jerry Sandusky despite mounting evidence of his sexual abuse of young boys, and now most of all them have, or will pay for that defense with their own jobs.
4. Not coming clean in public. Once the story breaks and the organization's leaders realize the media or government know the essential facts, some leaders falsely believe they can control the situation by either avoiding full disclosure or, worse, continuing the coverup publically. Some try to turn the tables and accuse the media of causing the problem, a tactic that usually only results in encouraging reporters and editors to become unrelenting hunters of the full story. When Penn State's PresidentTwo fired Penn State icons announced last week his "full support" of the employees charged with perjury, he practically dared the media to uncover the story--and they did.
5. Lawyering up. Unless you hire Gloria Allred, the first thing your attorney is going tell you is not to speak to the media about anything related to the incident. Their job is to keep their clients out of legal trouble, be it prison or a civil suit. But a great lawyer is often a lousy media consultant. Organizations with public constituencies, like a state university, can't remain silent for long. They must account for their actions publicly and the sooner the better. Penn State's Board of Trustees realized the university will be in for lots of legal trouble no matter what, but without a public acknowlegement the impropriety, the organization was paralyzed. In a crisis, there's no such thing as "no comment."

The Penn State crisis is far from over. The ramifications will be extensive and permanent. We all have the benefit of seeing the story with hindsight. Had the university's leaders practiced a bit of foresight, they might have avoided at least a portion of the crisis. A cautionary tale for every organization.

"Clearly, localized marketing is becoming a critical area of strategic focus and competitive advantage for brands. "Localize to Optimize Sales Channel Effectiveness" reveals that the majority of national marketers surveyed intend to look for ways to better modify, adapt, and localize their marketing content, messaging, and prospect engagement practices, as very few feel their campaigns are highly evolved on a local level."

You can read the entire story and see the survey results by clicking here.

COMMENT: So, just exactly where DID these company execs think their customers come from anyway? EVERYBODY lives in a LOCAL market! This is simply a recognition of the obvious; national marketing campaigns are becoming increasingly less effective as markets become more segmented. Better targeting, more sophistacated demographic analysis and increased competition all lead (or force) marketers to dig deeper to find new customers--and that means going local.

It is interesting to note that more than a third of those surveyed believe the best local marketing investment is to have personnel in the field. That sounds like a euphemism for--a SALES FORCE! Well, in Peter Drucker's book, selling is not the same as marketing. Effective marketing is supposed to make your sales force obsolete, because it should create enough demand to have customers call on you, not the other way around.

Real local marketing--the kind that involves media utilization, promotional activities, community involvement, etc. requires more than just "field personnel." National companies avoid true local marketing effforts because they're hard work. Media buyers don't know the local market as well as they should. Company representatives often lack crticial marketing and promotional skills to properly support local campaigns and many times there is a savvy locally-based competitor more than happy to not only challenge the big guy, but beat his brains in by leveraging his local market knowledge, contacts, reputation and operating strength to create campaigns and promotions that effectively reposition the national company as an out-of-touch interloper. Like shooting fish in a barrell.

National companies have to do more than simply covet local. They have to BE local. Representatives must have real authority and they must become involved in the community beyond joining the Chamber of Commerce. Wal-Mart makes a big deal about how they "help" the communities they serve, but, in reality, their donations to local charities are meager at best, especially in comparison to the many local business owners who dig deep into their own pockets every year to provide real support to many worthy local projects and causes.

Yes, indeed, "local" is still the hot new buzz word. Too bad most national marketing execs still don't get what it really means.

Eco-Friendly Auto Care: Florida's first "green" repair shop

Through his world famous Eureka Ranch, Hall has consulted nearly every major American company on how to successfullh bring new products to market, says, to succeed, a business needs to provide customers with three things:

• A distinctive difference

• An overt benefit

• A real reason to believe

Sully Dawson provides all three with his Eco-Friendly Auto Care Center, Florida's first "Green" auto repair shop.

Watch Sully talk about his business philosophy and see the Eco-Friendly Auto Care Center in action.

A distinctive difference: Sully's repair shop is the first environmentally conscious auto care center, not just in his neighborhood, but in the entire state of Florida! With more than 50 competitors within two miles of his East Ft. Lauderdale location, competition is fierce, broken down into two categories: local, owner-operated shops and major national chains. Naturally, the big guys have all the advertising and marketing resources, forcing Sully to consider the prospect of being lumped in with all the local owner-operator shops that look the same, charge the same and appear the same to most prospective customers.

By positioning with "green," Sully was not only able to break away from all those competitors, his message instantly became noticed by his target market. No, not environmentalists-- women! In his research, Sully found out 61 percent of all auto repair customers are female. Women were immediately attracted to Eco-Friendly, not just out of concern for the environment, but because Green is a reflection of a higher set of service standards: caring, honesty, responsibility and fairness, not the attributes usually associated with your average auto mechanic (DISCLAIMER: this is not to say auto mechanics AREN'T caring, honest, responsible and fair. Most are, but these are not the the first things customers think of when it comes to the CATEGORY). 

An overt benefit. Take your pick. Some customers feel good about doing something responsible for the environment. Others believe they're taking better care of their vehicle. Still others get "peace-of-mind," because Sully's enthusiasm and dedication to the cause helps put them at ease. At Eco-Friendly, you aren't just getting your oil changed, you're making a difference in the world. When was the last time a national chain of ANY kind made you feel that way (Starbucks comes to mind. Anyone else?).

A real reason to believe. Car owners who prefer the corner mechanic to the big chains or dealers are usually quite loyal to "their" mechanic. They really believe in their abilities as technicians. The dirtier their hands, the more likely they know how to diagnose and fix whatever's wrong with your car. Well, Sully isn't an auto mechanic, so his customers must latch onto something else--something more.

From the moment you meet him, two things are apparent: Sully is passionately committed to the practice of green auto care, not because he's a tree-huging enviornmentalist (I don't know if he is or isn't, by the way), but because he believes totally that it makes good business sense, for both him and his customers. Secondly, Sully is always on his customers' side, focusing on seeing and solving problems from their point of view. As a veteran, he exudes enthusiasm, dedication to the cause and an unwavering commitment to getting the job done right. Sure he's in business to make money, but he knows if his customers are satisfied and happy, they'll not only come back; they'll tell their friends and neighbors about their experience. Eco-Friendly customers do have a real reason to believe: it's Sully himself.

Most owner-operated businesses fail to distinguish themselves in the minds of potential customers because they're afraid to put themselves in a niche, fearing they'll cut themselves off from potential business. In reality, the exact opposite happens. Sully Dawson differentiated himself by focusing on one aspect of the auto repair process. He took advantage of the fact no one else in the marketplace was doing it and he promotes it relentlessly. The result: more than 2,500 customers in his first 18 months in business and plans to franchise the concept in other cities. A few neighborhood mechanics should be jumping at that chance, if offered. With Sully Dawson's guidance, they're sure to succeed.

The Towering Inferno: one of the great 70's disaster movies

Imagine if the recent social media debacle involving Kansas State University’s promotion of an environmentally friendly mascot named EcoKat were made into a disaster movie. In the first scene, the University’s in-house marketing team brainstorms an idea they think is great, but is actually awful. The audience, recognizing the seeds of a good disaster, knows exactly where the plot is headed while the marketing team innocently consigns itself to certain catastrophe.  

What did they do wrong? How did they create a social media disaster weeks before the whole thing actually erupted. And why were they powerless to do anything to prevent it? The K-State debacle was based on several bad decisions, from assuming social media reacts in the same manner as traditional media, to failing to plan for negative reactions.  From that mindset, K-State made five errors sealing its fate.

Failing to challenge a bad idea. Charged with coming up with a campaign to improve the university’s reputation and performance on environmental sustainability, the K-State marketing team focused on reaching students by creating a crusading eco-mascot, a sort-of-dumb, but benign idea better suited for reaching 8-year-olds than college kids.

But, when someone in the room suggested pairing EcoKat with Willie the Wildcat, K-State’s beloved athletic mascot, to promote the school’s participation in a statewide environmental competition pitting K-State against its archrival Kansas, the promotion morphed from a small, campus-only campaign into a major Kansas news event, peaking the curiosity of Wildcat football fans, K-State alumni (including an editor at the Kansas City Star, who received an innocently-sent news release promoting EcoKat) and, potentially, every resident of the state.

No one in that marketing meeting challenged this very bad idea. Environmental activism and athletic fanaticism do not mix. Football fans are, generally, less interested in conserving energy than they are in consuming alcohol, painting their bodies in school colors and rooting loudly for their team to beat whomever they’re playing. This is just another case of a lack of understanding the target market. The University was more focused on it’s own agenda than on the mindset of the people hearing the message, sowing the seeds for the disaster-to-come.

Launching a campaign without having a plan for social media blowback. The K-State marketing team rolled into action, promoting the debut of EcoKat with gusto, incorporating social media as part of the message distribution system. The University’s President and First Lady were among the K-Staters excitedly Tweeting about EcoKat’s upcoming debut. Teaser posts were made on Facebook. News releases were sent to media statewide. Public service television commercials were produced featuring both mascots and scheduled to run on the local television stations in Manhattan.

All of these steps were part of a traditional new product launch: build awareness, create buzz, stimulate interest and motivate action. In the old days of one-way message distribution, marketers did not have to account for negative reactions to a campaign because consumers had no way to voice their opinions. But today, everyone has the ability to say what’s on their minds-- to the entire world! As K-State’s traditional P.R. campaign took hold, negative blowback was beginning to build. And, just like the tiny electrical fire in the Towering Inferno, it wouldn’t be long before the entire building was engulfed in flames.

Thinking social media can be controlled. It took about two weeks, but once the alum/editor in Kansas City reread the University’s news release and Tweeted his thoughts about EcoKat, flames erupted almost imediately. Within a few hours Twitter reported EcoKat as a trending topic in Kansas City and other communities. Alumni, boosters and citizens alike weighed in. A website named EcoKat the “crappiest mascot ever.” The story even made it to the front of Huffington Post.

As the K-State marketing team began to realize what was happening, thoughts turned to ways of “getting control” of the story, mounting a counter-offensive or just trying to turn off the flow of negative comments. But, as one social media-savvy department member told her boss, “You can’t stop people from commenting. It’s too late for that.”

In The Towering Inferno, Steve McQueen and Paul Newman eventually put out the fire by blowing up several huge water tanks conveniently located on the roof of the skyscraper. The torrent of water was enough to drown the fire. Reacting to a torrent of negative comments is like fighting a huge fire with a single hose. Since the marketing equivalent of giant water tank usually isn’t handy, the easiest way to put out the fire is to attack it when it’s small. That means responding quickly, not by being defensive or attacking your critics, but instead by responding to the them, acknowledging the validity of their criticism.

Hoping for the whole thing to blow over. As the corrupt developer in the Towering Inferno, William Holden ignored Paul Newman’s warning about the severity of the fire, hoping it would be extinguished before anyone found out. Of course, the audience knew the fire was already out of control and the only sensible course of action was to evacuate the building.

While K-State’s social media fire raged, the University’s leadership stood at the door telling people to remain calm. The V.P. for communications said “a lot of people have a misconception of EcoKat. She is not an athletic mascot” (gee, wonder where they GOT that from? Oh yeah, from the SCHOOL ITSELF!). The president said, “It’s unfortunate that it was a creative idea that, by going viral, we’ve lost some ability to kind of manage what it was supposed to represent. (translation: I have no idea what just happened. Did anyone get the number of the truck that ran me over?”).

Defending a bad idea, especially after the marketplace has voiced its opinion, rarely changes people’s minds. The faster an organization admits its mistake, the faster the controversy will fade watch the most successful public mea culpa of all time: Jackie Gleason’s apology for putting an awful game show on the air).

Believing all publicity is good, even when it’s bad. This old chestnut has been around forever, but unlike the good old days, when today’s newspaper wraps tomorrow’s dead fish, the stink of negative online publicity always remains. All the stories are there for people to read. That negativity can be resurrected and pollute future marketing initiatives.

K-State was forced to scrap the entire EcoKat campaign. Weeks of work and media resources were flushed. The stain from the backlash reached across the entire university, all the way up to the president himself. While some people in the schools’ marketing department believed this was the most publicity K-State had ever received (the state school labors to get attention compared to its larger, more popular rival, Kansas University), the end result is still negative.

So, to avoid starring in your own social media disaster movie you must change your mindset. Online media is not like traditional media. Be skeptical of the validity of your marketing ideas. Whenever possible, test them first with representatives of the target market. Have a plan for how to deal with negative blowback. Don’t try and control the conversation; participate and respond instead. Don’t assume the matter will just blow over. The marketplace will keep up the pressure until you respond adequately. And remember: whatever happens online, stays online—forever. It may not be fatal, but it will always lurk in the background, so be prepared to deal with occasional flare-ups.

One final tip: before launching your next (or first) social media campaign, gather your marketing team together and show them your favorite disaster movie. It may give them the insight to avoid causing their own Towering Inferno.

It's not an easy time to be Walmart. First, economic worries are hanging heaviest on lower-income shoppers, its core audience. Next, there's a growing sense among those shoppers that Walmart's "Everyday Low Price" positioning is eroding, and that there are better deals in dollar stores, supermarkets, and even at Target. Click here to read the full story from MediaPost.

COMMENT: The research we've done over many years reveals that shoppers do not perceive Walmart as having the LOWEST prices on every individual item (which they don't. Deep discounters like Aldi and Sav-a-Lot often beat Walmart on head-to-head item prices). Instead, consumers see Walmart as delivering an OVERALL lower shopping cost. This gives competitors room to make tactical promotional moves on specific items undermining Walmart's price position. This is an important consideration for your own business if you choose to position on price. Any competitor can buy market share by lowering prices, even at a temporary loss. Defending the "lowest price" position takes courage, agressiveness and a sharp eye for potential competitive challenges. Don't adopt this strategy if you're not committed to it fully.

Consumers who seek the lowest price are a determined bunch. Just like coupon clippers, who are loyal to the deal, these shoppers are loyal to the price, not the seller. They go wherever they have to to find the best price. Walmart's counter strategy has always been "we match any advertised price" and that does lock in certain shoppers. But, for many price-a-holics, the hunt and the conquest are just as important. Successfully finding the lowest price is a validation of their shopping expertise, an important psychic reward for their hard work.

Just like consumers, business journalists subscribe to popular social media tools

Other corporate website features a high percentage of journalists find useful include search capabilities (94%), text documents (87%) and PDFs (84%). Conversely, fewer than half find features such as Twitter (47%) and audio files (45%) useful.