Marketing Principles Needed in Wall Street Protests to Create Culture of Economic Patriotism
From New York to Seattle, people are wondering about the impact of the Wall Street protests. No one is asking, but if the protesters want to know how to win, they need to conduct a cohesive major-marketing campaign.
So, if you can humor me, let’s consider this a review of marketing best practices. Along the way, perhaps we’ll see an improvement in corporate ethics. My motivation, you ask? The nation needs a new culture – call it economic patriotism. I’ve been convinced that it’s partly an issue of How CEOs, Taxes and Policymakers Fail the U.S.
The corporate and Wall Street entitlement attitudes – certainly not everyone but a significant number – helped cause and exacerbate the Great Recession. The U.S. will continue to precariously suffer in its fiscal doldrums until economic patriotism becomes the norm, and productive public policies are implemented to improve the pecuniary environment for the creation of jobs.
It wasn’t just the questionable mortgage activities, but many banks and credit card companies behaved in a predatory fashion. Because they’re domiciled in about six states that allow high interest rates on credit cards and related lines of credit, banks were able to charge exorbitant interest rates on small businesses and consumers – as much as 38 percent for dubious reasons. And they abruptly cut off lines of credit for countless companies and micro-businesses. Consequently, many have poor credit ratings, and can’t qualify for Small Business Administration loans.
Among the hard-hit domestic automobile manufacturers, it’s worth noting Ford has been outstanding in its recovery approach. Consequently, Ford didn’t ask the taxpayers for help.
But the banks and the other auto companies had the temerity to lobby for bailouts, as countless Americans lost their jobs and homes. Foreclosures are still rampant, and the financial institutions are hoarding their cash following the bailouts.
GOP and Democrats
In part, the blame for the Great Recession also falls on Republicans in Congress. Don’t get me wrong. I haven’t changed my stripes. I’m still a strong business and free-enterprise advocate. But the Republicans looked the other way during all the predatory behavior, and continue to do so.
Democrats failed to speak out as it was occurring, and they failed to include small-business protections in passing the Dodd-Frank Wall Street Reform and Consumer Protection.
Further, the Obama Administration has been cozy with Wall Street, ostensibly, to attract political donations. I took originally took note of the administration’s behavior in writing Sen. Cantwell Is Right to Question Risky Derivative Dangers, Geithner. So it’s an irony to me that Democrats are disingenuously trying to capitalize on the Wall Street protests.
Let’s not forget another entity. I wonder: Does the Federal Reserve Understand Small Business? No.
Fortunately, let’s consider that the Legal War on Wall Street Chicanery Isn’t Finished.
But how can the protests help change the culture of corporate greed for economic patriotism?
Protestors need more articulation – not just inane ramblings about corporate greed and spreading the wealth – and organization. Merely sticking it to the wealthy with taxes, and closely allying with opportunists, such as the Rev. Al Sharpton, won’t help the cause and enable good messaging.
The movement needs to grow roots and needs a credible leadership to espouse American values, just as the Vietnam War protests gained traction. Instead of just a bunch of hippies, pacifists and students, it became a movement for moderate American patriots as they began to question the justification for the war.
The Wall Street protests need to focus on corporate ethics.
Again, a classic marketing line of attack is needed. A rag-tag approach doesn’t lead to successful marketing results.
Moreover, it isn’t likely to happen, but leadership is to needed to avoid the typical 14 reasons for the failure of campaigns.
In marketing failures, there are 14 salient causes:
- Inadequate analysis of strengths, weaknesses, opportunities and threats
- Drawing incorrect conclusions from the analysis (leading to ineffective overall strategic planning)
- Unrealistic budgeting
- Ineffective testing of ideas and messaging
- Arrogance – over confidence
- Poor coordination with centers of influence
- Not developing effective teamwork and communication among stakeholders
- Targeting the wrong market
- Lack of job descriptions – who will do what and when?
- Wrong people in many key positions
- Poor positioning in attributes and benefit statements
- Ineffective allocation of promotional funds – wrong mediums preventing top-of-mind awareness in customers, or voters
- Unproductive evaluation of the campaign and return on investment
- Unsuccessful responses to negative surprises and failure to capitalize on opportunities
Thanks for humoring me. Let’s hope for meaningful reform.
From the Coach’s Corner: here are more thoughts about Wall Street greed.
“Three great forces rule the world: stupidity, fear and greed.”
-Albert Einstein
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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complimentary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
Options for Hotel Owners – Seattle Ranks Among Worst 5 Cities in Travel Taxes
July 23, 2011 – updated 12:14 a.m.
Yes, hotel owners are panic-stricken – hospitality profits are down in Seattle and everywhere else.
But for the second consecutive year, Seattle ranks among the most-expensive for travelers, and hotel owners want to hike room taxes for a tactic that will not work. Not to criticize, they have better options, which I’ll explain later.
Seattle imposes the third-highest car rental, hotel and meal taxes among the 50 largest markets in the nation, according to a 2011 business study by the Global Business Travel Association Foundation.
Taxes include: A general sales tax, and taxes on car rentals, hotels and meals.
Ironically, the Seattle Hotel Association wants to tack on another $2 tax for each room per night for travelers. That’s in addition to the 15.6 percent in sales and room taxes already levied on hotel guests.
Unfortunately, they think the excess funds should be used in an advertising campaign to boost tourism. The Seattle City Council will vote on the issue.
The five highest-taxing cities: 1. Chicago. 2. New York City. 3. Seattle. 4. Boston. 5. Kansas City.
Ironically, Seattle ranks among the three most-expensive but is only the 15th-largest city in America.
The foundation’s director of research, Joe Bates, says there’s a huge difference among the 50 cities – as much as 80 percent. It’s not surprising that such taxes affect the travel plans of business people.
“If you are a travel manager planning a meeting, this is important information to take into consideration,” says Mr. Bates. “And if you are a retail business attempting to lure travelers, this tax rate differential is a competitive advantage or disadvantage.”
Better Options for Seattle Hotel Owners
In my experience as a confidential business-performance consultant, who has also produced hundreds of radio-television commercials, my sense is that an increase in Seattle hotel taxes to fund an advertising campaign is ill-advised. There are good reasons why stay-cations have been prevalent.
Sometimes you can’t buy the market, especially in the tourism sector for a rainy region in a downturn. In addition, Seattle hotel owners have already committed missteps — three of the 14 reasons for the failure of a marketing campaign (How to Win Your Major Marketing Campaign).
Don’t get me wrong, I love Seattle, but hotel owners would be better served using other less-costly strategies for a positive return on investment.
Short-term, in times like these, it’s much better to be creative in strategy with an effective public-relations campaign and strategic partnerships with contests as the anchor element in a promotion.
Consider a Seattle asset: Alaska Airlines. Why do you think Alaska Airlines is loaded with Seattle passengers in February for flights to warm-weathered Mexico and Hawaii? Conversely, Alaska Airlines would love to strategize as a partner in savvy promotions to bring tourists to Seattle in the wintertime.
Long-term, strategies should include sharing the cost with other groups in underwriting image-building initiatives. For example, Washington Filmworks (www.washingtonfilmworks.org) and the Seattle Film Office (www.seattle.gov/filmoffice) to promote filmmaking.
It was a win-win with these two organizations until legislators killed a great tax-incentive program and opportunities for growth (How Washington Fails in Filmmaking for Economic Development). Maybe it happened but I don’t recall the Seattle Hotel Association lobbying the Legislature last session.
Films create emotions, which fill hotel rooms in rainy weather by helping to overcome resistance by winter travelers who’d prefer to visit sun-soaked locales.
So, a two-pronged strategy — a strategic public-relations program and partnering for image-building films — are the solution.
Oh, by the way, filmmaking also creates jobs while enhancing both the city’s and state’s economic image. In terms of public policy – for a region that’s thirsting for jobs and tax revenue – hotel tax increases and eliminating tax incentives are deterrents to economic development.
Consumers, out-of-state corporations and small businesses have budgets, too.
From the Coach’s Corner, are you surprised Washington state also doesn’t even rank among the top 10 pro-business states? That’s according to a 2010 study by Pollina Corporate Real Estate.
Pollina’s 2010 top 10 pro business states:
- Virginia
- Utah
- Wyoming
- South Carolina
- North Carolina
- Nebraska
- Kansas
- South Dakota
- Alabama
- Missouri
Here’s more information.
Over-taxing business travelers and maintaining anti-employer public policies hurt Washington state’s business competitiveness. Job creation and economic health will not be enhanced. The prescription: A heavy dose of economic patriotism.
“The economy is bad. It’s so bad, third graders in China are being forced to take second jobs.”
-Jay Leno
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Columnist Terry Corbell is also a business-performance consultant and profit professional. Click here to see his management services (many are available online). For a complementary chat about your business situation or to schedule Terry Corbell as a speaker, why don’t you contact him today?
