2nd street market - Reminiscint of a time gone by

2nd Street Market
600 E 2nd Street
Dayton, Ohio 45402
(937) 228-2088

I think that a lot of people forget how things used to be. I am now 27 years old and I clearly have no memories of how our downtown looked in its busiest years, but I might have found a little taste of something similar.

It was early January when I remembered the 2nd street market. My Dad and I kept calling it the "Webster Street Market" or the "Finley Market". Why did we have those names in our memories? Not sure. It made the search for the building all the more amusing as it took about twice as long as it should have to find it.

But for some reason, I remembered the place. After some errand running, my Dad and I decided to stop by and see how the market was doing. It was bitter cold outside and the long, narrow corridor of shops was without a doubt one of the busiest places in Downtown Dayton that day. As we perused the various shops we were looking for only a few things: A cup of coffee; and some lunch.

We found a sandwich shop, the name of which I cannot remember, and we sat and listened to a guitarist, whose name probably left me faster than I forgot the sandwich shop's. But we sat and talked. I saw some old friends from high school. We just had a pleasant time in general.

It reminded me of what a downtown should be like. A bustling market. People milling about. Vendors selling their wares. Capitalism. Quite literally the free market. I am sure that I will find myself going back there when it gets warmer as my first visit was enjoyable. Now if only I could remember that sandwich shop...

www.glassdoor.com - a true view?

At work, recently, a survey done by a company that was organized to give access to "salaries, ratings and reviews posted anonymously by employees". The only part of the survey that I was able to see was a listing of the top 50 and the bottom 50 companies with sales above $1 Billion. To my amusement, which was closely followed by horror, the company I work for is in the bottom 50.

My first reaction was that, "Well of course, all of these people who are writing on this page are all people who got fired, laid off, quit, or just plain want to spew their venom and feel important." As it turns out I decided to visit this website called www.glassdoor.com and see for myself what this really was all about.

For clarity sake, the aforementioned survey was based on a "Yes or No" check box if you approve of the company's CEO. That is hardly a representative, or statistically valid, sample in itself. That being said, the same question is being asked in the same way to everyone on the site at every company. So it still does hold value even though I would not call it statistically significant.

After reading a few of the opinions of my company on the web site (almost all of these were negative, they were also mostly negative at other companies) I began to see a more complete picture of my own company. It was fascinating to hear that Engineering was having all of these problems that seemed to small to me, but, for some reason they thought it a big enough problem to post and *gasp* worth the risk of revealing themselves as an unhappy employee. Then I read about some of our employees in customer service complaining about not being to able to work their hours requested, overtime problems, staffing issues. All of these I suppose I could relate to better as they interact with our customers directly. As I kept clicking I found one of the more interesting things of all: A management review!

The manager was not exactly happy with the company. They were from the southwest. I think I know who it is, and if it is indeed that person I respect them very much. They wrote not about pay grievances (they probably have a salary of $150k+) but about quality of life issues. How they are asked to do more without any help. They are alone on "an island" away from headquarters and it only complicates things because information is not communicated effectively or accurately except when they meet 4-6 times a year. Finally, about their hiring practices. This manager wanted more control of their sales force choices due to the fact that they were held to the standard of meeting their company given objectives.

After reading all of these, mainly negative, opinions I found myself sitting there grinning like a Cheshire cat. I have no doubt that if all of those people's names were exposed that they would find themselves in trouble. I also have no doubt that some companies would use this type of feedback as a tool to punish. I also do not think that that same company that would punish their employees would also get good ratings on this, or any anonymous, web site.

So why the grin? If I were the CEO/Manager I would print all of these off and do my best to commit them to memory. I left www.glassdoor.com with a complete understanding of how my organization works not from the top down...but from the bottom up. The people doing the real work were the ones telling the world how to fix it. Yes, it had a very negative spin. But, in the right hands a talented manage could see through the frustration and make positive changes in the organization. No one needs to be punished, but obviously some things need to be changed.

NFL

The most organized version of football I have ever played was probably in elementary school where we all chose teams at the beginning of recess. I was never in Pee-Wee football, I didn’t even try out for the middle school team. Just like millions of other kids I was into soccer. I would imagine that the number of youth soccer players out numbers those of the youth football players by ten to one. Select soccer dominated my childhood years and I could not wait until the world cup to watch the pro’s from around the world.

For some reason the staying power of Soccer does not translate into adulthood for Americans. Now, I find myself getting excited for Football Season (Not to be confused with Futbol). As the season is officially now in full swing I heard a few analysts being interviewed as to why Football has so many stadiums selling out, why the Super bowl is still one of the largest spectator sports in America, and why there are just so many Football fans.

While there were a whole host of reasons as to why this is the case, I am going to focus on the Marketing aspect to their success.

First, when compared to Soccer, the NFL seems to be perfectly designed for commercial breaks. Every time a team achieves a first down they can squeeze in some commercials at will as they “move the chains”. Also, after any event that causes drama and excitement in a game such as a touchdown, an injury, or timeout there is an extended period of time for advertising. This keeps the interest at a peak, and keeps us fans sitting at home on the edge of our couch. Football, more than any other sport, is a consumer product company’s dream.

Second, the NFL Commissioner, Roger Goodell, and the NFL in general realizes that they are providing a specific “performance” every time a team takes the field. They are putting on a show. Just as on any good Soap Opera, each week adds new twists and turns to the overall “plot” of the season. The NFL also protects their film footage better than most sports and keep them off of You Tube. This forces all of the loyal fans to watch their performance live, thereby increasing the amount they can charge for advertisements. You can only see what happens after the cliffhanger of Monday Night Football by actually watching the next chapter unfold live.

Third, Fantasy football was the best thing that could have happened to the sport. We are seeing the home team “super fan” going through a transition. Now, all of a sudden they are wanting to watch not only their favorite team, but also individual players throughout the league because they are on their fantasy football team. These super fans need to makeup for a bad defensive choice they made earlier in the week and they know that the insulting text messages are on their way from their buddies if they don’t make up some points. Fantasy football keeps people talking about Football all week long, not just on Sunday and Monday.

The NFL understands they are providing to men what soap operas provide to women. It is an entertainment industry and each gripping game is an unfolding plot twist. They force us to watch it live and they encourage us to talk about it all the time. They even grant us participation in the league by giving us the fictions power of being an “owner” in our fantasy league. The NFL understands us. And we love them for it.

Bad customer policies lead to frustrated golfers

This past weekend my foursome scheduled a tee time of 9:07AM for the “inside course” at Community Golf Course in Kettering. Due to a wedding that we had to attend latter that day we only had time to play nine holes. Upon arriving there were just a few people playing, only one group of two on the first tee on the inside, and no one else to be seen. I thought it was a bit sparse for labor day weekend when the weather was in the middle 80’s with clear skies.

My girlfriend and I arrived before the other two playing, so I went in to pay. We needed a cart and the total was $79.50. Come again? Community Golf Course, 9 holes….that should be less than $50.00 for two people. I politely explain that we called ahead to reserve only a 9 hole round due to a wedding etc… Their response was that, “The city will not let us refund any money. We can only issue you a rain check.” I was not happy.

I grabbed the other two playing, told them it would be $80.00 to play 9 holes (all we had time for) and we all decided to leave. Naturally the person who is out the money has the most tied into the policy. I was more upset than the rest of the foursome.

To be fair, I looked on the City of Kettering Web site and I also searched long and wide for their policies online. There are none to be found. I was planning on posting them.

More interestingly, why would a company, or a golf course in this case, have such a ridiculous policy with a double whammy: No refunds; Only 18 holes (an “all of nothing”).

I can think of a few reasons:

First, they are assuming people are dishonest. Why force people to pay for 18 holes even the course is not busy (which we know on that day it was not)? Because they assume that some people will pay for 9 holes and then just finish out the back 9 and “cheat the system”. This is the easiest way to get rid of the opportunity to cheat on weekends.

Second, and a flawed theory, is that they want to “fill their course” by having people play all 18 holes and get the most out of every round. It is easy to assume that you could alternate the starting hole (e.g. first tee, or on hole number 9) effectively enough to make sure every part of the course got equal wear and tear. Further in this argument is that they can get more people playing if they have a full 18 holes for every foursome. This is also not true. They start people every 11 minutes or so no matter hoe many holes the plan to play. The constraint is time, not number of holes.

They are an example of a business that has a ridiculous policy for the sake of having it. I guarantee you that if you or I owned this golf course and a group of four people who were upgrading their golfing experience by renting a cart came in and only wanted to play nine we would try to still take their money. Especially if our course was not busy. By simply using your common sense, looking at the schedule of start time, looking that there is basically no one on the course today, we could bend the rules “just this once.” Thank you very much, and it will be $45.00 for you two, and $45.00 for your friends.

Finally the “no refunds” rule is just beyond comprehension in the consumer society we live in today. It costs literally nothing to void out a credit card sale. In fairness, we did reserve a tee time, so theoretically we took up a profitable space for the course. Except on this day like many others, when they had time to spare and no one was waiting. Also, because we warned my friends, they did not even enter the club house and therefore did not pay a dime. The four of us simply left and played a different course.

So what will I do with my rain check? I will probably play again. Community is a great course and I have played it probably a hundred times. It is so unfortunate that they have these antiquated and ridiculous policies with their customers. I wonder if the visionary John H. Patterson, the man that donated the land and money for the course and founder of NCR, would agree with their policies today.

World Wide Travel Center

I went home today for lunch and I couldn’t believe my eyes. I had won two round trip plane tickets to any international airport! The mail came in this very seriously marked tear away package with specific delivery dates and everything. See below:

It also had a 1-800-809-6310 with a corresponding offer # to verify after I call. So, not wanting to waste any time on redeeming my two newly minted tickets, I called in.

The woman that picked up the phone did not identify herself by “US Airlines” as the airline ticket I received in the mail said. She said she was from World Wide Travel. I was confused. She asked me for my “offer number” on the back of the ticket. I gave it and she verified the spelling of my name.

I am not as lucky as you might think. As it turns out it is for a company in Beavercreek, OH called World Wide Travel Center http://worldwidetravelcenter.com

She then started reading (funny how you can tell when people do that on the phone) me her canned pitch. It went something like this:

“Mr. Lewis, this free travel offer is not a timeshare. Also, it is only available for couples who make more than $45,000 per year and have a valid credit card. Do you fit that category? Ok, Great. We would like to invite you into our office for a 90 minute proposal to discuss your travel needs and at the conclusion of that session you will receive your two free tickets to any international airport. Can we schedule you tonight, tomorrow, or Friday at 6PM?”

*CLICK*

Unfortunately this type of “Advertising” goes on all too frequently. I felt like I was in Orlando trying to get free tickets to Disney Land after hearing how I needed to buy an $185,000 time share and how rich it would make me. These, probably bogus, offers are the worst way to develop a client base. It leaves almost everyone your business comes into contact with feeling slighted. Plus, imagine the sharks that would actually come to the travel “appointment” and sit there only to want to get something for free with absolutely no intention of spending a dime. Does that sound like good business?

Have any of you received this same mailing? Would you have gone to the meeting?

Dayton has a new brand name

I believe in the power of Branding. In business to consumer marketing there is little that is more powerful or valuable than your brand name. It is the reason we buy most all of our household items every day. Brand names reduce the perceived risk in purchasing decisions. We all remember when P&G hit it on the head: “Choosy Moms Choose Jiff”.

It also works in a Business to Business situation. GE aircraft engines are fantastic. I could not afford to buy one as one consumer, but airlines want their clients to feel comforted in the quality engines that they do buy. GE reduces the perceived risk of an airline, and by extension the airline passenger, with their strong reputation and brand name.

This does not work with the Government Sector.

I am sure many of you have read the recent Dayton Daily News Article about Dayton’s new Brand Name. Visit the link to the article. To summarize, it cost $95,000 to come up with that title and look. It will cost $50,000 this year for a local marketing firm to manage the brand name.

This is what we got for $145,000.00

The only problem is this: When in the history on man kind has anyone moved a business to a city because of a brand name or slogan? I am not sure how much more plainly I can say this: Never.

If the end goal of this new brand name is to spend tax payers’ money, then I think the project was a success. If they had any other goal in mind, they are going to be once again scratching their heads wondering why the businesses didn’t come flooding in due to our new brand name and slogan.

We all know of places that are growing: Silicon Valley, the “Tech Triangle” in North Carolina and even to use an international example, Dubai. Do you think that they changed their slogan and growth happened? Of course not, that is a ridiculous conclusion.

So, what did they do with their money if not invest it in a catchy slogan? The Tech Triangle courted all of those businesses by offering hundreds of millions of dollars in tax incentives. What did Dubai do? The same thing. Silicon Valley? You guessed it. Those businesses were courted by tax rebates and incentives galore. The results speak for themselves in these three different situations.

It is out of ignorance that a city like Dayton would be willing to spend $145,000 on a slogan rather than investing in tax incentives (in whatever form they may take) to keep current and court new businesses to the region. States and cities do not need slogans or brands. They need effective policies that manage their current mix of businesses and court new ones on a continuous basis. Each city is in competition with each other city to court these businesses. No business will move to a place unless there is some financial incentive.

To do anything else would be Patently Stupid.

Toyota Prius = Marketing Mastery

It was a month ago that I first read about the Toyota Prius adding solar panels to the top of their sunroof by 2010. At first thought, that is brilliant. As a driver is cruising down the road they can charge their battery even faster and use even less gas. Why didn’t I think of that?

While Toyota expects that the solar panels could increase mileage this is not the reason why they are adding solar panels to the sunroof.

It is obvious that Toyota has done their marketing research. In Japan especially, but also the US and Europe, people like to take naps in their car at lunch time with the air conditioning on full blast. They spend the 40 or so minutes cooling off in their car with the engine running. A waste of fuel? You bet. By watching this behavior and conducting focus groups Toyota recognized a need from the consumer and figured out a way to help these lunch time nappers. As it turns out, the surface area of one Prius sunroof would be just enough electricity to run the air conditioning.

Will this sell more Toyota Priuses? Not immediately. Will this increase customer loyalty? You had better believe it.

Customer loyalty is one of the most important metrics in the auto sales industry. As everyone knows it costs much less to keep a current customer than to go searching for new ones. More to the point, it has been proven that people who buy the same brand and model of car to replace their current brand and model of car are willing to pay about 3% more than a person new to that brand.

So, imagine you have the largest market share of hybrids, which Toyota does, and you have a relatively inexpensive way to “wow” them into only shopping for your cars again by showing you understand their lifestyle. It is a no-brainer. It is all of these little things that the “Big Three” in Detroit are missing. They do not effectively conduct marketing research which leads to products that consumers do not want to buy.

It is easy to see why Prius owners have such a high satisfaction rate with their car. They feel completely understood.

The impact to the Prius customer: 100% satisfaction

The impact to Toyota: 3% higher margins

The Big Three: Discounting SUV’s and Trucks