An Olympic Anthem Made To Stick

The New York Times had an article today on successful and failed commercials from the just completed Olympics. I eagerly read it because I wanted to see what they said about the one commercial that I liked so much that I actually rewound it (using Tivo) and watched it many, many times. And I actually stopped my Tivo (an act that should be a metric of marketing success) whenever I spotted this commercial while fast-forwarding through Olympic commercial breaks. Not only that, I searched for the commercial on YouTube and watched it again. Not only that, I found the original source for the commercial and watched that again. Surprisingly, Stuart Elliott, the NYTimes article’s author, didn’t mention the commercial at all in his article on memorable commercials during the Olympics. So I will.

Nike’s United We Rise commercial takes film of Marvin Gaye singing the Star Spangled Banner at a 1983 NBA game and intermixes it with footage of the American Olympic basketball team preparing for the games. The effect, for me, was mesmerizing.

The appeal of the commercial, of course, is Marvin Gaye. To be able to take a national anthem and make it so different, so soulful, and so memorable is stunning even today. I can’t even imagine what the reaction was in 1983, although I know that Jose Feliciano almost ruined his career doing something similar at a baseball game in 1968.

What makes the Nike commercial so memorable? Let’s consider it within the context of Made To Stick, one of the more insightful commentaries on marketing of the past several years. In their book, Chip Heath and Dan Heath (brothers, one of whom is a Stanford Business School professor) outline the qualities of what makes a message (or commercial) sticky—what makes people remember a message and want to tell others about it, or in my case want to watch it over and over again.

The Heaths identify six characteristics that make a message sticky. Let’s examine the Nike commercial with these principles in mind:

  1. SIMPLICITY. The commercial’s message is simple enough: Gaye brought greatness in his own way to  honoring America, and the Redeem Team is going to do the same, in a way that will be memorable for ages. With style, and with a whole lot of coolness.
  2. UNEXPECTEDNESS. Needless to say, associating Marvin Gaye singing the national anthem with the Olympic basketball team was quite unexpected. Check.
  3. CONCRETENESS. Well, I’m not so sure what’s concrete about this commercial. Certainly it’s meant to embody Nike’s Just Do It, but without knowing that slogan already one would have a difficult time pulling that from the images. I’m going to rule that the commercial doesn’t capture this principle.
  4. CREDIBILITY. I believe that part of what Gaye brings to this commercial, believe it or not, is credibility to the USA basketball team. Gaye was a world-famous music icon who had recently had a hit with “Sexual Healing”, yet he chose to open an NBA game with a moving rendition of the national anthem that was as likely to hurt as help his career. Gaye took an American-born music genre and honored his country by applying his incredible talents in that genre to his national anthem. The American team had the ability to take an American-born game and apply their incredible talents in that game to honoring their country. The question pointed towards the USA basketball team as they entered the Beijing Olympics was whether they’d put their NBA stardom on the shelf during the Olympics and focus on representing America against the best of the rest of the world to the best of their ability. In today’s star-driven society, it’s easy to imagine a Kobe saying, “What’s the point? I’ve already achieved greatness in the greatest basketball league in the world.” Well, let’s consider what Marvin Gaye would say to that…
  5. EMOTIONS. Music has a way of touching people’s emotions unlike any other art form. Not only was Gaye’s performance masterful, when have you ever heard a national anthem transformed into a pop-art-form performance that preserved the spirit of the original anthem? There’s a reason that some of the most memorable (sticky) commercials have featured memorable music. Recent JC Penny commercials come to mind. This VW commercial from several years ago is said to have caused the significant posthumous revival of Nick Drake. And, of course, there’s Apple’s iPod commercials.
  6. STORIES. Well, there isn’t a strong narrative here. The message is more implied, as I’ve outlined above. I’m ruling that they didn’t meet this one as well.

So, that’s four out of the six Sticky principles achieved by this commercial. Not surprising that it stuck with me.

Given the nature of this blog, I’m forced to consider: was Marvin Gaye’s performance innovative? Given the requirement of economic value that many of my innovation colleagues require for something to be considered innovative, I suppose not. This Nike commercial, however, undoubtedly is.

Todd Mintz has a wonderful recount of his attendance at the NBA game in which Gaye performed. Below is the 60–second Nike commercial that I watched so many times on my Tivo (there’s 150 second version available on YouTube as well). And below that is film of the original Marvin Gaye performance. Enjoy.

Nike ad:

Original performance:

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The Physics of Pricing

The Associated Press had a great article that I read today (in the SF Chronicle) on the use of advanced mathematics to help determine product pricing strategies. So-called price-optimization tools from companies such as Khimetrics (acquired by SAP) and Zilliant analyze massive amounts of historical sales data to find clues for better pricing that would be difficult to discern without their sophisticated models. (These software systems cost in the 7–figures—assuming that Khimetrics&Zilliant apply their own analysis to their own pricing in a kind of post-modern self-reflexive business analysis, their customers must be hugely self-conscious about the “optimization” of their bill).

PhysicsThis whole field of analysis in part began, according to the article, when Khimetrics’ founder, Ken Ouimet, was studying complex systems in a university Physics department and he epiphonied (which should be verb) that shoppers have no more sense than a hydrogen atom (or something like that). Next thing you know, mathematical models developed to simulate the motion of atoms in gas are being used to model the purchasing behavior of beer-and-Doritos-buying consumers.

The article and its sidebar have several interesting examples of the successes  of these systems. The systems determine, of course, which products have price elasticity and which don’t. That’s not necessarily difficult for experienced retailers to figure out. What is difficult is to fine-tune pricing on a huge inventory of widely differing categories of products with barely discernible differences within categories.

What’s even more interesting is their analysis of relationships between products and subsequent recommendations to exploit correlational behavior. Beer drinkers, for example, will pay careful attention to price when buying their brew (“10 cents cheaper? Mickey’s Big Mouth for me!”) , but will snatch up snacks to go along with the beer with little concern for cost. So, drop the margins on beer and crank them up on Cheetos—balance this adjustment correctly and you’ve just increased your bottom line.

And guess what? Those consumers care even less about price during big sporting event weekends—turn the pretzel-price up even higher during NCAA Tourney action! Increase the price of mint leaves during Kentucky Derby weekend and you’re golden. Who would have thought that sophisticated mathematics could improve the profitability of such unsophisticated businesses as Safeway’s and Albertson’s.

Personalization/Individualization is a consumer theme that has hit practically all consumer markets, with the extreme perhaps being the ability to completely customize your Nike shoes online so that no other shoe in the world is identical to the pair that you buy. This is normally viewed as empowering for consumers: a good thing.

Consider now the logical continuation of price-optimization. With store cards (e.g., Safeway cards) that people use to take advantage of item discounts, companies are amassing large amounts of personal information that can be correlated with buying habits. Cross-correlate this data with other databases that can be purchased from other sources, and the ability to personalize pricing becomes incredible once price-labeling become easily and quickly changeable (be afraid when grocery store prices are shown with LCD displays).

Herein lies the dark side of too much power from too much information.

Your price-optimization consultant tells you that students coming back from the bar after midnight don’t care too much about the price of frozen pizzas? Nudge those babies up by 15 cents every late-evening and watch your profits climb. Obese people less sensitive to the pricing of chocolate truffles? Put a weight sensor in the gourmet candy aisle. Mercedes drivers less discriminating towards wine prices? Do I really have to spell out for you what to do?

The AP article I mentioned at the beginning of this post predicts that store prices will become more like the mystical pricings of airplane tickets, and I doubt many consumers will relish that thought. Have you ever heard anyone say they wish other businesses priced their products like the airline industry? Where two people sitting beside each other who bought their tickets on the same website pay wildly different prices because their purchases were on different days? Imagine that you are in the register line at Virgin Records with the latest Bond DVD in hand, and the person in front of you buys the same DVD causing the price of your identical DVD to increase by $1. Welcome to the world of airline pricing strategy!

The days of setting prices based on a fixed margin, on prices from competitors, or simply on an incremental increase over last year’s prices is becoming a fading, quaint tradition. Welcome to the Machine.

I sound cynical, yes. But still…

I have to appreciate the evolution of process sophistication. Of modern thinking challenging and overcoming the wisdom of experience (goodbye Willie Loman). This is the essential nature of science, of business, of innovation: new ideas obsoleting the currently accepted lore. I particularly like seeing advanced mathematical theory being applied to such innocuous business processes as the pricing of ketchup. Luddites take note!

Truth be told, I’ve always had a warm spot towards the practical application of esoteric mathematical theory. In fact, since my college days I’ve had a warm spot towards the mathematical discipline of Information Theory (welcome “information theory” googlers!), probably because I tried a long time ago to apply it to neural signals and failed completely (but others eventually succeeded).

Information theory tells us, well, how much information is in something and how much information can be transferred by a transmission channel. How informative is the weatherman in San Diego when all he predicts in every forecast is that the weather the next day will be sunny and in the 80s? Even if is accurate 95% of the time? Information theory would tell you that his information content is low because there’s not much information in declarations of a near sure thing (Listen and be astounded: I am here to tell you that you will take a breath in the next 60 seconds! See?! How amazing is that?).

That being said, my prediction is that the next New Thing in business/marketing will be an information theoretic approach to marketing. Some marketing channels will be proven to have much more information capacity to target consumers than others, and the capacity of each channel will be calculated to the nearest bit, allowing companies to charge millions of dollars for advice on which channel will provide the highest information ROI for your marketing message. Advertising a NASCAR race on American Idol, or promoting hearing aids in Mad Magazine? That’s less than 1 bit of advertising information. Advertising for either product in Golf Magazine, however—that’s called maximizing your channel capacity.

Informationtheory.com is already taken. Marketinginformationtheory.com is not. What’s your guess on how long until all of the latter’s related domains are taken?

JC Bacharach

I haven’t seen many commercials since getting my Series 1 Tivo many years ago, but for some reason I stopped during a recent commercial break to watch the commercial embedded below. I recall some research showing that well known musical pieces can be recognized within one second, and perhaps that’s why I stopped on this commercial: I heard the first second of the music.

The commercial is astonishing in that it is for…wait for it…JC Penny. Not a brand known for its hip/cool image or fashion. This commercial, and a series of other ones, presents a striking new image and speaks to the power of creativity in marketing and its ability to change the perception of a low-quality product/merchant.

For some reason, this campaign resonates with me. Maybe because of the focus in this commercial on classic movies, which definitely has a place in my life, but for sure because of the use of Burt Bacharach music, one of the two greatest songwriters of the latter half of the 20th century (any guesses on who the other is?).

Oh, and a different JC Penny commercial features this other sprightly song as well:

http://www.myspace.com/foreverthursdaymusic

Edit May 3, 2007:
For those of you looking for information on the song used in the new JC Penny commercial that premiered tonight during Grey’s Anatomy, the song Only You is performed by Joshua Radin and is on his new album. You can hear a clip on his official website.