Microsoft Minimized to Marketers

By Mike Maddaloni on Wednesday, May 23, 2007 at 08:48 AM with 0 comments

Microsoft Office CD and candy takeawaysEverybody has an opinion of Microsoft Corporation. Where you hear a lot of the negative comments, there are many positive ones as well. Myself, I have made a decent living working with Microsoft technology. That being said, I am "multilingual" and work with various Internet-based technologies, choosing the one best suited for my clients' needs.

Recently my wife, a marketing manager, attended a Microsoft event for the launch of Office 2007. The event was targeted to marketing professionals. The photo in this post shows the takeaways from the event, or what I like to call swag.

It wasn't clear by the design and wording on the CD packaging that this truly was a full-blown, free license of Office 2007, which was the impression my wife had. Well it is, but I had to install it first to find that out. As for the giant Hershey Kiss... yes, they simply used a label machine to print "Microsoft Office 2007" labels and slap them on the top of the box (click on the photo to see a larger photo). Apparently the candy was an afterthought, and that was about as much thought that went into it

Based on my years of experience with Microsoft, I always considered them a marketing company that happened to make software. These items have changed that opinion somewhat. I shouldn't look a gift horse in the mouth, but this gift will take some education for me to harness its features and power.

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Macy’s Needs a Clue in Chicago

By Mike Maddaloni on Saturday, May 19, 2007 at 10:52 PM with 2 comments

Marshall Field's logoAs The Hot Iron was not around when Federated Department Stores acquired the former parent of Marshall Field’s and proceeded to rebrand it and in the process drain the life out of the store, you my readers were spared quite a bit! Especially for someone like me, who hails from Western Massachusetts, first worked in Pittsfield, Mass. and moved to Chicago to start a business, I relate a little bit to the late Mr. Field. Add to that my appreciation for history and tradition, it is probably not surprising to you that I have not entered the State Street store since the red star was placed on the awnings of the building.

I don’t need to recant all of the negative press and poor performance numbers that Federated has experienced in the stores that were formerly Field’s, not to mention Macy's attempts to blame others for their own ills. Where Federated’s chairman Terry Lundgren said that it was a business decision to rebrand the stores and build a national brand, it doesn’t help if the people that you want to continue shopping in your stores don’t know anything about you. As for business decisions, since when does spending hundreds of dollars for a sweater constitute a business decision?

When the announcement was originally made, there was the promise Frango mint production returning to the Windy City, and many enhancements to the State Street store including a fresh foods market, recognizing the residential growth in the Loop. It’s been over a year since those announcements, and there is some chatter about Frangos (conveniently timed with chatter about closing Field’s old distribution center in the city) and no fresh food market in sight. Sure, the 28 Shop is back and valet parking have been added, which may account for the store's perception of being overpriced.

Unfortunately I have witnessed this corporate arrogance before. Back in the early 90’s Federated bought the Jordan Marsh department store in Boston and rebranded it. Small plaques were added to the exterior of the store mentioning its history, but nothing else. Two big things Federated did to irk Bostonians was to cancel Marsh’s Enchanted Village, a Christmas display setup every year, and run ads in Boston newspapers featuring New York Yankees player Derek Jeter. The Village is now owned by the city of Boston and fallen into disrepair, and it does not need to be mentioned how much Boston loathes the Bronx Bombers. Fortunately for Bostonians there was Filene’s department store chain… until last year when they were also acquired and rebranded as Macy’s.

In both cases Macy’s did what seems like all they know – to offer coupons and sales. As they have discovered in Chicago, this isn’t working. Sure, they may have wanted to be cautious as to not flaunt the fact that they killed Field’s, but there comes a point where you can’t just mail it in from corporate headquarters and expect people to shop. That isn’t working, and as much as Federated has reshuffled its Midwest management, they are doing the same thing they have always done. Prior to rebranding Field’s there were no Macy’s stores in Chicagoland – apparently Federated thought its sponsoring of a Thanksgiving Parade in New York was enough brand recognition?

Retail, brick and mortar shopping is being hit from all angles today, including the Internet and discounters. If Federated, which will soon be renaming itself to Macy’s, doesn’t create some buzz or mojo soon in Chicago, it may never be able to. And for those who are loyal to Field’s, they can take comfort that when Macy’s faces its demise, it will be their name and not Field’s on the awnings when the State Street store is shuttered.

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What I Like About the Post Office

By Mike Maddaloni on Thursday, May 10, 2007 at 10:08 AM with 0 comments

Forever StampHave you purchased your Forever Stamps yet? With next week’s postal increase, the post office came up with what I think is its best idea in years – a first-class postage stamp that once you buy it, you can use it at any time, even after the next postage increase. Where on the surface this may not make sense, factor in inflation, interest and the cost of distributing 2-cent stamps, and it is a wise move.

With all of the problems that the post office has in its customer service and mail delivery, especially in Chicago, I have decided to focus on the things that I do like about the postal service here in the US. In addition to the Forever Stamps, my other favorites include:

  • Automated Postal Center (APC) kiosks at many post offices allow you to weigh and ship packages without waiting in line, as well as purchasing books of stamps. In many post offices when there is a line at the windows, there is no line at the APC.
  • USPS.com allows you to track shipments and buy stamps with only a $1 surcharge, which is more efficient than waiting in line for either.

Come to think about it, what I like about the post office is related to new thinking and services that require little human intervention.

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Next likemind on May 18

By Mike Maddaloni on Tuesday, May 08, 2007 at 09:28 AM with 9 comments

likemind.chi logoI just got word that the next likemind will be on Friday, May 18. In Chicago, it will be at Intelligentsia Coffee, 53 E. Randolph, at the corner of Wabash.

What is likemind? It started with two people who decided to meet for coffee and invited others. There are now 22 likemind locations around the world... amazing!

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Why Repaint An Airplane?

By Mike Maddaloni on Monday, April 30, 2007 at 10:28 PM with 7 comments

new Delta logoToday Delta Air Lines came out of bankruptcy. At an "event" to announce this, they unveiled a new logo and announced they will be repainting their aircraft with it. This is 19th logo for Delta in 78 years, and you can see all the past logos courtesy of the Delta History Museum. The following was from their press release announcing the new logo:

"Delta’s brand, which includes the customer experience and our financial stability, has been changing for the last 19 months thanks to the tireless efforts of Delta people worldwide," said Tim Mapes, Delta’s vice president of Marketing. "Now, it's time to refresh our visible brand identity to mark the progress we've made. It represents the very core of Delta people who are more passionate than ever to provide our customers with the very best experience possible."

From this statement, the logo changes everything, correct? All Delta employees, those remaining after layoffs who have taken pay cuts themselves, will be much happier, right? Aircraft will be much cleaner and in and out of gates on time, no?

I see no need for this. The physical airplane is the last step of the customer experience with the airlines. And my only close-up view of the airplane is very limited, when I am at the gate just about to board the plane. Sure, I may see other planes out the window of the plane I am currently on, but do I look out and say, "oh, I want to fly that airline, they have cooler colors?" By the time I am on the plane, I have made my decision who to fly, paid for my ticket and am ready to get to my destination.

I see the airline industry in line with the retail banking industry, where they change names, rebrand, throw big parties, but what really changes? Is service improved, both in quality and cost of delivery? Can I get personalized service and have a personal relationship with either? How will a new logo on a sign in an airport and a new coat of paint on a plane make a difference to me, the consumer?

Delta isn't the only one guilty of this. When US Airways merged with America West, the combined airline decaled planes with the "throwback" logos of the airlines that merged to make US Airways. Even frugal Southwest repainted the majority of their planes from desert colors to blue. Once again, the painter and signmaker are the ones who truly benefit from these changes, just as in banking.

Now I am waiting for Hugo Chavez and his Citgo to challenge Delta on the similarities of their new logo to his longstanding one!

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