What Cities Can Learn From Marketers

Editor's Notes

• #2: Hello and thank you for having us. We’ve been looking forward to this for a couple of months but yesterday when I heard that the ICMA is focusing more on big data, actionable analytics and focusing on change and trend management as a key initiative, that’s when we began to get really excited. You’re going to hear a bit about each this afternoon and how cities can learn from what marketers are doing to improve their positioning and success in the future. When I use the term marketers, we are really referring to private sector business, firms that are forced to respond to changing conditions not just to thrive and prosper, but to have any chance of survival. That makes them create guide posts for cities who don’t always have the luxury of being so nimble but still need to capitalize on those same changing environments.
• #3: Populations evolve over time. During that evolution, their needs and wants change. What they consume and how they consume it change. Sometimes it is just demographics that cause these shifts. Other times its more external factors. We’ll look a few of these factors and what evolution has brought us.
• #4: We’ll then look at how marketers have responded to these evolutions and environment changes and how they have succeeded in doing so.
• #5: And throughout we’ll marry these concepts back to cities – where your city itself is the product your are marketing – and how you can leverage the same toolkits marketers use to attract and retain residents.To get us started, let me introduce Matt Carmichael. He is a former data journalist for Crain’s Chicago Business and AdAge, author of the book Buyographics and today is the Editor of Livability.com where he works directly with our partners like the Martin Prosperity Institute, Ipsos, Esri and others to research, survey and define what makes cities livable places for their current and prospective residents. He’s going to kick us off with – what else – data.
• #7: Set the demographic table. Most speakers tell you about their success and how you can replicate it. It’s called motivation. I’m going to talk about how I went from average to exceptional and how you should absolutely under no circumstance follow my lead.I changed by doing nothing. If you do nothing, you’re going to fail.I use myself as an example to illsutrate trends that are evident in the data. That’s very different from using myself as an anecdote. 1-2-trend. That’s not how we’re going to roll here.
• #9: Middle 60% are taking home 10% less wealth – upper 20% got it all. SAH = dual income which keeps middle class afloat. Middle class has taken a big hit and the only way it’s stayed afloat is by adding a 2nd income. All of this had taken place in mylife time and I would say most of yours. The world has changed around us, folks. All I did to go from mirroring the trends, to as a friend says defying the demograpgrics I write about is get older. And ….
• #10: Have a bunch of kids. And man, are my kids cute. But by having three I put myself even more exceptionaly in just 6% of households. SO in other words all I did very little to become exceptional. And if you do very little, you will be lucky to remain average. Because the world aroudn us is chaning.
• #11: Middle 60% are taking home 10% less wealth – upper 20% got it all. SAH = dual income which keeps middle class afloat
• #13: What we have is a shifting landscape. You could look at that as a challenge, but it requires a different kind of thinking and a different kind of acting.
• #14: Many of you all may feel comfortable with where you are at, doing what you’ve always done. And there may be nothing wrong with that. In fact, it is the most common human tendency is to seek comfort, stability.Another way to look at it is that if you aren’t changing, improving, evolving – you’re dying. Most businesses – or at least successful ones – manage themselves this way. Good marketers do to.
• #15: Innate desire may be the answer here. I’m guilty of that. Who moved my cheese? Sorry, I ate it. Let’s figure something else out now and make it even better!How do we do that?
• #16: They monitor trends. Many of the ones that Matt already shared with you. But also a bunch more. They look at reactions, consumer opinion, ratings and reviews, competitors, costs, etc. The private sector is forced to show a profit. If they don’t, they go away. The monitoring of these trends is critical to survival. So what do they see in these?
• #17: In those trends they may see opportunity or potential success.They are looking for little nuggets to capitalize on immediately. Or they may be looking at long term market shifts and where they need to be in 5-10 years in order to be relevant.
• #18: They also look at threats. It could see a competitor creep up on them, legislation change or the economy tanking. Regardless of what it is specifically, they are looking to avoid it. Because if they don’t…
• #19: …or they could see their demise starring them in their face. If you are asking yourself what the difference between a threat and immanent demise is, look at the difference between Microsoft seeing Apple begin to control consumer electronics and personal computers… and perhaps a newspaper company come to the realization that the Internet is more than just a fad.
• #20: Budweiser stopped making beer and rather looked at their supply chain and raw materials, repackaging what they had. They sold Budweiser-branded yeast to bakers, and were a supplier of hops and barley. They also manufactured and sold trucks and parts.In WWII, BMW lost their market to sell cars. So they used their factories to sell airplane engines and motorcycles. They had done both previously, but cars had been their bread and butter since WWI.The internet has sparked hundreds of new businesses, but airbnb is one of the few that carefully monitored social activities, conversations and sharing in order to formulate their product and service. Those same research tools have now become their primary market vehicles.
• #21: Changes in product promotion don’t require huge dramatic or catalytic events. They can be much more normal, even slower in evolution.
• #22: Looked at the demographics. Looked at the trends. Changed its image.
• #23: Revenues up more than 50% since 2010. Profits up 75%.So, while some environmental changes require huge shits in strategy and approach, others are much more iterative and quicker to capitalize on. You may just have to change the way you think about the problem and maybe repackage yourself to fit the market. Matt’s going to come back and talk about how cities can evolve their thinking, as well.
• #25: Again, while I did nothing, you need to do something if you’re going to continue to stand out. In talking with mayors and city managers I hear certain recurring themes: two groups talent – millennials.
• #26: But is that really the way to go? Take time, community support, divert funds from other projects. Benefits not always realized.
• #29: Hhow do you think like a markter. How do you change the product that is your city. Let’s talk about two huge population groups. Cities are a product. We market them like a product with cvbs and visitors bureaus. But they have products, too.
• #30: 10K a day. Marketesr used to have a luxury cities didn’t. Put them out to pasture. AARP Quote remake the world.
• #31: They’re aging too. They will be undergoing key demographic shifts that are drivers of relocation, but where and why they relocate is also changing.
• #32: It’s the reason why places like Austin, Boulder (Denver), Seattle, Portland and the Bay Area are such hotbeds for new and relocating businesses. It is where the up and coming talent is.
• #33: Your product, therefore, is the city and its livable qualities. Make city more attractive for residents and it becomes more attractive to businesses. Adapt for changing needs of existing residents
• #34: So what do these groups want from a city? I can answer that. I’m not going ot go into the whole methodology, it’s on our web site check it out… Results of our exclusive survey with Ipso. Schools are going to cause friction bec younger want them and older negatively don’t. ballot box and budgets stretched.
• #35: As evident in our survey. And other research. And common sense. Both of these groups are different because they can be. Millennials have grown up with technology. Are increasingly educated. Being more urban helps facilitate staying single longer – cars are added as people are added. Changes the notion of being 20something. On the other end, Boomers are frankly living longer, healthier lifestyles which allows change. Also economically pinched in many cases which forces more change. We’re built out, say the city planners. Then change zoning.
• #36: ----- Meeting Notes (4/20/14 19:15) -----Built out? A marketer wouldn't say that
• #37: ----- Meeting Notes (4/20/14 19:15) -----
• #38: Palo Alto wants seniors downtownit's not just small towns. it's houston. it's atlanta. it's the sprawliest sprawl. it's BRT in Nashville. It's bike share in Dallas. It's not easy, but it's cleary directions we're moving. So how can you leanr more about your residents, the people in your neighborhood and their wants and needs? To answer that we’re going to talk about an exciting new tool in the marketer toolbox and how it’s an important tool for cities, too.
• #42: With data like that, Amex is able to personalize offers and promotions directly to a consumer that is most likely to engage with it. Go to Bonefish Grill, pay with your Amex, you’ll then see offers from Amex for Bonefish or other restaurants similar to them.
• #43: But let’s look at it with a wider lens. Who does American Express do business with?
• #44: They have direct partnership with companies like Costco, Delta, Amazon and Apple iTunes. Through sharing data with each, they can dig into specific brand purchases and not just totals, where you typically fly to, how frequently and whether it is alone or with other people. They can also see tastes in music. When you auto insurance comes up for renewal.Then you look at those partners partners and you introduce what could be viewed as limitless opportunity and limitless data to map trends and forecast an individuals actions before they make them.
• #45: Target has done an excellent job with this over the years. Based on purchase history and their data collaborations, they are able to determine whether or not you are expecting a child, perhaps even before you have told your family and friends
• #46: And they use that information to target advertising and direct mail for their registry and specific baby items. What’s more, they will naturally evolve that messaging as the baby nears full term and after they have been born.
• #47: Changed services, how they promoted them in response to market demands. Increase in revenue with little change to product line itself.
• #48: In 1970, you would have seen a family gathered around this either for an everyday dinner or a specialoccasion dinner. And interestingly, that’s exactly what you’d see today in IKEAs Hispanic-targeted ads.
• #49: I don’t have any friends at the NSA, nor wal-mart level customer data.
• #50: Looking back at the American Express example, what information do you already know about your residents? A great deal! I should be getting emails from the park district. Mike should be getting emails about golf courses. Cities can be looking at the programs they need today and 5 years from now.
• #51: But Amex didn’t stop there. Neither should you. Let’s talk through some examples where cities are already extrapolating big data opportunities.
• #52: Tampa working on new plans using new data sources. Zoning. Traffic. Police. Social services. There aren’t as many senior using 4sq, but it’s a good mindset to get into – thinking about where groups are congregating for leisure as well as for home and office.
• #54: What assets do you have already and how can you repackage? Just marketing better. Help businesses help themselves. Showcase what the city has to offer and bring in more tax dollars. Every city has these things. Package. Everybody wins.
• #56: How can you work with business and with your own zoning, programs golf courses. Senior groups. Identify areas bring in privacy and bring in zappos quotes about creep factor.
• #58: How can you use the people to give this to you in a nice, simple, transparent way that they get something out of to? SeeClickFix. Now you’ve got the trends, you’ve got the data you’ve made the products you understand your audience. How do you let the world know how awesome you are? To answer that, I’m going to kick it back to Mike.
• #67: LADY VOLS TWEET
• #68: Show don’t tell. We’re not going to tell you how great our music is, we’re going to play it for you and let you figure out for yourself.
• #69: A story from the other place that was influenced by elvis. That’s just how vegas sold itself. Vegas. A place to come, spend your money and leave. Imagine the story you could tell insetad about your city. How it’s a great place to come, and stay. To raise a family. To settle down. To retire. Yes, to raise the tax base, yes to attract the new businesses. yes to pay those taxes, yes to spend your money, but most importantly, to come and to live. That’s the last piece of the puzzle: Telling the story of your great and improving city. To do it, especially on a budget, you hve to take advantage of the opportunities. And to do that, you have to be where the people are. So yes, the world has changed. The game has changed. You’ve got your work cut out for you. But you can do it. As long as you think like a marketer. And as long as you don’t just keep getting older. Thanks.
• #70: Aside from the fact that we are long winded and have narrowly kept you awake, what have we learned today?
• #71: We’ve looked at how populations have evolved over time. People – both young workers and retirees – want smaller, more urban, walkable communities. They are seeking lifestyle. And employers are following them wherever they go.
• #72: Marketers have have built a number of new toolboxes over time to respond to consumer trends and patterns. They aren’t your Mad Men of old (although I would lie if I’ve said I never had a bottle or two in my desk). They repackage products and services, applying different uses for the same things. They form partnerships to college and leverage data. They use that data to target audiences, predict activities and invest wisely. And they are changing the game of how they communicate with their audiences – abandoning traditional advertising and telling their own stories.
• #73: Cities that start to think differently about their products and services will be the ones to create new toolboxes for themselves. Leveraging the same tools and strategies that marketers use and adapting their environments to align with what people want. You have CVBs focused on travel and tourism. You have EDCs and chamber’s focused on building the business and economic environment. But few cities have truly owned the responsibility of making their cities better places to live – focusing on the people – and then telling that story the same way marketers introduce you to their products.