Comments on: Marketing the capital markets II http://cultureby.com/2006/02/marketing_the_c_1.html This Blog Sits At the Intersection of Anthropology and Economics Wed, 08 Feb 2012 08:43:22 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Grant http://cultureby.com/2006/02/marketing_the_c_1.html/comment-page-1#comment-5119 Grant Thu, 23 Feb 2006 13:02:14 +0000 http://localhost/wp_culture/?p=769#comment-5119 Susan, am on the run, but wanted to thank you for this great post. Where could I find more about the Schwab story? Best, Grant Susan, am on the run, but wanted to thank you for this great post. Where could I find more about the Schwab story? Best, Grant

]]> By: Susan http://cultureby.com/2006/02/marketing_the_c_1.html/comment-page-1#comment-5118 Susan Thu, 23 Feb 2006 10:49:02 +0000 http://localhost/wp_culture/?p=769#comment-5118 Interesting as always Grant, but we need to dive more deeply into the root cause here to see the source of the semiotic leak that you so aptly describe. Individuals who rise to the top of financial institutions are rarely marketers in any sense of the word. They are deal makers and risk managers. Not unlike analysts, just a lot smarter. The only reason they care about us little people at all is to have two things, or perhaps three: 1) a source of cheap money (retail deposits) to lend 2) a source of people to distribute investments to (stocks, bonds, etc.), which is the glue that holds big-bucks investment banking together. (Plus big pension funds, but those are in the death spiral dontcha know) 3) a source of stable and predictable earnings that can smooth out the stock price, and thereby the option value, from the volatility caused by investment banking There have been efforts to become more marketing savvy, going back to the 80's when the FIs started recruiting P&G alumni. That didn't totally work, because intangible services are not much like goop in bottles, but that's another story. Those P+G alums were pioneers in the wilderness who probably didn't get the respect they deserved. More recently, of course, we have seen some truly brilliant CMOs in financial services. But they will never be CEO. Never, never, never, never. Unless they are Charles Schwab, who had marketing in his DNA, as well as the entrepreneurial skills to build his own financial institution. Schwab, however, is the exception that proves the rule IMHO. And those deal-making, investment-banking, risk-managing, financial-engineering CEOs will always makes jokes about advertising being like "burning a pile of paper money -- it makes a pretty fire, but then it's gone". To wrap on a happier note, this I expect this situation to provide blog-fodder for years to come, as well as the occasional billable hour. Interesting as always Grant, but we need to dive more deeply into the root cause here to see the source of the semiotic leak that you so aptly describe. Individuals who rise to the top of financial institutions are rarely marketers in any sense of the word. They are deal makers and risk managers. Not unlike analysts, just a lot smarter.
The only reason they care about us little people at all is to have two things, or perhaps three:
1) a source of cheap money (retail deposits) to lend
2) a source of people to distribute investments to (stocks, bonds, etc.), which is the glue that holds big-bucks investment banking together. (Plus big pension funds, but those are in the death spiral dontcha know)
3) a source of stable and predictable earnings that can smooth out the stock price, and thereby the option value, from the volatility caused by investment banking

There have been efforts to become more marketing savvy, going back to the 80′s when the FIs started recruiting P&G alumni. That didn’t totally work, because intangible services are not much like goop in bottles, but that’s another story. Those P+G alums were pioneers in the wilderness who probably didn’t get the respect they deserved.
More recently, of course, we have seen some truly brilliant CMOs in financial services. But they will never be CEO. Never, never, never, never. Unless they are Charles Schwab, who had marketing in his DNA, as well as the entrepreneurial skills to build his own financial institution. Schwab, however, is the exception that proves the rule IMHO.
And those deal-making, investment-banking, risk-managing, financial-engineering CEOs will always makes jokes about advertising being like “burning a pile of paper money — it makes a pretty fire, but then it’s gone”.

To wrap on a happier note, this I expect this situation to provide blog-fodder for years to come, as well as the occasional billable hour.

]]> By: Eric http://cultureby.com/2006/02/marketing_the_c_1.html/comment-page-1#comment-5117 Eric Fri, 17 Feb 2006 14:17:37 +0000 http://localhost/wp_culture/?p=769#comment-5117 Very funny post, and only a little tongue in cheek. Once upon a time, I was the SVP of Brand and Communications Research at juncture of NationsBank acquiring Bank of America (I was at NationsBank). I diligently researched and gave advice to the Brand Team about their advertising, marketing communications and strategies. Lo, and behold! Like certain political figures in current times, they only absorbed the advice that supported the decisions they had already made! This included massive expenditures on the Olympics, sports and "brand umbrella" campaigns. Really, without the benefit of understanding what they were receiving for those expenditures. Financial services advertising is often crafted by egomaniacs and approved by Finance people. Is it any wonder why little squeaky marketing voices are seldom heard above the din of their chest pounding? Very funny post, and only a little tongue in cheek.

Once upon a time, I was the SVP of Brand and Communications Research at juncture of NationsBank acquiring Bank of America (I was at NationsBank). I diligently researched and gave advice to the Brand Team about their advertising, marketing communications and strategies.

Lo, and behold! Like certain political figures in current times, they only absorbed the advice that supported the decisions they had already made! This included massive expenditures on the Olympics, sports and “brand umbrella” campaigns. Really, without the benefit of understanding what they were receiving for those expenditures.

Financial services advertising is often crafted by egomaniacs and approved by Finance people. Is it any wonder why little squeaky marketing voices are seldom heard above the din of their chest pounding?

]]> By: steve http://cultureby.com/2006/02/marketing_the_c_1.html/comment-page-1#comment-5116 steve Wed, 15 Feb 2006 20:17:13 +0000 http://localhost/wp_culture/?p=769#comment-5116 It's a tough thing to sell...pretty abstract, caught up in feelings of dread and envy for many people. Preparing for the future reminds people that some day they will be old, and nowadays we don't like that. Hence all the TV ads which show super-vigorous boomers sailing, travelling, etc. because of their brilliant and tenacious investment strategies (and advisors). BTW, that's not the Olivier Blanchard I know, a big-time macroeconomist... It’s a tough thing to sell…pretty abstract, caught up in feelings of dread and envy for many people. Preparing for the future reminds people that some day they will be old, and nowadays we don’t like that. Hence all the TV ads which show super-vigorous boomers sailing, travelling, etc. because of their brilliant and tenacious investment strategies (and advisors).

BTW, that’s not the Olivier Blanchard I know, a big-time macroeconomist…

]]> By: andrew http://cultureby.com/2006/02/marketing_the_c_1.html/comment-page-1#comment-5115 andrew Wed, 15 Feb 2006 04:37:02 +0000 http://localhost/wp_culture/?p=769#comment-5115 I think that the financial services industry (or would they call themselves a profession?) is so awash with money that they commission advertising campaigns with little serious thought as to how productive the ads should be or how they should be evaluated. I think that the financial services industry (or would they call themselves a profession?) is so awash with money that they commission advertising campaigns with little serious thought as to how productive the ads should be or how they should be evaluated.

]]> By: Auto http://cultureby.com/2006/02/marketing_the_c_1.html/comment-page-1#comment-5114 Auto Tue, 14 Feb 2006 15:55:39 +0000 http://localhost/wp_culture/?p=769#comment-5114 If you want to see utterly retarded advertising, pick up any copy of Forbes. Just what is the point of spending all that money? The ads look as though they were dreamed up by the summer interns because the serious talent in the agency was busy working with sexier, more important clients. When I'm 95, drooling and in an adult diaper, my brain addled by senile dementia, I'm going into financial service advertising. I won't be at any serious disadvantage to my competitors already i =n the business. If you want to see utterly retarded advertising, pick up any copy of Forbes.

Just what is the point of spending all that money?

The ads look as though they were dreamed up by the summer interns because the serious talent in the agency was busy working with sexier, more important clients.

When I’m 95, drooling and in an adult diaper, my brain addled by senile dementia, I’m going into financial service advertising. I won’t be at any serious disadvantage to my competitors already i =n the business.

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