In recent years, the trend toward outsourcing has dramatically changed the relationship between original equipment manufacturers (OEMs) and their suppliers.  According to industry sources, “a generation ago, of the total value of goods sold by OEMS, the share that originated with suppliers averaged 40 percent. Today, the average share is 80 percent!” The result has been an increasing concern among OEMs to hold down supplier costs while demanding quality, service and delivery.  Many suppliers have responded by reducing costs (particularly labor) in a downward spiral of price promotion, reduced productivity and unreliable performance. These issues have been particularly salient in highly competitive, technical and error-sensitive arenas such as medical device manufacturing. In dozens of recent conversations with purchasing agents for medical device manufacturers, we heard report after report of the stress these agents faced as they sought to obtain high-quality parts in a timely fashion at a good price.

Enter Media Logic client, MicroGroup. Originally a machine shop, MicroGroup offered “off-the-shelf, finished-to-order, microthin metal tubing products for various industrial segments.” As it saw its products becoming more and more commoditized, it turned its focus to the bourgeoning medical device manufacturing market.

According to Jay Caraviello, President and CEO of the Medway, Massachusetts-based company, “We saw an opportunity to meet the needs of medical device manufacturers by offering consistently high-quality products that meet the demanding specifications and delivery requirements of this industry. But we also wanted to go beyond that to become a true manufacturing partner, to function as an extension of the OEM.”

MicroGroup began what could be called a “cultural evolution,” turning the “get it done” attitude that had become part of its DNA into a corporate commitment to the OEMs, their customers, the medical professionals who use the equipment and, ultimately, to the patients who are being treated by the devices.  Of course, Caraviello and his team implemented new processes and procedures to ensure consistent quality and delivery, but perhaps more importantly, the organization hired project management teams to function as liaisons between the OEMs, the engineering crew and the production floor – spending as much time on the OEM site to ensure manufacturability as they do with their own production department.

In effect, MicroGroup had established the foundation for a new brand in a new market – a brand that offered the value that OEMs were seeking. But how could MicroGroup describe this value in a way that would resonate with its markets – quickly and effectively? How could it use this value to move itself away from continual price promotion and competitive bidding?

Caraviello hired Media Logic for Brand Amp^SM, our fast-track strategic process that helps organizations create “conversation-worthy” brand identities, develop strong positioning and marketing strategies, identify brand community opportunities and prepare for active participation in the conversation.  The Brand Amp process helped MicroGroup:

• Uncover its brand opportunity
• Define its brand positioning
• Design corporate, product or initiative identities
• Begin to establish brand communities
• Develop key brand collateral and online properties
• Create seed social media content

Keying off MicroGroup’s awareness of “what’s on the line” for their OEMs and the patients ultimately treated by their products, we created a new look, tone and feel for the company that reinforced the spirit of the brand.  The brand launch was supported both internally and externally through a new and highly optimized website, an e-commerce site, a video, print ads, online presence and direct marketing campaign. The introduction of the new MicroGroup brand has effectively raised the company’s profile and search visibility and set the stage for additional content development (case studies, white papers, blogs) that will deepen relationships with clients and prospects.

Says Caraviello, “We’re committed to working with our OEMs to improve productivity, quality, delivery times and costs. Ultimately, we’ll all win.  Media Logic’s Brand Amp process allowed us to begin, build and maintain the conversations we need to get found, be credible and create preference.”

The key to an effective social media plan is to establish the importance of strategic content. It is the act of creating (or uncovering) and distributing this content that will help you achieve your strategic objectives.

Some of you may cringe at this suggestion, but it’s really about bringing the discipline of marketing and publishing to the seeming randomness of social media:

1. Staying on brand
2. Targeting content
3. Keeping content recent and frequent
4. Building an expectation of value
5. Providing a feedback loop

If you’re a victim of the “what are we going to post today?” syndrome, here are a few tips to get started with strategic content development:

1. Analyze your primary target audience. What value can you bring to them?
2. Audit your content assets. You’ll be surprised by what’s available in-house or from third parties.
3. Recruit contributors. Don’t be too narrow. Interest may come from some very unexpected places.
4. Develop an “editorial” calendar. Create a rollout plan that will provide your audience with relevant and timely content, but will also allow plenty of room for topical postings, following interesting threads or just reveling in the spontaneity of the social environment.

Now that the shine is off social media, isn’t it time to put it to work for your organization?

This is why Media Logic so excited to announce our new social media startup bundles
Z-Pac^SM for Business and Z-Pac^SM for Higher Education.

Visit our site for details and pricing.

Our Z-Pac bundles are designed to help the next wave of businesses and institutions take what has been learned about the power of social media by early adopters and put it to work for themselves.

Z-Pac – which bundles Media Logic’s Brand Amp^SM and Zeitgeist & Coffee^SM products – is a 3-month learn-by-doing program. The program includes a quick analysis to ensure a brand is conversation-ready; an asset analysis to uncover and optimize any content in-house experts, employees, partners, customers and fans are creating; and a conversation architecture analysis to make sure the brand is able to expose those assets easily.

The real magic comes through implementation of Media Logic’s Zeitgeist & Coffee 2.0 dashboard.

Z&C is web-based tool that makes social media content development and communication management easy and exciting. The Z&C dashboard rationalizes and simplifies the whole social media process. With Z-Pac, Media Logic allows customers to distribute the Z&C dashboard freely to all its key content creators, communications managers and advocates.

Media Logic is offering special pricing on its Z-Pac bundles through 3/31/10.

(Serious fans of Glee call themselves “Gleeks.” As far as I’m concerned, Gleek is a Superfriends space monkey. But that’s a debate for another day.)

As Ad Age opines, “There is no other show on TV right now that gets as much free, voluntary social media marketing courtesy of fans.”

So how can your business hit the right notes and bust the right moves to engender this kind of enthusiasm? Short of hiring the glorious Jane Lynch, the lesson to take away from this viral success is that you need to make an emotional connection with your audience – in your stores, in your marketing, at every possible touchpoint.

It all comes back to your brand. Is it conversation-worthy? Frame it right and customers and prospects will happily help sing your praises.

Harness the power of social media. Register for your free presentation today and find out how you can use social media to build your brand and business.

“Brand values can be established as a brand identity, but they must believably exist in the mind of the consumer. A brand can’t just say it stands for something and make it so. The consumer will decide, making it more important than ever for a brand to have measures of authenticity that will aid in brand differentiation and consumer engagement.”

–MarketingVOX

Case in point: Purchase College. This premier member of the State University of New York system had what many might consider an enviable situation – it was experiencing very little difficulty in recruiting students.

The challenge was in student retention.

As part of the SUNY system, Purchase College attracted many students expecting a “typical” SUNY experience – something you definitely won’t find at the distinctly different Purchase College. Even internally, Purchase had become a college of two minds, a unique combination of both arts conservatory and liberal arts/sciences mainstay.

In order to get more of the right students to apply and have fewer of the wrong ones enroll, Purchase College needed to start talking about itself in a more authentic and direct way – allowing prospective students to “self-select.”

Through our Mine & Dine and BrandAmp products, Media Logic quickly worked to uncover, identify and create a unified vision. Media Logic provided the necessary forum for leaders from across the campus community to come together and resolve the tension between the school’s “arts” side and its “liberal arts” side.

Under Media Logic’s guidance, Purchase College created a brand that was far more than the sum of its parts. Essential to the branding process were qualitative research, a geo-demographic analysis, predictive modeling and a comprehensive recruitment and retention plan. We were able to determine that Purchase’s ultimate value came not solely from its programs, but from the unique mindset and culture of the students themselves.

The entire campus – from faculty and students to administrators and alumni – embraced the new brand as an authentic reflection of who they really were. It was integrated into all recruitment communications, and guidelines were established to extend it across the entire college.

After the launch of the new brand, applications increased more than 60%. Selectivity was also up 16% (more than 30% for liberal arts), and persistence has risen by 10% and 12%, respectively.

I speak to large and small companies on a daily basis and everyone seems to say the same thing: “We have to get in on social media marketing.” Some companies are taking the lead to do it themselves. They are establishing “social media” or “new media” or “digital media” departments that will head up the company’s social media initiatives. They are asking about tools that will monitor the social space and easy ways to distribute content. And of course, everyone wants to know about tracking and reporting. Some are going through a very rigorous exercise of shutting down renegade bloggers and using taskforces to establish guidelines and standards prior to foraying into the social space. And yes, there are still a small few who haven’t quite drunk the Kool-Aid®. For this article, I want to focus on the enthusiasts – companies that are eagerly entering the social media space.

To give you a sense of how many are doing just that, Facebook fan pages are being added at the rate of 24,000 per day. It’s clearly reached a critical mass, and most companies at this point are eager and enthusiastic to get going. Last year, companies exhibited a lack of urgency and interest in social media – this year, they are trying to more than make up for “lost time” and in some cases are forgetting their common marketing sense. For all the companies that are getting themselves “some of that social media,” I ask you to please take a deep breath and consider a few things before you drive yourselves – and your companies – down a wrong path.

First, do not establish a new silo in your company. If social media is leveraged correctly, it can influence and impact multiple organizational functions – not just marketing (advertising, direct, promotion and PR) but sales, operations, HR, customer service, product development and research. Social media should not be sanctioned to one department in a company.

Nor should it be the responsibility of just one individual. Do not think that hiring one social media specialist will answer all your needs. That’s like saying you need only one person to run the accounting office – they can do all the accounts payable, receivable, payroll, purchasing, employee benefits, etc. social media has moved beyond the lone-gun cowboy blogger.

Before you start tweeting, consider what you are trying to accomplish through social media. Social media can be employed for many different reasons. Decide how you want to use it and what you want to get from it. Is it to build your brand awareness and create thought leadership? How about brand preference and loyalty? Do you need to answer customer needs and enhance engagement? Are you looking to build traffic and new interest? Have you considered what it can do to help with gathering market intelligence and research? Do you want it for a recruitment tool? Do you expect it to drive sales? And don’t say “yes” to all – everyone says yes to all. What is realistic for your company? You may need to re-prioritize your expectations.

Once you have established your objectives, you need to sweep the landscape. Do a thorough vetting of what is being said and who is saying it. You should be able to capture information about keywords and themes relating directly to your company/brand/product; the opinions and perceptions of your customers, employees, partners and your competitors; and you should also be able to identify key influencers, what they are saying and where you can find them. Think of it like a social media messaging/media plan – you want to uncover where the conversations are happening, who is engaging and what they are talking about.

Now consider your company – are you conversation ready? Is your brand even in the conversation? Do you have something of value to share? Are you ready for a corporate-wide solution or is it better for you to focus on key markets or key products? Be very clear about what you can take on before you launch. Consider which social media platform will work for your needs. They are all different with varying benefits (go back to your objectives).

Don’t forget to consider roles and responsibilities, including internal hiring and outsourcing. There are a lot of tools, technologies and talent available to help monitor and manage social media. Do a thorough review of what is available before you start hiring staff.

And remember, just because you build a social media platform doesn’t mean people will come. You have to engage them and inspire them to participate. You have to have something of value that matters to them. Social media is a two-way conversation, a give and take. Do not just start tweeting out corporate news and expect people to follow you. Consider social media as part of your integrated approach to marketing, and leverage it for all it can do.

Social media gives real-time and immediate feedback – be realistic on what you want to measure (line it up with your objectives), and don’t get caught up in all the information that you don’t need. Use the data to help inform decisions, and don’t be afraid to test, learn and make adjustments as the tide of conversation changes. This is a whole new world, and a very exciting time in marketing – don’t panic, use common marketing sense and enjoy the ride.

Harness the power of social media. Register for your free presentation today and find out how you can use social media to build your brand and business.

So will there be any fallout?
Media Logic’s Z&C Poll, first posted on the 15th, shows there might not be much. Nearly three-quarters of respondents (73%) said any controversy would soon be forgotten. And curiously, nearly as many people who said the story wouldn’t be forgotten thought it was as likely to help the brand as hurt it.

The breakdown by sex is somewhat more interesting.

Way fewer women than men thought the whole thing would blow over. 67% versus 79%. Yet within those groups, as many of the remaining voters thought the story would help the brand as hurt it.

What’s the bottom line? A week and a day or two in, #pepsifail is still popping up once every hour or so on Twitter. By comparison, #balloonboy is popping up once every second. Pepsi apologized but did not pull its app. Perhaps brands, aware of the cynicism and short attention spans of the online audience, are learning not to panic when faced with bad PR. Perhaps Pepsi escaped only because our attention was diverted.

Tell us what you think. See what others think.

Take the Z&C Poll.

And be sure and come back and give us a quick comment.