Nugget Keyword Dictionary – What is Bootstrapping?

Hola Todos!

Yesterday, we had an interesting nugget keyword – click bait – so let’s continue the trend and have another nugget keyword, bootstrapping.

Investopedia defines bootstrapping as, “A situation in which an entrepreneur starts a company with little capital. An individual is said to be boot strapping when he or she attempts to found and build a company from personal finances or from the operating revenues of the new company.”

The upside to bootstrapping is the entrepreneur maintains full control as no angel or venture capital money or influence is needed.  The downside is, depending on the situation, it may take longer to scale as the entrepreneur only has personal funds and/or operating revenues to build the business.

As I hinted in yesterday’s post, I will have an announcement for something new coming soon and yes – it will be bootstrapped.

Stay tuned…

 

Best regards,

Dr. Dan-o

 

Daniel M. Ladik, Ph.D.,

Associate Professor of Marketing

Stillman School of Business

Seton Hall University

Nugget Keyword Dictionary – What is Click Bait?

Hola Todos!

I was reading an interesting article on the Apple 2.0 blog and much of the discussion focused on Click Bait.  The Urban Dictionary defines Click Bait as, “An eye catching link on a website which encourages people to read on. It is often paid for by the advertiser (“Paid” click bait) or generates income based on the number of clicks.”

Wikitionary take the definition one step further adding, “Website content that is aimed at generating advertising revenue, especially at the expense of quality or accuracy, relying on sensationalist headlines to attract click-throughs.”

I’m not sure how much click bait is out there but my guess is the percentage is high – very high. Sensationalistic headlines are not new – just take a look at the tabloids on a weekly basis – but that tradeoff of article quality or accuracy for quantity of eyeballs is pushing web sites to aim for the lowest common dominator just for the sake of revenue.  These links/web sites do not generate much value (or none at all) and it’s only a matter of time before consumers are totally attuned to these tricks and therefore, tune out.

Very soon, I will be announcing a new something something from the realm of DigNuggetville, and it will be as far removed from click bait as one can possibly get.

Stay tuned…

Best regards,

Dr. Dan-o

 

Daniel M. Ladik, Ph.D.,

Associate Professor of Marketing

Stillman School of Business

Seton Hall University

Nugget Dictionary Keyword – What is Astroturfing?

Hola Todos!

In short, I never heard this term “astroturfing” before so it’s time to post the keyword to the Nugget Dictionary. According to Wikipedia, astroturfing is:

“…is the practice of masking the sponsors of a message (e.g. political, advertising, or public relations) to give the appearance of it coming from a disinterested, grassroots participant. Astroturfing is intended to give the statements the credibility of an independent entity by withholding information about the source’s financial connection. The term astroturfing is a derivation of AstroTurf, a brand of synthetic carpeting designed to look like natural grass.”

I was reading the Apple 2.0 blog and was introduced to the term in a Philip Elmer-DeWitt post.  In the article, Philip detailed how Samsung “hired students to post fake benchmark reviews of HTC’s latest smartphone and reporting – falsely – that they were ‘constantly crashing.’ ” After admitting the wrongdoing, Taiwan’s Fair Trade Commission fined Samsung 10 million Taiwanese dollars (or US $340,000) for defaming a rival.

Something to think about today…

Best regards

Dr. Dan-o

 

Daniel M. Ladik, Ph.D.,

Associate Professor of Marketing

Stillman School of Business

Seton Hall University

 

 

 

My Definition of Marketing

Hola Todos!

I found it hard to believe that after 2 years and 261 posts, that I NEVER had an explicit post on my definition of marketing: Find out what people want and give it to them!

Recently, former student Jimmy Miguel, emailed me the following:

“Dr. Dano – How you doing? Tell you what, you have some crazy good timing, I was in a Marketing workshop just last weekend and the guy that was presenting went around the room asking what we do for a career. Once everyone was done he stopped and asks out loud: “what is marketing?” Obviously, considering the majority of the audience were marketing professionals, we all knew what it was but there was some ambivalence on how exactly to describe it. After a couple valiant but feeble attempts by my cohorts I piped up and said “Finding what people want and giving it to them.”

 He was kinda taken aback because everyone was using all this sophisticated vernacular to describe what it was, but in its most basic form, that’s it. He did use a different choice of words to describe it, but he pretty much agreed that it was an accurate definition. All these years later, I still use that as my definition… Sounds like a good Nuggetville posting to me haha.” 

Agreed Jimmy.  It does sound like a good Nuggetville post and I was really surprised that since starting the blog in August 2011, that “the definition” was never a post in-it-of-itself (note: while never detailed, it has been mentioned previously).  Over the last 10 years as a marketing professor, I have been teaching Principles of Marketing or the foundation Marketing class on the graduate level at least 3 to 4 times per year and I tell the students that the definition highlights the three most important chapters in the textbook:

“Find out (marketing research) what people want (consumer behavior) and give it to them (segmentation, targeting, and positioning)”

Truth be told, I learned my definition of marketing while working on my MBA at Saint Joseph’s University.  In my foundation MBA marketing class, professor John Stanton was the first person I heard use it (he was working on a book at the time, Success Leaves Clues).  I know a nugget when I hear one and I, like Jimmy in the quote above, never forgot it.

Something to think about today…

Best regards

Dr. Dan-o

 

Daniel M. Ladik, Ph.D.,

 

Associate Professor of Marketing

Stillman School of Business

Seton Hall University

 

 

 

 

The 1% Rule: Not All Members Are Equal

Hola Todos!

I was having a conversation with a professor the other day and we were discussing web communities and user participation.  Our chat brought me back to something I had heard in the past and wanted to share as a DigNuggetville Keyword Term: The 1% Rule.

Roughly speaking, it is very common within an Internet community or social network that 1% or less of the total members actually create content while most members are more passive participators in the community. Roughly speaking, the community will consist of creators (1%), some contributors (9%), but mostly passive observers (90%).  Sometimes the 1% Rule is also called the 90-9-1 Principle but also represented as an 89-10-1 ratio as well.

So next time you see that Twitter feature article in the press, take notice how Twitter tries to defines “a user” and then reflect back to the 1% Rule.

Something to share today…

Best regards,

Dr. Dan-o

 

Daniel M. Ladik, Ph.D.,

Associate Professor of Marketing

Stillman School of Business

Seton Hall University

 

 

WIIFM: What’s in it for me?

Hola Todos!

For those of you who have had the torture of being in one of my classes, no doubt you have heard me say on more than one occasion, that good marketers “Tell people what’s in it for them – because if there is nothing in it for them, they will not be interested in anything you’re selling.”

I was reading my Linkedin messages this morning and I saw an interesting post from Peter Guber – someone I follow within Linkedin because he wrote a rather interesting book on storytelling titled “Tell to Win: Connect, Persuade, and Triumph with the Hidden Power of Story.”

I though the post was a nice fit with all my chatter this week on new year’s resolutions.  Titled “10 New Year’s Resolutions You Must Make For Your Greatest Business Success” the post features two items that caught my eye:

#2 – In gathering collaborators and support, focus on “what’s in it for them” – this will garner their attention and intention to respond to your call to action.

#9 – Embrace failure – if you’re not failing on occasion, you’re not taking enough chances testing the real quality of your talents and will unlikely achieve your greatest success.

Check out the full article when you get a chance.

Best regards,

Dr. Dan-o

 

Daniel M. Ladik, Ph.D.,

Associate Professor of Marketing

Stillman School of Business

Seton Hall University

 

 

LinkedIn Missed the Boat: Microsoft Buys Yammer

Hola Todos!

The headline I heard this morning on NPR (read full story from CNNmoney.com, click here) did not surprise me – Microsoft Buys Yammer – but at the same time, I’m disappointed in LinkedIn.  Perhaps LinkedIn did not have the cash (although it could have been an all stock deal) or they did not see a strong business model in Yammer or they could have been strategically asleep (perhaps) – regardless, LinkedIn missed the boat on this opportunity.

Yes, LinkedIn is the best B-to-B social network going (I’m a big user) but at the same time, LinkedIn should not be so myopic (click here) and just define itself as a massive, digital, and interactive Rolodex.

In my eyes, LinkedIn should position itself towards digital services that are B-to-B.  Yammer would have been a nice fit.  WebEx would be an excellent premium service to LinkedIn users.  Even live chat to have a team meeting among multiple members would be a nice service to offer its users.  What about Ning?  Microsoft bought Skype a while back for $8.5 billion and I was thinking these same myopic thoughts about LinkedIn.  However, at the time LinkedIn was not a public company and $8.5 billion is a ridiculous amount of cash to spend on a firm that did not have a strong positive net cash flow.

The lesson is:  if a firm defines itself to narrowly (e.g., myopically), the firm could find its business out of flavor in the near future.  Monster.com and CareerBuilder.com are both struggling at the moment because the business that they defined for themselves 5 to 8 years ago isn’t viable to today’s marketplace because of LinkedIn.  I just hope that LinkedIn does not find itself in the same predicament 5 or 8 years from now.

Something to thing about today…

Best regards

Dr. Dan-o

 

Daniel M. Ladik, PhD

Associate Professor of Marketing

Stillman School of Business

Seton Hall University

 

 

 

 

Nugget Dictionary Keyword: “Your backroom is someone else’s front room”

Hola Todos!

Today’s nugget keyword is not a keyword but rather a phrase.  I was reading a blog post on AllthingsD the other day, and to no one’s surprise or dismay, Apple quietly announce that it is phasing out their social network Ping (click here for full article).  With Twitter and soon to be Facebook integration in full order, CEO Tim Cook stated this week, “We tried Ping, and I think the customer voted and said ‘This isn’t something that I want to put a lot of energy into.’ ”

This discussion and blog post on Ping got me thinking about phrase by the legendary Peter Drucker, “Your backroom is someone else’s front room” (click here).  One of Dr. Drucker’s fundamental beliefs is you should do only what you do best; play to your strengths.  In addition, managers should partner with other firms who can complement their strengths to minimize their weaknesses.

Dr. Drucker defined the “front room” as your strengths, or what the firm does best; the activity that which stirs your passion and shows off your excellence. Everything else is the firm’s backroom, and most definitely, some other firm does it better.  So the idea is to excel in your front room and find another firm to do your backroom.

In the Apple exemplar, we are all very familiar with Apple’s front room; iPod, iPhone, iPad, MacBook, etc., While Ping was in the front room, Apple was by no means excelling with Ping.  There were multiple other firms who did social networking better than Apple, and Apple is finally partnering with them.  I hope LinkedIn will be a partner in the near future too.

What surprises me most of this announcement is that every article that discusses either the Walter Isaacson book (click here) or the Adam Lashinsky book (click here) emphasizes that one of the main elements to Apple’s success is Apple’s ability to focus on just a few great things.  I guess even the mighty Apple looses focus every now and then and spends too much energy on something that someone else does much better.

Something to think about today…

Best regards

Dr. Dan-o

 

Daniel M. Ladik, PhD

Associate Professor of Marketing

Stillman School of Business

Seton Hall University

 

 

The Job Post Buzzwords

Hola Todos!

This one was too good to pass up.  The spring months are usually the most active when it comes to changing positions as well as undergrads seeking their first gig out of college.  I’ve been there myself and read way too many buzzword-laden job descriptions myself.

This story (click here) from CNN.com is excellent and “translates” what many of these resume buzzwords such as “detail-oriented,” “team player,” “multitask,” and the ubiquitous “outside the box” really mean.

 

Best regards,

Dr. Dan-o

 

Daniel M. Ladik, PhD

Associate Professor of Marketing

Stillman School of Business

Seton Hall University

 

 

 

Nugget Dictionary Edition – BHAG

Hola Todos!

Today’s nugget – dictionary edition is perfect for theme of this week – BHAG (pronounced BEE-hag).  BHAG stands for BIG HAIRY AUDACIOUS GOAL and was proposed by James Collins and Jerry Porras in their 1994 book Built to Last (click here for Wikipedia entry.

A normal goal is very specific and tactical, such as “achieve 10% revenue growth in the next 3 months.” A BHAG, by contrast is visionary and more strategic and emotionally compelling.  In the article entitled Building Your Company’s Vision (1996), the authors define a BHAG as a form of vision statement “…an audacious 10-to-30-year goal to progress towards an envisioned future.”  My favoriate BHAG of all time is the “Moon Shot: “To send a man to land on the moon and bring him back safely to the Earth in the next 10 years.” At the time, no one at NASA knew how to accomplish that goal but the Moon Shot BHAG made the engineers think differently therefore creating a series of more tactical goals to eventually reach the Moon Shot BHAG.

Best regards,

Dr. Dan-o