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George Loewenstein on the mind
"The Platonic metaphor of the mind as a charioteer driving twin horses of reason and emotion is on the right track—except that cognition is a smart pony, and emotion a big elephant."
Is the big elephant pulling me off the track of reason? Please let me know.
- In a BusinessWeek article in January titled, What Innovation Advantage? Chinese and Indian companies aren't leaving design to the North Americans, the really smart author, Roger L. Martin, puts it clearly:
"There is a romantic notion in North American business that its future lies in design and innovation, while India and China will be the home of less skilled, lower-paying operations churning out the products and services the U.S. comes up with. It is a nifty twist on David Ricardo's seminal 19th century theory of "comparative advantage," which explained why cloudy and cool England exported woolen goods to sunny and hot Spain, which in turn exported wine to England. The problem is that the theory didn't ring true when I rode through the streets of Hyderabad, Bombay, and Bangalore on visits to major Indian companies."
If indeed there is a "creative class," it lives - and moves to - where the opportunities present themselves. With all due respect to Professor Florida, it's not simply about welcoming the creative class. It's also about offering them something compelling enough so they decide to stay. Sorry, but I see them leaving. C'est la invisible hand.
- For the record - I'm really talking to you Mary, if you were talking about me ;) - I have no problem with the "old guys," or anyone else for that matter. Hell, I'm an old guy. It's their ideas that sometimes intellectually rub me the wrong way. For example, Laura Ries - daughter of positioning - has a new post about Wal-Mart's venture into premium-priced goods. Laura pontificates:
"Will Wal-Mart suddenly be synonymous with everything from cheap detergent to rare Bordeaux? I think not. You can’t appeal to everybody. No brand can stand for everything. Wal-Mart is the world’s largest retailer. They own 'low prices' in the mind.
All the radical store improvements that Wal-Mart is planning in Texas go against the philosophy of being the place to save money. Fancy stores mean fancy prices. Plain stores mean cheap prices. The notion that there are two types of customers, low end and high end, is a fallacy. The same customers will shop in different stores for different things at different price points on different occasions."
Read it again: "Wal-Mart owns low prices . . . " Exactly Laura! That is the expectation - along with convenience - that Wal-Mart has created. It's their "brand." So, if consumers believe that they can get a Hermes bag for a much lower price at Wal-Mart than anywhere else (and they will certainly do their research), are you telling me that they'll forgo that decision because they want to be seen spending more at an upscale retail outlet? C'mon. Get real. You're not that dumb. Why do you expect them to be?
- Finally, what the hell is this? "ARF REVEALS WORKING DEFINITION OF ENGAGEMENT: In Moving From Buzzword to Industry Standard, It’s a Start" Check it out, dog (I've been watching too much American Idol). According to AdAge.com,
"Following months of trying to develop a new metric of ad effectiveness, the Advertising Research Foundation today unveiled a much awaited working definition of engagement with the hope of turning it from a buzzword to a industry-wide measurement standard.Here’s the definition as delivered by ARF Chief Research Officer Joe Plummer at the organization's annual conference: 'Engagement is turning on a prospect to a brand idea enhanced by the surrounding context.'"
Huh? Sounds like a lap dance to me. But ask any stripper what defines an effective lap dance, and listen to what she tells you.
Have a great weekend! And try to keep your mind empty, available for the entrance of new thoughts. Unlike these overloaded vehicles (thanks, Boing Boing).
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Nice.
Posted by: olivier blanchard | March 24, 2006 at 11:56 PM
I live on and off in Southeast Asia. I have noticed the same issue about India that you have except there is no creative class, a survival class certainly.
The people of India, as are the people of China, are barely holding on to their own survival let along being a competitive pit of creative juices. Someday maybe, but right now their middle class is defined by whether or not they have a television and an outlet to plug it into.
As far as Laura is concerned, well maybe Laura should stop and read her own stuff with her eyes open. I can never understand how she really believes most of it. Maybe she is trying to impress dad or is it because she is a part of the problem that is blinding the industry to the coming changes.
Damn, you ripped a big wide highway right down the middle. Until the industry decides to reinvent itself silly parlor tricks are all we will probably see. They seem so insistent in denying what the rest of the world (those who buy) already know. Customers are the new drivers.
Posted by: Tim Whelan | March 26, 2006 at 01:00 PM
I like old guys too, Tom - after all, I'm an old gal. (I can remember using carbon paper to make copies, after all) ;-)
As for Wal-Mart, well yes, they "own" low prices but that ownership is also reliant on the customer perception. Does it mean "low" or "cheap"? Do I go to Wal-Mart for diapers and Target for "cool stuff?" Do I buy Hermes as a knock-off on Canal street? Would I be caught dead in Wal-Mart if I'm a Hermes customer? And, if Hermes is in Wal-Mart, will that devalue that brand? Hmmm. Wal-mart could pull off a retro/reverse cool effect, but can they sustain that for the long haul and in multiple locations? Brings to mind when the cool super-rich were wearing John Deere gimme hats. The folks that wear those hats all the time, with no delicious sense of irony, are Wal-Mart's core customer base out there in the flyover states. Will they want to continue to shop at a store that sells expensive wine and top designer goods?)
Plano Texas (I - ack - lived there for a couple of years) does have some very wealthy neighborhoods, but it's got many John Deere-wearin' (and drivin') "good ol boy" neighborhoods as well (You don't drive into Plano thinking "WOW! These people have money!" You think, "Geez, do ya think they have enough strip malls, big box stores and crackerbox instant surburbs?")
And, to Tim's point above, based on what I read and hear - China and India still have a ways to go. China's system of government, if nothing else, could be a real spanner in the works.
And, we can't really know what's possible looking into a country, culture or company from the outside. I remember when Japan was expected to take over the world back in the 80s. So, I went to work for a Japanese company; within 90 days, I knew we had nothing to worry about (at least not then). Of course, we should never get complacent - We Americans are not inherently more innovative or superior in our thinking.
Posted by: Mary Schmidt | March 27, 2006 at 11:27 AM
Thanks Tim and Mary. Very valid points. Regarding China and India, I didn't intend to mean that they presently possess a creative class. Rather, I believe that the creative classes from the West will move there, if only temorarily, for the opportunity. Thanks for visiting.
Posted by: Tom Asacker | March 29, 2006 at 04:00 PM