Call in the experts, Taco Bell

By Katie Lombardi

Thank you for suing us.

You just read the first line in Taco Bell’s rebuttal to a class action lawsuit that claims the fast food chain doesn’t use real beef in its tacos and burritos. Last Friday, Taco Bell hit the public with a massive ad campaign to make it clear to the people who are suing them: "Not only is your claim a lie, but guess what? We are going to sue you!"

Public relations professionals know that in most cases it’s better to respond than to say nothing at all. Taco Bell’s tongue-in-cheek ad will certainly grab the attention of consumers but will it convince them that the Bell's seasoned beef is really 88% beef and 12% secret recipe?

I am not convinced. However, I don’t typically eat at Taco Bell so the lawsuit and its allegations aren’t changing my behavior. Taco Bell probably shouldn’t worry about consumers like me anyway. But for those customers who are actually raising an eyebrow at the idea that its meat filling is a mixture of oats, ground meat, and whatever else is thrown in there, it’s time to call in an expert. Edelman just released the results from its 2011 Edelman Trust Barometer, which show Americans don’t want to hear from “a guy like me” (think Jarred from Subway). They want to hear from a trusted expert. Americans want a response from the CEO of a company or someone who has substantial credentials and authority.

My advice to Taco Bell: Hire a team of food scientists to test and confirm that your beef is really beef. And if you can’t back up your claim then it’s time to be more transparent with the public. It’s difficult to sound believable when you’re the second guy to scream foul. It’s turning into a “he said, she said” game and for people who do care, Taco Bell should do more than just run a snarky ad campaign.

But again I have to ask, do people really care and why? You’re eating Taco Bell, not buying organic groceries at Whole Foods. Are you really that surprised?

Katie Lombardi is a student in the Masters in Integrated Marketing Communications program at Northwestern University’s Medill School and can be reached at katherinelombardi2011@u.northwestern.edu.

The science of marketing: What makes IMC different

By Daniel Hindin

What is IMC and how is it different than traditional marketing? We Medill IMCers get this question a lot.

Part of what sets our graduate program apart is the diversity of knowledge we develop. By the time I graduate this December, I expect to have taken courses in five subject areas: Branding & Advertising Strategy, Media Management, Direct & Interactive Marketing, Marketing Analytics and Corporate Communications & Public Relations.

Though marketing is both an art and a science, I find that most people only think of the art, the right-brained side, the creative message. Marketing agencies have long had the reputation as a place where you hole up a bunch of creatives until they come up with the magic message that will get your product flying off the shelf.

It turns out there’s a lot more to it than that. Sure branding and corporate communications are important tools for any well-rounded marketer. That’s where the message is ultimately formed. But making decisions within those areas should be far more than the gut instinct that determines the fate of too many marketing budgets.

The science, the left-brained part of marketing, is what should drive any smart marketer’s decisions. This is where hard data comes into play. Who’s spending? When? On what? Do the profits from each customer exceed their costs? Yes? Well, these are the people to target with your messages. No? Then they’re just costing you money.

Once you know who your ideal customer is, you can take the data a step further and figure out what types of messages spur them to action and in what form those messages can be delivered most effectively. Through analytic tools such as multiple regression, cluster analysis and factor analysis, you can figure out what is likely to work and why.

Now you’re on your way to understanding how to deploy your creative team. Marketing will always be part art. But when you start to use data to form the basis of your art, that’s where science comes in. That’s how you get results. And that’s how you speak the language of the CFO and other budget decision-makers.

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Daniel Hindin is Managing Director of Vitamin IMC and a student in the Masters in Integrated Marketing Communication program at Northwestern University’s Medill School. He enjoys using as many different parts of his brain as possible. You can reach him at DanielHindin2010@u.northwestern.edu.

AmEx's Data Mining Techniques Spook Its Customers

One distinguishing feature of IMC is its strong emphasis on data analytics. Now more than ever, quantitative insight and analytical skills are essential tools for gleaning meaningful consumer insights from the overwhelming surfeit of consumer data that most large corporations possess.

As both a marketer and a consumer, I find these treasure troves of data both exciting and somewhat terrifying. Last week at Davos, Richard Edelman bemoaned the general erosion of trust in corporate entities, and to be sure, this is a critical issue for IMC as well. Analytical skills are important, but being able to build relationships with consumers based on mutual trust is what ultimately builds shareholder value over the long term.

In this volatile economic climate, then, consider this New York Times article from January 30 that revealed American Express’ targeted rate increases for cardholders who used their Amex cards at specific establishments:

The question, then, is how much of the data they can use before spooking their customers. Kevin D. Johnson, a 29-year-old Atlanta resident who runs a marketing and communications firm, received a letter from American Express last October saying that his credit limit was being lowered. One reason was that other customers who had used their cards at places where he had shopped were late in paying their bills.

Read the full article at the New York Times.

UPDATE: After Good Morning America picked up this story, American Express clearly felt the sting of the bad P.R. of this data mining technique, and announced that it would stop the practice.

Does this practice take regression too far? Is there a line between “choosing your best customers” and outright discrimination? Would this policy incite you to choose a different credit card company?

We'll keep an eye out for future stories about issues in marketing ethics. And send us your suggestions!

-- Colleen Maley