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Marketing Megatrend: Simple Sells

November 2nd, 2009 @ 11:35 am

23 Comments

Categories: Best Practices, Branding, CEO, Communication, Customer Service, Entrepreneurialism, Executive Focus, Innovation, Leadership, Management, Strategy, Technology, Tips and Tools, Wisdom, Workplace

Tags: Food, Positioning, Food & Beverage, Branding, Marketing Research, Manufacturing, Marketing, Steve Tobak

Less Is MoreIt’s a hot trend and it’s here to stay. Retail marketers at Starbucks, Kraft, and Campbell have discovered that “simple” sells. Products that stress fewer ingredients - food, drinks, cosmetics, even pet food - are outselling rivals, as this USA Today story explains.

But is simple really better, or is this just another fad for health-conscious consumers, not to mention the ever-growing number of people looking for a quick fix so they can continue to gouge themselves on high-fat and sugary foods without feeling guilty? Sure, fewer additives and processing is a good thing, but three simple ingredients - butter, sugar, and flour - will kill you faster than you can say “cardiac arrest.”  

More to the point, tricking consumers with creative marketing is one thing. But will the trend extend beyond consumable products? Is ’simple’ something we should all be watching and considering in our marketing, branding, and positioning? The simple answer to that is yes. Here are …

Five reasons why you should Keep It Simple:

  1. I don’t care if your business is B2B or B2C, high-tech or high fashion, IT or HR. When it comes to positioning your product or service, the simplest way of getting across your unique value proposition - the reason why customers should buy from you and not your competitor - is always the best way. 
  2. We’re all consumers. You, me, the CEO, even the seemingly unflappable finance and IT people. We’re all consumers and we’re all subject to mega-marketing trends that invade our subconscious day and night. You can fast-forward your Tivo through the commercials all you like, but major trends like this one will sink in anyway.  
  3. We’re all stressed-out on media, product, and “choice” overload. I never thought I’d say it, but too much choice can be a bad thing. Frankly, we’re all overloaded with media and product choices. Moreover, technology adds complexity that takes time to learn. It’s nice to have one less thing to analyze and worry about. “Simple” is calming, relaxing … for a change. 
  4. I’ve said it before, In Management, Keep It Simple. That simple rule goes a long way to explaining why Apple’s Mac continues to gain market share over PCs, Carol Bartz is a way more effective CEO than Jerry Yang, and Lou Gerstner was able to restructure IBM while Jonathan Schwartz failed miserably at Sun.
  5. Simple has both left and right-brain appeal, which probably explains the other four reasons. Emotionally, we associate “simple” with easy, quick, controlled. And while we make left-brain decisions based on the perception of quality and performance, in many of those metrics - defects, moving parts, size and weight - less is more. These days we just want things to work the way they’re supposed to - no instructions, no drama, no returns.   

Last Word: To be honest, I’ve been preaching Keep It Simple in management and marketing for so long, I may not be the most objective commentator on the subject. So what do you think? Am I oversimplifying things?

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  •  
    1

    Marketing n Colorado

    11/02/09 | Report as spam

    RE: Marketing Megatrend: Simple Sells

    No, you aren't oversimplifying. Smart people know, that
    products sell better through a whisper -- than a
    $25,000,000 campaign. Simplicity sells. Think "Got Milk". "A
    Diamond is Forever." "Breakfast of Champions". "Just Do It".
    All are simple, clear and break many rules from College/Grad
    Marketing Programs and some folks wisdom.

    We are hungry for simple. Complication surrounds. Sell me.
    But sell me simply.

    I enjoy your articles Steve! Keep 'em up.

    KMM

  •  
    2

    Bob Wileman

    11/03/09 | Report as spam

    RE: Marketing Megatrend: Simple Sells

    Making complex things simple takes a lot of work and patience.
    Designers, people who know the product and sell it, often feel they have done enough to make their explanations clear and that it's up to the customer to acquire the necessary skills. Visit a web site to find this out and see the huge difference between the simple ones which make the customer feel good and those who make him feel like breaking something. Simple is only simple for the user, but it takes a lot of working out to achieve it - not simple at all.

  •  
    3

    Justjenni2

    11/03/09 | Report as spam

    RE: Marketing Megatrend: Simple Sells

    I can tell you that one of my favorite stores is Trader
    Joes and its for this very simple reason, less selection
    and simple labels. Its not an exhausting shopping
    experience.

  •  
    4

    Steelady

    11/03/09 | Report as spam

    RE: Marketing Megatrend: Simple Sells

    Simple does sell. One of the most powerful
    campaigns ever created was IBM's "Think" done back
    in the old days of advertising. Just one word "Think"
    and IBM at the bottom -- worked for them. Still works.
    Simple is it. As some of the above writer's noted,
    creating simple is not simple at all -- it takes a lot of
    work and patience, particularly in persuading clients
    when everything around them screams the opposite.
    We're way on overload in this business and as the best
    salesman and marketers will tell you "KISS!"

  •  
    5

    WealthNetGuy

    11/03/09 | Report as spam

    RE: Marketing Megatrend: Simple Sells

    Good points. I don't think you are overstating the importance of simplicity in our communications, whether B2B or B2C. With so much noise out there people are overwhelmed. Plus more and more are "dumbed-down" as they allow themselves to get left behind in a broken education model in which no one gets left behind. So simple is key because the goal is to be understood. Understood in who you are, what you offer, where the value is, and how to do business with you overall.

    But business success goes way beyond the ability to keep things simple. Apple's success has a ton to do with who Steve Jobs is, what was going on at the time he actually launched Apple, their incredible design disciplines, and their ability to identify with what the market really wants at a price millions are willing to pay.

    Check out my comments regarding the power of brand and read about Jeff Bezos ability to keep things simple at http://bit.ly/VJMLM

    Clifford Jones, founder
    WealthNet Partners, LLC

  •  
    6

    Richard Kennedy

    11/03/09 | Report as spam

    RE: Marketing Megatrend: Simple Sells

    The less sophisticated the audience for any kind of message
    is, the more that audience appreciates simplicity because
    they are incapable of comprehending a complex message.
    Conversely, the more sophisticated an audience is the more
    they too appreciate simplicity - why? because the
    sophisticated audience does not have the time to devote to
    decoding a complex message. Simple is always best - no
    matter who the audience is.

    Richard J. Kennedy
    NewClientsNow.com

  •  
    7

    mccallumcc

    11/03/09 | Report as spam

    RE: Marketing Megatrend: Simple Sells

    I have advocated KISS (Keep It Simple Stupid) since forever. I currently market and sell the senior care industry. Can you answer the question "Can you take care of my mom" with a yes? Everbody wins.

    Cheryl McCallum
    Senior Care Marketing Consultant

  •  
    8

    Deepa S

    11/03/09 | Report as spam

    RE: Marketing Megatrend: Simple Sells

    `Keep it Simple' works well not just with positioning strategies / marketing communication but with the product itself as well as the business model. Philips with `Sense and Simplicity' is on the right track I would say ... products should be simple & sensible for the customer - to evaluate, acquire, use, dispose .... the complexities should be behind the screen

    Deepa S

  •  
    9

    hishamhammour

    11/03/09 | Report as spam

    RE: Marketing Megatrend: Simple Sells

    Steve,
    Yes, consumers are looking for choices; but dose it explain
    the complexity?? I don't think so! I love the article, and
    maybe you can do another one digging deeper on the causes
    of the complexity, is it the competition in the market,
    promotions, or what exactly?
    and for all business owners, here is a KISS from me
    please do the complex "stuff" in your offices and keep it
    simple for the consumers.

    H. Hammour

  •  
    10

    mkwhitehouse@...

    11/04/09 | Report as spam

    RE: Marketing Megatrend: Simple Sells

    As most senior executives are having to do more than ever,
    with less time and resources to do it, you need to get messages
    across to them quickly and effectively.
    There is no better way to do this that with a 60-second video.
    SolutionChannels has been helping customers to do this with
    enormous effect and impact.
    check out:
    http://www.solution-channels.com/Multimedia_Service.html

  •  
    11

    SKPrasad

    11/04/09 | Report as spam

    RE: Marketing Megatrend: Simple Sells

    Spot On! Why does simplicity appeal? The answer is blowing in the wind - people have had enough of the psuedo sophistication that only muddles up their lives. KISS is the way to be.

    Sushil Prasad
    Cairn Energy

  •  
    12

    tourf00

    11/04/09 | Report as spam

    RE: Marketing Megatrend: Simple Sells

    Almost everyone will agree with your "keep-it-simple" article. The problem is that half of them have the perception that they are simplicity advocates, but are in daily reality adding useless complexity to everything, from their selling speeches to their instructions to their teams... to their advices to their children! In their mind its simple... and it's a problem of the others not to see their simplicity!

  •  
    13

    doug.eaves

    11/04/09 | Report as spam

    Tell me something I don't already know


    First, Mr. Tobin, you are not over-simplifying things. Unfortunately, you are more right (no political pun intended) than you or millions of other Americans have noticed, apparently. How else to explain the fact that George Bush served two terms, and President Obama is having to deal with the economic consequences of letting the invisible hand work its magic over the past decade or three? I'll drag up the 'megagtrend' that started with Proposition 13 in California in the 1978 election, which foretold the election of Reagan and has mutated in the most bizarre ways during the disastrous National Congresses between 1995-?, later. Although Congress has no money to spend, there is always enough for a Congressional raise or a new toy for the DoD. There just doesn't seem to be enough money to spend on what the country needs most, a better educated population. And I don't mean more money for the public schools, although they could certainly use it, but more money for public libraries. Yes, public libraries. If it weren't for public libraries, I would be working in a supermarket somewhere in the usa and trying to figure out how to pay for my wife's minor surgery and get little Jimmy a new bicycle for Christmas, as well. Or, I might just be thankful I had a job. But we had a pretty good public library where I grew up, and when I wasn't out committing misdemeanors and other acts of juvenile delinquency, I was in there reading anything that sparked my interest. It was great. I learned so much from the books and magazines and newspapers in that library, that if I were a civic-minded individual, I'd send them a donation. But I'm not, so I won't.

    Now, why didn't you tell me something I don't already know? Tell me something new. Simplicity in advertising has been around the entire span of my 49 years, and all I can see that it has done over the years is to make it possible for people with average intelligence and very little knowledge to assume positions of great importance, for which they are wholly unqualified (I'm not referring to President Obama, since he has been in office less than a year, and it's much too early to make a judgment about his tenure in the federal government's highest position, and he's obviously very intelligent). This simplification 'megatrend' that you've identified and mislabeled is very useful knowledge for advertising people and others who manipulate symbols for a living. But it seems the long-term result of this trend has been to render a significant percentage of the population in the usa incapable of finding useful information about matters of great importance, such as who to vote for, how to invest your money, what career to pursue, or a number of other situations that require important decisions be made, yet people don't have the sense, or the time, to get valid and useful information that will help them make good decisions.

    The result then is an uncritical mass of consumers, whether the product is popcorn or politicians, who make a decision based on image, feeling, and brand association. Substantive ideas seem to be missing. Decisions based on qualitative factors of taste or quantitative factors of size or appearance have replaced the rigorous thought that is needed to absorb as much information as possible about an important matter and then comparing it with alternatives according to the factors that you value most. Such a comparison requires one to use critical thinking skills because it's so easy and simple to choose something based on our taste or its size or appearance without considering the consequences such a decision might have in 5 years or 10 years.

    It appears that the 'simplification' of reasoning has permeated public discourse at all levels, as well. Not just the selection of a leader, but the creation and formation of policy, public and private, governments and corporations. This is really scary because I had assumed that people writing pieces and comments on BNet are fairly intelligent people (and this doesn't refer to your years of formal education; I've got 24 years of formal education, but the skills I learned during that time were how to manipulate people, kiss ass, and spin, none of which were part of the curriculum of my chosen field; I've known how to think critically since I was 13 years old, which often got me in trouble, and why learning the other three skills was so important).
    But based on the comments I've read in the BNet section devoted to advertising, I'd say that critical thinking skills don't seem to be such a great priority, although I read a lot of op-ed pieces a few years ago about how important it was for people to have them. Interestingly, I don't remember reading so much about that cognitive technique during the first decade of the 21st century. Hmmm.

    So, marketing gurus have figured out that ads, as well as well as public discourse of complex matters, can be reduced to sloganeering. That is very old news. This has been occurring throughout my entire life. But you're writing about business, so what does politics have to do with it? Everything. You don't have one without the other in an advanced civilization, or even in traditional cultures in the Amazon Rain Forest. There is a field of knowledge called political economy that could help explain why the 'megatrend' of simplification is not limited to advertising, or business, or even just the economy, but in fact reaches nearly every public sphere of behavior and is even embedded in our social institutions of politics (to be distinguished from government or law), religion, education, the arts, popular entertainment, among others, at least for consumers of these 'products (however, there is an opposite trend in health care, legal services, financial services, oops, for reasons that are fairly obvious to me).

    That's not to say that the usa doesn't still produce some of the finest innovations in commercial and industrial activity in the world and also has an economy that provides greater opportunity for the would-be entrepreneur than any other advanced economy, but at the same time there is a definite lack of critical reasoning (or its analogue as netwealthguy says, 'a dumbing down') among the general population of the US. It's just an indirect assessment, certainly open to debate, since I have no data and haven't even lived in the usa for the past 12 years.

    But the fallout from the passage of Proposition 13 in the 1978 California election started a 'megatrend' toward reducing taxes at every level of government (not including the 'social security tax' which continued to rise for those making under 50 or 60K a year). In 1974, for cosmetic purposes, the Business Roundtable was created to put a 'human face' on big business in the usa, and/or to try to figure out how to improve their profits and share prices. Around that same time, 'Conservative' think tanks were created and/or funded, by Richard Mellon Scaife among others, to produce studies that would empirically show the superiority of the private sector in relation to the public sector. Studies conducted in different spheres of human activity, economic or otherwise, were done since the fellows at those think tanks could reduce nearly every form of human interaction to that of a market transaction, in which decisions about the transaction were assumed to be based on complete information about the item of exchange, at least in theory. I wonder if the Libertarians, neo-Liberals, and neo-Conservatives who were employed by those institutions back then imagined that in a little over 20 years prison services and anti-insurgency operations in distant countries would be privatized? Probably didn't matter since they already knew that 'the market' was the superior forum for human interaction, even for public sector activities that had little connection to commerce or industry, as those terms are commonly understood.

    Market behavior is much easier to quantify and produce 'empirical evidence' to support one's position, whatever that position happens to be, compared to a study in which humans are thought capable of making decisions based on factors other than economic ones. So, as the commenter above who assumes that a 'sophisticated' audience (why can't he just say 'wealthy' since that's obviously what he means: you never hear anyone say, 'if you're rich, why aren't you smart?' but its opposite is commonly heard, thus my assumption he's referring to one's bank balance and not intelligence quotient) prefers simplified advertising because they are too busy reaping the rewards of selling CDOs to suckers, I would suggest that they spend a little more time outside of their specialized field of knowledge. They might be able to broaden their knowledge and and perhaps avoid disastrous decisions, from the individual level up to the national level, if one were so inclined. Of course, this could put some people in situations where a conflict of interest is involved, in which case they may benefit from such a catastrophe and remain a 'sophisticated' audience, after all. How's that for econimicus reductio ad infinitum?

    So, your article is actually very good and very true. And that's what's so sad. Media types have known for years about the power of simplicity when presenting X for a market (an excellent source for a political version of this phenomenon is The Selling of the President 1968 by Joe McGinniss). So, this isn't even anything new when advertising a person as a product, much less goods and services. One need only scan through Taschen Publishing's The Golden Age of Advertising - The 60s - 'Sears has gone wild!' 'The Private World of Thunderbird' (the car, not the fortified wine), 'Cinzano imported, of course' 'Folk Rock Is A Drag' (Hagstrom Guitars with a photo of Frank Zappa), 'What's got into Tang?' and the list goes on, in which the ads are paragons of simplicity. But one difference I've noticed between then and now. Some of the ads from the 60s actually have fine print taking up about an eighth of the ad space in which information is supplied, voluntarily, and in tiny print, so one can waste more time if desired. And it's written in English rather than industry jargon. In other words, there was at least a little respect shown for those who were literate, but not specialists, and didn't mind reading some copywriter's spin about a new product or service. Those hacks were actual writers rather than bureaucratic technicians whose jobs involve providing words about a product or service because the government says they must do so (please see the reference to health care, legal, and financial services above).

    During my infrequent trips to the usa to visit, I had the misfortune of watching a TV commercial for a pharmaceutical product. Besides the hilarity of imagining someone actually reading and understanding all those words at the bottom of the screen, a strange sense of deja vu overcame me. And it was the fact that the physical design of those TV commercials that must put information about their product in tiny letters at the bottom of the screen approximate the physical design of the ads from the 1960s. Most of an ad is filled with the visual message in which the product is shown to attract consumers who might buy the product, while at the same time they provide content for those who might have nothing else to do and decide to read it. And if they had magnifying glasses, they could have read it because it is print. It is not going away in 15 seconds so some celebrity in need of a paycheck can come back on the screen and do whatever it is that must be done to earn that paycheck.

    The tiny print is long gone, and unless you have a computer and Internet connection you might not get the chance to read tiny fonts until they are shown again and you happen to be watching TV at that time and also have your magnifying glass in your hand so if it does come back on and you can move your aching body quick enough, you just might be able to read half of it if you're an honor graduate of the Evelyn Wood Speed Reading Course. And listening to the voice reading those words, is like hearing the Chipmunks sing Christmas carols after doing a bit too much methamphetamine. It's funny, but it might as well be nonsense, since no one could possibly comprehend what all those words mean when spoken at that speed.

    So, life in the usa hasn't gotten any more complex than when I was a kid in the 1960s. But the number of tasks one is expected to complete in X amount of time has increased greatly. Which in effect, makes it feel like life in the usa is more complex, when in reality, you've simply taken the goal of efficiency to its ultimate extreme in most areas of human behavior resulting in a very complex world, not due to increased difficulty of the tasks, but due to the greater number of tasks one is expected to complete in X amount of time. And why do you have to do that? So, you can earn more money, of course, but even more importantly, so you can make a greater contribution to the profitability of your employer. I love the market, don't you? I'm retiring at 49 years old. What a great system.

    And thank you Mr. Tobak for the confirmation of my own suspicions about this phenomenon of simplification in today's complex world. But next time, please tell me why people allow this to happen to them because it's a mystery to me. I've done what I wanted to do and when I wanted to do it, starting with nothing after getting a BA in 1981 and an MA in 1990. I never even worked in business. And now I can retire in India, where I've always wanted to live, just because I kept all my savings in Japanese yen over the past 12 years. Now that's simple.

  •  
    14

    asifliaqat

    11/04/09 | Report as spam

    RE: Marketing Megatrend: Simple Sells

    I dont agree with Steve that "keeping it simple" strategy is
    true for all products.

    When we talk about high involvement goods, keeping it simple
    may contribute to brand equity but the consumers making
    purchase decisions, need to know what he is paying for; does
    the product attributes meet his needs or not; he checks out
    the specs and also compares between products. Consumers
    mostly takes time select from the choices he had. But the
    example of APPLE as mentioned in the article, that apple's
    simple strategy giving them more market share, might not be
    an appropriate example because there are also other factors
    that contribute to their increasing market share i.e.
    innovation, first movers advantage etc.

    Keeping it simple strategy might be true for low involvement
    FMCG products; where product differentiation is pretty low,
    because in these cases, consumer mostly relies on instincts
    or convenience.

  •  
    15

    Steve Tobak

    11/04/09 | Report as spam

    Simple Sells in "high involvement goods," too

    asifliaqat: Thanks so much for bringing that up. It's a good point but I couldn't disagree more. In fact, my expertise - if I do have one - is in high-tech or what you call high involvement goods. And the challenge these days - for Apple and others - is to use innovation to simplify these complex products so they're easy to use and effective in doing whatever it is the customer bought them to do. Apple's products are gaining market share because they do wonderful things simply and intuitively. You don't need to compare specs to buy an iPhone over another smart phone or a Mac over a PC. Just try it. It works. It's easy. It's simple. That's the result of breakthrough innovation.

    I look forward to the day when consumers no longer have to compare dozens of specs in high-tech products. Cars are a good example: 0-60, MPG, then it's really all about the driving experience and how it looks. Simple. Intuitive. That's why BMW is paying for maintenance. One less thing for consumers to worry about.

    Marketers are getting the message across the board.

    Steve Tobak

  •  
    16

    asifliaqat

    11/04/09 | Report as spam

    Re: Simple Sells in "high involvement goods," too

    Well Steve i am just a fresh business graduate and do not
    have much experience of the industry but according to the
    findings of my thesis i came to the conclusion that in high
    involvement goods, there are many factors which contribute
    to the purchase decision. Apple products capturing major
    market share, like iphone because it was the first scratch
    proof touch screen cell phone with various sensors (thats
    innovation leading to first movers advantage) these
    attributes still not completely imitated by any cell phone
    manufacturing company. It still sell like hot cakes even
    though its not very simple in functionality (I know this
    because i own one).

    And i dont think purchasing a car is an intuitive decision
    based on a simple campaign, like "I want to change my car,
    lets purchase a BMW." At least its not like this in Asia.

    But doesn't mean that i totally disagree with you, as i
    mentioned in my previous comment that simplicity do adds to
    brand equity (increase brand recognition, increase recall and
    facilitate the consumer in short listing the alternatives) but
    its not the only factor leading to a purchase.

  •  
    17

    TiaJosephCSP

    11/04/09 | Report as spam

    RE: Tell me something I don't already know

    Doug: You should practice keeping your comments simple. I didn't actually read it all (because it was too long). But you might have got your point across with a quick, short, simple message. Just a thought.

  •  
    18

    anurodh_sharma1@...

    11/04/09 | Report as spam

    RE: Marketing Megatrend: Simple Sells

    No. You are not simplifying or oversimplifying. Its true that KISS. keep it short & simple has been said so often that self doubts about its merits may have diluted or appear to have been too often.... but this does not mean that an excellent food like mother s milk any less useful or lose its apeal.

    All the best & please continue the good work of simplifying life as its getting pretty complicated as it is.

  •  
    19

    Steve Tobak

    11/04/09 | Report as spam

    BNET Readers

    You know, I've been blogging for BNET for a year now, and I have to say you folks are really on the ball. It's truly rewarding for me to converse with such an informed and opinionated audience.

    Just wanted to let you know.

    Steve Tobak

  •  
    20

    ok2eme

    11/05/09 | Report as spam

    RE: Marketing Megatrend: Simple Sells

    The "Jitterbug" cell phone comes to mind...

  •  
    21

    tricia49417

    11/07/09 | Report as spam

    Starbucks Forgot Simple

    Starbucks original genius was simple and organic: Offer consumers an exceptional cup of joe in a comfie setting.

    Starbucks now offers a spectrum of fair trade and/or organic coffees and coffee beans, cold and hot non-coffee beverages (including "ethos water"), pastries, ice creams, sandwiches, snacks, CD's, beverage accessories, wi-fi access, holiday and seasonal specialty products, and a cheerful and knowledgeable barrista to help you with your consumer experience. Yikes! Starbucks is experiencing diluted market share...

  •  
    22

    Mark Allen Roberts

    11/08/09 | Report as spam

    RE: Marketing Megatrend: Simple Sells

    When you clearly understand the problems your market has, and how your product or service solves them the message connects effortlessly.

    Complicated, lazy, marketing is for products that lack a clear and obvious position.

    Mark Allen Roberts

  •  
    23

    mukeshp

    11/10/09 | Report as spam

    RE: Marketing Megatrend: Simple Sells

    Simplicity is the best; as Mark Allen Roberts notes, if you understand the market's problem and how your product solves the problem (usually business related in B2B), then the messaging is simple.In B2C, providing a product with a wow factor (such as iPhone, iTouch) also benefits from a simple message/slogan.In this case, brand sells, as do luxury cars such as BMW (just because this was mentioned earlier). These are usually low involvement; consumers have already made a decision to purchase and only a bad experience (eg test drive) would deter them.

    So whilst these are low involvement, I've seen high involvement in cases where there is little product differentiation (comparing feature for feature etc). This is where brand building and product differentiation comes into it's own; for example Dyson which has a simple message based on diffentiation and continues to differentiate with new unique features. Differentiation gave it entry into a mature market, which it siezed and built the brand image. Provided the products meets the demands of the market, then brand will help to sell.
    Perhaps in markets where no one product stands out, high involvement maybe the default approach; these markets usually come down to the lowest common demoninator - cost! But even here, simplicity is best; what are the benefits to the consumer/customer?

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