Coyote Blog

From Mickey Kaus:

Democratic blogger Ezra Klein appears to be positioning Dem health care reforms as a way to cut costs, on the grounds that a reformed system will be able to make "hard choices" and "rational" coverage decisions, by which Klein seems to mean "not providing" treatments that are unproven or too expensive--when "a person's life, or health, is not worth the price." Matthew Yglesias' recent post seems to be saying the same thing, though clarity isn't its strong suit. (He must have left it on Journolist.)

...

The "rational," cost-cutting, "hard-choices" pitch isn't just awful marketing--I don't even think it's accurate. Put it this way: I'm for universal health care in large part precisely because I think the government will be less tough-minded and cost-conscious when it comes to the inevitable rationing of care than for-profit insurance companies will be. Take Arnold Kling's example of a young patient with cancer, where "the best hope is a treatment that costs $100,000 and offers a chance of success of 1 in 200." No "rational bureaucracy" would spend $20 million to save a life, Kling argues. I doubt any private insurance company is going to write a policy that spends $20 million to save a life.  But I think the government--faced with demands from patient groups and disease lobbies and treatment providers and Oprah and run, ultimately, by politicians as terrified of being held responsible for denying treatment as they are quick to pander to the public's sentimental bias toward life--is less likely to be "rational" than the private sector.

That is to say, the government's more likely to pay for the treatment (assuming a doctor recommends it). So it's government for me.

He comes oh-so-close to getting it right, but then falls short.

Klein is right that the pressure will be to ration care -- we already see such rationing being seriously considered in Massachusetts (the model of choice for Democrats) under the weight of massive expenditures.

But Kaus is correct that if some high-powered and well-funded interest group gets behind a certain procedure, cost-effective or not, the government overlords of the program will likely approve it.   As a result, for example, no potential treatment for breast cancer will ever be denied given the proven strength of women's groups lobbying for breast cancer treatment (already, breast cancer research is hugely over-funded vs. other diseases given its mortality, due in large part to this powerful lobbying).

But it is not one dynamic or the other.  Both will exist.  There will be huge pressures to cut back somewhere, as costs skyrocket.  And there will be huge pressure from certain interest groups to fund treatment for certain diseases in unlimited amounts.  The result will not be, as Kaus posits,  that everything will be funded more than it is today -- the result will be that certain procedures and conditions with strong lobbying and political muscle will get funded more, with the difference being made up from cutting funding for conditions and procedures without a well-organized lobby.

Access to care will no longer be determined by money, but by political pull.  (Yeah, I know, it's Ayn Rand's world and we all just live in it).

On September 12 last year, I linked an article in the Arizona Republic that I declared to be ridiculous wishful thinking on the part of the author, completely disconnected from how people have responded to price changes in the past:

The worst oil shock since the 1970s has put a permanent mark on the American way of life that even a drop in oil's price below $100 a barrel won't erase.

Public transportation is in. Hummers are out. Frugality is in. Wastefulness is out....

As prices come falling back to earth, Americans aren't expected to drop their newfound frugality. The jarring reality of $4-a-gallon gasoline stirred up an unprecedented level of consumer angst that experts say will keep people from reverting to extravagant energy use for years to come - if ever again....

"I see a permanent shift," said Kit Yarrow, a consumer psychologist at San Francisco's Golden Gate University who has studied how high oil prices have affected Americans' buying behavior. "Historically, when gas prices come down, people use more. But we've learned a lot of new things during this period and it will be hard to go back to our gas-guzzling ways."

Thank God for consumer psychologists.  From the LA Times last week:

Americans have cut back on buying vehicles of all types as the economy continues its slide. But the slowdown has been particularly brutal for hybrids, which use electricity and gasoline as power sources. They were the industry's darling just last summer,  but sales have collapsed as consumers refuse to pay a premium for a fuel-efficient vehicle now that the average price of a gallon of gasoline nationally has slipped below $2.

"When gas prices came down, the priority of buying a hybrid fell off quite quickly," said Wes Brown, a partner at Los Angeles-based market research firm Iceology.

Prices matter.  Nearly every other form of communication, from advertising to public education to presidential fireside chats to go-green guilt promotion campaigns pale in comparison to the power of prices to affect behavior.

Postscript: I studied a lot of marketing in business school and was a marketing guy for years in corporate America.  I wonder how a marketing guy and a "consumer psychologist" differ?  The only differences I can think of are 1) a marketing guy's pay will suffer over time when he is this wrong and 2) I found in marketing that bringing facts to the table often yielded better forecasts than simply applying my personal biases and wishful thinking.  About 10 seconds of looking at how consumer focus reverted away from conservation after the oil price collapse in the 1980's might have given these guys a hint.   Particularly since the price shock of 2008 was far shorter and less severe than the shocks of the 1970's.  Here is my measure of gas price pain (I have not updated it for the recent price collapse):

Apparently for some reason having to do with screw-ups and protests in contracting, the State of Arizona is not going to publish a Visitor's Guide.

I run a decent-sized business in Arizona, and have never paid much attention to these guides.  Every state and city and town and county and school district seems to put out some kind of visitors guide, and I could go bankrupt paying for ads in all the ones who hit me with marketing calls.  Customers have a jillion ways to find out about our business, either from Internet searches or private guidebooks and directories.  Heck, when I travel, I usually hit places like TripAdvisor and then run down to Borders to pick up whatever Fodor's guide covers my destination.  I have never even thought about calling the government and asking them to send me a visitors guide, but perhaps some of y'all have.

Anyway, what do I know?  I am just a little small business trying to run a few campgrounds.  Just because I can handle my own marketing needs doesn't mean that billion dollar multinational hotel chains are capable of doing so without the government:

Greg Hanss, director of sales and marketing for the new InterContinental Montelucia Resort and Spa in Paradise Valley, couldn't believe it. "For me, the fact that we don't have a state visitors guide in what is the most challenging economic time of our tourism lives is really disappointing."

Pathetic.  It is interesting to see that, for every 20-something anxiously awaiting the government's takeover of healthcare because they are really bummed about all the work it takes to find the right health care plan, there is a corporation waiting for the US govenrment to do its work for them.

Hostess Twinkies are becoming the latest product remade and repackaged into 100-calorie snack packs

No word on how small they will be.  This had to be one of the great marketing blinding glimpses of the obvious:

Hostess launched its 100 calorie cupcakes in 2007, but held off on making a version of the Twinkie because the product was a favorite overall, not just among those looking for low-cal options

Get out of town.  Who would have thought that Twinkies were not a favorite for those looking for low-cal options.

Would an oil company get roasted for this or what:

Call it a soybean spat. The University of
Minnesota isn't going to receive any research funding from the state's
soybean growers council until the two parties have a heart-to-heart
talk next week.

The Minnesota Soybean Research and Promotion Council voted to
temporarily suspend its financial support after a study co-authored by
U researchers in the journal Science said increased use of biofuel
crops like corn and soybeans could worsen global warming, not lessen
it.

The council typically picks up the tab for $1 million to $2
million a year for research on such things as how to increase soybean
yields and how to improve marketing, said Jim Palmer, president of the
Minnesota Soybean Growers Association.

The funding relationship has gone on for decades and was good until now, both the growers and the university said.

The study, published Feb. 7 by the University of Minnesota and
the Nature Conservancy, an environmental advocacy group, warned that
converting prairie or peatland to cropland for corn and soybeans would
release more carbon stored in plants and the ground as carbon dioxide,
the main greenhouse gas that contributes to global warming.

My dad is a University of Iowa grad and has tried for years to get them to demonstrate a higher quality of scholarship around the ethanol issue.  Good freaking luck.

OK, perhaps it is a guilty pleasure, but I enjoy downing a couple of Mike Hard Lemonade's on a hot afternoon.  Now, it seems, the Food Nazi's at the Center for Science in the Public Interest want to stop me"

Public Citizen's blog announced that CSPI
plans to sue the beverage sellers, asking for disgorgement of profits
from flavored malt beverages, unless they agree to take them off the
market. Their theory? By making flavored alcoholic beverages that taste
good, they are effectively marketing to children. (Because, after all,
adults don't like beverages that taste good.)

TJIC points out a dynamic in coffee houses I have also observed at work among restaurants:

"¦Strange as it sounds, the best way to boost sales at your
independently owned coffeehouse may just be to have Starbucks move in
next-door.

That's certainly how it worked out for Hyman. Soon after
declining Starbucks's buyout offer, Hyman received the expected news
that the company was opening up next to one of his stores. But instead
of panicking, he decided to call his friend Jim Stewart, founder of the
Seattle's Best Coffee chain, to find out what really happens when a
Starbucks opens nearby. "You're going to love it," Stewart reported.
"They'll do all of your marketing for you, and your sales will soar."
The prediction came true: Each new Starbucks store created a local
buzz, drawing new converts to the latte-drinking fold. When the lines
at Starbucks grew beyond the point of reason, these converts started
venturing out - and, Look! There was another coffeehouse right
next-door!

One wonders if smaller niche book stores, who complain about Borders and Barnes & Noble, have had any similar experiences.

As to the part about "When the lines
at Starbucks grew beyond the point of reason," I can say from my limited observations as a non-coffee drinker that there are a lot of things wrong with the Starbuck's model, particularly vis a vis lines.  First and foremost seems to be that their production process doesn't make a lick of sense.  I'd have been laughed out of the room in almost any operations course if I had proposed the production process they use to deliver coffees.  At some point, people are going to realize that waiting in lines does not have to be part of the coffee experience, and then Starbucks is in trouble. 

For years, the Einstein's Bagels near me had the worst production process I had ever seen.  People had to criss-cross one another constantly behind the counter just to complete one order, and the assembly line, from ordering through payment, always had a horrible bottleneck somewhere, thought the bottleneck moved around as they played with staffing.  Every Saturday morning the line and wait would be awful.  I pretty much had given up on them when they suddenly closed for three weeks.  When they reopened, they had a new layout behind the counter, new electronics, and a whole new process.  Since then, I have never seen a line longer than 2 people even in peak periods.  And look at Southwest Airlines.  They have reinvented their boarding process for about the third time  (and I like the changes).  Is it really possible that no one at Starbucks has thought about re-engineering the coffee delivery process?

We are rapidly coming up on the first anniversary of Vista, and it has been a very rocky year for Microsoft.  New releases of an OS are always difficult, but many users have really turned up their nose on Vista.  My experience has been much the same as everyone else's:  Applications run slower in Vista (I know because I had a system set up to dual boot and A/B tested a number of applications).  Networking, particularly wireless networking, is much less stable than in XP.  Good drivers STILL don't exist for many legacy hardware devices, including may graphics cards.  I ran into any number of quirks.  The most irritating for me was that a laptop communicating with a printer via wireless network would lose connection with the printer every time the laptop was shut down in a way that could only be rectified (as confirmed by MS customer support) by reinstalling the print driver every time I wanted to use it.

Most computer NOOBs probably never noticed, not having anything to compare Vista with and only using their computers for a narrow range of functionality (ie email and internet browsing).  However, many of us who are more comfortable with computers and who rely on our computers as an important tool have either avoided buying Vista computers (Dell, for example, still sells a lot of XP computers) and/or have taken the time to roll back their Vista to a dual boot system or even XP only  (which I explain here).  Which may explain why standalone XP packages are better sellers on Amazon than Vista.

For gamers, most of whom tend to be power users, Vista has been nothing but a negative, slowing games down and requiring use of buggy graphics card drivers (Microsoft crows that they get fewer customer service calls on Vista than XP, which may be, but I can gaurantee, from browsing gaming boards, that gaming companies get swamped with Vista calls from gamers who can't get the game to run on Vista). 

Looming over all of this, though, has been one word:  Crysis.  Gamers have been lusting after this game for over a year, with its promise of knock-out graphics and game-play.  To this end, Microsoft did something clever.  It updated its DirectX graphics engine in Vista to revision 10, and included in it all kinds of new capabilities that would really make a game look fantastic.  MS decided, either for technical or marketing issues, not to ever release these features on XP.  If you wanted DirectX 10 games, you had to upgrade to Vista.  Over the last year, graphics card makers have been releasing hardware to support DirectX 10.  Crysis was set to be the first game that would really take advantage of DirectX 10, and many hardcore gamers upraded to Vista solely on the promise of running Crysis maxed out with the new DirectX 10 features.

Well, Crysis was released a few weeks ago.  You may think I am building up to say it sucked, but just the opposite is true.  It is absolutely fantastic.  Easily the most visually stunning thing I have ever seen running on my PC.  First-person shooter games are not really my favorite, but I have thoroughly enjoyed the game.  (here is a trailer, but unlike most trailers, the game really looks like this in gameplay, maybe better due to limited resolution on YouTube.)  Click below for larger screenshots:

But here is the interesting part.  I keep my system state of the art.  I have close to the fastest Intel multi-core processor currently made running with two of the newest Nvidia graphics cards (8800GT's) running ganged together in SLI mode (don't worry if you don't know what all that means, just take my word for it that it is about as fast as you can get with stock components and air cooling). Crysis, like most graphics games, can have its settings changed from "low", meaning there is less graphics detail but the game runs faster, through "med" to "high" and "very high".   Only in the latter modes do the new features of DirectX10 really come into play.  So I ran the calibration procedure the game provides and it told me that I needed to set the game to "medium!"  That's not an error - apparently everyone else in my position who have a large monitor with high resolutions had about this experience.  I can set the game to higher modes, but things really slow down.  By the way, it still looks unbelievably awesome on Medium.

The designers of Crysis actually did something kind of cool.   They designed with Moore's law in mind, and designed the highest game modes for computers that don't exist today, but likely will in a few years.  So the game (and more importantly the engine, since they will likely sell the engine as a platform for other game makers to build their games atop) has some built-in obsolescence-proofing.

But lets return to Vista and Crysis being billed as a killer app.  As it turns out, none of the directX10 features are really usable, because no one can turn the graphics engine up high enough with their current hardware.  Worse, in a game where users are trying to eek out any tweek they can to improve frame rates and graphics speed, Crysis runs demonstrably slower on Vista than XP.  Finally, those who have run the game in its higher modes withe DirectX 10 features (presumably at the cost of low frame rates) have found the actual visual differences in the DirectX 10 graphics to be subtle.  The game boards are a total hoot, as folks who upgraded to Vista solely for Crysis are wailing that their experience on Vista is actually worse than on XP.

Today I was in Times Square and, unsurprisingly, was approached on the street by a young huckster attempting to get me to check out his establishment.  However, I was floored to see what was in the building.  In an attempt to meet a strong public need (the city of New York has been debating the lack of public restrooms for years to no effect) and to gain some marketing exposure, P&G has leased out storefront space in Times Square to open a Charmin-branded public restroom.  It is truly an odd experience, a cross between a bathroom and a Disney attraction.  There are games and entertainers and a gift shop, and, of course, twenty very nice private bathrooms that are cleaned by the staff after each use.  All my son and I could think to say when we were done was "We love America."

Here is more on the bathrooms and the promotion, open just for the holidays.

Someone has also posted a Youtube video of the entire experience:

Update:  After visiting again, I can't shake the parallel (despite the fact that these bathrooms are free) to the public restroom company in Snow Crash.  I know there are a lot of folks who rebel against the cyberpunk genre, and I have always been more of a space-opera traditionalist (Foundation, Mote in Gods Eye, Louis McMaster Bujold, Hyperion, etc.) but over time Snow Crash may well become my favorite Sci-fi book.

$400,000

Amount the University of Michigan paid Appalachian State to come up and kick its ass.

Postscript:  I remember a while ago there was a item on eBay where you could pay a guy to come to your house and kick your ass.  The whole marketing pitch was hilarious, but I remember the final price was a lot less than $400,000.  Update:  Found the eBay item archived here.

James Dean, reader of both my blog and my book BMOC, sent me a great article about several companies that are pursuing business models surprisingly close to the one I made up for BMOC in my book.

Quick background:  In my novel, I imagined that the company BMOC had recruited the most popular kids at a number of high schools -- kids who were true social opinion makers, so to speak.  I posited that BMOC monetized these relationships by 1) Helping clients of BMOC in the same school become more popular and 2) Seeding these kids with free products (video games, cosmetics, etc.) which would cause other kids who followed their example to go out and buy the same products.  The free products both paid the popular kids for their consulting work helping to make BMOC clients more popular, and acted as a guerrilla marketing tactic for the companies that sell these products.  (The section of the novel explaining the business model in detail is here).

Well, I have not seen anyone pursuing part 1, but apparently a number of companies are pursuing part 2:

Shoppers will be given the opportunity to test products or
services, share them with their friends and, all being well,
recommend them to a wider audience - without a cent being spent on
traditional advertising.

One company, Yooster, predicts it will have 50,000 "influencers"
- the marketing moniker for trendsetters and mavens - on its books
by June, ready to spruik a client's wares solely for the social
kudos of getting the product before it hits the shelves.

The chief executive and founder of Yooster, Piers Hogarth-Scott,
said: "If you are a 20-year-old girl at university and you get the
latest lipstick from Gucci months before it is out on the shelves
and you are able to give it to your friends then you are going to
look good. That gives you immense [social] currency."

You can buy BMOC at Amazon.

This is an offer to other bloggers out there.  I still have some marketing budget left, and would be happy to send out a few more free review copies of my book BMOC.  Just email me at Coyote -at- CoyoteBlog -dot- com with your name and address and the web address of the blog you write for and I will send you a copy.  I reserve the right to cut the list off if it gets too expensive long.  I would especially love to hear from bloggers who have supported this site from the early days.

All I ask is that you actually think you might read the thing if you ask for one.  I don't require that you write about the book as a pre-condition.  You will write about it or not just like you have linked this site -- if there is something worth talking about, I am sure you will do so.  If not, well I'm a live-and-let-live libertarian, so that's cool too.

By the way, I am going to serialize the first several chapters on the blog in the coming days and weeks, so everyone can get a taste.

A number of years ago, when I was in marketing for the commercial aviation business at AlliedSignal (now Honeywell), I made a lot of presentations to folks that they shouldn't bet the farm on the Airbus A380 because it made no sense.  I didn't think it would ever get built.  Well, very few people in the aviation business wanted to hear this.  Most people in aerospace are airplane guys first, and business guys second.  They wanted this plane to be built and longed to be a part of it.  I left before everything was finalized, but my sense is they went off and spent tens of millions of dollars to develop products for the A380.

Well, I was right and wrong.  The plane still makes little sense, but it will get built. Maybe.  Someday.  What I underestimated in the latter question was the willingness of European governments to push the plane against the headwind of economic reality merely as a grand salve for the European ego.

What was wrong with the plane is still wrong now.  The original logic, which the company still parrots today, was that airport congestion would require larger and larger planes.  If airports are at capacity, in terms of the number of planes they could handle, the planes have to get larger, right?  Well, no.  The problem with the larger plane is that the FAA and other air transport regulators will require the larger plane to have larger spacing with trailing planes  (the larger the plane, the more they create turbulent air and very stable wingtip vortices that pose a danger to trailing planes).  In fact, regulators are going to force double or triple the spacing behind the A380 that is required of the 747.  How does the plane help congestion, then, if it holds twice the people but takes up three times the landing capacity?  Answer:  It doesn't.  The same arguments can be made where gate space is at a premium - loading and servicing times for the plane can be expected to be twice as long as a regular plane, so in effect it takes up double the gate capacity.

Glenn Reynolds links to this Popular Mechanics article covering this ground and more on the A380.

Postscript:  The alternate strategy to deal with congestion is to start to abandon the hub and spoke system and move to a point-to-point flight network using smaller planes and involving more airports.  This takes connecting traffic out of overloaded hub airports.  Its the way the market has been moving, with competitors like Southwest and JetBlue developing point-to-point networks.  Asia may be the exception to this development, and it is no accident most A380 orders are Asian airlines.

While I am patting myself on the back, I also said that the Boeing Sonic Cruiser made no sense.  The engine and body/wing technology that would make the Sonic Cruiser could either be applied to generate more speed at constant fuel consumption or to achieve current speeds at greatly reduced fuel consumption.  I predicted that 10 out of 10 airlines would prefer the latter.  And that is the way it played out, with Boeing dropping the Sonic Cruiser, the more monumental and sexy project, in favor of the unsexy but demanded-by-the-marketplace next generation fuel efficient mid-sized aircraft.

I am sitting in an industry meeting listening to people tell me all the opportunities, as a tourism-based business, to feed at the public trough and get government funding.  Example topic:  "How to turn your business slowdown into a natural disaster to get disaster-relief funds."  Yuk.  I feel dirty.

Also, my business gets taxed (via sales-tax-like lodging taxes) to support government tourism marketing (in this case, California).  Of course, I don't think any of it returns the money invested in it.  Also, the type of recreation I represent (camping) is totally unrepresented in the ads.  As is typical, these public-private tourism promotion tend to disproportionately benefit the politically connected businesses.

Many marketing analysts will argue that the famous Pepsi challenge advertisements helped Coke as much as Pepsi, by defining it in consumers minds as the standard to which other beverages should be compared, and by giving it nearly as many mentions to support name recognition as Pepsi gave itself.   The GAO reports that anti-drug advertising may be encountering the same type failure:

A Government Accountability Office report on research tracking the
impact of the federal government's $1.2 billion anti-drug ad campaign concludes
that "the evaluation provides credible evidence that the campaign was
not effective in reducing youth drug use, either during the entire
period of the campaign [1998 to 2004] or during the period from 2002 to
2004 when the campaign was redirected and focused on marijuana use."
The GAO adds that "exposure to the advertisements generally did not
lead youth to disapprove of using drugs and may have promoted
perceptions among exposed youth that others' drug use was
normal....Westat's evaluation indicates that exposure to the campaign
did not prevent initiation of marijuana use and had no effect on
curtailing current users' marijuana use, despite youth recall of and
favorable assessments of advertisements." In fact, during some periods
and for some subgroups, exposure to the ads was significantly
associated with an increased tendency to smoke pot.

In the last three or four days, the blog-bots have found me.  Believe it or not, I have had over 500 spam trackbacks in the last couple of days.  For those that don't know, these trackbacks are coming from automated blog generators that interlink each other and send spam trackbacks all over the place.  The blog generators use random text generators combined with marketing pitches and random news stories taken from RSS feeds.  They are yet another evolution in the attempt of bottom-feeding marketers to take advantage of the search engine impact of a blog without the effort of, you know, actually writing a blog.

I have turned trackbacks off for a while on new posts, and I have modified my setup so I have to manually approve comments and trackbacks.  I will only be filtering for spam -- so far, I have not had any problems with my commenters getting too far out of line, even when they disagree with me.  You will therefore see a small delay before your comments appear, but please do not stop commenting!  I will be sad if trackbacks become a thing of the past due to this spamming, since they are right at the heart of the blog model, helping readers link not only to the sources a blogger is using but to the bloggers who are commenting on that post in turn.

Again, via Reason's Hit and Run:

Yesterday an Institute of Medicine committee released a report on food marketing and children that called for
congressional action "if voluntary efforts by industry fail to successfully shift
the emphasis of television advertising during children's programming away from
high-calorie, low-nutrient products to healthier fare." According to The New York Times, the IOM report "links TV ads and
childhood obesity." According to The Washington Post, it says "TV ads entice kids to
overeat."

It is amazing that the human race has made it this far given that our children are raised by two entities, "TV" and "Congress", who are so often bickering with each other over how to best accomplish the task. 

I have a proposal.  I think we should nominate some smaller group of adults, maybe two on average, to take over the care, feeding, and education of children until they reach adulthood.  Though its probably not an absolute requirement, maybe we could have one of these adults be a female and one a male, to make sure children can draw on the experience and insights of both genders.  These individual child protective guardians could actually live with the children, helping them to avoid making bad decisions about diet, entertainment, and many other life issues.  This would drive accountability for raising children down much closer to the individual level, and relieve from "TV" and "Congress" the need to micromanage decision-making from afar.

The Club for Growth has identified one of the most ridiculous pieces of government spending I have seen so far. 

So, you landed a big king salmon this summer? It can't
compare to the colossal king Alaska Airlines plans to land this morning in
Anchorage.

The Seattle-based carrier has painted nearly the full
length of a Boeing 737-400 passenger jet as a wild Alaska king, or chinook,
salmon. The airline has dubbed its flying fish the "Salmon-Thirty-Salmon."

It's a bold promotional move to celebrate wild Alaska
seafood and also the carrier's role in hauling millions of pounds of fresh
salmon, halibut, crab, shrimp and other seafood out of the state each year.

The plane is kind of cool looking, in a creepy sort of way:

But here is what was buried deep in the article on the "bold" plan:

A local nonprofit agency, the Alaska Fisheries Marketing
Board, gave Alaska Airlines a $500,000 grant to paint the jet. The money came
out of about $29 million in federal funding U.S. Sen. Ted Stevens of Alaska and
his congressional colleagues have appropriated to the marketing board, created
in 2003, to promote and enhance the value of Alaska seafood. The senator's son,
state Sen. Ben Stevens, is chairman of the agency's board of directors.

Maybe they can use the plane to fly the route to New Orleans.  The scary part is the article plays this whole project straight up, as if it is perfectly normal and natural, even bold and innovative.

Spending other people's money, taken from them by force, on projects they don't necessarily support, does not make you bold, or compassionate, or caring, or innovative.  It just makes you a politician.

For nearly six years I was a consultant at McKinsey and for another six I held corporate staff roles and marketing leadership roles.  In these twelve years, I did a lot of presenting.  By the end of those 12 years, I felt like I knew about functionality in PowerPoint that the guys in Redmond didn't know about.  But by the end of those 12 years, I had nearly abandoned Powerpoint as a medium and I avoid it like the plague today. 

The main reason is that I don't like to be a slave to my slides.  So many presenters become trapped by their slides, redefining the presentation as getting through the slides in a given amount of time rather than getting their message across.  Today, I like to present to people, looking them in the eye, without any other visual effects to take their attention away from me or my message.  I will use a flip chart or a computer projector from time to time - there is always a need to punctuate your points with data and charts and pictures, but I don't leave them up there after they have had their impact.  The projector goes off and focus is back on me and my message. 

At one company we made presentations using 2 or even 3 projectors
simultaneously, projecting multiple slides all at one time.  I remember
several key strategy presentations I gave using a hundred or more
slides.  Today, I know I could give those presentations better with
just 5 slides showing the key market research and cost data that drove
the decision, and then explaining the logic of our plan without any distractions behind me.

There is nothing I hate more than bulleted text slide after bulleted text slide.  There are only two possibilities from these slides:  Either they are easy to read, but then their message is so generic as to be meaningless; or they contain real content, making them hard to read in a presentation.  I prefer the latter, but save them for a leave behind that people can flip through after I am done.

Anyway, so much for my patented 20 minute semi-off-topic introduction to the real point of this post.  Via gongol.com comes this interesting analysis of how the use of PowerPoint might be affecting the quality of scientific presentations, and specifically looks at how PowerPoint may have impeded quality understanding of the risks that led to the Columbia accident.

Postscript: I must give credit where credit is due.  McKinsey takes the art of presentation very seriously, and did more for me than anyone in making me a good presenter of complex information, either in verbal or written form.  Their pyramid principal for writing was more useful to me than anything I learned in six years at Princeton and Harvard about the subject of communication.

It was fun to see my brother-in-law's company mentioned in the local paper today.  It was even funnier to see that the newspaper-run web site that screwed up the link to my wife's handbag site did the same with his site.

Eric, my brother-in-law, is the SVP of Sales at email marketing firm Constant Contact.  A while back I was half-convinced that email marketing, at least for quality companies, would die under the spam deluge.  It turns out that this is not the case.  There are many companies and organizations engaging his firm to manage their member communications and customer mailing lists.  I know that there are now several companies I do business with that I have white-listed in my spam filter in order to see their special offers and such (for example, 1-800-contacts does a good job of emailing me right about when I need to reorder, and I always like seeing who is coming to town in the Ticketmaster email).

I wrote below that I am not an economist, but I am really, really not a patent lawyer.  However, I find this story totally mystifying:

Apple Computer may be forced to pay royalties to Microsoft for every iPod it
sells after it emerged that Bill Gates's software giant beat Steve Jobs' firm in
the race to file a crucial patent on technology used in the popular portable
music players. The total bill could run into hundreds of millions of dollars.

Although Apple introduced the iPod in November 2001, it did not file a
provisional patent application until July 2002, and a full application was filed
only in October that year.

In the meantime, Microsoft submitted an application in May 2002 to patent
some key elements of music players, including song menu software.

I have already become suspicious that the patent process as applied to software and online concepts (e.g. the Amazon "1-click" purchase patent) is broken.  For me, this is more evidence.  How can a Microsoft patent filed in May 2002 have any validity if it attempts to patent concepts already embodied in a competitive product on the market in 2001?

I once found myself in the middle of one of these patent battles several years ago.  I was on the management team at Mercata, an online shopping site who's bit of uniqueness was that it had three or four day purchase windows for various products, and the price of the product would fall as more people signed up to purchase it.  Kind of a fun, with some interesting viral marketing potential if it had caught on, but patentable?  I mean, doesn't Adam Smith have prior art on this?

Hat tip to Prof. Bainbridge.

I have been a marketer for almost 20 years, and one of the classic mistakes in marketing is to rely too much on your own experience and preferences.  Its often easy to fall into the trap of saying "everyone I know would like that" or vice versa, only to find that "everyone you know" are not necessarily representative of the market as a whole.

When I was a consultant at McKinsey & Co., we often asked people we were interviewing questions like "what is the market size for window glass in Mexico".  The key to successfully completing the exercise was to break the problem down into cascading assumptions, each of which could theoretically be researched and checked.  For example, with the window glass problem, a good answer might be:

The glass market is probably made up of housing, commercial buildings, automotive, and other.  Take the housing market.  Assume 80% of the market is new construction.  Assume the population of Mexico is 50 million, and there are 5 people per home, so there are 10 million homes, and lets assume the housing stock is increased by 5 % a year and that each home has 100 square feet of glass..  etc etc.

It was kind of fun to see if they get to the right answer, but the whole point was to see how they could break down and analytical problem.  The reason I bring up this whole episode was sometimes we would ask our recruits, typically Ivy Leaguers, to come up with the market size for annual snow ski sales.  So they would work through the logic that there are 300 million people in the US and x% ski and these people replace their skis on average every 5 years, etc.  However, it always made me laugh that these folks would be guaranteed to miss the number way, way high.  Why?  Because in coming up with the percentage of people that ski, they would look around the room and say, well 80% of my friends ski and so lets assume 30 or 40 or even more percent of Americans snow ski.  In fact, I have not looked up the number lately, but the actual percentage of Americans that ski is something less than 5%.  Recruits intuition was fooled because, at least in terms of skiing, they were surrounded by an anomalous population.

All of this is a long, long, overly long intro into an interesting set of facts around browser share between IE and Firefox.  A while back I wrote that, from my traffic logs for this site, Firefox appears to be killing IE.  In fact, since I posted this, Firefox has gained even more share on this site:

Now, to the issue of this post, one might suspect that my traffic might not be representative of the whole market.  I would argue that blog readers probably are heavier Internet users, more Internet-savvy on average, and therefore more likely to have investigated browser alternatives beyond the one pre-loaded on their PC.  It turns out that I have a way to test this.  I have another group of sites for my business, including sites for Forest Service Campgrounds, Lake Havasu Jetski Rentals, and Campground Jobs.  The readers of these sites tend to be older on average and less computer proficient.  The browser market share at these sites looks like this:

Wow, that is a huge difference.  Take it from me, its unusual to find a market segmentation that dramatic.  It makes me wonder about all of the talk about blogs replacing the MSM.  How much are we breathing our own exhaust?

Postscript: This is an age-old problem and takes many forms in many businesses.  For example, thousands of farmers have bankrupted themselves in the commodities futures markets making bets on worldwide crop prices based on their local weather and harvest expectations.

Disclosure: Yes, I did take the opportunity to shamelessly Google bomb my own sites.  Sorry.  I don't do it very often, maintaining a pretty solid firewall between my business and blog.

As a long-time student of the marketing craft, it is interesting for me to look at politics sometimes as a marketplace of ideas, and running for office as a marketing activity.  Though I don't want to overplay the notion of packaging over content in politics, you can find a number of historical examples where good communication helped turn the ideological tide. 

Also, being a libertarian sometimes gives me the ability to sit on the sidelines and see the left-right struggles in this country from the outside, possibly with a bit of perspective, since my team isn't really even on the field.

From this perspective, conservatives have really been running up the score on liberals of late.  This is an outcome I cheer when it leads to freer markets and lament when it leads to broadcast censorship.

A lot of ink and electrons have been used up of late trying to diagnose the reason for this success and what the Left can do to even the score.  Rather than comment on this, I will offer the following as a marketing case study.  Forget whether you agree with everything that is said, but think of each piece as marketing for the left or the right.  I was struck by the contrast of these two articles in part because they came from the same publication, and in part because they touch on many similar themes but in totally different ways:

• Cinnamon Stillwell in SF Gate 2/24/05
• Mark Morford in SF Gate 11/3/04

Which product is more compelling to the average American?  Of course, neither can represent the diversity of either side of the spectrum, but through all the political noise in this country, I think each represents the tone and message that is actually filtering through to voters.  If one side want to claim "but that's not fair... that's not the message we intended for voters to hear" --- well, welcome to marketing. 

By the way, I wrote a piece based on Mr. Morford's here.

Over the last several days, more revelations have emerged that the Bush administration seems to be spending unprecedented amounts of taxpayer money for third party PR support of administration policies.  There is nothing that makes me madder than politicians using my money to help cement their own position in office.  For all the majesty of the office, the President is still the taxpayers' employee, and we should expect an honest accounting of his performance and programs.  What makes this even more ridiculous is that the US Presidency is the greatest bully pulpit in the world -- no one gets more of a chance to get his/her point of view into the public domain than the President.  But Bush is generally a crappy communicator, so he has squandered this opportunity and is forced into paying others to speak for him.

Often business people like myself lament that the government needs to be run like a business - meaning more focus on efficiency and productivity and process improvement.   But there are a number of ways the the government is NOT like a business.  The key difference is that a private company can, at the end of the day, give outsiders the brush-off.  As a private company (with no public stock float) I don't have to tell anyone anything about the decisions I have made or why I made them.  I am not only allowed but expected to pay money (in the form of PR, sales, advertising, etc.) to  put a public spin on my products and services -- this is called marketing.  The government, of course, is not supposed to do this.  They have an accountability to everybody.  (actually, even CEO's of public companies are not supposed to do this either, at least with their shareholders, but they do).

The Bush administration wants to believe they are still running their own private business, rather than a public trust.  They have used 9/11 and the war on terror as excuses to pull a veil of secrecy over decision-making, data, and even mistakes that often have little to do with national security.  They have set a number of unsettling precedents around managing their public image, and their payments for PR and good press fall into this category.

Last Thursday I spoke at the the Phoenix Enterprise Network about buying your own business, a topic I discuss in more depth here.  The audience was pretty full, not for me, but in expectation of Sharon Lechter of Rich Dad, Poor Dad fame.  Since Ms. Lechter and her partner Robert Kiyosaki have become the chief evangelists of starting your own business, a lot of people were there who were interested in that topic.

I found that for at least one reason, I was probably the wrong person to speak at this function.  Many people in the audience seemed fixated on my Harvard MBA and felt intimidated that somehow they were under-qualified or undereducated to be entrepreneurs. 

I tried as hard as I could to convince folks that everything I learned at Harvard was virtually useless for running a small business.  I told them (truthfully) that my Harvard diploma hangs in my laundry room, since that was the only thing I really learned to do well at school.  I emphasized that knowledge and passion about the business you want to start is much more important, and that everything else could be learned.  Night courses in certain areas could help, and I would focus on two areas:

• accounting:  it is always good to know accounting.  It is never good to entirely trust someone else with the books.
• marketing and competitive advantage:  the one "framework" that still serves me well from my MBA is that I never look at an idea or business without asking what I am going to do with it that is different than competitors. 

In reality, the Harvard sheepskin on my wall actually hurts me running a small business as often as it helps me.  For example, many of my employees when they first work for me seem intimidated by the degree, and assume I must know everything and therefore they are afraid to raise concerns or share ideas.  Any of my managers who read this will probably laugh, because most have gotten some version of my speech on this topic:

DO NOT assume Warren has a secret plan or brilliant idea on any subject that he has not told you yet.  Assume that if you have not heard from Warren on a topic, he either has no clue there is an issue at all or else he has no idea what to do.  Therefore, do what you think needs to be done, and call Warren if you need help.

By the way, if you are in the Phoenix area, the Enterprise Network not only has one of those exceedingly rare and valuable two-letter URL's, but it is a great group if you are an entrepreneur or you business sells to entrepreneurs.