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Marketing Words: Should “Passion” be Part of Your Message?

Listening to a baseball podcast the other day, the two hosts digressed into a conversation about passion. One talked about the awkwardness of communicating that he is NOT passionate about what he does for a living (i.e., write and talk about the statistical nuances of baseball) given how many people love the sport. I found myself thinking that the hosts really do love the sport of baseball but have a hang-up about describing that love as a passion.

This presents an interesting issue for marketing, namely: is passion a strong term to incorporate into firm-level positioning and marketing messages? I’d argue it is not.

Most individual people aren’t passionate about what they do. But as Anu commented to me, people who excel in their work frequently have passion for it. In other words, there’s a good correlation between great performance and passion. Therefore, it’s easy to understand why a single person would describe themselves as passionate about something. It’s a characterization that conveys a deep and personal connection.

But the highly-personal nature of passion is why it falls down as a way to describe a larger organization or firm such as an asset manager. People understand that most individuals lack passion for their jobs; 70% of people are disengaged in their careers according to a Gallup survey. As a result passion at an organizational level carries a strong risk of failing the smell test; it attempts to represent something that isn’t very believable.

There is a lot of nuance in an issue like this. And while I’m not a fan of passion as a marketing term, there are certainly firms who will disagree. That’s what makes the discussion interesting.

Marketing Effectiveness Rating for Passion: 3 out of 10*

* note: scale is arbitrary, especially since this is the first post on marketing word choices

Proprietary Magazines Coming to Asset Management?

Content marketing has come to the real estate industry. Douglas Elliman, the 4th-largest real estate firm in the US, launched a lifestyle magazine (via Wall Street Journal) that does not sell, market, or promote their current properties. Two years ago, we noted the online retailer, Net-a-Porter, and their magazine, Porter, in a client engagement with a top-10 asset manager. The magazine concept is an interesting technique for an asset manager looking to organize disparate in-house content sources. Leafing through Porter, you see the easy connection between retailer and magazine. Interspersed within the articles are clothes and accessories sold on the Web site. Looking through Elliman, there are no articles about new residential towers in Manhattan or Miami, rather Q&As with Ted Allen and Katie Lee.

In our industry we have a DC-focused magazine: Journey from JPMorgan. Journey follows thePorter model covering topics like Social Security’s future, diversification in a DC plan, and rising health care costs.

Will we see more magazines? If done well (good articles, quality paper stock, stunning photos and imagery), I see the appeal and I can imagine a magazine has a higher chance of finding its way into an FAs briefcase (or app on her tablet) than a PDF. And that’s a significant step towards building appeal with advisors.

Best Blogs of the Week vol 187

Only two posts to recommend this week, both focused on investing opportunities.

Investing in Bank Stocks –Invesco

“In our view, this price action looks like the start of a positive trend and a continuation of the rally that had been in place from about September 2011 to March 2014.”

Refuting the Top 3 Misconceptions of EM Corporate Credit –WisdomTree

“In our view, valuations in emerging market corporate debt could represent an attractive entry point for patient investors who are focused on total returns.”

Thought Leadership Arms Race Is On

There’s omnipresent discussion (in the news, from asset managers, by wealth managers) of the 5-year long bull market in US equities. Reading this month’s Mixing It Up from Shefali Anand reminded me about the bull market. There’s another bull market. The asset management industry is experiencing a bull market in thought leadership. It’s easy to understand why: with so many investment options available to financial advisors, thought leadership becomes an important method of building brand recognition and becoming that coveted “trusted partner.”

Today, many asset managers are producing thought leadership in quantities never seen before. Let’s just look at 2015 volume to-date from five, well-known asset managers.

thoughtleadershiptableWhat are the obvious takeaways?

  1. Unless Marketing executives believe thought leadership to be a fad, standing on the sidelines is longer an option. Yet some firms continue to do so, publishing 1 or 2 thought leadership pieces per quarter.
  2. Introducing and populating a blog with multiple posts per week from different investment team members is no longer optional.

Best Blogs of the Week vol 186

 

This week’s posts cover multiple topics.

What a Rate Hike May Mean for Stocks –BlackRock

“markets characterized by multiple expansion—in other words, when investors are paying more per dollar of earnings—are more vulnerable to a change in monetary conditions.”

China is Choking on its Own Debt –Loomis Sayles

“It’s difficult to remember the last time so many paid so little attention to something so vitally important.”

Is ESG a non-financial issue? Or a future financial issue? –Russell

“Typical investment structures at present do not necessarily capture the potential impact of ESG factors.”

When the dollar is strong, look to small caps –Wells Fargo

“In the short run, we expect larger-cap companies to feel the effects of the stronger dollar.”