Ogilvy's Creativity

ONCE AGAIN, THE MAJOR EQUITY indices closed up. By the numbers, for the week ended Friday, August 7, 2009, the Dow Jones Industrial Average closed at 9370, up 199 points, or 2.2%. The Standard & Poor’s 500 closed at 1010, up 23 points, or 2.3%, and the NASDAQ Composite closed at 2000, up 22 points, or 1.4%.

Both the NASDAQ Composite and the S&P 500 broke new technical barriers, closing above 2000 and 1000 respectively. You can find a variety of opinions as to what that means. On the employment front, July job losses retreated, reaching their lowest level since August 2008, bringing the official unemployment rate to 9.4%.

Retailers had a tough July, with sales down pretty much across the board. Auto dealers enjoyed a robust month, thanks to the CARS program, with Ford reporting its first sales increase in two years. Mark Muller, of Max Motors in Butler, Missouri had to withdraw his offer of a free AK47 with each new car purchase. He ran out of cars.

Google CEO Eric Schmidt is leaving Apple’s board. The Institute for Supply Management indices for July for manufacturing and service sectors were still below fifty, though they have been increasing.

It’s been ten years since the passing of David Ogilvy, recognized as one of the premier creative minds of the 20th century. His thinking was behind such notable campaigns as Dove soap being marketed as 25% cleansing cream. His advice for building and running a business included:

§ Remember the old Scottish motto: “Be happy while you’re living, for you are a long time dead”.
§ If you have to reduce company payroll, do so only after you have cut your own compensation, and that of your other officers.
§ Define your corporate culture and principles in writing. Don’t delegate this to a committee. There are no statues to committees.
§ Stop cutting the quality of your products in search of bigger margins. The consumer always notices – and punishes you.
§ Never spend money on advertising which does not sell.
§ Bear in mind that the consumer is not a moron. She is your wife. Do not insult her intelligence.

Ken Cage of Philadelphia is having a banner year. His firm, International Recovery and Remarketing, repossesses planes, boats, and RV’s. According to Ken, the company’s 500 repos in 2008 were triple the previous two years combined. His company is set to double the 2008 number this year. Most owners don’t contest his presence, as they are aware of the situation. Of course, Ken and his team must find the asset without tipping off the owner, as many owners would hide the plane or boat.

Quote of the week:

“Some see private enterprise as a predatory target to be shot, others as a cow to be milked, but few are those who see it as a sturdy horse pulling the wagon.”
Winston Churchill