MarketingBeyond

Deepak Chopra, Economic Uncertainty and Infinite Possibilities

I recently have been reading Deepak Chopra's thought-provoking books on Universal principles and believe everyone--economists, in particular--have much to learn from him about our economic doldrums.

Tom Lauricella, writing in today's Wall Street Journal ("Foundation of New World Order is Uncertainty), comments that "...investors find themselves in a new world where vast swaths of territory are marked 'unknown.'" Lauricella argues that availability of capital "...can no longer be taken for granted...[In the past] If one wave of money pulled out, it seemed that another was always coming in to fill the void...For now, any predictions are little more than guesses."

But when was it otherwise? If the great economic minds from history were sitting around a table in the White House today, what would they say? I would hope, at least, they would consider their predictions slightly above the level of guesses.

Economists, as many argue, are a strange lot--praised when their predictions materialize, scorned when wrong. I found this diddy online from JokeEC to humor you:

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A mathematician, an accountant and an economist apply for the same job. 

The interviewer calls in the mathematician and asks "What do two plus two equal?" The mathematician replies "Four." The interviewer asks "Four, exactly?" The mathematician looks at the interviewer incredulously and says "Yes, four, exactly."

Then the interviewer calls in the accountant and asks the same question "What do two plus two equal?" The accountant says "On average, four - give or take ten percent, but on average, four."

Then the interviewer calls in the economist and poses the same question "What do two plus two equal?" The economist gets up, locks the door, closes the shade, sits down next to the interviewer and says "What do you want it to equal?" 
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Lauricella in his WSJ article quotes an economic researcher who both posed and answered his own question: "'What happens when an irresistible force'--the Fed's actions--'hits an immovable object'--the paralyzed global economy?'...'The correct answer is there is no answer." I always find it amusing when people (especially economists) pose questions that have no answers.

Lauricella quotes more economic gobbledygook from a chief investment strategist: "'The credit-creation machine is semi-permanently impaired.'" This is similar to your doctor's assessment of a broken leg or why a formerly successful quarterback isn't playing in the NFL next year.

I would hope that most of us learned in 2008 that the old belief ("I win, you lose") doesn't work. Last year, for most of us, was a case of "I lose, you lose," a phrase that Hallmark will probably not consider in forthcoming birthday cards.

An alternative, which swept Obama into offiice, is "I win, you win." Convincing the American public, Wall Street and Congress about this radical philosophy is Obama's main leadership challenge as he takes office.

Deepak Chopra, a well-known author and M.D., provides some enlightening answers and observations about our current plight. He first says that belief is based on what's known and everything in the future is unknown--not something that would keep many economists gainfully employed.

But Chopra goes further. Quoting several physicists, Chopra explains the "discontinuity" theory about the Universe. Simply put, the entire Universe--including human consciousness--is a process consisting of sub-atomic particles or vibratiions that continuously turn on and off, appearing then disappearing.

When off, discontinuity occurs. Everything is empty. Physicists claim that in the off state nothing exists--no information or content. When questioned further, however, physicists say that in a state of discontinuity, the Universe offers infinite possibilities, infinite creativity--a condition where anything is possible.

For most of us, the sub-atomic world is not our daily reality. But imagine if we could glimpse it, if only for a few seconds? How would our lives change? If discontinuity provides infinite possibilities and unbounded creativity, leading to a reduction of fear and discord in our lives, miracles would become reality. Worry and strife about our economy, ourselves and others would greatly diminish. Our perceptions of the world would radically change.

Back to Lauricella and the Wall Street Journal article.

He asks a series of close-ended questions (only answerable as "yes" or "no"). Here are a few, followed by my re-phrasing creating open-ended questions:

"Might a cash-starved world mean a prolonged period when interest rates for corporate borrowers stay well above historic levels?" ("What can we do to increase credit for corporate borrowers?")

"Will there be a protracted retrenchment among heavily indebted consumers who carry mortgages bigger than the value of homes?" ("How can we improve the housing market and help consumers reduce debt to pay their mortgage payments?")

"What kind of a premium will investors pay for stocks that reliably churn out scarce cash in the form of dividends?" ("What steps can we take to boost corporate profitability resulting in increased dividends for stockholders?")

As Chopra would say, re-phrase the questions. Re-orient our thinking. Be mindful. Think creatively about the problems we face. There are infinite possibilities in the Universe.

Credit Card Theft Goes High Tech: Banking's Next Challenge

Before the debacle of sub-prime mortgages...before the creation of CDO's and CDS'...before the near collapse of the banking system...before George Bush entered the White House...and after God created the Earth in seven days...credit card theft reigned supreme.

Today, the Wall Street Journal reported that Target customers, who accepted the enticing offer of a free Target credit card, are in default to the tune of over $300M. CitiBank, which announced the elimination of 20% of its workforce yesterday, American Express and other major banks are also losing billions in their credit card operations. And the good news keeps dribbling in.

Just to add to your list of worries, however, the Department of Justice recently announced a masssive credit/debit card theft, CBS News reported a case where 11 people stole information off 40 million credit cards wirelessly by driving past retail outlets, then transmitting the stolen data overseas. And CrediMom, a blogger, wrote a post describing how credit card thieves clone and skim your private information off the metallic strips on the back of your cards.

Let me tell you a personal eCommerce story that should keep you awake at nights...a secret that few people know about credit card transaction processing in the U.S.

I spent three hours on the telephone today speaking with my former merchant account company (merchant account companies work in tandem with Authorize.Net and banks to approve credit card transactions). I also chatted with a police officer in West Virginia about a $2,500 loss I recently experienced in my business due to credit card fraud.

What I discovered is startling. Do you know that if someone has your credit card number, the three or four digit CVS security code printed on the front or back of your card, your zip code and numeric street address, a credit card transaction can be approved?

If it's an online transaction, the thieves don't even need your NAME. That's right. If the card is valid and the charge is within the credit limit, an online purchase can be approved even if the purchaser writes "Donald Duck" in the bill-to area of the shopping cart screen.

No one at my merchant account company, Authorize.net, a "gateway" company that coordinates CC transactions and the bank that processes approvals could tell me why credit card holder NAMES are not part of the authorization requirements. The answer from everyone with whom I spoke: "That's just the way it is."

Fraudulent credit card transactions--now estimated in the billions each year--are either charged back to online merchants, who have insuffiicent proof-of-delivery, or written off by the issuing bank. The owner of the credit card disputes the charge and that's it.

Now you know why credit card companies charge outrageous interest rates. Someone has to pay for credit card fraud and, guess what, it's you and me.

So, while Americans worry about losing their jobs, homes, 401k's and next year's vacations, don't forget about the plastic. Remember, the thieves are out there--and many have gone high tech.

The Marketing of Belief and Trust: World Economic Conditions & You

 During the past few weeks, anyone who has read the papers, listened to radio, watched TV or talked to their friends has been battered with news from Wall Street and beyond about worldwide financial troubles. I debated all week long whether to blog on our financial conundrum. What could I offer that isn't already under discussion? What do I know about the financial services industry, the credit crunch, mortgage securities and the like?

The answer is "not a lot." But when I started writing MarketingBeyond last year, I promised--from a marketing perspective--to comment on the passing scene and try to avoid the trivial and tripe. And I hope my readers believe I've held to my mission.

However, as I've read about the serious financial troubles facing the U.S. and other countries, I can't help but comment on what I'll call "The Marketing of Belief and Trust." Notice I used the word "belief"and "trust"--not "hope" or other word. Marketers have the tendency to choose words common to the industries, companies and messages they seek to promote. Thus, we end up with trite phrases melted into our heads like cheese on an omelet.

In my mailbox today were the latest copies of Time and BusinessWeek. The front page story titles--the hyperbolic phrases that sell magazines--were there. "How Wall Street Sold Out America: They had a party. Now you're going to pay," proclaimed Time. "Is it Safe Yet?" in 200 point type was BusinessWeek's proclamation about the economic downturn.

But the press isn't running the country and our financial demise is not a result of the devil, a single politician, the Feds or greedy financial types. You pick your own enemies that caused our financial mess. I prefer talking about belief and trust to relieve the pain.

From a marketing perspective, belief and trust are the most important elements of any organization's growth and sustainability. (This includes belief and trust in government as well.) As long as people believe and trust in companies whose products and services they buy, consumers will "stay the course" in times of trouble and strife. Lose belief and trust, however, and you might as well close shop, as we've witnessed in the financial services industry of late.

Belief and trust were not only decimated between consumers and financial institutions. The financial institutions themselves--banks, in particular--refused to loan money back-and-forth around the globe to diminish the impact of the credit crisis. Like a snowball rolling down a hill, the largest global financial firms exasperated the situation by letting the snowball enlarge, crushing everyone in its path down a very steep hill. So much for belief and trust.

Comparisons of our worsening financial crisis to the Depression in the 30's brought to mind Herbert Hoover's famous promise to the American people: "Prosperity is Around the Corner." Little did Hoover know he was in the corner rather than around it. The Depression lasted quite a few years. He might better have said: "I know we're in a pickle, but, trust me, I will do everything in my power to remedy the situation as quickly as possible." That kind of language engenders belief, and it's exactly what we need right now.

As we weather the pain of our current predicament, then, let's save the finger pointing til later. Those who may have contributed to bank failures, loss of thousands of jobs and inadequate government monitoring will face their punishment in due order.

Until then, everyone in the United States--consumers, business leaders, government decision-makers and  financial services executives--must focus all their energies on the marketing of belief and trust. Ignore this mandate at our peril.