Special Guests: Jeff Hayzlett - Marketing Expert

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UNIDENTIFIED FEMALE: You know what makes Barack Obama happy? Newt Gingrich's baggage. He has more baggage than the airline.

UNIDENTIFIED MALE: The former house speaker dismissed the Medicare reform plan put forward by congressman Paul Ryan.

UNIDENTIFIED FEMALE: (INAUDIBLE) stuff with national health care. He's got that abortion issue.

UNIDENTIFIED FEMALE: Choice issues, global warming issues.

UNIDENTIFIED MALE: Politicians who supported bailouts and mandates, serial hypocrites and flipfloppers (INAUDIBLE) up the mess.

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NEIL CAVUTO, HOST: Those are the nice spots. Rick Santorum could be the next target because going negative gets pretty positive results - so much so that even Newt Gingrich, the guy saying that he would never do attack ads of his own, is planning his own barrage against Mitt Romney, something he made very clear last night. Marketing guru Jeff Hayzlett says that's because they work at politics but not necessarily in business. But it's full throttle now, isn't it?

JEFF HAYZLETT, FMR. KODAK CHIEF MARKETING OFFICER: It is. I mean, they spent $6 million in television ads, 2/3 of those were negative. 70 percent of those ads were aimed at Newt Gingrich. They worked. 20 percent of those were aimed at Mitt Romney and about eight percent at Perry who's just dropped off as we know. So you look at it, they were all funded by Romney and his committee which was "Restore the Future" which I think (INAUDIBLE) kick Newt's butt and then Ron Paul. Ron Paul.

CAVUTO: Well, Romney says outside groups that might like him, he's not responsible.

HAYZLETT: Oh, give me a break. I mean, we've only seen the beginning of what we're going to see for the future. I mean, now they're going to start tying everybody and this New Hampshire campaign is going to get really nasty. Newt's going to (INAUDIBLE).

(CROSSTALK)

CAVUTO: But don't they target the - target them and the targeter. I mean, I have a theory on Ron Paul. He did very well on Iowa last night. I wonder if it cost him a couple of points being cited as he constantly was for his attack ads?

HAYZLETT: No. It's - people expect it. We've gotten numb to the process.

CAVUTO: Oh really? Then how did he - why did he fall to third?

HAYZLETT: Well, but he's the third. I think he rose to third is what I would say.

CAVUTO: He was leading in the polls.

HAYZLETT: Yes, but that's - it's in Iowa. It's 29,000 people. (INAUDIBLE)

CAVUTO: You like Ron Paul. I like Ron Paul too. But what happened (INAUDIBLE). I understand that. But he was leading comfortably for a while.

HAYZLETT: Yes, well, but again, it doesn't take much and you could buy a very cheap (INAUDIBLE) in a state like Iowa. You're going to buy ads very cheaply.

CAVUTO: But Ron Paul still has a lot of money. So what does he do with that? Does he continue what he did in Iowa?

HAYZLETT: Absolutely. You're going to continue what it is. It doesn't work for corporations but it works for campaigns. We're used to seeing this. We're going to see it again and it's nothing compared to what they're doing. In fact, I heard Romney talking about the fact that it's nothing compared to what Obama's going to do to us in the fall.

CAVUTO: Well, he's right about that.

HAYZLETT: He is absolutely right. They're gearing up. They're doing it with talk shows. You saw them going after the Tea Party already with the email. And you're going to see more and more of that negative stuff. It works with their voters. It works with their supporters. People expect that from their candidate.

If it was a corporation, you can't do that because you take those things personal. In politics, we don't take it personal.

CAVUTO: I take everything personally. I have the thinnest skin. It might surprise you.

HAYZLETT: Well, you're not running.

CAVUTO: I wonder, though, if the attack ads work. It's really the eye of the beholder, right? When we had Ron Paul on just a couple days ago, I asked him about this. He said, well, when I am just citing a candidate's record and using his own words, how is that an attack ad? Newt Gingrich claims it is.

HAYZLETT: It is. In fact, Newt said it is dishonest. I think he went as far to say that.

CAVUTO: But why did he target Ron Paul, who has more of the attack ads on him, not Mitt Romney, who has just a fraction of the attack ads?

HAYZLETT: I think that was a mistake on his part. Watch what's going to happen in New Hampshire.

CAVUTO: What does Newt do now?

HAYZLETT: I'd go after Mitt Romney. And I'd go after him very hard. I think that Ron Paul is probably going to drop off, whether he can raise the money. Rick I think was something new. Will he be able to get the money? He's got the money. If you can get on air, you will be a viable candidate. If you can't stay on air, you won't be a viable candidate.

And sometimes even that is not enough. Ask Rick Perry.

CAVUTO: All right Jeff, thank you very much. "Running the Gauntlet" is the book he's just got out now. The man's on fire. He's got an uncanny read of people.