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January 12, 2009

Market Research Circa 2009

Posted by Chris Rosica at 4:23 PM

The two-fold takeaway from today's technology-driven revolution in market research is: Listen and Respond.

Businesses and nonprofits have an array of Internet-enabled tools to put them in close touch with customers and stakeholders. Online research methodologies capitalizing on social media options can give marketers virtually direct access to target audiences. Through controlled online communities, for instance, marketers can solicit insights about what customers really want, giving them an edge over less tech savvy competitors. In these tough economic times, having dynamic market information a click away can mean the difference between staying in business or not.

With a nod to neuromarketing, work is being done to better understand consumer behavior and learn how people make purchasing decisions. In his recent book, Buy-ology: Truth and Lies About Why We Buy, marketing behavior expert Martin Lindstrom examines what influences consumer decisions and suggests advertisers and marketers must be mindful of the importance of the brain's unconscious responses, which dictate why we make the purchase we do.

Making the most of the latest marketing science and evolving technologies takes specialized expertise. However, it's one thing to gather information, but making it work to your advantage is something else entirely -- so it pays to get professional guidance. The Cincinnati-based consultancy SpencerHall, for instance, offers a range of technology-based products to help clients turn consumer insights into business breakthroughs.

One service SpencerHall has introduced is called "Transforum." Transforum uses a Web-based platform for clients to interact with thought leaders -- from futurists and trend spotters to inventors and consumer psychologists. After qualitatively evaluating and refining the results of the multi-day Transforum process, clients gain a clear understanding of a promising direction to take their business. The company also uses ethnography to gauge customer interest, which many experts assert is one of the most accurate methods of conducting research nowadays.

Bottom line? The most effective marketers truly hear what customers want and respond accordingly. They know what triggers the consumer to buy and look for fresh ideas that evoke an emotional customer response. Technology not only aggregates information but now enables divergent experts the ability to share ideas.

December 9, 2008

The New New Media

Posted by Chris Rosica at 3:57 PM

In my recent post entitled "The Time for Change Is Always Now," I began a discussion regarding the changing media landscape and its present and future implications on businesses and marketers alike. As previously revealed, two of the marketing segments that are (still) growing are direct response television and online marketing. This post will delve into online marketing and the expanding use of video in marketing communications.

Many companies are using YouTube as a buzz-building and search engine optimization (SEO) tool. Yet, there are numerous online video applications being introduced over the next few years that are sure to gain acceptance as viable solutions to elevating awareness, educating audiences, and generating excitement.
One company creatively using video in shopping carts, after online transactions occur, is Digital Broadcast Network. They’ve created a cross-selling shopping cart that, rather than issuing a message saying “Thank you for shopping with us,” plays a DVD-quality TV commercial or brief video of a similar item to one you just purchased. This promotes the impulse buy, capitalizing on the situation as the person is already in buying mode, and increases sales without the need for additional operational expenditures. So, post-sale video is one up-and-comer that seems to have merit.

Video on websites and landing pages is also growing at a fast pace. Sites like www.FAQInteractive.com and others offer affordable video that can be used on websites or landing pages to infuse a human element into the often sterile HTML experience -- or to paint a picture by demonstrating a product or service. I do, however, feel the trend will evolve into using real spokespeople rather than models and actors. It’s more credible that way.

One video trend that seems to be losing steam in our stressed global economy is news format sales video or programming. Often seen in cabs, busses, and elevators, in travelogue fashion these programs promote products and places using the woman-on-the-street to talk about lifestyle-related products and shopping venues, highlight happenings around town, or interview local business leaders. While this is an opportunity to communicate with a captive audience, people soon begin resenting having something shoved down their throats when they are in an environment that they do not expect overt commercialism. Cab and elevator rides become respites for people, much-needed breaks from the plethora of messages constantly thrown our way. Among my friends and colleagues there is a consensus -- we have already started tuning out this noise.

How to Weather the Storm

Posted by Michele Miller at 3:38 PM

Pretty much everyone is now using the word "recession" as part of their daily vocabulary. If the winds of change haven't reached the sails of your business yet, they will. Guaranteed.

Here are three survival tips to keep in mind:

Don't focus on growth -- focus on staying even. Over the next two years, it will take all of your wit, cunning, and common sense to maintain your current revenue, let alone grow. If your year-end financial reports show that you stayed even with the year before, you will have done a tremendous job of remaining steady at the wheel. And if you experience single-digit growth, grab a handkerchief and crank up the Greek dancing tunes, 'cuz it's time to celebrate. The key is efficiency -- making the highest and most effective use of your marketing and operating dollars to streamline your message and customer experience.

When it comes to customers, there's a pecking order. Even in good times, smart marketers know that the care and feeding of existing customers takes precedence over capturing new ones. These are the folks who already believe in what you do, so give them consistent, genuine TLC and never stop asking them what you can do better. In return, they will remain loyal to your brand. Depending on your business category, they may not be able to afford what you sell today, but by not forgetting them during the tough times, they'll think of you first when they're once again flush and ready to spend. Building brand confidence and love can't help but generate good word-of-mouth about you -- some of the smartest (and cheapest) marketing you'll ever do.

Don't stop taking chances. Now, more than ever, it's critical to continue branding your business in the hearts and minds of customers. Yes, you're feeling the pinch. But don't go all Wolverine on us and slash your marketing budget to shreds. Keep on keepin' on, and mix it up a little. Have you built your business on low, low prices? Start talking about the "relationships" you have with your customers. Have you created good brand mojo through meaningful connections with customers? Extend it by telling them you feel their financial pain… then lower your prices just a tiny bit. (If you're successful at being as efficient as you possibly can be, it gives you the breathing room you need in order to do this.)

Things may very well be rocky for awhile. Concentrating on even just one of these tips will give you a clearer focus and a steadier hand; delivering all three at a high level will definitely keep you afloat through the roughest of waters.

November 7, 2008

The Time for Change Is Always Now

Posted by Chris Rosica at 6:03 PM

The media landscape is ever-changing. We are witnessing an evolution in broadcast media advertising -- from product placements on reality TV shows, sitcoms, and in movies, to on-screen graphics used in sports programming, and now "pay for placement" on television morning news programs.

The media are hungry for revenue opportunities and struggling to survive.

Print media is changing as well. Nearly all U.S. daily newspapers are experiencing (further) declines in circulation. It is yet another change that requires foresight and creativity. The Christian Science Monitor and Child are two publications that have moved online. The Monitor will no longer print its paper daily (instead opting for a daily website and weekly print edition) and Child has strictly moved online. Gannett, the largest U.S. newspaper publisher, is fighting advertising declines made worse by the global financial crisis, forcing it to cut 10 percent of jobs at its local papers.

However, online ad spends are up. The Interactive Advertising Bureau reported online advertising revenues reached $5.8 billion for the first quarter of 2008, an 18.2 percent increase over the same period in 2007.

This is unquestionably due to the measurement benefits of online advertising and marketing. Regardless of whether you are doing online PR, search engine optimization (SEO), online ads or cost per click (CPC), you can granularly track sales and how people come to you (i.e., what key words or phrases they searched). This, coupled with the convenience of online news that the younger audience demands, is a clear indication marketers better wise up or become obsolete.

These times demand an honest appraisal of the marketing industry and an openness to learn, grow and change. There are many logical and viable marketing avenues to explore. I know I'll be investigating several over the coming months.

October 9, 2008

What It Takes to Get on Oprah's Radar

Posted by Chris Rosica at 1:05 PM

Everyone knows the power of Oprah. Her following and influence make her the number one target of publicists, brand managers, and marketers alike. Her authority and persuasiveness is a cultural phenomenon. Everyone wants to be on her radar -- from authors and doctors to creators of diets and psychologists -- and not many get the opportunity. Everyone wants to be on her show.

Few make it to the big leagues, and Oprah is a media major leaguer. And while smart, persistent, and authentic entrepreneurs and industry experts have good reason for wanting to make this a reality, the real power in marketing is layering messages that resonate with customers through online and traditional media coverage that creates buzz, heightened credibility, positive word-of-mouth, and even viral demand.

Companies such as Burt’s Bees, Stonyfield Farm, Monster.com, and Famous Amos Cookies have become successful -- and landed on Oprah's set -- by not only providing unique products or services but offering distinctive customer experiences. This includes consistently delivering unparalleled quality, developing solutions that address societal needs, filling niches where there were once voids, and doing it better than the competition. In addition, the founders of these companies disseminated their good news and stories on an ongoing basis through A-, B- and C-level media outlets, regionally, and sometimes nationally.

National brands are built when the story is genuine and there’s passion and purpose behind it. Take Stonyfield Farm for instance. Their mission is supporting local farmers and creating healthier products that people and the planet demand, such as their healthy vending machine program for schools. This differentiates the brand and helps build positive word-of-mouth while creating loyal, even fanatical, customers.

If you have an extraordinary product or service, provide exceptional customer service, make a point to stand for something beyond profits, strive to provide the best customer experience and commit to proactive marketing. Then who knows -- maybe Oprah will take notice of your company like she has with Wally “Famous” Amos, Roxanne Quimby from Burt’s Bees, and Stonyfield Farm’s Gary Hirshberg.

September 17, 2008

When Sound Bites Come Back to Bite

Posted by Chris Rosica at 12:36 AM

The truth is, there’s no truth in politics.

As many media trainers preach, nothing is "off the record." And though political candidates are deliberate and cautious during media interviews, they often don’t think about each and every sentence in standalone context when they speak.

As Barack Obama has learned (all too well), words taken out of context and immediately broadcast through traditional and online media can be dangerous.

His experience of recent weeks -- think "lipstick on a pig" -- shows that candidates, have to be more than just “politically correct” at all times to avoid misunderstandings. In today’s sound-bite culture, there is little room for explanation but plenty of room for debate. Yet the requirement for candidates to self-censor defeats the purpose of political debate and truly limits our ability to assess a candidate clearly. We come out on the losing end of the deal.

No one wants a political candidate to be so careful on the stump that voters lose the ability to evaluate his or her true character -- no more than a company that so closely parses its words and message. As suggested by Lee Iacocca in his latest book, Where Have All the Leaders Gone?, we might just as well require candidates to submit all views in writing, with voting contingent upon readership.

This trend is a lose/lose proposition for all Americans. Since political foes will relentlessly try to bash their opponents, the only possible remedy is for the media to resist the temptation to use only the sound bite and go for the complete story that only thorough reporting can produce. This means covering a candidate’s actual voting records, accomplishments, and specific objectives rather than depending upon the press releases of an opposing camp.

As sound bites get shorter and shorter, it will take the news media a strong spine to work towards presenting a story in its fullest context. It’s a great deal to ask but without it, we have much more to lose.

September 5, 2008

What Women Really Want

Posted by Michele Miller at 6:23 PM

Businesses aren't the only ones who are thinking about marketing to women. Now, entire cities are jumping on board.

A report in USA Today, which discusses the trend of city planning to make urban areas safer and easier to navigate, caught my eye a while back. Here's some of what it said:

"Medical experts, concerned about increased rates of obesity, diabetes and hypertension, have studied how the design of cities affects health for some time. Now, they're focusing on its impact on an increasingly prominent demographic segment of the urban landscape: women."

Cities like Philadelphia have put together design teams to study the issue and come up with solutions, including repairing sidewalks, giving women more time to cross at crosswalks, designing housing without stairs, and improving public transportation and exercise options.

Consider these statistics:

- There are 118.5 million women in the nation's central cities and their suburbs -- more than half the urban population.

- About 17 million women in those areas are age 65 and older -- almost 60 percent of the total number of seniors in cities.

- Women 65 and older are three times as likely as their male counterparts to live alone.

- More than 14 million women live alone in cities.

- More than 23 million women are heads of households.

- More than 60 percent of those who care for an older person are women.

All hail Philadelphia -- ironically, known as the City of Brotherly Love -- for seeing a need and working to strengthen its brand with female citizens. Let's hope other cities around the country follow suit. With such influential statistics, they'd be foolish not to.

August 15, 2008

What’s in a Name? Not Much

Posted by Chris Rosica at 5:22 PM

After spending the better part of a year interviewing a dozen renowned entrepreneurs, I was amazed to discover their disparate views on the importance of naming their companies.

In fact, only one of the 12 -- Jeff Taylor, founder of Monster.com -- felt the name he selected was indispensable and key to branding his company. Surprisingly, not even Starbuck’s co-founder Jerry Baldwin felt the name was essential.

Some of the other business leaders I consulted with -- such as Ben & Jerry’s Homemade founders Ben Cohen and Jerry Greenfield, cosmetics expert Bobbi Brown, Wally “Famous” Amos, Kate Spade, and David Oreck -- named their companies in part or entirely after themselves. While this group felt it helped bring brand accountability and provide some level of differentiation, they did not believe the company name was essential in creating the brand. They unanimously agreed the best way to build a powerful brand identity is to offer unmatched quality, exceptional service, and consumer-centric products or services that focus on their customers’ needs and wants.

Moreover, money was not their primary motivation. Rather, the key to differentiation and success was fulfilling their missions and giving consumers unparalleled quality and intelligent products that resonated with them. Roxanne Quimby from Burt’s Bees and David Neeleman of JetBlue, whom I also interviewed, exemplify the fact that a powerful and heartfelt mission statement can go far in building a connective brand. Neither of these two business leaders believed their name was a primary factor in branding their company.

Businesses can learn from this by being more authentic and addressing the real needs of their customers, rather than creating marketing campaigns and ignoring the brand promise.

August 1, 2008

Do You Really Know Your Customers?

Posted by Michele Miller at 4:23 PM

I shop at two health food stores. I am a frequent customer, stopping by at least once if not twice a week. Nearly every time I stand at the checkout, I end up having a conversation with the clerk. It's nice to be able to do that, since they're both small operations and the customer flow is decent but not harried.

In Store No. 1, the clerks are nice. As they ring me up, we might chat for a moment about the weather or something from the morning newspaper. They'll throw a couple of samples into my bag and send me off with, "Have a nice day." Pleasant enough. The next time I go in, they're still hospitable, but don't offer a hint of recognition of me as a regular shopper. It's as if they've never seen me before in their lives.

As I approach the cash register at Store No. 2, the clerks ask me how I liked that new protein powder I bought last week, or how my husband reacted to the smell of that macadamia nut lotion they saw me testing. They'll remember the special diet I'm on and recommend a product that just arrived in the store. They, too, give me samples and tell me to have a nice day, but this time when I leave, I feel they just might ask me how that day went the next time they see me.

Store No. 1 has good customer service, something that's acceptable to most business owners. Nice, helpful employees that toe the party line. No fuss, no muss.

Store No. 2 has outstanding customer service -- they're on fire. They're all about delivering a great shopping experience, subtly working to give shoppers more than they expected. And they're genuinely interested in their customers as individuals.

Guess which store just opened a fourth location to meet customer demand?

It doesn't take the memory of an elephant to remember your customers or clients, just a little more awareness of the universe around you -- and your patrons. You say you want to grow your business? Start getting to know your customer and her life in the world outside your door.

July 14, 2008

What Success Sounds Like

Posted by Michele Miller at 1:41 PM

Do you own or manage a retail store? If so, consider trying this experiment:

Find an out-of-the-way location in your store that doesn't interfere with activity, but allows you access to all that's going on. Then close your eyes and tune in with your ears.

- The phone just rang nine times. Why hasn't someone picked it up?

- Jennifer is discussing last night's episode of "Survivor" -- again -- while Lauren cleans the glass display cases.

- The sound of metal on metal means the entrance door frame is out of alignment -- no wonder customers have to shove so hard on the door in order to come in.

- Who tuned the in-store music system to the hip-hop channel?

- Boy, the hum from those fluorescent overhead lights is irritating.

You've just discovered five ways to improve your marketing. Each and every thing you do, both inside and outside your door, is a marketing touch point.

We often overlook these things because, as human beings, we rely so heavily on our strongly developed sense of sight. And while other humans do, too, they're still taking in and subconsciously processing other sensory touch points. Their final analysis is the decision whether or not to do business with you.

You can try this experiment with your other senses as well. What does your store smell like (including highly-perfumed employees)? You may be serving coffee in china cups, but have you tasted it lately? The coffee machine may be in need of a good cleaning. Who last used the pen you're about to hand to a customer? Someone who had a peanut butter and jelly sandwich for lunch?

You'll be amazed how much you'll learn about your business by simply closing your eyes.

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