Saturday, March 14, 2009

7 simple things

from my email (yesterday!)

7 Simple Things You Can Do To Improve Your Business Right Now (Jamie Klein)

Posted: 13 Mar 2009 11:35 AM PDT


88055567 Drew's Note: As I try to do every Friday, I'm pleased to bring you a guest post. Meet another thought leader who shares his insights via the blogosphere. So without further ado...Jamie Klein. Again. Enjoy!

The current economic crisis has impacted all businesses. To succeed in this market it is imperative that you identify ways to make things happen in your business.

I’d like to provide you with some marketing and sales tips that will have an impact for any company that wants to improve their performance in this difficult time.

Marketing

  1. Define what a quality lead is before you start prospecting. In addition to age, income and other demographics characteristics it is increasingly important to identify lifestyle trends of your current and prospective buyers.
  2. Message-you must make sure your marketing message is closely tied to the lifestyle trends that you have identified when defining your qualified leads.
  3. Targeting-More than ever you must identify where the highest concentration of your defined leads are before you invest marketing dollars.
  4. Your people and processes for when prospects respond to your marketing and advertising must be identified, written and reviewed. In consumer surveys, most sales and marketing operations score extremely low in these areas.

Sales

  1. To convert leads into sales in a down market, it is critical that your sales people are able to discover essential needs, not just incidental needs.
  2. Follow-up-This is the most abused sales process whether in good or bad markets. Surveys consistently tell us that 70% or more of the leads you give sales people are not followed up on effectively. Your sales and marketing organization cannot possibly survive in a down market unless you have processes, procedures and leadership direction in your sales follow-up.
  3. Performance metrics-all sales and marketing professionals especially in current times must accurately account for the number of leads generated, cost per lead generated, volume per lead generated and cost as a percent of revenue produced. These ideally should be completed by your marketing channel.


A new study just released by The Luxury Institute echoes these findings.

While most people would say these 7 steps are the basic building blocks for marketing and sales, the truth is, most companies aren't doing them consistently or well. In this turbulent economic environment, companies that are spending money on sales and marketing efforts must be more effective and efficient than ever before.

Jamie Klein has over 30 years experience in the sales and marketing real estate profession with a focus on Lead Management and Shared Ownership. Jamie’s expertise coupled with his leadership skills on lead management and sales and marketing programs help to launch theses three major brands into the shared ownership industry.

He launched luxury shared ownership business enterprises, including lead management and sales and marketing operations for the Marriott Vacation Club, the Four Seasons, and, the St. Regis Residence Clubs (on behalf of Starwood).

Purchase his new book, Lead Domination, to learn more.

.

Every Friday is "grab the mic" day. Want to grab the mic and be a guest blogger on Drew's Marketing Minute? Shoot me an e-mail.

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Wizard Wisdom

From a weekly email, lot's of clickable goodies:


Wizard-Chronicle-Newsletter.jpg

Dear Scott,

While everyone talks recession doom and gloom, remember this...

“Great fortunes can be made in times of recession It’s not easy, but everything is half the price it was a few months ago. So if you can, if you’ve got a bit of money, there’s a fortune to be made.” - Sir Richard Branson

In This Issue:

Contrasting to Become the Unmistakable Choice

Money is Flooding to Lower Ticket Items


Contrasting to Become the Unmistakable Choice

By Wizard Partner Tom Wanek

The Contrast Principle states that decisions are not made in isolation. Rather, we look for the differences between our available choices.

Contrasting in marketing is the degree to which your message strikes a clear and unmistakable difference between you and your competition. And as a marketer, it’s your job to frame the buying scenario for the consumer. The objective is to clearly demonstrate how your product or service differs and why this makes you the superior choice.

But allow me to warn you upfront: Contrasting is only effective when you demonstrate these differences using specifics not generalities. And, the first company -- competing in a given market -- to successfully define their position and that of the competition typically wins the game.

Want an example of contrasting in action?

Ask and ye shall receive. Take a gander at the ad copy for 5-Hour Energy:

A typical energy drink comes with a lot of extra baggage 12 teaspoons of sugar, 200 calories, herbal stimulants and 16 ounces of fluid. This combination can make you feel wired up then let you down with a crash. So don’t drink energy drinks. Drink a 5-Hour Energy shot. It has zero sugar, zero herbal stimulants and as much caffeine as a cup of the leading premium coffee. And best of all only four little calories. -

Source: http://www.5hourenergy.com/

Using 77 words -- the approximate length of a 30-second ad -- 5-Hour Energy clearly contrasts the difference between their energy shot and those “canned” energy drinks swimming in calories and sugar. And notice the impressive amount of details provided:

  • 12 teaspoons of sugar
  • 200 calories
  • Herbal stimulants and 16 ounces of fluid
  • Zero sugar
  • Zero herbal stimulants
  • As much caffeine as a cup of the leading premium coffee

The added whammy is the natural language and conversational tone used in the copy. Words like, “extra baggage” and “wired up” provide a clean break from the ho-hum clich├ęs one typically finds in marketing and advertising.

So here’s the bottom line: 5-Hour Energy successfully uses contrasting to position their product and provide consumers with concrete, compelling reasons to buy from them. They are no lingering questions. No branding campaigns using silly mascots. And no attempts to dazzle you with baloney and hype.

Give your customers this same type of clarity. They’re thirsting for it.

PS Need help contrasting your business?

Contact Tom... in North America call (440) 610-9746 or Email: tom@wizardpartners.com.au


Money is Flooding to Lower Ticket Items

“DISCOUNT retailers and fast-food chains are cleaning up at the expense of upmarket competitors as the economic decline drives shoppers to cut household budgets.” - from the Australian online. Article titled, Discounters, fast-food chains revel in tight times.

McDonalds sales are soaring. So too Dominos. People are still eating out… just not as often and at cheaper restaurants.

Starbucks is closing stores. People are still drinking coffee… just not as often and at cheaper coffee shops.

First and Business class passengers are moving into economy. Economy passengers are moving to low cost airlines. People are still flying… just not as often and when they do in cheaper seats.

Department store Myer is losing customers to lower end retailers. People are still buying clothes just not as many and at lower prices.

Where do your products and services sit on the price scale?

How can your business take advantage of this shopping shift?


Closing thought...
Q: What is the best marketing you can do?

A: Deliver a positive and memorable customer experience.

Catch you next week.

Craig Arthur
Wizard Partners

Part of the Wizard of Ads group of companies

PS. Need help to attract more customers and grow your business?

Our Promise? We will NEVER try to sell you.

So what are you waiting for? Pick up the phone and call, or send us an email.

We look forward to hearing your story.

Australia & New Zealand
Call Craig Arthur - (07) 4728 4866 or send an email

United States & Canada
Call Dave Young - 308-254-2732 or send an email

Call Tom Wanek - 440-610-9746 or send an email


Call or email to book a FREE alignment meeting. No obligation. No pressure. It is at this meeting we both decide if there is a fit between our 2 companies. It is only then can we explore your options. We will never try to sell you. Call (07) 4728 4866.

Wizard Partners Australia. Call Us: (07) 4728 4866

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Logos

Yes I said LOGO's not LEGO's...

From Drew:

5 tips on creating a good logo

Posted: 02 Mar 2009 10:09 PM PST

Coca-ColaImage via Wikipedia

It's hard to over-estimate the importance of a good logo. When they're done well -- they can become shorthand for your entire brand or company. Sadly, most logos never achieve that status because they're not well executed.

If you're in the market for a new logo or want to evaluate the one you're currently using, here are 5 golden rules to follow.

Your logo should be very simple -- remember it has to work in very small and very large sizes.

Many logos are designed by committee. And everyone wants to add one more element, thinking that the logo has to tell the company's whole story. In truth, your logo should clean and simple. It doesn't have to tell your story -- it has to become a symbol for your story.

Your logo needs to work in just black and white.

Think of all the places a logo appears in black/white or just one color. It must be designed to work in those situations. In fact, you should view all of your logo design options in black and white and not add color until the final logo is chosen. If color is introduced too soon, it can influence your decision for the wrong reasons. If it doesn't work in black and white, color won't help it.

Your logo should not include elements that would be considered trite.

Have a business in Colorado? Do not have mountains in your logo. Run a business in Texas? Do not use the outline of your state in your logo. Other trite images? Globes, a for sale sign and scales of justice. If several other people in your industry already use a certain image -- then you should not. Does Claire's Hair Salon really need to show me a pair of scissors? I don't think so. Trite = forgettable.

Do not use ordinary colors. Unless your company is ordinary.

There are literally thousands of colors to choose from. Go to an art store and ask to see a Pantone Book. You want the color/colors that convey the essence/emotions of your brand. Color can be incredibly subtle and connotative. Use that to your advantage.

Don't get too trendy. A logo should be relatively evergreen.

When you design a logo -- it's for the long haul. So avoid trendy fonts and colors. Think long-term. You want to avoid the standard fonts but you also want something that is going to stand the test of time.

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Coupons are back

and it is "cool". Saw a segment this morning on the Today show talking about this. When I shop, I use my "Kroger Card" which is in place of store coupons. But it has spread beyond the grocery store.

This is from the THINKing blog:

Coupon, Get Your Coupon

Posted: 13 Mar 2009 06:57 AM PDT

Marketers have long known the power of a coupon, and they are rapidly discovering how much more powerful an online coupon can be than a paper one. Emarketer reports that US retailers are moving rapidly toward the online coupon to help out during the recession because they have discovered that they perform better than paper in terms of redemption,

Although studies show that most Americans still get their coupons from a paper source, online coupons have posted a 140% growth rate over 2007’s previous high. Coupon processor, Inmar, says that recessions always boost coupon use. Data from Comscore regarding online search backs this up.

And Americans, resilient as they are, are seeking ways to save money, as evidenced by the increase in the number of searches for “coupons” (up 161 percent to 19.9 million) and “discount” (up 26 percent to 7.9 million).

If you are going to use coupons, you have to be careful. Quizno’s got into a kerfuffle when a number of its franchisees refused to accept coupons for the chains one million free subs campaign.

Here are a few coupon sites you may want to know about to help out your own wallet. Coupons, CouponCraze, Coupon Album, and Fat Wallet.

Are you using coupons? What is your strategy? How are they performing? I’ll follow up on this post later with comments from retailers and manufacturers who are using coupons effectively.

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Why should they change?


When folks are looking for ways to survive in our current economy, this is a time that you might be able to open doors that were locked before:

Overcoming 'Sales Inertia'

For top closers, the biggest obstacle is often the fact that a prospect has been doing business with one supplier for so long, they don't see any compelling need to change.

Instead of accepting the fact that prospects with entrenched suppliers are not worth the effort, the best closers do research and ask questions up front to uncover areas where the existing supplier is coming up short.

They may also focus on benefits they offer that the existing supplier cannot, and use those as a way of making the prospect at least consider a change.

Source: From Sales Presentation Techniques (That Really Work), by Stephan Schiffman

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Friday, March 13, 2009

Friday Night Marketing News

From Mediapost:

Automotive
by Karl Greenberg
Ford has launched new programs to get the word out about the top-selling pickup truck in the U.S., and best-selling vehicle in the country for 27 years. There is both a new TV spot touting the safety features of the truck and an extension of the automaker's ongoing promotional relationship with country star Toby Keith. The new ad is the sixth in a series that launched last year to promote the 2009 F-150. ... Read the whole story > >
Electronics
by Aaron Baar
The disparity is understandable. Electronics retailers are more specialized than mass merchandisers, and their salespeople get more specific training about electronics products. But the disparity does present an opportunity for retailers and mass merchandisers alike, says J.D. Power's Lawrence Wu. While most consumers are conducting their own research on the type of TVs or brands before entering the store, "the last three feet of the sale is done by the salesperson," he says. ... Read the whole story > >
Restaurants
by Karlene Lukovitz
When it starts airing next week, the 15-second TV spot, from long-time Carl's ad agency Mendelsohn/Zien, will hardly be a shock to the system for the 18-to-34 year old males who are the chain's core customer base. In fact, it might be somewhat tame by the QSR's usual standards. "Compared to some of their other recent commercials, this is mild," says branding consultant Laura Ries. ... Read the whole story > >
Strategy
by Karl Greenberg
What brands have to learn, PepsiCo's senior legal counsel told attendees of an ANA conference, is to play nice with consumers in the intellectual property sandbox. Pepsi has done that both by letting consumers use its property with a fair degree of impunity on fan and even detractor postings, and by setting "guardrail" rules of engagement with user-generated-content programs that let consumers participate in branding. ... Read the whole story > >
Retail
by Sarah Mahoney
When it comes to buying shoes online, one company thinks it's possible that women have entirely too many choices, sold under too many different brands. So when Consolidated Shoe Co. launches its new e-commerce microsite, it will virtually ignore the whole concept of brand, with no mention of the company on the site. ... Read the whole story > >

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Jingles


Interesting article from the BBC:

Lament for the radio ad jingle

The jingle used to rule the radio airwaves - an advertiser's secret weapon in the drive to sell, sell, sell. But just as Smashie and Nicey have been banished from the studio so the ad jingle is meeting its comeuppance, says Brian Hayes.

Early in my career on commercial radio in Australia I remember how jingles for soft drinks, petrol and toothpaste competed with the station's own identification jingles.

They were uplifting punctuations in any show and the best ones were arranged to suit the time of day as well as the product.

"You'll wonder where the yellow went when you brush your teeth with Pepsodent", "things go better with Coke" and "go well, go Shell" remain with me to this day.

These are the exceptions, but even a half decent jingle heard on a breakfast show can stay with you all day... whether you like it or not.

I've recently reacquainted myself with some of the most infectious, for a programme celebrating the art of the radio advert. It took an intensive diet of Abba's Greatest Hits to rid my brain of the Ovaltinies jingle, a too memorable example of the genre.

In fact, anybody of a certain age will still be able to sing the League of Ovaltinies jingle, says Sean Street of Bournemouth University. He thinks it's "probably the most successful advertising jingle of all time".

And so it will remain, because in radio advertising today, the jingle is on its way out.

They are still used but not to the same extent as in the past. Ad people are always looking for new and different ways to make their commercials stand out.

In display advertising you will see a fad for a certain colour combination or a particular type of font but when it seems to be over-used, someone will notice and start using something else. Everything changes.

'Earworms'

"Jingles have almost been outlawed in advertising at the moment," says Andrew Ingram, co-author of Better Radio Advertising. "It's a slightly dirty word. Jingles are fantastically powerful, they do make you remember things.

"The Germans have a lovely expression - 'ohrwurm' - which translates as 'earworm'- the idea that something goes into your ear and wriggles around in there and you have to use a hook to get it out. Jingles are like that, the most famous one on these islands is 'You can't get quicker than a Kwik Fit Fitter'."

But top ad maker Tim Delaney is one of those happy to sign the jingle's death warrant.

"They are kind of the lowest form of life," he says.

Nick Angell, who produces commercials, is almost equally as dismissive.

"The jingle is doh! - don't mention the jingle because they're very passe".

That doesn't mean all is lost. DJ Tony Blackburn is keeping the faith.

"Anyone who says jingles have had their day are completely mad, the jingle does work very effectively. The fact that I can't remember many commercials that we play nowadays but I can remember a jingle from the 60s that told me to start my day with Weetabix must say something."

So what has replaced the humble jingle on our airwaves? Tony Hertz, who came to the UK from the US in the early 70s to bring an American perspective to radio ads here, says the jingle's successor is the rather less romantically named "sonic brand trigger".

The Intel sound and British Airways use of opera music by Delibes are good examples of what he means.

Producer Nick Angell believes such devices are much more refined.

"We use carefully crafted or specially selected music to underpin a script or provide some sort of attachment to the product."

Poking fun

There's one device that radio ad creatives haven't given up on yet - comedy. Some of the best commercials using comedy were for Hamlet cigars - before they were outlawed in 2005.

Mr Delaney likes to use comedy because it brings perspective to a product. He used it to award winning effect in a commercial for Philips in 1982 which used the talents of comedians Mel Smith and Griff Rhys Jones. It poked fun at the British admiration for Japanese electronics at that time.

Remember the man who had a Hoki Koki 2000 television and wanted a videocaster with all the functions? He was shown a Philips (Firrips).

But some say that jokes are only funny the first time you hear them and so people wouldn't be bothered listening to them again. But the success of the 'Firrips' ad and others shows that isn't the case. Even Peter Sellers did some radio commercials.

He played all the roles in a very funny 'Mastermind' sketch for Camping Gaz, including Magnus Magnusson and contestants like Major Faucet Mildew. And the highly-praised American series of commercials called Real Men of Genius for Bud Lite beer, uses both comedy and jingles.

Radio commercials can lift your spirits with singalong jingles, they can make you laugh and they can drive you mad with lists of phone numbers and website addresses.

If you don't mind being shouted at, you are well catered for. As in all artistic endeavours there are very few "masterpieces", but you can't say they don't try to be noticed or aspire to greatness.

A lot of money is spent on making the ads, even more on placing them on radio stations, so it seems reasonable to assume that they make business sense. No one admits to having bought something because they heard it advertised - but, surely, the jingle works.

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/uk_news/magazine/7940524.stm

Published: 2009/03/13 12:45:58 GMT

© BBC MMIX

Here's links to some of the jingles they mentioned in the story:
http://news.bbc.co.uk/1/hi/uk/7938428.stm

http://news.bbc.co.uk/1/hi/uk/7938415.stm

http://news.bbc.co.uk/1/hi/uk/7938430.stm



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Left Brain/Right Brain


And why it matters. From Laura Ries:

How Left-Brain Management got us into this Recession

Now it is time to listen to

Right-Brain Marketing to help get us out.


Top 5 Reasons Management got us into this Recession:


1. Management is focused on reality, when the real problem is perception.

Bob Lutz, global product development chief at General Motors, recently said that the company's Saturn brand probably won’t survive. "We spent a huge bundle of money in giving Saturn an absolutely no-excuses product lineup, top to bottom. They had a better and fresher lineup than any GM division, and the sales just never materialized."

That's the reality, but what’s the perception? Ask anyone "What’s a Saturn?" and you’ll probably get a blank stare.

Oddly enough, Saturn did have a favorable perception as an inexpensive, entry-level car. Four years after its introduction, Saturn reached its high-level mark selling 286,003 vehicles in the U.S. market. Last year Saturn’s "no-excuses product lineup" managed to sell only 188,004 vehicles.


2. Management is focused on expansion when the real opportunity is contraction.

Initially Saturn was available in one model only, the "S" series, although you could have it in a two-door, a four-door or a hatchback version.

So what did Saturn management do next? They expanded the line to include a larger, more expensive Saturn, the "L" series. That was the first step in the long decline of the Saturn brand.

Today, of course, Saturn has five models: Outlook, an 8-passenger crossover. Sky, a sports car. Astra, a compact sedan. Vue, a compact SUV. And Aura, a midsize sedan.

When Saturn was introduced, it was the only U.S. automobile brand available in one-model only. Its enormous initial success should have convinced General Motors that you build brands with a narrow line, not a full line.


3. Management demands "better" products when the real opportunity is "different" products.

Both Sony and Microsoft introduced videogame consoles that were vastly more powerful than their previous products. So who won the videogame battle?

The Nintendo Wii, a far-less powerful product, but one with a difference. The controller, a wireless motion-sensing remote that has revolutionized the videogame industry.

When Red Bull arrived in its unique 8.3-oz can, every major beverage company tried to introduce "better" 8.3-oz energy drinks. Except Monster which was introduced in a 16-oz. can and rapidly became a strong No.2 brand.


4. Management expects rapid growth when the real opportunity lies in the opposite direction.

Almost every powerful brand started slowly. It took Red Bull 9 years to break $100 million in sales. It took Microsoft 10 years to break $100 million in sales. It took Starbucks 11 years to break $100 million in sales. It took Wal-Mart 14 years to break $100 million in sales.

Too often, management tries to accelerate this process with massive up-front marketing expenditures. Take Webvan, for example, the first Internet grocery store. The company opened up in eight with a multi-million-dollar marketing campaign. Two years later, Webvan folded, losing $800 million.

On the other hand, FreshDirect started slowly in New York City only. Today, FreshDirect does $200 million in annual sales and is profitable.

And look at the fiscal disasters of Sirius and XM Satellite Radio. Both were launched with massive marketing campaigns and massive upfront talent investments ($50 million a year to Howard Stern, for example.)

A slow, but steady growth might have made a big difference.


5. Management values "creativity" when the real opportunity lies in "credentials."

Take Tropicana’s recent redesign of its packaging. The new design might have been clever and creative, but consumers rebelled. "It doesn’t look like Tropicana anymore." As a result, PepsiCo backtracked and agreed to bring back the original packaging.

A leading brand, over many decades, tends to become accepted as the only authentic brand in the category. The original. The real thing.

Kellogg's corn flakes. Heinz ketchup. Tabasco pepper sauce. Campbell's soup. Tide detergent. Kleenex tissue. Hertz rent-a-cars. Duracell batteries.

When you change the look of the brand, consumers get nervous. Did the company change the product, too? If not, why did they change the packaging.

You can’t separate the product from the package. The classic Coke bottle reinforces the authenticity of the brand.


Why does management continue to make the same mistakes?

Because they are logical thinkers. Cleverness, rapid growth, better products, expansion and reality are all logical ideas. They just don’t happen to work in marketing.

Actually there are two kinds of thinkers: Left brainers and right brainers. Left brainers are verbal, logical, analytical. They tend to be extroverts and good talkers. Right brainers are visual, intuitive, holistic. They tend to be introverts and good writers.

Now what do you suppose the boardrooms of corporate America are loaded with?

Left brainers, of course.

The vast majority of managers in America today are talkers rather than writers. Extroverts rather than introverts. Why is this so? Because of the way people move up the ladder in the corporate world. There's an old saying: You don't get promoted, you get elected.

Management is like politics. Your fellow workers determine who they would like to work for. Left-brain extroverts are particularly good at schmoozing with people. Right-brain introverts are totally outclassed when it comes to office politics.

As companies grow up and get bigger, their upper levels tend to be staffed almost exclusively with left brainers. As a result, the innovators (primarily right brainers) tend to leave or get pushed out. Like Steve Jobs who was effectively fired from Apple before returning to lead the company to staggering successes.

In spite of their absence from most boardrooms, it's the entrepreneurs who have contributed the most to the U.S. economy. People like Bill Gates, Michael Dell, Howard Schultz and hundreds of others.

Did you ever wonder why almost every successful new brand was launched by an entrepreneur and not by an established company?

Amazon.com was not launched by Barnes & Noble, the world's largest bookstore chain, but by Jeff Bezos, an entrepreneur with no experience selling books.

Southwest Airlines was not launched by any of the major carriers, but by Herb Kelleher, an entrepreneur with no experience in the airline industry.

Google was not launched by any major media company, but by Larry Page and Sergey Brin, two Stanford Ph.D. students.

Both The Coca-Cola Company and PepsiCo, Inc. are more than 100 years old, yet neither company introduced the new brands that would become leaders in the soft-drink categories. Red Bull, Snapple, Gatorade, Dr Pepper and Mountain Dew were all introduced by entrepreneurs. Entrepreneurs who were right brain thinkers and understood marketing.

To get us out of this economic crisis our corporate leaders to understand marketing and take advice from the right brainers in the boardroom.

More of the same left brain thinking is not going to fix GM or Citibank. Now is the time to let the right brainers help clean up this mess and get companies, brands and our country get back on the right track.

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The Opportunity is in your Face


Sometimes we look to hard.

Sometimes we ignore the obvious.

Sometimes we are just stuck in our ways.

A good friend of mine is doing well selling ads in a local hispanic newspaper.

Estimates are 10 to 15% of the population speaks spanish. My friend doesn't even speak it.

But he sees the opportunity. Do you?

This is from Mediapost:

Brand Loyal, Yet Unbranded
In addition to population growth and swelling spending power, one of the characteristics of Latino consumers that has made them attractive to brands and marketers is their tendency toward brand loyalty. Typically, research has proven that, although levels may vary depending on acculturation, Latinos demonstrate more loyalty to brands and products that they trust than their general market counterparts do.

There is no need to explain the opportunity there. However, recent Atlas Group observations and experiences point to a potentially missed opportunity among the acculturating and more acculturated (second or third generation) Latinos, who, under certain circumstances, may be considered "unbranded."

Explanations for less-acculturated Latinos' increased loyalty have a lot to do with familiarity. "[Latinos] believe it is less 'risky' to buy a brand they are familiar with, and they trust brands with which they are familiar," says Jose Lopez Varela, chairman of the Association of Hispanic Advertising Agencies and executive group account director of Lopez Negrete Communications in Houston. They seek brands with a reputation of quality, and recent immigrants tend to purchase products they recognize.

But what happens when acculturating Latinos don't have familiarity to rely on? What happens when the first generation born in the United States and raised with Latino values begins to navigate the complicated world of consumption and to make purchase decisions? They may not have their parents' or grandparents' brand to turn to.

First, not only may they lack access to brands from Latin America that they were loyal to, but they also have a plethora of new brands to with different cultural and aspirational signifiers and value messages to decipher. (After all, how important is a brand's "all-American" heritage if you aren't "all-American"? And how aspirational is it to sport the label "Marc," spelled with the distinctive "c," if you don't know who Marc Jacobs is?) In addition, second-generation Latinos often have access to new opportunities and new experiences that their ancestors didn't.

To illustrate these points, a first-generation Latina respondent recently shared the story of how she made her first significant jewelry purchase decision. She has been fortunate enough, she explained, to earn more money by her mid-thirties than her father made in all of his working years - which allowed her access to new opportunities, such as indulging in a luxury jewelry item. She consulted with friends and family for recommendations. While her U.S.-born friends didn't hesitate to name brands they had always aspired to own - Tiffany, Movado, Cartier, Harry Winston - her father questioned each suggestion. Some names were unfamiliar, and he didn't relate to the aspirational positioning. In that case, the respondent was essentially "unbranded" with no loyalties passed down through the generations.

"Essentially, there is an untapped market among Latinos," says Gerry Rojas, partner of Estudio201, a New Jersey-based lifestyle and experiential agency. "There aren't enough brands reaching out to Latinos who still haven't been targeted, spoken to, in a relevant way." As they seek their own brands, this "unbranded" segment of Latino consumers is hungry for information to help them find products and services that work best for them, to discover what best fits their personalities and unique needs.

"It's new information to them, and they want that info," Rojas says. Using himself as an example, he says, "Growing up, I watched 'Sabado Gigante' with my parents. That's just what it was. But when I discovered 'The A-Team,' 'ALF,' 'Magnum P.I.,' do you think I was going back to my mother's novellas anymore? From then on, I began to discover my preferences on my own initiative. I created my own loyalties."

For marketers, these experiences represent opportunities.

1: Communicate your brand message and essence in terms of Latino cultural. Latinos tend to seek brands that address their values. Keep in mind that, according to a Yankelovich study, quality, convenience and emotion are the top three reasons Latinos select a brand.

2: Create authentic and culturally-relevant brand experiences. The more acculturated segment considers themselves both American and Latino. Marketing efforts should reflect their unique bicultural identity. Also, make the first experience a superior one. A negative experience will only make them more loyal to another preferred brand, Lopez Varela points out.

3: Develop a new relationship. Court this segment like a brand new consumer and develop a brand relationship in the early stages of acculturation. Rojas reiterates the importance of devising a plan with multiple touchpoints to solidify the relationship.

4: Focus on retention. "Latinos, in general, like harmony, avoid conflict, and minimize change. When Latinos find a brand they like, they become advocates of the brand, especially when the quality and value meet their expectations," Lopez Varela says. "They are even willing to spend a little more if they perceive the brand to be a good value."

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Truth


Sales training from one of my mentors:

Truth or consequences

About a year ago I wrote a column on the ABCs of selling. When I came to the letter T, there was no doubt what that word would be: Trust. It's the most important word in business. Trust is central to doing business with anyone. Without it, you have another word that begins with T: Trouble.

Unfortunately, trust in business plummeted worldwide last year, according to an Edelman survey released in late January. The public relations firm discovered that just 38 percent of respondents aged 35 to 64 said they trusted business, down from 58 percent a year earlier—the lowest rating in the survey's 10-year history. It's interesting that U.S. respondents ranked third. People in Ireland and Japan were even more suspicious.

As a life-long businessman I find this especially troubling. In my business, there is nothing more important than trust, although I would list likeability, people skills and chemistry close behind.

I've always believed that telling the truth is the best policy. In business, especially today, it's a must. A few years back, the Forum Corporation of Boston, Mass., studied 341 salespeople from 11 different companies in five different industries. Their purpose was to determine what separated top producers from average producers. When the study was finished, the results were startling. It was not skill, knowledge or charisma that divided the pack. The difference came down to one trait: honesty. When customers trust salespeople, they buy from them!

At MackayMitchell Envelope Company, we don't tolerate anything less than honest negotiations and delivery guarantees. An envelope is a very standard commodity. Sure, the paper, the glue, and the size can vary. The end product can probably be duplicated by a hundred companies. But nobody can match us day in day out, job after job, envelope after envelope, smile after smile. Our customers know we'll do what we promise and try to deliver even more. They've even occasionally forgiven us for an honest mistake because they know we'll make good on our word.

When bailouts, bankruptcies and corporate scandals erupt and occupy the front pages for months on end, people tend to mistrust all of corporate America. That's not fair, but something of a natural reaction.

Is this a recent development? Not exactly. Nearly one hundred years ago, President Theodore Roosevelt addressed the issue: "We demand that big business give people a square deal. In return, we must insist that when anyone engaged in big business honestly endeavors to do right, he shall himself be given a square deal."

When people get in trouble, what do they typically do? They consult someone they already know and trust. When a problem hits, it's a poor time to look for help. How can you depend on someone you have known for half an hour? I would rather rely on someone I know I can count on, even if his or her experience is limited, than start from scratch. That person can usually lead you to someone who can help you if different skills are necessary.

Trust is key.

Wayne Huizenga, the only person in history to have founded three Fortune 500 companies (Blockbuster, Waste Management and AutoNation), knows plenty about building trust. He says: "I don't want to be just a voice on the phone. I have to get to know these guys face-to-face and develop a sincere relationship. That way, if we run into problems in a deal, it doesn't get adversarial. We trust each other and have the confidence we can work things out."

When trust exists in an organization or in a relationship, almost everything else is easier and more comfortable to achieve. Trust is built and maintained by many small actions over time.

Author Marsha Sinetar said: "Trust is not a matter of technique, but of character. We are trusted because of our way of being, not because of our polished exteriors or our expertly crafted communications."

Trust is telling the truth, even when it is difficult, and being truthful and trustworthy in your dealings with customers and staff. People do not or cannot trust each other if they are easily suspicious of one another. Trust involves being optimistic, rather than pessimistic. When we trust people, we are optimistic not only that they are competent to do what we trust them to do, but also that they are committed to doing it.

Mackay's Moral: It takes years to build up trust, but only seconds to destroy it.

Miss a column? The last three weeks of Harvey's columns are always archived online.

More information and learning tools can be found online at harveymackay.com.

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Thursday, March 12, 2009

Thursday Night Marketing News

From Mediapost:

Retail
by Sarah Mahoney
Drexler is also upbeat about the company's bridal business, and says it looking for a bridal-salon location in New York City. But overall, the company's results were grim, including a loss of $13.5 million for the fourth quarter of its fiscal year, compared to net income of $25 million in the same period a year ago. Sales fell 3% to $388 million, and comparable-store sales dropped 13%. ... Read the whole story > >
Strategy
by Karl Greenberg
Doner's Sheryll Kollin told attendees at the ANA conference that advertisers must negotiate hard on the morals-clause issue. "With sites like TMZ and Smoking Gun, celebrities can't do anything without it ending up on media," she said. The bottom line is a strong, specific termination clause allows the brand to protect its image or the image of its product, ends further financial obligation to the celebrity, and gives it the right to terminate with no penalty, she said. ... Read the whole story > >
Beverages
by Karlene Lukovitz
The campaign, "Get Fit By Finals,"combines elements of two ongoing programs: the Body By Milk/"got milk?" educational/promotional program and NBA FIT, a comprehensive initiative promoting fitness and nutrition for children, teens and adults. It draws on NBA stars' appeal and providing tools and prizes to encourage teens to take simple steps to help improve physical fitness and nutrition. ... Read the whole story > >
Telecom
by Aaron Baar
According to a new study, word of mouth has a significant financial impact. "A lot of the emphasis in the industry is around technology and customer acquisition; there isn't a lot of energy spent in customer loyalty," says Satmetrix's Vince Nowinski. "But you can't really overcome having a large number of people saying bad things about you." ... Read the whole story > >
Automotive
by Karl Greenberg
The effort, via Miami-based Zubi Advertising, has a "role playing" theme in which Kate del Castillo says, at the beginning of each spot, "The role I would like to play next is ..." She then names one and describes the characteristics of that persona, which correspond to features of the Ford vehicle featured in that commercial. As she describes the features, the vehicle coalesces behind her. ... Read the whole story > >
Entertainment
by Wayne Friedman
Walt Disney has started up retail stores, broadcast and cable networks, theatrical movies and theme parks--but never, apparently, a community area for collectible/historical fans of the famous entertainment brand. The new effort--D23--is a massive effort. ... Read the whole story > >

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Kogi BBQ truckTaco truck with a Korean twist, fueled by Twitter
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Car on a wintry roadInsurer alerts clients by txt msg when roads get icy
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