Friday, August 07, 2009

Friday Night Marketing News

from Mediapost:

Automotive
by Karl Greenberg
"Americans spend, on average, 101 minutes per day on the road," says Ford's Jim Buczkowksi. "We want to make it their second home on wheels." The automaker's strategy is to focus consumers on entertainment, communication with others and using time wisely and safely, while staying informed and alleviating stress. ... Read the whole story > >
Retail
by Sarah Mahoney
"Good news just isn't showing up in the numbers," says Frank Badillo, senior economist at Retail Forward. "Various factors continue to pressure results - the tax stimulus increased last year's numbers, for example, and even the cash-for-clunkers program is diverting dollars away from store purchases. But once we get past August, we'll see some improvements." ... Read the whole story > >
Airlines
by Tanya Irwin
"It boils down to our customers. They told us that we outshine everyone and the one thing we were falling short on was TrueBlue," Dave Canty, JetBlue's director of loyalty marketing, tells Marketing Daily. "One thing we were hearing loud and clear is 'Your program doesn't meet our needs, but none of the other existing programs do either."' ... Read the whole story > >
Restaurants
by Karlene Lukovitz
Responded the company: "We realize that we underestimated the kind of response we would receive for the Free Burrito Coupon. We have learned a lot and are excited to apply the lessons to future promotions. We invite all of you to join our Facebook fan page and follow @boldbajafresh on Twitter." ... Read the whole story > >
Automotive
by Karl Greenberg
Central to the installation is a video projection exhibit, wherein imagery of the car is projected onto a foam model mimicking the vehicle's physical presence, meaning that the vehicle is completely computer-generated with no physical vehicle presented at all. Infiniti says it is the first automobile company to unveil a vehicle using this type of technology. ... Read the whole story > >
Food
by Aaron Baar
The contest, called "Doing More for Pets," asks consumers to pick among 10 stories of pets rescued from shelters. Among the stories are a Dalmatian rescued after being hit by a car, an abandoned puppy in St. Louis, a chronically ill Lhasa Apso given up because the family couldn't afford medical bills, and seven cats given a new home after being abandoned in New York City. ... Read the whole story > >

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A Primer on "Hispanic"


Last year I began doing research for the local Hispanic newspaper that's been around for 15 years and growing. One question that sometimes comes up due to ignorance, prejudice or the media is not even asked.

The question is: who are/what is Hispanic? Here's an answer from Mediapost:

What Race Are Hispanics?
"What race are Hispanics?" This, along with "Mexican stereotypes" is one of the phrases that generate a more-than-decent amount of traffic to my blog. Looking at it from the inside out, it is a somewhat nonsensical question, but if I put myself in the shoes of the average non-Hispanic American, I can somewhat understand where they are coming from. It is a somewhat intricate, not a black or white (pun intended) matter.

So what race are Hispanics? They can be Asian, Black, Pacific Islander, White, Native American, or any combination of two or more of these. The Latino community is nothing short of a genetic kaleidoscope. The answer to the question is, "Any of the above." Even the Census Bureau has stated that "Hispanics can be of any race, any ancestry, any country of origin."

Each one of the racial categories mentioned above "shares certain distinctive physical traits." When you begin to look closely at the Latino community as a whole, you begin to notice that you simply can't organize it by race; there's just too many of us who don't fit the finite number of races. Most of us fit in the last category, "a combination of two or more races." Yes, many of us are "mestizos" or of mixed racial ancestry. Still, there are some pure bred White, Black or Asian individuals who identify themselves as Latinos.

So the question now is, what are Hispanics? The best way to categorize them is as an ethnic group. An ethnic group is defined as "a group of those who hold in common a set of traditions that distinguish them from others ... such as a sense of historical continuity, a common ancestry, place of origin, religious beliefs and practices, and language." Please note that when defining an ethnic group, it is done not by a rigidly defined set of characteristics that you can't move away from, but as a combination of several traditions, which at the end of the day define a particular outlook in life, a state of mind, a way to interpret and respond to outside situations and stimuli.

Let's see how some of the characteristics of the Latino ethnicity intertwine.

  • Most Latinos can trace back in time an ancestor who came from México, Central or South America (I always include Brazil here), or the Spanish-speaking Caribbean; in many cases they came from there themselves.
  • Some who perfectly fit within the "Hispanic ethnicity," genealogically descend from Spain or Portugal as well. It all goes back to the conquering and colonization of the New World by the Spanish and Portuguese empires. They settled in America (yes, North America as well), bringing their culture, customs, religion, language, etc., and through cultural and racial cross-pollinating, started a brand new ethnicity and a distinct culture.
  • People from elsewhere migrated -- by free will or not -- to Latin America from all corners of the world as well; we can clearly identify people with Italian, Russian, Chinese, Japanese, and German heritage, as well as those from different parts of Africa, just to name a few. Through time, all the latter, although some still maintain most of their genealogical traits, have assimilated/acculturated into their host nations.
  • Individuals from Latin America who migrate to the United States have a shared connection to the history of their country of heritage, which in turn has many similarities with the history of the other Latin American countries. Then they share all these with their American-born offspring.
  • Without going into a religious debate, and looking only at the customs as well as the interpretation of outside stimuli, we can observe that Latin Americans through centuries of Spaniard/Portuguese colonization have a well-ingrained Catholic outlook, independently of the faith they profess.

With all this in mind, I'm sure you are now asking, "Who is Hispanic?" A recent Pew Hispanic Center report that emerged around the commotion about whether or not Sonia Sotomayor was the nation's first Hispanic nominated to the Supreme Court put it quite clearly: "You are if you say so."

Through my years living in the U.S. I've met and befriended many persons who neither physically or through heritage fit the "Latino stereotype," yet their state of mind, their outlook in life is much more Hispanic than that others I've met who "genetically" look Latino. The former, to me, are Hispanics.

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Justify your Prices

From MarketingProfs:


Here's Why I'm Worth It

If you charge a bit more for your product or service, it's more important than ever to tell your customers why you offer a better value than competition that seems less expensive.

In a post at his blog, Jim Connolly presents a hypothetical scenario that offers a choice between two consultants—Bob, who charges £50 an hour, and Sue, whose hourly rate is £75. "Sue is well organised and very experienced in her field," he says. "Something that takes Bob 5 hours to do, can be done to a higher standard by Sue, in half the time."

In other words, when working on an identical project, Sue will actually deliver better results and undercut Bob's bill by more than £60. But she can't expect anyone to assume that is the case: She has to let them know why she's probably cheaper than competitors like Bob.

"Once prospective clients or customers are aware that your higher than average price or fee could save them money and give them a better quality service," says Connolly, "it’s a lot more likely they will hire you."

The Po!nt: Don't charge a higher-than-average price for your product or service without explaining the to your prospective customer why it offers good value.

Source: Jim's Marketing Blog. Click here for the full post.

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Are they REALLY a Prospect?


From Art:

This Week's Tip:
Ask the Cleansing Question to Clean
Up Your Follow-Up File

Greetings!

A question I received through email asked,


"I've got a lot of prospects pending, but not a lot
closing. What should I do?"


Like many questions I get, that's extremely vague
and requires a lot more information before I could
give a specific detailed answer. But it did get me
thinking about a possible reason, and remedy.


I call it the Cleansing Question. Let me set it up
first.


What percent of the people in your follow-up file at
this very second do you feel will ever do business
with you?


Sixty percent?


More? Less?!


You're fairly typical if you answered 50% or less. It's
not a good percentage, but typical.


Why? Oh, there are several reasons. Reps like to hang
on to prospects, thinking that shred of interest might
eventually turn into something. They're right:
Disappointment, and a waste of time, usually.


Others stake their claim to prospects, tattooing their
name on the prospect's record in the "system," just in
case divine intervention comes into play and the person
decides to call up and order on their own. These reps
then usually pounce upon the order and say, "It's mine.
See, has my name on it."


Ask the Cleansing Question
But, the main reason reps have too many "leads working" is
that they don't ask the tough questions early enough. You
need to find out if the person you're talking to is really
a "player." It's always better to get a "no" early, than
to waste time, effort, paper, and postage chasing shadows
that never will materialize.


Here is what you need to do starting today.
Begin cleaning up your "non-prospect" prospects now. Ask
this Cleansing Question,


"Mr./Ms. Prospect, we've been talking for awhile now, and
have agreed that we'd be able to help you (fill in with
how they would benefit.) I want to be sure I'm not bothering
you, or wasting your time or mine. Tell me, what is the
probability we'll be able to work together in the next month?"


Think of the possible results here.

1. They say, "Zero probability." Great, now at least you can
find out the real problem, or move them out. Movement, forward
or out, is progress.


2. They give some other probability. Good, but not great. You
want to ask what you both need to do to move forward now.
Get specifics. Commitments. Ask them to attach time
frames to the commitments. Don't allow them to continue
putting you off. Again, movement here is success.


3. You just might get the business right now. Perfect.
Sometimes all it takes is the nudge to get the boulder
rolling down the mountain.


Do some late-summer cleaning. Examine your follow-up files.
Prepare you own strategy and ask the Cleansing Question.


Go and Have Your Best Week Ever!

Art

QUOTE OF THE WEEK
"There are risks and costs to a program of action. But they
are far less than the long range risks and costs of
comfortable inaction."
John F. Kennedy


=========================================

Art Sobczak, President, Business By Phone Inc. 13254 Stevens St.,
Omaha, NE 68137,
(402) 895-9399. Or, email:arts@businessbyphone.com

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Thursday, August 06, 2009

Thursday Night Marketing News

I'm not to sure about the last item regarding my beloved Diet Mt. Dew:

Retail
by Sarah Mahoney
The good news is that Whole Foods Markets seems to have slowed its sales decline, posting a 2.5% decrease in comparable-store sales for the third quarter, versus a 4.5% dip in the second, and 4% slide in the first. But the interesting news is that the company admits that it has lost its way and is trumpeting a return to its organic roots. ... Read the whole story > >
Beverages
by Karl Greenberg
Carlos Boughton, brand director of Tecate, tells Marketing Daily that the new packaging is already featured in the current Tecate and Tecate Light ads, which launched in April. "We are finalizing with the POS update and incorporating the new look into all communication," he says. ... Read the whole story > >
Food
by Karlene Lukovitz
Messaging highlights specific suggestions for delicious, easy meals that can be made for under $2 per serving with Bumble Bee albacore or chunk light tuna, and drives listeners to bumblebee.com for the recipes and a coupon. One spot focuses on dinner; the other on lunch. ... Read the whole story > >
Financial Services
by Tanya Irwin
"We are seeing mailed credit card offers bottoming out and anticipate that there will be an uptick next year," says Synovate's Anuj Shahani. "... we are seeing almost all issuers either mail somewhat less or somewhat higher, albeit from extremely depressed levels. This is giving credence to the now universal mantra: Less bad is the new good." ... Read the whole story > >
Telecom
by Aaron Baar
"Hispanic consumers know all too well that things in life are painfully unfair, yet they don't often do anything about it," Peiti Feng, manager of advertising and Media for Boost Mobile, tells Marketing Daily. "They accept the abuses as part of life and being Latino." ... Read the whole story > >
Tourism
by Karl Greenberg
"For the first time, we are integrating direct sales into promotions and marketing, so our ad campaigns include promotional packages," says Mario Gonzalez de Lafuente. The June promotion, "Big Thrill, Small Bill," included national and regional TV and print ads, and interactive elements. He says the program has brought 36,000 hotel room bookings to the island. ... Read the whole story > >

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McAngus


With all the recent attention to their Coffee beverages, you may have forgotten that McDonald's is in the burger business.


But they remembered.

Locally, they opened a brand new store on the north side of town where I first sampled their new sandwich last month.

This Saturday, one of my radio stations is doing a live broadcast from another brand new store in town and it'll be fun to see how many of these new burgers they sell:


McDonald's Launches Angus Deluxe Campaign With Instructions
Ad Age
Creative breaking today for McDonald's new, 1/3-pound Angus burger attempts to create an "edgy" personality for the product, Emily Bryson York reports. The burger, which comes with a sweet-tasting bun and a choice of toppings including bacon and cheese; mushroom and Swiss (or the familiar lettuce, tomato, onion, pickle and mayo), presents a challenge as to how to attack it, according to Bill Cimino, group creative director, DDB Chicago.

"You look for the best point of entry, how to start this thing," Cimino says. Hence, a custom-made helmet camera shows commercial viewers how other consumers have successfully navigated the dilemma. As for the edgy part, there are "rules to live by" such as "your sleeve is not a napkin."

McDonald's president-COO Ralph Alvarez admits it's not the best time to launch a premium product, Bryson-York reports, but says that "customers love the product" and it reportedly has been selling briskly in the Chicago market despite -- or maybe because of -- 750 calories and 39 grams of fat. -
Read the whole story...

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Her Priorities

An interesting study from MarketingCharts.com. Click on the charts to make them BIGGER:

Women Ditch Mothers-in-Law for SocNets, but Won’t Pay Fees

More than one-third (36%) of online US and Canadian women would give up chocolate, their Pradas, or their mother-in-law before they gave up their social networks, but only half would be willing to pay subscription fees to continue using such networks, according to a research study and report by ShesConnected Multimedia.

The study, “The Power of Social Networking for Women,” asked women in the US and Canada how they are using social networks and found that 53% of online women use social networks at least weekly, and that social-networking women - most of whom are highly engaged and comfortable with technology - are one of the fastest growing segments on social networking sites.

However, though social networking continues to grow in popularity and presents an increasing array of benefits, the research also found that women place paramount importance on protecting their privacy online. More than nine in 10 women say controlling their privacy settings on social networks is “very important,” and only slightly fewer (86%) say that blocking other users is of utmost importance. This compares with 72% of online women who say that posting comments is very important and 71% who say it’s very important to be able to invite a friend.

shes-connected-social-networks-tools-features-most-important-august-2009.jpg

Ad Supported Models Most Favored

Women are also most comfortable with ad-supported revenue models for social networking sites, the survey found. While 92% have some degree of comfort with seeing ads on social networking sites, only 22% say the same about selling data to advertisers and 28% have comfort with a subscription-based model. Nearly half (49%) say they would not use a social networking site if It charged them a subscription fee.

shes-connected-social-networks-ways-making-money-comfort-with-august-2009.jpg

Reasons for Belonging

Though it is not big news that Facebook, LinkedIn and Twitter are the most popular social networks for women, ShesConnected was surprised by the fact that a large number of women are using such sites to network, market and otherwise promote their businesses.

Top sites joined:

shes-connected-social-networks-which-women-joined-august-2009.jpg

The top five reasons women belong to social networks:

  • To network professionally
  • To stay up-to-date with friends
  • To stay up-to-date with groups they belong to
  • To promote their business.
  • To research products or services

Most Popular Activities

The study also found that a growing number of women are viewing video and reading blogs. According to the study, the most popular social networking activities for women:

  • Viewing video
  • Reading blogs
  • Posting photos
  • Writing in blogs
  • Posting comments

Additional survey findings about social-networking women:

  • More than two-thirds (67%) of survey respondents belong to three social networks, while 48% belong to four or more.
  • The adoption of social networks by older women is especially strong. Women ages 50+ comprised the largest age group in the core user survey.
  • Women using social networks are highly educated, with 23% of respondents having a masters, PhD, or other advanced degree (vs. 8% nationally).
  • More than one-third report they are in business for themselves.
  • Respondents spend a significant amount of time online each day, with 49% reporting they spend 1 - 2 hours per day for personal use and 48% reporting they spend five or more hours per day online for work.
  • 83% of respondents have 50 or more connections or friends.
  • 56% have started at least one group and have joined an average of two to five groups. Nearly one in three (29%) belong to 10 or more groups.

ShesConnected notes that these study findings have potentially profound implications for advertisers. “Women using Social Networks are finding such high utility in these sites that they are becoming a central component of their lives online,” the firm said in a press release, adding that “marketers need to focus on how best to provide value to the community.”

About the study: The study was conducted online using a viral approach to recruitment, including email invitations to ShesConnected registered members, links on Facebook and LinkedIn groups, and Twitter. There were 711 respondents to the study, which took place in April and May of 2009. No incentive was offered. Additional data from the US Census Bureau, Forrester Research and other published third-party studies was used to compile the final report.

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New Ad Campaigns

This weeks update from Amy:

Knob Creek has nothing to imbibe until November. Michael Jordan made from bottles. Let's launch!


This song has legs. Citizens of South Africa unite and dance to Beyoncé's hit song "Single Ladies" in an ad for Vodacom. The ad's main character tours the country, makes friends and forms a dance troupe. Dance montages take place at the beach, on a train platform, construction site, trailer park and convenience store. Our man gets an A for effort. The spot ends with the dance scenes viewed from a cell phone. "Connect more. Live more," urges the tag, illustrating the Internet as easy to use. Watch the ad here, created by Draftfcb Johannesburg.

Old Spice created four online videos to promote its "Swaggerize Your Wallet" contest. The creator of the winning ad wins $10,000. One video shows the difference between using soap and Old Spice Swagger. One arm gets tan and muscular; the other becomes scrawny and turns to dust. See it here. Chainsaws perform better when their owner uses Sawgger deodorant. Watch it here. An arm-wrestling match goes bone-breakingly wrong for a Swagger-less man. See it here. Karate chopping cement blocks proves difficult for a man using regular deodorant. Post-Swagger, he grows a new, stronger arm that completes the job. Watch it here. Videos, created by Wieden + Kennedy Portland, are running on YouTube, dailymotion.com, break.com, vimeo.com and veoh.com.

Coupons.com bowed its first ever TV ad campaign using the tagline: "There's a better way to save." "Free Samples" follows a mom pushing her baby through a grocery store. She rolls past cheese-and-cracker samples and devours the tray. Even her baby is bothered by her voracious ways. Her case was extreme, but haven't we all gone crazy for free food? See it here. The ad was created in-house and directed by Jason Zada from Tool of North America.

Gatorade launched a great TV spot Sunday to promote its limited-edition Michael Jordan bottles, in stores throughout the month. A mosaic of Jordan, slam-dunking a basketball, was erected in Chicago from 14,641 bottles of Gatorade and 16 hours of hard work. The bottles pay tribute to Jordan, who will be inducted into the basketball Hall of Fame in September. The time-lapse ad begins with a crew of workers and bottles of Gatorade and ends at night with the finished product aglow. See the ad here, created by TBWA/Chiat/Day Los Angeles.

We go from the ridiculous to the sublime. Knob Creek Bourbon placed ads in The New York Times and The Wall Street Journal thanking its consumers "for nothing." The latest batch of Knob Creek hasn't fully aged yet, leaving the brand sans product until November. Each batch is aged for nine years and creative informs consumers that the aging process won't be compromised for a quick buck. See the ads here and here. I like the print ads much better than a package I received in the mail a month ago. It was an empty bottle and a press release. Doe Anderson created the ads.

Georgia Power launched an adorable TV spot starring trained dogs that sniff out energy savings for homeowners. The ad stars Ryder Hamilton, a fictitious dog trainer Georgia Power hired to teach canines to help homeowners save money and energy. George the Basset Hound is tasked with finding the more efficient lightbulb: compact fluorescent or incandescent. George whines, and Ryder interprets it as an answer for compact fluorescent. A voice off-camera says, "I didn't see him pick one specifically," which doesn't sit well with Ryder. See the ad here, created by The Richards Group.

It didn't take long for a brand to create an ad poking fun at the recent New Jersey corruption headlines. Virgin Mobile launched a timely print ad in Metro, complete with a teaser box on the front page, directing readers to the full-page ad. "Kickbacks without the handcuffs" read the teaser ad, shown here. Readers who turned to page three found an ad for Virgin Mobile "announcing kickbacks that'll make New Jersey proud." If a consumer and their friend each sign up for a Virgin Mobile plan, they receive free minutes. See the ad here. Toy New York created the campaign.

This ad launched a couple of months ago, and never fails to make me smile. Visa launched "Music," a feel-good commercial promoting the use of Visa Debit as a secure way to make online purchases. Athletes, businessmen, bikers, prom-goers and cowboys sing a line from Rick James' "Superfreak." The spot ends with a woman using her Visa Debit card to purchase the song online. "Who isn't a little freaky," asks voiceover actor Morgan Freeman. See the ad here, created by TBWA/Chiat/Day.

Random iPhone App of the week: Publishers Clearing House launched PCH Trivia, a game created by Triviatown that gives gamers a series of trivia questions to answer and allows users to enter the Publisher's Clearing House sweepstakes once a day. In addition to the free trivia App, PCH also offers a free gaming app. All this technology makes me miss Ed McMahon even more.

Amy Corr is managing editor, online newsletters for MediaPost. She can be reached at amyc@mediapost.com.

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Angry Customers


Doesn't matter why they are upset as much as what you do next:

Dealing with an Angry Client
Prospects who react strongly to what you present, even with anger, are going to be more involved and passionate about your offerings.

Sometimes the best strategy is to let them vent. Anger is emotional, not logical. Often as prospects vent anger they will not give a logical reason for it.

If you listen carefully for the feeling behind the behavior, the reason may become clear. Responding to the feeling that drives the anger may get you to the heart of the matter.

Source: Adapted from Presentations That Change Minds, by Josh Gordon, president of New York-based Gordon Communication Strategies

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Wednesday, August 05, 2009

Wednesday Night Marketing News

Mediapost writes 'em, I post 'em:

Automotive
by Tanya Irwin
"Strategically, this effort is about quality of interaction, not broad reach -- that's what TV and portal ads are for," Dave Schoonover, Kia Motors America national manager, CRM and affiliate marketing, tells Marketing Daily. "Facebook is recognized as a quality service where many of our target audience congregate. We felt it would be a natural fit." ... Read the whole story > >
Technology
by Aaron Baar
The program, which launched this week, capitalizes on times when a PC is not using the full extent of its processor power to run complex calculations for one of the research projects and sends the information back to the project's home servers. ... Read the whole story > >
Automotive
by Karl Greenberg
Jenny Howell, Manager of Interactive Marketing, American Honda Motor Co., tells Marketing Daily. "Honda appreciates that there is a world of Honda lovers out there. Everyone knows someone who loves a Honda. Facebook seemed like the best place to create those connections since it's the place where people already go to connect." ... Read the whole story > >
Retail
by Sarah Mahoney
"This has been a big year for do-it-yourself, not just because of the economy but because people want to express themselves by personalizing and creating their own décor, jewelry, clothing, and of course school-related items," Philo Pappas, EVP/category management for the Irving, Texas-based chain, tells Marketing Daily. ... Read the whole story > >
Spirits
by Karl Greenberg
The advertising campaign features four 30-second spots in which radio personalities DJ Bernhard and MC Wonder Full broadcast music to the world from the "Radio Maliboom Boom studio" on a beach in Barbados. The spots also invite consumers to continue the party by tuning in to Radio Maliboom Boom at http://radiomaliboomboom .com/. ... Read the whole story > >
Research
by Karlene Lukovitz
Traditional media companies need to work with advertisers and agencies to develop sustainable, relevant business models, says The Boston Consulting Group. Advertisers need better support from agencies to leverage opportunities, and large advertisers should be considering developing select in-house capabilities to fill the gaps in their needs. ... Read the whole story > >

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Stay-cations


My wife and I took a weeks vacation in June. We were planning on going no matter what since it was a trip from Indiana to Maine for my sons graduation! However lot's of others have been staying closer to home:

County Fairs' Cheap Tickets Lure Big Crowds

Families who want cheap, close-to-home fun this summer are heading in record numbers to a pastime that dates to the 1800s: the county fair.

"The economy worked in our favor, because so many people were staying home and looking for a lot of bang for their buck," says Linda Zweig, spokeswoman for the San Diego County Fair in California. Attendance for its 22-day run was a record 1,274,442. Previous record: 1,265,997 in 2007.

To attract budget-conscious visitors, the fair offered new discounts, including a $22 pass good for 22 days.

California's Alameda County Fair drew a record 432,000 visitors, 87,000 more than in 2008. "I think everybody has a 'stay-cation' attitude this year," says spokeswoman April Mitchell. For the first time, the fair offered a $30 pass for all 17 days.

The Alameda fair added horse races and promoted a balloon ride that had been at Michael Jackson's Neverland Ranch.

As fair season nears its halfway point, the trend is likely to continue, says Marla Calico, spokeswoman for the International Association of Fairs and Exhibitions.

"In this type of economy, fairs really shine," she says. "There may be pent-up demand because people have not taken vacations...and fairs are a good value."

Other fairs with upticks:

• A record 158,357 people paid $5 each to visit Missouri's Boone County Fair -- a 47 percent increase in gate receipts compared with 2008. "I saw lots of smiles," fair manager George Harris says.

Because of this year's success, the 2010 fair will be extended from seven days to 10.

• The four-day East Otter Tail County Fair in Minnesota, which had charged $6, was free this year. Organizers didn't track attendance, but office manager Jessie Steeke says "foot traffic was way up."

• The Ottawa County Fair in Ohio, which ended Sunday, doesn't have final numbers, but treasurer Jon Overmyer says attendance was up 10-12 percent from 2008 despite rainy weather. The fair's $5 ticket was good for expanded entertainment.

• Attendance was 132,087, up 30 percent from 2008, at Wisconsin's five-day Waukesha County Fair, says executive director Shari Black. Opening-day attendance, when admission was $1 instead of $9, was the highest in the fair's 167-year history.

"People were definitely taking advantage of deals," Black says.

(Source: USA Today, 08/03/09)

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Back to School


Now that August is here, parents will have to fork over the money...


Coupons and Sales Up Front For Back-to-School Buying

According to the National Retail Federation's 2009 Back to School Consumer Intentions and Actions Survey, by BIGresearch, back-to-school shoppers buy only what you need, check for coupons and sales, and grab perfect computer at the right price. The average family with students in grades Kindergarten through 12 is expected to spend $548.72 on school merchandise, down 7.7% from 2008. Total spending on back to school is expected to reach $17.42 billion. 2009 back-to-college and back-to-school spending combined will total $47.50 billion, says the study.

85% of Americans have made some changes to back-to-school plans this year, impacting spending, with 56.2% of back-to-school shoppers hunting for sales more often, 49.6% planning to spend less overall, 41.7% purchasing more store brand/generic products and 40.0% are planning to increase their use of coupons.

Others say the economy has impacted lifestyle decisions, with 11.4% saying children will cut back on extracurricular activities or sports and 5.7% saying that the economy is impacting whether their children will attend a private or public school.

Tracy Mullin, President and CEO of NRF, says "... As people focus primarily on price, strong promotions and deep discounts will ultimately win over back-to-school shoppers this year."

Spending in most back-to-school categories is expected to decrease, except for electronics, which is expected to increase 11% as personal laptops and desktop computers become increasingly more affordable. The average family plans to spend $167.84 on those purchases, compared to $151.61 last year. Families will also spend an average of:

  • $204.67 on clothing and accessories
  • $93.59 on shoes
  • $82.62 on school supplies

Discount stores will be the most popular destination for 74.5% of back-to-school shoppers, while 21.5% of families will shop at drug stores for back-to-school, an 18% increase over last year. In addition:

  • 54.4% of back-to-school shoppers will head to department stores
  • 48.4% will shop at a clothing store and
  • 41.2% will visit office supply stores. Additionally,
  • 22.2% will shop online,
  • 20.8% will shop at electronics stores and
  • 18.2% will shop at a thrift store.

Phil Rist, Executive Vice President, Strategic Initiatives, BIGresearch, says "Americans will be... using newspaper ads, online promotion codes, and... comparison shopping before making decisions... parents hope to begin back-to-school shopping early to spread the spending out... "

According to the survey, 44.4% of Americans will begin their shopping three weeks to one month before school starts to take advantage of retailers' early promotions. And:

  • 31.8% will shop one to two weeks before school starts
  • 2.5% will shop after school starts to take advantage of clearance sales

College students and their parents will spend an average of $618.12 this year, up only 3%. Total college spending is expected to decrease to $30.08 billion.

Tracy Mullin, President and CEO of NRF, observes that "This year, college students are just as focused as their parents on finding good deals and making smart choices with their money."

According to the survey, back-to-college buyers say the economy will cause them to spend less overall (48.0%), shop for sales more often (46.1%), and comparative shop with ad circulars/newspapers (30.8%). The economy will also cause some students to make do with last year's school items (33.6%), share or borrow textbooks instead of buying new ones (17.4%), and will impact students' choice of college (15.0%).

12.8% of survey respondents say the economy will impact where a student lives, with many choosing to save money by living at home. 58.5% of college students will be living at home this year, compared to 54.1% last year and 49.1% in 2007. Families of freshmen will spend $820.77 on back-to-college purchases.

  • Sophomores will spend $496.16
  • Juniors $470.56
  • Seniors $442.00

College students and their families will spend an average of

  • $118.56 on apparel
  • $57.85 on shoes
  • $34.52 on collegiate gear
  • $61.05 on school supplies
  • $80.06 on dorm or apartment furniture
  • $266.08 on electronics or computer-related items

Please visit the NRF here to view complete back-to-school and back-to-college survey results.

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7 steps to Sales Success


Ever climb a flight of stair and miss a step? It throws you off balance and sometimes you can get hurt!

The same can happen in the sales process. This was in an email to radio sales executives:

Daily Sales Tip: Process vs. Results

The harder we push to create results...in other words, close the sale...the less time we have to develop and execute the sales process. Hard times cause what I call the "Skipping and Tripping" syndrome. Skip a step of the process, like conducting a good Client Needs Analysis before making a recommendation of an idea, and you'll trip yourself and lose the sale.

Remember to execute all of RAB's Seven Steps To Selling Success:

1. Prospecting, including finding and qualifying the account as a good match between your typical listener and the prospect's typical customer.

2. Getting the appointment by using the phone and asking for an appointment to determine if you can be of benefit to the prospect -- not to present a pitch.

3. Researching the prospect's industry and the prospect's marketing situation to prepare specific questions for use during the next step.

4. Conducting a Client Needs Analysis meeting to ask your questions and learn about the prospect's objectives, competitive situation, products and services, and current advertising.

5. Writing the proposal, with custom information focusing on the needs of the advertiser and your solution to those needs.

6. Presenting the proposal, emphasizing client benefits rather than station features.

7. Closing, including addressing objections by restating how your recommendation helps the prospect achieve desired advertising objectives.

Source: John Potter, Radio Advertising Bureau VP/Training

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Tuesday, August 04, 2009

Tuesday Night Marketing News

The Latest and Greatest from Mediapost:

Automotive
by Karl Greenberg
The company says 1 million consumers visited www.LetFordRecycleYourRide.com. The only other company that seems to have done as well on a percentage basis was Hyundai, which posted a 21% increase over last month and 12% increase compared with July 2008 in U.S. sales. ... Read the whole story > >
Hospitality
by Karl Greenberg
J.D. Power and Associates ranks hotels in its guest satisfaction survey. Says Michael Drago, "If we were to put all of them together [regardless of segment], the number one brand, the one with the highest satisfaction is Four Seasons." Second place is Ritz-Carlton. Then third and fourth are the less upscale Drury Inn and Embassy Suites. ... Read the whole story > >
Retail
by Sarah Mahoney
"We're hoping to provide a forum for women who are interested in fashion, who happen to be size 14 and above," Jay Dunn, VP/marketing, tells Marketing Daily. "We want to give them a place to get closer to the brand -- inside the brand, so to speak." ... Read the whole story > >
Research
by Karlene Lukovitz
Incumbent communications providers are struggling to adapt to increased innovation, growing price pressures and heightened competition from new and adjacent market entrants, and to differentiate themselves in a crowded, increasingly commoditized market, sums up CMO Council executive director Donovan Neale-May. ... Read the whole story > >
Technology
by Laurie Sullivan
Google took online marketing to billboards Monday, launching an advertising campaign to promote its enterprise productivity suite of apps. Giant billboards will run in four U.S. cities throughout August to encourage businesses to rely on Google applications. ... Read the whole story > >

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They're Not Old

Despite the definition of Senior Citizens being around 55 or 65 and older, the Baby Boomers are now in this age classification and you better not think they're like previous generations that reached that age.

As a matter of fact, today's seniors are "younger" than ever! From MarketingProfs.com:

Now Is the Time for Me, Baby!

Good news for those marketers who seek to advertise aggressively and creatively to Baby Boomers: You are right on track! New research is finding that for many Boomers "aging is not about the inevitable end, but rather about the evolving self." It seems this age group is redefining retirement as "a time of growth when identity is broadened, expressed, and completed through consumption." Let the games begin!

Researchers scoured the current literature on aging and lifestyle, and observed seniors in a wide range of communities and life situations. They've concluded that Boomer retirement is:

A dynamic life stage full of self-evolution and identity work. Marketing hint: Offer personalization on a host of products. Emphasize making a mark, leaving a legacy (take heed, nonprofits).

A culture in which "identity experimentation" is increasingly acceptable and common. Hint: Keep it in mind as you market that those in this age group are rediscovering their true selves. "It's finally time for me!"

A culture that emphasizes staying busy and traveling. Hint: Forget frailty. Assume they're tough and ready to explore!

A time when consumers favor consumption. (Don't you love it?) Hint: Don't rule out any product as not fitting this generation. Instead, try reworking your creative to target them. They're ready to buy—once they're shown a little respect.

The Po!nt: They're as young, and as unique, as they feel. Don't treat today's seniors like they're old and frail. Instead, market to them as the vital, active individuals they truly are. They're ready to respond!

Source: "Consumer Identity Renaissance: The Resurgence of Identity-Inspired Consumption in Retirement," by Hope Jensen Schau, Mary C. Gilly and Mary Wolfinbarger. Journal of Consumer Research, 2009.

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The Case for/against Coupons

I always enjoy the writings of Chuck McKay:

Free Coffee and the Incremental Discount Coupon Tactic

As I headed out the door the Lovely Mrs. McKay handed me a coupon from the new C store in our neighborhood, saying “You've got to stop for gas anyway. Here's a coffee for the road.

The coupon offered a “free coffee beverage” from, oh, let's call 'em “Comfort Brothers Gas Station and Convenience Store.” I thanked her and slipped it in my pocket.

Does a lower price boost sales?

Will the availability of a discount, or a membership card, or a “get one free after purchasing ten” punched card appeal to everyone? Of course not. Some shoppers enjoy clipping, collecting, and organizing coupons to take advantage of reduced prices on household goods. Others see the time required by that process to be part of the price they pay for your service (or product), and will happily agree to full rate not to be bothered with it.

If you offer a discount to shoppers who would have paid full price, you lower profitability. On the other hand, not discounting for the undecided leaves some inventory unsold. That reduces potential gross sales.

How can you tell which is which?

The answer is to let them select themselves.

Make multiple offers at different price points to maximize sales. Those who wish to pay full price may do so, and those who won't will find a subsequent price/value ratio which works for them.

Here's how to make it work:

Let's imagine you have purchased a mailing list of high probability prospects for your new service. Send a letter, or post card, or other mailing piece to the entire list. Offer to sell them your service. Explain why you offer a good value. Some will purchase. Move their names from your “general” list to the “paid full price” list. Guard this new list. The names are golden.

A couple of weeks after your first mailing, send a twenty percent off coupon to everyone who remains on your “general” list. Segregate the names of those who respond to your second mailing into a “twenty percent discount” list.

In ten more days send the remaining names on your “general” list a thirty percent off coupon. See how this works?

You're accomplishing two things through this process.

First, you're maximizing sales at every price point. Second, you're segmenting your general list into groups of people who have now revealed the price at which they're likely to find your future offerings appealing.

The percentage who bought from your very first mailing, divided by the total number of pieces mailed, is your base conversion rate. Over the next few months you might get as much as ten percent more than your base conversion rate, by offering these incremental increases in discounts. Expect the biggest response to be to your first coupon mailing. Each successive offer will produce a smaller number of buyers who will decide the price is finally right.

Of course, the biggest factor which determines your base conversion rate is the offer itself.

Specific dollars (cents) off tend to be more appealing than do percentages, although that can be affected by the market and the range of prices. Another proven appeal is to offer a reward such as free shipping or gift wrapping, or a free upgrade to anyone who spends a minimum amount.

And you'll always want to print expiration dates as part of your call-to-action to force a decision. “This offer good this weekend only,” or “Offer limited to the first 100 customers or close of business Friday, whichever comes first.”

But, I digress from my personal coupon story.

After gassing up the car, I went inside to pay and to pick up a cup for the road.

The coffee menu offered “a full-line of latte and mocha beverages served hot, iced and frozen, with gourmet flavored syrups and chocolates." Every conceivable latte, espresso, and cappuccino. Full caffeine, half caf, caffeine free. With and without sweeteners, cinnamon, or chocolate. Iced lattes and mochas. Frozen lattes and mochas.

Thinking of my blood sugar, I finally decided on a simple cup of house blend.

I presented my coupon and was told that they couldn't honor it as payment for plain coffee. The offer, as I could plainly see, was for one of their prepared coffee beverages. Not for a simple cup of coffee.

Are you serious,” I asked? “You're willing to make a generous gift of a $4.50 banana caramel iced mocha, but you won't let me have a simple sixty-nine cent cup of coffee?” Again, the attendant pointed out that the coupon clearly offered a “free coffee beverage,” and not a free cup of coffee. I handed the woman a dollar, took my change, and headed down the road.

Years ago I watched an older lady present a coupon for a Big Mac at a Burger King restaurant. The young man behind the counter said, "Ma'am, this is a coupon for a McDonald's sandwich. We have a very similar sandwich called the Whopper. May I get one for you at this same price?" This young man gracefully helped his customer avoid embarrassment. Care to bet she became a loyal customer?

I hope my experience was not typical. I hope that the tens of thousands of coupons the Comfort Brothers spent on their grand opening paid off handsomely. In truth they have a beautiful store. It's spotless, modern, and well laid out. The staff is friendly, well trained, well dressed. Shopping in their store should be a pleasure. I'm sure for most people it is.

But I only remember that when I presented my coupon, they told me "No." And that's a tough first experience to overcome.

__________

Chuck McKay is a marketing consultant who helps customers discover, and choose your business. Questions about implementing an incrementally discounted coupon tactic may be directed to ChuckMcKay@ChuckMcKayOnLine.com.

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Resolve


From a newsletter I subscribe to:

"Where Did My New Year's Resolution Go?"
by
Dan Kennedy

Resolve comes easily on December 31st.

By March of the new year, the resolutions made are in disarray, compromised, abandoned. And the resolute determination to make this year, finally, the year you stick to 'em, forgotten altogether.

This is not about guilt over this abandonment. Instead, it is about the real reasons resolutions and the determination to achieve them are lost, year after year after year, and how to change ? yet this year ? and get on track to systematically set and achieve new goals.

Big Idea #1: You can't achieve new goals or make desired changes without allocating time to do so. Check out page 63 of my NO B.S. TIME MANAGEMENT FOR ENTREPRENEURS BOOK* for 'time-blocking' strategy instructions. A big reason that resolutions never become reality is no room made for them in the daily schedule! If your days are already full, and you resolve to get in a 1/2 hour a day on the treadmill or on your laptop, writing that book, that 1/2 hour has to come from somewhere. Something's gotta give! You have to find something or things currently consuming time you can cut 5 or 10 or 15 minutes from.

Big Idea #2: Priorities should govern schedule, schedule shouldn't govern priorities. On pages 69-74 and 103-111 of the same book, I talk about the mistake made by the vast majority of business owners and entrepreneurs - they operate like workers instead of bosses and leaders. They report to a workplace, then they let people and events ad interruptions come at them all day, take control of their day. You have to wrest control away from others' priorities and govern by your priorities. President Bush cited Social Security reform and tax reform as top priorities of his second term, presumably accompanied by resolution of the mess in Iraq. Then along came the tsunami. Still, he organized his tax reform panel. It?s hard to judge from outside looking in, but my belief about W. is that he's determined to govern by his priorities. Are you?

Big Idea #3: Resolutions aren't resolutions without resolve. Only you can decide what really matters to you. You shouldn't bother with 'lip service' faux resolutions, made to appease or satisfy others. Honesty with self is a pre-requisite for success.

Big Idea #4: Resolutions require resources. Almost anything you decide to do, any change you decide to make, any goal you set out to achieve requires new or different resources. That might be a piece of home exercise equipment or different food in the cupboard, a private work environment outside the office, information, people. You aren't really serious about a resolution unless you invest in and gather the required resources.
Sometimes investment motivates follow-through, too.

Big Idea #5: Daily progress. Take the objective and break it all the way down to a timeline and to-do list for each day, from now to fruition. In talking about how he built "The Sharper Image" from a college kid's coffee table start-up to nearly a billion dollar business, Richard Thalleimer references the Bill Murray movie, 'What About Bob', with the psychologist who advocates "Baby Steps." Thallheimer says he still approaches every new project that way today. Good enough for a guy running a billion dollar company, good enough for you. Nothing gets done in occasional big leaps. I wrote four books last year, one hour a day, a handful of pages each day. Here's the goal and discipline that is guaranteed certain to move you closer to any goal each and every day: refuse to end any day without doing some thing, no matter how small, that moves you toward the goal! "The One Thing Behavioral Rule" makes a huge difference.

Big Idea #6: Who motivates the motivator? Paul Meyer, founder of Success Motivation Institute, posed this provocative question. As an entrepreneur, as the leader, you may be doing a lot of motivating of others, but who motivates you? For the most part, you need to create self-motivation with structure, like Big Idea #5. But you can also get into a coaching group, tele-coaching program, hire a one-on-one coach, or just pair up with a like-minded buddy, so there's somebody to hold you accountable, to report progress to, to get an atta-boy! from. Any professional sports coach will tell you: measurement automatically improves performance, and measurement monitored by someone else further improves performance.

Big Idea #7: Build up to change. I've neglected the treadmill for six months, now I'm going back to it. Began January 1st. I'm writing this on the 8th and I'm still 100%. The goal is 30 minutes a day, but if I try doing that out of the starting gate, I'm a goner. So I've started with a measly 5 minutes a day first half of January, 10 minutes a day for next 15 days, 15 minutes a day for all of February ? and I'll miss 10 days while traveling, then 20 minutes a day in March, up to 30 minutes by April. This addresses the tricky balancing act, a desirable and motivating goal but also an achievable goal. So, say you resolve to get up an hour earlier every morning to work on some project. You could start with 15 minutes for two weeks, then 20 minutes for two weeks, then 30 for a month, then 45 for two weeks.

Big Idea #8: It's not too late to re-group! You may already have let your resolutions slip away. Doesn't matter. Today, tonight, tomorrow morning at the latest, block out a couple hours, bolt the door, unplug phone, and re-group. Review the resolutions. Pick one or two or three that mean the most, and apply the above seven ideas.

Big Idea #9: Make better use of your time. Resolve weakens under pressure, under stress, when you feel your time is out of your control. That's the set of circumstances that allows procrastination to gain a foothold. If you want to be more resolute about keeping your resolutions, you must become unwaveringly resolute about controlling your time. A lot of what's in my NO B.S. TIME MANAGEMENT FOR ENTREPRENEURS BOOK has to do with training or re-training all the people in your world to respect your time, to co-operate and facilitate your peak productivity.

About The Author: Dan Kennedy is the author of nine business books, including his newest, NO B.S. TIME MANAGEMENT FOR ENTREPRENEURS, available in bookstores or from online booksellers. For a FREE two month subscription to Dan Kennedy's NO BS Marketing Newsletter go to www.freegiftfrom.com/steveclark

"Entrepreneur and Executive Sales Coach, Steve Clark publishes the highly acclaimed "Tips for Profitable Persuasion" weekly ezine. If you're ready to explode your sales and skyrocket your income while working less get your FREE copy at www.newschoolselling.com."

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