Wednesday Night Marketing News from Mediapost

Hard to believe it's Wednesday already....

Financial Services

Chase Partners With Sundance Channel On Films

by Tanya Irwin

The centerpiece is a co-branded weekly film block, "Official Selection: The Tastemaker Series," which airs Wednesdays at 10:30 p.m. from Oct. 7 to Nov. 18. Presented exclusively by Chase Sapphire, the film series will showcase films, filmmakers and artists that are setting trends and paving the way for others in the world of independent cinema. ... Read the whole story > >

Electronics

Powermat Lets The Chargers Do The Talking

by Aaron Baar

The company is targeting new technology early adopters, as well as heavy travelers with this introductory campaign, Woods says. "I think there's a lot of crossover between those two audiences," he says. "So much travel now involves taking our hardware and software with us, it goes hand in hand with early adoption." ... Read the whole story > >

Retail

Neiman Marcus Says Let 'Em Drive Cupcake

by Sarah Mahoney

The retailer's catalog will present all the insane extravagances that the Christmas Book, now in its 83rd year, is best known for, like the adorable little Cupcake Car, a whimsical confection first introduced as an art car at Burning Man, enabling its owner to go up to 7 mph ($25,000.) ... Read the whole story > >

Regulation

Puffery In Ads Is Slippery Slope, Panel Finds

by Karl Greenberg

At the "Best Puffery Panel in the Universe" at the BBB's National Advertising Division Conference in New York, panelists agreed that marketers, creatives and their lawyers should not cross their collective digits and hope the world sees their humorous and exaggeration-filled ad campaign as mere puffery. ... Read the whole story > >

Beverages

Ocean Spray, Jamba Vie For Big Apple's Attention

by Karlene Lukovitz

Even jaded New Yorkers are likely to take note when encountering a cranberry bog in the middle of Rockefeller Center. Or for that matter, being handed a free subway card by Bananaman. Both experiences were possible Tuesday in Manhattan, where Ocean Spray and Jamba Juice each promoted the launch of new national campaigns. ... Read the whole story > >

Retail

Thermador Offers Wealthy Deal On Stoves

by Karl Greenberg

Zack Elkin tells Marketing Daily that the company has weathered the economic storm during the past year partly because of market traction from its "One, Two Free" program that offered a Thermador dishwasher or ventilation hood with the purchase of two other Thermador appliances. "Even the wealthy are looking for great value now." ... Read the whole story > >

Kmart Introduces Online Layaway

McDonald's, Comcast Multicultural Award Winners

Dunkin' Intros First Low-Fat Muffin

Michelin Global Campaign Stars ... Michelin Man

R.L. Polk Looks On The Bright Side Of Life

Microsoft Unveils Windows-Enabled Phones

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Smarty Pants

from the THINKing blog:

Smart Customers

Posted: 06 Oct 2009 06:13 AM PDT

Your customers are smart, but as marketers, we often misconstrue what they are telling us. We’ve written about this before but thought about it again today when I read a piece by Valeria Maltoni entitled “Your Customers Don’t Know What They Want.” Maltoni says,

Whenever you design a survey, a feedback form, write a phone script - throw away everything you know about your product and service. Your customers and prospective customers are not in your head - they don’t have your same history and assumptions about what you ask. Instead, look to capture the outcome they’re seeking. What job are they trying to do?

It’s not that customers don’t know what they want, it is that they don’t know the possibilities.

Krispy Kreme gives us a prime example of asking the right questions and actually listening to their smart customers. They didn’t ask the customers what they wanted in a donut. They asked questions that got to the heart of the Krispy Kreme brand experience. Consumer input brought about the “Hot, Now” signs and the drive-through window.

Maltoni suggests that marketers ask questions and listen to customers for,

• indications as to how they’re solving a problem now or thinking through it
• hints that the second answer is where you should focus
• clues as to what gets their hearts racing in addition to their minds going

Listening to your customers is always good, particularly in a recessionary period.

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Why Twitter?

A few days ago, I was at the District 6 Fall Conference of the American Advertising Federation. Last year, our Fort Wayne chapter was asked to host this event and we accepted.

Friday began with a panel discussion featuring the Marketing Directors of a bank, a bakery, a Television Sales Manager and the head honchos from 3 local advertising/marketing agencies.

Everyone was over 35 years old. Maybe in their 40's and 50's. At least one was in their 60's.

What struck me was how one of the agency heads, whose company is most likely #1 in local business, made a comment that he believed social media was for the 35 and younger crowd!

While it may have started with the youth, its a non-generational communication tool.

The folks at my table on Friday commented that they are not into Twitter, because they don't care what someone had for breakfast.

I listened for a moment, then mentioned that I had around 700 followers on Twitter, and have seen thousands of dollars change hands as I connected people in my community via Twitter.

Friday morning I am presenting a seminar in Fort Wayne entitled, "Join the Conversation" which will be an introduction to Social Media and Marketing. Click here for details. And take a look at this too:

Why I Love Twitter: Timing, Relevance and Immediacy!

Howell Marketing, By Amy Howell — I have tried to embrace the social media revolution with open arms (and mind) and in doing so, I have met some really cool, great people out there and I know without a doubt, which would have never happened “pre-Twitter.”

It’s hard to keep up with all of the tools and applications out there but I applaud and encourage any attempt. Here are a few of my own observations and thoughts about Twitter, social media and relationships that I think speak to some of the timeliest and relevant issues we are all faced with in our businesses as well as personally.

My Observations:

* Twitter is my first choice of a social media tool for a busy executive. It’s easy, intuitive, immediate and conducive to relationship building (which is everything in my business).

* Some of the best on Twitter all have similar characteristics: good content that is timely, relevant and useful. They also have another similar trait: they are gracious and helpful. Seems to me the Twitter community is sophisticated, informed and successful (of course I block anyone who is offensive, rude or crude).

* Twitter isn’t always “news” but it sure is a source for “breaking news” and that is huge!

* Twitter is the magnifying glass for blogs—they’re easy to find and people are circulating them more often. 140 characters are plenty to link a blog and give an opinion.

* There is an art to Re-Tweeting and replying on Twitter and many on Twitter “get it.” How many times have we read lately to credit people, thank people, and recognize others’ successes?

* The information we have access to from Social Media is awesome. Good information is powerful and profitable. The other day a client was talking about something I had just seen (and researched) and I was able to pull out relevant, helpful, up to date resources for him within minutes, so gone are the old timeframes of taking “days to get back” to clients. They need information now and social media gives us that.

* People still tell me Twitter is silly. That’s o.k. though. As I work with clients who haven’t yet tasted the Kool-aid, I have to quietly give my clients what they want while plotting and planning for their inevitable toe-dip into the social media sea (“Hello, Amy, can you come show me how to set up my facebook page?” I LIVE for those calls!!!)

* You don’t have to know “everything” (and who can?) and what I love about social media and business is the collaboration of teams/people to get the job done. Social media is permeating throughout organizations in a lot of ways (sales, HR, employee recruitment and retention, etc) and what is great is working on teams to explore creative ways to infuse it to help a company on a lot of levels.

* Finally, Social Media has taught us the importance of brevity, creativity and saying the most important things right off the bat. I think the Twitter creators are genius! Colleges should teach 140 characters or less classes (my next career)

For more helpful insights, tips and ‘Breaking New’ you can reach Amy here:

Amy Howell, President and CEO, Howell Marketing Strategies, LLC

408 S. Front Street, Suite 104 Memphis, TN 38103

(901) 521-1453 office – (901) 351-7186 cell

Web: http://www.Howell-Marketing.com – Twitter: http://twitter.com/HowellMarketing

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Paperwork

from Craig Garber:

Order forms are near and dear to my heart.

Why?

Because that's where your prospect becomes a buyer. It's
the final 'handshake' of the deal, if you will.

But there are a number of things you need to bear in mind
when you're designing your order form, to keep the ball
moving. See, if you're buyers are gonna bail, they're most
likely to do right here. So you want to be very clever
when it comes to putting your order form together.

Here are 3 order form secrets you want to be all over:

1. First, don't make a big deal about your order form. I
don't care whether you're doing direct mail or whether
you're creating a web page online, the order form is NOT
the time for big glitzy graphics and lots of hoopla going
on.

Imagine, if you were buying a car, and just before you
walk into the financing guy's office (which is intimidating
enough, unless you've gone out of your way to control these
folks), as you walk through the door, someone puts a party
hat over your head and bells and whistles start going off.

Might make you feel strange, no?

Might make you think, "Hmmm... what's really going on
here?"

So the first thing you want to do is make your order form
as simple and ordinary as possible. If it's not natural
and ordinary to your prospect, then ordering won't be
natural to them either, and that is NOT the environment you
want to create.

2. Second, consider putting upsells on your order form.
The best time to sell someone something else, is when
they're getting ready to buy from you.

This is why you're surrounded by crap at the register in
your grocery store. You're primed to grab a few more
things and drop them on the counter at this point, and most
of us do just that.

3. And lastly, make sure you offer multiple ways of
ordering.

When I use direct mail, for example, there are always
three ways of ordering: fax, phone, or postal mail, and
many times I also have a fourth way - I point them to a
website.

Even online - when you go to any of my ordering pages,
you can also order by phone or fax.

Again, this makes things much easier for your buyers.

And easy... is good.

Now before I go, let me just say this: every time I say
something even remotely negative about car salesman, or the
car selling process, I get a half-dozen guys sending in
e-mails here about how much they hate me and how they're
unsubscribing.

That would be like me getting all up in a roar with
someone because they said I'm bald.

Why the truth is so painful for some people, I just don't
know.

I'd rather spend my time focusing on the positive energy
in life, than the negative, but... who knows? Maybe I'm
missing something...

Now go sell something, Craig Garber

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Tuesday Night Marketing News from Mediapost

Click to read more:

Regulation

FTC Plans Effort To Educate Kids About Advertising

by Karl Greenberg

"The distinction between ads and other content is often blurred to the point that even older kids may not get when they are being pitched," said the FTC's David Vladeck. "The goals are to teach kids to be aware of ads, analyze and understand them, and the benefits of being an informed consumer." ... Read the whole story > >

Food

F&B's, Retailers Lead New Anti-Obesity Coalition

by Karlene Lukovitz

An unprecedented coalition of more than 40 retailers, food and beverage manufacturers, non-governmental organizations and educators have committed to a national, multi-year effort to help reduce obesity, particularly among children, by 2015. The Healthy Weight Commitment Foundation will seek to help people achieve a healthy weight through "energy balance." ... Read the whole story > >

Retail

Icebreaker Promo Ties In To N.Y. Marathon

by Aaron Baar

Through the promotion (at Paragon Sports in Union Square), marathoners and aspiring marathoners can have a t-shirt made from synthetic materials turned into a reusable bag, and receive a 26.2% (calibrated as the same distance as a marathon) discount on an Icebreaker purchase and a pair of the company's socks for free, says Icebreaker's Molly King. ... Read the whole story > >

Regulation

FTC Clamps Down On Ad Testimonials

by Karl Greenberg

Mary Engle, associate director of ad practices at the commission, speaking at the NAD Annual Conference in New York on Monday, said that while the guides are not law, they "put meat on the bones" of the general rules in Section 5 of the FTC Act. "The change puts advertisers using endorsements on the same footing as all other advertisers." ... Read the whole story > >

Gaming

Kobe Bryant Stars In 2K Sports' Campaign

by Tanya Irwin

The campaign targets a youth audience and takes the position that "it is far more effective to provoke than sell," says 72andSunny Partner and Creative Director Glenn Cole. The campaign speaks to the imaginary NBA player in all of us, he adds. TV spots, which run through the end of October, feature motion capture computer-generated imagery courtesy of the Los Angeles office of Psyop, as well as a high-energy soundtrack. ... Read the whole story > >

Retail

Levi's Launches Scavenger Hunts, Live Theater

by Sarah Mahoney

"We are always trying to reach consumers in the spaces that they live, and in this case, invite them to engage actively as well," says a spokesperson for Wieden + Kennedy in Portland, Ore., Levi's ad agency. The "Go Forth" game, also by W+K, asks users to solve the mystery: "Who was Grayson Ozias IV and where is his fortune?" ... Read the whole story > >

Church's Chicken Names Lavely As CMO

MillerCoors Dangles Beer In Denver Marathon

AAA Guide Highlights Eco-Certified Hotels

Ethical Products Buck Recession, Gain 9% This Year

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Is Starbucks Really this Stupid?

I've been watching for quite awhile as the once powerful Coffee King has destroyed themselves, month after month for the past couple of years.

And it's not the economy, or the competition. They need a plan. Click here for more details on a Plan.

And read the latest from Laura Ries:

Starbucks is Shooting Itself in the Cup

Starbucks latest offensive isn’t against McDonald’s or Dunkin’ Donuts it is against itself. And if Starbucks weapon is as successful as it says it will be then they could be shooting themselves in the cup.

Starbucks new weapon is its Via instant coffee, a brand that went nationwide this week after several months of testing in Seattle, Chicago and London.

To support the Via launch, Starbucks will be promoting a “taste challenge” in its own stores. The “taste challenge” aims to convince consumers that they cannot tell the difference between a cup of Starbucks instant coffee and a cup of Starbucks store brew.

Instant coffee as good as store-brewed Starbucks? Sounds impossible.

But Howard Schultz is convinced people won’t be able to tell the difference. He has even been fooling people with Starbucks Via instant coffee for almost a year at home and at his office. Nobody including his wife, according to Schultz, realized it was instant.

It’s a brilliant idea for a new gourmet instant coffee to set-up a blind taste test against the world leader in high-end coffee. Especially if the instant coffee wins the taste test.

It’s an insane idea for the world’s leading gourmet coffee chain to set-up a blind taste test in its own stores that it hopes it will lose. Losing a taste test devalues the loser as much as it praises the winner.

Weaker brands have used blind taste tests for decades to try to take market share from leading brands. The “Pepsi Challenge” and the companion commercials of the 1980’s pitted Pepsi against Coca-Cola.

Blind tasters overwhelmingly picked the sweeter taste of Pepsi over Coke. The humiliation of the taste test losses in part led Coca-Cola to launch the disastrous New Coke. A key factor in the development of New Coke was that it should beat Pepsi in blind taste tests.

Today, Starbucks is using a taste test that could lead to another disaster. If a cheaper, instant coffee can be easily made at home or work and it tastes as good as the real thing, why waste time and money going to a retail store?

Starbucks really let the fox in the hen house by hosting the taste tests in its very own stores. Starbucks is telling consumers exactly what they shouldn’t be telling consumers right in its very own stores.

In the minds of consumers Starbucks is believed to be expensive but “worth it.” Consumers praise the high-quality of the coffee. Hosting a taste test in your own stores to tell consumers your product is no better than instant coffee is not a good message to send and not a good challenge to lose.

Starbucks, of course, claims that its instant coffee will not damage its core store brand since “portability” and “value” are the important selling points of Via.

Apparently, the inconvenience of long lines and extravagance of a high price are things consumers would not give up for a Starbucks instant coffee that tastes the same as the store brand?

A brand can often be successful by being the opposite of the leading brand. Target vs. Walmart. Scope vs. Listerine. Pepsi vs. Coke. Monster vs. Red Bull. But there is no potential for one brand to do two strategies at once and succeed.

A high-end brand needs to stay focused no matter what. Introducing cheaper versions of expensive products damage the credibility and power of the core brand.

In the current economic climate Starbucks has been under intense criticism over its “$4 cup” image. Starbucks needs to flight that by promoting a simple pricing strategy to drive home the message that $2 is really the price of a cup of coffee at Starbucks and that it is worth every penny because it’s Starbucks.

Suggested headline for a Starbucks ad:

“Two bucks and worth it.”

Instead they are spending money on ads with this headline
“Instant coffee that tastes as delicious as our brewed.”

This ad and Via instant coffee at $1 a cup isn’t likely to tempt too many Taster’s Choice drinkers who get a cup of instant for 10 cents.

What the introduction, advertising and promotion of Starbucks Via is most likely to do is drive people out of Starbucks stores by denigrating the brand in the minds of the consumers.

It is the law of unintended consequence. Saying that an instant coffee (even an expensive instant coffee) can taste just as good as the Starbucks real thing devalues the brewed high-end coffee category.

It is bad enough when your competition knocks your brand, it is worse when you do it to yourself. Yet it happens all the time.

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Is Starbucks Really this Crazy?

At 2pm today, I'll have the opposing viewpoint. This is from my email last week:

Starbucks Marketing Via Taste Tests: Crazy Like A Fox

Commentary by Bob Phibbs, The Retail Doctor

(Last) week Starbucks' Via instant coffee arrived and the chain is expecting 10 million consumers to visit its 7,500 company-run cafes to participate in a taste test this weekend.

Howard Schultz, the CEO of Starbucks said, "I've been fooling people for almost a year now. This is not your grandmother's instant coffee. The quality of Via is a mirror image of the quality and taste of Starbucks brewed coffee."

What makes Starbucks' launch so interesting is that I can't think of one other brand trying to get you to try their cheaper version and then proudly saying you can't tell the difference. It's like RL POLO or Coach telling people their outlet stores had the exact same merchandise.

This is not like GAP owning Old Navy but defying someone to tell the difference. GAP realizes they are covering two distinct markets that have some overlap and my guess is so does Starbucks. But Starbucks is crazy like a fox.

Now I have to confess to RetailWire readers, when this was first announced I chimed in with, "This thing is struggling to keep the wheels on. They already ceded to McDonald's earlier this week with their 'value' menu.'" I've changed my mind.

Do they expect the Starbucks customer will switch to instant? Probably not but it gave them the opportunity to come back to the market with lots of press and offers to their 4 million Facebook Fans. What was the hook?

You have to come in to the stores to taste it.

Starbucks is expecting a lot of customers Friday through Monday. And while they're there they also may become reacquainted with their addictive habit of their morning coffee.

The first thing that went during the recession for some were the indulgences of specialty coffee; a weekly habit can cost $1000 a year. It's not a secret that their traffic counts are down; this may just be the gimmick to bring those who have built Starbucks into one of the most easily recognized brands in the world back to the cup.

Sure, Via is a product that is targeted to the 21 billion international fast food and vending machine markets but who wouldn't choose a Starbucks out of a vending machine at your mechanic's over the swill that had been sitting on a burner for two days?

Pundits are still puzzling why Starbucks would "push instant" at the expense of their premium brand. Crazy like a fox.

Notice they could have just as easily sent packets in the mail for you to try or bundled it with your morning newspaper. But they knew the goal of their event: to get people to come back to the store and rebuild a brand sorely in need of a jolt.

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Do you Have IT?

from my email:


Are You Gutsy, or Wimpy?

By Drew Laughlin

Being able to get out of your comfort zone and do
something you really don't want to do is called "having
guts."

Knowing what you should do and not doing it because
you're afraid of leaving your comfort zone is called
"being a wimp."

If you take a look at the successful people around you,
you'll notice how often they are willing to go outside
their comfort zones to achieve something they want.

They understand that having guts is essential to being
successful. It doesn't matter to them if they're comfortable
or not.

They just do what they have to do to go where they want
to go.

You've got to have the guts to do something that others
won't do. If you can consistently do the things that your
competitors don't do ? or more likely, won't do ? you will
be in the top three percent of your field.

Remember, your competition sits in their comfort zones,
never to leave. This presents huge opportunities for you.

For a lot of people, asking a prospect about budgets or
the decision making process is very difficult. It takes guts
to ask those questions.

Stretch beyond your comfort zone and reach heights
you've only dreamed about.

Asking tough questions is essential, though. Go beyond
what's comfortable for you and ask,

"Do you have a budget for this type of project?"

Follow up with "Do you mind sharing it with me in round
numbers?"

People are not used to hearing quality questions like that.
It leaves them with no option but to answer the questions.

Why?

Because they don't want to leave their comfort zones by
telling you they can't answer your questions.

Let's take it one step further and talk about price, a pretty
common obstacle that salespeople face. If you have the
guts to stick to your price when someone gives you a
little push back, you are going to be more successful
and you're going to make more money. When we
understand the value of what we offer, we won't
automatically reduce price just because a customer
raises an objection.

This principle can apply to any employee in any role.

Just because someone pushes back on an idea or
suggestion does not mean you have to cave in. Sure,
you don't want to be a jerk about how you respond and
butt heads with another person unnecessarily. However,
having the guts to stand up for yourself and what you
believe is the right thing to do. When you do that tactfully,
you'll gain tremendous respect.

Finally, it also takes guts to close the sale. If you can ask
for the sale consistently, when the time is right, you're
going to dramatically boost your sales income.

Have guts to do the things that you might be a little
scared of right now ? things outside your comfort zone ?
and success is sure to follow.

Now Take Action
How can you go outside of your comfort zone today?

Is it by asking questions in a meeting, confronting someone
who's done you wrong, or asking someone for help?

Whatever it is, chose one and do it now. Have guts!

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Monday Night Marketing News from Mediapost

Click & Go...

Automotive

Subaru, MTVN Effort Aligns Legacy With Legacy

by Karl Greenberg

"We were developing themed programming around gay history, and we believed picking people who have built a legacy in the gay community is something our audience would find compelling," says Logo's Amy Wigler. The timing was fortuitous since Subaru was doing a re-design and re-launch of Legacy." ... Read the whole story > >

Retail

Fragrance Foundation Launches 'One Drop' Ads

by Sarah Mahoney

"Our goal was to get people to refocus on the juice," Stephen Niedzwiecki, owner and creative director of Yard, the New York ad agency that created the campaign, tells Marketing Daily. "We want to get them to fall in love again with what's in the bottle, and remind them of the artistry and the alchemy in a single drop of fragrance." ... Read the whole story > >

Mobile

Targeting Working Moms? Catch 'Em On The Run

by Aaron Baar

"The cell phone device is used more than just talking -- she uses it extensively, whether it's downloading coupons, looking up movies online or taking pictures," says Scarborough Research's Howard Goldberg. "It's so integrated into her life, she's a prime target for reaching via mobile marketing because she's using it for more than just having a conversation." ... Read the whole story > >

Financial Services

Insurance Cos. Top Sportscasts Ad Spenders

by David Goetzl

As troubled businesses cut spending in sportscasts, Nielsen data show that wealthy insurance companies helped offset some of the drop-off over the first half of the year. Fast-food was the second-largest, followed by wireless services and beer. ... Read the whole story > >

Automotive

Saturn Leaves GM's Orbit; Gravity Will Be Missed

by Karl Greenberg

"Saturn is the only Detroit brand in the study that consumers didn't see as competing with other Detroit brands," says Pointlogic's Peter Kloprogge. It also seems a lot more consumers will miss Saturn than, say, Buick, based on another survey question that asked which brands respondents would least miss if they were to vanish. ... Read the whole story > >

Dell To Include Napster Service On Some PCs

American Gets Window Seat With 'Iron Chef'

Marketing Hiring To Rise In The Coming Year

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Not Even FREE works...

if you are trying to convert the youth to read newspapers:

You Can Lead a Kid To The Newspaper, But...

In France, in order to reverse the trend that, from one generation to the next, young people are less likely to read newspapers, free subscriptions (with strings) are being tried successfully.

According to the World Association of Newspapers' recent report on the French government's decision to give free, one-day-a-week newspaper subscriptions to every 18- to 24-year old in the country as a way to encourage newspaper reading and civic participation, the publishers say it works, though the free giveaway is not the only factor.

Jeanne-Emmanuelle Hutin, a member of the Directors Committee at Ouest France, speaking at the World Young Reader Conference in Prague, Czech Republic, said "Ouest France, the nation's largest general interest newspaper, increased the number of regular readers among 18- to 24-year olds by 22,000 in 3 years, with 12% re-subscribing after their free subscriptions ended. And 65% of the young subscribers continue to read Ouest France at least once a week after their free subscriptions end."

However, the study concedes that the newspapers must succeed in interesting the young in the news, with relevant content and approaches, by investing in other platforms and by strengthening links with them.

A marketing campaign using new media had to be created, and special content added for young people -- traditional marketing didn't really work, says the report. And a strategy to move the free subscribers to paid subscriptions had to be planned. In Ouest France's case, a two-day-a-week paid subscription was offered after the one-day-a-week free subscription expired.

Government subsidies are part of a package of measures recommended after a three-month government study of the French press last year. Other measures include:

• Tax breaks to investors in online journalism
• Doubling of government advertising in print and online news media
• An increase in the number of distribution points
• Government support in negotiations with printing unions

"Free subscriptions are not a cure-all remedy, especially if there is nothing of interest to young readers in the newspaper. But it is the backbone of several initiatives to meet the needs of the youth," concludes Ms Hutin.

For more information about this study, please go to the summaries of the conference presentations here.

Me again. Niche papers can work. I do work for a local Hispanic paper that has over 30,000 readers and has been around for 15 years. And it is reaching a growing population with low overhead and there is no other local Hispanic media. (A 3 year old Hispanic Radio station just folded recently due to poor management resulting in continued financial losses).

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The Offer

From ContentMarketingToday:

The Godfather Guide to Direct Marketing: Make Me an Offer I Can’t Refuse

Posted: 02 Oct 2009 08:18 AM PDT

You Must Persuade Me to Act or Your Beautiful Promotional Piece Will Sleep with the Fishes

I was perversely inspired to write this because of a recent gorgeous direct mailing I received from local French restaurant.

They did a lot of things right. There was some beautiful photography that captured the essence of this charming little bistro. They described how the restaurant and its cuisine were uniquely appealing. They shared some impressive awards and recognitions for their excellence. They included their Web address. And, they even provided a little map that showed me exactly how to find it.

There was only one thing missing. But it was the most important thing: They failed to make me an offer that would entice me to dine at the restaurant. In fact, there was no offer at all.

So here’s a lesson we all learned long ago from the Godfather: make me an offer I can’t refuse and I will respond promptly and positively. For this restaurant, there were certainly plenty of possibilities. It could’ve been free appetizers, free glasses of the house wine, buy one entrée get one free, 50% off a bottle of wine or free desserts. But they offered me nothing.

Even worse, there was no call to action, offer or no offer. On one side of the 3" x 7" promotion piece the name of the restaurant served as the headline. On the flipside, the only thing resembling a headline was "recipient of many awards". They didn’t ask me to take any action at all.

For me and I’m sure for most of the recipients who aren’t familiar with this restaurant, we will probably toss the promotion piece without taking any action. It appears to be a pretty expensively produced item so that means between postage, design, and printing they have spent a lot of money. But, I think most of that money was wasted because they neither asked me to come to the restaurant nor offered me any compelling reason to do so.

I am not a direct marketing expert, but I do know this: If you make me an offer I can’t refuse, you increase the likelihood of taking the action you want me to take by orders of magnitude. Moreover, if you had told me to bring an offer-containing promotion piece to the restaurant, you could have measured the results of your marketing efforts precisely. Finally, whatever you gave away would have been more than balanced by the money I spent on everything else during my visit–not to mention the money I would likely spend on future visits.

The direct marketing lesson: When you make your prospective customers an offer they can’t refuse, it will work for you just as effectively as it worked for the Godfather all those years ago.

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Asking

This mornings sales tip is from Jeff Garrison. Click on the three links if you dare to become better.

Ask the Right Questions

Posted: 23 Sep 2009 08:27 PM PDT

Ask the right questions and the prospect will give you an appointment to come see him.

Ask the right questions and the prospect will get to know and like you.

Ask the right questions and the prospect will begin to trust you.

Ask the right questions and the prospect will tell you everything you need to create an exact solution and earn the business.

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Classic Ad of the Week

Love the Afro's! And how many kids can you fit in one of those?

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Scary Halloween for Retailers

A lot of focus is on the December holidays, but we have another big one in a couple of weeks:

As Economy Impacts Halloween, Americans Get Creative

One of the spookiest parts of Halloween this year may be the amount people plan to spend on their celebrations. According to the National Retail Federation's 2009 Halloween Consumer Intentions and Actions Survey, conducted by BIGresearch, consumers are expected to spend an average of $56.31 on Halloween, down from $66.54 last year. Total spending on the holiday is expected to reach $4.75 billion.

Nearly one in three (29.6 percent) consumers say the state of the U.S. economy will impact their Halloween spending plans. Of those who will be affected, the largest majority (88.0 percent) plan to spend less overall. Others say they will be buying less candy (46.5 percent), using last year's decorations without buying new ones (35.4 percent), making costumes instead of purchasing them (16.8 percent), reusing last year's costumes (15.8 percent), and not participating in as many Halloween activities such as haunted houses or fall festivals (26.4 percent).

"The economy has caught up to Halloween this year," said Tracy Mullin, President and CEO, National Retail Federation. "Since retailers know that Americans will be looking to celebrate on a budget, there's no doubt we will see creative costume and decorating ideas in every price point imaginable."

As more evidence of just how pervasive the effect of the recession has been, fewer people plan to celebrate Halloween this year (62.1 percent vs. 64.5 percent last year), and those who are celebrating will participate in fewer activities. According to the survey, one-third (33.4 percent) will dress in costume, compared to 35.3 percent last year. The number of people carving a pumpkin will also drop (42.4 percent compared to 44.6 percent last year).

Additionally, fewer people will throw or attend a party (30.2 percent vs. 31.1 percent in 2008), visit a haunted house (17.0 percent vs. 18.1 percent in 2008) and hand out candy (71.2 percent vs. 73.7 percent last year). Even with the advent of life-sized yard decorations, which have become immensely popular in recent years, fewer people plan to decorate their home or yard (47.3 percent vs. 50.3 percent).

Young adults, who were last year's big spenders for Halloween, plan to scale back dramatically this year. According to the survey, the average 18-24 year-old will spend $68.56 on the holiday, compared to $86.59 last year and $81.91 in 2007.

"With part-time jobs more scarce and parents unable to help out financially, many young adults have been impacted substantially by the economy," said Phil Rist, Executive Vice President, Strategic Initiatives, BIGresearch. "The overriding theme for Americans' Halloween celebrations this year will be, 'How creative can I be, and how little can I spend?'"

The survey found consumers plan to spend an average of $20.75 on costumes, which includes children's and pets' costumes; $17.99 on candy; $14.54 on decorations and $3.02 on greeting cards.

(Source: National Retail Federation, 09/29/09)

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Lessons from Leno

From a recent email...

How to Sell Like Jay Leno

By Geoffrey James

I recently wrote a profile of Jay Leno for SellingPower magazine. That article pointed out that Leno isn’t just an entertainer, but also a consummate sales professional. Leno’s first job was in Sales (door-to-door, in fact) and he’s always been active in selling both his TV program and his numerous public speaking engagements. Most recently, Leno led the charge to sell his new prime-time program to NBC affiliates.

In the SellingPower article, I included a sidebar entitled “How to Sell Like Jay Leno.” The sidebar was intended for sales managers and had advice about setting up a sales team to encourage the kind of personable sales style — a combination of determination and likeability — that Leno uses.

Since Leno’s new TV show looks likely to be a big success, I thought it would be fun to revisit that advice. You’ll have to find a copy of the magazine to get the full version, but here’s a shorter version, with a bit extra added (rule #6 is new):

• RULE #1: Failure is never permanent. Leno wasn’t an overnight sensation. Some of his early performances on Carson’s Tonight Show were weak and he didn’t appear on television for years. But he kept honing his skills and eventually became a regular guest on Letterman’s show, eventually earning him a guest host gig on Tonight, which led to his current success.
• RULE #2: Work is better than vacation. Leno is famous for spending his free time doing personal appearances that help his career. He seldom, if ever, takes vacations although he is quite generous in giving vacations to his staff. The truth is that, unlike people who see work as a way to fund other “fun” activities, Leno see work as something that’s fun all by itself.
• RULE #3: Fake it before you make it. Leno has a history of sticking his neck out to further his career. For example, when Leno was just beginning to appear regularly on television, his career got a big public relations boost when he was selected “Best Face to Caricature” by the “American Caricature Association,” an organization that he invented.
• RULE #4: Everyone is a potential customer. Unlike celebrities who remain distant from their public, Leno makes a point of being accessible. He invariably waves and smiles when he’s spotted in driving one of his many rare automobiles. When hired for speeches, he greets and shakes the hands of as many people as possible.
• RULE #5: Give back to the community. One way that Leno builds his image as a likeable guy is to dedicate time to community service. For example, Leno has been known to fly at his own expense to Chicago or Detroit to do benefits for the homeless. While Leno’s generosity is clearly genuine, there’s no doubt that it helps his “brand” when people view him as a nice guy.
• RULE #6: Be generous with your thank-yous. After the original article appeared, Leno personally called Sellingpower publisher Gerhard Gschwandtner and thanked him for the publishing the article. He didn’t have to do that, but that gives you an indication of how Leno thinks. Leno truly is the nice guy he plays on TV — and that’s why he’s so successful.

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Spending Priorities

Interesting Report from Marketing Charts.com...

American Consumers Shifting Priorities

According to the American Express Spending & Saving Tracker, the first in a monthly series of reports about consumers' views, 60% of respondents who participated in the study said they intend to spend about the same or more in the next 30 days, (compared to the last 30 days), 40% plan to spend less. Among the respondents who said they would spend less in the next 30 days, the top three reasons were "trying to save money," "reducing debt," and that they "have the money but feel now is not the time to spend."

Among the general population, the greatest number of consumers said their top priority expenses one year ago were vacations (25%) and dining out (24%). Today, only 7% named vacations as a high priority and dining was named as a high priority for only eight%. However health and home expenses, like buying organic food and home maintenance were on the rise even as consumers traded down or out on other items.

So far, consumers are showing restraint when it comes to early holiday shopping. When asked what discount level would motivate them to begin their holiday shopping at retail stores in the next 30 days, 69% said they would not be motivated by a department store discount. Of that group 44% feel it is too early to start holiday shopping, including 52% of affluent and 48% of young professionals.

Pamela Codispoti, American Express Senior Vice President and General Manager, Cardmember Services, says "... there has been a shift in how consumers are expressing their wants and needs... (they) have taken stock of their financial situation and have a better handle on what their spending and saving plans are in the current economy... amid their cautiousness we are seeing some areas where people are willing to increase spending."

Comparing their priorities versus one year ago, two significant shifts areapparent:

• Car maintenance showed the single most significant jump in priority (up 37 percentage points). 42% named it as a high priority today, but only 5% said that automobile maintenance and care was a high priority one year ago
• The second highest shift was related to grooming, which rose 28 percentage points in priority. 46% said salon hairstyling and grooming was a high priority today; only 18% of adults said that it was a high priority one year ago

Higher Priority Rating Today vs. One Year Ago (% of Respondents)
	% of Respondents
Expense	More Important Today	Important One Year Ago
Salon hair styling	46%	18
Auto maintenance	43	5
Private schools	16	6
Home improvements	14	7
Organic food	13	7
Massage	13	6
Source: American Express Spending & Saving Tracker, September 2009

Less Important Today vs. One Year Ago (% of Respondents)
	% of Respondents
Expense	High Importance Today	Important One Year Ago
Pet care	11%	18%
Dining out	8	24
Clothes	8	18
Fashion	7	15
House cleaning service	6	12
Vacation	7	25
Sports activities	5	12
Source: American Express Spending & Saving Tracker, September 2009

Additional key findings included:

• Young professionals were more optimistic about the economy and more likely to increase spending during the next 30 days (24% versus 14% of the affluent and 10% of the general population)
• When young professionals who plan to spend more were asked what they would be spending it on, two thirds said clothing (65%), and more than half said dining out (54%) and travel (53%)
• Among the general population, about one-half of consumers who expect to spend more said they plan to increase their spending on groceries and clothes (49% each)
• The affluent who expect to spend more said it would be on travel (56%), dining out (47%) and clothes (43%)
• When American consumers were asked what they would do with $500 of found money, one-third of consumers said they would pay off their regular monthly bills. One-in-four said they would apply it to pay off credit card debt or save it (26% each).
• 33% of young professionals would put found money toward their credit card debt, compared to 26% of the affluent
• More young professionals than affluents would use the money to go on a shopping spree (16% versus 6%)

Would Spend "Found" $500 (% of Respondents)
Spend On	% Would Spend
Regular monthly bills	32%
Save	26
Pay credit card debt	26
Mortgage/rent payment	11
Splurge at restaurant	10
Buy for others	10
Shopping spree for self	7
Source: American Express Spending & Saving Tracker, September 2009

Assessing consumers' spending plans on large purchases (over $500), young professionals showed the most willingness to spend:

• Only 15% of the respondents in the general population plan to make a large purchase in the next 30 days.
• The spenders were predominantly young professionals (38% versus 24% affluent)
• Young professionals also planned to spend more on those purchases ($2,460) than their affluent counterparts ($2,170)

74% of the general population cited "seeing family and friends affected by the recession" was stated as being the most significant impact of the economic downturn. In fact, says the report, more people cited this reason than "losing their job" (30%), "losses in the stock market" (54%), and "losses in retirement or 401K savings" (56%).

To review the complete AMEX release, please go here.

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3 Marketing Basics

From a client of mine:

Breaking Through the Clutter

Sep. 30, 2009

Written by:
Mathew Siecker

Breaking through the clutter in marketing and advertising these days can be a huge challenge. In order to successfully build awareness, your message will most likely have one or more of the following characteristics.

1. Consistency - You must be consistent with your message. Kinda like the practice makes perfect saying, if people hear it and see it enough they will inherently get it. Think Apple for a consistent message.
2. Targeted - A great consistent message also needs to be very targeted. Knowing the statistics and the demographics of your end user will shape your message and deliver it with outstanding results.
3. Disruptive - Who needs either of the above when you can attract attention by simply being over the top — those crazy and outrageous ideas that look beyond demographics or the consistency of the message. It puts all its eggs in the crazy basket and just goes with it.

I bring this up now because, after the big Kanye West hoopla that went on, I came upon a statistic that utterly shocked me. Check out this graph that documented what the public was tweeting about after the MTV Video Music Awards.

Sorry Kanye, nice try.

So why did Lady GaGa get so much tweeting in comparison to the seemingly hot topic of Kanye West? You could say it’s because of the crazy costumes or her above average performance. But I believe that GaGa was able to incorporate all three above practices to successfully brand herself in the current market of pop culture.

I think she gets an A++ for consistency. Her image was very bizarre, but the radical outfits were consistent with her image and kept the camera on her at all times. Targeting and demographics were a big win too. Knowing that a majority of the MTV viewers are connected to the social media frenzy, Gaga was able to spread herself quickly through twitter posts. Another risky event was her performance. Again she stayed consistent with the crazy costumes. The performance itself was also above average and, with the help of some Hollywood blood, she was even able to act like she died at the end. This was a great disruptive tactic that created controversy which in turn increased the talk and views of people blogging.

So what did we learn from this? A tight, focused and consistent branding look and message can really go a long way. People are getting used to outrageous outbursts like Kanye’s interruption. These types of interruptive messages are not thought through, lack any clear message and may ultimately hurt the brand. In Lady GaGa’s case, she was smart and clear with her message and branding. This in turn caused people to want to know more. And judging from all the tweets involving her name, she came out as the real winner of the evening. It’s great to see in the midst of all the interruptive nonsense out there, a quality, consistent and focused message can still reign supreme!

If you enjoyed this article or would like to receive your own personal "subscription" to Villing & Company’s News & Views, click here to get free updates by e-mail or RSS.

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Advertising, Social Media & Word of Mouth

Before heading to the 2nd day of our annual district conference of the AAF, I read this article and have a few disagreements with it.

Word of Mouth is Still Sexier Than Social Media

Social Media is sexy. Word of mouth is still sexier. Yea, I know, everyone wants a date with sexy social media right now, but trust me, word of mouth is the one you want to take home to meet your parents. Word of mouth is that long-term relationship that can turn into marriage. And I have the sexy numbers to prove it.

Photo Credit: Tiago Ribeiro

Yesterday morning at the Austin Social Media Breakfast, WOM Enthusiast John Moore, of Brand Autopsy, gave the numbers to about 40 marketing and social media students.
(*John Moore graciously sent me his cheat sheet with all the stats you see here.)

- 76% of consumers believe companies are untruthful in their advertising.
(Source: Bold Mouth’s “Perceptions, Practices, and Ethics” report 2006)

- 78% of global consumers say recommendations from other consumers are the most credible form of advertising.
(Source: Nielsen’s “Truth in Advertising” report 2007)

- The typical American takes part in 125 person-to-person/voice-to-voice conversations per week that discuss products and services.
(Source: Keller Fay Talk Track study)

- Specific brands mentioned 90 times per week in person-to-person/voice-to-voice conversations
(Source: Keller Fay Talk Track study 2009)

- 90% of brand-related conversations take place offline versus 10% online.
(Source: Keller Fay Talk Track study)

- Ranked from highest to lowest, the most common activity where word of mouth (WOM) occurs:

1. Face-to-face conversations - 75%
2. Voice-to-Voice conversation - 15%
3. Text message - 3.2%
4. Email - 3.1%
5. Social media - 1.3% <----- Are you stunned by that figure?
   (Source: Keller Fay Talk Track study 2009)

- Positive WOM comments out-weigh to negative comments by a ratio of 6:1
(Source: Keller Fay Talk Track study)

- 22% of all brand-related conversations are sparked directly from advertising.
(Source: Keller Fay Talk Track study)

- 78% of brand-related conversations are sparked by something else:

1. Great customer service
2. Explaining how something works
3. Remarkable and entertaining stuff

At this point, you may be wondering why social media seems like it's so much sexier than word of mouth. After all, social media gets all the press these days, and social media gets all the dates with the a-list marketers. In my opinion, that's precisely why. The a-list marketers and bloggers are heavy users of social media, and consequently, social media seems sexier. I believe it's borne out by this statistic:

- 5% of Twitter users account for 75% of all activity on Twitter. And 75% of Twitter users joined in 2009. 94% of users have less than 100 followers.
(Source: sysmos “Inside Twitter” report 2009)

How to Score a Date with Word of Mouth

Social media looks good on your arm when you walk into a marketing meeting. All the other marketers will wink at you and tell you how good your Facebook page looks, how clever your tweets are. But you'd better pay some attention to traditional word-of-mouth, because that's where you can really score. How? John Moore had some relationship advice for those trying to court word of mouth.

1. People don't want to do business with a boring brand.
What's exciting about your brand? It's not enough to deliver good customer service and sell quality products. Anyone can do that. Create a little excitement by doing something unusual and unexpected.

2. A brand's personality is the best form of advertising.
Let your personality shine in your business. Are you outgoing, gregarious? Maybe you have a great sense of humor and you like to be playful? Whatever your personality, make it evident in your brand. Your brand is an extension of you.

3. Remarkable things get remarked about.
Customers don't recommend the ordinary. Add some magic spots to your business; products, services, and experience, that customers have to talk about.

4. Create an experience that sparks conversation.
Creating a remarkable customer experience may be the best way to earn word of mouth. Think of interaction with customers as the opportunity to write a customer story that they can re-tell to their friends and family.

Now that you know, who do you want to date? Sure go out with social media for some good times, meet some new friends. But now that you know the numbers, don't you think word of mouth is sexier? How will it affect the way you market your business?

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Me again. The very best social media efforts result in Word of Mouth Conversations. Twitter is an excellent example of this in my opinion. If you treat Social Media as a self-serving broadcast of why you and your business is hot stuff, then you are doing it wrong.

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