Sunday, March 07, 2010
Mom Marketing
Survey says:
Mom Marketing
According to a Retail Advertising and Marketing Association survey conducted by BIGresearch, women with children at home are more likely to use Facebook, MySpace, and Twitter than average adults. Additionally, 15.3% maintain their own blog. | Use of Popular Social Media (% of Category) | ||
|
| Regularly or Occasionally Use | |
| Medium | Adults 18+ | Moms w/Children at Home |
| | 15.0% | 16.5% |
| MySpace | 34.4 | 42.4 |
| | 50.2 | 60.3 |
| Source: BIGresearch, 2009 | ||
Mike Gatti, Executive Director for RAMA, suggests that "... retailers who aren't engaging customers through social media could be missing the boat... the web provides efficient, convenient ways for brands to stay in front of their most loyal shoppers and attract new ones."
On a scale of one to five, when asked what types of promotions most influence their purchases, product samples in the store, product samples delivered to home, loyalty cards, and special displays rank as moms' favorites, says the report.
| Influence of Promotions (Average on Scale of 1-5) | ||
| Most Likely Influenced By: | Moms | Adults 18+ |
| Product samples in store | 3.8 | 3.5 |
| Product samples delivered to home | 3.6 | 3.2 |
| Shelf coupons | 3.6 | 3.2 |
| Store loyalty cards | 3.5 | 3.2 |
| Special displays | 3.4 | 3.2 |
| Coupons on register tape | 3.0 | 2.8 |
| In store events/contests | 3.0 | 2.8 |
| Product samples ordered online | 3.0 | 2.6 |
| Ads on shelves | 2.9 | 2.7 |
| Parking lot/sidewalk events | 2.7 | 2.4 |
| In store television | 2.1 | 2.0 |
| Check out lane ads | 2.0 | 1.9 |
| TV at gas pumps | 1.7 | 1.6 |
| Source: BIGresearch, 2009 | ||
32.9% of Moms prefer department stores and 23.2% head to specialty apparel stores when shopping for clothes for themselves. Shopping for their children's clothes, 30.7% say they head to discount stores, 19.6% say department stores and 17.5% prefer specialty apparel stores. 45% of Moms also most prefer discounters the most for their children's toys and for their own personal health and beauty products.
When it comes to the traditional media preferences, the Food Network and the Discovery Channel are the top cable TV picks, People and Cosmopolitan are the most-preferred magazines, and the daily local and weekly community newspapers are at the top of the list of most-read.
| Top Cable Networks Watched Regularly (% of Respondents) | |
| Mom's Top Networks | % Watch Regularly |
| Food network | 39.3% |
| Discovery channel | 39.3 |
| Disney channel | 36.1 |
| TLC | 33.8 |
| Lifetime | 32.7 |
| All Adults 18+ | |
| Discovery channel | 44.5 |
| TNT | 35.8 |
| The History channel | 35.4 |
| Food network | 33.0 |
| USA | 32.8 |
| Magazines Read Most Often | |
| Mom's Top List | % Read Most Often |
| People | 8.7% |
| Cosmo | 3.3 |
| Women's Day | 3.3 |
| Good Housekeeping | 2.7 |
| Better Homes & Gardens | 2.7 |
| All Adults 18+ | |
| People | 4.1% |
| Time | 2.4 |
| Reader's Digest | 2.0 |
| Good Housekeeping | 1.9 |
| Woman's Day | 1.6 |
| Newspapers Read Regularly | |
| Mom's | % Read Regularly |
| Local daily | 39.6% |
| Weekly community | 25.7 |
| USA Today | 2.3 |
| New York Times | 2.0 |
| Wall Street Journal | 1.5 |
| All Adults 18+ | |
| Local daily | 47.3% |
| Weekly community | 26.2 |
| USA Today | 3.9 |
| New York Times | 4.1 |
| Wall Street Journal | 3.4 |
| Source: BIGresearch, 2009 | |
Phil Rist, Executive Vice President, Strategic Initiatives, BIGresearch, observes that "...moms like to talk... whether they're having coffee with a friend or updating their Facebook status, these women are eager and willing to share shopping experiences... "
93.6% mothers regularly or occasionally seek the advice of others before buying a service or product, according to the survey. Additionally, 97.2% said they give advice to others about those products or services they purchased.
In strong support of that conclusion, a recent report by Lucid Marketing and Lisafinn entitled "Marketing to Moms on Facebook," finds that social media such as Facebook are occupying an increasingly large share of marketers' attention because of the potential to reach a wide audience through friend-to-friend referrals that inspire trust.
Facebook says the study, is especially attractive to marketers trying to connect with moms, because moms' limited time and fragmented attention make it crucial to market to them in ways that fit into their lifestyles and habits.
More than eight in 10 moms who use Facebook log on daily, and three in 10 log on five or more times a day. More than four in 10 log on from their cell phone/iPhone/Blackberry device at least some of the time.
| Frequency of Facebook Logon by Moms | |
| Frequency | % of Moms Responding |
| 5 or more times a day | 30.3% |
| 2-4 times a day | 37.6 |
| Once a day | 15.2 |
| 3 or more times a week | 9.1 |
| 1-2 times a week | 5.5 |
| Once a week | 1.2 |
| 2-3 times a month | 0.6 |
| Once a month | 0.6 |
| Source: Lucid Marketing, January 2010 | |
Moms' top reason for using Facebook is keeping in touch with friends and family (96%). About a quarter use the site to keep in touch with professional contacts (23%) or play games/participate in quizzes (26%). 59.9% feel neutral about the ads they see onFacebook, and only 5% strongly dislike or are offended by them. While they don't mind ads, many feel there are better ways for marketers to capture their attention while they're on Facebook.
Moms are surprisingly willing to interact with marketers on Facebook, and their open-ended feedback reveals a high level of sophistication and marketing savvy.
Though individual comments don't constitute a comprehensive study, they are valuable in considering the marketing message. When asked what advertisers on Facebook should do that they aren't currently doing, moms say:
- "Provide exclusive offers (i.e., printable coupons, etc.). Exclusive offers would entice me to respond to the message (not just read/glance at [it]), and I might look them up on Facebook and become a fan."
- "[Be] more interactive. Starbucks is a good example - they just had a Facebook campaign where you could send a coupon for a free Starbucks ice cream to a friend on Facebook."
- "Offer samples."
- "Certificates or coupons for freebies or special discount offers. I always print those and use them."
- "Coupons/discounts for family places [such as] restaurants or coupons for grocery stores."
- "[Be] a little more targeted with online store specials."
- "Just talk to us. Direct us to Twitter or a blog where we can talk back. It's too complicated to carry on a conversation on Facebook. Make it easy for us."
- "I'd like to be able to comment on something they post without being alerted every time someone else makes a post. Sometimes that becomes distracting."
- "Provide something that would actually help me, not just market their product."
- "I like being a fan and following the products/companies that I choose to follow. It makes me feel like I can make the choice of what advertisements I am willing to pay attention to. Advertisers need to move toward fan pages and away from the sidebar ads. Running the occasional contest is always fun!"
BIGresearch's Simultaneous Media Usage Survey was compiled for the Retail Advertising & Marketing Association, a division of the National Retail Federation. The survey polled 4,206 moms and 22,624 adults 18+. "Moms" are defined as women with children at home who are younger than age 18.
To read more about the RAMA research, please go here, or please visit Lucid Marketing here for additional details about moms and Facebook. Sphere: Related ContentU.S.P.
from my email is this bit of advice written for those of us in the advertising business:
Daily Sales Tip: Identifying the 'Uniqueness' of Your Clients
In his book, Up Against the Wal-Marts, Don Taylor suggests that you can compete against the major national players, just not at their own game. While it may be difficult, if not impossible, to compete on price or even selection with Wal-Mart, they will never be able to compete on customer service. Nordstrom's "value" is not based on offering the lowest prices, but on their selection of quality merchandise and on their exceptional customer service. 7-Eleven's value comes strictly from convenience, obviously, because their selection is extremely limited and their pricing certainly is not the draw.
All across the country, national and regional players in every industry are squeezing the "local guys." Increased buying power and national marketing budgets are reducing operating margins in just about every industry. The local players must be realistic in determining their strengths, weaknesses, challenges and opportunities. They must identify and vigilantly promote their unique selling proposition in order to compete.
To help your clients determine their unique strengths, you should help them discover why their customers patronize their businesses. Is it the quality of the merchandise, the vast selection, their pricing, their speed or their customer service that stands out? Once you know what it is, develop creative campaigns to promote the strength(s) (without using the obvious clichés).
Also, be honest with your clients about their weaknesses. Are the weaknesses fundamental problems outside of their immediate control (bad location, poor facility, hidden signage, etc.), or is there room for improvement? For the latter, they will probably appreciate your honest assessment along with suggestions of ways to improve. Help them to overcome or minimize the effects of their weaknesses through promotion.
Are there new competitive challenges encroaching on their market share? If not, there probably soon will be, and you should help them prepare by solidifying their current market position. Are there current opportunities that have not been capitalized on or future opportunities that have not been recognized and planned for? When you start identifying new revenue opportunities that have not been previously considered, you will win customers for life.
Source: Sales consultant/author Michael Guld, president of The Guld Resource Group (www.guldresource.com)
Saturday, March 06, 2010
Jeff, Oscar, and Hyundai
from AdAge.com:
How Jeff Bridges Voice-overs Imperiled Hyundai's Oscars Blitz
Kim Basinger, Richard Dreyfuss and Others Helped Hyundai Comply With Oscars Rules at the Last Second
(AdAge.com) -- Hyundai Motor America was all ready to bombard this year's Oscars with a raft of commercials -- seven different spots were locked, loaded and ready to go. With just a few weeks to go before the March 7 ceremony, however, the company was told its commercials were unfit for air.
The problem? Actor Jeff Bridges has been doing voice-overs for Hyundai since 2007. But Mr. Bridges is also a nominee for best actor in this year's contest for his role in "Crazy Heart."
Even with the new accommodation last year that finally let movie studios advertise actual movies during the Oscars, marketers still have to make sure certain ads featuring celebrities or celebrity voice-overs don't run near segments of the program that could feature those very same stars.| Actor Jeff Bridges has been doing voiceovers for Hyundai since 2007. |
Trying to determine where seven Hyundai ads could run and not violate the conditions of Oscars advertising was simply too much to handle, suggested Chris Perry, director-marketing communications, Hyundai Motor America. So the automaker is keeping the ads but has enlisted seven other celebrities to read the marketing copy.
"We've been scrambling to get this thing done," said Mr. Perry. Instead of Mr. Bridges, the ads' narrators will be Kim Basinger, Richard Dreyfuss, David Duchovny, Catherine Keener, Michael Madsen, Mandy Patinkin and Martin Sheen.
Other advertisers taking part in this year's broadcast are Coca-Cola; Ameriprise; CBS Corp.'s CBS Films; The Hershey Company; JCPenney; Kimberly-Clark; McDonald's, Microsoft; Church & Dwight's OxiClean; Samsung Electronics Media; Summit Entertainment; Sprint; and Walt Disney Pictures.
A 30-second spot in ABC's Oscars broadcast costs between $1.3 million and $1.5 million, according to media buyers, close to the price for ad inventory in last year's show. With ratings increases notched by recent airings of the Super Bowl, Grammys and other big-ticket programming, advertisers are hoping the Oscars takes part in the trend.
"It seems like a lot of these shows are picking up steam," said Mr. Perry.
The hope is that, with the Academy of Motion Picture Arts & Sciences broadening its best picture category to 10 nominees, a wider audience will tune in, he added. Oscars ratings have long hinged on the popularity of the best picture slate. In 1997, for example, approximately 55 million viewers tuned in to see the crowd-pleasing "Titanic" win best picture.
But in 2003, when "Chicago" won the honor, only 33 million watched. And just 32 million tuned in to see "No Country for Old Men" snare the prize in 2008. Oscar ratings hit a new low that year, down from about 38.9 million in 2007, according to Nielsen research compiled by Brad Adgate, senior VP-research at independent ad buyer Horizon Media. Oscar ratings rebounded in 2009, when the event snared approximately 36.3 million viewers.
Sphere: Related ContentBargains
Look at where people are looking:
Bargain Hunters Start With Newspaper and Magazine Ads
According to a recent Adweek Media/ Harris Poll, 23% of adult Americans believe that newspaper and magazine advertisements are where they can find the best bargains. 18% believe online advertisements are most likely to help them find the best bargains. 10% say direct mail and 12% catalogs, 11% television commercials, and just 2% say radio. And, 34% of Americans believe the type of ad makes no difference when they are looking for the best bargain.
When looking for the best bargains, different age groups have different ideas of where to look:
- 18-34 year olds are more likely to say online ads (22%) and television commercials (17%) are the best places to go
- 35-44 year olds go online (26%)
- 24% of those 44-54 and 33% of those 55 and older say newspaper and magazine advertisements those are media most likely to help them find the best bargain
| Advertising Most Likely to Help Find Bargain - Age (Base: All U.S. adults; % of Category Respondents) | |||||
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| Age | ||||
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| Total | 18-34 | 35-44 | 45-54 | 55+ |
| Newspaper/Magazine advertisements | 23% | 15% | 16% | 24% | 33% |
| Online advertisements | 18 | 22 | 26 | 17 | 12 |
| Direct mail and catalogs | 12 | 13 | 13 | 14 | 10 |
| Television commercials | 11 | 17 | 12 | 8 | 7 |
| Radio | 2 | 2 | 3 | < .5 | 1 |
| None- the type of ad makes no difference | 34 | 31 | 31 | 36 | 36 |
| Source: Harris Polls, January 2010 | |||||
Among the genders, women are more likely than men to say newspaper and magazine advertisements, and direct mail and catalogs are more likely to help them find a bargain. Men, on the other hand, are more likely to say online advertisements are more likely to help them find a bargain.
There is also an interesting educational difference in the media people believe can help them find the best bargains:
- One-quarter of those with a high school education or less say newspaper and magazine advertisements are more likely to help them find a bargain, compared to 20% of those with at least a college degree.
- 29% with at least a college degree believe online advertisements are more likely to help them find a bargain compared to 12% of those with a high school education or less
| Advertising Most Likely to Help Find Bargain - Gender & Education (Base: All U.S. adults; % of Category Respondents) | ||||||
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| Gender | Education | |||
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| Total | Men | Women | HS or less | Some college | College grad |
| Newspaper/Magazine advertisements | 23% | 22% | 24% | 25% | 23% | 20% |
| Online advertisements | 18 | 21 | 16 | 12 | 18 | 29 |
| Direct mail and catalogs | 12 | 11 | 14 | 12 | 12 | 12 |
| Television commercials | 11 | 12 | 10 | 12 | 12 | 8 |
| Radio | 2 | 2 | 1 | 3 | 1 | 1 |
| None- the type of ad makes no difference | 34 | 32 | 35 | 36 | 33 | 31 |
| Source: Harris Polls, January 2010 | ||||||
The report concludes that, while newspaper ads are still slightly ahead of others among all adults when it comes to bargain hunting, online is not far behind. And, online ads lead newspaper and magazine ads, as a source of information about bargains, among younger, better educated consumers, who are much more attractive to most advertisers.
Please visit here for additional information about the study.
Sphere: Related ContentSales Steps
from my email:
Daily Sales Tip: Asking for Commitment
All of us in sales have, since day one, had it drilled into us that we must "ask for commitment" from the buyer. Unfortunately, too many of us interpret this to mean simply, "ask for the order." Thus, we feel that the only time to ask for commitment is at the end of the sale -- at the "close" -- when we ask for the Ultimate Commitment.
In reality, you should be asking for commitments at various points in a sales cycle. Why? Well, any of you who have experienced "things were going so great, why won't she call me back" syndrome will understand why.
First, if a prospect is unwilling to agree to do even the smallest request, what does that signal to you about how serious this prospect is?
Second, the more commitments you get your prospect to make and keep, the more he has invested in the deal, the more he's stuck his neck out, the more difficult it will be for him to simply walk away from it.
Think about it. If your contact has invested lots of his personal time, and gotten others to do the same (including the boss); if this investment has become a high-profile one throughout the organization, it's going to be pretty difficult for him to simply pull out and say, "we're just going to stick with the status quo," without getting a whole lot of egg on his face.
Remember, commitment is a two-way street. Too often, out of an eagerness to please, we commit to doing something for our prospects without asking for a reciprocal commitment from them. You have just as much of a right to ask a qualified prospect to invest time and effort to get you what you need as he does to ask you to get him what he needs.
Source: Craig James, founder and president of Sales Solutions (www.sales-solutions.biz)
Friday, March 05, 2010
Friday Night Marketing News from Mediapost
There will be more updates over the weekend, 3 Saturday & 3 more on Sunday...
by Karl Greenberg John Stanwood, Cottonelle senior brand manager, says that the Academy Awards makes sense as a property for announcing the poll results and the new product innovation because the Oscars are hugely popular with women "who are the primary shoppers for households and the target for a lot of our communications." ...Read the whole story >>
Retail
by Sarah Mahoney
"The numbers were better than expected, and given how much the weather dampened sales, the gains are really surprising," Frank Badillo, senior economist at Retail Forward, tells Marketing Daily. "Clearly, the bounce back is being driven by shoppers who had cut back on spending as a precautionary measure." ...Read the whole story >>
Food
by Karlene Lukovitz The group of warnings recently issued to food makers reflects the FDA's concern that not all food products labeling is in accordance with the provisions of the Federal Food, Drug, and Cosmetic Act (which prohibits false or misleading claims and restricts nutrient content claims to those defined by FDA regulations). ...Read the whole story >>
Automotive
by Karl Greenberg
General Motors figures the best way to convert assembly-line employees into advocates is to get them behind the wheel. Thus, GM this week is launching its "Vehicle Plant Tour," which comprises a fleet of trucks that will visit some 40 manufacturing facilities. ...Read the whole story >>
Awards
by Sarah Mahoney Other award winners, generated by a live vote during RAMA's Innovation & Marketing Conference in San Francisco, include Ralph Lauren in the digital motion category; JCPenney for outdoor (in preparation for the launch of its Manhattan store launch) and the Home Depot for its gift card campaign. ...Read the whole story >>
Telecom
by Tanya Irwin
Support for the campaign and sweepstakes includes in-store promotions, retail events and handset offers with the launch of the T-Mobile-exclusive Nokia 5230 Nuron. Upon launch of the device in the coming weeks, customers will be able to purchase the new Nokia Nuron at participating retail locations and receive a special edition soccer ball while supplies last. ...Read the whole story >>
Research
by Staff Writers
The new syndicated report will track the marketing impact of social media in the general population and on users in five explicit social media segments. "While there is a sea of data about social media, little of it speaks to the needs of marketers, who are trying to make specific plans for their categories and brands," says Chuck Martin, Director of MediaPost's Center for Media Research. ...Read the whole story >>
P&G Uses 6-Foot Roll Of Bounty For Fundraiser
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Marketing from the Inside Out (Part 2)
This is from Drew:
5 ways to building a committed team
Posted: 26 Feb 2010 06:36 AM PST
Your team. Nothing reflects on a business owner/leader more than the team they build around them.
So in this world of disposable everything -- how do you, with genuine intention, bring that mythical team to life?
Let them have a voice: There are few things more frustrating than having no control over your environment. Whether it's how to handle summer hours, what charities your company will support or how a customer service policy should be amended -- ask them. Ask them and listen.
At MMG, 90% of the company decisions are made collectively. I toss the problem/opportunity on the table and we talk about it. When we think we've covered all the bases, we find consensus and move forward. About 10% of the time, it's a decision I feel I have to ultimately make -- but I want the team's input first. So I ask. And listen.
Don't be afraid to use the "L" word: My friend Steve Farber teaches us in his brilliant book Radical Leap that the word and the emotion love belong in business. That there's nothing wrong with loving your team, your clients and your work. In fact, I'd worry if you don't.
Make it mean something: I don't care what you do -- it has a higher purpose. Jim Collins calls it a big, hairy audacious goal. A true BHAG is clear and compelling, serves as unifying focal point of effort, and acts as a clear catalyst for team spirit. It has a clear finish line, so the organization can know when it has achieved the goal; people like to shoot for finish lines. If you don't have one....your team needs you to create one.
Celebrate the big and little wins: This doesn't have to be "send the sales force to Vegas" sort of celebrations although there's nothing wrong with those either. It can be as simple as gathering everyone together for a quick high five. At MMG, we have a drum that when someone has big news (new client, big project successfully completed etc.) -- we bang the drum and everyone comes to the conference room to hear what's up. It's about taking the moment. (And we're not always good at it either, so cut yourself some slack...but make it part of your culture!)
Thank them in surprising ways: Again -- this doesn't have to be a grand gesture. Part of the fun of it is the surprise element. One of the goofier ones that I've done is this simple. Go buy gift cards for various places (iTunes, restaurants, your local grocery store etc.). Get enough so you have one for each person on your team. Then go buy the same number of Pringle's cans of chips. On the bottom of each Pringle's can -- write a number 1- how many ever you bought. Spread the gift cards all over the conference room table and put all the Pringle's cans in the middle of the table, so no one can read the numbers.
Call in your team and tell them (with love) how proud you are of them or congratulate them on some client accomplishment or whatever. But...set the mood and tell them why you're doing this. Then, let each person randomly pick a Pringle's can. Whoever got the #1 can gets to pick among the gift cards first, etc.
It will take you 10 minutes, but they'll remember it for much longer than that.
Bottom line -- building a rock solid team doesn't happen by accident. It is borne from love, gratitude and sharing a vision that matters. The good news is -- it costs very little and the rewards for you, your team and your clients -- is huge!
Sphere: Related ContentMarketing from the Inside Out (Part 1)
From one of my clients:
Marketing to Your Employees: Say What?
Tons of companies give company-branded gifts to their employees, like a jacket or shirt with the company’s name and logo. Or, if you’re Apple, you give each employee his or her own iPhone. (Now you’re talking!)
But how many companies actually market to their employees? How many companies talk about their brand to their employees and not just to their customers? How often do employees know or truly understand what the company’s brand is or know the organization’s core values?
Many organizations believe that employees know these things intuitively. And some companies probably believe that the external customer is the most important because that’s what generates direct revenue, right?
The problem with this approach is that a company’s employees are often the direct link to the external customer, the front line in the battle to project its brand. That’s why it’s always impressive to find an organization that understands that internal marketing is just as important as external marketing. Sometimes more so. Two companies who really get this are clients of ours.
The GMI Group is a manufacturer and distributor of an extensive variety of packaging products with several divisions and six plants throughout the United States.
GMI does not have a large external marketing budget. But management believes strongly in one of the most fundamental tenets of marketing — employees are the face of the company on many levels. Chris Stoler, president and CEO of GMI, uses the power of internal marketing to motivate his team to the highest levels of customer service possible. He leverages that marketing to make sure that each and every employee is working daily to live up to the company’s customer promise — to project the GMI brand.
Every quarter, Stoler focuses on one aspect of GMI’s customer promise, reinforcing its core values. And he markets this to the company’s employees in many different ways — some traditional like a company newsletter and, yes, those infamous tchotchkes, but also in ways in which many companies would not consider spending marketing dollars or time, like videos. The employees themselves are part of these programs in that they actually participate in the videos — and this participation isn’t limited to just the employees in one plant, but in all of the company’s plants throughout the country. As part of GMI’s internal marketing campaign, Stoler travels to each plant quarterly, personally talking to the employees and discussing why, as members of the GMI team, their role is critical to the company successfully living up to the promise they make to their customer’s every single day.
Another great example of believing the employee is key to an organization’s success is reflected in an initiative our client McDonald’s refers to as “employment image.” This is an important area of focus in our public relations’ efforts on their behalf. While this program certainly includes communicating externally about the many benefits of working at McDonald’s, we are also challenged to help the Owners/ Operators of these restaurants inform and engage their crew so they understand and properly represent the strong McDonald’s brand. This has involved such tools as crew newsletters and videos, as well as some unique crew kits introducing new products — all in the belief that if the crew understands the products they are making and selling, the better they can be in servicing the customer.
It’s always interesting that when you ask a prospective client to discuss their various audiences, they immediately mention external customers and other obvious constituents like shareholders and the media, but they rarely mention their internal customers — the employees.
Internal marketing takes commitment, openness and, yes, a financial investment. But as the clients mentioned above will tell you, what better way to invest your marketing dollars than on the face of your brand?
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. Sphere: Related ContentAvoid "Lazy Listening"
from my email:
As a salesperson, you should work to focus all of your attention on your customer and his/her needs. It's all too easy to swoop in to present a solution instead of listening to your customer's complaints and the specifics of his/her situation.
In this rush to cut to the chase, you're in danger of coming across as arrogant, and your customers end up feeling their input is unimportant and unappreciated. This understandable mistake happens for two reasons:
* You want to come off as the "expert" or "hero," showing off all your knowledge by providing the solution before your customer even has a chance to finish her thought.
* You're in a hurry and don't have the time and energy to devote to your customer.
For example, let's say you're about to leave for a week's vacation when a prospective customer calls. He starts to go into a long story about his business and all the problems he's encountered in the last five years. You realize that you have heard his story -- or at least a similar one -- many times before, so you interrupt him to give your answer to his problems. You try to end the call as soon as possible so you can leave for vacation.
In this case, even though you might have given your prospect a good solution, chances are he won't feel satisfied with the conversation. He didn't have an opportunity to tell you about his business, so he feels shortchanged.
What should you have done? Next time, embrace any information your prospect gives you, whether you believe it's valuable or not. If you truly didn't have time to talk at length with this prospect, you should have requested the opportunity to call him back after you returned from vacation. Otherwise, you should have put down your briefcase, closed your office door, and listened to him for as long as he needed.
Remember, even if you hear the story all the time, it is unique and personal for each customer. Instead of interrupting your customer with your standard solution, let him have the floor and explain his problem. Only then can you proceed with the process of finding a solution for whatever ails him.
Source: Paul Cherry, founder of the sales training firm Performance Based Results (www.pbresults.com)
Thursday, March 04, 2010
Thursday Night Marketing News from Mediapost
Cars, and adult diapers....
Automotive
by Karl Greenberg John Maloney, VP marketing communications for Volvo, tells Marketing Daily the company teased the effort with short videos this week and will follow with a second wave during the summer and an experiential tour. "Last year for S60 we took cars to VIP events at key dealers several months before they were on sale. We will reprise that." ...Read the whole story >>
Food
by Karlene Lukovitz
Supplements shown by the tests to have polychlorinated biphenyl levels above the "safe harbor" consumption limits set by Proposition 65 include ones produced by Omega Protein, Now Health Group, Inc., Pharmavite LLC (Nature Made brand), Solgar, Inc. and TwinLab Corp., according to the lawsuit, which also names CVS, General Nutrition and Rite Aid Corp. ...Read the whole story >>
Retail
by Sarah Mahoney All the new bodycare products -- which include shower gel, body scrub, body lotion, hand cream and lip balm -- are organic, and certified by Ecocert, one of the world's leading organic certification organizations. (The products are based on apple juice, sunflower seed oil, almond seeds, jojoba and beeswax, and sold in recyclable packaging.) ...Read the whole story >>
Telecom
by Aaron Baar
Virgin Mobile USA will promote the updated plans with a multifaceted marketing campaign that will include print, online and out-of-home advertising. The company will also include its message on coffee cup sleeves in 30 of the most trafficked airports nationwide. The sleeves read: "Take It To Go ... The Internet that Is." ...Read the whole story >>
Packaged Goods
by Karl Greenberg The campaign comprises TV, print, digital and grassroots efforts, with the message that Depend "lets me keep my condition invisible so I can stay visible," per brand manager Blake Boulden, who says the company found that peoples' fear of being "outed" as incontinent can lead them to withdraw from social activities. ...Read the whole story >>
Pets
by Tanya Irwin
The company attributes the economy-bucking performance to factors which ensure an even better performance in 2010 and 2011, says Don Montuori, publisher of Packaged Facts. "Chief among these factors is the human/animal bond, which is an excellent insulator against recessionary cutbacks, and the 'pet parent' sentiment has never been higher." ...Read the whole story >>
Debt Plagues More Than One-Third Of U.S.
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Who Could Ask for Anything More....
Toyota!
Remember the jingle?
Al Ries coments from AdAge:
The Toyota Production System is world famous for its focus on "continuous improvements." With all those improvements continuously taking place, why has Toyota suddenly found itself in deep trouble?
You might have your own theory, but here is mine: "Modelitus."
There isn't just one Toyota production line. There are dozens. Currently the company produces 18 different Toyota models. Starting prices range from $12,605 for the Yaris to $65,970 for the Land Cruiser. In addition, Toyota makes three Scion models sold in showrooms adjacent to Toyota showrooms as well as 15 different Lexus models.
In total, Toyota Motor Corporation produces 36 different models, up from 18 a decade ago.
Then there's the often-misunderstood notion of what a model is. Take the Toyota Camry, the company's most popular model.
What's a Camry? The buyer has a choice of two different engines (2.5 or 3.5 liters), two different transmissions (manual or automatic) and three different trim packages (LE, SE and XLE). In all, there are 10 different types of Camrys rolling down Toyota production lines, not counting interior or exterior colors, of course.
Why so many models?
A dealer-driven business
Like many businesses, the automobile business is dealer-driven. Whatever the dealer wants, the dealer ultimately gets. Dealers know best, goes the thinking at headquarters. They interact with customers and prospects every day. And what do dealers want?
Dealers want to have a vehicle that's suitable for every prospect that walks in the door. From cheap two-door sedans to expensive four-door sedans, SUVs and sports cars. Plus an array of trucks, of course.
Hence, the full line.
Modelitus makes sense from the dealer's point of view. The more models on the showroom floor, the greater the sales and the greater the profits. True. Which is why Ford markets 14 different models of cars and trucks. And Chevrolet markets 15 different models.
But modelitus doesn't make sense from a marketing point of view. How do you get a prospect to walk in the dealer's front door? You need to stand for something in the prospect's mind.
And that's extremely difficult when you market a full line of vehicles under one brand name. That's why most automobile brands are saddled with nonsensical marketing slogans.
- Chevrolet: "An American revolution."
- Toyota: "Moving forward."
- Ford: "Drive one."
- Honda: "The power of dreams."
- Nissan: "Shift__the way you move."
- Hyundai: "Think about it."
- Acura: "Advance."
- Infiniti: "Inspired performance."
- Kia: "The power to surprise."
Why? So they could offer big discounts to prospects.
But from a marketing point of view, it made more sense to advertise a relatively low price for the car so we could get more prospects into the dealerships in the first place.
Two schools of thought
In automotive marketing and in marketing in general, there are two diametrically opposed schools of thought.
One school believes you win by offering prospects every possible option. As a result, the vast majority of companies today are focused on "more." More models, more variations, more flavors, more sizes.
That's why there are six types of Saltine Premium crackers, seven types of Grey Poupon mustard, eight types of Windex glass cleaner, 11 types of Thomas' English muffins, 16 types of Listerine mouthwash, 26 types of Pantene shampoo, 32 types of Gatorade sports drink and 42 types of Crest toothpaste.
Left-brain management thinks, "Let's not make the same mistake Henry Any-Color-as-Long-as-It-Is-Black Ford made. Let's not give the prospect any reason not to buy the brand."
Most of this product proliferation is harmless, but not when it involves highly engineered products like automobiles.
The second school of thought, one definitely in the minority, believes you win by narrowing your focus to build a powerful brand that can ultimately dominate its category.
In his book "Inside Steve's Brain", Leander Kahney tells what happened when Steve Jobs returned to Apple in 1997. At the time, he found the company's computer offerings totally confusing. There were four major product lines: Quadras, Power Macs, Performas and PowerBooks, each with a dozen or so different models.
"What I found when I got here was a zillion and one products," Jobs would later say. "Why would I recommend a 3400 over a 4400? When should somebody jump up to a 6500, but not a 7300? If I couldn't figure this out ... how could our customers figure this out?"
So he drew a box with four quadrants. Across the top he wrote "Consumer" and "Professional." Down the side, he wrote "Portable" and "Desktop."
That was it. Four machines to cover everybody.
When you have a simple product line, your clarity of vision rubs off on potential customers. They tend to trust you to know what is best for them.
Apparently Apple's simplification is working for them. The company's share of the computer market has almost doubled, and even today, Apple still has only nine computer models in its product line.
One model vs. many
In 1908, Henry Ford made three car models, the R, the S and the T. The following year, much to the consternation of his salesmen, he announced that in the future he was going to build only one model, the T.
Salesmen, according to Ford, thought that "even greater sales might be had if only we had more models."
One hundred years later, sales people still think the same way: More models equal more sales. That's true in spite of the success of products such as the Ford Model T and the Volkswagen Beetle.
For 18 years in a row, from 1909 to the year 1926, the Ford Model T was the No. 1 selling car in America with an average market share of 43.4% (the following year, Ford discontinued the Model T in order to convert its production lines to its new Model A).
By way of comparison, Toyota's share of the U.S. market last year, all three brands and 36 models combined, was 19.5% in cars and 13.9% in trucks.
Well, you might be thinking, there were a lot fewer car brands in Henry Ford's day. That's not true. There were hundreds of automobile brands in the early 1900s, which is consistent with the way any new category develops.
Early on, for example, there were hundreds of brands of personal computers. Now just a handful are left.
Losing focus at Toyota
Toyota is the leading car brand in America. It's one of the first brands consumers think about when considering a new car. It's also perceived as the highest-quality entry-level brand.
Last year, Toyota sold more cars in America than any other brand by a big margin. It led the No. 2 brand, Honda, by 47% (that will surely change this year).
- Toyota: 938,468
- Honda: 638,465
- Chevrolet: 616,803
- Ford: 486,599
- Nissan: 458,653
- Hyundai: 325,667
And sure enough, Toyota's overwhelming success in cars didn't translate into trucks. Here are U.S. sales of light trucks last year:
- Ford: 954,054
- Chevrolet: 721,809
- Toyota: 557,743
- Honda: 406,596
- Dodge: 360,568
- GMC: 253,053
Sure enough, last year Chevrolet led Ford in cars by 27%. And Ford led Chevrolet in trucks by 32%.
It's a teeter-totter. When one side (trucks) goes up, the other side (cars) goes down. And vice versa. You can't be all things to everybody.
That's one reason why Toyota should have focused on "cars." But there's another reason, too.
A line of retreat
Marketing strategy is like military strategy. When attacking a strong enemy, it's always wise to give them a "line of retreat." You don't necessarily want to box them in a corner where they will fight to the last man. That way, both sides are likely to take enormous casualties.
What made America's island-hopping strategy of World War II in the Pacific so deadly was the lack of a line of retreat for the enemy. At Iwo Jima, for example, there were 26,000 American casualties as compared with 22,000 Japanese casualties, virtually the entire force defending the island.
By staying out of the truck business, Toyota could have given the big American brands a profitable line of retreat.
Instead, Toyota launched a full line of both car and truck models, forcing its American competitors to fight back with huge discounts. Both sides suffered, although the American brands suffered the most.
Blowing up the corporate balloon
Most companies are focused on expansion. When asked what legacy she hopes to leave at Xerox, new CEO Ursula Burns said recently: "It's all about growth. It's all about getting bigger."
Blowing up a corporation, as Toyota and many other companies have done, is like blowing up a balloon. The end can come at any time. Keep blowing and sooner or later the balloon will burst. Not because of an overall failure, but because of some minute imperfection in the balloon itself.
Financial services in the case of General Electric. Credit default swaps in the case of A.I.G. Unintended acceleration in the case of Toyota.
| ABOUT THE AUTHOR | |
| Al Ries is chairman of Ries & Ries, an Atlanta-based marketing strategy firm he runs with his daughter and partner Laura. | |
New Ad Campaigns
from Amy:
Steve Jobs takes my advice. Tropicana provides Vitamin D in many ways. Let's launch!
| |
Colorado restaurant chain Hapa Sushi launched its first TV campaign in five years. Three chefs insult unknowing customers in Japanese. "Did she find those clothes in a ditch," says a chef in the first ad. "Hello ditch-lady. You're so smelly," continues his cohort. Watch it here. It gets worse, aside from the obvious racial stereotypes. Three women are mistaken as men in lady clothes in another ad, shown here. A man dining alone on a Friday night gets the brunt of insults like, "No girl eat with captain of ugly team" and "Say hello to your computer, virgin." See it here. Each ad ends with, "If we insult you, it will be in English." How refreshing. TDA Advertising & Design created the campaign and handled the media buy. 
| Amy Corr is managing editor, online newsletters for MediaPost. She can be reached at amyc@mediapost.com. |
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