Table of Contents
Consumer
Marketing: The Three Faces of Consumer-Focused Innovation
Branding:
Getting Emotional
Advertising:
National Spot Radio the Only Loser in Ad Revenue
Direct
Marketing:
Catalog and Web Buyers, Together but Separate
Infomercials:
Who's Afraid of "Consumer Reports"?
Let's Get
Personal
|
ADVERTISEMENT
$100 of FREE advertising at www.metricsdirectoffer.com/cmar5.
Bring your site up to 6,500 visitors for FREE with $100 of free
search advertising from MetricsDirect. Been using Overture or Google?
With 20 million users, MetricsDirect delivers customers to you, right
when they want your product.
Get $100 of FREE advertising. www.metricsdirectoffer.com/cmar5.
This Week's Stories
Consumer Marketing:
The Three Faces of Consumer-Focused Innovation
Meeting the consumer's current needs isn't enough to
guarantee success. According to Forrester Research, a marketer must
also
anticipate future needs. In a recently released report, Forrester
analyst Christine Spivey Overby dubs this proactive approach
"consumer-focused innovation" and outlines its three basic principles:
1) "Consumers are active co-innovators." According to Overby, "more and
more, companies are using consumer insights to shape innovation from an
embryonic concept to market testing." By way of example she cites
Nestle's "relationship centers" in France and Japan, where
nutritionists, marketers, and execs respond to more than 200,000
queries
and requests from consumers every year.
2) "Consumers' latent needs are as important as their explicit needs."
This is a corollary to the rule of marketing that advises taking focus
groups with a pillar of salt, since consumers often don't consciously
know--let alone can tell you--what it is they want or need.
3) "Experience trumps products." Starbucks is the oft-cited example
here
of how a company can distinguish itself by the experiential
circumstances in which it wraps its products. Or as Overby says,
"Consumer products firms will avoid the commodity death spiral by
selling experiences--not products."
Back to top
ADVERTISEMENT
 Capture Technologies provides
universally compatible PC-based lead collection devices for trade shows
and events. Generating predictable, CRM-compatible lead files helps
companies fulfill, absorb and pursue sales leads and measure results.
Easy-to-use LeadWare software resides on your desktop, laptop, PDA or
Tablet-PC. Finally, you can deploy a single solution for field lead
collection: www.captureleads.com.
973.890.7600 ext. 14.
Branding: Getting
Emotional
By Beth Negus Viveiros
DIRECT NEWSLINE
Having an emotional bond gives marketers a license to
go
places with a consumer they wouldn't be welcome otherwise.
As an example of this, Bob Wallach, senior vice president of marketing,
refrigerated division, ConAgra Foods, cited the Walt Disney Co. during
a
panel discussion at last week's MIT Sloan CMO Summit. Disney used the
warm feelings the public had for its characters to make the leap from
movies to theme parks to myriad other opportunities such as cruise
ships, Wallach said.
Rick Dow, chief marketing officer of Midas, said that emotional
resonance is vital "because there's no ties in business these days."
"Clients that believe in emotional branding let us do our best work,"
said Paul Tilley, senior vice president/group creative director, DDB
Chicago. "When people buy Coke, they're buying Americana. When they buy
tickets to DisneyWorld, they're buying magic.
To read more, visit DIRECT.
Back to top
ADVERTISEMENT
NEWS: OTM shows CPGs how best customers drive
profit
Packaged goods companies are getting more out of merging promotions and
direct with help from OTM Partners. OTM's multidisciplined approach
lets
companies identify and build relationships with their best consumers,
creating loyalty and growth where it counts.
Results begin here: www.otmpartners.com
Advertising:
National Spot Radio the Only Loser in Ad Revenue
With the exception of national spot radio, every major
media enjoyed year-over-year increases in ad spending in 2004,
according
to TNS Media Intelligence.
The greatest gainers in terms of percentage increase in ad spending
were
the Internet, with ad revenue up 20.4%, and outdoor media such as
billboards, with a 20.1% increase. Ad spending on national spot radio
dipped 0.7%, though local radio ad sales rose 1.1%, and network radio
ad
spending increased 2.7%.
The top media in terms of ad spending:
1) local newspapers--up 6.7%, to $24.56 billion
2) network TV--up 10.7%, to $22.52 billion
3) consumer magazines--up 11.2%, to $21.29 billion
4) spot TV (excluding Hispanic TV)--up 11.7%, to $17.31 billion
5) cable TV--up 13.8%, to $14.25 billion
6) Internet--up 21.4%, to $7.44 billion
7) local radio--up 1.1%, to $7.33 billion
8) b-to-b magazines--up 1.7%, to $5.21 billion
9) national syndication--up 15.8%, to $3.93 billion
10) Hispanic media--up 4.7%, to $3.89 billion.
Total ad spending rose 9.8%, to $141.09 billion in 2004.
Back to top
ADVERTISEMENT
 FREE Trial--Smart Tools for Marketing
Accept this FREE trial offer of our four Data Quality Tools and you'll
discover how easy it is to transform your customer database into a
moneymaking machine. You'll be able to validate and enhance address and
phone data for successful target marketing and effective CRM.
www.melissadata.com
Direct Marketing:
Catalog and Web Buyers, Together but Separate
LIST & DATA STRATEGIES FOR THE MULTICHANNEL
MERCHANT
According to CATALOG AGE's Benchmark Report on
Operations, a mean 35.5% of catalogers' orders come via the Web. So it
stands to reason that Internet buyers account for a growing share of
catalogers' print circulation.
But Web buyers often have different demographics and other
characteristics than traditional catalog buyers, says Jim Coogan,
president of Sante Fe, NM-based consultancy Catalog Marketing
Economics.
Therefore, you can't assume that the same circulation strategies and
marketing tactics that are profitable when used among traditional
buyers
will yield the same results among Web buyers.
Managing Web buyers profitably requires understanding of their key
metrics, Coogan says. Chief among them is measuring the incremental
sales gained by mailing a print catalog to a Web buyer.
To figure that out, you need to segmenting buyers by order channel as
well as by recency/frequency/monetary value (RFM). And when segmenting
Web buyers, Coogan adds, be sure to divide them into two groups: those
who have never received a print catalog and those who have. Coogan also
suggests segmenting Web buyers by source: natural search, paid said,
e-mail, affiliates, URL, print catalogs.
For other suggestions regarding segmenting and testing of online
buyers,
visit CATALOG
AGE.
Back to top
Infomercials: Who's
Afraid of "Consumer Reports"?
By Andrew Grossman
For marketers who rely on infomercials to pitch their
wares, the saying "there are only so many hours in a day" means there
are only so many spots available to buy. But fledgling cable TV network
Expo TV is offering advertisers the equivalent of a 25-hour day: It is
dedicated exclusively to infomercials.
Expo TV, which is positioning itself as a cross between "Consumer
Reports" and QVC, is beginning a push to gain distribution through
cable
systems beyond the 400,000 households that subscribe to Insight
Communications and rent digital set-top boxes.
Expo TV CEO Daphne Kwan says that the network, which is due to go broad
in the third quarter of the year, will offer, in addition to
infomercials, a heavy dose of product demonstrations and advice on how
to select products. "What we're trying to create is a place where
you'll
want to learn about a product," Kwan says. "The thing you probably do
now is just turn to your computer to get it done."
Don't expect to see products panned on Expo TV, however. The network
will not slam bad products, but simply ignore them, according to Kwan.
"If a product is not good, we will not have it on," she says. "We will
research the products that they are selling. We will research the
manufacturers. We will look to see how they long they have been around.
We will look at Better Business Bureau information. We will look for
any
online feedback we can find."
But "Consumer Reports" most likely will not be among the sources
referred to by Expo TV. "When 'Consumer Reports' comes out with a
number-one ranking, [the item reviewed is] not usually an instant
best-seller," Kwan says. "'Consumer Reports' tests for certain things
your dad is looking for, not things you're looking for."
For instance, the magazine opined that most fitness equipment
advertised
on television was a waste of money because users could obtain the same
benefits without spending any money. "We found that biking or walking
provides the same -- or better -- benefits," "Consumer Reports" wrote
about the Gazelle Freestyle Elite from Canton, OH-based Fitness Quest.
The magazine, counters Kwan, missed the point: that those products make
"buyers more motivated to exercise than just doing crunches, largely
because they are more fun and easier to do."
And in fact, according to "Ohio's Smart Business" magazine,
infomercials
for the Gazelle product line have generated $500 million in sales. When
it comes to at least some sorts of merchandise, a paid commercial spot
will trump a review from an ad-free magazine almost any time.
Back to top
Let's Get Personal
Please click here to tell personalize your free
subscription to CHIEF MARKETER:
www.pbm3.com/plgi/pbmm/nl.aspx?x=0.20.0.0.55
Back to top
|
|
You are subscribed to this newsletter as <*email*>
To get this newsletter in a different format (Text, AOL or HTML),
or to change your e-mail address, please visit your profile page to change your delivery
preferences.
For questions concerning delivery of this newsletter,
please contact our Customer Service Department at:
US Toll Free: (866) 505-7173
International: (402) 505-7173
or custserv@newsletter.primediabusiness.com
Primedia Business Magazines & Media
9800 Metcalf Avenue
Overland Park, KS 66212
Copyright 2005, PRIMEDIA. All rights reserved. This article is
protected
by United States copyright and other intellectual property laws and may
not be reproduced, rewritten, distributed, re-disseminated,
transmitted,
displayed, published or broadcast, directly or indirectly, in any
medium
without the prior written permission of Primedia Business Magazines &
Media Inc.
|
|
|
