Consumer Mindset blog

Getting consumers to think and shop

2011-11-10T11:53:00.000-08:00

Allstate promotional campaign attempts to get customers to stop and shop

Customer loyalty is a goal for businesses. Instead of spreading their money around, loyal customers spend more over time with their beloved businesses and products.

Loyal customers tend to stay loyal until given a reason not to be loyal. Unfortunately, businesses too often deliver those reasons themselves through multiple methods such as disappointing products, bad service and high pricing.

However, what if those loyal customers aren't yours?

Allstate has a current promotional campaign encouraging consumers to take a moment to think about their insurance and shop around. Obviously, Allstate hopes that such shopping will lead customers to them.

I realize the ad's tag line is "Shop less, save more" -- Allstate wants you to shop until you find them and then you can stop shopping.

Why wait until Black Friday?

2011-11-07T09:52:00.000-08:00

Fighting for early consumer holiday spending in a poor economy.

Traditionally, Black Friday marked the start of the holiday shopping season... but that's now in the past. It's early November and the promotions to attract 2011 holiday spending dollars have already begun. A variety of business types are already doing it -- Home Depot, Glade, ebay, Kmart -- and more will start soon.

Via television commercials, websites, print ads, social media, and discounts, businesses are already vying for this year's holiday consumer spending that is projected to be lower due to economic conditions. Businesses worry that if they wait too long to attract shoppers, consumers will spend their limited holiday dollars elsewhere.

Consumer roles & buying behavior

2011-10-31T20:38:00.000-07:00

Appealing to the roles consumers have is a powerful influence.

We all have our own lists of roles we play in our lives --

Friend. Wife. Husband. Mom. Dad. Teacher. Doctor.

You get the idea...

The roles each of us have impact how we act and decisions we make. Marketers know this too.

Notice how this TV commercial for Sylvania Silverstar headlights juxtaposes two common roles -- (1) fun-loving male and (2) dad.

Obviously, the dad role wins out in this advertisement. In my own role as a dad, the ad makes me wonder how bright the headlights are in the car my kids drive. Which is just what Sylvania hoped for.

A peril of celebrity spokespersons

2011-09-27T21:34:00.000-07:00

Disinterested.
Half-hearted.
Talk about "mailing it in".
Who approved this and have they been fired?

These are just a few of the thoughts that come to mind after watching the current Ameriprise television advertisement featuring celebrity Tommy Lee Jones. Take a look.

We know Tommy Lee Jones from his many memorable movie characters - from Lonesome Dove to U.S. Marshals, from Men in Black to No County for Old Men. We have come expect a certain aura, presence, liveliness, wit and banter from Mr. Jones. I bet Ameriprise did too.

If a paid celebrity spokesperson can't get excited for a product or company they are shilling for, why should we?

Product do-overs difficult... do it better the first time

2011-09-24T07:05:00.000-07:00

The comparison is stark:

Apple sells approximately 200, 000 iPads every 2 days.
RIM sold approximately 200,000 Blackberry Playbook tablet computers over 90 days this past summer.

The problem(s) with the Playbook?

First (and probably foremost), it doesn't have an Apple logo on it. However, there are non-Apple issues. The Playbook was introduced with just a fraction (40,000 vs. 1,000,000) of the available content and apps available to its adopters compared to competing Apple and Google Android tablets. In addition, the Playbook did not come with Blackberry's popular e-mail and collaboration service (Blackberry Enterprise Server).

RIM's proposed fixes to bolster Playbook sales?

Encourage app makers to get really busy.
Release a "major" software update.
Cut prices.
Keep telling prospective buyers the Playbook is just as good/better than the iPad.

The outcome? Consumers will soon decide

However, recapturing any momentum that came with the introduction of the Blackberry Playbook will be difficult (impossible?). While a staple of recreational golf, mulligans are in short supply in the business world. A better path is to hit a quality shot on the first swing.

Keeping an advertising campaign fresh

2011-09-21T20:24:00.000-07:00

Ally Bank's promotional objective over the last few years has been to drive home the point that they are not "banking as usual". To keep their advertising from getting stale Ally's advertising has periodically changed tag lines.

It started with "It's just the right thing to do".

Then came "Do you love your bank?"

And most recently "Stop accepting nonsense" (poor service, hidden fees, etc.).

Multiple tag lines.
One long lasting theme people can relate to.
Interesting, attention-keeping advertising.

Making your customers the butt of the joke... I still don't get it

2011-09-19T19:43:00.000-07:00

Incorporating humor into advertisements is principles of advertising 101. Humor encourages viewer attention and message retention.

However, humor can also "swing and miss". I believe one of the ways humor loses its overall effectiveness is when it is used to portray the advertiser's customers as silly, foolish and/or childish. Some viewers have to wonder "if that's how the customers of that company are, why would I want to join them?"

Here's a recent example of an television advertisement that does just that.

Couldn't State Farm find a humorous way to tell us that they can save customers money without making them look like dolts? Geico has been using humor for years and also tells us that they save customers money. However, I can't recall a time when their customers were the butt of the joke.

Maybe State Farm would be better served having some woodchucks chuck wood in their next commercial.

Holiday 2010 commercials - one strong, one risky

2011-01-01T09:13:00.000-08:00

Two TV campaigns - two outcomes: one builds brand, other builds band

This holiday season featured companies that took different routes in their television advertisements.

Planters Peanuts (a division of Kraft Foods) had a witty, fun ad that starred their longtime "spokesperson" Mr. Peanut -- who has been around since 1916 -- in a holiday themed advertisement. The focus of this ad was the product and Planters brand.

Meanwhile, Hyundai had several commercials that might have crossed the line of showcasing the indie band Pomplamoose more than the Hyundai brand or product. While wanting the attention star power can bring to an ad, care must be given so that such attention does not overshadow the commercial's intended message.

Don't overlook the details

2010-12-28T10:48:00.000-08:00

Michael Jordan + humor + a continuing TV campaign = a promising ad -- but please get the other guy a pair of pants that fit!

Hanes has done several significant things promotionally to benefit their brand:

sign Michael Jordan as a spokesperson
drop Charlie Sheen as Jordan's sidekick (reportedly to avoid any linkage to Sheen's persistent negative press)
developed a lasting humor-based campaign to promote the benefits of their product as well as highlight Jordan

If this is how Hanes make you look, maybe he should try Fruit-of-the Loom...
After all that, why not give the actor in the current ad a pair of pants that fit? His pants are stretched so tight that the white liner on the front pockets show, the front of the pants have a very unflattering pull and the pockets are puckered. While some viewers would recognize the problem is with the pants, others might not. The question is why take the chance when a little more attention to detail would have made the issue a non-starter?

Opening a new range of apps

2010-12-12T15:24:00.000-08:00

Square mobile payment app blends software and hardware

The Square Mobile Payment System is early on the curve of a new wave of applications for phones (iPhone and Android) and other mobile technologies like tablet PCs (iPad, etc.). These emerging apps go beyond current ones as they integrate hardware into the systems.

Plugging Square's hardware into a device's audio jack allows the user to use the app to pay by credit or debit cards, gift cards and prepaid cards. These payments can go to businesses or individuals who also have Square.

Crystal ball

A couple things will be interesting to watch for:

When will consumers adopt these types of apps?
How quickly will businesses adapt to the such new apps?
When will other types of apps that integrate hardware be offered?

Rapping rodents phat for Kia

2010-12-08T14:33:00.000-08:00

Rapping hamsters boost image but without product improvement, how long will it last?

Unlike many businesses, 2010 has been good to Korean automaker Kia. Sales were up 15% through October -- on pace for a record year in sales. The company has benefited from a "perfect storm" of circumstances:

a bad economy
offering a line of low priced vehicles (approx. $8,000 lower than competitors)
public acceptance of rapping hamsters in a television campaign (see below)

The big question...
With product quality sliding in consumer-based rankings (from 15 to 25 place in a recent J.D. Powers survey), how long will the rodents be able to prop Kia sales up? In the long-term, it is hard to imagine consumers trading vehicle quality for a formulated image. American auto buyers have shown in the past that even low prices cannot make up for a poor vehicle (remember the Yugo?).

The current good sales situation offers time for Kia to get their product "house in order". It will be interesting to see if they take advantage of it.

Geico, Helzberg co-op advertising

2010-12-05T15:29:00.000-08:00

Seemingly unrelated pair of companies team in TV ad

Perhaps you have already seen the television advertisement that blends both Geico Insurance and Helzberg Diamonds (a retail jewelry store chain). At first nod, these seem like an odd duo to pair up in a promotional effort. However, upon a bit deeper review, a connection between the firms comes into focus.

The Berkshire Hathaway connection
Both firms are part of the holdings of Warren Buffett's Berkshire Hathaway.

Properly done, joint advertising can make a great deal of sense by stretching promotional budgets in this time when companies are seeking greater productivity in operations, manufacturing, and now advertising.

Characteristics of potential co-op promotional partners
The cooperating firms:

are not in the same industry (except for special circumstances like public service announcements, support of causes and events, etc.).
seek similar customers.
are willing to have the other's brand image "rub off" on to their own.

Note: video of the ad will be added when available.

Power of a brand part II -- Call of Duty: Black Ops

2010-11-29T07:07:00.000-08:00

Increasing brand positioning via association (to a video game).

In an earlier post, the integration of Apple's iPad into a product offering to increase product brand position via association with the iPad was discussed.

Now the popularity of Call of Duty: Black Ops is being used by Jeep in an attempt to influence prospective buyers. If there is any surprise, it might be that the COD: Black Ops brand would be deemed so attractive to enough of Jeep's target market. Jeep's consumer research would be interesting to see.

Jeep Wrangle Call of Duty: Black Ops Edition

If video game can scan body -- what could be other uses?

2010-11-28T06:52:00.000-08:00

No TSA-like body scan. Rather scan of "outer body" only.

The Xbox 360 Kinect video fitness game Your Shape Fitness Evolved has the ability to scan user bodies as they participate in exercise routines. During exercise, the game monitors for pace and proper body positions (below).

With this type of technology already in homes...
When might online clothing stores offer at home personalized body scans that allow consumers to "try on" clothing in virtual dressing rooms that link specific body shapes/dimensions to actual clothing sizes and styles (that the retailers have digitized as well)?

iPad's growing ecosystem

2010-11-26T20:05:00.000-08:00

More businesses are integrating iPad into their offerings -- and hoping to attach their products to iPad's high brand positioning.

By any measure, Apple's iPad is a successful product on its own. However, it is increasingly being used by businesses as part of their product offerings. As much as the iPad might actually improve these products, the biggest benefit might be linking the iPad to the products... if consumers think so highly of the iPad, maybe some of the "love" will rub off.

NOTE: This goes beyond merely adapting current offerings for the iPad -- although iPad apps for existing products are extremely popular.

Some recent examples:

The owner's manual for Hyundai's Equus model is an interactive digital owner's manual on the iPad that comes with the luxury car. See the magazine advertisement below.

Delta Air Lines has installed 200 iPads in their gate area at New York's JFK International Airport. Delta customers can use the iPads for entertainment and to order food at airport eateries.
News Corporation is developing a new digital newspaper centered around the iPad. The Daily is scheduled for an early 2011 launch.

Apple continues to reap the rewards for their great products.

Kohl's Happy ThankSaving... just a bit tacky

2010-11-25T10:40:00.000-08:00

Happy ThankSaving ???

Thanksgiving traditions -- the Macy's Parade, NFL football, time and dinner with family, and giving thought to the blessings of life.

Now Kohl's is adding a new one... the Happy ThankSaving sale.

A television, newspaper, social media and web campaign.

Surely their marketers can do better.

Humor without sacrificing customer image

2010-08-28T08:09:00.000-07:00

To differentiate themselves from competition, two long-running television ad campaigns focus humor on things people dislike about their industries.

Some things about banking consumers dislike:

hidden bank fees
treating new customers better than current ones
not giving all customers full information
fine print

Some things about buying and owning stocks consumers dislike:

impersonal service
high fees
feeling that best interest of investor is not broker's priority
lack of information and support

So how do Ally Bank and Scottrade deal this such dislikes? By using humor to highlight such common negative perceptions against their own brand positions.

Ally Bank Commercials

Scottrade commercials

One final thought... note that neither ad campaign used their customers as the butt of the joke (see the August 26, 2010 post).

Why would anyone want to be like them?

2010-08-26T19:57:00.000-07:00

It might be funny but who would want to be like these people?

It is an aspect in some advertising that has been bothersome for some time (refer to my October 10, 2008 blog entry) and I still don't get it.

Why do some companies portray their customers as clueless (or worse). If this is the way people who do business with a company are, why in the world would anyone seek to be like them?

If this is how Netflix customers are, I'd rather read a book!

Progressive has effectively used humor in other ads in their "Flo" campaign... but why make customers act like this?

The point is not to be too picky or lack a sense of humor. But does humor have to be at the expense of customer image?

The next blog post will give examples of advertising campaigns that effectively use humor without sacrificing customer dignity.

Retro comfort factor

2010-08-24T17:40:00.000-07:00

In these challenging economic times, companies give consumers "comfort" via retro offerings

It's comfort food without the calories... products that remind one of the "good ol' days". Here are a few more recent examples. There are many more.

ThinkGeek's retro style blue-tooth headset (handset?):

Pepsi's temporary return of the retro can labels (even with "real sugar"!):

Proudly showing your age

2010-08-22T16:59:00.000-07:00

Promoting the idea that a company is strong and stable by showing you've been around a long time.

Prudential's new ad campaign seeks to assure consumers of the company's strength and stability by highlighting how long the firm has been around.

Highlighting the changing logo:

Television advertisement

Is your packaging doing enough?

2010-08-20T19:58:00.000-07:00

Going a bit beyond product protection, promotion & display

Packaging is an often under-utilized aspect of marketing. It is designed to protect products during shipping, act as a "billboard" in a store to attract attention, and to aid in store display (stacking, hanging, etc.).

Some businesses are finding ways to use packaging to add a bit more customer value and act as a differentiator from competitors . While some can be more substantial, many are smaller in nature. Here are a couple of examples:

Sun Chips (from Frito-Lay) offer chips in 100% compostable bags.

1800 Tequila having its lid measure a shot (turn it over to fill up the lid).

Could your packaging be doing more?

If you can't beat them, copy them

2010-01-03T20:42:00.000-08:00

Subway's Jared casts a big shadow over fast food industry

Taco Bell's new promotional campaign featuring the weight loss of Christine shows that, even in business, imitation is also the greatest form of flattery.

Haven't we heard this before?

Using careful selections from the Taco Bell "Drive-Thru Diet" menu, Jared... oops... Christine lost 54 pounds.

What's next?
Cinnabon? Haagen Dazs? creme brulee? Ghirardelli Chocolate?

We could only be so lucky!

Marketing the start of a new year

2010-01-01T11:17:00.000-08:00

Finding marketing opportunities in calendar events

The new year is only a half-day old but marketers have already begun integrating the start of 2010 into their marketing efforts in areas including pricing,

HTML e-mail featuring special pricing

Web site -- new product features

Television advertisement -- special event re: product

Wait 'til next time
Obviously it is too late to take advantage of New Year's Day 2010.... but the calendar has many other days that might become part of a successful marketing campaign.

Responding to competitor attack ads

2009-12-30T16:29:00.000-08:00

AT&T counters Verizon's claims

Early in fall 2009, Verizon unveiled a new advertising effort attacking rival AT&T to complement its long running "Can you hear me now?" campaign.

Using coverage maps, Verizon's new campaign claimed AT&T's wireless 3G coverage paled in comparison to Verizon. Verizon hoped that a picture was indeed worth "a thousand words".

AT&T did not wait long to respond
However, it was a lawsuit petitioning the court to require Verizon to stop the ads. The request was declined.

If at first you don't succeed...
Immediately after their court defeat in November 2009, AT&T moved to counter Verizon's claims with an advertising campaign of their own. Since then, AT&T advertisements have been run across media. The ads had themes similar to the ads below.

Where things currently stand
There has been no slowdown at year end 2009 as the wireless giants continue to trade advertising punches. However, AT&T is not allowing Verizon to solely frame and control the messages put out to the public.

And in the meantime
Sprint and T-Mobile will be happy that Verizon and AT&T keep beating each other up.

Taking advertising for a drive

2009-12-23T22:47:00.000-08:00

billboards + SUVs + word-of-mouth = new twist on advertising

For the last several years, "wrapped" buses have acted as moving billboards.

Now, companies are getting family vehicles into the act as well.

By selecting the drivers carefully, advertisers not only get roving promotion... they get product ambassadors who provide word-of-mouth about the advertised store or product to family, friends, acquaintances, and the otherwise curious.

Here's how it works:

Today Show, 12-23-09 -- Jenna Wolfe reporting

The shopping experience

2009-12-21T20:52:00.000-08:00

Dressing rooms, merchandising, the senses, and more...

This morning, the Today Show showed an interesting segment on retail shopping. The segment shows several retailing strategies and tactics that facilitate a pleasurable experience.

The portion of the segment below features a visit to a mall by the reporter, Janice Lieberman, and Marshal Cohen -- the author of "Why Customers Do What They Do".

Retailers need to analyze if, and if so how, their stores provide customers with experiences that makes shopping pleasurable and interesting.

The last shopping days before Christmas (2009)

2009-12-17T07:36:00.000-08:00

'Twas the last days before Christmas, when all through the stores

Not enough customers were coming thru the sliding front doors.

The shopping carts were arranged in a tidy neat row,

Awaiting frenzied shoppers to spend lots of dough.

The registers were staffed by an anticipating crew,
With hopes that paying shoppers were surely soon due.
And the manager with keys and the new hire named Don,
Had just checked the front sign to make sure it was on.

When out in the parking lot there arose such a stew,
Employees rushed to the windows to see the new view.
Away from the panes they returned to their places,
With not a grin but frowns on their faces.

For it was not future buyers making the fuss,
But just a trash truck and a big passing bus.
Now time was short to start making sales,
Discounts and coupons should cure all that ails.

But customers still did not buy in quantities sought,
Retailers scared of low revenues from products not bought.
Wishing but knowing that holiday earnings wouldn't be stout,
But in the back of their minds, Congress might bail them out.

Maybe this is a time to just try to scrape by,
And come back December 26th to give it another try.
For then unwrapped gift cards will be burning a hole,
In wallets of shoppers ready to give it another go.

To get what they want, to make post-Christmas hay,
Let's hope they spend until this New Year's Day.
Retailing is tough, this holiday season two thousand-eight,
Let's just survive and see next year's fate.

So from the advertisements giving it one more last try,
"Happy Christmas to all, and please from us buy."

.....

Not much has changed since last year --

re-posted from this blog (12-18-08)

A viral - guerrilla marketing hybrid

2009-12-08T15:21:00.000-08:00

T-Mobile's "dance" spread virally, impacted spectators

Definitions (adapted from Wikipedia)
Viral marketing refers to marketing techniques that use pre-existing social networks to produce increases in brand awareness or to achieve other marketing objectives through self-replicating viral processes by users spreading a message among their various reference groups and associations -- analogous to the spread of pathological and computer viruses. Viral promotions may take the form of video clips, interactive Flash games, advergames, ebooks, brandable software, images, or even text messages.

The concept of guerrilla marketing was invented as an unconventional system of promotions that relies on time, energy and imagination rather than a big marketing budget. Typically, guerrilla marketing campaigns are unexpected and unconventional; potentially interactive; and consumers are targeted in unexpected places.

How it's a hybrid promotion
Viral marketing: The T-Mobile video below was passed along to me by a family member, who had received it from a friend. Naturally, I watched the video since I received it from family... score one for T-Mobile!

Guerrilla marketing: As you watch the video, notice the reactions of the spectators. One can safely assume they talked about this to friends, co-workers and family for quite some time... score another for T-Mobile!

Three things that can be learned from this promotion:

Businesses have the opportunity to make promotions that are not "just the same old thing". Such promotions can often cut through the clutter of advertisements that consumers are bombarded by on a daily basis.
Fun can work... it does not always have to be about celebrities, sensualness or fear.
People are willing to be a "message emmissary" -- passing along to others what they find fun, cute, interesting, unusual, etc.

Can celebrity endorsements work?

2009-11-22T18:01:00.001-08:00

Some still wonder if celebrities can really influence behavior.

Take a couple of minutes and watch the following two videos... then you decide.

NOTE: If you want to see something interesting, play both at the same time... starting the second video once Taylor Swift starts singing in the first.

Since celebrity endorsers represent a brand, selection and affiliation should be undertaken with great care. However, celebrities can/do influence consumer behavior.

Music can add the right note

2009-11-17T20:11:00.000-08:00

Songs, jingles and melodies can catch your attention and stick in your brain.

Imagine a teacher leaving a high school classroom... the boys start rhythmically drumming their desks in unison.

What's going on? A disorderly mob? No... it was That's G.

Don't know what "That's G" is? Play the following video.

Need to set a tone in a commercial... consider including a song. Regions Bank wants to show how happy they make their customers.

How? Just listen.

Can jingles really help message retention? How much is a foot-long Subway?

Veterans Day promotions

2009-11-11T20:06:00.000-08:00

Applebee's and Macy's approach national holiday differently.

Applebee's Veterans Day 2009 promotion

Applebee's Restaurants offered free entrees to all veterans and active military personnel on Veterans Day to show "sincere gratitude for your honorable service".

Macy's Veterans Day 2009 promotion

A traditional sale.

With the U.S. military at war in multiple theaters
++++Macy's promotion rings a bit shallow.
++++Applebee's promotion feels right.

It's (already) beginning to look a lot like Christmas

2009-10-31T14:34:00.000-07:00

Retailers not waiting to start the holiday season... will it be discounts as usual?

Sitting in my home waiting for trick-or-treaters to start arriving in a few hours, it is interesting to consider the upcoming holiday retail season. Retailers of all types -- from big box discounters to small specialty stores, brick-and-mortars to clicks-only -- are struggling to figure out how to handle another slow holiday season. ............................................. ................................................
Typical move

Many have already started offering and promoting products for purchase for the holidays -- either as gifts or decorations -- in the hope to capture the expected limited consumer spending this season.

While this might have a bit of success for some, this strategy has to overcome a major hurdle taught to consumers by retailers themselves.

Retailers have taught consumers that if they wait, retailers will flinch first when holiday sales are slow and then the discounts will come. Consumers are not dumb. They've learned that they will be rewarded with lower prices if they postpone the start of their holiday shopping. ...................................................................... .........................

What retailers are trying

It seems that more retailers are trying to move away from extreme holiday discounting by limiting inventory -- hoping consumers will buy at closer-to-full price if they are concerned that the products they want are in short supply.

Price-conscious shoppers or retailers... who will win?

My money is on consumers. Several major retailers have already started holiday discounting including Sears, Borders, and Kohl's. About a week ago, Walmart announced a holiday season discount pricing format where sales would rotate for different products throughout the holiday shopping season.

(Baltimore Sun photo by Gene Sweeny Jr 10-30-09)

Will passengers get frequent flyer miles?

2009-10-24T21:25:00.001-07:00

Northwest airlines has a public relations fiasco... how it is dealt with will be worth watching.

How does an airplane fly past a destination by 150 miles? Apparently when the Northwest Airlines (NWA) flight crew was too busy arguing to maintain "situational awareness".

Ouch. What a public relations mess.

While the airline has reportedly temporarily suspended the two pilots, the flying public will be watching how NWA (and its parent Delta) continues to deal with this situation.

What's at stake? Only convincing future passengers that they will be in good hands if they fly with NWA .

The 144 passengers on the wayward NWA flight could have only wished for U.S. Airways Capt. Chesley "Sully" Sullenberger III (right) -- pilot of the "Miracle on the Hudson River".

This will be an interesting public relations case study to watch unfold over the next couple of weeks.

Answering consumer questions

2009-10-23T20:43:00.000-07:00

Starbucks does not leave consumers wondering why to buy new instant coffee

If anyone had doubts why to buy Starbucks' newly introduced instant coffee, they only needed to open the two-page advertising spreads in the October 23, 2009 editions of The New York Times (A24 & 25) and USA Today (8A & 9) to get some suggestions.

This parody in advertisement well done

2009-10-19T19:39:00.000-07:00

If the old adage "parody is the sincerest form of flattery" is true, then parody can make for pretty entertaining and attention getting commercials too.

Good natured parody of online matchmaking services -- like eHarmony -- is used in a new commercial. It's fun, unexpected and an attention getter. And that guy must really love that product... a very clear brand image to leave the viewer.

Starbucks gift cards... they really ran out?

2009-10-13T20:52:00.000-07:00

Stock outs equal sales lost... that may never be gotten back.

Needing a gift for a business acquaintance this morning, I stopped by a local Starbucks to pick up a gift card only to be told they had run out -- "come back in two days when they might be in".

Undeterred, I proceeded to a second Starbucks and found that they too were out. Upon being asked how this could happen to multiple stores, a worker stated that there was a delay in getting the new Fall themed gift cards. The worker then suggested buying one at a local Walmart or grocery store (they might not have run out of the old style).

The end result today? A local competitor to Starbucks sold a $20 gift card. That does not sound like much because it isn't... but add that to how many other gift cards sales were lost due to this multi-day stock out snafu and Starbucks might be out a decent amount of sales.

In any event, although a minor consumer matter, it was not very impressive marketing effort by Starbucks.

I like this T.V. commercial... maybe not

2009-10-09T22:57:00.000-07:00

We love it when celebrities poke fun at themselves

If you are a pro football fan you know the annual story from the last few years... will he or won't he? Anyone who does not know who the "he" is will miss the joke in the television advertisement.

Who is he and what's the annual event? Future NFL hall-0f-fame quarterback Brett Favre and his annual "I might retire, I might not retire" drama that has been played out on ESPN and the newspaper sports pages across America for the last several years (FYI... he has not retired yet).

Sears is featuring a play on Favre and his indecision in a current T.V. commercial. It's good natured fun and attention getting (at least to football fans). Sears hopes that watching Favre = getting their brand message (tagged at the end of the ad).

A formula for increasing sales during a recession

2009-10-05T21:37:00.000-07:00

Competitors are hurting - how does Hyundai do it?

September 2009 sales statistics tell a grime story for U.S. auto sales... as soon as the summer federal auto bailout program ended, auto sales plummeted... except for Hyundai and Kia (which Hyundai has a significant ownership stake in).

Read it and weep
While September '09 auto sales declined for General Motors, Toyota,Honda, Chrysler, Nissan and Ford, Hyundai sales were up 27%.

How do they do it?

Hyundai has implemented a fundamental tenet of marketing -- an attractive product with high quality offered at a "good"(in the eyes of the customer) price = customer value. And if that value is judged significant enough, consumers will buy -- even in a down economy.

...........

This is not the only strategy option but it is the one Hyundai chose and is delivering on.

...................................

Two decades ago, Hyundai was a 'dirty' word in the U.S.

The introduction of the Hyundai brand in the U.S. was less than successful. A butt of jokes, quality issues negatively impacted the brand to the extent that Hyundai abandoned the U.S. auto market. After correcting quality flaws, Hyundai restarted U.S. sales... but had to offer 10 year warranties to induce consumers to buy a brand they remembered as inferior. While still offering the warranty, an increasing number of drivers are attracted to the combination of product, quality and price.

...............................................

Truth in advertising

Hyundai's current slogan describes it well: Hyundai Momentum

Instilling consumer confidence

2009-09-20T06:48:00.000-07:00

Always remember -- consumers pick up cues about businesses from a variety of inputs.

Does this sign instill confidence that you want this repair shop to work on your car?

Retailers... let customers know about your services

2009-09-18T19:05:00.000-07:00

It is a great service that I had never heard about. In fact, it is a bit difficult to get information about the service from the retailer's website. Bed Bath and Beyond allows you to shop and order online or at a store and then have the order waiting for pick up at a different store -- even if that location is across the country.

The service worked well for my family as we shipped a child off to college... no need to stuff a car full of items bought at home or pay for extra suitcases to carry more things on an airplane. Just order and have the products waiting at the local (to where ever the university is) Bed Bath and Beyond store.

The only problem was we found out about this valuable service by chance. We never heard or saw any ads about it. Even the retailer's website does not make it clear -- even on their "Shop for College" web page.

Using the service worked out great for us... I just wonder how many more families would have used it if they would have only known?

Don't add confusion to marketing effort

2009-08-29T18:26:00.000-07:00

I actually like the commercial. It's just that the choice of Dunkin Donuts, used as an example to emphasize a point in a nationally televised Sprint commercial, that is interesting .

While Dunkin Donuts is well known in various parts of the county, the chain is only in 34 of the 50 states (68%). The region where I live happens to be one of the areas without them.

I asked some people who I saw the commercial with whether they "got" the Dunkin Donuts reference. It did not mean much to any of them -- though several had heard of the donut chain.

Does it hurt the advertisement? I do not know. But such a brand non-recognition or attachment to a "hook" in your commercial sure can't help.

Impress customers, not yourself

2009-06-23T12:20:00.000-07:00

If you have thoughts similar to these, think twice:

"I've been in this business for 20 years... I know what to do."
"Customers don't know what they want but I do."
"Customers are dumb."

Thinking you know more than customers is a trap more common than one might think.

A case study:

The current Burger King advertising campaign featuring a very hip king (see above) gets attention and some acclaim for creativity. One never knows where the king will show up. From waking up people to promote breakfast at BK (right) to dancing with Sponge Bob Square Pants to promote Kid's Meals (see video below)... the BK King certainly gets around.

Burger King's current problem?

While fast food consumers seek products at lower prices, BK is sticking to the image of the hip king with little in response to customer pricing desires.

While McDonald's has responded to consumer economic concerns with an expanded "Dollar Menu", Burger King has been airing the booty bumping Sponge Bob commercial (and just recently adding a $1 Whopper Jr. TV commercial).

The results? Burger King revenue is down since March 2009 while McDonald's rose 7% in April 2009 alone .

Even in the current economy, Burger King thought their customers should value image over prices. Apparently, BK was wrong.

P.S. Promoting Kid's Meals with a crotch grabbing king and shaking square booties? That's a topic for a future posting.

TV commercials that reflect the times we are in

2009-03-28T17:32:00.000-07:00

Timeliness of subject

A direct jab at competitor to stimulate sales

Profiting from local "super bowls"

2009-02-01T12:47:00.000-08:00

Businesses need to maximize benefits from local happenings.

With the kick off of Super Bowl XLIII just a few hours away, the vast majority of game-related purchases of flat screen TVs, food and drink have been made.

But before sitting back and watching the game and commercials (or should that be commercials and the game?), a bit of marketing reflection is in order.

What's in it if your business is not a Pepsi, E-Trade or Budweiser?

How can a local business benefit from the Super Bowl if you don't sell chips, pizzas, drinks and television? It's pretty limited if it's only the real Super Bowl. Either you sell "game" items or you don't.

The wider lesson is what can be learned from the business of the Super Bowl.

What local events provide a "super bowl" for the customer base served by your business?

The area I reside in hosts:

a street 3-on-3 basketball tournament that draws tens of thousands of players
a 7 mile run with over 40,000 participants annually
a wide range of events in the main city park - from concerts to fireworks, food-fests to theatre.
events at the convention center
sporting events of the local universities and high schools

These are just a few of the many events... most of which are smaller events targeting a tightly focused group of customers who share many traits -- a true target marketing opportunity.

Businesses should identify and benefit from events in their areas that offer mini-super bowls. Consider sponsorships, participation in as vendors, offering products for participants, special pricing, event ticket sales for a discount price when bought at your business, and so forth.

The opportunities for your business to benefit from a (local) super bowl are there. Consider taking them.

dey gru ^ txtN -- w@ wl biznessz nd 2 do?

2009-01-31T20:04:00.000-08:00

Translation: "they grew up texting -- what will businesses need to do?"

Cross-posted @ Generational Impact blog

(http://generational-impact.blogspot.com)

Every store can't be Walmart

2009-01-11T19:36:00.000-08:00

Every business cannot offer the lowest prices... so what else can be done to increase the chances that customers will buy?

Two January 2009 shopping trips, two very different scenes.

Trip #1 to a local mall on a Saturday afternoon. Few shoppers. Even fewer buyers -- it was startling how few people were carrying shopping bags with purchases.

Trip #2 to a local Walmart on a Saturday afternoon. Hard to find an empty parking spot (picture just below). The store was packed with shoppers. 35 of 38 cash registers were open and all had lines.

Fact: In the current economic climate, shoppers are attracted to low prices.

Fact: Not all stores can compete price-wise with the Walmarts of the world.

Question:
Beyond low prices, what are businesses doing to increase customer purchases?

Note: While not new tactics, the following are examples of methods some firms are employing in attempt to keep customers buying.

Bundle current products together for a "deal". Recently, Jack In The Box announced the new "Jumbo Deal" (picture below) that combined a sandwich, tacos and fries for $2.99. Even if the price covers only costs, the fast food restaurant can profit from the likely sale of a highly profitable soft drink.

Reduce purchase risk by offering attractive warranties and guarantees. Already tightening their purse strings and wallets, even willing consumers are looking for methods to minimize risks of unwise spending on products. Businesses can increase consumer confidence in purchases by offering strong (as perceived by the buyers) product warranties and guarantees (money back if not satisfied, you will not find at a lower price, etc.).
Allow consumers to try the product before purchasing. More businesses are finding ways to allow customers to "test drive" their products. Starbucks is offering free trials of two new Tazo tea drinks (with a coupon from a USA Today advertising insert -- picture below). This allows customers to be more sure that they like the product before purchase thereby increasing their buying confidence to overcome risks of spending money that is in short supply.

The "surprising" state of brand perception at General Motors

2009-01-01T00:08:00.000-08:00

GM's recent television spots seem to be an admission of what the company knows too many consumers think about their vehicles

During the holiday season of 2008, General Motors ran a series of television advertisements for a "Red Tag" sales event (that would run through early January 2009). As would be expected, these spots were visually appealing and conveyed various logical GM branding points to consumers --such as vehicle safety, high resale value, good fuel mileage, and appealing / attractive vehicle makes and models.

However, upon deeper examination, it was not these points that were most revealing. Rather it was a tag line and story line that gave a glimpse into what General Motors understands how their products are perceived by the car buying public.

Example 1: "Made by GM... Surprised?"
One set of commercials for multiple GM makes and models highlighted product value points -- safety awards, resale value, fuel mileage -- of the featured vehicles. It is worth noting that after listing such a good vehicle attribute comes the tag line of "Made by GM... Surprised?".

These four words reveal what GM knows about the state of their brand. Should consumers be surprised that GM can make a quality vehicle? Apparently GM thinks so.

Here are three of the spots.

Example 2: Customer at Saturn dealership can't believe his eyes

Another television spot shows a customer walking into a Saturn showroom, then upon seeing attractive vehicles there, looks back outside at the street sign to make sure he was at a Saturn dealer. He is surprised to learn that Saturn has attractive vehicles. From the comments of the salespeople, many others share his surprise.

This glimpse into what GM understands -- that consumers perceive Saturn product offerings as non-appealing design-wise and that consumers will be surprised that Saturn can build attractive vehicles.

It is amazing to think that good vehicles from General Motors should be surprising to American consumers.

The last shopping days before Christmas

2008-12-18T21:05:00.000-08:00

'Twas the last days before Christmas, when all through the stores
Not enough customers were coming thru the sliding front doors.
The shopping carts were arranged in a tidy neat row,
Awaiting frenzied shoppers to spend lots of dough.

The registers were staffed by an anticipating crew,

With hopes that paying shoppers were surely soon due.

And the manager with keys and the new hire named Don,

Had just checked the front sign to make sure it was on.

When out in the parking lot there arose such a stew,

Employees rushed to the windows to see the new view.

Away from the panes they returned to their places,

With not a grin but frowns on their faces.

For it was not future buyers making the fuss,

But just a trash truck and a big passing bus.

Now time was short to start making sales,

Discounts and coupons should cure all that ails.

But customers still did not buy in quanities sought,

Retailers scared of low revenues from products not bought.

Wishing but knowing that holiday earnings wouldn't be stout,

But in the back of their minds, Congress might bail them out.

Maybe this is a time to just try to scrape by,

And come back December 26th to give it another try.

For then unwrapped gift cards will be burning a hole,

In wallets of shoppers ready to give it another go.

To get what they want, to make post-Christmas hay,

Let's hope they spend until this New Year's Day.

Retailing is tough, this holiday season two thousand-eight,

Let's just survive and see next year's fate.

So from the advertisements giving it one more last try,

"Happy Christmas to all, and please from us buy."

Marketing the "when and where"

2008-12-15T21:46:00.000-08:00

Taking into account the when and where you are should influence marketing tactics

Scenario #1
If you were a dentist at the opposite end of of a strip mall from a coffee shop, how could you get new patients?

Scenario #2
If you sold coffee, how could you compete with Starbucks on its home turf in Seattle (or any place else, for that matter)?

Though there are various methods to approach each of these scenarios, the marketing tactics selected should take into account where and when the firm is dealing with customers.

A "where" approach to scenario #1
With the drive-thru lane of a popular coffee shop directly behind a dentist's practice, the dentist used the "where" of the practice as an opportunity to communicate with potential patients.

A "when" approach to scenario #2
McDonald's is taking a direct "when" tact in promoting its espresso via billboards in the Seattle area with messages such as "four bucks is dumb". The current economic climate provides an interesting "when" opportunity for McDonald's to move into Starbucks turf with a lower priced product.

Image from 12-15-08 USA Today, 4B

____________________________________

Addendum to original entry -

December 17, 2008:

Another example of a "when" situation dealt with via marketing

What does a retailer do when a major winter storm stops consumers from coming to a major sale? (At least that's what the retailer hoped was the reason.)

Last weekend, a major winter storm negatively impacted a major pre-Christmas sale at a local Macy's as shoppers failed to brave single digit temperatures. Macy's announced a continuation of the sale... and even blamed it on the storm! Below is a portion of the newspaper advertisement announcing the extended sale.

Lower prices plus

2008-12-02T06:23:00.000-08:00

This holiday season, consumers are being flooded with so many "price deals" that it is difficult for a business to stand out from competitors.

Economic news is making consumers skittish. It seems that little is certain in the financial arena except that the values of their homes and 401k plans are both down. Bail outs of American business institutions seem to come on a daily basis.

Some good news... Gas prices have dropped by more than half from the summer highs of over $4 per gallon last summer.

The bad news? While nice to have more money left in pocketbooks and wallets after a fill-up, it has not been nearly enough to bolster shaken consumer confidence.

A textbook business response
In an attempt to attract such jittery customers, many businesses have lowered the effective prices on various products by offering sales and coupons. However, since so many retailers are doing the same, buyers have numerous options offering lowered prices. In addition, an environment of intense price competition -- where competitors keep lowering prices to match or beat other stores -- can "teach" consumers to wait to make a purchase. In this type of situation, consumers learn that postponing a purchase results in better (from their perspective) prices by giving retailers more time to keep lowering their prices.

Offering more than just lower prices
Some retailers have started to offer consumers "lower prices plus". The "plus" can be wide ranging -- including higher quality products, more service, better product selection, a better return policy, and so forth. In our lower price retail environment, the purpose of the "plus" is to give prospective buyers a reason to buy from that retailer and even possibly give consumers a reason to buy sooner rather than later.

Currently, Best Buy is doing this.

Best Buy is in a highly competitive market space... they compete with a wide variety of businesses such as Walmart, Costco, national department stores, and local electronics stores. Lower competitive prices are widely used. This retail space is so competitive that former Best Buy competitors Circuit City and CompUSA are either downsizing or are no longer in business.

Best Buy's current television advertising campaign "You, Happier." exemplifies the "plus" strategy. The thirty second spots each feature a "Blue Shirt" (Best Buy employee) sharing a brief story that shows how their product knowledge and empathy for people helps their customers. With Best Buy's assistance, you can be happier. Now that's a "plus".

Example A: Connecting grandpas and grandkids

Example B: Needing the perfect gift

Example C: Great gift ideas

Does the early store get the customer's holiday cash?

2008-11-09T18:07:00.000-08:00

Christmas was in the air at the Walmart store in Hadley, Massachusetts...

An instrumental version of "The First Noel" played on store speakers.

The check out area was adorned with wrapped gift boxes above the cash registers.

Christmas decorations, clothes and gifts were stocked on shelves and aisles.

The entry area inside the front door was decorated with a Christmas Tree and wreath decoration (above).

It was looking a lot like Christmas.

It was November 9, 2008.

A "quiet" change
Moving the holiday shopping season earlier and earlier is a relatively newer phenomenon. Not too many years ago, Christmas shopping really started after Thanksgiving. Over the last decade, retailers have started stocking holiday decorations and gifts before Thanksgiving. It was not uncommon to see such sights prior to Halloween.

However, this was done more on the sly... with little promotion and fanfare. It just happened. Things seemingly just appears on store shelves. If shoppers bought holiday items, it would be great. If not, there was still a lot of time until the holidays for them to do so.

It is different this year
This year, there is a reason for retailers to have an earlier holiday shopping season. Economic concerns are impacting consumers' spending. The prevailing thought is that consumers will have smaller gift giving and holiday decorating budgets... and be more likely to stick to them this year. So, when the allotment is gone, consumers are done spending on the holidays. Therefore, retailers fear that, if they do not get the early Christmas spending, coal will be in their holiday sales stockings.

Questions

What issues are affecting your customer base?

How are you addressing these issues?

What will be the impact on your business if such variables are not dealt with effectively?

Tough marketing for tough times

2008-11-01T13:30:00.000-07:00

This is not the time for timid marketing

There is a lot of news on how consumers have quickly closed their wallets in response to the barrage of recent negative economic announcements. The 10-20-08 BusinessWeek cover story (right) on how U.S. consumers are tightening their spending is representative of most stories.

What we've been taught
It is accepted business practice to "get lean and mean" when revenues fall. It has not been uncommon for businesses to cut, or at least slow down, expenditures on variables such as new hiring, customer service, advertising, product improvements, sales promotions, sponsorships, and hours of operation.

A recent study of the 400 member Association of National Advertisers found that more than 1/2 anticipated decreased spending by their businesses for marketing and advertising over the next 6 months.

But what we've been taught is not always right
However, business history shows that economic downturns might be an inopportune time to cut marketing efforts. Businesses have found significant success by increasing their marketing campaigns (or at least keeping their marketing stable) while competitors shrink theirs.

In the midst of financial uncertainty, consumers tend to be more open to trying different brands, stores, restaurants, products and price points. While some competitors cut the very resources that allow them to communicate and retain their current customer base, other businesses increase marketing expenditures to reach out to these abandoned consumers. Such firms take advantage of the decreased advertising and promotional clutter that makes communication with customers more difficult and expensive.

Examples of successful marketing campaigns started during economic downturns since the 1950s include Crest toothpaste, BMW, Calvin Klein jeans, and IBM personal computers.

No one says it will be easy
Building a brand during an economic downturn is not for the faint of heart. Devoting dwindling financial resources to marketing efforts is not an easy decision to arrive at. But the payoff can be significant. Not only might the hard times be lessened by increased sales in the short-term, the firm can enjoy greater brand awareness, customer loyalty, as well as, increased sales long after the economy strengthens and consumers loosen their spending.

One final note: such marketing efforts must be wise and judicious. The changes in consumer behavior that result from financial hard times must be understood and reflected in how firms relate to customers. Marketing "the way you've always done it" will not be enough. Consumers have new concerns and desires that businesses must recognize and appeal to.

Tampa Bay Rays offer perspective on building multi-generational workplace

2008-10-18T17:00:00.000-07:00

Key question: Do you make younger workers adapt to your culture or are you willing to adapt your culture to younger workers?

Whether small or large, most U.S. businesses are dealing with differing generational expectations, attitudes and values brought into the workplace by their employees. These differences are causing misunderstanding and strife between employees, as well as employees chafing at corporate culture and policies. The cause of such misunderstanding and irritation is that the generations currently comprising the vast majority of the U.S. workforce –from youngest to oldest: Millennials, Generation X, Baby Boomers and the Silent Generation – are retaining more of their generational “personalities” than previous cohorts.

The three teams remaining in the Major League baseball playoffs (Philadelphia Phillies, Tampa Bay Rays and Boston Red Sox -- the Los Angeles Dodgers have been eliminated) offer varying approaches to building multi-generational workplaces. Consider that:

Players are Millennials, Gen Xers and even a Baby Boomers (Phillies pitcher Jamie Moyer).
Middle management tends to be Xers and Boomers.
Top management and ownership includes Xers and Boomers.

Try to change workers
or change some for workers
While the Phillies and Red Sox have taken a more traditional approach that integrates their younger players into their culture, the Rays have made more adaptations to their organizational culture to better reach, involve and maximize the performance of their younger workers.

Some examples of how the Tampa Bay Rays have adapted their organizational climate to maximize younger workers include:

Hiring a manager who is open to the differing style of younger players. Whether their music, haircuts, or understanding that younger players want some work-life balance, Rays manager Joe Maddon recognized that such work style differences are not bad... just different from what other generations of players did.
The Rays showed significant trust the organization's younger players. Management was criticized in many quarters for not acquiring more of a "veteran presence" late in this season as a precaution if their young team wilted under the pressure of making the playoffs.
Over the last several years, the organization made significant investments in younger workers. Early this season, Rays management made a very unusual decision to sign a player who had been in the major leagues for only one week to the longest contract in team's history -- 9 years with six of those guaranteed! It should be noted that the player, third baseman Evan Longoria, was bound to the club for many years at a lower salary due to the rules agreed upon by the players union and Major League Baseball.
In addition, the ownership showed trust in the team's president and general manager -- both in their early 30s -- in making such key decisions.

No matter the outcome of the playoffs and World Series, the Tampa Bay Rays have shown organizations can benefit from examining their cultures, practices and climate and understanding that a "that's the way we've always done it" philosophy might not be the right fit for today's workers or the business environment it finds itself in today.

Why portray customers as clueless?

2008-10-05T22:10:00.000-07:00

An objective of advertising is to endear a product to current and potential customers. Allowing them to "see" themselves in advertisements is a basic tenet of marketing. Such groups should be able to identify with the commercial... that the advertisement hits their situation so closely that it could be them in the ad.

A good classic example of this was the long running advertising campaign by Michelin Tire that ended several years ago. Perhaps you recall the advertisements (above right) where babies and tires were featured with the slogan "Because so much is riding on your tires." People "saw" their babies -- no matter how old -- in the advertisement . The message and images related to their lives. A part of them was identified in the ad.

Portraying customers as foolish to attract new customers... it does not make sense.
While humor is a powerful tool in advertising and promotion, care must be taken not to cross the line where humor goes from attracting to repulsing. For example, in television advertisements over the last two years (below), Holiday Inn uses their own customers as the butt of the joke... making them look silly. So the message is: see our customers... don't you want to be just like them?

What do customers see in your ads?

Does it relate to them?
Is it attractive to them?
Do they want to be a part of it?

Let your customers be involved

2008-09-29T20:21:00.000-07:00

Businesses should do more than talk about incorporating customers into marketing efforts

Although businesses might not be able to go to the same level, the newly released movie Fireproof offers a lesson in customer involvement. The movie, which came in 4th place and earned $6.5 million for its debut weekend, asked for and got a level of participation from its constituencies during product development (shooting the movie) unimaginable to most businesspeople. For example, volunteers built the sets and it is reported that most of the people that made the movie also volunteered.

Why do it?
Allowing customer involvement is one way to increase customer loyalty. Such participation improves customer "buy in". They have a voice. They have a stake in the effort. They want you to succeed.

Easy to dismiss
Businesspeople should not dismiss this lesson too quickly due to an "our customers will not participate with us!" attitude. Granted, Fireproof is an example of extreme customer participation. However, too many businesses do not try hard enough to allow their customers to become involved with them.

Customer participation comes in many forms. A few examples of customer involvement across various industries include:

Airlines providing programs to let participants in their frequent flier programs donate airline miles to charities such as the American Red Cross.

T-shirt makers allowing customers to vote on which images (which were designed by volunteers) on shirts to sell.

Businesses aggressively soliciting and acting upon customer feedback regarding their products and services.

Providing online communities that allow customers to interact with each other and the firm.

A soda maker featuring pictures taken by customers on the labels on pop bottles.

The questions to ask include...
.....1. How could we be helped by customer involvement?
.....2. How can customer involvement be facilitated?
.....3. How soon can we get it going?

Quick response -- effective marketing

2008-09-21T14:40:00.000-07:00

Moving in a timely manner can be the difference between success and failure.

Economic news was very bad this past week.

The stock market dropped several hundred points one day mid-week.
Top management of the U.S. "Big Three" automakers were on Capital Hill to stump for Federal funds to assist their firms (GM, Ford and Chrysler).
Experts and newscasters tell how losses from sub-prime home loans and foreclosures in the residential house markets threaten the U.S. and world economies.
The Federal Government is working on a taxpayer funded $700 billion (at a minimum) bailout of various financial entities in an attempt to shore up the U.S. economy.

Obviously, this news is causing much uncertainty and angst among consumers.

Such times call for timely marketing responses
The newspaper advertisement (above right) is an example of a thoughtful marketing response that addresses issues on customers' minds. However, a significant portion of this advertisement's effectiveness is due to when it was in the newspaper -- in the weekend editions of the week described at the beginning of this entry.

Displaying benefits in promotions -- part II

2008-09-15T16:05:00.000-07:00

A May 2008 post on this blog discussed the benefits of directly tying a business's promotional theme to variables impacting customer lives and telling how your product, service and/or store can assist consumers in dealing with that issue.

Currently economic concerns -- ranging from high fuel prices to falling values for their homes -- are now on the minds of many U.S. consumers. Several examples of advertising that clearly address such concerns are currently on television. Each commercial's appeal is easy for customers to understand... you are in tight financial times and our product can save you money.

Here is one such television advertisement:

Ask yourself

What issues are your customers dealing with?
What concerns do they have?
Do I know even the answers to questions 1 & 2? If not, that's an item for future blog posting.
How can my marketing efforts be tailored to address those issues and concerns?

Business is about today and tomorrow

2008-09-05T16:23:00.000-07:00

Sole focus on the "here and now" can hurt in the future.

Premise #1
Businesses need products and services that are attractive to consumers in the "now". If a firm cannot sell enough in the "near-term", the "long-term" may not arrive for that organization.

Premise #2
Businesses cannot be so focused on their current product offerings that changing trends and consumer preferences are not recognized and acted upon.

Premise #3
Successfully balancing both premise #1 and #2 is difficult.

The example of the parking lot
While sitting outside a Starbucks in Burbank, CA (see 8-29-08 entry), the issue of balancing the near-term with long-term business perspective was parked right in front of me. Literally parked.

There were 24 vehicles in the parking lot on this Saturday morning at 7AM.
- the largest 11 vehicles were all from US automakers
..(12 SUVs/vans/pickups and 1 very large car)
- the remaining 13 smaller vehicles (all cars of various sizes)
..were from non-USA automakers

With gasoline around $4 per gallon, Toyota and Honda reported vehicle sales at very high levels during the summer of 2008. During the same period, American automakers' sales were poor. What caused US automakers to be in the position of not offering more fuel efficient vehicles when US consumers were craving them?

The lure of the high profit margins from larger vehicles (per unit profitability of pickups and SUVs have been - until recently - very high) was too tempting and became the prize of American automakers. Such a limited focus blinded executives from American automakers from possible opportunities and threats -- including the prospect of high fuel prices and the increasing green attitude of American auto buyers.

The impact of higher prices of fuel is not unprecedented. One only has to recall the high priced gas (with accompanying long lines at service stations) of the 1970s. Since such uncontrollable variables impacted the auto industry before, why were they missed by American automakers just 30 years later? The answer: too much focus on the "here and now" to the detriment of watching for (and reacting to) events and issues that would shape future consumer behavior, wants and needs.

Simplicity can be bliss

2008-08-31T17:05:00.000-07:00

Product innovation and continual product improvement are two of the main mantras of US business. In many industries it is "improve or die".

However, product improvements and innovation for their own sake can be a strategy misstep and should be aligned with consumer desires.

Take In-N-Out Burger, for example. This western (California, Nevada, Arizona & Utah) burger chain has maintained a simple and stable menu (see picture) for many, many years and their customers love it. They offer just a few items but they do them all exceedingly well. No chicken sandwiches, roll-ups, salads or breakfast here. Just how many hamburger patties and do you want cheese? Only one size in servings of french fries, shakes and coffee.

.....

Obviously In-N-Out does not try to be the fast food outlet for every fast food buyer. They know their customer base and focus on them.

.......

Living in an area of the country without any In-N-Out Burger outlets, I continually get comments like "wish we had them here" from complete strangers when I wear one of my In-N-Out t-shirts.

.......

In-N-Out keeps its customers in mind and those consumers want few (if any) changes. Such simplicity and limited product assortment is not for all firms but businesses need to take care not to innovate their products away from their customers' desires.

Don't forget current customers

2008-08-29T14:40:00.000-07:00

New customers not the only route to increased profits

While not taking anything away from the importance of new customers, current customers are often overlooked as a source of increasing sales.

How can this be? I think a major reason is that many businesses find it easier to track new customers than tracking increased sales from current customers. Businesses reward employees where data is available (i.e. attracting new customers) and, therefore, employees focus on new customers.

However, not looking at current customers as sources to increase profits is a mistake. By their very nature, current customers have an established relationship with the business... thus costs of their acquisition is lower than attracting someone that is not a customer.

An example

Dropping by a Starbucks one morning last week the sign above was prominently displayed (along with similar wording on the receipt). This "come back again later today" promotion has multiple potential benefits to the coffee chain:

Starbucks increases sales by bringing traditional AM customers back in the PM.

Starbucks gets the profits of the drinks ordered in the PM ($2 promotion price - actual cost associated with the drink = profit).

Builds the habit of stopping by Starbucks after 2 PM even after this promotion ends.

To do
The question is how can your business attract more purchases from current customers?

"Shoot straight" with customers

2008-08-17T07:01:00.000-07:00

Be accurate,
.....don't overpromise.

On a recent trip I had the opportunity to eat at Pret A Manger -- a sandwich shop with locations in London and New York City. These busy eateries specialize in preparing "natural, tasty food".

One item I noticed was Pret A Manger's promise (see photo) that states:
"Just Made" organic when we can, always
preservative-free and "Just Made", of course

This product statement is straightforward and clear. It promises without overpromising -- note the "when we can" clause. From the crowds at the several locations we passed and/or ate at, it is a hit with customers.

Check your advertising carefully

2008-07-26T07:36:00.000-07:00

Examine ads from customer perspective.

Like in everything else, mistakes happen in advertising. However, some mistakes result merely from the failure to look at (or listen to) the advertisements from the perspective of the intended audiences.

Taking the time to closely look at the words and images to anticipate how they will be received by consumers is a must. Sometimes businesspeople are so close to the ad or time pressed that problems are not found.

For example, the newspaper ad shown is for a "huge" sale going on at a local car dealer.

Stop... you might pay too much! Unless you shop at our dealership this weekend!
However, this appeal does not match up with the image just below it which indicates prices won't be slashed (see the blue arrow inserted on the ad). Oops.

It's not the end of the world. Maybe not many people noticed it... but those who would were likely interested in the advertisement (a.k.a. car shoppers!). In any case, it could have been caught and corrected prior to publication.

Deal with issues impacting consumers proactively

2008-07-24T09:20:00.001-07:00

It's not a new idea...
businesses just need to do it.

Gas prices have skyrocketed and have impacted consumer spending far beyond merely buying fuel for their personal vehicles. This is due to increased prices across many product types as a result from higher fuel prices for production and transportation being passed along to consumers.
....
Consumers are feeling the pinch.

If consumers are changing some buying habits this summer -- from what vacations taken to trading in trucks and SUVs for smaller cars, etc. -- what are businesses to do?

Sitting on the sideline should not be an option.
Businesses need to be proactive in addressing such consumer concerns. While offering free or cheaper gas with a purchase is not a new promotion (see example advertisement), it is very relevant to American consumers during Summer 2008. Hotels, restaurants, museums, etc. are promoting how their organizations can be part of "staycations" for those limiting or dropping vacation plans and staying closer to home (see example advertisement).

Intregrating promotional efforts to maximize results

2008-06-13T13:45:00.000-07:00

Pay attention to the "little" things.

Walking near a local Nordstrom store this morning left little room for doubt... there was a sale underway at the store. In fact it just wasn't any sale, it was a "HALF-YEARLY SALE".

How did I know? There were no posters, fliers, or bill boards in sight. The news was carried outside the store by customers... on the sacks they were carrying (above). Though this sale was limited to items in the men's department, such generic sacks could be used for sales in any department.

While businesses focus on advertisements in "major" media vehicles (radio, television, newspapers, magazines, etc.), it is often the little things that make a big difference.

No tomatoes = competitive advantage?

2008-06-12T14:55:00.000-07:00

Salmonella in tomatoes should be turned into opportunity for eateries.

Over the last few days many eating establishments have been posting signs with the news that they are not serving tomatoes (due to the current warnings regarding salmonella food poisoning in raw tomatoes).

Obviously this is not the doing of fast food or sit down restaurants and customers seem to not be holding the issue about possible bad tomatoes against them.

However, no businesses that I've seen or heard about have tried to take this situation "by the horns" and do anything good with it.

For example, why not promote something like "while we have no tomatoes (like everyone else!), we'll give extra meat on your ham sandwich". The "extra" could be more fries, a price reduction on the order (due to lower costs due to no tomatoes), and so forth.

The point is... why not use this situation that is beyond local control and develop some offer of value to current customers and also be an incentive for new customers to give your business a try?

Be basic. Be creative. But at least consider doing something proactive.

How has it gotten to this?

2008-06-09T20:57:00.001-07:00

Businesses versus their customers.... .... ..you've got to be kidding!

The title on the cover of the June 16th issue of BusinessWeek (see right) that arrived in the mail today highlighted the negative views some businesses have towards customers. It is sad to consider that businesses across industries look at consumers as a form of competition that need to be conquered. No wonder businesses complain of the lack of customer loyalty.

It is unfortunate that too many organizations fail to remember Business 101 and 501.

Business 101 -- customers are the only source of revenue.

Business 501 (graduate level) -- loyal customers are the most profitable customers.

When the situation gets to the point where a major business publication features your business against customers on the front cover in a replica of an old time boxing card handbill, it is time to make significant changes.

How would BusinessWeek represent your relationship with your customers?

Displaying benefits in your promotions

2008-05-30T20:55:00.001-07:00

Over the last several weeks in television commercials, Kia Motors has shown the benefit of their lower vehicle prices in terms that are both timely for many in their target market and with clear imagery.

You may recall seeing Kia advertsiements for their Sportage and Rio 2008 models that highlight safety, features and warranty but really trumpet how much each is priced less than leading competitors. What makes these ads effective is how the savings are shown... Kia shows how many grocery carts full of food the savings would buy (and several thousand dollars will buy quite a few carts full of food).

In a time when consumers are feeling the pinch of high gas prices (approaching $4 per gallon) on their household budgets, Kia leaves no doubt about what the savings from their vehicle prices can mean for the buyer. A picture is truly worth a thousand words.

The commercials will be added to this post when available.

Looking @ websites from mobile devices... is your site ready?

2008-04-07T16:49:00.000-07:00

It's not exactly new but the numbers are increasing quickly and organizations need to consider what impact it has on them.

Accessing web sites from smartphones and PDAs is no longer the exception and businesses need to consider the implications. The ownership of smartphones in the USA alone doubled in 2007 to 14.6 million. Although Web browsers for mobile devices are becoming more technologically advanced, viewing websites from these items still entail making trade-offs such as horizontal scrolling, small screens, and slower download times.

What's happening to new mobile browsers?

There are two improvements that are making web use from phones more congruent with viewing the web from a computer:
(1) the ability to render web sites smaller -- essentially miniaturizing websites for small screens,
(2) the integration of technologies like Java, CCS, Ajax, etc. that allow mobile browsers to better mirror full-scale browsers.

The continuation of these types of advancements -- in mobile browsers as well as smart phones and PDAs -- should eventually minimize the differences between mobile and "regular" web viewing . But the difference is still real so until then...

What can organizations do?

View your site on a mobile device to see what it looks like, its readability & viewability, and overall user friendliness.
Minimize the horizontal width of your website.
Carefully consider the size of images (download time and memory)
Consider an alternative website designed for mobile access utilizing a .mobi (versus .com) domain.

Don't forget the customers who might come to you by mobile web access. How does your website project your brand to them?

The"TMI" temptation of advertsing

2008-03-13T14:28:00.001-07:00

"Too much information" in ads = too much lost

Who doesn't like to get more for their money? It gives us a sense of accomplishment... that we've gotten a bargain.

However, more for our advertsing dollar can actually mean less. More words and images in the ad means that readers might actually see less due to all the clutter.

Look at these two ads from a local newspaper. The layouts of both ads have so much that little can be seen. Words and images get lost in all the information. And lost information mean less effective ads.

Closed for training... differing perspectives on Starbucks

2008-02-27T15:39:00.001-08:00

Starbucks decision to close over 7000 company-owned USA locations for several hours on the evening of February 26th in order to implement training in customer service and the making of their varied coffee drinks has caught the eye of new outlets... and understandably so. Starbucks reports that some 135,000 baristas were on the receiving end of the training effort.

Two viewpoints

1) The "How could Starbucks afford to do it?" perspective
.....Those with this point-of-view focus on a range of variables including the:

lost sales during the closure
"unproductive wages" (just consider the 400,000+ hours of barista training)
opportunities for competitors to access Starbucks' customers (for example, Dunkin' Donuts offered heavily discounted lattes, espressos and cappuccinos during this Starbucks evening training)
attention on negative issues at Starbucks given through media coverage of the training event

2) The "How could Starbucks NOT afford to do it?"
.......perspective
.. ..Those with this viewpoint -- and it seems to be a somewhat lonely place judging from what is currently read or heard -- wonder, even considering the possible negatives listed in #1 above, why wouldn't an organization be willing to take unconventional measures to refocus on its customers, if such methods were deemed productive?

Comparing the two sides
While those in the "how could they" camp focus on short-term negative outcomes that might result from this event, they seem to not consider the longer term negatives if Starbucks does not do something significant to counter some disturbing trends impacting their customers. One question begging to be asked is: "How much would continuing such current practices impact their profits if left unchanged". Two such practices that Starbucks reportedly focused on Tuesday night were in the areas of: (A) coffee drinks that are not prepared up to "Starbucks standards" and (B) not offering the desired consistent customer service that was a hallmark of the chain in earlier years but had been slumping recently.

Lift your cup high
Although Tuesday's closure of their locations surely had some short term negative consequences, let's hope that Starbucks customers lift their venti lattes (or espressos or macchiatos or whatever) high to toast the Starbucks management for their willingness to take a bold (and expensive) step to get the shops back to where they felt they needed to be. It will be interesting if Starbucks' customers taste and experience a difference (and for how long).

McDonald's: Please do coffee right this time!

2008-02-12T13:34:00.000-08:00

In an early 2007 Consumer Reports coffee taste test, coffee drinkers preferred McDonald's Premium Roast over blends of Starbucks, Dunkin Donuts and Burger King.

Currently, the local McDonald's are in the midst of reconfiguring their front counters to accommodate the fast food firm's move into expanded coffee shop offerings.

No options
Even though they have had a nice tasting product for over a year, McDonald's chose to maintain their fast food heritage regarding their coffee. Even though promoting their coffee as a premium beverage in a redesigned cup, McDonald's failed to offer customers any choices of creamers. Instead of a selection of milks -- cream, whole, 2%, non-fat, soy, etc. -- and flavorings, McDonald's has limited coffee drinkers to a single type of coffee cream in "mini moos" (the miniature creamer "buckets" topped with foil -- see the picture above).

To be fair, McDonald's coffee drinkers could have a wider selection of creamers (2% or non-fat)... if they bought a small carton of milk with their cup of Premium Roast!

Jump, don't just stick your toes in
McDonald's seems to have the coffee that satisfies the palate. Here's hoping they realize it is more than just the coffee. Since McDonald's is entering the coffee market with more gusto, it would be beneficial to remember that up-market coffee is not viewed as a commodity and that even variables seemingly as small as coffee condiments impact consumer perception.

Generational advertising, mixed messages

2008-01-12T15:58:00.000-08:00

Messages can be lost thru dated material

In December 2007, Kia Motors continued using the theme of parody retro music-oriented television commercials to promote their Annual KiaFest Year-End Sales Events. This was done via the takeoff of the song "Maniac" from the 1983 movie Flashdance.

Advertisements for similar sales in previous years featured playful takeoffs of the mid-1980s music scene (Styx and techno-pop).

I like the Maniac Kia commercial. It was fun and funny. Of course, I graduated from college in the early 1980s and have seen Flashdance.

My daughter didn't get it. She thought the commercial was pretty cheesy (and considered the salesman's pelvic trusts toward the car a bit "disgusting"). She has never seen the movie and would have only heard the song on an oldies radio station when I use to chauffeur her around. I don't think "cheesy" or being associated with an oldies station is a business' ideal brand position for their products.

Reading various comments on the web regarding the commercial revealed a wide array of comments about the commercial. Many asked if anyone knew the name of the song. Others wrote how funny they thought the actor was. Two things I did not see... much about the vehicles or the sales event.

Should Kia care?
Perhaps they should if they think younger age customers will be needed to reach their sales goal of 500,000 units a year by 2012 (up from just under 300,000 units in 2006). A look at Kia, from their prices, vehicles and promotions -- including a College Graduate (Sales) Program -- indicates that younger buyers are indeed a key target audience for Kia.

Including generational dependent content in ads is dicey.
If the consumers trying to be reached have a wide age range, building a commercial on a dated event, movie, personality, music, etc. runs the risk that a portion of the audience will not fully understand the intended message. Worse yet, some of that audience will develop negative (if even slightly) associations for the product by not "getting" the intended impact of the material and assigning their own interpretation to it.

Obviously, some dated material is less likely to have such unintended consequences. For example, Beatles music still transcends age groups.

Be careful.
Take care to understand the impact of including generational dependent materials in promotions. If your various customer groups have a significant age range, the promotion runs the risk of sending mixed (and sometimes undesired) messages.

New Year's resolutions, consumers and business

2007-12-30T20:28:00.000-08:00

Showing how your product can assist prospective customers achieve a desired state in their lives makes sense. So much sense, in fact, that it is surprising it is not done more often and overtly by incorporating "resolutions" into advertising at a time when many people formulate New Year's resolutions.

In 2007, New Year's resolution promotions included:

Home Depot with a tv commercial for those wishing to keep their home better organized in 2008 by purchasing storage solutions. This was in conjunction with a webpage (above right) and newspaper inserts for "The Ultimate Storage Event" sale.

Valerie Bertinelli's video blog (with related tv commercial) as celebrity spokesperson for the Jenny Craig weight loss program. This includes an interesting twist on the New Year's resolution theme.

A university's adult degree completion program which featured an ad in the local newspaper with the heading "New Year's Resolution No. 1: It's My Time. Time to do something for my career, my future... Time to finish my education"

Does your product or service lend itself to assisting consumers to reach a goal (i.e. helping them reach a desired outcome)? If so, consider how and when to communicate with that audience. Perhaps resolutions brought on by a new year are opportunities to do so.

....................................................................................................................................

It must be remembered that to build and maintain long-term relationships with them, customers must feel like your product actually helped them (or at least provided them with the chance) to reach their goal.

Gift card sales key... think tactics thru carefully

2007-12-28T18:12:00.000-08:00

ad #1
(actual size = 2 x 2.5 inches)

ad #2
(actual size = 2.25 x 2.5)

The news accounts that retailers are banking on the combination of heavily discounted prices and purchases made via gift cards to make the holiday retail season successful is not new for 2007. While gift cards have become increasingly important to post-Christmas sales over the last few years, post-holiday discounting to boost profits and reduce inventories have become traditional staples of retailing.

Since gift cards play such an important role, many retailers are attempting to get the word out that their store is where to use the gift card (if it is a generic gift card like those from Visa and MasterCard) or now is the time to use the gift card to a particular store (since sales from gift cards are not put on the books until the cards are redeemed).

Here are two interesting promotional items regarding gift cards – both in today’s (12-28-07) newspaper.

1. Advertisements to promote the purchase of gift cards have been often seen on television, radio, newspapers, etc. during the 2007 holiday shopping season. It is easy to understand why since consumers have bought gift cards in huge (and perhaps record) numbers. However, the ad (see ad #1 above) in a twelve page insert the 12-28-07 newspaper seemed a bit late – and quite small. Promoting gift cards would seem to be more of a pre-holiday item.

2. Businesses also seek to give consumers reason to redeem gift cards soon after Christmas by using the cards at post-holiday sales. An advertisement (see ad #2 above) in an eight-page newspaper insert (on 12-28-07) told shoppers to “make your JCPenney gift card go further” by using it with the bonus coupons in the insert. It was interesting to note that this tiny notice was located on the bottom left corner of the last page of the insert… which gave key information to the consumer very late – if they saw it at all. This might have been page one material.

The upward trend for gift cards shows no indication of slowing. The properly timed implementation of carefully developed tactics related to gift cards can improve a business’ bottom line.

2007 Holiday Marketing Results... Something to Consider for 2008

2007-12-24T08:17:00.000-08:00

The pre-Christmas article titled "Stores frustrated as shoppers' holiday procrastination gets worse " is an example that shows many businesses do not readily see the effects of their actions on the behavior of consumers. In the article, retailers bemoan the recent trend of more consumers waiting longer to do or complete their holiday shopping. In response to this, some retailers feel forced to increase the use of pre-Christmas sales and other incentives to attempt to entice shoppers to buy soon (if not now!) and from them. This impacts profit margins but businesses think this is better than fewer purchases.

Businesses blink first
Although external forces (such as consumer confidence, perceptions on the strength or weakness of the economy, etc.) impact spending, businesses need to understand that they have played a significant role in "teaching" holiday shoppers to delay purchases later in the holiday shopping cycle by actually rewarding them for waiting to shop. Consumers have learned that businesses will offer incentives to buy (sales, coupons, free shipping, increased store hours, gifts for purchasing, etc.) and they just need to outwait retailers. Shoppers have learned that the retailers will blink first.

Now that shoppers have learned this, it will be difficult (but not impossible) for businesses to alter consumer expectations.

What can be learned for 2008?
There are two routes businesses can follow: (1) continue the current trend to battle for consumer spending predominately via incentives; or (2) attract buyers by offering truly distinctive products and services that are more immune to price/incentive-based buying.

A downside to shopper incentives is that to be effective they must continually be bigger and bigger. Otherwise, today's incentives are beat by competitors who increased their incentives to increase their sales. It is a ruthless cycle.

The second option is not easy (or even possible for some business models)... but the rewards are significant. Some examples of distinctive brands/products that have weathered the price/incentive onslaught of the 2007 holiday shopping season include Nintendo's Wii and Apple iPods. This was accomplished by having products that were uniquely different from competitive offerings that were not over-inventoried (Wii) and by redefining consumer expectations of design and style (Apple iPods). However, this option is not just for big businesses. A local bookstore minimized the use of incentives by offering superior customer service (in this case an extremely knowledgeable, well-read sales staff) that attracts and retains buyers.

The question to ask is how can your store, product and/or brand start making your offerings more special in the eyes of customers and, therefore, less subject to the mandatory incentives cycle.

It is not easy or quick, but the results are worth it. The time to start for the 2008 holiday shopping season is now.

p.s.
Although this entry focuses on the holiday shopping season, the issue of the over reliance on incentives to stimulate sales is year-round.

Stopping consumers in their tracks

2007-12-20T19:15:00.000-08:00

Macy's Union Square
Level 3 window

The Apple Store

Level 2 window

The Levi's Store

Level 1 window

The holiday shopping season was in full swing during a recent trip to San Francisco as retailers vie for the estimated $474.4 billion in 2007 holiday spending.

Walking around the shopping district surrounding Union Square, the levels of use (and non-use) of holiday window displays was plain to see and broke into four distinct groupings:

Level 0 - Window displays as usual... no attempt to "holiday-ize".

Level 1 - A slight bit of "winterization" (giant snow flakes, red & green foil, etc.).

Level 2 - Holiday themed window displays.

Level 3 - Destination windows... windows that not only made people stop but also were places they came to see.

What's the verdict?

Level 0 and 1 windows did not draw consumer glances nor slow them down.
Level 2 (themed) window displays drew glances but did not often slow consumers down.
Level 3 window displays not only drew glances... shoppers actually stopped, looked and paid attention.... giving the store the opportunity to have a prolonged brand interaction with consumers.