February 29, 2008

Marketing Connections: Sites to Explore

Anyone interested in marketing knows that the strategies used today will be exhausted and remodeled by tomorrow. In this cutting edge field, it is of utmost importance to remain in tune with the trends and innovations that emerge everyday. For this reason, I have decided to explore the vast world of the Internet in the hopes of discovering web resources that are both relevant and compelling. This week, I have come up with a list of ten outstanding websites and blogs (see Linkroll) that fit nicely into this category.

News sources on the web can be some of the most useful places to find information about the latest issues in marketing. AdvertisingAge is highly acclaimed and widely accepted as an expert source in the advertising world. Not only does it meet all of the determining criteria for an exceptional website, but it also is known for publishing daily articles, columns, and blogs that are pertinent and engaging. AdWeek is similar to AdAge in that it is a renowned and qualified source for marketing-related articles. It is also a good place to view videos (pictured left), job listings, photos, ad campaigns, and data on agencies, companies, and consumers

The Academy of Marketing Science Review and the Market Research Portal mainly focus on research-related academic materials. Although the AMS Review leaves something to be desired when it comes to aesthetics and complexity, it is nonetheless a valuable resource that provides the full text of academic journals free of charge. The Market Research Portal is a more interactive site designed for market researchers as well as academics. Again, the visual design is not of the highest quality, but there is a wealth of articles, documents, links, discussion boards, and glossaries to explore.

There are also several marketing associations that are worthwhile web sources. The American Advertising Federation, which claims to act as the "Unifying Voice for Advertising," is a trade association representing professionals and college students. The primary purpose of the website is to provide information on AAF, but it also lists events, awards, and job opportunities. The American Marketing Association, however, is much more useful as an academic and professional resource on current issues. In addition to career and organizational information, this website also has numerous publications online, including white papers, articles, case studies, and webcasts. Another link that falls into this category is the Business Marketing Association, which focuses on business to business marketing. With a discussion board and several research-related resources, this site is beneficial for those specifically interested in how business can market to each other. The Public Relations Society of America is another specialized website that mainly champions its own organization, but also presents a significant amount of additional supplies for people interested in PR, including a Professional Resource Center, where non-members can pay $5 for case studies, articles, and surveys.

Brand Autopsy and Church of the Customer are both commendable blogs maintained by professionals in the field. Brand Autopsy is written by John Moore, who is responsible for the marketing strategies of Starbucks and Whole Foods Market. Moore's qualified point of view coupled with numerous videos and pictures makes this blog a worthwhile visit. Ben McConnel and Jackie Huba are writers, speakers, and consultants that uphold the Church of the Customer blog. This site is less interactive and the posts are shorter, but nonetheless they are well-written and breach topics that are not obvious or overly discussed.

February 19, 2008

The Mystery of the Consumer: Finding Needs and New Ways to Meet Them

The field of marketing is constantly being molded by an assortment of different factors including new ideas, technology, trends, laws, and most importantly consumers. Because consumers change, marketers need to continuously find new ways to reach them and meet their needs. Marketers today try to find any way possible of finding out exactly what it is their consumers want. Innovation becomes increasingly important, both as a means to connect with consumers and as a tool to stay ahead of the competition.

In order to explore this topic further, I have chosen to investigate the blogosphere. During my search, I have come across two interesting blog posts concerning consumer needs and finding innovative ways to serve them.

The first post that I have chosen was written by Larry Bailin, author of the book Mommy, Where do Customers Come From? (pictured left). The post (from connectedcustomers.net) is titled "Hungry for Better Service" and it discusses the implementation of an ESP System at TGI Fridays that allows the customers to notify the waiter electronically when they need assistance using the customer service watch (pictured below). Commenting on the importance of innovation and consumer needs, I have posted a reply on the site and copied it below for convenience.


The second post is one that was published on My Creative Team's blog (THINKing) titled "What Consumers Want." The blog is written by marketing professionals and this particular post gives some remarkable insight into how consumer research can influence marketing decisions in positive and negative ways. The author argues that it is not sufficient to ask consumers what they want, and we should instead be asking questions to discover how they think and how they make decisions. I have posted a comment in response to this post and I have copied it below.


Response to "Hungry for Better Service":

Thank you for the intriguing post on the new ESP System! As a student at the University of Southern California Marshall School of Business, I have come to realize that success in any organization goes far beyond simply meeting the needs of your customers. Success means reaching beyond the status-quo, and doing things that haven’t been done before. Given the competition present today in any industry, especially the restaurant industry, businesses need to be exceeding expectations instead of simply meeting needs. With its new ESP System, TGI Fridays did just that.

Not only does this device improve customer service, but it sets this restaurant apart from all of its competition. I think it is especially important for TGI Fridays to differentiate itself because it does not offer anything different from competing chains and its consumer base is not unique. With this innovation, however, consumers can clearly see the company taking extra steps to serve them. And there is no doubt that this effort is noticed, and talked about. Regardless of the food quality, people will be talking about TGI Fridays because they have come up with something new, something that is designed to make a better dining experience. The word of mouth advertising the company will receive from this innovation is well worth whatever investment they made to implement it.

I would also like to comment on another one of your points, which is the fact that customer service is generally not considered part of a company’s marketing strategy. I definitely agree that this is a crucial factor that can no longer be ignored. In fact, I think the only way to maintain a loyal customer base is to focus on constantly improving customer service. A company can only do so much to differentiate their products. When it is clear to the customer that you are going above and beyond to make their experience an enjoyable one, they will be yours forever.


Response to "What Consumers Want":

This post brings up an interesting point. Traditionally, the focus of marketing was to sell the product to the consumer, whether they wanted it or not. Unfortunately, the result of this tactic was often to present misleading information and deceive the consumers in order to get sales. I think this is where a lot of the mistrust in advertising by the general public stems from. Consumers don’t want to think of themselves as consumers. More importantly, they don’t want to feel like they are being tricked into buying something. They want to think that the companies they buy their products from actually care about them and want to help them solve all their problems.

Today, marketers have shifted their focus from trying to sell their products to an unassuming audience to finding out what their consumers wants and needs are and trying to satisfy those needs. This approach seems not only more humanitarian, but also more profitable. The solution is incredibly intuitive, ask the consumers what they want, then give it to them. But, as we all know, it isn’t that simple. As this post clearly argues, consumers don’t know what they want. In addition, there are too many other factors to consider when developing, redesigning, and marketing a product. Not only do consumers not know what they want and what they and others would actually buy, but they don’t know what is feasible given current technology and monetary constraints. They don’t have information on competitor’s strategies, and they don’t know what is best for your company. Moreover, it is crucial for any business to constantly innovate and think of new ways to serve their customers. Simply giving consumers what they ask for in a focus group or survey is certainly not enough to stay ahead of the game.

I think the point raised in this post concerning studying your consumers’ behaviors versus studying their preferences is entirely valid given my argument. The best way for marketers to learn about what their consumers want is by finding out exactly how they go about their days, what needs to they have that aren’t being met, how they make decisions, and what’s most important to them. Only by understanding how our consumers function can we begin to truly meet their needs.

February 10, 2008

The Search for the Medium of Tomorrow: Why Television Advertising Isn't Dead Yet

Today's media landscape provides marketers with a multitude of possible creative concepts and media combinations. In this highly competitive and complex market, advertisers are searching for any way possible to catch the eye of the illusive consumer. While innovation seems to be the word on everyone's minds, marketers are beginning to doubt the effectiveness of traditional media. Although it is important to embrace the variety of new venues available for reaching consumers, we simply cannot deny the power that television still holds as a marketing medium.

As the advertising landscape rapidly develops with the advent of new technology, many marketers believe that the only way to keep up is to stay ahead. Whatever worked before is simply not good enough, today's advertising needs to constantly push boundaries to succeed. With experts like Jim Stengel, global marketing officer for Procter & Gamble, calling for a "mindset shift" in the way we think about advertising, it would seem that change has become the staple of success. Stengel argues that instead of simply "telling and selling," marketers need to be focusing on building relationships with audiences through campaigns that embrace new, interactive media that puts the consumer in control.

For many, innovation means leaving behind the traditional anchor media such as television and embracing the tools of technology. According to the president of GM North America, television used to be the answer, "the only problem is that it stopped working somewhere around 1987." The downfall of television advertising has largely been attributed to the rise of the Internet as the ultimate consumer marketplace.

One argument for the apparent loss of effectiveness in television advertising is that because people are spending more time on the Internet, they are spending less time watching TV. However, Nielsen Media Research reports that "40% of the US 2+ population are more television-centric, 24% are more Internet-centric, and 15% are equally heavy users of TV and the Internet" (April 2006). As shown in the graph on the left, heavy Internet users even tend to watch more television than light and medium Internet users. According to another Nielsen study in April 2007, 56% of consumers trust television advertising, whereas only 34% trust search engine ads and 26% trust online banner ads.

It is clear that people are still watching television, but what about the TiVo factor? With recorded television becoming increasingly popular, does anyone even watch the commercials anymore? These questions have been addressed by several studies that have shown that the effectiveness of television ad campaigns has not been heavily impacted by the advent of the DVR. Communicus research reveals that "the differences based on DVR ownership or personal usage are only directional--as of early 2007 there is no clear pattern suggesting that DVR's have impacted on branded engagement with actual commercials that have aired on traditional TV." On a long-term basis, TV advertising increased in effective awareness between 1980 and 1995, and has been stable since then.

Television has continued to be a critical element of successful campaigns for several reasons. Most notably, advertisers still need to speak to a broad target. While marketers have become enamored by the Internet components of their campaigns, the audience that they reach is incomparable to the traditional television spot. Although Internet campaigns have higher levels of involvement among viewers, much of the high-level engagement takes place among a relatively small set of already loyal brand users. Television commercial awareness scores, on the other hand, reach an average of 15% of US adults, which translates to around 30 million people.

While television is certainly a necessary component of any major campaign, it is important not to downplay the importance of the use of integrated multimedia. In fact, the best campaigns are those that incorporate multiple media messages that play off of each other to create a synergy that enhances brand awareness. The ideal for every advertiser is for each message to enhance and build upon the others. Typically, television creates the initial momentum, driving the audience to the other media such as websites or online videos.

One example of a company that has successfully integrated a multimedia message is Geico Auto Insurance. The television-centered Geico campaign features the highly recognizable Gecko (pictured right), who has come to be the face that most consumers associate with the company. The television spots do an excellent job of plugging the website, driving many consumers online for a car insurance quote. The campaign also employs Internet banners for click-through, bringing in even more website traffic. This Gecko campaign has created a brand awareness that has made Geico one of the "fastest-growing auto insurance brands."

The conventional wisdom for marketers today has been to focus on innovation to stay ahead of the times. As soon as word got out that the Internet was the wave of the future, everyone seemed to assume that television was dead or dying. However, it is important to keep in mind that many times the trend has been to over-exaggerate the effects of new technology. When computers first arrived in our homes everyone predicted that robots would be doing our chores within a matter of years. With this in mind, it is crucial that marketers today recognize the power of new media, but do not forget that their audiences can still be reached using the staples of the traditional model.
 
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