Wednesday Night Marketing News from Mediapost

Click and Read:

Automotive
by Karl Greenberg
How are BMW, VW, Honda and Toyota bringing in younger consumers? VW of America COO Mark Barnes says it’s about product and bringing in a new generation. “The mass media we are using is TV, but we are getting far more engaged in the digital world,” he says. “When we introduced the new GTI, we used iPod and iPhone. Our GTI sales were up tremendously versus last year so that has worked very well.” …Read the whole story >>
Telecom
by Aaron Baar
“We have a particular interest in reaching the youth demographic as they tend to rely on texting as their dominant form of communication and are often new drivers,” Chris Schembri, vice president of media services at AT&T, tells Marketing Daily. “AT&T has an existing relationship with The CW and ‘Melrose Place’ via [traditional] advertising. As such, we leveraged this relationship to reach the network’s core youth demographic.” …Read the whole story >>
Restaurants
by Karlene Lukovitz
Saying that Subway “hasn’t really broken through yet” with its Seattle’s Best offering, Technomic’s Ron Paul notes that it’s possible that Subway’s breakfast initiative could have more of an impact on Burger King and other competitors than on McDonald’s. …Read the whole story >>
Automotive
by Karl Greenberg
IHS predicts that Honda will move toward 12% of the market, while Nissan, Hyundai, Kia and Chrysler bunch together around 7%. “The bottom line is that since nobody is catching the younger generation. All share is fluid and up for grabs. People who can get the younger generation win because, at the end of the day, the job market will be there for them in 2014 and they will drive market share.” …Read the whole story >>
Packaged Goods
by Tanya Irwin
Carrie Underwood appears on Pedigree’s Web site accompanied by her Chihuahua, Ace, who she adopted three years ago. “He seems like one in a million, but unfortunately he’s not,” she says. “Four million other great dogs like him end up in shelters and breed rescues every year.” …Read the whole story >>
Automotive
by Karl Greenberg
Fiat/Chrysler chief Marchionne said that by 2014 more than half of Chrysler vehicles will use Fiat architecture and over 40% will have Fiat powertrains or technology. He added that Fiat will develop car platforms while Chrysler oversees development of large vehicles. “The deal represents an enormous step forward for both of us.” …Read the whole story >>
Research
by Sarah Mahoney
“Many younger consumers fall into the Gen Y category we call ‘home artisans,'” she says. “They’re really enthusiastic about learning all kinds of skills, from gardening to knitting to sewing to cleaning effectively. For them, it’s about reconnecting with authenticity.” …Read the whole story >>
Automotive
by Karl Greenberg
“There’s real income growth,” says Nariman Behravesh, chief economist at IHS. “However, it’s not so much the ability to buy as a willingness that’s a major obstacle. Gasoline sales as a share of take-home pay are below 3% and that gives households a little more room to maneuver. The negatives are unemployment, tight credit and high debt burdens.” …Read the whole story >>

Wachovia Adopts Wells Fargo Moniker Overseas

Voice Perception


Since my primary business is radio, I found this interesting. Hope you do too!

From MarketingCharts.com:

Forceful, Soothing or Persuasive Voice: Which to Pick For Ad?

According to a new Adweek Media/ Harris Poll by Harris Interactive, 48% of Americans believe a male voice is more forceful selling a product or service in an advertisement, while 46% believe a female voice is more soothing. But, almost half of U.S. adults also say it makes no difference to them and neither voice is more forceful or more soothing. Not an easy choice for a marketer, says the report.

If the advertisement is trying to persuade someone to do something, one in five Americans believes a female voice is more persuasive while 18% say they believe a male voice is more persuasive. Almost two-thirds say the voice’s gender makes no difference in persuasion.

When it comes to actually selling a specific thing, two-thirds of Americans say it doesn’t make a difference and neither voice is more likely to sell them a car or a computer. Among those who believe it makes a difference, over one-quarter believe a male voice is more likely to sell them a car and say a male voice is more likely to sell them a computer. Only 7% say a female voice is more likely to sell them either.

Effect Of A Voice In Commercial, (Base: All U.S. adults, % of Respondents)

Type of Voice Preferred

Voice Effect

MaleVoice

FemaleVoice

Makes no difference

More forceful

48%

2%

49%

More soothing

8

46

46

More persuasive

18

19

64

More likely to sell me a car

28

7

66

More likely to sell me a computer

23

7

69

Source: Adweek Media/Harris Poll, March 2010

Men and women do think similarly on the tone of the two types of voices, with one major exception. Over half of men believe a female voice is more soothing, compared to 38% of women who say the same.

Effect Of Voice In Commercials, By Gender (Percent Saying “Female Voice,” Base: All U.S. Adults)

Rounded % Saying Female Voice

Effect of Voice

Total

Men

Women

More forceful

2%

2%

3%

More soothing

46

54

38

More persuasive

19

20

18

More likely to sell me a car

7

9

5

More likely to sell me a computer

7

10

5

Source: Adweek Media/Harris Poll, March 2010

One in ten women believes the tone of a male voice is more soothing while 5% of men say the same. The only other real difference between men and women is on the selling of a car. One-third of men (32%) say a male voice is more likely to sell them a car compared to 23% of women who say this.

Effect Of Voice In Commercials, By Gender (Percent Saying “Male Voice,” Base: All U.S. adults)

Rounded % Saying “Male Voice”

Effect of Voice

Total

Men

Women

More forceful

48%

51%

46%

More soothing

8

5

11

More persuasive

18

21

15

More likely to sell me a car

28

32

23

More likely to sell me a computer

23

24

23

Source: Adweek Media/Harris Poll, March 2010

The report concludes by noting that “… overall, the American consumer does not believe that, for most things, one type of voice is more or less likely to sell them a certain product or service… (though) male voices are more forceful while female voices are more soothing… when it comes to cars and computers… the tenor of the ad will matter more than the gender of the voice.”

For additional information, please visit Harris Interactive here.

What they REALLY want…


This is a human principle, not a sales, advertising or marketing driven principle.

From RBR.com:

The late ‘90s mantra of “Show me the money” has morphed into “Show me the value,” reflecting a new focus by consumers hungry for value in all its forms, according to Convergys’ recently completed 2010 Consumer Scorecard Research study. Recession-weary American consumers want the companies with which they do business to value them, value their time, value their money, and value their preferences, say the study findings, released by Convergys Corporation.

“Today’s consumer expectations are clear. They expect good value for their money and timely acknowledgement and resolution of their issues by knowledgeable employees,” said Jim Boyce, President, Global Sales and Services, Convergys. “Consumers will simply take their business elsewhere when their needs are not met. At the same time, the companies that have the customer service mechanisms in place to give their customers what they want are the companies that will retain and even grow market share,” he said of the study findings.

Convergys, a global company which calls its business “relationship management,” conducts primary research to advise its clients on how best they can differentiate themselves and win through the customer service experience. Results from Convergys’ second annual consumer research study demonstrate that the recession has increased consumer demand for excellence in customer service. 46% of the study respondents reported that they are worse off than they were a year ago, and the key word for today’s consumers is “value:”

Value my time: Consumers continue to expect superior customer service experiences, with 33% of survey respondents choosing “addresses my needs on first contact” as the top customer service attribute, up slightly from the 2008 pre-recession research. Since they are key to first-contact resolution, “knowledgeable employees” also ranked high, chosen by 25% of consumers as the third most important customer service attribute, up from 22% in 2008.

Value my money: Recession-weary consumers are not just looking for the lowest cost but the best value in their customer transactions. 31% of survey respondents chose “good value for the money” as the second most important customer service attribute, up significantly from 2008. 33% of respondents rated reliable service as more important than price in their definition of what constitutes “good value for money.” Only 5% of customers defined good value as “paying the lowest price.”

Value me: “Treats me like a valued customer” was the fourth most important attribute, cited by 22% of survey respondents, up from 13% in 2008 and the fastest growing attribute of choice for consumers who want positive acknowledgment from the companies that win their business.

Value my preferences: Survey respondents’ contact channel preferences point to an increasing need for multiple customer care solutions that combine agent-assisted service with automation and self-service options. While consumers still prefer to speak with a customer service agent, customer service via self- service, live web chat, automated phone systems, and e-mail with response is also gaining traction.

Despite consumers’ clear preferences for value and efficient issue resolution, bad customer experiences continue to frustrate consumers, 57% of whom reported having a bad experience with a company, up slightly from 2008. In response, today’s value-minded consumer is more likely to speak with his or her wallet: 44% of the survey respondents who had a bad experience reported that they stopped doing business with that company, up from 38% in 2008.

Those who stay are more likely to seek and expect resolution from a company when they do not receive the service and value they expect. Survey respondents reported that they informed companies of their bad experiences 66% of the time, up from 58% in 2008. Companies that were not equipped to resolve or respond to customer complaints paid the price in customer defections. 57% of survey respondents who reported a bad experience and did not receive a response from the company stopped doing business with the offending party, as did 50% of respondents who received a response without resolution.

80% of survey respondents who had a bad experience with a company also told their friends and colleagues about it, spreading the word through face-to-face chats, e-mails, text messages, and social media, which has immense power to amplify the voice of the frustrated consumer widely among a company’s customers and potential customers.

“There is a silver lining,” says Boyce. “Our research found that a meaningful number of customers who stopped doing business with a company after a bad experience would do business with that company again if the company made an effort to win them back.”

Convergys’ Customer Intelligence Services surveyed 2,500 customers, 1,500 employees, and 120 executives of large companies in the United States and the United Kingdom in January 2010.

Are you Sticky?


From Jim Meisenheimer:

Your Words
Are They Made To Stick


Your Words – Are They Made To Stick?

Do your words have sticking power?

I’ve always believed that the principle tool salespeople rely on to sell their products and services is words.


Chip and Dan Heath wrote an incredible book in 2007 titled, “Made To Stick.”

I really enjoyed reading this book. So much so, that I have eight typed pages of notes.

Yesterday, I was reviewing these notes and they gave me some ideas for this week’s newsletter.

But first a few examples of words that stick.

Last week Bernadette, my wife, and I stopped at Staples for a few supplies. We were greeted at the door by one of their salespeople who was handing out FREE PC tune-up coupons.

As he handed us a coupon he said, “It’s an energy drink for your computer.”

His words had sticking power. He used seven words to describe Staples free tune-up.

Here’s another example I remember. I remember it, because I can’t forget it – the words have sticking power.

About six years ago I was doing a one-day sales training program in Phoenix. I completed the room service order form for a continental breakfast and asked that it be delivered at 6:30 AM.

At 6:25 AM my phone rings. I answer and say, “Hello.”

The caller then says, “Room service – I’m ready if you are!” It must be something magical about using seven words if you want something to stick.

As a professional speaker and sales trainer I’ve stayed at more than 1400 hotels during the last 21.5 years. I always order a room service breakfast.

During these 21.5 years no one else has ever announced my room service with such distinction and clarity, “Room service – I’m ready if you are!”

Back to the book – “Made To Stick.”

Here’s a list of some of the ideas I took away from the Heath Brother’s book – “Made To Stick.”

Think about this. Are your ideas born interesting or made interesting?

Why do some ideas succeed while others fail?

Simplicity – to strip an idea down to its core, we must be masters of exclusion. Why use 15 words when seven words will work and stick.

The more we reduce the amount of information in an idea, the stickier it will be.

Our messages have to be compact, because we can learn and remember only so much information at once.

An old advertising maxim says you got to spell out the benefit of the benefit. In other words, people don’t buy quarter inch drill bits. They buy quarter inch holes so they can hang their children’s pictures.

And one more for the road. One of the worst things about knowing a lot, or having access to a lot of information, is that we’re attempted to share it all.

When you’re calling someone for an appointment, what are you saying that creates intentional stickiness?

Before a sales call, have you ever thought about what you want your sales prospect or customer to remember? What will you say, during your sales call, that’s made to stick?

You’ve heard that less is more. Which is more likely to stick, less or more?

If you want to be remembered by your sales prospects and customers do something that’s memorable and say something that sticks.

Wrap your sales presentations in Velcro if you want your ideas and benefits to stick.

Why be ordinary, when with a little extra effort, you can be extraordinary?

Skip the sales babble, say something that’s made to stick.

You can go here to learn more about this incredible book.

Jim Meisenheimer. 13506 Blythefield. Lakewood Ranch. FL. 34202
941-907-0415. jim@meisenheimer.com. http://startsellingmore.com

Tuesday Night Marketing News from Mediapost

From my email, to this site, to your eyeballs…

Automotive
by Karl Greenberg
In September, the company launches a turbo version of Sonata plus the car it unveils at this week’s show: the Sonata Hybrid, its first such vehicle. Hyundai will simulcast the Javits Center press conference on the LED screen in Times Square while “air cleaners” dressed in Hyundai-branded attire hit 42nd Street and Broadway, directing people’s attention to the screen. …Read the whole story >>
Research
by Tanya Irwin
“The Great Recession became the great equalizer,” says Colloquy’s Kelly Hlavinka. “Customers view loyalty differently. We’ve witnessed a profound change among consumers since the recession hit: Low prices have stepped up to become retail’s strongest loyalty lure. That is something which was simply not true in 2008.” …Read the whole story >>
Retail
by Sarah Mahoney
It’s a chance for Whole Foods — a marketer that has never been able to compete on price, despite a few nods to the economy during the worst of the recession — “to switch the conversation away from a value argument back to a quality argument,” says marketing professor Michael Solomon. …Read the whole story >>
Restaurants
by Karlene Lukovitz
Technomic also noted a small increase in the percentage of newly opened units that are franchised, as opposed to company-owned, last year — reflecting chains’ turning increasingly toward franchising rather than corporate investment for expansion within the U.S., Paul tells Marketing Daily. …Read the whole story >>
Mobile
by Karl Greenberg
The study also finds that AT&T Wireless indexes well above average in tendency of customers to switch to another service, while TracFone indexes well above average for customer loyalty. Virgin Mobile’s customers also over-index in having less of a propensity to switch. …Read the whole story >>

Uno Marks Deep-Dish Pizza Day For Its 65th

Hispanic Buying Power


from MarketingCharts.com:

Half of U.S. Advertisers Missing Trillion Dollar Hispanic Market

According to a new Hispanic marketing trends survey, commissioned by the Hispanic advertising agency Orcí, the 2010 U.S. Census is expected to find that Hispanics number more than 50 million in the United States, and command $1 trillion in buying power. Yet half of U.S. advertisers, says the report, who acknowledge the cultural impact of Latinos, do not include Hispanics in their marketing efforts.

Latinos comprise more than 15% of the U.S. population, and are predicted to rise to 50 million in the 2010 Census, an increase of 42% since the last Census in 2000. In the 2000 report, the Hispanic growth rate of 24.3% was more than three times the growth rate of the total U.S. population, which was 6.1%.

Yet the research showed that 82% of respondents have no plans to begin or increase existing efforts aimed at American Hispanics in the next 12 months. This despite the fact that the great majority of respondents agreed that Latinos will impact U.S. companies’ product and service offerings in the next five years, particularly in food tastes, fashion and technology.

Hector Orcí, co-founder and chairman of the agency, says “… for the last 30 years, a minority of companies that have been smart enough to take advantage of engaging Hispanic consumers, have seen their efforts make a difference to their bottomline… “

The survey also found that 78% of respondents do not use social media to engage Latinos despite the fact that Hispanics are the heaviest users of wireless access through mobile phones and laptops than any other ethnic group. In addition, close to 80% of Latinos engage in some kind of online socializing. Among those companies who do use social media to market to Hispanics, Facebook was the site of choice with Twitter a close second.

“Hispanics are tech savvy, young trend setters with incredible spending power…” Orcí said.

Other key results of the survey include:

  • 89% believe Latinos will somewhat or significantly impact American taste in foods in the next five years
  • 87% believe Latinos will impact fashion and beauty
  • 82% expect Hispanics to impact entertainment
  • 78% believe Hispanics will impact technology/communications

The survey was conducted via email to 9,300 senior marketing and advertising executives of B2B, consumer, small, medium and large Fortune 1000 businesses across the country in February of 2010.

And, according to a recent study by The Nielsen Company released almost simultaneously with the Orci study, America’s demographic profile is undergoing major changes, and describes the potential impact on consumer packaged goods.

The report says that by 2050, more than half of the U.S. population will be non-white (African-American, Asian, Hispanic). This dynamic growth represents not only significant cultural shifts, but also one of the more remarkable marketing opportunities in history. By that 2050 milestone, the economic opportunity for brands in the multicultural CPG space is projected to exceed $500B.

MultiCultural Opportunities in CPG (Billion Dollars)

Today

2020 (+25%)

2050(+74%)

Total

$299

$373

$520

Asian

33.3

47.4

60.0

Black/African American

129.7

158.7

220.1

Hispanic

136.3

166.8

240.1

Source: The Nielsen Company/U.S.Census Projections (w/o inflation), March 2010 (Rounded from charted data)

Key information on the Hispanic portion of the Multicultural CPG Buying Trends from the Nielsen study includes these observations.

When compared to the general population, on average Hispanic Shoppers:

  • Tend to spend more on categories for babies and children. Hispanic households represent 11.8% of CPG total spending, but 16.6% of disposable diaper sales.
  • Tend to spend more in traditional mass merchandise and warehouse clubs.
  • Tend to spend more on food consumed at home.
  • The Hispanic TV audience in the US is growing faster than the TV audience for the total population, showing a continued increase of Hispanic TV homes (2.3%) compared with total US TV homes (0.3%) for the 2009-2010 TV season.
  • The number of people ages 2 and older in Hispanic TV homes will also grow, with estimates showing a 2.4% increase to a total of 44.3 million

The full copy of the survey results is available through Orci News here, and for more about the Neilsen multicultural study, please visit Nielsen here.

Will this Save the Yellow Pages?

A new Logo? Come on now….

This is from Brand Channel:

logo no-no

Yellow Pages Logo Redesign Paradox

Posted by Abe Sauer on March 24, 2010 01:37 PM

Pages, remember those? Paper sheets affixed one after the other, covered with various information organized in even more various ways. Those days are over.

Clearly, the modern age of the iPad and Kindle is not one of pages. So Yellow Pages, the well-known telephone and address directory, is changing its logo to reflect substantial changes within its brand.

The logo redesign conveys the brand’s move from a paper phone book platform to a digital rolodex. Editing out the familiar pages from Yellow Pages’ logo symbolizes a broad and ambitious increase in the Montreal-based brand’s scope and business strategy.

“Our new branding reflects an important shift in the way we are doing business. The message it sends is that [the brand] is multi-platform: we’re online, we’re mobile and we are still the leading and most widely used print directory in the country,” said Yellow Pages president and chief executive, explaining the brand’s move.

Yellow Pages’ widely recognized “walking fingers” will remain, however. Additional alterations include the logo shape, which is changing from a square to something more… iPhone app-like. The new logo will represent Yellow Pages’ multi-platform new business approach, featuring Yellow Pages-branded web production services and apps for smartphones such as the Android, iPhone, and Blackberry. For a brand that anticipates a to earn a full 20 percent of revenues in 2010 from the digital segment, it’s a rational move.

But is Yellow Pages’ effort to modernize the logo actually undermining part of the brand’s valuable and renowned legacy? Indeed, the brand is still named Yellow “Pages,” no?