With consumer confidence dropping and distrust of banking and other financial institutions growing, regional banking chain SunTrust is looking to instill confidence in consumers with new positioning and a new tagline. The new line, "Live Solid. Bank Solid," is intended to reflect Americans' move away from conspicuous consumption to a more thoughtful approach to money and finances. "When we started developing the brand positing, the attributes that SunTrust had had a lot to do with heritage and continuity and solidity," Denise Johnson, senior vice president of marketing communications for SunTrust, tells Marketing Daily. "As the economy started having problems, those attributes were reflected back at us even more." An introductory television spot in the campaign begins with shots of conspicuous consumers, shopping lavishly for themselves and their pets. (One shot shows many shoes strewn across a bedroom floor.) "Remember the Joneses? And all their stuff? And how people were always trying to keep up? Well, some of us woke up instead," says a voiceover. As the visuals switch to shots of children playing and focused business owners, the voiceover changes. "We no longer want big and flashy. We want real, true and honest," it says. "We want a bank that will help us prosper, whatever our definitions of 'prosper' may be." The campaign launched on Sunday with television spots airing during regional breaks on NBC's "Sunday Night Football" coverage. The media buy will also include prime-time TV, radio, print and Internet. According to company research, nearly 80% of consumers would rather be envied for spending wisely than spending freely. A similar number of consumers said that having money will not make you happier, but having control of the money you do have will increase happiness, according to the research. "What we were seeing in the research was--there's a tremendous move right now for people to get their financial houses in order," Johnson says. "While people had always looked for ease and convenience, the 'new want' is 'are you a place where I can keep my money?'" The campaign is the first from SunTrust's new agency, Mullen, which won the account after a review in October. SunTrust's previous tagline was "Seeing beyond money." The new attitude toward protecting money necessitated the change, Johnson says. "In this environment, customers started to say, 'I don't want you to see beyond money. I want you to see my money.'"
Predictions about the ways the new economic realities are creating a new consumer mindset abound. New York-based brand firm Toniq predicts that social activism will return in a big way. "Causism will replace consumerism as people of all ages, genders and backgrounds think about their place in the world--their purpose, contribution, personal legacy," says the firm. Toniq predicts that cause marketing will evolve from niche and promotional status to a more central place in brand communications. "And," it says, "while cause marketing has been primarily female-focused, it will evolve to everyone else." Examples: the Starbucks Affinity Card, the Red campaign, and Lance Armstrong's Live Strong program. The firm also sees fantasy as a growth industry expanding from kids to consumers of all ages. Toniq cites Disney's bringing in high-end paparazzo Annie Liebowitz for a photo campaign for adults. Among other trends, the firm says, design and art will finally get some respect, with MFAs becoming more important than MBAs. Le Meridien hotel chain, says the firm, is repositioning itself as a lifestyle brand with a focus on art and design, with each hotel having a "cultural concierge." Toniq sees authenticity as a valuable asset. "It intersects several aspects of the culture--from the local-food movement to human craftsmanship and 'real guyness' and heritage brands," says the firm. Think Coca-Cola Designer Series, Burberry; Levi's/Damien Hirst; and Gillette. Mintel says seven flavors and three scents will make it big in 2009, moving beyond their core markets or countries of origin. Among them, persimmon, which will find its position as a blend with more common fruits; starfruit, a staple in southeast Asia; lavender; Latin American flavors cactus and chimichurri; peri-peri, an African hot sauce already made popular by Nando's restaurants in the UK; and masala, an extension of the curry trend from several years ago. The firm notes that Lay's has already launched India's Magic Masala Crisps, but Mintel expects the flavor to become popular globally next year. Among scents: "Spicy and woody" going from men's fragrances to home in 2009, and savory, tied to festive meals and salty snacks. Mintel expects that tomorrow's scents will closely follow new flavor trends. From spicy, hot tastes to fruity, exotic ingredients, 2009 could see many innovative new aromas for home and personal care products.
While multicultural marketing (MCM) is more important and widespread than ever, the effectiveness of such efforts continues to be hampered by inadequacies in several areas: budgets, internal and top-management support, best practices and metrics, according to a new study from the Association of National Advertisers (ANA). Conducted in partnership with marketing services firm 'mktg,' the 2008 MCM survey is ANA's third (earlier ones were conducted in 2002 and 2003). Seventy-four marketers from ANA member companies responded to this August's survey. The results confirmed that MCM continues to grow across all business categories as a strategic platform for driving brand and business performance. Fully 77% of respondents reported having MCM initiatives, and 66% said that such efforts have increased during the past few years. Nearly all (95%) report that their firms have programs that specifically address Hispanic-Americans, three-quarters (76%) have programs addressing African-Americans, and 38% have programs addressing Asian-Americans. (Those numbers compare with 80%, 60% and 35%, respectively, five years ago. However, the last study surveyed primarily senior marketing executives, while the current one included only respondents actually involved in day-to-day implementation of MCM programs, according to ANA.) Nearly one-quarter (24%) of this survey's respondents reported having programs geared to gay, lesbian, bisexual, and transgender consumers (no previous data on this question). However, just 45% indicated satisfaction with the results of MCM initiatives, and 26% said that they are somewhat or very dissatisfied with the results. Several key obstacles were cited. For starters, only 22% feel that their firms have a high degree of knowledge and disciplined best practices in the MCM arena. An inability to integrate MCM programs consistently into the overall marketing mix is one key challenge in this regard. Strategic approaches appear to reflect this struggle. While more than half (57%) of respondents defined MCM as "narrowcasting"--meaning separate messaging for distinct market segments and communicating via media that reach multicultural consumers--more than 20% are using seemingly less sophisticated approaches. Specifically, 11% report using a "mainstreaming" strategy (repurposing general advertising approaches to appeal to MCM segments) and 10% simply translate general marketing materials for media catering to multicultural audiences. Other key challenges: 58% reported lack of adequate funding for MCM programs, 45% cited insufficient internal support, 45% said relevant metrics to gauge performance are lacking, and 34% noted inconsistent top-management support. Only one in four firms analyze ROI, and other metrics employed vary widely. Brand-tracking studies (55%) and sales growth/volume (54%) are used most often. Other measures include market share (41%), advertising research (38%) and brand equity measures (38%). Similarly, when it comes to execution, 55% said they prefer a multicultural-specific agency for creative development--and based on satisfaction scores, using a specialized agency is considered a "best practice." Nevertheless, one-quarter of firms use their general agency of record for MCM programs. In short, while marketers recognize that multicultural consumers comprise two-thirds of the millennial population and that targeted marketing has become more critical than ever because globalization has lessened pressure for acculturation, the survey "suggests that marketers have yet to establish standardized best practices," comments Frank Dudley, CMO of 'mkting.' "There is substantial upside opportunity to be tapped with the right investment strategies and well-structured, integrated marketing and accountability programs," stressed ANA president/CEO Bob Liodice. In regard to media for MCM, print continues to be the most used (65%), followed by TV (61%), sponsorships and public relations (each 54%), targeted radio (53%), and in-store marketing and events (each 51%). Online advertising placed lowest (49%). However, online use has seen the most significant growth as a medium since past surveys, reports Liodice. He also notes that online use appears to vary considerably by multicultural segment, reflecting both different audience usage patterns and the number of available Web sites and other online channels geared to specific cultural groups.
Mercedes-Benz USA wants an invited group of Gen Y netizens to open up about the brand. So it is running a social networking marketing program called Generation-Benz, intended to bring younger consumers into the brand while giving Mercedes insights about the 20-somethings. The site, at www.GenerationBenz.com, via L.A.-based firm Passenger, is an invitation-only forum by which the company will mine the Gen-Y attitudes, lifestyle and brand preferences. The company says that with the new program it hopes to get a new group of consumers into the brand and shape the brand for the future. Said Stephen Cannon, Mercedes-Benz U.S.A.'s VP/Marketing, in a release: "When our customers join the brand, they tend to stay. Our Generation-Benz community is a natural extension of our desire to broaden the Mercedes-Benz family, and establish a dialogue with future buyers to guide us with the design of our vehicles and direction of our brand." The company wants feedback and perspectives on vehicles, brand positioning and sociocultural trends. The netizens will preview advertising and marketing campaigns, and engage in real-time discussions. Mercedes-Benz is the second automaker to conceive and execute such a program. Ex-sibling Chrysler this March launched a similar program, also via Passenger. Chrysler's Customer Advisory Board comprised some 2,000 consumers. Justin Cooper, co-founder, chief marketing and innovation officer at Passenger, says the scope is similar for all of the firm's clients. "With Mercedes, it's how they apply it." He says that the majority members of Mercedes' site are actually non-owners of Mercedes-Benz vehicles. Cooper says that the firm has signed another automaker to create a similar program.
Lexus is sponsoring today's launch of what might be called a digital optimist's club. The new Web program, "Good News," is by "Good," a new multi-platform media company purportedly for people who want to live well and do good deeds. The Web program, at www.Good.is/news, includes a daily 90-second video episode focused on world events, business, arts, culture and science with an upbeat mien. Ian Chillag, former producer of NPR's "Fresh Air with Terry Gross," will be the Webcast's managing editor. The central figure in the Webcast is an animated news anchor--a blue, bespectacled figure who reads the news and interviews real people. Lexus will have its brand and vehicles showcased in Lexus news vignettes, and the brand will sponsor Good's editorial and forthcoming "State of the Planet" issue, which asks readers to submit nominations of people doing good in their communities. Steve Jett, Lexus' National Marketing Communications Manager, says the division will use the partnership to showcase the Lexus hybrid lineup: LS 600h L, GS 450h and RX 450h. He says Lexus is running 15-second pre-roll video on the Web site before the "Good News" episodes. "The in-video branding will ensure Lexus does not lose presence on the videos that are viewed outside of the Good Web site, such as You Tube, MSN, or Yahoo," he says. The "Good News" content will also be on MySpace and as a podcast on iTunes. Jett says that Lexus will also run traditional online banners on "Good News" as well as print ads in the January/February, March/April, May/June, and September/October issues of Good magazine. "We thought they would be an ideal partner for our hybrid message. We also feel readers of "Good" share a passion for discovering products and technology that allow them to maintain their lifestyle without sacrificing luxury or style--much like our hybrid owners."
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Marketing vs. finance: it's right up there with the Yankees vs. the Red Sox, Democrats vs. Republicans and Mac vs. PC. For years, the two groups have been at loggerheads, and the reasons have now become calcified. It almost becomes part of the training for finance rookies: "Don't trust the marketing numbers." Among the key challenges are language barriers, accounting disagreements, cultural clashes and even how to define marketing return on investment (ROI). For instance, only 48% of respondents to the 2008 marketing accountability study from the Association of National Advertisers and Marketing Management Analytics said they had "some cooperation" between marketing and finance. It doesn't have to be this way. In fact, many Fortune 500 companies have begun to officiate over a marriage of sorts between the two disciplines; others are beginning to build a bridge across the chasm. We herewith offer the Top 5 problems from finance's perspective, and solutions for bringing about an atmosphere of cooperation and mutually beneficial partnership. Reason #1: Finance thinks marketers spend like drunken sailors. Finance believes marketing is the last outpost of unmeasured, unfettered spending, while every other department shows them hard ROI. Most, when pressed, will admit that marketing is important and may pay back, but it is a vague impression. Not surprisingly, then, executives look to cut marketing spend first due to its size and perceived lack of ROI. In a joint 2008 study by MMA and Financial Executives International (FEI), 60% of senior financial executives surveyed said they did not believe marketing forecasts used for budget input were audit-ready; only 35.4% believed that marketing adequately understood financial controls. Solution: Spend on marketing, but measure it and be completely transparent. Institute an accountability program that accurately measures how marketing contributes to company success: gaining efficiencies, generating cost savings, driving sales. Reason #2: Finance asks for ROI; marketers give them "brand value" and "unaided awareness." If you're in marketing management, count yourself lucky if you're only hearing these complaints from finance, because many marketers are feeling the heat from the boardroom. While you will get few arguments about the critical importance of brand health and consumer perception, nothing drives finance to distraction quicker than fuzzy measures of investment return. Solution: Use tools to put a dollar amount on the impact of brand investments; provide research on the market value of brand equity. Numerous studies have demonstrated the correlation between brand equity and a company's marketplace value. These studies document how brand value contributes to various financial factors (ability to sustain higher margins, lower new product introduction costs, making cash flows more predictable). However, unless it's given in dollars, few finance teams will put much faith in it. The good news: Tools exist to put a dollar value on an increase in brand equity. Reason #3: The way marketing buys media is a mess, and can never be unwound. Solution: Educate finance on how marketing is executed, and they will make the numbers reflect it. Whether it's helping them understand upfront and scatter, accounting for a makegood, or doing a media audit, finance teams that understand how the process works can keep the books in order. The auditors at an industrial manufacturer told marketing they would not sign off on their books unless they changed how they bought media. The marketing team stood its ground and got the auditors on board through a long series of sessions that walked them through media-buying processes. Reason #4: Marketing's spend forecasts are never right. Large mistakes in forecasting are common. And this cuts both ways: Executives look at overspending as being irresponsible, while under-spending means marketing left sales on the table. Solution: Invest the time and effort to get your spending forecasts right. It's challenging, but it can be done. This solution is largely in marketing's court. I worked with the advertising team at a top U.S. retailer that had consistently missed forecasts, sometimes by 5%+ of the annual budget. Tired of constantly explaining the various reasons for the miss, they set a goal to fall short by less than 1%. Although it took weekly finance reviews and putting a layer of approvals in place, the next year they were within 0.25% of their forecast, and have hit their target every year since. Reason #5: Even when marketing does give us ROI, the numbers are hard to believe. Common complaints: "They don't even include fixed costs of marketing" or "They use gross margin instead of profit margin" or "Their ROI measurement is complete voodoo." Solution: Get finance involved, and they'll be your biggest advocate by vouching for your numbers. Having a finance representative who is active on the marketing accountability team is crucial to the success of the program. Also key: get on the same page with finance in terms of accountability metrics. One major fashion retailer has even empowered a "Chief Translation Officer" to serve as a liaison between marketing and finance.