Improved customer targeting and conversion via analytics, enhanced digital marketing structures and capabilities, greater alignment between marketing and sales, and greater accountability will be the leading strategic mandates for marketing in the year ahead, according to the just-released fourth annual "State of Marketing Report" from the CMO Council. These directives are seen to support overall corporate priorities, which are now shifting from cost control/preserving market share in a troubled economy to growing share, increasing top-line growth and enhancing brands/products as the economy improves. The results are based on responses to a "marketing outlook audit" (46 questions) from more than 600 senior marketers drawn from the Council's 5,000-member global affinity network. Respondents come from every major world region and are representative of most vertical industry sectors and company sizes, according to the Council. Most of those surveyed (nearly 63%) said they report directly to the CEO, president or COO -- a larger proportion than in the past, which in itself speaks to "closer internal alignment" between marketing and top general management, notes CMO Council Executive Director Donovan Neale-May. Another 21% report to a regional VP, general manager or division/business group head. Fully 62% of respondents said they will focus on analyzing customer data to improve segmentation and targeting, 46% on investing in digital demand generation and online relationship-building, and 44% on better qualifying and tracking lead conversion. In addition, 38% reported exploring alternative media and new routes to market. More than a third (35%) said they expect to undertake "transformational" marketing projects this year, 8% said that such projects have been proposed but not yet approved, and 19% said their companies are "considering" such major initiatives. Among the 35% planning transformational projects, the most commonly cited were: "digital marketing makeovers" including platforms, programs and people (46%); sales/marketing organizational alignment (4%); customer data integration/analytics initiatives (32%), marketing performance measurement initiatives (31%) and lead qualification/harvesting systems (28%). Nearly half (47%) of all respondents expect overall marketing budgets/spending to increase (with 20% indicating increases of 1% to 5%, and 4% expecting greater than 20% increases), while 31% expect no budget change in 2010. Spending will be directed primarily toward programs that drive top-line growth, including lead generation/qualification, customer retention and monetization. Corporate branding/identity building rank third among priorities, but new product launches and sales pipeline optimization are also a major focus, as is social media interaction, now ranked sixth among perceived opportunities/business needs. For all of the emphasis on organizational transformation, most executional/operational spending will go toward marketing-specific systems or processes, in areas such as automated or hosted services for email systems (47%), social networking or online community-building platforms (40%), Web site design/development tools (35%), and lead management systems, Web analytics and online surveying/ research capabilities. In fact, planned investments in back-end process improvement, such as overarching platform solutions, are by and large not substantial. Nearly half (47%) report that their companies will spend less than $50,000 on such initiatives this year, 18% project between $100,000 and $500,000, 6% between $500,000 and $1 million, and just 1% over $5 million. Shift to Digital Media: Agencies Threatened? In contrast to 2009, most also expect their media budgets to stay the same or increase -- but those expecting greater than 5% gains indicate that this reflects investment in social media, interactive/ Web marketing, SEO and SEM, and mobile communications. About 44% expect to increase social media spending by up to 5%, and another 27% expect to increase this spending by more than 5%. A continuing shift toward digital representing greater portions of spend is clear: 11% expect to allocate more than 30% of their marketing budgets to digital channels/media/programs, and another 37% will earmark between 10% and 30% for such digital efforts. This -- combined with the fact that most of the overall respondents indicated that the majority of both digital initiatives and customer analytics work will be handled in-house or by specialist firms and outsourced service providers -- could point to trouble for traditional agencies "with limited suites of standardized creative and media services," who are likely to see their budgets and clout with clients decline, notes Neale-May. "As companies seek to establish marketing platforms that better integrate their disparate digital initiatives, and gain more self-sufficiency, visibility and control over accountability, the power is shifting back to the client side, where the data reside," he tells Marketing Daily. "Specialist outsourcing resources, including offshore entities, are eager to assist them in tying these digital marketing pieces together." On the other hand, fully 58% of responding marketers reported having no intention of switching their various types of agencies in the year ahead, and most ranked their agencies as "pretty good" (35%) or "extremely valuable" (18%), versus 7% viewing agencies as "under-performing." Furthermore, based on agency functions, only 8% indicated they are expecting to change advertising agencies, whereas 18% expect to change Web design/development agencies, 14% public relations agencies and 12% interactive marketing agencies. "Advertising, public relations and other agencies that have remained too focused on traditional media or are perceived as offering 'bolt-on' or relatively unsophisticated digital media solutions are those that could increasingly be at risk as companies shift emphasis to digital and seek greater integration and control," sums up Liz Miller, VP, marketing programs and operations for the Council. The full 2010 "State of Marketing" report, sponsored by Deloitte Consulting LLP and Exact Target, can be purchased/downloaded at www.cmocouncil.org. A free, downloadable executive summary is also available.
Buick says it will be one of only six companies to advertise on The Wall Street Journal's new application for Apple's iPad. The ads, touting the LaCrosse sedan, are placed between each section of the digital paper and can be viewed when swiping past certain pages. Users can tap the touchscreen on the ad to learn more about the vehicle. The company is running a rotation of three full-page digital print ads, and an expandable "toaster" unit (which includes a pop-up video). Mobile, print and display advertising were also part of this LaCrosse media buy, per the Detroit automaker. The Wall Street Journal launched the app on April 3. Analysts at firms like Piper Jaffray reportedly pegged the iPad's first weekend sales at around 700,000. "We believe Wall Street Journal readers will be some of the first to purchase the latest technology from Apple," says Craig Bierley, Buick and GMC's director of advertising and sales promotions, in a release. Meanwhile, General Motors says that Buick and GMC led the company's sales gains in March, and that the two divisions posted sales numbers 54% higher than March last year. The company says Buick did the best, with sales up 76% versus the month last year. GMC sales were up 45%. And LaCrosse led Buick, with sales up 236% for the month. GM said year-to-date sales through March of the LaCrosse were up 197%. Separately, Roger McCormack has been tapped as product marketing director for Buick, effective immediately. McCormack had been U.S. vehicle marketing director for Cadillac since November 2008. He replaces Bierley, who was named to his current position last month. McCormack will report to John Schwegman, VP marketing for the division. The moves come as Buick is gearing up to re-introduce the Regal sedan this summer as a midsize sedan.
It looks like parents all over the world are relaxing back into their role as chief amusement officers: Both Hasbro and Mattel say first-quarter sales came in better than expected, and the outlook continues to brighten. "Consumer spending will continue to do well for toys," Gerrick Johnson, an analyst who follows the toy industry for BMO Capital Markets, tells Marketing Daily."Whether times are tough or whether we're moving into a recovery, we still have cautiousness, and that means a lot of moms and dads are continuing to budget. Budgets are good for toys, because parents may cut back in other areas, but they won't scrimp on their kids." Toy makers have also made it easier for parents by introducing toy lines with many different price points, says Jim Silver, editor in chief of timetoplaymag.com. "Take Lego's Star Wars -- there are $99 items, but there are price points at $10, $15, or $49," Silver tells Marketing Daily. " Parents can jump in anywhere. And it also helps that the stock market is improving -- people have more money." Hasbro says its sales climbed 8% to $672.4 million for the first quarter, compared to $621.3 million a year ago (a 5% gain, excluding the impact of currency exchange.) Net income zoomed to $58.9 million, from $19.7 million in the same period a year ago. And while the Pawtucket, R.I.-based company says next quarter's comparisons will be tougher (last year, it had new products related to two movies, "Transformers" and "G.I. Joe"), "we continue to believe we should be able to grow revenues and earnings per share for the full year 2010." Hasbro says sales increased in every major category, including a 3% gain in boys' toys; 16% gain in girls'; 7% gain in games and puzzles, and an 18% jump in preschool toys. El Segundo, Calif.-based Mattel last week said worldwide sales jumped 12% to $880.1 million, as did sales in the U.S. For the quarter, the company reported net income of $24.8 million, compared to last year's first quarter net loss of $51.0 million. By division, the biggest gains came from Hot Wheels, up 9%, American Girl, up 6%, followed by Barbie and Fisher Price, both up 5%. "Barbies had a bit of a makeover in the last 18 months or so, with the Princess line appealing to younger girls, the Fashionistas and Twilight Barbies appealing to older girls," as well as a wide range of updated accessories, Silver says. "Mattel has made Barbie cool again."
Benadryl and the National Park Foundation have teamed up to create a short Web series that pits two families against each other to win an all-expenses paid trip to the national park of their choice. The series, "Race to the Moment," borrows a bit from CBS's television show "The Amazing Race," pitting the two families in a series of head-to-head timed competitions (the team finishing with the shortest times at the end of the series wins). In the first episode, the families -- the McNertneys (a farm family from Iowa) and the O'Briens (a trash-talking clan from the Bronx) -- are asked to scale a 60-foot-tall rock mountain in Joshua Tree National Park. A second competition requires the families to correctly place the names of seven national parks on a U.S. map. Jeff Corwin, host of Discovery Channels' Corwin's Quest, acts as the host of the program, showing the families the challenges and quizzing them after they are over. The show's microsite, racetothemoment.msn.com, houses a national parks finder for users to find their parks nearby for a vacation and a place to post their own favorite spots. The show, produced by Reveille and Microsoft's Branded Entertainment Experiences Team, is part of an ongoing partnership that McNeil Consumer Healthcare (parent company of Benadryl) has struck with the National Park Foundation. "We are proud to continue our partnership with the National Park Foundation and hope to inspire all viewers of 'Race to the Moment' to discover their own outdoor adventures in our national parks," says Angela Li, Benadryl Product Director, in a release. "With a little preparation, no one has to miss out on great outdoor moments because of allergies."
Earthbound Farm is encouraging consumers to embrace sustainability and protect natural resources this Earth Day and all year long. Leading the charge for the San Juan Bautista-Calif.-based company is the superhero Greenman, whose mission is to educate the public about how even small changes in daily routines can help protect the planet. The company is complementing a brand new series of quirky Greenman videos with a reusable bag giveaway, eco-charity donations, and tips from the company's co-founder and cookbook author Myra Goodman. The video series can be found on the company's Web site with links to it on Earthbound Farm social media sites. In the videos, Greenman rescues hapless Sue from disasters such as using non-recycled paper towels and eating non-organic lettuce. Tips from Goodman's upcoming cookbook, The Earthbound Cook: Recipes for Delicious Food and a Healthy Planet can be found on the Web, along with printable tip sheets covering the issues of green cleaning, conserving water, recycling, eating less meat and choosing organic. A short Earthbound Farm Kitchen quiz reinforces the idea that healthier eating and greener kitchen practices can help protect the health of people and the planet and is the gateway to winning a reusable grocery tote (made from recycled bottles). Info on the promotion can be found on the company's Facebook page and Twitter feed. The issues facing our environment can feel daunting, says Goodman, who co-founded Earthbound Farm with her husband Drew 26 years ago. "We love that Greenman takes a comic approach to help teach people of all ages about how decisions they make every day can have powerfully positive impact on the health of this planet," says Goodman in a release. As part of its Earth Day initiative, the company will donate 25¢ from every specially marked package of organic Heirloom Lettuce Leaves sold during April to four eco-charities. Consumers can cast their vote at www.ebfarm.com to decide whether American Forests, the Environmental Working Group, the Natural Resources Defense Council, or the Pesticide Action Network gets the biggest share of the donation. All 5-ounce clamshell packages of Earthbound Farm Organic Mixed Baby Greens are featuring an on-pack instantly redeemable coupon good for $1.00 off any two Earthbound Farm organic produce items.
When J.D. Power and Associates (JDP) acquired Web intelligence firm Umbria in 2008, the Westlake Village, Calif. market research firm was staking a claim in social media. Now, the company is launching its first social-media research product, the Auto Intelligence Monitor (AIM). Finbarr O'Neill, who became the firm's president last year, says the new social-media barometer is evidence of JDP's efforts to become a holistic market research firm: If surveys "ask" and clickstream data "watches," then AIM -- which includes a desktop-based dashboard -- "listens," combining data and insight from social media conversations about automaker brands and models with marketplace retail sales and segment data from the Power Information Network. The Monitor, per the company, covers consumer buzz on things like "green" issues, safety, performance, styling and design, value, features and technology, manufacturer business issues and marketing and communications efforts. O'Neill, one-time head of Hyundai Motor America, draws a big picture for Marketing Daily. Q: How big a change is this for J.D. Power, in terms of what the firm has been doing for years?A: The data is certainly different. It's a very qualitative medium, so it has been a challenge for J.D. Power researchers, who are traditionally quantitative, to understand exactly how you "productize" this. [The Auto Intelligence Monitor] is a good example of how you can do that -- how you can deliver flexibility and understanding about consumer sentiment to the client. Q: How is J.D. Power's product different from competitive social-media research?A: The initial social media products were dashboard products around volume, but without a lot of analytics. The science does take you a certain distance -- the algorithms will pull out data -- but you need people who are good annotators, who are good at writing queries, to capture all of the conversations across the Internet. And at the end of the day, someone has to analyze it. If you're Toyota, for instance, you want to understand what people are saying -- not just that they are talking about you. Actually, we found that there's a lot of positive stuff out there being said about Toyota, by consumers. Q: Is it going to be hard to sell this to auto marketers?A: Our clients are embracing this as another source of understanding the voice of the consumer. We are seeing changes in market research where clients are looking much more broadly for a more holistic view of the consumer. So we have to be able to circle around [a client's consumers], listen to what they are saying, ask them questions, watch what they do, and triangulate around those various sources of information to get a better insight on what they intend. The good news is the auto industry in particular is used to using qualitative data in terms of product design. Companies have done clinics for a long time; they've done ethnographic studies observing peoples' behavior in their day-to-day lives. So this is a little different, but it has tremendous value because it does capture the unprompted voice of the consumer. It's kind of like the ethnographer who goes to live with the family and is listening to everything they do. Here we are listening to what people are saying over their virtual back fence to one another.
Bank of America is lending some unusual advertising/programming help to the cable network History for its massive 12-hour series "America: The Story of Us." The financial services company is not only the presenting sponsor of the series, it will produce -- through a partnership with History -- 12 two-minute, original mini-documentaries about itself. Bank of America's marketing support will also include integrated marketing, including video on-demand programing and online. To reach its more than 58 million customers and 282,000 associates, the company will air series trailers and segments on screens in more than 1,000 Bank of America banking centers. Other ads will appear on BofA's Web sites, which have about 24 million unique monthly visitors. History says the mini-documentaries will showcase the roles Bank of America has played throughout America's history. The bank's historical roots go back to 1784. "We could not have found a more perfect, natural partner," stated Nancy Dubuc, president and general manager, of History. Other corporate underwriters of the series include General Motors, Valspar and Geico. The series will debut April 25, 8 p.m. ET/PT. Starcom USA, Bank of America's media agency of record, helped ink the deal.
Happiness is a hot topic these days. Scholars have recently noted some non-intuitive dynamics as to what makes people happy and, of course, Americans are always in the pursuit of happiness. Marketers rarely, if ever, talk about happiness directly, but in designing digital offerings that promise an "experience" or when focused on building customer relationships, the covert subtext of most advertising should be the creation of the feeling of happiness. Must-Have vs. Want A complication usually arises, though, when advertising creative meets the CMO's meat-grinder that tends to delimit brand into tomorrow's sales numbers. Perhaps one way out of this dilemma is for marketers to note the difference -- emotionally, experientially and cognitively -- between consumers' must-having and wanting. When a person is on the prowl for a specific item they must have -- say, a classic black dress, a box of tampons or their brand of after-shave - the consummation of a "must" produces the feeling of relief. A very different emotional experience derives from something you want but meet up with unexpectedly. This buying situation gives rise to satisfaction. Relief (minimizing loss) and satisfaction (maximizing gain) are experienced differently and are, in fact, represented by different neurological activity patterns. If I like a product and buy it because its attributes meet my interests, I can be relieved to have it. If I feel a product reflects my identity and expands its latent expressions of self, a certain relationship develops with that product. It is that relationship that makes me happy. People feel happy not when a product or a store demonstrates an understanding of the consumer as a purchasing process, but when it authentically displays it understands who the consumer is as a person. Understanding of a person as an identity is different than explaining them as a consumer. At best, the former generates "liking" while the latter establishes "attachment." I can like a transaction but I am happiest in a relationship.