Maybe the purchase funnel exists with beer, dental floss, toothpaste and a bottle of floor cleaner, where the conversation ends at purchase. But arguably, the more expensive and complex the item, the truer it is that the real paradigm is maybe something like a Klein bottle because social media has made the consumer awareness-to-purchase process a continuum: one consumer's auto purchase begins another consumer’s consideration. The first thing you and I are going to do after we roll off the lot is begin broadcasting our opinions. A new study by media agency Starcom MediaVest led by Big Fuel and executed by New York-based social media market research firm Mashwork finds that people in the U.S. talk about their auto purchases on average 30,000 times per day, 1,250 times per hour and 21 times per minute on social media, and that Twitter alone generates 184 million potential impressions per day. The firms say that 19% of total conversation is from people extolling the virtues of -- or perhaps denigrating and kicking themselves for buying -- a given vehicle. The study says that when declaring car purchases, new owners are 2.4 times more likely to attach a photo of their new car to add visual appeal to the excitement than to check-in or self-identify as being at a dealership. The firms suggest social direct marketing is important during the “declaration of purchase” phase, because automakers can connect with other potential buyers and offer relevant added-value benefits and "amplify the joy generated by the purchase." Surprisingly, “post-purchase satisfaction” conversation occurs three times more often than “post-purchase dissatisfaction” conversation. But dissatisfaction conversation tends to be more passionate. The study says continuing the relationship and “post-purchase satisfaction” conversations with buyers can keep loyalty strong by leading consumers through to their next purchase. "The balance of emotional statements suggests the relationship gets stronger and can be optimized via extended conversation and relationship marketing." In addition to new ways of delivering messages and digital "brand experiences," notes the firm, marketers also need to brand ambassadors or customer service representatives whose job it is to watch and respond to post-purchase dissatisfaction. "Social data, including listening and measurement, should be used to amplify the impact of all marketing activity," say the study authors.
So much for hordes of on-the-go shoppers powering mobile sales: Research from Kantar Retail reports that smartphone owners are more likely to use their devices at home or at work, not while traveling or in stores. But that’s just one way that retailers continue to misunderstand digital and mobile’s growing influence on sales, says Anne Zybowski, VP/retail insights, who leads Kantar digital research and insights. “Digital’s impact on retail sales is fully 100%,” she says. “But it’s a mistake to look at online sales as a measure. We think it is more like 10:50:100, with digital accounting for 10% of sales, 50% of influence, and 100% impact.” She fills Marketing Daily in on the distance that brick-and-mortar stores need to go to catch up with their digital footprints. Q: What’s the benefit of using a formula like 10:50:100%?A: We arrived at that using multiple data sources. In part, it was as a result of the frustration people were having internally at retailers, not getting support for digital, which can mean either marketing or commerce platforms. People are not always sure what piece they are looking at. Right now, we’re getting close to 10% of all sales happening online; we’re at about 8.3% now. But that misses the broader picture, especially when you look at consumables. Today, those purchases online are low, but they are set to explode. Yet even if consumers are not buying your product online, their digital experience is influencing all their behaviors. Q: But not in ways that stores expect?A: Right. Like they worry about showrooming -- people researching purchases in-store, than buying them online. The reverse is much more common. Q: What about mobile? This was supposed to be the holiday when m-commerce came into its own. Did that happen?A: In some ways, especially for some types of retailers, including flash-sale sites like Rue LaLa. But shoppers aren’t necessarily using their phones in the ways stores predict. Our ShopperScape research, for example, found that 40% of smartphone owners are using them for shopping-related activities from the comfort of their own homes, and 21% made a purchase there. We’re lazy -- we’re reaching for the device that’s closest to us. By comparison, just 27% used them in stores, while only 7% made a purchase by phone. Q: Where are retailers missing the boat on channel integration?A: In some ways, it’s like retailers are going through the five stages of grief with digital. This time last year, there was lots of anger. Now, they are getting around to acceptance. They are making sure there is available Wi-Fi in stores, for instance. And Best Buy and Target have everyday, year-round price matching. But there are still gaps. They often think in terms of multichannel. Consumers are omnichannel. And there’s a big difference. Q: Who do you think is doing it best?A: Nordstrom is really exceptional in understanding how to use digital to solve business problems. If you’re buying a pair of $400 shoes, and there is an associate with a tablet who can assure you they aren’t available for less on Zappos, that solves a problem. That’s connecting channels.
The Boston Beer Co. has spent two years doing sensory research that will culminate in the launch of the “Sam Can” in summer 2013, featuring Samuel Adams Boston Lager. No pictures were available yet of the can, which “aims to provide a drinking experience that is closer to the taste and comfort of drinking beer from a glass,” according to the Boston-based brewing company. "The debate over bottles vs. cans has been a sticking point for brewers in the craft beer community for years," says Jim Koch, founder and brewer of Samuel Adams, in a release. "In the past, I had my doubts about putting Sam Adams in a can because I wasn't convinced that Boston Lager would taste as good as it does from a bottle. But cans have changed. And I believe we've designed a can that provides a slight but noticeably better drinking experience than the standard beer can." Koch and the other brewers at Samuel Adams first worked with can manufacturer Ball Corp. to understand can design, technology, and how to package premium beer in cans. The brewers then worked with a design team at IDEO, a recognized global design firm, and finally enlisted the help of sensory expert Roy Desrochers of GEI Consultants. Desrochers, a recognized beer flavor expert for the Master Brewer's Association of the Americas (MBAA), has provided counsel to the brewing industry for almost three decades. With Desrochers' help, Sam Adams studied every aspect of the new can, from how it could potentially impact the flavor of Samuel Adams' flagship Boston Lager to the ergonomics of how the beer flows from the can and hits the taste receptors on a drinker's tongue. "The flared lip and wider top of the new Sam Can work in concert to deliver the beer in a way that makes the flavor closer to drinking out of a glass,” Desrochers says. “Although subtle, this can delivers a more pronounced, more balanced flavor experience -- something that was very important to the brewers. The extended lip of the can also creates a smoother, more comfortable overall drinking experience." The difference in drinking out of the new can as compared to a standard can will be modest, but drinkers should notice enhanced flavors and a more comfortable experience. The position of the can opening and wider lid naturally opens up the mouth, allowing for more air flow, and positions the drinker's nose closer to the hop aromas of the beer. The new Sam Can required a million-dollar investment in special equipment tooling along with time, research and testing, Koch says. This new can will also cost more than the standard can to produce. “It may seem a little crazy to make that kind of investment, but we felt the slight improvement in the drinking experience was worth the expense,” he says. Among the advantages of cans is that drinkers prefer cans in certain circumstances where bottles are often not allowed or convenient, such as beaches, parks, pools, sporting events, boats and airplanes.
Health and wellness continue to be the paramount strategic drivers for food manufacturers and food service operators, and offering foods that are consistent with the nutritional guidelines in the federal Dietary Guidelines for Americans has become a particularly key strategy in winning over consumers, according to a new report from market researcher/publisher Packaged Facts. “Offering products in accord with the goals set forth in the Dietary Guidelines provides processed food manufacturers with clout to stand their ground on the nutritional value of many of the processed foods and beverages they sell, and to do so in the context of concepts, verbiage and graphics that consumers have been exposed to and about which they already possess a level of awareness,” says Packaged Facts research director David Sprinkle. The report, “Food Formulation and Ingredient Trends: Health & Wellness,” examines formulations and ingredients in the context of five key health and wellness trends: * Better breakfasts: The researchers expect more introductions of products that combine whole grains and low-fat dairy, spanning a wide range of product designs. In particular, whole grain blends will be used in more value-added products to deliver benefits associated with hunger satisfaction, sustained energy, weight management and digestive health. The trend toward development of higher-fiber breakfast executions of popular indulgent snacks and desserts (such as cookies and pie) and flavors (such as chocolate) will continue, along with new product designs and formats that inherently deliver more fiber, such as oat smoothies. * Sweeteners: Use of natural sweeteners and those with “healthier halos,” both caloric and zero-calorie, for partial or full replacement of traditional counterparts will continue to grow. Depending on functional application requirements and cost, Packaged Facts anticipates more switching overall, including from high fructose corn syrup (HFCS) to sugar, from sugar to honey, from agave to coconut sugar and from aspartame or sucralose to stevia or monk fruit. Anti-fructose sentiment may grow stronger in 2013, due to concerns over agave’s potential role in insulin resistance as a precursor to diabetes and inflammation. HFCS will continue to struggle in 2013. * Salt/sodium: Because there is no one-size-fits-all when it comes to sodium reduction, some of the most promising approaches to watch for in 2013 include restructuring salt crystals to maximize surface area and salty taste perception for both sodium chloride (common table salt) and potassium chloride (the well-established salt replacer). Other likely approaches include identifying and using umami ingredients to enhance overall flavor, and longer-term identification of molecules and ingredients to mimic salt taste. * Healthier snacking: Given that 20% of all meal occasions are snacks, accounting for 25% of all calories consumed, more healthful snacking will continue to be a major focus area for many -- if not most -- food companies and food service operators in 2013. Portion controlled, single-serve snacks of all types will be more popular than ever. In addition, products associated with fruits, vegetables, cheeses, nuts (especially almonds) will show broadened appeal. Popcorn -- particularly ready-to-eat, air-popped versions -- could benefit substantially from recent research showing that popcorn is a better source of antioxidants than either fruits or vegetables, according to Packaged Facts. Also, the popularity of air-popped, whole-grain popcorn will likely spur interest in other popped whole grains such as sorghum. * Alternative proteins: High-protein ancient grains, including amaranth and quinoa, will be incorporated in more foods promoted and consumed for their protein content, including entrée soups and salads, as veggie burgers and as seasoned dry-blend mixes for use as center-of-the-plate items or side dishes. Their use in baby food should also increase, since they are not associated with food allergies and are easily digested. These grains will also be used to boost the nutrient density of breads. Use of more seeds and nuts, especially ground into interesting, high-protein spreads, is also expected to show broadened appeal. Beans and lentils, already experiencing increased use in ethnic foods and vegetable chips, will be more widely adopted as alternatives to meat protein across a wide range of applications.
Goodyear raced into Daytona Beach, Fla., last weekend for the Daytona 500, where it launched a marketing campaign kicking off a new five-year partnership with NASCAR. The Akron, Ohio-based tire giant, which last year concluded a five-year Official Tire deal with the organization, had new ads on the Fox broadcast of the race, experiential elements on the ground at Daytona International Speedway, its iconic blimp in the air, and its race-ready tires on all the cars. Goodyear's campaign -- via Austin, Texas-based GSD&M Idea City and Boston-based Digitas -- makes the demands of NASCAR’s bruising race environment a halo for the tire brand by exploiting the fact that all NASCAR race cars have to be shoed in Goodyear tires, as part of the partnership. The creative, with a "Battle Tested, Road Ready" theme, weaves high-octane race footage (with ample shots of Goodyear tires on zooming cars) with that of Goodyear engineers and craftsmen building, testing, and honing NASCAR-spec race tires. The basic message is that what Goodyear makes for racers inspires what it makes for consumers. Goodyear will also have brand visibility all over the venue and during the broadcast with things like animated Goodyear blimps on-screen carrying a “More Driven” message. Print will be in racing pubs and properties like ESPN Magazine, USA Today and Sports Illustrated. Its relationship with the organization also gives Goodyear pole position in NASCAR's Sprint Cup Series, the Nationwide Truck Series and Camping World Truck Series. The company will use those races to tout its Assurance, Eagle and Wrangler tire brands, per Gary Melliere, Goodyear's general manager of brand and sponsorships. Melliere tells Marketing Daily that the partnership is a bonanza for the company because NASCAR is the second-most-popular sport in the U.S. (it has about 75 million fans), and because there is a strong consumer correlation between NASCAR and Goodyear. The Daytona 500 broadcast itself gets about 20 million tune-ins, notes the company. "People are only in market for a short time for tires, so perception is very important," he says, adding that a third of Goodyear buyers are also NASCAR fans, and that those consumers not only have high brand loyalty but also tend to be strong brand advocates. "We want to make sure consumers understand the critical role that tires play in races, and what our tires are subjected to," he says, adding that the bottom line is being top of mind at retail. "We want them to think Goodyear first." On the ground, Goodyear will have product displays on race midways, including a "torture test" that demonstrates what a tire goes through during a race and how that informs the consumer product development, and a gigantic version of Plinko, where a Goodyear racing tire is the chip. And of course, the Goodyear Blimp will be overhead. "The blimp is a great branding tool,” says Melliere. “We actually own it [rather than renting it], it's always in huge media markets like Los Angeles, Miami, New York and Atlanta and big events like the London Olympics. There isn't a better brand icon. It's there to help us sell tires, because it creates an emotional connection with the brand."
No longer simply “the boob tube,” the notion of a smart TV is catching on with consumers. According to IHS Screen Digest, more than a quarter of all televisions shipped in 2012 had so-called "smart" Internet connectivity capabilities, and the organization projects they will account for more than half of all shipments by 2015. In total, 66 million smart TVs shipped in 2012 (up 27% from the 52 million that shipped in 2011). By 2015, that number will reach 141 million units, and account for 55% of the market. Only a year after that, smart TVs will account for two-thirds of the total units shipped globally. “Consumers are now increasingly buying big-screen TVs that include the Internet capabilities, even if they’re specifically looking for [those capabilities] or not,” Veronica Thayer, TV systems analyst at IHS, tells Marketing Daily. While many television manufacturers are working on developing their own identifiable user interfaces for their smart TVs, the big growth could come from manufacturers striking partnerships with cable and satellite television providers, Thayer says. Currently, many of the television providers only exist on smart TV platforms via apps, but a partnership with television manufacturers would give these companies a greater presence on the device’s user interface once it is set up in the home. Such partnerships are beginning to emerge in European markets, and it’s only a matter of time before they come to the U.S., Thayer says. For the television makers, these partnerships will help them differentiate their products from the competition, while they offer a way for cable and satellite providers to reduce costs and have greater presence among home entertainment options, according to Thayer. "The inclusion of pay TV services in smart TVs is going to increase [adoption] even further," Thayer says. "Services that use an app within the smart TV are going to help the sales of smart TVs. But there is also a movement toward having the device’s user interface recognize your pay TV subscription."
Greenies dental chews is joining with Banfield Pet Hospital in cooperation with PetSmart to promote pet oral health. Participating PetSmart stores will host Pet Dental Checkup Days March 2 and 3 from 2 to 4 p.m. Banfield Pet Hospital veterinary technicians and Greenies representatives will facilitate free in-store oral health assessments for dogs and cats at participating PetSmart stores that have a Banfield Pet Hospital. Pet parents will also receive product offers and educational take-home tools to help them provide good pet oral health care. Dental disease continues to be the most common health condition affecting dogs and cats in the United States. However, it's easier than many pet parents may think to recognize and prevent oral health issues in their pets, according to the companies. The Pet Dental Checkup Days event will help pet parents better understand the significance of good pet oral health. Along with the free dental assessment, the event will emphasize the importance of regular professional oral care by a veterinarian and at-home preventive care through daily tooth brushing or proven efficacious products like Greenies dental chews and treats. "The Pet Dental Checkup Days event offers pet parents the expertise of dedicated veterinary professionals from Banfield Pet Hospital, supported by the leading dental treat brand and pet specialty store, to collectively educate pet parents on their pets' oral care and how essential it is to the overall health of pets," said Monica Barrett, senior corporate affairs manager for The Nutro Company, which owns Greenies. "Brushing Dog's Teeth photo from Shutterstock"
Don’t worry,” I said to my wife on September 11, 2001, “the number of people willing to blow themselves up in service of Allah is extremely limited.” Also, I said the 2012 Philadelphia Eagles would win 13 games. Also, I said O.J. was guilty. (half credit) The point is, even the most careful and perspicacious pundit will occasionally make mistakes. The trick is not always being right; the trick is not being wrong out loud. In that respect I have been extremely fortunate. I have a genius for being arrogant, obtuse and colossally incorrect, mainly in the privacy of my own home. Dodging all those bullets over time, however, leaves a fellow with a bit of survivors’ guilt. Why should I be spared the humiliation of having my dead certainty thrown back in my face when poor George Will has been making a fool of himself week after week for decades? Uncanny luck leads to hubris, and we can’t have that. Therefore, I feel obliged to call the world’s attention to some news out of Forbes magazine: It’s doing well. Very well. That’s remarkable for two reasons; 1) The magazine industry in general is circling the drain. In 2009, BusinessWeek was sold to Bloomberg for loose change. In January, Newsweek went online only -- on the way to going to a farm to play with U.S. News. In the past decade, Time has laid off more than 70 million editorial staffers. Play is gone. Domino is gone. Gourmet is gone. Vibe is gone. Metropolitan Home is gone. Spin is gone. 2) I was sure Forbes would fail. No, I never publicly denounced Forbes Media as quixotic and self-deluding when two-and-a-half years ago it adopted its hybrid editorial platform, combining bona fide journalists and a large pool of experts to produce the content on Forbes.com. But that’s what I was thinking. Although I somehow didn’t devote a column or broadcast to the manifest ludicrousness of the effort, it was obvious to me that the non-writer contributors would turn out unreadable, self-serving gobbledygook devoted mainly to “leveraging ROI going forward.” And for those who can construct a coherent essay with a beginning and middle and an end, who among them wants to be just one of 1000 other commentators? Duh. The concept was obviously preposterous. And that made me sad, because Forbes has a magnificent legacy of bright writing and a definable point of view. How pitiful to see it try to hold onto life by channeling the Huffington Post. It was sure to be an embarrassing spectacle. Except that it hasn’t turned out that way. Since adopting the new model, Forbes has seen a 67% increase in unique monthly visitors. In January, according to comScore, it attracted 16 million uniques -- up 26% year-to-year. Measured by trailing 12 months, digital ad revenue is up 18% since the relaunch and in 2012 Forbes had its biggest digital growth since 2006. Now, obviously, these are carefully chosen results -- no doubt the result of some fancy cherry-picking. But never mind that. Here are the words that matter: “Up” and “increase” and “growth.” Oh -- and according to Chief Revenue Officer Meredith Levien: “The company is profitable, nicely profitable and has been increasingly profitable for the past 3 years.” A profitable magazine with a growing audience. A growing, engaged audience. If you click on Forbes.com, you’ll see a (nearly) real-time meter of all news posts, the tally of comments and the tally of shares. The “shares” is a big number -- because, as it turns out, readers care about more than elegant prose and artfully constructed narratives. “The thought that those who can inform are only journalists is kind of narrow, bordering on…whatever,” says Lewis D’Vorkin, chief product officer. Permit me to translate: “whatever” means “arrogant, obtuse and colossally incorrect.” In a brief conversation, D’Vorkin did not trouble himself to feign patience for the conclusions I formerly concluded. “You have your standards, and the audience has its standards,” he accurately observed. “There are different measures of quality in print and digital. The quality standards in digital are timeliness, relevance, knowledge , expertise, context. Notice I didn’t say ‘a perfectly written story.’ Whether the first paragraph should be the fifth…is important to a generation that you and I came from in this business, but not necessarily to a reader online looking for information.” I maintain, in public and on the record, that the old days were better. Forbes readers were well served by skeptical, inquisitive journalists at arm’s length from the subject and trained to spin it out with lucidity and drama. The mass media/mass advertising symbiosis, God bless it, underwrote a fantastic 300 years of reporting. Alas, the media economy no longer supports that editorial model -- at least not to the scale it once did. No doubt cobblers made better shoes before the Industrial Revolution than factories did afterwards, but whining didn’t get the cobblerati anywhere. And, by the way, shoes got plentiful and affordable. So not only isn’t there anything immutable about any given business model, the change brought on by revolution giveth even as it taketh away. In the case of Forbes, it giveth hundreds of voices -- who hitherto had no access to an audience -- cultivating significant followings and in some cases making some decent coin. Compensated chiefly for return traffic, some contributors are, in their spare time, hovering in the vicinity of six figures, D’Vorkin says. “This is important,” he concludes. “This is an effort to build a sustainable model for journalism, because journalism is important. And it’s important that it survives.” There’s one other detail one might characterize as important. Forbes magazine itself -- that thing they print on paper -- seems to be seeing growth both in ad pages and newsstand sales. That’s a fact that rocks my world, as miracles are wont to do. So, what the hell -- let me further go on the record: The 2013 Philadelphia Eagles will win 13 games. No, 14 games. Fifteen. Whatever.
For over a decade, marketers have been adapting to a new era where the customer is in charge, touchpoints proliferate daily, and the demands for “integration” and “engagement” increase every day. These fundamental shifts make marketing ever more complex and the rate of change ever faster. The winners in this new world recognize that success means more than new strategies and skills; it means a whole new way of working. Not just for marketers, but for organizations as a whole. The operational architecture must change. According to the CMO Council's “State of Marketing 2012” report, “organizational culture and senior management mindset both were highlighted as key sources of aggravation for marketers” and 30 percent of those surveyed indicate that internal dynamics can be a key source of friction within their organizations. These types of organizational issues don’t just resolve themselves, and ultimately impact marketers' bottom line and ability to achieve profitable growth. From globally recognized brands to startup organizations, many of the problems that keep marketers up at night boil down to gaps in operational structure. As a marketer, how can you strive to walk the talk, ensure that belief aligns with reality for both management and staff, and make the best choices when it comes to people, processes and platforms? Here are four ways to rethink your blueprint. Take a design approach Form follows function. What is the experience you need to create? What goes into that experience? How can you bring those things together? The answer is much larger than a traditional functional view. Focus on capabilities You need skills, infrastructure, operations, and tools to create experiences. What are they? Who has them? What capabilities do you need to build? A clear-eyed view of your capabilities helps bring the right internal and agency relationships into alignment. Decide who decides Step away from the organizational chart and think about how you share information. Think about your incentives. Above all, think what has to be decided and who makes the decisions. How those things come together has a greater impact on your results than who reports to whom. There is a time and place for technology Technology is not a cure for ambiguity. Automation will not solve for weak operational design. Data and analysis are the foundation of any infrastructure and the arena where technology matters most. Marketing will continue to become more distributed, more collaborative, and more technology-driven. CMOs will need agile and adaptable operational architectures to make their strategies succeed.