Avon Products Inc. is embarking on a massive restructuring that will include a substantial increase in advertising spending. In an attempt to improve its overall performance, the company said it would spend $300 million to $500 million on a multiyear restructuring, with ad spending projected to more than double by 2008. Avon CEO Andrea Jung said Avon had cut its advertising spending by 50 percent in the U.S., and found that a 40 percent increase in ad spending outside the U.S. wasn't enough to keep up with rivals. "The role of advertising was less well-known to us as a direct-selling …

Multicultural marketing should not be considered a stand-alone discipline that is given second-class status by marketing executives. Instead, it should be a key component of a marketing strategy and fully integrated into a company's general marketing efforts. Those are some of the thoughts on multicultural marketing expressed by Association of National Advertisers' President-CEO Bob Liodice in his blog on the ANA's website. Liodice also says companies should commit resources and hire a diverse set of professionals with a balance of skills sets to drive their multicultural marketing programs. "Multicultural marketing is more than just 'targeting'--it is about making and reinforcing …

After suffering a 23 percent drop in sales on October after dumping a popular promotion that extended an employee discount to all buyers, General Motors is back on the discount wagon. The carmaker announced that it would introduce a "Red Tag Sale" in which a flat discount would be offered to all buyers for most 2005 and 2006 Buick, Chevrolet, GMC and Pontiac cars and trucks through Jan. 3. However, popular sellers like Pontiac Solstice, Chevrolet Corvette and the just-launched Buick Lucerne will not be included in the promotion. "The pricing for Red Tag is a formula, similar to the …

After more than 12 years of managing one of the biggest and most visible brands in the world, IBM Corp.'s top marketing executive is steeping down. The company announced that Abby Kohnstamm is leaving Big Blue in early 2006 to pursue "personal and business interests." Kohnstamm, 52, will be succeeded by Bruce Herrald, senior VP-strategy, who adds marketing responsibilities to his duties. The company also said that Kohnstamm, who was persuaded to join a then-struggling IBM in 1993 by former chairman Louis Gerstner Jr., whom she had worked with at Federal Express, would continue to consult for IBM. One of …

Marketers are increasingly utilizing a wide range of disciplines in their marketing strategies, and that has sparked a change in the way ad agencies structure themselves. More than ever, clients are demanding marketing efforts that include not only television advertising, but a coordinated effort involving so-called "below-the-line" services such as direct marketing, sales promotion, public relations, event marketing and others. And as the demand for these integrated campaigns has grown, agencies are responding in kind. The latest example of the trend can be seen at ad agency Publicis USA, which is expected to promote the head of a marketing-services unit, …

Three years ago many marketers abandoned their e-mail marketing efforts after it became apparent that customers were not reading messages. Consumers seemed to consider e-mail marketing little more than annoying spam, chucking messages almost as soon as they arrived. Opt-in rates plummeted and marketers abandoned the strategy. But not Hewlett-Packard. By refining its technique, expanding its subscription list, increasing the breadth and depth of its content offerings, and raising the level of personalization, the company began to crack the puzzle that had mystified so many others. Since it started personalized e-marketing in 2002, its call center savings have quadrupled and …

In the second edition of her book Marketing to Women, author Marti Barletta contends that marketers who want to reach female buyers have to provide the "optimal solution" to their needs in order to close a sale. Unlike men, who are willing to settle for a product because it fills their top criteria and can be purchased quickly, women want more. A lot more. Barlatta contends that women are seeking the perfect solution and are willing to consider all options to find it. As such, marketers have to meet all the needs on a woman's shopping list, not just the …

Good news for marketers who are sick and tired of having their TV commercials zapped by viewers equipped with digital video recorders. Warner Brothers is launching a new Internet service in which viewers can watch old TV shows for free on their computer screens via WB sister company America Online's Web portal. But unlike shows on regular TV, these programs will carry a maximum of two minutes of commercials that cannot be skipped. That amount pales in comparison to the eight minutes of ads per half hour on regular television, but those spots can be skipped over when the programs …

Some companies have fired employees for blogging, but not Big Blue. Quite the contrary. In fact, IBM says it is not only encouraging its employees to start blogs but it is helping them by giving them the tools to do so. The company says it believes blogging is the next big thing for marketing, and wants to use it as a tool to spread the word on their products. Some view employee blogging as reminiscent of traditional employee testimonial advertising, such as pilots and flight attendants extolling the virtues of Southwest Airlines in ads. And apparently IBM is not alone. …

When it comes to being a brand, the good old US of A doesn't even stack up to Avis. At least that venerable car rental agency can proudly state that it's a solid No. 2 (because, as everyone knows, it tries harder). But it seems America comes in a distant third in the ranks of countries as brands. The winners of this contest are Italy, No. 1, and Australia, No. 2, according to a new survey compiled by FutureBrand, a global brand consultancy. The study includes rankings, as well as emerging trends, travel motivations, challenges and opportunities within the world's …