Category Archives: Measure

Lies, Inundation and Being Sold Part 2: Ads Ads Everywhere

This is the second in a series of posts discussing several challenges that marketers face in reaching their customers and how to overcome those challenges. This iteration deals with the inability of consumers to trust advertising. Part one dealt with dishonesty in marketing. Part three will break down the problem with “being sold.”  Future posts will provide solutions to these problems.

You used to wake up with an alarm clock playing your preferred radio station (or at least one you hated so much that you had to get out of bed to turn it off). The alarm clock has been replaced by a cell phone playing Pandora. On your drive to work, you notice that the billboard on the side of the freeway that used to change every few months has been upgraded to a digital iteration that swaps ads every few seconds. When you get to your office and check the news, you see a column of ads, this time customized to one of your preferences or previous searches.

The number of ads to which consumers are exposed is on the rise. Where 40 years ago, consumers were exposed to approximately 200 ads per day (see https://ams.aaaa.org/eweb/upload/faqs/adexposures.pdf), today it is estimated that consumers are exposed to anywhere from 600 (see https://ams.aaaa.org/eweb/upload/faqs/adexposures.pdf) to 5,000 (see http://www.cbsnews.com/news/cutting-through-advertising-clutter/) ads in a day. This is caused in part by the proliferation of new media that exponentially segments what were once reliable consumers of a specific medium.

Although this proliferation of both ads and media provide some unprecedented opportunities for marketings, including the ability to reach niche audiences that were nearly impossible to reach before, it also creates some significant challenges (see the Marketer’s Milieu Infographic).  Not only does it make for more media for the marketer to scour, but it also presents a real difficulty in getting the targeted consumer to give any heed to your ad when there is so much to compete with.

Put yourself in the place of the consumer.  If you were to stand amidst the advertisement behemoth that is Times Square (see image above) does any one ad or message stand out? If so, what is it and why? Or, is the cache´of Times Square simply attributed to the overall experience of the overwhelming nature of all of the ads?

As consumers, we’ve become very adroit at tuning out what we perceive to be visual or audio noise. Yes, ads help us know which plumber to call in the event that my sewer line breaks, but we also know how to avoid it. Half of the reason for owning a DVR is the ability to skip the content you don’t care about. When the ads come on the channel/station is changed or the Pandora station is switched.

There are times when there are innovations that make us stop to actually consume the ad, such as in 2009 when CBS and Pepsi teamed up to deliver the first ever video ad in a print magazine (http://youtu.be/hjGQuneTWMY ). As no one had ever done that before, if you thumbed through the magazine, you had to stop and watch it as it’s unlike anything you’ve ever seen. Although I could care less about CBS’ 2009 fall line up, I had to click the buttons to watch the videos simply because it was so innovative. However, such innovations in advertising are few and far between. If you don’t have millions to spend on the development of innovative advertising media, you’re forced to sift through the ever-expanding media while confronting an even larger challenge of getting your audience to not only notice your ad, but to remember it and accept whatever it is you’re trying to communicate.

This is not to say that marketers should not advertise. It is to say, however, that we as marketers must use the media at our disposal to communicate more effectively with consumers. We need to find ways to break through the clutter to make sure that they take note of the important things we have to say.

How to do that will be the focus of the next several posts.

Fired

Why are CMOs being fired twice as fast as any other C-suiter? Why are major corporations like Old Navy, Taco Bell and Miller Lite letting their marketing executives go? A recent article by Jonathan Salem Baskin questions why there is so much turnover in the marketing C-suite.
Is marketing changing? Sure. Is the marketing landscape beginning to flatten with the use of social media? Possibly. Maybe it’s as Jonathan suggests, maybe they deserved to be fired.
Lack of Accountability
Serfwerks believes that in many companies marketing is the last function to reject all accountability. Is there a change coming? Could this be why companies are moving on without their top marketing executives? Are we finally seeing the day where there are no more bottomless marketing budgets used to explore “creative” ideas? Are CEOs finally requiring CMOs to measure their marketing ROI? We sure hope so.
The Case for Accountability
A recent study by CMG Partners and Chadwick Martin Bailey found the following:
– 75% of companies are highly interested in marketing measurement
– Less than 25% of companies are excelling at measuring & improving their marketing performance.
– 98% of those excelling at measuring and improving marketing performance say it is having a significant impact on their business.
– 55% of those excelling at measuring marketing performance are gaining market share.
If only 25% of companies are measuring their marketing performance it must be difficult to do. On the contrary. It’s rather simple. If you can look at past performance, define you key performance indicators and outline your sales cycle. You can measure your marketing with a 95% accuracy.
Are you measuring your marketing performance? Now is the time to do it. Don’t be the next marketing department casualty. Start being accountable today.

What Went Wrong at Blockbuster?

When my family first started renting movies back in the 80’s we went to a small mom-and-pop establishment called Carmen Video in Camarillo, CA. It was decked out like a movie theatre complete with a popcorn machine – something modern movie rental establishments look nothing like.

Sometime in the mid-80’s the first Blockbuster video opened up in town and within 18 months Carmen Video closed its doors forever. Between you and me- I think the only reason it stayed in business as long as it did is due to a selection of adult videos that they kept locked up in an adults only section (more like a cellar) of the store, which I never went into.

Blockbuster put Carmen Video out of business, and dominated the home movie rental business for years, because it had the lots of copies of the latest movies. They also had a huge selection of video games.

In September 2010 Blockbuster filed for Chapter 11 bankruptcy protection. In early 2011 they approached their creditors for more money- more debt, which is bad when you are already bankrupt.

What happened? Karma? Poor management? Bad investments? Antiquated business model? Competition? A combination of all these things? Continue reading

36.4B Reasons to Like eCommerce

According to an article by Ann Zimmerman of WSJ.com, people bought $36.4B of stuff from online retailers this holiday season (between October 31and December 23).

This represents an increase of 15.4% over the same period last year. Online retail sales now account for about 10% of all retail sales – excluding gas and automobile purchases. 1 in 10 dollars made in retail this holiday season was made over the internet via ecommerce enabled websites.

Perhaps the most interesting part of the article is that the sector that experienced the largest growth was specialty clothing retailers –up 25% over last year. This is interesting because most of us like to try stuff out – especially things we need to wear.

What does this say about our perceptions of the buying experience? Continue reading

5 Marketing Resolutions for the New Year

People like to use January 1st as the starting line for new goals or resolutions. What better time of the year to resolve to do a better job at marketing your own business, your employer, or yourself.

Here is a list of Marketing Resolutions we think that every small business owner or marketing professional should at least consider and possibly adopt:

1. I’m going start understanding how things really work

In our experience, lots of smart business people do a poor job at tracking key performance metrics. This is not only poor business, it is poor marketing. This is because your key performance metrics, like sales revenue, gross profit margin, asset turnover ratio, etc, can be your friends in marketing your business. They help you understand how things really work. By identifying significantly high or low periods of time, your key performance metrics can tell you how well your marketing is or isn’t doing.

By resolving to understand how things really work you resolve to identify your key performance metrics. You then resolve to evaluate those metrics to see how well your marketing is working. Continue reading

Make it Personal, Make it Profitable

If your business is like most businesses, you enjoy making a profit. One idea for making your business more profitable is by creating a more personal experience for your customers.

This is actually more than just a novel idea. There are several research projects that back  it up. A study by Garrity and Degelman, published in the Journal of Applied Social Psychology, indicated that restaurant servers who introduced themselves by name and then personalized the experience for their patrons received an average tip of 23% compared to 15% for those that made no effort at all. That’s a difference of 53%.

You may not own a restaurant, but the concept of personalizing the customer’s experience still applies and can make your business more profitable. Here are a few suggestions on how you can better personalize things for your customers: Continue reading

The Genesis of Strategic Marketing—Tier II Marketing (Part II)

Tier II marketing, data- and research-driven marketing

In a previous article about the genesis of strategic marketing, I explored the first several components of Tier II marketing, what we call the genesis of strategic marketing and the departure from Tier I or tactically driven marketing. Again the foundation of Tier II marketing is data-driven marketing where all media (e.g. brochures, web sites, advertisements, etc.) are integrated or are characterized by similar graphics and messaging. Where the previous article explored key performance indicators, market research, customer segmentation, and positioning, this article describes the remaining characteristics of the organization engaging in Tier II marketing. The remaining characteristics include:

  • Marketing strategy drives tools
  • Touch Point Integration
  • Performance measurement
  • Marketing mapped to sales process

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Marketing Tools v. Marketing Strategy—Tier I Marketing

When it comes to the marketing function, many of business owners, executives, and yes, even those of us who are marketing professionals tend to be very diminutive in our thinking. Marketing is about tools and how to use them rather than a concise game plan that drives marketing decisions. When tools take precedence to strategy, the marketing function becomes no more than the process of developing content to fill brochures, ads, web sites and tweets rather than a deliberate and planned process where the strategy not only determines which tools to use, but how to use them as well as how to deliver a concise, integrated message.

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