Mobile Search Advertising: Hope or Hype?

A recently released report by ABI Research indicates that search advertising expenditures for mobile devices will reach $5 billion by 2013. The promise of mobile search advertising offers marketers a great opportunity to reach consumers where they are… literally! The value added benefit of mobile search to provide information wherever one is makes the possibilities for using search advertising seemingly endless.

There is only one catch to this prediction being realized: consumers have to embrace this new approach for engaging in information search. Technologies are evolving to make mobile search advertising possible. Now, it is up to us as consumers to adapt our behavior and utilize our phones and wireless devices for search purposes. The need to change behavior, coupled with users having adequate hardware to have a positive experience using mobile search, will be major influences on whether the prediction of the takeoff of mobile search advertising is realized. Link

Earth Day: Thinking Greenbacks over Green Marketing?

As Earth Day approaches April 22, there are growing concerns that the spirit of the observance is being lost in a sea of green marketing initiatives. It is commendable that companies are taking up the cause of Earth Day, but there is a real risk of over-commercialization. After all, Earth Day is more about advocating a cause than a selling event. It should not be treated the same way department stores create Columbus Day sales or some other special event that becomes the excuse to run a promotion!

Practicing environmentally responsible behavior in all phases of operations from product design, materials procurement, packaging, distribution methods, and communication tactics should be a priority for businesses. And, it is permissible to toot your own horn and leverage green business practices as a point of difference. But, there is a fine line between being green and chasing greenbacks. Consumers can see through efforts to do the latter; successful green marketing requires a true commitment to being an environmentally responsible organization.

"Git-R-Done" with Testimonials


I’m watching TV the other day and see a commerical for Nutrisystem. In the spot, NFL Hall of Famer Dan Marino proudly announces he lost 32 pounds using Nutrisystem. Then, to my shock he is joined by Larry the Cable Guy! Larry (whose real name is Dan Whitney) has done even better, shedding 50 pounds using Nutrisystem. I must admit Larry is the last person I thought would be interested in losing weight. After all, his portly appearance seems to be part of his brand image. But, he looks great less 50 pounds!

I don’t know if losing weight will help or hurt Larry the Cable Guy’s career, but his testimonial for Nutrisystem is a reminder of the power of customers sharing their experiences about using a product or service. The credibility of personal messages is high, and the “before and after” comparison of Nutrisystem’s effect on Larry the Cable Guy is a powerful message. Even though the disclaimer “results are not typical” is the most accurate message delivered in the spot, the image of a svelt Larry the Cable Guy drives home the benefits delivered by the Nutrisystem brand.

It’s the End of the (Ad) World As We Know It

The widely held belief among businesses is that traditional mass media advertising is in decline. Recent reports on ad spending in the U.S. estimate overall spending was up between 0.2% and 0.6%. A closer look at the numbers on ad spending by national advertisers tells it all.

Down:
– Network TV advertising
– Radio advertising
– Newspaper advertising (more than 7%)

Up:
– Outdoor advertising
– Magazine advertising
– Online advertising (a whopping 18.7%)

The distinction is clear. The ad mediums experiencing growth all have the capability of segmenting markets more effectively than the mediums that experienced decreases in spending. In particular, online advertising holds promise because of the potential to interact with the audience. Ad messages that invite the target to respond in some way, whether it be clicking a link for more info, printing a coupon, or just playing a game, are all ways to engage customers and prospects alike. Without engagement, it is too easy for your target market to ignore you. Don’t make easy for them! Link

Show Customers Your Sense of Humor

It is oh so important to make sure customers are satisfied. While managing customer relationships is serious business, there is no rule against having fun while you do it. Here are three memorable examples that I have encountered as a consumer:

1. Several years ago (nearly 10 years ago to be more precise), I was dining at a Wendy’s with my family. As I picked up my order, the server at the counter said “See you tomorrow!” I laughed once I realized what she said. I was hardly a regular customer. In fact I was 150 miles from home! I left that restaurant feeling good about my experience… I guess the food was OK, I can’t remember!

2. I recently called my CPA’s office to ask about the status of my tax return. The woman who answered my call began with a deadpan response “We are unable to answer questions on Tuesday” (it was a Tuesday, obviously). I chuckled and engaged in some back-and-forth with her about the “policy.” It was risky on the employee’s part because she didn’t know me, but her use of humor disarmed me as I was unhappy about the length of time it was taking to complete my return.

3. On a Southwest Airlines flight, the flight attendant began her safety instructions presentation by saying, “If you will pretend to listen, I will give you the safety instructions.” Southwest employees have a reputation for injecting humor into their service delivery. It was humorous and a great way to start the flight.

What’s the point? Take care of your customers, but it’s OK to have fun while you do it. Your customers will have fun along with you!

Sprint Dialing Wrong Numbers

Sprint Nextel is a brand in trouble. It is losing money and customers at an alarming rate. Its CEO, Gary Forsee, stepped down in 2007 and received a compensation package of more than $21 million. Forsee’s replacement, Dan Hesse, received a compensation package of more than $27 million. At least these two gentlemen fared better than Sprint Nextel, which lost $29 million in 2006. Forsee’s settlement with the company includes a monthly payment of abou $84,000… for life. This generous compensation for top executives comes at a time when Sprint expects to lose 2 million customers this year.

This picture is totally out of focus. Sprint Nextel has been mired in massive customer service problems since the merger of Sprint and Nextel. The exorbitant compensation packages handed out in the face of a dwindling customer base and plummeting financial value have to devastating to employee morale. Also, the mix of lavish CEO pay and struggling customer service does nothing to endear the brand in the minds of existing customers and people who might be in the market for wireless services. Hopefully, company leadership can right the ship with customers and return sanity to the management of financial resources. Otherwise, this brand faces the prospect of becoming irrelevant in the marketplace. Link

My Analogy about Pricing

I have very strong feelings about the role of price in the marketing mix. I once worked for a snack food company that nearly priced its way out of business. We frequently offered trade promotions and other price-related incentives to retailers and distributors. We had little trouble selling products when we lowered the price. The problem was we made little or no money. It took a change of Marketing VPs to put an end to the insanity of giving away profits with heavy discounting.

The analogy I use with my students about price is to equate its use as a marketing strategy with a tree limb. A limb that falls from a tree can become many things for a creative child: a gun, light saber, baseball bat, or many other possibilities. So it is with the marketing mix- it is the most adaptable of the 4Ps of the marketing mix. Pricing can be adjusted downward to respond to competitive situations or raised to address cost increases or maximize revenues.

There is a downside to pricing, though. It can be very dangerous, as was the case for the snack food company I mentioned. A reckless use of pricing can seriously damage gross margins, overall profits, and brand equity. Just like a limb can potentially cause injury if not handled properly, unwise use of pricing as a marketing strategy can lead do damage to profits and a brand’s well being.

Marketing Strategies in a Tough Economy

Concern abounds about consumer confidence, spending patterns, and maintaing sales volumes. Add to that anxiety problems with rising costs of goods produced and transportation costs, and it is easy to understand why marketing budgets are prime candidates for trimming. No choice but to hold the line on expenses if sales are sluggish. Or is there a choice?

Conventional wisdom says be conservative or even cut back on marketing during down economic periods. That formuala works… if you subscribe to the view that marketing is an expense that follows business activity. On the other hand, if you view marketing as an investment that stimulates sales, should you not be exploring options for increasing marketing investments? Look at the recent performance announced by General Mills. It announced a 61% increase in earnings for the most recent quarter despite negative trends in the economy. The secret? One is increased spending on marketing (up 13%). The other is product innovation. Making products that consumers value often command price premiums, which is key to driving profits.

It would be an oversimplification to say spend more on marketing, expect earnings to increase. The challenge is identifying the optimal mix of marketing tools that will allow you to achieve business objectives. In the case of consumer packaged goods like those sold by General Mills, it was sampling, media advertising, and contests. For other companies, it may require appealing to customers using other tools. The point is: don’t go into a shell when tough economic condidtions hit!

Find Your Marketing Madness

The NCAA men’s basketball tournament, which caps a 4-week period known as March Madness, is a marketer’s dream. Why? The tournament stokes the interest and passion of millions of Americans. People fill out brackets, either for fun or in pools that reward the winner with prize money, cheer for their favorite teams, and adopt darling teams temporarily. March Madness is a prime vehicle for marketers to reach consumers who are full of positive emotions and energy whether it be through NCAA sponsorship, television advertising, or sponsorship of bracket contests online.

March Madness is a great way to reach audiences, but not all companies have that luxury. It does not matter. The point is you need to learn what creates “madness” among your target market or your community. In some cases it is sports, but it does not have to be on a grand scale like the NCAA men’s basketball tournament. Maybe it is the local high school sports teams, a half-marathon/marathon race, or a rodeo. Perhaps passions are stirred by things that have nothing to do with sports. It can be an art museum, a community playhouse, a well respected charitable organization, a community school, or other entities that hold social or cultural significance.

People long for meaningful experiences in their lives. Your ability to make your brand a part of your customers’ meaningful experiences can enable you to find your Marketing Madness.

When Less is… Well, Less


Weak economic conditions often put marketers in a situation of either raising prices or holding down costs. A common tactic for consumer packaged goods marketers is to do the latter, reducing the weight or quantity of a product item to reduce cost of goods sold. This route is almost unavoidable as these products are often discretionary purchases (e.g., snack foods or candy) that consumers may stop making if prices rise.

The Wm. Wrigley Company is opting for holding price and reducing product in its upcoming “Slim Pack” launch of its well known chewing gum brands. This approach carries with it risk in that consumers may see through the reduced offering and view it the same as a price increase. Even worse, such a move may be seen as a deceptive ploy to maintain profits at customers’ expense. A comment by Wrigley’s VP of North American consumer market- gum, reflects either important insight gleaned from market research or wishful thinking. He said, “To them the value goes up because they’re getting a better tasting product in a better package. Price is not the way the consumer is looking at this.” For the sake of Wrigley, I hope it is the former, not the latter. Link