Sunday, October 11, 2009

Don’t Ignore Traditional Media!

It’s very popular today for advertising and marketing people, like me, to emphasize “new media” – websites, E-mail, blogs and social media.

HOWEVER…it’s important for retailers NOT to ignore traditional media such as newspapers, circulars, TV, radio, direct mail and outdoor media.

Why?

“New media’ is characterized by “listening” to the consumer and engaging in a two-way conversation with her. It’s about relationship-building, sharing information and getting to know likes and dislikes.

While there is no question that relationship-building is important, you don’t greet your friends by saying, “Did you know everything in my store is up to 40% off this week?” Certgainly, sales promotions are not the only strategy for retailing success. Nonetheless, there is a place for such messages.

Enter traditional media.

Traditional media is where you can introduce promotions to the consumer in an entertaining and/or newsworthy manner. After all, if you never “announce” your promotion, how will word-of-mouth start and spread?

Even though everyone is talking about how your customer is spending more time online, when your customer seeks local news, she still relies on traditional media.

In fact, according to September 2009 studies by ARAnet and the Pew Research Center for the People and the Press, television remains Americans’ primary source of news.

As reported by e-Marketer last week, “…Respondents (to the Pew survey) favored newspapers and radio over the Internet for local news… Unsurprisingly, young adults generally favored the Web more than older boomers and seniors, though adults ages 30 to 49 were most likely to prefer the Internet for local news. Newspapers and television generally increased in popularity with the age of the respondents.”

In other words, although traditional media roles may be changing and their overall influence diminishing, they still deserve your attention and investment. That’s what we believe at Knorr Marketing.

-- Phil Callighan, the Marketing Engineer

Wednesday, July 15, 2009

TV Ads Considered Most Helpful to Americans?

Take note of these findings from Harris Interactive, based on a poll of 2,521 adults surveyed online between June 4 and 8, 2009:

"Over one-third of Americans (37%) say that television ads are most helpful in making their purchase decision while 17% say newspaper ads are most helpful and 14% say the same about Internet search engine ads. Radio ads (3%) and Internet banner ads (1%) are not considered helpful by many people. Over one-quarter of Americans (28%), however, say that none of these types of advertisements are helpful to them in the purchase decision making process."

Now let’s step back and put this poll into perspective.

Clearly, you have to focus on the words “helpful in making a purchase decision” and the word “ads.”

Taken alone, the poll report is doing a great disservice to the profession of advertising. It ignores the fact that advertising also introduces us to new products, suggests ways we can improve our lives and notifies us when something we have desired is “on sale.”

In addition, the poll is about helpful “ads." Perhaps it would be more fruitful to focus on those 28% of Americans who said “none” of the advertisements were helpful in the purchase decision making process.

Advertising is not the only way people make purchasing decisions. What must also be considered is editorial content and public relations that foster word-of-mouth referrals and criticisms.

In fact, it could be that if we combine the number of people that find Internet search engine “ads” helpful and the 1% that found Internet banner “ads” to be helpful, with earlier findings that showed most people went to the Internet as their “next step” after being exposed to an advertising message, we might be closer to understanding what helps most people make their buying decision.

So, when Doug Knorr, president of Knorr Marketing, speaks about “Advertising in the Digital Age: Websites, Social Media & E-Promotions!” at the Las Vegas Market in September, you should be there.

-- Phil Callighan, the Marketing Engineer

Friday, June 12, 2009

Newspapers Must Change to Survive

Attending a “Future of Print Media” forum this week reminded me of the resilience of newspapers. Radio didn’t kill newspapers. TV didn’t. The Internet hasn’t….yet.

The “watchdog” journalistic service provided by most community newspapers is certainly valuable and must be preserved. The question is “how?”

Today, many community newspapers seem to be in the same position as department store retailers 50 years ago. Like the department store business model of old, community newspapers include content for the whole family and for all ages in the same package.

The “everything under one roof” model of traditional department stores didn’t survive (many of whom narrowed their focus to fashion apparel and home furnishings or transformed into discount stores) and it most likely won’t work for community newspapers.

Trying to be all things to all people rarely succeeds.

Most newspapers are facing declining subscriptions and circulation. As a result, ad spending in newspapers is declining and retailers are seeking other ways to build their business.

For the first quarter of 2009, Nielsen Company reported local newspaper advertising had declined 14.3 % and local Sunday supplements had declined 37.7%, compared to the same period a year ago.

The Internet has proven that people prefer to “self-elect” the content (and advertising) they desire on their own terms.

While newspaper websites generally report high traffic numbers, the unfortunate fact is that many newspapers provide most or all of their print edition content online for free while failing to include ads that appear next to the same editorial in their print edition.

In my own community, we have a number of other publications that report news that was once the sole domain of the daily community newspaper. This includes a business magazine (whose opt-in email program reports business news instantly), an arts & entertainment weekly, a publication devoted to seniors and more.

These “alternatives” to the daily newspaper often do a better job because they specialize.

With the economy down and advertising budgets still being cut, newspapers might have to re-think what content they provide better than anyone. That might limit them to reporting on government agencies, local litigation, schools, sports, births and obituaries – the only “local” news people really might not be able to receive as easily anywhere else.

-- Phil Callighan, the Marketing Engineer

Tuesday, June 2, 2009

Branding Takes More Than A Slogan

Doug Knorr, president of Knorr Marketing, has talked many, many times about the importance of building a retail store brand, rather than relying on product brands to generate retail traffic and sales.

The reason?

If you are only competing on the basis of product brands, you face immense competition from other stores and Internet e-tailers offering the same product brands.

In short, without branding your store, you end up selling commodities where price alone is the differentiating factor.

Yet, it’s frustrating to see retailers believe they are “branding their store” by merely slapping a consumer promise, statement or slogan onto their logo.

Adding a memorable line of text to your logo is certainly unable to do the branding job alone. In fact, it often gets lost when the rest of a print or broadcast advertisement is screaming about a sale or a special-purchase deal for the consumer.

What else must you do?

Begin building substantive support for your brand promise. This means actively pursuing customer testimonials, case stories and third-party reviews. In future blogs, I’ll address these public relations activities in more detail.

However, for starters, consider adding some “Why Shop John Doe Store?” text to your advertising and website.

Are you locally owned? Family owned? Providing interior decorating services? Willing to price-match competitors?

Be sure to fully explain how these sorts of features really benefit someone. For example, if “locally-owned” or “family-owned” are among the reasons why a consumer should consider shopping your store, don’t presume the consumer will automatically realize the benefits of employing local people, supporting a local little league team or picking up an elderly customer one day because she missed her ride.

Start putting some reasons behind the value of your store brand today!

-- Phil Callighan, The Marketing Engineer

Thursday, May 21, 2009

Can Customer Transparency Go Too Far?

Recently a business organization mistakenly sent an email to all their opt-in subscribers without blocking the list of subscriber addresses.

Like most businesses, they had promised they would never sell or publicly reveal their opt-in list.

But the damage was done. Or was it?

In their quest to “be transparent” to customers, they followed the “faulty email message” up with another email that identified the faulty message, announced their error and apologized to their subscribers.

Is that how you would handle the situation? What would you do?

Fact is, because the opt-in subscriber list for this organization was so large, most browsers would not instantly expose the email addresses in the faulty message because it took so long to download them.

However, by identifying the specific faulty message and drawing attention to the error, people like myself searched out the message to see if the opt-in list was actually there. (It was.)

Alternatively, the organization could have considered:
1. Staying silent on the matter.
2. Admitting a mistake, but not identifying the specific email that contained the error.

At Knorr Marketing, we believe customer transparency is vital to earning customer trust and loyalty. However, this is a case where omitting the identity of the specific faulty message might have saved them added embarrassment.

After all, why direct people back to your mistake? Acknowledge it and move on. Then, on a case by case basis, you can decide if you need to identify exactly when and where the fault occurred.

-- Phil Callighan, The Marketing Engineer

Monday, April 20, 2009

Public Relations Key to Online Action?

While Pay-Per-Click (PPC) and Search Engine Optimization (SEO) dominate most discussions about methods for driving website visits and transactions, a recent survey indicates public relations may play a much stronger role.

The national survey conducted by Opinion Research Corporation in March, 2009 asked online respondents to rate their likelihood to read and act upon five types of online advertising. The results?

• Articles that include brand information: 51 percent
• Email offers: 47 percent
• Sponsored search engine links: 39 percent
• Banner ads: 25 percent
• Pop-up ads: 13 percent

Digging deeper, ARAnet, sponsor of the survey, reported: “67 percent of people between the ages of 18 and 24, and 56 percent of those making at least $75,000 per year say they are ‘very likely’ or ‘somewhat likely’ to read and act upon article-based advertising.”

Although “article-based advertising” used in this context refers to companies that have partnered with print and online publishers to provide content (they sell their writing services to businesses for this purpose), it is easy to conclude that editorial coverage, regardless of how generated, will generate similar activity.

In fact, back in 2002, Al and Laura Ries convincingly argued that third-party editorial resources are necessary to validate the claims of advertising and build brands.[1]

In short, credibility is often much higher with publicity that appears in editorial content than with paid advertising. That's because people recognize that advertising space or sponsored links have been purchased and the message is biased.

If PR isn’t part of your game plan, it should be. That’s what we believe at Knorr Marketing.

-- Phil Callighan, The Marketing Engineer

[1] Al and Laura Ries, The Fall of Advertising and The Rise of PR (HarperCollins Publishers, Inc. 2002)

Wednesday, April 15, 2009

Risks of Linking to Websites You Don't Control

After receiving an invitation from my local chamber of commerce to attend a "Business After Hours" event at a casino/hotel complex tonight, I clicked on "directions" to the place and was surprised to see a portion of a negative customer review featured alongside the map.

The customer review began: "The staff in the hotel sucks, especially the one lead that I talked to a ..."

Intrigued, I clicked on the review and read all the bad comments. If I were considering a night's stay at that casino/hotel, I would have gone elsewhere.

Makes me wonder if the chamber or the casino ever checked the link before sending it out.

Memo to management: Be sure to "click" all those links you include in a message to be certain you know what other people will see. It is often wiser to send people to a website you control, rather than rely on a third-party source.

In this digital age, as in golf, you can't be sloppy on the links!

Posted by Phil Callighan, The Marketing Engineer
http://www.knorrmarketing.com/