Category Archives: Marketing Philosophy

This category contains postings of the general concepts and philosophy of marketing.

A Response is Only a Marketing Milestone

07 Tuesday Jul 2015

Posted by in Direct Marketing, Marketing Philosophy, Marketing Strategy

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Every journey has one or more milestones, but only one destination.

Every journey has one or more milestones, but only one destination. Direct marketing is no different. Many direct marketers measure success by the number of responses from a given campaign. A campaign isn’t truly successful until the marketing communication sparks a conversation that eventually leads to a conversion.

Going from conversation to conversion requires a deeper understanding of the target audience. Focus beyond response rates, and measure success on the number and quality of conversions. This approach aims much higher than the traditional response rate model. Without responses, there would be no conversions. Not every response leads to a conversion. Every organization leveraging the services of a direct marketing company is interested in acquiring new customers while keeping the ones they already have.

This requires thinking beyond responses, and setting your sights on conversions.

Every communication, regardless the channel, begins with a conversation. The conversation should be a well-orchestrated channel-neutral communication blending the perfect message and creative strategies. If the conversation is interesting, it will trigger a response. If it is compelling, however, the response will become a conversion. Conversions make the cash register ring. Moreover, conversions are used to calculate ROI. Can it get any better than this? Yes, it can!

The goal is to go from conversation (marketing) to conversion (sales). Savvy direct marketers have raised the bar well beyond the reach of printers-turned-marketers and traditional letter shops, by measuring success on the quantity and quality of a conversion. The single-channel, one-dimensional approach of every high-volume direct mail company consistently falls short of the Direct Marketing Association’s (DMA) reported 4.4% average response rate. Increase the quantity of conversion rates by creating and developing relevant messaging that speaks to every individual in a personality-centric tone specific to their temperament.

The quality of a conversion correlates directly to an individual’s purchase. The more an individual spends—as the result of a marketing campaign—the higher the quality of the conversion. Many years of experience has taught marketers the importance of multi-channel marketing. Not every communication channel is appropriate in every situation. In fact, a channel-propensity model should be developed for every campaign. A channel-propensity model is used to determine every individual’s preferred method of communication. Do not inundate an individual with an Omni-channel approach. Instead, use the top two or three communication channels to present your products or services.

The SAS Institute in Cary, NC recently reported the effectiveness of multi-channel marketing. In their report, they leveraged information from hundreds of marketing campaigns to show the financial benefits of using multiple channels for your communication. Multichannel customers spend three to four times more than single-channel customers (Raj 2015). The quality of a multichannel customer far exceeds the quality of a single-channel customer.

Measure your campaign response milestones, but never lose focus on the destination–conversions.

References:

Raj, W. 2015. Four multichannel marketing strategies that deliver exceptional customer experiences.

http://www.sas.com/en_us/insights/articles/marketing/four-multichannel-marketing-strategies.html?utm_source=LINKEDIN_COMPANY&utm_medium=social&utm_campaign=Customer%20Intelligence

Advertising Demystified

17 Friday Apr 2015

Posted by in Advertising, Marketing Philosophy, Marketing Strategy

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Begin with the communication objective

An advertising campaign starts by identifying a communication objective. One important issue is establishing the right combination of information to properly communicate the message and satisfy the communication objective. The advertising budget should be established before the creative strategy is written.

The creative strategy is the roadmap for the campaign.

A target audience is the keystone for a creative strategy. The objectives as well as the key benefits need to be defined in the creative strategy. According to Arens, Schaefer, & Weigold (2009), the detailed creative strategy consists of the following elements:

  • The basic problem the advertising must address.
  • The objective of the advertising.
  • A definition of the target audience.
  • The key benefits to communicate.
  • Support for those benefits.
  • The brand’s personality.
  • Any special requirements.

These elements represent seven important steps for writing a creative strategy. Each step needs supporting research and business decisions distilled into a clear and concise set of instructions to guide the creative team. At a bare minimum, a creative strategy should contain an objective statement, a support statement, and a tone or brand character statement.

Choosing the correct media for an advertising campaign

Before selecting the most effective media for an advertising campaign, the media planners and buyers need to be aware of the alternatives or options available. In addition, there should be a complete understanding of how the target audience accepts, reacts, and responds to the various media.

Special consideration is given to the reach and frequency of each medium (Arens, Schaefer, & Weigold, 2009). Reach is defined as the number of unique individuals that will be exposed to the advertising using a specific medium. Frequency is defined as the number of times a single member of the target audience will be exposed to the advertisement during the lifespan of the campaign.

In many cases, a media planner leverages several communication channels simultaneously as part of an overall cross-media campaign strategy. This approach is very effective when the selected media complement one another. For example, a broadcast email campaign works very well if coupled with a campaign-specific website. The recipient is already on-line when receiving the email message, so it makes sense to make the call-to-action a simple link to the online-advertisement.

Print, radio, television and more…

Print media, as with other communication channels, has several pros and cons. One advantage that print media has over the television and radio is that it is capable of delivering more detailed information. Moreover, the target audience has the opportunity to read and re-read the advertisement as well as pass it along to others. Print media also offers very good controls over target segmentation. For example, magazine advertising offers options for delivering targeted advertising in geographic and demographic specific editions of their publication. The downside of print advertising, particularly in newspapers and magazines, is the existence of competing advertising in the same publication. Magazine advertising is expensive compared to other print media communication channels.

Television advertising is known traditionally as the medium with the longest reach. The mass coverage of television advertising is appealing to companies needing to carry consistent messages across several geographic areas. Using sight, sound, motion, and color allows advertisements to be entertaining in addition to informative. One major problem with television advertising is with ad skipping technologies. Digital video recording devices (DVRs) are a household mainstay. Consumers are recording programs and watching them at their own convenience—skipping the commercials along the way. Production costs and lead-time to produce a television advertising are a disadvantage when compared to other communication channels.

Out-of-home, direct mail and specialty advertising

Advertisers leverage various forms of out-of-home media when the need arises to expand their market coverage beyond the reach of traditional marketing channels. Depending on the specific out-of-home medium, certain factors are considered before a campaign is deployed. Outdoor advertising, which encompasses several variations of billboards and bulletins, is considered to be a low cost alternative to traditional alternative to television, radio, and newspaper advertising. Covering more than 9000 markets across America, outdoor advertising gives advertisers the ability to rapidly reach any portion of their geographic market (Arens, Schaefer, & Weigold, 2009). The anticipated return on investment (ROI) is a consideration as each medium is compared for effectiveness. Message saturation and the cost for exposure is part of the metric used in determining the viability of a particular form of advertising.

Direct mail advertising is considered to be one of the most effective communication channels. Measurable results, such as response rates, are considerably more accurate in a direct mail campaign because of the targeted method of deployment. A well-formulated direct mail campaign consists of a targeted mailing list and variable, relevant messages. Outdoor and transit advertising rely on the target audience to pass-by or be passed by a marketing message. Direct mail advertising is delivered one-to-one to the intended audience. If the advertiser needs to deploy a campaign where the message needs to be unique to each recipient, direct mail using variable data driven content is the only solution. Newspaper advertisements are not unique to each reader. Television and radio advertisements are directed to a local, regional, or national audience with a common, non-personalized message at each level.

Specialty advertising serves a purpose beyond traditional communication channels. Premiums, for example, are used to enforce the brand or continue a message from other advertising efforts. My refrigerator is covered with magnets (specialty advertising) from various local television stations, pizza delivery companies, and insurance companies. You might also find a few desk calendars from local businesses in my home office.

Planning a media advertising campaign

Media planning, if not a science, is certainly an exercise in mathematics.

While I agree that creativity is an integral part of planning an advertising campaign, decisions on the placement and timing are equally as critical. Advertising is only effective when the intended audience is exposed to the message. Not just any set of eyes and ears, but the target audience. A media planner must consider many things simultaneously while constructing a plan to deploying an advertising campaign.

 

Media planning framework ensures the media plan is aligned with the advertising and marketing plans. Media objectives are goals derived from the advertising strategy. Audience objectives and message-distribution objectives are two major components of a media objective (Arens, Schaefer, & Weigold, 2009). The audience objective is the underlying definition of the target audience the advertiser intends to reach. The definition includes the demographic, psychographic, and geographic information of the audience. For example, targeting a certain age group in a campaign is considered an audience objective.

The advertiser’s ethical responsibilities

It is the responsibility of an advertiser to do what is morally acceptable by society. It is possible, as proven by Calvin Klein and Abercrombie & Fitch, to act unethically without breaking any laws (Arens, Schaefer, & Weigold, 2009). The morals of our society has been challenged and changed many times over. We would never have seen a television commercial during an episode of Leave it to Beaver featuring a scantily clad female eating a cheeseburger while washing a car. The personal value system of our society has become more tolerant and less traditional.

The advertising industry has several mechanisms in-place to help regulate and control the content of an advertisement. There are still a few irresponsible marketers who believe that it is easier to apologize than ask permission.

The agency responsible for spawning ethically challenged advertising does not suffer nearly as bad as the company represented in the offensive advertising.

Consumer groups can impact advertising by complaining directly to the company whose products are being touted inappropriately. I like the idea of self-regulation. When advertising agencies scrutinize one another, everyone benefits.

Expect a few critics

Responsible advertisers create advertising copy best suited to attract a target audience to a specific product or service, and at the same time maintain certain sensitivity to societal issues. Advertising is a part of society. In many cases, advertising influences society. The many cultures that makeup a society dictate levels of acceptance. Some advertising copy sparks interest from certain groups within a society, and at the same time offends others. Is this irresponsible advertising? Perhaps. I believe this is more of a case where the advertiser uses a targeted message, but chooses a media vehicle that crosses into markets outside the intended target. I believe that satellite radio, simply because of the broad reach, could cross cultural boundaries.

Public service announcements are by nature intended to be in the best interest of a society. However, all other advertising runs the risk of sparking controversy. Many complaints are centered on claims of false advertising or puffery. In contrast, some consumers are convinced that purchasing products that are frequently advertised decreases the risk of dissatisfaction. The theory is that a company in the public spotlight is less likely to misrepresent their products and services (Arens, Schaefer, & Weigold, 2009). Other criticism includes the idea that advertising affects the value of products, therefore creating an economic impact to a society.

References:

Arens, W., Schaefer, D., & Weigold, M. (2009). Essentials of Contemporary Advertising. McGraw-Hill Irwin, New York.

How Advertising Content and Design Influence Buying Behavior

16 Thursday Apr 2015

Posted by in Marketing Philosophy, Marketing Psychology, Marketing Strategy

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Creativity in advertising sparks emotion and motivates a prospect or consumer to react. The content of an advertisement is responsible for informing, persuading, and reminding—ultimately influencing buying behavior. The design is directly responsible for attracting attention. It is important to engage the viewer and peak their interest all the while establishing credibility building desire.

Everything from images, graphics, text, and colors contribute to influencing buying behavior.

The three components of a message strategy, verbal, nonverbal, and technical, combine to describe how an idea will be communicated. In the case of the multi-media communication channels (i.e. television, internet), the verbal elements are derived from copy and converted into a script and delivered as a sound byte. When the medium is print, the verbal elements are designed to be read and understood. The nonverbal elements of a message strategy encompass visuals, such as graphics, and their usage specific to the media. A message strategy developed for radio would not include nonverbal elements. It would, however, include the technical element. Slogans, jingles, contact information, and even disclaimers are considered members of the technical element within a message strategy.

The combination of the message strategy elements are intended to engage a buyer and effect their behavior. The message strategy continues the vision identified in the creative strategy to cascade a common message across different media as part of an overall advertising strategy.

References:

Arens, W., Schaefer, D., & Weigold, M. (2009). Essentials of Contemporary Advertising. McGraw-Hill Irwin, New York.

Multiattribute Theory and Wal-Mart

07 Wednesday Jan 2015

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Wal-Mart has quickly become a worldwide retail behemoth. In the wake of their success, however, many of the Wal-Mart patrons have formed a love-hate relationship with the American-based juggernaut. Simply put, there are enough weighted advantages to shopping at Wal-Mart to dilute any ill feelings and incentives for consumers to shop elsewhere. A multiattribute attitude model exposes this phenomenon and helps explain the reasoning behind Wal-Mart’s loyal following.

It Starts With Consumer Attitude

A Wal-Mart consumer—as with any consumer—establishes certain attitudes towards the companies they frequently shop. An attitude, as defined by Solomon (2008), endures over time.

An attitude takes years to evolve, but a moment to change.

Consumers are beginning to realize the impact to the local community and economic state of their neighborhoods resulting from the success of Wal-Mart.

Cognitive dissonance explains the healthy percentage of Wal-Mart patrons that feel the stores are bad for our country, but continue to shop there (Basker, 2007). With 46 percent of Americans living within five miles of a Wal-Mart store, it is easy to understand the mix of love and cynicism towards the company. Many people believe that Wal-Mart, while good for helping consumers save money, is bad for free and competitive enterprise. Small niche retail stores cannot compete with Wal-Mart’s volume buying induced pricing.

The basic multiattribute approach for modeling attitudes uses attributes, beliefs, and weights as the basis for determining the propensity for a consumer to choose one option over another.

The Fishbein model also uses three components of attitude—salient beliefs, object-attribute linkages, and evaluation—for determining a measurable score representing a consumer’s attitude. Several attributes needed to fairly assess the popularity of Wal-Mart over several competitors include environmental responsibility and local economic sensitivity.

Using the Fishbein model, a comparison of Wal-Mart, Target, Kmart, Sears, Costco, and Sam’s Club against nine attributes shows which retail chains have the highest and lowest probability of success in a market based on specific weights assigned to the attributes. The priority, or importance, of each attribute weighted against the scored beliefs is used to calculate an overall score for each chain. The store with the highest score is recognized as having the most perceived differences in overall attitude. Table 1.1 shows how the multiattribute model can used to determine which entity has the most favorable attitude. The lowest score represents the company with a market of consumers with less disparate attitudes.

Note: In this hypothetical example, Wal-Mart scored the highest indicating that this particular shopper will have a higher propensity to visit their store over the others.

Note: In this hypothetical example, Wal-Mart scored the highest indicating that this particular shopper will have a higher propensity to visit their store over the others.

What does it mean?

The importance of each attribute carries the most impact compared to the other variables used in the Fishbein formula. Quality, variety, and product guarantees are the top three attributes in the hypothetical analysis shown in table 1.1. Companies, such as Wal-Mart, can use the results from a multiattribute analysis to help improve their image. In some situations, the information gleaned using a multiattribute model can be based on biased input. Before setting marketing direction based on multiattribute analysis, it is important to make sure the information is not skewed as a result of the halo effect (Beckwith & Lehmann, 1975).

Wal-Mart can capitalize on their advantages and perhaps add attributes to strengthen their position in the market. However, with the importance of customer loyalty and retention lurking in the shadows, it may just be smarter to concentrate efforts on the attributes deemed the most important by their target audience. There is a certain amount of tolerance with the shopping public which seems to be tested each time a new story is revealed regarding Wal-Mart’s mistreatment of employees. Target is only a few discounted prices away from winning over several Wal-Mart loyalists.

References

Basker, E. (2007). The causes and consequences of Wal-Mart’s growth. The Journal of Economic Perspectives [Electronic version]. Retrieved January 7, 2015, from http://www.jstor.org/stable/30033740

Beckwith, N., & Lehmann, D. (1975). The importance of halo effects in multi-attribute attitude models. Journal of Marketing Research. [Electronic version]. Retrieved December 28, 2014, from http://www.jstor.org/pss/3151224

Solomon, M. (2009). Consumer behavior buying, having, and being (8th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.

Multi-role Decision Making

30 Tuesday Dec 2014

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Sometimes, it takes a village to make a decision

More often than not, a consumer’s decision to purchase a product or service is influenced by various individuals or groups in assorted roles. In many situations, individuals or groups play a number of specific roles (Solomon, 2008). Understanding each role and how it affects a purchase decision is an advantage to any marketer. Children, for example, acting in the role of initiator or influencer sometimes manipulates parents into making purchases. However, the initiator is only one of several contributors in the decision-making process.

How Does it Happen?

In the following example, a multi-role decision making process involves both internal and external influences.

A typical American household––Your thirteen year old daughter comes home from school sobbing and announces she has no friends. Being the good parent that you are, you ask her why. She’s says she’s just a nobody. You ask her why she feels she’s a nobody. She says “Because I’m the only kid in class who doesn’t have a cell phone.” Kindly grandpa says, “Well we can’t have that little princess. I’ll get you one for your birthday.” She says, “I have to have unlimited text messaging too.”

A child feels pressure from friends to join in the ranks of the cellular community. The child, hoping to convince her parents to buy her a cell phone is positioned as the benefactor of the decision. The grandparent is providing additional pressure on the parents by assuming the role of the accommodator. The kids in the young girl’s class combine efforts and take on the role of facilitator. It is the peer pressure from the children in class that is the catalyst for the decision. Although influenced by all of the other roles, the parent is ultimately the decision maker.

This example goes beyond parental yielding and follows the pattern of multi-role decision making. While common in family life, organizational decision making follows many of the same traits.

Organizational decision making can involve many individuals in one or more roles including, initiator, gatekeeper, influencer, buyer, and user.

Family as well as organizational decisions is subject to many levels of influence, including peer-pressure.

Social conditions also play a role in the decision making process. A cell phone to an adult is a necessity, whereas with a child it is more closely related to a status symbol. Every child in the class with a cell phone is in a different social class than those without. The parents become vicariously a member of the same less-fortunate social class as their child. This offers additional pressure on the parents to buy the child a cell phone. Pressure-proofing a child is nearly impossible. Adolescence children are susceptible to influences from both parent-pressures and peer-pressures. When confronted by these two choices, a child will choose peer-conformity (Brittain, 1963). As a result, the parents become the minority voice in the decision making process.

It is important to understand when it is beneficial to market to multiple decision makers and influencers. It is never a bad idea to have someone on the “inside” evangelizing your products or services. There is a very good reason grocers and product placement experts reserve the bottom two shelves for the Frosted Flakes and competing sugary cereals. It places the products directly in line-of-site of the freckle-faced influencer for this particular category of products.

 

References

Brittain, C. (1963). Adolescent choices and parent-peer cross-pressures. [Electronic version]. American Sociological Review. 28(3), 385-391. Retrieved December 30, 2014, from http://www.jstor.org/pss/2090349

Solomon, M. (2009). Consumer behavior buying, having, and being (8th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.

Rhetoric & Stereotypes Drive Ineffective Marketing

29 Monday Dec 2014

Posted by in Marketing Philosophy, Marketing Psychology, Marketing Strategy

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What is Rhetoric & Stereotypes?

Politicians, individuals with tattoos, feminists, and senior citizens are groups within our society with little in common. While there could be overlap between these four groups, such as senior citizens with tattoos, or feminists practicing politics–there are four generalizations distinguishing these groups.

The exaggerated and oversimplified opinions used to define these groups are known as stereotypes.

When stereotypes take on the form of rhetoric language they become insulting and offensive to the group being described. Moreover, accepting a stereotype without the benefit of facts is lazy, irresponsible, and depriving our own intellect.

The phrase “senior citizen” is a euphemism. It is a combination of words with a positive meaning used to describe our elders. Specifically, it is used when referring to individuals at or over the age of retirement. The euphemism, senior citizen, is quickly converted from a positive phrase to one of negativity when described by a stereotype. One version of this stereotype defines a senior citizen as an elderly, slow moving, health challenged, frequent occupant of the passing lane, with an annual pass to the local shuffleboard courts. This version is localized to the state of Florida where many senior citizens choose to retire and enjoy life. Although geography separates several versions of this stereotype, a few of the components are common. Senior citizens are weak, elder, and set in their ways. While there may be some truth to these stereotypes, as it relates to a few senior citizens, it is unfair for the rest to be pigeonholed into the same group.

For several decades feminists have endured a single, simple stereotype. The culture of the 1970s is responsible for the current stereotype. This stereotype paints the negative picture of a feminist as a masculine female, most likely a lesbian, with a complete wardrobe of plaid flannel shirts, and no male friends. There is complete disregard for the true purpose and beliefs of feminists. As with the negative stereotype of a senior citizen, this interpretation of a feminist is insulting and narrow-minded. There is no truth in the common stereotype of a feminist. A feminist is someone, male or female, who believes in gender equality—nothing more. This stereotype was most likely derived from a group of individuals who did not understand, or agree with, the purpose and vision of feminism.

As tattoos become more mainstream they continue to be associated with certain stereotypes. All versions of stereotypes describing tattooed persons cast a shadow of negativity on both males and females. Stereotypes are especially cruel to a female with tattoos. Recent attempts have been made to shine positive light on tattoos. The euphemism “body art” is used to imply that a tattoo on a female is more about an appreciation of art rather than an indication of sexual promiscuity. Men with tattoos are perceived as rebellious, irresponsible, unintelligent, and sometimes even criminal (Hudson, n.d.).

Everyone does not share this interpretation of a tattooed person. Younger generations do not judge a person with a tattoo-riddled body—they simply accept them for what’s behind the ink. Body piercings follow a similar stereotype. It is not uncommon to see a person with tattoos also sporting a few piercings.

A politician is stereotyped as a habitual self-serving liar with an ego quenched only by four years of occupying the desk in a certain oval office.

While this stereotype is true for a few politicians, the rest are guilty by association. Most of the politicians who have served throughout our history are recognized as statesmen—and rightly so. Interesting enough is the fact that attorneys share a similar stereotype. It would be worth investigating the possibility that only politicians who were previously lawyers live up to the stereotype. The stereotype of a politician is negative and insulting, but it does not necessarily mean it is false.

There is a lot of rhetoric surrounding politicians, tattooed persons, feminists, and senior citizens. These groups are all victims of several fallacies some of which are unjust and borderline prejudice.

Side Note: It is morally irresponsible to contribute to or encourage stereotyping. This and all of the supporting rhetoric are designed to slant the truth about these groups. While there are probably a few members of each group that could be the poster child for the group’s stereotype, the entire group suffers—society suffers.

Stereotypes are unfortunately derived from little to no real facts about a particular group of individuals. These same stereotypes are rarely questioned and always used in everyday conversation, and everyday marketing communication. There are, however, several methods used by responsible marketers to identify the characteristics of individuals to produce effective marketing results.

Data Modeling & Persona Development

Using demographic, psychographic and geographic information, a savvy marketer can create an accurate profile for just about anyone–including politicians. Information is gathered from various sources, appended and associated with the basic contact information for every individual in a marketing list. This extended information is used to identify specific segments and unique characteristics within each segment. There are several mainstream sources for this information, most of which originates from U.S. Census data and individual surveys. Not every piece of information is available for every individual. This is when marketers rely on data modeling techniques to “fill in the blanks.”

Two common approaches to deriving missing information are linear and logistic regression. These modeling methods use information from other records in a marketing list to “predict” and populate missing data. While not 100% accurate, it is more effective than using “default” or “generic” information–as with the use of the broad net approach of stereotyping. At the end of the day, the goal is to develop a persona for the purpose of creating a message strategy to communicate on a one-to-one level with each and every person in a marketing list–the target audience.

A target audience is comprised of many different personas. Some with tattoos, others are politicians… but all are consumers.

An inexperienced marketer’s approach of stereotyping will exclude many individuals likely to want and/or need a particular product or service. Effective marketing begins with sound data modeling, and a complete understanding of the various personas contained within your marketing list. Stereotype-driven marketing can only be produced for the masses. True one-to-one marketing requires each and every communication to be timely, relevant and understood by the recipient. Speaking to each individual at a level he or she can understand gives the best chance of a marketing communication transitioning from conversation to communication.

 

 

References

Hudson, Karen (n.d.). Tattooed & Pierced – Breaking the Stereotype. Retrieved March 16, 2009, from About.com website: http://tattoo.about.com/cs/articles/a/break_stereotyp.htm

Moore, B. N., & Parker, R. (2007). Critical Thinking, 8th Edition. Boston, MA: The McGraw-Hill Companies senior citizen. (n.d.). The American Heritage® Dictionary of the English Language, Fourth Edition. Retrieved March 16, 2009, from Dictionary.com website: http://dictionary.reference.com/browse/senior citizen

Wallflower (2007). “Feminist” is not an insult. Retrieved March 16, 2009, from ProgressiveU.org website:http://www.progressiveu.org/010616-feminist-is-not-an-insult

 

 

What is Advertising’s Role in Business?

20 Friday Jul 2012

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Sometimes we forget basics. Advertising as a non-personal, paid communication about products (Arens Schaefer, & Weigold 2009). Advertising has an important role in business. Without advertising, many great products would be the world’s best-kept secrets.

Advertising allows businesses to ‘spread the word’ about their products and services.

Sometimes the message is designed for the masses, and in other cases a more strategic approach is used to deliver advertising in a more controlled environment. Advertising gives businesses a competitive advantage. Businesses use different forms of advertising leveraging various media to raise public awareness regarding their products. Advertising is the only way for businesses to tout their product’s uniqueness and differentiate themselves from their competition.

Advertising can take many forms. Each form, method, or technique can be used across several simultaneous marketing channels and advertising conduits. For example, comparative advertising as part of a marketing campaign can run concurrent in print, on television, radio, and the Internet. Advertising is one part of a cohesive marketing mix. Specifically, advertising falls under “promotion”—one of the 4 Ps of the marketing mix. Businesses are constantly seeking new ways to advertise.

References:

Arens, W., Schaefer, D., & Weigold, M. (2009). Essentials of Contemporary Advertising. McGraw-Hill Irwin, New York.

Watch Your Language

30 Thursday Dec 2010

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Successful marketing communication requires a strong understanding of the language of the intended audience. Never assume that a whimsical or clever catch-phrase or slogan will be understood by everyone. Language is an evolution of culture, and cultures are geographically bound. Therefore, language is a unique representation of culture in a specific time and location. Language is mostly thought of as spoken words with inflection, tone, and pronunciation linked to a country, state, or region. Variations of language within the same culture are separated by a historical timeline.  Hath, henceforth, and hither were commonplace in a Shakespearean play. These words would disrupt and confuse a conversation in a modern day culture.

From Old English through Middle English and into Modern English, sometimes referred to as the Queen’s English, cultural changes influenced language. Alterations of dialect, such as pronunciation, were a direct result of the separation of societies into culturally common groups. The wealthy were educated and pronounced every word with accuracy. The lower class societies could not afford books or to properly educate their youth. As a result, a variation of the language was evolved—influenced by culture. While the words were identical, the pronunciations were radically different. History can have an intense effect on language (Ellis-Christensen, 2009).

Over the past 1000 years, England has hosted many cultural changes with accompanying languages. The United States, a young country by comparison, has spawned many variations of its own language. Derived from the Queen’s English, American English has morphed into the many dialects we use today. We have more variations of language spread across many regions within our borders than ever before. The southern states are recognized as a culture with a slower, more deliberate, pronunciation of our modern vocabulary. Extra syllables are sometimes added as well as vowels accented to create the slow southern drawl we have come to associate with southern cultures.

The pronunciation of our American English vocabulary is bound to geographic regions in our country. There are subtle differences in speech between North Carolina, Tennessee, and Virginia. Individuals from this part of the country can identify a person from one of the other southern states. The New England states have a vernacular all its own. New York has New England and Canadian influence in the northern counties. The boroughs of New York City each enjoy a variation of the New York recognizable accent.

New York, like many other diverse densely populated regions in our country, has their own language. Once again, culture influences the evolution of these languages. A stoop is the Brooklyn word for the front stairs of a building. Dogs are attracted to and a fireman would attempt connecting a fire hose to a Johnny pump. Most of New York City uses the plural of you—yooze.

The United States has managed to incubate language more granular than that of a single culture. From cultures, through societies, and down to individual neighborhoods—language is altered and molded to be unique. Words are pronounced differently and new words are formed as a way to express independence from other cultures. Society affects language. Social boundaries are blurred as schools host multilingual classrooms (Budach & Rampton, 2008). Students from many cultural and ethnic backgrounds find common ground by developing a language unique to their social environment. A variation of language is created by the melting pot of several cultures proving once again that our cultural background forges our language.

Every country has a rich history of language and culture. As long as cultures change and societies are born, language will be as unique and versatile. While the base language for each country can be linked to a culture, societies and even neighborhoods can be responsible for the many variations of a single language. Words, expressions, and non-verbal communication are all part of the language with which we communicate. Our cultural background affects our gestures and reactions as much as our dialect and inflection. Communication is defined as, “Any process in which people share information, ideas, and feelings” (Hybels & Weaver III, 2007). Not only is language influenced by culture, but communication in general. Marketing communication should be indigenous. For your next marketing campaign–watch your language!

References

Budach, G. & Rampton, B. (2008). Language in late modernity: Interaction in an urban school. Language in Society, 37(4). p. 600. Retrieved April 4, 2009, from ProQuest Direct database.

Hybels, S. & Weaver, R. (2007).  Communicating Effectively.  Boston, MA: McGraw Hill Companies, Inc.

Leila, M. E. & Goodman, J. E. (2008). A Cultural Approach to Interpersonal Communication. Language in Society, 37(4). p. 619. Retrieved April 4, 2009, from ProQuest Direct database.

A Mediated Culture

23 Tuesday Nov 2010

Posted by in Marketing Philosophy

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Mass media has a direct affect on modern culture. This is especially true in the United States where the majority of mass media originates. The moods and attitudes of our society are influenced by messages delivered through mass media channels. Mass media and advertising affect our actions, thoughts, and values. We are at the point where mass media creates and reflects our culture–a mediated culture.

Society controls mass media and vice-versa

A look back through the history of our society will reveal that we were not always influenced by mass media. This is due largely to the fact that our current level of media saturation has not always existed. Television, the most popular mass media medium, was less predominant in the 1960s and 1970s. Even if you were one of the fortunate families to own a television set, only three main channels existed. Additionally, a few public broadcasting and independent stations were in operation. Radio and television shows in the 1960s were targeted to an audience with very high moral values. The audience demographic consisted primarily of two-parent, middle-class families. The programming was a reflection of everyday life. Families living three decades ago would never have tolerated a reality show. Television shows such as, “Leave it to Beaver” was a representation of actual middle-class life in the early 1960s. The same families gathering in front of a television set to watch a 1960s situation comedy would have never accepted the programming of today. Our moral values in the early days of television dictated content and influenced advertising. We controlled mass media by our level of acceptance.

Still photography, motion pictures, telegraphy, radio, telephone, and television were all invented between the years 1860 and 1930. Mass media emerged into a capitalization of the leisure industries to eventually become the dominator of mental life in modern society. Adolf Hitler used radio for propaganda sparking concern that mass media could be used for mind control. Early studies of mass media by sociologists proved that media effects were direct and powerful. However, the level of influence on an individual depended on certain factors such as class and emotional state.

C. Wright Mills defines mass media as having two important sociological characteristics: first, very few people can communicate to a great number; and, second, the audience has no effective way of answering back (The Power Elite, 1956). The introduction of the internet into mainstream mass media has changed communication into a bidirectional process. Responding to email advertisements and answering messages in a chat room change Mills’ definition of mass media. The internet reaches a broad audience but has less of an impact on shaping society.

The majority of research in the 1960s was concentrated on television. Television was believed to be the most pervasive medium. The Mass Communication Theory provides research on the cultural quality of media output. D. McQuail identifies cross-media ownership, and the increasing commercialization of programming by a few select large corporations as a pattern of control. The conflict perspective aligns with this theory.

Media output is controlled and regulated by government. History has shown restrictions ranging from complete censorship to a lighter advisory regulation.

Everyone agrees that mass media is a permanent part of modern culture. The extent of the influence mass media has on our society is the cause of much debate. Both legislature and media executives combine efforts and produce reports showing that mass media is not responsible for shaping society. Sociologists and educators debate these findings and provide a more grounded, less financially influenced theory. Sociologists have three perspectives on the role of mass media in modern culture. The first, limited-effects theory, is based on the premise that people will choose what to watch based on their current beliefs. According to a study by Paul Lazarsfeld, media lacked the ability to influence or change the beliefs of average people (Escote 2008). Individuals living through the early days of mass media were more trusting of news stories. This is evident in the famous radio broadcast, “War of the Worlds.” A startling one out of six people believed we were being invaded by aliens. While the limited-effects theory, also known as the indirect effects theory, was applicable 40 years ago; society is not as naive today. Competing newscasts give us the opportunity to compare stories and accept only what is common between them. Unless the “War of the Worlds” was carried on every major mass media station, society today would recognize it as fiction. Even then, we would be skeptical until our President addressed the nation.

The class-dominant theory argues that the media is controlled by corporations, and the content–especially news content–is dictated by the individuals who own these corporations. Considering that advertising dollars fund the media, the programming is tailored to the largest marketing segment. We would never see a story that draws negative publicity and emotion to a major advertiser. The class-dominant theory in a newsroom extends beyond corporate control. A journalist with a specific agenda can alter or twist a story to suit their own needs.

The third, of the three main sociological perspectives, is the culturalist theory. As the newest theory, the culturalist theory combines both the class-dominant and limited-effects theory to claim that people draw their own conclusions. Specifically, the culturalist theory states that people interact with media and create their own meanings. Technology allows us to watch what we want and control the entire experience. We can choose to skip certain parts of a horror movie and even mute content on live news casts. People interpret the material based on their own knowledge and experience. The discussion forums in an online classroom is one example of the culturalist theory. Although all the students read the same text and study the same content, each student produces a different view based on experiences outside of the classroom. The result is a widely divergent group of posts and many opposite opinions open for discussion.

The Functionalist Perspective

Functionalists believe that mass media contributes to the benefit of society. Charles Wright (1975) identified several ways in which mass media contributes to creating equilibrium in society. He claims the media coordinate and correlate information that is valuable to the culture. The media are powerful agents of socialization. Through the media, culture is communicated to the masses. Serving society through social control, the media act as stress relievers which keep social conflicts to a minimum.

The functionalists idea of equilibrium is evident in news broadcast as well as late night drama programs. In both instances, all human acts lacking morality are reinforced by showing them as unacceptable and wrong. Crimes, such as murder, robberies, and abuse are shown as deviant behavior. Mass media make our world smaller. People gather in groups to watch, they talk about what they see, and they share the sense that they are watching something special (Schudson 1986).

Functionalists view mass media as an important function in society. Mass media can influence social uniformity on scale broader than every before. The internet reaches more individuals in most social groups more often than television or radio. Mass media has been accused of creating dysfunction. Postman (1989) argued that popular media culture undermines the educational system. Claims have been made that there is a link between television viewing and poor physical health among children.

The Conflict Perspective

Conflict theorists believe that mass media is controlled by corporations with the intent of satisfying their own agendas. News casts and sitcoms are not designed to entertain and inform, but rather to keep our interests long enough to deliver a well paid advertisement. The conflict perspective views mass media as a conduit for social coercion. The controllers of mass media use programming and advertising to influence certain social classes. Trends are introduced through mass media and mimicked by the public lending credence to the theory that coercion, domination, and change in our society is partly due to television, radio, print, and the internet. From the conflict perspective, modern mass media are instruments of social control (Sullivan 2007). While functionalists and interactionists agree that mass media is necessary, followers of the conflict perspective view mass media as a necessary evil. As instruments of social control, mass media plays an important role in shaping our society.

The Interactionist Perspective

From the interactionist perspective, mass media is used to define and shape our definitions of a given situation. This perception of reality seems to evolve as our everyday values and cultures change. A definition of the average American family from the 1950s and 1960s is drastically different from what we expect today. The mass media portrayal of family life has always been a benchmark to compare our own lives and successes. Mass media serves as our social acceptance gauge by providing symbols representing what is proper and what is unacceptable. The interactionist perspective shares similarities with the functionalist perspective. Both theories agree that mass media symbolizes a perfect society that individuals strive to emulate. Celebrities, athletes and other role models promote clothing, brands, and behavior while sometimes encouraging values and moral guidelines.

Mass media is defined as “the channels of communication in modern societies that can reach large numbers of people, sometimes instantaneously (Sullivan 2007).” Only recently has technology been advanced enough to realize so many methods of communication. Television, radio, and print were the original members of mass media. The internet brought chat-rooms, email, and the idea of social networking to an already media saturated society. Television and radio represent “push” communication. The consumer has little choice over the content streamed through the cable and onto their television. They can choose to change stations or turn off the television. The internet, specifically web sites, can only be delivered to a consumer if they have made a request to “pull” the content. Mass media has completed a paradigm shift from content and programming we chose to accept, to content designed to shape our society. In the 1960s and 1970s, society controlled mass media. Today, mass media has the single largest impact on our culture.  Guidelines for behavior, major beliefs, and values are all influenced by mass media. Every sociological theory concludes that mass media affects modern culture–a mediated culture.

References

Escote, Alixander (April 2008). Limited Effects Theory. http://www.socyberty.com/Sociology/Limited-Effects-Theory.112098

CliffsNotes.com (July 2008). The Role and Influence of Mass Media. http://www.cliffsnotes.com/WileyCDA/CliffsReviewTopic/topicArticleId-26957

Sullivan, Thomas J. (2007). Sociology: Concepts and Applications in a Diverse World. Boston: Pearson Education, Inc.

Wright, Charles (1975). Mass Communication: A Sociological Perspective.

Schudson, Michael (1989). The Sociology of News Production. Sage Publications, Ltd.

Leon-Guerrero, Anna (2005). Social Problems: Community, Policy, and Social Action. Pine Forge Press

Mills, Charles Wright (1956). The Power Elite. Oxford Press

Is Apple too good to use market research?

27 Tuesday Apr 2010

Posted by in Marketing Philosophy

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Apple Computer is basking in the warmth of success following the recent release of yet another technology widget—the Apple iPad. Apple’s CEO, Steve Jobs, has on several occasions downplayed the value of market research. Jobs argues that you cannot ask consumers to decree the next big thing. Moreover, customers cannot see the value or need until they see the product (Breillatt, 2010). While this philosophy has served Apple well, there are many aspects of marketing research that could assist in marketing decisions post innovation.

Consumers do not know what they do not know

Considering market research is as close as a marketing manager might get to a crystal ball, it stands to reason that without it many businesses are shortsighted. Conversely, Apple continues to lead the industry in innovative products without leveraging market research, but at the risk of alienating their cult following by not being prepared to accommodate the long lines of hopeful buyers at their retail stores. A blend of secondary data accompanied by information captured using a causal design marketing research campaign would have given Apple an idea of the number of units to produce and deliver to the individual retail outlets.

At the very least, and in lieu of market research, Apple should have eavesdropped certain social media channels to get a feel for the anticipation surrounding the release of their first generation iPhone. Apple aficionados were encouraged by the media to join a waiting list (Paulk, 2007). The waiting list idea was a reactive approach to predict the number of clients to expect on the launch date. The problem with this, of course, is that the information was collected too late to affect the manufacturing schedule. As a result, thousands of Apple iPhone early-adopters were disappointed.

Apple could enjoy greater customer satisfaction by using market research to help determine a branding and positioning strategy. It is true that many consumers are loyal to the brand, and will simply buy the products because Apple designs them. However, the iPhone and iPad cross into other industries and compete with well-established brands. A marketing manager at Apple must identify a target market before a campaign strategy can be designed. Consumers are fickle—especially technology enthusiasts.

Apple could use market research to determine everything from a branding and positioning strategy to a target market for their new iPad. An Apple iPad has been described as something between a laptop and a smartphone (Stone, 2010). Without running the risk of leaking intellectual property by using a focus group or conducting test marketing, Apple could employ a descriptive research study to better understand their market. Using experience surveys to current users of smartphones and non-apple laptops would provide information for a marketing manager to use to establish a message strategy for promoting the new trend-setting iPad device.

The what-if logic used in a causal design marketing research campaign could provide an early indication of the percentage of consumers willing to abandon their current devices for Apple’s new technology. The results of a survey based on the “Hierarchy of Effects” model can help isolate the hand-raisers from the naysayers and ultimately produce a roadmap for developing a marketing mix. Although the product has been determined, a well-informed marketing manager decides price, place, and promotion.

The emerging technology associated with the Apple iPad is in itself an environmental factor. A technology dependent society has directed cultural trends in favor of the Apple iPad. Without competition, Apple can take the same whatever-the-market-will-bear approach that was used to introduce the iPhone; or perhaps market research might reveal a better option is a skimming strategy. The iPad has enough differentiation to justify a higher price.

Market research would help a marketing manager determine the best positioning strategy for the iPad. Feedback from a needs analysis could support a decision to position the iPad using a use or application strategy. The new device offers a combined functionality of an Amazon Kindle, personal digital assistant, and a laptop. Touting the advantages of combining all of these capabilities into a single device would be the first step in establishing an application strategy (Burns & Bush, 2008).

Identifying the target market is one of the most important steps in ensuring the success of a product. Apple might have their pulse on their target audience vicariously through the visionaries within their own organization. However, not everyone is ready to abandon his or her smartphones, laptops, and e-book readers for the next great Apple innovation. Apple can use marketing research to make better marketing decisions without jeopardizing the entrepreneurial spirit of their innovation team. Even a marketing manager for Apple Computer can benefit from a well-defined marketing research strategy.

References

Breillatt, A. (2010). You can’t innovate like Apple. [Electronic version]. Pragmatic Marketing. Retrieved April 10, 2010, from http://www.pragmaticmarketing.com/publications/magazine/6/4/you_cant_innovate_like_apple

Burns, A. & Bush, R. (2008) Basic Marketing Research. Pearson Prentice Hall. New Jersey.

Paulk, W. (2007). Get on the iPhone waiting list! Retrieved April 26, 2010, from http://ezinearticles.com/?Get-­on-­the-­iPhone-­Waiting-­List!&id=591466

Stone, B. (2010). With its tablet, Apple blurs the line between devices. [Electronic version]. New York Times. Retrieved April 26, 2010, from http://www.nytimes.com/2010/01/28/technology/companies/28apple.html

Advertising – Then and Now

09 Tuesday Mar 2010

Posted by in Marketing Philosophy

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Arens, Schaefer, & Weigold (2009) developed a timeline indicating the first known advertising message was created in 3000 BC. Although the actual message bore a closer resemblance to a classified advertisement, the evolution of advertising had begun. The nonpersonal, persuasive, structured communications we recognize today are a progeny of advertising efforts spanning the past few centuries. Early advertising and distribution was limited to a small geographic area surrounding a vendor. Everyday advertising, such as a merchant’s signage, used symbols instead of words to indicate the type of business and product or services offered.

During the preindustrial age, advertising was reaching far beyond the simple signage and word of mouth of local merchants. Handbill, posters, and signs became popular formats for advertising. The printing press was one of the most important developments in the history and evolution of advertising.  By the middle of the 1600s, the printing press was enjoying the bicentennial of its introduction by Johannes Gutenberg. Gutenberg’s invention was one of three major developments that can be attributed to the birth of modern advertising (Arens, Schaefer, & Weigold, 2009).

The first newspaper advertisement appeared in 1650. While a large percentage of the population could not read, the local newspapers were becoming recognized as a medium for delivering advertising to the masses. Merchants, vendors, and manufacturers used newspapers to extend their marketing boundaries beyond the small concentrated areas surrounding their physical locations. Print advertising first appeared in America within the pages of the Boston Newsletter–published in 1704. Ben Franklin is responsible for creating the structure and format of print ads. His techniques for making print ads more legible and easier to understand continue to be used in modern print advertising. Ben Franklin was the first in America to recognize the need to large headlines, white space, and illustrations in advertisements.

England had enjoyed several hundred years of advertising before the American colonies were born. English author, Samuel Johnson, recognized the oversaturation of advertising. In 1758, Johnson insisted that in order to stand out, advertisers needed to embellish their messages. Puffery, as recommended by Johnson, is the exaggeration of the benefits or capabilities of a product or service in an advertisement. While an accepted practice of the industrializing age, puffery is not tolerated in modern advertising.

The industrializing age began in America in the early 1800s—nearly half a century behind the Industrial Revolution in England—introducing machines to mass-produce goods. The sudden surplus of goods and products exposed a need for aggressive marketing and broad saturation advertising. Retailers assumed the responsibility of advertising to the consumers. The industrialization age was followed by the industrial age and once again the face of advertising changed. Advertising during the industrial age—recognized as the first seventy-five years of the twentieth century—focused on the promotion of consumer-packaged goods.

The postindustrial age of the 1980s through 1990s faced the challenges of marketing to an environmentally sensitive society. Demarketing techniques were used in advertising in an attempt to make consumers aware of a company’s environmentally responsible manufacturing and supply-chain methods. Consumers today are not only better informed about products and services, but also the companies that produce them. The modern consumer will research a company and absorb feedback from word-of-mouse channels such as blogs and forums to offset the positive-only hype from advertising. The green movement is represents a marketing potential of 500 billion dollars (Hopkins, 2009).

Modern advertising trends are constantly changing. Mostly driven by advances in technology, advertising media is becoming broader reaching and less expensive to leverage. The Internet has evolved into an advertisers low-cost playground. Email campaigns are less expensive to produce than traditional print campaigns. The Internet also allows a more strategic direct and targeted approach to advertising. Email is a less formal and more personalized alternative to traditional direct mail campaigns.

Regardless of the message and media, advertisers are spending more time identifying their target audience. The recent economic downturn has caused consumers to tighten their belts. Recovery takes longer than downturn (Libey, 2004). During the recovery, consumers strive to become better educated about the products they purchase. Advertising, using every popular medium, to a target audience in the only way a business can stand out on the very crowded playing field with their competitors. In modern advertising, every marketing dollar counts. A savvy marketer will use several techniques, such as predictive modeling, to select a target audience for a specific product or service. The marketing message, advertisement, and call to action will be written specifically for the target audience. Identifying a target market and creating an advertising campaign with relevant content and a compelling message positions a marketing manager for the highest likelihood for success.

The advertising industry has been redefined several times. The types of advertising agencies within the industry have grown. While there have always been local, regional, and international specialists within the industry, niche or creative boutique type agencies are beginning to become prevalent. Many companies are using in-house departments for concept, design, and creative while relying on traditional agencies for media placement. The purpose and definition of advertising has remained consistent across each ring of growth.

References

Arens, W., Schaefer, D., & Weigold, M. (2009). Essentials of contemporary advertising. McGraw-Hill Irwin. Boston.

Hopkins, D. (2009). Riches in niches: Connecting to true browns. Retrieved February 8, 2010, from http://www.targetmarketingmag.com/article/riches-niches- connecting-true-browns-403940/1

Libey, D. (2004). Signs of real economic recovery. Retrieved February 6, 2010, from http://www.targetmarketingmag.com/article/signs-real-economic-recovery- 28914/1

Does it make a sound?

09 Monday Nov 2009

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We have all heard the basic philosophical question, “If a tree falls in a forest and no one is there to hear it, does it make a sound?” Similarly, there is a question posed to marketers, “If a campaign is created and deployed and the product is not relevant to the audience, will there be a response?”

The marketing philosophy question is much easier to answer. Never expect a response from an audience not properly identified as having a propensity to respond. Direct marketing is no place for the faint-hearted. Leave the scatter gun approach to marketing for the corporate branding saturation marketing teams.

Spend time researching and understanding ways to communicate with your target audience. Ask yourself, “Who are my potential customers?” Every market segment has their own preferred method of communication. Not only do we marketers need to use the appropriate conduits when communicating, the content within the communication should be relevant.

Do I need to market?

08 Sunday Nov 2009

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There is a question that resonates, especially during financially challenging times, regarding the importance of marketing. Many people ask, “do I really need to market to my existing customers?” Remembering, of course, that if you are not in constant communication with your customers–someone else will be. My response to the question of maintaining a strong retention-based marketing program is this…

You only need to market to the customers you want to keep!

Retention programs are more important now than ever before. It is your existing customers that will carry you through the economic challenges.