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Early Results on Holiday Spending

December 7, 2009

Reports of consumer spending over the Thanksgiving weekend, including Black Friday, noted that overall spending was slightly above last year’s.  However, before we get all giddy, the numbers also showed that spending per person was down quite significantly.

It seems that many were taking advantage of discounts not necessarily to buy fun gifts for those on their lists, but rather were buying more expensive necessities that they couldn’t afford without the discounts.  For example, sales of vacuums are up.  As are towels and sheets.

Sure there are plenty of LCD TVs moving, but entry-level sets can be had for 50% of what they were last year.  So the splurge is relative.

For current marketers, the implication seems to be that consumer (and most business) purchases will remain in the arena of “gotta have” vs “wanna have.”

Spending is slogging back – so long as interest rates and inflation don’t begin to spike.  Your marketing message ought to emphasize the pent-up demand for obtaining the items that keep things running.  Greater efficiency is nice too, but not at exorbitant cost.  Some reasonable upgrades will makes sense too.

We’ll see how things develop.  But start making plans to come out from your hiding places and keep it down to earth.

Posted by: Steve Banis


Want to Know More about Albany Marketing firm Burst Marketing?
Visit us at www.burstmarketing.net

 

It’s What You Say

July 12, 2009

This marks the 1 year anniversary of the Burst Marketing Blog. If you’re still here, it’s due to one thing – content.

Content is king, now more than ever. In the May 29th, 2009 edition of the Albany Business Review, I mentioned that distribution of content is separating ever more quickly from the production of content.

Traditional electronic and print content mediums are joined by mobile broadcast and by websites, blogs, social media outlets, email, video and audio streaming and other online content distribution channels to blur the focus of where people get their content.

As the where becomes more fragmented, the what becomes the central hub of your communication plan.

To put a spin on a piece of advice mom may have once given you…

‘it’s not how you say it, it’s what you say.’

Targeting is still important – very important. But the reasons for that and the execution of it are different than they used to be not so long ago. Targeting now comes first in the form of content and next in the area of placement. Cost per 1000 or GRPs are too misleading today to be reliable measures of spending effectiveness.

Your target may be listening or watching something one moment and then seconds later be somewhere else. Trying to hit them in a single spot is like tracking a mirage in the desert. Don’t try.

Content is the one constant you can control.

Posted by: Steve Banis


Want to Know More about Albany Marketing firm Burst Marketing?
Visit us at www.burstmarketing.net

 

Phone…Part II

May 3, 2009

Consumer telemarketing has achieved the unfortunate reputation achieved by used car salesman, carnival game operators, and Bernie Madoff.

However, to reach the communities you’ve built over time – your customers, prospects and other contacts – using voice to deliver your message can be both courteous and extremely effective.

The people on your lists expect that you will engage in ongoing communication with them by virtue of your relationship. So you’ve already received their permission to contact them. That makes you compliant with CAN-SPAM and perfectly OK to pick up the phone.

Boston College did just that.  Well, sort of.

Kickoff

The Boston College football team had a strong 2007 season, eventually going on to its first ever Atlantic Coast Conference (ACC) title game.  The game was set to take place on December 4, 2007 in Jacksonville, Florida.

Great news.  Except that the Eagles clinched their spot only two weeks before the ACC Championship game.  BC had just two weeks to sell as many tickets as possible and ensure solid support for a game taking place 1,160 miles away.

They needed to drum up support from alumni and get fans to travel down . And they needed to do it quickly and cost-effectively.

Nothing like the spoken word

Boston College used an automated voice-messaging solution to target more than 115,000 season ticket holders and alumni.

They had their star quarterback Matt Ryan record the message, explaining the historic event and the sense of urgency to participate – and then offered up a call to action.  Even if fans couldn’t come, they asked them to donate their tickets to a Jacksonville-area charity to help fill the stands.

The response was immediate, with ticket sales flying through the roof on the day of and the day following the message’s release. In all, close to 5,000 tickets were sold, with more than 400 purchased and given to charity.

In the end, Boston College was able to ensure it was well represented in Florida and managed to profit $200,000 from a campaign that cost $10,000 to launch.

The phone is alive and well my friends – it’s just living a different existence in your marketing mix.  It’s extremely cost effective.  And it can work very well when delivering a timely message.

Have a particularly important piece of news to deliver?  A once in a lifetime sale?  A special event you don’t want people to miss?

Use voice.  But don’t use it too often.  Like endless jabbering from the person seated next to you on the plane – it loses its charm quickly. Then it’s just annoying.

[case study was reported on Marketingprofs.com]

Posted by: Steve Banis


Want to Know More about Albany Marketing firm Burst Marketing?
Visit us at www.burstmarketing.net

 

Turn A Competitor’s Strength to Your Advantage

March 15, 2009

We’re always on the lookout for interesting examples of companies that won’t take no for an answer.

Friday, Mary Ann Rogers told me about a recent national promotion she caught wind of that seems to embrace that spirit. It seeks to use a competitor’s momentum and strength against itself. Like in the art of Jujitsu.

This type of “we try harder” campaign may spark an idea for your business as you fight to win in the economic jungle.

[from Mary Ann Rogers]

A new twist on Coke vs. Pepsi

I was reading an article on Bnet.com today and was impressed with the recent and bold marketing efforts of Coca Cola. According to Wikipedia, CC is the world’s largest beverage company and also one of the largest corporations in the United States.

I am the biggest Diet Coke fan on the planet. It’s true. My fiancé fancies it an addiction, which might explain the shaking and headaches around lunchtime everyday that are only quenched with a deliciously satisfying sip of DC.

But I take solace in the fact that I am not alone in my soda “addiction.” Millions of consumers spend millions of dollars each year on the sugary good-stuff, even during the recession. We need our fix, people!

Recently, Coca Cola decided to get aggressive in their marketing tactics and threw down the beverage gauntlet to their largest competitor, Pepsi. Coca Cola isn’t satisfied with the limited amount of market share their lemon-lime soda, Vault, compels in the citrus beverage arena, especially since Pepsi’s Mountain Dew, is the market leader.

The Bnet article says, “According to Beverage Digest, juggernaut Mountain Dew commands more than an 80% share of the citrus segment, while Vault holds about 4%.”

Riding your competitor’s coattails…to sales

Yikes – that’s a lot of ground Coke needs to make up. But they’re not daunted by the task at hand and are willing to try anything to get the job done.

As a result, Coke has launched the “Don’t Dew It” campaign, which gives every purchaser of Pepsi’s Mountain Dew, a Coca Cola Vault for FREE!

“Simply put, it’s designed to drive Vault consideration and recruitment among Dew drinkers,” said Scott Williamson, a Coca-Cola spokesman. “We believe that when Dew consumers are offered the opportunity that they’ll like Vault better.”

This tactic is an excellent way to generate goodwill, especially during a recession, and get the brand’s identity out to the public. Coca Cola definitely knows what they’re doing – and its aggressive marketing warfare.

That is the mindset business owners should adopt right now! Even if the competition is greater, richer, more popular, etc. – so what? This economy is leveling out the playing field and opening doors for smaller businesses to seize larger chunks of the market.

So when it comes to marketing your business – be bold, take no prisoners and don’t give up!

Posted by: Steve Banis and Mary Ann Rogers


Want to Know More about Albany Marketing firm Burst Marketing?
Visit us at www.burstmarketing.net

 

Why You Need an Opinion

February 15, 2009

Recently, I saw Frost/Nixon, a good movie with two outstanding performances. Watergate is just another pleasant memory from the gift that was the 1970s.

I’ve already written about the parallels between the economic conditions in the 70s and those of today. But the round the clock watch of Congress negotiating how to spend $800 billion of our money reminds me how perception takes hold in America today.

And remember, perception is reality.

Back in the days of the Nixon presidency, Americans got their news from Walter Cronkite and the daily newspaper. The U.S. mail was the primary way to send and receive written information. Basically, the breadth, depth, and speed of information was regulated by the means of distribution.

Opinion on Steroids

Cable news changed that. Now, instead of waiting for the evening news or the morning paper, news was availalbe 24/7. And the first Iraq war put CNN and Bernard Shaw front and center.  More information. More quickly. Opinions forms overnight.

Then the Internet. At first we could only view printed stories from CNN (and some others) and the big dailies. It spread like wildfire. And the evolution of Web 2.0 – interactivity – turbocharged it all.

Blogs, community boards, chat forums, IM, and more have put the ‘news’ in the hands of everyone with a computer. YouTube made everyone with a cellphone an on the scene reporter.

Quite simply, there is really no such thing as an exclusive story anymore. Everyone reports the news – and it comes in pieces.

That’s why news has been replaced by commentary. There’s just so much information streaming 24/7, all chopped up in little bits. Someone needs to present the big picture…and help you form and opinion.

What does it mean to me? That’s what people ask. They want your opinions. They’ll process them – some quickly and other more deliberately. Then they’ll make up their minds.

Don’t let competitors shape your customer’s opinion

Today’s TV and radio personalities – talking heads, pundits, spinmasters – are paid to help shape your opinion. Some are pretty good at it too. So are some of your competitors. You know who they are.

You’ve got to have an opinion. When you craft your core marketing message – the clear definition of who you are – be sure to clearly delineate your expertise and the additional reasons why people should believe you.  Your ongoing marketing communication should reinforce your expertise with easy to understand issue summaries, opinions, and calls to action.

News is no longer news. Opinion has taken its place. Which shapes perception.

That’s your reality.

Sure there’s something very troubling about this evolution. It’s just like health care and retirement planning, the onus is on the consumer to make decisions for themselves.

But first they’ll need your opinion.  Build your platform and give it to them.

Posted by: Steve Banis


Want to Know More about Albany Marketing firm Burst Marketing?
Visit us at www.burstmarketing.net

 

Are You Easy?

February 8, 2009

My family took me to dinner for my birthday the other night.  Everybody in my circle knows we’ve opened a new office so most of my presents were kinda work related.

My son thought otherwise. He got me a new CD that he thought was “daddy-ish” – new age piano. Very zen. Clearly my boy thinks I need to take a chill pill.

After dinner I thought I’d break out the new CD and listen with my coffee and leftover cake.  I’m not going to go into details – but the 10 minute fight I had with the CD packaging did not leave me feeling very zen. If the music industry wants to know why CD sales have dropped so precipitously, they can add terror packaging to music downloads.

They made it impossible for me to enjoy the gift of my new CD.

Many businesses are packaged like that CD. They make it nearly impossible to enjoy the experience of doing business with them. A couple of months ago I wrote about Microsoft’s insanely ineffective inbound call center that turns off prospects even before they can get information about their products.

Companies who have a virtual monopoly are notoriously hard to do business with. Just mention the names of Time Warner, Verizon, or National Grid here in Albany and people will instantly shoot you dirty looks.

Open you door – wide

The ease of doing business is one of the key drivers of winning new customers and keeping you existing customers satisfied and loyal. I’m old enough to remember the first bank ATMs.  Before ATMs, everyone stood in line for all of their banking business. ATMs and credit cards are the reason no one seems to carry cash anymore – you can grab 50 bucks almost anywhere.

A Self service checkout at the local supermarket gives you a sense of empowerment because you perceive a greater sense of control over the transaction.  Even some offices of the Department of Motor Vehicles – long the poster child for poor customer service – allow you to make an appointment to take care of your needs without standing in line for hours.

Don’t make the mistake of forcing customers and prospects into a single path to accessing your products and services.

Take a look in the mirror and act accordingly

Does your website provide clear contact and customer service information?

Does your phone system let people easily talk to the person they want to reach?

Do prospects have to get company or product information ONLY from a salesperson?

In this 24 x 7 world, customers will do business when they want, where they want, and with whom they want.  Your job is to be sure to make your entrance way as wide as possible.

Posted by: Steve Banis


Want to Know More about Albany Marketing firm Burst Marketing?
Visit us at www.burstmarketing.net

 

Obama Therapy

January 25, 2009

The endless drone of monumentally bad news and unfathomable events has left so many Americans, no, citizens of the entire world, numb.  It seems as if 2 or 3 billion people are suffering from a form of PTSD – except the trauma goes on.

I don’t think its a far stretch to say that the population in general has reached a state of clinical depression.  An erosion of hope will do that to you.

That brings us to Barack Obama.

It doesn’t really matter what side of the political spectrum you’re on. There’s no denying the election of and inauguration this week of Barack Obama has had a therapeutic effect here at home and around the world – even if its temporary

That’s because the restoration of hope makes people feel better.

For a brief moment, we witnessed nearly all Republicans and Democrats put aside their rooting interests to soak it all in.  Sure bluebirds and butterflies aren’t flying around as world peace breaks out.

But did you notice the faces of the throng on the Mall?

Did you see the faces of people as they celebrated President Obama’s inauguration in dozens of countries around the world?

Did you hear the the words of worldwide political leaders -  those we perceive as both friends and foes – as they optimistically, some cautiously, welcomed a new beginning to their relationship with the United States? (Except of course the most extreme nations.)

I’m not talking politics here, I’m talking human nature.

Sayings like “no man/woman is an island” and “you get more bees with honey than you do with vinegar” have their roots in effective communication and relationship building.

The world has immense challenges to face down.  Frankly, we all have immense challenges to face down, don’t we?  And in the business context – your customers have immense challenges to face and obligations to meet.  They’re suffering from PTSD too.  They need therapy.  They need hope.

Take a lesson from the symbolism offered by the Obama inauguration.  Offer leadership and hope to your customers, staff, and all those in your business community.  Don’t sugarcoat things though.  People know a phony when they see one and it’ll only piss them off.

Rather, tell it like it is and then share your vision and a real plan of action.  Ask for their help.

Then watch their faces light up.

Here’s a simple 5-step plan for your customers and your team:

  1. Tell them “We’re strong now – and you’re the reason we are.”
  2. Follow with “Nobody can stay strong forever in an economy like this without help.”
  3. Share a vision and a basic plan for how they can help.
  4. Ask to talk to them about their ideas.
  5. Listen.  Really listen.  Then Act.

Posted by: Steve Banis


Want to Know More about Albany Marketing firm Burst Marketing?
Visit us at www.burstmarketing.net

 

Where’s Your Hudson River?

January 18, 2009

So there you are. Having a cup of coffee and gazing out your apartment window at the Hudson. It’s an afternoon ritual. Instantly, you hear a loud screeching noise and a jet airplane screams past your window. Then it seems to float to a landing on the Hudson River adjacent to midtown Manhattan.

Takes your breath away.

By now I’m sure you’ve heard the story of how the extraordinary landing executed by captain Chesley B. Sullenburger II saved 155 passengers and crew aboard a US Airways flight a few days ago.

It was clear thinking and decisive action in the middle of a crisis that made this latest “Miracle on 34th Street” (according to NY Governor David Patterson) possible.

Now we should all follow his lead.

Economic chaos continues to influence the mindset of businessowners and consumers. Here in Albany, the NY Capital Region, fear and uncertainly are taking hold despite being somewhat insulated from the dire circumstances in other areas.

And again I say you may never have a better time to build your business.

A study of the economic mess accelerating from 1972 – 1974 shows the following figures:

Dow Jones Industrial Avg (from highs):    – 45%
Unemployment:                                          7.2%
Inflation:                                                  12.3%
30 year Mortgage:                                      9.8%

Now the same figures for 2006 – 2008

Dow Jones Industrial Avg (from highs):    – 45%
Unemployment:                                          7.2%
Inflation:                                                    5.6%
30 year Mortgage:                                      5.1%

The market drop and unemployment rates are bang on. But the rate of inflation and interest rates are significantly lower. (of course inflation ultimately has to be affected by over a trillion new dollars in the system.) Money is cheaper and prices are still relatively low. Business is still being done.

Do you think everyone folded up their tents in the 1970s. Certainly not. Those with clear heads and a strong vision backed them up with decisive action and created some of today’s biggest success stories.

Companies founded in the 1970s

Southwest Airlines
Microsoft
Apple
FEDEX
Oracle
SAS
Genentech

I wouldn’t have minded buying a few shares in these guys back then. Point is, amid all the doom and gloom – while your competitors are hunkering down in the corner thinking about survival – there are success stories being written all around you.

If your mindset is only about survivial then I’m afraid you may be one of those eaten in a jungle containing a few more cunning predators.

Take Action

Hone your message for the times - How will you help customers make money, save money, or save time?

Build a moat around your customers – tell them how much they mean to you and ask for their help. Same for vendors.

Target the customers of your competitors – they’re just waiting to be eaten.

Deploy a smart, targeted communications campaign to begin new conversations – Customers want answers and they need leadership.

Find others to join your community and market cooperatively.

Follow the lead of captain Sullenburger. Clear away the fog of chaos and sharpen your vision. Take decisive action. You’ll not only survive, you’ll be a hero to your customers, vendors, competitors, community, and family.

Posted by: Steve Banis


Want to Know More about Albany Marketing firm Burst Marketing?
Visit us at www.burstmarketing.net

 

Criticizing Your Competition

January 11, 2009

A major dilemma faced by salespeople in a competitive market is how they describe their competition to customers.  Too harsh, it’s sour grapes. Too meek, you risk losing control of the conversation.

I’ve always found it best to answer that question with a reasoned, light-hearted approach that draws the differences between you and them and reiterates the answer to “why you.”

Our ‘Millennial Voice’ in residence, Mary Ann Rogers seems to agree. Here’s her entry regarding negative advertising:

I have always hated the months leading up to the presidential campaigns. It’s not enough that we are bombarded to the hilt with slogans, bumper stickers, commercials on radio and TV, print ads, and yard signs begging for our vote, but add mudslinging to the mix and I’m ready to scream.

Maybe it’s my southern roots, but my mother always told me, “If you don’t have something nice to say, don’t say anything at all.” And I usually agree! Worry about yourself, I say and quit squawking about the other guy.

But I suppose negative campaigns get results; just look at how many politicians are using them. But do they work outside of politics in the world of everyday people and consumerism? Can negative campaigns have a positive effect on your audience?

Let’s look at Apple and McDonalds. These two industry giants are currently running negative campaigns, poking fun and shining an unfavorable light on their competitors.

I’m sure you’ve all seen the recent “Get a Mac” commercials featuring actor Jason Long as the hip and cool Mac, and comedian John Hodgman as the stuffy, out of touch PC. (Click here to view.) Not so subtly, PC always has a problem with his operating system or hardware and Mac’s life is always wonderfully easy. They wisely infuse humor into each commercial, so as not to anger or offend us PC users.

I found an article on Bnet.com recently that says Apple spent roughly $486 million dollars on their advertising in 2008 alone. Wow – that’s more than the gross national product of Liberia. But was it worth it? Absolutely. (Click here for full article.)

Because Microsoft waited until two years after Apple launched their negative ads to begin their own retaliation campaign, Apple was able to capitalize big time. The article claims that not only did Apple raise their ranking in the U.S. (from fourth to third this year for computer manufacturers) but they also increased their market share. The gamble paid off!

Incidentally, Microsoft’s ultimate response to Apple’s ad came with their “I’m a PC” commercials. (after the ill-fated Bill Gates/Jerry Seinfeld spots and their “blind test” Sierra operating system effort.) They feature dozens of people from around the world and all walks of life, claiming that they are not stereotypes, they are PCs and that’s ok. Not nearly as humorous as Apple’s commercials, but they get the message across. (Click here to view.)

Just this morning while I was reading the news online, making sure the world hadn’t frozen solid during the night, I saw an interesting article on CNN.com. McDonald’s has taken a note from Apple and launched their own mini-negative campaign aimed directly at Starbucks. 140 billboards have been strategically positioned throughout the city of Seattle, Starbucks’ homeland, with saying like “Large is the new grande,” and “Four bucks is dumb.” (Click here for full article.)

And while McDonald’s claims the billboards are all in fun, Starbucks is bristling at the competition, calling into question McDonald’s credibility. Ouch.  Since the campaign has only just begun, and will only be focused in Seattle, we won’t know for some time if it is effective or futile, but it will be interesting to find out.

Until then, I will continue to type away on my PC at the local Starbucks and get my kicks out of McDonald’s and Apple’s successfully humorous jabs at their competition.

Posted by: Steve Banis and Mary Ann Rogers


Want to Know More about Albany Marketing firm Burst Marketing?
Visit us at www.burstmarketing.net

 

Playing to win

January 4, 2009

Like many marketing people, I like to watch commercials. Can’t help it. Yesterday, while watching the NFL playoffs, I saw a spot from an advertiser who’s both tuned into their customers’ greatest concerns and has the fortitude to do something about it.

The Hyundai Motor Company is the world’s 5th largest automaker (Wikipedia). The Company reached this lofty position on the strength of a single marketing idea – a 10 year warranty. At the time, the Company had a poor reputation for quality and customers stayed away.

Playing To Win

But with this ‘promise’ to their customers, they took a leadership position on the question of quality.  When they announced the program, and for years after, Hyundai was the only auto company willing to back its cars with such a security blanket.

Hyundai went from irrelevant in the marketplace to a big player. Quite simply, they bet the ranch by building the entire company around this single idea. One that answered the biggest question on the minds of potential customers: Hyundai’s quality.

They were already cheaper than their rivals, but they knew it wasn’t enough. They had to vividly demonstrate their answer to the quality question in order to give consumers ‘permission‘ to buy their vehicles.

It worked big time. Now they’re trying to do it again. While much of the auto industry is fighting for survival, Hyundai is playing to win.

Hyundai’s new program – Hyundai Assurance – allows customers to return their vehicle and walk away from their loan or lease if they lose their income within 12 months of purchase.

It Takes Guts

Hyundai’s main customers are those for whom losing their jobs is a very real concern. With this program, they’re demonstrating that they understand their customer and are willing to really do something to address their concerns.  Once again, they’re trying to give people the permission they need to buy a new Hyundai vehicle.

The idea is simple – Answer the biggest question on consumers’ minds right now: “How can I responsibly buy a new car in this economy?”

They’re placing another big bet. We’ll see if it works, but boy does that take guts.  And it’s the single best example of how you can rally your entire company around your customers’ biggest concerns. If you think about it, It’s just knowing what your customer needs and giving it to them. Marketing 101. But they’re really walking the walk aren’t they?

What is the biggest question/concern on your customers’ and prospects’ minds right now? Do you have the sensitivity to tune in? And do you have the courage to do what you need to do to respond?

Or will your competitors get there first?

Posted by: Steve Banis


Want to Know More about Albany Marketing firm Burst Marketing?
Visit us at www.burstmarketing.net

 

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