I’ve always been keen about connecting science to the need of having to create “an emotional connection” or “emotional end benefit” with consumers in order to sell effectively. Lehrer details how emotion is indespensible in helping humans make sense of the “helter skelter” of every day life. Consumers seek out brands, even when they think they are not, because brands make it easier to decide at the supermarket or dealership. No doubt, this is obvious, yet what’s important here is the scientific rationale clearly linking emotions to decision making, in every area of life. So, it is science making the case that branding and marketing are required and not optional.
Key quote:
“Even when we are not conscious of our emotions they are driving our decisions.”
Check out the video, it’s a bit long, but Lehrer covers most of the important points in the book.
A recent Knowledge Networks/PDI study redefines the cost effectiveness of in-store sampling. No doubt, there is usually a lift after almost any in store sampling event.
The crucial finding from R.I.S.E. (Report on In-store Sampling Effectiveness) is that the sales lift may last as long as 20 weeks after the event.
Other key findings:
• The study also found that sampling not only increased sales of newly launched products, but line extensions and even well-established existing products, as well.
• Sampling can have a positive “halo effect” on related merchandise, lifting the sales of non-sampled products within the parent brand’s franchise.
We’ve long known the benefits in-store sampling can have on a marketing campaign, but it is beneficial to have some serious research to support this sometimes neglected aspect of marketing.
In-store sampling has been an important part of the Bedoyecta multivitamin launch in the U.S.. It’s key to note that sampling must be part of an integrated campaign and done correctly in order to yield noticeable returns — a well trained and supervised team with decent collateral and product support.
Ran into the Bill Bernbach quote below in a review of “Nobody’s Perfect”, Doris Willens’ new book on Bill Bernbach and the golden age of advertising.
“Merely to let your imagination run riot, to dream unrelated dreams, to indulge in graphic acrobatics and verbal gymnastics is not being creative. The creative person has harnessed his imagination. He has disciplined it so that every thought, every idea, every line he draws, every light and shadow in every photograph he takes, makes more vivid, more believable, more persuasive the original theme or product advantage he has decided he must convey.”
This is a crucial concept which I think is often overlooked. The status quo is to be as “creative” as possible, outdoing the competition in clevereness that rarely delivers the original idea in a potent and motivational manner, leaving the consumer flumoxed at best and usually untouched. Like a private joke, precious to a self selected and elite few.
A good reminder that less often is more. The Al Ries review on Nobody’s Perfect is here.
“BrainTrust Query: How is the recession changing Hispanics as consumers? By David Morse and Maria Gracia Inglessis, New American Dimensions, LLC 06/19/09 How is the economy affecting the Hispanic market? The answer, at this time, may be inconclusive. In a recent article by Terry Soto, president & CEO of About Marketing Solutions, she cites data from Experian and concludes that Hispanics may be ‘recession proof’ or at least ‘recession aloof.’ For example, 34 percent of Hispanics are optimistic about their finances in the coming year (compared to 25 percent of non-Hispanics), and 29 percent of Hispanics are more positive about the U.S economy (compared to 21 percent of non-Hispanics). Hispanics may also be less burdened with financial difficulties because they are not as involved in some of the most problematic areas. According to Packaged Facts’ analysis of Experian Simmons Summer 2008 National Consumer Survey data, 46 percent of Hispanics use credit cards compared to 72 percent among non-Hispanics, and only 15 percent of Hispanics own investments (compared to 43 percent of non-Hispanics). The Simmons data also highlight that Hispanics are more likely to rent their homes than non-Hispanics. This makes them less likely to be affected by the mortgage foreclosure. There are some categories in which Hispanics are spending more than their non-Hispanic counterparts. According to the Packaged Fact Study, Hispanics spend more in:
Food at home (8.3 percent vs. 6.8 percent - of total annual expenditure)
Poultry (0.5 percent vs. 0.3 percent)
Fresh vegetables (0.6 percent vs. 0.4 percent)
That Hispanics spend more in food is not surprising. They have bigger households and like to cook from scratch. But interestingly enough they are also spending more in less expected areas, for example, in apparel and services (4.8 percent vs. 3.7 percent). What is more, Hispanic men are more likely to keep up with the latest fashion (25 percent vs. 17 percent). Also…
They like to experiment with new styles (26 percent vs. 14 percent)
Buy the latest fashion every season (17 percent vs. seven percent)
Enjoy any kind of shopping (28 percent vs. 13 percent)
More Hispanics say they buy recycled paper products (men 40 percent vs. 34 percent and women 45 percent vs. 39 percent). Also, Hispanics are more likely to claim that they would pay more for environmental friendly products (men 42 percent vs. 35 percent and women 47 percent vs. 40 percent). But additional data from the Nielsen Homescan Hispanic Panel present a less positive view on how Hispanics perceive that the current downturn is affecting their lives. The data show that about half of Hispanics feel that their household is somewhat or much worse financially now than a year ago, and 37 percent feel that their or their spouse’s job is not too secure or not secure at all. More than 70 percent feel that their level of savings to deal with potential disasters is not secure. According to this study, not only do Hispanics have a less positive outlook, they have changed some of their consumer habits; for example, in the past three months they are eating at fast food restaurants less often (64 percent vs. 47.9 percent of non-Hispanics), and close to 45 percent are bringing lunch to work more often (compared to 36 percent of non-Hispanics).”
Nothing surprises me about the data and implications. We addressed this issue on my company’s website on April 14, 2009 (link,http://www.arambulaphillips.com/?p=75)
My advice to marketers is to follow proper marketing disciplines when addressing the Hispanic consumer segment. Learn about your brand’s relationship with the Hispanic consumer. What role does the economy play? Is the consumer receptive to your communications? The Hispanic segment can provide a positive ROI in marketing investment in an otherwise struggling and sputtering economy.
I keep hearing how “green”, “eco-friendly” or “organic” products won’t make it in this recession. That right now consumers have concerns which dwarf buying “green” toilet paper to do their bit to save the planet. Yet an article in AdAge today notes how green brands like Seventh Generation continue notching double digit sales increases in the midst of the worst economic crisis in 80 years. With so many consumers in dire straits, or about to be, why is Green thriving?
Looks like green has finally hit the mainstream. Brands like Scott and retailers like Walmart have integrated green thinking into their brands and stores. And the demogrpahics are changing, for example, IRI found that sales of green products are growing fastest in a predominantly Hispanic segment labeled “respectful stewards” and a predominantly white-male segment labeled “proud traditionalists.” Yet sales actually remained flat in the “eco-centric” segment with the highest interest in green issues.
No doubt green has jelled. And as I’ve noted before, this recession is indeed a crisis, just check out these charts. But it’s surprising how some unexpected segments continue to thrive in the face of it while others wilt into irrelevancy.
At the start of 2009 I wrote about the convergence of three factors relating to the U.S. Hispanic segment. The first factor dealt with the shrinking retail environment and how U.S. Hispanics would become increasingly important to marketers since they tend to be a more dynamic consumer segment, particularly on basic, everyday items.
And even with an unemployment rate almost 4 points above the national average there is evidence that smart marketers continue to reap the benefits of reaching out to Hispanics. We see it with the continuing success of Bedoyecta and BusinessWeek recently noted how well General Mills and State Farm are benefiting despite the economic maelstrom. So well that General Mills has tripled its Hispanic media budget to $35 million.
To many Hispanics seem like the last consumer segment to talk to, but this really could be called a “segment recession”. Some consumer segments are suffering while others are unexpectedly managing through intact and some even thriving. Notably U.S. Hispanic consumers are less likely to be hobbled by a mortgage or serious credit-card debt, and tend to have two or more income earners in a household.
The “more” is important here. In general many U.S. households have two income earners, this is not news, however, with Hispanics there’s a tendency to have more extended family living under the same roof, bringing in additional income while lowering living costs per person. So, even if their disposable income is lower, and perhaps more stable, two key facts are often overlooked. One, Hispanic consumers over index on a wide variety of basics by a far greater margin than the rest of the population. And two, Hispanic TV ratings continue to surge while general market TV remains flat. Hispanics respond well to marketing efforts crafted in sync with their culture and language.
As the economy works through this recession many marketers will start to consider the Hispanic consumer as a segment which can take up the slack on softening demand in the broader general market, and begin to build a thriving Hispanic franchise that yields benefits beyond this temporary “segment recession”.
Can you recall the last time you heard anyone mention his unmentionable BVD®’s? What about Nuprin®? How about Xerox®? Has anyone Xeroxed papers lately? A very common function back in the day, remember the good old days when Oldsmobile’s and Plymouths traversed the country’s roads? How about when Nolan Ryan took Nuprin® for his aches? Or when smokers and coffee drinkers knew exactly which toothpaste to use and what premium coffee to drink?
It’s the Demographics: There are many factors that contribute to the demise or irrelevancy of a brand, this is not about listing those factors — ultimately bad brand management kills a brand — rather this is about another huge factor that is at the marketer’s doorstep and in due course will be the death of additional brands; demographic shifts in population.
According to the Pew Research Center, the Hispanic population in the U.S. grew by 10 million from the year 2000 to 2007. To put in perspective, the total U.S. population grew only by 20 million during the same period, which indicates that 50% of all the country’s population growth was contributed by Hispanics. Of that 50% growth, 30% was by native-born Hispanics with immigration accounting for the rest.
It’s ok then; native-born Hispanics will speak English and know my brand, right?
Native-born Hispanics will speak English because they will be educated in the U.S however they will be unfamiliar with your brands. Think about your introduction to brands. It was mom who initially brought the product home; it was dad whose brand preference contributed to yours. But if mom and dad are foreign-born Hispanics, then your brand will not have that “little piece of real-estate” in the consumers’ brain.
Country of origin or cultural brands will have the advantage over yours. Almost everyone knows the Mission Foods brand, but how familiar are you with Picot®, Bimbo®, Lala®, or Bedoyecta®? These are brands with equity from their country of origin, and while you may not think it affects your brands, ask the Alka-Seltzer® folks at Bayer — Picot® outsells them in Walmart.
How do I learn if my brand will be affected by demographic changes?
Learn if your category is developed with the Hispanic consumer segment. Is your brand history seeded in the post WWII baby boom? Is your brand steeped in 1900’s Americana? Are you tapping the emergent consumer markets not familiar with your brand? If you are, is the message relevant or simply a translation?
Think about your personal experience, remember traveling in the old station wagon and spending the night at the Holiday Inn®, the familiar shag carpeting and AstroTurf® by the pool? The fun time you had while staying there. That’s a memory — a brand perception, however one that is not shared by about 15% of the US population.
Copyright 2009, Carlos Arámbula. All rights reserved.
I was in LA traffic catching up my reading listening to Malcom Gladwell read his new book Blink. There’s a section on Improv Comedy and another one on War Games and how these activities seem so spontaneous. How its seems fascinatingly simple that a group of people can create a 30 minute play from a lonely word thrown out by the audience. Gladwell notes how in Improv, War Games and even in Basketball spontaneity is a only the result of specific rules and practice.
This made me think about marketing and The Communications Strategy, a process that might seem to suck the creativity and spontaneity out of marketing. One of the things we always point out is that, yes, a fantastic creative idea can come out of nowhere. More often this not the case and the marketing is usually stuck in the doldrums as a result.
The Communications Strategy is a disciplined process which looks at all the aspects of a brand — the objectives, target, consumer insight and most important the brands positioning. This is a process designed to distill the mass of ideas, notions and perceptions about brand into one consistent and potent message.
During this process ideas become more focused and relevant and even seem to be spontaneous. But what is actually happening is that spontaneity is being created by a disciplined process which forces people to think more effectively and efficiently.
The focused messaging developed during the Communications Strategy then drives all marketing efforts, improving the overall effectiveness of a company’s marketing investments.
Watching an AD Age news video from the National Retail Federation Convention made me realize how segment marketing is becoming even more crucial to marketers, but especially how the Hispanic consumer is now seeming to really rise in importance. The NRFC video brought to mind the convergence of three factors relating to the U.S. Hispanic consumer segment.
1. Post Recession Consumer Spending May Not Fully Recover: According to Mark Zandi, Chief Economist for Moody’s Economy.com, we are right at the beginning of a 15 to 20 year period of lower consumer spending in general across the United States. No doubt, there will be sectors with aggressive growth and surely the Hispanic consumer segment will probably be one of them. Hispanics tend to be younger and more dynamic in spending, especially in categories like retail and food shopping. So, targeting marketing efforts to reach this segment will jump to the front of the line. To see the video of Mark Zandi talking about the shrinking retail environment clickhere.
2. Hispanics account for over 50% of annual U.S. population growth: Of the over 4 million or so people born in the U.S. every year over 50% are of Hispanic origin. This robustness in population growth will continue to increase their importance with marketers and retailers. This holiday season Walmart had a Three Kings Day celebration at over 480 locations specifically targeting the Hispanic consumer base. To check stats or download the report from the Pew Hispanic Centerclick here.
3. More and More Hispanics are Online: According to Horowitz Associates “State of Broadband Urban Markets 2008″ study 48% of U.S. Hispanics have a broadband connection, this is still 9% lower than the overall market, but it’s become a large enough segment to make it economically feasible to market to. Today top brands such as Walmart and Bank of America spend between 5 and 20% of their Hispanic marketing budget on Hispanic geared online marketing efforts.
Conclusion: As the retail environment shrinks U.S. Hispanic consumers will become more important to marketers and retailers. Especially as the Hispanic population segment continues to drive total U.S. population growth. And now a large swath of Hispanics are online making it feasible to develop more accountable web based marketing efforts. In 2009 many companies will be taking a second, more thoughtful look, at U.S. Hispanic consumers.
A recent Knowledge Networks/PDI study redefines the cost effectiveness of in-store sampling. No doubt, there is usually a lift after almost any in store sampling event.
Ran into the Bill Bernbach quote below in a review of 
I keep hearing how “green”, “eco-friendly” or “organic” products won’t make it in this recession. That right now consumers have concerns which dwarf buying “green” toilet paper to do their bit to save the planet. Yet an article in AdAge today notes how green brands like Seventh Generation continue notching double digit sales increases in the midst of the worst economic crisis in 80 years. With so many consumers in dire straits, or about to be, why is Green thriving?
Can you recall the last time you heard anyone mention his unmentionable BVD®’s? What about Nuprin®? How about Xerox®? Has anyone Xeroxed papers lately? A very common function back in the day, remember the good old days when Oldsmobile’s and Plymouths traversed the country’s roads? How about when Nolan Ryan took Nuprin® for his aches? Or when smokers and coffee drinkers knew exactly which toothpaste to use and what premium coffee to drink?
Country of origin or cultural brands will have the advantage over yours. Almost everyone knows the Mission Foods brand, but how familiar are you with Picot®, Bimbo®, Lala®, or Bedoyecta®? These are brands with equity from their country of origin, and while you may not think it affects your brands, ask the Alka-Seltzer® folks at Bayer — Picot® outsells them in Walmart.
