Tag Archives: analytics

The Changing Constants of Marketing (No, This Is Not an Oxymoron)

18 Jul

We’ve written a lot about the rapidly changing world of marketing — with the advances in social media, technology, big data, etc. So, sometimes, we need to pause and reflect on things that are the constants in marketing.

In 1966, McKinsey published an article by John D. Louth on “The Changing Face of Marketing”: “This article from the McKinsey Quarterly archive analyzes six major changes that promised to transform future marketing efforts. These forces have largely proved to be as influential as predicted and continue to shape today’s challenges.”

The six major changes — which are really marketing constants — are as relevant today as they were nearly 50 years ago:

  1. The dominance of the customer — “It is nearly a truism that the needs and wants of the consumer are the critical issues today in creating new products and services, and developing the accompanying plans to merchandise them at a profit.”
  2. The spread of marketing research — “The second trend is the increased use of marketing research — in terms of both quantity and scope. To an important degree, of course, this trend is a response to the first. If knowledge about future customers is essential, and if the quality of the marketing output is materially affected by the caliber of the informational input, then marketing research is bound to increase in use and contribution as the interest in more scientific marketing grows.”
  3. The rise of the computer — “The third major trend marketing must consider is the emergence of electronic data-processing equipment as a major tool of scientific marketing not only for reporting data but also, more importantly, for planning and control by management.”
  4. Expanded use of test marketing — “A fourth important trend, in my opinion, will be toward more controlled experimentation to narrow the odds of an error in making marketing changes. Two major influences emphasize the need for further expansion of test marketing. The first is the rising cost of marketing changes: the costs, for example, of introducing new products and packaging, of developing new advertising and promotional programs, and of retraining salespeople. The second influence is the mounting investment in product research and development. About half of all corporate research-and-development activity in the United States today is concerned with the creation of new commercial products.”
  5. Metamorphosis of field selling — “The fifth trend I foresee is a shift in the nature of the field-selling job toward a more integrated, profit-oriented marketing effort. Key-account selling is becoming an increasingly crucial feature of the field-sales job—a trend with important implications. In many companies, a key-account selling program may entail special analysis of present and potential customers, and the establishment of related control reports to measure profit results with particular accounts.”
  6. Global market planning — “An ever-broadening application of the marketing concept to worldwide markets is the last of the six broad trends that I believe will change the face of marketing in the next few years. Over the past decade, the marketing concept has become widely accepted in the United States—perhaps, in some situations, too enthusiastically accepted and too indiscriminately applied. Nevertheless, I believe the concept of a completely integrated marketing effort is valid and will be increasingly adopted. In many companies operating worldwide, it will stimulate the development of global market planning.”

Click the image to read the full classic article.
 

 

Are Social Media Living Up to the Hype?

15 Jul

There have been numerous reports about how effective paid social media can be in driving companies’ business. But a new study by Gallup puts some of these assumptions into question. Its conclusion? Paid messages on social media are not very driving a lot of business. [Nonpaid social media reviews, stories, etc. are impactful, though.]

As Jeff Elder reports for the Wall Street Journal:

“Gallup says 62% of the more than 18,000 U.S. consumers it polled said social media had no influence on their buying decisions. Another 30% said it had some influence. U.S. companies spent $5.1 billion on social-media advertising in 2013, but Gallup says ‘consumers are highly adept at tuning out brand-related Facebook and Twitter content.’ (Gallup’s survey was conducted via the Web and mail from December 2012 to January 2013. The survey has a margin of error of plus or minus 1 percentage point.)”

“In a study last year, Nielsen Holdings NV found that global consumers trusted ads on television, print, radio, billboards and movie trailers more than social-media ads.”

Click the chart to read more.
 

 

Media Trends in U.S. Advertising

11 Jul

The shift to digital media for U.S. advertising expenditures is expected to continue well into the future. By 2018, ad spending on digital media will exceed that for television. Mobile ad spending is projected to rise from 2.6 percent of all U.S. media dollars in 2012 to 26.4 percent in 2018.

As eMarketer reports:

“Strong, steady growth in mobile advertising will push digital ads to represent nearly 30% of all U.S. ad spending this year. Advertisers will invest more than $50 billion in digital channels in 2014 for the first time, an increase of 17.7% over 2013. Just over one-third of that will come from mobile, but by 2018, mobile will account for more than 70% of digital ad spending.”

Click the chart to read more.
 

 

The Growing Importance of Generation Z

26 Jun

Our marketing dictionary keeps growing — in this case, we’re talking about consumer typologies. Among them are the Greatest Generation (born 1925-1945), Baby Boomers (born 1946-1964), Baby Busters (born 1965-1975), MTV Generation (1975-1985), Generation X (encompassing Baby Busters and MTV Generation), Generation Y — also known as Millennials (1985-1995), and Generation Z (born 1995-2007).

Now, that the oldest Generation Zers are adults, it is time to pay more attention to this emerging market segment.

One firm that has studied Generation Z in depth is sparks & honey, which has been selected by Advertising Age  as one of the Top Ten Agencies to Watch for 2014.

According to sparks & honey:

“Marketers have been focused on Gen Y (a.k.a. Millennials) for more than a decade. In fact, Millennials are the most researched generation in history! But Gen Z is different from the Millennial generation. In many ways, Gen Zers are the opposites or extreme versions of Millennials and marketers need to adjust to them. We are just beginning to understand Gen Z and its impact on the future.”

Check out the sparks & honey slideshow on Generation Z. Be ready for the future! It is here now.
 

 

Evans on Marketing’s 20 Most Popular Posts

23 Jun

Since this blog began in 2012, several of the 900 posts have been especially popular among readers. For those who have missed any of the 20 most popular posts, here they are:

  1. Best Business Decisions Ever?
  2. Online Shopping Behavior by Gender and Age
  3. Do You Regularly Check Yourself Out at Google?
  4. A Job Skills Infographic
  5. Is It OK to Leave a Job Off Your Resume?
  6. The Volkswagen Jetta Promotes Safety
  7. Apple and Planned Obsolescence: Is This Good Or Bad?
  8. New Balance Athletic Shoes: Made in the USA — But for How Long?
  9. Great Privacy Tip: How to Go Incognito on Google Chrome
  10. The Value of Infographics
  11. Are You Trying NOT to Get A Job?
  12. Ten Tips to Help You Get a Job Interview
  13. Is Marketing a Good Career Choice?
  14. Where Consumers Will Pay More for Products from Socially-Conscious Companies
  15. 15 Traits of Superior Employees
  16. The Top Social Media Sites in China: An Infographic
  17. Do YOU Provide Too Much Online Information About Yourself?
  18. Is Banning Facebook at Work a Good Or Bad Idea?
  19. Questions NOT to Ask During a Job Interview
  20. Is Sharing One’s Salary Data with Co-Workers OK?

 

Business Intelligence as a Competitive Advantage

21 Jun

There is no question that detailed, accurate information can help companies make better decisions and enact better tactics. Yet, having comprehensive, targeted data is not necessarily simple.

As Graham Winfrey reports for Inc.:

“Roughly half of business professionals cite ‘slow or untimely access to information’ as one of the obstacles holding their companies back. Making matters worse, a lot of the data available to businesses are essentially useless. The big lesson? When it comes to business intelligence, having smart data is more important than big data.”

The infographic below, developed by Boston University, focuses on some keys in using business intelligence for competitive advantage.
 


Boston University Online

 

Big Data and Better Pricing Decisions

18 Jun

As we have written before (see for example, 1, 2, 3), more and more marketers have become involved in big data analysis.

Now, comes new research from McKinsey about how the analysis of big data can be used to improve a company’s pricing decisions.

McKinsey’s Walter Baker, Dieter Kiewell, and Georg Winkler note that:

“It’s hard to overstate the importance of getting pricing right. On average, a 1 percent price increase translates into an 8.7 percent increase in operating profits (assuming no loss of volume, of course). Yet, we estimate that up to 30 percent of the thousands of pricing decisions companies make every year fail to deliver the best price. That’s a lot of lost revenue. And it’s particularly troubling considering that the flood of data now available provide companies with an opportunity to make significantly better pricing decisions. For those able to bring order to big data’s complexity, the value is substantial.”

“We’re not suggesting it’s easy: the number of customer touchpoints keeps exploding as digitization fuels growing multichannel complexity. Yet, price points need to keep pace. Without uncovering and acting on the opportunities big data present, many companies are leaving millions of dollars of profit on the table. The secret to increasing profit margins is to harness big data to find the best price at the product — not category — level, rather than drown in the numbers flood.”

Click the image to read a lot more.
 

 

 

Is Everything You Know About ROI Wrong?

12 Jun

For most companies, maximizing their return on investment (ROI) is a key goal that drives their strategies. But are they using and measuring ROI properly? Sometimes, ROI is not so easy to determine.

With this in mind, consider the slideshow “How to Determine the ROI of Anything” by Gary Vaynerchuk, working at VaynerMedia: “What’s the ROI of a piano? What’s the ROI of a YouTube channel? What’s the ROI of anything!? After you read this deck you’ll be able to answer all these questions easily.”

 

 

Keys to Successful Innovation

7 Jun

For many companies, innovation is the life blood for long-term success. Nonetheless, success with innovations can be elusive.

As Mindjet,which offers a platform for enterprise innovation, notes:

“Innovation is vital to achieve success in today’s evolving marketplace, but it’s easier said than done. In reality, most companies struggle to achieve true innovation, despite acknowledging its importance. Whether due to a lack of resources or ability, many companies remain stagnant. But recent data shows that’s only part of the puzzle, and that a holistic, structured approach to innovation is one that works — and that yields real business results. Check out the full infographic below for more on what really fosters innovation.

For some tips on innovation, take a look at this infographic from Mindjet and Column Five.
 

 

Netflix Keeps on Rolling

4 Jun

After a few hiccups (such as the introduction of dual subscriptions), Netflix is certainly on a roll again. And a large part of Netflix’s recent success has been tied to its development of original programming, including Emmy-winning House of Cards. This move has changed the business for the industry and drawn emulators like Amazon.

Here is a good infographic that shows “The Economics of Netflix: How to Make a $100 Million Show.” Click on the image for a larger version, and then scroll down to learn many interesting facts about the economics of programming.
 

Economics of Netflix
Source: GreatBusinessSchools.org

 

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