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Spanning Silos the new CMO Imperative

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16

features: 8 Spanning Silos, the new CMO imperative

columns: 6 publisher's letter

7 contributors: Who’s who in industry

14 travel: International marketing par excellence!

16 marketing: Marketing your marketing

18 insights: Taking an Incentive program international

20 incentives: A world of Incentives...

22 branding: Light the fuse and be ready to catch the waves

26 optimize: Why the internet hates your business

28 exhibit: How to measure exhibit staff training

31 ad-index

32 last word: Coupons, Brands & the Current Economy

34 off the cuff: Quotes and Trivia

22

vol. 6, No. 08 2009

8

COVER & COVER STORY PHOTOGRAPHS PROVIDED BY DAVID AAKER

19

4 Brilliant Results | August 2009 www.bri l l iantpubl ishing.com

The world has gone global and while you may think your

company is local, your consumers are exposed everyday

to the world as they tweet, view YouTube and catch-up on

Facebook or one of the burgeoning blogs. Yes, business

today is anything but ‘business as usual’. All of which

means that your company needs a new marketing plan…

a 21st century plan.

If your organization is large enough to have divided

itself into silos – be they country, product, or division –

then reading David Aaker’s insights into spanning silos

is an excellent fi rst step in developing that 21st century

plan. Large or small – million dollar or million penny

marketing budget – your plan needs to include ‘old school’

print, television, and radio where the current economy

is contributing to some amazing deals and advertising

packages. But, remember it is the 21st century and to

really grow your brand you need to include the new ‘media’

– viral marketing, stellar websites and the de rigueur social

network touchstones.

And, yes, you can grow by word of mouth. If you have

any lingering doubts about this, then be sure to read

Martin Lindstrom’s article. However, now that the power is

migrating to the people, it is important to base your social

technology on transparency, honesty and substance

because the goal is not to be viral, but to empower and

be authentic.

To assist you in staying ahead of the curve in this brave

new global world, Brilliant results had again put together

a powerful mix of marketing insights from leaders in their

fi elds. So, whether international or stateside, sit back and

let your mind travel across this month’s plethora of great

ideas and remember to

Have A Brilliant Day,

publisher’s letter

Brilliant Publishing LLC9034 Joyce Lane

Hummelstown, PA 17036Ph: 717.571.9233Fax: 717.566.5431

PUBLISHER / ADVERTISINGMaureen Williams

[email protected]

717-608-5869

EDITORIALEditor in ChiefMaryAnne Morrill

Senior EditorMichelle Donofry

Style EditorCharity Plata

Asst. EditorMolly Anika

CONTRIBUTING WRITERSMary English, Arnold Light, CTC, Martin Lindstorm

Alex Ribble, Barry Siskind, Dr. Peter Tarlow

PRODUCTION / DESIGNArt DirectorJeremy Tingle

Brilliant Results is published monthly by Brilliant Publishing LLC,

9034 Joyce Lane Hummelstown PA 17036 (717) 608-5869; Fax#

(717) 566-5431. Postage paid at Mechanicsburg PA and additional

offices. POSTMASTER please send address changes to Brilliant

Results, 9034 Joyce Lane, Hummelstown PA 17036. Volume 6.

Number 08. Brilliant Results subscription rates: one-year $120;

Canadian $160 USD; one-year foreign $225 USD. All subscriptions

are non-refundable. Copyright © 2009 Brilliant Publishing LLC. All

rights reserved. The publisher reserves the right to accept or reject

any advertising or editorial material. Advertisers, and/or their agents,

assume the responsibility for any claims against the publisher based

on the advertisement. Editorial contributors assume responsibility for

their published works and assume responsibility for any claims against

the publisher based on published work. No part of this publication can

be reproduced in any form or by electronic or mechanical means,

including information storage and retrieval systems, without written

permission from the publisher. All items submitted to Brilliant Results

become the sole property of Brilliant Publishing LLC. Editorial content

does not reflect the views of the publisher. The imprints, logos,

trademarks or trade names (Collectively the “Marks”) displayed on

the products featured in Brilliant Results are for illustrative purposes

only and are not available for sale. The marks do not represent the

implied or actual endorsement by the owners of the Marks of the

product on which they appear. All of the Marks are the property of

the respective owners and is not the property of either the advertisers

using the Marks or Brilliant Results.Maureen [email protected] 717-608-5869

brilliantresults™

Have A Brilliant Day,


contributors

a Mary English is the Vice President of Marketing for Hallmark Insights, the leader in providing business incentive solutions and personalized reward programs for employee recognition, customer acquisition and retention, sales and dealer incentives, and health and wellness programs. To learn more, go to HallmarkInsights.com.

d Arnold Light, CTC, CEO & President of Fire and Light has 35 years of marketing experience specializing in incentive and loyalty marketing helping multinational corporations develop and implement B2B and B2C results oriented performance improvement programs. For additional information visit www.lightconsults.com.

e Martin Lindstrom, a respected branding and marketing expert, was selected as one of the world’s 100 most infl uential people by TIME magazine. The founder, CEO and Chairman of the LINDSTROM company (Sydney), Martin speaks to a global audience of approximately one million people every year. He has been featured in numerous publications, and on major broadcast and fi nancial television network programs, his previous book, BRAND sense, was acclaimed by the Wall Street Journal as one of the fi ve best marketing books ever published. His latest book; Buyology – Truth and Lies About Why We Buy – a New York Times and Wall Street Journal best-selling book has been translated into 37 languages and is on almost all major best-seller lists worldwide.

g Alex Ribble has been an Internet Marketer for over 10 years, and currently serves as Director of Project Management for Enthusiast Web Solutions a fi rm in Monrovia, CA. Alex is an avid Search Engine Optimizer & Copywriter, and current Board Member of the Los Angeles chapter of the Society for Marketing Professional Services (SMPS). For a FREE EVALUATION of your websites’ performance, contact Alex at [email protected]. f Barry Siskind is an internationally

recognized trade and consumer show expert. He is author of six bestselling business books including Powerful Exhibit Marketing. Read his newest book, Selling from the Inside Out for an in depth guide to a successful sales career. Visit Barry at www.siskindtraining.com.

j Dr. Peter Tarlow is a founder and president of Tourism & More Inc. Dr. Tarlow has appeared on National televised programs such as Dateline: NBC and on CNBC. Dr. Tarlow organizes conferences around the world dealing with visitor safety and security issues and with the economic importance of tourism and tourism marketing. He also works with numerous cities, states, and foreign governments to improve their tourism products and to train their tourism security professionals. For additional information visit www.tourismandmore.com

a

d

g

f

j

e

Puzzle Coasterand Trivet Set

Decision Die

www.bri l l iantpubl ishing.com


Spanning Silos the new CMO Imperative

www.bri l l iantpubl ishing.com8 Brilliant Results | August 2009


Br: Why is it important to involve a company’s

marketing department in strategic planning?

DA: In my view a business strategy has four

components, the product market investment

decision, the value proposition, the supporting

assets and competences, and the functional area

strategies and marketing is well positioned to

contribute to all four. The investment decision, a key

growth driver, will need to draw on market analyses,

segmentation, and brand portfolio strategy all of

which are the province of marketing. The value

proposition is the dimension most clearly owned by

marketing because it needs to be based on customer

insight. In fact, marketing ought to be the voice of

the customer at the strategy table. Any business

strategy to succeed over time needs to be based on

fi rm assets and the brand will be in most cases one

of the most critical of those assets. Further, the key

to a strong brand is the brand vision, which needs

to both refl ect and support the business strategy.

Finally, functional strategies in marketing such as

channel management or sponsorship programs

that are mission critical or exceptionally effective

can become strategic. Firms that develop strategy

without marketing as a full partner can expect to

generate inferior if not fl awed business strategies.

Br: In your opinion how do powerful product/

country silos jeopardize a company’s ability to

perform at high marketing effi ciency in today’s global

economy?

DA: Powerful product/country silos inhibit

marketing effi ciency in several ways. First, they

inevitably lead to resource misallocation, which

means that much of the marketing budget is spent

much less effectively than it could be. The large

politically powerful silo units usually get the resources

and the small units with potential get starved. IBM

set up an entire growth market organizational unit in

Prophet is the go-to fi rm for senior executives demanding brand, marketing, design and

innovation investments that work harder — and smarter. Known for their collaborative approach

and ability to blend the art and science of marketing Prophet both inspires ideas and delivers

tangible results. They develop creative solutions that balance short-term business needs against

longer-term growth goals for such Fortune 500 clients as Cartier, GE, Harrah’s Entertainment,

Inc., Johnson & Johnson, Monsanto, NBC, Staples, UBS, and United Airlines.

With offi ces around the globe helping clients drive profi table growth, their recent acquisition

of Play, a leading creativity and innovation fi rm, will help Prophet continue to inspire people and

organizations to discover and realize new paths to growth and transformation.

Leading-edge strategy requires leading-edge insights and the experience of proven marketing

experts. One such expert is its Vice Chairman, Emeritus Professor from the Haas School at

Berkeley and the creator of the Aaker Model™, David Aaker.

David has published more than 100 articles and 14 books, including his latest, Spanning

Silos: The New CMO Imperative. David is also an advisor to Dentsu; an active speaker in the

U.S., Asia, and Europe and is featured in a chapter of Conversations with Marketing Masters - a

collection of insights from some of the world’s most infl uential marketing gurus.

Brilliant results was recently privileged to have an opportunity to speak with David and

receive his responses to our questions. We are sure our readers will fi nd his responses both

timely and informative.

August 2009 | Brilliant Results 9www.bri l l iantpubl ishing.com

Singapore in order to insolate a budget that kept getting usurped

by the established silos.

Second, silos don’t communicate well, in particular, they

don’t listen well. As a result, exceptional products and marketing

programs, when they do emerge, are not leveraged. Too many

fi rms lack systems and people capable of recognizing excellence

with a product-market and expeditiously exporting it to the rest of

the fi rm.

Third, silos don’t cooperate well. The most effective marketing

programs, like major sponsorships, require scale and are either

not considered or not implemented well because the silos simply

can’t work together especially over time.

Fourth, when brands span product and county silos and

each silo has control of the brand in its context, the result is a

confused brand without direction or soul. The effort is deleterious

in the market, but equally damaging internally, because there is

no driving force bringing the employees and partners together

as teammates. Having autonomous silos go there own way just

doesn’t work in today’s marketplace.

BR: What are the characteristics of fi rms that

have made progress toward effective integrated

communication in the face of communication silos?

DA: There are several indicators of effective

integrated communication.

First, there is a strong brand with a brand vision

that everyone in the organization both understands and

cares about. The brand may be adjusted for the context

but the core remains.

Second, there is a willingness within the organization

to allow excellence in marketing communication to

emerge from one communication or product-market silo

and become the centerpiece of the program with the

others following.

The McDonald’s Germany unit came up with “Lov’n

It” that quickly became a global concept. The BMW

Internet group came up with the idea of making a half

dozen six minute fi lms by the best directors around the

BMW experience and the other functional communication

silos became supporting entities. P&G has for several

brands created a lead communication partner based on

what modality should be central and made the others

implementing team members. For Pampers, the web

site, which is all about parenting, became the centerpiece

of the marketing program and the other modalities took

on support roles.

Third, there is a common methodology and measures

used to determine marketing effectiveness so that

excellence and mediocrity can both be recognized.

PepsiCo developed its product equity, customer equity,

and brand equity measure that are used across products

globally.

Br: How do you see social networking, mobile

marketing, the Internet and social media like Twitter

impacting marketing?

DA: The mistake that many make is to attempt to

develop a social technology or Twitter or Facebook

strategy sometimes using a specialist in that vehicle.

Instead, in my view social technology needs to be actively

managed as part of a larger marketing and customer

relationship system. Don’t toss out what you know about

marketing. You decide on the target audiences, what type

of relationship is desired, what programs will develop and

strengthen that relationship, and what media can play a

role. Then if a social technology vehicle is helpful, it will

come to the fore.

The social media still has to be actively managed.

Look at the model of spreading disease (where the word

viral comes from). It involves the probability of being

infected, of sneezing in front of people, of hitting others

with the sneeze, and of their then getting infected all

infl uenced by the length of time a person is contagious.

Each of those steps has an analogous task in making

social technology work and each needs to be managed

with focused features and programs. Don’t assume that

the task is simply to create funny or interesting content

and it will be spread.

If social technology is to be summarized, the word viral

(build a fi eld and they will come) is out and empowerment

and authenticity are in. With the brand out of control

of the situation, the message and the community must

be enabled and trusted to carry the day. Authenticity

is of crucial importance. Social technology needs to be

based on transparency, honesty, and substance.

when brands span product and county

silos and each silo has control of the brand in its context, the result is a confused brand

without direction or soul.


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© 2009 Hallmark Insights. All rights reserved.

REWARDING FOR THEM. EASY FOR YOU.

Br: How would you suggest that today’s CMO span

silos and market their brands on an international scale?

DA: The CMO task will depend greatly on the situation

on the ground. If there is a CEO without an instinct for

marketing, shallow marketing talent around the fi rm, a

history of weak or nonexistent central marketing, and an

absence of a silo driven fi rm crises, the CMO might be

well advised to go slowly by taking on roles of facilitator,

consultant, and service provider, roles that are not

threatening to the organization. Using such roles, the

CMO can gain credibility, upgrade marketing throughout

the organization, dramatically improve communication and

cooperation, and even gain an invited seat at the strategy

table of the silo units. There are rare contexts usually

stimulated by a fi nancial crises or a complete breakdown in

brand coherence for which forceful centralization of some

aspects of branding and marketing and making some

processes mandatory is required. However, in the absence

of a motivating crisis, moving too fast and attempting to

use authoritative change methods can result in no change

and even in a fl ameout of the CMO offi ce, which can set

back progress years or decades.

Br: In your opinion, are people or systems

more essential to a company’s optimal marketing

performance?

DA: In the fi nal analysis it is people. Really good

people can overcome a weak system but the best

system will fl ounder if the right people are not in place.

The problem is that a central marketing group needs

to have knowledge about markets, products, marketing,

branding, and the organization. Further, its people

need to have exceptional talent with respect to strategic

thinking, communication, collaboration, and people

skills. Equally important to fi nding good people is to

weed out those that lack substantive credibility or the

ability to work with people both inside the team and with

the silo groups. Not an easy staffi ng challenge.

BR: Do you have any fi nal thoughts or advice for

our readers on how to succeed in today’s international

marketplace?

DA: It is a mistake to assume that global market means

the same marketing and same brand everywhere. It is not

sameness but strength and effectiveness that should be

the goal. Marketing and branding should be tailored to

the context. The Chevron brand, for example, stands for

cleanliness, safety, reliability, and quality but each of the

product/country silos can interpret those values in their

context and add one additional one as well. However, there

should be the same planning process, the same measures,

and the same core brand values everywhere. And there

should be good communication and cooperation across

countries so that when a synergistic program emerges it

will be accepted and there is ‘no not invented here/you

don’t understand my market’ attitude that inhibits.

For more information, please visit www.prophet.com.


Travel

WRITER: DR. PETER TARLOW

Tourism: International Marketing Par Excellence!THErE is perhaps no industry

that knows how to obtain brilliant

results from international marketing

more than the tourism industry. As

the world's largest industry, tourism

exists on all continents (including

Antarctica), and comes in a variety of

transportation modes, price ranges

and length of stays. Tourism has a

great deal to teach other industries

about international marketing and what

one needs to do in order to succeed.

Here are just a few of the principles

that almost anyone can learn from

the world's largest industry when it

comes to international marketing.

When doing international •

marketing, take the time to study

not only current trends, but also

local, national, and international

economic, social, ethical, and

political trends. International

tourism marketers know that what

may have been true for last year

may be incorrect for next year.

International tourism marketers are

well aware that many industrialized

nations are experiencing a

"graying" infl uence. Begin to

consider how your marketing will

impact people who in a few years

will be in their 60s or 70s. Will your

present marketing need to be

undone over the course of the next

ten years?

In some countries, high tech can be •

a negative marketing tool. While

technology is important, never

permit your technology to destroy

personal relationships, especially in

international marketing. For

example, if you have a special line

set up to handle customer problems,

do not have that line force the

consumer to pass through a

telephone menu until he/she

reaches a human being, and make

sure that your marketers know the

local language and its slang

expressions.

Before you try to convince others to •

purchase your product, take the time

to question what makes your

product unique and why anyone

might want to go to the trouble of

importing it. Before you go on the

international stage make sure that

you review your product's strong

points and weaknesses. Internal

improvements and product

development are often the best

marketing that you can do. For

example, in the world of tourism, all

too often tourism professionals try to

make their place into a destination

rather than a center for a tourism

activity. Tourism offi cials have

learned that customers go to a place

because they can do something

there that they desire to do. In most

cases, it is the activity that is the

attraction rather than the mere

location.

Be fl exible. International marketing •

means adapting to the other's

culture rather than making the other

culture adapt to ours. Simple things

such as body language, intonation

and food choices can make or break

a sale. Tourism offi cials have

learned that what may work in one

locale may be a total failure in

another locale.

Know what you do not have and •

what you are not. International

tourism marketing teaches us that a

major marketing mistake is trying to

be too many things to too many

segments of a population. No

product is meant for everyone. It is

important to know what you cannot

deliver and then steer those people

to other locations.

Psychographic models can be very •

helpful in international marketing. A

psychographic model tells us

something about the psychology of

our customers. Are our clients

people who seek thrills or do they

want a less risky environment? Are

they the type of people who want to

spend a great deal of money on a

few purchases or do they prefer to

buy souvenirs for all of their friends?

How we determine these models

helps each component of an

industry to become a total package

that meets the needs of its

customers.

Think through issues of •

globalization. Tourism offi cials know

that in a world in which everyone is

copying everyone else, remember

that the reason people come to their

locale or attraction is not what they

offer that is similar, but for what they

offer that is distinct. Make sure that

you offer products and experiences

that are unique.


marketing

WRITER: MICHAEL MERRICK CROOKS

AS I write this I’m waiting for my

children to arrive home from the

lake. I’m interested to know why a

blue outline of the state of Michigan

has been spray painted on my

lawn. Brilliant little marketers that

they are — if they’re trying to get

my attention — it’s working!

In his book, “buy•ology: Truth

and Lies About Why We Buy,”

Martian Lindstrom makes clear how

rewarding it can be for a marketer

when they ingrain themselves into

the very fi ber of a target market’s

interest. He conducted a study that

compared the strength of subjects’

memories of Coke and Ford, both

major sponsors of American Idol.

The study showed that because

Coke had integrated itself within

the show through logoed cup

placement, furniture in the shape

of its bottles and even “Coke red”

on the walls, it was able to gain

more mind share and weaken

the effect of Ford’s efforts which

only ran traditional commercials

within the program. Lindstrom

writes, “In other words, watching

the Coke-saturated show actually

suppressed subjects’ memories of

the Ford ads.”

And it really, really works.

Because right now, the sight of my

paint saturated lawn is suppressing

the memory of every wonderful

thing my children have ever done.

The insight for marketers

however, is that when your brand

is a part of something the target

is already doing or already

interested in, the connection in

the mind is greater and more

meaningful. If your brand presence

is an interruption, such as a Tv

commercial within a program, the

connection with your target is less

meaningful.


Now while you may not have

$26 million to spend on integrating

your brand into a major network

television show, companies large

and small can still fi nd affordable

ways to ingrain themselves into the

lives of their target audience.

A high tech example of

Lindstrom’s strategy came to my

attention at a recent trade show.

The vendor explained how a beer

distributor utilized tent cards in bars

to encourage patrons who ordered a

specifi c beer, to “rate the pour” and

be entered to win a trip to Ireland by

texting the bar’s name to a specifi c

code using their cell phone. This is

brilliant because it asks someone to

do something that is related to what

they are already doing. Your beer

was just put in front of you. There is a

little sign on your table that asks you

to rate how the bar served that beer

to you. The beer distributor not only

obtains the contact information on

the patron, but also uses the rating

information to determine which

bar is serving its product correctly.

The bars themselves began using

the data to text message patrons

on slow nights that “free shots of

_______ were being served from

5pm to 6pm”. The bars easily made

up for the free shots as patrons

stuck around buying more drinks.

But what if you’re a small

company, such as a local pizza

place? No problem. Let’s look at

Joe’s Pizza. He approached the

athletic boosters club and explained

that he would underwrite the cost of

a megaphone with the school logo

and his imprint. The boosters could

then sell the megaphones to fans as

a fundraiser. The boosters took Joe

up on his offer. Friday night. The

local high school football team just

won. Within minutes fans that are

customers of Joe, get a text message

that Joe’s Pizza is running a “Game

Winning Celebration Special until

10 pm.” And that message simply

reinforces the message people have

been getting all through the game…

because Joe imprinted “After the

Game, Enjoy Joe’s Delicious Hot

Pizza” on the megaphones.

Using Lindstrom’s fi ndings to your

advantage means more than simply

“getting your name out there”, even

with a small budget. In a golf outing for

instance, it’s the difference between

having your sign at the number

one tee and say … sponsoring the

beer cart. No one looks forward to

reading the hole sponsor signs at a

golf outing. But they do look forward

to the sight of that beer cart coming

down the fairway!

Take just about any spectator

sport for instance. Having signage

around the stadium is “getting your

name out there.” But no one is there

to read signs. However, handing

out logoed promotional binoculars,

making it easier for people to do

what they are there to do - see the

event - is far more impactful.

As disjointed as life may seem,

there is a fl ow. People have

routines, schedules and plans. The

more your marketing fl ows with your

target’s life, the easier it is for you

to capture a position in your target’s

mind. Does your marketing make

the target’s life easier, more fun or

somehow enhance what it is they

are doing? Or is your marketing

tactic simply an interruption … a

mental annoyance?

Lindstrom’s fi ndings are profound

when you realize that before we can

effectively market our products and

business, we must fi rst effectively

market … our marketing.

The insight for marketers however, is that when your brand is a part of something the target is already doing or already interested in, the connection in the mind is greater and more meaningful.


Taking an Incentive Program International

insight

WRITER: MARY ENGLISH

THErE are plenty of ways to

say, “Thank you for your hard work.”

While the above are how it’s said in

French, German and Spanish, there’s

also the international language of

incentives and employee recognition

programs.

But even though employees

throughout the world appreciate

being recognized for their hard work

and contributions, implementing and

running an international incentive

program is not always as simple as

taking an existing U.S. program and

rolling it out – as is – in an offi ce in

Paris, Munich or Madrid. It takes

careful planning and knowledge

to ensure your program can meet

and exceed the challenges of

implementing an international

incentive program.

Three key challenges that

companies need to be knowledge-

able about when considering an

international incentive program

are the culture, who is doing

the incenting and who are they

incenting, and how to administer a

multinational program.

KnoW the Culture

Just as not every award fi ts

every employee, not every incentive

program is going to fi t every culture.

The key to any reward and recognition

program – whether it’s in the United

States or overseas – is to ensure the

incentives you are offering fi ts within

the cultural guidelines of a specifi c

country. An award that is meaningful

and acceptable to an employee in

California might be meaningless or

culturally unacceptable to someone

living in the Middle East.

To position your incentive pro-

gram properly, make sure you

research a country’s customs,

mores and cultural guidelines before

deciding on what types of incentives

to offer. By doing this discovery

work up front, you can help ensure

your program’s success and know

your rewards will become more

meaningful to those employees.

KnoW the uSerS

An incentive program is only

successful if those using the program

fi nd it effective and effi cient. When

looking to implement an international

incentive program, it’s imperative

you know who the end users of your

program will be. Will it be managers

and employees who are on location

in a foreign country? Or will it be

U.S. employees needing to send

recognition to overseas employees?

Knowing who will be using the

program is vital to choosing the

proper form of recognition. If all

users will be in the same location,

you may want to have the option of

presenting a hard copy form of the

recognition. However, if the people

giving and receiving the recognition

are separated by an ocean and

multiple time zones, an electronic

form of the award is absolutely

necessary.

KnoW the differenCeS

There are plenty of differences

you will need to be aware of when

considering the administration

aspects of an international incentive

program. We’ve already touched on

the cultural differences, but take the

time to educate yourself about these

“Merci pour votre travail assidu.”

“Vielen Dank für Ihre harte Arbeit.”

“Gracias por su trabajo dedicado.”


other areas to avoid potential issues.

Cost of living – Will you need

to adjust your award amounts to

allow for cost of living changes in

various countries? An award amount

that might seem low to a person in

one country may be too much in

another.

Types of awards – A single type

of award may not be applicable in

a multi-national incentive program.

Gift cards are popular in the U.S.,

but European countries are in the

infancy stages of offering a gift card

and paper “vouchers” are used more

often, while other areas of the world,

such as Asia, have seen merchandise

as a primary redemption option.

Customs/legal – Are you

shipping rewards from country to

country? If so, make sure you know

and understand any applicable

customs laws and regulations. You

may be offering great merchandise

options as awards, but if employees

can’t receive them because your

program isn’t following shipping

laws, it ’s not an effective program.

If needed, find a reputable partner

who knows the laws and regulations

of a particular region to help you

with fulfillment.

In today’s “shrinking world” we have

the ability to communicate – and give

recognition – to anyone in the world

almost immediately. Whether you are

offering employees rewards such as

gift cards, vouchers, merchandise

or more, a successful incentive

program should, “Think globally. Act

locally.” Your reward and recognition

program may grow to global size, but

it’s important to keep it local in nature

so employees can get the most out

their specifi c program.

By doing so, you might just hear

your employees say, “Merci pour le

grand programme d’encouragement!”

or “vielen Dank für das große

Anreizprogramm!” or even “Gracias

por el gran programa de estímulo!”

But no matter how you say it, “Thank

you for the great incentive program,”

sounds good in any language.

Porsche Ballpoint Gift SetRyMax Marketing Services, Inc.

A fascinating combination of excellent, timeless design, carefully selected materials, and a finish that combines traditional workmanship with the latest technologies, this set features a signature stainless steel ballpoint pen and a mini Porsche replica. The unique design is based on the high-tech-body Tec Flex, which stands out for its excellent corrosion stability, high flexibility, and high “wear out” protection that is also used in the Porsche racing cars

Porsche Ballpoint

RyMax Marketing Services,

A fascinating combination

this set features a signature stainless

DrinKeys “Bottle-Opener House Key” Klinky, Inc.

No matter what business you’re in, you deal with people, and those people have keys. A Branded Bottle-Opener House Key is a real key that can be cut by any key cutter and used as an actual house key, and a bottle opener. Give a person a key with your custom imprint and it will be kept on their key ring for years, giving you thousands of brand impressions.

Executive Business Card Holder with Extra Fancy Jumbo Cashews Maple Ridge Farms™

A perfect way to recognize that busy executive! This solid wooden, contemporary business card holder, branded with your logo, features an open design, which holds up to 50 business cards. The sleek look adds the perfect touch to any desktop, especially since each business card holder is accompanied with five-ounces of extra fancy jumbo cashews, certified kosher available upon request.


WRITER: ARNOLD LIGHT, CTC

incentives

EvEr since the now infamous AIG incentive trip was brought into the public eye

incentive travel has changed drastically. According to the latest Incentive research

Federation’s Pulse Survey, (to determine current trends in the incentive industry) 65%

of the respondents said they consider the current political climate to be unfavorable

for the incentive industry.

Exactly what does this mean? According to a survey by The National Business

Travel Association (NBTA) conducted in March of 09 close to half or 47% of

respondents said they had seen decreases in incentive travel, 20% saw no decreases

and a third said the question about increases and decreases in incentive travel was

not applicable.

While all this sounds so negative there really exists some great opportunities for

those companies who understand the importance of sales incentives to their bottom

lines. Part of the “reward for results” philosophy is that the most memorable rewards

are all travel related. The more exotic the experience the greater the impact on the

individual who earned the trip and hopefully this experience will help reinforce that

the effort was well worth it and will bode well for future sales incentives. Opportunity

for cost savings in all world destinations and in particular the Caribbean and Latin

America has never been greater. There are more air seats available then ever before

with a plethora of business and first class seats available. This means the astute

planner could probably negotiate upgrades on a decent bloc of seats on one or several

flights. Likewise with the deluxe hotels that not only have dropped their rates but also

are offering lots of flexibility with attrition, food and beverage costs, room upgrades

and free rooms with minimum night stays as well. Plus you can lock in guaranteed

exchange rates that have always been a problem for budgets with worldwide travel.

And local DMC’s (Destination Management Companies) have come to understand

that budgets are strict and are willing to work with planners on new and innovative

ways to save money as well as work on tighter margins.

Here are some examples of the flexibility that destinations and hotels are offering.

The Ritz Carlton properties in Grand Cayman, St. Thomas and San Juan are offering

A World Of Incentives…And A World Of Challenges

Ince

ntiv

es…


a special events package with a $100

daily resort credit per room, similarly

AMresorts resorts has implemented

a zero attrition policy at its Dreams

and Secrets resorts. Wyndham

Hotels in Puerto rico, the Bahamas

and St. Thomas are allowing incentive

planners to customize their own

concessions, for example the more

nights booked the more of an incentive

(such as discounts, free nights, free

cocktail parties, etc.) is allowed to the

incentive planner. Hilton Hotels in the

Caribbean and Latin America offers a

“book now and save promotion which

allows up to 25% attrition and double

Hilton HHonors points for attendees.

Aruba is taking a different tack

by motivating incentive planners

by tripling its educational trips and

increasing its advertising budget

to pre-sell groups. With the added

convenience of being a tax-deduct-

ible destination for meetings and

incentives it also offers US Customs

at the Aruba airport saving travelers

time and stress.

Bermuda has recently implemen-

ted a promotion whereby a $200

credit per person is issued for groups

of 15 or more staying at least 3 nights.

The credit can be used against the

hotel master account or credited to

an individual’s hotel account.

The Island of St. Martin is also

in the game with some incredible

savings packages for incentive and

meeting planners. For groups, The

Sonesta is offering one free guest

for each all inclusive guest, 20% off

at its spa, a group cocktail party,

complimentary meeting space and

one comp room for every 30 booked.

And the Radisson St Martin is offering

great low rates and bonuses for

certain value dates. The Westin on

Dawn Beach in St. Martin is offering

rates from $149.

Last December The U.S. Virgin

Islands Department of Tourism

launched a group rewards program

consisting of up to $100 per room

for incentive planners who booked

a block of 20 rooms or more during

2009. Plus they would be entered into

a sweepstakes to win $5,000.

And so as you can see from the

above there is urgency on the part of

travel industry suppliers to help meet

the current needs and challenges of

incentive buyers and planners. Make

no mistake, the “World of Incentives”

as we have known in the past will

take on a whole new perspective in

the future.

Have a rewarding Day!

Incentives…

COMPANY CONTEST FUN

Endless Vacation Rentals®YourFatChance.com Vacation Contest

Endless vacation rentals (Evr), one of the Wyndham Worldwide family of brands

is making a difference in this tough economy, one vacation at a time, with its

YourFatChance.com vacation contest. Participants submitted their funny bad luck stories

in hopes of winning a vacation. During the six-week voting period, people also tried their luck

at an online scratch-off game to win a vacation. After reviewing thousands of stories, the Evr

judges chose the top 25 funniest entries and America voted for their favorite fi nalist. To read the

Grand Prize and First Prize winners’ stories go to www.yourfatchance.com.

“As one of the world’s largest vacation rental providers, we want to send people on great

vacations, particularly at a time when people are tightening their belts because of the economy,” said Geoff

Ballotti, president and CEO, Group rCI. “Everyone needs a vacation and we hope this contest will give people more to

smile about while showcasing the terrifi c values inherent in our vacation rentals.”

Plans are in the works for a Fall contest and those readers with a bad luck story can sign up for contest information on

the website.

Brilliant Results thanks Audrey Scolny of S3 Public Relations www.s3s3s3.com for this insight into a company making a

difference in today’s economy.

COMPANY CONTEST FUN

Endless vacation rentals (Evr), one of the Wyndham Worldwide family of brands

YourFatChance.com vacation contest. Participants submitted their funny bad luck stories

in hopes of winning a vacation. During the six-week voting period, people also tried their luck

at an online scratch-off game to win a vacation. After reviewing thousands of stories, the Evr

judges chose the top 25 funniest entries and America voted for their favorite fi nalist. To read the

“As one of the world’s largest vacation rental providers, we want to send people on great


I rECENTLY received a video

called ‘Dynamite Surfi ng’. Shot in

downtown Copenhagen, my former

home city, this crazy clip defi es nature

- and all health and safety precepts.

It’s sensibly preceded by a slide that

warns, “Attempting to recreate this

stunt could be deadly.”

A bunch of people, rugged up

against the cold, make their way,

commando-style, to the edge of

a lake in Denmark’s capital. They

huddle conspiratorially as one of

their number extracts a cartoonesque

brace of dynamite sticks from a duffl e

bag. Then, under forbiddingly grey

skies, one wet-suited guy launches

himself, and his surfboard, into the

lake. As he paddles to the middle,

the rest of the gang race towards a

bridge a couple of hundred metres

upriver. They attain their, evidently,

planned post on the bridge just as the

paddling surfer attains his in the lake’s

centre. Unhesitatingly, the dynamite

bundle is hurled into the water, its fuse

alight. Seconds later, the subsurface

explosion generates waves and the

surfer paddles ahead in anticipation

of catching a ride. He does. Surfi ng is

possible in Copenhagen.

QuiCKSilver, QuiCK thinKing

Or is it? As you’ll have learnt in

the last issue of ‘Contagious’, this

apparently homemade stunt is in

fact a viral made for Quiksilver by

Saatchi and Saatchi in Denmark, and

cunningly seeded by viral specialists,

Go Viral. So, sadly, surfi ng may not

be possible on this Copenhagen lake,

as many of the comments on the

YouTube posting suggest. The fi lm

has certainly attracted a good deal

of comment; the power of word-of-

mouth extending beyond the video’s

promulgation to heated discussion

about its authenticity.

Here’s an example of a brand

making the most of the word-of-

mouth trend by leading and seeding a

viral fi lm. The strategy has won huge

exposure. During one week, I alone

received that video, not once, but 212

times, from 212 different people in 38

countries. And each of those 212 who

thought of me sent the video to who-

knows-how-many others. And those

recipients to countless more equally

interested viewers.

So, what explosives have you

invested in lately to propel your

brand to fame? How have you used

the considerable power of word-of-

mouth to do your branding work?

Fast, super effective and cheap, viral

marketing could become your brand’s

new weapon in winning attention

from competitors. But, make sure you

attract the right attention. Here is how

one restaurant chain made the most

of a viral opportunity. Perhaps you’ve

heard of them – McDonald’s.

branding

BY MARTIN LINDSTROM

Light the fuse and be ready to catch the waves


flaShmoB taKeaWay

On 2 January 2007, something

unusual happened in the German

town of Braunschweig. Nine hundred

and thirty-one of its 245,500

inhabitants arranged a sudden raid

on the local McDonald's restaurant.

It wasn't the type of raid that ends in

violence. It was the type of raid known

as a fl ashmob. Coordinated via cell

phones, the fl ashmob is a gathering

of people for a specifi c purpose. You

may recall seeing news coverage of

a pillow fi ght in London’s Trafalgar

Square last year. In this case, the plan

was to storm a McDonald's store and

order some 2,211 burgers all at once

-- to take out!

Naturally, the incident made

headlines in the local press. But news

of this event may not have gone any

further, if it weren't for YouTube.

A young guy nicknamed

churchill225 captured the mass

gathering on video and uploaded it to

the fi le-sharing site. Soon, thousands

of people began downloading the

video. rumours began circulating

about another surprise swoop on

another McDonald's. As I write, ten

more Golden Arches in Germany are

on the fl ashmob hit list.

And how has the global giant

responded to this, as yet, regional

phenomenon? The fl ashmob visits

have become a good-hearted

game between McDonald's and its

customers. It's a game because

both sides enjoy the interaction.

From McDonald’s point of view, the

fl ashmobs have secured massive and

positive attention in the press. Sales

have skyrocketed like never before.

Yet, McDonald's has not had to do a

thing, apart from engage in the game

with good humour.

I interviewed the President and

CEO of McDonald's Germany, Bane

Knezevic, about his company’s

response to the fl ashmob phenomenon

for my video blog. The interview

illustrates one facet of a new world

of opportunities for branding on a

shoestring. Welcome to the age of

word-of-mouth marketing, run by brand

consumers, not by the companies that

own the brands.

people poWer

A 2006 study conducted by the

Keller Fay Group, a market research

company specialising in word-of-

mouth communications, shows that

15 per cent of consumers account for

1.5 billion brand impressions per day.

In North America, 32 million word-

of-mouth leaders make this possible.

These people are all ordinary

consumers who also happen to be

involved in, on average, 184 brand and

brand-rumour oriented conversations

a week.

Exposure power through word-

of-mouth is also a matter of its

ubiquitousness and fl exibility. Ideas

are spread every place, everywhere,


and all the time - 24/7… at home (82

per cent), at work (56 per cent), in

other homes (55 per cent), on the

mobile phone (42 per cent) and, most

importantly, online, combining email

(32 per cent), instant messaging (17 per

cent) and blogs (9 per cent). The hitch

is that marketing currently has a direct

infl uence on only one or two of these

touch points. There’s enormous potential

for brands to systematically tap into the

word-of-mouth world. Just one video

in the hands of one of those 32 million

people could start the domino effect and

spread the word.

Let’s dissect this a bit, taking the

Copenhagen dynamite surfi ng and the

Braunschweig fl ashmob as examples. Is

it possible to replicate such a stunt and

integrate it with a marketing strategy?

Well, yes. It is possible. But there are

some fundamental rules you must follow

– rules that may cause you to tear your

hair out.

rule 1 / you are not the hero

In fact, the brand is no longer your

possession. Your brand is owned by

the consumer and you’re renting it. Why

is that? Today’s consumer has both

immense broadcasting power and well-

developed expectations of products and

services. Combined with the ever-present

ability to contribute to the global rumour

mill – whether intentionally or otherwise

– consumers are able to articulate

their brand experiences within a forum

fi lled with ready listeners. This means

that any marketing campaign needs to

involve your consumers in one way or

another. The reason the Copenhagen

dynamite surfi ng video spread as rapidly

as it did was because the concept and

product looked like it was owned by the

perpetrators. The brand was invisible. It

was as if the surf dudes had produced

it, fi lmed it, edited it and shared it with

their friends, because they were proud

of their achievement. The analogy for

marketers in this is that the exercise

cast the consumers as the heroes. So

campaign goals need to embrace this

aim: make consumers the heroes and

they’ll run with your message.

rule 2 / Be fearleSS

This is all about breaking marketing

rules. And, believe me, for you to make this

happen you need to be unconventional.

Take your approach way beyond your

operational comfort zone and go to the

very edge. Don’t shy away from fun,

humour, or provocation. Be prepared for

complaints. Key to word-of-mouth is the

fact that it’s no longer possible for your

brand to be good friends with everyone.

That’s too bland. Sure, some of the

world’s brand giants maintain the belief

that they need to be universally popular

and offend no one. But the rest of the

world’s brands don’t, and yours is most

likely among these.

rule 3 / Be oBServant

Playing on the consumer’s terms

means listening and observing. When

did you last scout all blogs, chat rooms

and bulletin boards to see how your

brand’s performing out there? I’m not

talking press clippings. Get into the

consumer stream and remain alert to

interesting trends. Act on them and fuel

them. Maybe the trend is already related

to your brand. Or it may not be. It doesn’t

matter. The idea is that you show that

your brand is listening and responding

to the outside world. Your customers will

love you for it.

To make all this possible, you need to

do your homework. And the fi rst step is

to prepare your boss for the new world

of consumer involvement you’re taking

the brand into. Before it happens. You

need to secure a mandate to follow your

instincts and to break the rules. That’s

how you’ll achieve difference. Educate

your team about the approach, and

equip it with the skills and infrastructure

it needs to handle your word-of-mouth

powered activities. I’m sure I don’t need

to reiterate this, but I will. The rules have

changed. You are no longer 100 per cent

in control.

Word of Mouth All Star

The Keller Fay Group instituted an

extraordinary prize in 2006: the world’s

fi rst ranking for the top ten word-of-mouth

brands. They declared the number one

‘Word-of-Mouth All-Star’ to be Toyota,

whose fuel-effi cient, reliable vehicles

had been making signifi cant inroads in

the U.S. auto market, overtaking Ford

and toppling GM. Next on the list were

Wal-Mart, Honda and Apple’s iPod.

Each of those brands had secured

free word-of-mouth coverage worth

millions. And most of them did so without

even having a plan. We’re almost seeing

a replay of the advent of direct marketing

in 1965, when no one had a direct

marketing plan. Or of the dawn of the

Internet in 1995. No one had an Internet

marketing plan. But direct and Internet

marketing sure happened.

This year promises to pose a buzz

question: “Hey, what’s your word-of-

mouth plan?” I’m not yet aware of any

[Cont. on Page 30]


WRITER: ALEX RIBBLE

optimize

HERE’S a question: How much

revenue did your website generate

for your business in 2008? If you

answered, “none, my business doesn’t

sell anything online”, then strap on

those learning spurs cowpoke ‘cause

you’ve come to the right place!

Nowadays, true online revenue

is seldom classifi ed as merely a

fi nite number, but incorporates a

best-guess amalgamation of your

business’s coveted brand equity and

websites’ dynamic range. Simply put,

the greater number of right people

that know about and can fi nd your

business, the greater the chance for

overall success. The catalyst for this

newfangled measurement you ask…

the all-seeing, all-powerful search

engine.

Internet usage is at an all time

high, and by now even the most

stubborn and least computer-savvy

have Google’d. To the business world,

the search engine has also become

the stable for a new breed of success

measurement focused on content

relevance, optimization, and über-

fast search results. (0.08 seconds?

Felt more like an eternity!) So while

you’re still frantically trying to track

down the intern who built your website

last millennium, your competitors

have embraced technology and are

positioning themselves to gobble up

as many industry related keyword

phrases as they can swallow.

(A keyword phrase, for your reference,

is a general term defi ning a set of

words used when conducting an online

search). Knowing which keywords and

phrases your potential customers are

using will not only help you increase

your business’s visibility in search

engine result pages, but ultimately

drive traffi c to your website.

For my visual thinkers, picture each

keyword phrase as a small treasure

– a delicate bit of pirate’s booty (no,

not the popcorn) awaiting capture

by the plundering mongrel horde of

competitors. To further this illustration,

(and minus any more swashbuckling

references) I’d like you to imagine

yourself and 10 competitors side by

side in a wide-open fi eld. In the distance

– perhaps 50 yards away – you notice

a group of bright red rubies glistening

in the sun. You squint harder to see

that beyond the rubies are even bigger

and more exotic looking jewels. You

glance to your left and suddenly half

your competition is on horseback. To

the right, your closest competitor has

just produced a shiny new motorcycle.

You look towards the ground at the

trusty sneakers that have carried your

business to this point and realize for

the very fi rst time, they just won’t be

enough to sustain your success for the

long-term. It’s a brand new race, and

it’s time to upgrade to a better means

of transportation. Now where the heck

is that motorcycle salesman?!

So why does the Internet hate

your business? It’s not like you went

around saying a bunch of bad things

about the Internet and now it’s angry

with you, right? right. Although the

Internet is devoid of human emotion,

as web-conscious business people

we’re continuously asking, “where’s

the love”? Well, I can sum it up for

you in one sentence: ignore anything

long enough, and you can pretty well

expect to be ignored in return. True,

SE’s are getting smarter, but organic

search results are only a minor part of

the overall search engine marketing

process. (And it is a process)

So where to dive in? A great place

to start is by identifying those search

terms used by potential customers

when hunting for information on

Search Engine Marketing:

Why The Internet Hates Your Business


comparable products and

services. While you’re at it, you’ll

also want to fi nd out which of

your competitors have websites

optimized to receive those

searches. Most search engine

optimizers (SEOs) can generate

a relatively low-cost report you’ll

be able to use when shaping a

new plan of attack. (My company

provides this type of study for

about $1500.) This part of the

process will be to identify what we

call “low hanging fruit”, or relative

search terms your competitors

are either not focused on or not

optimized to take advantage of.

The next step is to utilize

this information to deploy a

new strategy, refocusing your

web content to chase some of

those highly-searched, low-

targeted keywords and phrases

to effectively gain greater market

share on your competition. This

new plan will undoubtedly call for

you to get your content in vigorous

shape. Now, granted there are

certainly those of you out there

capable of running every aspect

of your business with ease,

but the majority of us generally

accept the fact there are some

things we do well and others

better suited for a specialist.

Hiring a professional search-

engine-savvy copywriter can do

wonders for both your content

and brand, and could very well

be the best marketing investment

you’ll make this year. And while

I do appreciate the fact that you

know your operation better than

anyone, the business of writing

for the web is tricky business.

Better to have backup.

Alex is the Business

Development Manager for

Los Angeles-based

Enthusiast Web Solutions.

Email: [email protected]


exhibit

WRITER: BARRY SISKIND

How to Exhibit Staff Training

IT’S an age-old problem. Managers intuitively know that

providing staff with specialized training makes them more

proficient, helps increase confidence and improves the bottom

line. So, you might ask, what is the problem? The answer is

simply they can’t prove it. And, proof is what’s needed in order

to justify the time and cost of providing training.

The challenge of creating a rOI for training is that it

needs something to be compared to and without the ability

to know what the training investment is being compared

to, calculating the rOI is next to impossible. The root

of the issue is the establishment of benchmarks. Here

is where many exhibit managers fall down in their ability

to collect meaningful data from their exhibit experiences

and to use that data to establish a benchmark from which

future performance is compared.

Here is an example of a few of the bits of data that should

be included in a post-show statistical analysis:

SaleS CyCle This is a calculation of the average time it takes once your

sales folks have met someone to the time it takes that contact

to make a decision. This is an important number because once

it is defined it helps your booth staff focus on the right people.

average time to Convert a viSitor to a lead

This is important because it helps your booth staff

determine the length of a booth presentation and helps them

manage their time.

audienCe profile

You need to have a breakdown of the audience at any event

to determine if there is a match between who is attending and

the profile of your target contact (that is the person most likely

to turn into a high quality lead) that you should have created

ahead of time.

SuCCeSS ratio

Success ratio answers the question “If you gave one of

your staff 10 good quality leads, how many of these leads will

be converted into a sale in the next 12 to 18 months?” The

challenge is that when you measure rOI the number is often

distorted because actual sales take time depending on your

sales cycle. However knowing what the success ratio is helps

you put real numbers to short term success.

paSt performanCe

Knowing what you have accomplished in similar situations

can provide a guideline for what you can realistically expect

in the future.

lead information teChnology

Another crucial bit of information is hidden in the tools you

have provided your booth staff to help them succeed. One of

those tools is some mechanism for collecting and recording

consistent contact information. This can be electronic, manual

or a combination of both.

Measure

[Cont. on Page 30]


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Continued Stories...

BenChmarKS

Now you are ready to create benchmarks to measure the effects of training.

For example let’s assume that at an average event your staff, over a period

of two days, can collect 20 quality leads. The improvement on this rate is the

standard you use to measure the investment in training. Your training budget

now comes with an objective that says, “If everything else is equal and the

only thing I will invest in is training, then we should realize a 15% increase in

the number of leads obtained at an event.

meaSuring training In this case the 15% was an assumed number; in your case the best way

to come up with a realistic projection is to get your staff involved in setting the

expectation. Ask them what they need and what you can expect when you

provide it. Then, measure the effects of that decision on the benchmark you

have already established.

In this age of accountability for marketing and training budgets, the need

to prove that the investment actually has a payoff has never been greater.

The trick is to get into the habit of collecting data on your performance and

then doing something with it.

[Cont. From Page 24] [Cont. From Page 28]

companies, which have introduced a dedicated

word-of-mouth budget. The brands, which

are engaging in word-of-mouth marketing,

are, typically, looting other budgets to trial the

concept. But this phenomenon needs to be

taken seriously. And for that to happen, it needs

a cash commitment.

The good news is that the budget you need

for your explosives isn’t huge. The bad news

is that somewhere, in the innocent chat of

friends, the creative collaboration of student

fi lmmakers, overheard discussions on a bus,

shared irritations aired in the work canteen,

the bomb has been purchased and its fuse has

been lit.

Whether you have dedicated a budget to

word-of-mouth marketing or not, you won’t be

able to stop the bomb exploding. So you’d

better be prepared. That way, you can run the

show, rather than letting it run you.


Free Product InformationFor free product information from these suppliers, please complete and mail this page to:

Brilliant Results Magazine, 9034 Joyce Lane, Hummelstown, PA 17036or fax to (717) 566-5431

Please circle items of interest.

Name Title

Company Industry

Address City State Zip

Phone Fax E-mail

Ad Index August 2009 Supplier .................................................................... Page No.

3M ® ..........................................................................................................Back Cover

Aprons, Etc. ............................................................................................................. 29

Brilliant Publishing .................................................................................................... 27

Promobiz USA ........................................................................................................... 7

Display Solutions by Aprons, Etc. ............................................................................ 29

GrOLINE ....................................................................... 13, 15, 25, Inside Back Cover

Hallmark Insights .................................................................................................11,29

MagiCubes ................................................................................................................. 3

Packntote ................................................................................................................. 29

PromoBiz USA ........................................................................................................ 29

PromoreThink.com .................................................................................................. 30

USB Widgets ........................................................................................................... 5

Warwick Publishing ......................................................................... Inside Front Cover

August

advertiser’sindex


departmentname hereWRITER

Last word

CONSUMER insights resulting from a recent Epsilon Targeting

survey could hold the key to your brand’s ‘win-back’ strategies. While the current

economic climate is providing the impetus for American consumers to become

more frugal and to switch from their favorite national brands for food, household,

health and personal care products, they are far more reluctant to switch to store

brands on purchases for children and pets, according to the latest research

from North American targeted marketing leader ICOM, a division of Dallas-

based Epsilon Targeting. According to this Epsilon Targeting Survey, 59% of

Americans are willing to forsake Pre-recession favorite food and household

brands, but only 12% have switched to store brands for childcare products.

ICOM’s May survey of 1,530 American consumers reveals that the threat of an

exodus to store brands prompted by the current economy varies by category. The

following data shows the percentage of consumers in each category who have

switched to store brands and away from national brands in the past six months:

59% • .... for food and household products;

48% • ........................... for health products;

48% • ...............for personal care products;

23% • ........................ for pet care products;

12% • ..................... for child care products.

The less-risk-means-more-switch trend revealed itself as well in the category

of over-the-counter medicinal healthcare items. ICOM survey responses show

a direct correlation between severity and specifi city of ailment and openness

to switch. The following data depicts the percentage of consumers in each

category who have switched to less expensive store brands and away from

national brands in the past six months:

42.2% • .............for general pain relievers;

31.7% • .....for cold and cough medicines;

30.8%• ..................... for allergy remedies;

21.5% • ............. for heartburn medication.

According to ICOM Marketing Director Warren Storey, the takeaway from this

survey is that “Perceived risk, that’s what is driving these key consumer decisions.

This is the kind of insight that national brands can use to reach customers with

promotions that meet their needs and bring them back. These results highlight

that understanding customer psychology, and tailoring promotions accordingly,

COUPONS, BRANDS & THE CURRENT ECONOMY

PERCENTAGE OF CONSUMERS IN EACH CATEGORY WHO HAVE SWITCHED TO STORE BRANDS AND AWAY FROM NATIONAL BRANDS

PERCENTAGE OF CONSUMERS IN EACH CATEGORY WHO HAVE SWITCHED TO LESS EXPENSIVE STORE BRANDS AND AWAY FROM NATIONAL BRANDS


COUPONS, BRANDS & THE CURRENT ECONOMYis a significantly more effective

win-back strategy than scatter-

shot, one-size-fits-all offers.”

In a separate ICOM survey, the

grocery store was firmly established

as the epicenter of the American

consumer’s coupon activity. In

that survey of 1,827, a significant

86.5% of respondents, who said

they had used coupons in the last

month, identified the grocery store

as the place of redemption. The

grocery far outpaced its closest

competitors, which included

restaurants at 46.5%, department

stores and mass merchants such

as Wal-Mart at 41.3%, and drug

stores at 34.9%.

These figures would seem to

indicate that any stigmatization

previously associated with coupon

usage is receding in the wake

of current economic conditions.

Fully 86.8% of respondents in this

survey said they are using the same

amount or more coupons than they

used a year ago. One out of three

said unequivocally they’re using

more coupons than a year ago.

“The good news for national

brands is that there is, in fact,

an opportunity to win back

customers who have switched.

Some marketers were worried

they’ll never return. But the win-

back depends on knowing who is

switching and why, and responding

with targeted incentives based on

that strategic information,” ICOM

Marketing Director Storey said.

In another sign of the times,

survey respondents made it clear

that customer loyalty rewards

supporting basic household

purchasing are the most appealing.

That means groceries and gasoline.

70% of respondents said they’re

interested in getting rewards at

the grocery, 60.7% said gasoline.

The next closest categories were

retail stores at 41.2%, household

products at 40.3% and travel at

29.3%. For more details about

ICOM’s surveys please visit

www.epsilontargeting.com/icom.html.

Epsilon, www.epsilon.com, is the

world's largest permission-based

email marketer and one of the

industry’s leading marketing

services firms. Epsilon services

include strategic consulting,

database and loyalty technology,

proprietary data, predictive modeling

and a full range of creative and

interactive services including brand

and promotional development, web

design, email deployment, search

engine optimization and direct mail

production. Epsilon Targeting, the

new data division of Epsilon,

combines the collective resources

of Epsilon Data Services, ICOM and

Abacus to form the industry’s largest

set of data solutions.

Brilliant results thanks

Tim Sansbury of JZMcBride

& Associates, www.

jzmcbride.com, for providing

information for this article.

“The good news for national

brands is that there is, in fact, an opportunity to win back customers

who have switched. Some marketers were worried they’ll never return. But the win-

back depends on knowing

who is switching and why, and responding

with targeted incentives based on that strategic

information,”


off the cuff

A lot of companies have chosen to downsize, and maybe that was the right thing for them. We chose a different path. Our belief was that if we kept putting great products in front of customers, they would continue to open their wallets. — STEVE JOBS

Give a man a fi sh and he will eat for a day. Teach a man to fi sh and he will eat for a lifetime. Teach a man to create an artifi cial shortage of fi sh and he will eat steak. — JAY LENO

1. In a television commercial viewers were asked if Gillette Foamy (in a huge pile on the tracks) was thick and rich enough to stop a roller coaster? Was it?a. Yes

b. No

2. How fast did the man who blitzed through the Federal Express commercial speak?a. 300 wpm

b. 400 wpm

c. 500 wpm

3. How old is the Sun-Maid raisin trademark?a. 50 years

b. 70 years

c. 90 years

4. In what year was the microwave oven introduced as a consumer product?a. 1955

b. 1965

c. 1975

5. In 1666 the Parliament of Toulouse, the high court for Southwestern France, granted protection to a certain product name. What was the name of this product that has one of the oldest protected product names in the world?a. Brie

b. Roquefort

c. Camembert

6. In what country does Domino's Pizza have a reindeer sausage pie on its menu?a. Iceland

b. Greenland

c. Mongolia

7. If you fl ew due east from Cape Horn where would you next pass over land?a. Cape of Good Hope

b. Cape Horn

c. Australia

8. What was the original name of the Popsicle?a. Epscicle

b. Icesicle

c. Fruitsicle

9. What product category did each of the following brand names identify: Confi dence, Charm, Floy, Tall Pine, Trublu, Mother-in-Law, Zest, and Yacht?a. California Soap

b. Florida Citrus Fruit

c. Wisconsin Cheese

10. What is Lochan Ora?a. Scottish Village

b. Large Fish

c. Liqueur

ANSWERS: 1. B – 2. B – 3. C – 4. A – 5. B – 6. A – 7. B – 8. A – 9. B – 10. CSOME TRIVIA QUESTIONS COURTESY OF WWW.SWLEARNING.COM


3M, P

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it an

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lor C

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are

trad

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. ©3M

200

9.

For more information, please contact your 3M Promotional Products Distributor. 1-877-863-6961 or visit www.3M.com/promote

The Brand you trust. The Brand you rely on to get your message across.

Sheet after sheet, impression after impression, put your message on a Post-it® Note and get noticed everyday!

For more information, please contact your 3M Promotional Products Distributor. 1-877-863-6961 or visit www.3M.com/promote

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