Marketing Factoids

  • Music sales in the United States will decline to $9.2 billion in 2013, from $10.1 billion this year. source ›
  • Acquiring a new customer costs about five to seven times as much as maintaining a profitable relationship with an existing customer source ›
  • Consumers ages 18 to 27 say they use the Internet nearly 13 hours a week, compared to viewing 10 hours of TV source ›
  • more factoids ›

Archive for September 2007

To view the latest BackPocket articles, visit the home page.


SEP 2007

Veni, Vidi, Wiki: Latin Isn't Dead on "Vicipaedia"

Online Reference Features Britannia Spears, Disneyi; Disputing Computatrum

Wall Street Journal, September 29, 2007 — It's not that ancient Romans didn't know a thing or two about wild sex. They had their Bacchanalia, after all. But lacking video technology, they had no expression for "sex tape." And that is why writing about Paris Hilton in Latin can sometimes be so difficillimum.

Tag: Blogs
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SEP 2007

Another Good Thing: Marthapedia

Martha Stewart Living Omnimedia to Launch Social-Networking Site

Advertising Age, September 27, 2007 — NEW YORK (AdAge.com) — Martha Stewart, the paragon of expertise as content, is adopting the style of social media for her next website — to be called "Marthapedia." But Ms. Stewart, who didn't get where she is by suggesting that the hoi polloi know more than she does, made clear that Marthapedia will not be so freewheeling as, say, Wikipedia. Editors at Martha Stewart Living Omnimedia will check to see if the public's ideas are better than their own, she said.

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SEP 2007

The Fastest-Growing Medium? Shopper Marketing

Deloitte Study Shows In-Store Spending Is Outpacing Even the Internet

Advertising Age, September 27, 2007 — BATAVIA, Ohio (AdAge.com) — The fastest-growing medium isn't the internet, but shopper marketing, where retailers and package-goods marketers are shifting hundreds of millions of dollars — doubling their expenditure in the past three years alone.

A new study finds shopper marketing has grown from 3% of the overall marketing budgets of the 19 package-goods manufacturers surveyed in 2004 to 6% this year. The manufacturers expect it to reach 8% of marketing budgets by 2010.

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SEP 2007

Beyond the 4Ps: The 5Ts of Marketing Operations

Marketing Profs, September 25, 2007 — CMOs of global companies are now confronted with unparalleled challenges—and opportunities

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SEP 2007

Big Brewers Gut Ad Spend, Sell More Beer

Exclusive: Miller and A-B Move More Money to Unmeasured Media

Advertising Age, September 24, 2007 — Spend less on measured media, reap more sales.

That's appears to be the lesson from the big brewers, long among the steadiest and most stalwart users of traditional mass media, who are now pouring their ad dollars elsewhere at a froth-inducing rate. According to TNS Media Intelligence, top brewers cut measured media spending a whopping 24%, about $131 million, during the first six months of 2007, following a 12% cut during 2006. At the same time, the brewers insist they haven't cut spending at all — and in many cases have increased it.

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SEP 2007

China's Brands: Damaged Goods

Food and toy recalls have created an image problem for other mainland exporters

BusinessWeek, September 24, 2007 — Made in China. Those three words are shaping up to be a marketer's worst nightmare. After a year of massive toy recalls, tainted toothpaste scares, and poisonous pet food incidents, consumers around the globe are thinking twice—or more—before buying Chinese-made goods. Indeed, in a new survey of marketing and business professionals worldwide, 69% of respondents said the phrase "Made in China" hurts mainland brands.

Category: Brand Blunders
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SEP 2007

Cross-Media Case Study: Rock 'n Roll Is In Their Jeans

Lucky Brand's tour bus hits the road - and the cyberhighway

MediaPost Publications, September 24, 2007 — There's David Lynch's psychological thriller Lost Highway, AC/DC's "Highway to Hell" and America's 1970s hit "Ventura Highway."

Each evokes a certain nostalgic jag. And then there's the rock 'n roll tour - think Almost Famous. Lucky Brand Jeans manages to tap into a groovy 1960s-'80s vibe, while injecting a contemporary edge via its DenimHighway.com initiative, a grassroots marketing/party/brand campaign that invites consumers to interact with the brand outside retail.

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SEP 2007

Economy Drives Increase in Online Ad Plans for '08: Survey

MediaPost Publications, September 24, 2007 — THE ECONOMIC DOWNTURN THAT HAS put a cloud over traditional media spending is not having the same effect on online advertising.

That's one indicator from a survey of MediaPost members conducted this month by InsightExpress. While the survey is only directional in nature, a full 70% of the 59 respondents said their fourth-quarter online budget is up over the same period in 2006.

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SEP 2007

Managing Innovation

How to get the most out of your company's big ideas

Wall Street Journal, September 24, 2007 — Managing innovation is one of the biggest challenges that companies face. They not only need to come up with new ideas, but they also need to foster a culture that encourages and rewards innovation. Otherwise, they risk being overtaken by their competitors.

At a recent panel discussion at the Tech Museum in San Jose, Scott Thurm, management-news editor for The Wall Street Journal, talked about managing innovation with four experienced managers at Silicon Valley technology companies: Marthin De Beer, senior vice president of the emerging-markets technology group at Cisco Systems Inc.; Judith L. Estrin, chief executive of Packet Design Inc., a network-technology company; Douglas Merrill, vice president of engineering and chief information officer of Google... continue reading

Category: Innovation
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SEP 2007

Take a number, Southwest fliers

Airline to keep open seating but assign places in line

Chicago Tribune, September 20, 2007 — Kiss the cattle call goodbye, but get ready to take a number the next time you fly Southwest Airlines.

The Dallas-based airline said yesterday that it will change the open-seating system that has been central to its maverick identity through 36 years in business by assigning numbers to position passengers in boarding lanes

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SEP 2007

Wal-Mart Brands Its Green Strategy

Retailer to Unveil Energy-Saving Line Of Own Light Bulbs

Wall Street Journal, September 20, 2007 — One of the biggest U.S. proponents of energy-saving, compact-fluorescent light bulbs will double its bet on the technology as Wal-Mart Stores Inc. unveils its own line of the spiral-shaped bulbs under one of its in-house brands.

Wal-Mart, the world's largest retailer by sales, plans for its Great Value CFL bulbs to cost less than brand-name bulbs, pricing a pack of four bulbs at $7.58, or roughly the price of a three-pack of brand-name bulbs. The Bentonville, Ark., retailer intends to stock its bulbs in 3,000 — or nearly three-quarters — of its U.S. stores this month. It is expected to announce its plan today.

Category: Brand Strategy
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SEP 2007

What Web Marketers Should Know About Twitter

Marketing Profs, September 20, 2007 — If you're responsible for the direction of the online strategies for your company or organization, you've probably been hearing buzz about Twitter, a next-generation instant messaging tool. Even if you're new to Twitter, this will—by linking to resources and providing a starting point for your strategy—serve as a guide to educate you and help you make a decision.

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SEP 2007

New Push Into China by N.B.A.

New York Times, September 19, 2007 — In an age dominated by Chinese exports, one import from the United States has stood taller than most here: basketball.

Timothy Chen, chief executive of Microsoft’s China operations, was hired to promote the National Basketball Association.

Now, in a move certain to highlight the growing importance of China to both the National Basketball Association and the sport, the N.B.A. plans to announce Wednesday the formation of a Chinese subsidiary. To head it, the league has chosen Timothy Chen, chief executive of Microsoft’s China operations and one of the best-known business executives in China.

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SEP 2007

Are EBay and Others the New New Media?

Standard Definition Gets Foggy When E-Commerce Sites Start Selling Ad Space

Advertising Age, September 18, 2007 — What makes media "media"? Increasingly, that question is getting harder to answer.

The web, it turns out, is doing more than just transforming media-business models — it's blurring the definition of media in the first place.

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SEP 2007

Heinz Anticipates Another Success With Consumer Ads

MediaPost Publications, September 18, 2007 — HEINZ IS GOING BACK FOR more consumer-generated ketchup spots with Take Two of its "Top This!" TV Challenge. Viewers watching Sunday night's Emmy Awards show saw the round one winner from Andrew Dobson of Wheelersburg, Ohio, who runs a one-man production shop. The spot's tagline: "The Kissable Ketchup."

Dobson, 29, was the winner of the Heinz "Top This" TV Challenge, which invited consumers to produce homemade Heinz commercials and then upload them for voting onto YouTube for a chance to win $57,000 and national exposure.

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SEP 2007

The New Fear Factor: 'Little' Brands Do Better

MediaPost Publications, September 18, 2007 — LEAD IN TOYS. DATA BREACHES. Tainted pet food. Mad cow. Global climate change. Pending debt implosion. No wonder consumers are a little jumpy these days. And while there's no evidence of consumer backlash on any single issue, new research from the Natural Marketing Institute suggests that, collectively, this new "fear factor" is affecting the way America shops, causing consumers to favor smaller, quirkier brands that seem "local" over soulless brand names from mass marketers.

Category: Brand Strategy
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SEP 2007

A Madison Avenue maven speaks out

Shelly Lazarus, the CEO of advertising agency Ogilvy & Mather, answers your web questions about the branding business and her legendary career.

FORTUNE, September 17, 2007 — She's best known for building other people's brands, but Lazarus herself is one of the biggest names in advertising. With a blue-chip client roster that's the envy of Madison Avenue, the head of WPP's Ogilvy & Mather runs one of the most prestigious agencies in the world. Fortune's Matthew Boyle asked her your questions - and ours - on everything from Mattel's recall crisis to what it's like to be on the GE board.

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SEP 2007

Buy a Laptop for a Child, Get Another Laptop Free

One Laptop Per Child, an ambitious project to bring computing to the developing world’s children, is reaching out to the public through an interesting marketing campaign.

New York Times, September 17, 2007 — One Laptop Per Child, an ambitious project to bring computing to the developing world’s children, has considerable momentum. Years of work by engineers and scientists have paid off in a pioneering low-cost machine that is light, rugged and surprisingly versatile. The early reviews have been glowing, and mass production is set to start next month.

Orders, however, are slow. “I have to some degree underestimated the difference between shaking the hand of a head of state and having a check written,” said Nicholas Negroponte, chairman of the nonprofit project. “And yes, it has been a disappointment.”

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SEP 2007

Return Of The Easy Rider

With U.S. cycling in decline, bike parts giant Shimano steered the industry in a new direction

BusinessWeek, September 17, 2007 — This summer, cyclists in skintight shorts raced through the French countryside in the annual Tour de France. The winner, Alberto Contador, rode to victory on a Trek Madone 6.9 Pro that would cost consumers $8,249.99. Alice Wilkes also bought a Trek bike this summer, but she had a very different experience. Wilkes bought a Trek Lime, which shifts automatically so riders don't have to fuss with gears, stops when cyclists pedal backwards (like in the old days), and has a big, comfy seat. It retails for $589.99

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SEP 2007

The many faces of Ralph Lauren

America's billion-dollar designer is going global and upscale while creating a new in-house brand for J.C. Penney. Can he really sell all things to all people?

FORTUNE, September 17, 2007 — Ralph Lauren was doing reconnaissance, lingering outside one of his stores watching customers. On this crisp fall Saturday afternoon a few years ago, he had driven one of his vintage cars from his estate in Katonah, N.Y., through the leafy back roads of Westchester County to the nearby town of New Canaan, Conn.

At the store Lauren made an observation that would add a new chapter to his legacy. The mothers were leaving with shopping bags, he noticed, but the daughters were exiting either empty-handed or with just a shirt for their dad or boyfriend.

As Lauren stared at this demographic segment that had evaded his $4 billion fashion empire, he had a feeling that reminded him of the character played by Steve McQueen in "The Thomas Crown Affair".

In... continue reading

Category: Brand Strategy
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SEP 2007

Think Big

To win market share, don't try to influence what brand of product people buy. Change how they use the product in the first place

Wall Street Journal, September 15, 2007 — In today's fast-moving marketplace, companies typically compete by improving their products in small ways. They make them visually more attractive, or more reliable, or less costly. Maybe they tinker with the marketing.

The result is predictable: Competitors make a countermove — and in the end, market share moves slightly, if at all.

In thinking small, though, companies miss out on the chance to win big. Instead of trying to influence what brand people buy, they should be focusing on what people buy.

Category: Innovation
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SEP 2007

Together We Innovate

How can companies come up with new ideas? By getting employees working with one another.

Wall Street Journal, September 15, 2007 — When it comes to innovation, the myth of the lone genius dies hard.

Most companies continue to assume that innovation comes from that individual genius, or, at best, small, sequestered teams that vanish from sight and then return with big ideas. But the truth is most innovations are created through networks — groups of people working in concert.

Category: Innovation
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SEP 2007

Think Big

Prophet, September 14, 2007 — In this article that appeared originally in the Wall Street Journal, Dave Aaker argues that to win market share, don’t try to influence what brand of product people buy. Change how they use the product in the first place.

Category: Innovation
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SEP 2007

TV veterans produce Web-only show

Associated Press, September 13, 2007 — The creative minds behind such TV shows as "Thirtysomething" and "My So-Called Life" are launching a Web-based show, hoping to find the artistic freedom online that they say is lacking on broadcast networks. The show, called "Quarterlife," will debut Nov. 11 on MySpace.com and will also be paired with its own social networking site that will include story extras as well as career, romance and other information for the show's young audience.

Tag: Video
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SEP 2007

Seeking Higher ROI? Base Strategy on Customer Equity

Why CMOs Need to Pay Closer Attention to a New Metric to Focus Investments on the Most Profitable Actions

Advertising Age, September 12, 2007 — There are many ways to invest marketing dollars to try to grow revenue, but how many of them really work — and how can we tell which ones will be profitable? Smart companies increasingly are realizing that marketing-investment decisions need to be based on apples-to-apples comparisons, and customer equity is the strategic metric that makes that possible.

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SEP 2007

The Graying of the Web

Technology investors and entrepreneurs are starting a host of new social networking sites aimed at baby boomers and graying computer users.

New York Times, September 12, 2007 — Older people are sticky.

That is the latest view from Silicon Valley. Technology investors and entrepreneurs, long obsessed with connecting to teenagers and 20-somethings, are starting a host of new social networking sites aimed at baby boomers and graying computer users.

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SEP 2007

Acting on Video Ads

KenRadio, September 11, 2007 — The new study showing the value of video ads on quality content sites, finding that consumers are more likely to act on ads they see on media sites, versus portals or user-generated content (UGC) sites, according to Online Publisher's Association. Over one-third of consumers on magazine (38%), newspaper (37%), and online-only news (35%) sites say they have searched for more information after watching a video ad, while about one-quarter did so after watching an ad on a portal (27%) or UGC (24%) site.

Tag: Video
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SEP 2007

Hotel Chains Grapple With Meaning of Green

Marriott, Starwood Face Confusing Products, Standards In Bids to Make Lodging Environmentally Friendly

Wall Street Journal, September 11, 2007 — As director of Element, a brand of environmentally conscious hotels being developed by Starwood Hotels & Resorts World Wide Inc., Nicholas Lakas picks his way across a landscape of so-called green products each time he steps into his office.

Among the items: salt and pepper shakers billed as 100% recyclable; piles of towels and sheets made with organically grown fibers; boxes of organic snacks; and a countertop slab made from recycled materials.

"We get so many products, so many phone calls," Mr. Lakas says. "I have nowhere to put it, and we are always looking at it and evaluating it." He is shopping for environmentally friendly products — from plates and light bulbs to heating and air-conditioning systems — to be used in the first hotel in the... continue reading

Category: Brand Strategy
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SEP 2007

Feeling Trashed on the Web?

How to avoid having your brand message hijacked

BusinessWeek, September 10, 2007 — You've heard the hype about viral, homemade TV ads on YouTube. You've read scathing peer-to-peer product reviews on blogs. And you've seen brands evangelized or slammed by teens and twentysomethings on social-networking sites. On Aug. 8, for example, Wal-Mart Stores launched the Roommate Style Match group on Facebook; 1,000 members joined. The idea was to market dorm furnishings to college-age audiences, but several hundred vehement comments surfaced about Wal-Mart's labor practices, hijacking the brand's message.

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SEP 2007

How To Make A Microserf Smile

While Google was turning heads with its employee perks, an unlikely manager took on morale in Redmond

BusinessWeek, September 10, 2007 — Steven A. Ballmer had an epic morale problem on his hands. Microsoft Corp.'s (MSFT ) stock had been drifting sideways for years, and Google envy was rampant on the Redmond (Wash.) campus. The chronically delayed Windows Vista was irking the Microserfs and blackening their outlook. So was the perception that their company was flabby, middle-aged, and unhip

Category: Brand Strategy
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SEP 2007

Marketing Mix Push by Parade Ups Stakes for Media Owners

Staid Sunday Magazine Boosts Sales 20% for P&G, Kraft, Campbell

Advertising Age, September 10, 2007 — It turns out that Parade, the venerable, some might say frumpy, Sunday magazine inextricably linked to the struggling newspaper industry, is a return-on-investment powerhouse.

At least that's what marketing-mix modeling the publication commissioned from Information Resources Inc. appears to show, in a move that increases the pressure on other media players to similarly prove their worth.

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SEP 2007

Neiman Marcus Builds Brand Via ... YouTube?

Luxury Retailer Takes Over Site's Front Page to Show Consumers Its Hipper Side

Advertising Age, September 10, 2007 — What is one of the country's most high-end, trend-right department-store brands doing on a site best known for laughing-baby videos and teenage webcam musings? Oh, just building its future customer base.

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SEP 2007

ANA Accountability Study: Marketing, Finance Not on Same Metrics Page

Marketing Charts, September 7, 2007 — Formal marketing accountability programs are becoming an accepted business practice among marketers, but dissatisfaction about marketing measurement and internal marketing accountability processes is rampant, according to a new study from the Association of National Advertisers (ANA).

Though almost all surveyed companies (92%) have created some type of marketing accountability process, the study found a lack of consistency in how those processes are managed and which departments are responsible.

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SEP 2007

Steve Jobs Offers Rare Apology, Credit for iPhone

Wall Street Journal, September 7, 2007 — Many people stood in long lines to get Apple Inc.'s iPhone — and paid a lot for it. In the end, Steve Jobs concluded that such loyalty counted for something.

Responding to a flood of emails complaining about a surprise iPhone price cut, Mr. Jobs apologized publicly and said Apple will offer a $100 credit at Apple stores to all iPhone users who paid the original price. "Our early customers trusted us, and we must live up to that trust with our actions in moments like these," Mr. Jobs wrote in a letter posted yesterday on Apple's Web site.

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SEP 2007

Use of new media between B2B & B2C

KenRadio, September 6, 2007 — While B2B (business to business) and B2C (business to consumer) marketers are both embracing new media platforms, there are some marked differences in their usage, goals and, perhaps most important, budgeting for new media. B2B and B2C marketers plan to increase their new media budgets this year, with 78% of B2C marketers and 66% of B2B marketers reporting budget increases for new media. Only 3% of B2B respondents said they planned to spend less on new media this year, according to a new study by B2B Magazine.

Tag: B2B
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SEP 2007

Four of 10 Americans Read Blogs, One-Third of Those Click on Ads

Marketing Charts, September 5, 2007 — Blogging has entered the US mainstream, with nearly 4 out of 10 Americans having visited a blog, and 8 of 10 now knowing what a blog is, according to a recent Synovate/MarketingDaily study. Moreover, “8% of Americans currently have their own blog,” said Tom Mularz, SVP at Synovate. “This is surprising given that a few years ago hardly anyone knew what a blog was.”

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SEP 2007

Selling P&G

How do you sell $76 billion of consumer goods? One brand at a time. Fortune's Geoff Colvin talks with Jim Stengel.

FORTUNE, September 5, 2007 — In the vast world of marketing and advertising, James Stengel just may be the king. He is Procter & Gamble's global marketing officer, and thus commands the world's largest ad budget - about $6.7 billion. It's an enviable position, but uneasy lies the head that wears an ad king's crown. The Digital Age is revolutionizing the way consumers use media, though no one yet knows what the new model will be or if it will last longer than an eye-blink. Product innovation happens faster than ever.

Category: Brand Strategy
Tags: P&G, Global, Growth
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SEP 2007

How P&G Led Also-Ran To Sweet Smell of Success

By Focusing on Fragrance, Gain Detergent Developed A Billion-Dollar Following

Wall Street Journal, September 4, 2007 — Gain was nearly a loss for Procter & Gamble. The low-priced laundry detergent, launched in 1969, had grown a small following among cost-conscious consumers in the South but failed to build nationwide appeal. With sales dwindling, in 1981 P&G decided to give Gain one more chance by repositioning it as a heavily fragrant detergent. Touting scent, instead of cleaning performance, was a departure from the long-held formula of laundry marketing.

Category: Brand Strategy
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SEP 2007

Honda Dealers Selling Cars ... and New Image

Case Study: After Push, SoCal Consumers See Salesmen as Less Sleazy

Advertising Age, September 3, 2007 — ay, "car dealers"; think, "sleazy."

That's been the association Americans have had for the past 30 years, according to Gallup polls that routinely lump dealers at the bottom of the barrel when it comes to ethics and trustworthiness. But now, a group of Honda dealers is out to change that reputation, at least in Southern California. About six months ago, it acknowledged dealers' notorious image and now is aiming to clean it up. The tactic: a marketing campaign to prove Southern California Honda dealers are helpful.

Tags: Honda, WOM
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SEP 2007

Q+A: Toyota CGM Exec Monitors The Good, The Blog, and The Ugly

Brandweek, September 3, 2007 — When bloggers write smack about Toyota, Bruce Ertmann is there to read every word and, in some cases, respond. As corporate manager of consumer-generated media at the Torrance, Calif.-based automaker, Ertmann constantly trolls the Web to see what people are saying. This includes both the gray anonymity or the way-too-public blogger world, and not just the good and the bad, but also the ugly. Although other car companies also have people who track and write blogs, Ertmann's title is believed to be the first in the U.S. auto trade.

Tags: Toyota, Blog
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SEP 2007

The CMO Challenge: Exiting the Comfort Zone

Prophet, September 3, 2007 — In this article, Prophet Chairman and CEO Michael Dunn argues that in order to be effective, marketers need to up their game, take on the new media, and be prepared to be adventurous, extending their influence over many of the critical business growth drivers.

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SEP 2007

Countering the Innovation Backlash

Prophet, September 1, 2007 — Kevin O’Donnell believes innovation’s role as a driver of organic growth and a differentiator that adds substantially to a brand’s value remains as critical as ever. In his inaugural column in the newly relaunched Marketing News, a publication of the American Marketing Association, O’Donnell spells out one solution: Creation of innovation “systems” that foster actionable creativity.

Category: Innovation
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SEP 2007

Girl Power

No rich relatives? No professional mentors? No problem. Ashley Qualls, 17, has built a million-dollar web site. She's LOL all the way to the bank. :)

Fast Company, September 1, 2007 — ate last year, Ian Moray stumbled across a cotton-candy-pink Web site called Whateverlife.com. As manager of media development at the online marketing company ValueClick Media (NASDAQ:VCLK), he was searching for under-the-radar destinations for notoriously fickle teenagers. Beyond MySpace and Facebook, countless sites come and go in the teen universe, like soon forgotten pop songs. But Whateverlife stood out. It was more authentic somehow. It featured a steady supply of designs for MySpace pages and attracted a few hundred-thousand girls a day. "Clever design, a growing base--that's a no-brainer for us," Moray says.

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SEP 2007

The Next Email

Why Twitter will change the way business communicates (again).

Fast Company, September 1, 2007 — Hard to believe that only 10 or 15 years ago we interacted with coworkers and colleagues with memos and phone calls. Email and instant messaging changed all that. Now there's a new communications revolution coming. These services mix contacts, instant messaging, blogging, and texting, and they're poised to make email feel as antiquated as the mimeograph.

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SEP 2007

Working With the Enemy

Once the youngest president of the Sierra Club, Adam Werbach used to call Wal-Mart toxic. Now the company is his biggest client. Does the path to a greener future run through Bentonville?

Fast Company, September 1, 2007 — “To this day, they won't speak to me," says Adam Werbach. His clients--or rather, his old clients--fired him when word got out last year that he was doing work for Wal-Mart (NYSE:WMT). Of course, many people make compromises to do business with the largest company in the world--accept lower profit margins, absorb relentless performance pressure. But for Werbach, 34, a lifelong environmentalist, the cost of working with Wal-Mart has been personal. Some of his old friends don't speak to him. His former colleagues think he's sold out.

Category: Brand Strategy
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