Ads That Go Awry Spark Controversy

Ah, advertising. The 1930s performer Will Rogers famously referred to it as "the art of convincing people to spend money they don't have for something they don't need."

But that time-honored tradition can easily run afoul of the other mandate of the modern advertiser: to amp up the imagery, language or overall shock value of an ad to get your client's product to stand out in a crowded marketplace, says Brett Michael Dykes, a national affairs writer. This year, the clash of these central directives has generated a lot of buzz for some major ad clients — just not the kind that they were hoping for.


Burger King's "The King's Gone Crazy" campaign

 The ad in question features BK's trademark king running frantically through an office building, apparently as an escaped mental patient, pursued by a man dressed in a white lab coat who yells, "Stop that King, he's crazy!" The runaway King proceeds to run through the glass window of a break room to hand a burger over to a woman standing next to a microwave. Then two bow-tied men materialize and subdue him — the clear implication being that they are attendants from a mental hospital. They tell the shocked woman holding the burger that "this King's insane" for giving away "so much beef for $3.99." Smitten with the low price, she replies to one of the attendants, "you're the one who's nuts." "I was stunned. Absolutely stunned and appalled," says Michael Fitzpatrick, executive director for the Arlington-based National Alliance on Mental Illness, one of the nation's largest mental health advocacy organizations. He called the ad "blatantly offensive" and hopelessly retro in its depiction of mental illness, adding that the commercial could lead to further stigmatization, the primary barrier for individuals to seek out treatment. "We understand edgy," Fitzpatrick says. "But this is beyond edgy. Way beyond." David Shern, president and chief executive of Mental Health America in Alexandria, says the ad was "a perfect storm of images and words coming together," comparing it to an advertisement using the word "idiot" while featuring someone who was mentally challenged. Both groups sent letters to Burger King asking that the advertisement be removed.

Mental health organizations have spoken out against ad campaigns in the past, such as Vermont Teddy Bear's 2005 Valentine's product, which featured a "Crazy-for-You" teddy in a straitjacket (because nothing says love like restricted arm movement and claustrophobia). Or a 2007 General Motors commercial in which a robot jumps off bridge after being fired from the assembly line. Some have pointed out that the Burger King ad — which recently ended its scheduled run — was reminiscent of the old "Crazy Eddie" discount electronics store ads that ran in the Northeast for a number of years. The real Crazy Eddie, a man by the name of Eddie Antar, spent a number of years in prison on fraud-related charges. The cheap-burger-slinging King remains on the right side of the law, so far as we know.

POM's "Cheat Death" campaign

You may have heard something in the last few years about pomegranate juice helping you live a longer, healthier life. In the event you haven't, POM Wonderful, a company that harvests, packages and markets the antioxidant-laced beverage, is going the extra mile to make sure that you do. An outdoor print-ad campaign by the company in the Chicago area featured a bottle of the juice with a hangman's noose draped over the neck of the bottle. Next to the image were the words, "Cheat Death," a not-so-subtle implication that drinking POM Wonderful will help you elude the Grim Reaper's clammy grasp. The company pulled the ads after Chicagoans complained that it conjured up all sorts of unpleasant memories of lynchings and executions. But according to one advertising insider, POM is an old hand at death-themed come-ons, so don't be surprised if you see similar campaigns from them in the future. The controversial noose ad is actually not a new execution, so to speak. It has existed in the large portfolio of POM advertising since 2006, the spokesman said, but it's unclear whether the ad ever previously ran in the Chicago market. This latest advertising push is in just a few major cities where the company hasn't done a major marketing effort recently, which, in addition to Chicago, include Boston, Washington, D.C. and Miami. It should come as no surprise, really, that POM would try to push the limits of acceptable advertising, even in a relatively conservative market like Chicago. POM is owned by Lynda Resnick, an aggressive and outspoken veteran businesswoman who has grown a number of familiar brands, such as Fiji bottled water and the Teleflora floral service, through aggressive and clever marketing.

Don’t be Left Behind: Engage your Business in Social Media

Social Media is a powerful tool to enhance a business’ online strategy. Having an extended online relationship with your customers through social media will increase their involvement with your brand offline. Managers and owners that understand the importance of a strong online presence definitely develop a healthier communication with customers. This communication doesn’t stop there, it creates many more opportunities. It’s time to take control of the outcomes and tap into social media by enabling social tools on your business’ website and interacting with your users. If you are unsure, consider this:

·         “Your customers and rivals are figuring blogs out. Our advice: Catch up…or catch you later” – Business Week

·         “Social Media Will Change Your Business” – Business Week

·         “Facebook, has 200,000,000 – number of active users” – The Future Buzz

·         “Facebook, 100 – number of friends the average user has” – The Future Buzz

·         “10,432,575,000 – number of Tweets to date” - gigatweet

·         “Twitter tweets: 600 per second” – Search Engine Land

·         “133,000,000 – number of blogs indexed by Technorati since 2002″ – The Future Buzz

·         “346,000,000 – number of people globally who read blogs” ComScore

Everyone that works in the daily operations of any business is busy wearing many hats trying to thrive. There is always very limited time to accomplish the many tasks of the daily operation and you may think you don’t have the time to engage in social media.

There are innumerable reasons why social media is imperative for businesses. Here are five factors that are relevant for the inclusion of social media and the importance of social media adoption in a website development strategy.

1. Extended business relationship

If someone asks a question to a clerk in a store, the clerk most likely will give a prompt and adequate answer -as close as possible to a solution to that person’s needs. In social media it is similar. In most cases this interaction may involve people that are interested in a specific company, brand, product or service. They inquire about offers, or have questions or comments about goods and services. Social media let managers and owners jump into the conversation, and build relationships with new or existing customers.

2. Extended way of communication

Your communication can create, clarify, refer, lead. Due to the two way nature of social media, it creates a better understanding of what people are saying about your business. You can get a sense of what customers think and feel about your company. Should you encounter negative feedback, you have the ability to respond and the opportunity to turn that person into a happy customer.

3. Extended way of referrals

Whether or not you are active in the online presence of your business, social media is creating referrals. Sources like Yelp, Twitter, Facebook, and specialty blogs are becoming the easiest way people share their opinions with friends and strangers. Plus, these services offer solutions for business to engage in communication, helping you manage comments and opinions about your business.

4. Extended brand awareness

Social media offer you more control over your brand. People have a perception of your business, and this can depend strongly on what you say. A company can give insight about their business helping others understand why they should choose them over someone else. Likewise, when you introduce a new product, social media allow users to post experiences, how-to, and reviews making those people your brand evangelicals.

5. Extended way of sharing an opinion

Don’t let your brand be moved by the flow, interact, participate, share, discover…! There are many social sites where people are sharing their opinions about your business. There is always room for everyone in the social media field. Participate and engage with those interested in your industry.

In a recent conversation with Sadao Nelson, a wine consultant for Restaurants in San Francisco and Manager of COCO500 Restaurant, he mentioned that social media has not taken a big deal of his time. Responding to Yelp, Twitter, and Facebook comments takes only a few dedicated daily minutes and the job’s done! Sadao also happens to be the former manager of The Corner Restaurant. In the early days he created an online profile on social media sites for The Corner and it has turned excellent results on Google and Yahoo.

We hope you see the advantages social media can bring to your business and start using them. If you need help, contact us at info (at) jd-anderson (dot) com and be sure to read the next post, Social Media: Getting Started

Shopping Behavior In 2010: Phoning It In

If retailers think the Internet permanently changed the way people research and ultimately shop, they haven't seen anything yet, says writer Steve Smith. If merchants want to get scared in a hurry, they should try downloading either the eBay app or the new Amazon Price Check mobile app (both for iPhone).  Each app lets you scan a UPC code on any package and not only call up product information, but even see better offers. The Amazon app lets you buy from a range of sources on the spot using your Amazon account. 

This is scary because American's retail shopping habits have changed and are changing even more radically in the next few years. A new study from Leo Burnett and Arc Worldwide demonstrates that the recession helped alter the mindset of consumers. They come to retail now fully armed with information. Retail will continue to have a role in the final purchase decisions, especially involving brands the consumer doesn't already know. Many shoppers now come into the store having already decided what they want and treat retail as a "final check" or simply a "pick-up station," the report says. They are ginned up on research and pity the sales assistant who doesn't know when to get out of the shopper's way.

Mobile takes that dynamic and accelerates it. In just about any aisle in a major retailer you will see people peering into their phones at something, and according to new research on mobile's influence on shopping behavior these folks aren't checking email. The Yahoo Mobile Framework Study performed with Nielsen shows that 9 out of 10 mobile users access the mobile Web in a store. And about half of all mobile Web activity in a store is related to shopping. In fact, mobile users are demonstrating behaviors that are already far ahead of the mobile ecosystem. Almost half of all of those using mobile phones in-store have sent phone camera images of a product to someone.

Only 16% of consumers use their phones for shopping research, but 57% of mobile internet users express interest in doing so in the coming year. And when it comes to having tried or being interested in different types of shopping-related activities, the mobile platform is almost on par with the PC. While 96% of PC users cited visiting a Web site, 91% of mobile users did as well. Down the line, from search to accessing user reviews, the number of people either actively performing an activity on mobile phones or interested in doing so is tracking only slightly below the Web. The upshot of this is that people seem ready to transfer a number of common online research behaviors to their phones. 

While retailers need to be aware of the ways in which mobile is poised to reshape consumer behaviors, the Leo Burnett/Arc Worldwide study offers a cautionary note. According to its survey of consumers, "Technologies appear often to be putting more distance between the shopper and the retailer by encouraging shoppers to work completely independently of retailers." While retail needs to get out in front of the mobile behaviors their shoppers already demonstrate, the long-term risk is that the technologies will undermine the need for the store even further. Understanding that shopping is an experience and that in-store mobile apps can enhance that shopping "journey" will be critical in bringing technology into the store in a creative rather than a destructive way.

For a company like Amazon, however, just imagine the behavioral data it can now collect on consumers who are bringing their apps into the field and other stores. From geolocation to retail vs online shopping habits, this kind of mobile extension adds layers of invaluable data to a users' profile and Amazon's understanding of how they fit within the shopping journey. The line between brick and mortar and online retail is about to get muddier.

Demographics and Psychographics: Target Tactics

Demographics are the average or typical characteristics of the people who buy your products or services. Such characteristics include age, income, education, status, type of occupation, region of country, or household size. Demographics can also include the age of children, the status of home ownership, one's home value, and whether one's home is located in an urban or a rural location.

Psychographics take this idea a step further: These include people's lifestyles and behaviors — where they like to vacation, the kinds of interests they have, the values they hold, and how they behave. Even though you may have determined your demographic group, people within that group still have very different perceptions about the benefits or value of your product and will be motivated for different reasons. These differences are known as psychographics. To further target your efforts, you've got to determine not only who buys (or will buy) your product, but what makes them want to buy it. Include as much psychographic information as you can dig up, such as what their spending patterns are, whether they are brand conscious when it comes to your product type, what influences their buying behavior, what promotional efforts they respond to most often, etc. You also want to know how they go about buying it and what you can do to encourage them to buy more. You need this information so you can, in effect, clone your best customers. It is important to really pick apart what motivates them to buy.

The information you glean from a journey into your target audience's brain is often key to your marketing efforts, particularly the positioning of your product. It includes the audience's activities, interests, and opinions. You have to work through behavioral factors, economic factors, and even interpersonal factors to get to the root of purchasing behavior.

To hone this information to fit your marketing needs, you will need to conduct research — survey people who have bought your products or those who use similar ones.

You need to know both demographics and psychographics in order to advertise and sell your product effectively. You'll need to match the audience's characteristics of the media you choose with the characteristics of your desired purchasers. In that way, you won't lose precious dollars on wasted advertising and marketing. Moreover, you need information about your customers so that you can meet their needs better than the competition does.

There are many new and exciting ways of collecting that makes marketing demographics and consumer profiling sound easy. You can have your website set “cookies” and track your customers’ web-browsing habits. You can get information from price clubs at grocery stores where customer cards are scanned along with their groceries. Computerized information from the local phone company or cellular service provider can tell you a person’s habits on the phone.

With so many technical options for collecting demographic data from and about consumers, how do you decide which options to employ and how to use the information you get? You need to have your eyes “on the street” and to make sure you’re in touch with changes in demographics, buying habits, wants and needs. First, you need to decide what information is important to you. Then you need to figure out how to get it. Many people do this in the wrong order- they do their research on what information they can get, then try to figure out how to use it! Although you should take advantage of windfalls when they happen, don’t let the “tail wag the dog” by determining your needs based on what appears to be available at the moment.

10 Trends That Are Shaping Global Media Consumption

While we've been obsessed with the carnage in American media markets for the last couple of years, the global media landscape has mirrored the broader economic one -- which is to say, developed nations are fragmenting while developing ones are booming. This is as true for TV and newspapers (newspapers!) as it is for online video and mobile phones, the latter of which is poised to become the most ubiquitous media device in history.

Ad Age Insights' latest white paper, Global Media Habits 2010, by Greg Lindsay, is a look at how media are actually being consumed around the world, divorced from business considerations. These are 10 trends that are shaping media consumption in traditional and emerging media markets.

1) Even relatively poor populations now consider TV a necessity.
In 2010, nearly half of Indian households have TV, up from less than one-third in 2001. But in urban areas, that figure jumps to 96%. (Compare that to 7% of Indians who use the internet.) In Kenya, the TV-penetration rate rose from roughly 60% to 70% from 2005 to 2009, even as the number of households measured increased by nearly half. Even in the slums of Sao Paolo, TVs are the top seller of Brazilian retail chain Casa Bahia, despite the fact that residents tend not to have electricity or running water.

 2) Despite the internet, we're watching more, not less.
The average American watched 280 minutes of TV each day in 2009, more than four-and-a-half-hours worth and a three-minute increase compared to the year before. A similar rise can be seen around the world, where the average human being watched three hours and 12 minutes worth of TV a day.

3) What is the world watching? Football, 'American Idol'-like contests and telenovelas.
The 2010 FIFA World Cup was the most watched TV event in history, broadcast in every country (including North Korea) and garnering an average audience of 400 million viewers per match. More than one-third of Afghanistan tunes into "Afghan Star," that country's version of "American Idol." And Brazil's Globo network has broadcast locally produced soap operas since the 1970s, many of which reach 80 million viewers.

4) The U.S. and Western Europe are losing newspaper circulation, but the rest of the world is experiencing a newspapers boom.
In both number of titles and circulation, Asia, Africa and Latin America are climbing at an annual double-digit pace. And China and India are now home to nearly half the world's top 100 dailies, with the average newspaper boasting a circulation of 109,000 or more. In India alone, the number of paid dailies has surged by 44%, to 2,700 titles since 2005, accounting for more than one-fifth of all newspaper titles on the planet.

5) Here's why you need to keep an eye on Facebook.
When it comes to time spent on the site, Facebook crushes all rivals, with six hours vs. less than half that time for every other site in the top 10.

Facebook's user base is 517 million people, 70% of whom live outside the U.S. According to a DDB study of 1,642 international Facebook users, the average self-avowed fan is 31 years old and follows nine brands. Three-quarters (76%) have already pressed "like" to signal they are a fan of a brand. In return, they expect special treatment (95%) and are willing to advocate for the brand if necessary (94%).

6) Cyber cafes are the entry for emerging market populations to get online.
The innovation of "cyber cafés" has helped spread internet use in emerging markets. In South Korea, people can rent broadband access for roughly 80 cents an hour, eliminating the need for costly monthly subscriptions, and leading to Koreans' embrace of social networking and multiplayer online gaming. Cyber cafes or "warnets" have since spread to Indonesia, where only 5% of homes have a PC; and to Brazil, where the cafes are known as "LAN houses" and have hourly rates as low as $1.

7) BRIC leads for online video consumption.
Brazil, Russia, India, China and Indonesia are home to the most avid consumers of online video. Internet users in China and Indonesia, for example, were 26% more likely than the average user globally to watch online video, while Indian viewers were 21% more likely and both Russians and Brazilians were 11% more likely. Increasingly, the internet will become TV. In 2009, one third of all internet traffic was video. This year, that figure will climb to 40%, on its way to a projected 91% by 2014, according to Cisco.

8) Internet usage and penetration rates are hobbled by access costs. Mobile isn't.
Only 81 million Indians (7% of the population) use the internet, but six times as many (507 million) have mobile phones. The same pattern is playing out worldwide. Witness PC vs. mobile penetration rates for China (20% vs. 57%); India (4% vs. 41%); Brazil (32% vs. 86%); and Indonesia (5% vs. 66%).

9) Netbooks, e-readers, tablets will drive growth of internet use.
The proliferation of new screens, netbooks, e-readers and tablets is expected to quadruple global IP traffic by 2014, according to Cisco. By then, the equivalent of 12 billion DVDs will be criss-crossing online monthly. The biggest growth driver is video -- data-rich 3D and HD streams delivered to computers, TV sets and to phones, which will lead global mobile traffic to double every year for the foreseeable future.

10) For the foreseeable future, the forecast for the planet's media habits is in a word, more.
Time spent with computers has tripled over the past decade among kids age 8 to 18. The bulk of this group's time is spent on social media, followed by games, video sites and instant messaging. The average kid packs a total of 10 hours and 45 minutes worth of media content into a daily seven and a half hours of media exposure. Just think how this group will consume media in 10 years when they enter the work world and start consuming in earnest.

How Color Affects People

You might think that carefully organized branding research and market tests were done to choose the perfect colors to make you spend your money, but a lot of the brands that have grown to be global web powerhouses started as small web startups, with little to no research into the impact their color choice would have. And some large corporate giants with branding departments spend quite a lot on market research, user testing, branding, etc. Lots of sites got started with brands created by the founders themselves.  Mark Zuckerberg, founder of Facebook, was asked why he chose blue for his site design. "I'm color blind, it's the only color I can see." ...and now 500 Million people around the world stare at a mostly blue website for hours each week.

Many researchers in the field of psychiatry have pointed out certain interesting and basic facts about human likes and dislikes for color. When you are tired and feel as if your eyes are not going to remain open psychologist suggest that you look at the color green. Green tends to have a calming and relaxing affect on most individuals. Some people think, more precisely, are more creative and perform better in an atmosphere or surrounded by the color blue. Most gyms therefore are painted blue.

Black is a color that commands respect and authority. When individuals wish to gain respect and appear totally in charge they dress in black. Black in the fashion world makes people look thinner. While black is an authoritative color, in the secular world, priest and nuns will wear black to indicate a submission to God's will. When showing respect, individuals wear black. Black is most commonly the color choice when attending a funeral.

Red is a dominant intense color. When ready for a challenge (think Tiger Wood’s shirt) or to gain the attention of others, individuals will wear red. Red also is a color most noticed by law enforcement -the number one color that will attract an officer is red. On the other hand, red is also the most stolen color in vehicles. When polling individuals to see how many times a vehicle was pulled over or stolen, red was the color most often targeted. It, the color red, draws attention.
Remember when the matador is ready for the bull. He always encourages a response by waving a red flag. Red gets the adrenalin flowing, makes the heart beat faster and increases breathing. Red is also the color we choose when we wish to be romantic and gain the attention of a love interest. Red roses, the red box of candy… Red is an attention getter.

White is the color symbolizing purity. A bride comes to the altar in white. White does not absorb, it reflects. That’s why white is the most appealing color of choice during the hot summer months. White is a neutral hue and is light. By the same token, white is the hardest color to take care of. Hospitals basically require all physicians and nursing staff to wear white.

Awe the ever calming color blue. Songs were written about the color blue more than any other color. Elvis Presley and his Blue Suede shoes. Blue Moon sung by some of the most popular crooners but originally written by Lorenz Hart in 1934. Look up at the sky, across the water and you see blue. A blue sky, a blue ocean. Nature’s color of peace, calm and tranquility. Some say blue is a color symbolizing loyalty –perhaps that is the reason why Zuckerberg has 500 million friends.

How Small Business Can Use Free Public Relations

“PR plants the seed. Advertising harvests the crop”. Al Ries

A small business’s reputation, profitability, and even its continued existence can depend on the degree to which its targeted "publics" (audiences) support it.  Using public relations (PR) is often missed by small business, says blogger Doug Hay.

Public relations is the tool to shape public opinion-both inside and outside the business. This often calls for "telling the story of the business" and forwarding its positioning. For example, a local restaurant with great food will get more new business from a positive review in a local newspaper (print and website) or magazine than paid ads. A company with a new software program for small business can get great publicity from an article in a magazine targeted to small biz.

PR is free and is much more believable than advertising.

This starts with a press release that will go to the media (e.g. local newspaper, magazine, etc).  Here are the steps to get a review or article or press release published:

1. The target public (audience) is determined i.e. who do you want to communicate to and what is the purpose of the communication.  E.g. A dentist opens who an office with a specialty of children’s services would want to reach local Moms (target audience). So what publications in print and online do moms read?

2. Research is undertaken on the subject of the press release. Get the facts as reporters may call with questions or to get additional information.

3. The release is written keeping in mind it must be newsworthy:

• It should have a strong news angle such as an event, important information, new discovery, drama, human interest or local angle.  e.g. the children's dentist release, there could be new information about fighting cavities.

• It must have a broad, wide-ranging interest to the target audience

• The release needs to be written in a journalistic style—not a marketing piece. It must be objective. The release needs to educate and inform not just SELL a product.  Give them the who, what, where and why.

4. Distribute the press release:

• Broad distribution using a press release service such as Market Wire who can get the release out to regional, national or international media outlets. This type of distribution is utilized to get the release picked up by as many newspapers (both print and online) and other media as possible. This is the most expensive option and would only be used if the release needs to get out to large numbers of people in several areas.

• Targeted distribution such as an industry trade magazine. In this case, the media is typically contacted in advance to find out what type of material they are looking for and other details.

• Local distribution – email it to your local newspapers, magazines, radio stations and TV.

5. Add the release to the company web site section called Media Room or  News Room i.e. an on-line media kit. This allows journalists to get more information on the company, the business owners and your products.

The media room should also have a summary of the company, bios of the owners, product details, pictures, etc.

6. Follow up in person to get the editors to publish the release as an article. You can easily search the Internet to see if it got published in an online edition.  You can set up a Google alert to track mentions of your business, product names and managers. As needed call the journalist to see if they need additional information but don’t be pushy—reporters hate that.

Once the press release is published, you can add links to your press room on the website.

Using public relations as a tool for small business marketing is often overlooked but could be the best promotion you could do.

New Technology Requires a New Market Research Paradigm

Karlene Lukovitz reports for Marketing Daily that while the Internet and social media are a potential boon to market researchers, they've also raised concerns and ongoing debate about methodology and the ability to project results.
Now, one social media-based research firm is charging into the fray with a report that maintains that today's empowered consumers and marketers' need for faster, actionable insights requires an approach that combines the strengths of newer, "humanistic" approaches with those of traditional, experimentally-based research.
The principals of Communispace, which employs relatively small (generally 300 - 500) proprietary communities for market research clients such as The Coca-Cola Company, PepsiCo and GlaxoSmithKline, say that their goal is to encourage industry conversation about the "trade-offs" involved in the two approaches and how to best leverage both, given the now "blurred" boundaries between marketing and customer research. They maintain that it's time to stop equating research quality with scientific "purity," and use brand-transparent community engagement to generate insights and explore nuances of consumer attitudes and preferences on an ongoing basis, while using traditional blind, episodic, experimental research designs for confirmation and testing purposes. This means shifting our focus -- aiming not for the perfect, bias-free study, but for an approach that pragmatically applies a range of methods to generate and test hypotheses.

While some might well point out that a firm engaged in offering proprietary online community research is bound to have its own biases, in an interview with Marketing Daily, Wittes Schlack and Austin pointed out that the report includes examples and comments from consumer market researchers based on their own experiences, and stressed that Communispace is advocating achieving a pragmatic integration of approaches that reflects 21st-century realities, rather than an either/or mentality.
Humanistic or "consumer-focused" online/social media-driven research enables an "ongoing discovery process" that allows consumers and the brand to explore new questions and issues as they arise naturally from a conversation, the Communispace report notes. In contrast, "top-down, researcher-centric" methods are most useful for "confirming what is already known or suspected," since these methods by definition "do not expand a problem space, nor do they generate knowledge outside of the researcher's frame of reference."

While concerns about the ability to project results to a general population, and the risks of bias or "group think" in brand-transparent scenarios in which consumers interact, are understandable based on the traditional research mindset, they fail to take into account changing real-world dynamics. Given that most consumers are now online, the Internet population is rapidly becoming the general population and the artificial environment of blind-sponsorship studies conflicts with the reality that "today's consumers do continually influence one another."

Contrary to intuitive assumptions that consumers are reluctant to be honest or critical of a brand or product idea if the sponsorship is transparent, a "natural," conversational environment that encourages consumers to be active collaborators rather than study subjects leads to greater candor as the relationship progresses. When people feel involved, they feel ownership toward the brand, and they are frank because they don't want you to make mistakes that will undermine the product or brand. Having an intimate conversation with consumers provides a more revealing, true-to-life picture.

When Journalism Runs Amok People Suffer

According to the New York Times, when Forbes published a cover story recently by Dinesh D’Souza, the conservative author, asserting that President Obama is opposed to free markets and traditional American values because he inherited his father’s anticolonial beliefs, all the media tripwires were set off: enthusiastic support by conservative commentators like Glenn Beck, Newt Gingrich and Rush Limbaugh, and an uproar among liberal bloggers and columnists.

But after a meeting with the White House spokesman Robert Gibbs, the magazine, which initially defended the article, agreed to a post-publication fact-checking process to see if an apology or a correction was warranted, according to Bill Burton, a White House spokesman. Monie Begley, a spokeswoman for Forbes, said that the magazine’s Washington bureau chief made the decision to check the article in response to the general clamor in the news media.

In one sense, the episode was a cautionary tale for the new media age, which finds traditional media outlets like Forbes responding both to the economic imperatives of the digital age by cutting staff and to the editorial imperatives by bringing in more outside voices — Mr. D’Souza is not a staff writer — and sometimes elevating opinion above rigorous reporting, says writer Tim Arango.

Those efforts are amplified by the country’s coarse political discourse, where everyone has a soapbox to advance theories — buttressed by the truth, or not, in the case of the so-called birther movement, which argues that President Obama is not a United States-born citizen — and facts are fought over as much as ideas.

The magazine issued a minor correction on its Web site, saying that Mr. D’Souza had “slightly misquoted” Mr. Obama from a speech he gave about the BP oil spill. Mr. D’Souza also said that Mr. Obama did not focus in the speech on “cleanup strategies.” Forbes’ correction stated, “Obama’s speech did discuss concrete measures to investigate the oil spill and bring it under control.” The Forbes spokeswoman said that the correction put an end to the magazine’s review of the matter.

The essay in Forbes was adapted from Mr. D’Souza’s book “The Roots of Obama’s Rage,” which is being published by Regnery Publishing and will be released on Oct. 4. Kathleen Sweetapple, a publicist for Regnery, e-mailed a statement on behalf of Mr. D’Souza, who wrote, “there are a couple of minor errors that are completely inconsequential; what the critics are fuming about are not factual errors but disagreements of interpretation.” In discrediting Mr. Obama’s American-ness, the essay by Mr. D’Souza, seemingly stitched some intellectual heft to what has long been a fringe idea of the far right — that Mr. Obama’s Kenyan roots and Hawaiian boyhood make him a lesser American. Mr. D’Souza offered as evidence Mr. Obama’s support for the Islamic center and mosque project near ground zero, even though the president has gone only so far as to say the developers have a constitutional right to build a mosque. Mr. Gingrich described Mr. D’Souza’s theory as “stunningly insightful,” while an editor at The Columbia Journalism Review called it, “the worst kind of smear journalism.”

One of the most contentious points in Mr. D’Souza’s article was his citation of a transaction by the Export-Import Bank of the United States to finance offshore drilling in Brazil, a deal Mr. D’Souza believes indicates Mr. Obama is more concerned with helping countries that formerly were the domains of colonial powers, rather than Americans. A Forbes fact checker recently contacted the bank to check on the assertion that Mr. Obama supported the 2009 transaction with Petrobras, Brazil’s state-owned oil company. Mr. D’Souza asserted that Mr. Obama supported the deal, “not so oil ends up in the U.S. He is funding Brazilian exploration so that the oil can stay in Brazil.”

A note written by Kevin Varney, the senior vice president and chief of staff of the bank, and posted in the comments section of Mr. D’Souza’s blog — and verified by a spokesman for the bank — criticized Mr. D’Souza for not contacting the bank before publication. “I received a call yesterday from Nathan Verdi, a fact checker at Forbes, who was calling to fact check your article after it was published. (Is this how journalism works now?)”

In an interview, Mr. Varney explained that the transaction “was begun in 2008 with career staffers and approved in 2009 by five Bush-appointed board members.” Mr. Varney said that to cite the deal as evidence of “an anticolonial, Kenyan ideology” on the part of Mr. Obama is “preposterous, it’s false and it’s wrong.”

10 Things Retailers Should Know

1. U.S. Hispanic spending power growth has significantly outpaced non-Hispanic with an average of $5 more per basket.
On average, Hispanics spend 13% more than GM consumer in the CPG category. As food plays an important role in Latino culture and they tend to have higher monthly food expenditures than non-Hispanics.
Hispanics also spend more than the GM on clothing because of their higher proportion of children and their younger demographic more prone to keep up with the latest trends. The average Latina has 11 pairs of jeans, while the average Caucasian female has nine.

2. Hispanics are quickly becoming the savviest of shoppers.
Hispanic women are significantly more aware (by a 48% to 36% margin) of "sales" before going to the store than GM shoppers.
Hispanics have always been savvy consumers and yet, the economic downfall has forced Latina moms to add new tactics to their repertoire like usage of coupons and in-store communications.
Although the current crisis hasn't affected Hispanics shopping patterns as drastically as the GM, Latinos are looking for partners that will help them navigate their current reality. Going forward, the key challenge for merchants is to redefine the consumer's value equation from "value = price" to "value = price + something else" (e.g., customer service, product's healthy attributes, designer exclusives).

3. Hispanic research and plan for each trip.
Hispanics plan their trips well -- more so than the GM population -- not only for what's needed, but also for the value that can be attained.
For Hispanics, the planning phase is important in organizing the shopping trip and controlling impulse purchases and budgets, not eliminating additional fill-in shopping (the general market's primary motivation is limiting the number of trips in a given time frame).

4. Hispanics are macro shopping.
Hispanic consumers are almost four times more likely than GM consumers to make their grocery shopping at mass merchandisers and mega stores.
Hispanic consumers travel significant distances to shop in these channels and spend considerable time and money in each visit, thus making large purchases and family-sized items a top priority for those shopping trips. Also, these mass merchandisers allow the consumers to shop for multiple-product categories.

5. Hispanics are not one-stop shoppers.
Hispanics significantly outpace the national spending averages across nearly every channel in CPG spending. The shopping experience plays a far more important role in their lives than for their non-Hispanic peers, making them a highly attractive segment for retailers. Hispanics are not only shopping to fulfill a list, but to fulfill different needs and experiences as well.

6. Hispanics enjoy the shopping experience.
37% of Hispanics "enjoy any kind of shopping" vs. 25% of non-Hispanics. No matter where, Hispanics report that shopping is a "feel good" experience. 53% of Hispanics evaluate their trip satisfaction on being "a fun place to shop," while, 43% of Hispanics "enjoy shopping even when they are not buying," vs. 37% of non-Hispanics. For retailers it is important to embrace the market by making store investments to become a FUN-shopping destination for Hispanics.

7. Shopping is not a chore.
"The store is a place where I can spend time with friends and family." Department - 50% Hisp. vs. 28% GM; Grocery - Hisp. 48% vs. 19% GM; Mass - Hisp. 46% vs. 24% GM; Drugstore - Hisp. 41% vs. 25% GM.
For Hispanics, shopping is a destination for meeting with friends and family, an opportunity to catch up and spend time together. Offering a more interactive environment allows retailers to become a preferred destination.

8. Advertising impacts and attracts Hispanics.
36% of Hispanics say that they remember advertised products while shopping. 31% say that ads help them pick products for their kids.
Hispanics tend to be more receptive to advertising and marketing efforts than GM. Another important aspect of advertising is retail promotions that in most cases will influence their decision to visit a particular store.
They are actively seeking choices that allow them to increase their brand selection with new and better products and advertising plays an important role in getting brands noticed and differentiated.

9. It is a myth that Hispanics, overall, are more loyal.
Only those Hispanics who are recent arrivals (fewer than four years in the US) display above average brand loyalty.
There is no conclusive proof to say, in general, that Hispanics are more loyal shoppers. Retailer loyalty is strong among Hispanics but it pertains mainly to the store of choice, based on the need. Continued loyalty relies on value offer, product quality, and experience consistency.

10. Hispanics are quickly adopting online shopping.
Nearly two-thirds (62%) of Hispanic Internet users are buying online. Retail initiatives for Hispanics have been primarily focused on brick and mortar, but the time has come to expand initiatives to the virtual shopping world. In 2007, Hispanic online purchases accounted for $12.8 billion, 11% of all online retail spending. Furthermore, Hispanics are more likely to provide online feedback: 34% vs. 27% of non-Hispanics.

Now it is imperative that brands and retailers offer the opportunity for online purchases. Additionally, this will open up a whole new avenue for building a brand relationship through online activations and promotions. It also multiplies the impact through digital word of mouth via consumer feedback.