Sponsored Blogs

Sponsored posts are nothing new although the tactic always raises a fair amount of controversy. It gets prickly when bloggers themselves write about their personal experience with a product (usually balanced) in exchange for compensation -this can be viewed as advertorial. This is nothing new. Magazines and newspapers have run advertorials for years, and radio stations run promotions where the DJ gets involved. What is new is that on many blog sites the editor and publisher are the same individual. There are no hard church/state boundaries as there are with other media. Sponsored conversations work best when you integrate tactics across the spectrum somewhere between this advertising and PR matrix: As long as you are transparent about your motivation to blog, you should have no problems.

Nonprofits: Marketing in a Tough Economy

This industry comprises establishments engaged in raising funds for a wide range of social welfare activities, such as health, educational, scientific and cultural activities. Most foundations (or corporations) in this industry can be termed philanthropic, insofar as they fulfill many social welfare functions and activities and also grant money to charities and other nonprofit organizations. The key indicators for the industry are: industry revenue, industry gross product, market size, demand determinants (factors which are likely to cause demand to rise or fall), basis of competition (types of competition between firms within the industry and from substitute products in alternative industries) and life cycle (which stage of development the industry is at.) Although this mature industry has experienced less than inspiring growth recently, the future might not be so disappointing. As larger companies become more conscientious, and wish to be seen as being so, they might donate more money to nonprofit organizations. As long as financial transactions remain transparent, confidence in this industry should remain high. Furthermore, the proliferation of social media offers nonprofits an inexpensive way to reach new and existing donors, publicize events, conduct fundraisers and increase awareness of their cause.

The American Video Game Player

Two out of three adult Americans who are gamers are social consumers looking for entertaining experiences to share with friends, family, and strangers across multiple platforms. The adult American gamer comprises a market that can no longer be segmented as hardcore and casual and is underserved in key sectors such as online PC and mobile phones. The US entertainment and games software industry includes about 1,000 companies with combined annual revenue of about $12 billion. Major companies include Electronic Arts, Activision Blizzard, THQ, and Take-Two Interactive, along with divisions of large integrated companies such as Microsoft, Sony, and Nintendo. The video game publishing segment is highly concentrated: the top 10 companies have over 80 percent market share. The game development segment is fragmented: most game development studios have a single location and fewer than 20 employees. Demand is driven primarily by personal income. The profitability of individual companies depends on an understanding of consumer needs, timely product development, and effective marketing. Large companies publish a portfolio of titles and have advantages of scale in manufacturing, marketing, distribution, and selling. Small development studios compete through creative designs and by partnering with large publishers. Computer and video games compete as a leisure time activity with TV, movies, music, the Internet, and other forms of electronic and non-electronic entertainment. Major entertainment and games software product segments are video game software (about 85 percent of revenues) for dedicated gaming machines that work with TVs, such as Sony’s PlayStation, Microsoft’s Xbox, and Nintendo’s Wii; and PC game software (about 15 percent). Video game software also includes content for portable handheld devices such as PSP (PlayStation Portable); Nintendo’s Game Cube and DS systems; and cell phones.

Spirits - Top 5 Emerging Markets

Most certainly the biggest story in the spirits industry, like virtually all other industries, was the economic downturn that struck the world this year. Despite the claims of many spirits companies, that they offer “affordable luxury” with their products, trading down seems to be here to stay for the foreseeable future. For the wine industry, 2008 was not a year of huge deals and seismic shifts in the corporate landscape. Instead, the downturn made its presence felt, accentuating the pressures already affecting businesses all around the world. The Top 5 emerging countries (Brazil, China, India, Mexico and South Africa) contributed $26 billion to the global spirits industry in 2007, with a CAGR of 4.4% between 2003 and 2007. India is the leading country among the Top 5 emerging nations, with market revenues of $8.7 billion in 2007. In 2012, the market is forecast to have a value of $32.7 billion, with a CAGR of 4.7% over the 2007-2012 period. The spirits market consists of the sale of brandy, gin & genever, liqueurs, rum, specialty spirits, tequila & mezcal, vodka and whisky. The Liqueur & Spirits production in the US industry acquires a range of ingredients such as grains and sugar which are distilled into alcoholic spirit beverages and packaged (in purchased glass bottles) before being sold to liquor wholesalers, bars, casinos, restaurants, hotels and other retail stores. This industry comprises establishments primarily engaged in one or more of the following: (1) distilling potable liquors (except brandies); (2) distilling and blending liquors; and (3) blending and mixing liquors and other ingredients. In the US the beer, wine, and liquor store ("liquor stores") industry includes about 30,000 stores with combined annual revenue of about $30 billion. No major companies dominate; individual states have different laws regulating liquor stores, complicating the ability to form national chains. The industry is highly fragmented: the top 50 companies account for less than 20 percent of sales. COMPETITIVE LANDSCAPE Personal income, consumer tastes and entertainment trends drive demand. The profitability of individual companies depends on effective marketing and competitive pricing. Large companies offer wide selections and deep discounts, but small companies compete by offering specialized merchandise, providing superior customer service, or serving a local market. Liquor stores compete directly with grocery stores, warehouse clubs, convenience stores, and gas stations, and indirectly with restaurants, bars, and other establishments that serve alcohol. PRODUCTS Major products include distilled spirits, beer, and wine. Spirits or liquors account for almost 40% of sales, beer for 30%, and wine for 25%; other products include groceries, cigarettes, and cigars. Liquor (or hard liquor) includes gin, vodka, rum, whiskey, brandy, and liqueurs. State laws dictate the type of alcohol sold in a particular venue. In some states, only liquor stores can sell hard liquor. Liquor stores may also be known as “package stores,” referring to the post-Prohibition law requiring stores to cover or “package” alcoholic beverages in public.

Incorporating Risks in the Marketing Strategy of Clothing Accessories Stores in the US

Retailers stock a wide range of fashion accessories like hand bags, hats and caps, costume jewelry, gloves, handbags, ties, wigs, toupees and belts. Sales are made direct to the public generally without developing or changing the product further. Most retailers in this industry undertake sales and administrative activities such as customer service, product merchandising, advertising, inventory control, and cash handling. The industry of Clothing Accessories Stores in the US is facing risks in this tough economy. The industry faces three operational risks: risk arising from within the industry itself (structural risk), risks arising from the expected future performance of the industry (growth risk) and risk arising from forces external to the industry (external sensitivity risk). These three types of risk combine to form the Overall Industry Risk Score Structural Risk This risk arises from within the industry itself and the level of exposure to seven key indicators. These key indicators are Barriers to Entry, Competition, Industry Exports, Industry Imports, Level of Assistance, Life Cycle Stage and Volatility of Industry. The Overall Structural Risk Score is a weighted aggregation of these seven key indicators. Growth Risk This risk arises from the expected future performance of the industry. The Overall Growth Risk Score is determined by amalgamating the scores for Recent Industry Growth and Forecast Industry Growth. Sensitivity Risk This risk arises from forces (sensitivities) external to the industry. The Overall External Sensitivity Risk Score is determined by identifying the most significant external factors and weighting them to represent how significant each is to the performance of the industry. Examples of External Sensitivities are Exchange Rates, Interest Rates, Commodity Prices and Government Regulations. There is also a detailed analysis of the affect each of the sensitivities has on the industry, including charts and data tables where appropriate. The industry would be wise to incorporate these risks into its marketing strategy to position itself on a better foothold during the recession. The marketing strategy should include short and long-term objectives that address the risks mentioned above.

Aging Populations: The Senior Consumer

Senior consumers no longer see themselves as 'old', but instead see age as a badge of honor. Many assumptions about Seniors are being challenged, as social norms and circumstances change. With important consequences for the personal care market, taking care of appearance and health with personal care products affirms their commitment to aging well regardless of personal circumstances. Globally, at least 90% of consumers in any age group attach a high level of importance to good personal hygiene. According to Datamonitor's 2008 consumer survey, Seniors are more likely to state it is important or very important as a factor in maintaining wellness and creating a feeling of wellbeing than any other age group. A little over 70% of Young Adults globally are sufficiently concerned about economic downturn that they are beginning to make changes to their lifestyles to make their spending more financially sustainable. The proportion of Seniors who say they will make similar changes is appreciably lower at 55%. For Seniors, the most important criteria in selecting personal care products is price, with more than 50% of all Seniors stating this factor exerts either a high, or very high level of influence on purchase decision. Price also becomes more important with age, growing further among late Seniors.

Marketing Female Personal Care Products

Although the men's market has been characterized as a source of relatively untapped sales potential, for the foreseeable future, it will continue to be a niche sideshow compared with the sheer scale and diversity of the female marketplace. This is borne out by the continued strength of sales growth to the female audience. The market for female personal care products is characterized by well-established behaviors, although despite its maturity, it continues to show sustained growth. Achieving product differentiation in a congested market is challenging however; leveraging position will rely on marketers cultivating a more detailed understanding of women's attitudes and behaviors when selecting grooming products. Looking good remains highly important to women and brands must continue to tap into this trend. Since appearance heavily correlates with self-esteem, women are more likely to be emotionally involved with personal care brands due to intrinsic (how she feels about herself) and extrinsic (how he or she is perceived by others) self-definition. Although habit is a major motivation in product choice, female consumers retain openness to experimentation, particularly if they perceive a product to address an unmet need or to have advantages over their current choices (particularly on price, convenience and sensory experience terms). Marketers should: • Gain an understanding of women's attitudes towards grooming and how these are continuing to change • Use the latest evidence based insights to launch and reposition products, so that they can capitalize on prevalent female attitudes • Access a compelling blend of quantitative and qualitative data illustrating consumer attitudes and market developments

Pet Market: Surviving and Thriving in Challenging Economic Times

During the current macroeconomic environment the much touted recession resistance of the pet industry is being put to the test like never before—and appearing to hold up as of March 2009. Whereas total U.S. retail sales rose just 1.4% overall in 2008 according to the National Retail Federation, No. 1 pet specialty retailer PetSmart posted an 8.4% sales increase in fiscal year 2008; top five pet food marketers Del Monte and Hill’s recently reported double-digit growth, with Del Monte’s pet product net sales up 15.1% during the third quarter of fiscal year 2009 (ending May 3), and Hill’s revenues up 13.5% in fourth-quarter calendar 2008; leading veterinary hospital operator VCA Antech posted 6.7% revenues growth during fourth-quarter 2008; and online merchant PetMed Express reported a 16% increase in net sales during the fourth-quarter 2008. Looking at the pet industry as a whole, Packaged Facts predicts overall steady performance in 2009 and 2010, although the market growth rate will drop back slightly due to cutbacks in some of the more discretionary categories. A February 2009 pet owner survey data poll of 2,600 U.S. adults, there are four core market categories—veterinary services, pet food, non-food pet supplies, and other pet services (grooming, boarding, training, etc.) with projecting sales and key growth drivers and competitive opportunities for each. The pet industry has been performing better than other industries of comparable size and maturity because many households have pets and their numbers grow every day. Four focus areas—Humanization, Health and Wellness, Competition, and Demographics— show ongoing and emerging trends covering such topics as the multifaceted notion of value during the recession; impact of the human/animal bond on consumer expenditures; adaptation of human brands, drugs and service types; natural, organic and green products; functional products including pet medications and supplements; impact of the fast-growth pet insurance industry; effect of big-box expansion and franchising in the pet services field; the rise of celebrity marketing, non-traditional media, and cause marketing; and pet ownership trends in key consumer segments including premium demographics, aging Baby Boomers and PONKS (Pet Owners/No Kids).

Online and Offline Word-of-Mouth Communication

Word-of-mouth communication between consumers about products and services has long been among the most important information source for people to learn about products and services. The advent of the internet has ushered in an era in which people are able to communicate with more people, faster, and in more ways than ever before. The various online and offline means of word-of-mouth based communication (i.e. blogs, chat/IM, consumer ratings, email, face-to-face, phone, social bookmarking, social networks, Twitter, text/SMS, virtual worlds) are very important in a Public Relations and Marketing campaign. Consumer communications involve reviews, complaints, questions, how-to, ratings and more. People trust a user’s experience more than a product description because they can identify with the source. Reviewers are seen as influencers and adopters of new technology with a great number of followers. Bloggers have the power to make or sink a product with the power of word-of-mouth.

Reaching the African-American Market

With a buying power projected to reach $1.2 trillion by the year 2012, higher educational and professional achievements, and a Black president in the White House, Black Americans and Black culture have come to the forefront of the national consciousness once again. Today, many companies realize the value of having a multicultural marketing strategy that includes Black consumers. Unfortunately, many marketers have experienced mixed results from their programs and many cite a lack of credible metrics to determine the success of their efforts. The Black consumer market is not homogeneous. African Americans share a common ethnicity and view the world through that common experience. However, economic and educational factors along with life experience create as many viewpoints as there are individuals within the race. The historic event of the election of President Barack Obama and its effect on the mindset of Black consumers has been a catalyst for change in the self-perception of some but not all Black consumers. The distinct differences in opinion and viewpoint exist between those born prior to the Civil Rights era (i.e. Black Boomers) and those born during, and after it (Black Gen X and Millennials). This suggests that one message may not speak to the entire Black community. The portrayals of African Americans in advertising and in the media today still have stereotypical images, even into the 21st century. These negatively impact consumer responses to brand choices and brand loyalty by Black consumers who resent the companies that use these images. It is important for advertisers to ensure that personnel on any team targeting African Americans have enough cultural sensitivity and multicultural marketing experience to fully understand the Black consumer market. It is not enough to rely on media-driven stereotypes and assumptions or to emphasize extremes in Black culture. It is important to realize that African Americans “see more and see differently” when viewing ads, programs or commercials. For example, the meaning of wealth and education to African Americans, along with the long-held obligation to reach back and pull another up can be used by marketers to engage with consumers and help them achieve this goal.

The Hispanic Buying Power

As their buying power nears $1 trillion, the 46 million Hispanics now living in the United States exert a powerful influence on the American consumer economy. Between 1995 and 2007, expenditures by Hispanic consumer units grew more than twice as fast as expenditures by non-Hispanic consumers. The impact of Latinos on American society will get even stronger over the coming decades. The 133 million Hispanics expected to be living in the U.S. in 2050 will account for 30% of all Americans. The Latino population alone will be larger than the entire U.S. population was in 1940. In order to reach them it is important to pay attention to the attitudes and behavior of Hispanic adults across age groups and generations from Gen-Y and Gen-X Latinos through younger and older Boomers. There are nearly uniform differences between Hispanic and non-Hispanic consumers across all age groups. That is, most of the consumer attitudes and behavior of Gen-Y and Gen-X Hispanics are different from those of their non-Hispanic counterparts, while Latino Boomers think and act differently than non-Hispanic boomers. This suggests that strong cultural ties continue to differentiate Hispanics from non-Hispanics, regardless of age and degree of acculturation. There are trends and opportunities shaping the Hispanic market and the buying power of Hispanic consumers. The demographic characteristics of the Hispanic population; the economic status of Latinos today; immigration and acculturation trends; the core values of Hispanics; the attitudes and behavior of Hispanic consumers across generational lines and in key areas including fashion and personal care, eating at home and health and wellness; their leisure and entertainment patterns and media usage trends, all affect these opportunities.

The Influence of Culture on Corporate Social Media Use

Jeremiah Owyang, a prominent blogger, writes that companies have been slow to participate in social media. The reason is because of their culture: legal, management or location. The power of social media lies in people's interest in authentic dialogue. Companies must embrace the power shift in the conversation from the company to their customers so they may build longer lasting relationships and stronger brand loyalists. After all, nothing is more effective than word of mouth (WOM). So the benefit of social media tools for companies is to really understand their products from the people who actually use them.

The Inefficiency of Internet Advertising

When people surf the net they are willingly participating in more than one activity. Commercial messages pushed through in the form of ads, banners, etc. in order to reach a potential customer who is in the middle of doing something else, are not effective. It’s not that we no longer need information to initiate or to complete a transaction; rather, we will no longer need advertising to obtain that information. We will see the information we want, when we want it, from sources that we trust more than paid advertising. Instead, we will use information that we trust, obtained at the time that we want to see it. Consumers do not trust advertising, do not want to view advertising, and do not need advertising. People trust more information obtained from a known and respected source, i.e. professional /product reviews and peer reviews, rather than advertising. Indeed, the problem is not the medium, the problem is the message, and the fact that it is not trusted, not wanted, and not needed. There are three general categories for creating value that can be monetized, including selling real things, selling virtual things and selling access. Amazon and Zappos already sell real things, and they do it very well. TheNewYorkTimes.com sells virtual content and information; ITunes does the same with music. Yahoo! and AOL sell access. The net will find monetization models and these will be different from the advertising models used today because it is very difficult to capture attention when the attention is diverted. Better targeting of ads using individual interests and individual behaviors will ensure that we do not bore or annoy as many people with each ad, but cannot address the trust issue. The most efficient way to address trust issues is with word-of-mouth abundant on social networking sites. It is no secret that the social networking audience has grown rapidly. In 2008, 79.5 million people—41% of the US Internet user population—visited social network sites at least once a month, an 11% increase over the previous year. The growth that social networks have exhibited over the past few years shows little sign of abating. By 2013, an estimated 52% of Internet users will be regular social network visitors. The steady stream of updates and news will become a weekly or even daily habit for many people. That stickiness is good news for social network providers. The bad news is that—sticky or not—social networks are still struggling to develop workable revenue models. Will 2009 be the year that marketers and social networks figure out how to harness the myriad bits of information that consumers share about their likes, dislikes and purchase preferences—and turn them to a profit?

Wasting Mucho Dinero on Hispanics?

The followings article shows the sorry state of mind some of our leaders are in. Let's hope that the nomination of the first Hispanic to the Supreme Court ushers in a new era for the fastest growing minority in the United States: Senator: Spanish seat-belt ads a waste of money By Tim Hoover, The Denver Post Sen. Dave Schultheis says the Colorado Department of Transportation (CDOT) is wasting mucho dinero by running ads in Spanish that urge drivers to buckle up. "All these ads are going to do is provide one more assimilation off-ramp for new arrivals," Schultheis, R-Colorado Springs, said today. "Bilingualism in our buckle-up ads — just like bilingualism in our schools — will only encourage the further balkanization of our culture, reduce the pressure on new immigrants to learn English and make it harder in the long run for immigrants to become Americans." The department is holding a press conference to announce the TV ad campaign, its first ever Spanish ad campaign, on Tuesday. According to agency spokeswoman Stacey Stegman, 23 percent of all fatal-accident victims last year were Latino. And of a total 80 Latinos who died in accidents last year, 59 were unbuckled. "It's clear that expanded efforts are needed to increase safety-belt use within the state's Hispanic community," Stegman said. The department said the ad campaign is aimed primarily at Latino men and urges them to protect themselves and their families. Stegman said the ad cost about $15,000 to produce, and the agency hopes Spanish TV stations will run it for free. She said CDOT got $5.3 million in federal safety funds this year to address drunken driving, seatbelt usage, aggressive driving, motorcycle safety, teen driving and child safety seats. The department spent $622,000 on seatbelt education efforts and paid advertising last year, she said. Schultheis wondered where the accommodation of foreign languages ends. "Can we expect a new round of PSAs from CDOT later on this year in Vietnamese, Mandarin Chinese or some other foreign language?" he asked. Stegman replied, "If in Colorado there were the same large numbers of those populations that were unbuckled, we would do what we could to address those as well. "Our programs are about saving lives, regardless of the race." Script of Spanish seat-belt public service announcement SPA: Tu troca, nadie la toca. ENG: Nobody touches your truck. SPA: ¡A tu hija mucho menos! ENG: And your daughter no way! SPA: ¿Y esa camiseta que costó tanto sudor conseguirla? ¡Ja! Ni se diga. ENG: And that hard-earned soccer jersey? Ha! Don't even think about it! SPA: Si realmente cuidas lo que te importa, hazlo también cuando manejas. ENG: If you really take care of what matters most, also do it when you drive. SPA: Usa el cinturón y cuida lo que más te importa. ENG: Use the seatbelt and take care of what matters most. SPA: Un mensaje del Departmento de Transporte de Colorado. ENG: A message from the Colorado Department of Transportation.

The Demise of the Press Release

A Press Release is a thing of the past thanks to Social Media. Perhaps unknowingly, ordinary people have been sending press releases every time they post on their social network page and blogs the media pays attention to. Blogs, text messaging, emails, social networks, etc. all serve as a conduit for delivering news. From Twitter's infamous "What are you doing?" to news about an event or product, Social Media promotes conversation. The most significant difference is that a press release is controlled information whereas in social media the information can spear off into positive or negative directions. However, the conversations taking place online are organic, spontaneous and most importantly, attention grabbing.

Print Media Executives Beware

Newspapers spend so much time figuring out how to keep the old model on life support that they don't figure out how to build the new one. The state of the news business in the United States is the bleakest it has ever been. Every indication for the immediate future is that things will get worse, but journalism is thriving as never before, despite (or, perhaps, because of) the implosion of the businesses that traditionally have supported the press. Audiences for most print and broadcast media are shriveling. Confidence in the press is collapsing. Newspaper revenues have plunged by 25% to 33% since 2005, thrusting many publications from comfortable profitability to bankruptcy in places like Baltimore, Chicago, Los Angeles, Minneapolis, New Haven and Philadelphia. Newspapers have closed or likely will shut soon in Albuquerque, Cincinnati, Denver, Madison, Seattle and Tucson. News staffs and even publication frequency are shrinking at newspapers and news magazines. Coverage has been truncated to such levels that none of the Big Three networks has a full-time correspondent in Iraq and 27 states in the union don’t have a single, full-time newspaper correspondent stationed in Washington, D.C. For all the fear and frustration among journalists today, however, the vision of next-generation journalism is beginning to materialize in an age when cheap, easy-to-use and widely available interactive technology has democratized the creation, discovery and acquisition of information. If you define journalism as the activity that allows people to learn from each other what is happening in their world, then journalism is alive and well at Facebook, Twitter, YouTube, Blogs and thousands of other online communities. As but one example of the ferocious growth of participatory sites, the 1.5 million hours of video contributed to YouTube in the first six months of 2008 was greater than all the programming produced by the Big Three broadcast networks since their inception 60 years ago, according to Michael Wesch, a professor at Kansas State University. To be sure, not everything on Facebook or YouTube would be construed as journalism by even the most generous observer. But the value of the content is in the eye of the beholder. And those are the places, not mainstream media websites that are being visited ever more frequently by modern consumers. Newspaper publishers would be wise to drop print and delivery costs and then focus on digging out the hot local topics that their readerships crave weaving news together with talents of professional journalists, bloggers, and people using social networking tools such as Facebook and Twitter to instantly tell what is happening around them. With the toxic economy and sweeping secular changes in advertising grinding away at the economics of the legacy media, the need to discover new business models to support journalism grows more urgent by the day.

Newspapers are Disappearing

The Rocky Mountain News has ceased publication, a victim of the economy. The end of an era has come to Denver. For 150 years the Rocky Mountain News had been a fair and balanced newspaper and it will be missed. Or will it?

If the online edition continues with the same great content, then only the format will be missed. I hope the Rocky's human capital finds a way to deliver in an electronic format the great insights, analysis and stories we have come to love and depend on.

This is only the first stage in the evolution of news delivery. As electronic news gathering and publishing, RSS feeds, blogs and social media grow we will see more changes. Those who adapt will survive and I hope the Rocky will be one of them.

http://blogs.rockymountainnews.com/rockytalklive/archives/2009/02/i_want_my_rocky.html