Most advertisers recognize the value of consumer research in making more timely and accurate marketing decisions. However, cost and timing considerations have prohibited many from using this valuable tool.
Fortunately, there are alternatives. One particularly effective research tool is a national consumer telephone omnibus survey. These surveys are conducted by large reputable firms like Gallup or Harris. Typically they are done on a weekly basis with a minimum of 1,000 consumers (usually 500 men and 500 women) who are randomly selected to provide a nationally representative sample of opinions, attitudes and buying patterns. The findings then are cross-tabulated by standard demographic information, including age, number of children in household, education, employment status, gender, income, marital status, ownership of home, primary shopper status, race and region. Additional custom tabulations are also available.
Because of their flexibility and timeliness, these types of surveys are particularly valuable in providing a "snapshot" analysis of awareness of a company or product and are also used for tracking trends over time. The affordable aspect comes into play because the fieldwork costs and overhead are shared by several different marketers and advertisers. The diversity of questions in a typical phone survey of this sort also helps maintain a "blind" sample for unbiased responses. (Consumers don't know which company is asking the questions.) And the survey tends to be more interesting to the respondent because it covers a diversity of subjects.
For example, Fender recently wanted to know how it compared to other electric guitar manufacturers in terms of mass-consumer recognition. In less than six days, we were able to determine consumer awareness for every guitar manufacturer.
How affordable is this type of research? The cost range for a single question is usually $500-$1000, depending on the complexity of the question. And once the questions are finalized, they can be fielded within 2-3 days. The fully tabulated results are usually available within a week.
We all need to stay keenly attuned to the dynamics of the marketplace in order to remain competitive. Because of the flexibility, affordability and timeliness of this type of consumer research, we recommend that our clients take advantage of it whenever appropriate.
Why do all diet ads look like diet ads? For the same reason that all movie ads look like movie ads. And car ads look like car ads. They're slaves to "category culture." It seems that every category has one, and it happens for several reasons:
1) Mis-use of research -- Often, competitors within a category do similar research and interpret the results the same narrow way. Which justifies the same narrow creative solution.
2) "But we've always done it this way." -- This is the way it's been done in this category for the last 180 years, so it must be right.
3) Blind emulation --"Well, the big guy in our category does his ads this way, and if it's good enough for him, it's good enough for us."
So if you are stuck in a category rut, it's time to start a "Cultural Revolution." Throw out the book...and the culture...and rewrite the rules. Because the worst thing you can do when everyone is doing the same thing....is the same thing.
Do you know which type of electronic file to use when? Raster and Vector are the two main file formats used in graphic production, but their strengths are very different.
Raster files (or bit-mapped files) are the best choice for photos and images that require subtle gradations of colors. They are not good for enlarging or rotating images. They are resolution dependant, meaning that they can be decreased in size without apparent loss in quality, but they cannot be enlarged without noticeable rastering (jagged edges). Depending on the desired resolution, Raster files can be very large in size. PhotoShop® is the most common program used to create Raster files. It is imperative to know the largest size of a Raster file that will need to be used before the file is scanned or created. All photographic images should be created in Raster format.
Vector files can be reduced, enlarged, rotated, reshaped or refilled with no loss of quality. Vector files are created by programs such as Illustrator®, Freehand®, Canvas®, Coral Draw® and Photoshop® 6 (type treatment and line art only for the latter). Vector files usually have relatively small file sizes. They cannot incorporate photographic images, they occasionally have problems with smooth gradations and they can only be saved out in an EPS (Encapsulated PostScript) format. All logos and non-photographic elements should be created in Vector format.
Q: How do people find information on the Web? A: Search engines.
In fact, in any given month, 95 million Americans use a search engine to locate information. So how can you ensure that your site is listed in the results when someone is searching for your product or service? There are now several pay-for-performance search engines available that allow you to bid on search phrases and pay only for the users that click-through to your site. Pay-for-performance models have several advantages:
Overture is the leading pay-for-performance model, reaching 75% of all search traffic with its extensive partner network (including AOL, Yahoo, AskJeeves, Netscape, and Altavista).
Depending on your business category, you can get your fair share of search engine traffic for less than $2000 each month. Pay-for-performance is a great vehicle to send pre-qualified people to your site.
You may think you know your customers. But how well do you know them? When was the last time you defined them in clear, specific segments?
Your customers and prospects have differing needs, perceptions and relationships with you. In order to get the best return on your investment, you need to segment them into distinct groups and find clear areas of differentiation among them. Whether it's simple demographics of age and income, more complex life style/event analysis, or just knowing what, when and how much they have purchased from you in the past, each of these segments will respond differently to your marketing message. And the only way to know which message works best is to test it.
What to test? Try what I call the T.O.P.I.C. variables: Target, the list or segment; Offer, a test drive, discount coupon or free trial etc.; Price, different price offers determine how price-sensitive your products or services are; Image, design, graphics or photos; and Copy, different ways of presenting your marketing communications message.
The results are simple to measure. At the end of the testing period, calculate the response rates of each test element by dividing the responses by the total number of individual names reached or contacted in each "cell." Voilˆ. Now roll out the successful tests to a larger universe of customers or prospects and scrap the tests that don't work.
The Keys to Successful Testing:
Quick! What's your ultimate asset? Answer: Your customers.
Quality products are offered by lots of competitors. But the trophy goes to those who develop the best relationships with their customers.
A new level of relationship marketing is now more feasible because the price of database technology and communications has dropped so dramatically.
Customers' habits can be easily tracked. Products and messages can be customized. You can essentially give your customers what they want with the message, "We care enough to know your needs."
The companies who capitalize on this opportunity will have a competitive edge for the life of each customer they acquire.
Unlike using mass media in which we're required to find customers for products, relationship marketing requires finding products for customers.
While traditional marketers look for share of market, relationship marketers build share of customer.
Products and services can become obsolete overnight. Customers can last a lifetime. So, the most valuable asset a company has is its customers.
Creative solution? Use database technology to get closer to your customers. Now!
"Almost any question can be answered cheaply, quickly, and finally, by a test campaign. And that's the way to answer them -- not by arguments around a table. Go to the court of last resort -- the buyers of your product." -- Claude Hopkins, "Scientific Advertising," 1923.
Eighty years later, direct and database marketing still thrive on this basic premise: Test-Measure-Refine:
It's usually best to focus only on key factors, especially when you are just beginning to test:
Testing does not always make economic sense, like when your mailing quantity or mailing frequency is low. List tests are always a good idea. We think the Test-Measure-Refine loop is as valuable today as it was 80 years ago when Hopkins described it.