Posts Tagged ‘Advertising’

Despite the Gladwell Debate, Social Networks Matter

November 9, 2010 4:54 pm by DavidCrosbie

Elmo Roper, creator of The Influentials

The Blink author’s latest pronouncements should be viewed in the context of broader consumer trends, argues David Crosbie

We at GfK Roper Consulting are particularly proud that it was our illustrious predecessors who created the concept of the Influentials – the one in ten citizens who tell the other nine how to vote, where to eat and what to buy.

The concept of Influentials was first coined by Elmo Roper in the 1940s, in a segmentation created for Standard Oil. Starting in the US in 1973, and then later globally, we have identified and profiled those well-informed and trusted individuals who are sought out for and disperse advice on a whole host of topics, and who are so valuable to marketers. As traditional forms of advertising are trusted less and less, and as technology develops, we have also monitored the steady growth of ‘word of mouse’, as it supplements traditional word of mouth.

It’s in this context that I was particularly interested to read Malcolm Gladwell’s controversial article on social networks in the New Yorker magazine last month, and to monitor the fierce debate it ignited on the Twittersphere and elsewhere. Of course Gladwell is something of an Influential himself, with books such as The Tipping Point and Blink selling millions of copies and influencing countless marketing strategies.  In his article, Gladwell warns that the motivational power of social networks is being over-estimated, explaining that a Facebook friend (or other virtual relationship) should not be equated to a real friendship, as some have tried to, because the ties are much weaker in nature. His argument related particularly to social activism, but it certainly caused me to reconsider the relative worth of ‘real’ and ‘virtual’ ties.

Our GfK Roper Reports Worldwide data show how virtual relationships are the fastest growing form of interaction globally, with 20% of consumers in our 2010 study saying they had been in touch with someone they only knew online in the past month. We also know that online sources are increasingly trusted as a source of information on which products or services to buy. As the growth in popularity of product review sites has shown, strong personal ties are not quite as necessary when it comes to deciding what to buy or where to eat, though the views of a friend will still count for more than those of a stranger.

As we see it, not only do the myriad social networking sites make it easier for traditional Influentials to carry out their business of spreading the word about products and services they like or dislike and responding to requests from acquaintances for advice, but they also encourage others who may have never previously considered doing so to review a hotel on TripAdvisor, say, or to consider the opinions of fellow consumers via a product review site.

As Gladwell argues, Twitter and Facebook may not be as suited to organising revolutions as more conventional forms of social activism, but in the world of retail they undoubtedly strengthen the hand of the global consumer, and as such their power should not be dismissed lightly by marketers in any sector.

Built to Last – Marketing lessons from the turn of an odometer

May 4, 2010 8:55 am by Jon Berry

By Jon Berry

What do you get for a car that’s gone the extra mile for you? How about a trip to the car wash and replacing its missing hub cap?

Last week our 1998 Toyota Camry turned 175,000 miles. Fittingly the milestone came on a trip to the grocery store. While this mild-mannered sedan no doubt has daydreamed of lighting out for the frontier for a Blue Highways adventure, its reality has been more George Bailey than William Least Heat Moon.

 (If Pixar ever creates a car version of It’s a Wonderful Life, George Bailey, the hero who never left home, will probably be a Camry.)

There have been a lot of trips to the store in this car. And commutes to work. Drives to school. And to the movies. The odometer may evoke adventure – 175,000 miles is equal to 60 drives across the country. But the furthest West this car has been is trips to my parents’ farm in Indiana.

This has been a family car. It’s been through two kids growing up and going off into the world; two dogs (note the chew marks on the rear-seat seatbelts); family vacations to the beach (sand in the trunk); Christmas trees (pine needles); and trips to college (amazing how much can be crammed into defined spaces).

And it’s done so with minimal repairs – a record that, with all the costs of raising kids, I will be forever grateful for. Which is one reason that, even as the Camry’s sidled into being our second car, driven only a few times a week, I’d have a hard time giving it up.  
 
I bring all this up because I think I’m not alone. It’s not just cars – though my informal research, asking for a show of hands at speaking engagements for those whose cars have gone past the 100k mark suggests quite a few folks are in that category. All things “vintage” are being prized more these days, from clothes, to music, home décor, and recipes.
 
Staying power is having a star moment. Six in 10 Americans tell GfK Roper Reports® they strongly agree that they buy things that are “built to last.” That’s more than the proportion who tell us they’re “comparing prices and looking for the best price” on everything they buy. And agreement has risen since the start of the recession. Timelessness has become a theme among consumers across the world as well – and marketers have been responding.
 
I don’t think it’s simply nostalgia. There’s renewed appreciation of day-in, day-out, value-for-the-dollar quality – a value those who grew up in the Depression carried with them, and that, until recently, seemed lost on younger generations. As recession-singed consumers reenter the market, businesses should remind them that buying products built for the long haul will save them money they can spend on other things – even if it costs them a bit more now.
 
Camrys may not be cool in the way that the round-shouldered Chevys and sharp-finned Caddies of the 1950s and 60s were. But there is something innovative in them that I’d forgotten about until that magical rolling-over of the odometer knocked loose the memory of my then teen-aged son’s rationale for buying the car: “It’s the low-end Lexus.”
 
That quality of delivering luxury-car quiet, ride, and reliability at a middle-class price was part of a larger wave of innovation in marketing in its day that brought gourmet-quality food (Trader Joe’s, Starbucks), furniture (Ikea), investments (Fidelity, Vanguard), even running shoes (Nike’s “Bowerman” line) to broader audiences. In their way, they were as innovative as the first Fords, the first Chevys, or the first Apples. They’re worth studying for the lessons they offer us now. 

We still have a ways to go to catch up with the Depression generation. I am reminded of this every time I travel out to Indiana to visit my Dad, go into my Dad’s barn, and see his two tractors – a shiny red 1940s International Harvester and his “newer” model, a shiny blue early-1960s Ford. Add one more reason to hang onto the 175,000-mile Camry – to see how its story turns out.

Consumers’ Green Attitudes No Fairy Tale

March 31, 2010 11:15 am by DavidCrosbie

Reaction to awareness campaign underlines the controversial nature of this topic, says David Crosbie

Once upon a time – last October in fact – the UK government’s Department of Energy and Climate Change (DECC) created a TV and poster campaign that highlighted the dangers of climate change in language that all consumers could understand. The series featured well known nursery rhymes, whose original lyrics were altered to take account of the effects that climate change has had on the environment. So for example, when “Jack and Jill went up the hill to fetch a pail of water”, they found that, “[t]here was none, as extreme weather due to climate change had caused a drought.”

The campaign, however, was the subject of nearly 1,000 complaints to the Advertising Standards Authority (ASA) from members of the public who varyingly claimed that it was misleading, scaremongering and frightening to children. In mid March, the ASA ruled that two of the print ads, ‘Jack and Jill’ and ‘Three Men in a Tub’, had breached its guidelines, noting that they “should have been phrased more tentatively.” In the wake of the judgement, some commentators have weighed in with further criticism of the campaign, going so far as to say that it set back public debate on the subject several years.

This incident serves to underline the contentious nature of the issue of climate change. The number of complaints received suggests that there is a body of UK consumers who, if not opposed to the idea of man-made climate change, are sceptical about it and alert to exaggerated or misleading claims made on the subject. The aim of the campaign seems to have been to cajole or even frighten consumers into action by reducing their carbon emissions, but what are the current levels of engagement (and cynicism) amongst Brits?    

Roper Reports Worldwide data from 2009 show that 59% of UK consumers agree that “we/I have to do something now to save the planet”, which falls somewhat short of the global average. On the other hand, 27% agree that, “global climate change/global warming is not as much of a threat as the media make it out to be”, again a lower proportion than globally. Rather than leading to increased agreement with the former statement, this latest campaign may have inadvertently led to increased agreement with the latter. The fallout has led some to ask what is the best approach to environmental communication.

While the answer to this query is by no means straightforward, what is not in doubt is the complexity of the debate on this topic. That is why GfK Roper Consulting is taking its consumer research on environmental attitudes one stage further in 2010 with Green Gauge Global, a new product that includes a worldwide green segmentation of consumers. You can now sign up to receive the latest news on this product as it is released, so that you can sleep safe in the knowledge that you won’t miss out… 

The New Globalists

March 1, 2010 4:48 pm by Jon Berry

Leapfrogging the recession by going abroad

By Jon Berry

One friend’s child, a 2008 college graduate from California, is in his second year teaching English in Madrid, Spain’s, public-school system. Another friend’s child, a new grad from upstate New York, is coaching lacrosse at a private school in northern England. Two others chucked their entry-level jobs to travel, respectively, to Kenya and China. Another latched onto a puppetry workshop in Italy. Another went to Greece to build up her photography portfolio.

I’m not sure at what point one can declare a trend. But going abroad is becoming to this recession what graduate Google Screenshotschool was to past downturns – a strategy for leapfrogging the economic cycle with an experience that will make you more valuable for the long term. It’s not just young people. A parent at the school where my wife works is transferring to the Singapore office of an investment bank. But the young are a driving force. A major motivation for the parent was to give his kids the experience of living in Asia; it will good for their economic futures, he says.

Welcome to the next era of globalization. Global growth, as measured in economic data, may have slowed. But the idea of globalization is streaming forward. And it’s become more personal and generational. It’s as if a 21st-Century Horace Greeley has said, “Go West, young people. And East. And North. And South.”

Forget “Gen Y.” The true handle on this generation is globalization. Call them the New Globalists. Or New Frontierists. Or the Marco Polos. Or the Gaias (for their combination of globalism and environmentalism).

Three Cups of Tea

Reared on books, movies, and international campaigns expressing a passion for the world and the possibility that progress can come from connection – Three Cups of Tea, The Lexus and the Olive Tree, Doctors without Borders, Partners in Health – at a time when falling trade barriers and a growing Internet are bringing the world closer together, New Globalists live in a fundamentally different world than their parents. They likely will teach their elders the tools of globalization the way previous generations taught their parents how to use the remote control.

I think the threat that people my age see in globalization – that way we robotically append “competition” to the word “global” – says more about our fears than reality. We react the way our parents reacted to the social and technological changes of their time.

Did you see Google’s Super Bowl ad that tells the charming story of a cross-Atlantic romance through a series of Google searches? (I’ve linked to it below.) It’s a great ad, and it’s great because it’s true. Many people have a version of the Google-changed-my-life story. Mine is about my daughter. As she was approaching graduation from college, her advisors told her she should find a writers colony. They suggested several in the U.S. But my daughter, thinking an expat-in-France experience would be more to her liking than Provincetown in winter, Google-searched writers colonies in France. She emailed applications, and voila, a few months later was at an artists colony in France, the only American among sculptors, painters, videographers, and writers from Africa, Europe, Latin America, and Asia (and at a very low price).

When we hear stories of a college student going to Scandinavia, striking up a relationship with a young business-school student whose concentration is business in China (a program started because so many Scandinavian companies have operations in China), then continuing that long-distance relationship (another true story), we tend to marvel, like with the Google ad. “Wow, isn’t that amazing.”
Be ready for more such stories. The New Globalists travel great distances, strike up relationships, and come back with new ideas and amazing stories with the ease that my Indiana farmer grandparents took Sunday drives to Cincinnati. I believe it cuts across class lines more than people suspect: a job on the factory floor in Indiana can lead to a promotion to a job in China (another person I know).

We’ve begun to see the shift in our research; for example, a recent GfK Roper Reports U.S. survey found that the #1 thing Gen Y (aka the New Globalists) would like to do at this stage of their life is “visit other parts of the world”; 84% agree. But this story is just beginning. Businesses should think about fashions, foods, objects, books, programs, and ideas you can introduce from other parts of the world – and about how you can facilitate this new generation’s adventuring.

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Experiencing Globalisation

February 16, 2010 11:52 am by AnnaClark

The contrast between rapidly developing Gurgaon and the hubbub of Old Delhi

A reminder of just how real globalisation is, from a recent trip to rapidly developing Delhi.

By Anna Clark

On a recent trip to Delhi to run a trends workshop, we took the opportunity absorb the city, do a spot of people watching, and as trend spotters on tour, check out the local advertising

One of my first impressions was the very obvious presence of all the major global brands. HSBC advertising met us in the airport, and as we travelled around the city we saw plenty of ads from tech companies such as LG and HP, and FMCG brands such as Pantene.  Of course in a nation that still very much trusts advertising over word of mouth, the presence of so much advertising was to be expected.

In the supermarket alongside more traditional foods, all the same household names could be found, Cadbury, Red Bull and L’Oreal to name just a few, although with some interesting flavour variants (e.g. Mango coated Cornflakes).

In some of the shiny new malls popping up in the Gurgaon business district, we found Baskin Robbins ice cream vendors, Reebok stores, and Italian restaurants. We had a beer in an ultra modern microbrewery bar, and dinner in a Chinese restaurant, and could easily have thought we were in any city around the world, then stepped out into the dust, the bustle of rickshaw drivers, people milling around and chatting on the roadside, and mass construction going on all around the city as it prepares in earnest for the Commonwealth Games later this year.

There are, however, things that serve as a reminder that only a small proportion of Indian consumers visit these places and that many are still very much on their way up: security gates and bag searches on the way in to, and out of, all the modern malls; and billboard adverts for a recruitment company with the slogan “All I want is everything”.

There are also hints that gender roles are more traditional – one billboard read “The economy is recovering, time to buy your wife that big fridge”!

All this quite basic advertising left me wondering at what point the more subtle advertising messages that dominate the West will start appearing in India, and the potential for events based and experiential marketing to capitalise on such a vast and rapidly developing population?

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