Subject: Chief Marketer: The Three Ps of Marketing

From: Chief Marketer <[email-masked]>
Date: Tue, 21 Dec 2004 08:30:06 -0600

December 21, 2004 | A PRIMEDIA Property |

Table of Contents
Back to the ABCs--Make That the Three Ps--of Marketing
SEM Pays Off Despite Cost Hikes
Double-Duty Events
Generic Keywords Outperform Trademarks for Online Search
Online Shoppers Go for Upscale Goods
Coming to a Gin Joint Near You...

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This Week's Stories
Back to the ABCs--Make That the Three Ps--of Marketing
By Ben Ball
PROMO
Marketing in America is adrift today. More than 90% of all new products launched are not on the shelf two years later. Manufacturers are scrambling to maintain brand share in the face of a sea of private-label entries. Consumers are showing less and less willingness to pay a premium for "national brands."

A hundred years ago we had it figured out. Marketing was about product, place, and price. Get a good product to a place where someone could buy it for a price that reflected the intrinsic value of the product and how difficult (or dangerous) it was to get it to the buyer.

In the decades since, while creating more product and place options than we can effectively use, we've forgotten the basics of product, place, and price. In the face of this myriad of options, consumers are reverting to a simpler approach to making choices.

Consumers, it seems, haven't forgotten the basics of product, place, and price. Just as we followed consumers into the frontiers of cable television, online shopping, warehouse clubs, and dollar stores, now we must follow them again as they change the rules of the game to fit their needs.

To read how to profit from the three Ps of marketing, visit PROMO.

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SEM Pays Off Despite Cost Hikes
CATALOG AGE
The cost of search engine keywords increased 26% in 2004, according to a survey of 288 search engine advertisers and agencies conducted on behalf of the Search Engine Marketing Professional Organization (SEMPO). Yet respondents said that on average prices could rise another 33% before search engine marketing (SEM) would fail to be profitable.

Among other survey results, 59% of advertisers said that the funds for their SEM expenditures came from the budgets of other marketing programs. The plurality of funds were shifted from paid listings on shopping directories, followed by e-mail programs, Web display ads, and newspaper and magazine ads. Brand awareness was the primary goal of advertisers' SEM efforts, though sales and lead generation were close behind.

Looking ahead, advertisers said they expect to spend 39% more on SEM (including organic search as well as paid placement) in 2005 than they had this year.

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Double-Duty Events
By Michael Bassett
CORPORATE MEETINGS & INCENTIVES
The inclusion of branding events in incentive programs -- as well as the addition of motivational events to marketing-oriented gatherings -- is a growing phenomenon, according to Ira Ozer, director of national accounts for Atlanta-based USMotivation. These new "multitiered" events not only accomplish dual purposes but also offer companies a greater return on investment, he says.

Taylor Black, a senior producer with Extraordinary Events in Sherman Oaks, CA, agrees. "You can integrate things like educational programs with incentives and marketing, and combine all of these [corporate] groups that used to take you in separate directions," he says. "Now you can have a much more succinct marketing message."

Extraordinary Events worked with auto manufacturer Chevrolet last year to transform a resort in Arizona into "Rancho Chevrolet," a setting of Old West buildings and cacti against a dramatic mountain backdrop. Since the visitors to Rancho Chevrolet were the company's dealers, the hitching posts had Chevy trucks attached to them instead of horses, and the local graveyard was littered with the tombstones of the company's competitors.

The evening was part of Chevrolet's three-day Genuine Leaders Program, which the company views not only as an incentive program but also as an opportunity to market and reinforce its brand. From the table linens to the neon Corvette logo centerpieces, planners took full advantage of this opportunity to reinforce the Chevrolet message. The event was so successfully branded that, according to Jon Michaels, director of operations for Extraordinary Events, dealers were writing out checks on the spot for logoed goods ranging from checkered tablecloths to hand-painted umbrellas.

To read more about motivational events that also serve as marketing vehicles, visit CORPORATE MEETINGS & INCENTIVES.

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Generic Keywords Outperform Trademarks for Online Search
DIRECT NEWSLINE
The use of generic keywords for Internet search engines (as opposed to trademark names) and convenient return policies boost online response and sales, according to two recently released studies of consumer shopping behavior.

Generic terms accounted for 61% of inquiry conversions to sales, whereas brand-name terms used for searches converted to sales 30% of the time, according to findings released by ComScore Networks, which was sponsored by Overture Services, a subsidiary of Yahoo.

Eighty-three percent of consumers use generic terms for Internet searches, rather than a product specific term. Roughly 40% of the inquiries that convert to sales occur within 5-12 weeks.

To read more, visit DIRECT.

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Online Shoppers Go for Upscale Goods
DIRECT NEWSLINE
Jewelry, luxury goods, and accessories are shaping up to be hottest online product categories this shopping season in terms of the number of consumers visiting Websites. Online traffic in these categories increased 40% between October and November, which translates to 13 million consumers visiting sites offering such products.

This year it's projected consumers will spend $15 billion online. Roughly 80% of the Internet-connected population has shopped online this year. The latest monthly figures released by comScore Media Metrix indicate consumers have spent more than $1.3 billion online through Dec. 12 for jewelry and watches, which appears to be the fastest-growing category this year. Overall sales in this category are 58% higher than for the same period last year.

The toy category and department stores have also seen large gains. In November nearly 22 million consumers visited Websites offering toys, reflecting a 14% increase from the previous November. Similarly, department stores with Websites saw a 29% increase in online shoppers.

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Coming to a Gin Joint Near You...
Some people head to their favorite water holes to forget about their troubles. But the folks at Coaster CD want them to remember advertising messages. To that end, the Burbank, CA-based company is introducing a drink coaster that also holds a CD or DVD.

According to a press release, the coaster "will deliver entertainment to consumers, such as movie trailers, music videos, video games, album releases, marketing material, sports highlights, collectibles, and much more." The company says it has already received "overwhelming" interest from alcoholic-beverage companies.

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