With an uncertain economy, consumers search for more affordable items, driving a different kind of shopping behavior. Comparison websites and surfing for deals delay the impulse to buy in a retail store. Information gathering and reading reviews online is part of the research process savvy shoppers are engaging in.
Today’s shopper falls into three main categories:

• The end user: For them shopping is done almost exclusively online. They shop from home and they use price comparison websites extensively

• The shopper: They walk around town, visiting shop by shop to see what’s on sale. They then use the web to see if they can get a better deal online

• The buyer: They buy physical items in real shops. They may still shop around, but they make the purchase at a physical store. It’s a real experience for them

The challenge that marketers now face is that the power has shifted from the brand to the consumer. The consumer makes the decisions about where, when and how they will shop. Technology allows them to find the best product, the best brand and the best price. It also allows them to build a relationship with these brands before and after they purchase. So, how can a brand pull ahead of the competition to capture those social shoppers?

Brand advocates are key in the social universe. Developing a dialog with these key influencers is essential to broaden a brand’s message, to get it shared and amplified beyond the first connection.

Here are some simple steps that will build consumer connections:

• Remember that every consumer has a very different lifestyle. By studying their lifestyles you will begin to understand how to market to them and know what they want to buy.

• You have an opportunity to provide consumers with timely and relevant
content in the right place – on the right device. Make sure your content is compelling and interesting.

• Social Coupons are easy to share, which means they can go viral – paper based coupons cannot. This gives them a potentially huge reach and return.

• Integration is key. It’s no longer enough to run just a TV campaign. Brand advertising works together with PR, Social Media and promotions to create a mutli-media strategy that pays dividends.

• Cater to consumers, give them what they want, in the form they want, on the device that they want. You have to fit their lifestyle preferences.

Image credit:  KMP Blog

A captive audience?

Taking the NYC subway is always an experience and I am sure anyone who has ridden on the train has been entertained at some point. Well, you can get more than just an experience on the “A” train—no need to go to a Broadway show and spend $100 plus $4 for a bottle of water.

If you take a ride on the A train, or I am sure any other letter or numbered car, you will get more bang for your buck for your $2.25 and get your own seat (hopefully). Maybe even get an M & M snack bag from a teenager selling from his (haven’t seen a woman perform this job yet) box which is usually taped to the hilt so no profits fall through the cracks.

The curtain call is usually announced by someone in a youthful voice, projecting very loudly or even singing the words “It’s Showtime”. Make no mistake about it—that is what you are going to get; whether you like it or not. There are several different acts as in a variety show, with minimal intermissions-only break you can get is if you put earplugs in or fall asleep. Always a surprise to see who is on the Playbill. New Yorkers understand…

About the Salesmanship…

What I find most interesting is the sales & marketing behind each performance and entertainer. Each act, whether guitarists in authentic costumes, bongo drummers who bring their own seats, kids selling candy, people fundraising to support their families or those who want you to repent, has something in common. They know they should market to subway riders who have nowhere else to go, boarding the train in the evening when people are more awake and would sooner be bothered to give donations and applaud, those who need to be soothed by very loud dancing music, tell you that they are not criminals and the money is going to children, families or their education. They also know exactly when to leave your subway car to step into the next so all can be beguiled by their charm, talent and sometimes wit.

Even the man who sells flowers and doughnut sticks on the platform knows exactly where to stand to get the most business and how to package his goods for the convenience of the transit goer. I am not sure how many of these food vendors and entertainers have studied the craft of marketing, but they certainly know instinctively how to brand themselves and be in front of their target audience to increase sales. They all do repeat performances on the A train, maybe because they like the customers in their ever-changing storefront. Music and food are two big sellers, but I am still deciding about religion and ridership. These self-employed marketers really know how to promote their stories and their talent. Some are one in the same, like the poet I heard recently or the man who makes the exact same sound as the subway doors closing. He has gotten lots of laughs with his unique skill.

Since our full service agency is entrenched in creating marketing, social media and PR campaigns, I can appreciate the value of the sales tools and marketing strategies they employ. Smart is smart.

Many companies still seem to be apprehensive about engaging in social media–perhaps they are afraid it will spark negative conversation, or because they still don’t understand the upside. But the reality is, no matter if your company is involved in social media or not, people are going to be out there talking about you, so you may as well be involved and direct the conversation.

Recently, one of our team was involved in the perfect example of social media really working. After tremendous frustration, she unleashed a Tweet into the social media-universe criticizing the California Department of Motor Vehicles for the difficulty she was experiencing replacing her California driver’s license.

“just heard the CA DMV is taking months to replace licenses…meanwhile i lost mine and cant get a NY one until i replace CA one #predicament”

Assuming the DMV to be somewhat “old” and untouchable, she didn’t even check to see if they were actually on Twitter. So it was to her surprise that the California DMV actually Tweeted her back.

“@CA_DMV @leesaraab We would like to help. Please follow DMV & DM us your phone number so we can contact you for additional information. Thanks.”

Not only did they Tweet her and offer assistance, but they called within 10 minutes of receiving her number to assist her in fixing the situation, free of charge.

Had the CA DMV not been present on Twitter, the scenario could have gone down much differently–perhaps by other people on Twitter joining in to throw out their complaints or maybe there would have even been a negative blog post or two, which would have spiraled one Tweet in to an on-going word of mouth nightmare.

Instead, they took advantage of the opportunity to let her know that they care and are there to help. The result… Several Tweets (which went out to over 300 people) giving praise and thanks to the CA DMV, and now even a blog post to say how impressed we are.

So when you start to think social media isn’t the place for your company, just ask yourself WWDD–what would the DMV do?

Facebook seems to be unstoppable. With over 550,000 million people on Facebook, is there room for other social networks? While there is power in numbers, social networkers will be exploring more niche communities or alternatives as they seek for greater exclusivity or privacy.

There are plenty of options and it will be interesting to see how it all shakes out. For instance, Path, billed as “the personal network” and “a place to be yourself,” limits members to 50 connections.

Other options include Appleseed, OneSocialWeb, Diaspora, Pip.io, The Fridge and College Only as well as DIY social networks, invite-only offerings and student networks that go back to Facebook’s roots.

So, watch for counter-moves from Facebook, which has already responded with Groups features.

Source: JWT 100 Things to Watch in 2011

This is the time of year for trends. Trends for 2011 are popping up everywhere. So, not to be left out, we decided to gather the ones that most appealed to us and make a compilation of our favorites gathered from numerous websites, blogs and magazines.

In no particular order are our Top Eleven Trend Picks for 2011:

1. FINANCE: Crowdfunding

Kickstarter popularized the idea of crowdfunding, which is when a large group of
people help fund a project or business through a cluster of small donations. Kickstarter began as a way to help artists get projects off the ground. In return for funding, donors receive goods or services, or even just a well-crafted thank-you, in lieu of equity or interest payments. Now the same idea is spreading to business ventures. Diaspora, a tech company that wants to build a social network to rival Facebook got more than $200,000 in seed money from a Kickstarter campaign. Look for more niche-oriented crowdfunding sites in 2011.

2. FASHION: The 70’s are Back!

It’s That ‘70’s Show all over again! From the wide-leg trouser to the sexiest classic halter top, the ‘70’s are back again in a BIG way! Even longer, fuller, smarter looking skirts and dresses are giving minis a run for their money. Call it a grown-up movement.

3. LIFESTYLE: It’s For The Birds!

The “priestess of trends” Li Edelkoort, a pioneering futurist believes that we will be moving towards a more community-oriented behavior in the next decade. Our attitude will be one of respect for our environment and our species. Also, birds and their social behavior will become a model for the Autumn/Winter 2011/12 fashion season. Birds are a model of social connectivity and communal efficiency, as well as an incredible source of inspiration to develop rich color cards, fantasy fashion shapes, creative make-up, hair color and hair styling.

4. ALCOHOLIC BEVERAGES: Let’s Celebrate!

Technomic predicts that as optimism grows in 2011, consumers will want to celebrate with some higher-end alcoholic drinks. As such, retro cocktails and high-end spirits may get more play at fine dining and independent establishments. Craft beers could gain in popularity against their mass-market counterparts and fast-casual concepts could turn to alcohol as a way to differentiate themselves – Cheers!

5. RESTAURANTS: New Competition

Two major trends will affect the restaurant business in 2011.
i. Food trucks are poised to move beyond New York and Los Angeles into more US cities. Not only will gourmet food trucks proliferate, but traditional restaurants will begin using the tactic as a way to extend their brands into new areas or add revenue streams like catering.
ii. Retailers have been encroaching on restaurant turf for a long time, but now the hottest action is among convenience-store operators upgrading their foodservice, where margins are 40-60% instead of the 5% typical for gas.

6. AGRICULTURE: Farmers as Celebrities

The era of the celebrity chef may soon give way to that of the star farmer. Look for more attention to be paid to producers and suppliers on menus across the nation as a growing back-to-the-source mentality takes hold of the industry.
Farmers and producers may soon be high-profile spokesmen for restaurants and host more special events and dinners.

7. HEALTH: Now Read Wellthy

As good health is now as important to some consumers as having the biggest, newest or shiniest status symbols, growing numbers of consumers will expect health products and services in 2011 to prevent misery, if not improve their quality of life, rather than merely treating illness and ailments. In 2011, count on even more monitoring technologies becoming portable or even wearable, as well as getting cheaper (the smartphones held by many consumers are now more advanced than most dedicated medical devices). Also, both regular and dedicated social networks give audiences a platform to share, compare and discuss their personal health issues with other consumers. Last but not least, the ‘consumerization’ of health means that more consumers will choose products with embedded health benefits that are actually well designed, desirable, accessible, fun, tasty, interesting or storied—for a personal connection.

8. ECO-FRIENDLY: Will Become Eco-Superior

When it comes to ‘green consumption’ expect a rise in Eco-Superior products: products that are not only eco-friendly, but superior to polluting incumbents in every possible way. Think about a combination of eco-friendly yet superior functionality, superior design and/or superior savings. The need for Eco-Superior is being driven by the fact that the number of consumers actively seeking out ‘green’ products is reaching a plateau, as mainstream consumers start to question the value and efficiency of going green. Think “tube-free” toilet paper for one, and the FTC publishing the first update to its “Green Guidelines in 12 years. Manufacturers will have to link their “green” or “eco-friendly” claims to specific attributes.

9. DIETING: Farewell to Fads!

Dieting is so 2009!!! Healthy eating will become the focus for 2011, as the road to good health is paved with good eating intentions rather than bizarre diet interventions. Gone are the days of carb-free, grapefruit only, diet fads. Now ‘healthy’ is considered eating a well-balanced meal with lots of fruits and vegetables and a limited amount of sugars and processed foods. Even lunchrooms are getting ‘smarter’, as experiments in schools and workplace cafeterias include rearranging food options with more nutritious selections at the front, attractively displayed to encourage smarter food choices.

10. SPECIAL OFFERS: Make Way for Pricing Pandemonium!

While consumers have always looked out for special offers and discounts, new technologies and services mean that 2011 will see total Price Pandemonium. Always-on connectivity is changing consumer spending habits in myriad ways. For example, coupon clipping required planning and dedication, hence was not that popular with consumers more interested in the here and now, but now has become a near-effortless activity. Using a smartphone at the point of purchase for getting the latest deal via GPS or barcode scanning is just, well, smart. Brands will continue to respond with a host of innovative new business models and pricing strategies as 2011 unfolds.

11. WORD OF MOUTH: Goes P2P

In 2011, word of mouth and recommendations will be even more dependent on P2P (Person2Person) dynamics. If Twinsumers (consumers with similar consumer patterns, likes and dislikes and who are hence valuable sources for recommendations on what to buy and experience) are all about improving ‘search curation’, Social-Lites are all about discovery, as consumers become curators; actively broadcasting, remixing, compiling, commenting, sharing and recommending content, products, purchases, experiences to both their friends and wider audiences. Consumers will talk more about brands in 2011 than ever before. In order for brands to seize the opportunity, creating engaging content that consumers will want to share is the number one requirement.

A recent article from PINK shed some interesting light on a new management trend: Boomer women managing Millennial employees.
It reported that Boomer women are often frustrated that some Millennial employees miss deadlines, take a two-hour lunch and wear flip-flops to work. But if you think Millennials are lackadaisical and unprofessional, you may be the one with the issue.

BioJobBlogger also recently covered the topic saying that we Boomers like to think of ourselves as agents of change. While this may have been true in the ‘60s and ‘70s, it is no longer the case—once a group becomes the so-called establishment there is no impetus or inducement to change the status quo. As many Boomers have learned, change can be difficult and nobody really likes it!
“Young workers grew up in a digital culture distinguished by near-immediate sharing of information. They tend to be collaborative and team-oriented, even when they aren’t technology experts. They grew up multitasking and don’t see the sharp delineations between “work” and “leisure” that previous generations did. Millennials often prize freedom, innovation and speed over security and stability. They seek flexibility in work schedules and work locations.
Most of all, young workers take access to technology for granted — as a way to get information, keep track of friends, schedule activities and do their work. And, of course, this access has now gone mobile, via wireless connections and smartphones.
Newer technology also creates a more networked and less hierarchical workplace. Work is distributed across more people in more places, with virtual teams communicating more or less instantly.”
Not a bad set of characteristics and skill sets. If leveraged correctly, it may actually improve workplace efficiency, productivity and possibly reduce costs!

“It may be an organizational cue,” says Andrea Hershatter, associate dean and director of the BBA program Goizueta Business School at Emory University. “Boomers are notorious for procrastinating, then rushing to meet a deadline that turns out to be arbitrary. Millennials observe the folly and react accordingly.” To make work relationships successful, Hershatter advises being clear about ‘absolutes’ vs. what’s optional when it comes to everything from dress code to deadlines.

Millennials work best with clear guidelines and frequent supervisor interaction; so, a webpage or document outlining job expectations should help. It should include appropriate lunch, arrival and departure hours, workplace dress, etc. The good news? Second-year Millennial employees can guide operational processes and deadlines for a first-year employee. Best bet? Cross mentoring – where Boomers and Millennials exchange knowledge. Boomers can teach Millennials appropriate workplace interaction, the need for depth and context. Millennials can bring Boomers up to speed on technology and resources that enable efficient, effective and timely decision-making.

As a woman Boomer I can attest that the challenges of managing Millennials are far outweighed by the benefits. They are smart, energetic, tech-savvy, open to every new experience, unhindered by past failures and always “on”. It makes a refreshing change and keeps us Boomers on our toes and on top of our game!

“If you want happiness for a lifetime – help the next generation.” Chinese Proverb

Natural Products Consulting’s Recent Financial Seminar Gave Entrepreneurs Valuable Information on Improving Their Odds!

Bob Burke, of Natural Products Consulting, and Michael Burgmaier, Investment Banker, at Silverwood Partners certainly packed the one-day seminar full of expert advice on how to navigate the choppy waters of raising capital.

Even the experts had different criteria about rate of return on investment, exit strategies and everything in between. One powerful take away from the day was “make sure your plan clearly identifies why a potential investor should be interested and exactly what you want the investment dollars for.” Sounds like really basic advice, but, according to Andy Whitman, from 2X Consumer Products Growth Partners is that many companies miss this seemingly obvious point.

Something I’m sure every business owner in the room did not want to hear was Michael Burgmaier giving the reality check on how many business plans made it through the process. He explained that venture capitalists have to practice strict time management, so, out of1,000 business plans that hit their desk they might read 100. They will talk to 50 of these companies, undertake light due diligence on 10, heavy due diligence on 5 and actually do the deal with maybe one or two. He pointed out that a potential investor looks for a reason to say no.

Some quick tips on how to improve your chances of venture capitalists to say yes are:

• Be prepared
- Know your numbers
- Velocity is paramount (SPP; turns/sku/week/store)
- Differentiation from competition
- Don’t underestimate the importance of strong gross margins

• Be market-based, realistic and fair with valuation

• Be capital efficient (extend dollars) and lean (no BMW leases or 5-star hotels)

Angel investor Bruce Nierenberg certainly shone a positive light when explaining what he looks for. His requirement of 13% IRR was certainly more palatable than the 7x investment return required by 2X Consumer Products Growth Partners.

Joe Whinney, Theo Chocolate and Tyler Ricks, Yumnuts (formally from Bear Naked) had fun and interesting tales of their past and present experiences with raising capital. All in all, a wealth of information for brands looking to take that leap and look for investment dollars was shared. There certainly are opportunities out there if you know where to look!

Contac Bob Burke for more information about his company and the Sales Seminar December 14-15, 2010:
www.NaturalConsulting.com and www.NPCInstitute.com

ADinfinitum presented its take on the “value” of social media.

If PR Isn’t Central to a Corporation’s Overall Branding Strategy, it Should Be!

PR can prepare a brand or product for its target market while also preparing the market for that new brand or product. There isn’t another discipline in all the cadre of communications services that can do that for a brand.

Because social media lives largely online, many marketers have believed that this is the type of work best undertaken by digital shops, but digital is just the way social media is distributed. The space is really all about listening and understanding what has impact with consumers. PR agencies are more fundamentally aligned with the social media structure and are tuned into what resonates with consumers. Digital shops are more about technology; PR agencies are all about communicating the message.

Companies and brands have never faced the kinds of reputation challenges that they do now. They have also never seen such an influx of word of mouth mentions spreading virally with social media tools. The combination of corporate reputation and brand marketing plays to the strengths of PR.

More Than 87% Will Increase Investment in the Next 12 Months

The Pivot Conference held on Aug 24, 2010 released findings from its survey of 137 brand marketers and ad agency professionals which point to a significant investment in social media marketing programs in the next 12 months. Of the marketers surveyed, about two-thirds (63%) have already implemented social media marketing programs and 87% plan to increase that investment in the next 12 months. Of the 37% of marketers that are not currently investing in social media, 62% plan to invest within one year.

Based on measurement, analysis and goals for their programs, 89% of those surveyed said their social media marketing programs have been successful, and of that percentage, 30% cited the programs were very successful
(e.g. generated more sales or improved customer relations). On the other hand, 11% of the marketers surveyed said they were unable to tell whether their programs were successful.
“While the technology and tools are there, social media is still uncharted territory for many marketers,” says Chris Shipley, executive producer of Pivot Conference. “The survey results indicate that they are planning to spend money but are still looking for guidance on how to spend their budgets, how to track ROI and the best ways to engage with key customers.”