Friday, December 19, 2008

Marketing Adaptation During a Recession

Companies need to adapt their marketing strategies during a recession to keep consumers' interest. Having an efficient and productive marketing plan is essential to all businesses, but during a recession the need becomes even more important if companies are planning on surviving. Before you adjust your marketing plan it is important to look at the type of product you are trying to market. Is the product a shopping, specialty or luxury good? As a marketer you also might need to change the focus of your product’s attributes in order to keep the consumer’s attention.

Marketers need to look at companies that are surviving successfully during an economic downturn. What ways have they adapted to keep their customers happy? One example is McDonalds. Instead of advertising their specialty burgers, they are promoting their value menu and are still getting people to “eat out”. Companies also need to consider offering free shipping or other discounts to attract consumers. Consumer good products such as grocery or health and beauty aids also need to adapt how they utilize sales promotions. Redemption of coupons is usually around 2 percent, so in recent years companies have moved away from issuing coupons. The latest numbers though show an increase in consumer interest. In a recent Brand week article, “72% of consumers are using more coupons than they did six months ago. Three-quarters of those respondents claimed the economy made them do it”. Smart companies are now offering online or traditional coupons with a shorter expiration date, which causes the consumer to make a purchase in the short term.

When corporate tightens marketing’s budget, the need to look elsewhere to advertise and promote your product or service becomes even more critical. Many companies such as Dunkin Donuts have embraced social media websites such as Twitter.com. Twitter.com is a social media website which allows individuals or even companies to follow or be followed by individuals. In short “Tweets” companies can update loyal customers about new promotions, new products and even ask for feedback. Most of the individuals on Twitter.com are innovators or the opinion leaders that companies long to reach anyway. The best is that the entire idea doesn’t cost Dunkin Donuts much except for the time of an employee to handle the media sites. Dunkin Donuts recent "Tweets" have consisted of free coffee giveaways near local colleges, and also reminding customers about D&D holiday gift ideas.

Is it possible to still sell a luxury item during a time when consumers are cutting back on their purchases? One way marketers can try to promote their more expensive products is to move away from focusing on status or image benefits and instead focus on quality or safety. An example would be to try and convince a consumer to pay more for a luxury vehicle by showing them that in the long run the repair bills will be less. Promote the idea of safety so that the consumer will feel that spending more brings them some type of cognitive reward and not just a feeling of status.

Understanding consumer demand and being able to rapidly adapt to changes is another important criteria. The American car manufacturers ignored the consumer trend of small and more fuel efficient cars. Missed opportunities are even more financially damaging during a recession. Marketers need to constantly reevaluate their marketing strategies and adapt wherever possible to the challenge of the financial landscape. By not keeping track of their consumer’s financial struggles will lead to a company facing a huge drop in demand and eventually obsolescence.

Tuesday, December 2, 2008

Do things happen for a reason?

I have been in a very philosophical mood lately. My entire life I have been a classic "Type A" personality. I find it very hard to just live in the moment and enjoy life. Constantly planning, organizing and learning are the epitome of my life's journey. I wish that I had the personality of my brother who can just deflect problems and live life with a much laid back attitude. There has been one philosophical approach that has helped me learn to take a bigger picture of life. The saying of "All things happen for a reason". I especially feel this occurs with friendships.

As the years pass and challenges are met, I am able to look back and clearly see a path that wasn't always obvious when I was careening down it. Why do bad things happen to good people? Why do certain people come into your life....while you lose touch with others? Sometimes a person will just take over my life in this blaze and it is clear that we have a friendship due to a specific reason. Other times I am lost as to why I am engaging in certain relationships.....especially if it feels very one-sided. Sometimes the picture becomes clearer many years later when certain friendships become my anchor in times of stress. The times that I have been faced with the hardest challenges, the most difficult decisions, and the most traumatic events have all lead me down a path that has resulted with life-altering changes. Fortunately most have worked out in my favor.....so does that mean that I made the "right" choices? I love the 1998 movie "Sliding Doors" because its story is based on a story of Gwyneth Paltrow's Helen. "Helen is fired from her job at a PR company, and when the sliding doors of the tube car close on her, we start to see what would have happened if she'd made the train, and if she hadn't." The movie shows not only that things happen for a reason but the impact of fate.

Although I was brought up in a strict Catholic household, I haven't embraced any type of organized religion in years. I find philosophical discussions much more enticing and engaging. During the craziness of this holiday season I like to take the time to reach out to each of my friends and let them know how I value their friendship and support.......because without them I would be even more lost. I would love to hear any of your thoughts about whether you believe things happen for a reason?

Wednesday, October 22, 2008

Santa's Elves are Coming (AKA Mattel, Hasbro, Nintendo...well you get the picture).

According to a recent study by the NPD Group, last year 100% of U.S. households that have children under age 6 bought at least one toy and spent $485. This doesn’t get Grandma and Aunt Susan off the hook though -- according to the report, 88% of households with no kids present under the age of 18 still purchased at least one toy last year and spent an average of $113.

I have such great childhood memories of playing with Matchbox cars, Lincoln Logs, puzzles and even Intellivision. All of these toys brought my brother and I great joy and we spent hours playing with them. Today's kids are an entirely different breed. The toys that they play with need to be more complicated and challenging.

I spent a few years working in marketing for Mattel Toys. I had trouble finding most of the toys different from what was already on the market. Many of the toy ideas came straight from a 40 year old designer's minds. This did not help gain the attention of a five year old boy. One of the most stressful factors about working in the toy industry is that an entire new product line had to be developed every six months. Easter and Christmas were the two seasons we had to plan for every year. The product life cycle of a toy was so quick.....and fad based on many occasions.

My frustration with the toy industry continued once I did have children. As a naive parent I would succumb to their requests and buy toys that they had requested based on catalog ads or television commercials. The problem would be that the toy would be played with for about one week and then my kids would quickly lose interest. I found a perfect solution to this dilemma about three years ago.

There is a company called MindWare (brainy toys for kids of all ages). Their website is www.mindware.com. The toys are amazing products that challenge, educate and just are plain fun. Every single toy I have purchased from this company has remained interesting to both of my children. Some of my favorites are: Snap Circuits 300, Science Grade microscopes, Gears, Gears, Gears and the Rush Hour Game. All of these toys have won numerous Awards from Dr. Toy of the Year to Oppenheim Toy Portfolio Award.

Now I don't want you to think that I am a scrooge....of course I still buy one or two of the traditional toys such as baby dolls for my daughter or Lego Kits / Wii games for my son.....but the majority of their toys come from catalogs such as Mindware. I do have a special point to make concerning video games. I have no problem with my children playing video games and think there is a lot of great skills and fun that can be had. When my father was operated on for prostate cancer, his surgeon performed the surgery with a DaVinci Robotic Arm. His surgeon ( who by the way looked to be 25 years of age) told me that most of the top surgeons who utilize the last robotic instruments developed their talents and excellent hand -eye coordination by playing video games :)

In the coming weeks, you will be smothered with numerous advertising and promotion toy campaigns. Try and be an educated consumer and not buy a pile of plastic that won't hold your child's interest. Check out Mindware.com instead!

Tuesday, October 21, 2008

When It Rains...It Pours

I have to begin this blog entry by warning you that it has nothing to do with marketing. This time of year brings such mixed emotions for me. I met and then married my husband during the Fall and both of my children were born during this time of year. But I also have had some brutal times during one Oct/Nov time period two years ago. My Mom started having concerns that this black cloud that had settled overhead would never move away.

First my father was diagnosed with an aggressive form of prostate cancer. His day of surgery his heart went into A-Fib and the surgery was cancelled. He needed to have extensive testing completed to make sure he would be fit for surgery.

In the meantime.....one of my dear friend's father died after a long battle with a botched surgery. I planned to attend his service the following day when I received a phone call from my father that his father (my PopPop) was found unresponsive at his home. I rushed to the hospital to find out that he was found dead by the medics but was brought back to life and then rushed to the hospital. I was able to get pertinent information from the doctors to relay back to my father concerning my PopPop's diagnosis: Vegetative state. By this time my father's heart condition was regulated and his planned surgery was delayed again so we could concentrate on my grandfather.

So...instead of having his cancer removed my father had to deal losing his father. I have to say that I was the emotional strong one when dealing with the complicated task of helping someone off the last remnants of life support. We had multiple neurosurgeons consult with us and confirm our worst fears. My PopPop would never be coming back. He was barely hanging on and his tests showed no brain activity. We then as a family had to follow his living will by removing all life support.

Somewhere during the three days of living at the hospital we all tried our best to be strong and deal with the emotional task at hand. We not only had to remove his feeding tube, breathing support but also bring in a medical tech to turn off his defibrillator/pacemaker. Even after observing all of his wishes it took another day for him to pass.

One week after my grandfather's funeral I was back in the hospital supporting my mom and then help care for my father after his prostate surgery. I am happy to report that for now my father has remained in remission regarding his prostate surgery.

As I grow older and I have more life to reflect upon I notice that times of crisis seem to rear their ugly head during extremely positive moments. I almost fear success or happiness because I have always been rewarded with something so ugly.. so sad that it is hard to recover from. For example: When my son was born my husband and I joyfully celebrated this beautiful little boy. By the time my son was six months old, my husband's father had died unexpectedly and his mother would be rushed into emergency bypass surgery after being brought back from the dead twice. Flash forward four years. My daughter is born and within one month my son is misdiagnosed with a fatal kidney disease and my mom has a grand Mal seizure caused by dehydration brought on by a severe flu. She is left in paralyzed state for a week and doctors are unsure if she will ever be the same again.

I wish that I could enjoy the good in life more and not worry so much about what is around the corner. The one thing that keeps me going is to know that the result of these traumatic events don't always end in negatives. My son was able to pull out of his health problem and my mom recovered completely from her illness. The lesson I keep learning from the visits from the dark cloud is that there is hope and the possibility of a positive outcome.... and I guess that is a good lesson to be learning!

Wednesday, September 3, 2008

Am I Old?

In one of the last conversations I had with my Grandfather he kept harping on how his hands looked old. He complained that his hands reminded him of a 90 year old man. "But PopPop...you are 88 years old...that is why your hands look the way they do". He replied, "Oh..that's right. I keep forgetting that I am old." My grandfather always felt decades younger than his biological age. In most consumer behavior studies it has shown that most individuals view themselves at least ten years younger than their real age. More and more products position themselves to fight off or repair the aging process. The words "age-defying" or "age- correction" are thrown around constantly on consumer products. My question is what products make you feel younger and what is the age that people are considered old?

Personally I am happy to be at my current age (36) and thankful to not have to be the young parent again. I no longer need a minivan, strollers, diaper bags, and have finally entered a part of my life where I can be a bit selfish. I can purchase products based on my likes and not always have to consider the children. Back to the minivan.....no one really desires a minivan. The convenience, storage and cup holders are like a siren song to the newly minted parent. Fortunately I can now purchase a car again to reflect my internal age....a car that is fun, powerful and has a awesome sound system. I have actually felt more like a twenty-something in the last two years than ever before. Perhaps it is because I can actually get sleep (no more sleep deprivation due to babies crying). It is though I have been able to recover some of my youth again in music (no more Wiggles), clothing (No more pregnancy clothes), and cars (the dreaded minivan is long gone).

Age has been a huge issue in our home this year due to the fact my husband turned forty. I sometimes have problems believing that I am married to a forty year old.....is forty old? My husband thinks so. He had a mini mid life crisis. Fortunately it did not result in a corvette, mistress or wild spending sprees. It did make him stop and examine his life. And for that I think aging is priceless. With age comes experience, learning and perspective. A company can't sell that to you...nor can you erase that with some product.

As I push ahead and the wrinkles become more plentiful I wonder how much I will resort to purchasing products to help me fight the aging process. It is hard to age in a society where a 45 year old woman (Demi Moore) looks like one of my freshman students. The best medicine that I have for feeling youthful again is to go do anything with my kids. I get to relive all the fun times with them. Plus it gives me an excuse to go on a roller coaster, jump a wave, ride bikes, and act like a Pirate. If that can't make you feel young...than nothing else can!

Sunday, August 31, 2008

What makes a Marketing Professor Happy!

After leaving my twelve years of corporate marketing working for companies such as Dial, Nielsen, Pillsbury and Mattel Toys I knew that I needed to find a job to combine my love of marketing and teaching. Low and behold....teaching marketing in a college setting. I am now going on my eighth year of teaching and have to say that I love it as it brings me so much satisfaction. With school starting next week I have put together a short list for students and former students on HOW TO MAKE ME HAPPY:
1) Show up to Class....Not complicated...not hard. It is so much more fun having actually people to interact with than empty seats.
2) Participate...Don't just raise your hand and give a one word answer. Please offer your insight. Believe it or not but I like to learn from you too. My favorite and best students usually are part of a give and take relationship. This means that I have learned just as much from them as they have from me.
3) Don't Cheat. You would think in this day and age students would get the seriousness of this action. No. Every semester I have to deal with students copying homework.....trying to cheat with a cell phone. I have two kids.....I do have eyes in the back of my head and I will catch you.
4) Give me good feedback. I also look for students to communciate with me about how the class is running. Thoughtful, intelligent feedback makes me better and since you are paying for the class....will only make the product you purchased - better.
4) Once you leave my classroom....keep in touch. I love it when former students email me about a marketing promotion they saw recently that offended them or one that impressed them. Please also remember to network. With those years of corporate experience comes many avenues that I can help you navigate. If approached correctly I would be more than happy to help you down the road to your dream job.
I also have developed some wonderful friendships and mentorships with some of my ex-students. A few I count as my closest friends. I was able to help one former student land his dream job right out of school with a salary of 80K. So remember treat us right and we may be able to make you rich....if not educate you.

Why I Worry about Little Girls.....

The marketing of clothing for children has increased tremendously over the last twenty years. Clothing has always been a way to rebel and express yourself. I remember girls at thirteen dressing like Madonna.....now though....it is the five year old girls that would want to dress like her. I have also been blessed with seeing how a little boy versus a little girl have to grow up in this new world.

My first born son was a very intelligent, sweet and emotional baby and toddler. He made friends easily and even to this day is not shy about entering a room and talking with complete strangers. I heard early rumblings in my son's preschool class from the teachers concerning the girl clothing issues occurring in class. Eventually I was pulled aside by the preschool teacher and told that I needed to witness something that was occurring daily to my son. As the three year olds were coming into class and taking their seats....certain little girls would go up to my son and massage their asses and ask him if their butt looked cute in their pants. Now my three year old son barely looked up from his blocks and shrugged his shoulders. Since she did not get the response she wanted she moved onto to the next little boy. I got my first lesson in the dawn of little girldom.....they grow up way faster and are more aggressive.

I later found out that due to the marketing of sexy clothes AKA Brittney Spears tramp clothes....preschool girls were caring more about their ass than their ABCs. I overhead a conversation a few weeks later waiting to pick my son up from school. One of the Moms was fretting because she couldn't find the thong her daughter wanted for her FOURTH birthday. It was that day that I swore that I wouldn't survive raising a daughter in this day and age. The overt sexiness of little girl clothes drives me crazy. I am a huge fan of Healthtex because the company dresses girls like little girls.

Fast forward six months later and low and behold I get pregnant ...with a GIRL. I promise myself to keep her little and innocent as long as I can....even if that means hiding her in the basement until she is eighteen. My path of innocence lasts until my four year old little girl turns out to my the tallest little girl on the percentage charts. In fact she looks like a seven year old and clothes now become an issue. I have to hunt to find appropriate clothing that isn't too short or too tight. Retailers make it difficult to do so and find ebay my best friend.

I worry more about raising my daughter in this day and age versus my son. Already the four and five year old girls have separated themselves into cliques...it is the Mean Girls of the preschool set. My son's friends meanwhile will hang with anyone who has a soccer ball, bike, a Wii or likes Star Wars.

I try to keep my daughter's life filled with play, sports and education. She still hits me up with questions like "Mom...when will my big breasts come in.....or How long will it take for me to finally grow a penis?" I don't mind answering her questions as long as she doesn't ask me for a thong for her fifth birthday.

Wednesday, May 21, 2008

The Marketing of Everything...to Kids

Lately I have just overwhelmed by how much marketing is directed at kids. I am not speaking of twixters, tweens or Gen Y. The marketing I am talking about is directed at eight years of age and under. As a marketing professor I am constantly asking my kids (Age 4 and 8): How did you hear about this? or Where did you see this advertised?

My eight year old is of course influenced tremendously by his peers. I wouldn't call it peer pressure. Instead I call it "The First Syndrome". Kids this age want to be the first to have the latest game, video, toy or be the first to see the hot movie. It is exhausting keeping up with their interests and demands. I try and think back to what kind of consumer I was at his age. Garbage pail kids, Hello Kitty and stickers were big. Now he has Bionicles, Pokemon and NeoShifters. These toys come out with new product lines every three months and the marketing of the product is so far reaching. The books, website, video, interactive games, fast food promotions are the norm for every toy launch or movie premiere.

My four year old will recognize products in stores and calmly reiterate the marketing message that she heard on the TV. Her favorite product is the infomercial of Mighty Putty. Anytime I can not solve a problem around the house....she is right there to explain how I should buy Mighty Putty and solve my problem.

One of the last books I read on consumer behavior in kids said that most five year olds can name 1,000 brands. Sometimes I wish that I could escape with my kids to a tropical island and ban all media :)