Augmented Reality: Rise of the mobile or hype?

By Johnny Schroepfer

Last summer I came across an iPhone 3GS application called Layar, the first mobile augmented reality application. While the actual development of the app was still in beta testing, the concept was impressive and the potential possibilities it offered brands was interesting.

Augmented reality (AR) uses a mobile phone’s camera feed to merge your physical real-world environment with virtual computer generated imagery.

With emerging technology like AR, brands have a whole new area of customer contact points to take advantage of. Imagine walking down the street and launching Layar on your Smartphone to locate the nearest Target, Starbucks or even a historical landmark.

With the use of technology like AR, consumers have the ability to easily seek-out physical locations from their mobile device while brands have the opportunity to deliver location-based messages and incentives.

This year we will begin to see a significant increase in app funding and development within the mobile industry. Augmented reality will play a major part in the rise of mobile technology. But, will these technologies be embraced, or rejected, by major brands and consumers?

So, is this the true year of the mobile?

***

Johnny Schroepfer is the strategy & content director at Vitamin IMC and a student in the Masters in Integrated Marketing Communications program at Northwestern University's Medill School. He is a Chicago Bulls fanatic and is looking forward to another exciting Bulls playoff run. He can be reached at johnnyschroepfer@u.northwestern.edu

Ketchup in their veins

By Pooja Ranganathan

IMC ’01 alum Becca Martin was on campus at Medill last week to give a presentation about the marketing communications functions at McDonald’s. As the senior communications manager, Becca handles projects with McDonald’s’ internal communications initiative. This is a massive enterprise as the company has nearly 1.3 million employees worldwide.

McDonald’s work culture is built on the credos of being relationship-focused, entrepreneurial, and having an attitude they call “ketchup in our veins.” This phrase connotes the high level of employee involvement with the McDonald’s brand – they “eat, sleep, and breathe McDonald’s.”

The most significant approach to achieve this company culture is through open channels of communication – McDonald’s “Plan to Win” global strategy is shared with all of its employees so they are aligned on the company’s strategic direction. Other initiatives include the Access MCD website, an online resource for employees that addresses business-related topics in a conversational way. It features a “Have you ever been asked?” section that gives employees tips on how to field frequently asked questions about McDonald’s, like “Are Chicken McNuggets made with real meat?”

McDonald’s closes its feedback loop with surveys administered after running major communication initiatives. With this, they measure the efficacy of the program with respect to achievement of intended effects.

At IMC, we are all about measurement. Eric Ries’ post on “vanity metrics” recommends that all metrics be actionable, accessible, and auditable. In IMC we try to tie our metrics back to sales and profits. McDonald’s uses surveys to measure awareness, attitude, and other similar parameters within their communications functions. How actionable are these?

Taking things a step further – if these are the metrics for internal communication, how does McDonald’s measure the effect of communication targeted at the consumer? As a player in the retail segment, there cannot be a shortage of data available to the company. There is fascinating potential for McDonald’s to analyze customer behavior and use insights derived in communication strategies.

Does McDonald's communication demonstrate a deep understanding of their customers? How could they do better?

***

Pooja Ranganathan is a blogger at Vitamin IMC and a student in the Masters in Integrated Marketing Communications program at Northwestern University's Medill School. She is now wondering what information McDonald's will get about her if she uses the promotional gift card she was given at this talk. She can be reached at PoojaRanganathan2010@u.northwestern.edu.

The science of marketing: What makes IMC different

By Daniel Hindin

What is IMC and how is it different than traditional marketing? We Medill IMCers get this question a lot.

Part of what sets our graduate program apart is the diversity of knowledge we develop. By the time I graduate this December, I expect to have taken courses in five subject areas: Branding & Advertising Strategy, Media Management, Direct & Interactive Marketing, Marketing Analytics and Corporate Communications & Public Relations.

Though marketing is both an art and a science, I find that most people only think of the art, the right-brained side, the creative message. Marketing agencies have long had the reputation as a place where you hole up a bunch of creatives until they come up with the magic message that will get your product flying off the shelf.

It turns out there’s a lot more to it than that. Sure branding and corporate communications are important tools for any well-rounded marketer. That’s where the message is ultimately formed. But making decisions within those areas should be far more than the gut instinct that determines the fate of too many marketing budgets.

The science, the left-brained part of marketing, is what should drive any smart marketer’s decisions. This is where hard data comes into play. Who’s spending? When? On what? Do the profits from each customer exceed their costs? Yes? Well, these are the people to target with your messages. No? Then they’re just costing you money.

Once you know who your ideal customer is, you can take the data a step further and figure out what types of messages spur them to action and in what form those messages can be delivered most effectively. Through analytic tools such as multiple regression, cluster analysis and factor analysis, you can figure out what is likely to work and why.

Now you’re on your way to understanding how to deploy your creative team. Marketing will always be part art. But when you start to use data to form the basis of your art, that’s where science comes in. That’s how you get results. And that’s how you speak the language of the CFO and other budget decision-makers.

***

Daniel Hindin is Managing Director of Vitamin IMC and a student in the Masters in Integrated Marketing Communication program at Northwestern University’s Medill School. He enjoys using as many different parts of his brain as possible. You can reach him at DanielHindin2010@u.northwestern.edu.

CVS Kiosks get Intuitive: How behavioral data can tailor coupons to individuals

By Brad Mild

We can all think back to a time when our parents would sit down with a Sunday paper, pull out the coupon insert and begin to snip out one promotion at a time. Then, they would place the clips of paper into a little envelope and set it aside for the next trip to the store. The whole process took at least an hour to complete only to be foiled by forgetting the envelope at home. Thanks to CVS the days of tireless coupon clipping are at an end.

CVS stores began to roll out interactive coupon kiosks in 2007. These intuitive red boxes scan a consumer’s ExtraCare shopping card and pop out a money-saving offer based on prior purchases.

Both CVS and the consumer benefit from this relationship. Kiosks entice consumers to share their shopping behaviors in return for personally tailored coupons, and their use increases revenue for CVS. It’s a win-win.

For customers, the red box meets two needs. It saves them money and time. Tailored deals save customers money on items they want to buy without having to look for coupons elsewhere.

This process can also be fun. The shopper does not know what promotion they will receive. All they know is that it will be relevant to their needs. The uncertainty behind each scan encourages customers to scan their card more often. This phenomenon is called variable ratio reinforcement. Can you say Vegas?

So what does CVS get from the deal? Data! They collect mounds of data on purchasing patterns. This info can tell marketers about trends in seasonality, time of day, recency of purchase, and the dollars spent. All of which can help in strategic and managerial planning.

However, that is only the icing on the cake. The major gain is the ability to automate decisions and test promotions instantaneously. A computer automatically decides on a promotion and offers it when the customer is in the mood to buy. If a consumer doesn’t use the coupon that day, the computer knows that the promotion was not relevant and it adjusts. Or, if they buy a product on a regular basis and then stop, the program will notice that trigger event and alert the operator.

The question now is whether CVS has the means to analyze this data. If they do are on the right path to understanding their consumer and meeting their needs. If instead they are letting the data rot they are missing out on a solid competitive advantage .

So the moral of the story is that win-win situations exist. With a little data marketers can tailor offers to consumers and increase returns.

***

Brad Mild is the Visual Communications Manager at Vitamin IMC and a student in the Masters in Integrated Marketing Communications program at Northwestern University's Medill School. He daydreams of wakeboarding in the early morning when the water is glass. He can be reached at mild@u.northwestern.edu

Data Mining vs. Science: How OkCupid translates data into dates

By Anne Mahoney

If you’ve ever marketed yourself online in the romance department, you likely have painstakingly analyzed every part of your profile. Is the photo attractive? Do I say the right things about myself? How should I word my first email to another enticing product in the dating aisle?

An article in the New York Times looks into how OkCupid, an online dating site, shares user data with its registered love-seekers to provide advice on how to develop and market their personal brands. To find the data, it analyzed 7,000 user profiles, noting photos, number of responses and content of those responses. One useful finding was that being “fascinating” or “cool” is more important than the initial physical attraction factor. For instance, OkCupid says a woman using a photo portraying her playing an instrument or on an exotic beach receives more responses than focusing on physical assets.

If true, this certainly is valuable information for site-users. The study has, however, strictly focused on pure numbers through data mining. To gain additional insights, I sought out the opinion of the foremost expert I know in statistical data analytics: Medill IMC professor Edward Malthouse. Professor Malthouse brought up the scientific question still at large for OkCupid: Why do these tactics work? He thinks marketing can help to explain.

“Some physical beauty is a point of parity,” he said. “Differentiators will make you stand out, at least among a segment that values such activities. So, marketing theory predicts that those who are differentiated will be more successful.”

That is the scientific way to view the findings of OkCupid’s study. It hypothesized that differentiators would increase or decrease response rates, which the study confirmed. Yet there are other variables that have not been taken into account. Malthouse points out an example as the experiences of the customer, or date-seeker browsing through profiles. These experiences are not directly focused on the “product,” or person trying to find a date. If each individual created a first-impression experience for the type of person they are trying to attract – the “targeted consumer” – Malthouse theorizes it would have an even stronger effect.

Boiling down an intimate subject with numerous and oftentimes-mysterious factors, such as dating, into pure numbers surely has its challenges. Do you think there’s truth to the OkCupid study? How can marketers benefit from activating these types of analytical tactics?

***

Anne Mahoney is the Social Media Director at Vitamin IMC and a student in the Masters in Integrated Marketing Communications program at Northwestern University's Medill School. She can be reached at annemahoney2010@u.northwestern.edu

The future of shopping

By Alejandra Leon

Retail therapy is a common getaway after a hectic day at work. And while many consumers love the experience of shopping, time is limited. There are only so many minutes to go to a store, find items you like and perhaps wait for a dressing room to then try endless clothing options on. After a while, it can cause more stress than relief.

Wouldn’t it be great to get the benefits of shopping without the hassle? Cisco Systems has been working on a solution for this problem through the new Cisco Integrated Services Router Generation 2 (ISR G2).

The technology delivers a new borderless workspace experience through service virtualization and video-ready capabilities. This means that consumers will now be able to interact with video and audio in real time and have digital payment options.

What does this mean for the shopping world? In the near future, consumers won’t have to spend time in the fitting rooms struggling with different sizes and colors. Even paying for items will take only a scan of a credit card and a digital signature.

What does this mean for marketing?

As shown in the video, a more custom made, targeted approach to reaching consumers is well underway. The implications and possibilities of this technology will help pave the way for customer centric marketing approaches that will help break through the advertising clutter by offering relevant, timely information for the consumer.

Already, smart phone applications such as MasterCard's “priceless picks” are interacting with customers by using their locations to provide customized information on relevant places such as restaurants and shops in the area that others have preferred.

These are only a few examples of how technology is impacting the interaction between businesses and consumers. With innovative technology, marketing implications become limitless.

***

Alejandra Leon is a blogger at Vitamin IMC and a student in the Masters in Integrated Marketing Communications program at Northwestern University's Medill School. She is afraid Cisco's technology will turn her into a true shopoholic. She can be reached at alejandraleon2010@u.northwestern.edu

Toyota: too late or restoring the faith?

By Brandi Heinz

No marketing communications professional looks forward to the day they must navigate a company crisis. Toyota’s recent floor mat and sticky pedal safety recalls are the most recent examples of balancing damage control with open communications. The safety recalls and Toyota’s subsequent responses open the potential for major damage to their strong brand built on safe, reliable, high-quality vehicles.

Meeting the challenge head-on, Toyota launched a comprehensive PR strategy to address the situation openly and honestly. Their website, www.toyota.com/recall, includes updates on what’s being done to address the problems and has videos with more information for consumers—such as what to do if they experience trouble braking.

Adding to the open dialogue, Jim Lentz, President & CEO of Toyota Motor Sales U.S.A., apologizes to customers in a video on the site, closing by saying: “Once again, I apologize for the situation and I hope you’ll give us the chance to earn back your trust.”

The newly released television commercial echoes his sincere words, telling a story of commitment and painting a picture that highlights 172,000 Toyota employees’ dedication.

But will this campaign be enough to calm consumers after months of bad news? It took nearly 10 days for Toyota to launch this response strategy, and consumer perception has dropped to a new low. If they hope to uphold their brand values, Toyota must avoid additional crises and continue to create open and honest dialogue to fuel positive brand momentum.

What do you think? Can Toyota restore the faith in their company?

***

Brandi Heinz is a student advisor and blogger at Vitamin IMC and a student in the Masters in Integrated Marketing Communications at Northwestern University's Medill School. She has owned two Toyota Camrys. She can be reached at brandi.heniz@gmail.com.

Vitamin IMC turns one year old!

Today marks the first birthday of Vitamin IMC. What started as a two-person endeavor to bring Medill IMC program topics to the blogosphere is now a 20+ operation run entirely by enthusiastic students. In honor of our one-year mark, we’d like to share a bit of our history with you.

The Vitamin IMC Story

By Founders Stacy Cohen & Marina Molenda, IMC 2009

It all began with a question: how can current IMC students educate marketers, potential students and companies about IMC? We wanted to offer a “fresh squeezed” perspective on marketing topics while educating the business world on the true definition of IMC. We needed a platform to show that IMC is the new and best approach to marketing communications by providing insights and analyzing cases where IMC should have been implemented. We required a format that allows for an interactive relationship, uses a channel that directly reached our diverse audience and is easily accessible. The answer to the question was the “Vitamin IMC” blog.

In December of 2008 we began developing the identity, mission and overall editorial and promotional strategy for Vitamin IMC. After posting some juicy content, the blog was launched February 5, 2009 to IMC students and faculty. This was followed by promotion and outreach to influential marketing bloggers. The content is written primarily by members of the blog team, with guest contributions by current IMC students and faculty. Written through an IMC lens, the posts discuss marketing hot topics and trends as well as insights from class.

In just one year, Vitamin IMC acquired several hundred (over 700) followers on Twitter (@VitaminIMC) from IMCers to social media marketers and companies. We are flattered to have received positive feedback from top bloggers such as David Berkowitz, Greg Verdino and Barbara Lippert.

We’re excited at the success we’ve seen in just one year and look forward to expanding our readership and influence. We hope the blog continues to grow along with the program and reflect the changing state of marketing. We want Vitamin IMC to establish a place in the marketing world as an interactive resource for both IMC students and innovative marketers. Thanks for visiting the blog, please leave comments and let us know what you think. We look forward to hearing from you!

Medill IMC

About our Graduate Program

The study of Integrated Marketing Communications was pioneered at Northwestern University’s Medill School, and some of the greatest minds in the industry are among our professors. We learn to create marketing communications that engage and connect brands and consumers with stakeholders. We experience the challenges of real-world marketing environments, and have the opportunity to work on projects that carry real social impact. To learn more about the program, check out the Medill IMC Web site at www.medill.northwestern.edu/imc.

Sandwich app brings Wonder back to lunch

By Andrea Benda

With obesity rates at all-time high and a lingering recession, there’s a consumer need to watch waistlines and wallets.

Wonder Bread is here to help with its interactive application, the Sandwich Wonder-izer. The application allows consumers to get creative with their brown-bag lunches while watching calories.

Consumers can craft their own perfect virtual sandwich—starting with one of 12 different Wonder breads—and see the nutritional value of their creation. If you’re shocked that your double-decker salami and pepperoni with extra mayonnaise and provolone packs a frightening 1,000+ calories, you can swap ingredients for any number of healthier choices. There’s everything from fat-free ranch and salsa to artichokes and cantaloupe.

The Wonder-izer has wide appeal: Both the frugal office worker who’s tired of the same turkey sandwich and the health-conscious mom will be impressed. Kids can have fun building their fantasy lunch—maybe peanut butter and banana, with marshmallow cream, candy corn and potato chips (Yes, all options).

With many choices and intriguing graphics, the application is entertaining. But more importantly, it provides a valuable service to consumers.

Counting calories is trickier than it sounds. Try keeping track of sodium, cholesterol, calcium and vitamins, too. In just a couple clicks, this tool can show consumers the nutritional give-and-take that occurs with adding or subtracting ingredients.

Wonder has strategically branded the application by keeping their name in the forefront without distracting from the tool’s use. A prominently displayed "share sandwich" feature also encourages users to show off their culinary creativity by comparing their lunches on Facebook and Twitter.

By using this fun teaching tool, the Wonder Bread brand is likely top-of-mind when a consumer visits the grocery store to buy ingredients for their perfect sandwich.

***

Andrea Benda is a blogger at Vitamin IMC and a student in the Masters in Integrated Marketing Communications Program at Northwestern University’s Medill School. She has never had a slice of Wonder Bread in her life. Andrea can be reached at andreabendea2011@u.northwestern.edu