McKinsey’s consumer decision journey

One of the key IMC tenets is data-driven formulation of strong consumer insights to produce effective marketing strategy. McKinsey’s John Copeland drove the point home at Medill last week, with his statement: “Understanding the why is important, because it’s the only way that you can get out in front of the consumer. Otherwise you would be chasing behavior, or chasing demography.”

Copeland, a senior expert in marketing at McKinsey & Company’s Marketing & Sales practice, spoke at an event for the Professional Speaker Series at Medill. He showcased McKinsey’s Consumer Decision Journey (CDJ), a reorientation of the traditional marketing funnel that breaks down the consumer buying decision process. While the traditional funnel assumes a methodic reduction in the number of brands in the consumer’s consideration set at each stage, the CDJ proposes a more dynamic version of the process.

With the deluge of information available, consumers are too overwhelmed to start off with an assessment of all available options. Often, their initial consideration set of brands consists of as few as 3-4 brands, which are three times more likely to be purchased eventually. This number may increase or decrease as consumers seek more information during the purchasing process, as well as during the post-purchase evaluation phase. Consequently, although it is important to gain entry into the initial consideration set, marketers still have opportunities to impact consumers across the journey. Decoding the CDJ and understanding the “why” reveals these opportunities.

Once this is done, it is critical to achieve integration across touch points. Only a third of the touch points for consumers involve company-driven marketing; the rest is comprised of consumer-driven activities such as Internet reviews, recommendations, past experiences, and in-store interactions. The relative importance of touch points varies through the journey – and aligning marketing with the decision process through a strong integrated strategy is now more important than ever.

The original McKinsey article can be found here.

--Pooja Ranganathan

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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 does not get football, and is amazed she managed to discover a sport more boring than cricket. She can be reached at PoojaRanganathan2010@u.northwestern.edu

Mobilizing to donate after the Haiti quake

Text “Haiti” to 90999 to Donate $10 to The Red Cross. This message proliferated the internet and television within hours of the Jan. 12 catastrophic earthquake in Haiti.

Since then The Red Cross’ text-to-donate campaign collected a staggering $21 million, dwarfing the $4 million total of all charitable ‘text’ drives in 2009. Most notable was the first 48 hours – people gave The Red Cross more money faster than in the wake of Hurricane Katrina, the Asian tsunami, or any disaster to date.

The operation is backed by Mobile Accord’s mGive Foundation, the first company to offer mobile donation services to non-profit organizations back in 2005. Donors’ pledges are added to their cell phone billing statements.

From a cause marketing standpoint, $10 increments paired with mobile accessibility is a winning combination. Simply cutting out the need for Americans to give an intermediary their credit card information enabled a mass reaction.

The text-to-donate message was not seamless. False word spread on Twitter that AT&T was not participating in the campaign as customers slammed the carrier for preventing them from helping victims. But AT&T spokesman Steven Schwadron quickly clarified that was a rumor: it was on board with The Red Cross and messaging rates would not apply to donation texts. AT&T customers contributed half of the first $9 million collected via text message. However, The Wall Street Journal did its part to warn the public to do research before texting away money, citing up to 90 days’ lag time before the phone company pays the charity.

Natural disasters bring together great minds and able bodies to help those affected. The difference with today’s tragedy in Haiti is newfound strength in mobile technology.

Charitable reaction to the Haiti quake glimpsed the symbiotic IMC process. Americans immediately saw footage of earthquake victims on television, online and in print news, and were driven to help however they could.

Will this tragedy instill confidence on a greater level for mobile charity? For mobile commerce?

We can’t deny its power. Companies are truly mobilizing for the future; take Apple’s recent purchase of mobile ad company Quattro Wireless. The technology exists and millions just adopted it.

Today we move forward, to repair and to improve.

--Susan Monahan

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Susan Monahan is a Blogger at Vitamin IMC and a graduate student in the Masters in Integrated Marketing Communications program at Northwestern University's Medill School. She was deeply moved by the global community's quick response to the victims of the earthquake in Haiti. Susan can be reached at susanmonahan2010@u.northwestern.edu.

Polaroid's romance with Lady Gaga

There’s no shortage of celebrities partnering with corporations, but a new venture between Lady Gaga and Polaroid is one that few would have guessed. On January 6, Polaroid appointed the pop star to become the company’s creative director. Not only will she be the face of the brand but also develop a line of “imaging products” scheduled for release late this year.

Polaroid, which was acquired by a private equity firm in 2008 after filing Chapter 11 bankruptcy protection, has had brand image problems for years. Most perceptions of the Polaroid brand fall somewhere between dated and irrelevant. Its products have missed the mark in recent years, fueling continued financial problems.

Undoubtedly Polaroid is hoping that some of Lady Gaga’s trendy cache will rub off on their new product line. Although details of the multi-year agreement are still unknown, Polaroid does intend to leverage Lady Gaga in future marketing campaigns, which includes having a presence at her upcoming tours.

It’s clear Polaroid is betting that Lady Gaga’s next few albums continue to generate the buzz her first two have and that her creative talents are translatable to developing innovative electronics.

The possibility for the partnership to be successful is not out of the question, since Lady Gaga appears to have legitimate creative talent that has already been used to launch a line of headphones. But the bigger issue here is how Polaroid will reconcile its brand heritage and core competencies (instant imaging) with the current fast-paced technological environment. If Polaroid can’t solve this problem, no celebrity – not even Lady Gaga - will be able to dig them out of their brand ditch.

--Mike Witham

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Mike Witham 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 a pet duck, Phil, who does tricks. She can be reached at michaelwitham2010@u.northwestern.edu.

Pepsi’s Super Bold Cause Marketing Move

It’s tough to imagine the Super Bowl without the Pepsi ads. Full of pop culture, sex appeal and charm, the spendy spots are being benched this year in favor of a new marketing plan. The soda giant is instead re-funneling $20 million of its advertising dollars to the “Pepsi Refresh Project,” awarding grant money to community projects selected by its consumers. The Wall Street Journal offers a comprehensive piece on the decision, but here’s my perspective as an IMC student, armchair advertising critic and Pepsi drinker.

In its current stage – before consumer engagement, attitudes and profit margins are calculated – Pepsi’s strategy is downright applaudable. It likely wouldn’t have had the same effect just two years ago. Back then, we Americans basked in frivolity. Paying $2.7 million for a 30 second first quarter belly laugh was pure bragging rights for many a company. Sure, Pepsi also was likely backed into spending binges by direct pressure from Coca-Cola. To remove themselves from competition on the biggest advertising platform in the world must have more than a few Pepsi executives biting their nails right now. But my prediction is this: it will be worth it, and here’s why:

Word of Mouth. People will talk about the Pepsi Refresh Project because it’s unconventional, risky and doing some good. If it’s possible to change attitudes, this program has more potential than a short-lived advertisement. Remember Mister Splashy Pants?

Social Media. There’s potential for Pepsi to have a bonanza here. Cause marketing works when people are given the power of participatory influence. Viral engagement will lead to an “everybody wins” scenario, including consumers and the communities being served. Oh, and more brand equity isn’t bad, either.

Legacy. If this concept is ultimately profitable, it will not only be a success story, but one exemplifying a true change in consumer behavior. Although copycats will follow, I think Pepsi will be preserved as a heartfelt pioneer because of the level of risk taken on with this program.

So Pepsi, good luck to you. The bubbly Super Bowl ads will be missed, but the Refresh Project is definitely going to be fun to watch.

--Anne Mahoney

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Anne Mahoney is the Social Media Director of Vitamin IMC and a student in the Masters in Integrated Marketing Communications program at Northwestern University’s Medill School. She is hoping to watch the Vikings take the cake at the Super Bowl this year. She can be reached at AnneMahoney2010@u.northwestern.edu.

Authenticity, Relationships and the Economy: Why Little is Getting Bigger

One day last quarter in his Marketing Management class, Medill IMC Professor Frank Mulhern noted that today is the age of the mega-business. Whether it’s through acquisition like many of the media empires or through internal growth like Walmart, Big is where it’s at. Economies of scale. Multi-layered specialization. Reach. To be a market leader, you have to basically take over the market. Become a category killer.

While there’s truth in all that, Professor Mulhern could not deny there’s also a distinct rebellion against the notion that bigger is better. In contrast to the mass industrialization of last century, many people now prefer to own items and pursue experiences that are authentic and as close to one-of-a-kind as possible.

In the world of marketing, this presents a distinct opportunity for the Little Guy. Amid this current Great Recession, many smart, talented businesspeople have turned away from corporate behemoths toward independent entrepreneurial ventures. Whether triggered by a quest for personal meaning or the result of downsizing, these people have joined in a movement. And the movement has legs.

And if the economy and individualism serve as those legs, social media will gladly be the eyes, ears and mouth. No longer is the Little Guy outgunned by access to mass media. The playing field has been leveled.

But don’t be distracted by the tools. Twitter, Facebook and YouTube are leading the Democratization of Media, but they’re just instruments. They serve no purpose if used incorrectly.

The true value of social media lies in personal relationships. It’s almost a return to the days of door-to-door salesmen, but the difference is your business of one, five or 20 people can interact with individual households in Chicago, Barstow and Shanghai – all at the same time.

It’s that personalization that allows small businesses to find their niches and offer consumers what they want when they want it. These entrepreneurs literally *know* their audience. People will no longer tolerate being just another faceless customer. They want to connect.

Consumers prefer building relationships with other people to building relationships with corporations. That’s the power of social media. That’s the power of the Little Guy.

--Daniel Hindin

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Daniel Hindin is the Managing Director of Vitamin IMC and a student in the Masters in Integrated Marketing Communications program at Northwestern University’s Medill School. He loves it when people comment on his blog postings. He can also be reached at DanielHindin2010@u.northwestern.edu.

USPS Holiday Site Helps Consumers With Seasonal Shipping Stress

It's holiday season and consumers everywhere are stressing out about all the cards they have to send out and shipping gifts on time. Understanding the stress of the holiday season, the U.S. Postal Service created a fun, festive, and useful site to help consumers with their holiday mailing needs. This one-stop-shop has a lot of helpful features including tutorials for printing labels and scheduling pickup, custom card creator, locator for finding post offices with extended hours, and holiday countdowns for Hanukkah, Christmas, and Kwanza.

The site is effective because it provides value to consumers by making their lives easier and keeps them engaged with the Web site and the brand. The experience of using the site is great way to keep consumers coming back to USPS for their shipping needs instead of using other providers.

All-in-all it's a good site and next year's site could be even better by adding:

• Sharing: Make the site more shareable and increase word of mouth by adding functionality for sharing on Twitter, Facebook, Delicious, etc.
• Augmented Reality: USPS has a cool and innovative Virtual Box Simulator. It is a perfect fit for the holiday site and should be a featured tool.
• Branded App: An app that incorporates site features such as scheduling a delivery, countdown calendars, and post office locator as well as new features such as reminders and a to-do list would make for a very relevant and useful app.

--Marina Molenda

Babies, Puppies and Kittens! Oh My!

People can’t get enough of the economy. Aside from the usual subjects such as the chasm that is the Nation’s growing debt and the unemployment rate, a less obvious socio-cultural affect of the recession is taking place. I’ll give you a hint: it has to do with Pokémon, the Mini-Cooper and animals dressed in outfits.

In recent years, there has been a proliferation of user-generated videos of animals and babies, not to mention miniature versions of popular foods such as the slider and cupcake. In November’s issue of Vanity Fair, Jim Windolf claims that the economic downturn is fueling our fascination with all things small, cute and cuddly.

Sure, cute stuff has always been present and appealing. However, it wasn’t until recently, Windolf argues, that the phenomenon took off on a mass scale of present-day proportions. It’s as if Americans have reverted back to familiar, child-like comforts during a decade that brought us 9/11 and the war in Iraq.

This trend has seeped into advertising, media and product design. Think of the small and rounded body of the SmartCar, the Snuggie, animated movies like “Up” and mascots like the Geico Gecko (a creature that has become more anthropomorphic as the years progress).

However, a small but growing cultural backlash is occurring. The cuteness craze is being mocked and satirized – signs that the “age of cuteness” could be losing traction and, possibly, coming to a close.

The implication for marketing and advertising is this: as professionals, we need to be cognizant of these larger societal trends as they bleed into popular culture and daily life. Doing so will aid in the understanding of consumer motivations and, subsequently, the development of more meaningful communications.

­--Mike Witham

Cable Networks Vying for Shelf Space

Search For the Amazon Headshrinkers? When Crocs Ate Dinosaurs?

The National Geographic Channel really worked it to get your attention with the Expedition Week line-up, which aired November 15-21, its answer to Discovery Channel’s annual hit, Shark Week. Now calling itself simply Nat Geo, the network underwent a major makeover. Last month, it debuted a new call-to-action tagline: “live curious.”

Targeting 25-to-54-year-olds, Nat Geo has been able to grow ratings for the past six years. With countless more tune-in choices to compete with every day, how does the network do it?

The answer can be found in the snack food aisle. Steve Schiffman, the National Geographic Channel’s General Manager and EVP, recently spoke at the Cable Mavericks Lecture Series at Northwestern. He drew parallels between consumer packaged goods marketing and entertainment marketing.

For instance, Nat Geo benefited from the cross-promotion of two seasoned labels – its #1 show The Dog Whisperer and PETCO, the retailer of show host Cesar Millan’s products.

In true brand-follower form, Nat Geo imitates Discovery, hence “reactivating” its image to keep up. But Nat Geo must be careful not to discard its historic pedigree, its true differentiator.

Today’s cable distribution model, much like a supermarket, allows a multitude of networks the chance to draw in consumers. The downside is both carry the threat of the private label. What’s the Safeway Select of cable? Look to the potential merger of Comcast and NBC Universal for a whole new type of station with a more efficient subscription-to-advertising revenue model.

What can Nat Geo learn from CPGs in this case to maintain its market share? Better, more nourishing ingredients. The Discovery Channel has infused its brand with its show hosts, characters who viewers can’t get enough of.

How will Nat Geo combat this threat?

--Susan Monahan

Vicks' Tweak Marketing Move

When P&G advertises their brands, they leverage as much brand equity as possible. Take for example the new NyQuil commercials. There are two back to back spots. The first one shows a large man clearly knocked out in a deep sleep. The tagline reads: NyQuil: The nightime, sniffling, sneezing, coughing, aching, fever, Best Sleep You Ever Got With A Cold...Medicine. The next spot is a woman sleeping with an occasional light snore. The tagline reads: NyQuil Less Drowsy. Because everyone sleeps differently. This new product extension is clearly a result of a strong consumer insight. And it just might be the way to combat the rise of the private label.

So it's surprising to see this Twitter promotion on the Vicks Web site. There is no connection to the brand here and it's not integrated into any of their other marketing efforts. What aspects of the brand are reinforced by this promotion? A free trip to cheer on Team USA is a great prize, but how does that connect to any of the other marketing for the Vicks brand? Are consumers supposed to associate Vicks as something truly American? The Vicks brand means "you're taken care of." P&G is missing an opportunity with this promotion to forge a deeper relationship between their consumers and the brand.
The Twitter execution could also be a lot stronger. The promotion (that's hidden on the website) has you sign up with your email address and then encourages you to tweet a generic message every day for a chance to win. It was a mistake to use a generic message that again has no connection with the brand. Instead, Vicks could encourage consumers to tweet reasons why they deserve to win, or their favorite Vicks product, or how Vicks makes them feel, or pictures of them using Vicks products. Any of these would be a win for both Vicks and the consumer. It would encourage brand affinity but also provide Vicks with valuable information to use for future marketing efforts. The takeaway here: brands should always seize opportunities to develop stronger relationships with consumers and reinforce the brand they know and love.

--Stacy Cohen

Brown Delivers Through Social Media But Forgets to Ship Directions

Over the years, UPS transformed itself from a shipping service provider to a business solutions provider that offers shipping — adding value for customers. The transformation began with the “What can brown do for you?” commercials followed by the famous Whiteboard campaign. UPS continues to deliver value in its online engagement strategy—something many companies forget to do.

UPS’s strategy is to provide content that is relevant and useful to its B2B customers. At the center is a branded Popurls site. Here UPS is serving as a content curator for business news and tips. UPS also created a Populr Brown Edition YouTube channel. The channel features a series of short informational videos on business topics such as social networking and communication. Industry notables from Mashable, TechDirt, Small Business Trends, and VentureBeat provide the video lessons. Additionally, consumers can receive news stories by following @popurlsbrown on Twitter.

So, what’s the problem? Well, have you watched one of the videos, heard about the brown Popurl site, or followed @popurlsbrown? UPS is an international brand, yet the YouTube channel has just over 600 views and @popurlsbrown has 69 followers. While UPS is running banner ads on sites like VentureBeat, neither UPS.com nor the Whiteboard microsite have links to the popurl site, YouTube channel, or Twitter account. Additionally, the YouTube channel doesn’t link to the Twitter account or UPS.com. UPS is delivering value for its B2B customers by providing useful information in an accessible and easily digestible format. However, the full potential will not be realized unless UPS offers directions to and from these sites and does a better job integrating these elements into its overall marketing efforts.

-- Marina Molenda