Vision Graphics Inc. Connect Magazine March/April 2012 by Tyson Polzkill

Vision Graphics Inc. Engaging Marketing Minds

Vol 2, Issue 2, March/April 2012

The Disillusionment of Social Media Just where is the deluge of social media taking us, and can it remain relevant? INSIDE Power of the Niche Itâ&#x20AC;&#x2122;s All About Timing How to Be Fascinating

POWERFUL TOGE THER

visiongraphics-inc.com

publisher ’s letter

“Swish”

Just the mention of the word can bring back memories of watching your favorite basketball team play in the championship game; down by one point with seconds remaining, your team shoots, you hold your breath with anticipation as you watch the basketball fly through the air waiting to hear that sound – the sound of swish as the ball slides gracefully through the net – you’re on your feet, the game is over, your team has won – the sound of joy. With the start of March Madness how can we talk about the ‘swish’ without mentioning basketball? So what exactly is a ‘swish’ and what significance does it have for Vision Graphics Inc.? It is an internal word that our marketing department uses as in, “don’t forget to add the swish, or can you make the blue standout a little more in the swish”, for the new image that represents the merging of our newly acquired company Eagle:xm, a Denver based marketing communications solutions provider, with Vision Graphics. With the addition of Eagle:xm services combined with Vision Graphics products – it’s our sound of joy as the ball slides through the net. We are extremely proud of our client support over the last 60 years and want you to know that when you see our logos along with our ‘swish’ you will know that the blue and orange are not just colors we put on a piece of paper. They stand for our continued commitment to our valued clients – it is our commitment to continue to offer you sophisticated services and technologies designed to help you grow your business through media solutions across multiple channels using strategic research, channel selection, mailing, print, fulfillment and database management. Unlike the late nineties during the dotcom craze, when the theory was that e-commerce would replace the need for people and buildings, we realized that what we’ve known all along - real businesses actually need real people in them, fits more into today’s business

It is the people and the community we serve that matter most.

philosophy than ever before. We know that with our new acquisition we didn’t just acquire brick and mortar we added talented people. Talented people that, along with our new services, are now able to expand our clients’ reach, broaden horizons and build relationships. We want you to know that when you see our ‘swish’ you know that you are doing business with a company that values its relationships, its people and its clients. In this month’s issue of Connect, you’ll find a couple of fascinating articles that remind us of those crazy dotcom days. Our cover article, “The Disillusionment of Social Media,” helps paint a picture of social media that seems eerily reminiscent of those boom years a decade ago. But while social networks are a part of what we all use today, the vehicle is not what business is built upon. It is the people and the community we serve that matter most. In turn, our second article, “The Power of the Niche,” shows that true success is rooted in the specificity of a market niche. In other words, if you aren’t standing for something, you aren’t standing. And, as always, we stand for you. Enjoy this issue. Warmest regards,

Mark Steputis Publisher

Publisher

Mark Steputis mark.steputis@visiongraphics-inc.com

Contents

Managing Editor

03 Publisher’s Letter

10 The Disillusionment of Social Media

04 Marketing Insights

14 It’s All About the Timing

Michele McCreath michele.mccreath@visiongraphics-inc.com

Art Direction

“Swish”

06 Power of the Niche

Building your brand means narrowing your focus and dominating your market space.

Just where is the deluge of social media taking us, and can it remain relevant?

When it comes to marketing, understanding when to send your message is as important as the message itself.

15 Book Recommendation Fascinate

connect – Vision Graphics Inc. • March/April 2012

marketing insights

what App? What app? That’s he said … How much do you really love your apps? Think about it for a minute. While faster data networks and fancier smartphones make you want lots of apps, like anything else, the appeal may be losing its luster. According to a recent survey by the Pew Research Center’s Internet & American Life Project, only 68 percent of smartphone owners open five or fewer apps at least once a week, while 17 percent don’t open any at all. Interestingly, about 42 percent of all U.S. adults have phones with apps, Pew reports. Of the top 50 apps, one in five is new every month.

“ Particularly over the last year, we’ve seen social media grow from just being the latest shiny new toy to being a really powerful tool that is integral to gathering news and telling stories.” – Ryan Osborn, Senior Director of Digital Media for NBC, on why social media may be “must-tweet” TV in 2012

They ‘like’ it Advertising on social media sites continues to be something to rally around. As news of a potential public offering centers around Facebook, a recent financial disclosure showed that the social media site posted $3.2 billion in advertising revenue in 2011, with the number of ads on the site growing by 42 percent over 2010. And, according to EMarketer, LinkedIn ad revenue hit $154.6 million last year, up 95 percent from the year before, while Twitter ad sales grew $139.5 million, a whopping 233 percent increase over 2010.

Give me my tablet So, which do you prefer – a tablet or a laptop? The percentage of businesses that plan to increase spending on social media sites, according to a joint study by Booz Allen and social platform developer Buddy Media. The study also showed that 38 percent of today’s CEOs believe that social media is a high priority.

March/April 2012 • connect – Vision Graphics Inc.

The general consensus might surprise you. According to a recent study by market research company Poll Position, nearly half (46 percent) of U.S. consumers believe electronic tablets eventually will replace laptop computers. According to the poll, in the 45-to-64 age group, 52 percent agree tablets will be the preferred electronic device of choice; 30 percent say they would not; and 18 percent do not have an opinion. In the 30-to-44 age group, 53 percent say tablets would replace laptops; 37 percent say tablets would not; and 10 percent have no opinion. Interestingly, in the 18-to-29 age group, only 37 percent say tablets will replace laptops; 49 percent say they will not; and 14 percent offer no opinion. The report was based on a telephone poll of 1,155 registered voters in the United States in January.

marketing insights

places social media is heading in 2012

Where, oh where, is the world of social media heading? As the medium continues to make its presence felt in every aspect of our daily lives, you can find any number of recent studies reinforcing how it is the greatest networking tool, since... well, you get the picture. David Armano, EVP, global innovation and integration for Edelman Digital, the interactive arm of PR firm Edelman, recently outlined six areas where social media may be heading in 2012 in the Harvard Business Review (blogs.hbr.org). In no particular order, here’s what he sees. Convergence Emergence Coca-Cola and Domino’s Pizza both have experimented with the concept of “trans-media,” i.e., integrating social media with “real life.” Coke created an amusement park where participants could “swipe” their RFID-equipped wristbands at kiosks, which posted to their Facebook account what they were doing and where. And, during a recent marketing campaign, Domino’s posted unfiltered feedback on a Times Square billboard that integrated real opinions from real people culled from a digital source and displayed in the real world. The Cult of Influence Similar to how Google defined a system that rewards those who produce findable content, there’s a race to develop a system to reward those who wield the most social influence. In 2012, the attempt to convert digital influence into business value will become more about the tools and techniques professionals use to “score” digital influence and harness, scale and measure the results of it.

Did you know...

Gamification Nation Game-like qualities continue to emerge within a number of social apps on browsers or mobile devices. While gamification has been used in consumer settings, look for it in other areas, from HR, to government, healthcare and even business management. Social Television For many, television already is a social act, from talking to the person next to you, texting, tweeting or calling a friend about what you’re watching. But television is about to become a social experience in a broader sense. Shows like the “X Factor” allow voting via Twitter and highlight other social promotions, encouraging viewers to tap social networks while they watch. And the network Get Clue enables participants to “check-in” to their favorite shows and collect stickers to tell the world what programs they love.

The Micro Economy Sites like Kickstarter and Quirky may point to a new future reality, where economic value is directly negotiated and exchanged between individuals over institutions. Kickstarter gives anyone with a project the opportunity to get the initiative funded by interested parties or people who receive something in return, while Quirky lets the best product ideas rise to the top, and then helps them get produced and sold while the “inventor” takes a cut. Social Sharing Ideas, opinions and media, and status updates all make social media a powerful and often disruptive force. What’s coming next in social sharing is more closely aligned with e-commerce or web transactions. For example, sharing a vacation you just booked, or recommending a product or service from any site to a social network is where sharing is going next. We may not know what to share until we see the option to do it.

According to a study by Adobe Digital Marketing Insights, tablet users spend 50 percent more time than smartphone users on e-commerce sites, and 20 percent more than conventional laptop or desktop users.

The percentage of U.S. consumers who own at least one smartphone, according to a recent report by the Yankee Group. The report – The Runaway Smartphone Landscape – also shows that 58 percent of consumers plan to buy a smartphone as their next mobile device.

Tweet it up By the end of this year, eMarketer estimates there will be nearly 21 million Twitter users in the United States – a sizeable minority of whom will use the service to follow their favorite brands. According to its recent survey, 50 percent of respondents said that, after following a company’s tweets, they were more likely to purchase from the brand. An even stronger majority said they would be more likely to recommend their brand to others. Aside from promotions and discounts (think information), 61 percent of respondents said they follow brands so that they can be the “first to know” what’s hot, while 36 percent follow for exclusive content. In addition, 28 percent of survey respondents said they retweeted a comment from their favorite brand.

She said it … “ We’re trying to get people out of the mindset that social media is just for pushing your messages out. It is about communicating, but it’s also about listening.” –L indsay Tiles, Director of Corporate Public Relations at Charles Schwab, on how social media works for branding and customer acquisition

connect – Vision Graphics Inc. • March/April 2012

Power of the

niche Building your brand means narrowing your focus and dominating your market space. Are you doing what it takes to succeed? By Lorrie Bryan

March/April 2012 â&#x20AC;˘ connect â&#x20AC;&#x201C; Vision Graphics Inc.

Jim Henson, Miles Davis, Ansel Adams, and Joan Baez, among others. The Think Different marketing slogan not only shaped consumer perception, but also represented the company’s internal activities. Although Apple dropped the slogan in 2002, the Think Different mindset remains firmly embedded in the company’s culture. Thinking differently is, in fact, at the root of competitive marketing strategies on a basic level. Laura Ries, a nationally acclaimed branding guru, author and president of Atlanta-based Ries & Ries, says that one key to successful “They were one of the first computer “Here’s to the crazy niche marketing is being different – being the companies that basically said, ‘We are first in a category. “It would be folly to try to going to come up with a proposition and ones. The rebels. The compete head-on with market leaders, unless, a value statement that is appealing to a troublemakers. The of course, you had an innovation that could be rather small group of people, and we are ones who see things perceived as a new category,” Ries says. “When going to focus on that group,’” says Koert you can create the niche market, consumers Van Ittersum, associate professor of mardifferently. While perceive you to be the market leader, and you keting at the Georgia Institute of Techsome may see them can often maintain that leadership for decades.” nology. “And that’s what they did – they as the crazy ones, we Take Red Bull, which launched an enerstarted with a small, distinct market.” gy drink brand in the U.S. market that rapidly In 1997, Apple launched a campaign see genius. Because became a market leader. Red Bull’s success that then-CEO Steve Jobs said reflected the people who are incited the launch of more than 1,000 energy the Apple philosophy and reinforced its crazy enough to think drink products in the U.S. market, of which brand. Called “Think Different,” it featured nearly 1,000 were unsuccessful. a concept called the “Crazy Ones.” The they can change “Most of those brands made the mistake of commercials included black-and-white the world are the trying to emulate Red Bull by introducing their footage of iconic counterculture personaliones who do.” energy drinks in small, 8-ounce cans, when ties like Bob Dylan and John Lennon. Also they should have launched something differincluded was a series of print ads that fo– Apple Inc., from the “Think Different” ad campaign ent,” Ries says. “Monster was the first energy cused more on brand image than specific drink in a 16-ounce can, which became the products. The ads featured a portrait of a historic figure and a small Apple logo with the words Think Different No. 2 brand of energy drinks. Are 16-ounce cans a niche market? in one corner. No reference was made to the company’s products. They certainly were when Monster was launched. But now Red The familiar faces on display included notable innovators such as Bull and many other brands also are available in 16-ounce cans.”

n case you missed it, Apple crushed it. Posting record holiday quarter earnings that exceeded all expectations in all categories, it became the most valuable company on the planet in January as its stock shares surged. Although Apple clearly is dominating today’s mainstream market, the Macintosh maker started by creating a counter-culture niche with a near evangelical devotion to all things Apple.

connect – Vision Graphics Inc. • March/April 2012

Power of the Niche

“ Today’s niche is often tomorrow’s mainstream product.

Who can tell in advance?”

– Laura Ries, President, brand strategist firm Ries & Ries

From Niche to Mainstream

Defining Niche Marketing

want to market it as a high-end health food. The strategy was to keep the costs down and ask grocers to place it near the other yogurt brands. Today, many grocers are giving Chobani a premium location in the yogurt section.

Branding experts say it’s always better to narrow your focus and try to dominate a segment of a market, rather than compete with established brands in the overall market. “Today’s niche is often tomorrow’s mainstream product,” “Niche marketing is concentrating all market2. Give your product a new and different name – Ries says. “Who can tell in advance?” ing efforts on a small, but specific and well Chobani is the Greek word for “shepherd” and Certainly not Hamdi Ulukaya, perhaps defined, segment of the population. Niches is symbolic for a gift that comes from the heart. one of the most successful entrepreneurs to do not ‘exist,’ but are ‘created’ by identifyemerge during the most recent Great Recesing needs, wants and requirements that are 3. Launch your brand with PR, not adversion. Ever heard of Chobani (pronounced chobeing addressed poorly or not at all by other tising – According to Nicki Briggs, Chobani’s BAHN-nee)? Most had never even heard of firms, and developing and delivering goods or communications director, Chobani was disGreek yogurt a few years ago. But that didn’t services to satisfy them. As a strategy, niche tributed to the media and anyone else who stop Ulukaya from buying a discounted Kraft marketing is aimed at being a big fish in a would take it. “We felt like our product was so Foods plant in New York and creating strained small pond, instead of being a small fish in a good that if people tried it they would like it, yogurt the way it traditionally had been made big pond. Also called micromarketing.” tell other people about it, and essentially crefor centuries in his native country of Turkey – ate a ground swell,” Briggs recalls. “We also with all natural ingredients. – from BusinessDictionary.com launched a mobile tour campaign and traveled “Greek yogurt was a niche market that across the country in the ‘Chomobile’ handing Ulukaya pioneered with Chobani, and now out yogurt samples at festivals.” the Greek yogurt market is booming,” Ries says. “Chobani [now] has surpassed both Dannon and Yoplait to beDid their strategy work? Chobani ended up receiving a tremendous come the leading yogurt brand in the country. Who knew how big it amount of media coverage in national print (Fortune, Better Homes would become when Chobani launched its brand?” and Gardens, Parents magazines) and on national television (the “Today” and “Good Morning America” shows), prior to launching its first Keys to Successful Niche Marketing According to Ries, Chobani’s successful marketing strategy is rooted in national ad campaign in 2011. In just four years, Chobani has become three key strategies, including being the first in a new category, giving your the No. 1 yogurt company in the country with 2011 sales exceeding product a new and different name, and launching your brand with PR, $700 million. The brand also enjoys a tremendous following of enthusiastic fans not advertising. 1. Be the first in a new category – A decades-old Greek company, called Chobaniacs, whom have showed their love to the tune of more than Fage, was the first to import strained yogurt to the United States. 425,500 “Likes” on the social media site Facebook. In fact, the FaceStill, most people in the States had never heard of Greek yogurt book “Likes” are growing exponentially, with as many as 5,000 to 10,000 before Chobani started making it here in 2007, promoting it as a showing up daily. “We don’t see social media as a marketing tool; we see tasty, naturally healthy food. During its initial launch, Chobani didn’t it as an outlet for authentic dialogue with our customers,” Briggs says.

March/April 2012 • connect – Vision Graphics Inc.

9 “We’re very responsive to what people are saying. This is where most of our ideas for new flavors come from.”

think rugged bikers, leather jackets, tattoos, bandanas – not wine coolers.”

What Next?

For brands such as Chobani, many opportunities exist for growth on the horizon. For example, the company recently launched Champions, a kidfriendly yogurt that stays true to its “Nothing but Good” slogan and mission. Ries says the key is to ask yourself what your brand stands for in the minds of your customers. And, if you can’t answer the question with one or two simple words, you have a branding problem. Successful examples include BMW, Volvo and Mercedes-Benz. Ask their customers what the brands stand for, and you will most likely hear the following: BMW – driving; Volvo – safety; and Mercedes-Benz – prestige. So what does Chobani stand for? “Goodness,” Biggs says. “Our product is good for you

Van Ittersum, who teaches graduate-level courses in brand management at Georgia Tech, warns that brands with a growth curve like Chobani must be careful not to dilute their brands. “This is where a lot of great companies make a marketing mistake,” he says. “Buoyed by success, they reach to grow their markets at the expense of diluting their brands. By leveraging what you’ve built, you run the risk of destroying it.” His advice: “Don’t destroy your brand for short-term gains.” For example, PBR (Pabst Blue Ribbon), which, historically, branded itself as a “bluecollar” beer, today is enjoying more popularity among “hipsters” and “suits,” because of its

Nothing but Good

“ By leveraging what you’ve built, you run the risk of destroying it. Don’t destroy your brand for short-term gains.” – Koert Van Ittersum, Associate Professor of Marketing, Georgia Institute of Technology

perceived under-dog status, populist appeal and affordability. Van Ittersum says it would be a mistake for PBR to overtly target its marketing efforts to these new demographic groups. “Never alienate your central target market,” he says. A notable and amusing brand extension flop that Van Ittersum often shares with students is the Harley Davidson wine cooler. “Harley-Davidson took their brand extension to a whole other level when they introduced a line of wine coolers in the mid-1980s,” he says. “A lot of refined wine drinkers own Harleys, but when we think of Harley Davidson, we

and it tastes good. We feel that, as long as we stay true to who we are – quality, good-tasting products that are priced fairly and honestly positioned, our growth is limitless.” Building a profitable $700 million company in four years is no small feat, and Greek yogurt can’t be considered a small niche. Says Ries: “You don’t create a small niche market. You create a niche market, but you don’t know how large it will become. Every category started as a small niche market – soda, ketchup, facial tissue – and now Greek yogurt.” Now that’s the power of niche marketing.

connect – Vision Graphics Inc. • March/April 2012

The Disillusionment he t s i e r e h w t l s a i Ju c o s f o e g u l e , s d u g n i k a t a i d t i me n a c and ? t n a v e l re n i a m re rino lle el J. Pa a h ic By M

March/April 2012 â&#x20AC;˘ connect â&#x20AC;&#x201C; Vision Graphics Inc.

of Social Media

he news hit hard. Joe Paterno had died. The legendary

we have ever seen. You want more proof? Check out the past couple of revolutions that social media helped start (Tunisia and 85-year-old Penn State coach, who had spent the last months Libya, anyone?). After the smoke clears, the pundits continue to debate just how of his life mired in a sea of controversy amid a child sex much power social media has today and whether it has reached the tipping point. abuse scandal by a former coach, was pronounced dead at Scott Klososky doesn’t think so. He believes that online strategies will continue to 3 p.m. EST, with family and friends by his bedside. revolutionize everything we do. Klososky, the former CEO of three successful startup companies and a thought leader who specializes in examining how technolThe problem was, Joe Paterno hadn’t died. Onward State, an oncampus student news site, tweeted that Paterno had died of compli- ogy is changing the world, has worked as a speaker and consultant with cations from lung cancer he had been diagnosed with last November, companies such as Ebay, Cisco, Newell Rubbermaid, Lockheed Martin, Volvo, The Hartford and Marriott. Today, he is founder and chairman of shortly after the university fired him. The news of Paterno’s death, while not unexpected, still carried an Alkami Technology, which has developed a second-generation online immense amount of sadness. That the erroneous announcement was banking platform that provides online account management solutions to made via a tweet, not fact-checked and picked up by the worldwide me- the financial services industry. Klososky says social media detractors see disillusionment falling into dia was the mother of all reporting mistakes. Following several rebuttal tweets by Paterno’s family, the inevitable happened – all of it. Paterno three areas: It’s still new; some people don’t find it easy to use; and too died the next day; news organizations that ran with the tweet apologized many expect it be a cure for everything they need. “When you hear people and vowed to undertake more diligent reporting; and the managing edi- use the term ‘disillusionment’ in regard to social media, I think the main thing that gets them is that it’s still new,” Klososky says. “Changes, espetor at the student website resigned in disgrace. It is not the first time a well-known figure was tweeted dead too cially on the technology side, come in waves. Back in the early-’80s, when we first got into PCs, there was a lot of disillusionment in the soon. Last January, several media outlets falsely reported IT world, because they didn’t want people to have that U.S. Rep. Gabrielle Giffords had died after becomputing power. Next came the Internet. The ing shot during a public event in Arizona. disillusionment was that people would just The age of social media – from its use computers to watch porn and shop.” moment-of-impact reporting, to “liking” Today, disillusionment converanything your friends post, and everyMarketers believe social media is an effective tool and use sations start with organizations thing else in between – continues it themselves, but their commitment to investing in social run by 50-or 60-year-olds who to create a culture in which being marketing lags, according to a study from the Software & don’t get what social media is all first to report the news or making Information Industry Association. According to its “Marketing about. “They don’t want to learn yourself accessible 24/7 is the new in Today’s Economy” study, 90 percent of marketers use social something new,” Klososky says. cool. But truth be told, because somedia, and three-quarters believe it has a positive impact on “When you have 10-year-olds uscial media allows for information to their business. But 55 percent said their marketing teams spend ing an iPhone better than adults, spread worldwide in a heartbeat, fewer than 10 hours a week on social media, with 35 percent well, then yes, you’re going to get a trends such as breaking news and spending between one and five hours a week. The online bit disillusioned. There also are those increasing the presence of your brand survey was conducted during the fourth quarter who want whatever it is that’s new to be can carry both risk and reward. of 2011, garnering 106 respondents. the panacea; they want it to fix everything The “he tweeted/she tweeted” world for them. If you have an unemployed person that now engulfs us is unlike anything

Did you know?

connect – Vision Graphics Inc. • March/April 2012

The Disillusionment of Social Media

Ginnett doesn’t believe there’s disillusionusing social media to find a job, and he can’t, ment with social media as much as there he blames the tool. If your child is being are more options. This is what some bullied on a social media site, you say may refer to as the beauty and curse of the tool is horrible.” Some 66 percent of adults online are on Facebook, LinkedIn and social media. “If something doesn’t Enter Good versus Evil – the other social media sites, according to a recent report by Pew work for somebody, they’ll move ultimate debate. Klososky says Internet. Two-thirds say they participate mainly to stay in touch with on to something else,” he says. that 50 percent believe social current friends and family or to connect with past friends. Other “Therefore, the adoption or abanmedia today is used for good and findings show that 14 percent of users say that connecting around donment of something comes at a 50 percent believe it is used for a shared hobby or interest is a major reason they use social media, quicker rate. We [Ricoh] measure it evil. “I always take the theory of while 9 percent say that making new friends is equally important. by the number of conversations we disillusionment with a grain of salt Only 5 percent and 3 percent of social media users, respectively, are having, the quickness of response when it comes to technology. It’s a say that reading comments by public figures and finding and changing sentiments. At the end of tool. People aren’t using it as much as potential romantic partners is important, the day, it all comes down to how you are they could. It invades privacy. It causes the report said. communicating with your customers and what you to ignore somebody a few inches you are sharing.” away from you, while talking to somebody a hundred miles away. There are a lot of issues you can affix to this disillusionment theory. The pen- Boon or burst? dulum will swing back and forth, but you can’t say we are ever going Jenny Schmitt, founder of the communications firm, Cloudspark, is a freback to the way things were. Social media is always going be with us.” quent speaker on the Atlanta marketing and PR circuits, dissecting approaches on social media strategies and business branding concepts. Ask if she sees any striking similarities between those once-powerful dotcom Putting a new name on the game Scott Ginnett doesn’t even call it social media anymore. Ginnett, the days of the late-1990s and today, she admits that predicting social medirector of digital collaboration and social media for Ricoh Americas dia’s future in that context is a risky proposition. During the late-1990s, dotcoms were the media and investor Corp., calls it “social technologies.” For Ginnett, social media is a broad strategy that encompasses collaboration and outsourcing across darlings. Bust or no bust, Internet-based companies such as Amazon, an entire company’s structure. Social technologies, he says, are apps, Overstock, EBay, etc., still have incredible staying power. Looking at today’s landscape, social media companies such as Facebook (which Facebook, Twitter, etc. “Looking forward, that’s my take on what social media is today,” Gin- is ramping up for an IPO) and Twitter appear to be today’s media and nett says. “Any smart organization that assumes social media technologies investor darlings. “You’re seeing rapid infusions of cash through venture capitalists, and the strategies behind them are not impacting their business is like saying the Model T wasn’t going to replace the horse. The rate at which as they try to get in early with the next big thing,” Schmitt says. “The the change is going is staggering. Any organizations that are waiting to media and investor worlds still will get the companies wrong. We’re embrace, or at least try to understand, what type of information they can still going to see failures, consolidations and leaders emerge. But we’re also still going to have social media. Predicting the future of social get and consume through these channels is putting themselves at risk.” So, is there disillusionment? Ginnett says you have to be smart. The media can be risky.” Schmitt says that technology and social media channels will change majority of consumers and businesses that consume information today are doing so via electronic mediums. “Today’s successful marketers are the (think the migration from laptops, to tablets, and smartphones). “Few ones who are finding a deeper level of content,” he says. “For example, could have predicted the significant change the iPhone would have smart publications have changed the type of information they provide. brought about five years ago,” she says. “Certainly, there is technology They are using a combination of resources and giving their readers a choice being developed that will change how we interact with online worlds and as to how they want to receive information. There are people who want to meld those worlds into our real, off-line experiences.” That there are periods of disillusionment in anything is normal. Julie sit down and read a publication, but the content must be relevant.” Ricoh’s social media strategy is centered on two things: helping its Bee, founder and president of BeeSmart Social Media, a social media customers build their businesses and giving them an outlet to commu- marketing agency in Charlotte, N.C., says social media already is in a nicate. If the information isn’t relevant to helping grow their businesses, period of disillusionment. “The magic of social media has worn off somewhat,” Bee says. “I Ricoh will not provide it. All of Ricoh’s platforms and strategies are dethink the social networks that make it through this period will be the signed to communicate with its customers. “When somebody sends us a tweet or posts an item on Facebook, ones who please the entities that pay them – businesses, non-profits they are getting a response within 30 minutes – generally,” Ginnett says. and other organizations that buy social network advertisements. It’s “We actively pursue communication. That’s why people are coming to about making their end-users happy.” Bee also believes that social media will go through various periods of our site. They want information – and they want it now. If they don’t get a response within that first 90 minutes on a social media platform, they disillusionment (Friendster and MySpace anyone). At one time, MySpace generated more traffic than Google. Enter Facebook, bye, bye MySpace. are not coming back.”

Did you know?

March/April 2012 • connect – Vision Graphics Inc.

The Ne xt Big Thing

“ I always take the theory of disillusionment with a grain of salt when it comes to technology. It’s a tool. People aren’t using it as much as they could.”

So, wh at’s nex t for so cial

– Scott Klososky, Founder & Chairman, Alkami Technology

media? Jenny S chmitt, founde nicatio r of Atla ns “Social media didn’t go away during those times; it improved with new innovations,” Bee nta-bas continu firm, Cloudsp ed ar e to att says. “Unless legislation is passed that greatly ties the hands of social networks, I think ract, in k, says social commuever yd ay exp media fl u e n c social media is here to stay.” e erience w on wh s. She , and validate ill at we s h our ares he may e new fro xpect r thoug ntier. on soc hts Meet me on the web … ial me d ia ’s Loo You can’t have a conversation about social media today and not include Facebook, k at bevy of me, look a which has become the unequivocal leader. With more than 800 million people t me I n – “Next B ew social cha connected through the social media site, if it were a country, it would be the world’s nnels c While we’ll se ig Thin ompeti ea g,” con options ng sumers a third-largest, after India and China. will fati to be the lifestyle nd choose wh gu . Nobo a Along with its social connection capabilities, Facebook continues to expand its dy wan t best fits the e on the words ts 25 ir time for 25 reach by becoming a powerful branding tool – with no apparent cost of entry – for sit and seemin either s gly iden es with 25 ee the passtical off bankru today’s brands. Take Starbucks, which uses the site to help brand its iconic name. too” so er ptcy or cia the me ings. We’ll social c l channels, re To date, Starbucks has more than 26 million Facebook fans. And while you would rging o sulting hannels f “mein fewe needs o w think more brands would develop strategic and forward-thinking campaigns to r largef people ith niche cha scale nn with sp maximize this reach, it hasn’t happened. ecific in els meeting th terests. Look e And therein lies a key disillusionment topic: The challenge, as experts see it, at me , look increas e at me is for brands to evolve from simply being a company with a product to becoming II – W people in “visual-bas e’l ed” soc migrate a valuable source for interesting, entertaining and useful content. ial netw l see an from te ally en x hanced orking, ts to m Amy Bruckman, associate professor for the School of Interactive Computing as or co mobile devices nnections be e visual or vis at the Georgia Institute of Technology in Atlanta, believes this is an area where . This tter su u today’s pported is a m m ajo b your ta arketers. Ima social media will continue to evolve. “What social media will become will be rget au gine be r opportunity y dience in fo they fre g r a b quite different from what we see today,” she says. “The total volume of usage le to re bas ely offe define r throug ed on the visu and the number of people we stay in contact with, I believe, will change. Right a h socia l chann l elements Right els. now, it’s just too much, and it’s unsustainable. I believe over time, people will here, right help m now – ar get smarter about what ties they wish to maintain and what ties they don’t. We real-tim keters create Soc e outre hyper-p ial media wil can’t all stay in contact with everyone we’ve ever known.” ach to require ersonali l ta fu rg z Social media’s textbook definition is that it is a web- or mobile-based need in rther developm et consumers ed and . This w e r technology that relies on communication – a definition that covers a lot of ill and rea eal-time, and nt of the tools markete a way ch con su to rs the cha ground. So, what do the 10 most frequently visited nnels th mers using th store, referen c e consu o websites have in common? They offer users a mer pre se tools throu e fers. gh variety of ways to share news, multimedia,

Did you know?

etc., with their friends or customers. When you add photos and videos, Out of a range of digital-related marketing activities and information travels fast – really fast. disciplines, digital marketers see content optimization and social “Social media represents a media engagement as the top priority. But, according to a recent fundamental shift in consumer report by Adobe and eConsultancy, marketers are much less behavior,” Cloudspark’s Schmitt allows consumers to share content enthusiastic about social data and analytics, suggesting that says. “While it used to be that and conversations in real-time or redemonstrating ROI remains a headache for many social media brands could solely define and view through an online channel that marketers. More than half of client-side respondents (54 percent) influence an audience, in today’s archives everything. But one brand said that social media engagement is featured among the three social world, consumers can be the hiccup can resonate in social spheres most exciting opportunities, way ahead of mobile optimization audience or the author – or both – for a very long time. We haven’t seen (38 percent) and content optimization (37 percent). of a brand. This ‘active consumer’ can anything with that kind of impact and duSocial analytics is much further down the share thoughts, experiences, brand opinration of impact – ever. It has changed our pecking order (eighth place). ions, products or services. Social media entire marketing mix.”

connect – Vision Graphics Inc. • March/April 2012

columnist

It’s All About Timing When it comes to marketing, understanding when to send your message can be as important as the message itself.

Ad guru Lester Wunderman once said that marketers always could figure out what to sell, how to sell and to whom to sell. What they often can’t figure out is when to sell. As consumers become more skilled at filtering irrelevant messages delivered across myriad marketing channels, the tolerance fuse is getting shorter. While marketers are doing a better job of getting the right message to the right person, it’s becoming more important to send that message at the right time. Sending timely messages requires having a clear understanding of your customer’s situation to generate the best event-based marketing activity.

social) to help restaurant owners drive more business through effective trigger-based campaigns.

Expiration Dates/Reminders

What’s Trigger-Based Marketing? This is where something called trigger-based (or eventbased) marketing comes into play. Trigger-based marketing works on the premise that you communicate with your customers at the precise time they have a high propensity to purchase. Trigger-based marketing analyzes customer behavior to identify changes (triggers) that may indicate the need for a new product or service. Cross-sections of industry opinions suggest that those who engage in trigger-based marketing programs can see as much as a 400 percent improvement in response rates. While some might link trigger-based marketing to email campaigns, this marketing technique can work just as well in digital, print-based direct mail or text messaging. With trigger-based marketing, all these mechanisms share a direct, two-way communication channel between the brand and the individual, maximizing the potential for a one-to-one response. Trigger-based campaigns can and should, by their very nature, use all types of media – web, direct mail, social and mobile – in combination. Triggers for effective marketing campaigns include everything from life-changing events to external market changes. Following are some examples of trigger-based opportunities that can drive marketing efforts.

Life Events Customer life events can have major marketing implications. Such events might include the purchase of a new home, a birthday, a wedding anniversary or marriage, or retirement. A simple example exists in the food service market – some restaurants like to detect prospective patrons who are new to the area or provide special offers to loyal customers on birthdays or anniversaries. Organizations such as Guest Engine (www.guestengine. com) are providing integrated campaigns (print, email,

March/April 2012 • connect – Vision Graphics Inc.

By Barb Pellow Sending timely messages requires having a clear understanding of your customer’s situation to generate the best eventbased marketing activity.

Products and promotions often have expiration dates that can be used to trigger an appropriate marketing action. These might include the maturity of a certificate of deposit, or ongoing and repetitive services that require reminder notices. These range from automotive services to appointment reminders for pets. For example, Creative Marketing Services (www.cmsintouch.com) provides veterinary offices with personalized reminders that can be printed or sent via email or text to ensure customer loyalty and retention, as well as a secure income stream for the veterinary practice.

Customer Transactions Changes in purchasing patterns, spending patterns or account deposits also can indicate your consumers’ future buying intentions. A retailer can understand what merchandise to promote next, and when, based on a customer’s recent purchases, as well as frequent purchase combinations made by other customers in that same demographic. The transaction data for customers who just bought a specific product can be used to determine add-on products for promotion. This data also can show which customers to thank for a recent purchase with a special offer that will prompt them to come back and spend more.

External Events Barb Pellow is a group director at infoTrends (www.infotrends.com), a market research and consulting firm. She helps companies develop marketing strategies that expand and grow business opportunities.You can reach her at barb_pellow@ infotrends.com.

A number of external factors exist in today’s dynamic business environment. External triggers are tied to changing market conditions and competitive activity. External (industry-wide) triggers can include industry reshaping mergers and acquisitions, regulations, legislation and other factors that may change the prospects for an entire industry, region or category. Trigger-based marketing means delivering the right message when the customer has a high propensity to react. So, what are you waiting for? It is time to pull the marketing trigger.

book recommendation

Fascinate Authored by Sally Hogshead

It’s tough to get noticed these days. Whether you’re a salesperson or the leader of an organization, the art of becoming fascinating to those around you is a difficult task. Discovering what initiates fascination is even more of a challenge. Becoming a captivating person or building a popular brand is all rooted in the idea of fascination. Author Sally Hogshead details why fascination is the most powerful way to influence decision-making. In her new book, aptly named “Fascination,” Hogshead looks beyond marketing and delves into behavioral and social studies, historical precedents, neurobiology and evolutionary anthropology. She also conducts in-depth interviews and a national survey with a thousand consumers, to emerge with deeply rooted patterns for why, and how, we become captivated. By highlighting, what she deems, the seven triggers to fascination – power, trust, mystique, prestige, vice, alarm and lust – Hogshead shows how we can draw people to us. Her style is fun and light, which helps make you think about how we are perceived and how we will succeed going forward. Many marketing and selfimprovement books say the same things in different ways. But Hogshead’s book is different. The first part talks about the meaning of fascination, and why it is a necessary skill for success. The second part explains how and why each trigger has an effect, while the final part offers concrete strategies on how to develop, measure and execute your strategy to fascinate. Hogshead does an excellent job in finding provocative and surprising ways to make her points. Her insights are deep, intuitive and often counter-intuitive. Even while some of the case studies and analogies she chooses are off the wall, they still hit the mark. This is a refreshing approach for those who have read a lot of books on branding, marketing and social media. In a nutshell, the book is fascinating – one that we would highly recommend.

This is a refreshing approach for those who have read a lot of books on branding, marketing and social media.

connect – Vision Graphics Inc. • March/April 2012

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