There’s a great article in Fast Company about the, “The 10 Most Addictive Sounds in the World,” by Martin Lindstrom.
Lindstrom’s neuroscience based hypothesis contends that over 80% of today’s marketing messages are based on sight and a brand is not maximizing its communications when it forgoes appealing to a person’s other senses. And, sound is underutilized!
I’ve certainly witnessed the appeal of sound in automotive, amusement park and restaurant marketing (e.g., background music, worker noise levels etc.,) and found it fascinating that when the sound was removed from slot machines in Las Vegas, revenue fell by 24%!
Be more aware of the power of sound because when your customers can hear your sizzling steaks, you’ll hear your cash register ring more loudly!
In the early 80′s, I was working with GM dealer marketing groups throughout the country. In those days, multicultural or ethnic marketing was rarely discussed with my GM, Oldsmobile or Cadillac marketing counterparts or even car dealer clients.
In fact, even targeted marketing to females was rarely discussed and at the time they were moving fast into the workforce. Female sales people were rare as well. The best in the country was Donna Dunnivan at Bendik Olds in Pittsburgh. Even though Donna’s success was well known nationally, dealers were slow to hire female sales people and cater to them as customers.
To build my product knowledge of the cars I was marketing, I frequently attended classes at a local GM Training Center. I once asked a GM engineer why their cars didn’t have vanity mirrors on the driver’s side visor – most Japanese cars did – and he said it would take about three years! The funny thing was a lot of my dealers sold extra mirrors with rubber bands that you could affix to the driver’s side visors.
In those days in the car business, when you lost a sale, you lost it for about seven years minimum and maybe more if the customer was happy with her purchase.
Isn’t it amazing how marketing opportunities are all around you if you only paid attention and worked hard to maximize them!
McDonald’s has been paying attention for a long time. Sure, they may have stumbled a bit over the years (who hasn’t?), but I’ll take their track record any day.
My first real exposure to extreme targeted marketing (seniors, moms, kids, teens, tweens, seniors etc.) and multicultural, ethnic marketing was during my McDonald’s days in the 80′s and 90′s.
I don’t profess to be an expert (does one ever truly arrive at anything to be considered and expert?), but I gained valuable insights that I bring with me to every marketing engagement and I work hard to expand my knowledge base.
Naturally, I was proud to see my old friend McDonald’s CMO Neil Golden rock the house with his “Leading with Ethnic Insights” presentation at the recent ANA Masters of Marketing Conference (see AdAge coverage of his speech here – here’s another report – take time to read both – good stuff!).
Note: McDonald’s marketing is in good hands with Neil Golden!
McDonald’s estimates that about 40% of its core loyal U.S. business comes from the Hispanic, Asian and African-American markets, and 50% of consumers under the age of 13 are from those segments too.
A few questions for you:
- Do you know what your ethnic population base in your core market/s?
- Do you know how your ethnic sales mix breaks down?
- Is your management team ethnically balanced?
- Do you have ethnic marketing practices? Hiring practices?
- Do you know how to manage cultural differences?
Today, with more targeted media and the internet, it’s a bit easier to market to specific groups, to communicate relevant messages, make them feel welcome, and to treat different people differently and with respect to their uniqueness.
Get out from your desk and start a multicultural marketing plan today. I’m sure you’re leaving money on the table. Great Multicultural Marketing isn’t black and white, but it certainly is GREEN – that is, it will ring your cash register and you can take it to the bank!
P.S.: Remember Neil’s sage advice that there are, “No malls in the ghetto!” I’m lovin’ it!
In the past few weeks/days, I read an article in Ad Age titled, What to Expect From Chrysler’s Marketing Chief: Provocative Ads. And, an article in Automotive News titled, Chevy review is latest sign GM wants ads that provoke.
Provocative ads aren’t going to make Americans part with tens of thousands of dollars for a new car, but I’m sure provocative cars and trucks would – I’d bet $25,000+ – what a concept!
Speaking about concepts. Every new car show I’ve attended – and I’ve attended many over the years all over the country – people are always amazed and excited about concept cars, but you never see them on the road! What’s with that?
What a shame and what a waste of our taxpayers dollars.
I was compelled to read both articles because of my early career in Automotive marketing and the concern I have for the industry and how it impacts our economy. We should all be rooting for Detroit to succeed because when they do – we all do.
Research says that less than 20% of people who walk into a dealership buy a new car and drive away with it. These stats lead me to believe that Detroit lacks provocative “WOW” brands! I’d love to see the statistic about how long an average visit is!
Here are just a few more points I’d advise Detroit to mull over:
- Next to getting married, buying a new car is one of the most involved decisions one can make and auto manufacturers these days have to give real, tangible reasons to buy their products not just fancy ads
- Word of mouth (peer reviews, personal experiences, testimonials etc.,) is the most influential form of communication in a car purchase vs. ad campaigns and provocative new models would drive WOM
- Performance, design, efficiency, value etc., contribute more to WOM than Ads
- Mass media has lost a ton of influence, so big budgets and splashy ad campaigns are no longer necessary when the majority of people search online first – and search a lot online – when in the market for a new car. Brands could reduce their marketing ad spend and either reapply the savings to reduce the price of cars, put it back in design or more added value features
- It’s all about the cars – car marketing chiefs and their minions need to get more involved in the design/production effort by representing the customer and being their voice in the board room
Come on Detroit, you can do better!
P.S.: Is there another John DeLorean out there – maybe a slightly more disciplined and better funded one?
Caught this story on CNN.com this morning about the new Chevy Volt that can get up to 230 mpg! Talk about high voltage marketing!
I’m sure most if not all of you have cut expenses – especially marketing expenses to the bone – but what have you done to make your brand truly remarkable through innovation?
I truly believe in gamechangers like the Chevy Volt! What can you do – rather, what will you do to create a gamechanger for your brand, service, career etc.,?
If you do, you’ll reap dividends for years to come and be able to say with pride, “Recession be damned!”
2008 is expected to be
the worst for auto sales in a decade. Automakers are slashing their ad budgets,
but online they are spending more. After consistently leading the U.S. in
advertising spending, the automotive sector has dropped into the No. 2 spot
behind retail. Even as new vehicle sales decline, automotive marketers will
spend nearly $3 billion online this year, up 21.6%. By 2012, automotive online
ad spending will top $5.6 billion. Research shows that eight out of 10 consumers
now consult the Internet at least once during the car-buying process. It's taking them some time to wak-up, but thoughts of bankruptcy have a sobering effect on one's marketing planning.
The New York Times recently reported that in June, the sales of new cars and trucks dropped to their lowest level in 10 years – maybe 15 years!
Here are some staggering facts: Ford was down 28%; General
Motors was off 18% (and their stock has been at its lowest level in 50 years); Chrysler
dropped 36% and Toyota was down 21%.
Certainly the consumer shift from large to small cars due to the crazy gas prices and the economy is a key factor, but there is so much more wrong with the domestics.
When was the last time you heard someone say, "You gotta get that new (freely insert Ford, GM, Chrysler)
new car/truck? It’s a beauty!"
The domestic’s plants aren’t as flexible as the Japanese plants in terms of scaling quickly to meet the demand of more smaller vehicles so more tough times are on the horizon for them.
However, it’s hard for me to realize that so many people have been caught blindsided by the current economic challenges. Maybe it’s time to roll lots of fols in upper management – not just the good folks on the assembly lines.
Because think about it. If the economy was good, I still doubt you’d hear someone say, "You gotta get that new (freely insert Ford, GM, Chrysler) new car/truck?
For Detroit to truly rebound and lead, they need to leapfrog foreign
makes, not just try to catch up in terms of design, alternative fuel
etc.,
Enough with the sexy concept cars – make one for sale for crying out loud! What a concept!
It will be interesting to watch their increased marketing efforts online. After leading the US in advertising spending, the automotive sector has dropped into the number two spot behind retail. Ad spending in the According an eMarketer report, Automotive Marketing Online: Negotiating the Curves, even as new-vehicle sales decline, automotive
I worked for several years in the early 80′s in automotive marketing and still keep tabs on the industry. It’s a fascinating one in which so many other industries are tied into it’s success (oil, glass, rubber, electronics etc.,).
sector is going in reverse—except on the Internet.
marketers will spend nearly $3 billion online this year, up 21.6%. And by 2012, automotive online ad spending will top $5.6 billion.
Capgemini
shows that 80% of consumers now consult the Internet at least once during the
car-buying process. The firm report
ed the percentage was 71% in 2006 and 64% in
2004. Recommendations from family and friends are being replaced in
importance by online customer reviews. And it’s commonplace.
A joint comScore and the
Kelsey Group study showed
that 78% of Internet users who read an online review in the automotive category said it influenced their offline purchase decision.
Can you think of
ways to ad online reviews and/or testimonials to your Web site?
The New York Times reported that Nissan Racing will have an Electric Car on the market in 2010. Nissan said that they’re ramping up development because of high gas prices, environmental concerns, and to meet stricter fuel-economy standards.
Nissan? Hello Detroit anybody there? You should be ashamed of yourselves!
Back in the late ’70s during the Carter administration with oil shortages, long gas lines and when gas was about 60 cents a gallon where was the innovation? Where was the political and business leadership? Where were our modern day Edisons or Westinghouses and Kennedys? Where are they now?
How many priceless lives have been lost due to oil and how much of our blessed environment have we killed – it’s shameful and sinful. If you calculate the cost of wars, lives, defense etc., into the future – which American leaders could have easily done (a very easy business case), they could have simply incentivized the Big 3 to come up with an electric car and supportive system in 10 years – I’m sure of it.
I’d bet that Edison and Ford would have accomplished built an effective electric car over a long weekend while vacationing in Ft. Myers.
I blame corporate America too for the lack of ingenuity.
Innovation is lacking in so many businesses – fast fail risk taking is key to rising above your competition and leaving the world a better place.
If you’re looking for a little inspiration, check out Dean Kamen – love this guy!
Here’s a quick video of Kamen’s Miracle Water Distiller!
Note: Famous picture of Edison above sleeping in his Laboratory.
Who’s Got The Most Loyal Customers?
In the automotive category:
1 Toyota
2 Mercedes/BMW (tie)
3 Honda
4 Nissan
5 Saab
6 Chevrolet
7 Jeep
8 Volkswagen
9 Hyundai
10 Chrysler/Volvo* (tie)
11 Ford
12 Kia
13 General Motors
* First time on list
Source: Brand Keys Customer Loyalty Engagement Index
P.S.: For U.S. cars, I wonder how much loyalty was actually "extortion" resulting from incentives. Only Chevy cracked the Top 10.
Interesting to note that Chrysler is cutting back on models.
They’re considering halving their line and pruning their dealer network.
More brands would be wise to follow suit.
What do you offer that’s duplicating and/or draining your resources. How about doing fewer things, but doing them "remarkably" well!
Analyze the word "remarkable." When you do something remarkable – people remark about it!
