"Buy the Way…" Insights on Integrated Marketing Communication

By now, you many have heard the news… the Hispanic population in the U.S. is growing at an incredible rate. According to the U.S. Census, Hispanics represent 56% of the population growth since the year 2000. At 52 million strong, this is a target no marketer should ignore; yet many do. Why? Because many believe that investing in Hispanic advertising will not be a positive ROI.

Some marketers think that since Hispanics live in the U.S, and since many have lived here for a long time, they most likely speak English and therefore do not watch Spanish language TV. But with a $1.2 Trillion spending power, nothing could be farther from the truth. In fact, about 85% of Hispanics ages 18 – 34  chose to speak Spanish, even if they know how to speak English.

The numbers speak for themselves. Did you know that in 2011 Univision, the top Spanish language television network beat NBC’s Primetime 195 nights? Did you know that in major markets like Los Angeles, the most watched news channel is Spanish language news? Hispanics are tuning in, and they are tuning in, in Spanish. They are also Tweeting, chatting, catching up with friends and family on FB, and becoming one of the most techie groups out there, in many cases over-indexing non-Hispanics.

To keep up with them, Univision has expanded the way they connect with this valuable consumer segment. From HULU to Facebook, from Mobile, Apps to Online, no opportunity has been overlooked.

So to those marketers that still approach the Hispanic market as a “niche” opportunity, it’s time to wake up and smell the true potential it can bring. It’s time to say “¡Hola!”

Source: Univision. net; U.S. Census 2010; The Nielsen Company. 2012 Television Universe Estimates. Based on Language Spoken by the Person (Hispanic Adults 18-34), U.S. Image source: Getty Image RF

by Aaron Schmidt

A recent trend in broadband cable, called Over the Top (OTT) viewing allows users to access and stream high quality video to their TVs without going through a multichannel video program distributors, or MVPDs such as Time Warner, Cox, AT&T, etc. The most popular options for OTT viewing are streaming services such as Netflix and Hulu, or using internet-connected TVs to view streaming videos from websites (legally or otherwise).  This is creating a problem for advertisers and cable companies, and will eventually cause a huge problem for TV fans.

OTT is seen as a threat to the MVPDs, who rely on subscription fees in order to maintain their feeds and provide content. The MVPDs in turn pay some of those subscription fees to the content providers in terms of licensing and share ad revenue. This arrangement creates a paradox for the OTT trend- that OTT users are taking money away from the budgets from the content they are watching. Right now, viewers are becoming so used to watching things on demand, that they are actively seeking out ways of watching TV whenever they want and for free, without wondering how the shows get their budgets in the first place.  

Currently, Netflix and Hulu have large viewer and subscriber bases that enable them to pay the licensing fees and provide on demand media at MVPD quality and speed. Users are increasing relying on these services, resulting in a phenomenon called ‘cutting the cord’ where homes go without a traditional MVPD connection. As stated before, this could lower advertising dollars and in turn budgets for the high-production value shows that attract viewers to Netflix and Hulu in the first place – which may necessitate the need for those services to produce original programming to make up for any loss in licensed content. And, in another paradox, this reliance on lower-quality original programming may cause a loss of subscriptions.

Basically, there is not enough money, and no good revenue plans in place, for content producers to embrace OTT over traditional MVPD. The real challenge will be finding a way to provide VOD through OTT that will make the customer, provider and producer happy. Right now, the system makes only the customer happy, but eventually, there won’t be any content to be happy about.

Is there a way to make all of the parties happy? Or will TV viewers need to cave to the need for advertising dollars to fund their shows?  If OTT wins out, how will advertisers reach audiences, and how will shows pay for their production budgets? No one seems to have any answers yet…

Taking bacon to a whole new level! Enjoy a delicious bacon sundae from Burger King! Hurry, as this item is only available until the end of summer!

Looking for something with extra calories? Why not try the savory bacon milkshake from Jack in the Box for a limited time only?

Who is anxious to try one of these tasty treats? Or, who feels that adding bacon to a beverage and dessert item is a bit extreme? It is the battle of the bacon craze between two fast food giants, Burger King and Jack in the Box!

An idea that is simple and unexpected can be one of the most effective ways to attract a new audience or engage current customers (Heath & Heath, 1997). What are the reasons behind the bacon craze? The concept is simple; add bacon to an item already on the menu and market the creation as a new invention. The concept is unexpected; or is it? It is not uncommon to hear about bacon as an “ingredient of choice” for cookies, brownies, and other sugary foods.

Why the sudden interest in advertising a food that exceeds the daily caloric intake (or close to it), when both fast food chains have made a valiant effort to add healthy items to their menu? Maybe offering unhealthy and unique foods will increase profits more than nutritional products. However, do customers go to fast food chains for healthy food? Regardless of the reasons for joining the bacon craze, Burger King and Jack in the Box have successfully grabbed people’s attention!

In an effort to revive its menu, Burger King launched a series of healthy items earlier this year to target a broader audience (Associated Press, 2012). It has continued to change things up by rolling out its summer menu, which features mouthwatering barbeque items and, you guessed it; the bacon sundae! Just what is a bacon sundae? “The bacon sundae will come with soft-serve ice cream, fudge, caramel and a piece of bacon.” (HSU, 2012). Will this sundae be able to compete with the bacon milkshake from Jack in the Box?

Jack in the Box has introduced a “1,081-calorie bacon milkshake” – “made with no actual bacon, just real vanilla ice cream, bacon-flavored syrup, whipped topping and a maraschino cherry.” (Stein, 2012). Customers have the option of purchasing a 16 ounce milkshake with fewer calories if a 24 ounce shake is too much to handle. Do not be surprised if your local Jack in the Box is not advertising the bacon milkshake on its menu. As part of the “Love Bacon? Marry It” campaign, the milkshake is a “secret item” that can be requested for a limited time (Kindelan, 2012).

For all you bacon connoisseurs out there, what are your thoughts; bacon sundae or bacon milkshake? Customers who have indulged in these creations, what is your opinion? Is the bacon craze here to stay?

Sources

Associated Press. (2012, June 12). Burger King bets on bacon sundae for summertime. Businessweek.
Retrieved June 15, 2012, from http://www.businessweek.com/ap/2012-06/D9VBOOK04.htm

Heath, C., & Heath, D. (1997). Made to stick: Why some ideas survive and others die. New York, NY: Random House.

Hsu, T. (2012, June 12). Bacon sundae and sweet potato fries at Burger King? Los Angeles Times. Retrieved June 15, 2012, from
http://www.latimes.com/business/money/la-fi-mo-bacon-sundae-sweet-potato-fries-burger-king-20120612,0,7340641.story

Kindelan, K. (2012, February 7). Jack in the Box debuts bacon milkshake. ABC News.
Retrieved June 15, 2012, from http://abcnews.go.com/blogs/lifestyle/2012/02/jack-in-the-box-debuts-bacon-milkshake/

Stein, J. (2012, February 8). Are you ready for the 1,081-calorie bacon milkshake? Los Angeles Times. Retrieved June 15, 2012, from
http://articles.latimes.com/2012/feb/08/news/la-heb-bacon-milkshake-jack-in-the-box-20120208

Burger King – Bacon Sundae image: http://firewireblog.com/2012/04/11/burger-king-testing-bacon-sundaes/
Jack in the Box – Bacon Milkshake image: http://www.bestweekever.tv/2012-02-03/want-jack-in-the-box-bacon-milkshake/
Bacon cookies image: http://www.sogoodblog.com/2007/12/29/can-i-add-bacon-to-my-dessert/
Bacon fudge image: http://www.savvyhousekeeping.com/bacon-desserts/

A few days ago my boss came up to me and said, “I’ve got the iPhone 4s to help you!”  My first thought was why is this 69-year-old Irish man with no technology comfort level upgrading to the most technologically advanced phone on the market?  He furthered stated that “he” wouldn’t help me out, but “Siri” would help me do my job.  I looked at my boss and asked if I should be concerned about job security?

My boss chuckled and then asked me how to turn on his new phone, as we both laughed, I quickly began thinking about the impacts of voice recognition software and my position.  Voice recognition software is not new, but the advancement in the technology in the last several years is remarkable.  Currently, there are several very popular voice recognition programs on the market.  These programs include Dragon Speak, Windows Speech Recognition software, iListen, ViaVoice, and a handful of others.  As this technology has changed, it is also shaping how new products are being marketed to consumers.

Current voice recognition software is broken into two categories, small-vocabulary and large-vocabulary.  (Senecal, 2011).  Large-scale vocabulary recognition allows for computers to process items on a larger scale, such as writing papers, or specific voice recognition for fields such as legal or medical.  (Senecal, 2011).  While small-vocabulary programs are targeted for telephone banking or prescription refills.

For consumers, this technology is becoming more affordable and mobile.  For example, the geniuses at Apple have developed Siri, a voice activated module on the iPhone 4s.  With the touch of a button you can ask Siri to get you directions, reply to emails or just have a digital person to talk to.  Siri is smart enough to discuss deep questions, such as what’s for lunch, or the meaning of life.  (Apple, 2012).  When Siri first came out, the buzz was quite amazing, as many people flocked to Apple stores to see samples as well as test out this new technology.  With the popularity of Siri, it is only a matter of time before newer and more advanced technology on voice activation will come out.

Video retrieved from Apple home page

The future of voice activation could include computers understanding the meaning behind the words/voice (Grabianowski, 2011).  This would mean that computers could talk back and make complete sense.  It is estimated that at the rate technology is advancing, it could be about 25 years before this is ready for market.  With this on the horizon, the question then becomes; how do technology based companies develop these tools and begin marketing to consumers now?

With the popularity of Siri, consumers and telephone companies have made it clear that they will pay the $800 dollars per phone to get this technology.  While Siri is fun to play with and can be very useful for the executive or professional on the go, there is plenty of time to develop strategies to lure in those who are not currently comfortable with technology and prepare them for what may becoming.

My conversation with my boss may be a 25-year warning for the elimination of my job, as a voice recognition robot could easily make me look incompetent!  The lesson here is to learn from my boss’ personality.  He is a genius, world-renowned surgeon and oncologist, but can’t type or send an email if his life depended upon it.  Yet with all of his challenges and phobias towards technology, he still managed to want a device that had Siri.  While Apple is arguably the premier product with mobile voice recognition, as communicators and marketers, we should be jumping on the opportunity to develop plans to lure in new consumers and convert those who do not know they NEED voice recognition software.  This technology is a blue ocean in the making.  So I may be in a position that a robot with smart voice recognition can replace in 2 and a half decades, but I also can see an opportunity to be part of a strategic plan to gain a market share in undeveloped technology.

References:

(2012). Apple home page.  Retrieved from http://www.apple.com/iphone/features/siri.html

Grabianowski, E. (2011). How Speech Recognition Works. How Stuff Works. Retrieved from http://electronics.howstuffworks.com/gadgets/high-tech-gadgets/speech-recognition4.htm

Senecal, J. (2012) The future of speech recognition. How Stuff Works. Retrieved from http://electronics.howstuffworks.com/gadgets/high-tech-gadgets/speech-recognition4.htm

“Where should we go for dinner?” This is always a dreaded question in my household. My family has never been one that is up on the new trendy places or familiar with places that are getting rave reviews from critics. Lucky for us, we can now turn to social media for plenty of suggestions. More and more social media has become a platform for individuals to voice their support, enjoyment, gratification, or dissatisfaction for a product, service, or event. With all of this word-of-mouth publicity, smart businesses are starting to take note.

Screen Shot of Yelp.com/Santa Monica

Yelp is currently atop the list of websites that allow customers to search for local businesses and review their experiences. This is a great example of word-of-mouth marketing. Word-of-mouth marketing is a great way for businesses to advertise without breaking the bank. But with sites like Yelp, that basically allow any user to become a critic, businesses also have to be sure that customers have an all-around pleasant experience. Otherwise, there are negative consequences that have to be dealt with.

In a recent blog at http://wordofmouth.org/tag/yelp Kevin Lee explains how businesses should work with these online reviews. In three seemingly simple rules, Lee gives valuable advice for the best results with user review sites such as Yelp. In a nutshell, he advices businesses to never write fake reviews as a way of marketing, to never respond to negative reviews negatively, and to be sure and respond to the feedback that is given.

As a Yelp user myself, it is very easy to see how strong of a marketing tool this can be. Any time I am looking for a new restaurant, gym, hair salon, etc. I visit Yelp. I read the reviews to see if it is a business worth exploring. When there is negative review after negative review, I quickly move on. Obviously, those businesses are not yet aware of how word-of-mouth marketing can significantly influence customers.

On multiple occasions I have read negative reviews that were later retracted because the business reached out to the user and corrected whatever issue the user had. Those businesses are likely aware that Yelp can be a great way to bring in new business. There are also many organizations that proudly display the “look for us on Yelp” banners. It’s clear that these places are using word-of-mouth marketing to its full potential.

Resources:

http://www.yelp.com

http://wordofmouth.org/tag/yelp

http://bumslogic.files.wordpress.com/2011/07/yelp.jpg

As I watched the much anticipated Manny Pacquiao vs. Tim Bradley Welterweight title match on Pay-Per-View last weekend, my brain was inundated with all the advertising and branding posted everywhere from the shorts of the fighters to the ring itself.  Many companies took advantage of the wide viewership of this fight to advertise their products and services on a global scale.  To specialized companies, this could serve as one of the biggest stages to introduce new products and build name recognition.  RYU (Respect Your Universe, Inc.), for example, decided to sponsor Super Bantamweight Boxing Champion Teon Kennedy who was part of the undercard for the Pacquiao vs. Bradley fight.  RYU wanted to introduce their new men’s spring performance line including compression tops and hoodies, and their advertising prevalence at this major sporting event was intended to draw people to the brand’s website and stores in hopes that they would purchase the new products (www.marketwatch.com).

In addition to the advertising at lower levels during the event, Pacquiao proudly supported his sponsors such as Nike and Ricoa on his trunks during the bout to create ultimate exposure for those brands.  In fact, Pacquiao has used his celebrity to become a prime endorser for a variety of products and services throughout his career, even though he started in a rough position.

Pacquiao, 33, is a high school dropout who lifted his family out of poverty through boxing. In the 1990s, he fought for purses as small as 150 pesos ($3.50) — then about the cost of a T-shirt in the Philippines. Today he’s the richest Philippine congressman, surpassing Imelda Marcos, with a net worth inflated by TV appearances and endorsing products with the Nike, Hennessy Cognac and HP brands (Batino, 2012).

Photograph by: Kevork Djansezian, Getty Images

In fact, Nike created a revolutionary, state-of-the-art “wardrobe” for Pacquiao to wear during the fight, and this commitment to him as an endorser not only allowed him to fight at his very best, but it allowed Nike to showcase new products which they have been designing over the past few years.  Everything from the trunks to his T-shirt had a special purpose and was designed with him in mind.  The trunks, for example, were “MP Fight Night Trunks which featured technical fabrication at a light weight. With fabric made of 100% recycled polyester, using an average of 9 recycled plastic bottles, these trunks adhere to Nike’s commitment to serving the needs of the athlete and the planet at the same time.  Recycled polyester textiles, which can be made from used beverage bottles, have lower energy use, less raw materials extraction and less waste compared to traditional, virgin polyester fiber. At 18% lighter than ever before, just over 6 ounces total, the shorts are designed for zero distractions in the ring” (www.finchannel.com).  The T-shirt he wore was 100% organic cotton which was grown and harvested “without the use of synthetic chemical pesticides, fertilizers or defoliants” (www.finchannel.com).  These, in addition to the other innovative technologies Nike used for Pacquiao’s fight attire are likely the new era in boxing wardrobes, so it will be interesting to see if the product placement at this controversial and high-level boxing match proved successful for Nike as an advertiser and brand.

Pacquio’s massive success is a testament to his hard work and dedication, and it is no doubt that advertisers have capitalized on his successes to bring attention to their products and services over the years.  For last weekend’s fight, one would be hard pressed to look in one direction without seeing some sort of advertisement or endorsement, and this seems to be a bright move for those in the boxing world or closely related to it as a way to generate product exposure in an outside-the-box fashion without relying solely on commercials and billboards to supplement their campaigns.

Batino, C. (2012, June 10).  Controversial Pacquiao vs Bradley result angers boxing fans around the world. The Vancouver Sun. Retrieved on June 14, 2012 from http://www.vancouversun.com/business/Controversial+Pacquiao+Bradley+result+angers+boxing+fans+around+world/6759686/story.html

http://www.marketwatch.com/story/super-bantamweight-boxing-champion-teon-kennedy-to-represent-ryu-for-first-world-title-fight-at-mgm-grand-2012-06-07

http://finchannel.com/Main_News/Business/110434_Manny_Pacquiao_Teams_with_Nike_for_Upcoming_Showdown/