Reaching Curacao 2010 is looking good, like we envisioned.
Almost 100 participants have registered already, representing the following companies:
Fatum, ENNIA, DAE, Curacao Beverage Bottling Company, HUCOR NV Holding Company, Selikor N.V., Freeport Jewelers, Insel Air, Distribier, Maduro & Curiel's Bank N.V., Fun Miles Antilles N.V., Kooyman BV, Building Depot, Hector Henriquez N.V., Curacao Laboratories & Senior & Co, Janssen de Jong Project Development, McDonalds Aruba & Curacao, SFT, EJPEG, DEZ, Chamber of Commerce, Curacao Mobile BV, ActionCoach, Manrique Capriles, Licores Maduro, OBNA, Epiphany BV, NAOC, DirecTV, El Tributo, Martijn Trading, Securitas Antias, Gosucon NV, ACTS, Regina Pacis VSBO, PRGV 100% Creatie, BAKEN Management Consultancy, Mosaic Marketing & Coordination, FEFFIK, SIAC NV, Axum Caribbean, Jonckheer Advertising and Marketing Cons. BV, Artutrust N.V., VMA (Varia Marketing & Advertising), Noort Advies, Rao & Co. N.V., Kleinmoedig & Partners Attorneys at Law, Curacao Financial Advisory Services BV, Plantijn Secure Advice BV, DENKENenDOEN, Tera Group Advertising and Public Relations, Dragonfly Media Chatlein Notaries, COR Antilles, SaBiCa NV, Openbaar SBO Ban Bria, In Zaken, MIXmarketing, Stradius, Hagen Advertising, TexPic.
Showing posts with label Curacao. Show all posts
Showing posts with label Curacao. Show all posts
Monday, May 17, 2010
Friday, May 7, 2010
Reaching Curacao 2010 - Why do we do it?
MarkStra Caribbean is not an advertising or media placing agency. We do not make advertisements. We do research, advise on competitive strategy, new products, prices, distribution channels, innovation, etc. But, once in a while we have to make media recommendations to clients, or assess in which medium good or bad publicity has the most impact, and thus warrants action.
I can never give a firm recommendation, and the advertising or media-buying agency we are working with cannot either. Our work is more complicated because of the extreme media proliferation in Curacao: 20something radio stations and almost 10 daily newspapers? When I had my first media job, in 1983, the landscape was quite different.
Yes, my colleague Disrael Orphelin did media surveys many years ago, mostly as a hobby. And yes, there is a media survey sold quite exclusively to a number of large advertisers. But the rest of our clients?
No matter how you turn it, in 2010, with so many highly educated marketing and advertising professionals working in Curacao this is simply not possible. It is also not possible because foreign companies do have the information, putting our local companies at a competitive disadvantage.
So why are we where we are with regards to media, while we do have lots of ongoing research with regards to other products and services?
I don't know the answer. Do you?
Meanwhile, learn more about Reaching Curacao 2010
Thursday, May 6, 2010
MarkStra Caribbean - 15 years!
Hey, it's our 15th anniversary year!
And we are celebrating:
- and adapted name
- a new style
- a new focus
- Reaching Curacao 2010
Tuesday, May 4, 2010
Reaching Curacao 2010 - The Report
But how many people are we talking about? what media is best to place this particular advertisement in?
It is obvious that we need (more) hard data on Curacao for good strategic and marketing decision-making.
The first report is Reaching Curacao 2010, containing:
- Size of Curacao market segments
- Our total combined spending on different product categories
- Our use of radio, television and newspaper and new media in Curacao by age, sex and social-economic class (SEC), and time most watched or listened
- Where we shop and roads most travelled by age, sex and SEC
- Global trends regarding media attitudes and generations! Yes, the generations are different.
Reaching Curacao 2010 - The Report is available at the special introductory price of ANG 1.500 if bought before June 1, 2010.
How is the Report different from the Event? It provides more detailed data:
- readership and audience by age, sex and SEC for all media
- more detailed data about spending on product categories
- more detailed information about media attitudes
Worried that you will have paid for the information while everybody else copies it?
- Valid concern. We will select the companies who can buy the report.
Thinking about ROI? If the report helps you:
- place two 3colx25cm ads better, you will have made your money back
- make a better decision about sponsoring radio newscasts for two months you will have made your money back
- reduce the one debate about market potential or guesswork about market size, you will have made your money back
Reaching Curacao 2010 - The Event
You can see the quality of our work and to enable small businesses to get at least some info. We hope to see you and your business development and marketing staff there!
To reserve your copy, please contact us at tlacruz@markstra.com or call 767-3085.
Reaching Curacao 2010 - The Event
Probably the first event on Curacao for Strategy and Marketing professionals, accessible to all business owners, CEO's, CMO's, other strategy, marketing and advertising professionals
And probably the first seminar most of us will attend at the brand new Hyatt Regency Curacao.
Yes, I am excited that this will be in partial celebration of MarkStra Caribbean's 15th anniversary!
Save the date!
Tuesday May 18th,
4pm-5:30pm, followed by networking
Hyatt Regency Curacao Arrawak Ballroom
Fee: ANG 95 or USD55
Register at Register Reaching Curacao 2010 The Event
Some people asked if there is an international speaker.
No! This will be the first time we will be discussing primarily Curacao strategy and marketing hard data, all together. Gezellig!
I promise it will be a unique and fun presentation, by myself, in English. But above all the data will be useful! Heads up for the preview
Please help us: if you are coming please try to register by May 10th.
We must indicate the number of attendants wayyyyy in advance.
Reaching Curacao 2010 - An introduction
A frequent cry: “There is no data on Curacao”. Often followed by the realization of the acute need for hard data for good strategic and marketing decisions
- A compilation of the important demographics in Curacao, including the size of different market segments, to help you or your client determine how attractive a consumer segment really is
- Our combined spending on some important product categories
- Our use of radio, television and newspaper and new media in Curacao by age, gender and social-economic class
- Where we shop and roads most travelled. Ever wonder where the best places are to put billboards, without having to revert to "you-say-I-say"?
- Global trends regarding media attitudes and generations! Yes, the generations are different.
Friday, March 12, 2010
Survey sample sizes in small markets
Earlier this week I had a FB discussion with a fellow researcher about appropriate sample sizes (steekproefgroottes, muestras) in market research. It prompted me to write a post I always want to write each time that discussion comes up in Curacao.
As I write, I realize that the discussion might arise from the different goals of business research versus scientific research. In business (and other organizations) information is gathered to assist in decision-making. It has to make business sense. Scientific research often merely seeks to describe a condition. The findings are not necessarily used to aid in decision-making.
The research field allows for all sample sizes. Researcher just have to indicate the accuracy of the findings.
The larger the sample size, the more accurate the result, i.e. the more likely it is that the result of the study is closer to the reality. What is the error?
| Sample (rounded) | Error (rounded) |
| 2.500 | 2% |
| 1.000 | 3% |
| 600 | 4% |
| 400 | 5% |
| 100 | 10% |
This means that if you interview 400 people and 60% says they like your product, the reality is that between 55% and 65% like your product. If you interview 2.500 people, and 60% says they like your product, the real answer is likely to lie between 58% and 62%.
So, why would a market research not choose to work with the most accurate (large) sample size?
1. ROI reasons. Let’s say that a mass market research study with a sample size of 2.500 costs the same in Curacao, Holland and the USA, e.g. USD 10.000. All else equal, if the accurate answer on which you will base a decision yields you USD 1million extra profit in Holland, it will yield you USD 10.000 extra profit in Curacao – a BREAKEVEN -, just because our market is 100 times smaller (16 million vs 150.000). Why bother? What are the chances that you will sell this research proposal to your US boss, who is accustomed to a market where the same investment can yield 2.000 times more profit?
2. Maybe the ROI is good, but there is just no budget.
3. There are not enough qualified respondents in the market. There are 2000 babies born in Curacao every year. If a survey with 2% margin of error is desired, you need to interview all the new moms, and then some. How much it will cost in money and time to get to ALL of them? We were recently asked to interview 100 regular users of a minor cigarette brand in a certain age group. How difficult is that? How large is the risk that interviewers or respondents will fake interviews or come up with unqualified respondents?
4. There is not enough time. See point 3
5. Often a high level of accuracy is not necessary. For strategy and marketing purposes we are usually more interested in understanding and exploiting the top 3-4 alternatives, than in making an accurate top 20-ranking. We are interested in the top 3-4 reasons people buy a product, the top 3-4 media vehicles they use, the 3-4 advertising or product enhancing concepts that most appeal to them, the 3-4 closest competitors. All the other reasons, media vehicles, advertising or new product concepts and competitors become irrelevant. Why only the top 3-4? Because those are the ones we will duly consider in strategy development and/or marketing.
6. Borderline cases always mean that your work as a strategist is not done. If 52% like the product concept and 48% dislike, it is imperative to continue working on a better concept, regardless of the margin of error of the study. The risk of the product flopping in the market is simply much too great. What if further enhancement is not possible and a clear winner is not obvious? Well, if budget and time permit and the client wants to assume the risk of a product flopping, you can continue interviewing (making the sample size larger) until the desired accuracy level is reached. I.e. you can start with 400 and work your way up to a sample size of 1000 or more.
7. Segmentation is not very detailed. If the intention is to analyze and develop strategy for different segments, then you need enough respondents in each segment (subgroup) to properly analyze it (there is a formula for that). But, in small markets it is often not profitable to divide the market in many different segments, each with a different strategy. The most we might segment a small market by is 2 or 3 demographic and/or lifestyle variables. The best approach is to first decide which segments you want to study (because you can and intend to develop a separate strategy for them) and decide on minimum sample size later.
3. The answers might have been recorded, coded, processed or interpreted wrongly
4. Interviewers might have faked the interview. Unsupervised and without validation (i.e. call backs) that is a big risk. Our company asks the name and telephone number of respondents so we can call them back and check (validate). Either that or interviewers are duly supervised.
5. Certain segments (ages, gender, social economic class) might have been over- or underrepresented. Perhaps they could not be found (as young men often are), they were not willing to participate, or participated but systematically refused to answer certain questions. Personally I always participate in surveys but systematically refuse to answer questions about income, politics, religion, sex, etc. That’s one of the reasons we don’t include them in our surveys: never ask a question you would not want to answer.
Sample sizes of around 400 are the norm rather than the exception in the small markets of the Caribbean. The constant discussion about sample size inhibits the further development of the research industry. Researchers are afraid to propose small sample sizes, clients are afraid to accept them since they have been led to believe that small sample sizes provide useless answers. Yet, there is no money to pay for more. So, research is forgone, decisions are made on no data at all, while we all know that some data is better than no data at all.
Wednesday, June 17, 2009
The Tipping Point at Work in Curacao Referendum
In the previous post http://smallmarketmarketing.blogspot.com/2009/06/lessons-from-marketing-politics-and.html post I made some observations about the referendum campaigns in Curacao. Here is my most interesting observation still.
According to Malcolm Gladwell, "The Tipping Point is that magic moment when an idea, trend or social behavior crosses a threshold, tips and spreads like wildfire". He suggests that these so-called social epidemics are created by a combination of "connectors", "mavens", "salesmen" "stickiness" and "context".
- Connectors are those people "who know lots of people";
- Mavens are people known for their objective knowledge and who pass it along without self interest;
- Salesmen are those communicators who do not only speak but also convince;
- Stickiness refers to the memorability of the message;
- The ideal context is when all of the above comes together at the right time.
Nothing really new for a communicator or marketer. But when was the last time you really thought about these?
How do you think the different referendum campaigns in Curacao did on these points?
Wednesday, June 3, 2009
Guestology
Guestology; Disney term
Not just knowing your guests in terms of demographics, psychographics, need, wants, experiences and expectations.
But understanding your guests: understanding their motivations and analyzing and interpreting objective data in such a way to yield profit enhancing marketing strategies.
The only way to do so is by engaging customers in conversations, through techniques such as focus groups and in-depth interviews.
Not just knowing your guests in terms of demographics, psychographics, need, wants, experiences and expectations.
But understanding your guests: understanding their motivations and analyzing and interpreting objective data in such a way to yield profit enhancing marketing strategies.
The only way to do so is by engaging customers in conversations, through techniques such as focus groups and in-depth interviews.
Analyzing results of Customer Satisfaction Surveys
Here are some interesting observations from Mark David Jones, President of Small World Alliances, and former Disney man:
Dissatisfied customer damage
You think 5% dissatisfied customers is acceptable? Think again. Consider that a dissatisfied customer broadcasts his dissatisfaction 20 to 30 times. And that word-of-mouth is the most powerful form of advertising.
To get the damage done by dissatisfied customers: Multiply your number of annual customers by the percentage of dissatisfied customers. Multiply that number by 20 or 30 for the number of negative advertising images you generate in a year. And remember that w-o-m weighs more than paid advertising.
Extremely satisfied customer earnings
On the other hand, a customer who is merely satisfied is not an advocate. For someone to be your advocate and generate positive word-of-mouth for you, s/he has to be "extremely satisfied". How many "extremely satisfied" customers do you have each year?
If your advertising budget is restrictive, as is often the case in a small market, you know where to invest your money for the most efficiency.
Mark David Jones gave a workshop in Curacao last Friday during CTO's 5th Tourism Human Resources Conference.
Monday, May 25, 2009
Online marketing - gaming
I spent a workday at the beach learning about the online gaming industry and the latest developments in online marketing in general. How much the industry has changed since I was first introduced to the concept many years ago. It has kept me wondering how to apply the learnings to other similar industries and markets.
Tuesday, April 28, 2009
Take the longer survey “Participating in the global economy through knowledge sourcing and providing”
If you are really interested in the topic and can spare a few more minutes, please also take the survey. If you can, please also ask a colleague, client or supplier to do so.
Knowledge Service Provider http://1236735131.provideknowledge.sgizmo.com/
Knowledge Service Sourcer http://1236735131.sourceknowledge.sgizmo.com/
Thank you in advance. If you want a copy of the report, be sure to include your email address.
Please feel free to leave any comments. The survey is in its beta phase, so I can use comments on the questionnaire also.
Some background
Reason for the poll and survey
Globality: everyone wanting to sell everything, including their knowledge, to anyone anywhere in the world.
Having worked across the Caribbean from Bermuda to Haiti and much of what is in between, I have developed an academic interest in the topic, especially with regard to small states. Can we apply strategic/business innovations produced in Curacao to St Lucian, Maltese, Andorran, Bajan, Cape Verdian businesses, markets and economies and vice versa?
The topic also interests me with regard to economic policies of small states. How can small states benefit from the globalization of knowledge?
Research Question
To what extent do KSP’s sell their services across borders, thus participating in the global knowledge economy? This with particular interest to KSP’s in small ststes/territories/markets and/or emerging markets
What are Knowledge Service Providers (KSP's) and Knowledge Service Sourcers (KSS)?
For the purpose of this study KSP’s are individuals or companies such as advisors, consultants, designers, health care providers, trainers, researchers, recruiters, lawyers, accountants, even artists, etc., in the broadest sense of the word.
KSS’s are all those individuals or companies who buy services from KSP’s established in their market or elsewhere
What's in it for you?
Since participants can elect to receive a copy of the report, you will get an insight into:
1. If you are ahead or behind the curve in terms of providing or sourcing knowledge across borders
2. What the key success factors to sell your services internationally
Monday, January 26, 2009
What to expect from a telephone survey
In my previous post I outlined when telephone surveys may be chosen over face-to-face (personal) surveys. What should you expect when you are called for a telephone survey?
- An interviewer that clearly states his/her first and last name and the company s/he is calling from.
- If you are called at an inconvenient time, you may ask to be called at another time. In our case, interviews are conducted from a central location. You may also call back.
- While the interviewer may ask your name, the information you provide will be treated confidentially. Your name is important for the research company when double checking the interviewers' work. It will not be released to our client, NEVER.
- A questionnaire that is designed to last no longer than 10 minutes. The actual length often depends on how much commentary the respondent delivers. You should know that, at each question, the interviewer can only record one of the options (multiple choice answers) she gives you. She cannot record any other comment. So, it is best to limit yourself to choosing one of the options. At the end of the interview you will always have a chance to make free flowing comments.
- You will not be called by a sales representative based on your answers. You will not be asked questions in a manner that suggests that your answers will be used to call you later to sell you something. This is a market research exercise, not an exercise to generate sales leads.
Telephone surveys vs face-to-face surveys
You may wonder why companies elect to do telephone surveys rather than face-to-face-surveys. We do so mostly for efficiency and speed. Convenience for the respondent and quality control may also play a role. How so?
- When the questionnaire is short (up to 10 minutes), it may take more time to travel from one respondent to another. Telephone interviews are more efficient.
- When the type of respondent are geographically dispersed, it may also take more time to travel from one respondent to another.
- The respondent may be very mobile or finds it inconvenient to make an appointment that lasts only 10 minutes. The same matter would be resolved faster over the phone.
- Since telephone interviews are usually conducted from a central location, under supervision, it is easier to control the quality of the interviews.
Telephone surveys are less personal. When the survey entails sensitive issues, this is always a reason try to decrease the respondent's possible discomfort. to For that reason, it is desirable, whenever possible, to inform respondents that they will be contacted and to give some background of the purpose of the survey. Read also my post What to expect from a telephone interview.
Friday, September 26, 2008
What to expect as a focus group participant?
So, you have been asked to participate in a "focus group". What now?
In our post What is a focus group? you can learn more about the purpose of a focus group.
Why have you been invited?
You are invited based on certain characteristics of yourself, your family, your business, etc. These often include age, gender, kids/no kids, lifestyle, type and size of business, or your function within a business.
Our recruiters often "think" you may qualify. They ask additional questions to be certain that you do. If you do, they will give you the date, time and location for your session. Often you cannot choose a different date because the characteristics of the participants vary according to the session.
What should you expect?
- A pleasant exchange of ideas guided by a moderator. Many participants find the groups very informative because you can learn about other solutions to the challenges you face.
- Five to eight other panelists, a moderator and often an assistant moderator will be present.
- Alist of topics that must be covered, but other than that it is an unstructured discussion.
- A moderator who is prepared to lead the discussion, but who is not an expert on the topic. Even if she is, she will not show it. She is there to learn from you!
- Your views to be listened to and valued. There are no right or wrong answers. This is not a test. Sometimes the group is asked to solve a problem. In those cases it is not the solution that is important, but the issues that participants raise in getting to the solution.
- Expect the question "why". "Why do you do that?" "Why do you think that?"
- Depending on the topic, the session may also be audio- or video recorded to assist in the analysis and report writing. The recordings will not be shared with the client or anyone else. Recordings are destroyed after the report is written.
- You will not be contacted by anyone based on your participation or what you said. This is not a session to generate sales leads.
- A reward in cash or kind for your input.
What do we expect from you?
- to arrive on time and stay the whole session
- if you must cancel, to do so in advance through your recruiter
- to come prepared to share your experience, ideas and reasons for those ideas
- to speak up, whether you agree with the popular view or not
- to give everybody a chance to speak and treat each other with respect
- to have fun
- if you have suggestions after the session, to please let us know through info@markstra.com
As a Certified Moderator, the real reward is to see the exchange, how people learn from each other and the fun they have. I always appreciate your presence and your input. I hope you decide to participate.
What is a focus group?
This article is posted especially for the benefit of those we ask to participate in our focus groups. It is an excerpt from the quintessential marketing research text book, “Marketing Research", by David Aaker. V. Kumar and George Day. Please also see our post "What to expect as a focus group participant".
Focus group studies are a qualitative research method.
"Qualitative research is done to obtain a basic feel for the problem before proceeding to the more analytical portion of the study.
[...] to find out what is in the consumer's mind
[...] to get a rough idea about the person's perspective
[...] to become oriented to the range an complexity of consumer activity and concerns."
"A focus group discussion is the process of obtaining possible ideas or solutions to a marketing problem from a group of respondents by discussing it. The emphasis in this method is on the results of group interaction when focused on a series of topics a discussion leader introduces. Each participant in a group of five to nine persons is encouraged to express views in each topic and to elaborate on or react to the views of the other participants."
"The focus group discussion offers participants more stimulation than an interview; presumably this makes new ideas and meaningful comments more likely. Among other advantages, it is claimed that discussions often prove more spontaneity and candor than can be expected in an interview. "
In the end one knows the range of consumer expectations and motivating factors, and thus which products or services to offer or how to improve existing ones.
Focus group studies are a qualitative research method.
"Qualitative research is done to obtain a basic feel for the problem before proceeding to the more analytical portion of the study.
[...] to find out what is in the consumer's mind
[...] to get a rough idea about the person's perspective
[...] to become oriented to the range an complexity of consumer activity and concerns."
"A focus group discussion is the process of obtaining possible ideas or solutions to a marketing problem from a group of respondents by discussing it. The emphasis in this method is on the results of group interaction when focused on a series of topics a discussion leader introduces. Each participant in a group of five to nine persons is encouraged to express views in each topic and to elaborate on or react to the views of the other participants."
"The focus group discussion offers participants more stimulation than an interview; presumably this makes new ideas and meaningful comments more likely. Among other advantages, it is claimed that discussions often prove more spontaneity and candor than can be expected in an interview. "
In the end one knows the range of consumer expectations and motivating factors, and thus which products or services to offer or how to improve existing ones.
Thursday, May 15, 2008
What are your destination’s “accidental” brands?
You don’t have to go to Jamaica to know that it has great beaches, rivers, waterfalls and flora. Then again, several Caribbean islands have those.
But, I don’t think anyone can leave Jamaica and not know what is unique and innate to Jamaica:
- Blue Mountain Coffee
- The Jamaican Bob Sled Team (with its own restaurant and merchandise at the airport)
- The colors of the Jamaican Flag (used in every imaginable tourist-related product)
- The colors of the Rastafarian movement (see above)
- Braids
- Jamaican Jerk
- Chicken-every-imaginable-style
- *Bob Marley*
What a great diversity: music, food, colors, entertainment, “boutique” java, sports and fashion.
And most sustainable and renewable.
Three Questions for you:
- What are your destination’s unique and innate accidental brands?
- How can they be exploited, preferably in a sustainable way?
- Is there something for every taste?
Why you should know the trends
Competition is tough. Those who survive and thrive are those who can come up with new product ideas, innovations, and effective strategies to get these to the customer… first (or almost first). Not any new product or customer care innovation or strategy. No, those ideas and innovations that appeal to your customer. And, alas, the speed of change in customer tastes and preferences. Generations amorph. Lifestyles change. Developments outside of your product category now influence yours like never before.
If you are in charge of innovation, customer care or strategy at your organization, how do you keep track? If you are on a small island, it’s a two-edged sword. What you see in the U.S. (or elsewhere) this year will be on your island at least a few months later. So, you have time to prepare. But, unless you spend enough time abroad and sit down to analyze what you see, you won’t know the trends.
That’s where a trend analyzer comes in handy. Michael Tchong of Ubercool, “The most influential trendspotter in America”, according to the London Daily Telegraph, will be in Curacao to take us through his analysis of global trends this coming May 29th. He is hosted by the Hospitality Sales and Marketing Association International Curacao.
Mr. Tchong has spoken, among others, for Evian North America, Diageo, Euroforum in Rotterdam, several realtor associations in the U.S., Visa Europe in Istanbul, Luxury Home Marketing, Ubertrends in Colombia, several hospitality groups across the U.S. and at the Harvard Business Club.
He will take us on a whirlwind tour of the most telling trends and leaving you infused with new ideas that make sense. As a professional you cannot afford to not be aware of possible innovations (unless you can afford not to have a job). But, even if you are not specifically in charge of innovations, his presentation will leave you impressed and inspired.
Visit www.hsmaicuracao.org for more information and to register.
If you are in charge of innovation, customer care or strategy at your organization, how do you keep track? If you are on a small island, it’s a two-edged sword. What you see in the U.S. (or elsewhere) this year will be on your island at least a few months later. So, you have time to prepare. But, unless you spend enough time abroad and sit down to analyze what you see, you won’t know the trends.
That’s where a trend analyzer comes in handy. Michael Tchong of Ubercool, “The most influential trendspotter in America”, according to the London Daily Telegraph, will be in Curacao to take us through his analysis of global trends this coming May 29th. He is hosted by the Hospitality Sales and Marketing Association International Curacao.
Mr. Tchong has spoken, among others, for Evian North America, Diageo, Euroforum in Rotterdam, several realtor associations in the U.S., Visa Europe in Istanbul, Luxury Home Marketing, Ubertrends in Colombia, several hospitality groups across the U.S. and at the Harvard Business Club.
He will take us on a whirlwind tour of the most telling trends and leaving you infused with new ideas that make sense. As a professional you cannot afford to not be aware of possible innovations (unless you can afford not to have a job). But, even if you are not specifically in charge of innovations, his presentation will leave you impressed and inspired.
Visit www.hsmaicuracao.org for more information and to register.
Friday, January 4, 2008
Marketing, Advertising, Public Relations. What's the difference Part II
This is the second of a three part series. The previous post dealt with Public Relations. The next will deal with Marketing.
As competition increases, the focus on marketing also increases. When I started working in marketing in the Caribbean 20 years ago, very few companies had marketing staff. Today, that's the exception rather than the rule. Unfortunately though, it is not always clear to non-marketers and some marketers alike what the function encompasses. Terms such as public relations, advertising and marketing are sometimes used interchangeably. When we do so, we omit to consider all the tools available to attract good customers.
This is an effort to provide some clarification.
Advertising
When competition increased, companies started to try to explicitly convince buyers to buy their product. Up to quite recently accountants and lawyers in Curacao did not do so. Now they have started putting up advertising, telling us what they are good at. Soap manufacturers went down this path many decades ago. Banks started some 20 years ago and now are at it in full force.
Advertising is "any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor" (Armstrong, Kotler). It involves designing advertisements and campaigns and placing these on radio, TV, billboard, Internet, in the paper or magazines, etc. Some companies, "advertising agencies", are able to do everything following a well-thought out strategy. Others do part of the process. Graphic designers in principle just design an advertisement following the specific instruction of the advertiser/client. Copywriters just write a text following instructions of others. Independent photographers, video producers, etc. in principle also follow instructions of others. Their creative juices should be flowing within boundaries set by the client or determined by a strategy.
Marketing communication
Advertising and public relations are now often referred to as marketing communication.
(Sales) Promotion
The term "promotion" may cause confusion. It is conveniently used in the four marketing P's to denote everything that has to do with communicating with the client: advertising, public relations, direct marketing, sales, customer service, and sales promotion.
However, if you want to use the terms correctly then (Sales) Promotion is "short-term incentives to encourage the purchase or the sale of a product or service" (Armstrong, Kotler). Think of sweepstakes, raffles, buy-one-get-one-free, give-aways, coupons, programs in which you save and get something later, etc. In Curacao we often call them "kampana" or "speshal".
Why are they used? Everybody already has a toothpaste. If you are introducing a new toothpaste you must convince the customer to leave his old toothpaste and buy yours. An incentive in the form of a gift, lower price, a free trial, etc. may do so. A good sales promotion always induces the customer to "ACT NOW" or its gone.
Read about Marketing in the next post.
As competition increases, the focus on marketing also increases. When I started working in marketing in the Caribbean 20 years ago, very few companies had marketing staff. Today, that's the exception rather than the rule. Unfortunately though, it is not always clear to non-marketers and some marketers alike what the function encompasses. Terms such as public relations, advertising and marketing are sometimes used interchangeably. When we do so, we omit to consider all the tools available to attract good customers.
This is an effort to provide some clarification.
Advertising
When competition increased, companies started to try to explicitly convince buyers to buy their product. Up to quite recently accountants and lawyers in Curacao did not do so. Now they have started putting up advertising, telling us what they are good at. Soap manufacturers went down this path many decades ago. Banks started some 20 years ago and now are at it in full force.
Advertising is "any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor" (Armstrong, Kotler). It involves designing advertisements and campaigns and placing these on radio, TV, billboard, Internet, in the paper or magazines, etc. Some companies, "advertising agencies", are able to do everything following a well-thought out strategy. Others do part of the process. Graphic designers in principle just design an advertisement following the specific instruction of the advertiser/client. Copywriters just write a text following instructions of others. Independent photographers, video producers, etc. in principle also follow instructions of others. Their creative juices should be flowing within boundaries set by the client or determined by a strategy.
Marketing communication
Advertising and public relations are now often referred to as marketing communication.
(Sales) Promotion
The term "promotion" may cause confusion. It is conveniently used in the four marketing P's to denote everything that has to do with communicating with the client: advertising, public relations, direct marketing, sales, customer service, and sales promotion.
However, if you want to use the terms correctly then (Sales) Promotion is "short-term incentives to encourage the purchase or the sale of a product or service" (Armstrong, Kotler). Think of sweepstakes, raffles, buy-one-get-one-free, give-aways, coupons, programs in which you save and get something later, etc. In Curacao we often call them "kampana" or "speshal".
Why are they used? Everybody already has a toothpaste. If you are introducing a new toothpaste you must convince the customer to leave his old toothpaste and buy yours. An incentive in the form of a gift, lower price, a free trial, etc. may do so. A good sales promotion always induces the customer to "ACT NOW" or its gone.
Read about Marketing in the next post.
Thursday, January 3, 2008
The marketing of green: 5 ways to be part of the trend
Green has taken center stage, not just because of global warming, but also because of the price of oil. Finally going green also makes good business sense immediately (the way business people, unfortunately, like it).
Here are five tips to ride the trend. Remember though, you can ride the trend, but you must be sincere. Otherwise it will hurt your brand.
- Use green to add value for your customer. I always thought a restaurant with its own vegetable, flower or herb garden is a neat idea. Now, it reduces transportation costs... and there is really nothing to beat freshly picked vegetables on the plate and flowers on the table.
- Use green to attract customer segments with a special affinity for the environment. You can imagine that if you are the only company in your category known to reduce, reuse or recycle water, energy, bags, etc., you may appeal to certain segments. This strategy works best for companies that are seen to provide a near-commodity, such as banks, insurers, and airlines. There are not so many other tangible sources of differentiation.
- Develop new uses for your products using green. Curacao cantaloupe is an additional way to use Curacao liqueur.
- Support efforts that reuse the waste that your company produces. In Jakarta, my friend Roy and his team make the coolest laptop bags from empty tubes of toothpaste found on the streets.
- Use green to distinguish your brand or company from others for a short moment. At MarkStra, our corporate gift this year was a reusable crate for shopping and a list of tips. Let me say that I consciously try to reduce our footprint through composting, planting trees, and several other efforts. But, I admit... the empty reusable crate over the holidays was to distinguish us from the habitual well-wrapped baskets well-filled with goodies.
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