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Made in the USA: The ‘Secret Sauce’ Needed for Success?

0 comments By Chad Thiele Filed in Advertising, brand, market research, Package, Packaging, Product, retail Tagged with advertising, brand, market research, package, packaging, product, retail March 11th, 2013 @ 8:00 am

Two years ago, I attended an AMA South Florida event in Miami, Florida. While the speaker was interesting, it was something that an attendee from either Central or South America had mentioned to me that is still stuck in my head.

He had mentioned that people in his city love the United States so much so that, in that city, products that are made in America fly off the store shelves.

This is the kind of insight that I think businesses could use in some way.

The Value of ‘Made in America’

In an article on Inc.com, Eric Schurenberg writes, “Think of the label “Made in America.” What brand images come to mind? Odds are, you’ve conjured up a picture of one of two scenes.”

“First, there’s that rugged, sturdy (if underappreciated), no-frills, American quality,” writes Schurenberg. “It’s the stuff of Chrysler Automotive’s much-praised “Imported from Detroit” ad, and Bruce Springsteen’s “Born in the USA.” If you buy this two-fisted version of “Made in the USA,” you also likely buy American because you’re patriotic. You don’t care if elites would rather buy a BMW.”

“The other Made-in-America vision embraces an artisanal, moral, locavore sensibility,” continues Schurenberg. “Think of Whole Foods, or, in apparel, Brooklyn Industries. In this vision, you buy boutique American goods because they’re holier-than-corporate and show off your elevated taste (not to mention your ability to afford such taste).”

However, if one of these two images comes to mind, Schurenberg thinks you are probably selling “Made in America” short.

As he writes in the article, “The label still has far more international cachet than Americans are likely to give it credit for. Even in the United States, buyers have proven that they’ll pay considerably more for some kinds of American-made goods–simply because they expect them to be a better value.”

In the remainder of the article, Schurenberg makes a great argument for the value of “Made in America” and how the label can bring with it a serious competitive advantage.

A recent Ad Age article written by Lauren Sherman provides information that supports Schurenberg’s viewpoint.

In the article, Sherman writes, “Not since the 1970’s has “Made in America” been such a hot way to market your product.”

Sherman points out that, “In a September survey of more than 1,000 Americans by the Boston Consulting Group, more than 80% said they preferred U.S.-made goods, and that they would pay more for said goods. The same questions were asked of 1,000 Chinese consumers: 47% prefer Made in America.”

However, Sherman also cautions brands that “Made in America” only goes so far. She says that it often comes down to quality vs. a deal. As she states, “When American-made goods deliver both, it works.”

Final Thoughts

In some geographic markets, the fact that a product is made in America might be more important than you think.

Therefore, brands might want to highlight the fact that their products are made in America—even when they are selling them to consumers abroad.

In some cases, it might be as simple as making the “Made in USA” label larger so that it can be conspicuously displayed for all to see.

However, businesses need to keep in mind that other areas of the world don’t share that love of our country or hold American-made products in such high regard. In those parts of the world, the fact that the product is made in America probably shouldn’t be highlighted as clearly, if at all.

The key is to do the research to find out whether or not the fact that the product is made in America has a positive or negative effect on purchase decisions among potential customers in a given geographic market and then test to see if different marketing techniques or product designs increase sales.

Photo credit: kenny_lex on Flickr.

Chad Thiele

Marketing analyst and strategist, freelance writer, content curator, applied sociologist, and a proud UW-Madison alumnus. My goal is to help businesses achieve their marketing objectives and business goals while gaining additional experience in the exciting world of digital marketing. I'm currently looking for my next career challenge. Please feel free to contact me anytime at: chadjthiele@gmail.com.

The Geography of Marketing: The Global Marketplace

0 comments By Chad Thiele Filed in Advertising, brand, branding, business, JWT, market research, target marketing, technology, trends Tagged with advertising, brand, branding, business, JWT, market research, target marketing, technology, trends March 3rd, 2013 @ 3:00 pm

As technology advances, it is becoming easier for people to connect with other people around the globe.

Rapid advancements in technology are also opening up new markets to businesses that wouldn’t have even dreamed of selling their products and services internationally just a few years ago.

Although international marketing is not my area of expertise, I believe that it is going to become more important for businesses of all sizes in the very near future. With this in mind, I have begun to do some research on the topic.

In the early stages of the process, three things are already becoming clear. 1) The quality of the product or service is becoming more important as businesses compete with other businesses that are located anywhere on the planet. 2) Marketing campaigns need to be tailored to appeal to individual markets and cultural differences need to be recognized. 3) It is becoming increasingly more important for businesses to do the research to identify what the previous two items on my list actually mean to the business and its potential customers (i.e., how do individual markets define quality and what factors influence how effective a marketing campaign will be when it is used to target potential customers living in other parts of the world.)

Globalization Does Not Imply Homogenization

In an article in the September 15, 2010 issue of the American Marketing Association’s Marketing News, Nigel Hollis, Executive Vice President and Chief Global Analyst at Millward Brown Inc., states, “Culture—the history, beliefs, customs, habits and values of a group of people—determines the ways in which we respond to the world around us, including the brands we buy. Local culture helps establish our values and priorities. It determines our taste for food, aesthetic preferences and communication.”

“Increasingly, however, people everywhere are exposed to foreign cultures through commerce, travel and media,” Hollis continues. “But just how strong is the influence of this global culture when compared to the local cultures in which we are born and raised? While the global culture grows increasingly prominent, my research suggests that the influence of local culture still is very important to brand success.”

Hollis goes on to point out that for brands with global aspirations, the influence of local culture can present significant problems. The combination of product formulations, positioning and communications strategy that made the brand successful in one part of the world may need to be adjusted to build a connection with consumers in new markets. Of these, Hollis feels that communication is probably the most susceptible to the influence of culture.

He also warns that the days of big brands gaining huge market share just by introducing their products and services to new markets are over.

According to Hollis, “It used to be that multinationals could launch a brand into a developing economy conﬁdent that their product would be better and more desirable than the local competition. Increasingly, this expectation is unwarranted. With product superiority no longer guaranteed, brands must compete for hearts as well as minds—and to win someone’s heart, you must engage him on his own terms and in his own language. Foreign brands increasingly will need to blend into local cultures if they are to become successful.”

He also points out that the Internet may, in fact, strengthen the connection that consumers have to their local culture.

“People in countries as diverse as China, Turkey and Brazil evince a strong desire to maintain their local culture,” writes Hollis. “In the future, they may celebrate their own cultural identities by choosing local foods, goods and entertainment over Western alternatives. And far from promoting a global village, the Internet actually may be promoting hundreds of local ones. The success of local Internet brands such as search engine Baidu in China and social network Mixi in Japan—as well as the growing trend toward local language blogging—suggests that far from undermining local culture, the Internet instead may be empowering it.”

The Middle East & North Africa Region

A recent report that was released by JWT MENA, titled “JWT MENA: 8 Trends for 2013,” provides insights about the Middle East and North Africa (MENA) region. Interestingly, the report appears to verify that Nigel Hollis was indeed correct, at least for this particular part of the world.

According to the JWT report, “‘Arabification’ is definitely back. Whereas in the past, Arabs have looked to the West for inspiration, today, the region in entirety is looking inwards, supporting entrepreneurialism and its own national best interest. Rather than wallow in negativity, Millennials are optimistically looking forward and up, with a resilience and resourcefulness in addressing adversity. Consumer Confidence is up +6 points in KSA and +5 points in Egypt vs. 2011, shaping the ME of tomorrow, which will be pioneered by the dawn of ‘great brands from the Middle East’ as opposed to ‘great Middle Eastern brands’, towards self-sustainable individuals and economies.”

The report goes on to point out that about nine in 10 MENA adults agree with the statement, “I prefer products from my country over Western products if they are of better quality,” and a similar percentage agree with the statement, “I prefer products from my country over Western products if they are ‘unique.’” Furthermore, about three quarters of MENA adults agree with the statement, “I prefer products from my country over Western products if they are cheaper.”

The report concludes that, “At the end of the day, people are not just buying national brands, they’re buying a great brand and that’s the most important thing.”

If your business is marketing its products or services to consumers living in the Middle East or North Africa, I’d suggest reading this report. It provides great insights about the Middle East and North Africa, including interesting case studies from brands that have been successful in this region.

Final Thoughts

It is my belief that advancements in technology, including the increased reliance on the Internet, will make International marketing even more important in the near future.

However, while the Internet gives businesses the opportunity to sell their products and services to markets that they wouldn’t have even dreamed of just a few years ago, just introducing a product or service to a new market is not enough.

In order to be successful, brands may need to adjust everything from the communications strategy to the product itself, in order to appeal to consumers in other parts of the world.

As Nigel Hollis states at the end of his article in the AMA’s Marketing News, “Successful global brands will embrace the diversity of individuals, communities and cultures around the world, rather than seeking to impose one-size-fits-all templates irrespective of local needs and desires.”

Photo credits: stevecadman and Staeiou on Flickr.

Chad Thiele

Some Thoughts on the 2012 Super Bowl Commercials

0 comments By Chad Thiele Filed in blogs, brand, social media, technology, television, word of mouth advertising Tagged with Blogs, brand, social media, technology, television, word-of-mouth advertising February 8th, 2012 @ 6:00 pm

Super Bowl XLVI set the record for the most-watched telecast in U.S. history.

The Nielsen Company said on Monday that an estimated 111.3 million people in the U.S. watched the game on television on Sunday night.

People who tuned in to watch the game itself were treated to one of the most exciting endings in recent years.

However, for those viewers who tuned in to watch the commercials…

Releasing the Commercials Early

Last year, Volkswagen released the Darth Vader-themed Super Bowl spot ahead of time and it received a lot of buzz on the Internet. That was a great move for Volkswagen because, at the time, it was a fairly unique idea. (It also didn’t hurt that they had a really great commercial.)

This year, many brands tried to replicate Volkswagen’s success by releasing their commercials on the Internet prior to the game.

For some brands, it was a good move because many people were talking about their commercials online. That’s a good thing, as it helps brands get more out of their investment.

However, as many people tweeted and still others blogged about, the 2012 commercials didn’t seem as distinctive as they have in the past. In other words, in the past, the commercials were an event in and of themselves. In contrast, to many people who watched the commercials ahead of time, some of the 2012 commercials seemed like average, everyday commercials, not Super Bowl-caliber commercials.

In a blog post, Tom Siebert predicts that, “Next year, I’m guessing you’ll see less of it, because releasing an ad early is no longer anything special. Most of the buzz for the early ads for VW, Acura, CR-V, all burned off by game time, and the best ads were the ones that came out of nowhere and surprised.”

Whether or not he is correct will depend on how much brands value the pregame buzz online versus their desire to surprise and delight viewers by premiering their commercials during the game. The decision will also need to be based on how many people are still talking about their commercials a few months from now, or even next year.

Final Thoughts

Several people have pointed out that they don’t feel that any of the 2012 Super Bowl commercials were as memorable as last year’s Chrysler “Made in Detroit” ad that featured Eminem or Volkswagen’s “The Force” commercial.

The early release of the commercials online might have had an impact on the way that some people perceived the 2012 Super Bowl commercials.

It will be interesting to see what brands do in the future… their decision is not going to be as easy as one might think.

On the one hand, they could choose to release their commercials early to get the online buzz. On the other hand, they could choose to wait until the day of the game to unveil their commercials in order to make them something that viewers look forward to.

In the end, it might be a year-to-year decision with the contrarian brand (i.e., the brand that does the opposite of what most of the other brands are doing) getting the best results.

However, for either strategy to work, brands still need to create a really great commercial to air on Super Bowl Sunday.

Photo credit: The Daring Librarian on Flickr.

Chad Thiele

Why Is Cause-Related Marketing So Important? For Many Brands, the Answer Is Y

0 comments By Chad Thiele Filed in brand, branding, cause-related marketing, Gen Y, public relations, retail, word of mouth advertising Tagged with brand, branding, cause-related marketing, Gen Y, public relations, retail, word-of-mouth advertising January 31st, 2012 @ 3:00 pm

BusinessDictionary.com defines cause-related marketing as, “Joint funding and promotional strategy in which a firm’s sales are linked (and a percentage of the sales revenue is donated) to a charity or other public cause. However, unlike philanthropy, money spent in cause-related marketing is considered an expense and is expected to show a return.”

A recent AdAge article pointed out some statistics from two studies that highlight the importance of cause-related marketing.

The first study mentioned was the 2012 Sponsorship Report by IEG Consulting. According to that report, cause-related marketing in North America is projected to grow 3.1% this year to $1.7 billion.

The second study mentioned in the AdAge article was the 2010 Cone Cause Evolution Study. That study pointed out that in 2010, 83% of Americans over the age of 18 wished that more of the products, services and retailers that they use would support causes.

The last figure alone should help brands understand the importance of cause-related marketing.

For brands that sell products and services that are targeted to Gen Y consumers, cause-related marketing might be even more important.

Cause-Related Marketing and Gen Y

Generation Y (Gen Y), also known as the Millennial Generation (or Millennials), are particularly interested in supporting brands that support the causes that they care about.

In a blog post on blog.barkleyus.com, Jeff Fromm, SVP of Sales, Marketing & Innovation at Barkley, points out that, “This generation’s purchase decisions are heavily influenced by their opinions of a company’s cause marketing initiatives. They also value charitable contributions via cause marketing because of the ease of participation and the scope of impact that a corporate-based charitable program can have in comparison to an individual donation.”

Fromm goes on to mention that showing Gen Yers that the brand cares is critical for brands that are searching for ways to engage and tap into this generation of consumers.

Kit Yarrow, Ph.D., and Jayne O’Donnell also emphasize that cause-related marketing is important to Gen Y consumers.

In their book, “Gen Buy: How Tweens, Teens, and Twenty-Somethings Are Revolutionizing Retail,” (affiliate link) they state that, “Indeed, one of the more popular means of getting close to Gen Yers is through their interests and their favorite causes. Gen Yers, in part by virtue of their age but also because of our more superficial society, are yearning for purpose and want to belong to something bigger than themselves. They are often genuinely attuned to and passionate about causes, but there are other reasons why this technique has worked so well. Causes also add purpose and meaning to shopping—and sometimes just enough added benefit to rationalize a purchase. Being seen by others as being passionate about a cause is en vogue—and it unites people together.”

Yarrow and O’Donnell also point out that, “Businesses that support causes also appear to be more compassionate and socially responsible than those that don’t, which is reassuring and a stamp of quality to Gen Yers. Many Gen Yers make it their business to support the brands and retailers that they perceive to be good to their employees, good for the environment, or doing something good for the world.”

Final Thoughts

Cause-related marketing can potentially be a win-win-win for the cause, the brand, and the consumer.

The cause/nonprofit organization that the brand partners with gets support in the form of money or other resources.

The brand will hopefully get an image lift with consumers by being associated with the cause, which should translate into increased sales. (Note: Cause-related marketing could potentially backfire if the brand comes off as insincere or hypocritical. As the AdAge article points out, brands also might not receive the desired results if the cause is not aligned with the target market.)

Finally, if the cause-related marketing campaign is properly executed, consumers benefit by being able to feel like they have made a difference as a result of making a purchase. In the process, they get a positive feeling about themselves and the brand.

As shown, Gen Y consumers are extremely receptive to cause-related marketing campaigns for many reasons.

Gen Yers are also very comfortable with technology and social media, in particular.

Therefore, if a cause-related marketing campaign resonates with them, there is a good chance that they will let others know about it online. In other words, cause-related marketing could potentially generate positive word-of-mouth mentions.

This is why brands that are trying to reach Gen Y consumers should consider adding cause-related marketing to their marketing mix.

Photo credit: becomeunreal on Flickr.

Chad Thiele

Your Successful Marketing Campaigns Might Be Hurting Your Business

0 comments By Chad Thiele Filed in brand, branding, direct marketing, email marketing Tagged with brand, branding, direct marketing, email marketing, spam December 6th, 2011 @ 3:00 pm

When you measure the success of your marketing campaigns, are you looking at all the right metrics? And, are you defining success correctly?

Depending on what you are measuring and how success is defined, some of your most successful marketing campaigns could be hurting your business in the long run.

Need an example?

Okay, let’s focus on email marketing.

Specifically, let’s look at the most dreaded form of email marketing: Spam.

Spam Is in the Eye of the Beholder

Merriam-Webster defines spam as, “unsolicited usually commercial email sent to a large number of addresses.”

In his book, titled “The Big Red Fez: How to Make Any Web Site Better,” (affiliate link) Seth Godin says that he doesn’t have a definition of spam. Instead, he believes that unsolicited email is whatever the recipient defines as unsolicited.

He gives an example of an email that he felt was unsolicited.

As a result of receiving the email, he trusts the business less, is less likely to read their email, and is less likely to sign up for something new from them.

Godin goes on to say, “Did the brand manager get a 5 percent sign-up rate? Probably. Was it profitable, at least in the short run? Definitely. But some day, they’ll realize that it cost them something big with the other 95 percent of their customer base.”

Now, yes, I am aware that this is only Seth Godin’s opinion, and an n of 1 does not constitute a trend.

But, Seth Godin is a very intelligent guy. And, I think he was on to something.

In my opinion, this is a concept that businesses should think about more often.

Final Thoughts

As I have said before, businesses need to measure the success of their marketing campaigns in order to make adjustments and justify the expenses to senior management.

There are many ways that marketing campaigns can be measured. This is particularly true in the online world.

However, some of the marketing campaigns that businesses consider successful and profitable in the short term might actually be costing them more than they think when lost customers and future revenues are factored in.

This concept doesn’t only apply to email marketing.

The long-term effects of a marketing campaign should be considered when businesses do any kind of marketing.

This is just something to think about.

Photo credit: billibala on Flickr.