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DirectMarketingMBA

by Susan 

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Monday, June 30, 2003

Google Adwords v. eBay/AdMarketPlace - Battle for the Bucks

 



With its introduction of Keywords on eBay, powered by AdMarketPlace, perhaps the reason for the eBay's less than warm reception to the concept of Froogle has become a little more clear. Since Google now has an alliance with Amazon, this could shape up to be a defining battle in the way ads are deployed to drive sales within shopping sites.

This new eBay ad model does solve half of the problem of the vicious cycle, since the "eyeballs" that belong to the shoppers doing the searching found the banner on eBay, rather than on a third party site.

Side note, I always appreciate good spin -- check out the AdMarketplace boilerplate in the press release announcing Keywords on eBay: "AdMarketplace.net is the Web's first search marketing auction site to deliver graphic ads. Developed by Conducive Corporation, AdMarketplace connects search advertising buyers and sellers through a streamlined, self-service auction environment. AdMarketplace's Founders and Senior Management Team comprise leaders who have helped to build some of the Internet's largest and most successful companies, with a proven track record of success in both traditional and online media."

Small distinction in the delivery of graphic ads v. the plain (but highly effective) text versions delivered by Google AdWords. I guess you take distinction where you find it, and the challenge will be to add value with yet another graphic distraction on eBay pages. For Google, it has always been about relevance and the purity of the search.

I just set up a campaign, so watch for more info on how this works, especially v. AdWords.
Saturday, June 28, 2003



We're Only Human



Stephen J. Dubner's article Calculating the Irrational in Economics in today's issue of The New York Times was refreshing in that it showed a glimmer of light at the end of the tunnel with regard to the use of common sense in economic policy.

As traders boo'ed interest rates that didn't dip low enough, it was also apparent that even the lowest interest rates don't affect the economy like they used to. When what you've always done no longer works, it's time to get purple and do something remarkable, so the economists decided to hold a conference called "How Humans Behave."

Although to me it's remarkable that the makers of fiscal and monetary policy have rarely considered their views, Behaviorists have long been a minority among economists.There is a perception that behavioral science is inexact at best, since it deals with emotions and patterns which are not easily quantified. In today's article, Dubner wrote:

"Among the behaviorists, there is the common sentiment that economics has been ruined by math. "Neoclassical economists came along in the mid-19th century and wanted to mathematize the new science of economics," said George Loewenstein, a professor at Carnegie Mellon University. "They couldn't include `the passions,' or emotions, in their models, because they were too unruly, too complex. But they also thought that the emotions were unknowable."

Mr. Loewenstein described how he and his colleagues want to prove otherwise — that not only are emotions not unknowable but that when it comes to money, they may be more powerful than math. This is why Mr. Loewenstein studies how people make financial choices while they are experiencing various degrees of sadness, hunger and sexual arousal. This is why Colin Camerer has become a student of brain imaging, trying to identify where a subject's brain lights up when, for instance, a lowball offer leaves him disgusted. "


Although the merits of applying behavioral research to fiscal and monetary policy seem painfully obvious to marketers and those who study customer behavior, the fact that the economists are even listening to behavioral theories is a significant step. Although no new text books will be cropping up soon espousing behavioral theories, necessity, in this case, America's "illogical" lack of planned response to plummeting interest rates has forced traditional economists to try even this to restore the country to financial stability. Kind of like going back and reading the directions, in this case, the basics of consumer behavior.
Friday, June 27, 2003



Catch the Bzz



It's no surprise that word of mouth referrals are the most effective marketing tool available. BzzAgent, an emerging marketing services company has found a way to harness the power of referrals by creating a framework for focusing, measuring and analyzing the "buzz" created about new products and services.

Using a network of BzzAgents, actual users of the products who are willing to tell others about their experience, BzzAgent is able to capture data on how buzz spreads and what messages are being communicated. This data is more valuable even than focus group results, since the feedback is totally unpaid and unobserved.

Bzz agent is the 99th Cow in Seth Godin's 99 Cowscompanion to Purple Cow. Purple Cowneeded no advertising to propell it to the top of this summer's must-read list of business books, thanks to BzzAgent. Read 99 Cows to learn more.

Although BzzAgents can earn points for Bzzing that can be redeemed for rewards, there is no payment for buzzing. Unlike campaigns relying on paid "shills," the buzz generated by BzzAgents is not canned, thus it's much more effective than deceptive attempts to create artificial buzz using paid "real people."

Are you a consumer products marketer? You should talk to these guys. If you fill out this form, you'll get a response from Dave or one of his staff who can tell you more about this cool new way to harness and measure the Bzz about your company and its products.
Wednesday, June 25, 2003



What if we asked the customer?

With the end to yet another quarter comes the usual sales push and, with it, the usual objections. Jeffery Gitomer writes a great deal about the sales relationship, and his latest column in the Business Journals Online is a gem.Sales Moves - bizjournals.com lists more than 20 of the most common reasons things aren't selling that I've heard lately.

The real value to this article is not in commiseration over the negatives, but rather, it details a rather radical way to "overcome" objections -- find out what's important to your customer now and help him or her get it.

Whether that's solving a thorny IT challenge, keeping employees motivated, or providing innovative financing solutions, your pitch must be relevant enough to cut through the resistance inherent in a down economy by showing your prospects the light at the end of the tunnel, made possible by your solution!

Remember, it's all about the customer...
Sunday, June 22, 2003



Almost like being there



From AuctionBytes one of my favorite resources for Online sellers, comes a free service to help you feel like you're in Orlando at eBay live, even if you can't attend in person. ebaylivecards

Purple Moo!!



Reaching Tweens


One thing about going to a seminar like PurpleCowRoundup is that it forces you to examine what you're doing in a whole different way, and it creates discomfort to do that.

I once heard that a good way to design sidewalks for a university campus was to build the buildings, then wait for the students to wear the natural paths in between so that you would know where to put the sidewalks. Yet, in most campuses, you will see sidewalks that are rarely used, while certain patches of grass never grow due to the foot traffic. The same thing applies to promotions.

My fear is that this group of emerging consumers, starting with the "tweens," more than any other in history, will take control of their buying relationships rather than giving that control to marketers. Looking at "customer evangelism," which relies on unpaid referrals by a customer's trusted peers v. advertising where the marketer delivers the message that it thinks the customer wants to hear, requires a fundamental shift in our basic belief as marketers. In this case, the believe would be that we need to be all things to all people and that we need to market the same way no matter where we are. While for a McDonald's that is definitely a consideration, for most of us, we don't need to worry about going outside our niches, and we shouldn't.

Another big concept is that it's ok to offend some people. For anything to be remarkable, there needs to be something to talk about. If we don't offend our target market, we can be successful.

Today, our market controls us, we do not control our markets. Wanted to share some thoughts from my blog today related to this concept and a story you may have read today in your morning paper that appeared on reuters.com .

Reaching Tweens



Reuters today carried a story (Reuters | Latest Financial News / Full News Coverage) about the "Tween" market. These 7- to14- year-olds are evidently not quite old enough to be teens, and too old to be called children. While the marketer in my nature admires the thought of segmenting demographics into this more granular differentiation, I have some concerns regarding the implications of the phenomenon it describes.

Think about it, the consumer marketers have so much perceived power over these formative consumers, that they are using product advertising to set the values of these young people. And, after what I learned last week about the decline of marketing as we know it, this quote,"Some marketing estimates put their buying power in the United States alone at $300 billion a year -- a lot of money to miss out on if you get the tone of a campaign wrong or go with the wrong role model" becomes rather scary from a marketer perspective.

Guess what, folks? The campaigns that the huge consumer brands are trying to get right all rely on the old model for success. If 83% of TIVO users skip all commercials and this age group has grown up with computers, VCRs and DVDs, is it a huge stretch to assume that they are the least likely to be swayed by ads long term? Doing things the old way means that the odds of a miss based on an interruptive campaign are magnified.

Also, I question the arrogance of assuming to orchestrate the choice of a spokesperson to this target market. This is the same thinking that lead to positioning Brittany as a virgin while gyrating provocatively on stage in tiny tops, as though this group doesn't have enough conflicting feelings about their emerging sexuality. And, by the way, what the heck does that have to do with Pepsi, anyway?

The most valuable piece of information in this article, regarding the success of the Olson twins, Mary Kate and Ashley, as celebrity spokespersons and endorsers is found almost as an afterthought. Why are they effective? First, all of their products are created based on what they would like themselves, and they are perceived by the market as peers, since these kids virtually all grew up together on TV. There is a perception of trust created by this relationship that nearly mimics that of a friend.

The reason for the success of promotions by the Olson twins is that tweens trust them and, thus, advertising takes on more of the quality of a personal referral. In mirroring their own preferences in the products they create and endorse, the twins ask the target market what appeals to them, rather than creating an image that tweens should aspire to emulate. They are credible customer evangelists for this segment.

Marketers who listen rather than manipulate will be those that the next generation will demand. For marketers who learn that lesson before the crisis hits, the rewards of listening and acting based on what they learn from their customers will be huge.

This is a pivotal time in the practice of marketing. The most successful future marketers will be those courageous pioneers like the Krispy Kremes and In-N-Out Burgers of the world who are willing to challenge the "doctrines" of marketing and blaze new trails based on where the customers, not the consultants, lead.
Saturday, June 21, 2003



Zippos to Re$pectfuls - What kind of online shopper are you?

Stats: Free Shipping Delivers Online Customers includes some new categories of customer behavior that range from shoppers who zip around the Web, but who purchase little and are not retainable, to Re$pectfuls, who are high spenders with high retainability.



On first glance, it might appear that Zippos could be ignored in your marketing efforts, but further inspection shows that these folks are very likely to use the Web to research offline purchases. This makes them an excellent target audience for high-involvement customer purchases, which generally carry high margins. (I suspect there may be a few sneezers in the group, as well.)



Considering your customer mix in the context of Web buying behavior will help you create the offers that will be most effective to each customer.



What would happen if we involved the User in the User Interface?


If you haven't read Mark Hurst's Good Experience site and you sell things Online, or just care about your customers, visit today. In this column, part of today's eNewsletter, Mark has identified a situation many of us can relate to if we are in the role of change agent.

Good Experience - The Most Important User Experience Method tells what can happen when an organization is not changed along with the user interface. My favorite quote from the article, is Mark's astute observation that, "Changing the organization is the most difficult and most important part of user experience work."


Said another way: you can give the smartest answers in the world, make the most brilliant recommendations; but if the organization doesn't actually change the user experience, it's all worthless. Your final report, nicely printed and bound, with such carefully chosen words, will gather dust in some forgotten pile, forever."


If we are not able to sell the benefits of using new Web functionality, new CRM systems, or any other User Interface improvement internally, then users will work around the system, and not use it to its full potential.

There are many reasons user empowerment (both customer self-service and internal process automation) can be threatening to an organization, and especially to those who manage the processes being automated.

For that reason, radical change needs, in my opinion, to start with a careful observation of the real areas that are causing you and your customers pain in doing business. Let those who feel the pain participate in helping solve it, whether they are customers or employees. You can use Web Analytics, call observations, and sales data to find out what's really going on, as opposed to surveys, since customers responding to surveys can be either overly nice so as not to hurt our feelings, or overly harsh, with an agenda.

Either way, survey responders feel strongly about your company. Those who are strongly positive should be encouraged to share their experience. Those with negative feedback should be listened to and learned from. Those in the middle, though, are the ones who came to your site once, may or may not have purchased from you, and may or may not come back. Finding out why they left can help you improve your site, and better define your unique value within your niche.


Wednesday, June 18, 2003



Delightful Service



Within minutes of sending the thoughts below to the person below, she responded with a super note! I have responded, and, if she agrees, will post her thoughts and link.

That is super service!



I Would Have Linked to Your Site, But..



Dear (Webmaster),


Not being able to right click means it's a hassle to add your site to favorites, or to a Web Blog whose Webmaster uses the Blogger right-click functionality to add sites to those mentioned. Scripts can be modified to disable just the Save graphic as functionality, and images can be watermarked (although personally, if someone wants to use one of my graphics, I won't lose sleep over it or spend a lot of time on it that I could be using to develop new stuff!)

Although I understand that many don't share my open source attitude on this, I feel it's only important to spend resources on things like this if your content is highly proprietary and original.

Quite frankly, if a merchant is selling the same item as everyone else on eBay, there are much bigger problems for the business plan than a re-used graphic, especially if it's one that a wholesale supplier provided to the channel to begin with. Big companies can actually subscribe to and use a common graphics pool for Web images so that they are all the same. Helps the buyer compare apples to apples, but requires the seller to differentiate him or herself.

Just a thought.



Another comment on the UOP model

Internet Time Blog: University of Phoenix

An interesting comment on the origins of UOP Online and some links to other interesting content, especially in the field of eLearning.



More Online Learning Content

Stephen's Web ~ OLDaily is another site that compiles eLearning content into an easy-to-use format. I especially liked this quote from George Siemens' interview of Maish Nichani from elearnspace:
"That's the problem with heuristics--they belie designers into thinking that they know it all. Heuristics, rules, and processes are just blinders. They limit your vision. They are handy only when they are used with a heavy dose of practice. Both process and practice make a discipline."



Vision is good, execution is key!



More from elearningpost



In researching an article today, I came across this page on the elearningpost.com site that I missed on the first visit. elearningpost: February 2003 Archives and the archives for other months provide a wide range of content on eLearning from a variety of sources. Another resource worth a visit!



If Price Were the Only Consideration...



This article, The McKinsey Quarterly: Spotlight on the sales force, supports my position on the great "price as the only differentiator" debate:

The data in this article show that, for the consumer space, adding to price was possible when value was added, when the sales force was given market share data and when selective loss-leader type pricing was offered on specific items. The data also show the effect of price matching promotions on both sales and corporate image.

Good data and something to think about....You don't drive a Yugo (do you?)
Tuesday, June 17, 2003



Welcome to sister site SellingStuffOnline.com

From the shameless self promotion department - Check it out! Our new SellingStuffOnline site is now available for preview. Look for more information soon about how you can enhance your customer experience by having your own URL, with no domain hassles! Contact SellingStuffOnline.com



What to look for when reviewing a Web site

Today, HTML Goodies has added yet another tool to its extensive selection of content for Web developers and students. I know my EBUS520 students will appreciate HTML Goodies - Goodies Peer Reviews as will most everyone who is concerned with Web sites' look and feel. And, anyone can participate in site reviews by sending their reviews to HTML Goodies, or submitting their site for review. Hint: think like the user and your site will do well!
Monday, June 16, 2003



More Web Goodies



A couple of years ago, I worked with these folks on promotions in their enewsletter. This site is a great resource for Web developers, whether you're a database guru or trying to put up your first site. Visit internet.com's HTML Goodies - Home Page for a great selection of tools, advice and resources.
Sunday, June 15, 2003



Happy Father's Day



Judy Vorfeld included this apropos link for today in the June issue of her Webgrammar's Food for Thought eNewsletter. Understanding Dad by Norman Lieberman ... Adult Children - Get to Know Your Dad is a companion site to a book designed to help you connect with your dad using a series of questions.


Yes, I really get (and read!) an eNewsletter about grammar! Writers, educators and students are among those who will find something useful at Judy Vorfeld's Webgrammar.com. Not only will you find information on grammar, but also additional resources in several content areas. Definitely worth a visit!
Saturday, June 14, 2003



Web Development Freebies


Found this site through a newsletter link and thought it was quite useful.

Phil Wiley's All the secrets includes this resources page with a listing of URLs (curiously not linked, just listed) that you can check out to enhance your site at little or no cost.

Of course, any time you choose to use a free tool for site development, be sure and check out the user agreement to find out exactly what you're signing up for in terms of privacy, potentially unwelcome software downloads and/or other terms which you or your visitors might find objectionable. Those on this list include numerous sites that I've visited, checked out, and found helpful. These sites appear to be free of these problems, but, as always, do your research before deciding what's best for you and your site.

The main purpose of the site is to support those who work at home, and it includes information about internet marketing, affiliate programs, and books that the site offers for sale.
Friday, June 13, 2003



Change is good, right?



This article, from a 1997 issue of Fast Company, caught my eye since it was recently linked from one of the Fast Take e-mail newsletters I receive: Fast Company | Bob Knowling's Change Manual

There is so much good stuff here that I can see why Fast Company chose to call attention to this content even though it's five years old (where were you in '97?)

Read this article to learn how to make effective change happen.
Wednesday, June 11, 2003



Discovered this blog while reading another blog about blogs...elearnspace blog ...How's that for word of mouth referral?

Anyway, elearnspace blog contains fascinating content that I would recommend for any of my EBUS or Marketing students, or for anyone interested in the dynamics of Web communication on a highly detailed level. You will find things here that will make you think and will inspire you to try new ways to leverage the power of technology.



This one isn't really about marketing, but I came across this profile of a friend: MMA Insider : Headlines : GET 2 KNOW: Pat "The Croation Sensation" Miletich Pat is really a cool guy with an inspiring story.



Just received an e-mail from Amazon.com announcing a new page on the site aimed at Web affiliates. On the Amazon.com - Make Money page, you can choose your menu based on your role on the Web and access information on how to leverage a relationship with Amazon to help you make money Online. Pretty cool resource from the folks who virtually invented the affiliate model on the Web.



Marketing guru Marcia Yudkin has gathered comments from readers of her weekly Marketing Minute eNewsletter in answer to the question, "How long should one wait for results of marketing efforts?" She has compiled several dozen of the answers she received (including mine) on this page.

While you're there, visit the other pages on Marcia's site. In addition to a stellar collection of marketing-related links, you'll find information on her books and consulting services. A super resource!
Tuesday, June 10, 2003



This is a fascinating site, and a wonderful example of a lasting personal and professional history preserved Online. Dr. Van Ouden's history and his documentation of dermatology information from his years of practice make an interesting and informative read. There is no advertising on the site itself, but there are a few more pop-under ads than I would prefer since each frame seems to spawn a new one. Even with some usability challenges in the form of frame misbehavior and the pop-unders, this site is worth a visit. If some minor changes were made, including adding a title to the main page, this great resource would be much easier to find.


Dr. Alex Van Ouden's Autobiography (aka Untitled Document)
Monday, June 09, 2003



Today, I received a copy of Seth Godin's new book (I hesitate to say "newest" as he is so prolific.) Purple Cow is a fun look at ways you can differentiate yourself and your organization by separating yourself from the herd and standing out in your field (so to speak.) You can learn more about the Purple Cow and all it stands for by visiting www.apurplecow.com.

Be sure you put the "a" in the URL if you type it in rather than click on it. Without the "a" the site that comes up does not belong to Seth, but the person who does have it appears to be playing off Seth's appearance, judging by the large graphic of himself in a hairstyle (or lack of) just like his. Kind of a Purple Cow thing to do, but not really what we were looking for...

I wonder if Purple Cows are what Sacred Cows become if they want to avoid becoming hamburger....

Read this book, it's a fast read and I guarantee you'll get at least one idea you can use from it if you face a changing economy and marketing environment. (And, don't we all?)



Check out The Tech Word Spy Index for a quick lookup of those technical terms that you might not use every day, and an ongoing chronology of the evolution of the language we use to talk tech..

It's interesting how some terms have endured the demise of the dot coms and others haven't. The site continues to add new words, including today's selection, biohacker, which is a scary concept given today's medical technology advances! Can you imagine BugBear hitting the bionic man (or woman?)
Friday, June 06, 2003



Happy 100th Birthday to the town where I grew up. Read about the good old days in Bettendorf in Bill Wundram's column in today's Quad-City Times Newspaper Online - the Quad-Cities Home Page

Happy Birthday, Bettendorf, Go Bulldogs!!!
Wednesday, June 04, 2003



Happy Birthday to me

Well, I've been a year older for a couple of hours now, and already several eMarketers have sent their greetings to me via e-mail.

The first greeting came only 33 minutes into my birthday. The message, from EZSweeps, offered me 10 "bonus entries" and explained some fine print about using them all within a 24 hour period. I got a sense that there might be a way to part with some money at the end of the process, so maybe I'll check that one out a little later.

MySony weighed in with the second greeting, a mere 11 minutes later at 12:44. It informed me that as a birthday gift, I had received 500 awards points as a present. A quick check of the redemption page showed fewer than 10 items as rewards, but I did find out that by adding only $11 to those points, I could receive a John Mellencamp CD (way to celebrate 40, a little ditty about Jack and Diane...) I guess I'm not really in the target demographic anymore...

Finally, at 1:30, I received my first "pure" greeting from someone not "friends and family," in the form of a simple message from Surveys.com with a link to an online greeting card that simply wished me a Happy Birthday without popping up a bunch of windows, asking me for money, or disguising (poorly) a direct marketing offer. I'm not sure if Carol Henderon at Surveys.com is a real person, but, if not, the e-mail made me believe she could be. Either way, thanks for the birthday greeting with no strings attached!
Tuesday, June 03, 2003



On Taking care of current customers

Before we embrace promotional tactics for customer acquisition, it's important to address promotions for retention and growth of our current customer business. In crafting acquisition strategies, we also need to consider the effect of our communications on current customers who might hear about the promotion. Here is an example of why. I recently dropped my mobile phone and it broke into two pieces. Needing a replacement, I researched the newest technology online (ended up with a second-hand Star-tac for $30 on eBay, but someday I'll have that one with the camera and PDA...) and was instantly drooling over the capabilities that were available in the new phone.

Unfortunately, most of the deals were available only on new service. Here's a dilemma as a marketer. You have a customer whom you know to be a heat seeker, yet who has been a customer for several years and has a higher than average monthly bill which he pays on time. When he needs a new phone, does it make sense to exclude him from the offer that you will give to someone who has proven to be a good customer, and who has not only recouped the cost spent to acquire him as a customer, but who's business has also generated a profit over time if he is willing to sign a new agreement?

Loyalty programs and promotions designed to encourage repeat purchases or upgrades should be among the first considered, since it will cost less to do business with an established customer (and supplier from the customers' point of view) than from a new one. We should still use customer aquisition programs, but should make them synergistic with those designed for retention. Essential to this process is an analysis of what it costs your company to acquire a customer, how long it takes for that cost to be recouped, and how hard it is to replace a lost customer. My thought is that a company running a new customer promotion should provide an alternative offer to incent established customers to increase or extend their business so that they lessen the risk that a customer will feel like their loyalty is being punished. Did I mention my husband's mobile phone broke last weekend?

How does your company treat its best customers?
Monday, June 02, 2003



Welcome to June and the launch of the new DirectMarketingMBA.com Web site. Starting in the next couple of days, and continuing throughout the month, watch for big changes to the site and the products and services we offer.

Thanks for visiting!


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