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New Cone Research: Consumers Need to Verify Product Recommendations

July 16, 2010 at 11:19 AM by Knowledge Leadership

Throw out the old communications models. Consumers are taking back control over their purchasing decisions. Or at least seeking a second opinion.

 

Before deciding whether to purchase recommended products or services, more than four-out-of-five consumers (81%) will go online to verify those recommendations, even from the most trusted of sources. Increased skepticism of traditional media, technology advancements and growing online connectivity have American consumers turning to online influencers to confirm their opinions prior to making purchase decisions. Heeding this behavior shift, marketers began targeting consumers’ inner circles with word-of-mouth then social media campaigns as the new marketing tipping point for purchase decisions.

 

 

Today, these campaigns are no longer enough. Data from the 2010 Cone Online Influence Trend Tracker reveal consumers have added yet another step prior to reaching for the credit card – online verification. Thus, personal recommendations alone are no longer enough to guarantee a purchase, as three-quarters of consumers (77%) agree they are more likely to purchase products or services when they can find additional recommendations about them online. Among 25- to 34-year-olds, online verification is even more vital; 91 percent will go online to verify recommendations before making a purchase and nearly the same number (90%) are more likely to purchase products or services after finding additional online recommendations.

 

 

The tone of online information plays a powerful role in the purchase decision, often outweighing the initial recommendation. More than two-thirds of consumers (68%) agree negative product or service information found online can be a mitigating factor in deciding whether to purchase. Conversely, positive information reinforces purchase recommendations for a full 80 percent of Americans.

 

Online verification may not be required for every product category, but our research shows that there is a wide range of products and services that will be scrutinized via the Internet regardless of price point. Verification is now the deciding factor to drive consumers to that final purchase, and marketers who ignore this behavior shift will miss out on a golden opportunity to influence purchase decisions.

 

Be sure to check out our fact sheet, and let us know what you think. How often do you go online to confirm purchase recommendations?



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Marketers for LeBron

July 2, 2010 at 1:21 PM by Knowledge Leadership

The hottest, most anticipated sports marketing campaigns of the summer have nothing to do with the World Cup. They’re not being financed by super-brands like Nike or Coke. No, this summer, millions will be talking about the glitzy, celebrity-filled campaigns all aimed at an audience of one.

 

LeBron James. (That’s King James to you, by the way.)

 

On Thursday, July 1, the Summer of LeBron officially kicked off with the start of NBA free-agency. James has fulfilled his contract with the Cleveland Cavaliers and is free to sign with any NBA team he pleases. The two-time MVP and six-time All Star is being wooed in earnest by the Chicago Bulls, Miami Heat, New Jersey Nets, Los Angeles Clippers, New York Knicks and, of course, the Cavs. But, many feel New York, Chicago and Cleveland are the true front runners.

 


So what’s it going to take to get the King? A real marketing smackdown. Let’s take a look at the contenders:

 

Cleveland: James was born and raised in Cleveland, and the hometown hero rescued his city’s franchise from the doldrums of the NBA. Fearing that nostalgia and loyalty aren’t enough to keep James put, Ohio Governor Ted Strickland joined a group called Clevelanders for LeBron in re-jiggering Live-Aid’s “We Are The World” into “Please Stay LeBron” – cheesy vocals and head sways included. And, a local radio DJ started his own grassroots movement asking every man in Cleveland to grow a beard – Beards for Bron – as a show of support for their man.

 

Chicago: With the Commander-in-Chief on its side, the Chicago Bulls might have a good shot at landing James. President Obama told TNT in an interview with Marv Albert that he could see “LeBron fitting in pretty well” in Chicago. Just in case James needs more convincing, Bulls fans, led by marketer AJ Barthold, have banded together to create SendLeBrontoChicago.com, a site so popular, it even has a following in China.

 

New York: Not to be outdone by Governor Strickland, New York City Mayor Michael Bloomberg and the city’s tourism board unveiled a video plea of their own as part of the C’mon LeBron marketing campaign to lure James out of Cleveland. Instead of a musical number, Bloomberg invokes the Almighty himself with a quote from the King James Bible. Bloomberg’s not alone in the campaign, either. He’s lately been joined by tennis legend John McEnroe who promises free tennis lessons in exchange for signing with the Knicks.

Our apologies to Cleveland, Chicago and New York, but we’re hoping LeBron holds out as long as he can. Who knows what marketing magic still awaits us in the Summer of LeBron?


What do you think? What city has done the best job marketing to LeBron?



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Stayin’ alive

June 25, 2010 at 1:31 PM by Cone

How can a brand stay alive, remain relevant and engage with its consumers? Those are the key questions for any mature brand. Not to be a “Debbie downer,” but 24/7 Wall St. regularly compiles a report of brands that are likely to disappear in the near future. The most recent list includes:

  • Blockbuster
  • BP
  • Dollar Thrifty
  • Kia Motors Corp.
  • Merrill Lynch
  • Moody’s
  • RadioShack
  • Reader’s Digest

Blockbuster is a perfect example of a company that is taking a hard look at its business model and trying to find ways to adapt. Gone are the days when friends or families made a trip to the movie store to walk through the aisles and pick out what they were going to watch. With the influx of services from On Demand, Netflix and Redbox, movies and entertainment are more readily available to consumers in extremely convenient places, and they are often much less expensive.

 


Another brand attempting to resurrect itself is Gourmet. After shuttering the print version in the fall of 2009, Condé Nast just announced the former magazine will rebrand itself as an iPad application called Gourmet Live. The free app is set to launch in the fourth quarter and will include new content along with some archival content from the magazine.


Executives clearly found value in the Gourmet brand and wanted to try and capitalize on it using a new medium. It is unfortunate, in my humble opinion, the rebranding was not announced in conjunction with the end of the print publication. It would have helped bring some positive news to the end of an era. Condé Nast’s hope is to create a new way to engage with consumers and not rehash the magazine online.

Making it onto the infamous you-will-disappear list is not always a brand’s fault. Some things are unavoidable and unexpected – like a down economy. However, the unpredictable nature of market conditions does reinforce the importance of being able to adapt and change with the times and the consumer. It’s not good enough to rest on your laurels and assume you will make it out on top. Brands needs to continue to communicate with consumers and innovate.


-- Jessica Lappen, Account Supervisor



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Old school or new when it comes to paid media?

June 18, 2010 at 10:55 AM by Cone

When brands look to enhance and extend the reach of their messages, they often turn to paid media tools. Whether for a product launch, company news, an event or a new campaign, audio news releases, radio or satellite media tours and b-roll distribution help PR professionals reach key target audiences. Although these tools are tried-and-true, over the years, they have evolved to include “new school” tools to account for the prevalence of online media:

 

  • Blogger SMT: Similar to a traditional satellite media tour, this technique offers a spokesperson to bloggers during which an interview* is conducted live using a video conferencing technology such as Skype.
  • Multi-Media News Release: This enhanced press release is a package* that combines a traditional release with photographs and video and is distributed to both on and offline media, in addition to video sharing websites.
  • Online Videos: A more visual and creative way to tell a story, clients hope these videos* go “viral” and get picked up by online media nationwide.

But, by no means should old school techniques be considered obsolete. They can still be just as effective as newer options. It’s important to really understand who the target audience is and to look at all the tools offered to reach it in the most effective way.


--Jennifer Newberg, Senior Account Supervisor


*Cone client



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What does the Facebook Open Graph mean to marketers?

June 4, 2010 at 10:21 AM by Marcus

Recent changes to Facebook announced at the Facebook developers’ conference have been hot topics in new media marketing and pop culture. The largest issue affecting anyone with a Facebook page – that’s now more than 400 million people – is that of privacy. While this is a relevant issue, the platform’s social developments, the Open Graph, will have a more significant effect on how we all use the Internet.

 


The Open Graph connects the Internet in ways never conceived. Imagine visiting a website that can access your social profile and customize content based on your likes and interests, as well as those of your friends. These connections are powered by Facebook, and the platform will become the backbone of the social web. It’s what we like to call the Facebook-Powered Internet. Currently, the Open Graph connects Facebook to more than 30 partners, including CNN, ESPN, IMDB and Pandora; however, as the new developments gather momentum, more and more websites will connect with users and Facebook through Open Graph.


The Facebook-Powered Internet will be faster, safer, intuitive and much more social. Users will be able to “travel” with their Facebook profile information, while websites will be able to recognize information about the user to help serve up relevant content. That means no more logging in or setting up accounts for websites, both a speed and security bonus. Content will be easier to find: less searching through large sites to find the exact thing you need, fewer irrelevant news articles and fewer ads that don’t come close to targeting you.


But, not everyone is on board. Facebook is getting pushback from users who fear their privacy is at stake. Facebook bases its changes on what user activity on the Internet has already shown. People want to share their exact location on Foursquare and know what strangers are thinking on Twitter. Even the word “viral” has taken on a completely new meaning today to accommodate the mass sharing that is taking place online.

 


Marketers and communicators need to understand that the Facebook Open Graph will change how people use the Internet, very drastically and very quickly. Although it is impossible to know exactly how these changes will affect how people receive information, buy products and support causes, marketers should be fostering and growing Facebook Fan Pages to take full advantage of this development. For each “like” that your fan page receives, you make another connection in the Open Graph. These connections are the web that ties together the Facebook-Powered Internet.


As a marketer, are you in a position to take advantage of the Open Graph? What tactics are you using to grow and engage Facebook fans?



TagsFacebook newmedia socialmedia trend marketing

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