Superbowl ads

This past weekend, we saw the biggest event of the year for marketers working with the American consumer. What event? The Super Bowl, of course. We may ignore the football side of it, but the commercials that run during the game provide us with a plenitude of material for consideration when thinking about our own marketing campaigns.

One of more interesting ads from this year's game for me was the "Built in America" commercial for BMW:


This campaign struck me as particularly surprising, since in the past, BMW has primarily tried to build up an image of the more non-traditional, a little crazy and young, yet luxurious and stylish brand of cars. This Sunday, though, what they did is attempt to appeal to the tradition-valuing crowd. They talked about South Carolina, about Americans building BMW's from scratch, and, last but not least, they placed the ad on the Super Bowl, which also is meant to attract a particular kind of an audience.

So we can see how BMW, perhaps, is reconsidering the way it presents its brand to potential customers. Or, maybe, this was only an attempt to appeal to a secondary market to supplement its usual, eccentric-but-classy crowd.

Does not doing homework sound like a good idea?

Ideas can be pretty amazing tools. At certain points in time, great ideas laid down the foundation for great inventions, remarkable commercials, masterpiece paintings, and every single book at your local library. Does that mean that every idea is good enough to seed your next victory? Maybe not. In fact, all the novels lying in publishers' slush piles without use, and all those projects that send well-established corporations into the red, also have the ideas of well-meaning individuals behind them. Nevertheless, the mere possibility of failure should never discourage you, especially considering that market research can significantly lower a project's riskiness.

So what is research? On the easy end, it can come down to a simple Google search for the information you need. On the other extreme, you might need to spend hours in a lab, hire test subjects, or conduct a survey at a mall. Take our word on it - there are many ways to go about researching and testing a business idea, and it is therefore important to know about the attributes of effective market research for a successful venture.

The main goal of it all

Setting the right goals is paramount to a useful outcome. These do not have to be too detailed if your project is just at its beginnings, but specificity helps get the project started on the rightest foot possible.

Here are some example questions for an entrepreneur researching his idea of a new vegetarian restaurant in St. Paul, Minnesota:

"Do humans enjoy vegetarian food?"

"How much money do people in St. Paul, Minnesota, spend on eating out every week?"

"How many St. Paul residents adhere to a strict vegan diet?"

This short list of things allows the entrepreneur to arrive at the ultimate goal of his research, and that is whether the market for vegetarian dining in St. Paul is big enough to support a new restaurant. Once he is able to answer this question, he will know for sure if his idea of a vegetarian diner is viable.

Beware of the confirmation bias monster

The same way the parent of a human would tend to see his child's accomplishments as signs of genius and dismiss his child's flaws as unimportant, the parent of an idea is predisposed to view his project favorably. So, idea parent, beware: The confirmation bias is out to get you. Ways to combat it include hiring an independent party to conduct the research, blinding all parties so that no participant in research is aware if its ultimate purpose, or just constantly reminding the ultimate aim of market research to yourself.

Questionnaires

Surveys are relatively simple to arrange. Thus, if you decide that this is the tool of your choice, it's important to keep some survey questions open-ended to allow for unpredicted responses. Other things to keep in mind are the various biases that can arise from question wording and from the order in which questions are asked.

Focus Groups

Focus groups can serve as a source of rich material, but are difficult and costly arrangements that require skilled moderators. Before setting one up, consider the following ways that these groups can go wrong: participants influence each others' reactions, and no response is genuine; the moderator intimidates the group into his way of thinking, or the participants do not take their job seriously. These pitfalls see a variety of researchers break their informational legs, including large corporations like Apple.

Market research is a fundamental task that goes into new product development and management. Ideas generation, another major task in the new product offering field, will be the next topic for discussion on the NVSBS blog.

SEO vs. AdWords: The winner is not that obvious.

We’ve heard it on numerous occasions; we know it well: a space on the first page of a popular Google search is the Christmas gift of choice for 99.8% of corporate websites. The other 0.2% already happily appears among the top ten, and is not very willing to move down. If you are the owner of a website that wants to be in the top ten for its keywords, your options come down to search engine optimization and AdWords. While both of them have the potential to let your web page reach its goal search engine position, there are distinct differences between them that lead some people to be “SEOers” and others to be “AdWorders.”

To many, the benefits of SEO are rather obvious. However, investment in search engine optimization is yet to become wide-spread:

• Better brand credibility. While SEO makes it possible for the website owner to deliberately get on the first search page, customers still perceive “natural” page promotion as more trustworthy than sponsored links.
• Offline services. It is slightly more importat to avoid pay-per-click in the first place if your customer will at one point or another interact with your firm outside of the Internet, be it a straightforward phone conversation or a full-fledged visit to your office.
• Long-run cost effectiveness. Once SEO gets your page onto the top, maintenance costs are practically absent. In the long term, investing in SEO brings enormous return on investment and thus makes a lot of sense.

On the other hand, some say that AdWords contradicts the nature of search engine marketing. They thus ignore pay-per-click as an option in the first place, to which I say that AdWords are not all that straightforward:

• Instant results. With a paid advertisement, you can generate immediate traffic to your webpage. AdWords is a relatively simple technology, the biggest prerequisite of which is your willingness to pay per visitor’s click.
• Ease. Showing up among the first ten for competitive keywords is a lot easier with a pay-per-click campaign than through search engine optimization. Again, one should only be willing to make a monetary investment into the program.
• No search algorithm changes. With pay-per-click, the need to spend time keeping up with changes in Google’s search algorithm evaporates because Google administers AdWords itself.
• Online services. Promoted searched are generally more appropriate for online services that do not require the customer to interact with your company anywhere outside the net.
• Only monetary investment. Finally, unlike SEO, AdWords does not require you to hire a specialist or study any literature. Like I mentioned, its technology is rather simple and anyone familiar with the Internet should be able to conquer it. Furthermore, by choosing to learn SEO, you give up the time that would have otherwise gone into improving the quality of your firm’s offerings, or making follow-up calls. Opportunity costs are looming.

It’s up to you whether you choose the one, the other, or both. Your choice should largely depend on the nature of your business. However, internet marketing is also a matter of personal choice that reflects your professional personality.

Check back for a fresh update on Thursday. Comment, subscribe, and have a remarkable week.

Advertising channels: the long but necessary list

Today, we have a fun list of the different channels that you may want to consider when brainstorming for your marketing campaign. The honest truth about idea generation is that, despite your elaborate knowledge of all your choices, your proficiency may evaporate under pressure. Consequently, we encourage you to come back to this list whenever you experience marketers’ block.

1. Magazines
2. Educational webinars
3. Newspapers
4. Direct mail
5. Brochures and flyers
6. Company website
7. Directories
8. Philanthropic activities
9. Newsletters
10. Community service programs

Looking out for rivals

Unless you are the Egyptian Pyramids, your business has rivals. While they can make our lives more painful than it is often necessary, they are not always such a bad thing. Opponents are a great tool for motivation and improvement. If your customers have no substitute for your service, why would you bother to improve? Additionally, rivals can become your assets even more literally, that is, when you work with them on the same goals that you otherwise be working to achieve on the opposite sides of the same river. Now, in order to help you get to the place of your dreams, your rivals need a small assessment.

Leverage your strengths

Experienced marketers know that being specific about your offerings and your audience is crucial for professional success. Segmentation, targeting and positioning are not some abstract concepts any more. Instead, these three activities form the basis for any successful attempt at grabbing the public's attention. Knowing what, how and to whom to make an offer will get you a job, a donation, a sale, or even all three, if you're looking for that. With that said, finding the right audience and that unique feel can take quite a long time, and most of us don't have years to wait for such an epiphany before getting what we want. Today, Nick and I prepared a three-step outline to ease and, hopefully, accelerate the journey to our readers' goals.