As usually, Marketing News was an interesting read. This time the magazine had two very interesting case studies.
The Brains Behind the Foam (page 14).
Farris Manufacturing introduced a new product into the market of medical foams designed to help in treatment of deep cuts and wounds – QuadraFoam. The product was initially introduced as a part of a line of medical foams; each specific foam suitable for one specific task. QuadraFoam was different – it was one product that could be used for several tasks. With the help of Morsekode , the new product was rebranded as the only product in a completely new category.
Up, Up and Away (page 23).
This case study highlights value of multivariate testing for high-traffic consumer web sites. Performance of Delta.com booking system was increased based on the testing. One of the optimization examples: tests showed that a loyalty program instruction on the top of the page somehow discouraged customers from proceeding with their booking process. Removal of the instruction increased conversions. Delta.com used services of Optimost in multivariate testing.
Another curious article highlighted connection of marketing and innovation:
Dream a Little Dream (page 19).
The article highlighted not only the need for innovation, but also need in the focus for innovation activities. Innovation needs to be driven by marketing, rather than engineering; companies should start from the consumer needs rather than technical possibilities.
5 keys to innovation
- define your purpose: from whom…
- sponsor risk-taking: reward innovation disregarding its success
- ask positive questions
- leverage diverse perspectives: involve people with different backgrounds and perspectives
- use your whole brain: don’t limit the effort to left-brain activity
Other interesting tidbits:
- Woman’s shopping habits are rather constant and do not change with income/age
- In-game advertising is growing, but several companies are working on trying to measure ROI
- Integrated marketing concept may need to be replaced with Alignment concept. “…more alignment is needed and perhaps less integration. It means getting all the functional specialists to work together as a coherent whole to develop and deliver messages and incentives for the organization and its brands.” Interesting… (page 34).
- Playboy is getting into social networking sites business with the attempt to target college men. Curious… My personal view is that this is a rater strange move, considering that social networks are more frequented by women rather than men, except professional networks, such as LinkedIn…
- New data on the perennial discussion about the effectiveness of NPS (Net Promoter Score) for predicting future financial performance. The article’s conclusion: “…all net metrics are no better (and usually worse) as predictors of performance than standard satisfaction and loyalty measures – which are also much more precise, and therefore require significantly smaller sample size…”
- Market share of premium chocolate grew, “drivers for growth include health benefits of dark chocolate and a general trend toward premium products.” Oh, those “health benefits” claims… I am soooooo skeptical… 🙂