Thursday, July 28, 2011

What Google+ Means For Mature Marketers

If you're involved in marketing to mature consumers, you're familiar with their growing enthusiasm for social media. With compelling studies and statistics to boot, organizations working with Boomers and beyond have more information than ever to help them understand the value of social media; many now have a good grasp of how to use most of the current tools.
 
But there is change in the air.

Recently, Google unveiled its own foray into social media with the limited rollout of the Google+ project. Touted as "Real-life sharing rethought for the web," it gives the company a means to extend its prowess in assessing how we interact with the fabric of the Internet based on an organization's experience with search, mail and mobile within the social media realm. Google has already rolled out integrated Google+ components on its search engine optimization arm.

Most people are wondering what Google+ is. Currently, Google+ is composed of a few different products that work in tandem:
  • Circles
Circles is the platform on which Google+ is built. While Facebook doesn't distinguish between users' different groups of friends, Google+ will make sure they don't accidentally share the same content with their grandmother and their fraternity buddy.
  • Sparks
Sparks is comparable to Facebook's "Wall." It's a customized stream that takes into account the user's interests.
  • Hangouts
Hangouts is a feature that will allow users to video-chat with one another. It will accommodate multiple users and has a feature that will determine who is speaking and enlarge that person's video accordingly.
  • Huddle
Huddle will be a text-based version of Hangouts where users can chat with groups of their friends.
  • Instant Upload
Instant Upload will allow users to get pictures and videos onto the Google+ platform. It integrates mobile platforms with the Google+ platform.
Google+ will have applications in our industry on a number of fronts. From the beginning, for example, Google was comfortable enough with advertising to allow ads onto its platform. But within the mature market, relevancy is going to be a must, and Google certainly won't dilute its product with ads that aren't relevant to users' interests and needs. There's speculation on other ways companies will be able to interact with users, but Google will be rolling this product out very slowly -- and that's part of the strategy.

Do we believe this will be an immediate social media game-changer for the mature market? In reality, it probably won't make "waves" (pun intended) with most users for the next few years. But expect Boomers to be curious about what they can gain from Google+ if it is successful with a younger demographic. Given what we now know about the mature market's proclivity for social media, this may give Google a chance to develop a platform with Boomers in mind from the beginning.

By Kendra Metz Thursday, July 28, 2011

Watch Ad, Win Prize, Rinse and Repeat

Great article by Steve Smith regarding using contesting and measuring results that way.

I seem to have been writing this same story for the last decade. I wonder if it turns out differently this time.  

It always begins with advertisers hoping to trade ad views by consumers for fun, discounts or prizes. Whether it is the early Web scheme of crediting Web surfers with redeemable points for the ad banners they viewed or more recent attempts at offering rewards for viewing video spots at companies like beezag, the basic premise always seems appealing. Users are supposed to trade a small chunk of their attention and consciousness to a marketer in exchange for something of tangible value.  

This notion that our attention is a commodity that the consumer herself can barter for value is appealing on many levels. It is a more transparent way for the century-old ad-supported media ecosystem to work. These models just make more explicit a value exchange that has always been there in the triangle of media, marketer and consumer. And potentially by putting the consumer more in control and exercising greater choice, the model engages the user in the marketing process, makes them a player in the game and generally a more receptive and qualified target.  

The problem with a lot of these systems, of course, is that they need to hook the user into an ongoing process of view, redeem, repeat that is itself tedious. Aside from the obsessive coupon-clipper and pro-am shopper, not many of us want to tend discount programs. The era of Green Stamp saving and redeeming is long over. Who wants to remember to go back to a Web site, manage their points, and for what? A paltry return? 

And so I bring us to Loffles at loffles.com on your mobile browser, a mix of  spiritual support and ongoing skepticism. This attempt at making the model more seamless, a bit more entertaining, and mobile is intriguing because it addresses at least some of the perennial weaknesses of attention-swap model. The mobile site lets you login via Facebook Connect or a unique ID. Once inside, the raffle begins. The system recommends a series of six product raffles for you to enter, from Kilpsch ear buds to a copy of "Call of Duty." Choose one and you get a brief plug for the product and are prompted to enter the raffle and watch the video for an advertiser. In the case of my Call of Duty choice I got a spot for American Red Cross. I will refrain from commenting on this odd juxtaposition of a product that simulates carnage and an advertiser grounded in compassion and relief.

Then comes the dumb quiz, and the questions generally reinforce the branding message and nominally guarantee you actually watched the video. One wrong answer and you are prompted to watch the video again. Beezag does something similar to this. Then you can allocate the 30 or so "loffles" points you earned to the raffle. This is not fully explained, but I gather you are increasing your chances of winning a given item by allocating more points. You can also bank points to use in the loffles store of real goods (t-shirts and coffee mugs) or to apply to a later raffle.  

Loffles says that they personalize the experience with recommended offers filtered according to your demographic profile, but I was never asked a profiling question. Still, the user can control the experience by filtering in different offer categories.

There are irritating aspects to the process. One wishes the entire experience were explained more fully at the front door. Some of the buttons in the post-ad quizzes are too small for accurate smartphone tapping. And generally there are a few too many taps to get into the video itself. This could be more streamlined. Also the raffle process is a bit obscure. I couldn't tell when they were being held.

Loffles is trying to turn the process of trading ad views for consumer value into play. The creators are expecting that the mobile user will drop into loffles in much the same way they drop into a mobile game during a few minutes of dead time. The idea is pretty solid. If the process of managing your raffle entries and gaining new points can be made engaging and seamless enough, then the line between game and marketing scheme blurs enough to be irrelevant to the consumer. But like the basic model of swapping our attention for tangible value, the concept here is still stronger than the execution. Ultimately, it just isn't entertaining enough. A raffle countdown might be a compelling addition to bring me back for more.  

Making the ad viewing experience more varied and entertaining I think is the best bet. Bonomo Turkish Taffy is an advertiser in the system, and they use an ancient ad from my childhood as their spot. This was the most interesting part of the loffles experience and made me wonder why the advertisers couldn't be more creative in the ad units they put into the system.  

Here's the real problem -- and why this old story still has the same ending it has had for the last decade. The basic attention swap model here and elsewhere sets up ad creative as a hurdle, a chore, an obligation between the user and the reward. It changes one aspect of the marketer/consumer relationship by putting the consumer a bit more in control. But it doesn't make the fundamental change we need most: to entertain, not just pitch the viewer. Giving users more control of the marketing experience, and offering them a fair exchange is only half the project. What you really have to do is make the ads a better experience that themselves reward the viewer for the time spent.

by Steve Smith , Thursday, July 28, 2011

Tuesday, July 26, 2011

ESPN And Cadillac Team To Build New Studio

What a great idea!!!

A new radio studio at 190 State Street in Chicago will soon be home for ESPN. The station has secured Cadillac as a sponsor of the studio. The station says the multiyear partnership of the state-of-the-art studio will be announced at a ribbon cutting ceremony in early September. ESPN 1000 vice president and general manager John Cravens said, "We are very pleased to partner with Cadillac with what we know will be a long and wonderful partnership. When completed, the one-of-a-kind Cadillac ESPN Chicago State Street Studio will be a great way to showcase the ESPN Chicago family to thousands of Chicagoans daily." The new studio will be next to the WLS-TV studio on State Street.

George Gulliver, regional director of Cadillac sales said "This exciting partnership brings together two iconic brands -- ESPN and Cadillac -- with a strong heritage, shared values and a very loyal fan and customer base. Having the opportunity to display the Cadillac brand on-site at the new facility and work closely with a first-class company like ESPN makes this relationship a natural fit with tremendous potential to grow both our brands."

Thursday, July 21, 2011

Watch Your Time With Presentations

Have you ever had a key decision-maker leave in the middle of your presentation because he or she was out of time? You aren't holding the attention of a prospect who is looking at the clock!

At the beginning of the call, ask how much time the prospect has set aside. Then adjust your presentation to take no more than 60 percent of the allotted time.

Why only 60 percent? Because your prospect's decisions to act typically occur at the end of a meeting, so you want to allow enough time to resolve any remaining issues and reach an agreement.

Great Sellers Are Courageous People

How early in your last sales presentation did the subject of price come up? And please tell me that you were not the one to start that part of the conversation. How soon in your next sales presentation will you and your buyer get around to a discussion of price?

Here's the deal: The decision should never be about price. It's about what? It's about why? It's about when and who?

When all the above questions are answered after a forensic look by a partnering buyer and seller, it's time to negotiate the equities. Before then, for both of the parties, it's a pig in a poke. That's because before the work neither have a reality-based clue about what the maximum opportunity to further the buyer's interest might be. So without serious examination, it's clear what the risk is to the buyer. And the seller? A one-time sale, a disappointed seller, another one who "tried it and it doesn't work."

So, what do courageous sellers do? They suggest at the beginning of the conversation that their intention is to help the buyer probe all of his critical assumptions regarding pathways to success. Together they need to compare experience, learnings and be willing, each of them, to bow to greater wisdoms or logic. "Mr. Jones, these are tough and confusing times. The information flow is all but overwhelming. There used to be a time when I felt I was completely on top of the marketing of goods and services. Now I'm convinced that no one is. Not me, and not you -- even about your own business." Do you dare? "Together, Mr. Jones," you continue, "we have a shot."

A friend of mine who manages several billion dollars of institutional investment funds, and whose intelligence and wisdom is beyond question, said to me recently that he believes most thoughtful people feel guilty these days about their inability to stay on top of everything. That's a real change for many and how could it be otherwise? Today, there's almost nothing we can't get answered within minutes using "search." And yet, there isn't nearly the time available to search all the new bits of information that pop up every 10 minutes of every day.

"Don't you think that's true, Mr. Jones? Shouldn't we get started digging in and prioritizing what you believe are the obstacles to continued or renewed growth? Will you remember when I challenge you and question your assumptions that I'm here to help?"

"The real question is, how much truth can I stand." -- Nietzsche

You can do this work.

As Single Becomes New Norm, How to Market Without Stigma

When Selling to This Growing, Aging Group, Don't Assume That They're All Focused on Getting Married -- or Must Be Singled Out

They are a growing -- and graying -- force.

Never-married single people ages 25 to 34 now outnumber the married crowd by 46% to 45%, a stark reversal from just a decade ago, when couples held a 20-point edge in the age group, according to an analysis of new Census data by the Population Reference Bureau. In essence, selling to singles no longer means just targeting teens and those in their early 20s.

Some marketers are taking notice: More ads are featuring singles and some companies are reaching out to them, such as Coldwell Banker and Norwegian Cruise Lines. But for the most part marketers are only slowly adjusting to the new normal. And in some instances it doesn't make sense to exclusively target singles, according to interviews with multiple ad agency executives.

"We see many examples of brands -- from soft drinks to cellphones -- who talk to the traditional 18-to-24 year-old single. But the new single, the single parent or the more affluent, later life-stage single is a segment that's still emerging and expanding," Adam Bowen, VP-strategic planning director at DraftFCB Chicago, said in an email interview. "We'll need to spend more time with this group, gaining a better understanding of their unmet needs."

It's a coveted group, for sure. Freed from the restraints of family life, singles have a reputation for splurging.

"They have more money to spend on themselves and they're more willing to indulge on things that might seem frivolous or [a] non-necessity," said Ann Mack, director of trend spotting at JWT.

In 2009, singles of all ages spent a higher share of income on alcoholic beverages, clothing, shoes and tobacco products compared with other households, but less on housekeeping supplies and insurance, according to new data from the Bureau of Labor Statistics.

Still, several ad agencies contacted by Ad Age said they do not have a dedicated unit studying the single market. One reason is that some goods are marketed the same no matter the consumer's living situation.

Beauty products, for example, are "purposely nebulous about marital status," said Denise Fedewa, an exec VP-strategy director at Leo Burnett. That's because married or not, when a woman is dressing up to go out, "I think she always goes back to that vision of herself as that 25-year-old single woman," she said.

But some companies are aggressively targeting singles. Coldwell Banker Real Estate, for instance, touts its YouTube real-estate channel as a way to reach singles ages 25 to 34. And video will be prominently featured in an iPad application the company is planning.

"Video is a stronger, better way to communicate with this age group," Coldwell Banker Chief Marketing Officer Michael Fischer said in an interview. "You can't ignore the single buyer because they make up such a big portion of our target market."

Single women accounted for 21% of all homebuyers in 2009, and single men made up an additional 10%, according to the National Association of Realtors.

In the travel industry, Norwegian Cruise Line is reaching out to solo travelers by offering single-occupancy rooms on its new Epic ship. "In the past, single cruisers have had to pay a double occupancy for traveling alone, but these new accommodations ensure affordable and an alternative way of traveling for singles," spokeswoman Kristine McGlinchey said in an email.

In the restaurant industry, communal tables are hot -- making it easier for singles to mingle -- and more eateries are offering breakfast and staying open all afternoon as a way to cater to singles on the go, said Clark Wolf, a New York-based restaurant and hospitality consultant. Also, singles are behind the surge in trendy food-trucks that "allow for a lot of standing around in line, which is where people like to meet and talk," he said.

Dating sites such as Match.com that have long targeted singles are seeing an uptick in business. Match reported an 8% bump in subscribers for the second quarter, excluding irregular transactions, according to parent company IAC. And slowly but surely, more ads are featuring singles to keep up with the trend, said Adrian Fogel, VP-planning director at Leo Burnett. "We always put families on because families made you feel better. But the reality is more people are living alone for whatever reason," she said.

Ms. Fogel pointed to McDonald's ads, which she said had reliably featured families enjoying a Happy Meal or sharing fries but now include more singles, such as recent spots featuring solo diners enjoying Quarter Pounders with cheese. McDonald's "is about family, but they've found the balance of understanding that there's a single population within their adults that they are targeting," Ms. Fogel said.

Ms. Fogel said ads that work for singles are "not about making them being single a negative. I think it's about trying to connect them with what they do or love." She cited a recent Bud Light ad that features a group of men and women browsing a garage sale.

One caution: Singles expert Bella DePaulo said too many marketers engage in "matrimania," assuming that all that singles want to do is find a mate.

Conventional wisdom is "all singles want more than anything is to be coupled, so that's what we should sell them is a ticket to coupling," said the psychology professor at University of California Santa Barbara and author of "Singled Out: How Singles Are Stereotyped, Stigmatized and Ignored and Still Live Happily Ever After." But the reality is singles are "leading full, meaningful, happy lives, and they don't need to be patronized or stigmatized."

Social Networking Sites and Our Lives

Questions have been raised about the social impact of widespread use of social networking sites (SNS) like Facebook, LinkedIn, MySpace, and Twitter. Do these technologies isolate people and truncate their relationships? Or are there benefits associated with being connected to others in this way? The Pew Research Center’s Internet & American Life Project decided to examine SNS in a survey that explored people’s overall social networks and how use of these technologies is related to trust, tolerance, social support, and community and political engagement.

The findings presented here paint a rich and complex picture of the role that digital technology plays in people’s social worlds. Wherever possible, we seek to disentangle whether people’s varying social behaviors and attitudes are related to the different ways they use social networking sites, or to other relevant demographic characteristics, such as age, gender and social class.

The number of those using social networking sites has nearly doubled since 2008 and the population of SNS users has gotten older.

In this Pew Internet sample, 79% of American adults said they used the internet and nearly half of adults (47%), or 59% of internet users, say they use at least one of SNS. This is close to double the 26% of adults (34% of internet users) who used a SNS in 2008. Among other things, this means the average age of adult-SNS users has shifted from 33 in 2008 to 38 in 2010.  Over half of all adult SNS users are now over the age of 35. Some 56% of SNS users now are female.

Facebook dominates the SNS space in this survey: 92% of SNS users are on Facebook; 29% use MySpace, 18% used LinkedIn and 13% use Twitter.

There is considerable variance in the way people use various social networking sites: 52% of Facebook users and 33% of Twitter users engage with the platform daily, while only 7% of MySpace and 6% of LinkedIn users do the same.

On Facebook on an average day:
  • 15% of Facebook users update their own status.
  • 22% comment on another’s post or status.
  • 20% comment on another user’s photos.
  • 26% “Like” another user’s content.
  • 10% send another user a private message
Facebook users are more trusting than others.
We asked people if they felt “that most people can be trusted.” When we used regression analysis to control for demographic factors, we found that the typical internet user is more than twice as likely as others to feel that people can be trusted. Further, we found that Facebook users are even more likely to be trusting. We used regression analysis to control for other factors and found that a Facebook user who uses the site multiple times per day is 43% more likely than other internet users and more than three times as likely as non-internet users to feel that most people can be trusted.

Facebook users have more close relationships.

The average American has just over two discussion confidants (2.16) – that is, people with whom they discuss important matters. This is a modest, but significantly larger number than the average of 1.93 core ties reported when we asked this same question in 2008. Controlling for other factors we found that someone who uses Facebook several times per day averages 9% more close, core ties in their overall social network compared with other internet users.

Facebook users get more social support than other people.

We looked at how much total support, emotional support, companionship, and instrumental aid adults receive. On a scale of 100, the average American scored 75/100 on a scale of total support, 75/100 on emotional support (such as receiving advice), 76/100 in companionship (such as having people to spend time with), and 75/100 in instrumental aid (such as having someone to help if they are sick in bed).

Internet users in general score 3 points higher in total support, 6 points higher in companionship, and 4 points higher in instrumental support. A Facebook user who uses the site multiple times per day tends to score an additional 5 points higher in total support, 5 points higher in emotional support, and 5 points higher in companionship, than internet users of similar demographic characteristics. For Facebook users, the additional boost is equivalent to about half the total support that the average American receives as a result of being married or cohabitating with a partner.

Facebook users are much more politically engaged than most people.

Our survey was conducted over the November 2010 elections. At that time, 10% of Americans reported that they had attended a political rally, 23% reported that they had tried to convince someone to vote for a specific candidate, and 66% reported that they had or intended to vote. Internet users in general were over twice as likely to attend a political meeting, 78% more likely to try and influence someone’s vote, and 53% more likely to have voted or intended to vote.  Compared with other internet users, and users of other SNS platforms, a Facebook user who uses the site multiple times per day was an additional two and half times more likely to attend a political rally or meeting, 57% more likely to persuade someone on their vote, and an additional 43% more likely to have said they would vote. 

Facebook revives “dormant” relationships.

In our sample, the average Facebook user has 229 Facebook friends. They reported that their friends list contains:
  • 22% people from high school
  • 12% extended family
  • 10% coworkers
  • 9% college friends
  • 8% immediate family
  • 7% people from voluntary groups
  • 2% neighbors
Over 31% of Facebook friends cannot be classified into these categories. However, only 7% of Facebook friends are people users have never met in person, and only 3% are people who have met only one time. The remainder is friends-of-friends and social ties that are not currently active relationships, but “dormant” ties that may, at some point in time, become an important source of information.

Social networking sites are increasingly used to keep up with close social ties. 

Looking only at those people that SNS users report as their core discussion confidants, 40% of users have friended all of their closest confidants. This is a substantial increase from the 29% of users who reported in our 2008 survey that they had friended all of their core confidants.

MySpace users are more likely to be open to opposing points of view.

We measured “perspective taking,” or the ability of people to consider multiple points of view. There is no evidence that SNS users, including those who use Facebook, are any more likely than others to cocoon themselves in social networks of like-minded and similar people, as some have feared.

Moreover, regression analysis found that those who use MySpace have significantly higher levels of perspective taking. The average adult scored 64/100 on a scale of perspective taking, using regression analysis to control for demographic factors, a MySpace user who uses the site a half dozen times per month tends to score about 8 points higher on the scale. 

Inviting the Truth

The main reason prospects suddenly vanish is that they're uncomfortable telling us the truth. They don't want to disappoint us, or they don't want to feel sales pressure from us. So keeping us at bay just feels better.

And we can't really blame them. How often have they been called and called, chased by salespeople who hope to wear them down?

Or how often has your own boss said, "Call them back and get the sale. Why is it taking so long?" Your boss blames you, and you feel that you're not very good at selling anymore. So now you have to put pressure on your prospect. And of course this only makes things worse.

This happens every day. We're stuck in that endless cycle of chasing prospects, trying to get them to respond to us. And the more we press, the more they run.

But the opposite is true, too. The more we relax and simply invite the truth, the more straightforward they'll be with us. Prospects feel okay sharing what's really going on when they know we're okay with hearing it.

The only way to discover the truth is to communicate in a way that helps the other person feel comfortable telling you the truth. What you don't want is for them to think you're calling just to make the sale.

Remember, prospects will trust you and reveal what they're thinking only if they feel like you're on their side.

Theme Park Revenues Have Their Ups, Downs, Ups

Theme park revenues may be on their way back up the next hill after hitting the bottom of the roller coaster last year.

According to Mintel, theme park revenues are expected to grow between 3% and 4% per year between 2011 and 2015, after having dropped 5% in 2009.

"We're on the slow climb (up)," Fiona O'Donnell, senior analyst at Mintel, told Marketing Daily. "I don't know if that means we're heading for a big dip. Because there have been a lot of innovative new rides introduced, people still want to go to theme parks."

Although questions about higher gas prices and fears of a double-dip recession could pressure those revenue projections, the allure of new rides, shorter lines and grown-up entertainment options is helping lure future visitors. Nearly 40% of consumers said they would visit a park to try out a new ride or attraction and nearly as many said they would pay more to avoid long lines.

However, the bread-and-butter demographic for theme parks is teenagers. They were three times more likely to have visited a park in the past year than adults (70% vs. 23%), and their most popular destination was the Six Flags parks, according to the report.

Despite consumer gripes about inflated concession prices, admissions still account for nearly three-fifths of theme park annual revenues, with food and beverage and merchandise only accounting for 17% and 10%, respectively.

Theme parks, however, could increase revenue from concessions and merchandise by offering online coupons, O'Donnell says. According to Mintel, one-third of consumers said they buy admission tickets online. Offering coupons for entertainment, food or merchandise that print out along with a guest ticket could increase those revenue streams.

"It seems like (that) would be the obvious next step, even with the games and entertainment to entice certain segments to buy some tickets ahead of time," O'Donnell says.

(Source: Marketing Daily, 07/15/11)

Mobile Connected Devices Boosting Sales of Consumer Electronics

The consumer electronics industry will have stronger than anticipated growth in 2011, according to the semi-annual industry forecast released on Monday by the Consumer Electronics Association.

The industry is estimated to surpass $190 billion in overall shipment revenues this year, a growth rate of 5.6 percent, which is higher than the previous projection from January. The U.S. Consumer Electronics Sales and Forecast (July 2011) also projects industry shipments will grow in 2012, reaching an all-time high of $197 billion.

"Innovation continues to drive the electronics industry to record levels, even in the face of declining economic growth overall," said CEA President and CEO Gary Shapiro. "Newer, innovative product categories, like tablets, not only meet consumer demand but also help bolster our industry and strengthen the overall American economy."

CEA expects the surging sales of mobile connected devices to be significant enough to push the overall industry higher than previously projected:

  • Tablet computers are projected to grow 157 percent in 2011, with more than 26.5 million units being shipped to dealers and resulting in $14 billion in shipment revenue.
  • Smartphone sales will also see major growth this year and will continue to be the primary revenue driver for the industry. Smartphone unit sales will climb an estimated 45 percent and reach more than $23 billion in industry revenue.
  • eReader unit sales will double this year, with more than 16.5 million units being shipped, resulting in $1.8 billion in revenue.
"One year ago, tablets were a new and unproven market, and now they, along with other mobile connected devices including smartphones and eReaders, are leading the entire industry to positive growth," said Steve Koenig, CEA's director of industry analysis. "The revenue boost from these innovative products is undeniable as a number of other CE segments are reaching maturity and sales are naturally declining."

CEA estimates 88 percent of U.S. households own at least one digital television. Given this high penetration rate, sales of digital displays are expected to fall this year. However, this category remains an important contributor to the industry's bottom line with 2011 revenues topping $18 billion.

Network-enabled displays, however, are a growth segment, with an estimated 10.4 million network-enabled displays shipping to dealers this year. 3D displays will also see better-than-projected growth as 3D becomes a standard feature in displays and is incorporated into more sets across product lines. An estimated 3.6 million 3DTVs will ship in 2011, up from a projected 1.9 million units in January.

Despite slower display sales, consumers are continuing to upgrade their in-home theater experience, and audio sales are rebounding this year. Soundbars are leading the way with 2.4 million units expected to ship in 2011, an increase of 250 percent from last year.

In-vehicle technology is also poised for a strong year, as technology in new vehicles is resulting in double-digit growth. As consumers seek to integrate existing devices and content into their vehicle, such as Internet radio, automotive entertainment technology revenues are up more than five percent.

Digital cameras will also have a healthy year with unit shipments growing three percent.

(Source: Consumer Electronics Association, 07/18/11)

Selling Yourself

Just as you are selling to people, you must also remember that you are not only selling and representing a product or service, but you are in effect selling yourself. When beginning a sales relationship, it is important to remember a few key aspects to representing yourself well.

First, be interesting. If potential customers are bored by you, they have less of a chance of being enthralled by any product or service you are representing.

Develop intellect. Of course you are an intelligent person, but can you converse in an intelligent manner? Can you discuss related subjects with thoughtfulness and hold your clients' interest? You are in their territory now, can you speak their language?

Never be arrogant -- never talk up or down to your potential clients. It's rude and will serve only to alienate them. Respect the buyer, and they will respect you.

Along the same lines, develop your empathy levels. If you can relate to your customers' situations authentically, it helps to build rapport.

Rapport is the most important process in influencing others. It is vital if you want to maintain relationships. Without it, you are unlikely to achieve willing agreement to what you want. People who have excellent rapport with others create harmonious relationships based on trust and understanding of mutual needs.

Finally, the greatest compliment a customer can pay you is to describe you as "professional."

Being professional is not one thing, it is three -- It is what you do, what you say and how you present yourself.

Americans Love Their SUVs...From Detroit

Car sales this year are proving the theory that America's love affair with the sport-utility vehicle is far from finished, despite gas prices. And last month, they wanted their SUVs from an American automaker.

The SUV may go by different labels these days -- such as CUV, crossover or tall wagon -- and the SUVs feeling the love generally are smaller than in the old school utes.

But that doesn't take the luster off GM, Ford, and Chrysler, together posting a 28% year-over-year gain in utility vehicle sales in June, while overall U.S. auto sales were up just 7%. That compares with a 1% fall for Japanese SUVs, but that reflects the impact of the Japanese disaster. We also looked at SUVs from South Korea's Kia and Hyundai: Their SUVs were up 18%.

No SUV sold in greater numbers last month than the Ford Escape. The smallest Ford utility's sales jumped 43%. Overall, Ford utility-vehicle sales were up 27% last month -- about as strong as the 29% gain for its cars. Edge and Explorer gains offset losses for the larger Expedition and Flex, and together, these five utilities generated more than a quarter of all Blue Oval sales last month.

SUV patriotism abounds at the Fiat-run Chrysler Group, too.

There's arguably no utility more American than the Jeep Wrangler, and its sales improved 27% to 11,290 in June. It was America's fourth best-selling SUV, ahead of mainstream players such as the Explorer, Kia Sorento and Honda Pilot.

In fact, sales of every Jeep product -- an entire lineup of SUVs -- plus Dodge's Journey and Nitro, are up this year vs. last year. And the less-than-a-year-old redone Jeep Grand Cherokee and Dodge Durango also had strong sales.

At GM, sales were down last month for big crossovers such as Buick's Enclave and Chevrolet's Traverse and big truck-based SUVs, such as Chevrolet's Suburban and Tahoe, Cadillac's Escalade and GMC's Yukon XL.

But GM's small utilities were standouts: Chevy Equinox sales jumped 56%; sibling GMC Terrain, rose 52% -- all the more impressive, considering they were selling as fast as GM could build them last year.

In fact, new and small are the words of the day. Older, huskier models are on the decline for all automakers: Expedition, Suburban, Tahoe, Yukon, Yukon XL, Toyota Sequoia and Nissan Armada together were down last month to 18,751, vs. 54,766 when large SUVs ruled in June 2004. That 66% belly flop compares with overall new auto sales down 27% in the same period.

The American SUV doesn't seem to be the auto world's skinny jeans, fashionable but bound to fall out of favor eventually. It has persisted, and in new forms, is thriving.

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Share of Utility Vehicle Sales in June 2011

General Motors -- 20.0%
Ford Motor Co. -- 16.6%
Chrysler/Dodge/Jeep -- 15.9%
Honda/Acura -- 9.4%
Hyundai/Kia -- 9.1%
Toyota/Lexus -- 8.8%
Nissan/Infiniti -- 6.6%
Others -- 13.5%

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(Source: USA Today, 07/17/11)

Small Car Prices Should Drop as Availability Increases

Thinking of trading in the clunker in your garage for something that gets better gas mileage? Wait a little longer.

Small car prices, which have set record highs this year, are expected to come down this fall.

Lower gas prices will make people comfortable driving something bigger. Honda and Toyota, which were hurt by the Japan earthquake, will crank up production of small cars. And Japan and Detroit will offer big discounts on smaller models as their lots fill up.

The average new compact car, which cost a record $20,500 in June, should fall to about $19,300 by the end of the year. The average used compact car should fall from a record $11,300 to about $9,600 over the same time, according figures compiled by the Kelley Blue Book auto pricing service.

Small-car prices should start falling in September and accelerate through the end of the year.

"Values for these vehicles just rose too quickly and got to a level that was really unsustainable," says Alec Gutierrez, manager of vehicle valuation for the Kelley Blue Book car pricing service.

Here are factors pushing down small-car prices:

• Small-car surplus: Carmakers such as Honda and Toyota are boosting production following Japan's March 11 earthquake and tsunami. The disaster essentially shut down that nation's auto industry and slowed Japanese-brand factories in North America. With factories returning to normal, American dealers will have more Civics, Corollas and Priuses. And they won't have to put small-car buyers on waiting lists, like they did this spring.

In fact, some will have more small cars than they need says George Davis, general manager of a Honda dealership in Ann Arbor, Mich.

"One minute they're going to look out the window and see 50 cars. Two weeks later they'll see 300. Panic sets in," he says. "They pay interest on these cars and they'll have to discount."

• Deals: Honda and Toyota dealers will increase rebates, low-interest financing and other promotions, Gutierrez predicts. "GM and Ford will be right behind them, and Hyundai as well," he says.

Automakers say they won't cut prices even if Toyota and Honda come out with bigger incentives. Instead, they want to sell cars on quality, styling and features.

Dealers and analysts are skeptical, though, saying that once Honda and Toyota restock, prices will fall as rivals try to win customers who have to replace their clunkers. The average age of a car in the U.S. is now 10.6 years, up more than a full year from 2008, according to the Polk research firm.

• Lower gas prices: Gas prices are down 31 cents from their peak of $3.98 a gallon in May, and although small-car demand is still strong, buyers have started to shift to larger vehicles. Compact and subcompact sales fell to just under 195,000 last month, down from 238,000 in March, according to Autodata Corp.

There's now a shortage of cars at Pacific Honda near San Diego. But there will be a surplus after July and buyers will see deals, says Wayne Meyer, president of the chain that owns the dealership. Pacific Honda has about 38 vehicles in stock instead of the usual 350.

"There's going to be so much car availability," Meyer says. Automakers "are going to be defending market share they gained or regaining market share they lost."

(Source: Detroit Free Press, 07/18/11)

Dealers Sell to Surprised Smart Phone Shoppers

Jerry Draga quickly realized the sales power of smart phones.

Draga, general manager of Jack Matia Honda in Elyria, Ohio, said he sold vehicles to the first six people who used a new service on the dealership's Web site. The service lets shoppers download detailed vehicle information to their mobile phones by clicking an icon.

The downloads generate text messages to the dealership that include the precious mobile phone numbers of the shoppers. Salespeople followed up quickly with phone calls to get the shoppers in for test drives.

"We converted the first six," said Draga, who had his dealer management software provider install the service eight months ago.

Dealers are finding new ways to interact with shoppers who use mobile phones. The methods combine basic texting with advanced enhancements that speed communication between salespeople and shoppers. The goal of new technology, though, is often decidedly old-fashioned: bring shoppers into showrooms.

Capturing cell numbers
Some dealers are putting response numbers in print, TV and radio advertising when offering special promotions.

When a shopper uses a smart phone to respond, the shopper's cell number allows salespeople to follow up on the lead, said Nicole Case, director of Web solutions at Reynolds & Reynolds.

That technique is being used on dealership lots. Some dealers have begun putting text codes on window stickers of cars on their lots so customers kicking tires on Sundays or off-hours can immediately contact the store for more information.

Meanwhile, basic texting is booming. In 2010, Americans sent 2.1 trillion text messages vs. 81 billion five years earlier, according to CTIA, an association of the wireless telecommunications industry.

It will remain popular for years, Case predicts, because while most American families own a cell phone, only about a third of those cell phones are smart phones with Internet access or e-mail capabilities.

Mall of Georgia Chrysler-Dodge-Jeep of Buford, Ga., sends about a text a week to its 3,800 customers to offer service specials or invite them to the store, said Bryan Jackson, service department manager.

He said an $80 discount on a set of pickup tires yielded the sale of 24 sets in a month compared with a usual sales pace of three sets.

Shoppers to showrooms
During a text promotion in June, customers donated 130 cell phones for U.S. servicemen and servicewomen for a 10 percent discount on vehicle service, Jackson said. The campaigns by vendor OneCommand resulted in community good will and service business beyond tire sales, he said. OneCommand sells software to help dealers market cars and services with e-mails, voice messages, texts and other methods.

After the fast start, the mobile-phone download feature on the Jack Matia Honda Web site is still generating two additional vehicle sales per month, Draga estimates. The dealership averages about 160 total new- and used-vehicle sales a month.

The mobile marketing subscription from Reynolds & Reynolds, which retails for between $100 and $500 a month, includes the creation of a mobile Web site that converts text and photos into an easy-to-read mobile format, Case said.

Draga said Web shoppers occasionally are surprised when they receive a follow-up call from the store after downloading vehicle information. "They ask how we got their phone number," he said.

But most times, they take it in stride and get their questions answered.

Draga said: "We see if we can get them into the store."

(Source: Automotive News, 07/18/11)

Empowering the Gatekeeper

Do not bypass gatekeepers. Build alliances. Do not come down to their level. Come up to their level. You never know with whom you are talking. For all you know, the "secretary" is the owner.

Gatekeepers' jobs are to push you away, but in the same respect it is their job to determine what might be a benefit for the company. Humanize with them. Make a joke. Have fun. Be respectful. Treat them like they are the owner.

And here's an interesting idea -- never ask for the person in charge. Assume they are the people in charge. Say you want to meet with them "and whoever else also makes the purchasing decisions." There are two reasons here:

1) Who you think is in charge and who really is could be different people. By letting them say if they are or not, you will get the real answer;

2) At the same time, by respecting them and their importance, you are separating yourself from every other sales rep who tramples upon them with disrespect as they try to reach the decision-maker.

Back to School? Summer Season for Shopping Is Early This Year

This year, for the back-to-school shopping season, it is, as a sage once said, getting late early out there.

Many retailers and advertisers are moving up the start of their sales and marketing campaigns devoted to children's clothing, stationery, computers and other back-to-school merchandise. In at least one instance, ads that promote buying such items on layaway appeared in mid-June -- when schools in several parts of the country were still in session.

The front-running of the back-to-school shopping season is not unlike how Madison Avenue has for years been advancing the start of the Christmas shopping season. Indeed, even as some retailers begin their back-to-school sales early, they are also sponsoring "Christmas in July" sales.

In both instances, the reason for getting an early start is the same: with an uncertain economy, the goal is to gather ye consumer dollars while ye may, even if it may peeve some tradition-minded shoppers.

"We're not trying to shorten summer," said Mark Snyder, chief marketing officer at Kmart, part of the Sears Holdings Corporation, which moved up its annual ads about buying on layaway to mid-June from around the Fourth of July.

Instead, Mr. Snyder said, it is in response to changes in consumer behavior as "the high price of gas has compressed the frequency of trips" to shop.

"Rather than having to make additional trips," he added, consumers are "doing it early."

The first weekend in July brought newspaper circulars with back-to-school pitches from retailers like Staples, Target and Toys "R" Us. The next weekend, they reprised those themes and were joined by other chains like Best Buy ("Your back-to-school destination").

At the same time, August issues of magazines like All You, Family Circle, Martha Stewart Living and Parents have been arriving on newsstands and in subscribers' mailboxes with back-to-school ads from Lands' End Kids, Target and Wal-Mart, along with brands like Frito-Lay, Kellogg's, Germ-X hand sanitizer ("A back-to-school necessity") and Microsoft (make a new PC "school-ready with Office 2010").

Also last week, the declaration that "Back to school is kicking off at @Macys!" was received by those on Twitter who follow the Macy's division of Macy's Inc.

Marketers and retailers "have some reason to be nervous" and thus are "more proactive in reaching out to shoppers these days," said Frank Badillo, senior economist for the Kantar Retail unit of WPP in Columbus, Ohio.

Consumers, particularly in lower-income households, are "stepping up their efforts to look for deals," Mr. Badillo said, so "to be successful your message needs to be, 'This is what I can do to help you make ends meet in this economy.'"

Entertainment Promotions, which offers discounts through properties like Entertainment Book Membership and entertainment.com, started its back-to-school campaign on June 20, about a month earlier than last year.

"Consumers are worried, and they're stretched," said Dean DeBiase, chairman and chief executive at Entertainment Promotions in Troy, Mich. "They say, 'If I have to spend that money anyway, I might as well snag some deals in the dog days of summer.'"

The company also sells coupon books to schools as fund-raisers to sell to consumers, he added, and activity there "is also much earlier this year."

"It's almost like nothing stopped for summer," Mr. DeBiase said.

At Staples, said Carrie McElwee, a spokeswoman in Framingham, Mass., savings "always is a focus, but today it is more so." Although the back-to-school ads have "about the same timing for us as in previous years," she said, Staples is bringing out new offers for 2011 like a Back to School Savings Pass.

The pass entitles customers to 15 percent off purchases of items like backpacks, calculators and notebooks. It costs $10 and can be used once a day in Staples stores from July 3 through Sept. 17.

Also, students who show school IDs can receive a $100 Visa prepaid card through the Staples Easy Rebate program with the purchase of one of four laptop computers "that were chosen specifically for student needs," Ms. McElwee said.

A spokeswoman for Target in Minneapolis, Jennifer Mooney, said the retailer was "focused on delivering more value than ever" at Target stores and on target.com.

Although the back-to-school merchandise "is available at the same time this year as it was last year," she added, there is a renewed emphasis on savings through coupon offers.

For instance, "new this year," Ms. Mooney said, is a promotion in certain stores called Text to Get Coupon, by which shoppers can receive "an instant mobile coupon on specific items" like General Electric light bulbs.

One retailer is zagging while the others are zigging. J. C. Penney plans to introduce its back-to-school campaign next week, which will be a week later than last year.

"There is still a peak in the middle of August" to back-to-school shopping patterns, said Bill Gentner at Penney in Plano, Tex., who is serving as interim chief marketing officer after the retirement this month of Michael J. Boylson.

The later start is to help "make sure the campaign resonated with our customers," Mr. Gentner said. The ads will present Penney as "a headquarters for style and, at a time when it's so important, value," he added.

There will also be a cause marketing campaign, carrying the theme "Pennies From Heaven," that is to run through Aug. 27. Shoppers will be invited to round up purchases to the nearest dollar, with the additional sums, up to $1 million, being donated by Penney to local after-school programs like the Boys and Girls Clubs of America and the Y.M.C.A. of the U.S.A.

(Source: The New York Times, 07/19/11)

Overcoming Call Reluctance

Hesitation to make contact with prospective new clients causes more failures for salespeople than any other single factor. Why? Because if you don't approach enough people, it makes little difference how thorough your expertise is. Without a steady flow of prospects, your magnetic personality, credentials, product knowledge, and perfect presentations won't make much impact. Inactivity on the prospecting front nullifies your ability to engage these other strengths.

Successful selling usually involves five steps:

1. Identifying prospective clients (includes identifying referral sources).
2. Initiating contact with prospective clients and referral sources.
3. Introducing yourself, your products and your services.
4. Informing prospective clients of how you can help (giving your sales presentation).
5. Influencing the prospect's decision to buy from you.

Many salespeople are uncomfortable with steps 2 and 3, initiating and introducing -- but without them, informing and influencing can't happen! Ultra-professional presentation skills, dazzling rapport-building, detailed product knowledge and clever closes cannot and will not return a penny of profit if you don't have enough prospects.

The math is simple: Successful salespeople consistently initiate contact with more prospects than their less-than-successful counterparts.

Monday, July 11, 2011

TNT Debuts New 'Dallas'

Dallas-

J.R. Ewing will be back next summer. TNT will air a remake of "Dallas," which will be based on the CBS hit. Larry Hagman is reprising his role as the legendary J.R.

Other stars from the original series will be joining him. Patrick Duffy and Linda Gray will resume their roles within the tangled relationships in the oil and ranching world. New stars include Jordana Brewster ("Fast & Furious") and Brenda Strong ("Desperate Housewives").
 
TNT has ordered 12 episodes for summer 2012 from Warner Horizon Television. A preview will air Monday during the season debuts of "The Closer" and "Rizzoli & Isles" on TNT. In addition, preview site dallastnt.com is up.
 
The original "Dallas" aired regularly on CBS from 1978-1991. There were a pair of specials in 1996 and 1998 and a reunion show in 2004.
 
Cynthia Cidre, who wrote the film "The Mambo Kings" and produced the short-lived CBS series "Cane," wrote the "Dallas" remake pilot.
 
"TNT has explored the possibility of an updated version of 'Dallas' for several years, but it wasn't until we read Cynthia Cidre's outstanding pilot script that we knew we had the foundation for a great new series," stated Michael Wright, who heads programming for TNT, TBS and Turner Classic Movies.
 
In the original, Hagman and Duffy played warring brothers, and in the new show, the battles continue with a new generation.

The Most Affluent Also Seek Bargains Online


Online-Shopping
The nation's most affluent consumers are shopping online more often than other consumers, but that doesn't mean they're heading to sites that appeal to only the wealthy.

According to Unity Marketing's most recent survey of ultra-affluent consumers (those making more than $250,000 in annual income -- the wealthiest 2% of Americans), Amazon.com is the top shopping destination for about 45% of the demographic. That is more than two to three times greater than the next-most-popular Web site, Unity Marketing's President Pam Danziger tells Marketing Daily.
 
"[Amazon.com] has been a cornerstone of Internet shopping since e-commerce first began and has consistently adapted to the needs of its customers in order to build a loyal following," Danziger says. "For the most discerning affluent shoppers, Amazon offers outstanding levels of customer service along with an expansive product selection."
 
Yet the nation's wealthiest consumers are also looking for bargains online. Fourteen percent of shoppers went to eBay, 10% used Groupon and 8% hit Craigslist.com. Wealthy shoppers are also heading to flash-sale sites such as Shopittome.com, Gilt.com, Hautelook.com and Amazon's entry into the category, MyHabit.com.
 
"They don't get wealthy by spending all their money. They [like to] compare prices and features," Danziger says. "We have to recognize conventional wisdom doesn't apply. They'll go to Craigslist for bargains."
 
It's likely, she adds, that these wealthy consumers are heading to sites such as eBay and Craigslist to unload some of their own possessions, as well. Regardless, the wealthiest of consumers are clearly heading to these sites, and it would be a good place for marketers to find them. "It is important for marketers to realize that their wealthiest shoppers are keenly interested in value and bargains, particularly online," Danziger says. "These deal-oriented sites attract even those at the highest income levels."

by Aaron Baar, Friday, July 8, 2011

Signature Touchpoints Can Break Through Clutter

Breakthrough. All marketers strive to make their offerings stand out, be noticed and gain traction. Few achieve their goals -- categories are competitive, media is cluttered, budgets are limited and customers are moving too fast to notice.
 
In pursuit of breakthrough, many marketers repeat worn-out methods or fall prey to the latest digital fad. Many believe breakthrough can only be achieved through big advertising budgets or put blind faith in the power of innovation to sell itself.

A savvy few, however, have put their efforts into signature touchpoints -- with resounding success. Creating them helped Electrolux vault from a miniscule market share to owning a third of the North American premium kitchen appliance market in less than a year and despite the recession.

It was important for Electrolux to reconfigure European products for the U.S., and fashion a compelling message. But what made the difference was finding new ways to engage customers in the showroom, on the web and among kitchen designers, all critical to kitchen remodelers. In creating signature touchpoints around those interaction points, Electrolux's team created traveling designer showcases featuring spokeswoman Kelly Ripa, redesigned the in-store environment, and built a highly engaging web experience.

Signature touchpoints are a bundle of related points of customer interaction that have been redesigned to improve the customer experience and foster a unique, proprietary customer connection. They engage, motivate and, importantly, provide a platform for products and services to bypass customer filters and competitive noise to breakthrough.

Imagine 3M without its successful top-to-top executive relationships with the leaders at its customers' customers. Would Apple be as successful without the Apple store to entice customers to play with its products? Where would IBM be had it not turned consulting touchpoints into a competitive advantage?

Transforming important aspects of the customer experience into signature touchpoints takes just as much rigor and inspiration as new product development or building a communication campaign. Creating them relies on insights into how customers gather and filter buying information and requires innovative approaches to engaging customers along their path to purchase.
Here are the steps to build signature touchpoints:

1. Map the path to purchase:
The path to purchase varies based on category and the purchase occasion. A routine copy paper purchase follows a fast, price-driven path. It takes a far more considered path to source a high-tech material for a novel manufacturing application.

Successfully mapping the path takes understanding the role of influencers, barriers blocking a customer's movement along the path, and the places on the path that are critical to customers' decision making. Hill's Pet Nutrition, for example, a global leader in premium nutritional foods for dogs and cats, has created an array of signature touchpoints with veterinarians. These include the nutrition education that the company provides at no cost to veterinarians. It lets them fulfill their post-graduate learning requirements while building their understanding of emerging pet nutrition issues such as obesity or joint disease.

2. Develop innovative connection ideas
It takes a systematic and inspired innovation process to develop signature touchpoints, focusing on ways to transform, replace, enhance or extend existing interaction points. Co-creation is one effective way to create innovative signature touchpoints by engaging cross-functional teams to re-examine customer decision-making and generate customer connection ideas. Zurich's HelpPoint resulted from co-creation. This innovative signature touchpoint simplifies information gathering for customers evaluating insurance. The one-stop resource meets all their insurance planning needs, helping them at steps in their path to purchase when they are most confused.

3. Build integrated plans
Finally, signature touchpoints need to be integrated with products and messaging so they become a platform for products that break through the clutter and bypass customer filters. Integrated plans must be concrete, well sequenced, and include concrete progress measures. Integrated planning always appears simple on paper but drafting plans that are inspired and actionable is difficult.

Three simple practices can help. First, keep it short. Concise plans force the organization to concentrate on doing a few things well, they key to effective execution. Second, build a balanced scorecard early in the planning process that includes metrics of product satisfaction, message penetration, and customer connection. When metrics are decided early in the plan, they help ensure that the entire team is aligned on achieving results not just on activities. Third, focus on customer behavior. For every investment, ask two questions: What do we want customers to do? How will this investment help them do it?

Signature touchpoints are not new. Macy's in its heyday created the Thanksgiving Day Parade to kick off the Christmas buying season. Hallmark supported elevating Mother's Day into a card-giving occasion.

What is new is a proven approach to building them. Consider signature touchpoints the third dimension of marketing -- the crucial, and often overlooked, component in achieving breakthrough in the escalating battle for customer engagement.

by Fred Geyer and Chiaki Nishino - Marketing Daily 07/11/11

Wednesday, July 6, 2011

Hybrid Technology Enters the Mainstream of Auto Production

Your next car will probably have a little bit of Toyota Prius or Chevrolet Volt in it, whether you think of yourself as a high-tech fuel saver or not. Technologies pioneered by the 50-m.p.g. Prius and the Volt, which burns no gasoline at all on most trips under 40 miles, will soon be omnipresent.

Virtually every car will be a hybrid, with so many variations of electric-assistance that some manufacturers won't even use the word.

It's a challenge for automakers. They're struggling with how to tell buyers about the new features, which will increase fuel economy in a variety of ways.

"Customers think 'hybrid' means the Prius," a car mostly powered by gasoline but capable of driving on battery power alone for short distances at low speeds, said Jim Hall, managing director of 2953 Analytics. "That's very simplistic."

Technology that uses electricity to reduce petroleum consumption can already be found in everything from the battery-powered Nissan Leaf to the 414-horsepower twin-turbo BMW M3's automated stop-start system.

The number of vehicles with some degree of electrification will jump from five in 2008 to 116 by the end of 2011, David Vieau, president and CEO of battery maker A123 Systems, told the Detroit Economic Club last week.

That's just the start.

"It could become tough to find a car without electric augmentation in seven or eight years," Hall said.

Lincoln took a major step in the mass-marketing of hybrids when it made a 41-m.p.g.-in-the-city hybrid the base model of its MKZ sedan.

Many upcoming vehicles using electrification won't call themselves hybrids. They'll promise better fuel economy or performance without getting into nuts-and-bolts tech talk most people don't care about.

Buick and Chevrolet are prime examples. The base 2012 Buick LaCrosse will promise 36 m.p.g. on the highway and 25 in the city for less than $30,000, thanks to an electric system Buick calls eAssist. The 2012 Buick Regal midsize sedan aims to use eAssist for EPA ratings of 37 m.p.g. on the highway and 26 in the city.

The 2013 Chevrolet Malibu midsize sedan's Eco model will have the same system when it goes on sale early next year.

They won't wear "hybrid" badges, but they wouldn't exist without systems they share with high-profile hybrid and electric cars.

Hybrid technology has become an enabler, a means to an end -- lower fuel consumption.

"The manufacturers will talk about what the customer cares about, either the technology or the fuel economy," Hall says. That means models like the Toyota Prius will continue to headline the word hybrid, while others will talk dollars and cents gas mileage.

For a final confirmation hybrid tech has gone completely mainstream -- or a sign the apocalypse is upon us, depending on your point of view -- Toyota Racing Development, the rogues responsible for the company's 680-horsepower V8 NASCAR engine, have built a performance package for the Prius. It doesn't add any power to the Prius, but includes a ground-effects kit, 17-inch forged alloy wheels, low-profile tires, faster steering and a lower ride height.

Electrification is putting a charge into everyday vehicles.

(Source: Mark Phelan, Detroit Free Press, 07/03/11)

Cities Where American Car Brands Stand Out

In a study that compared the car shopping behaviors of consumers from 50 major U.S. metro areas, CarGurus (www.cargurus.com), the auto research and shopping site, found that consumers in the Midwest (the Detroit, St. Louis, Cleveland and Milwaukee metro areas) showed the strongest interest in buying American brand cars as compared to Asian and European brands.

For the study, CarGurus examined the car shopping behaviors of consumers using its flagship DealFinder car shopping service in 50 major U.S. metro areas during the past six months. For each metro area, CarGurus calculated the percentage of total pursued cars that were American brands, Asian brands or European brands.

Of the inquiries by car shoppers in the Detroit metro area, 67% were American brand vehicles, while only 16% were Asian brands and 16% were European brands. American brand interest in St. Louis was similar at 67%. Rounding out the top 10 metro areas exhibiting the most interest in American cars were Cleveland (59%), Milwaukee (58%), Tulsa (57%), Indianapolis (56%), Louisville (55%), Pittsburgh (54%), Minneapolis (53%) and Memphis (52%).

The metro areas with the lowest relative interest in buying American brand cars were all on the West Coast: Los Angeles (27% American car brand interest), San Francisco (27%), San Diego (27%) and San Jose (29%). Additionally, major East Coast metro areas of New York (32%) and Boston (33%) were among the 10 metro areas with the lowest interest in American brands.

According to the CarGurus study, consumers in the metro areas of Phoenix (56%) and Salt Lake City (52%) showed the strongest interest in Asian brand vehicles. These two cities were followed by Denver (48%), Columbus (48%), Boston (47%), San Diego (46%), Austin (46%), Oklahoma City (46%), Richmond (46%) and San Jose (45%).

Regarding European auto brands, the CarGurus study showed that Los Angeles (34%) and San Francisco (31%) car shoppers were the most interested. Also among the top cities in European brand inquiries were New York (29%), San Diego (27%), Miami (27%), San Jose (26%), Portland (25%), Atlanta (24%), Philadelphia (24%), Washington (23%) and Seattle (23%).

(Source: Marketwire, 06/27/11)

Low Stocks Stifle June Vehicle Sales

Execs See a Stronger Second Half

Auto sales in June slowed to their weakest pace in a year. But you wouldn't know it by listening to industry executives.

In the meager 7 percent increase over a weak June 2010, they saw the silver lining of pent-up demand. Given the myriad reasons consumers had to sit on their hands last month, the execs predicted a strong second half.

A dearth of incentives meant skittish shoppers weren't cajoled into showrooms. And those who did make it to dealer lots often couldn't find what they were looking for.

Sales at both Toyota Motor Sales U.S.A. and American Honda Motor Co. fell 21 percent, while Subaru dropped 8 percent from year-earlier levels. Those automakers blamed severe inventory constraints related to the March 11 Japan earthquake.

But every other automaker's sales rose, and the major players' sales climbed at least 10 percent.

June light-vehicle sales rose 7 percent to 1.1 million units, after a down May that snapped eight straight months of higher sales. But industry insiders were surprised by a seasonally adjusted annual sales rate of just 11.4 million units, down from 11.8 million in May.

One reason for the lackluster month wasn't related to the quake: Reports on housing, unemployment and consumer confidence all looked bleak.

But the fact that most automakers other than Toyota and Honda had higher sales despite the head winds seems to have emboldened industry execs. Many are predicting a strong second half as inventories eroded by the after-effects of the Japanese earthquake are replenished.

"While we've had these couple of bumps, we believe that the recovery will get back on track," said General Motors U.S. sales chief Don Johnson. He points to "high pent-up demand that's backstopping the industry."

Few incentives
Incentive spending remained at rock-bottom levels in June, an average of $2,300 per car industrywide, according to TrueCar.com. Incentives remain at their lowest levels in nearly six years.

The average transaction price in June topped $30,000 for the first time ever.

Toyota reiterated last week that all of its U.S. plants and models will be at 100 percent production by September.

"We are back in the sales business," declared Bob Carter, Toyota Division general manager.

Discounts could start flowing again as Japanese automakers recover, said Jesse Toprak, TrueCar's vice president of industry trends. Last month Honda, Toyota and Nissan all increased spending, especially lease deals -- a sign they're ready to fight to get customers back.

"We expect incentives to increase strongly from this point on," Toprak said.

He said he believes the perceived shortage of Japanese inventory is partly to blame for the sluggish sales.

Al Castignetti, vice president for Nissan sales, agrees.

"We didn't see the floor traffic we expected all month," he said. "I believe people are thinking that with the low inventories that are available they're going to get gouged, and so they're staying away."

Trucks return
Full-sized pickup sales bounced back, in line with a steady fall in gasoline prices during June. Industrywide, pickups sales rose 9 percent after falling 13 percent in May.

"We're starting to see some stability in fuel prices, which is bringing people back into the market," Toyota's Carter said. "We continue to be optimistic on growth of the market on the pickup side."

Better truck demand helped Chrysler Group, which rode to a 30 percent jump in June volume on sharp demand for Jeeps and a 35 percent jump in Ram truck sales.

Ford said its F-series pickup sales rose 7 percent to 49,618, for one of its strongest months in three years. GM said sales of full-sized GM pickups rose 6 percent from a year earlier. GM's Johnson expects the segment "to steadily increase for the remainder of the year."

Chevy dealer Skip Weber says customers at his four stores in the St. Louis area have reacted much differently to this year's higher gasoline prices that they did during the last spike in 2008.

Back then, many of his customers flocked to fuel efficiency by trading in trucks for cars. This time they sat tight.

"A lot of people this time just chose not to buy a new truck," Weber said. "As gas prices go down, I think it will spur some of that pent-up demand."

April Ancira, vice president of the Ancira Auto Group in San Antonio, said she's optimistic about the summer but worries that the budget standoff in Washington could start to weigh on customers' minds.

"I'm very bullish, especially considering gas prices are steadily dropping," she said. "That's a good sign for the popular summer selling months."

(Source: Automotive News, 07/04/11)

Three Key Rules of Sales

Rule 1: Know more about the customer than anyone else.
Rule 2: Get closer to the customer than anyone else.
Rule 3: Emotionally connect with the customer better than anyone else.

Every great sales professional excels at following and living by all three of these rules. In a customer-driven market, which we are in and will be in for the foreseeable future, there are no substitutes for knowing more about, getting closer to, and emotionally connecting with the customer.

The Three Rules are actions that take place simultaneously, for when you know more about the customer than anyone else, you have the ability to get closer than anyone else, and you then begin to connect emotionally. Combining these three actions will give you the single greatest competitive advantage in business.

I have always remembered something taught by the great sales trainer Tom Hopkins. Hopkins always said that your first goal as a salesman is to have the customer "like you and trust you." I agree with this idea, but it's not the starting point. Having the customer like and trust you is what happens when you get closer and establish an emotional connection. The process begins with knowing more about that customer.



Joe Calloway