Express Your True Intent

Tell customers upfront: "I don't know if there's a fit between what you need and what I have right now, but I'm hoping we can explore that in more detail during this meeting."

Or: "In the end, I hope that we can mutually decide if there is a reason to move forward. If not, that's fine, too, and I hope you'll feel comfortable telling me so."

This advice runs counter to 90 percent of the approaches I see. But then again, maybe that's why only 10 percent of salespeople are top performers.

Try it yourself a few times, and you'll be amazed at the response you get.

Travelers Increasingly Choose Luxury in the Sky

Travelers increasingly are splurging in the air and scrimping on the ground.
A new American Express Business Insights study finds that spending on first- and business-class airline tickets increased by 9.1% and 5.4%, respectively, in the third quarter. But on the ground, travelers spent more of their dollars -- an additional 10.5% -- on economy lodging vs. only 2.2% more on luxury hotel accommodations in that time.

The reason for the seemingly bipolar spending: A growing frustration with flying and an improvement in the quality of economy lodging, industry analysts and travelers say.

"It really speaks to the fact that (consumers are) so concerned about the airline experience that they're willing to make the trade-off," says Maryam Wehe, senior vice president of hospitality at Applied Predictive Technologies, a consulting firm.

The spending trend applies to traveling for business or leisure, the study indicates.

Frequent traveler John Harding, a family law attorney in Pleasanton, Calif., says he doesn't mind paying more to fly business class. But when it comes to lodging, he's looking to save.

"It's a whole lot more miserable for me to spend five or 15 hours on an airplane in economy than for me to spend a couple of days in a budget hotel," Harding says.

Harding follows the same pattern whether flying for business or pleasure. He recently spent $1,100 each for business-class tickets to Hawaii for himself, his wife and two teenage children. But he spent less than $200 a night for the hotel.

Usually, he says, he tries to keep the nightly hotel bill under $125. "The only time I spend in a hotel is when I'm sleeping," he says. "I don't need all the accoutrements."

That seems to be the case among both affluent and average-income travelers. The American Express study found that midscale and even upscale hotels, the second-highest category, lost favor among all types of travelers, with declines of 3.4% and 3.9%, respectively.

"The most pronounced trend we're seeing is 'luxury or value,' which also speaks to the barbell effect apparent in travel -- and other sectors -- wherein consumers selectively choose either high-end or low-cost options, squeezing out the midtier providers with flat or declining spending growth," says Ed Jay, senior vice president of American Express Business Insights.

Other frequent business travelers say they're doing the same thing.

"A good comfortable bed and shower, the ability to work and get food and drink when needed works for me," says Stephanie Dickey, who lives in Richmond, Texas, and works as vice president of sales for an import company.

The upswing in business travelers opting for premium seats may also be attributed to companies loosening their policies on letting employees fly first or business class as the economy has improved.

According to a Global Business Travel Association report, just 42% of companies banned premium-class air travel this year compared with 47% last year.

And, analysts say, business travelers often may have had no choice but to upgrade their seats. In 2009, the economic downturn and high fuel costs forced airlines to cut flights.

Business travel has rebounded, but airlines have been slow to add flights, says Joel Wartow, senior director of the Solutions Group for Carlson Wagonlit Travel, a corporate travel agency.

(Source: USA Today, 12/13/11)

Gen Y, Boomers on Same Smartphone Page

Boomers...they're just like Millennials, at least when it comes to smartphones.

According to research commissioned by Consumer Cellular (which is the official cell phone plan provider for the AARP), Boomers use their smartphones in much the same way that younger customers do.

One survey conducted by the company found that 90% of current 40-plus smartphone owners taught themselves the features and functions of the device, and nearly 60% cite email as the most-used app on their phones.

The survey also indicated that Boomers wanted to use their phones to access the Internet as much as younger consumers. A full two-thirds of the respondents said they use the phone's WiFi features to connect to the Internet.

According to the survey, 64% of male smartphone owners and 48% of female smartphone owners most frequently visited news Web sites (although men were three times more likely to visit sports Web sites, while women tend to visit social media websites).

Meanwhile, a quarter of them have given up their landlines in favor of cell phones. "These surveys show that Boomers are as interested in the latest phones and technologies as younger generations," said Consumer Cellular CEO John Marick, in a statement.

(Source: Marketing Daily, 12/23/11)

Auto Sales Could Hit 14 million in 2012



Auto sales could hit 14 million in 2012.

Analysts Cite Easier Credit, Aging Fleet

Rising employment, better credit availability, new products and urgency to replace aging vehicles will drive U.S. auto sales higher in 2012, forecasters say.

Sales predictions from 11 independent analysts ranged from 13 million light vehicles (Wells Fargo Securities) to 14 million (Morgan Stanley). The average outlook of 13.6 million would be up 6 or 7 percent from this year's sales, which are likely to finish between 12.7 and 12.8 million units.

That 1 million unit spread in forecasts is narrower than the 1.5 million spread among 2011 forecasts by seven analysts a year ago.

All the analysts expect as much disruptive and unsettling economic news in 2012 as there was this year. But they say American auto buyers don't scare as easily as they did three years ago, when the financial crisis hit.

Crisis-jaded consumers have become less likely to change car-buying behavior based on economic news -- good or bad, says Alec Gutierrez, senior market analyst for Kelley Blue Book.

Gutierrez noticed the change in summer during the congressional debt-ceiling standoff that triggered a cut in the U.S. credit rating.

"The Dow fell 1,500 points -- and car sales stayed smooth and consistent," he said. "The American consumer has seen so much gone wrong. If they have to buy a car, they will."

Economic ups and downs won't greatly alter 2012 auto sales, said Jeff Schuster, top forecaster of the Americas for LMC Automotive, formerly a unit of J.D. Power and Associates. He forecasts sales of 13.8 million.

A sharp European recession would trim 2012 U.S. light-vehicle sales by no more than 300,000, Schuster said, while a U.S. economic surge might add 200,000 units. More important are pent-up demand, larger inventory and growing credit availability.

"So 2012 depends on those positive trends and the will of consumers to replace vehicles," he said.

Jesse Toprak, vice president of TrueCar.com, said: "Consumers are changing their attitude. Many are comfortable buying a car even though there is no clarity on the economy."

Even relative pessimists say U.S. consumers are harder to scare.

"Consumers are feeling insulated from bad news and secure in their own jobs, so pent-up demand has been driving sales," said Mike Jackson, head of North American auto forecasting for IHS Automotive, who sees 2012 sales at 13.3 million. But Jackson worries that if conditions worsen, particularly if Europe's debt crisis affects credit availability in America, "then consumers will once again postpone purchases."

Most forecasters minimize the odds that troubles in Europe will hurt U.S. auto sales. Polk's Germany-based analysts, for example, compare the debt-crisis debate there to the August U.S. debt-ceiling squabble, said Anthony Pratt, Polk's director of research, Americas.

"There will be lots more noise yet, but in the end it'll get done," Pratt said.

Paul Taylor, chief economist for the National Automobile Dealers Association, says that if European sales falter, U.S. shoppers could benefit.

"German automakers will target the U.S. market to sop up excess capacity," Taylor said. For the same reason, he said, Asian automakers would boost shipments to North America, probably triggering higher incentives and sales.

The increase in sales will be mirrored by a rise in North American production. In fact, four forecasters project the same North American light-vehicle production next year: 13.8 million, up from about 13.0 million this year. That's about the same rise as U.S. sales.

The four prognosticators are IHS Automotive, LMC Automotive, NADA, and Polk.

Most forecasters see sales momentum accelerating in the second half of 2012.

Adam Jonas, top global auto analyst for Morgan Stanley and the most optimistic forecaster at 14 million, expects the seasonally adjusted annual sales rate -- which has been slightly above 13 million since September -- to fall back into the high-12 millions in the first quarter and then start to build.

"We expect a slow start" in 2012 once a flurry of Japanese catch-up buyers eases and because of the end of the accelerated-depreciation (business tax rule that has boosted truck sales) on Jan. 1," Jonas said. "Then the SAAR will improve to the 14 million level by May or June and exit the year in the high 14s."

Forecasters said the recovery of auto sales, from a low of 10.4 million in 2009, likely would continue the slow pace into 2012. The economic fundamentals most closely tied to auto sales -- personal income, unemployment rate and housing starts -- are still weak.

But other factors are helping sales, especially the need to replace America's aging vehicle fleet. The average age of vehicles on the road has risen to 10.7 years, up from 8 or 9 years during most of the past decade, said Tom Kontos, executive vice president of customer strategies and analytics for auction house ADESA.

"Americans have gone without for a very long time," he said. "'I need a car' is the biggest reason for optimism."

Morgan Stanley's Jonas cited higher leasing rates, new model launches and better credit availability.

It's no longer difficult to finance new-car buyers at Egglefield Ford in Elizabethtown, N.Y., said owner Dennis Egglefield.

"A buyer with a 620 credit score can get a loan in the 4 percent range," he said. "Lenders are actually trying to do some business."

------------------------------
(Source: Automotive News, 12/26/11)

Last-Minute Hotel Reservations on the Rise

Smartphones are empowering a segment of hotel customers often overlooked by the industry: last-minute buyers who aren't traveling.

Hoping to draw impulsive buyers addicted to daily coupon alerts, hotels and online travel agencies are introducing a flurry of new specials and features targeting those who book a room locally on the day of the stay.

They include couples celebrating anniversaries; long-distance commuters working late; people without electricity; travelers whose flights are canceled; and suburban deal seekers who can't resist a 30% discount at a fancy downtown hotel.

Orbitz, which launched its Orbitz-Hotels app for iPad in the summer, says 65% of its mobile bookings are same-day reservations (vs. 14% on desktop). Orbitz also recently launched a redesigned mobile website that includes a new tonight-only deals feature.

Hotel Tonight, an app featuring daily deals from hotels cutting prices by at least 20% for the night, is one of the most popular travel apps, with more than 800,000 downloads.

Priceline launched its Tonight-Only Deals feature in October, selling discounted deals from hotels that disclose their names. (Priceline's name-your-price auction doesn't reveal hotel names.)

About 60% of mobile bookings are for the same day, says John Caine, Priceline's senior vice president of marketing. "There's a certain portion of travelers who don't like planning," he says.

"In Connecticut, more than half the people were without power for days and days" after an October snowstorm, says Priceline CEO Jeff Boyd. "We literally watched the hotel reservations light up on our mobile devices."

The hotel-tonight trend is part of a broader buy-now shift in the economy enabled by mobile technology. But hotels, especially independent properties, are willing to participate in this new sales channel because about 40% of rooms on average go unsold each night.

Hotels also like the feature because they don't have to commit a minimum number of rooms, says Sam Shank, CEO of Hotel Tonight.

"Technology is making it easier to fulfill the need that's been out there," says Andrew Kauffman, vice president of e-marketing at Marriott.

About half of Marriott's mobile bookings are same-day reservations, he says.

Large hotel chains are also concerned about any new technology that might detract from a hotel stay being "an amenity-driven, emotional experience," Kauffman says. "We don't want to make it solely about price. It's undermining all that we do that makes hotels great."

(Source: USA Today, 12/08/11)

Top Restaurant Marketing Trends for 2012

Marketing Agency Predicts Ways to Tap 'Influencers' to Drive Traffic

With the battle for market share expected to get even tougher next year, restaurant operators will have to be smarter in how they target "influencers" -- people others turn to for restaurant advice -- to drive traffic.

So says Carin Galletta Oliver, president of the San Francisco-based world-of-mouth marketing agency Ink Foundry, who predicts six restaurant marketing trends for 2012 -- plus one trend she contends restaurant operators should rethink in the new year. Ink Foundry has worked with restaurant brands such as Bonefish Grill, Fogo de Chao, California Pizza Kitchen, Rubio's Fresh Mexican Grill and Carl's Jr.

Consumers are growing ever more selective about restaurant choices as they cut back on dining out occasions, Oliver said.

"They're going to want to feel they're making a safe choice," she said. "And that puts more pressure on restaurant operators to make a connection."

Oliver predicts five key tactics restaurant operators will use next year:

Data. The number of tools that allow restaurant operators to collect information about social media, public relations, e-mail marketing and advertising is growing. Savvy restaurant operators are also collecting data on their customers in various ways.

The key, however, will be how well restaurant operators integrate that data and develop a more holistic analysis across all platforms.

Most restaurants keep data in separate silos, Oliver said, thinking of marketing, public relations and influencer relations as separate departments.

"You need to break down those walls," she said, and merge that information to more effectively mine insights.

Identifying and activating influencers. Restaurant operators tend to define their customers in demographic terms, but today's restaurant influencer is likely to defy or transcend more traditional demographic characteristics, like income level, gender or age.

A powerful restaurant influencer today, for example, might be a young woman who traveled through Europe, living in bargain-rate hotels so she could spend more money on high-end restaurants.

"If you looked at her on paper, she probably wouldn't be on your list" based on demographics, said Oliver. "But if you listen to her conversations, you'd realize she's in your restaurant five times a month and spends more money" than the average diner.

Those are the people who are driving restaurant recommendations these days, Oliver said, and restaurants next year will be developing tools to encourage those people to spread the word about their brands.

"We need to identify those folks and create programs for them so they can more easily pass along information to friends and family," Oliver said.

Some restaurants, for example, have used gift certificates given to specific influencers to share with friends and family members. "That's like a third-party endorsement from someone they really trust," Oliver said.

And as gift certificates become more available in digital form, restaurants can track how they're used, who is sharing them and their impact.

Signature items. Most restaurants have a signature item or two that stands out, but Oliver sees the role of the signature dish becoming increasingly important.

Having a great signature dish is one way to offer influencers a "wow experience," Oliver said. "It gives them something to tell their friends about."

It also gives people something to search, she said.

Consumers tend not to search online for generic terms like "steak restaurant." Instead, they'll look for where they can find a great macaroni and cheese dish or taco.

Oliver noted the Bonefish Grill chain, which is known for its Bang Bang Shrimp appetizer, an item that creates positive chatter on Yelp.

"It's extremely challenging to sway diners from one restaurant to another, but a great signature item has the power to do it," she said.

Loyalty programs look to gaming. Loyalty programs are effective tools for driving traffic, but next year Oliver predicts more restaurant operators will be integrating aspects of social gaming -- offering rewards for certain actions, like referring friends or multiple visits.

Rather than offering guests nebulous titles, like the mayors of Foursquare, Oliver said restaurants will offer more tangible offline incentives for participation in loyalty games.

One-to-one accessibility. Restaurant chefs used to stay closed in their kitchens, but the age of social media has allowed those who cook to engage with those who eat in ways that were formerly impossible.

In 2012, however, Oliver predicts that customers will be demanding even more direct interaction with chefs, both on and offline -- and not through an intermediary on the marketing team.

Expect to see personal messages directly from the chef to his or her best customers informing them of menu changes, nightly specials and suggestions based on past orders, Oliver said.

"As chefs get more comfortable with being in the limelight and with using technology, we'll see even more engagement," she said.

Coupon personalization. In 2011, many restaurants experimented with social coupon sites, such as Groupon or LivingSocial, with both positive and negative results, Oliver said.

Next year, Oliver predicts restaurants will continue to experiment with social couponing, but they will do so with more realistic expectations. They will also look for ways to have more control, to customize the offers and to ask for more data on results.

Oliver said more restaurants will use their customer lists to promote such social coupons, focusing on top influencers to provide a value-added experience and reward pass-along recommendations.

More generalized coupon seekers "tend to just come for the coupon and never come back," Oliver said. "And you can't upsell them."

Search local. Allocating resources to enhancing local search engine efforts is not likely to drive traffic, Oliver said.

Surveys by Ink Foundry have found that consumers tend not to select where they dine out based on online search engine results, she said.

Word of mouth is far more effective, Oliver said. Once consumers have a recommendation from an influential friend or family member then they turn to sites like Urbanspoon or Yelp to look up information.

Restaurants may be better off spending marketing dollars on identifying and courting those influential guests, rather than pouring dollars into local search enhancements.

"You want a well-rounded approach," Oliver said. "Remember, most influence happens offline."

(Source: Nation's Restaurant News, 12/19/11)

Competing Against Yourself

The truest measure of your success is not whether or not you're better than everyone else, but if you are better than YOU used to be!

You can be better than everyone else and still be WORSE than you used to be, which is no reason to beat your chest in pride.

Remember: Your objective is not to become successful and then let your pat on the back turn into a massage. Rather, your objective should be to strive to reach your maximum potential.

As long as you continue to grow, you will never reach your maximum potential. It is an endless journey. But it's the journey that keeps you moving; stretching; learning; hungry and humble.

Consumers look to help good causes with gifts

For some shoppers, a chic cashmere scarf has to be more than comfy and attractive neckwear to be plucked off a store shelf this holiday season.

They need to know that the wooly wrapping was stitched in America (or somewhere that supports free trade), and that part of the purchase price benefits charity. For good measure, the accessory should also somehow reduce the buyer’s carbon footprint.

The ranks of such cause-conscious shoppers are growing, retail analysts say. They are looking for more than good prices and quality - seeking gifts that are made locally or sold by small businesses, made under sustainable or environmentally friendly conditions, and benefit someone besides the recipient. The movement is being driven by heightened shopper awareness, wariness of conspicuous consumption, and the popularity of websites promoting informed giving.

“There is a pervasive sense that people want to try to give back in a world that feels increasingly chaotic and out of control, even when it comes to shopping,’’ said Jon Carson, chief executive of BiddingForGood in Cambridge, a two-year-old online marketplace that combines shopping and charity.

Nonprofits, schools, and charities can list items they want to auction on BiddingForGood’s site. The company says 91 percent of sales proceeds go to the organizations.

“There is angst around overconsumption and people want to shop for gifts with a purpose,’’ Carson said. “It makes people feel less guilty about spending.’’

This year, Patty Levy, of Lincoln, used BiddingForGood to do her holiday shopping for the first time. She scored a pair of $20 silver-and-turquoise earrings for a friend and a $345 baseball for her husband and son that was signed by Red Sox legend Carl Yastrzemski. Her purchases provided funds for an educational nonprofit in New York and a community organization in California.

“I always love sharing where gifts come from. And this is more meaningful - not only is it a gift, but is also helps out an organization,’’ Levy said.

Kara Iskenderian knocked out her holiday shopping earlier this month at the OneWorld Global Crafts Bazaar at Tufts University. All the net proceeds from the sale of local and global handmade products benefited GoodWeave, a nonprofit based in Washington, D.C., that works to end child labor in the carpet industry and to offer educational opportunities to children in South Asia.

At the OneWorld bazaar, the college freshman bought three fair trade woven scarves for $12 each for her mother, sister, and best friend, along with beaded jewelry for her aunt.

“I won’t shop at places like Walmart. But trying to buy gifts that are socially conscious and sustainable can be more difficult because you have to go out of your way to find options,’’ she said. “I think it adds extra meaning to the gift so it’s worth it. And they’ll be proud to wear it.’’

Vincent Kasten, a sustainability specialist at retail consulting firm Kurt Salmon, said the combined growth of social media and online shopping has made it easier for merchants and nonprofits to tap into the cause-conscious movement as it becomes more mainstream.

“It’s a multiplier effect, with more people becoming aware and more people getting involved in this type of activity,’’ Kasten said.

The Clear Water Carbon Fund in Maine recently launched a program that allows people to purchase trees for $6 that will be planted in either Maine or Vermont to help address greenhouse gas emissions. The organization marketed the trees as holiday gifts this season with the option to send a personalized note to the recipient. Just in the last month, the group sold more than 250 trees as presents - and 11 of them were purchased by Deb Harrison of Dedham.

Harrison, who teaches a class in environmental sustainability, set aside her usual gifts of paperwhite bulbs or homemade food in order to give the trees this year.

“Everyone does not need more stuff, even for the holidays,’’ Harrison said. “I think it’s the right thing to do and something my friends and kids would appreciate. It’s a way of sharing your own passion in way that matters.’’

Jenn Abelson-The Boston Globe

GM’s Chevy Eyes One Of 35 Indie Films As A Super Bowl XLVI Commercial

General Motors division Chevrolet has for the past few months been soliciting from filmmakers worldwide submissions for an ad that could potentially run on NBC during Super Bowl XLVI.
Chevy has closed the competition but opened another: People can visit a dedicated Web site to vote for their favorite.

In addition to getting a sneak peek at at a possible Super Bowl spot, visitors to the site have the opportunity to win up to $10,000, which is part of a larger $15,000 purse being offered by the automaker for watching and sharing the entries. (Full details here.)

GM is planning to have five 30-second spots on Feb. 5, one of which will go to the winner of this competition. Ad time has been selling for upward of $3.5 million for a 30-second space, per analysts, but companies with multiple spots usually pay a lower bundle rate.

The Chevy Super Bowl event, under a “Chevrolet Route 66” umbrella, is running now through Jan. 26, 2012. After that, Chevy execs will look at the films that have received the most views to help make their final selection.

Chevrolet has been working with Microsoft on the project.

The company said it received nearly 200 submissions from 32 countries, including Brazil, Canada, China, France, Germany, India, Mexico, the United Kingdom and United States. Chevy said that growing percentage of its sales are coming from international car buyers and is using this promotion, in part, to strengthen those bonds.

Among the 35:
• “Happy Grad”: Parents are giving their son a mini-refrigerator as a high school graduation present for his college dorm. He and his friends mistakenly think he’s getting a 2012 Camero. “Best gift ever!” they all yell as a neighbor, who actually owns the Camero, drives away.

• “Miss Van Der Volt”: A woman lets her friend sit inside her new Chevy Volt. Once inside, the friend envisions herself as a super heroine – Miss Van Der Volt. After she gets out of the car, the Volt owner’s other friends fight for their turn behind the wheel.

• “Dogs And Horses”: In a similar vein, a dog eyeballs a new black Camero, but not for the tires. He pictures himself behind the wheel, head out the window, speeding down an open highway. The dream ends when the car’s owner catches the pooch behind the wheel. Turns out this is not the first time. “George,” yells out the car owner, “you dog’s sitting in my car again!”

• “Cindy, I Love You”: A young man is seemingly seeking to cross items off of his bucket list. Next up: Telling a former girlfriend that he loves her. He drives to her wedding ceremony in his Chevy, bursts through the chapel door and yells, “Cindy, I love you!” The woman, in her wedding dress, replies, “My name is Candy.” The awkward moment becomes sentimental when it turns out the guy was completing a list for his deceased friend. “You had the worst handwriting ever,” the guy says about his friend as he moves on to the next task.

• “School’s Out”: A grade school teacher has the rapt attention of his class, even after the bell rings and the weekend arrives. The kids even follow him out of the classroom and to the parking lot. Turns out that he has a new Camaro. When he gets in and revs the engine, all of the kids go “Oooooh.” Then one of the students says to the other, “When I grow up I want to be a teacher.”

BigLeadSports : Business, NFL, Super Bowl Ads, Super Bowl XLVI Barry Janoff

Look for Hefty Holiday Spending on Local TV

Retailers are booking lots of TV ad time to lure shoppers.
The outlook for consumer holiday spending isn't particularly strong this year, with forecasters predicting growth of 2.5 to 3 percent over 2010, about half last year's growth rate.

But spot television spending should be very healthy despite that lukewarm forecast, ending a string of months of flat or declining spending following a softer-than-expected spring.

The reason is simple.

Shoppers still feeling the pinch of a down economy are looking for the lowest prices, and retailers are competing fiercely to reel them in with gimmicks like midnight openings on Black Friday.

They're willing to use any means to get consumers into the stores.

"Fourth quarter rates are up, and we're anticipating sell-out conditions in some markets," one East Coast media buyer says.

That will be a big change from recent months in spot TV. During the first half of the year spot spending fell 1.2 percent, according to Kantar Media data analyzed by the TVB.

Spending took a hit during second quarter when Japanese auto companies largely suspended advertising in the wake of the earthquake and tsunami that hit their country, leading to production and supply problems.

That led other automakers to pull back as well because they had less competition. The lack of auto advertising meant an excess of inventory of some markets, where pricing flatlined or dipped.

But things are looking better for fourth quarter, especially the final six weeks of the year.

Many retailers, including department and discount stores, have already been advertising their holiday sales for weeks. Pre-holiday sales have also been more popular this year, prompting more spending to advertise these new offers.

Clothing retailers have been particularly active, note buyers, and electronics should be growing as well as retailers battle to offer better prices on holiday must-haves like tablets, smartphones and TVs.

Also helping the fourth-quarter spot outlook is a small influx of political spending ahead of the surge of campaign ads in the first quarter.

Only a handful of states with early primaries will benefit from this spending, but they are important states that will set the tone for the later primary season, including Iowa, New Hampshire, South Carolina and Florida.

In first quarter, when many states will see the start of the lowest unit rate political window, political should pick up for the post-holiday decline in retail spending and keep spot TV spending on the rise.

ZenithOptimedia predicts that spot TV spending will be up 8 percent next year, to $22.6 billion.

Toni Fitzgerald - Media Life

Chrysler extends streak, Toyota ends slide; industry looks up

Chrysler continued its year-long surge, and Toyota had something to crow about for the first time since spring.

Those factors combined to help U.S. light vehicle sales jump 14 percent in November and produce the strongest selling rate of the year.

"I've been waiting to say this for seven months," Toyota brand General Manager Bob Carter said in a conference call. "For the first time since the earthquake and tsunami in Japan disrupted worldwide automotive production, Toyota sales were up last month."
Among the highlights:

• U.S. consumers shook off concerns about European debt and a stalemated Congress to boost auto sales. The 14 percent increase was the biggest since an 18 percent advance in April, before the full toll of the March quake was felt
• On a volume basis, unit sales failed to top the 1 million mark for the fourth straight November. But they were close, at 994,786.
• The seasonally adjusted annual selling rate of 13.6 million was the highest since the cash-for-clunkers government stimulus program in August 2009. This year's previous high: a pre-quake 13.3 million in February.
• Chrysler Group's 47 percent increase marked its 15th straight double-digit gain. The company is now up 25 percent for the year.
• Since soaring 42 percent in February, Toyota Motor Sales had posted seven monthly sales declines and one increase -- a 1 percent rise in April. Last month's 7 percent gain was split equally between the Toyota division and Lexus.
• Two companies still haven't been able to shake the effects of the quake. American Honda was down 6 percent in November, and Subaru fell 15 percent. Each extended their monthly losing streaks to seven.
• Subaru was the only company that recorded a sales gain in 2009, when the industry collapsed 21 percent. This year it's on track to post a decline -- 2 percent through November in an industry that's up 10 percent.
• Aside from Honda, all major automakers posted bigger gains in November than in October. In addition to Chrysler Group's 47 percent, Hyundai-Kia Automotive jumped 29 percent, Nissan North America rose 19 percent and Ford Motor Co. grew 13 percent. General Motors matched Toyota with a 7 percent increase.
• German companies led the smaller automakers. Daimler AG jumped 47 percent; Volkswagen Group gained 29 percent; and BMW Group rose 15 percent. Volvo was up 19 percent, Jaguar Land Rover rose 17 percent, and Mazda advanced 20 percent.
• In addition to Honda and Subaru, four other automakers lost volume in November: Suzuki, down 22 percent; Mitsubishi, down 13 percent; Saab, down 10 percent; and Porsche, down 7 percent.
• Looking ahead: November's growth shows underlying conditions continue to improve, said Jesse Toprak, vice president of TrueCar.com.

"This sets the market up for a strong finish to the year and a good start to 2012," he said. He repeated his forecast of 13.8 million sales next year. That would be the highest since 2007, before the industry's collapse.

Jesse Snyder - Automotive News

Baby Boomers: Building With Multiple Generations In Mind

The recently released “MetLife Report on American Grandparents” revealed that 1 in 10 households is headed by a grandparent with at least one grandchild living there. The study reports that part of the reason for this is high rates of unemployment among the children’s parents. Interestingly, in 1980 there were only 28 million Americans living in a household that included two adult generations or a grandparent and at least one other generation. By 2008 the number was 49 million Americans living inter-generationally.

In a recent New York Times story about this trend, Kermit Baker, a senior fellow at the Joint Center for Housing Studies at Harvard and the chief economist of the American Institute of Architects, said, “Immigrants are a source of growing demand (for intergenerational homes), and their household composition is different in fundamental ways from the domestic-born.”

In 2007, a developer was set to break ground on a condo community in Sunnyvale, Calif., when the market crashed. In early 2011, developer Taylor Morrison revisited those plans and won approval for a town home project specifically targeting multiple generations living under the same roof.  This style of living appeals to the engineers coming to Silicon Valley from India and China with their extended families, according to the Times report.

There are signs, however, that this isn’t just a trend in the immigrant population. In a new book, Unassisted Living: Ageless Homes for Later Life, authors Jeffrey Rosenfeld, director of the Gerontology Program and Gerontology Center at Hofstra University, and Wid Chapman, the interior design program chair at Parsons School of Design, discovered that a number of Boomers are designing and building for their older years with multiple generations in mind. Whether creating a “compound” with multiple structures on the same property or a single home that embraces all generations, there is a clear desire to age at home, both supporting, and with the support of, adult children and grandchildren.

There is great interest in how Boomers are currently living and how and where they will choose to live in retirement.  It will not be their parents’ retirement.  It appears that Boomer idealism is being translated into realism that their children and grandchildren will not have the same quality of life, so they must be there to help fill the gaps. The National Association of Realtors’ new campaign on home ownership taps into this fear. It features a grandparent and grandchild talking about the American dream of homeownership.

Digital Approaches Tipping Point

For the first time since being tracked, digital media -- including online, social and mobile -- has approached parity with television as the most important medium among agency executives, according to the latest quarterly survey from Strata, the media data processing provider that services roughly half of all U.S. ad agencies. Asked what their No. 1 medium of choice was during the third quarter of 2011, 34% of agency executives cited digital, only one point lower than the 35% who cited local TV. That's the closest point of parity in the three years since Strata began querying its agency clients on the dominance of various media in their workflow and budgeting, and represents a 43% leap from the second quarter of 2011.

The findings, which are based on a segment of more than 900 agencies that process about $50 billion worth of media through Strata’s systems, also reflect the rapid decline in the importance of television over the past three years, along with other traditional media, as agencies and clients refocus their energies on digital media matters and workflow.

In fact, the survey indicates that digital may be at the tipping point of overtaking all other media in terms of importance, especially if the economy becomes any more unstable. While the third-quarter survey indicated that advertising budgets remain relatively stable and continue to grow overall, the agency respondents said print (52%) and local TV (24%) are the media most likely to take a hit by ad spending cuts.

While the executives said their advertising plans currently remain stable, most said they don’t expect the marketplace to gain strength until after 2012, and that TV-centric categories such as automotive and entertainment are the categories asking to cut ad spending the most, according to 30% and 21% of respondents, respectively.

“The economy is forcing many advertisers to look for more affordable ad avenues -- i.e., digital and radio,” said Strata President John Shelton, adding: “But it’s also important to note that digital has become much more valuable and accepted by C-level employees in recent years.”

That is clearly reflected in Strata’s tracking data, which show a steady growth in the Internet, while spot TV has steadily decreased over the past 12 quarters, according to Shelton.

“There hasn’t been a huge disparity between digital and TV since Strata started the survey in 2008, but the margin has steadily decreased quarter over quarter, he said, noting that “in 2008, 60% of respondents indicated that TV was a top focus, with digital at 12%."

The data indicate that social and mobile are boosting the overall role of digital in agency and client organizations. Nearly nine out of 10 (89%) of respondents indicated that they would use Facebook in their campaigns during the third quarter, up 10% from the second quarter. And for the first time, YouTube (39%) was the No. 2 most desirable social medium for campaigns, surpassing Twitter (37%).

Google+ is still on the outside looking in, with only 14% planning to use it during the third quarter, down 47% from the second quarter. LinkedIn was a strong No. 4 in social media choices at 22%.

The iPhone and Apple’s iAds platform continued to be the market leader in mobile advertising perceptions, with 78% of respondents noting it is the device their clients are most interested in advertising on, although that is down 10% from the second quarter. Google’s Android platform, however, is closing the gap at 54%, up 7% from a year earlier.

The iPad remains a strong platform among tablets at 46%, up 85% from last year.

“With Amazon and Apple continuing to focus on content for tablets, 69% say that focus will make this medium more attractive to advertisers,” the Strata report noted.

Despite these trends, the Strata respondents were mixed on the long-term dominance of digital vs. “traditional” media. While one-fifth said they anticipate spending more on digital than traditional media within “one to three years,” more than a third (36%) said digital will never dominate their advertising budgets.

Those perceptions of ad agency executives no doubt are colored by the sentiment of their clients. Only 56% of the agency execs said they believe their clients “understand the value” in digital, while 44% said they don’t see the value.

by Joe Mandese, Oct 20, 2011

Is QR Worth the Trip? Consumers Still Unsure

Only 28% of mobile users who have used QR codes more than once say they "usually" get something in return that made the effort worthwhile. Another 3% (call them QR enthusiasts?) say they always get something good from the goofy-looking digital symbols.

The use of 2D mobile codes in media and ad material is always good for a debate among marketers. Some argue they effectively extend physical assets into a digital interaction and engagement. Others wonder if the multiple steps involved in activating a QR code Microsoft tag or other scannable item pay off for the consumer consistently.

According to a survey of 500 U.S. consumers by research firm Russell Herder, mobile customers may be as undecided about the utility of 2D codes as the marketers. In a new white paper on "The QR Question," Herder found that 52% of repeat code snappers said the process only "sometimes" produces a fair exchange of value. For 15% of QR users the platform "rarely" delivers value.

Herder researchers say the QR code is still not recognized by all. While 72% say they have seen a code, almost three of every 10 say they don't know what a 2D code actually is. About one in five relatively sophisticated mobilistas (those who go online with their phone) still don't know what they are.

Demographics are key to understanding when it comes to mobile 2D codes. While close to 80% of 18-24s recognize them, closer to 60% of the 45+ segment do. Arguably, for a phenomenon that is relatively new in the U.S., those rates of recognition are not too bad.

Still, whatever ambivalence there may be over the platform, 54% of those who have used QR codes and have a cell phone that is capable of going online say they are likely to use them again.

In order to improve consumer confidence with the scanning process, Herder recommends that marketers not only target the right demographic, but pay attention to the ritual surrounding code snapping. They require time and leisure to activate, so consider the situations in which the consumer will encounter them.

Herder also warns that as QR codes become ubiquitous, they risk also turning invisible to consumers. Finding creative ways to craft and position the codes will help cut through the clutter.

(Source: Online Media Daily, 10/11/11)

A Quick Guide to Writing Great Blog Posts for Businesses

There are certain elements of a blog post that need to be given special care in order for a post to be successful. Let's take a look at these elements and what you need to do to make sure they are optimized.
1. The Title/Headline
A great title for your post is essential for driving traffic to it, from social media to search engines. Take Twitter, for example. The first impression of your post will be the 140 character status update including just the title of your post. For search engines, it's the same: the title will be the first thing potential visitors read in the results.

When it comes to great titles, you should consider:

• Including the post's main keyword for search engines and social searches.
• Including a number. People like posts where they know what they are getting. So instead of "Tips to Keep Your Car in Tip Top Shape" you should do "10 Tips to Keep You Car in Tip Top Shape."
• Including a solution to a problem. If you know a common question in your industry, then you should do a post entitled "10 Ways to..."
• Keep titles under 65 characters in length for search engine purposes. Anything after this point will be cut off with a "...".

2. Word Count
There is a lot of debate about the proper length of a blog post. Some say that you should keep it short and sweet with an average of 300-500 words per post. Others think that posts should be in-depth and complex, with a minimum of 1,000 words.

What you should be concerned about, more than the actual word count, is whether or not you are giving valuable information in each post. If you can deliver the content that you promise in the title of the post in a short post, then that is fine. If you can write a long post that isn’t redundant and keeps your reader's interest, that is fine as well.

My rule of thumb is to never make the reader have to go elsewhere for information. You shouldn't do a post with 10 tips if the reader is going to have to leave your site to find out how to implement those 10 tips. You should either have enough content for each tip that the reader can implement them, or have a post that you can link to on your site that further explains how to do each item.

3. Breaking Up the Content
One of the biggest turn-offs when it comes to reading blog posts or articles is seeing big blocks of text, text, and nothing but text. You want your post to be easy to scan, so that if you get someone who wants to take a quick glance to see if they want to bookmark the post for later, they will see the gist of the article quickly and easily. This can be accomplished by:

• Using headers for major sections. Your post should contain headers using the h2 or h3 header tags in HTML, not only to easily divvy up the sections but also to be search engine friendly.
• Using images. Think about when you read books as a kid. You probably enjoyed the ones with lots of pictures over the ones that were solid text, right? Blog readers enjoy images similarly, especially if they are screenshots or photos that illustrate a point in the text.
• Using series posts. If you have an article that going to be excessively lengthy, consider taking the one post and breaking it into a series of posts. This will keep your readers coming back to your site for more.
• Using bullet points and numbered lists. Again, this helps break out individual items and make it easily scan-able.
• Using formatted text. Be sure to emphasize important phrases or statements in your post by using bolded and italicized text within the content.

Mashable does a great job of breaking up their content using images and headers as an example.

It makes a post that has a lot of content easily scan-able for those looking for a particular topic and digestible for those who just want an idea of the overall goal of the post.

4. Call to Action
No matter what your post is about, or what industry you are in, you can have a call to action in each and every blog post. Calls to action can be anything from suggesting that the blog reader contact your business for help with any of the items recommended in the blog post to simply asking your readers for their opinion about the content of the post.

Asking readers for comments is an important way to build your blog’s social proof. This means that whenever a new visitor comes to your blog, they will see that your posts have a lot of active discussion, telling the new visitor that your content is valuable and worth discussion.

(Source: Kristi Hines, Published in Vertical Measures, 10/10/11)

Mobile Users Have Mixed Feelings About Location-Based Coupons

67% Say Location-Based Coupons are Convenient, 44.8% Have Security Concerns, and 25.6% Say They are Open to Receiving These Types of Coupons on Their Mobile Device

Sharing their location with retailers in order to receive discounts may be worth the privacy risk for the majority of mobile consumers. 67.0% somewhat/strongly agree that location-based coupons are very convenient and useful according to a recent mobile survey among smartphone and tablet users conducted by Prosper Mobile Insights. Respondents answered questions directly on their mobile devices.

Further, 1 in 4 (25.6%) Mobile Users say they would prefer to receive coupons on a smartphone or tablet automatically when they are near a store. However, double that number (51.1%) would prefer to receive coupons on their device via email. Manually searching for coupons, scanning QR codes and receiving promotional texts/IMs also rank higher than automatic location-based coupons. Receiving discounts on the spot, though, appears more popular than "checking in" through social media (only 10.3% would prefer this method).

Coupon Preferences on Smartphones/Tablets:

• Receive via email: 51.1%
• Manually search for them: 32.2%
• Scan a QR code when inside a store: 31.9%
• Receive via text or instant message: 31.0%
• Receive automatically when near a store: 25.6%
• Check in through social media: 10.3%
• Don’t want to receive coupons at all on device: 18.1%

Source: Prosper Mobile Insights Mobile Survey, September 11, 2011
While 81.9% are open to receiving coupons on their smartphone or tablet in one form or another, location-based coupons do raise privacy concerns -- 44.8% are somewhat/very concerned about their location being tracked or other security issues. 29.6% are neutral while 25.6% are not concerned.

Other Key Findings Among Mobile Users:

• 44.0% admit they communicate more impersonally (text/IM) with their loved ones as a result of owning a smartphone or tablet. However, 56.0% say they call loved ones more often than they text. 16.4% say calling and texting is 50/50, while 27.6% text significant others more often.
• 88.7% regularly or occasionally use a smartphone or tablet at work while 86.7% take their devices to outdoor activities. 77.0% bring smartphones or tablets along to nightclubs, 75.4% use them in the bathroom and 71.6% are active on their devices while eating a family meal.
• Mobile users take their devices everywhere, right? Actually, the majority do not use their smartphones or tablets in church (67.4%) or at the movie theater (57.4%).

(Source: BIGResearch, 10/05/11)

Consumers Ready to Boycott Corporate Bad Guys

When it comes to corporate responsibility, consumers aren't just paying closer attention, they're ready to kick brands that don't behave to the curb: Some 93% are willing to boycott corporations that behave poorly, and 56% have already done so.

And they are also willing to reward companies they perceive as responsible, reports the 2011 Cone/Echo Global CR Opportunity Study, with 94% saying they would buy a product that has an environmental benefit and 76% saying they have already done so in the past 12 months. Cause-related products are just as popular, appealing to 93% of the more than 10,000 consumers polled in 10 countries. And 65% have already purchased such a product.

The most important issue for companies to address? Economic development, with 34% of respondents placing it first. Combined with the environment (21%), these issues represent the attention of more than half of the 10,000 respondents. Human rights comes in a more distant third (12%).

The survey -- which included the U.S., U.K., Canada, Brazil, Germany, France, Russia, China, India and Japan -- found that while people are willing to accept a company's word on important issues (with 59% saying companies have educated them on key issues), more are willing to do their own digging. Some 36% say they have done their homework, researching a company's business practices or support of issues; 32% have given feedback directly to the company.

And while consumers say they want a dialog with companies about how they are handling these issues, they still find one-way communication most convenient, with 22% saying they want that information on a package, 21% through the media, and 16% through advertising. A smaller group wants to interact online, with 11% mentioning Web sites, 7% social media, and 3% mobile devices.

The most important element, the Boston-based Cone reports, is simply telling the truth: 88% say it's fine with them if a company isn't perfect, as long as it is honest about its efforts.

(Source: Marketing Daily, 10/04/11)

Spending on Pets Rises During Recession

Mary Louise Mills says her three dogs are spoiled rotten.

She has a 9-year-old shih tzu named Annie Lulu after Mills' grandmother, and two Pekingese -- 7-year-old Miss Daisy May and 4-year-old Elmer, whom she sometimes calls Fudd.

"They all think they're the boss," said Mills, 79, who lives in Annandale, Minn. "They've got me trained pretty well, I guess."

Mills enjoys their company; her husband died a few years ago. The dogs eat meals with her in the family room. They sleep with her in a king-sized bed and travel with her in the car whenever possible. They have a standing appointment about every eight weeks at Foxy's Pet Grooming and Boarding, which is one of the ways Mills tries to pamper her pets.

"My parents raised Dalmatians, and I've been a pet lover all my life," said Mills. "They're very important to me."

A lot of Americans feel the same way. According to the American Pet Products Association, people in the U.S. will spend more than $50 billion on their animals this year, a record. Spending in the pet economy has increased every year since 2001 and only once by less than 5 percent annually in that time.

Pet ownership is at an all-time high of 72.9 million households -- about two out of every three. About 78 million dogs and 86.4 million cats in the United States represent a 2.1 percent increase from 2010.

And those in pet-related industries in Central Minnesota say they've seen how animal lovers have made their business strong, if not recession-proof.

"I'm not surprised," said Valerie Muggli, who runs Tails of Gold, a golden retriever breeding operation. "I've found the same thing. The business really hasn't slumped. When the economy went bad, people started staying home more. They weren't taking as many vacations. They weren't gone as much. They started focusing on their home life and, for a lot of people, that includes a pet."

Muggli said she breeds about seven to 10 litters per year, depending on demand. Her puppies cost between $1,000 and $1,500, which she says is midrange for purebred golden retrievers.

"A lot of people ask 'Isn't it hard to send those puppies home with someone else?'" Muggli said. "It's a lot of work, but it's rewarding to see the joy they bring into people's homes. That's why I love doing this."

Muggli also is a dog trainer and has seen significant growth in interest in agility training.

Food, fences
Once you have a pet, the next object is to make it safe and secure at home.

Scott Potter has operated Invisible Fencing for 12 years in South Haven, Minn. A typical system from Invisible Fencing, which is a brand name and not to be confused with do-it-yourself pet containment systems, costs $1,500 to $2,000. Potter says his business isn't experiencing the record years it saw in 2006 and 2007, but it has rebounded through the recession.

"When the economy crashed, it affected our business," Potter said. "But we've been steadily gaining it back the last few years to the point where we're pretty busy now. People's pets are their family. They're like kids to some. Safety is a priority, and I see our systems save the lives of dogs and cats every day."

Potter said technological advances also have benefited the business.

"The collars pets wear with our systems now weigh less than an ounce," Potter said. "That's a lot lighter and less bulky than they used to be years ago. That's opened a lot of possibilities for different pets. Increasingly people realize it works well for cats."

Food accounts for a majority of spending in the pet economy -- an estimated $19.53 billion this year. The typical dog owner will spend $254 annually, not including treats. Average annual food spending by cat owners is $220.

Corporate representatives from PetSmart and Petco did not respond to inquiries for this story, but PetSmart recently reported second-quarter earnings were up 32 percent and net income was $61 million compared with $48 million in the second quarter of 2010.

Vet spending
The biggest increase in pet spending this year is expected to be for veterinary care -- with a total of more than $14 billion in spending.

The growth can be seen in some new pet hospitals, including Advanced Care Pet Hospital in Sartell, Minn. Tom and Pamela Gerds opened the operation in December 2009, although Pamela Gerds had been practicing as a veterinarian for 16 years in the Twin Cities.

"We did a lot of research and selected this market for a lot of reasons," said Tom Gerds, who runs the business operation of the animal hospital. "We looked at industry numbers and the number of pets and vets in the area. Based on those, we figured that the economy would bounce back and Sartell would be a good location."

Tom Gerds said pet owners mirror the bell curve of household demographics. Some people barely comply with license requirements for rabies shots. Others treat their pets as well as their own children. Different veterinarians have their niche, whether it's low-end vaccination clinics at big-box stores or full-service vets.

He said another reason vet care is accounting for a large slice of the pet economy is because pets are living longer through advanced medicine and technology.

"It's approaching the level you see for human care, compared with the days when you took your (sick) pet to the farm and then you never saw them again," Gerds said. "We can test for glaucoma and cataracts. There are a lot of things that can be treated now that people didn't run into when they put their pets down sooner. Of course, the equipment isn't cheap, and it's a significant investment for all involved. Sometimes when you tell someone who bought their cat from the humane society for $10, they look at you like you're kidding."

Veterinary care expenses this year are expected to increase more than a billion dollars from 2010. That's one reason pet health insurance has developed into a growing industry. Since 2007, it has grown by an average of about 10 percent annually -- though it's estimated only 800,000 pets in the nation are insured. Nonetheless, it is an option for pet owners who figure the luxury of such coverage is outweighed by the difficulty of a large, unwanted pet-care bill.

According to Reuters, more than 15 percent of dog owners said their pet's medical treatment would take priority over their own.

Pet benefits
Some research shows, however, the two may go hand in hand.

A recent study from the State University of New York at Buffalo found pets help lower blood pressure. According to the Waltham Centre for Pet Nutrition, pets help reduce stress. And the National Institutes of Health Technology has research that shows pets provide their owners with greater psychological stability and a measure of protection from heart disease. The same organization says pet owners make fewer doctor visits and pay lower health care costs.

The fondness people feel for their pets, the increasing number of them and the growth in human population also have contributed to growth in the pet cremation business. Peggy McStott-Voigt operates Heavenly Paws south of St. Augusta, Minn. She said her 10-year-old business saw no dip during the recession.

"It's still a priority for pet owners," she said. "These are basically family members."

Cremation service depends on the size of the animal, but an average private cremation costs about $125. A garden cremation, where multiple pets are cremated at the same time, starts at $60. Urns made of plastic, wood or granite for the ashes run from $25 to $300. Owners can have a paw print made from their pet for $18.

McStott-Voigt says Heavenly Paws is one of four pet cremation services in the state, with the others in Minneapolis, St. Paul and Duluth. She offers a memorial garden for people who use her service to spread or bury their pet's ashes if they don't have private property on which to do so.

"When the floor dropped out of the economy, people stopped spending as much on their wants and focused on their needs," McStott-Voigt said. "But this is a need for many people. I've had people keep some of the ashes in a phial on a key-chain so they can keep their pet close to them. It's a personal thing."

Shelley Bunkholt has been grooming animals since she was a kid and dabbled in the business part-time for decades. Five years ago, however, she decided this was what she wanted to do. She ended a 27-year career as an insurance underwriter and opened Foxy's Pet Grooming and Boarding.

Her business has grown to the point where she's building a new facility this month. A new pole building will take pressure off the space she uses in the garage adjacent to the log house she and her husband have on a 40-acre property.

Bunkholt boards dogs and cats in what she describes as a relaxed atmosphere. The animals have real furniture on which to rest if they wish, including couches. Her grooming operation started in her basement and has continually picked up new business through vet referrals.

"Some people don't groom as often or they've got to plan for it in their budget, but business has held up well, and we're getting new clients all the time," Bunkholt said.

She also has three dogs -- a poodle, a golden retriever and a Jack Russell terrier. She says hygiene, including dental cleaning, has become more important to pet owners. She even works with a canine chiropractor.

"People who focus on their pets give them better care, and because of that they're going to live longer," Bunkholt said. "Making life better and easier for people and their pets is what it's all about."

(Source: USA Today, 10/10/11)

City Living: What 'Urban Boom' Means for Marketers

From Ikea to Zipcar to Walmart, Advertisers Follow Consumers into Metropolitan Areas

Decades ago, people left cities for the suburbs to raise families and to live the American dream. Now we're seeing "bright flight," younger, educated Americans reversing the trend seen in their parents' and grandparents' generations.

Consumers, from yuppies to artists to homeowners unable to sell homes to empty nesters, are clustering in urban areas more than ever before. And marketers stand to benefit from it.

"We're experiencing worldwide the fastest urban boom in history," said Ann Mack, director-trendspotting at WPP's JWT. "As the U.S. population gets more urbanized and cities boom, improving human environments will become a higher priority. We'll see a flourishing of opportunities for brands across multiple categories and initiatives aimed at improving local environments, adding beauty or helping to bring communities together."

According to the U.S. Census, from 2000 to 2010, the nation's 366 metropolitan areas picked up nearly all population growth: 92.4%. The overwhelming majority, 84%, choose to live either in or in the vicinity of a city of 50,000 people or more. In fact, almost 100 million Americans, 32%, choose to live in one of the 15 largest metro areas, each of which has more than 4 million residents. The 50 largest metro areas are home to 53% of the nation's residents, and all of them except five grew over the past decade.

The 2000 Census found 105.5 million occupied housing units, of which 32.8 million or 31% were in central cities. By 2010 that had crept up to 33%, despite the significant late-decade falloff in household creation. And even among first-time homebuyers, Ms. Mack said that 77% say they want to live in an urban area.

Among the sectors seeing opportunity in urbanization are furniture manufacturing, automotive and retail.

Ikea, long known for its apartment-friendly, affordable furniture, has of late been emphasizing its small-space furniture. "The small-space focus has been a global initiative within Ikea, as many Ikea customers worldwide live in smaller, urban areas" said Janice Simonsen, U.S. design spokeswoman for Ikea. She added that the focus on small also "resonates with U.S. customers. Although historically U.S. homes tend to be larger, our customers are looking to use these spaces smarter and more efficiently."

Even so, Ikea stands to benefit from an influx of urbanites in the rental market -- a healthy market in the wake of the housing crisis -- looking for apartments and affordable furniture. Walter Molony, spokesman at the National Association of Realtors, said that vacancy rates for rental units are declining as young people or people uncertain about home ownership rent more and seek roommates. According to the Census, 34.9% of occupied homes nationwide were rented in 2010, up from 33.8% in 2000.

Ikea's doing something right. Sales rose nearly 8% worldwide in fiscal 2010 and are similarly brisk this year.

And in cities, rentals have been going beyond homes and apartments to cars. "There's a trend of people leasing more than buying outright," said Stephen Hahn-Griffiths, chief strategy officer at Leo Burnett. Zipcar, which had its IPO earlier this year but was founded in 2000, is one of the bigger car-sharing services around. It posted a 34% gain in revenue to $61.6 million compared to $46.0 million in the prior year period, for second quarter 2011. During that time, membership increased 29%.

Although car sales in the U.S. were up 6% in the first nine months of 2011 over 2010, according to Automotive News, that doesn't mean car-sharing services, which are more popular in cities, are in trouble.

"In urban areas, people -- especially millennials -- want to find practical solutions that are affordable. They're more environmentally aware than previous generations and they're keen on saving money," said Ms. Mack. She added that if Zipcar is going to feel competition from anywhere, it'll feel heat from similar car-sharing companies, such as I-Go and rental companies like Hertz, which expanded to car-sharing in Manhattan.

Not wanting to miss out, some car manufacturers are taking a more proactive approach. General Motors in 2012 will team up with RelayRides, which lets car owners share their cars with neighbors. RelayRides will use GM's OnStar to allow borrowers to unlock the cars from their mobile phones.

Mr. Griffiths said he expects the rental trend to continue beyond cars and apartments. "I would even expect to see an increase in furniture rental."

Retailers typically known for massive stores are even rolling out smaller formats fit for urban areas. Walmart is rolling out dozens of smaller stores in an effort to fight lagging sales. The chain took its Neighborhood Market grocery format and renamed it Walmart Market and began opening the stores in denser urban areas like Chicago. As of this year, the smaller grocery outposts account for about 200 of Walmart's approximately 4,400 U.S. stores. At the same time, it's working on Walmart Express, a convenience-store format that's even smaller.

William S. Simon, exec VP, president and CEO for Walmart's U.S. division, in a recent earnings call said that the company's neighborhood markets have posted positive same-store sales for 15 consecutive months and that the "Neighborhood Market format is delivering a return at the same level as our Supercenters, which have the best ROI in the company." He added that 180 more are in the pipeline.

Other downsizing retailers include office-supply chain Staples, which this summer said it planned on opening new stores that were about 15,500 square feet, down from the current layout of 18,000 square feet. Best Buy is looking to downsize its current stores, subleasing parts of its space to other retailers.

(Source: Advertising Age, 10/17/11)

Cold Calling 101

Cold calling is a relationship like any other and should be treated that way. It requires an approach that anticipates multiple calls. Build scripts that address each call based on the previous call and the anticipated response. Develop the relationship through each call in a unique fashion. Be deliberate.

The most successful cold call approaches address the long term virtual relationship and respects the fact the target is busy. My favorite approach is to call once a week. Each time leaving a message building off of the last message, adding a bit more information.

Keep calling every week for at least two months. That's 8 calls. It's not a lot of calls, but it's a lot of time. The calls are spread out enough as not to bother or smother the prospect, yet close enough they will remember the last call. The messages should be short, sweet and capture the attention of the prospect.

Rarely is it the cold call that get's the prospect attention. It's the virtual relationship you create over time, through the calls, that gets the prospect.

U.S. Vehicle Sales Soared Nearly 10% in September, Despite Economic Gloom

Auto sales defied a downcast economy in September, climbing 9.9 percent to their highest level in five months as new models arrived at dealerships and inventory shortages eased.

All three of the Detroit automakers reported gains, led by a 27.2 percent year-over-year increase for Chrysler, which outsold Toyota for the fourth time this year.

Toyota and Honda again trailed the rest of the industry, even though September was the first month since the March earthquake and tsunami in Japan that all of their plants were running at full capacity. Toyota's sales dropped 17.5 percent, and Honda's were down 8 percent. In contrast, Nissan sales increased 25.3 percent.

The industry's seasonally adjusted, annualized selling rate rose to 13.1 million, the first time since April that they had exceeded 13 million. General Motors and Ford Motor each said they still expected total sales for 2011 to top 13 million, which would require demand to jump further in the fourth quarter.

Auto executives and analysts said shoppers had not been dissuaded by a declining stock market, bleak consumer confidence surveys, a sluggish housing market or high unemployment. Bigger discounts offered by some brands have helped, as have new offerings like the Chevrolet Sonic, a subcompact car, and a bevy of redesigned models from Chrysler.

"I don't know of any other month where we had positive gains in auto sales with all of those negative factors," Jesse Toprak, vice president for industry trends and insight at TrueCar.com, which tracks sales and pricing. "The automakers might be convincing some consumers who may not be so eager to spend their money to buy a car because the product is so compelling."

Mr. Toprak said more consumers also were showing up at dealerships because their current vehicle had outlived its useful life and they had no choice but to buy a replacement. High used-car prices are prompting some in that situation to buy a new one instead.

"As long as things remain relatively stable, even in the face of persistently high unemployment, we're going to consistently see slow growth," Don Johnson, G.M.'s vice president for United States sales operations, said in a conference call. "Right now, the pent-up demand due to age of vehicles is what's keeping this nice, steady, slow growth going." G.M. sales increased 19.7 percent in September over a year ago.

Falling gas prices helped persuade more shoppers to buy pickup trucks and other larger vehicles. Sales of light trucks, including sport utility vehicles and minivans, rose 16.1 percent, while passenger cars were up 3.4 percent.

Sales of full-size pickups, which typically fare best when the construction industry prospers, surged 46 percent at Chrysler and 33 percent at G.M. Ford, whose sales were up 9 percent overall, sold 18 percent more light trucks but 8.7 percent fewer cars.

At Chrysler, September was the 18th consecutive month of year-over-year sales growth. It reported a 24.3 percent gain for its Jeep brand of SUV's.

"Irrespective of the economy, strong products equal strong sales," Reid Bigland, Chrysler's head of United States sales, said in a statement. "There is no double-dip downturn going on around here."

Another carmaker with considerable momentum is Nissan, which experienced relatively minor disruptions from the Japan disaster. Nissan sold 68 percent more of its subcompact car, the Versa, and its midsize sedan, the Altima, has outsold the Honda Accord so far this year.

In addition, the Nissan Leaf, an electric car, added to its sales lead over the Chevrolet Volt, G.M.'s plug-in hybrid. Nissan sold 1,031 Leafs to G.M.'s 723 Volts, but G.M. officials said they were still ramping up production while expanding sales to dealers nationwide.

For Toyota and Honda, even though plants are running at full speed, inventories are expected to remain below prequake levels until early next year. But dealerships said they were finally able to meet most shoppers' needs again, rather than just taking an order or hoping the customer came back later.

"It's beginning to feel like normal, almost," said Adam Skolnick, the general manager at Toyota of Watertown, near Boston. "We have plenty of cars on the lot, and I'm anticipating many, many more coming in the next 45 days or so."

Mr. Skolnick said the arrival of the redesigned Toyota Camry sedan a week ago was helping the dealership make a quick recovery. For September, Camry sales fell 19.2 percent, but it was the industry's top-selling car.

"It's been like a bakery here, with people taking numbers to see the car," Mr. Skolnick said. "It makes it feel fun again."

(Source: The New York Times, 10/04/11)

Temporary Employment: The New Permanent?

Uncertainties about future tax and health care costs could be inhibiting permanent job growth, shifting more of the labor force to temporary and part-time employment, say Pamela Villarreal, a senior fellow, and Peter Swanson, a Hatton W. Sumners Scholar, with the National Center for Policy Analysis.

• In 1956 there were only 20,000 temporary employees.
• By the early 1970s, there were 200,000 temporary employees, representing 0.3 percent of U.S. employment.
• In 1990, there were about 1 million temps, about 1 percent of employees.
• In 2000, 2.7 million temps accounted for 2 percent of employees.

Part-time employment has also grown in recent years:

• From 2005 to 2010, part-time employment doubled, from 4.3 million to 8.9 million jobs.
• Overall, since 2007 there has been a net loss of 9.8 million full-time jobs, but a gain of 2.3 million part-time jobs.

Beginning in 2014, the Affordable Care Act (ACA) requires employers with 50 or more employees to offer health insurance to employees who work 30 or more hours per week or pay a penalty.

Some employers will hire temporary or part-time workers to avoid the cost of providing health insurance.  However, the ACA limits the ability of employers to avoid paying penalties by hiring only part-time employees.  The ACA treats part-time employees as "full-time equivalents" by adding up the total number of hours per month worked by the part-timers and dividing by 120.  For example, if six part-time employees each work 25 hours per week, they would be the equivalent of five full-time employees.  Thus, these part-time employees would be counted toward determining whether or not the employer has 50 employees and is required to offer health insurance.  

If wages and salaries remain fairly constant, but the cost of health care and retirement benefits grows, employers will more likely use a temporary worker from a staffing agency, say Villarreal and Swanson.

Source: Pamela Villarreal and Peter Swanson, "Temporary Employment: The New Permanent?" National Center for Policy Analysis, October 7, 2011.