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Cutting Edge: Our weekly analysis of marketing news
2 February 2011
Welcome to The Chartered Institute of Marketing’s weekly analysis of the most usefull marketing news
for CIM and CAM members
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Global and Stardoll Network among girls aged between eight and 18, reveals that a quarter of 16 to Advertising
Watch out - ASA has more powers
mobile phone, while 19% regularly post updates on The Advertising Standards Authority has launched a social networks via their phone. More than a quarter campaign to promote the fact that it has an extended of girls also use the internet for over four hours a online remit. From 1 March it will be responsible for day. The conclusion is that marketers should regulating marketing on company websites and combine media channels to benefit from this warns that communication on company website multitasking audience. Other results from the survey social media has to be ‘legal, decent, honest and Marketing Week, 27 January 2011, pp24-26
New Media Age, 27 January 2011, p10
Customer satisfaction
Agencies
Increased satisfaction llevels
Having the right chemistry
According to the Institute of Customer Service, Publicis Groupe has agreed to acquire diigital customer satisfaction in the UK is on the increase. agency Chemistry for £14.45m. The price is Its UK Customer Satisfaction Index, released this reflected in the belief that Chemistry has a fairly week, indicates that the overall satisfaction score unique offering as a ‘strategically thinking diigital has risen over the last year. But it is the food agency’. Chemistry also boasts Unilever, Diag retailers that registered the highest score (81) out of the 13 sectors that were surveyed. Although Waitrose and Marks & Spencer rather predictably Campaign, 28 January 2011, p3
emerged at the top of the food retailer satisfaction league, Iceland managed to achieve third place. Brands and branding
Bad data on apps
average lower than the cross-industry average. In its Mobile-Savvy Shoppers study, data standa More figures are provided, including the average for organisation GS1 UK claims that data about brands on third party apps is wrong in 20% of cases, while The Grocer, 29 January 2011, pp36-39
only 9% of products have the correct descriptions. Unilever, Tesco and Sainsbury’s have also warned that bad data on mobile applications is damaging Direct marketing
A move towards direct
According to a report by Martin Hayward, a former
Marketing Week, 27 January 2011, p6
towards direct marketing in the next few years. He Children
claims that availability of data and insight has Young girls multitask
If you think your daughter is unusual in spending communications, which means that “in reality, all most of her time on her mobile phone, be assured marketing is becoming direct marketing”. Although that you are not alone. Joint research from Carat direct marketing used to be considered rather Don’t forget, reading this publication can www.cim.co.uk/charteredcpd

Cutting Edge: Our weekly analysis of marketing news
‘unglamorous’, now all marketers will need to all change on 1 March, when product placement will undertake the targeting, measurement and fast be allowed on UK TV (see also under Television) research skills used by direct marketers. Campaign, 28 January 2011, p10
Dmweekly.mad.co.uk, 26 January 2011
Marketing
Clamping down on silent calls
Marketing to men
Yesterday (1 February) new Ofcom rules came into A new report from Saatchi & Saatchi claims that force, which mean that consumers should no longer marketers are not connecting well with male be subjected to repeated silent calls from the same shoppers. Although more men are shopping than company. Ofcom has told telemarketers to comply ever before, 40% of them do not feel welcome in with the rules or receive fines of up to £2m. stores. Smaller shops, such as The Perfume Shop, Previously the maximum fine was £50,000 which claim to be less intimidating than the beauty area of Ofcom believes was not high enough. It has issued larger stores; in fact more than 40% of its perfume guidelines to the call centre industry on the use of sales are made to men. Some retailers are automated dialling equipment. (See also Cutting beginning to think more creatively about how they Edge 26 January on telemarketing as an important can appeal to men and many shops have clearly defined men’s areas. But as long as men can find Dmweekly.mad.o.uk, 31 January 2011
what they want it may not matter that the advertising, such as that of Boots’ ‘here come the Tropicana goes to the doorstep
girls’ ad, is targeted solely at women. Tropicana is to embark on its first-ever doorstep Marketing, 26 January 2011, pp24-25
sampling campaign in conjunction with Royal Mail. Two small bottles of Tropicana orange juice will be Experiential marketing
delivered to 250,000 households across the UK over Experiential and field marketing have vast scope in the next three months. The bottles will bear terms of location and can take place when messages such as ‘The week ends. The weekend consumers are at their most receptive to brand messaging. The downside is that the experiential The Grocer, 29 January 2011, p29
event is not necessarily located close to the point of sale. The dilemma is whether to demonstrate the product wherever you are, then to try to persuade Broadband advertising review
the consumer to visit the point of sale, or conduct The Advertising Standards Authority (ASA) has experiential activity in close proximity to where the indicated that a review into ‘misleading’ claims in consumer can purchase the product. The pros and broadband ads is to take place. The ASA will investigate whether broadband provider ads are Promotional Marketing, January 2011, pp14-15
claiming to provide internet speeds that ISPs cannot deliver. The objective is “to provide better clarity for Market research
Defining opinion
Campaign, 28 January 2011, p8
Those who collect data for polls make the assumption that opinions on political or social issues Too many Daves?
can be gleaned by simply asking questions and UKTV channel Dave may have to change its name recording the answers. The trouble is that many following a legal ruling. The TV channel, which respondents have not considered the available launched in 2007, recently made a trademark information on the subject carefully and have not application which was rejected by the European formed a firm opinion prior to interview. A traditional Union after being opposed by Dave, the branding poll however, counts all answers as having the same consultancy. The latter is owned by marketing validity. Qualitative research also puts the same communications agency Engine and was founded pressure on respondents to express a view. This paper explores the possibility of using large-scale ‘e- Marketingmagazine.co.uk, 31 January 2011
Delphi’ polling methods, giving large samples of voters simple questions on broad topics. The views X-Factor promotions in breach of law
are then given back to the respondents to rate and Ofcom has ruled that the X Factor, which is shown on ITV, was in breach of the broadcasting code last International Journal of Market Research, Vol 53 (1), pp25-39
year for promoting music singles. The code states that ‘products and services must not be promoted in Public relations
programmes’. X Factor Presenter Dermot O’Leary Celebrity chef reputations
suggested that viewers could download singles by A PRWeek/One Poll survey has shown that Jamie guest artists Diana Vickers and Michael Bublé Oliver is the most popular celebrity chef, with 67% during two episodes of the show. This will of course believing he has the greatest desire to change the food industry. In contrast Gordon Ramsay has the Copyright 2011 The Chartered Institute of Marketing
Cutting Edge: Our weekly analysis of marketing news
better position to carry out these schemes than respondents, despite the perception that he makes many building firms because they have the the best TV programmes (35%). But it seems that necessary expertise. In particular British Gas is celebrity chefs are not brilliant at brand seeing increased demand for energy efficiency endorsement, with 66% of those surveyed indicating schemes. Some in the construction industry are that if a celebrity endorsed a supermarket it would concerned that energy and utility companies are training their workforces in the area of retrofit and PR Week, 28 January 2011, pp24-25
then moving into what would previously have been the domain of the construction industry. Sponsorship
Construction News, 27 January 2011, p16
Orange sponsors UEFA
Industry gets a jail break
Championships in a deal covering 11 countries. The What better way to promote the architectural two parties will launch co-branded mobile apps profession than through film? Or maybe not; it containing content related to the tournament. depends on what role the architect is cast in. Orange logos will also be placed on the Euro 2012 Following the release of a film about Norman Foster, pages of UEFA’s website. The tournament takes this article takes a look at mainly fictional architects place in Poland and the Ukraine next year. as depicted through movies. The recent ‘mind-bending’ Inception makes architects look ‘cool’. But New Media Age, 27 January 2011, p11
the one that most people remember is Towering Inferno, starring Paul Newman as the Heineken sponsors 2012
Heineken is to be the official beer provider of the Building, 28 January 2011, pp34-37
London 2012 Olympics, despite rumours that Locog was likely to sign up a British drinks brand. This means that Heineken will be able to supply alcohol – Construction continues to be in recession
mainly to hospitality outlets – and will have Figures from the Office of National Statistics have marketing rights at the Games. Heineken previously revealed that construction output fell by 3.3% in the had a sponsorship deal with the British Olympic fourth quarter of 2010, which is the largest drop Association for the 2004 Athens games. In addition it since the height of the recession in 2009. Further is a sponsor of the UEFA Champions League research by analysts Hewes & Associates indicates football, and the rugby union Heineken Cup. (See that the industry will not return to growth until 2014 and forecasts a fall in output of 3.5% this year. The report also says that Government cuts will put an Marketingmagazine.co.uk, 31 January 2010
end to any recovery. Public spending accounted for 65% of the growth reported in 2010. Building, 28 January 2011, p12
and forestry
Facing up to countryside education
Comedian Bill Bailey has been recruited by the EA knows how to play the game
Farming and Countryside Education (FACE) charity Electronic Arts, based in California, is one of the for its first ad campaign. The charity aims to educate largest video game developers in the world. children about where food originates. The ads show Although it expects its employees to work long Mr Bailey in the countryside with a group of inner- hours, it also believes in making them feel at home: city school children, who will be told where various they have a library stocked with games, movies books and magazines; they can bring their pets into Marketing, 26 January 2011, p3
work; they can test out games in home-like environments and there is a theatre for family film Yorkshire farmers in peas offering
nights. These are just some of the many perks A co-operative of 40 Yorkshire pea farmers calling designed to keep the workforce happy…and at work. itself the Swaythorpe Growers, is to launch the first Bloomberg Businessweek, 24-30 January 2011, pp108-109
regional frozen pea brand. In the first instance the farmers are hoping to sell through regional retailers A sense of responsibility
and are not looking at national distribution until later, PR firm Edelman asked members of the ‘informed when they will competing with the likes of Birds Eye. public’ what they thought of American economist The Grocer, 29 January 2011, p34
Milton Friedman’s statement that ‘the social responsibility of business is to increase profits’. The country that agreed most with Friedman’s assertion was the United Arab Emirates (84%). This was Utilities compete in sustainable work
followed by Japan – a country associated with The construction industry is facing major competition ‘stakeholder capitalism’ – and Sweden, with 60% of from utilities firms for low-carbon energy work or people agreeing. Britain scored only 43% and the ‘retrofit’ schemes. Utilities companies are often in a US 56%, which suggests that corporate social Copyright 2011 The Chartered Institute of Marketing
Cutting Edge: Our weekly analysis of marketing news
responsibility may be gaining a serious foothold in The Prostate Cancer Charity and online bookmaker Betfair. He aims to raise awareness of the disease The Economist, 29 January-4 February 2011, p61
Third Sector, 1 February 2011, p7
Before you write that business plan…
Most business plans do not raise money and many
fail. This is partly because the opportunities may be Peppa Pig does to America
flawed, but more importantly because they focus on The best-selling pre-school toy last year was Peppa the entrepreneur rather than being customer- Pig, which overtook Thomas the Tank Engine for the focused. Here the author advocates the use of a first time, and reached record merchandising sales ‘customer-driven feasibility study’ to guide the of £200m. Now Peppa is being taken to the US in an assessment of the idea before the business plan is agreement with Nick Jr, the largest children’s TV written. The structure of the feasibility study is set channel in the country. If successful, one small pig could achieve $1bn in merchandising sales in its first Business Strategy Review, Vol 21 (4), pp92-93
The Daily Telegraph, 25 January 2011, B3
Promotional marketing
Mulberry reaches out globally
New research by fast.MAP has revealed that the Luxury brand Mulberry has reported that sales at people who respond best to promotions linked to stores rose by 70% in the six weeks to 15 January, charities are those aged between 18 and 44: 40% of while wholesale orders increased by 104% for spring consumers in this age group have changed their 2011. It seems that despite the recession, shopping behaviour as a result of a promotion. This consumers can still afford to buy upmarket bags. figure declines in the older age groups of 55 plus, Analysts believe that the Mulberry brand now has a which are the groups that charities traditionally global presence and its products are appealing to a target. It is important however, that charities have synergy with the brands that they are partnering Retail Week, 28 January 2011, p11
with, and that the charity is relevant to the consumer Nintendo goes 3D
Promotional Marketing, January 2011, pp8-9
At the end of March Nintendo will begin selling the Nintendo 3DS in the US. This is the first portable Volunteers declining in numbers
gaming console to give 3D images without the need The latest Citizens Survey from the Communities for special glasses. Popularity of the DS and Wii and Local Government department reveals that the console, which use handheld controls, has fallen percentage of people who volunteer has fallen every since last April and Nintendo could do with a boost year since 2005. Thirty-eight percent of respondents in the face of fierce competition from Sony, Sharp, to the survey had volunteered at least once during LG and Apple. Nintendo hopes to introduce the last 12 months, compared with 44% in 2005. Hollywood movies and content on the 3DS at some Third Sector, 1 February 2011, p4

Marie Curie apps for appeal

Bloomberg Businessweek, 24-30 January 2011, pp38-39
Marie Curie Cancer Care is to launch its first TV ads and smartphone apps, as it gets ready for its ‘Great Daffodil Appeal’, its biggest fund-raising event of the McFlation
year. The charity aims to recruit more donation There is general disagreement as to the best way to collectors, over and above its usual supporters who measure consumer-price inflation. The Economist’s are mainly women aged forty and over, and to ‘Big Mac’ index might help as a way of deciding increase people’s awareness of where their whether currencies are under or over-valued. McDonald’s Big Mac provides a consumer-price Marketing, 26 January 2011, p7
basket since it consists of food, materials, wages and rent. Last year’s prices for a Big Mac have been Save the Children seeks inspiration
compared with those of ten years ago. The index Save the Children’s latest campaign, called ‘No reveals that in China the price of a burger rose by an Child Born to Die’, features a group of young annual average of 3.7%, while the officially reported children watching clips of inspirational figures, such inflation rate was only 2.3%. This might be because as Nelson Mandela, Albert Einstein and Muhammad food prices have risen faster than other prices. Yet Ali and is narrated by Helena Bonham Carter. in Russia and Indonesia Big Mac prices have risen a Campaign, 28 January 2011, p5
lot less than the official price index, so perhaps those governments were over-stating their inflation! Darth Vader helps prostate charity
The Economist, 29 January 2011-4 February 2011, p70
Actor Dave Prowse who played Darth Vader in Star Wars, is helping to promote a partnership between Copyright 2011 The Chartered Institute of Marketing
Cutting Edge: Our weekly analysis of marketing news
open 30 stores this year and will also sell the ranges Retail Week, 28 January 2011, p5
Npower design fits the bill
Npower is providing its customers with easy-to-
understand bills in order to differentiate itself from its
competitors in the energy market. The bills feature Oyster card in contactless payment.
feedback from consumer groups Which? and MasterCard is sponsoring Transport for London’s Consumer Focus. In addition Npower’s new TV ads Oyster card ‘wallets’ this year. The deal will include are focusing on the new bill design, which the six million branded wallets and forms part of company claims is a unique angle for marketing in MasterCard’s promotion for its contactless payment Marketing Week, 27 January 2011, p5
Marketing, 26 January 2011, p4
Taqa to raise brand awareness
.enter the iDebit card
You’ve probably never heard of the Abu Dhabi Shoppers who own one of Apple’s new iPads or National Energy Company, Taqa, but it is in fact the iPhones will be able to use them to pay for items at sixth largest independent power producer in the the checkout without using a pin number. The world with a portfolio worth $23.4bn. It has just devices contain a mobile payment feature, allowing recruited corporate comms consultancy Capital MSL the person to simply pass the device over the to undertake its global corporate communications, terminal to pay for goods. It is possible that Apple investor relations and brand development. will decide to subsidise payment terminals in shops PR Week, 28 January 2011, p9
in order to compete with MasterCard and Visa. The Daily Telegraph, 26 January 2011, p1
New JP Morgan ad pops up
Greening the supply chain
Investment bank JP Morgan has a new campaign in Companies are using all sorts of methods to give the US comprising an animated film in the style of a their supply chains the necessary eco-credentials. In pop-up book. The ad seeks to show how many France, for example, Pernod Ricard uses river homes and businesses the bank has saved since barges, not trucks, to carry its Mumm and Perrier- Jouet Champagne to Le Havre, where it is shipped out. However, there are challenges for brands that Campaign, 28 January 2011, p6
are produced locally yet need to transport their goods to global markets on time and in good condition. It tends to be the FMCG brands that are paying heed to environmental pressures because of Beverages
consumer awareness and pressure from the Get adventurous – have a gin
Hendrick’s, the gin brand, is to put on a number of The Financial Times, 26 January 2011, p4
‘Afternoon Tea with a Legend of Adventure’ events in London, Edinburgh, New York and Madrid. Here people will be able to meet adventurers such as round-the-world yachtsman Chay Blyth, who is due Facebook shop opens
ASOS.com claims to be the first brand in Europe to Marketing, 26 January 2011, p10
open a Facebook shop where people can buy clothes without leaving the social network site. The Heineken refreshing the parts etc…
Two of Heineken’s beer brands’, Dos Equis and Sol, Marketing Week, 27 January 2011, p5
and cider brand Strongbow may be made into global brands to offset any weakening in the European LK uses real people
market. Strongbow is a well-known brand in the UK, Fashion retailer LK Bennett says it is using ‘real having launched some notable ad campaigns, but it women’, rather than airbrushed models, in its latest isn’t sold in the Americas or other European campaign. The ads show four women, all with countries. However, Heineken is placing the greatest busy careers, who were chosen following a emphasis on its main beer brand, Heineken, which accounts for 25% of sales. Its new ad campaign, Marketing, 26 January 2011, p1
launched in December, achieved more than four million online hits over a four week period. Boux Avenue
The Daily Telegraph, 27 January 2011, B3
Theo Paphitis of Dragon’s Den fame has released the first pictures of the ranges – Vintage Garden Removing the daily grind
Party and Burlesque Boudoir – which are available Douwe Egberts is launching ground coffee tablets at his new lingerie chain Boux Avenue. He intends to called Aromettes. They work by dissolving in boiling Copyright 2011 The Chartered Institute of Marketing
Cutting Edge: Our weekly analysis of marketing news
water and are suitable for use in filter machines and cafetières. Aromettes are targeted at the one in four instant coffee drinkers in the UK who consider ground coffee to be ‘too difficult to make’. Alternative campaigns
The Grocer, 29 January 2011, p26
The campaigns for and against the alternative vote (AV) electoral system are under way. The NOtoAV campaigners, who want to keep the ‘first past the Cocoa up in price
post’ system, will be distributing six million leaflets The Côte d’Ivoire produces 34% of the world’s telling you that AV is used for elections in only three cocoa, which is currently in high demand by countries. Meanwhile the Yes! To Fairer Votes chocolatiers as Easter approaches. Unfortunately campaigners want AV to be introduced and are the price has shot up following a disputed getting their supporters to target the general public presidential election. Alasanne Ouattara, the election winner, has asked for a ban on exports of Marketing, 26 January 2011, p4
the cocoa crop as he tries to get the incumbent How Government PR is looking
The Economist, 29 January-4 February 2011, p7
The Government communications operation was restructured by David Cameron’s director of Saucy Guinness
communications Andy Coulson before he resigned Heinz and Diageo have got together to create the from his post. The new structure merges the HP Guinness Sauce, a stout-flavoured sauce. It Number 10 and Cabinet Office comms division, aims to appeal to ‘scratch’ cooks as well as those leaving seven units. Theses are: the No 10 Press Office; Deputy Prime Minister and Political Reform; The Grocer, 29 January 2011, p28
Government Reform and Efficiency; National Blueberry grows in popularity
Government Campaigns; Digital Communications; Blueberries have become the second favourite fresh berry in the UK, after overtaking raspberries. Last PR Week, 28 January 2011, p1
year shoppers bought 11.4% more blueberries in volume terms than they did in 2009. This is attributed to supermarket promotions and weather Eli Lilly – a model of innovation
conditions, which have adversely affected other This case study of Eli Lilly, one of the biggest types of berries. The best-selling berry continues to pharmaceutical companies in the world, describes how it lost its exclusive patent protection for Prozac, The Grocer, 29 January 2011, p34
a drug that accounted for around a third of annual sales. The company struggled to find a solution to its Household
problems until two employees came up with the idea Can Ocado corner the market?
of an internet-based problem-solving forum. Eli Lilly Ocado is launching a dedicated microsite, called Pet set up InnoCentive, an independent company based Corner, for its pet supplies. It will put all its food and on the forum. It meant that anyone could feed ideas non-food pet products on this site, which also offers into the forum but the company only had to pay for pet advice as well as links with the main Ocado site. solutions that worked, thus reducing R&D costs. In addition to the mainstream brands, the site will This helped it to create new drugs, such as Cialis, a stock niche products, such as Lily’s Kitchen organic rival to Viagra. Other pharmaceutical companies Retail Week, 28 January 2011, p4
The Financial Times, 27 January 2011, p17
How to say with flowers
Approaches to health care
This year there is plenty of help for men who are The debate over UK health care goes on as the unsure of what to do for Valentine’s Day. The government tries to control costs, but the subject Flowers and Plants Association has produced a tends to arouse strong public opinion. This article ‘man’s guide’ to buying flowers. It provides men with looks at the health systems in a group of developed tips on buying flowers for Valentine’s Day, which nations – the UK, France, Singapore, Japan and the includes the advice not to purchase flowers from US – and identifies a variety of approaches. In the supermarkets. (See also under Retailing) UK, for example, the NHS has set up nine regional The Grocer, 29 January 2011, p34
NHS Innovation Centres, which are dedicated to finding new and innovative methods of delivering Business Strategy Review, Vol 21 (4), pp18-25
Copyright 2011 The Chartered Institute of Marketing
Cutting Edge: Our weekly analysis of marketing news
Motorola uses new devices to fight back
Coal mining on the rise
Motorola is launching two innovative devices this Coal has become unfashionable in rich countries year, which seem to be attracting some attention. because of air quality and carbon emissions, but in The Xoom is the first tablet to be powered by the other areas of the world demand has never been Android 3.0 Honeycomb operating system, while the greater. In fact the International Energy Agency Atrix smartphone claims to be ‘the world’s most (IEA) estimates that world consumption of coal will powerful smartphone’ because it has a dual-core increase by a fifth in the next 25 years, while the processor. Since 2004, when it launched the Razr price is likely to peak at $170 a tonne in 2012. This camera phone, Motorola has been overtaken by is good for the mining industry, particularly other manufacturers such as Apple which has companies in Asia. Indonesia is the biggest exporter proved faster at getting innovative products to to China because of its location and the fact that its market. Motorola has a 4.3% share of handsets in coal is of high quality. Australia, South Africa and Marketing Week, 27 January 2011, p10
The Economist, 29 January-4 February 2011, pp62-63
Skype goes to school
Copper prices lead to industry consolidation
After noticing a trend for Skype to be used to Prices for copper have risen by 28% over the last 12 connect with other schools and experts around the months. This is sparking off a chain of mergers and world, the company has decided to launch a acquisitions amongst mining companies. One such community site, Made By Many. It targets the example is Symterra, a Canadian copper producer, education sector and aims to encourage teachers to which will be formed by the impending merger of use Skype in the classroom, The website asks Inmet and Lundin, two Canadian mining companies. teachers to provide details for its directory so that The new company hopes to produce 500,000 metric other teachers can get in touch with them. New Media Age, 27 January 2011, p6
Bloomberg Businessweek, 24-30 January 2011, p25
Nokia takes profit knock
Nokia, the world’s largest phone manufacturer, has reported a fall in profits for the third consecutive quarter. Although overall net sales have risen, its Kindle books overtake paperbacks
mobile handsets and services have experienced In the last quarter of 2010 sales of e-books overtook zero growth and pre-tax profits have fallen by 22% those of paperback books on Amazon. Amazon is to €833m. Nokia is struggling to compete in the selling 155 Kindle books for every 100 paperbacks, although sales of paperback books are also on the increase. Last July Amazon announced that sales of The Guardian, 28 January 2011, p34
e-books had exceeded those of hardback books and predicted that by the second quarter of this year paperbacks would also be overtaken. This means FA tackles behaviour
that the growth in e-books is occurring faster than The Football Association has launched a campaign to try to stamp out bad behaviour from supporters Marketingmagazine.co.uk, 28 January 2011
and players. It has created a ‘club’ called Respect FC and promises to donate £1 to grassroots football Gaming tactics to attract loyalty
Marketing, 26 January 2011, p7
In the US a new type of business consultant has risen out of the need for websites to be revitalised Industry should respond to digital travellers
and to attract more page views. One such outfit is The travel industry is increasing its digital activity in Bunchball, which helps to give websites a much response to rising consumer use of both mobile and needed makeover by giving them certain attributes social media. These days 37% of British adults of video games. If visitors to the site perform undertake their holiday research online, while 26% particular tasks, such as posting comments or make bookings online. TripAdvisor has four million emailing links to friends, they can earn points or monthly users via mobile devices, while British badges. Bunchball has already tackled more than 50 Airways reports that 30,000 of its Executive Club sites, including NBC and Playboy. It and other game passengers used mobile-enabled boarding passes consultancies can charge up to $10,000 a month by in the three months since the service launched. This using video game tactics to increase customer rise in digital activity creates a significant opportunity Bloomberg Businessweek, 24-30 January 2011, pp35-36
New Media Age, 27 January 2011, pp19-22
Copyright 2011 The Chartered Institute of Marketing
Cutting Edge: Our weekly analysis of marketing news
Internet
industry: falling circulations; an aging demographic Is cyber stalking.
who read the print version; and the frequency with Consumers may be starting to feel that advertisers which people buy papers. The implications for are becoming too intrusive. With behavioural advertisers, agencies and publishers are discussed. targeting and retargeting this is fast becoming a form InPublishing, January-February 2011, pp22-23
of virtual stalking warns Andrew Walmsley. In the US the Interactive Advertising Bureau (IAB) Social media
promotes the Advertising Option Icon, which Quora – the next thing in social networks?
displays a link that discloses how data is used and Is Quora going to be the next big social networking allows people to opt out of behavioural targeting. phenomenon? It was founded by former Facebook Marketing, 26 January 2011, p12
employees in 2009 and was made available to the public last year. The site lets users ask questions, .of concern to consumers?
answer questions posted by other people and follow The Institute of Practitioners in Advertising (IPA) has questions. Other users can vote on whether they like added its twopenny-worth to the debate by calling or dislike the answer and if enough people dislike it, for research into consumer attitudes on ad the answer disappears. But brands had better watch retargeting and to establish best practice. There is out, since an answer could have a negative impact anecdotal evidence that people are uncomfortable on the brand. Conversely a good answer could push about ads ‘following them around the web’. the brand to the top of the pile. Here are five ways in New Media Age, 27 January 2011, p6
New Media Age, 27 January 2011, pp20-23
Magazines
Predictive behavioural targeting
ISBA guide
Dennis Publishing, publisher of Auto Express, Car Yesterday the ISBA published a social media guide Buyer, Evo and The Week, is to start using for British advertisers to help them make the best predictive behavioural targeting. This works by use of the channel. It provides an overview of the asking readers to complete surveys on the social media marketplace and the strategies publisher’s site. These aim to collect information advertisers can use to position the channel within about readers’ buying intentions over the next 12 their marketing strategies. It also covers months and often ask for their brand preferences. engagement, planning and digital measurements. The information is used, together with click-patterns Marketingmagazine.co.uk, 27 January 2011
and behavioural data, to form models and build user segments. Dennis is just one of a number of Television
companies that have been using this process to TV ad spend to grow
increase the value of their audiences to advertisers. Forecasts for TV advertising spend this year are New Media Age, 27 January 2011, p8
looking optimistic: spend for the first quarter of 2011 is predicted to be around 7%, with monthly Print edition of Sugar closes
increases of 6%, 12% and 3% for the first three Publisher Hachette Filipacchi is closing its print months. The second quarter is also expected to start magazine Sugar, which targets the teenage market, well, with growth of 6% in April, due partly to the after finding out that most of its teenage audience had migrated online. It will instead concentrate on Mediaweek.co.uk, 31 January 2011
the digital edition. Over the last ten years the teen magazine market has shrunk by 75%, because Promoting product placement
teenagers prefer to spend their time on mobiles and ITV Creative is creating a TV campaign for all the online and expect to receive content for free. commercial TV broadcasters, to communicate the fact that product placement will be allowed in UK New Media Age, 27 January 2011, p10

programmes from 28 February. The ads will be shown in commercial breaks across ITV, Channel 4, Newspapers
Sky and UKTV channels. Ofcom has specified that The state of newspaper advertising
broadcasters must run an audience awareness Online content is undoubtedly growing as a campaign to inform viewers about the new product proportion of media consumption. However, in the placement logo, which it will unveil in February. latest Deloitte State of the Media Democracy report Campaign, 28 January 2011, p1
49% of respondents said that they heed print advertising in newspapers and magazines more than they do advertising on the internet. In fact 66% TV viewing figures
of respondents claimed to read their favourite According to the trade body Thinkbox, the average newspapers in print, an increase on the 60% who UK TV viewer watched four hours and two minutes said so two years ago, while just 26% read their of TV a day last year. This represents a record figure favourite newspaper online. But these findings tend and an increase of 63% on the previous year. But to hide the underlying problems for the newspaper these figures are unlikely to be exceeded in the future since linear viewing will be affected by the Copyright 2011 The Chartered Institute of Marketing
Cutting Edge: Our weekly analysis of marketing news
various on-demand services. Last year’s figures Superdrug enters loyalty arena
meant that viewing of ads at normal speed rose to This year sees the launch of Superdrug’s first loyalty 46 per day, up by 5.9% compared with 2009. programme. Superdrug is owned by retail group AS Campaign, 28 January 2011, p5
Watson, which has 9,000 health and beauty stores worldwide and already runs a number of loyalty schemes. It aims to compete with Boots which has been operating its Advantage Card scheme since Paper milk bottles
Martin Myers of Suffolk has invented the Marketing Week, 27 January 2011, p4
GreenBottle, a bottle inspired by the papier-mâché technique. It looks a lot like the two-litre plastic milk Mobile success
bottles that you see in supermarkets, but consists of During the first half of the year both ASOS and John a paper shell with a plastic lining to keep the milk Lewis will be launching transactional mobile apps. fresh. Once it has been used the lining can be ASOS’ mobile revenues reached £1m in the UK discarded and the outer material can be recycled up during December, double that expected, while John to seven times, compared with plastic bottles that Lewis has experienced a 50% increase in mobile can only be recycled once. The bottle is being traffic since the launch of its mobile site in October. It is estimated that the mobile commerce sector will The Observer, 30 January 2011, p13
New Media Age, 27 January 2011, pp1-3
7Up simplifies
7Up, the lemon-lime soft drink, has created a new
logo and packaging to reflect its ‘simpler is better’
brand message. The new logo, which has become Open innovation
larger and bolder to make it more visible on the Here the author argues that open innovation – the shelves, is being introduced this month. The idea that companies should organise their innovation packaging also places emphasis on the ingredients, to be more open with a flow of information into and out of the organisation – works differently in service Marketingmagazine.co.uk, 31 January 2011
businesses than in product and technology innovation businesses. Service customers are involved in a process that repeats itself, resulting in a customer experience, while few companies have Supermarkets welcome shopers through WiFi
R&D in their services business. However, some O2 is creating a free, nationwide WiFi network, open innovation concepts can be used in service which will be accessible to everyone, including innovation. Amazon, for example, has brought the people in supermarkets. As the customer enters the ‘outside in’ through allowing customer reviews and shop and connects to the network, the supermarket third party sellers on its site. One way in which can send them a welcome message together with service companies can migrate towards open news of any special offers. The WiFi hotspots are to innovation is by working closely with their customers be managed through partnerships with 15,000 MIT Sloan Management Review, Vol 52 (2), pp85-90
The Grocer, 29 January 2011, p8
Visionary strategy
It’s a man campaign
Vision Express is to stop using its ‘eyeballs’ ads and Ann Summers hopes to attract male customers into logo and will instead use a cross-shaped motif to its shops before Valentine’s Day by renaming four of emphasise the ‘x’ in its name. The new marketing its main stores ‘Man Summers’. The stores will have strategy places the emphasis on how the optician is live models of various shapes and sizes wearing able to help consumers with the line ‘We’ll see you Ann Summers’ lingerie, so that men can judge bra sizes. Promotional ‘man cabs’ will also pick up male Marketing, 26 January 2011, p3
shoppers and transport them to the stores. All this activity is accompanied by what is described as a Making a spectacle of oneself
Specsavers’ new TV ad shows a short-sighted
Retail Week, 28 January 2011, p1

young woman meeting her partner at a train station, John Lewis launches beauty salons
only to find that she has embraced the wrong man John Lewis is to open beauty salons in two of its because the two men are both wearing beige suits. stores, which will offer treatments such as facials, Campaign, 28 January 2011, p5
manicures and threading. This follows the news that Tesco is to open beauty salons in some of its stores. Jeeves 10th anniversary campaign
Marketing, 26 January 2011, p11
This article analyses the success of Ask Jeeves’ 10th anniversary campaign last year, which involved posting the top ten most unanswerable questions Copyright 2011 The Chartered Institute of Marketing
Cutting Edge: Our weekly analysis of marketing news
on its website. The campaign generated an average seems that from previously having had a simple daily click-through rate of 10%, double the usual choice between the full service or the budget airline, rate. Within four weeks the campaign had 5,400 the air passenger will be presented with an answers posted on the site and 45,000 visitors to the core site, while the Jeeves Twitter feed doubled its The Economist, 29 January-4 February 2011, p60
PR Week, 28 January 2011, pp12-13
Disaggregate
This term was first used in 1828 in a scientific
Lexus adopts Kylie
context. It was later used in the 1980s as an Lexus, the Japanese car brand, is targeting the expression in strategy consulting and business younger driver by using Kylie Minogue in its latest modelling. It referred to the separating out of the advertising. The new campaign promotes the CT organisation into ‘discrete’ operations that had 200h, a hybrid hatchback and the first Lexus luxury become subsumed within the business. The compact model. Lexus will also be the headline expression has since been employed in ecommerce and is often associated with terms such as Marketing, 26 January 2011, p1
‘unbundling’, ‘outsourcing’ and the ‘divestment of core business’. It is also a useful word to slip into conversation, should you be short of business Screen hopping jazzes up ads
Honda’s new ads for its Jazz model use ‘screen Business Life, February 2011, p6
hopping’ technology. This means that viewers can interact with a TV ad by transferring characters in the ad to their mobile handset’s screen in real time. They can then play with the interactive features of Emerald, a leading publisher of management the characters. Even though the viewer may not research, is featuring two journals a week which are seek to buy a new car straight away, this will help to free to access. This week’s selection consists of Journal of Asia Business Studies and International Marketing Week, 27 January 2011, p5
Journal of Lean Six Sigma. If you click on the following link and the journal title, it will take you to a Virgin clicks with what works best
table of contents where you can access some of the Virgin Atlantic is developing an online ‘best click’ issues. Next week’s journals are: Equality, Diversity attribution model, rather than placing all its emphasis and Inclusion and International Journal of Logistics on the ‘last click’ approach. The technology, from tracking specialist Tagman, monitors all online http://www.emeraldinsight.com/jotw/index.htm
marketing activity. This provides data on which sites are providing the most value, helps to attribute sales accurately and to reward the right site. It also helps in understanding which campaigns and marketing New Media Age, 27 January 2011, p8
Written by The Chartered Institute of Marketing’s Budget airlines are changing
The European low-cost airline market used to be Copyright 2010 The Chartered Institute of Marketing high-growth and offered an uncomplicated, no-frills, service model, but now the market is slowing. Ryanair, the market leader, is expecting growth to The views expressed in Cutting Edge are not decline from 14% in 2009-2010 to 6% by 2013. To necessarily those of The Chartered Institute of address this trend it plans to focus less on increasing its traffic numbers and instead intends to charge its passengers more. EasyJet is also transforming its offerings by improving cabin service and allowing passengers to opt for priority boarding. Other budget airlines are following their example. It Copyright 2011 The Chartered Institute of Marketing
Cutting Edge: Our weekly analysis of marketing news
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Restaurant Support Officer for McDonald's US West Copyright 2011 The Chartered Institute of Marketing
Cutting Edge: Our weekly analysis of marketing news
We created this edition of Cutting Edge from the sources listed To fast forward click on the following links: below. As a member you have access to a range of them through the CIM website, some are available on the internet freely but there will be others that can only be supplied through our photocopying service. To access the journals you have available to you as a member: www.cim.co.uk/elibrary and log in to the site  Then click return to original location  You will then have access the links to Ebsco, Emerald and the e-  A user guide for the electronic resources is also available here Please note the titles as they appear in Cutting Edge are not the same as in the original article. Therefore the easiest way to search is via the publication tab, search for the correct publication and then use the date links. This will also clearly show if there is an embargo on the title or if there is a short delay. **Full text available on Ebsco – although there may be an embargo *Abstract available on Ebsco ~Available online if you register Business Strategy Review** (12 month embargo) International Journal of Market Research** Third Sector (selected articles available) Please contact the library if you would like any further assistance or would like more information on our photocopying services. Tel +44 (0)1628 427333 Email library@cim.co.uk Copyright 2011 The Chartered Institute of Marketing

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