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Pay It Forward

Trendwatching.com posted an extract from The Globe and Mail discussing the trend of helping consumers “feel good”.

“Paying it forward” is an old idea with new life lately. Many different major brands have launched promotional campaigns that blur the line between business and philanthropy.

Benjamin Franklin pioneered the idea more than 200 years ago when he lent a colleague some money on the condition that it be repaid not to Franklin but to someone else in need. Franklin wrote at the time: “This is a trick of mine for doing a deal of good with a little money.”

Maybe the idea caught fire because news of Feel Good Ripples spread due to what Wharton School professor Jonah Berger calls “social contagion,” a mechanism by which consumers and media decide what to pass along. “People like to talk about what is surprising, remarkable and unexpected,” Berger says. “They also like to talk about what makes them look good. Self-interest is a big driver.”

For more hedonistic brands, the experience has been mixed. Starbucks received some positive feedback in the mainstream press, but bloggers sniffed that the whole thing felt contrived. Starbucks customers reported feeling good about themselves when in 2006, news of a pay-it-forward phenomenon at Starbucks drive-throughs began to make the rounds. Customers pulled up to the window only to be told the driver ahead had already paid for their coffee. The cashier then asked if they would like to pay for the customer behind them. These chains of benevolent coffee purchases reportedly carried on unbroken for hours at a stretch (and still do, by some accounts). And that may be the real dividend from initiatives of this type. Berger’s assertion that acts of generosity are driven by self-interest may not be so cynical after all. In other words, if your company can make customers feel good–even in such an oblique fashion as facilitating their philanthropy–the customers are likely to transfer some of that goodwill back to your brand. That’s a “trick” of which Benjamin Franklin might have approved.

Here is a random act of kindness: Dean’s Mailing is offering a free marketing consultation to your favorite charity. This is valued at over $250.00 and will help save money and increase response.

Television Ad Spending

Forrester Research released an excerpt of a study on TV Ad Spending and predicts that TV ad spending will grow by 1% to $69.5 billion in 2010. Forrester Research also released an excerpt of a study on Media Measurement stating that marketers can’t see value in multichannel marketing until they can measure it. TV spending is still the biggest expense for large companies, even as Internet usage increases and mass media audiences fragment. “65% of marketing leaders think Internet measurement is more useful than TV measurement.” Measurement of TV advertising and other media will become more like that of interactive marketing, and branding advertising and activities will be held to the stricter accountability of direct marketing.

Direct marketing’s measurability is the desired standard.

The Way Consumers Make Purchasing Decisions Is Evolving

According to an article extracted from McKinsey Quarterly by Harvard Business Publishing, customers are controlling more of the buying decision process and actively “pulling” information helpful to them. McKinsey research found that during the phase when consumers are considering a purchase, 2/3 of the touch point moments (that is, instances when customers learned more about a product) were actually driven by the consumer rather than the seller. These include reading product reviews on the Internet, discussing a product with friends and family, or in-store interactions.

Traditional marketing, including direct mail, remains important, but more in building brand and awareness, before customers are decide exactly what to purchase.