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Marketing to Women

Marketing to women . . . a few companies in the travel industry get it.

In her latest book, marketing to women expert and author Martha Barletta writes, "By the way, one of the fastest-growing segments of the travel industry is called 'soft-adventure.'  It involves taking people - typically, a group of women on a 'girlfriends' getaway' - on tours that combine creature comforts with exotic locales."

An update of the travel industry's focus on women was found in the article, "Travel market's new niche:  Women-only vacations."  The article by Associated Press reporter Theresa Agovino appeared in the Sunday, August 20, 2006 issue of The Sacramento Bee.

Agovino writes, "Christine McIver found a surefire way to ensure some of her less-than-fond memories gathered as a trail guide wouldn't be repeated on a horseback riding vacation she was planning:  She booked a women's only trip.

"McIver formerly escorted horseback riders on short trips and remembers men showing off and doling out needless advice to their girlfriends.  So when she decided to treat herself to a 40^th birthday gift of a riding trip in Wyoming last month, she eliminated the possibility of male egos spoiling her fun.

"'I just didn't want to have to deal with men who thought they were better than me,' said McIver, a teacher from Allenhurst, N.J., who has been riding since she was in the third grade.

"Reasons vary, but increasingly women are choosing to take vacations that exclude those carrying the Y chromosome and tour companies, hotels and lodges are lining up to cater to their desires.

"Travel experts are hard-pressed to deliver statistics on the women-only portion of their industry, but say it is becoming increasingly important.  Marybeth Bond, an author of seven books on women and travel, estimated the number of companies that run tours only for women is now about 30, up from 21 five years ago.

"And hotels and lodges offer all kinds of women-only packages ranging from celebrating weddings to learning or improving skills like skiing or painting.

"Lalia Rach, dean of the Tisch Center for Hospitality, Tourism and Sports Management at New York University, said women have more money and freedom than they've ever had before, so failing to address their cravings is simply bad business.

"Women-only tours fill a niche for women who lack traveling partners, don't enjoy solo vacations and don't want to risk booking a package that could be loaded with couples or lecherous singles.

"And since women tend to plan the family vacations, creating specialized opportunities for them is a great way to reach the decision maker, tourism experts said.

"Le Merigot, a JW Marriott beach hotel and spa in Santa Monica, now offers a women and wine package that includes a bottle of wine, a dinner with wine pairing, massages and guides to nearby wineries.

"Debra Rosenberg Matsumoto, director of sales and marketing at the property, said she hopes the package will encourage women traveling for business to stay an extra night or those who purchased the package to come back with their significant others or more girlfriends for even longer stays.

"Rosenberg Matsumoto said that women have traditionally been associated with spa vacations, but this package provides them with other fun activities, a combination she hopes will give the property an edge.

"'We see a trend of women wanting to do all kinds of things,' said Rosenberg Matsumoto.

"Women traveling with Adventurous Wench, which caters exclusively to females, will often find their vacation itineraries include recommendations on where to get a massage, shopping tips, a trip to a garden or a cooking class, activities that may be lacking in packages that cater to mixed groups.

"That's part of her trips' allure, said Deanna Keahey, who founded Adventurous Wench in 2003 when she was parting ways with her partner and realized she was losing her primary traveling companion.

"'I went on an (organized) trip and was the only single.  I was the odd person out,' Keahey said. 

"So Keahey started a company that organized the kinds of vacations she would like to take: trips that offer some physical activity such as white water rafting but also include cultural excursions and stays in comfortable hotels.  The first year Keahey organized three trips.  This year, the company offered 13 excursions and plans to promote 15 to 17 packages in 2007.

"Keahey and others in the tourism industry say that women and men often have different travel approaches.  For example, they both may want to hike to the top of the mountain, but men tend to want to reach the peak efficiently while many women don't really care how long it takes, preferring to meander through villages and markets on the way.

"'I think women pay more attention and appreciate more of the local character, local feeling of a place,' said Leahey.  She also adds, 'We don't really rough it.'

"Bobbi Wade, an owner of High Wild & Lonesome Horseback Adventures, said she sees tremendous differences in how women and men behave on the outings.  The company began offering one women-only weekend trip five years ago.  This year, it offered two weeklong vacations for women to improve their riding skills and will offer at least that many next year.

"'Men are more goal-oriented,' Wade said.  'Women appreciate every little thing about the experience.  They are more relaxed.'

"Janice Pearson has taken three trips with Adventurous Wench, including one two months ago to Tuscany.  Pearson, a 45-year-old personnel executive, said she is a passionate traveler and has no qualms about vacationing solo, but there are some trips that are hard to plan for a single person.

"Pearson's first two trips with the company were sailing jaunts, excursions that she wasn't about to attempt alone.  Pearson is married but said her husband doesn't like travel unless it involves golf.

"Since she isn't interested in meeting a potential mate, Pearson dismissed the idea of a singles' trip and didn't want to worry about joining a group that resembled Noah's Ark.

"'I like the idea of women traveling together,' said Pearson, who lives in Dexter, Michigan.  'I think it is more comfortable with just women, more fun.'" 

If you're still not comfortable with developing a marketing to women strategy for your company, everything you need to know can be found in just 300 pages.

By reading both the first and second editions of Martha Barletta's book, Marketing to Women - How to Understand, Reach, and Increase Your Share of the World's Largest Market Segment, you will be equipped to develop a marketing strategy that will resonate with women - including PrimeTime Women^TM.

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Nonstop Networking

"Become conversant about current affairs, best-selling books, movies, business news, the stock market, and certainly the latest news and trends in your own industry," advises Andrea Nierenberg.

In this weekly article, you'll find valuable networking advice from Andrea R. Nierenberg, "The Queen of Networking."

Nierenberg likes to think of networking "as the ongoing process of creating connections and nurturing relationships that benefit both parties over time."  You can start networking at any time and do it anywhere.  In fact, according to Nierenberg, most of us may already be doing it without realizing it.

Part I of Andrea Nierenberg's second book, Million Dollar Networking, published in 2005, is about meeting people and establishing relationships and business opportunities.

Chapter 3 is titled, "Techniques for a Successful Networking Event."

This chapter is devoted to presenting all the techniques you'll need for a successful networking event.

The first set of techniques appears under the following subhead:

"Preparation - Before the Event

• "Do Your Research
• "Identify Who You Want to Meet
• "Take Your Tool Kits - Intangible and Tangible
• "Have an Opening Line
• "Have a List of 'Get to Know You' Questions
• "Develop a List of Idea-Generator Topics (Small Talk)
• "Develop a Thirty-Second Infomercial about Yourself
• "Set a Goal for Every Event or Meeting You Attend."

This week we'll cover what Nierenberg wrote about developing a list of idea-generator topics that can be used to initiate small talk while networking.

Develop a List of Idea-Generator Topics (Small Talk)

Nierenberg writes, "Some people are great at small talk. 

"They seem to know something about many subjects and start a conversation on any of them.  You can, too.

"Write ideas down as you think of them or read or hear something of interest to others.  Become conversant about current affairs, best-selling books, movies, business news, the stock market, and certainly the latest news and trends in your own industry.

"Keep a journal of such topic ideas, organized by subject.  Develop opening lines around topics that are current and in the news.

"Every day the papers and news shows are filled with information that most people will know about.  However, you have to be careful that your topic is not too controversial.  Topics related to politics and sex are usually best addressed some time down the road.

"You don't really want to find yourself in disagreement with your new acquaintance.  If this happens, gracefully move on to another topic that is a little less provocative.

"The bonus for doing your small talk research is that you become knowledgeable and more well-rounded.  People enjoy talking with people who are both interesting and knowledgeable.  Small talk is also part of the exploration process in conversation that leads to discovering opportunities and common interests.

"As you feel more at ease with the art of small talk and learn how it helps you get to know another person, you'll find how effectively it opens the door to trust and rapport."

In a sidebar labeled "A TIP ON WHERE TO FIND IDEA GENERATORS," Nierenberg writes, "Read the Wall Street Journal every day, either online or in print, and another national newspaper that you respect, such as USA Today.

"These are considered news sources, and so much of what they cover appeals to a wide variety of people.  Most important, they're well written and cover many topics in addition to finance and business.  You'll learn a lot.

"A quick read of page one in the Wall Street Journal will give you many idea generators.  If you really want to stand out, read the industry paper or magazine that is related to the event you attend so you have current information about that industry.

"I like to prepare by reading as many of these as I can find online."

Next week we'll cover what Nierenberg wrote about developing a thirty-second infomercial about yourself.

Learn more about networking and Andrea Nierenberg by visiting her website at http://www.mybusinessrelationships.com.

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Copywriting Insight

"Puns in headlines are advertising malpractice," wrote veteran copywriter Gary Bencivenga, in his article, "The Most Important 9-Word Sentence in Marketing History," presented as Bullet #19 in his free, online e-letter, Bencivenga Bullets.

Bencivenga writes, "It's a 9-word sentence I first read in the book Reality in Advertising by copywriting genius Rosser Reeves.  He said that he had learned it from a legendary copywriter whom he didn't name. 

"This one sentence made fortunes for Reeves' clients, as well as my own, and for scores of other marketers wise enough to apply it rigorously, as I hope you will.

"A gifted product is mightier than a gifted pen."

Unfortunately, some copywriters can't resist the temptation to get cute by using their "gifted pen" to include a pun in the headline chosen for a newspaper ad. 

Is it the lack of a gifted product that causes some copywriters to revert to the pun?

Perhaps they believe use of a pun in the headline will provide stopping power for consumers scanning the morning or evening paper.

Or worse case, these copywriters are inexperienced in the art of writing great headlines that work hard to stop readers in their tracks and get them to read the rest of the ad.

Whatever the reason or motivation, sacrificing a strong, benefit-oriented headline for a pun is advertising malpractice.

Financial ads utilizing a pun in the headline appeared two days in a row in the Sunday, August 20, and Monday, August 21, 2006 issues of The Sacramento Bee.  Both ads were placed by local credit unions.

Golden1 Credit Union

In the first ad from the Golden1 Credit Union, the copywriter uses the word "Checking" to create the pun.  The end result is a very weak headline.  Being offered to consumers is a very high rate on a 7-month CD . . . much higher than the rates being paid by local banks. 

Since Golden1's goal is to get more new customers by taking them away from local banks, examples for a headline might include:

Headline:  "5.85% APY on a 7-Month CD Earns You More Money Than You'll Get From Your Bank!"

Headline:  "What Your Bank Doesn't Want You to Know!"

Subhead:  "Your Savings Can Earn a Whopping 5.85% APY on a 7-Month CD at The Golden1."  

Headline:  "If You Want a Higher Rate of Interest, Then You MUST Open Your 7-Month CD at the Golden1!"  

In addition to the headline problem, there is a layout problem with the subhead:  "Here's one more way to show you."  From its position immediately to the left of the 5.85% rate, readers may misread the subhead as:  "Here's one more way to show you 5.85%."  This is not the intended message.

Safe Credit Union

In the second ad from Safe Credit Union, the copywriter uses the word "SAFE" to create the pun.  In this instance, the copywriter has sacrificed a great headline to take a jab at the local banks.

Given the informative comparison rate chart below the headline, a headline similar to one of the three recommended above would have been much stronger and more appropriate.

Both credit unions have a "gifted product" in a short-term CD that pays rates significantly higher than those offered by the local banks.

Unfortunately, when writing the all-important headline, both copywriters sacrificed their "gifted product" to showcase their "gifted pen."

A word to the wise - NEVER use a pun in your headline.  You may be pun 'ished for doing so!

Advertising Legend David Ogilvy on Headlines

In David Ogilvy's 1963 book, Confessions of an Advertising Man, the title of Chapter VI reads "How to Write Potent Copy."  The first subhead is simply, "Headlines."  As Ogilvy has discovered, "The headline is the most important element in most advertisements.  It is the telegram which tells the reader whether to read the copy.

"On the average, five times as many people read the headline as read the body copy.  When you have written the headline, you have spent eighty cents out of your dollar.

"If you haven't done some selling in your headline, you have wasted 80 percent of your client's money.  The wickedest of all sins is to run an advertisement without a headline.  Such headless wonders are still to be found; I don't envy the copywriter who submits one to me."

"A gifted product is mightier than a gifted pen."

Gary Bencivenga's entire article, "The Most Important 9-Word Sentence in Marketing History," can be read in its entirety in the August 28, 2006 issue of this newsletter under the copywriting topic.

Headline Articles

To learn more about writing great headlines that deliver results, read the following copywriting articles appearing in past issues of the newsletter.

7/12/04:  The role of eyebrows or kickers in headlines and the three-part headline.

3/07/05:  David Ogilvy on headline writing plus nine headline strategies from Dean Rieck.

3/14/05:  Dean Rieck's "Four Tasks of a Powerful Headline," and Michael Masterson's "Secrets of the 4U's" formula to create powerful headlines.

3/21/05:  John Caples' five rules for writing headlines plus more headline advice from David Ogilvy and Michael Masterson.

8/01/05:  Tracy Gill's nine different approaches to writing headlines from an article in the March 2005 issue of insidedirectmail monthly newsletter.

10/24/05:  Gary Bencivenga's two most powerful words for writing headlines:  The IF . . . THEN technique for writing a great headline.

1/30/06:  Clayton Makepeace's headline writing tips.

2/06/06:  Clayton Makepeace presents a 65-word headline that accomplishes six major headline objectives.

4/17/06:  Michael Masterson's article, "How to Write Great Headlines," which appeared in the Monday, February 12, 2006 issue of the online Ezine, Early to Rise.

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Focus On Design

Can you guess which block of copy is the headline for this bank's newspaper ad?

Or do all twelve lines of copy - consisting of 52 words - above the friendly bee constitute the headline?

And, what happened to the body copy?

Have you ever seen so much disclosure copy at the bottom of a newspaper ad?

Finally, exactly what is it that the folks at Umpqua Bank want me to do after reading this ad?

Once again, while wandering the pages of the local newspaper, your newsletter editor's jaundiced eye caught a glimpse of a bank ad that challenged his ability to focus, read, and comprehend exactly what was being offered.  

Two suggestions for a cleaner look would have been to create a three-part headline as follows:

The eyebrow or kicker in small type:  Umpqua Bank presents . . .

Main headline in big, bold type:  Act now to get a free Motorola® RAZR^TM or Blackberry^TM phone.

Subhead:  Just open a free Umpqua Bank checking account before August 31.

And, move the "summer swarm" and "last chance to catch the buzz" copy further down the page, away from the headline copy.

As it is, the ad layout is simply too busy to be easily read. 

Having studied the ad carefully, two members of the ACTON Marketing creative team had these comments:

Creative #1

It's interesting to see Umpqua calling it a free account instead of their "go" account.  It's always a marketing problem when you name an account something other than FREE Checking or Totally FREE Checking.  "Oops, we've got to get the word free in there!"

The headline "last call to catch the buzz" is so clever - ties in the phone and the bee - they couldn't bear to part with it.  But they should have.  "Free checking, free phone, your choice." should have been the prominent headline.

As for the offer, I would have shown the phones.  Show the product is rule number two on my list.  Have a strong offer being rule one.

And with this particular ad, that's where the problem lies . . . there are really three offers being made here with none of them being the overwhelming favorite.

Quick question:  Which has more strings attached - a free phone with a contract, or a free Disney vacation?  Do you want to read all that disclosure copy to find out?  I don't.

Okay, I read the disclosure copy after all and discovered that customers opening a checking account receive the phone six to eight business days from activation of the new service plan.  A two-year contract is required and the phone is free only after mailing in a rebate card. 

All this extra effort to receive a free gift VIOLATES the important marketing concept of "Instant Gratification."  Consumers want to walk out of the branch with their free gift in hand.  They don't want to wait to receive it in the mail or have to jump through hoops to get it later.

Creative #2

The first glance at the ad made it seem like it was promoting a kid's summer camp or swim party.  With the stylized font used, "swarm" looked like "swim."

"Umpqua Bank presents" is lost at the top.  I didn't notice it until after I read the body copy.

The headline, "last call . . ." should be a subhead, in my opinion, and the "Act now . . ." sentence makes the best headline.  I'm not opposed to long headlines if they serve a purpose.  We used one recently on a sales brochure.  But here, it's hard to distinguish what is a headline (or should be) and what is body copy.

I agree, don't show me the swarm logo or the bee.  Show me the premiums I get for acting immediately before time runs out.  That's what will grab attention.

"There's a lack of focus in the ad because they tried to squeeze in too many ideas: summer swarm theme (with logo, bee, and buzz copy), three premiums, a checking account, and a drawing for a cruise.  The cruise drawing at each branch was lost in the small type used inside the bee's comment balloon.

I don't say this often, but I think the bank logo is too small.  It's overwhelmed by the bee and all the copy.  I'd recommend they concentrate on the top two-thirds of the ad.  Make it readable and eye-catching. 

Then squeeze all that registration information, legal copy, logos, phone numbers, and everything like that into the bottom third of the ad where a reader's eye will ignore it.

Fortunately, none of our graphic designers would set up an ad like this one.  But if I saw one come through proofing, I'd complain.

From your newsletter editor's perspective, the creative team that developed this ad used the "kitchen sink" approach . . . put everything in the ad except the kitchen sink.  And that's what they did.

Sometimes the most difficult thing about creating a brochure, a direct mail letter, or a newspaper ad is identifying what things to leave out, to discard, or cover in another manner.

By cramming too much information into a small space, you create clutter, a loss of focus, a piece that is uninviting to read, and, ultimately, confusion.   

Some simple guidelines for a newspaper ad:

• Leave plenty of white space.
• Have a strong headline.  It's the most important part of the ad.
• Make only ONE offer and make sure it's a strong offer.
• If offering a free gift or premium, show the gift.
• Have a very strong and visible "call to action" so readers know exactly what you want them to do.
• Minimize the amount of mice-type disclosure copy at the bottom.
• Avoid puns, plays-on-words, and other cute copy tricks in an attempt to draw attention to the copy.
• Make your company name/logo very prominent.
• Avoid the "tombstone ad" look.

Above all, learn from the mistakes of others.

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Marketing Terminology Made Simple

This week we take an inside peek at the Ace Hardware Loyalty program. 

We're able to do so as your newsletter editor has been a charter member since the program's inception several years ago.

With the local Ace Hardware store located a mile away and a colorful loyalty card in his wallet, your editor prefers shopping at Ace over the nearby Home Depot.  The absence of employee turnover helps, too . . . making me a familiar face each time I arrive to make a purchase.

Members of the Ace Helpful Hardware Club earn 10 points for every dollar spent at Ace.  For every 2,500 points accumulated, members earn a $5 Reward.  Reward certificates arrive monthly via a very colorful mailer, as you'll see below.

Unlike some loyalty programs where you lose points, you never lose points in the Ace loyalty program.  If the cut-off date for this month's reward certificate arrives and you fall short of the required 2,500 points, your accumulated points simply roll-over toward the next month's certificate.

For example, if you have accumulated 2,800 points this month (spent $280), you'll receive a $5 reward certificate and the remaining 300 points go towards next month's total.

The mailing address is on the top panel of this folded self-mailer as you'll see below.

Copy inside the self-mailer is kept to a minimum.  The old cardstock rewards certificates once attached to the self-mailer were replaced in July with a tipped-on plastic rewards card as you'll see below.  Me?  I like the new plastic rewards card better than the cumbersome old cardstock certificates which were difficult to carry to the store.

It's a very simple, yet effective program with its own website where members can check their points total and obtain other useful information.  You can visit the loyalty program website at http://www.helpfulhardwareclub.com. 

Or, visit the Ace Hardware website at http://www.acehardware.com and click on the Ace Helpful Hardware Club card icon in the bottom left corner of the home page.

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About Marketing ROI

ROI tip of the week: Sending too many e-mail notices to your customers may harm your relationship with these customers.

This is the advice from Philippe Suchet, author of the article, "E-Mail Blasts Kill Channel's Reputation," found in the August 7, 2006 issue of DM News.

Suchet writes, "If you want to increase sales, stop bombarding customers with e-mail. 

"Opt-in e-mail may be one of the most effective marketing tools, but don't overdue it - unless you want e-mail to become as reviled as the loathsome pop-up.

"Take a customer we'll call Jane.  She buys a pair of hiking boots and a parka on sale from an online clothing retailer.  From then on out, the retailer bombards Jane's inbox with general promotions on everything from swimsuits to evening gowns.  Not only does Jane stop opening these e-mails, she gets angrier each time she sees one.

"Instead of offering compelling promotions on outdoors gear to get Jane to come back and buy more of the products she loves, the retailer has turned a customer into a critic who will go elsewhere to make purchases.

"There's no doubt about it, e-mail offers are looking a lot like spam, and vice-versa.  To rescue e-mails from the fate of pop-ups, marketers need to show to their customers that they value their trust and aren't merely using their e-mails purely as a means to a monetary end.  Consumers want to see e-mails in their inbox targeted to their specific needs and desires.

"When asked about promotional e-mail's influence on their purchasing decisions, 60 percent of consumers who made immediate purchases from e-mail did so because the e-mail contained products in which they were personally interested, according to a 2005 study from JupiterResearch.

"That's why targeted e-mail campaigns can produce nine times the revenue and 18 times the profit of broadcast e-mailings, JupiterResearch said.

"Targeting can be as simple as sending a relevant discount offer in the 24 hours following a purchase, or as complex as sending e-mails that take into account a customer's purchasing history, age, sex, location and past browsing behavior.

"Some buyers are price sensitive and shop only during sales.  Others buy trendy items as soon as they come out.  These shoppers should get different e-mails at different intervals.

"So why do marketers continue to view e-mail as a quick and cheap way to reach customers, even as more people become annoyed with spam-like promotional offers?  Why do they refer to e-mail campaigns as 'e-mail blasts' instead of 'personal e-mail offers'?

"The answer, in part, is laziness.  Sure, it takes a bit more time to craft, test and send targeted e-mail offers.  But continuing to blast users with unwanted, irrelevant e-mails not only will have little impact on sales, it will turn even loyal customers into detractors.  That's something no company can afford.

"To start targeting e-mails, marketers can take a few simple actions right away.

• "Start collecting information on customers, such as what they buy, what they browse and don't buy, which offers converted them in the past and how frequently they visit your site.  Then use this information to deliver the right offer to the right person at the right time.

• "Set up a few filters that send certain e-mails to different customer segments at predefined intervals and with content specific to their needs.

• "Define triggers that send e-mails when customers take a certain action.  For example, if Jane buys hiking boots on sale, send her an e-mail 12 hours later with an offer for a discount on hiking socks and offer to add them to her order for no extra shipping cost.

• "If a customer doesn't open your e-mails for several weeks, try again with a more targeted offer or even a survey asking what kind of offers she would like to receive.  If that doesn't work, stop contacting her.  Hounding your customers will only make them angry.

• "Use e-mail to reengage the 'droppers.'  If shoppers are dropping off your site at the checkout page, send them an e-mail with an offer for 10 percent off the products they almost bought.  If they are dropping off before they get to the checkout page, send them a targeted offer based on the products they browsed.  And do it fast - within 24 hours is best.

"With a little effort, marketers can save e-mail from the fate of the pop-up.  They just have to do things the old-fashioned way: listen to their customers and give them what they want."

Philippe Suchet is CEO of Kefta, a San Francisco-based firm specializing in customer data collection and online marketing campaigns for a number of clients.  You can learn more about Kefta and its Dynamic Targeting approach by visiting the company website at http://www.kefta.com.    

DM News is a weekly newspaper devoted to direct response, database, and Internet marketing.  You can obtain a free subscription by visiting the DM News website at http://www.dmnews.com.  DM News Online is available on the same website.

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Bank Marketing Research

This week we present what Philip Kotler wrote about word of mouth advertising.

Professor Philip Kotler is likely the most influential marketing professional in America, if not the world, today.  He has achieved the status of a "guru."  And, he's still going strong.  In addition to teaching marketing at Northwestern University, Kotler's a prolific author of both college marketing textbooks and marketing books in general.

While his college marketing textbooks are lengthy tomes filled with lots of small print and interesting graphics, his most recent books on marketing contain less than 200 pages and are quick, easy, yet very informative to read.    

This week we'll continue our coverage of Kotler's 2003 book, Marketing Insights From A to Z:  80 Concepts Every Manager Needs To Know.  In this 187-page book, Kotler revisits the basic concepts of marketing.

In the preface, Kotler tells us he wrote his book with three audiences in mind:

1.      "Managers who have just learned that they need to know something about marketing; you could be a financial vice president, an executive director of a not-for-profit organization, or an entrepreneur about to launch a new product.  You may not even have time to read Marketing for Dummies with its 300 pages.  Instead you want to understand some key concepts and marketing principles presented by an authoritative voice, in a convenient way.

2.      "Managers who may have taken a course on marketing some years ago and have realized things have changed.  You may want to refresh your understanding of marketing's essential concepts and need to know the latest thinking about high-performance marketing.

3.      "Professional marketers who might feel unanchored in the daily chaos of marketing events and want to regain some clarity and recharge their understanding by reading this book."

Word of Mouth

According to Kotler, "No ad or salesperson can convince you about the virtues of a product as persuasively as can a friend, acquaintance, past customer, or independent expert.

"Suppose you are planning to buy a PDA (personal digital assistant) and you have seen all the ads for Palm, HP, and Sony.  You even go to examine them at Circuit City and listen to the salesperson.

"You're still undecided and don't buy.  Then a friend tells you how Palm has changed her life.  That does it.  Or you read a column by an expert who tested and describes each one and recommends Palm.

"Companies would love to trigger word-of-mouth campaigns surrounding their new product launches.  High-tech firms send their new products to well-respected experts and opinion leaders praying for strong editorial endorsements.

"Hollywood hopes for a good Roger Ebert review.

"Marketers advertise their new product's benefits hoping that they would be believed and carried by word of mouth.  But few know how to use experts and their customers to bring in new customers. 

"According to word-of-mouth expert Michael Cafferky:  'Word of mouth . . . marches proudly but quietly onward as its Madison Avenue cousins try in vain to replicate its dramatic results . . . Word of mouth is the brain's low-tech method of sorting through all the high-tech hype that comes to it from the market place.'

"Companies have been turning increasingly to word-of-mouth marketing.  They seek to identify individuals who are early adopters, vocal and curious, and with a large network of acquaintances.  When a company brings its new product to the attention of such influentials, the influentials carry on the rest of the work as 'unpaid salespeople.'

"Some companies hire people to parade their new products in public areas.  Someone might park a new Ferrari at a busy intersection.  A stranger might ask you to take her picture; she hands you a new phone with a built-in camera, leading to an immediate conversation.

"Someone in a bar answers his new videophone, and everyone wants to know more about it. 

"In March 1999, the Blair Witch filmmakers hired 100 college students to distribute missing person flyers in youth culture hubs to promote the film.

"Today we see the rise of 'aggregated buzz' in such forms as Zagat, which collects New York restaurant reviews from diners (not restaurant critics) or epinions, where people voice their opinions of products. 

"Soon consumers will be able to tell the good guys from the bad guys and no longer have to rely on advertising."

Michael E. Cafferky

Michael Cafferky, PhD, is recognized world-wide as a leading expert on word-of-mouth communications.  He's the author of four books on this subject, including Let Your Customers Do The Talking:  301+ Word-of-mouth Marketing Tactics Guaranteed to Boost Profits, published in 1995.

As of October 13, 2006, eleven new and used copies of this 215-page paperback book were available from resellers on www.amazon.com. 

You can learn more about word-of-mouth marketing and Michael Cafferky by visiting his website at http://www.geocities.com/WallStreet/6246/.

Malcolm Gladwell

"Paul Revere's ride is perhaps the most historical example of a word-of-mouth epidemic," wrote Malcolm Gladwell on page 32 of The Tipping Point. 

Anyone interested in learning more about the power of word-of-mouth communications should definitely read Gladwell's 2000 best-seller, The Tipping Point.

On page 7, Gladwell writes, "The Tipping Point is the biography of an idea, and the idea is very simple.  It is that the best way to understand the emergence of fashion trends . . . the transformation of unknown books into best sellers . . . the phenomenon of word of mouth . . . is to view them as epidemics.  Ideas and products and messages and behaviors spread just like viruses do."

In Chapter 2, "The Law of The Few," Gladwell writes about the people who are critical to these social epidemics, like word-of-mouth, and what makes these individuals different from others.  It's in this chapter where Gladwell introduces his readers to the connectors, mavens, and salesmen.

If you haven't already read Gladwell's book, you should immediately add it to your "must read" list.

Martha Barletta

Martha Barletta covers the power of word-of-mouth marketing several times in the first and second editions of her book, Marketing to Women - How to Understand, Reach, and Increase Your Share of the World's Largest Market Segment.

In the introduction of her second edition, under the subhead "What Makes Women a Worthwhile Market?," Barletta writes, "What is worse - and makes this missed opportunity [marketing to women] a devastating sales drain - is the multiplier effect each female consumer sets into motion.  What women buy, women 'sell'; when they're pleased with products and services, they talk about them to others - men and women alike.

"The resulting word of mouth is the most powerful marketing tool you could ask for.  Not only is it free (not a bad benefit for the budget conscious), but it's more credible, effective, and persuasive than any paid marketing tactic.  Every new woman customer you acquire creates a multiplier effect of sales referrals and extra business."

In Chapter 6, "The Spiral Path:  How Women Make Purchase Decisions," Barletta covers word-of-mouth under the subhead, "Referrals:  Sharing the Wealth."

Barletta writes, "Roper ASW has been tracking U.S. consumers' reliance on word of mouth in decision making for the past 25 years, and in that time, it has become an increasingly important factor.

"In 1977, 67 percent of Americans agreed that word of mouth was an important source of information and ideas for them.  By 2003, a staggering 92 percent had come to feel this way.  And according to Frederick F. Reichheld, in the December 2003 Harvard Business Review, in most instances there is a strong correlation between a company's growth rate and the percentage of its customers who are promoters.  [Editor's note:  You can learn more about Reichheld's Net Promoter Score by reading the two Marketing Terminology Made Simple articles in the September 11 and 25, 2006 issues of this newsletter.]

"Not only are women more likely than men to ask for opinions from friends, family, coworkers, and others, but they are also more likely to volunteer both good and bad purchase experiences with this same circle of people.

"Women are a medium unto themselves - I like to call it the word-of-mouth media multiplier.  According to People magazine's research, 79 percent of women have recommended three or more products in the last 12 months; 57 percent have recommended five or more products.

"People magazine reported the following products were most recommended by women (and therefore can benefit the most from serious word of mouth marketing!):