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End of demographics targeting
As marketers, we had long talked about demographics being somewhat limited as a mean of targeting. Two 25-32 males with 75 – 100K income in urban markets can still have vastly different buying habits. Perhaps one chooses to spend all his money on dining out while the other chooses to spend all his money on travelling to the country side. And well, apparently neither is spending on tech gadgets, which may have been what a marketer was trying to sell.
So, a few decades ago, marketers came up with the idea of psychographic. We want to target based on how they think and behave. However, traditional media still had a hard time bringing this idea into fruition. We can buy print ad on tech magazines, but really only the REALLY tech-savvy guys would have a subscription to tech magazines. That seems somewhat limited, and doesn’t help to grow the market…
In comes social media and the digital revolution. On digital and social space, it’s far easier to track what conversations you’re having. It’s easier to track what websites you’re going to. It’s easier to track what are you “liking†on Facebook. It’s a whole new world of targeting. As social media advertising is in its infancy, so is the concept of applying psychographic onto the social media space. But the potential is here. So, it’d be exciting to see how we can realize the potential.
This post is inspired by this TEDWomen presentation by Johanna Blakley, the Deputy Director of the Norman Lear Center (a media-focused think tank at the University of Southern California):
Link to presentation on TED.com
Using social media to announce bankruptcy
Social media has became a company’s best tool in disaster management. Â Borders advised their loyal customers via Facebook and Twitter regarding their reorganization the same day it was filed.
Wall Street Journal reported on this pending bankruptcy last week.  So, it isn’t new news to the inside circle.  However, to many Borders consumers, the social media postings are likely to represent breaking news.  Social media is also allowing Borders to continue to communicate with their core consumers as the proceedings evolves.  It also gave Borders an avenue to communicate important information such as store closing.  During such a difficult time, it also gave Borders a way to continue to build good will and retain loyal consumers to the best of its abilities.  A quick glance on Borders twitter stream shows numerous personal replies.  Social media gave Borders the opportunity to continuously engage, and to address (or potentially discover) any consumer concerns.
Social media is now an essential tool for any public relations effort. Â It’s particularly helpful in incidents where events are continuously changing, and you need a way to communicate with your most loyal consumers with the latest and greatest. Â Traditional media cannot be compared with social media in its ability to respond quickly. Â News is on TV three times a day. Â Newspaper comes out once a day. Â Tweets can be posted continuously.
Click here to view a few screenshots of Borders effort.
Groupon fell in love…
Groupon CEO Andrew Mason made one final post on the company blog. It’s the post we’ve been waiting for.
We hate that we offended people, and we’re very sorry that we did – it’s the last thing we wanted.
Many bloggers have weighted in on the controversy, and the social media PR fallout thereafter. One of my favorite posts on this issue is Mack Collier’s. He didn’t take a side on whether he liked the commercial or not. He posted specifically on how one should handle such situations. Because at the end of the day, How you handle the first conversation, leads to the second one.
Groupon CEO Andrew Mason’s decision of airing the commercials was questionable. However, many came to his defense. Lawrence O’Donnell even considers Groupon MVP of the Super Bowl commercial line up. After all, the commercials did bring awareness to the causes, however unsavory it may seem to some. In fact, some would argue that Andrew shouldn’t apologize because the intention was noble. The commercials were charitable in nature!
But it was ultimately how the conversation was handled that caused the even greater stir. Andrew, a day after Super Bowl, posted an explanation of the commercials on the blog. However, the lack of an apology and the comparison to sex-driven commercials further infuriates some users. If Andrew has simply posted the apology at the beginning, the disaster could have been contained.
His mistake lies in his dismissal of his user’s point of view. He basically said we didn’t mean to offend and you shouldn’t be offended. But, well, people were. So, let’s refer to the old mantra: The customer is always right.
So, what’s the lesson? Don’t fall in love with an idea. Listen, and truly listen, to feedback.
It seems appropriate to discuss relationship in a traditional boyfriend / girlfriend sense. When a person falls in love, they don’t see the other person for who they really are. Everything is rosy. Now, that’s what your friends are for. They tell you that you’ve met a great guy. Or, they tell you to get the heck out! But, people who are involved in abusive relationships, despite feedbacks, they don’t get out till it’s way too late.  They couldn’t see clearly.  Emotions were clouding judgement.  So, listen to early feedback, and act accordingly. If it’s good, great! If it’s bad, get out before you’re in too deep and are in even more trouble.
You may fall in love with a book idea. But if no publisher (who’s buying your idea) wants to take on the project, your idea does you very little good.
You may fall in love with a product concept. But if no retailer wants to carry it, your concept does you very little good.
You may fall in love with your resume. But if no one is calling you for an interview, your resume is not doing you any good.
You may fall in love with your commercial idea. But if it’s costing you loyal consumers, your commercial is no good.
Related articles
- Groupon spectacularly did what so many others have done (curiousmarketeer.com)
Jeannie Chan is a Brand Manager for a Fortune 500 consumer goods company. She considers herself a marketer, a traveler, and a foodie. Jeannie lives in NYC. 
