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July/August 2007 Key Findings Newsletter - Marketing/Planning

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Top Search Terms

According to Hitwise, the most popular search term in 2006 was "MySpace," accounting for an average of 0.63% of all online searches. The other top terms are listed in the charts below. Search terms indicate what is top of mind for Internet users.

Americans Trust Fellow Citizens

Americans think that, given an opportunity to take advantage, most people would treat them fairly (59%) rather than take advantage of them (31%). More people also say that others try to be helpful (57%) as opposed to just looking out for themselves (35%).

Overall, 35% of Americans are "high-level trusting." Another 22% are "mid-level trusting" and 38% are "low-level trusting." The chart below provides characteristics for these levels of trust.

Young People are Unhappy

The majority (57%) of 16-34 year olds are unhappy "with the way things are now," per a global survey by MTV Networks. In America, 71% say they are unhappy.

Of the 16 countries surveyed, the industrialized countries (examples include 8% in Japan are happy; 21% in Great Britain; 22% in Germany) have far fewer happy 16-34 year olds than do unindustrialized countries (examples include 75% in Argentina are happy; 71% in Mexico; and 62% in Indonesia).

Over one-half of 16-34 year olds report being stressed out. They are most concerned with getting a good job (61%) and figuring out what they want to do (59%). Smaller percentages are concerned about their image - 36% worry about their popularity and 28% are concerned with owning the right brands. To cope with stress, most (65%) say they listen to music.

Behavior of Online Shoppers

When an online shopper can't find what he/she wants online, about one-half check for the out-of-stock item at another site. Some 56% check back later for replenished stock, or sign up to be e-mailed when the item becomes available. The chart below details other shopper behaviors in this situation.



Viral Marketing for B-to-B and B-to-C

Business-to-business and business-to-consumer marketers find value in viral marketing while diverging on which tactics they find most effective. In a recent survey, business-to-consumer companies were more likely to consider blog mentions and posting to sites such as MySpace or YouTube to be good resources for generating attention for their viral campaigns. Business-to-business marketers were more interested in getting their viral campaigns mentioned in an online publication or business print publication.



Top Customer Loyalty Brands

Avis tops the 2006 list of brands to which customers are most loyal. This list, prepared by Brand Keys, measures customer loyalty by first determining the brands of choice in a variety of categories and then asking how the brands meet or exceed expectations. The full list for 2006 and rankings during the prior year are in the following chart.

Problems With Health Insurance System

A study by the National Opinion Research Center shows that four out of five Americans (80%) say the health insurance system has lots of problems and needs improvement. People making less than $25,000 a year (72%) and Hispanics (70%) are less likely than average to say so. However, the college-educated population (84%) is more likely than average to say there are problems.

A large majority (87%) say that everyone should pay the same amount for health insurance regardless of their health status or age. On the other hand, 60% think people who smoke should pay higher premiums, 29% say obese people should pay more, and 12% want people with a history of heart disease to pay more.

Almost three-quarters (72%) believe the US government should subsidize health insurance to be sure it is affordable for both workers and employers.

Healthcare Event Marketing

Event marketing (marketing that takes place at meetings and events) makes up 24% of the average healthcare company's marketing budget.

A recent survey of healthcare businesses by George P. Johnson Co. shows that just 17% of marketers say that event marketing delivers the highest return on investment, placing it behind sales promotions (18%), but ahead of direct mail (14%), public relations (14%), and print advertising (12%).

Further, 12% of healthcare marketing executives see it as a "lead" marketing tactic, while 36% regard it as a "vital component" of a marketing plan.

Other findings show that 73% of healthcare marketers say they conduct event measurement. The most popular tools are on-site surveys (29%), sales reports (25%), post-event surveys (24%), traffic counts (20%) and audits (5%). Some 75% of those who expect their budget to increase for next year have completed some form of event measurement, while only 24% of those who do not measure expect a budget increase.

Healthcare Advertising: Helping or Hindering?

Health care advertising has grown quickly since the mid 1990s when the Federal Drug Administration changed its restrictions on ads. In 1996, drug companies spent $800 million on advertisements for medications; by 2005 that figure had reached $4.1 billion. A February 2007 issue of Consumer Reports states that 78% of 335 primary care physicians polled said their patients have requested specific drugs that they saw advertised on TV, and 67% of physicians said that they sometimes prescribe those medications.

Not only are pharmaceutical companies' ads working, some health systems are carrying out marketing campaigns advertising the advantages of CT scans for cancer screening which have patients calling their health plans to see if these services are covered.

Even though consumers respond to such advertising, many question its validity. For example, 61% of Americans believe the FDA does only a "fair" or a "poor" job ensuring that direct-to-consumer advertising for prescription drugs provides complete and accurate information about the risks and benefits of the medications. Also, over one-half of Americans believe that direct-to-consumer advertising for new prescription drugs should be banned for some period of time when a new drug is introduced so that physicians have time to become familiar with the medication. A survey conducted by MedPanel shows that 80% of physicians favor a ban on direct-to-consumer advertising for new drug therapies.

Trade Show Analysis

A 2007 study by Catalyst Exhibits shows that 82% of respondents view sales leads as an important factor in deciding to exhibit at trade shows, with 81% citing building brand identity and awareness. However, only 48% actually count sales. Trade shows make up the largest part (23.6%) of respondents' overall marketing communications budget. However, almost 60% of the companies surveyed admitted to spending less than 20% of their time developing and implementing trade show strategy. Other findings in this survey included:

  • Three out of four respondents exhibit at trade shows, with an average of 18 shows per year.
  • 74% of respondents plan to exhibit at the same number or more shows this year compared with last.
  • 57% indicated they would be interested in supporting an industry wide initiative to audit and publish attendance data on key trade shows and events.
  • 18% of the trade show budget is spent on booth services, while only 10% is spent on customer-facing marketing opportunities, such as sponsorships or hosted events.

Employees Satisfied With Bosses

Most employees (52%) are satisfied with their bosses, while 28% are unhappy with the job their bosses do. Some 58% of workers say their managers are good at reviewing their job concerns, but only 45% think their managers are willing to help them gain new job skills. Six in 10 say they trust their managers; 21% don't.

Fewer than one-half (45%) think their corporation's leader is doing a good job, but 40% think they are untrustworthy.

Online Social Communities

While 56% of marketers say they are members of online social communities, only 38% are members of business-related networks online, according to a study from InfoWorld. The survey also shows that the majority of executives (69%) feel social media networks are not important, while 31% indicated they are "somewhat to extremely important." Some 24% of respondents said that advertisements are "somewhat to extremely important," while most (76%) said they are "less important to unimportant."

Family Friendly Policies Good For Business

Family friendly policies can be good for business. For example, a recent study of 100 US businesses that found that paid parental leave resulted in a 2.5 percent increase in profits. Another study concluded that employees participating in one company's work-life programs were 45 percent more likely to say they'd "go the extra mile" for their employers than their colleagues who weren't in the program. Work-life programs are designed to create more flexible, responsive work environments supportive of employees' commitments to their families and communities.

Companies are finding that giving employees more flexibility results in improved motivation, making workers more productive and ends up cutting costs by reducing employee turnover.

Bullets

  • Today, 40% of people under age 25 are minorities. For those under age 10, 45% are minorities.
  • Some 64% of US Internet gamblers are women.
  • African American women (50%) are more likely than their white counterparts (29%) to want to start their own businesses. Some 52% of African American women believe they must be doing work they enjoy in order to be successful, compared to 43% of white women.
  • There were only 13 US billionaires in 1985, while today the number stands at over 1,000. During 2005, some 227,000 Americans became millionaires, with a total of 8.9 million today. One survey showed that the wealth of all US millionaires was $30 trillion, more than the Gross Domestic Products (GDPs) of China, Japan, Brazil, Russia and the European Union combined.
  • Tuition and fees at public four-year colleges were 35% higher in 2006 than they were in 2001. The average cost for tuition and food for the 2005-2006 school year was $5,836.
  • Seven in 10 girls age 8-11 (70%) say they are happy with how they look, compared to 54% of girls age 12-14.
  • Overall, the number of people using credit cards remained relatively flat between 2002 and 2006.
  • The average radio station airs 9.42 minutes of advertising per hour. The amount of advertising varies by format, with news/talk at the top of the range (11.91 minutes per hour) and classical music at the bottom (6.81 minutes).
  • The number of curbside recycling programs rose from one in 1985 to more than 9,000 in 2005.
  • The number of international travelers to the US has dropped 17% since 2001, and the US share of the world travel market has declined 36% since 1992.
  • There are almost 400 Indian casinos in the US, up 29% from 2000. Their revenue more than doubled between 2000 and 2005 to reach $22.6 billion.
  • A Gallup poll shows that 30% of Americans age 22-29 admit they aren't good at managing their money. More than one-quarter (27%) are living somewhat or well beyond their means. Three in 10 (29%) have put off further schooling because of debt.
  • About two-thirds of American households have at least one pet, compared to one-third that have at least one child at home.
  • In 1980, there were 48 beer breweries in America, compared to 1,500 today.
  • During 2006, 25% of men and 13% of women played poker. Some 78% say they did it to spend time with friends and family, 29% played on the Internet for fun, 27% played in a casino or tournament, and 10% said they played on the Internet for money.
  • Some 80% of women age 25-29 use online banking.
  • Teen spending will rise 3.5% annually from $79.7 billion in 2006 to $91.1 billion in 2011. Family spending on teens during the same period will grow 7% from $110 billion in 2006 to $117.6 billion in 2011. These spending increases are expected despite an estimated 3% decline in the 12-to-17-year-old population by 2011.
  • Some 20% of advertisements in 2005 featured celebrities, compared to 10% ten years earlier.
  • Practically every American woman (97%) uses at least one beauty product each day. On average, she uses 7.4 products daily from 4.4 brands.
  • According to an Esquire magazine survey, American men age 25+ would rather be short, boring and rich (58%) than tall, charismatic and impoverished (42%). Some 85% would rather be the CEO of a Fortune 500 company than the next American Idol (15%).
  • Consumers are more likely to click on links in e-mails that include lifestyle photography (6.3%) than those without it (5.4%). They also are 45% more likely to click on an offer that has a dollar amount discount than one with a percentage discount.
  • Almost one in three consumers (29%) says s/he would buy items from a social networking site if they were available.
  • Currently 73% of American adults believe in God, down from 79% in 2003. African Americans are most likely to believe (71%) followed by Hispanics (61%) and Whites (57%).
  • During 2006, almost one in three persons 13-65 years (29%) voted using their cell phone in a mobile marketing campaign (such as those for American Idol), up from 8% in 2005.
  • Seven in 10 couples (70%) cook together at least occasionally. Of those who always cook together, some 39% say they are in excellent health, while only 15% of those who rarely or never cook together say so.
  • One-third of Americans (32%) are cremated when they die, up from 15% in 1988.
  • One-third of those who eat breakfast (33%) do so in their car; 30% of people eat lunch on the road.
  • Almost all Americans (97%) think that schools should provide gardens and hands-on gardening activities for students.
  • Some 70% of people with Alzheimer's disease live at home and are cared for by family or friends.
  • If given the choice, 35% of women would remain 21-30 years old forever; 29% would stay 31-40 years old, 14% would choose 41-50 years old, and 9% would prefer to be 51 or older.
  • Patients 65+ are more likely to remember to take their medication when they have to pop it out of a blister pack (95%) than if taking it out of a pill bottle (61%).
  • Almost two-thirds of Asian Americans (62.8%) say that American food makes up less than 40% of their diets. Filipinos and Japanese eat the highest percentage of American foods: 22% of Filipinos and 16% of Japanese report that their diets are 60-80% American food.
  • Four in 10 Americans age 0 to 65 get prescription antibiotics from their doctors without first being examined in person.
  • Nearly two-thirds of Americans (63%) support the trans fat ban passed in New York City, and 70% say that food served in restaurants contributes to serious health problems.
  • Between 1995 and 2005, the number of boating accidents in the US dropped 38% to 4,969.
  • American consumers have eaten 3% more seafood each year for the past five years.
  • While eating disorders are thought of as primarily affecting women, men account for 25% of anorexia and bulimia cases, and 36% of binge eaters.
  • According to the Sleep Council, fewer than one-half of American adults (43%) are getting good quality sleep, and 10% are getting poor quality. Sleep quality affects an individual's moods. The majority who get seven or more hours on average (57%) say their mood is excellent, compared to the 45% of those who get six hours or less.
  • More than one-third of online Americans (36%) used an instant messaging service on a daily basis in 2006, the same number as in 2005.
  • Ten years ago, only 50% of women business owners were satisfied with their experiences seeking credit; that figure is now over 70%.
  • Some 85% of women on corporate boards have recommended other women candidates for their boards, however only 54% say that at least one of the women they recommended has been elected to the board. Seven out of 10 women board members (69%) have personally mentored another professional woman to help her attain a board seat.
  • Immigrants founded 25.3% of American technology and engineering companies from 1995 to 2005, per a study by Duke University and University of California Berkley. The largest percentage of these founders came from India (26%), which is more than United Kingdom, China, Taiwan and Japan combined.
  • Six in 10 executives (61%) say that workers who telecommute are less likely to be promoted in their careers, however 48% would consider taking a job that required telecommuting on a regular basis.
  • Corporate podcasts are downloaded mostly between 11 a.m. and 1 p.m., indicating that they're used over lunch. Entertainment and educational podcast downloads are highest at 4 p.m., likely for use on the commute home.
  • The Department of Education estimates that the cost of universal after-school programs would be between $5 and $10 billion annually. A study of a comparable program in North Carolina found that freeing up parents to work added $590 million dollars to that state's economy.
  • A 2007 survey of business-to-business marketers shows they are increasingly using Web 2.0 technologies in campaigns, with 31% having initiated pilot campaigns, 28% using them on an ad hoc basis, and another 42% rolling them out to their teams, divisions or entire organizations. Characterized by greater levels of user participation and interaction, Web 2.0 advances include items such as blogs, RSS feeds, podcasts and Ajax-driven Web sites.
  • Some 40% of organizations do not monitor their databases for suspicious activity or don't know if such monitoring occurs. "Trusted" insiders' ability to compromise critical data is the most serious concern, with 57% say there is inadequate protection against malicious insiders; 55% express concern about "data loss" by internal entities.
 

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