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November/December 2007 Key Findings Newsletter - Marketing/Planning

Virtual Worlds for Marketing Research

By the end of 2011, 80% of Internet users (and Fortune 500 companies) will be involved in a virtual world, according to Gartner, Inc. A virtual world is a computer-based simulated environment intended for its users to inhabit and interact via their characters, called avatars. Users guide the avatars through the virtual world, interacting with other avatars in activities such as talking, playing games and shopping. Marketers are now using some of these virtual places to test new products and gather market research as indicated in the following chart.

Americans' Political Knowledge

Very few Americans would do well on a test of political knowledge, per Pew Research Center for the People & the Press. For example, only 69% can name the U.S. Vice President, down from 74% in 1989. A similar percentage could name their state's own governor - 66% in 2007 versus 74% in 1989. Almost all Americans (94%) follow the news. On average, they get news from 4.6 sources. Those with a high knowledge (50%) tend to use at least seven sources. The chart below shows that audience members of some news programs and services (after controlling for demographic and political factors) are more likely than audience members of other news programs and services, to have high political knowledge.

Americans Disapprove of Certain Activities

Downloading unauthorized music from the Internet is not as bad as shoplifting, according to most Americans. The following chart shows other activities of which Americans disapprove.

Advertising to Young Americans

Most young Americans age 14-24 (87%) say advertisements they see on TV are memorable, compared to 15% who think Internet banner ads are memorable and 12% who say newspaper or magazine ads are memorable. More than one-half (53%) think some TV ads are better than actual TV programs. The chart below describes the ads this age group likes to watch.



Ad Spending in Gay and Lesbian Media

Advertising spending in gay and lesbian print media jumped 5.2% in 2006 to reach $223.3 million. One-half (49.0%) of the ads portrayed or addressed gay and lesbian consumers, which is down slightly from 2005, but represents a four-fold increase since 2002.

Circulation for these print media companies reached 3,777,488 in 2006, up 10.4% from 2005. Product categories with the biggest increase of ads in gay and lesbian print media during 2006 were long distance/cellular (up 76.5%), beer (up 58.5%), and travel destinations (up 47.6%). The major decreases were in TV/cable (down 73.1%), gay magazines (down 76.6%), and gay Internet sites (down 73.1%).



Consumers Watching TV Online

About 16% of US Internet households watch TV broadcasts online, according to The Conference Board and TNS. The chart below describes which types of programs/shows are watched in this manner. Consumers claim they do so because it is convenient and helps them avoid commercials. An analysis of TV and online video viewing habits concludes that the Internet's primetime block occurs between 5 p.m. and 8 p.m. on weekdays. This dovetails into TV's primetime schedule of 8 p.m. to 11 p.m., offering marketers an opportunity to adapt their strategies and messages accordingly.

Managing Health Through Technology

One in four patients (39%) prefer a doctor who uses technology to manage their care, compared with 30% who prefer their doctor rely on traditional methods. Some 36% say that technology has improved how they manage and maintain their health; the chart below shows which patient activities have been affected.

Health Insurance Costs

During the first half of 2007, the cost of health insurance in the U.S. rose an average of 6.1%, almost twice as fast as the 3.7% increase in wages. Premiums for family coverage have jumped by 78% since 2001, while wages have only increased 19%.

On average, workers contribute $273 a month towards their family health coverage packages, up from $248 last year. These continual and dramatic increases in costs help explain why only 60% of US firms currently offer health benefits, down by nine percentage points since 2000. A recent survey by the US Census Bureau showed that 47 million people had no health insurance in the United States last year, up from 44.8 million in 2005.

Obesity Levels Increase

During 2006, Mississippi became the first state in which at least 30% of its population was considered obese (30.6%). Obesity levels increased in 31 states from 2005 to 2006 - with no state posting a decline. Colorado, the least obese state at 17.6%, increased from 16.9% in the prior year. Some 41 states now have obesity levels over 20%.

Countrywide, nearly 119 million adults (65% of the population) are currently overweight or obese. The direct and indirect costs of obesity are more than $117 billion per year.

While there are some exceptions, the states with the highest poverty levels have the highest proportion of obese residents. The following chart provides details.

Business to Business Ad Spending

BtoB Magazine reported that US business-to-business advertising spending reached $14.39 billion in 2006, up 1.4% from $14.19 billion in the prior year. When it comes to Internet advertising, online display ads made up nearly 10% of b-to-b ad spending at $1.4 billion. This reflects a 17% increase from 2005 levels.

A review of only the top 100 b-to-b advertisers shows they increased expenditures at twice the overall rate: spending $6.76 billion in 2006, up 3% from the prior year.

Corporate Blogging

About six in 10 corporations (61%) now have blogs, with 6% boasting five or more. Most companies (63%) began blogging because they sensed pressure to participate in this new medium, while the other 37% say they started in order to fill a specific need such as communicating with their clients. Whatever the impetus for starting, 84% of corporate blogs target their customers and potential customers.

The blog entries are posted by CEOs (63%), executives (49%) and marketing personnel (47%), with assurances that 94% of entries are written by the person whose name is attached to the post.

Most companies (76%) say they have had an increase in website traffic since beginning their blogs. Some 86% feel that blogging will be more important in 2008 than it has been in 2007.

Crisis Management Plans

About 53% of marketing executives responding to a recent survey by BtoB and Eric Mower and Associates, said they have experienced a business crisis that resulted in negative news coverage, declining sales or reduced profitability. About the same number (57%) reported that their company does not have a crisis response plan currently in place.

Of the 43% of companies that have developed a plan, 10% worry about their ability to carry it out, and only one-half have trained spokespersons ready.

Some 23% of respondents who went through a crisis said it took three months to a year for their brand to fully recover, while 13.3% said recovery took more than two years and 17.7% said they have not yet recovered after two years.

Causes for these companies' crises vary. A majority of survey respondents (55.7%) said layoffs, shutdowns or business foreclosures created the crisis. Some 45.2% blamed operational or services failures, 33% cited legal or ethical problems and 32.2% pointed to a competitive attack, such as negative word-of-mouth or messaging by others who have a vested interest in damaging the company.

Bullets

  • Hispanics (52%) are more likely than Blacks (49%) and much more likely than Whites (35%) to say it's important to volunteer time to make a difference in their community.
  • The most common types of negative comments that teachers hear students make are sexist (40%) and homophobic (33%).
  • Some 26% of Baby Boomers started their own business because they were financially unable to retire.
  • The average American drinks 30.3 gallons of beer per year, up from 30.0 gallons in 2005.
  • Some 65% of Americans drink alcohol. Forty percent choose beer as their preferred beverage, compared to 34% who like wine and 22% who choose hard liquor.
  • While most people age 14-24 use technology regularly, only 20% of them consider themselves "technology lovers." Top activities for this age range are listening to music (70%), watching TV (65%), hanging out with friends (65%), and spending time online (56%). Almost one-half (47%) instant message each other about what's on TV at that moment. More than one-half learn about new bands on TV (55%) and the radio (55%), compared to 36% who find them from Internet research.
  • The average age of motorcycle buyers increased from 33.1 years in 1990, to 40.2 years in 2003. There was only a 0.8% increase in the number of motorcycles purchased in 2006 compared to the prior year. This indicated a slow down since the number purchased had risen 8.0% in 2005 and 6.2% in 2004.
  • Americans with portable devices allowing them Internet access say they have checked e-mail in bed (59%), from the bathroom (53%), while driving (37%), and while in church (12%).
  • Women (16%) are more likely than men (13%) to say they are addicted to e-mail.
  • In 2006, two-thirds of Americans (64%) said they had less respect for professional athletes than they did 10 years earlier.
  • The proportion of Americans who do volunteer work decreased in 2006 for the first time since September 11, 2001. The percentage decreased to 26.7% in 2006 from 28.8% in 2005.
  • More than 76% of Americans think that the media is at least somewhat biased in its reporting. They say that FOX News (39.6%) and CNN (18.3%) are more biased than other news networks.
  • Some 70.7% of Americans believe that politicians don't have people's best interests at heart.
  • Americans say they could live without gym/exercise (38%), chocolate (28%), entertainment media (iPod, magazines, TV) (19%) and meat (15%).
  • Ten years after graduating from college, women do not earn more than men in any occupation. Women in architecture and engineering earn 95% as much as men; in computer science they earn 94%; in medical or legal professions they get 67%; and in business and management careers they receive 69%.
  • One-quarter of Americans (25.8%) live alone.
  • There are 900 outdoor cafes in New York City, up 50% from 2002.
  • About 1% of Americans click on Internet advertisements, and do this approximately once per month.
  • When consumers are unsuccessful in an online search, 13% switch to a different search engine, down from 27% in 2002.
  • Women make up just over 50% of the US population, but make over 80% of the consumer purchasing decisions (consumer spending accounts for two-thirds of the U.S. GNP). Women also own 40% of all stocks.
  • Seven in 10 moms use search engines to research online purchases, 57% use search engines to research offline purchases. Some 89% of moms use the Internet at least twice a day, and 90% have been using it for more than seven years.
  • One-half of young adults age 18 to 34 get information about new products/services via word of mouth (from family or friends), compared with 39% of those 55 to 64, and 30% of those 65 and older.
  • Almost one-quarter of people (22%) say they will do more online shopping to save gas due to rising prices.
  • Today, more consumers say that TV (36%), compared to the Internet (33%), is the most essential medium to them. In 2002, 39% named TV while 20% chose the Internet.
  • Online shoppers age 18 to 24 (48%) are more likely than average shoppers (39%) to choose a debit card as their preferred payment method.
  • "American Idol" is the TV show most commonly discussed at work. Some 37% of workers say they talk about it, up from 35% in 2006.
  • The average teen or tween earns about $30 per week with about 43% going towards fashion items.
  • As of July 2007, there are 1,124 city or county ordinances in the U.S. that ban smoking in public places. This is up from 30 in 1999.
  • People are 57% more likely to become obese if a friend is obese, 40% more if a sibling is obese, and 37% more if their spouse is obese.
  • One in seven companies (14%) provides paid paternity leave to soon-to-be fathers.
  • Almost one-half of patients (45%) want the ability to e-mail their doctors with questions, but only 11% of doctors offer this service.
  • Some 15% of Americans have used an in-store health clinic, and another 41% say they would use one if one was nearby.
  • Almost seven in 10 U.S. hospitals (69%) have implemented electronic health records.
  • Children start to make their own choices about health and wellness products at age 10.
  • About 80% of physicians say they consider patients' out-of-pocket costs when prescribing medicines. Some 40% consider costs when recommending diagnostic tests and 51% consider it when suggesting hospitalization for treatment when an outpatient procedure is an option.
  • Men are more likely to choose their mother (50%) than their father (35%) as their parenting role model.
  • Almost one-half of motorcyclists who died in an accident (47%) in 2005 were age 40 or older.
  • About nine million devices, such as cell phones and GPS systems, were connected to cellular networks in North America in 2006. This number is expected to reach 66 million by 2011.
  • The majority of men (55%) and women (77%) business executives are less willing to take a job that requires heavy business travel than they were five years ago. Men (48%) and women (67%) are also more likely to negotiate for less travel with a new job.
  • Some 71% of CEOs say they have done business with someone they met during a golf game; 21% say they never turn off their cell phones when playing.
  • Almost one-half of executives (48%) say their administrative assistant is very important to their success; only 13% say their assistant is somewhat or very unimportant to their success.
  • The average person gets 21 spam e-mail messages per day. It takes 16 seconds per message to identify and delete those e-mails, down from 30 seconds in 2004.
  • Some 11% of large companies and 16% of small companies offer employees paid sabbaticals. Another 29% of large companies and 21% of small companies offer unpaid sabbaticals.
  • Most professionals (86%) read and respond to e-mail messages during meetings, even though only 37% of executives think this is appropriate behavior.
  • If U.S. companies continue building massive data centers in the numbers expected, the country will need about a dozen new power plants by 2011 just to keep the data flowing, according to the Environmental Protection Agency.
  • Two-thirds of Americans who would like to start their own business (66%) say they would choose Oprah as their business partner over Donald Trump.
 

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