by Byron Sharp
79 Some consumers will become heavier buyers because of the law of buyer moderation, not because the loyalty program changed their behaviour.
80 The data in Table 11.3 comes from our original loyalty program panel data in Australia, plus a replication study in New Zealand. This particular analysis had not been previously published in the academic literature.
81 Professor Philip Kotler was among the many people advocating such investments. He said marketing practice had previously focused too much on acquiring customers and not enough on trying to improve customer retention (Kotler 1992).
82 Some patients of medieval blood-letting doctors survived and returned to health in spite of their doctoring
83 The link to this table provides real examples of the many misspellings of Britney Spears' name that Google's spelling correction system has been developed to deal with.
84 The typical television viewer watches less television than the average viewer (i.e. most of us watch less than the average).This is because television viewing, like brand buying, is skewed: there are a few very heavy viewers (who watch almost everything) and many light viewers.
85 The first Nielsen GPS survey estimated that the average American was (potentially) exposed to 40 outdoor ads a day (MediaWeek, 7 December 2005). Again, this will be a skewed average, with the typical consumer being exposed to fewer than 40 ads per day
86 This term was coined by Nobel Prize-winning economist Herbert A Simon (1957). It is a portmanteau of the two words: satisfaction and suffice.
87 In cybernetics the (technical) term 'satisfice' means a computer decision-making program that explicitly factors in the cost of making a decision. After the 1997 chess game where IBM's 'Deep Blue' beat chess master Garry Kasparov, he remarked that the computer was 'playing like a human after it adopted a satisficing position. Kasparov said that a successful strategy in beating computers was to predict the most rational move, but when computers starting adopting satisficing positions these predictions failed.
88 Yet we have an amazing ability to hear when someone, on the other side of a busy room, mentions our name. Clearly screening out does include some subconscious processing of stimuli. This gives us some clues about how to get around the screening out mechanism.
89 Several of my friends have noted that when visiting Adelaide, Australia, they often purchase and drink iced coffee; yet rarely, if ever, do so when they are in their home countries, even though they could. Being in Adelaide reminds them they like iced coffee, but they forget this the moment they get home. This isn't because Adelaide has much better iced coffee, nor because Adelaide has abundant sunshine, but rather because it is a very popular and prominent drink in Adelaide. There are well-advertised commercial brands that are stocked in every store (sales exceed Coca-Cola), and every cafe prominently offers its own iced coffee. Similarly, I find myself eating burgers whenever I'm in the US, something I rarely do at home though there are burger bars a short walk from my house.
90 And you thought the competitors in a single category were enough.
91 This 'mental availability' section is based on an Ehrenberg-Bass Institute report: Romaniuk and Sharp 2004a. See also (Romaniuk & Sharp, 2004b).
92 In turn, these measures are driven by the practicalities of market research. One reason that brand awareness is synonymous with the brand name cue is that telephone interviewing dominated twentieth century market research. Showing the brand, or its distinctive assets, was difficult over the telephone.
93 Fried peanut butter sandwiches were one of Elvis Presley's favourite foods.
94 In Chapter 10 John Scriven also speculates that price promotions fail to have long-term effects because they don't build or refresh memory structures. This is surprising (purchasing and consumption should help memory structures), but there is growing evidence that points to the difference between advertising and price promotions. This is discussed and explained in Chapter 9 on advertising.
95 This phenomenon appears in the work of Berk Ataman and Professors Mela and van Heerde (2007, 2008, 2010) to model the relative effects marketing mix elements over time. In their examination of many extremely small new grocery brand launches, their statistical modelling finds the effects of distribution gains (in supermarkets) are dominant. However, when they analysed established brands, advertising spend levels turned out to be more important. This highlights a difficulty that marketing mix modelling faces in comparing effects across brands (and regions). Each has different market-based assets, which moderate the sales effects of the marketing mix. And new brands have quite different market-based assets than established ones.
96 I'm indebted to Professor Guenther Mueller-Heumann for pointing out to me that (aside from a few mining companies) all major corporations are built on brands.
97 See http://ries.typepad.com/ries_blog/2007/03/convergence_fin.html.
98 The iPod's success is equally if not more a story of great marketing rather than just great integrated hardware and software. It's undoubtedly a very good competitive product, and well priced, but commentators forget that when it launched it was a high end and therefore expensive MP3 player that could only work with Macintosh computers and could only connect to those newer models that had a firewire port. This was a recipe for small sales, but Apple progressively moved to broaden the appeal of the product (e.g. releasing iTunes for Windows) to match its highly successful sophisticated mass marketing.
99 Another mistaken justification is the myth that two prices allow the brand to tap into two price segments.