Budweiser Light Mediocre
Al Ries thinks brand extensions are confusing, at best, and usually cannibalize sales of the main brand.
How to Calculate Lifetime Customer Value, Part 2 of 2
Unless you know how much money your average customer will spend with you, this year, next year, and over her lifetime, how will you know what you can afford to acquire that customer?
How to Make Money by Losing Money – Part 1 of 2
Would you buy a dollar for 50 cents? OK, that one was easy. If you could hand me 50 cents, and get a dollar back every time, you'd push as many fifty cent pieces in my direction as I'd be willing to accept. What about for 99 cents? Would you be as excited about that...
Free Coffee and the Incremental Discount Coupon Tactic
As I headed out the door the Lovely Mrs. McKay handed me a coupon from the new C store in our neighborhood, saying “You've got to stop for gas anyway. Here's a coffee for the road.” The coupon offered a “free coffee beverage” from, oh, let's call 'em “Comfort Brothers...
Grocery Shopping, Rising Tides, and Maintaining Market Share
Presented for your consideration two very similar conversations. The first never happened. (Well, technically, I did call a few friends and irritate them with the opening question). The second most assuredly did. Conversation #1: Q: I think I need to cook. What should...
Reticular Activation – How the Human Anatomy Prevents Ads from Reaching "Everyone."
One of the things guaranteed to make copywriters (and to a lesser extent media salespeople) groan is an advertiser who claims he needs to reach "everybody." No ad can possibly reach everybody. The human anatomy prevents it. If you have a minute, I shall happily...
Testing Advertising Response in the Store
Since 1892 when the English Court of Appeals ruled on Carlill v Carbolic Smoke Ball Company, companies are legally allowed to make claims they can't substantiate. The court ruled that reasonable people don't believe exaggerated promises by advertisers. The legal term...
Conduct Only One Advertising Test at a Time.
The only Chevrolet dealer in Smallburg,Texas, augments his local newspaper ads with a schedule on a regional radio station licensed to the adjacent community, Midville. He's been selling an average of 18-20 cars per month. At the end of his first month with the new...
Are You Testing Advertising, or Simply Your Offer?
Somewhere in America a rookie cable TV sales representative is talking to the owner of a men's clothing store. The rookie could have been working in newspaper, or outdoor, or radio. The retailer could have sold sewing notions, or computers, or farm supplies. The the...
How Can We Test Advertising?
Transcript of actual conversation: Potential Client : Tell me the truth. How important is advertising in this economy? Chuck: It's critical. When there is a lot of money in circulation it's not difficult for most businesses to attract their fair share of it....