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Q: The Value of Focusing Advertising Dollars ( No Answer,   0 Comments )
Question  
Subject: The Value of Focusing Advertising Dollars
Category: Business and Money > Advertising and Marketing
Asked by: jerryl-ga
List Price: $125.00
Posted: 04 Sep 2004 10:45 PDT
Expires: 04 Oct 2004 10:45 PDT
Question ID: 396827
Need quotes about focusing advertising dollars on heavy users of a product. 
I would like at least 20 quotes.

Request for Question Clarification by czh-ga on 13 Sep 2004 18:04 PDT
Hello jerryl-ga,

In your clarification request on pinkfreud's answer you said, "Yiy
have one good answer. I need 19 more." Which of her 20 resources did
you consider to be the "one good answer"? Thanks.

~ czh ~

Clarification of Question by jerryl-ga on 14 Sep 2004 07:39 PDT
The one good answer was:
The "heavy users" of your product can be thought of as a market
"niche" that you should attempt to dominate. Niche marketing today
means targeting, communicating with, selling, and obtaining feedback
on the heaviest users of your business's products or services.

Business Owner's Toolkit: Niche Marketing
http://www.toolkit.cch.com/text/P03_1035.asp

This is close to what I want.
I am looking for Advertising people making statements about why you
get more bang for your buck by spending your advertising dollars
against the consumers who are in the heart of your demographic
audience.
Answer  
There is no answer at this time.

The following answer was rejected by the asker (they reposted the question).
Subject: Re: The Value of Focusing Advertising Dollars
Answered By: pinkfreud-ga on 04 Sep 2004 13:55 PDT
 
I have gathered 20 quotes on the subject of focusing advertising upon
heavy users. To see the context in which each of these excerpts
appeared, just click the link below each quote.

======================================================================

Whether directed at consumers or at business-to-business customers,
loyalty marketing has become today's reigning oxymoron in the direct
marketing industry. Sophisticated marketers sometimes think the mere
act of throwing marketing dollars at heavy users engenders the brand
loyalty they have or expect. Loyalty, however, is the result of a
successful relationship. By using loyalty as an adjective, we create
the illusion that we can make people loyal. In fact, rewards and other
bribes may result in purchase behavior that is loyal on a superficial
level and highly dependent on incentives. Loyalty programs that
overlook more important issues such as access, delivery or price will
throw the marketing expectations/responsibilities equation out of
whack and lead to consumer rebellion and disloyalty.

Database Buzz: Loyalty and Retention 
http://www.databasebuzz.com/scans/loyalty12498.html

======================================================================

We find that brand-name accessibility is linked with feelings about
the brand for heavy users, and with thoughts about the brand for light
users. In a second, follow-up study, we show that advertising messages
that are feelings based are more likely to enhance brand-name
accessibility for heavy users than messages that are attribute based.

From the Journal of Consumer Psychology: Exploring Differences in
Attitudes Between Light and Heavy Brand Users
http://www.leaonline.com/doi/abs/10.1207/s15327663jcp1401&2_9

======================================================================

A segmentation study might divide your audience into heavy, moderate,
and light users of the site. It may turn out that heavy users access
the site five times more than moderate users and 10 times more than
light users. If you are an advertisement-supported site, this means
that heavy users account for a disproportionate amount of your
revenue.

Therefore, when marketing your site, you'll want to focus on the
characteristics of the heavy users and leverage that knowledge to
advertise to similar individuals. Why? Because people similar to your
heaviest users will probably find the most value in your site and
become heavy users themselves.

WebMonkey: Segmentation Studies 
http://webmonkey.wired.com/webmonkey/99/18/index4a_page5.html?tw=e-business

======================================================================

Giving evidence during the trial, McDonald?s Senior Vice President of
marketing said part of the company's marketing strategy was to target
heavy users to increase their frequency of visits, and he agreed the
company could change people?s eating habits.

McSpotlight: From "The Guardian," UK
http://www.mcspotlight.org/media/press/mcds/guardian200103.html

======================================================================

Mr Green stated that McDonald's didn't propose that people could
sensibly eat the company's food 'as part of a diet composed largely of
that kind of food'.  He said 85-95% of Americans visit McDonald's,
although a quarter of their customers ('heavy users') made 75% of all
visits.  11% of visits were from 'Super Heavy Users', who ate there 4
or more times per week.  Mr Green said their marketing strategy was to
target heavy users to increase their frequency of visits.

Spunk Library: US McLibel Support Campaign
http://www.spunk.org/texts/food/mcdonlds/sp000959.txt

======================================================================

Ray Kroc innately understood that the marketing of his company was as
important as the food it sold. "A child who loves our TV commercials,"
he explained, "and brings her grandparents to a McDonald's gives us
two more customers." McDonald's now runs dozens of radio and
television ads every day in major American markets. The fast-food
industry as a whole spends about $4 billion a year on advertising.

In addition to children, companies today aim many of their ads at
"heavy users" - men between the ages of eighteen and twenty-four, who
often eat fast food three or four times a week. The wry and ironic
Jack in the Box ads featuring Jack, the violent Del Taco ads and the
Carl's Jr. ads with sauce dripping onto a beautiful woman's dress have
been extremely popular within this key demographic group. Companies
are also increasing the size of their portions to attract heavy users.

From Rolling Stone Magazine: Fast-Food Nation
http://www.recrea.f9.co.uk/fastfood1.htm

======================================================================

Plaintiffs' theory the second time around was that McDonald's targeted
advertising toward "heavy users" of its food and that the company's
advertising deceptively represented that its foods were nutritious and
could be part of a healthy lifestyle. In dismissing the complaint a
second time, the district court said the fundamental problem with
plaintiffs' complaint was its failure to link any advertisements to
the injury allegedly suffered by the named plaintiffs.

O'Melveny & Myers LLP: Class Action Alert
http://www.omm.com/webdata/content/publications/client_alert_class_action_2003_09_08.htm

======================================================================

"For us, and for everybody over time, broadband will encourage
consumer usage and will drive more revenue streams," says Mike Kelly,
AOL's chief financial officer...

"There will be an economic benefit for us to have a high-usage folks
move over to the broadband environment," Mr. Kelly says. Eventually,
AOL will target heavy users by showing them ads for the broadband
service when they log onto America Online. Mr. Kelly says the ability
to bring targeted advertising to subscribers is "the beauty of the AOL
service."

From The Wall Street Journal - October 29, 2001
http://www.nct-active.com/art_10_29_01a.htm

======================================================================

Bridgewater, NJ-based Gourmet Essentials, a food marketing specialist,
teamed with Largo, FL-based Cox Target Media's Valpak direct-mail
program in March to test a co-op mailer targeting heavy users of
premium food and wines. Manufacturers can even pinpoint specific
retail locations in mailing areas.

PromoMagazine: Marketing Tools
http://promomagazine.com/mag/marketing_tools_4/

======================================================================

"Typically... direct-to-consumer pharmaceutical marketing is based on
demographics such as gender and age, behaviors such as current
prescription usage, and/or disease progression such as severity of
condition or concomitant conditions. Programs targeting 'heavy users'
or 'heavy sufferers,' for example, are premised on the notion that
these consumers receive (or should receive) more prescriptions than
the average, without regard to the reasons underlying heavy usage, a
consumer?s openness to a DTC message, or the likelihood of the
consumer asking a physician about an advertised drug."

Invivo: Belief-Based Marketing
http://www.rosettamarketing.com/pdf-research_articles/invivo.pdf
 
======================================================================

Myth: Heavy Buyers are the Best Target 
"Heavy users are often price-conscious, deal-prone, and consequently
disloyal to brands they buy."

From: Marketing Myths That Are Killing Business; Kevin Clancy; 1994
McGraw Hill Professional Book Group

MeansBusiness: Sales and Marketing Books
http://www.meansbusiness.com/Sales-and-Marketing-Books/New-Sales-for-New-Marketing.htm

======================================================================

Managers... still need to select a particular segment or segments to
target. If usage rate was the segmenting variable, marketers may face
several possible options. They could opt to target heavy users, since
they are already receptive to the product, or they may choose light
users, in the belief that a good promotion campaign directed at them
could significantly increase their usage rate. Nothing in the
segmentation process itself indicates which of these is the best
decision.

Market Segmentation: A search for the Holy Grail?
http://www.blues.uab.es/home/material/apunts/t022317/pdfs/markseg.pdf

======================================================================

The ?indulgent? concept, or the willingness of consumers to treat or
reward themselves with shrimp, offers the greatest potential for
boosting consumption among moderate and heavy users.

?From a marketing standpoint, we?re looking for something unique so we
can position [shrimp] differently,? says Kennan Burch, brand manager
for Red Lobster, with 680 casual seafood restaurants in the United
States and Canada. ?And the message that kept rising to the top was
that shrimp is fun.?

Seafood Business Newsline: Marketing
http://www.seafoodbusiness.com/archives/6_2004/newsline_marketing.htm

======================================================================

For manufacturers marketing inexpensive and frequently purchased
consumer products, such as packaged foods, it is not the single sale
but repeated sales that is of importance. Assuming marketers have
basic objectives of attracting new customers, maintaining and
increasing levels of repeat purchases from current customers, and
changing occasional customers into their own customers, it is crucial
to know about attitudinal and behavioral characteristics of consumers
who use a product consume heavily and seek out a particular product
every time. In this regard, repeated purchase behavior has been of
major concern for both researchers and practitioners.

Consumer Psychology: Category-based Segmentation Methods
http://www.consumerpsychology.net/insights/pdf/categorysegmethods.pdf

======================================================================

The "heavy users" of your product can be thought of as a market
"niche" that you should attempt to dominate. Niche marketing today
means targeting, communicating with, selling, and obtaining feedback
on the heaviest users of your business's products or services.

Business Owner's Toolkit: Niche Marketing
http://www.toolkit.cch.com/text/P03_1035.asp

======================================================================

Another way to break down a market is by product usage. We have to
understand the usage profile of the consumer.  Categories such as
Current user, Non-user currently, Light user, Heavy user and Purpose
of usage can be helpful in doing this. One thing we have to find out
is if the customer is currently a user of the product.  If they are a
non-user, they may not even be aware of the products or service.  If
we are focusing on current users, they might be light users that we
want to convert to heavy users of our products or services.

If we have very loyal patrons to our restaurant, but they only come
once a month, how can we do marketing promotions to try and get them
to come in more often?  Maybe special promotions can convert them from
being light users to heavy users.

University of New Brunswick: Product Usage
http://www.unb.ca/web/jhsc/TME_courses/tme3113/marketing/m4s1-13.htm

======================================================================

The alcoholic beverage companies claim that they are not trying to
create more or heavier drinkers. They say that they only want people
who already drink to switch to another brand and that they want them
to drink the new brand in moderation. But this industry-wide claim
does not hold up under scrutiny. An editorial in Advertising Age
concluded: "A strange world it is, in which people spending millions
on advertising must do their best to prove that advertising doesn't do
very much!"

About a third of Americans choose not to drink at all, a third drink
moderately, and about a third drink regularly. Ten percent of the
drinking-age population consumes over 60 percent of the alcohol. This
figure corresponds closely to the percentage of alcoholics in society.
If alcoholics were to recover (i.e., to stop drinking entirely), the
alcohol industry's gross revenues would be cut in half.

Recognizing this important marketing fact, alcohol companies
deliberately devise ads designed to appeal to heavy drinkers.
Advertising is usually directed toward promoting loyalty and
increasing usage, and heavy users of any product are the best
customers. The heavy user of alcohol is usually an addict.

Health 20-20: Targets of Alcohol Advertising
http://www.health20-20.org/targets_of_alcohol_advertising.htm

======================================================================

To achieve a strong sales response, the Sunkist business required
support in reaching two important and distinct target groups. Firstly,
the Sunkist message had to be placed to attract the attention of key
produce buyers for the grocery stores. If a predisposition toward the
Sunkist brand were not generated within the trade then all consumer
activity would be for naught. Secondly, we had of course to reach the
targeted consumer group in order to generate the greatest possible
sales response. The advertising budget dictated a tightly defined
target to ensure maximum efficiency in the media buy. PMB and
GlobalScan (a comprehensive consumer survey) were used to define the
consumer target of heavy users, defined simply as 25 to 49-year-old
principal family grocery shoppers with children, with $35,000 plus
household income.

Canadian Advertising Success Stories: Sunkist Oranges
http://www.cassies.ca/caselibrary/winners/Sunkist.pdf

======================================================================

The first and most essential step to marketing a business, large or
small, is to create a marketing plan. Like anything else, planning
will make the difference in whether you reach your full potential or
not. To begin with, the customer must be identified. The profile of
the customer will determine how you communicate and through what
medium. The key is to talk to "heavy users" of your product or
service, find out what they like about your business, and then target
people who would be interested in the same thing.

Women's Exchange: Marketing Your Business 
http://www.womens-exchange.com/articles_4.html

======================================================================

Often usage segmentation is used to try and establish underlying
driving forces from other demographic variables. So if women are more
likely to be heavy users would it be easier to convert more light
users who are female, rather than target their male counterparts. This
focusing of market activity on groups that are similar to heavy users
gives rise to measures such as "uplift" - the improvement possible
over a purely random approach.

Dobney.com: Market Segmentation
http://www.dobney.com/Research/segmentation.htm

======================================================================

My Google search strategy:

Google Web Search: "target OR targeting heavy users" advertising
://www.google.com/search?hl=en&ie=UTF-8&q=%22target+OR+targeting+heavy+users%22+advertising

Google Web Search: "advertising dollars OR budget" "heavy users"
://www.google.com/search?hl=en&ie=UTF-8&q=%22advertising+dollars+OR+budget%22+%22heavy+users%22

Google Web Search: segmentation "heavy users" advertising OR marketing
://www.google.com/search?hl=en&ie=UTF-8&q=segmentation+%22heavy+users%22+advertising+OR+marketing

======================================================================

I hope this is helpful.

Best regards,
pinkfreud

Request for Answer Clarification by jerryl-ga on 05 Sep 2004 04:27 PDT
In the Business Owners Toolkit it has a quote "Most marketers know
that "20 percent of buyers consume 80 percent of product volume." If
you could identify that key 20 percent and find others like them, you
could sell much more product with much less effort.
This is the type of answer I am looking for. I am trying to establish
the fact that advertisers should only advertise on media that are in
the heart of their demographic. An example: Beer companies should only
advertise to Joe Sixpack who  consumes 10 times as much beer as the
average person.
Yiy have one good answer. I need 19 more. It would be good if we had
some quotes from Advertising Agency people as well as Brand Managers
and Owners.

Clarification of Answer by pinkfreud-ga on 05 Sep 2004 11:24 PDT
I'm sorry to have misunderstood your requirements. After additional of
searching, I believe that this project will probably be better suited
to a Researcher who has access to university libraries and other
offline reference sources which are not available to me. Marketing and
advertising textbooks and other business-related academic publications
may be good resources for the kind of material that you need.

You may request a refund (and have your question reposted so that
other Researchers may work on it) by clicking on this link:
    
http://www.answers.google.com/answers/faq.html#refund

Again, I am very sorry that I was not able to find what you require. 

~pinkfreud
Reason this answer was rejected by jerryl-ga:
The answers I received was with one exception was just genearal
knowledge. They were not specific quotes.
I am trying to establish
the fact that advertisers should only advertise on media that are in
the heart of their demographic. An example: Beer companies should only
advertise to Joe Sixpack who  consumes 10 times as much beer as the
average person.I would like quotes from Advertising Agency people as
well as Brand Managers
and Owners talking about the importance of targeting their marketing efforts

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