Capitalizing on Trends in Convergence Marketing

Published in the November 2008 issue of Nutrition Industry Executive

Well, it appears as if this marvel called the Internet is here to stay. And so far it has proven itself to be a viable, adaptable and valuable component of most successful marketing campaigns. Aside from being a unique selling resource, it also serves as a branding tool, an information tool, an entertainment tool and even a PR tool. The Internet has single-handedly collapsed the traditional hierarchy between the sender and the receiver of the marketing message. It has changed the way business does business and the way your customers interact with your business. The Internet may well be the closest the world has ever come to true democracy. And your customers can become active members in shaping your message, your brand and, in some cases, your product or service.

One way to make sense of this new phenomenon is to think of your marketing mix as a buffet meal.  Some customers prefer to pick a variety of items from the buffet, while others may only be interested in meat and potatoes, resulting in much narrower exposure to your media channels. The challenge is to keep the traditional meat and potatoes marketing components strong, while continuing to add in the new menu items. Perhaps a little Social Networking Salad for building customer relationships. A helping of RSS Feed Stuffing for dynamic content. A heaping spoonful of Rich Media Casserole to entertain or educate. And how about some Pod cast Pie for dessert? The greatest part of a buffet is that customers are offered an array of options. Customers can now dish up information however they want, both offline and online — surf a web site, call and talk to a real person, visit a kiosk or click on a mobile phone.  This trend of synergizing online and offline media is called “convergence marketing,” and it is the future of marketing strategy.

Building a strong, loyal community around your brand can enhance your relationship with your customers. In the physical world, people have their groups and clubs. The same is true for the virtual world. There your customers can carry on a “tri-alogue” with your brand and other customers like themselves. Adding targeted and interactive forms of communication like blogs and webinars helps create a unique dynamic between your company, your products and your customers. It basically levels the playing field.

The democratic empowerment that the web provides can be a mixed blessing. It can create some unique challenges for your company’s PR strategy. Where a company’s message could once be safely guarded and controlled, now anyone can hop on the web and give their two cents, whether factual or not. Debunking false information or managing your brand is now just as important in the virtual world as it is in the real world. A convergence PR strategy, combining online and offline strategies, is essential. Format all of your PR materials (articles, press releases, white papers) for both the analog and digital worlds, and augment your media target lists to include blogs and other virtual news and information providers.

Although brand building is very important in market differentiation and fostering customer relationships, integrated marketing isn’t all about holding hands and singing in unison. It always comes down to the bottom line. From a B2B perspective, e-procurement has streamlined supply chain management and the purchasing process. This allows your customer a wider choice of products, an opportunity to “custom fit” a product to their individual needs, or it may empower them to initiate their own price. And it allows your company to cut overhead costs, create a more cost-competitive environment while reaching a larger audience that you might not otherwise reach.

Aside from the cold, hard sell there’s the intangible—your brand. What kind of associations do consumers have with your company?  Every interaction that your customer has with any form of media constitutes a brand experience. But there are some components of the marketing mix that can do more heavy lifting than others. For example, a print ad may not need to say everything about the product. It may be more effective to keep the message simple, provocative and compelling. Pique your audience’s interest and incite them to get more information from your Web site, listen to a pod cast, read a blog, etc. Get them to opt-in to a mobile phone texting database and then use that texting channel to invite them to check out a new product or to send them a special offer. The key is making all of the parts work as a whole from both a messaging and branding point-of-view.

While the Internet has changed the way you and your customers interact, there are some marketing mainstays that should not be thrown out. Context, content, relevance, clarity, consistency and placement still remain important considerations.

  • Context—Information needs to “hit them where they live.” Make sure the medium is best suited to the message that you’re trying to communicate.
  • Content—Give your customer enough information to make an educated purchasing decision.
  • Relevance—The content needs to be something they care about.
  • Clarity—Do your customers walk away with a clear message when they encounter various forms of media?
  • Consistency—A critical attribute for any marketing campaign. Some media can bear the fluctuating weight of less or more information, but the core selling message should be consistent across all media.

When new media channels converge with the old, customer relationships also evolve and ultimately impact the way you market to your customers. Who knows what the next new dish on the marketing mix buffet will be. But whatever it is, it’s bound to change – and, ideally, enhance – the relationship between company and customer. Whether it’s print, broadcast, collateral materials, signage or the web, it’s all about using each piece of media for its communication strengths. With an integrated, consistent message across all channels it can help foster a strong relationship with your customer and, ultimately, better sell your product or service.

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Hilton Will Discuss Market Impact of New Dosage and Delivery Systems with SupplySide West Supplier and Manufacturers

SALT LAKE CITY — Branding expert Jeff Hilton, Integrated Marketing Group partner and co-founder, will discuss the impact of new delivery systems on the nutraceutical and functional food marketplace at the SupplySide West trade show and conference in Las Vegas later this month. Hilton’s education session, “New Dosage Forms Fuel Marketplace Opportunities,” will be held on Friday, October 24 at 8 a.m. in Casanova room #601 in the Venetian and Sands Expo. Continue reading

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Leveraging New Dosage Forms Through Marketing To Be The Focus Of Hilton's Expo East Education Session

Jeff HiltonSALT LAKE CITY — Integrated Marketing Group, a marketing agency servicing a national and international clientele, announced today that its co-founder and partner, Jeff Hilton, will be presenting “New Dosage Forms: A Critical Marketing Tool,” at the Natural Products Expo East in Boston next month. Hilton will discuss the ways innovative delivery systems are driving new marketing approaches within the food, nutraceutical and cosmeceutical marketplace from 10:30 a.m. to 12 p.m. on Thursday, October 16 in Room 251 at the Boston Convention and Exposition Center. Continue reading

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AHD International Selects Integrated Marketing Group To Execute Public Relations Campaign For Its Branded Ingredient Luralean®

SALT LAKE CITY — Integrated Marketing Group (IMG), a marketing and branding agency servicing a national and international clientele, announces a working relationship with AHD International, a distributor of new-to-market nutraceutical and functional food ingredients. IMG is coordinating with the company to create and manage a long-term public relations campaign focusing on AHD’s branded ingredient, LuraLean®. Continue reading

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Integrated Marketing Group To Design Advertising, New Web Site For AIBMR Life Sciences, Inc.

AIBMR adSALT LAKE CITY — Integrated Marketing Group (IMG), a marketing and branding agency servicing a national and international clientele, today announced a working relationship with AIBMR Life Sciences, Inc., a full-service natural and medicinal products research institute. IMG will work with AIBMR to create an advertising campaign and new company Web site. Continue reading

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IMG Goes "All The Way" With Launch Of Provocative Media Campaign For Men's Natural Sexual Health Supplement

SALT LAKE CITY — Integrated Marketing Group (IMG), a marketing and branding agency servicing a national and international clientele, announced today the launch of a new media campaign for LIFE SPAN labs, manufacturer of men’s sexual health supplement, 112 Degrees. This tongue-in-cheek print, outdoor, online, television and radio advertising campaign supporting the 112 Degrees product will run in select key markets and targets the male baby boomer demographic via retro verbiage such as “sexual revolution,” “summer of love” and “mojo.” Most notably, the radio spots utilize a series of bleeps and beeps to censor more bawdy language. Continue reading

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Capitalizing on Opportunities in the LOHAS Marketplace

lo-who

If the acronym LOHAS does not mean anything to you, it should. Because whether you are aware of it or not, this unique and rapidly expanding group of consumers is already having an impact on your business and most likely the sales of your products and services.

LOHAS stands for Lifestyles of Health & Sustainability, and is the acronym for a psychographically defined group of U.S. consumers also called Cultural Creatives. They were first identified by a social researcher named Paul Ray, who isolated this group as he explored the changing cultural values of America during the 1990’s. Since that time, other research groups including the Natural Marketing Institute have validated their unique attitudes, behaviors and buying power. This group is relevant to you because they number some 70 million Americans, representing 35% of the population and a $230 billion market for goods and services.

This unique market segment is difficult to define demographically, but they do tend to be female, mid-40’s, above-average household income and well educated. They are better defined in terms of how they think, shop and consume media. They are very attuned to global issues of peace, fair trade, and a sustainable environment and economy. They dislike materialism and hedonism. They distrust the media. They are attracted to alternative healthcare and natural solutions. They enjoy foreign travel and cultures. They distrust big business and seek to build the power of individuals through spiritual growth and personal development.

In marketing terms, this translates to an important tenet. Cultural Creatives buy with their hearts as well as their heads. It is not enough to convince them…they must also believe in what you are saying and selling. They speak with their checkbooks. They support companies who are making a discernable difference in the world. Not every company will be able to connect with these demanding consumers; but those who do will often have a loyal customer for life.

And they do buy. These are the primary consumers of natural and organic products, eco-travel, holistic and alternative health care, values-based investment services, personal development books and workshops, and anything to do with art or culture.

Cultural Creatives have unique media habits. They watch less TV than other Americans. They listen to more radio. They read magazines specific to their values and interests, and don’t spend much time surfing the Internet.
Cultural Creatives love food. They like to eat out. They enjoy gourmet and ethnic cooking with friends. They like healthy cuisine, but not if it represents self-denial.

Cultural Creatives are technology moderates. They use the Internet as a resource to get information they need, but don’t spend leisure time surfing or chatting. They do use e-mail to communicate with others that share their values.

Cultural Creatives are experiential. They drive the “experience” industry. They prefer to purchase experiences rather than things. Those experiences might include weekend workshops, yoga retreats, eco-tourism and spiritual gatherings.

Cultural Creatives are not “new age” and they resent that label.

So the question arises, how does a manufacturer or supplier sell to this type of consumer? Let me offer seven guidelines to connecting with and influencing this important market segment.

Build Relationships
Cultural Creatives don’t like to be treated like a walking wallet. They want to see the retailers and manufacturers of the goods and services they use as allies in their cause. They will be loyal, long-term brand advocates if treated correctly.

Avoid Manipulative Marketing

The classic selling techniques don’t work with this consumer. They can detect them a mile away and do their best to avoid them. In the same manner, traditional advertising violates their preferred cognitive style, which is whole process stories rather than pre-manufactured snippets of information.

Appeal to Their Values
Cultural Creatives see the world differently than their counterparts. You need to let them know that you are on their side; that you are helping their vision to come true. Any company that talks the values but doesn’t make good on them will be detected and destroyed (figuratively speaking). But the point is to be involved in a good cause, and to be remembered as the company that is doing good.

Make Authenticity Your Middle Name

The Cultural Creatives prefer high integrity to smoke and mirrors. Companies must demonstrate that they are trustworthy and genuine. You must give these customers person-to-person contact whenever possible. Remember that these are the people leading the rebellion against any product that is plastic, fake, faddish or poorly made.

Respect Quality

Cultural Creatives are information junkies. They rarely make impulse purchases. They do their homework, and their lifestyle and values are key considerations when making big-ticket purchases. Successful manufacturers will offer products and services that offer real social, cultural, spiritual and psychological depth.

Tell a Story
Cultural Creatives want to know how you developed your product, the processes and systems it took to make it, and why their lives will be better for buying it. You can even tell them what happens when they’re done with it. These consumers don’t respond to slick marketing. They will respond to real life experiences told well.

Make the Business Transparent

Cultural Creatives want to know who you are and what makes your company tick. They want to see the true personality of your organization. Don’t be afraid to open up. Make your sourcing and manufacturing practices accessible to them. Let your employees tell what it’s like to work for your company. Establish credibility by letting the consumer look in.

The LOHAS market segment is vital and growing and is worth understanding and considering if you haven’t already done so. Hopefully, these ideas will help get you on the road to improved and more persuasive communication with this unique market segment. It may require some re-inventing of your habitual marketing approaches, but that may also translate into both increased sales and market share.

As published in Nutrition Industry Executive

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Hilton Invited To Share Branding Insights With Specialty Retailers At NYC’s Fancy Food Show

SALT LAKE CITY, June 24, 2008 — A recognized leader in natural products branding, Jeff Hilton, partner and co-founder of Integrated Marketing Group (IMG), a marketing agency servicing a national and international clientele, will address the influential specialty retailer and manufacturer audience at the 54th Annual Summer Fancy Food Show this week. Hilton will discuss brand building and positioning in his education session, “Branding Insights for Specialty Retailers,” from 10:30 a.m. to 12 noon on Sunday, June 29 at the Jacob K. Javits Center in New York City. Continue reading

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Branding Insights for Specialty Retailers

In this presentation, created for the influential specialty retailer and manufacturer audience at the 54th Annual Summer Fancy Food Show, Jeff Hilton discusses brand building and positioning. Presented from 10:30 a.m. to 12 noon on Sunday, June 29, 2008 at the Jacob K. Javits Center in New York City. View the presentation.

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Hilton Invited To Speak On Retail Branding Strategies At Inaugural Conference

Co-founder of Integrated Marketing Group Will Address Healthy Foods International Audience

SALT LAKE CITY, June 9, 2008 — Jeff Hilton, partner and co-founder of Integrated Marketing Group (IMG), a marketing agency servicing a national and international clientele, will be discussing brand building and integration techniques with retailers at the premier expo and conference, Healthy Foods International. Hilton’s presentation, “Integration Strategies for Organic and Natural Products,” will take place on Thursday, June 19 at 11:15 a.m. in Ballroom Two of the Dallas Convention Center. Hilton will present alongside other wellness foods experts Rick Moller (Tree of Life), Denis Ring (Bode International) and Bob Vosburgh (Supermarket News). Continue reading

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