Marketing Research Blog

There is no denying the fact that I like to work. But absolutely nothing (with one exception) is more fun than spending time with family. That’s Ginni, Hannah, and me just hanging out at the home of our son, Neil, and daughter-in-law, Brandi.

I met Ginni, the girl of my dreams, in Richmond, Virginia in the ’70s. I talked this Belle of the South into marrying this big dumb Yankee. Shortly before our one child, Neil, was born, we moved to Dayton, OH.  I wish that we’d have been able to have a dozen kids but Ginni always said that “The good Lord gave her exactly as many kids as she could handle.”

Some years later, Ginni was a good sport in moving with me to Louisville KY, then Bloomington-Normal IL, then Minneapolis-St Paul, and finally back to Bloomington-Normal IL. Shortly after 9/11, Neil married Brandi, the girl of his dreams. About three years later, they had Hannah who is between Ginni and me in the picture. Then just over a year ago, Brandi & Neil had twin daughters, Mia Faith & Ava Grace, shortly after Neil had became the lead pastor of his church in Naperville IL.

The girl of my dreams from the ’70s is still the girl of my dreams and even more beautiful than she was then. With the exception of being alone with her, nothing is better than being with family.

As we see business after business fail, it is apparent that a lots of folks have been “asleep at the switch.” It is not just CEOs and other corporate executives but also boards of directors who have failed to rein-in wrong moves by CEOs.

I joined such a company some years ago after the long-term CEO had been dismissed and the outside board of directors had been thoroughly and repeatedly chastised by the state’s insurance commissioner. One would have thought that the board would have learned their lesson but a few years after I had departed, the insurer was once again “flown into the ground” while the board simply watched what was happening. There was no 3rd chance for this insurer; they were acquired by another insurer.

That rings a bell for me. I really get a great deal of satisfaction out of helping corporations profitably grow. Having sent a note, a while back, to a large bank’s chief marketing officer suggesting that I could help them make things happen (grow share), I received a call from one of his assistants saying “Nothing is happening here; the marketing V.P. has gone and the bank’s name has changed.” Clearly those in charge had been asleep at the switch and. sadly enough, this assistant had not yet grasped the reality of what had happened.

I have absolutely no desire to help corporations survive. My goal is to help businesses thrive by growing profitably.  To do this, one must constantly keep abreast of what buyers and potential buyers need and want and provide it. Be apprehensive when corporate executives claim that they know exactly what buyers need–thus it is unnecessary to ask. From my experience, there is only want to know what buyers want; ask them!

 In 1970, Philip Morris’ share of the domestic market was about 14%. Currently, it is around 50%. They did this by consistently having their share of voice greater than their share of market. Not just one year, but year after year. And this was when RJ Reynolds vowed not to be outspent.

But what does that have to do with “Marketing Research and Advertising When the Economy Goes South?” Everything. The sad reality is that many otherwise “bright” folks are prone to cut their advertising (and marketing research) expenses when the economy is soft. The fact of the matter is that a soft market is exactly when advertising (and marketing research) investments should be increased, not reduced.

When Philip Morris set out to outpace their competitors, they viewed increased spending in advertising and marketing research as an investment, not as an expense. And their investment probably had a greater return than even they had expected.

In this challenging economy we find ourselves in as we enter 2009, I’d recommend that  well thought-out advertising and marketing research investments be increased, not decreased. Of course, if you don’t mind giving up share to competitors, let them outspend you as did RJ Reynolds (and other tobacco companies) when Philip Morris starting outspending the competition. When they started their heavy spending, share wise they were (as I recall) a distant 4th to the category leader, RJ Reynolds, who had long held more than 30 share points-now far behind the leader, Philip Morris.