CONGRATULATIONS Cedar Rapids / Iowa City Corridor!

Next Generation Consulting Ranks Hotspots for Young Professionals to Live and Work in the U.S.

Next Generation Consulting (NGC) announced its “Next Cities” rankings - the best places to live and work for young professionals - in three population categories. NGC tabulated the rankings after collecting and analyzing 45 measures for all U.S. cities with over 100,000 people.

NGC has studied the residential and relocation patterns of 20-40 years olds since 1998, and has developed a one-of-a-kind indexing system that evaluates a city based on the assets that are important to next gen workers.

According to NGC, the seven indexes of a “Next City” are: Earning, Learning, Vitality, Around Town, After Hours, Cost of Lifestyle, and Social Capital.

The rankings announced today are based on a city’s total score in all seven indexes.

“Simply being the cheapest place to live, or the city with the most jobs is not a long-term workforce strategy,” says NGCs founder, Rebecca Ryan. Although jobs are important, Ryan says, “The next generation is very savvy about choosing where they’ll live. They look carefully at quality of life factors like how much time they’re going to spend in traffic commuting, if they can live near a park or hike-and-bike trail, and whether a city’s downtown stays awake after five.” The Next Cities list ranks cities that are - or have the capacity to be - great places to live and work for the next generation, because they have the best overall score in the seven indexes the next gen values.

Noted economist Richard Florida underscores the large economic dividend paid to cities and regions that are talent magnets, noting in the April 2009 issue of The Atlantic that “The world’s 40 largest mega-regions, which are home to some 18% of the world’s population, produce two-thirds of global economic output and nearly nine in ten new patented innovations.”
NEXT CITIES RANKED BY POPULATION
Mighty Micros - Next Cities with Population of 100,000-200,000
1. Fort Collins, Colorado
2. Charleston, South Carolina
3. Eugene, Oregon
4. Cedar Rapids, Iowa
5. Springfield, Illinois
6. Cary, North Carolina
7. Ann Arbor, Michigan
8. Sioux Falls, South Dakota
9. Pueblo, Colorado
10. Gainesville, Florida
11. Stamford, Connecticut
12. Des Moines, Iowa
13. Spokane, Washington
14. Syracuse, New York
15. Huntsville, Alabama
16. Peoria, Illinois
17. Springfield, Missouri
18. Salt Lake City, Utah
19. Richmond, Virginia
20. Hampton, Virginia

America Revs Up Its Do-It-Yourself Passion

While some marketers may be sick of hearing how the recession has changed the way consumers spend money, those selling do-it-yourself products have cause to rejoice: America's passion for DIY is fierce, with no sign of slowed growth.

Some 67 million Americans now change their own motor oil, 58 million are growing at least some of their food, and 36 million women are coloring their own hair, according to a new report from Packaged Facts, based on Experian Simmons National Consumer Study data. Overall, a whopping 56 percent of American shoppers are dabbling now in some level of DIY.

It's not all about the recession, and Packaged Facts predicts the trend will continue, even once the economy rediscovers its mojo. "The DIY movement is related to aspects of consumer psychology that extend beyond pure economics," it says -- adding that in some segments, demographic factors also play a major role.

For example, while 70 million people prepared their own tax refunds using software this year, it forecasts that through 2013, that number will grow 13 percent, fueled by the eldest Gen Y workers just entering the workforce. And it anticipates that the number of women using at-home hair coloring will increase 10 percent to total 40 million between 2008 and 2013, fueled by increases in multicultural women, who are more likely to experiment with home hair colors.

The number of automotive DIYers is expected to grow even faster, adding 16 percent by 2013. Drivers, eager to keep old cars on the road longer, say they are doing more and more repairs themselves, explaining sales increases at chains like AutoZone. "DIYers in the automotive sector make up 30 percent of the adult population but 40 percent of all adults planning to buy a car in the next six months and 37 percent of those planning to buy a domestic make," the report says.

Predicting growth in home DIY projects is still tricky, based on the weak real-estate market. But the vast majority of homeowners do at least some chores themselves -- only 18 percent rely exclusively on outside professionals to get the work done: The report finds that 101 million adults in 46 million households have been involved in some home improvement project during the past 12 months.

Some, however, are much more hands-on. Extreme DIYers are the single largest segment of the home-improver population-- 64 million people, or 52 percent of home improvers and 29 percent of the adult population; they also tend to be less affluent. Moderate DIYers, however, are more likely to make more than $100,000, and spend more time shopping for their DIY purchases.(Source: Marketing Daily, 06/01/09)

Questions To Ask When Evaluating Online Media

With companies allocating more of their marketing budgets to online media, it's important to know what to look for and ask about when working with new-media companies.

Alignment with your goals, audience, reach: these criteria apply across all media buys. However, other issues are specific to the online world: online metrics, conversion accountability, reputation of Web sites and more.

Below is a list of questions to ask when evaluating online media.

Is the media opportunity aligned with your marketing objectives?
It might seem obvious, but it's worth answering. Is your objective to generate leads? Promote your brand in new markets? Position your company in a leadership role? We know, it's all of the above. But some online media are better suited to gaining and raising brand exposure, others for lead generation. The best offer a combination of each.

What audience will you reach?
Before committing to any online media, ask for a profile of the audience you will reach. For example, with general search engines, the audience is the entire world, because everyone uses them, so funneling out only your specific niche becomes a challenge that you need take into account. On the other hand, there are many effective online media options that focus only on specific industries or target audiences.If you're advertising on a Web site, ask for information about its site traffic, demographic data, the number of visitors per month as well as if they have a third-party audit statement of qualified traffic. Look for growth trends on those sites where you are considering promoting your business.

Which metrics matter?
One of the great advantages of online media (other than the fact that your customers and prospects are online) is its reporting capabilities. Page views, impressions, opens, clicks, click-through rates, conversions -- there are many metrics. In the end, it's the conversions that equal leads, and the impressions that equal brand exposure.

How is lead capture performed?
Online media that offers comprehensive marketing programs and delivers leads to you with full contact information is what you want. If you are using keyword search ads or e-newsletter ads, you're likely driving prospects to a landing page on your Web site where you should have lead-capture mechanisms, such as white paper or Webinar offers. More important than who's responsible for lead capture is to make sure that you have a way to convert visitors and viewers into leads. Plan for this in any online media campaign. If your media program offers a lead conversion capability, you won't have to devote as many resources to landing pages and other lead-capture mechanisms.

How, when and for how long will your message be delivered to your audience?
How your message will be delivered depends more on the type of marketing program you choose, such as e-newsletters, banner ads, online catalogs, and e-mail campaigns. Push marketing, where you proactively reach out to prospects, is done, for example, through e-newsletter sponsorships.

You can also get a high frequency rate if the e-newsletters are issued on a regular basis, keeping you in front of your target audience on a consistent basis. Pull marketing opportunities are when you can connect with customers and prospects when they are actively searching for solutions like yours.

A searchable online catalog or presence in an industrial directory online provides presence 24/7.Ensure that your online marketing program provides a customized fit for your needs. Ask about the ability to choose your target audience, review online metrics, details about conversion accountability, possible campaign timing options, as well as the flexibility to adjust your program options and messaging when necessary.
(source: mediapost.com, Angela Hribar)

Advertise or Die

According to a new Ad-ology Research study, "Advertising's Impact in a Soft Economy," more than 48% of U.S. adults believe that a lack of advertising by a retail store, bank or auto dealership during a recession indicates the business must be struggling. Conversly, a vast majority perceives businesses that continue to advertise as being competitive or committed to doing business.

C. Lee Smith, president and CEO of Ad-ology Research, says "It is critical to advertise in the current economic climate, to maintain long-term positive consumer perception of your brand... advertising... assures consumers of a business' reliability... "

Reaching Moms Through Schools

With more and more scrutiny being focused on advertising that is specifically directed to kids, many marketers are hesitant to even consider a through-school marketing program. What they might not realize, however, is that a through-school marketing program directed to moms (versus kids) is one of the most effective ways to build brand awareness and purchase intent for their products.

Annual spending on consumer goods (food, clothes etc.) for families with school-age kids is expected to reach $143 billion by 2010, according to Packaged Facts. Since moms make most of the purchase decisions for their families, consumer brand marketers must continue to look for new and more meaningful ways to engage the mom audience and make their brand message heard in this overcrowded, noisy marketing environment.

A through-school marketing program cuts through the clutter in the competitive marketing-to-moms space by putting a brand's message directly in front of a key demographic -- moms with school-age kids -- at a time and place when they are especially tuned in to messages and products that speak to their families' unique needs.

Why Through-School Marketing Gets Results

* Precision targeted with no missed hits - While traditional media and marketing options that reach the mom market cast a wide net hitting all segments of moms, through-school marketing directly connects consumer brands to an extremely targeted, captive audience of interested moms with kids ages 5-14.

*Relevant and receptive environment - Moms at school, or engaged in school-related activities, are in "full mommy mode" - specifically focused on their children's well being - making them particularly receptive to brand messages that speak to their challenges as a busy mom and offer solutions that will help them make their families more successful.

* Implied school endorsement and halo effect - When brands sponsor a family-focused school program, moms recognize and appreciate the brand's support of education and their school-family communities - and respond and follow through by patronizing the brands that support their schools.

* Grassroots brand advocacy - Moms attending a school-family event are in an ideal social environment to discuss and promote new products or services with other moms allowing mom-to-mom buzz and word of mouth endorsement to take place naturally.

Tips for Executing a Successful Through-School Marketing Program

Plan Ahead - It's important to know what a typical school's event planning cycle is for the year. Schools make planning decisions months in advance so be sure you allow enough lead time to build momentum and anticipation for your program before it is actually executed. For example, we sign schools up for our Back2School program in the spring before school ends and summer begins. It's critical to get schools signed up to participate in the program in spring so they are ready to execute it come August.

Make it relevant to moms - Make sure your program is relevant to moms in the context of the school environment otherwise you might lose the brand goodwill that you hoped to garner by sponsoring a school program. For example, we set up a through-school sampling program for a client who wanted to distribute detergent samples to moms. Moms were given these samples while attending the Spring Carnival at school, an event where kids are likely to get quite dirty.

Give schools a real reason for doing it - The last thing you want to happen is for your program to come across as blatant marketing with no real benefit to the school. Make sure your offer has value to the school and that your key connection in the school (the person or group who will execute the program) can clearly see how the school and the school families benefit from running your program.

(source: Mediapost.com, John Driscoll, 5/20/09)

The Pew Research Center measured a number of categories for a chart called "Belt-Tightening in Bad Times." Here are a few of their insights:

• 57% bought less expensive brands or went to discount stores
• 28% cut back on alcohol and/or cigarettes
• 24% reduced or cancelled CATV or satellite TV subscriptions
• 22% reduced or cancelled a cell phone plan
• 21% made plans to plant a vegetable garden
• 20% took over yard work / repairs formerly contracted out

In a recent Gallup poll had a few additional interesting trends:

• 32% of people surveyes say that not only have they been spending less over the past few months, it has become their "new normal"
• 27% are saving more and call it the "new normal"
• 9% are saving on a temporary basis

Here is the reality of business marketing moving forward...bells and whistles are out and thrift is in. As you look at your business you may want to pay less attention to the fluff that has worked in the past. Rather, you should focus your marketing efforts on how what you do will produce a savings in some way or last longer.

Why Consumers Are Leaving Certain Restaurants

The annual Leaky Bucket Report from Restaurant Marketing Group confirms that the trickle of customer defections from restaurants could intensify in this recession, and lack of value and poor service would ensure that guests jump ship.

The online study measures the size of a customer "leak" for each of 160 brands, meaning the percentage of recent customers who report they are unlikely to return to a particular eatery.

Arjun Sen, president of Centennial, Colo.-based Restaurant Marketing Group, said the restaurant industry's average leak size is 36 percent, up 7 percent from 2008.

"If I were a restaurateur," Sen said, "I would connect the dots by saying that a 7-percent increase in the industry's overall leak means (the customer) is grading me severely now."

The survey of more than 5,600 consumers aged 18 to 64, conducted in March, showed an 11-percent increase for price and value as a reason for leaks, compared with last year, accounting for 36 percent of all defections. Service rose 10 percent compared with 2008 and now accounts for 23 percent of all leaks. The only cause of leaks that declined was location, which fell 7 percent.

Food quality, at 25 percent, and menus, at 17 percent, remain unchanged from 2008 as reasons for leaks.

"The main leak increases we have are price-value and service," Sen said. "You're seeing location as a reason for leaks going down, so consumers are saying, 'OK, I'll go two miles farther if you treat me better and give me a better deal.'

"In recent years, location had been a bigger deal-breaker because so many consumers lived near many different restaurants, Sen said.

One industry segment faring better than others is Asian, as that sector's 37-percent average leak size is a 1-percent improvement on last year's average. While that is slightly above the entire industry's 36-percent average leak, the Asian category outperforms the industry averages on every individual metric for leaks: price-value, service, location, food, menu, atmosphere and family-friendly.

"As a category, Asian is so fragmented," Sen said. "From Panda Express to P.F. Chang's or beyond, they're each a little different. But all of them have freshness cues everywhere, and all have been born more recently than (many other) brands. As consumers look for more choices, these brands are jumping up more."

Asian concepts also score far better than industry averages on price-value and service. The Asian category average score for price-value was 33 percent, compared with 36 percent for all restaurants, and the category's service score was 18 percent, compared with a 23-percent industry average.

By contrast, the bar and grill sector's 22-percent service score is merely on par with the industry average and accounts for more leaks than service in the Asian, coffee, sweets and treats, and soup and salad segments.

"I would have expected casual dining to have the most advantage in terms of service," Sen said, "because they're offering the most service."

Many casual brands also struggle with value perceptions, especially at lunch, accounting for a 39-percent price-value leak score, Sen said.

"They're doing what's 'price-value-relevant' for dinner," he said. "If we want to use the best deal, Applebee's '2 for $20' deal, it's still not relevant for lunch. It's very tough for them to compete with fast food and fast casual, especially the sub sandwich (category). In three to five years, Subway's $5 footlong and Quiznos' $4 Toasty Torpedo will be seen as a defining moment. (Those deals) move traffic away from both fast food and casual dining."

The one segment whose average leak size remained constant from 2008 was coffee, which held steady at 33 percent. The three chains in the sector -- Caribou Coffee, Seattle's Best and Starbucks -- combined for a mixed performance on the two main causes for leaks this year. The coffee segment had an average score of 18 percent for service, better than the industry average of 23 percent. But the sector's price-value leak score was 49 percent, due largely to Starbucks' score of 67 percent.

"Starbucks has a price-value problem," Sen said. "It was still tolerable last year, because people said, 'You don't have low-price items, but if I want to spend $5, you are the best."However, Sen noted, this year Starbucks and other coffeehouses face credible threats from McDonald's and Dunkin' Donuts, who have upgraded their coffee items. The coffee segment leader has responded with its new value offering, the $3.95 breakfast pairings launched this winter.

"Even with Starbucks' price changes," Sen said, "unless they can move many people to that new $3.95 price point, their biggest problem is still in front of them, because so many people still feel Starbucks' price-value is broken.
"However, "service is still great in coffee," he said. "That's what's holding Starbucks together."
(Source: Nation's Restaurant News, 05/04/09)