The claim people buy on price is a myth, and in the latest in a series about consumer psychology Ashton Bishop and Gary Wilkinson look at how retailers can make the most of this.
Consumers don’t make rational decisions based on price and marketers need to stop pretending they do.
There is a common refrain amongst marketers in some categories that consumers buy on price. What nonsense. Price by itself is meaningless, and please slap the next marketer who trots out that excuse for why they are losing in their category.
Amid the media storm around the public broadcaster Michelle Grattan, in this crosspost from the Conversation argues the ABC's critics are on a crusade. Mark Scott has come under fire for his decision to co-publish NSA leaked documents with The Guardian. AAP/Alan PorrittThe ABC and its managing director Mark Scott are caught in a perfect storm.
With a burgeoning number of review sites and astroturfing appearing online, Miki Clarke looks at how brands can make sure genuine reviewers get cut-through in search.
As children we’re told if we don’t have anything nice to say, don’t say anything at all. But in this social media world in which we now live, the opposite seems to apply.
We have witnessed exponential growth in search terms with review suffixes, not only in Australia but in the US and UK as well. This is not surprising in the land of electronics, travel accommodation and restaurants, but it is also happening for online dating sites and even dog food.
It has been a month since the News of the World phone hacking trial started in London and in this cross-posting from The Conversation UK director of undergraduate studies for journalism at Cardiff University John Jewell looks at what has come out so far. When Justice John Saunders opened what has been called the “trial of the century” he told the jury: “In a way, not only are the defendants on trial, but British justice is on trial.”
To say the defendants in the case are prominent in the world of journalism would be an understatement of gigantic proportions.
As more brands look to storytelling and content channels like blogs to get their messages across Lorraine Murphy says they should look to work with bloggers for the best results.
“Sponsorship” suggests whacking a logo on some content (be that an event, a TV show or a blog post) and that’s the extent of the relationship between the owner of the content and the brand in question.
The days of brands badging a logo and call-to-action on a blog post are gone. The space has moved on and successful content now calls for a co-creation approach with bloggers.
Amid the masses of journalism redundancies La Trobe University associate professor Lawrie Zion, looks at the question of what happens to those who take redundancy.
You’ve probably heard the news: the Australian media is experiencing the most serious contraction in its history.
Dear Chris,Our agency recently lost a client or two and I was given the difficult choice of taking a demotion or leaving the agency. I opted for the former but am struggling to adjust to my lesser position. Any tips on how to take the step down gracefully?
For the last year, we've been publishing a weekly tablet app. Mumbrella and Encore content director Tim Burrowes explains why today's will be the last.
The thing about failure is that people don’t usually like talking about it.
Indeed, I’m feeling somewhat rueful writing this.
But having shared the story of our journey with Encore so far, you’re entitled to hear about the bits that don’t work too.
With today's news the Mail Online is set to launch an Australian arm, Alex Hayes looks at what it means for the local media scene.
We could be about to see one of the most exciting periods for Australian journalism there has ever been. But, first, I have one question for you. How much is your house worth?
With a string of Aussie TV formats being remade overseas, Brooke Hemphill finds out how local production companies can get in on the act and whether there’s actually any money to be made in a feature that first appeared in Encore.
When Joe Connor and Renegade Films began shopping the concept for a quirky TV series about a talking dog around Australian networks, they were met with blank stares. Based on a short made for the Tropfest film competition titled Wilfred, the idea failed to generate much support. Connor says: “Everyone said it would never be anything more than a short film.”
With Netflix tipped to launch in Australia in 2014, Professor David Marshall from Deakin University looks at what this might mean for the Australian TV market and consumers.
Australians rejoice: Netflix is rethinking its avoidance of Australia, according to media reports, and could launch here as soon as next year.
What is native advertising? In a feature that first appeared in Encore, Miranda Ward cuts through the confusion to nail down a definition for the latest trend taking online by storm.
When online publisher The Sound Alliance hired what it claimed to be “Australia’s first native advertising editor” in September this year, it marked a turning point for an emerging form of advertising that still baffles many in the industry.
In his monthly Encore column, STW's Chris Savage answers your career and agency questions. Hi Chris,I recently jumped ship and joined a rival agency and it’s fair to say my reputation precedes me. I suppose you could say I made a name for myself as a hard taskmaster but I’ve done a lot of work in recent years to soften my approach. How can I get my new team to see I’m not the bastard they think I am?
Yesterday UM boss Mat Baxter said the media industry should stop apologising for long hours. Mumbrella's Tim Burrowes agrees.
Back in the day, in my first weeks working on a small daily newspaper, I was given a story to chase. A local family had had some sort of lottery win, and I was to have a chat to them.
Despite all sorts of efforts, I couldn't reach them, but found out they were appearing on breakfast television the next morning. So I set my alarm for 5.30am, rang the switchboard of the TV show and got put through to the makeup room, where they were happy to chat.
The next few years will see clients look to aggressively leverage the big data wave that is washing over all areas of business says Chris Walton, who argues the changes will see some prosper, others disappear and new data savvy entrants arrive in the market.
Plain and simple
The best pieces of marketing make a case so well, it feels like there can be no further argument.
Like this piece for Cancer Research UK making the case for plain packaging for cigarettes.
Take a bow clever ad company working for Cancer Research UK. I don’t think I’ve seen something as effective since the Grim Reaper.
Brendan
28 May 12
10:29 am
This is bullsh!t, I don’t smoke, I don’t like people smoking, but give a bunch of middle-upperclass kids some packages and they will say that!! It’s the lower class who has trouble with smoking. Their parents smoke and it’s so normal to them. Changing the outside isnt what’s going to change whats inside… Ever heard of the saying lipstick on a pig??? It’s just a big fat waste of time and money. There are fundamental flaws with our society regarding cigarets. And making the pack they come in a simple colour will not fix those problems.
B
28 May 12
11:02 am
Just compelling.
PA
28 May 12
12:07 pm
It’s clever. Perhaps it appeals to us as middle-upper class individuals, but smoking isn’t simply limited to the ‘lower class’. It’s prolific and if this change in packaging, and supporting ad campaign, can make a difference by reducing some of that dependancy, then it’s a good thing.
For this ad to work, you need to first be displaying the cigarettes to kids, which is already unlawful in the only Plain Pack jurisditcion.
Additionally, is no one going to point out that Cancer UK gave cigarettes to kids in order to make an ad?
As Nick Naylor says, the anti-smoking lobby want cancer boy to die.
AdGrunt
28 May 12
3:24 pm
Adam Ferrier tweeted this some time ago.
It would have been interesting to do the same exercise with pharmacist-only medicine packaging and the colourful pills. In fact you could put anything in front of them.
When asked to say something about anything, people will say something. Even kids. In fact, especially kids. This is a known flaw of focus groups.
Plain packaging is simply fucking about, avoiding prohibiting it.
But then prohibition doesn’t work terribly well, either.
Price the stuff to the wazoo and tell people it’ll kill you is about as good as it’ll get.
Informed choice means that some will still make a poor choice.
That’s the price for personal liberty I’m afraid – some will accept the risk of killing themselves in the pursuit of their happiness.
Paul
28 May 12
4:26 pm
Here in Australia the tobacco companies launched a multi-million dollar advertising campaign to fight plain packaging.
Proof positive that it’s a VERY effective tactic.
Tony
28 May 12
4:57 pm
After seeing this, how would you sleep at night arguing against plain packaging? Bloody good job AMV BBDO.
Sara B
28 May 12
9:10 pm
You guys have not obviously read the many complaints about this advert and the activities of a once respected research charity – in the UK. … showing cigarette packets to kids. Really?
Had you shown kids packets of condoms they would have said same thing – would the hysterical cry be “condom manufacturers target kids” – of course not.. Classist claptrap.
fibbest
29 May 12
3:01 pm
Condoms do not kill people @Sara B. The more colourful the better if it got peeps to use condoms rather than not…
Ronnie
29 May 12
3:29 pm
To the naysayers,
As you’re reading this article, I’m assuming you either work directly for a marketing company or work for a company that services them. So, with your rationale that the packaging has no effect, could you please explain why you either spend or charge (depending on you aforementioned role) large amounts of money designing it?
Thank you, and good night.
AdGrunt
29 May 12
11:10 pm
Ronnie,
As you said something so ridiculous about packaging, I assume you don’t work in marketing or brand design.
If your assertions had merit, then illicit drugs would have no appeal, as they have no packaging whatsoever.
Yet they do. One for you to ponder tonight.
Sleep tight.
Ronnie
30 May 12
2:57 pm
Adgrunt,
I noticed that you failed to address the question I posed.
However, if you want to compare the marketing strategies of illicit drugs with legally marketed products, so be it. Once again, I’ll use your rationale.
I can’t exactly recall ever seeing an ad selling the virtues of heroin, or a bus-side telling you where you can get a good deal on some. Therefore, using your own logic, advertising in these mediums must be an entire waste of time. Hmmm.
AdGrunt
30 May 12
5:59 pm
Ronnie,
I didn’t answer your question as the fallacy you propose is what is comprehended in Marketing – broadly in lesson 1 or 2. That’s what marked you out as having little grasp of the overall concepts of marketing, influence, etc.
You’re also not very good at parsing “rationales” or logic – I was suggesting that perhaps advertising isn’t some amazing mesmer machine. That there is some rational and emotional thought and filtering process occurring in the viewer. Otherwise every anti-smoking ad that has run for 30 years would have stopped smoking in its tracks.
Do you mindlessly go out and buy nappies because you’ve seen an ad for them?
So, some homework for you.
Read this lot http://tiny.cc/lm23ew (it’s a link to Mumbrella) – it should cover most questions.
Do come back and ask any questions it doesn’t answer. Which should be very few.
Don’t let the bed bugs bite.
paul the freelance writer
31 May 12
3:42 pm
Yeah, I started smoking at age ten because I loved my father’s Viscount pack design. It was all red and gold with a seductive burred silver paper liner that you pulled out to see the fags.
No, I fucking didn’t. And what’s more, in those days I actually bought his cigarettes for him. He’d give me fifty cents to go around the shop and get him a packet of Viscount and a box of matches while he listened to the races on 3UZ in his workshop. Why? Because it wasn’t illegal for one, and for two he didn’t jump to the stupid conclusion that just because I’d seen/handled a box of cigarettes I’d immediately want to start smoking the things.
The premise of the commercial is completely wrong. Children take up smoking because their peers do it, or their parents disapprove, or they are just contrary little bastards. Plain packaging won’t stop any of that and neither will anti-smoking lobby commercials with cute imagery and no logic.
What a result! Produced, directed and heavily edited (not suggesting scripted) footage endorsing that packaging and branding works! Hope every packaging and branding agency includes this video in their value proposition.
One question before I go… Why do so many take illicit drugs? Do they also come with a royal crest?
Ronnie
4 Jun 12
9:45 am
I don’t think anyone is suggesting that packaging design is the sole influence in any purchase decision, but whether you like to acknowledge it or not, it is one of the influencers.
AdGrunt
4 Jun 12
12:09 pm
Ronnie,
You didn’t read that thread, did you.
In order for it to influence you, you’d need an established need or desire in the first place. Brand is about a choice.
Do you really believe people start smoking because they see a pretty packet?
The evidence from Canada cited by even the Cancer Council suggested that price and education are the strongest influences. Or just ban it.
Dont’ be lulled by the belief that doing anything, is doing something. Sometimes it’s just rearranging deckchairs on the Titanic.
Peter
12 Jun 12
3:29 pm
Any of this ‘evidence’ to ban fancy packaging for filthy tobacco is worthwhile.
The twits who oppose attempts to get rid of tobacco are just that — twits.
Surely they must be aware of the dishonest and devious tactics of big toboacco?? or are they just showing how they too have been conned?
The claim people buy on price is a myth, and in the latest in a series about consumer psychology Ashton Bishop and Gary Wilkinson look at how retailers can make the most of this.
Consumers don’t make rational decisions based on price and marketers need to stop pretending they do.
There is a common refrain amongst marketers in some categories that consumers buy on price. What nonsense. Price by itself is meaningless, and please slap the next marketer who trots out that excuse for why they are losing in their category.
Amid the media storm around the public broadcaster Michelle Grattan, in this crosspost from the Conversation argues the ABC's critics are on a crusade.
With a burgeoning number of review sites and astroturfing appearing online, Miki Clarke looks at how brands can make sure genuine reviewers get cut-through in search.
As children we’re told if we don’t have anything nice to say, don’t say anything at all. But in this social media world in which we now live, the opposite seems to apply.
We have witnessed exponential growth in search terms with review suffixes, not only in Australia but in the US and UK as well. This is not surprising in the land of electronics, travel accommodation and restaurants, but it is also happening for online dating sites and even dog food.
It has been a month since the News of the World phone hacking trial started in London and in this cross-posting from The Conversation UK director of undergraduate studies for journalism at Cardiff University John Jewell looks at what has come out so far.
When Justice John Saunders opened what has been called the “trial of the century” he told the jury: “In a way, not only are the defendants on trial, but British justice is on trial.”
To say the defendants in the case are prominent in the world of journalism would be an understatement of gigantic proportions.
As more brands look to storytelling and content channels like blogs to get their messages across Lorraine Murphy says they should look to work with bloggers for the best results. “Sponsorship” suggests whacking a logo on some content (be that an event, a TV show or a blog post) and that’s the extent of the relationship between the owner of the content and the brand in question. The days of brands badging a logo and call-to-action on a blog post are gone. The space has moved on and successful content now calls for a co-creation approach with bloggers.
Amid the masses of journalism redundancies La Trobe University associate professor Lawrie Zion, looks at the question of what happens to those who take redundancy.
You’ve probably heard the news: the Australian media is experiencing the most serious contraction in its history.
Dear Chris,
Our agency recently lost a client or two and I was given the difficult choice of taking a demotion or leaving the agency. I opted for the former but am struggling to adjust to my lesser position. Any tips on how to take the step down gracefully?
For the last year, we've been publishing a weekly tablet app. Mumbrella and Encore content director Tim Burrowes explains why today's will be the last.
The thing about failure is that people don’t usually like talking about it.
Indeed, I’m feeling somewhat rueful writing this.
But having shared the story of our journey with Encore so far, you’re entitled to hear about the bits that don’t work too.
With a string of Aussie TV formats being remade overseas, Brooke Hemphill finds out how local production companies can get in on the act and whether there’s actually any money to be made in a feature that first appeared in Encore.
When Joe Connor and Renegade Films began shopping the concept for a quirky TV series about a talking dog around Australian networks, they were met with blank stares. Based on a short made for the Tropfest film competition titled Wilfred, the idea failed to generate much support. Connor says: “Everyone said it would never be anything more than a short film.”
With Netflix tipped to launch in Australia in 2014, Professor David Marshall from Deakin University looks at what this might mean for the Australian TV market and consumers.
Australians rejoice: Netflix is rethinking its avoidance of Australia, according to media reports, and could launch here as soon as next year.
What is native advertising? In a feature that first appeared in Encore, Miranda Ward cuts through the confusion to nail down a definition for the latest trend taking online by storm.
When online publisher The Sound Alliance hired what it claimed to be “Australia’s first native advertising editor” in September this year, it marked a turning point for an emerging form of advertising that still baffles many in the industry.
The next few years will see clients look to aggressively leverage the big data wave that is washing over all areas of business says Chris Walton, who argues the changes will see some prosper, others disappear and new data savvy entrants arrive in the market.
Latest Jobs
Comments
28 May 12
10:11 am
As you say ‘Case Closed’
Can’t wait for the tobacco companies to lose their case against the government.
28 May 12
10:25 am
wonderful
28 May 12
10:26 am
Take a bow clever ad company working for Cancer Research UK. I don’t think I’ve seen something as effective since the Grim Reaper.
28 May 12
10:29 am
This is bullsh!t, I don’t smoke, I don’t like people smoking, but give a bunch of middle-upperclass kids some packages and they will say that!! It’s the lower class who has trouble with smoking. Their parents smoke and it’s so normal to them. Changing the outside isnt what’s going to change whats inside… Ever heard of the saying lipstick on a pig??? It’s just a big fat waste of time and money. There are fundamental flaws with our society regarding cigarets. And making the pack they come in a simple colour will not fix those problems.
28 May 12
11:02 am
Just compelling.
28 May 12
12:07 pm
It’s clever. Perhaps it appeals to us as middle-upper class individuals, but smoking isn’t simply limited to the ‘lower class’. It’s prolific and if this change in packaging, and supporting ad campaign, can make a difference by reducing some of that dependancy, then it’s a good thing.
28 May 12
1:48 pm
Brilliant
28 May 12
1:51 pm
For this ad to work, you need to first be displaying the cigarettes to kids, which is already unlawful in the only Plain Pack jurisditcion.
Additionally, is no one going to point out that Cancer UK gave cigarettes to kids in order to make an ad?
As Nick Naylor says, the anti-smoking lobby want cancer boy to die.
28 May 12
3:24 pm
Adam Ferrier tweeted this some time ago.
It would have been interesting to do the same exercise with pharmacist-only medicine packaging and the colourful pills. In fact you could put anything in front of them.
When asked to say something about anything, people will say something. Even kids. In fact, especially kids. This is a known flaw of focus groups.
Plain packaging is simply fucking about, avoiding prohibiting it.
But then prohibition doesn’t work terribly well, either.
Price the stuff to the wazoo and tell people it’ll kill you is about as good as it’ll get.
Informed choice means that some will still make a poor choice.
That’s the price for personal liberty I’m afraid – some will accept the risk of killing themselves in the pursuit of their happiness.
28 May 12
4:26 pm
Here in Australia the tobacco companies launched a multi-million dollar advertising campaign to fight plain packaging.
Proof positive that it’s a VERY effective tactic.
28 May 12
4:57 pm
After seeing this, how would you sleep at night arguing against plain packaging? Bloody good job AMV BBDO.
28 May 12
9:10 pm
You guys have not obviously read the many complaints about this advert and the activities of a once respected research charity – in the UK. … showing cigarette packets to kids. Really?
Had you shown kids packets of condoms they would have said same thing – would the hysterical cry be “condom manufacturers target kids” – of course not.. Classist claptrap.
29 May 12
3:01 pm
Condoms do not kill people @Sara B. The more colourful the better if it got peeps to use condoms rather than not…
29 May 12
3:29 pm
To the naysayers,
As you’re reading this article, I’m assuming you either work directly for a marketing company or work for a company that services them. So, with your rationale that the packaging has no effect, could you please explain why you either spend or charge (depending on you aforementioned role) large amounts of money designing it?
Thank you, and good night.
29 May 12
11:10 pm
Ronnie,
As you said something so ridiculous about packaging, I assume you don’t work in marketing or brand design.
If your assertions had merit, then illicit drugs would have no appeal, as they have no packaging whatsoever.
Yet they do. One for you to ponder tonight.
Sleep tight.
30 May 12
2:57 pm
Adgrunt,
I noticed that you failed to address the question I posed.
However, if you want to compare the marketing strategies of illicit drugs with legally marketed products, so be it. Once again, I’ll use your rationale.
I can’t exactly recall ever seeing an ad selling the virtues of heroin, or a bus-side telling you where you can get a good deal on some. Therefore, using your own logic, advertising in these mediums must be an entire waste of time. Hmmm.
30 May 12
5:59 pm
Ronnie,
I didn’t answer your question as the fallacy you propose is what is comprehended in Marketing – broadly in lesson 1 or 2. That’s what marked you out as having little grasp of the overall concepts of marketing, influence, etc.
You’re also not very good at parsing “rationales” or logic – I was suggesting that perhaps advertising isn’t some amazing mesmer machine. That there is some rational and emotional thought and filtering process occurring in the viewer. Otherwise every anti-smoking ad that has run for 30 years would have stopped smoking in its tracks.
Do you mindlessly go out and buy nappies because you’ve seen an ad for them?
So, some homework for you.
Read this lot http://tiny.cc/lm23ew (it’s a link to Mumbrella) – it should cover most questions.
Do come back and ask any questions it doesn’t answer. Which should be very few.
Don’t let the bed bugs bite.
31 May 12
3:42 pm
Yeah, I started smoking at age ten because I loved my father’s Viscount pack design. It was all red and gold with a seductive burred silver paper liner that you pulled out to see the fags.
No, I fucking didn’t. And what’s more, in those days I actually bought his cigarettes for him. He’d give me fifty cents to go around the shop and get him a packet of Viscount and a box of matches while he listened to the races on 3UZ in his workshop. Why? Because it wasn’t illegal for one, and for two he didn’t jump to the stupid conclusion that just because I’d seen/handled a box of cigarettes I’d immediately want to start smoking the things.
The premise of the commercial is completely wrong. Children take up smoking because their peers do it, or their parents disapprove, or they are just contrary little bastards. Plain packaging won’t stop any of that and neither will anti-smoking lobby commercials with cute imagery and no logic.
31 May 12
6:36 pm
BTW – This http://bit.ly/myquitbuddy seems a more worthwhile effort than plain packaging.
1 Jun 12
4:34 pm
What a result! Produced, directed and heavily edited (not suggesting scripted) footage endorsing that packaging and branding works! Hope every packaging and branding agency includes this video in their value proposition.
One question before I go… Why do so many take illicit drugs? Do they also come with a royal crest?
4 Jun 12
9:45 am
I don’t think anyone is suggesting that packaging design is the sole influence in any purchase decision, but whether you like to acknowledge it or not, it is one of the influencers.
4 Jun 12
12:09 pm
Ronnie,
You didn’t read that thread, did you.
In order for it to influence you, you’d need an established need or desire in the first place. Brand is about a choice.
Do you really believe people start smoking because they see a pretty packet?
The evidence from Canada cited by even the Cancer Council suggested that price and education are the strongest influences. Or just ban it.
Dont’ be lulled by the belief that doing anything, is doing something. Sometimes it’s just rearranging deckchairs on the Titanic.
12 Jun 12
3:29 pm
Any of this ‘evidence’ to ban fancy packaging for filthy tobacco is worthwhile.
The twits who oppose attempts to get rid of tobacco are just that — twits.
Surely they must be aware of the dishonest and devious tactics of big toboacco?? or are they just showing how they too have been conned?