Toronto, July 8, 2010 – With the Canadian economy making strides in recovery, it would stand to reason that there would be renewed optimism and activity in the business world. But results from the first-ever Marketing Confidence Index, measured in conjunction with the Gauge Report, an annual survey of marketing professionals, have revealed otherwise.

Overall, Canadian marketers measured 45 per cent, a level of confidence that is consistent with the general mood of Canadian marketers, as reflected in the Index. Only a modest percentage (40 per cent) increased their marketing budgets this year, even though 62 per cent said they felt that 2010 was a good year for companies to invest in marketing activity. Most marketers agree that the time is right to catch the upswing in the marketplace, but many are not following up those instincts with action.

“Knowledge drives confidence, and confidence, in turn, drives success,” says Brett Marchand, president and COO of Cossette. “Confident marketers capitalize on emerging trends, leverage metrics and aren’t afraid to adopt a decisive mindset that propels bold action.”

In this era of unprecedented technological advancement, instability in the marketplace and erratic consumer spending habits, the Gauge Report provides a forum for marketing decision makers to share ideas and benchmark industry activity to help foster innovation and steer informed decision making.

The profile of a highly confident marketer emerging from the Gauge Report confirms that confidence is a critical factor is results-oriented business decisions. Those marketers who were characterized as either very confident (9 per cent) or confident (23 per cent) are also decisive and prepared to take actionable steps that lead to success. One of those steps is increasing their marketing budgets, which 64 per cent of marketers indicated they were planning on doing this year, and 84 per cent indicated they had plans to do so in 2011.

“Confidence matters; and that’s why an index that measures it on an on-going basis is so important,” says Jules Diamond, president of IMI International. “The Gauge Marketing Confidence Index allows marketers to benchmark the confidence of their own organizations to help foster effective decision making.”

Lack of confidence, on the other hand, results in missed opportunities to engage with target consumers. For example, most companies understand that social and mobile media are effective ways to tap into a robust client base, but many aren’t clicking in. More than 59 per cent of confident marketers are more apt to incorporate digital media in their overall marketing plans, compared to 30 per cent of non-confident marketers.

Many marketers might instinctively know that now is a good time to invest but concerns over the economy, fragmentation in the media landscape, rapidly evolving technological trends and changing consumer spending behaviour can leave them confused and indecisive.

“If knowledge is power, Canadian marketers now have the resource they need to help them make definitive decisions in spite of uncertainties in the marketplace,” adds Marchand. “And we all know that confidence matters. Not just to the marketing industry, but the entire marketplace.

An initiative of Cossette and IMI International, the Gauge Report is an annual summary of research into areas of current interest to Canadian marketing and business executives. It provides insight to promote dialogue in the  marketing industry with the end goal of delivering programs with market appeal.

About Cossette
Cossette Inc. offers a full range of leading-edge communication services to clients of all sizes, including some of the most prestigious brands in the world. A customer-driven organization built around highly specialized business units, Cossette also offers Convergent Communications(TM), a unique working method that brings added value to the client by integrating various services offered by the Group, including strategic planning and research, advertising, media buying and channel planning, sales promotion, direct response, database and direct marketing, customer relationship management, interactive marketing and technology solutions, public relations, organizational communication and change management, sponsorship and alliance marketing, branding and design, ethnic marketing, business-to-business communications (B2B practices) and print and video production. Cossette has approximately 1,485 employees and offices in Quebec City, Montreal, Toronto, Vancouver, Halifax, New York, Irvine, Los Angeles, London and Shanghai.

About IMI International
IMI International is a full-service marketing consultancy, leveraging consumer marketing research, to optimize all types of brand activations.  For 40 years, IMI International has served as a strategic partner to our Fortune 500 clients, developing best practice principles based on over 10,000 marketing evaluations.  IMI International is globally recognized for its work in the pre- and post-evaluation of consumer marketing efforts and has developed proprietary consumer research methodologies and success thresholds that serve to improve our clients’ return on marketing investment.  Headquartered in Toronto, Canada, IMI International also hosts offices in Phoenix, United States; Melbourne, Australia and London, United Kingdom.

Please contact Tim Bishop with any questions or comments and to receive a complimentary copy of the 2010 Gauge Report.   Phone 416-440-0310 ext 341 or 1-800-784-5757 ext 341 or email at tbishop@consultIMI.com.

Recently on the EMF posts, there has been a lot of reference to a change in consumer buying habits as a result of the economic conditions in recent times.  One such article referenced from Comscore suggests consumers are trading down in price and becoming less loyal to National brands.  Just last week, another EMF post referenced an article from the Globe & Mail suggesting consumers consider short-term reward more strongly than the long-term gains. Thus consumers are irrational, and it has been argued that this emotional context needs to be overlaid to more rational economic models.

These two articles provided impetus to share with the EMF membership what we at IMI International have learned about changes to consumer buying habits from a proprietary study we fielded called “Building Your Brand in Turbulent Times”.  We asked some questions that could be benchmarked versus more “normal” times in 2007, fielded during the ‘dark days’ of  January 2009 and followed up again in early 2010 to see which of these changes have a lasting effect.

First, our study agreed with both the articles referenced above:  

i)        Consumers are indeed trading down to the lowest price more often now than in 2007 (for details, please see the June 2010 EMF/IMI research article in the members section on the EMF site or on IMI International’s Downloads page). 

ii)       What is interesting, however, is the consideration of “short-term reward” in this environment.  Consumers have also increased their consideration for the “best quality”—while this seems inconsistent, consider that there has also been a consistent increase in the attitude that it is “worth spending more time to be a smart shopper”.  

iii)     Another finding reflects a return to the importance of Brand Name products versus price considerations, after a dip in 2009.  

Some other category studies we have done at IMI International (from snack food to autos) lead us to conclude that some of the switching to low priced alternatives may not have turned out so well, and the consumer has learned from this experience.  For bigger purchases, you’ll know this as “buyer’s remorse”. 

One of the key pieces that was missing for me from the previous articles was a big “Now What” – as a marketer or a person working at an agency, what can I do about it?  This thinking is precisely why we added other questions around value, brand benefits and price (essentially, inputs into the value equation) into our Turbulent Times study.  The conclusions we make provide some clear actions steps for EMF members, as price and value are intricately linked.

To summarize action steps for this audience, we would suggest the following: 

i)                    Do your homework to determine your brand’s unique value proposition.  That is – which brand in my portfolio represents high value, which benefits can I highlight to illustrate added value versus my competition (i.e. ‘washes more dishes’ versus ‘soft on hands’…) and,

ii)                   How can I best showcase these benefits to overcome potential purchase barriers? 

While price discounting is a tactic that can be used, and is always a consideration, it tends to erode brand equity (and ROI/margins) over the long term.  Our consistent learning for over 15 years has illustrated the power of Experiential Marketing as an excellent method to convey new benefits or activate new learning areas, whether it is to overcome a shared barrier or perception, showcasing new value benefits or illustrating new ‘reasons to believe’.   

So, it’s time to act. Consumers are still buying. Our shared challenge is to break through the spending concerns that this economic environment has brought to consumers and make them feel good again, as “smart shoppers”.

For more information on the EMF, visit http://www.experientialforum.com/ where you can join to receive regular updates on the latest experiential news, research and insights.  The EMF / IMI International research articles are also available for viewing on IMI International’s Downloads page.

As the headline notes, “if women hold so much buying power, why aren’t marketers doing a better job of communicating to them?  Kristin Laird outlines the key ways companies can meet the needs of female consumers”.

Of course, different consumer segments exist within the female consumer segment, so be sure you’re understanding your specific target fully prior to acting on any macro insights.

Women consumers: a snapshot

• 71% are more concerned with price than fashion or trends
• 60% enjoy sampling different brands of similar products (e.g. soft drinks) for the sake of comparison
• 47% are loyal to environmentally or socially responsible brands
• 58% actively look for products that offer coupon discounts
• 65% will encourage friends or relatives to purchase a product she likes
• 62% think store brand products are just as good as name brand products
• 39% say name brand products are a status symbol
• 58% usually purchase the lowest-priced product

IMI International provided Marketing Magazine a number of current consumer insights pertaining to female consumers, as a result of conducting three different studies earlier this year.  The studies provided these latest insights by looking at the attitudes and behaviours of Canadian women consumers 13 to 64. 

To read the full article, please visit Marketing Magazine or click on the link for IMI International’s Downloads page and find the article under the Media section.

For more information on ConsumerTrack™ Insights pertaining to Female Shoppers, please contact Tim Bishop at 416-440-0310 ext. 341 or by email at tbishop@consultIMI.com.

IMI International’s ConsumerTrack™ Insights Team recently completed its latest study, Brand and Private Label Purchases In A Recovering Economy in both Canada and USA.

This module provides a look into how shoppers are thinking about and buying Branded products and Private Label products in North America, how marketers have utilized these insights to their advantage and what marketing techniques will work the hardest as the economy recovers.

Topics include:

• Identifying the proliferation of private label brands, overall, category-specific and brand-specific,
• Investigating the impact the recession had on private label purchasing and the outlook once the recession comes to an end,
• Understanding why consumers do and do not purchase private label brands,
• Comparing marketing tactics and their effectiveness for name brands vs. private label products,
• Looking at the necessary features that both private labels and name brands must maintain in order for consumers to continue purchasing,
• Identifying current attitudes toward the economy, name brands and private labels and see how they relate to and/or explain current purchasing behaviour, and
• Providing recommendations how to counteract the emergence of private labels as a frequent purchase.

For more information on ConsumerTrack™ Insights, please contact Tim Bishop at 416-440-0310 ext. 341 or by email at tbishop@consultIMI.com.

This Canadian consumer insights module conducted in autumn 2009 looks at a number of topics, including:

• How consumers viewed the recession during 2009
• The effect of the recession on various marketing tactics
• The changing attitudes of consumers and how these can explain the change in marketing tactic effectiveness
• Brand health with 85 brands ranked based on consumer responses
• Brand-specific examples of good and bad tactics used over the last 2 years
• Keys to your marketing success in 2010

This module provides a look into how consumers are thinking, what tactics will work the hardest for you and how brands have utilized these to their advantage.

For more information on ConsumerTrack™ Insights, please contact Tim Bishop at 416-440-0310 ext. 341 or by email at tbishop@consultIMI.com.

This two-day seminar was a must-attend course for managers involved in sponsorship marketing as part of their integrated marketing communications programs. Attendees were exposed to an expert team of leading Canadian sponsorship marketing practitioners.

Jo-Ann McArthur, President of fisheye, spearheaded the two-day session and Dan Hunter, Partner of IMI International, lead a measurement fundamentals seminar entitled “Defining Success:  Measuring Returns of Sponsorship Programs”.  

The course covered the latest sponsorship measurement best practices within an interactive group session including detailed coverage of what needs to be done before, during and after the program to measure ROSMO (Return on Sponsorship Marketing Objectives) and ROI.  Specifically, the main topics covered were:

• IMI International’s Sponsorship Valuation Process
• Delivering Engaged Target Consumers
• Optimizing Sponsorship Impact Via Activation
• Sponsorship Evaluation Methodologies
• IMI International Case Studies:  Event Metrics & Continuity
• Sample Scorecards:  Impact, ROSMO & ROI
• Summary – What To Do Tomorrow 

SMCC is a leader in providing education program for the Canadian sponsorship marketing industry. IMI International is a leading consulting and measurement expert on brand activation, with over 25 years of experience in sponsorship marketing.

Entitled, Maximize Your Sponsorship ROI in These Tough Economic Conditions, Dan’s presentation highlighted that in a tough economy, consumers don’t stop spending. They just spend differently.

Leveraging the latest 2009 research, Dan outlined how the economic slowdown has impacted consumers’ habits and their approach to the marketplace. Most importantly, he discussed how sponsors and properties can use that insight to leverage maximum value from their partnerships.

Now more than ever, it is imperative to give consumers a compelling reason to engage with brands and properties and the best way to do this, based on IMI International’s latest Consumer Economic Impact Study – Turbulent Times II, is to leverage sponsorships to Activate, Demonstrate and Engage consumers to focus on your brand’s inherent value proposition.

Over 4,000 curious shopper marketing industry experts packed the 2009 In-Store Marketing Expo from October 6 to 8 at Navy Pier in downtown Chicago.  To complement the large in-store trade component of the conference, IMI International was once again asked to lead a focused learning session on the very latest insights on Shopper Marketing from a consumer perspective.  

The conference topic was focused on the “The Last Three Feet” retail environment:  Its aim was to educate brands, retailers and suppliers on the importance of in-store marketing activations.  Dan Hunter, Partner at IMI International, provided recent consumer insights for session attendees based on a broader perspective focused on driving shoppers “From their Living Rooms to Store Center Aisles”.  

Leveraging IMI International’s marketing database of initiatives and the IMI International Consumer Track™ shopper insights learning module, the session provided a holistic view of the purchase cycle.  From online search and product browsing to influence to in-store purchases, Dan led an hour-long presentation that outlined the areas where shoppers were looking to be intercepted with branded messaging that would later drive in-store purchase.  

Most importantly, Dan provided insights on driving maximum impact ‘cost effectively’ thus maximizing customer lifetime value of shoppers.   

Attendees also discovered: 

• The change to focus messaging on a brand’s “inherent value proposition” due to the economic downturn
• The best ways to engage consumers outside of the retail environment by product category,
• The perspective on “how” customers shop, not just “why” they buy.
• Non-traditional shopping insights including online, retail activations, digital signage, experiential interaction and mobile marketing, plus
• How to drive ongoing loyalty touch-points, including, web, mobile and CRM/loyalty programs and Word-of-Mouth. 

To learn more insights from the presentation, please visit IMI International’s Downloads page.

Speaking to one of the largest groups to recently assemble for the bi-monthly meetings, Dan led the session to showcase how Canadian consumers have changed in these turbulent times. 

Of note, Dan highlighted the changes in consumers’ receptiveness of brand activation tactics and of sponsorship & events in particular to show how marketers can still influence shoppers to open their hearts and wallets.  Consumers are not going out and spending as much as in the past, and this trend may impact sponsorship events into the near term future. 

Now more than ever, it is imperative to give consumers a compelling reason to engage with brands and properties and the best way to do this, based on IMI International’s latest Consumer Economic Impact Study – Turbulent Times II, is to leverage sponsorships to Activate, Demonstrate and Engage consumers to focus on your brand’s inherent value proposition.

To learn more insights from the presentation, please visit IMI International’s Downloads page.