For Existing and New Products, Marketers Discover – Branding Matters
There’s no question that brand familiarity draws consumer attention when a new product or product extension is being rolled out. With more ‘brand-connected consumers’ (BCC) in the marketplace, advertisers of existing brands can use earned media to their advantage. Advertisers who are rolling new brands will have to work a little harder to get enough attention to achieve the sales results they're looking for.
The Nielsen Global Survey of New Product Purchase Sentiment shows that up to 57% of North American consumers will purchase a new product though nearly the same number of people want a product to prove itself before they make the switch. Consumers make their decision based on a number of sources. Word-of-mouth rules (77%) but online searches (67%) and TV ads (59%) make a difference. The online channel appears to be particularly persuasive for food and beverage and hygiene categories (62%). The Nielsen research underscores the importance of not only coming up with and delivering a good product idea but also sustaining the product in the market with a balanced and long-term ad campaign.
A study from JWT/OgilvyAction and EXPO shows this support can also be garnered online by harnessing the power of BCCs. While the vast majority of consumers say they interact digitally in some way with brands, marketers should pay attention to the top 20% — the BCCs who are influencers on their peers. A brand that is rolling out a product can extend reach by engaging with BCCs. Marketers should also know it’s especially important to address any negative comments from BCCs. When brands ignore these comments, as happens in 56% of these cases, 70% of BCCs stop buying.[Sources: Global Consumers, Familiar Brands. Nielsen.com. Jan. 2013. Web. 30 Jan. 2013; Brand-Connected Consumers Make or Break Brands’ Bottom Lines. JWT/OgilvyAction. 16 Jan. 2013. Web. 30 Jan. 2013]