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There is an ongoing argument regarding the effectiveness of Print v. Digital (online) advertisements.  In a recent study done by advertising research firm, Millward Brown and the Centre for Experimental Consumer Psychology atBangorUniversity, print won the competition – print has a better chance of becoming engraved in memory over digital.

 The study observed 20 participants using Magnetic Resource Imagery (MRI) scanning while being shown on-screen and printed on cards.  While the participants interacted with the material, scans assessed how the messages affected the brain.  The following conclusions were made:

 Print leaves a deeper footprint

Because print is tangible it has a bigger sense of time and place than digital, print becomes more meaningful to the viewer.  It was found that there was more activity in the part of the brain responsible for integration of visual and spatial information when viewing the print cards. 

 Print is more emotional

There is more cerebellum activity when viewing print over digital.  The cerebellum is used for processing emotion. 

 More internalization

When viewing print on cards, participants showed more activity in the brains “default network.”  This “default network” is associated with a person’s internal feelings, suggesting the participants were making deeper internal connection, relating it to their own thoughts and feelings.  This results in a deeper connection with print over digital. 

 In conclusion, from marketing research firm Millward Brown, “This research strongly suggests that greater emotional processing is facilitated by the physical material than by the virtual. The ‘real’ experience that the physical media provides means it’s better at becoming part of memory. It generates more emotion, which should help to develop more positive brand associations. The real experience is also internalized, which means the materials have a more personal effect, and therefore should aid motivation.”

 Now we ask you – what wins, print or digital?  What are your thoughts on the use of print and digital?

Social media can be a very powerful medium in your marketing mix – it can also be very harming.  In a recent study by Relevation Research, it was found that excessive social media marketing can be the reason for customers breaking off their relationship with vendors. 

Fifty-two percent of U.S. online consumers over the age of 16 have built an online relationship with retailers/companies/brands by “liking, following, or subscribing.”  It’s an easy (and most of the time) free way for retailers to market their product or service to consumers.  Sometimes though, using this medium to push messages too much can end in a negative result.   

About 1/3 of consumers who use social media to connect with retailers/vendors later cut off ties with these companies/brands down the road.  The leading cause of this? Annoyance.  Relevation Research found the following reasons for consumers to cut ties with a company:

• Excessive communications — receiving too many posts, tweets, texts, or emails from companies/brands/retailers (biggest reason)
• Failure to deliver on a promise of deals
• Failure to engage the consumer or offer value via marketing communications
• Consumers lost interest in the topic or were never interested, yet signed up at a friend’srequest.

The end result of these annoyances – viewing the brand negatively and less shopping/spending.   

The Managing Director of Relevation Research, Nan Martin says, “At present, marketers are too cavalier, and even abusive, with their approach to social media relationships because it’s a powerful tool which can pay off but only if used thoughtfully. It’s that very thin line between courting and annoying. Right now some brands are effectively drawing people in, but then undermining their equity by what happens next with their social media activity.” 

The key point to remember:  watch what you’re doing with your social media and how often you’re doing it.

Are you utilizing social media as part of your marketing campaign?  What strategies are you taking?

View the research results.

 With many businesses cutting back spending resources on marketing and promotional efforts, there is still reason to spend on trade shows.  Trade show spending is expected to reach more than $15 million in 2014, more than that of e-media and print combined.  We took a closer look at why trade shows continue to rise to the top and provided you with the answers on why, as well as some tips for a successful trade show exhibit.

Why Trade Shows:

 1. Trade Shows reinforce/build brand awareness

 For exhibitors, the main purpose is to get your name out there, or reinforce you name.  Trade shows are the perfect medium to build relationships or work on already existing ones.  81% testify that trade shows help attendees become aware of a new product or service

2.  Consumers find it a critical aspect to their buying decisions

 Consumers like to examine a product before purchasing.  Trade shows allow for exhibitors to put their product or service on display, right in front of the consumer. In fact, 91% of trade show attendees say the show impacted their decision because they were shopping in real time.

 In a study conducted by Circle Research, it was found that nearly 60% of a trade show attendees made a major purchase or important deal within three months of the show. 

 3. Convenience factor

Consumers also like the convenience of having multiple vendors under one roof.  85% of decision makers say trade shows save their company time and money by bringing vendors together under one roof.

 4. It’s cost efficient

Although some might argue trade shows can be a little pricey it has been proven to have more of an effect than other marketing efforts.  Trade shows cost 38% less than sales calls. 

 5. Attendees have the power to make buying decisions

Trade Shows break through the clutter that other outlets such as cold calling might not be able to.  In fact, 83% of trade show attendees have some sort of buying power. 

 Tips for a successful Trade Show:

 1.  Engage the Attendees

Think about it, as an exhibitor you aren’t there to just “hang out.”  Your main goal is to engage with potential customers.  Don’t be shy!  You will also need something that will attract attendees to your exhibit over any others.  Eye catching material or product goes a long way.  A crowd at an exhibit is a sure sign of success.

 2. Avoiding loss of customers from overcrowding

In regards to the last statement about a crowded booth being a success, it can also lead to failure.  No attendee wants to have to fight their way to the front to get information.  You have to be able to keep the flow moving.  Come up with a purposeful booth layout to keep attendees moving.  Work on a communication strategy that avoids long lines.  You want to see as many potential customers as possible remember!

 3. Provide attendees with a reason to remember you

One sure way to build brand awareness is to provide the customer with something to take home.  Giveaways that display your company logo or motto go along way.  It allows for the consumer to have your brand right in front of them even after they leave the show as well as they might show their friends/colleagues!

 Tell us your best success story at a recent trade show!  Also, Take our tips along with you to the 2012 PIA Expo: First Impressions!  We are still accepting Exhibitors! For more information on how to exhibit and to register to attend please visit www.piaexpo.com!

The Printing Industries of America just released another economic and financial report this week on the future of the printing industry (free to members, another benefit of membership!).  A Planning Guide for 2012-2013, outlines industry trends and impacts on printing markets, and provides strategies and tactics on how to handle possible difficulties and how to take advantage of opportunities in the year to come.  The full report can be found on PIA’s website, while we have provided you with five tactics and strategies for doing business in this year’s printing industry.

 Evaluate Print and the Economic Cycle

Every industry trends differently with the economic cycle.  The printing industry closely follows the economic cycle, meaning that when the economy improves or declines the printing industry does comparatively the same. Knowing and understanding what position the printing industry is in the economic cycle is important and operational decisions, such as investment, should be adjusted accordingly.   It is important to note that the printing industry generally leads recessions and lags recovery and does best in the (economic) mature recovery stage. 

Know Your Position in Competition and in Life Cycle

Although the printing industry has moved from a mature to a declining stage in the industry life cycle, this may not be true for every segment of the print market.  Every product and process differs in life stage, meaning while some may be maturing or declining, other functions in print may be in the growth stage.  This can be found by examining the relative sales change by sector compared to the total printing shipments.  An example is digital toner and inkjet processes are still in the growth stage where as ancillary services are in the mature stage.  The stage in the life cycle impacts strategic decisions and thus why understanding the life cycle your company is in is important. 

In regards to understanding competitive position, companies can look at the total sales in a print sector compared to the number of firms.  This is how opportunities can be discovered.

Prices, Sales, and Costs

It is general business knowledge that to increase profit is to decrease costs, increase sales, or increase prices.  What we tend to ignore is the importance of pricing power.  Pricing Power is when there is strong demand for a product due to at least one of the following factors: specialization, deep knowledge and understanding of customer needs, diversification, strong branding, well encouraged and rewarded sales team, and demand driven versus cost driven pricing. Pricing Power, although not typical for all firms to have, generally is the leader in cause of profit leadership, (compared to cutting costs and increasing sales). 

Strategy Check and Planning

It is very important to have a strategy for the year and to plan properly.  As we just mentioned, specialization and diversification are two big factors in a companies’ profitability.  Because specialization decreases costs and diversification increases price, it is best to have a plan for achieving both.  It is essential to note that wherever your firm is in the printing spectrum it is important to think about the future.  You may be facing a state of maturation in the printing life cycle and it would benefit to think ahead to the next step: (ie: possible opportunities?)

People and Attitude

While we expect the labor market to be on the rise it is going to be a slow process.  It is a rule of thumb that the economy has to grow at about 5% for a full year for the unemployment rate to drop 1%.  This results in opportunity for employers to hire skilled and qualified workers at a lower wage.  However, don’t let this affect the need to spend time and money on employee education and training.  One last thing: have a positive attitude.  Having a positive can-do outlook and demonstrating this to your management and employees can go a long way during this time of economic difficulty. 

Do you have any advice for approaching 2012 and what’s to come?  Tell us your thoughts!

 Social Media is an incredible and very important medium for businesses to utilize as part of their marketing efforts.  It can be very effective if used correctly, however; there is potential for it to be damaging if used incorrectly.  A recent article entitled, “6 Social Media Threats” written by Visible Technologies shared the biggest threats Facebook, Twitter, YouTube, LinkedIn and other social medias can bring to a business.  We’ve highlighted these threats below: 

 Lack of Social Media Policy 

Not only may your company be using social media for marketing efforts but your employees are most likely using the same sights for personal use.  People tend to put anything and everything online and this can be damaging to your company in many ways, such as image or reputation. Having a social media policy can set the rules and limitations for employees on what is acceptable for social media usage.  This policy can save your company from legal and financial problems by providing guidelines for communicating in the online world. 

 Social Networking Security

It seems that hackers and spammers have discovered everyway possible to gain access to computer systems; social media sites being a very commonly used source.  Irresponsible downloading can lead to very damaging viruses or leaking of valuable company information.  Providing a proper education on the do’s and don’ts of social media sites can lead to a virus/hack free workplace.

 Out of Date Network Security

Proper education of the do’s and don’t of social media sites can only go so far.  Providing your company’s network with up to date protection software is very important in the aid to protection from viruses/hackers.

 Mobile Phone Apps

In a time when smart phones and mobile phone applications are more popular than ever, so is the malware that comes with them.  People store a ton of information in their cell phones and with the increase of malicious applications, his is becoming very dangerous.  With companies providing smart phones for employees, this can end in a damaging result by access to important company info.   In March 2011, Google had to remove 60 applications from its market that were carrying malicious software.

 Lack of Social Media Presence

Have you ever heard the saying “even bad publicity is publicity?”  This relates to the fact that even though your company might not choose to be part of the social media world, it might still have a presence.  Your company is probably being talked about somewhere online already, whether it is good, bad or ugly.   By being involved with social media, a company can manage or defend what is being said about it on the web.  Being able to react or respond to the negative and the good talk online is necessary.  

 Employees

Sometimes even having a social media policy cannot stop employees from writing or posting something online that can leave your company in a negative light.  The best approach to this is to make sure your employees are well rehearsed on the consequences for not following policy and rules while hoping for the best!

 What are your companies doing to prevent damage through social media?  Have you seen any of the above threats in your workplace?  Do you have any advice towards the proper usage of social media?

Businesses and marketers are constantly looking for new ways to attract the consumer eye. We are constantly following new fads and technology, however; whether your mail is read or not can be as simple as the color and graphics choice.  We came across an interesting study on the effects of print on mood and behavior of the consumer.  In April 2010 research company, Leflein Associates developed a study on the causes to mail being opened and read or going simply overlooked.   

The study, with a total of 1,500 US participants, involved the viewing of multiple screens filled with the graphic depictions of 4 envelopes on each screen.  Each envelope had different text, graphics and color on both the front and back of the envelopes.  The study found that these three aspects of print hugely influences the consumer’s behavior to open mail. 

 The study found:

Being creative goes a long way.

-Consumers are 69% more likely to open mail with graphics and color on the front of the envelope than those without. 

-If choosing between a mail piece printed with color graphics or black and white text, the consumer was 2.5 times more likely to open the mail piece with color graphics.

 The back of envelopes doesn’t affect the consumer’s behavior to read mail as much as the front of an envelope.

-57% of the participants mentioned to hardly ever notice what’s on the back, however; the study proved envelopes with color and graphics on the back to go noticed more often than black and white text

Consumers prefer physical mail over digital.

-Catalogs- 66% prefer physical mail over digital

-Bills/Invoices- 61% prefer physical mail over digital

-Financial/Bank Statements- 59% prefer physical mail over digital

 Now we ask you:

What are you doing to catch your consumer’s eye? Are you using color and graphics? What is of the most creative ways you were influenced to open a piece of mail? 

With all of the hype on QR Codes, we thought we would do a little investigating on just how effective this new fore or marketing is. We bring to you the facts based on two studies and encourage your thoughts and comments.

Just what is a QR code?
A QR (Quick Response) Code is a scannable 2D black and white square image that can be found in direct mail, print advertisements, signs, billboards, and even television. All QR Codes can be scanned with a smart phone. They are designed to promote anything a company desires such as a special offer or just to attract web traffic or build brand awareness. They were designed as yet another way to penetrate the market by targeting the 82 million users of smart phones.

In this time of QR Code-mania, we ask if QR Codes are a fad or a form of marketing that will stick around forever?

We bring you data from two studies so that you can make your own decisions on QR Codes.

The following are results from an August 2011 study done by strategic marketing firm, Russell Herder:

• QR Codes although growing in popularity might not be fully understood by the consumer market. A total of 72% of consumers have seen QR Codes around however not all know what they are. Seventy Percent could explain what a QR Code is, the other 30% could not.

• Although there may be lack of complete knowledge of QR Codes there definitely showed to be consistency in the usage of them. Four in five users have scanned a QR Code more than once.

• QR Codes tend to be more popular with Generation X and Y. Those that know and use QR Codes tend to be between the ages of 18-34 and are generally male. They use their smart phone regularly to go online. One in five smart phone users between the ages of 18-24 have scanned a QR Code while one in four smart phone users between the ages of 25-34 have scanned one.
• QR Codes are favored to be used at some point. Of those that own a smart phone and know what a QR Code is, 54% said they will try scanning a QR Code at some point.

Below you can find the results from a June 2011 study by Comscore, a global leader in digital business analytics:

• In the month of June alone, 14 million Americans scanned a QR Code with their mobile device (6.2% of the smart phone owner population)

• Out of 14,452 people, QR Codes on printed magazine or paper was the most scanned (49.4%) and a majority of consumers scan from home (58%)

Now we ask you:

How are you building awareness for QR Codes? How can we make sure QR Codes are valuable? What kind of ROI are you personally seeing with your clients?

With the green and sustainable movement at the forefront of consumers’ minds, printed paper is facing a challenge.  More than ever, print is being seen and portrayed as a negative impact on our environment and a lead role in deforestation.  Due to the abundent misconceptions about print, Printing Industries Assoc. of Southern California has designed an educational campaign to promote the value, truth, and facts about print.  The “Choose Print” campaign breaks down misconceptions of the effects of print on our environment, proving that print is a renewable, recyclable, and sustainable environmental choice! 

Misconception 1:

Print “kills trees” and therefore, printing less and using less paper helps the environment.

Truth:

Paper is a renewable source.  Fifty-Six percent of forested land in the U.S. is privately owned.  Of this privately owned land, most are tree farms. A “Tree farm” is land that consists of trees grown specifically for the use of making paper.  The trees are grown as a crop just like corn or any other produce and once harvested, new trees are planted to start the process over.  Not only is this a sustainable way of producing paper but it gives landowners incentive to renew forests. 

The second truth to this argument is that most printed paper is recycled and used to produce more paper, construction products, and consumer goods. Two-thirds of all fiber used to make paper is derived from recycled paper and residue from sawmill and forest operations. This number is also growing as there are now more locations to recycle printed paper.

 Misconception #2:

Print production causes pollution.

Truth:

There are many new technologies that are reducing the use of chemicals in the production of print.  Examples are: low to no-chemistry plate development, vegetable based inks, and isopropyl-free fountain solutions.  It was found that in 2009, the print and publishing industry only accounted for 0.29% of chemicals released by U.S. Industry.

Misconception #3

Electronic forms of communication are more environmentally friendly than print.

Fact:

We forget to acknowledge that energy usage is a huge role on the environment.  The U.S. relies heavily on the use of electricity, especially now that almost everything is going digital.  The majority of this electricity usage is derived from non-renewable fossil fuels.  According to the United Nations, the pulp and paper industry is the largest user of renewable energy sources based on wood. Sixty-Five percent of the energy in the production of paper in the U.S. is from renewable-energy. 

The Choose Print Campaign provides us with facts and thought provoking concepts to fight the scrutiny of printed paper on our environment.  The truth is print works.  Studies have shown that 80% of families scan or read the printed mail they receive.  It has also been proven that 39% of new customers tried the business based on printed advertisements, and 70% renewed business based on a mail promotion.  Print is a vital part of the communication process whether that be for marketing or general business practices. Visit chooseprint.org and get involved. 

What are your thoughts on the image of print?  What are you doing to fight back against the negative thoughts about print?

The holidays are upon us!  With gift giving and holiday dinners, the holidays can put a damper on the wallet. Don’t worry Printing Industries Credit Union has you covered!  This holiday season PICU is offering low cost solutions to your holiday expenses.  

Going on now and lasting until December 31, 2011 PICU has four great holiday opportunities to take advantage of:

• No fees on MasterCard Balance Transfers for 12 months- APR of 3.99%
• Loans with an APR of 9.99% for 36 months- $32.26 monthly payment per $1,000 borrowed with a max loan amount of $3,000
• Automobile Loans (New and Used) with APR as low as 3.99% for 36 months (rate depending on down payment). 1% lower APR than other current Credit Union rates for up to 72-month term.
• 1% APR lower rate than current Credit Union rates for 72-month long term on personal loans 

Start saving now and fill out PICU’s holiday loan application or click here for more information on PICU’s holiday offers.

The Printing Industries Credit Union is the financial institution for the graphic arts industry. We provide many of the same services that commercial financial institutions do, with one important difference – the Credit Union is owned by our members. As a PIA San Diego member, Printing Industries Credit Union is available to you and your family.

Deposit Services Include:

• Savings Accounts
•  Low-Cost Checking Accounts
•  Convenient ATM’s & Shared Branching
•  Certificates of Deposit
• Individual Retirement Accounts (IRA’s)
• Direct Deposit & Payroll Deduction

Lending Services Include:

•  New & Used Vehicle Loans (purchase or refinance)
• Personal Loans
•  Motorcycle Loans
• Recreational Vehicle Loans
•  Savings Secured Loans
• PICU MasterCard

Convenience

The Credit Union is easily accessible to members any time during the day and night. With over 600 Credit Union Shared Branch Service Centers in the United States, 200,000 ATM’s throughout the 50 states, Canada, Puerto Rico, United Kingdom and the Virgin Islands and 24-hour telephone account access, the Credit Union is always available for your banking needs.
Federally Insured Safety

Printing Industries Credit Union is owned by its members and is federally insured to $100,000 by the National Credit Union Administration (NCUA) a US government agency. IRA accounts are insured separately to another $100,000 by the agency.

Are you already a member of PICU? Are you taking advantage of PICU’s great holiday offers?

As we mentioned in one of our past blog posts, USPS Needs Reform Now For a Better Tomorrow, the USPS is facing hard times that we believe must be resolved by reforming.  It is now well into November and the USPS  is projected to end the year with a loss of $14.1 billion.  The US Postal Service, who is said to “run out of cash or be dangerously close” by September 30, 2012, according to Chief Financial Officer Joseph Corbett, might be exploring the idea of hiring an outside adviser to aid in the reformation process.  Harry Wilson, founder of MAEVA Advisors LLC, explains the hiring of a firm:

 ”The Postal Service faces a difficult challenge and unless they hire the best in the business a restructuring may fall flat. In public sector restructurings, threading the political needle is as important as coming up with a great business solution.”

The USPS, finds themselves unable to make the $5.5 billion payment due Nov. 18 to the U.S. Treasury for future retirees’ health benefits.  This payment is just one small portion of the 2006 plan that congress mandated stating that the USPS pre-fund its retiree medical system on an accelerated schedule. In the severe recession we have faced, these payments have assured the USPS incurs annual deficits and in result USPS is looking to cut 220,00 jobs by the year 2015 along with the closing of 3,700 post offices. 

USPS spokesman, Dave Partenheimer declined to comment on whether or not the working with restructuring advisors. 

While we will keep following the advancements in the postal reform, we encourage you to read what PIA|SD and the rest of the members of the Coalition for a 21st Century Post Service have come up with. (Read our statement) 

We also encourage you to visit savethemailsavejobs.org.

Are you following the postal reform? What are your thoughts?

PIA|SD found information on this blog topic at bloomberg.com in an article titled, “USPS Weighs Hiring Restructuring Advisers,” written by Jeffrey McCracken, Jonathan Keehner and Angela Greiling Keane.