Marketing Myths: Five Pitfalls to Avoid

Even newspapers that embrace market intelligence make key mistakes that prevent them from unleashing the full power of their data. Ed Efchak, vice-president of marketing at North Jersey Media Group, pinpointed a few common pitfalls and assumptions to avoid at API's seminar "Unleashing the Power of Market Intelligence."

Pitfall 1: Data is information
Data is not information. Data are discrete facts that need to be aggregated in some meaningful way to form information, or valuable knowledge. Newspapers need information but too often only have data. Once newspapers understand there's a difference, they can develop a consistent way of storing data and making it easily accessible to be analyzed and shared.

Pitfall 2: The more data the better
Not all data is good data. Because data is not information, unexamined data is simply waste. Just as old inventory loses value when sitting in a warehouse, untouched data also loses value over time. At the same time, not all data is worth examining. Efchak encourates newspapers to spend their money wisely by defining their goals before collecting data. Know what the data is for and who will be handling it, and know the difference between valuable data and less useful data.

Pitfall 3: Data collection must be unvaried
Collection methods should be consistent, but also varied, says Efchak. He has seen many telemarketers succumb to ennui after many calls, taking less care in collecting data over time. Telemarketers begin to generalize, filling in data based on prior responses. Efchak suggests changing the collection procedure by alternating the questions that a caller asks. For example, one caller can ask the first 10 people about their reading habits, the next 10 about lifestyle interests, the next 10 about reading habits, and so on.

Pitfall 4: Collecting data is invasive
Overcoming this mentality will help newspapers collect more data as well as improve the quality of the data collected. Efchak suggests taking advantage of consumer touch-points to gather data. When someone phones in, take advantage of the opportunity to ask some questions. And remember to question them on the positives as well as the negatives. Knowing why people start a subscription can be just as valuable as knowing why they cancel. Efchak also points out that most of the data from consumer-initiated interaction is data that has been pulled from the consumer, as opposed to the consumer being pushed to respond to a survey. Providing easy ways for consumers to share their concerns, either through an email form or online, will also increase the reliability of the data collected.

Collecting pull data can also improve a newspaper's knowledge of leading indicators. Reasons to subscribe can highlight trends that can provide coverage ideas for the newsroom, or even new product opportunities for the organization.

Pitfall 5: Each department stands alone
Knowledge is power - no matter what the department. Don't let a meticulously constructed market report languish on a shelf. Market information should be shared with staff across all departments. Advertising and newsrooms can share intelligence on new businesses; newsroom can use marketing data to gauge the need for special sections or coverage, and senior management can and should use market information to guide strategic decisionmaking. Sharing market data maximizes and justifies a newspaper's investment in it.