New Media Ratings Method, P&G Use Price Cutting Strategy, and Who is Using Coupons

Posted by Paul Christ September 11, 2009

Labels: Marketing Research, Pricing, Promotional Methods, Sales Promotion

Media Group to Research New Methods for Ratings (New York Times) - For a number of years television networks have not been very satisfied with the viewership numbers being reported by Nielsen, the major TV ratings company. Unfortunately for the networks, Nielsen has a stranglehold on ratings reports and while the networks have complained, principally about under counting of viewers, there has been little they could do. But the news found in this story suggests the networks are looking for other options.

The group will seek answers to a question that has befuddled the industry: how should the buyers and sellers of advertising time take into account the consumers who are increasingly watching shows not on TV sets, but on computers and mobile devices?>

Are the networks really only seeking new research methods as they say in the story or are they really looking for an alternative to Nielsen?

Procter & Gamble Cuts Prices to Adjust, But Sees Sales Rising (USA Today) - Many companies are loath to reduce prices unless it is only for a short term, such as a special sale. But P&G is finding that longer term price markdowns or reductions due to promotion are helping it maintain sales during the recession.

Company leaders say they are cutting prices across about 10% of their global product line, stepping up promotions such as coupons and other discounts, and making more "value" pitches to consumers

Besides these price lowering methods, what "other discounts" can P&G use to help give customers the perception of lower price?

Coupon Enthusiasts Drive Up Redemption Rates (Nielsen) - While we are on the subject of price-lowering promotions, this report from Nielsen offers insight into who is using coupons and what effect it has on increasing sales.

The most avid users, called “coupon enthusiasts,” are households that purchased 104 or more items using manufacturers’ coupons. The 10 percent of shoppers that fall into this category accounted for 62 percent of manufacturers’ coupon units. They also accounted for 16 percent of total unit sales making them a very attractive and important consumer target.

Does this research suggest that coupons may not be fully working as intended since it is primarily used by existing coupon users and not new purchasers?