HomeTrend Forecast
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From A.J. Riedel, Sr. Partner, Riedel Marketing Group

IMPORTANT TREND
The Power of the People Being Harnessed through Online Communities

In his Feb. 12 column, Advertising Age columnist Jonah Bloom wrote about what he described as “the power of the people”. Bloom wrote, “The power of the people is much more than whether people can cook up a decent 30-second commercial ... It’s about the increasing sway they hold over any product’s success. It’s about the honest insight and information they offer that can help a company identify problems and opportunities on corporate and brand levels. It’s even about their willingness to co-create with you the products they will later consume.”

Bloom also quotes Diane Hessan, president-CEO of social network Communispace, in his column. According to Hessan, “consumers want to be directly involved in providing advice that will lead to better products and brand experiences, and they want to be heard. This, not just ads, is at the heart of today’s consumer-in-control marketing movement”.

The fact that consumers love to be asked their opinions on product development, marketing, and advertising is not new; manufacturers and marketers have been conducting consumer market research projects for years.

What is new is that, according to Advertising Age, “droves of major marketers are running invitation-only online communities where they can bounce ideas off their best (or worst) customers”. Some of those major marketers include Kraft Foods, Hewlett-Packard, Charles Schwab, Hallmark, Unilever, Reebok, General Motors Corp., General Mills, State Farm, Starwood Hotels, and Proctor and Gamble.

Some marketers manage their own online communities. For example, Proctor & Gamble recently formed two new online communities targeted primarily to women so the company can conduct market research. Other companies out source the management of their proprietary online communities to such companies as Diane Hessan’s company, Communispace. Others utilize online communities that are managed by commercial web sites like ClubMom or consumer panels like my company’s proprietary HomeTrend Influentials Panel (HIP) which is an online community of trend-setting consumers.

Get in on the discussion of online communities at RMG HomeTrend Blog.