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Rubicon Consulting just completed a study and concluded that online reviews and word of mouth are the most influential factors in consumer purchase decisions. It also noted that a website is highly important from a customer support perspective.

The survey also concluded the following about user’s perceptions and participation on different websites:

• The web is the second largest resource for customer support, second only to user manuals. That means it even ranks ahead of calling a manufacturer or contacting a dealer.
• Websites that get the most daily traffic are social websites, news sites and online banking.
• Ameicans value Google, Yahoo, You Tube and Facebook the most, in that order.
• Despite Yahoo’s negative press, it still has a loyal following.
• Facebook is valued higher than Myspace by Americans.
• Despite a ton of publicity, the social sites Twitter and Second life reach only a small percentage of U.S. users.
• Democrats spend more time online than Republicans, especially on Social Communities.
• Young people (22 and under) are responsible for about half of the comments posted online.

So what does this mean? It’s important to have an online presence included in search results and online communities, especially Facebook apparently. Harry Max of Rubicon Consulting agrees:

“Many companies downplay the importance of online communities because only a few percent of all Internet users contribute to them heavily. What they don’t understand is that most other Internet users read those reviews and rely on them heavily when making purchase decisions. Taking good care of online communities can be a huge money-saver for companies trying to get more marketing impact from limited budgets”

Consumer behavior is changing. Make sure your marketing efforts adapt.

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 MarketingProfs recently conducted a survey to gain insight as to how the current state of the economy is affecting marketing decisions. They asked 600 marketing professionals about their future plans. How did they respond?

When pockets begin to empty, businesses often tighten their marketing budgets. The harsh news is that about 65% of marketers expect negative effects on the overall market. They also expect these effects to be, by no means short term. 75% expect the conditions to last till 2010. Others predict layoffs (25%) and falling salaries (43%).

So what do marketers plan to do? They are moving from traditional marketing to online marketing. Sure, this has been noted before but it is beginning to happen at a more accelerated pace. According to MarketingProfs, more are beginning to increase online spending:

“MarketingProfs has observed that online marketing is also turning into a venue where marketers can stretch their dollar while accurately targeting leads and customers. 60% of all marketers surveyed stressed that they would be increasing their online budgets while 85% would be reducing their use of traditional marketing vehicles.”

 85% reducing their traditional marketing budget is a lot. I believe it is a wise choice for some businesses, depending on the industry. However, cutting back your marketing budget in lean times is not necessarily a wise decision if you think about it. Going silent or easing back on communication when consumers are uneasy is the last thing a company should do.

 A few reasons to maintain or increase marketing initiatives in leaner times:

•  Publishers are having a more difficult time selling ad space which results in more opportunities for bargains. You can pay less for prime advertising space.

• If your competitors are cutting budgets while you hold or increase yours, you’re business is likely to come up on top when the recession ends. Want proof? Check this link.

The mainstream media is constantly pushing gloomy details to us about the economy,failing businesses and institutions. Many businesses are still thriving and things will eventually pick up. Keeping a positive mindset, while exploring new ways to grow your business, will not only help you expand, but raise morale as well.

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The times of today have changed drastically in the past 6-8 months. Consumer spending is erratic, fuel costs are on the rise, business lending is uncertain, but the desire to succeed where others have not is as strong as ever. So what does this mean? I highly doubt that the “next big thing” is going to come from big businesses who are down sizing or “right sizing” to adapt to the plummeting economy. It seems that every time I turn on the radio I hear about companies like GSK, Channel Advisor or Sony Erickson handing out pink slips to offset dropping revenue streams. I’m no economic genius, but past trends show that the workforce and therefore the economy tend to correct themselves slowly in time. This is due in part to small business and new start-ups. And guess what, starting up is easier than ever.

My guess is that economics and trade will shift to the virtual world as more tech savvy entrepreneurs and investors trek into national and international markets. I can’t even count the amount of times I’ve read about web 2.0 start ups drawing millions in funding this year. Facebook even just opened an office in Dublin.

Consumers are watching their dollars more than ever which has resulted in a smarter consumer that makes more informed decisions before they buy. This is where Internet Marketing will find it’s place in the world. The smart consumers of the next generation are ready to be mavens of e-commerce and e-marketing not media propaganda, telemarketing and get rich quick schemes.

Members of our generation with money to burn begin their buying decisions online where they can research, evaluate, decide and recommend products and services. Fulfill consumers needs in those areas and you will succeed with online marketing.

Are you ready?

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