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628: Marketing Principles and Practices White Paper Delivering on the Value Proposition: How Magazine Publishers Establish and Validate Brand Value By Rachel Ward Professor Melissa Rosati 7 December 2012

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Introduction
The value proposition and brand identity: Its what makes a magazine sink or swim, what sets it

apart from its competitors, and what keeps its readers coming back. But ask any publisher or marketer what their brand offers and you may not get a definitive answer right away. If the ancient Greek maxim know thyself is valuable advice for a person, then its value for a magazines brand identity really

The value proposition is [a]n analysis or statement of the combination of goods or services offered by a company to its customers in exchange for payment.

should be no different. As defined by Business Dictionary Online, the value proposition is [a]n analysis or statement of the combination of goods or services offered by a company to its customers in exchange for payment (Business Dictionary

Online). A magazine is like any other business; the same rules apply regardless of the product. At its core, the value proposition must clearly define exactly what the customer or reader is getting in return for their money. Any ambiguity in this definition can easily create a ripple effect that extends down to the reader. And if the reader isnt confident in what they are receiving in return for their money, the value proposition is compromised. Key Discussions to Be Covered in this Study: The Three Ds 1. How a publisher defines the magazine brand 2. How the publisher determines the brands value proposition 3. How these two areas deliver the value proposition to the reader Depending on the audiences reception to the content and value proposition, the publisher may

need to revaluate what the brand offers to ensure it is aligned with audience preference and expectation. As will be discussed in this paper, keeping your target audience engaged is key but its equally important to retain what it is that keeps a brand unique. Well look at the perspectives of two

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consumer magazines, The Sun and Midwest Living, to explain how a brand is established, validated, and how a publisher keeps the engagement for their brand active.

The Importance of Defining a Clear, Effective Brand

How This Differentiates a Magazine from Others in the Market Because the value proposition varies from magazine to magazine, variety in market content

results in multiple options for readers looking for a particular topic. Even a small change or new direction in the value proposition can result in an increase or decrease in readers because there is likely to be a competitor out there offering exactly what that reader wants. At a Marketing Sherpa event in 2011, Dr. Flint McGlaughlin, of MECLabs, spoke to this effect on branding and product differentiation. He holds there are three levels to differentiating a product: 1) Prospect level, where the consumers needs are addressed; 2) Product level, where you differentiate what youre selling; and 3) Process level, where you make it clear to the customer what the value is of going through the process to purchase the content (Noyes).

Dr. Flint McGlaughlins Three Ps to Differentiating a Product:

Prospect Level: Address the consumer's needs. Product Level: Dierencate what you're selling.

Process Level: Dene the value to the customer in going through the purchase process.

To begin to define a brand and to set a clear path for a magazine, the publisher has to first begin

with defining what the publication offersand only then can it be described. In Content Rules, by Ann Handley and C.C Chapman, branding is described as being all about differentiation and by describing that difference with words (Handley, Chapman 33). Something that is becoming increasingly important

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to modern media consumers is personality. Why? Handley and Chapman say that it distinguishes brands from the others. In order to build a repertoire with customers, the publisher has to leverage their unique personality (Handley, Chapman 41). In a fast- paced media world that absolutely overwhelms consumers with ads, status updates, Tweets, alerts, and emails, standing apart is increasingly important because its easy to get lost in the fray. Secondly, knowing what really drives people (discovery, belonging, more time, reinventing oneself, to name a few) can help your publication meet the real desires of your audience base (Stelzner 67-68). Whatever teaches, inspires, and entertains readers is what will hold their attention (Stelzner 67-68).

In order to build a repertoire with customers, the publisher has to leverage their unique personality. Content Rules

Discovery Common Human Desires More Time

Belonging

Reinvencng Oneself

To use a real-life example of a magazine that established a unique brand, look at Midwest Living.

Founded in 1987, Midwest Living, a Meredith title, secured its place as a regional lifestyle magazine in a region that didnt have a similar publication (Email interview with Trevor Meers). When other regional titles such as Southern Living and Yankee were finding success, Midwest Living came in with a distinct brand identity for their readers. In the words of Executive Editor Trevor Meers, Midwest Living continues to keep the promise to readers that they can trust their valuable free time, vacation dollars, and family events to the content we provide. Content is the backbone to any successful publication. As Joe Pulizzi, author of Get Content, Get Customers says, [t]he one who has the most engaging content wins . To quote Mr. Pulizzi, [c]ontent is survival (via Handley, Chapman 7).

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The Departments and People That Play a Role in Defining the Brand In terms of defining the brand (in the case of a start-up) or of continuing to uphold existing

brand values, for many magazines this is an area that is shared between the editorial and marketing departments. However, while both Trevor Meers and Krista Bremer Associate Publisher of The Sun

the conversations about the brand are shared. Everyone participates and offers insight.
Krista Bremer, Associate Publisher, The Sun magazine

magazine in Chapel Hill, NCagree that it takes effort from both sides, brand definition is ultimately on the shoulders of the editorial department. At The Sun, [t]he conversations about the brand are shared. Everyone participates

and offers insight (Phone interview with Krista Bremer). Without the input of marketing departments on what is or is not actionable, the edit team would have a hard time establishing brand value. On the other hand, for as much as the two areas need to collaborate, its the editorial side that has the closest relationship with readers and the deepest understanding of the content at the core of the brand (Meers). The reason this is so important is because change in the brand direction at any level of the organization can lead to confusion for not only the readers but for the advertisers as well (Ibid). In the case of Trevor Meers at Midwest Living, one way to bridge the marketing/editorial gap is to participate in yearly sales meetings and attend sales calls throughout the year (Ibid). More magazines could benefit from such an unsiloed approach to this role. The editorial department must continuously set the tone and make efforts to align all new content with the existing value proposition of the brand.

Determining the Value Proposition and How it Relates to the Brand

Establishing What the Publication Offers the Consumer and What the Cost Is Perception is everything when it comes to marketing a publication. At the Marketing Sherpa

2011 Summit, Dr. Flint McGlaughlinquoted earliersaid that perceived value must outweigh the

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perceived costs (Noyes). This is partly due to the fact that consumer magazines (like many products that people consume) are not a necessary good; they are not needed for survival. However, they do bring a sense of purpose, inspiration, and enjoyment to their readers lives, which is a distinct, measurable

Perceived value must outweigh the perceived costs. Dr. Flint McGlaughlin

value. What the consumer perceives as an aide to their lives is wholly due to what a publication projects. A publications brand is the image that consumers have of the company or

product. It sets the tone for what the consumer expects to receive. The publishers job is to convince the reader of what they need. Likewise, the voice that is used for a company must be completely in line with who the audience thinks they are (Handley, Chapman 41). For readers of The Sun magazine, the cost for this value is steeper than some at $40 for a yearly

subscription. Midwest Living subscriptions are at a much lower rate of $6.97 for a yearly subscription, which is made possiblein large partthrough advertising sales, which The Sun does not contain as it is a non-profit publication. Despite the monetary difference, each publication offers something truly distinct for their respective readers. For a non-profit magazine, a subscription to The Sun provides the consumer with hours of poignant, honest literature and fiction without any ads. The lack of ads in particular is a valued premium offer for some readers, one that they are willing to pay more for. Associate Publisher Krista Bremer also believes that the idea of a high quality good having a higher price point that people will readily pay for is a new trend in our society (Bremer). Similarly, Midwest Living also offers their reader a distinct value in return for payment: targeted, actionable content on lifestyle, home decorating tips, travelling, and gardening that has a regional perspective (Meers). The Difference in the Value Proposition Between Digital Versus Print When it comes to a publications content, generally one would expect to find this unchanged

regardless of how or where it is read. However, with digital edition readership and tablet ownership

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soaringand with tablet ownership expected to increase 200% by 2014 (Tablet Ownership) publishers must consider how their brand is conveyed across these platforms and if a new approach is needed. Trevor Meers raises an excellent point in this area. He calls the print magazine a discovery platform (Meers). Readers come without knowing what specific stories will be inside, but [are] ready to be inspired by what the editors choose to showcase for them (Ibid). Contrasting this with what consumers seek via the web

Across platforms, brand remains the same while the value for the reader changes.

where the desire is for more specific information since most users [have] a general idea of what theyre looking forand it becomes apparent that the brand remains the same while the value for the reader changes. By offering highly specific content that is maximized by search engine optimization (SEO) (Ibid), publishers can expand and differentiate their singular brand value to reach the greatest number of consumers across whichever platform they prefer. Why is this important? Digital editions are quickly becoming a large revenue driver for publishers (digital editions alone make up close to 7% of digital revenue for many publishers) (CDS Global, FOLIO Magazine, 17). Data from the second edition of the Media Industry Benchmark and Trending study conducted in partnership with FOLIO and CDS Global in 2011 titled Monetizing the Digital Revolution shows that 35% of consumer magazine publishers currently have an iPad or tablet edition of their magazine; 89% have a website; and 51% utilize SEO (CDS Global, FOLIO Magazine, 10). While there is room for growthespecially in terms of digital editions and SEOthe digital audience is increasing and publishers can embrace the opportunity to expand their brand across all platforms.

Delivering on the Value Proposition to the Consumer

How the Effectiveness of this Delivery is Measured Once the brand is defined and the value proposition is determined, the publisher must be able

to measure how effectively this is delivered and conveyed to the consumer. However, what may be

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obvious to some publishers may not be to others: the primary goals of measuring success need to be measurable, effective, objective, and quantifiable (Handley, Chapman 27-28), regardless of tools or resources used. Secondly, the most effective ways to measure if the publication is delivering on the value proposition to their readers is essentially a three-pronged approach: 1) Audience research and testing; 2) Validation through social media channels; and 3) Monitoring circulation revenue.

The Three-pronged Approach to Measuring Audience Validation

1) Audience research and tescng 2) Validacon through social media channels 3) Monitoring circulacon revenue
By monitoring at least one or all three of these channels, publishers can accurately get a sense of how their brand is being received on the consumers end. Its also important to note that actions speak louder than words. What a responder might say in a research test or survey is one thing, but validating that through the other channels of social media and circulation revenue can give the publisher a more concrete way of validating or invalidating their sentiments. Audience Research and Testing The first important area for publishers to focus on is audience research and testing. To provide

perspective on this area, Sheila Mahoney, Director of Brand Development, weighs in on what types of research programs her publication Midwest Living utilizes. Two of the primary programs used are MRI and Starch (Interview with Sheila Mahoney). MRI (which stands for Market Research Insight) offers

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various reporting packages for their clients including field research, statystical analysis, demographic mapping, and report analysis (MRI). Starch, on the other hand, provides market intelligence about print advertising with key metrics for magazine ad readership with an emphasis on brand disposition, purchase behavior or intention, and publication/advertising engagement (Starch). These two companies represent two sides of the coin: one being focused on demographic, consumer information for the publisher; the other providing data that is actionable for advertisers. To tie this all together, Midwest Living also does regional audience tests to find how their readers are engaging with the magazine, the primary goal being to determine if these avenues can be improved upon in any way (Mahoney). Knowledge is power, especially when it comes to business intelligence and this is a distinct key

to listening to your audience (Blanchard 128-130). Olivier Blanchard, social media expert and blogger, says in his extensive book, Social Media ROI, that, [a]n organization cannot respond to the needs of its market without first being in tune to its needs (Blanchard 131). To do this, he outlines three steps that can be taken by an organization to gauge what the reception to the brand is from a top level view. First,

An organization cannot respond to the needs of its market without first being in tune to its needs. Olivier Blanchard, Social Media ROI

a publisher can use common search engines (Google, Bing, Yahoo) to search brand names to see what types of posts can come up (Blanchard 128-130). This will present an honest look at a brand from the consumer perspective. Secondly, the next step would be to search social media

sites to measure the quality and volume of mentions. How would this work? For example, a publisher that found fewer mentions could speculate that greater brand visibility is needed. In the case of a publisher coming across high volume mentions, a third step in this process of investigation would be to mine the data to see what can be learned from it (Ibid). Recommended social media platforms to do this include Hootsuite, Tweetdeck, or Seismic (Ibid). (NB: The use of social media to research the audience could also be part of the next heading, Social Media Validation. However, this use is more

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for a top level, initial investigation to see what is being said rather than to increase or decrease ROI or audience engagement). While this might seem very elementary and unofficial, these simple research steps can present opportunities for the publisher to make their business proactive when it comes to assessing brand value, and, of course, whether or not the value proposition is being delivered on.

Olivier Blanchards Three Steps to Researching Audience Sentiment

Listening to the Audience: Step One Search for the brand on common search engines like Google, Bing, or Yahooo to see what types of posts come up.

Listening to the Audience: Step Two Search social media sites like Twiuer or Facebook to measure the quality and volume of mencons.

Listening to the Audience: Step Three Mine the data you nd... see what can be learned from it!

Validation Through Social Media Channels Social media has rapidly evolved into more than just a platform for personal interaction. One of

the main benefits for consumer marketers and publishers is that its a real-time, direct link to the consumers data: less can be misconstrued which means there is less room for error (Blanchard 134). It also offers businesses and publishers a whole new way to market and leverage their brand across a larger scope than they could ever previously reach. As examples, both The Sun and Midwest Living utilize Twitter and Facebook, and Midwest Living has an active Pinterest following (Mahoney, Bremer). For Midwest Living, Sheila Mahoney believes the consumer interaction via social media is truly organic (Mahoney). For her publication, audience engagement is validated through likes and retweets. She makes a strong point that, in this sense, social media has less of an inherent marketing ploy and is about

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the content shining through since it is managed primarily by the editorial department (Mahoney). What social media does offer the publisher, which is a great benefit to brand validation, is that its relatively inexpensive, can be managed in-house, and can have the biggest effect on a company in terms of financial outcomes (Blanchard 215). Whats more, closely monitoring reader sentiment through social media can help publishers be attuned to what potential changes or new approaches need to be made in their content or campaigns (Blanchard 228-229). The One ProblemYes, Problemwith Social Media The social media problem that many publishers encounter is how to convert likes and

retweets into revenue. A like might tell the publisher they are moving in the right direction in terms of content, but is the reader putting their money where their like is? The real crossroads of the issue is how to bridge the gap between validating that a brands value proposition is delivered on while also ensuring there is an increase in revenue to match it. Without it, a positive

The real crossroads of the issue is how to bridge the gap between validating that a brands value proposition is delivered while also ensuring there is an increase in revenue to match it.

reception to the brand still does little to bring in revenue and ensure financial stability. Krista Bremer of The Sun admits that Facebook, despite its extensive reach, is difficult to make profitable (Bremer). This could largely be due, in part, to what publishers see as the purpose of Facebook. Brian Solissocial media guru, principal analyst at the Altimeter Group and author of The End of Business as Usual believes there is confusion on behalf of marketers who use Facebook with how to actually utilize Facebook:
Businesses confuse Facebook as a utility or service thats there to help broadcast messages... . In reality, Facebook is a social network to help people communicate, share, and discover... . Therefore, businesses must learn that relationships are earned and earned again and communities are built upon a foundation of mutual value, entertainment, and empowerment.

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A like isnt an opt-in or subscription for marketing spam. It is an expression not a representation of a captive audience. Regardless of your community size, people are not idly waiting for your marketing messages. The reality is that only a small fraction of your overall community will see your posts. People may have Liked you, but theyre also following friends, family, other brands and important organizations and events. With everyone publishing content, youre competing for attention in real-time. Instead, consider competing for attention with the right content at the right-time. Brian Solis (Facebooks Page Reach and What Your Business Needs to Know, November 28, 2012).

Getting likes, follows, retweets, reblogs, etc., are definitely a positive outcome for publishers using social media, but they are not the end goal in the brand validation equation.

How to Make Social Media Profitable According to Olivier Blanchardand as many publishers would agreethe bottom line is for a

publisher to convert a person who likes your brand into a valuable subscriber (or in the case of Twitter, to convert Followers into subscribers) (Blanchard, The five basic rules). However, the real value of a like is what actual dollar amount that reader spends on your product. That being said, when it comes to validating the audiences engagement with a particular brand, there are essentially two outcomes of a social media connection that matter: a financial outcome and a non-financial outcome (Blanchard 211). While it may seem that only the financial outcomes are what need to be carefully monitored, its the non-financial outcomes that can tell the publisher the most information. Its common for non-financial social media outcomes to help paint a picture of why conversions increase or why finances are impacted (Blanchard 213-214). A financial outcome, on the other hand, would be a situation where a promotional period on Facebook or Twitter yielded an increase in net sales that could be directly tied back to the campaign (Blanchard 211) with a promo code or similar tracking option or when there was an actual increase in net sales (Blanchard 222). Keeping these options in mind, publishers need to focus on what can be measured: follows and likes per day, minute, or week; amount of shares, downloads, and retweets; and unique visitors to your site (Blanchard 198-199). When a monetary outcome results from such a transaction, that is when a publisher can accurately

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Social Media Outcome #1: Non-nancial Outcomes - Examples: What is being said about the brand; New followers; Increase in downloads of content, etc. Does not yield ROI, but "paints a picture" of the brand.

Social Media Outcome #2: Financial Outcomes - Examples: Increase in sales during promoconal period (tracked with a promo code); Reduccon in labor; High net sales. Yields ROI and shows real success of brand campaigns.

Monitoring Circulation Numbers In terms of validating effective delivery of the value proposition, one thing rings true for both

The Sun and Midwest Living: guaranteeing ratebase and monitoring circulation numbers are the

Circulation, the only measure to know what works; its imperfect, but it works. Krista Bremer, The Sun magazine

strongest way to validate if the brands value proposition is being effectively delivered. It may be the most traditional sign of successful brand validation, but theres a real reason it is still the biggest indicator for a

publisher. For Sheila Mahoney at Midwest Living, the bottomline is revenue. If revenue is increasing then the publisher knows something is working (Mahoney). The value is guaranteed to the advertisers based on circulation numbers and newsstand sales (Mahoney). Any fluctuation here could cause advertising to drop. For Krista Bremer at The Sun, circulation is really the only measure to know what works (Bremer). However, as Krista says, its imperfect, but it works. So here is where social media validation comes into play: it can serve as a way to monitor the sentiments that lead up to an increase or decrease in circulation numbers. With economic reasons also being a factor in decreasing circulation

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sales, social media validation would be a way to monitor if the decrease is due to the value proposition not being delivered on or if its merely a matter of economic factors coming into play. So if the Proposition is Not Validated, What is the Solution? An important question for many publishers who have done the audience research, who have

monitored their readers sentiment via social media, yet find negative response or a continued decrease in revenue is to ask themselves, What is the solution? Well, there are several approaches and options to head off a potential sales decline and to reinforce brand loyalty. First, publishers must be sure they know what their consumers come to them for and they must be willing to let go of any pre-held notions or projects that simply arent working to retain readers (Meers). Sheila Mahoney suggests that online panel surveys could be issued to get feedback from readers on what is or is not working (Mahoney). Secondly, they need to evaluate the editorial product and content (Mahoney). It is worth noting that content and editorial product can only be changed so much before it becomes an issue of relevancy. Compromising the brand personality even by small degrees can easily take the publisher down the wrong path. That being said, the third solution for publishers is evaluate pricing by testing different offers for their audience (Bremer). By surveying readers, testing price offers, and evaluating content, publishers can most effectively find solutions Case Study in Point: NASCAR Brand Re-Engagement Although it is an entirely different industry, in 2011 the car racing industry giant NASCAR

launched a massive research initiative to address low attendance numbers and what they perceived as negative brand validation (Gunelius). What they found was specific information on why fans were disengaging: late race time starts for West Coast viewers; soaring ticket prices; and dissatisfaction with rule changes (Thomaselli). By taking action with the information gained from over 50 focus groups, NASCAR implemented a new integrated marketing campaign that focused on new demographics (a

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younger, more diverse audience) and a stronger social media campaign (Ibid). Chief Marketing Officer Steve Phelps said they were trying to find a baseline. Only then could they focus on identifying the problem and, most importantly, fixing it (Ibid). Their results from the campaign were also measurable: race attendance increased 9% and their TV ratings also went up (Ibid). As could be applied to the publishing world, identifying the issue and taking action through measurable means can yield success.

Conclusion
Defining, determining, and delivering: These three words can quite accurately frame the steps

that a publisher must take to ensure their brand is successful and delivers on the value proposition. A successful publication is not the result of one department, but rather the combined efforts of editorial and marketing. From clearly defining a publications brand, to determining exactly what that publications value proposition is, to the end goal of delivering the proposition to the reader, active participation and teamwork is required from both marketing and editorial departments for these three areas to come together.
Editorial establishes the brand and sets value proposicon

Audience validates or invalidates the brand

Marketers research and test ways to gain and retain audience

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In this new media age, publishers now have the opportunity to be attuned to their audience like

never before. Social media platforms such as Twitter and Facebook give publishers the chance to monitor how their brand is received and to help paint the bigger picture of how they deliver the value proposition in concert with more traditional models of circulation-based revenue. The essence of the brand remains the same, but there are now more ways to deliver value to each individual reader across every platform. What was at one time a seemingly passive role, the modern publisher is now afforded a chance to actively participate in delivering on the value proposition. With this opportunity for active, real-time participation, the publisher can be fully prepared to fix what doesnt work and to re-align the brand with their target audience. The most important thing to remember for a publisher, too, is what the brand is at its core and to not lose sight of this. When this is clearly and strongly defined, the rest will follow.

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Bibliography

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Blanchard, Olivier. Social Media ROI: Managing and Measuring Social Media Efforts in Your Organization. Boston, Massachusetts: Pearson Education, 2011. ------------------. The five basic rules of calculating fan/like/follower value. The Brand Builder Blog. 24 September 2012. < http://thebrandbuilder.wordpress.com/2012/09/24/the-5-basic-rules-of- calculating-fanlikefollower-value/>. Bremer, Krista. Associate Publisher for The Sun magazine. Personal phone interview. 13 November 2012 Business Dictionary Online. Definition of a Value Proposition. 13 October 2012. <http://www.businessdictionary.com/definition/value-proposition.html>. CDS Global, FOLIO Magazine. Monetizing the Digital Revolution. 2011. Media Industry & Benchmark Trending Study, Second Edition. Gunelius, Susan. Brand Promise Validation Through Market Research. Accessed 20 October 2012. <http://aytm.com/blog/research-junction/brand-promise-market-research/>. Handley, Ann and C.C. Chapman. Content Rules: How to Create Killer Blogs, Podcasts, Videos, Ebooks, Webinars (and More) that Engage Customers and Ignite Your Business. Hoboken, New Jersey: John Wiley & Sons, 2012. Mahoney, Sheila. Director of Brand Development for Midwest Living, a Meredith publication. Personal phone interview. 13 November 2012. Meers, Trevor. Executive Editor for Midwest Living, a Meredith publication. Personal email interview. 12 November 2012. MRI, Market Research Institute. Services. Accessed 18 November 2012. <http://www.mri- research.com/services.html>. Noyes, Jesse. 6 Steps to Defining Your Value Proposition from Marketing Sherpa. 26 September 2011. <http://blog.eloqua.com/value-proposition-examples/>. Solis, Brian. Facebooks Page Reach And What Your Business Needs To Know. 30 November 2012. <http://networkingexchangeblog.att.com/small-business/facebooks-page-reach-and-what-your- business-needs-to-know/>. Starch. Products. Accessed 18 November 2012. <http://www.gfkmri.com/Products/Starch.aspx>. Stelzner, Michael. Launch: How to Quickly Propel Your Business Beyond the Competition. Hoboken, New Jersey: John Wiley & Sons, 2011.

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Tablet Ownership to Increase by 200%. IBE website. 26 April 2012. <http://www.ibeweb.com/ibe- news/tablet-ownership-increase-200>. Thomaselli, Rich. How NASCAR is Starting a Turnaround. 29 July 2011. <http://adage.com/article/ media/nascar-starting-a-turnaround/229022/>.