Anyone who hasn't been locked in a closet for the past five years knows that the Internet has helped level the marketing playing field between large and small companies. Social media and other web marketing methods are allowing businesses with small marketing budgets to compete with larger companies.
Not too many years ago, a business needed to spend $200,000 or more annually in a small to medium market just to have a minimal presence. That left most businesses out of the hunt for any kind of top of mind awareness in their market. Businesses with smaller budgets were limited to a selection of marketing alternatives that might include guerrilla marketing, community newspapers, local store marketing or maybe a modest presence in the local daily newspaper.
Today, if a business owner figures out how to harness the power of the Internet, a world of potential customers, literally, opens up. That's the good news. the bad news is that it isn't quite as easy as it might first appear.
In my experience, most people who run a business find that it's a full time job. Business people tend to be consumed with all that needs tending, from personnel issues to accounting. From dealing with vendors to keeping customers happy. And, there are dozens of other tasks, each screaming for the entrepreneur's attention.
This business of web marketing takes precious time that most business people simply don't have. And, it isn't just the time to execute the e-marketing plan. It also involves creating the plan. How, as an entry level player, do you know where you should have a presence, and what you should do once you are there?
How much effort should you put against search engine optimization? Should you be on YouTube, Flickr, Twitter or Facebook? Should you have an e-mail program or a paid search campaign? Does a blog make sense for you? Then there are the hundreds of add-on applications that extend the effectiveness of all these platforms. And, how do you connect your choices so they all coordinate to deliver a cohesive message to the same target audience? Finally, how do you measure results?
It is the rare business owner who can figure all this out and still run his business. Take advantage of the opportunities the web offers and start today by hiring someone who already knows this stuff. They'll do a much better job, and do it quicker than you could ever hope to. The money you save by trying to figure it out yourself will be a trifle compared to what you will gain by ramping up now and staying ahead of your competition.
Wednesday, May 27, 2009
Thursday, May 21, 2009
Technorati
This post is strictly for the purpose of following the instructions for claiming my blog on Technorati.
Technorati Profile
This procedure seems odd, but I'll give it a try.
Technorati Profile
This procedure seems odd, but I'll give it a try.
Saturday, May 16, 2009
Store closing strategy for A Boy is personal
A going out of business strategy isn't something a marketing company such as ours likes to create for a valued client. But, this recession is ruthless, and really doesn't care about the human side of the story. And, this one is a little personal for me, not because they are a great client, but because I really, really like their stores.
In this case, we are about to launch a store closing campaign for four of the six A Boy Plumbing and Electrical Supply stores in the Portland / Vancouver area. The unfortunate part is that the stores were doing fine, given the bad economy. It was the parent company that relied entirely upon contractor building activity that was really hit hard. And, as much as A Boy provided revenue, it couldn't provide enough to fill the huge, growing vacuum created by the much larger parent company.
With only about five weeks to close, we were given the task to unload more than $1 million worth of inventory. Our plan involves three phases. The first phase announces the existence of the sale and will last for about two weeks. The second phase will call out inventory categories that need more attention and apply deep discounts to the message. The third phase will begin a countdown to closing in order to create urgency. The final phase will also feature drastically discounted examples.
The media will go for tonnage. This is a fairly simple message that people will understand quickly. So, we're buying :15 and :10 second radio and TV spots, supplemented with 4 - 5 second TV, and getting as many messages as possible out there.
The good news is that this isn't one of those phony sale schemes where prices are raised so they can be lowered, and the net result is no savings. This is the real deal. There's no time or interest in playing those unethical games. So, you might say that this is a guy's dream come true: a store filled with all kinds of tools, hardware, fixtures and other man toys on sale.
On the other hand, I'm going to miss my favorite store. The A Boy on Foster. It's the closest thing to an old fashioned hardware store I know, where the guys there really know their stuff and there's none of that "big operation" slickness that stocks only those things that deliver the highest annual turns.
More good news! Two of the stores: Hollywood and Barbur Blvd. are being purchased by the original owner and will remain open under his exclusive ownership.
I think this little gem of a chain will once again grow into various Portland area neighborhoods to serve as a great alternative to the big, impersonal box stores.
In this case, we are about to launch a store closing campaign for four of the six A Boy Plumbing and Electrical Supply stores in the Portland / Vancouver area. The unfortunate part is that the stores were doing fine, given the bad economy. It was the parent company that relied entirely upon contractor building activity that was really hit hard. And, as much as A Boy provided revenue, it couldn't provide enough to fill the huge, growing vacuum created by the much larger parent company.
With only about five weeks to close, we were given the task to unload more than $1 million worth of inventory. Our plan involves three phases. The first phase announces the existence of the sale and will last for about two weeks. The second phase will call out inventory categories that need more attention and apply deep discounts to the message. The third phase will begin a countdown to closing in order to create urgency. The final phase will also feature drastically discounted examples.
The media will go for tonnage. This is a fairly simple message that people will understand quickly. So, we're buying :15 and :10 second radio and TV spots, supplemented with 4 - 5 second TV, and getting as many messages as possible out there.
The good news is that this isn't one of those phony sale schemes where prices are raised so they can be lowered, and the net result is no savings. This is the real deal. There's no time or interest in playing those unethical games. So, you might say that this is a guy's dream come true: a store filled with all kinds of tools, hardware, fixtures and other man toys on sale.
On the other hand, I'm going to miss my favorite store. The A Boy on Foster. It's the closest thing to an old fashioned hardware store I know, where the guys there really know their stuff and there's none of that "big operation" slickness that stocks only those things that deliver the highest annual turns.
More good news! Two of the stores: Hollywood and Barbur Blvd. are being purchased by the original owner and will remain open under his exclusive ownership.
I think this little gem of a chain will once again grow into various Portland area neighborhoods to serve as a great alternative to the big, impersonal box stores.
Sunday, May 10, 2009
Create a Marketing Plan for the Economic Recovery Now
More and more indicators are pointing to an economic recovery. That means marketers must look past their recession strategy and begin planning their recovery marketing strategy.
I have witnessed businesses cutting overhead, cutting jobs and salaries, closing branches, cutting marginal lines and doing all the things necessary to survive. Most have already done just about everything they can do, and are managing to struggle through.
Finally, Saturday's Oregonian reported: "Battered economy looking a bit better". By the way, while some of the indicators they reported were recent, I think evidence existed three or four weeks ago, and the newspaper is woefully behind in its reporting. Current unemployment figures are better than expected, the bank stress test showed that banks are in better shape than experts were expecting, the Dow has been up 8 weeks out of the past 9, and the NASDAQ has been up 9 straight weeks.
So, with these positive signs, it becomes clear that sharp marketers who recognize the importance of staying in front of trends must be planning how to address the change now.
Here are seven recommendations for marketers looking to plan ahead, made in a recent article by John Quelch, a professor at Harvard Business School.
1. FOCUS ON HIGH POTENTIAL CUSTOMERS
Identify those who may have been putting off the buying decision and speak to them first.
2. DON'T ASSUME A RETURN TO NORMAL
This long, deep recession is more likely to permanently change consumer attitudes and behaviors. Be sure to listen and watch carefully the signals they are sending you.
3. ASSESS TARGET CUSTOMER TRUST
Companies, especially financial companies, have taken a beating in the past several months. Add services and support to boost your trust with customers.
4. STAY FOCUSED ON COST
This long recession has created a downward pressure on prices that will not go away with the recovery.
5. KNOW YOUR LEAD INDICATORS
What do you notice that precedes or validates your customer behaviors? Identify those and pay attention to them.
6. DEVELOP SCENARIOS
Since there is no way for you to know exactly what will happen or when, you must be prepared to adjust your marketing to fluctuations of surprisingly robust sales and short periods of reversal.
7. DON'T WAIT FOR PERMISSION
Start planning now. Don't wait for an official announcement that the recession is over. By that time, you will be behind your competitors.
I have witnessed businesses cutting overhead, cutting jobs and salaries, closing branches, cutting marginal lines and doing all the things necessary to survive. Most have already done just about everything they can do, and are managing to struggle through.
Finally, Saturday's Oregonian reported: "Battered economy looking a bit better". By the way, while some of the indicators they reported were recent, I think evidence existed three or four weeks ago, and the newspaper is woefully behind in its reporting. Current unemployment figures are better than expected, the bank stress test showed that banks are in better shape than experts were expecting, the Dow has been up 8 weeks out of the past 9, and the NASDAQ has been up 9 straight weeks.
So, with these positive signs, it becomes clear that sharp marketers who recognize the importance of staying in front of trends must be planning how to address the change now.
Here are seven recommendations for marketers looking to plan ahead, made in a recent article by John Quelch, a professor at Harvard Business School.
1. FOCUS ON HIGH POTENTIAL CUSTOMERS
Identify those who may have been putting off the buying decision and speak to them first.
2. DON'T ASSUME A RETURN TO NORMAL
This long, deep recession is more likely to permanently change consumer attitudes and behaviors. Be sure to listen and watch carefully the signals they are sending you.
3. ASSESS TARGET CUSTOMER TRUST
Companies, especially financial companies, have taken a beating in the past several months. Add services and support to boost your trust with customers.
4. STAY FOCUSED ON COST
This long recession has created a downward pressure on prices that will not go away with the recovery.
5. KNOW YOUR LEAD INDICATORS
What do you notice that precedes or validates your customer behaviors? Identify those and pay attention to them.
6. DEVELOP SCENARIOS
Since there is no way for you to know exactly what will happen or when, you must be prepared to adjust your marketing to fluctuations of surprisingly robust sales and short periods of reversal.
7. DON'T WAIT FOR PERMISSION
Start planning now. Don't wait for an official announcement that the recession is over. By that time, you will be behind your competitors.
Sunday, May 3, 2009
Media Buying: seven mistakes made by business owners
We've been around buying media for more than 20 years, so we've seen just about every sales pitch, rationale and strategy there is. I'd say we've seen them all, but there's always the slim possibility there might be one out there we haven't seen yet.
More to the point, however, is that along the way, we've also heard from a great number of business owners and managers who are convinced they are getting the best media buy possible. No one, despite their credentials or experience, could possibly negotiate a better deal than they did.
In no case, ever, have we come across an owner-made media buy that could not be improved. And most of the improvements needed were significant. Here are some of the pitfalls of a business owner or manager negotiating his or her own media buy.
1. CHEAP SPOTS DON'T MEAN VALUE
It is in a business manager's makeup to measure the value of something by its cost. All to often we have witnessed a business owner proudly showing the super low costs of his TV or radio commercials without taking into account the size of the audience. A half hour in timing can make a huge difference in the numbers of people who will watch or listen to the commercial. The super low cost spots are super low for a reason. There's no audience.
2. BEST RATES COMPARED TO WHAT?
While we're on the subject of rates, most do-it-yourselfers are convinced that they negotiated the best rates in town. What they fail to recognize is that part of a good media salesman's job is to close the sale making the buyer thinking they got the best rate in town. And, they're usually pretty good at doing that. A client of ours is one of the best negotiators I've even met. But, he turned his media buying over because he wisely recognized that he had nothing to compare his rates to in order to verify what he was paying. A media buyer buys for a number of clients, therefore has a view of the playing field that a single business owner cannot have. This client actually lowered his media costs by going through a buyer.
3. ELIMINATE ANY POSSIBILITY OF SELF INTEREST.
Objectivity is extremely important when it comes to media buying. In almost every direct situation, some media rep has managed to create a close relationship with the business owner. Often, the business owner will even consult their favorite, trusted media rep for information not related to the rep's station. This is a huge error, regardless of the trust factor. No media rep is without a self-interest in selling his station. It can and absolutely will color any advice provided. Only an independent media professional is in a position to recommend a media mix without bias.
4. DON'T BUY WHAT YOU LIKE.
People who buy their own media tend to buy programming that they like. It's hard to spend $3,000 on a schedule, then not see it because it's not where you are watching or listening. But, that's what must be done. Media has to be purchased where your customers are watching, not you. And, too often, business owners believe their customers have the same media habits as their own.
5. SPREAD IT OUT AND WATCH RESULTS DIMINISH.
Stations like to sell schedules that are convenient for them, not schedules that deliver customers to you. I have never been able to understand why they do this, but it happens repeatedly. A station will push direct advertisers into a buy that is spread out over all day parts as evenly as possible. This is so they can sell their time slots evenly, thus leaving time in all day parts to sell to other advertisers. The trouble is, it dilutes the effectiveness of they buy for the advertiser. Media professionals have information that shows audience levels throughout the day and can balance the buy to maximize the fluctuation.
6. RESIST THE $300 PRIME SPOT PITCH.
Too many smart business people get lured by the promise of a prime spot for a fraction of its regular price. Smetimes you can get a cheap prime spot. But, it's almost always at the expense of the overall efficiency of the buy. Sometimes when you pay a small amount for a bank of commercials that are allowed to rotate throughout the day at the station's discretion, you can get lucky. But, by the time you add up what you paid and measure it against what you got, it is a very bad gamble. Even if you landed a cheap spot in a prime time television slot, you can bet the rest of your schedule ran in garbage times because that's where stations have most of their inventory.
7. HOW DO YOU KNOW YOU GOT WHAT YOU PAID FOR?
After a schedule runs, how do you know if it delivered the audience that was promised? Even if a business owner is sophisticated enough to know how to buy programming based upon audience levels, he rarely follows through with the station to measure whether the program actually delivered. Most don't know that if a TV station delivers less than 90% of the promised audience during a campaign, they have to make up the difference. An independent media buyer will use her own rating information to analyze the buy after it has run to make sure the advertiser got everything he paid for.
More to the point, however, is that along the way, we've also heard from a great number of business owners and managers who are convinced they are getting the best media buy possible. No one, despite their credentials or experience, could possibly negotiate a better deal than they did.
In no case, ever, have we come across an owner-made media buy that could not be improved. And most of the improvements needed were significant. Here are some of the pitfalls of a business owner or manager negotiating his or her own media buy.
1. CHEAP SPOTS DON'T MEAN VALUE
It is in a business manager's makeup to measure the value of something by its cost. All to often we have witnessed a business owner proudly showing the super low costs of his TV or radio commercials without taking into account the size of the audience. A half hour in timing can make a huge difference in the numbers of people who will watch or listen to the commercial. The super low cost spots are super low for a reason. There's no audience.
2. BEST RATES COMPARED TO WHAT?
While we're on the subject of rates, most do-it-yourselfers are convinced that they negotiated the best rates in town. What they fail to recognize is that part of a good media salesman's job is to close the sale making the buyer thinking they got the best rate in town. And, they're usually pretty good at doing that. A client of ours is one of the best negotiators I've even met. But, he turned his media buying over because he wisely recognized that he had nothing to compare his rates to in order to verify what he was paying. A media buyer buys for a number of clients, therefore has a view of the playing field that a single business owner cannot have. This client actually lowered his media costs by going through a buyer.
3. ELIMINATE ANY POSSIBILITY OF SELF INTEREST.
Objectivity is extremely important when it comes to media buying. In almost every direct situation, some media rep has managed to create a close relationship with the business owner. Often, the business owner will even consult their favorite, trusted media rep for information not related to the rep's station. This is a huge error, regardless of the trust factor. No media rep is without a self-interest in selling his station. It can and absolutely will color any advice provided. Only an independent media professional is in a position to recommend a media mix without bias.
4. DON'T BUY WHAT YOU LIKE.
People who buy their own media tend to buy programming that they like. It's hard to spend $3,000 on a schedule, then not see it because it's not where you are watching or listening. But, that's what must be done. Media has to be purchased where your customers are watching, not you. And, too often, business owners believe their customers have the same media habits as their own.
5. SPREAD IT OUT AND WATCH RESULTS DIMINISH.
Stations like to sell schedules that are convenient for them, not schedules that deliver customers to you. I have never been able to understand why they do this, but it happens repeatedly. A station will push direct advertisers into a buy that is spread out over all day parts as evenly as possible. This is so they can sell their time slots evenly, thus leaving time in all day parts to sell to other advertisers. The trouble is, it dilutes the effectiveness of they buy for the advertiser. Media professionals have information that shows audience levels throughout the day and can balance the buy to maximize the fluctuation.
6. RESIST THE $300 PRIME SPOT PITCH.
Too many smart business people get lured by the promise of a prime spot for a fraction of its regular price. Smetimes you can get a cheap prime spot. But, it's almost always at the expense of the overall efficiency of the buy. Sometimes when you pay a small amount for a bank of commercials that are allowed to rotate throughout the day at the station's discretion, you can get lucky. But, by the time you add up what you paid and measure it against what you got, it is a very bad gamble. Even if you landed a cheap spot in a prime time television slot, you can bet the rest of your schedule ran in garbage times because that's where stations have most of their inventory.
7. HOW DO YOU KNOW YOU GOT WHAT YOU PAID FOR?
After a schedule runs, how do you know if it delivered the audience that was promised? Even if a business owner is sophisticated enough to know how to buy programming based upon audience levels, he rarely follows through with the station to measure whether the program actually delivered. Most don't know that if a TV station delivers less than 90% of the promised audience during a campaign, they have to make up the difference. An independent media buyer will use her own rating information to analyze the buy after it has run to make sure the advertiser got everything he paid for.
Subscribe to:
Posts (Atom)
